For food manufacturers, managing a product recall can present significant challenges—failure to execute it correctly can severely undermine consumer trust and lead to financial ruin for the company. The daunting task is complicated by intricate regulatory requirements, stricter testing protocols, and the rapid spread of information on social media, where news of an outbreak can quickly go viral. The consulting firm Stericycle ExpertSOLUTIONS provides guidance to numerous food companies, assisting them in responding swiftly and effectively to recalls. They handle the disposal of recalled products or store them in warehouses the size of football fields, operate call centers to address consumer inquiries, and issue reimbursements to those who bought the affected items. Stericycle even collaborates with some manufacturers to conduct mock recalls. Since entering this field in 2005, the company has participated in thousands of food recalls.
Michael Good, the vice president of commercial and client services at Stericycle ExpertSOLUTIONS, discussed with Food Dive the procedures companies and products undergo during a recall and the measures affected businesses can take to mitigate operational impacts.
Food Dive: How do you get involved in a food recall?
Good: A recall may originate from a consumer complaint, routine testing, or a notification from a supplier or distributor. These are typically the three triggers that initiate an alert, and generally, they will closely adhere to what we refer to as the recall lifecycle.
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 a recall occurs. This can significantly streamline the process. Once an issue is reported, the countdown begins. If a company spends too much time deliberating—asking what to do next or why they were unaware of the issue—they lose crucial time that can’t be regained. With proper planning and systems, managing a recall can be done much more effectively.
The second phase is notification, where companies must identify the retailers and distributors carrying the affected product and notify them directly with specific instructions. While a press release can help inform the public via the media, retailers with membership programs often reach out directly to customers who purchased the impacted product.
The third phase entails response management. Recall fatigue has become an issue, as consumers are overwhelmed with recall news and may tune it out unless it directly affects them or leads to serious consequences. However, high-profile food recalls that notify tens of thousands of consumers can lead to a surge in calls. For instance, when a recall is featured on the Today Show, the display of an 800-number can result in thousands of calls coming into a call center within seconds. Food manufacturers must be prepared with the right protocols, training, and staffing to handle these inquiries without leaving calls abandoned or making customers wait excessively.
The fourth area is product processing. After retailers are informed of the recall, they receive instructions on identifying the affected products and removing them from their shelves. Unfortunately, they may sometimes remove all products from a brand, which can be costly both immediately and in the long term if consumers switch brands. For example, if all bread products are pulled from shelves instead of just the affected ones, it effectively removes that brand from availability.
The fifth phase, often the one with the most lasting consequences if mishandled, is known as remedy. A recall remedy must be implemented, and typically, food recalls involve full reimbursement. If a consumer buys a loaf of bread for $4, they generally receive a $4 refund, possibly accompanied by a coupon for a future purchase. Insufficient recall remedies can lead to consumer dissatisfaction and negative media coverage, ultimately harming the company’s brand. We provide consultation on this, and we’ve seen that exceeding customer expectations—such as offering refunds and additional compensation—can significantly enhance their experience during a recall.
Food Dive: What happens to recalled food?
Good: When consumers learn about a recall, they often dispose of the product. In other cases, returned food products from retailers, distributors, or consumers may be disposed of, although we strive to help companies find ways to reuse products to minimize waste and costs. For instance, some food items may be repurposed as livestock feed or converted into ethanol fuel, while perishable goods are typically destroyed. Non-perishable items, like canned goods, might be stored for extended periods in our facilities due to FDA regulations. Ultimately, the approach depends on the food type and the nature of the contamination or recall.
Food Dive: How do you collaborate with food companies that haven’t experienced a recall?
Good: We engage extensively with companies regarding the five phases, particularly preparation. Many companies may not have considered how to remove a product from the shelves if an issue arises. We work with those who have never faced a recall or haven’t had one for years to address two key areas. First, we focus on their standard operating procedures (SOPs) for executing a recall. Second, we conduct mock recalls, creating a simulated scenario where they can practice the necessary actions. This prepares them for real situations, ensuring they have experienced practice rounds.
Food Dive: How do you conduct a mock recall?
Good: Since bacterial contamination is the leading cause of FDA recalls, we usually simulate a scenario involving that. For example, we might inform a company that four million units of their product are affected by bacterial contamination and guide them through the recall process from day one. If a real call comes in, we can rapidly mobilize, beginning communications with affected parties to identify them. The speed of response is critical in food recalls, and companies must recognize its importance.
Food Dive: Are companies unprepared for recalls, or is it the complexity of regulations that confuses them?
Good: It’s likely a combination of both. There is often a mindset of “That will never happen to us.” However, with the advancements in testing over the past decade, awareness has increased. Companies recognize the seriousness of the issue because food is now tested more rigorously than ever before. This heightened scrutiny has expanded the potential for errors, making the need for preparedness more critical. While many companies have been fortunate enough not to experience a recall, we still need to educate them about the recall process, much like an insurance policy—one hopes never to file a claim, but it’s essential to be prepared.
Food Dive: Why is protecting a company’s brand important?
Good: We take pride in two priorities. First, our primary goal is to help our clients protect their consumers. That’s paramount. Second, we strive to protect our clients’ brands. This is vital for helping companies recover, as recalls are inherently viewed negatively. We assist companies in managing recalls efficiently, developing what I refer to as “recall reflexes,” enabling them to respond better than anyone else.
Food Dive: How have food recalls evolved?
Good: The most significant changes we’ve observed are advancements in testing and increased consumer awareness regarding recalls. With technology making the world feel smaller, news spreads rapidly across various media channels and social platforms. Consequently, companies can no longer afford a slow approach to managing recalls as they might have a decade ago. Additionally, the advancements in testing technology have revealed issues in food products that were previously undetectable. These factors have brought the issue of food recalls to the forefront, making it a more frequent topic of discussion compared to the past when only major global recalls garnered attention.