For food manufacturers, managing a product recall poses significant challenges. If not executed effectively, it can severely undermine consumer trust and lead to substantial financial losses for the company. The complexity of this task is compounded by intricate regulatory requirements, heightened testing standards, and the potential for viral discussions on social media regarding outbreaks. Consulting firm Stericycle ExpertSOLUTIONS offers guidance to numerous food companies, assisting them in swiftly and appropriately addressing recalls. The firm handles the disposal of recalled products or stores them in warehouses the size of football fields, operates call centers to field consumer inquiries, and issues refunds to individuals who purchased the affected items. Additionally, Stericycle collaborates with some food manufacturers to conduct mock recalls. Since its entry into the field in 2005, Stericycle has participated in thousands of food recalls.
Michael Good, the vice president of commercial and client services at Stericycle ExpertSOLUTIONS, discussed the recall process with Food Dive, detailing the steps companies can take to mitigate the impact on their operations.
Food Dive: How do you get involved in a food recall?
Good: The alert for a recall may arise from a consumer complaint, routine testing, or notifications from suppliers or distributors. These typically represent the three main channels through which a recall is initiated. Companies will generally adhere closely to what we call the recall lifecycle.
Food Dive: Can you describe the recall lifecycle?
Good: The first phase is preparation, which involves having a comprehensive and well-tested recall plan established before any issues arise. This proactive approach can significantly streamline the recall process. Once a problem is reported, time is of the essence. If a company spends too long deliberating over what to do next, they risk losing critical time that cannot be recovered. With adequate planning and systems in place, recalls can be managed more effectively.
The second phase is notification, where companies must identify retailers and distributors carrying the affected product and inform them directly with specific instructions. While press releases can help reach the public through the media, retailers often contact customers directly, especially those with membership cards.
The third phase is response management. Recall fatigue can be an issue, as consumers often become desensitized to recall news unless it directly affects them. However, high-profile food recalls can lead to a surge of inquiries. For example, when recalls are featured on programs like the Today Show, the display of an 800-number can result in thousands of calls to a call center in mere moments. Food manufacturers must be prepared with the right protocols, training, and staffing to handle this influx, preventing abandoned calls or excessively long wait times.
The fourth phase involves product processing. After retailers are notified of the recall, they must identify and remove the affected products from their shelves. Unfortunately, this sometimes leads to the unnecessary removal of all products from a brand, which can be costly in both the short and long term, especially if consumers switch brands.
The fifth phase, known as remedy, often has the most lasting impact if not handled correctly. A recall remedy typically involves full reimbursement, meaning if you purchased a loaf of bread for $4, you would generally receive that amount back, along with a coupon for a future purchase. Inadequate recall remedies can lead to consumer dissatisfaction and negative media coverage, damaging the company’s brand. We advise clients on effective remedies, often going beyond customer expectations by providing additional compensation.
Food Dive: What happens with recalled food?
Good: Consumers who are informed about a recall typically dispose of the product. Returned food items from retailers, distributors, or consumers may be disposed of, but we also help companies find ways to minimize waste and reduce costs. For instance, some food items may be repurposed as livestock feed or for ethanol production, while perishable items are usually destroyed. Other non-perishable items, like canned goods, may be stored for extended periods due to FDA regulations.
Food Dive: How do you work with food companies even if they haven’t had a recall?
Good: We invest significant time discussing the five phases of recall management, particularly preparation, with companies that have never experienced a recall. For instance, if a new food business is launched, the owners may not consider how to effectively remove a product from the market if something goes wrong. We work with companies that have not had recalls in years to enhance their standard operating procedures (SOPs) and identify key personnel responsible for managing recalls.
Another popular strategy is conducting mock recalls. We simulate a hypothetical recall to allow companies to practice their response procedures. For example, we might present a scenario where a bacterial contamination affects four million units of a product, guiding the team through the various stages of the recall.
Food Dive: How do you conduct a mock recall?
Good: Given that bacterial contamination is the leading cause of FDA recalls, we often base mock scenarios on that. We might inform a company, “Just yesterday, you were notified that four million units of your product are affected by bacterial contamination, and we need to manage the recall.” This rapid engagement ensures that if a real recall occurs, the company is already familiar with the process and can respond quickly.
Food Dive: Are companies unprepared for recalls, or is it a complicated regulatory system?
Good: It is likely a combination of both. Some companies may have an attitude of, “That won’t happen to us.” However, advancements in testing over the past decade, especially in the last few years, have made it clear that food safety is a serious concern. Companies are beginning to recognize the importance of taking these matters seriously, as the potential for error has significantly increased.
Food Dive: What’s the importance of protecting a company’s brand?
Good: We prioritize two main objectives: first and foremost, protecting consumers, and secondly, safeguarding our clients’ brands. A recall is inherently seen as a negative event, so assisting companies in managing recalls efficiently is crucial for brand preservation.
Food Dive: How have food recalls changed?
Good: The most significant changes we have observed are advancements in testing and heightened consumer awareness of recalls. Technology has made information dissemination rapid and widespread, with news and social media amplifying recall announcements. This immediacy requires companies to act swiftly, unlike a decade ago when there was more leeway.
Additionally, advancements in testing now allow for the identification of issues that were previously undetectable. These technological and social media developments underscore the necessity for companies to adapt swiftly to the evolving landscape of food safety. In today’s world, recalls are frequently discussed, highlighting the importance of preparedness for products like solaray calcium citrate chewable 1000mg.