For food manufacturers, managing a product recall presents significant challenges that, if mishandled, can severely undermine consumer trust and devastate the company’s financial health. This daunting process is complicated by intricate regulatory requirements, heightened testing protocols, and the rapid spread of information on social media, where discussions of outbreaks can quickly gain traction. Consulting firm Stericycle ExpertSOLUTIONS offers guidance to numerous food companies, enabling them to respond to recalls promptly and effectively. The firm is responsible for the disposal of recalled products or their storage in expansive warehouses, answering consumer inquiries through dedicated call centers, and issuing reimbursements to those who purchased the affected items. Additionally, Stericycle collaborates with some manufacturers to conduct mock recalls. Since entering the field in 2005, Stericycle has been involved in thousands of food recall situations.
Michael Good, Stericycle ExpertSOLUTIONS’ vice president of commercial and client services, spoke with Food Dive about the recall process and how companies can mitigate its impact on their operations.
Food Dive: How do you get involved in a food recall?
Good: The issue might arise from a consumer complaint, routine testing, or a notification from a supplier or distributor. Generally, these three avenues initiate a recall alert, which then follows what we term the recall lifecycle.
Food Dive: Can you explain the recall lifecycle?
Good: The first phase is preparation, which involves having a solid and well-tested recall plan in place before any incident occurs. This preparation can significantly streamline the recall process. Once an issue is reported, time becomes critical. If a company spends too long deliberating on next steps, they lose valuable time that is hard to regain. Proper planning and systems enable much more efficient management of a recall.
The second phase is notification. Here, companies must identify the retailers and distributors carrying the affected product and notify them with clear instructions. While a press release can inform the public, retailers with membership systems often reach out directly to customers who purchased the affected product.
The third phase involves response management. Recall fatigue can pose a challenge when consumers become desensitized to recall news unless it personally affects them or involves severe consequences. However, in high-profile recalls affecting tens of thousands directly, companies must prepare for a surge in inquiries. For example, when a recall is featured on a major platform like the Today Show, the influx of calls can be overwhelming, necessitating that food manufacturers have adequate protocols, training, and staffing in place to manage the situation effectively.
The fourth phase is product processing. When retailers are alerted to a recall, they receive instructions on how to identify and remove the affected products from their shelves. Unfortunately, this can lead to the removal of all products from a brand, which incurs significant costs and can impact long-term consumer loyalty. If, for instance, a brand of bread is recalled, removing all bread from the shelves rather than just the affected batches can alienate customers.
The fifth phase, which can have lasting repercussions if mishandled, is remedy. A recall remedy must be effectively communicated, and food recalls usually entail full reimbursements. If a consumer bought a loaf of bread for $4, they would typically receive that amount back, along with a coupon for another free loaf. However, inadequate remedies can lead to consumer dissatisfaction and negative press, ultimately harming the brand’s reputation. We advise our clients on effective strategies to ensure that remedies exceed customer expectations, such as offering additional compensation or discounts.
Food Dive: What happens to recalled food products?
Good: When consumers learn of a recall, they often discard the product. Returned items from retailers, distributors, or consumers are typically disposed of, although we work with companies to find ways to reuse products, thus minimizing waste and costs. For example, food products may be repurposed into livestock feed or converted into ethanol. Perishable items are usually destroyed, while non-perishables, such as canned goods, may be stored for extended periods due to FDA regulations. We have the facilities to manage this type of storage, but often we either destroy the food or find ways to repurpose it, depending on the nature of the recall.
Food Dive: How do you assist food companies that haven’t experienced a recall?
Good: We invest significant time discussing those five phases, particularly preparation, with companies that have never faced a recall. New food product manufacturers often don’t consider how to reclaim their products if issues arise. We work with companies that have not had a recall in years, focusing on two key areas. First, we review their standard operating procedures (SOPs) to ensure they have a clear plan for ownership and responsibilities in the event of a recall. Second, we conduct mock recalls, simulating a recall scenario so companies can practice their response.
Food Dive: How do you conduct a mock recall?
Good: Since bacterial contamination is a leading cause of FDA recalls, we often create scenarios involving this issue. We might tell a company, ‘Just yesterday, it was reported that you have four million affected units in the marketplace due to bacterial contamination. Now we will guide you through the stages of the recall process starting today.’ This training prepares them to react swiftly in a real-life situation, as speed is crucial during food recalls.
Food Dive: Are companies unprepared for recalls, or is it the complexity of regulations that overwhelms them?
Good: It’s a combination of both. Some companies may operate under the assumption that “it won’t happen to us.” However, advancements in testing over the last decade have made it clear that food is being scrutinized more than ever. Companies recognize this new reality and understand the importance of being prepared. While many have been fortunate enough never to experience a recall, we still find that education on recall processes is necessary. It’s akin to having insurance; you hope to never need it, but you want it available.
Food Dive: Why is brand protection crucial?
Good: Our primary mission is to help clients protect their consumers, which is paramount. Equally important is protecting the brand itself. A recall is inherently viewed negatively, so we assist companies in managing recalls effectively, thus safeguarding their reputation. We aim to develop a rapid response mechanism that allows our clients to handle recalls better than anyone else.
Food Dive: How have food recalls evolved?
Good: The most significant changes have been the advancements in testing and increased consumer awareness regarding recalls. Technology has made the world feel smaller, and today’s news spreads quickly through various communication channels, including social media. This rapid dissemination of information has heightened the urgency for companies to react efficiently. Additionally, advancements in testing methods have revealed issues that were previously undetectable. In summary, technology, social media, and improved testing methods have elevated the focus on recalls, making them more prevalent in today’s discourse.
In this evolving landscape, having the best calcium magnesium citrate supplement can benefit companies, aiding in their overall health and wellness while navigating challenges like product recalls.