London Briefing: On a sweltering August day, what better way to quench your thirst than with a refreshing glass of Perrier? Like all bottled water brands, sales of Perrier have been surging in the heatwave of recent weeks, proving that consumers can either be very forgiving or have rather short memories.

Cast your mind back to 1990, when the French fizzy water firm was forced into a massive worldwide recall after traces of the poisonous chemical benzene were discovered in its water.

With 170 million bottles pulled off the shelves, it was one of the biggest-ever product recalls. And yet, within months, the brand was back and sales as strong as ever.

And what about the Sudan 1 scare just last year? Premier Foods, the company at the centre of the scare, has just reported more than doubled first-half profits on the back of a huge increase in demand for its meat-alternative, Quorn.

Millions of products that contained the Sudan 1-contaminated Worcester Sauce supplied by Premier's Crosse & Blackwell subsidiary had to be recalled amid a tabloid frenzy over "killer food".

As it turned out, no damage was done to public health and neither does the company appear to have suffered a consumer backlash against its other brands, which range from Oxo to Branston Pickle, Ambrosia and Angel Delight.

So what of Cadbury Schweppes, the confectionery giant forced to withdraw more than one million of its products in June after traces of salmonella were discovered?

Although nothing has been proved, a leaking pipe at one of the group's plants was branded by the Health Protection Agency as the "most likely" source of a salmonella outbreak which saw more than 30 people fall ill.

But shares in Cadbury jumped 3 per cent last week when it revealed the bill for the contamination episode to be just £20 million - and that includes the cost of a £5 million advertising campaign to rebuild the Cadbury brand. Some city analysts had feared costs as high as £40 million.

Although Cadbury's chocolate sales tumbled by 14 per cent in the weeks following the recall, that was partly because of the heat wave, which sent the whole market sliding. And given that some of its best-selling lines were off the shelves, it could have been much, much worse for the group.

Chief executive Todd Stitzer issued an unreserved apology for letting customers down and stressed that manufacturing and quality control processes have been changed to ensure there will be no repetition.

Cadbury was fortunate in that the contamination came during its slowest period, the second quarter, which accounts for only about 15 per cent of UK chocolate sales. The final quarter, taking in Christmas, accounts for as much as 40 per cent.

Most of the recalled lines are now back and consumers appear to be resuming their purchases. It will take time to measure the longer term impact but, if Perrier and Premier are anything to go by, Cadbury should make a good recovery.

The group is confident enough of its customers' loyalty to have just resumed its high-profile advertising slot during Coronation Street, which was suspended during the recall.

Mr Stitzer revealed last week that Cadbury had received 700 letters of complaint from customers over the contamination issue.

But, astonishingly, it has yet to receive a single claim for compensation. If it does, then that £20 million bill could climb much higher.

Irish fail in bid for Covent Garden

It was the Irish who started the bid ball rolling for Covent Garden, one of Britain's best-known attractions and a mecca for overseas visitors with its vibrant mix of shops, restaurants and entertainment.

But, in the end, the Irish lost out to Liberty International's Capital & Counties, which on Monday revealed it had bought the prime seven-acre retail site in the heart of London for £421 million (€625 million).

It might not have been sold at all, had it not been for an unsolicited offer from Paddy McKillen and Tony Leonard's property investment vehicle, Clarendon Properties.

It would have been a fine fit for Clarendon, which owns the retail portfolio of the nearby Royal Opera House. Clarendon is thought to have dropped out of the auction some time ago - but it was not the only disappointed Irish investor.

Capital & Counties also fought off fierce competition for Covent Garden from Dublin-based property investor David Arnold and his D2 Private firm.

Mr Arnold has been active in the London property market recently, building up a portfolio worth more than €1 billion, including the Woolgate Exchange, a prestigious office block in the City.

He also owns a chunk of Mayfair and last year bought the Richard Rogers-designed Marks & Spencer headquarters in Paddington. But this was the deal that got away and, as for Covent Garden, which was saved from demolition in 1973 after its fruit and vegetable market moved to a rather less glitzy location in South London, its new owners now plan a move upmarket.

Although it attracts one million visitors a week, most of these are tourists, and Capital & Counties is keen to bring in more locals, who would visit all year round, rather than just in the summer months.

• Fiona Walsh is a journalist with the Guardian newspaper in London