For food manufacturers, managing a product recall presents a significant challenge. If not executed correctly, it can irreparably harm consumer trust and lead to severe financial repercussions for the company. This complex task is complicated by intricate regulatory guidelines, heightened testing standards, and the rapid dissemination of information through social media, where discussions about outbreaks can quickly gain traction. Consulting firm Stericycle ExpertSOLUTIONS offers support to many food companies, enabling them to respond to recalls swiftly and effectively. The company handles the disposal of recalled products or stores them in warehouses the size of football fields, operates call centers to address consumer inquiries, and issues reimbursements to customers who purchased the affected items. Stericycle also 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, Vice President of Commercial and Client Services at Stericycle ExpertSOLUTIONS, discussed with Food Dive the processes companies and products undergo during a recall and how affected businesses can mitigate operational impacts.
Food Dive: How do you get involved in a food recall?
Good: The issue may arise from a consumer complaint, routine testing, or a notification from a supplier or distributor. These are typically the three avenues that trigger a recall alert. Companies will generally follow what we refer to as the recall lifecycle closely.
Food Dive: Can you describe the recall lifecycle?
Good: The first phase is preparation, which involves having a robust and well-tested recall plan in place before any issues arise. This preparation can significantly streamline the recall process. Once an issue is reported, the clock starts ticking. If a company spends too much time deliberating on what actions to take, they lose crucial time that can’t be regained. With effective planning and systems, a recall can be managed much more effectively.
The second phase is notification, where companies must identify the retailers and distributors carrying the affected products and notify them with specific instructions. While press releases can inform the public through media channels, retailers often reach out directly to customers who purchased the affected products using membership cards.
The third phase is response management. Recall fatigue has become a challenge, as consumers are bombarded with recall news and may only react when it personally affects them. However, in high-profile recalls, where tens of thousands of consumers are notified, there can be a surge in calls. For instance, recalls featured on the Today Show often lead to thousands of calls flooding into call centers, necessitating that food manufacturers have the right protocols, training, and staffing in place to handle the influx.
The fourth phase is product processing. When retailers are notified of a recall, they are instructed on how to identify and remove the affected products from their shelves. Unfortunately, this may lead to the removal of all products from a particular brand, which can be costly not just initially but also in the long term if consumers switch brands. For example, if bread is recalled, and all bread from that brand is removed, it effectively takes that brand off the shelf.
The fifth phase, often the one with the most lasting consequences if mishandled, is remedy. A recall remedy typically involves full reimbursement. For instance, if a consumer buys a loaf of bread for $4, they might receive that amount back, along with a coupon for a future purchase. Insufficient recall remedies can lead to consumer frustration and negative media coverage, damaging the company’s brand. We advise our clients on this matter, highlighting successful strategies that often exceed customer expectations by offering additional compensation alongside refunds.
Food Dive: What happens with recalled food?
Good: Upon learning of a recall, consumers often dispose of the product. Affected food items returned by retailers, distributors, or consumers are usually disposed of. However, we also help companies explore ways to reuse products to minimize waste and costs. For food products, options may include converting them into livestock feed or ethanol fuel. In some cases, such as canned goods, products may be stored for up to 10 years due to FDA regulations. We have facilities equipped to handle such storage, but often, we opt to destroy the food or find alternative reuse methods depending on the nature of the recall.
Food Dive: How are you working with food companies even if they haven’t had a recall?
Good: We spend considerable time discussing those five phases, particularly preparation, with companies that have never experienced a recall. For instance, if someone starts a new food company, they may not consider how to remove a faulty product from shelves. We work with companies that haven’t had recalls to refine their standard operating procedures (SOPs), outlining what actions to take and who will be responsible in case of a recall.
A popular approach is conducting mock recalls. We simulate a recall scenario so companies can practice their response. This way, if they ever face a real situation, they will have gone through the motions and be better prepared.
Food Dive: How do you conduct a mock recall?
Good: Since bacterial contamination is the leading cause of FDA recalls, we often simulate that scenario. For instance, we might inform a company that it has four million affected units due to bacterial contamination that need to be retrieved. We guide them through each recall stage, emphasizing the need for rapid response. If a company contacts us with a real recall situation, we will be ready to take calls and communicate with affected parties the very next day. Speed is crucial in food recalls, and we cannot underestimate its significance.
Food Dive: Are companies unprepared for recalls, or is it the complexity of regulations that complicates matters?
Good: It’s likely a combination of both factors. There is often a mindset of “that will never happen to us.” However, advancements in testing over the past decade have made it clear that food safety must be taken seriously. Companies now recognize that food is being tested more rigorously than ever before, increasing the likelihood of issues arising. While many companies have not faced recalls, we still need to educate them on the recall process, as they may have been fortunate enough to avoid such scenarios.
Food Dive: What’s the importance of protecting a company’s brand?
Good: We prioritize two aspects: firstly, protecting consumers, which is paramount. Secondly, we aim to protect our clients’ brands. This is crucial for helping companies recover, as recalls are inherently viewed negatively. We assist companies in managing recalls efficiently, ensuring they can respond better than anyone else.
Food Dive: How have things changed in food recalls?
Good: The most notable changes have been advancements in testing and increased consumer awareness regarding recalls. Technology has made the world feel smaller; news spreads rapidly through various media channels, including social media. This has accelerated the urgency with which companies must address recalls compared to a decade ago when they could take their time.
Additionally, advancements in testing have enabled the identification of food safety issues that were previously undetectable. These two factors—technology and social media, along with testing advancements—have brought recalls to the forefront. In the past, recalls were seldom discussed unless they were significant events. Today, news about recalls is commonplace.
In light of these developments, companies like Twinlab, known for products like Twinlab Calcium Citrate with Magnesium, must remain vigilant. The increase in scrutiny and consumer awareness means that even well-regarded brands must be prepared for the realities of potential recalls. The importance of having a solid recall plan cannot be overstated, especially for companies aiming to maintain their reputation and consumer trust.