For food manufacturers, managing a product recall presents significant challenges. If not executed effectively, 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 on social media, where news of an outbreak can quickly go viral. Consulting firm Stericycle ExpertSOLUTIONS offers guidance and support to numerous food companies, enabling them to respond to recalls swiftly and appropriately. They handle the disposal of recalled products or store them in expansive warehouses, akin to the size of a football field, operate call centers to address consumer inquiries, and issue reimbursements to those who purchased the affected items. Stericycle also collaborates with some manufacturers to conduct mock recalls. Since its inception in this sector in 2005, Stericycle has been involved in thousands of food recalls.
Michael Good, the vice president of commercial and client services at Stericycle ExpertSOLUTIONS, spoke with Food Dive about the recall process and the strategies that affected businesses can adopt to mitigate operational disruptions.
Food Dive: How do you get involved in a food recall?
Good: Typically, a recall is initiated due to a consumer complaint, routine testing, or a notification from a supplier or distributor. These are the three main triggers that set the recall process in motion. Companies generally adhere to what we refer to as the recall lifecycle.
Food Dive: Can you elaborate on the recall lifecycle?
Good: The first phase is preparation, which involves having a robust and well-tested recall plan ready before any issues arise. This preparation is crucial for a smooth recall process. Once an issue is reported, time becomes critical. If a company spends excessive time deliberating on what actions to take, it risks losing valuable time that cannot be regained. With effective planning, a recall can be managed much more efficiently.
The second phase is notification. Here, companies must identify the retailers and distributors that carry the affected product and notify them directly with specific instructions. While press releases can alert the public via media channels, retailers with membership programs often contact customers who purchased the impacted items directly.
The third phase is response management. Recall fatigue is a challenge, as consumers often become desensitized to recall news unless it personally affects them or involves severe incidents. However, in high-profile food recalls, where tens of thousands of consumers are notified, there can be a surge in inquiries. For instance, recalls featured on major shows like the Today Show can lead to thousands of calls flooding into call centers. Thus, food manufacturers must be adequately prepared to handle these situations, ensuring proper protocols and staffing are in place to manage the influx of calls effectively.
The fourth phase involves product processing. When retailers are informed about a recall, they are instructed on how to identify and remove the affected products from their shelves. Unfortunately, this often leads to the removal of all products from a specific brand, which can be costly in both the short and long term if consumers switch to other brands.
The fifth phase, known as remedy, can have lasting consequences if not handled properly. A recall remedy typically involves full reimbursement. For example, if a consumer buys a loaf of bread for $4, they can expect a full refund and possibly a coupon for a future purchase. Inadequate remedies can lead to consumer dissatisfaction and negative media coverage, which can harm the brand’s reputation. We advise our clients on effective strategies for this phase, often recommending that they exceed consumer expectations by offering additional compensation.
Food Dive: What happens to recalled food products?
Good: When consumers learn about a recall, they usually dispose of the product. Affected food items returned by retailers, distributors, or consumers are typically disposed of, although we strive to find ways to repurpose products to minimize waste and reduce costs. For example, some food products can be transformed into livestock feed or used to produce ethanol fuel. However, perishable items often need to be destroyed immediately. In contrast, non-perishable goods, like canned foods, may be stored for extended periods due to FDA regulations.
Food Dive: How do you assist food companies even if they haven’t experienced a recall?
Good: We spend considerable time educating companies about the five stages of the recall process, especially in preparation. Many companies, particularly those that have not faced recalls, overlook the need for a recall plan. We work with them to establish standard operating procedures (SOPs) for managing recalls, detailing who will take ownership of various aspects.
Another popular approach is conducting mock recalls. We simulate a fake recall scenario to allow companies to practice their response, ensuring they are prepared if a real recall occurs in the future.
Food Dive: How do you execute a mock recall?
Good: Since bacterial contamination is the leading cause of FDA recalls, we might simulate a scenario where a company has four million affected units due to bacterial contamination. We guide them through every stage of the recall process, emphasizing the need for rapid response. If a company were to call us with a real recall scenario, we could mobilize immediately to begin communication and response efforts.
Food Dive: Are companies unprepared for recalls, or is it the complexity of the regulatory system that hinders them?
Good: It’s a combination of both factors. Some companies may have a mindset of “that will never happen to us.” However, advancements in testing over the past decade have made it clear that the risk of recalls is greater than ever. Companies are realizing they must take recalls seriously because testing methods have become more stringent.
Food Dive: Why is it crucial to protect a company’s brand?
Good: We prioritize two objectives: first, to ensure the safety of consumers, and second, to help our clients protect their brands. A recall is inherently viewed negatively, so we assist companies in managing recalls efficiently to safeguard their reputation.
Food Dive: How have food recalls evolved?
Good: The most significant changes we observe are advancements in testing and increased consumer awareness about recalls. Technological developments have made information dissemination faster, and social media plays a pivotal role in amplifying recall news. Companies must now react swiftly and effectively, as the landscape has shifted dramatically compared to a decade ago.
In summary, the landscape of food recalls has transformed, with greater scrutiny from both regulators and consumers. As part of this evolution, companies must be proactive in their approach to recalls, including being aware of potential issues related to products such as calcium citrate 500 mg brands, which may also face scrutiny in testing and recall situations.