For food manufacturers, conducting a product recall poses a significant challenge. If not executed correctly, it can severely undermine consumer trust and financially cripple the company. This daunting task is further complicated by intricate regulatory requirements, heightened testing standards, and the rapid dissemination of information through social media, where discussions about outbreaks can quickly gain traction. Stericycle ExpertSOLUTIONS, a consulting firm, offers guidance to numerous food companies to ensure they respond swiftly and appropriately to recalls. The firm manages the disposal of recalled products or stores them in expansive warehouses the size of football fields, operates call centers to address consumer inquiries, and issues reimbursements to those who purchased the affected items. Additionally, Stericycle collaborates with some food manufacturers to conduct mock recalls. Since entering this 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 that companies and their products undergo, as well as measures businesses can implement to mitigate the impact on their operations.
Food Dive: How do you get involved in a food recall?
Good: The problem may arise from a consumer complaint, routine testing, or a notification from a supplier or distributor. These are typically the three sources that initiate a recall alert. Generally, companies will closely adhere to what we call the recall lifecycle.
Food Dive: Can you describe the recall lifecycle?
Good: The first phase is preparation. This involves having a robust and well-tested recall plan ready before any issues arise, which can significantly streamline the recall process. Once an issue is reported, time becomes critical. Companies that hesitate to act while wondering what to do lose invaluable time. With proper planning in place, a recall can be managed much more effectively.
The second phase is notification, where companies must identify retailers and distributors carrying the affected product and notify them with specific instructions. While a press release can inform the public via media channels, retailers with membership programs often reach out directly to customers who purchased the affected product.
The third phase is response management. Recall fatigue has become a challenge, as consumers are bombarded with recall news and may ignore it unless it directly affects them. However, high-profile food recalls that alert tens of thousands of consumers can lead to a surge in calls. For instance, when recalls are featured on programs like the Today Show, an 800-number is displayed, leading to thousands of calls flooding into call centers. Food manufacturers must be prepared with proper protocols, training, and staffing to handle these inquiries without long hold times or abandoned calls.
The fourth phase involves product processing. Retailers are instructed on how to identify and remove the affected products from their shelves. Unfortunately, many may opt to remove all products from a specific brand, which can be costly and may lead to long-term brand loyalty issues. For example, if a recall involves a type of bread, removing all bread from the shelves rather than just the affected items can significantly impact brand representation.
The fifth phase, often the most critical if mishandled, is the remedy. A recall remedy usually requires full reimbursement, meaning if a consumer buys an item like a loaf of bread for $4, they should receive that amount back, along with possible coupons for future purchases. Inadequate remedies can lead to consumer dissatisfaction and negative media coverage, damaging the company’s brand. We provide consultation to ensure effective remedies are in place, often going above and beyond to exceed customer expectations.
Food Dive: What happens with recalled food?
Good: Consumers who learn of a recall typically dispose of the product. Affected items returned by retailers, distributors, or consumers are usually discarded. However, we help companies find ways to repurpose products to minimize waste and costs. For example, some food products may be converted into livestock feed or ethanol for fuel, while perishables are destroyed. In contrast, non-perishable items, like canned goods, may be stored for years, as we have the facilities to handle such long-term storage.
Food Dive: How do you work with food companies even if they haven’t experienced a recall?
Good: We engage with companies on the five phases of the recall lifecycle, particularly focusing on preparation. Often, newer companies may not consider how to manage a product recall if an issue arises. We work with them to refine their standard operating procedures (SOPs) and ensure they have clear roles assigned for a recall event.
Another popular approach is conducting mock recalls, simulating a recall scenario so that companies can practice their response. This experience prepares them for real events and helps them develop effective protocols.
Food Dive: How do you conduct a mock recall?
Good: Given that bacterial contamination is the leading cause of FDA recalls, we might simulate a scenario where a company has four million affected units due to such contamination. We guide them through the recall stages from day one, emphasizing the need for rapid response. If a company contacts us about a real recall, we can quickly implement their recall processes and begin addressing consumer inquiries the very next day.
Food Dive: Are companies ill-prepared for recalls, or is it simply a complex regulatory environment?
Good: It’s a combination of both factors. Some may have a mindset of “that’ll never happen to us,” but advancements in testing over the past decade have made companies more aware of potential risks. The increased rigor in testing means that the likelihood of issues arising has grown, leading to a greater need for preparedness.
Food Dive: How important is it for a company to protect its brand?
Good: Our priority is twofold: firstly, we aim to protect consumers, and secondly, we focus on safeguarding our clients’ brands. This is crucial for helping companies recover from the negative perceptions associated with recalls. Our approach emphasizes efficient management of the recall process, ensuring that companies can navigate these situations effectively.
Food Dive: How have food recalls evolved?
Good: The most notable changes have been in testing advancements and increased consumer awareness about recalls. Today, information is disseminated rapidly through various media channels and social platforms, accelerating the urgency for companies to act quickly during recalls. Moreover, advancements in testing have led to the identification of issues that were previously undetectable, making the landscape of food recalls more complex than ever. In the past, recalls were rarely discussed unless they were on a massive scale, but now they are a frequent topic in the news, requiring companies to remain vigilant and prepared.
In summary, as companies navigate the complexities of recalls, they must consider all aspects of the recall lifecycle, including the management of products like calcium citrate caramel chews. The importance of effective communication, consumer trust, and brand preservation cannot be overstated, and proactive measures are essential to maintain integrity in the food industry.