In 1998, 805 Canadians, primarily children between 6- and 10-years-old, were sickened with Salmonella Enteritidis linked to Schneider's Lunchmates. The outbreak strain of Salmonella Enteritidis was isolated from the cheese portion of pizza and taco products. Parmalat Canada supplied the cheese portion of the Lunchmate products. Investigation of the outbreak and a full public accounting was complicated by several factors. The ingredients for the Lunchmates were provided by several suppliers, and then assembled at a central plant for distribution. The contaminated pasteurized mild light cheddar cheese in the Lunchmate was traced to a cheese factory which supplied a production plant where the product was prepared into a variety of formats, such as shredded cheese and cheese sticks.

The shredded cheese was then provided to the plant where the Lunchmates were assembled.