Yeti (YETI) is recalling nearly two million of its soft coolers and gear cases over concerns magnets can be detached from the items and pose a risk of injury or death, federal safety regulators said.
The recall involves about 1.9 million Yeti Hopper M30 Soft Cooler 1.0 and 2.0, Hopper M20 Soft Backpack Cooler and SideKick Dry Gear Cases, according to the U.S. Consumer Product Safety Commission.
Another 40,760 items were sold in Canada. They were made in the Philippines, Vietnam and China.
DON'T MISS: Tesla Models Recalled for Dangerous Seat-Belt Issue
Consumers are being asked to immediately stop using the recalled products and contact Yeti for refund information.
The magnet-lined closures can fail and result in detached magnets, posing a risk of serious injury or death if ingested, the CPSC said in a March 9 filing.
How Magnets Can Kill
The products have a main-pocket closure lined with high-powered magnets, which are enclosed in a heat-sealed plastic strip.
When two or more high-powered magnets are swallowed, the ingested magnets can attract to each other, or to another metal object, and become lodged in the digestive system.
This situation can result in perforations, twisting or blockage of the intestines, infection, blood poisoning and death.
No magnet ingestions or injuries have been reported, the commission said.
The company has received 1,399 reports of the magnet-lined closures degrading or failing, including reports of missing or detached magnets.
The coolers and gear bags were sold at Dick’s Sporting Goods (DKS), Ace Hardware, Academy Sports and Outdoors (ASO), Yeti and other stores, including Amazon (AMZN), from March 2018 to January 2023.
The gear case sells for about $50 and the coolers for between $300 and $350.
Matt Reintjes, Yeti's, president and CEO, discussed the recall during the company's fourth-quarter earnings call on Feb. 23.
"After a thoughtful analysis of the situation, we acted decisively in January to remove these products from the market and to stop sale as we coordinate with the CPSC and relevant global agencies on a proposed voluntary recall," Reintjes said, according to a transcript of the call.
Working to Enhance Product Design
"In parallel, our team is actively working to enhance the product design to meet the high standards we hold for Yeti," he said.
He said that since 2018, Yeti has sold about 1.5 million units with this material construction, and it is aware of about 1,400 units or 0.1% of the units sold that have experienced issues with the magnet-lined closure.
Look ahead, Chief Financial Officer Mike McMullen said that “we expect growth in drinkware to more than offset a decline in coolers and equipment given the impact of the proposed recalls.”
“Our plan is to introduce a full line of redesigned soft coolers and SideKick Dry gear bags in the fourth quarter where we expect strong category growth to reemerge,” he said.
The company said it recorded an inventory write-off of $34.1 million in the fourth quarter of 2022 for the unsalable inventory on-hand.
Yeti also established a reserve of $94.8 million for estimated future product refunds, cost of recall remedies for consumers with affected products, recall-related logistics costs, and other recall-related costs as of December 31.
The total unfavorable impact of the voluntary recalls on operating income was $128.9 million for the year ended December 31, the company said.
