For food manufacturers, executing a product recall presents a significant challenge—one that, if mishandled, can severely undermine consumer trust and lead to devastating financial repercussions for the company. This monumental task is complicated by intricate regulatory frameworks, heightened testing standards, and the rapid dissemination of information via social media, where discussions about an outbreak can quickly gain traction. Consulting firm Stericycle ExpertSOLUTIONS offers guidance and assistance to food companies, helping them respond swiftly and effectively to recalls. The firm handles the disposal of recalled products and stores them in massive 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 various manufacturers to conduct mock recalls. Since entering the field in 2005, Stericycle has participated in thousands of food recalls.
Michael Good, the vice president of commercial and client services at Stericycle ExpertSOLUTIONS, shared insights with Food Dive regarding the recall process and the measures businesses can take to lessen the impact on their operations.
Food Dive: How do you get involved in a food recall?
Good: The issue can arise from consumer complaints, routine testing, or alerts from suppliers or distributors. Typically, these are the three main channels that trigger a recall alert, which follows what we refer to as the recall lifecycle.
Food Dive: Can you describe the recall lifecycle?
Good: The first stage is preparation, which involves having a comprehensive and well-tested recall plan in place prior to an incident. This preparation ensures a smoother recall process. Once an issue is reported, time is of the essence; if a company hesitates with questions like “What should we do?” or “Why didn’t we know about this?” they waste precious time. Efficient planning and systems can significantly enhance recall management.
The second phase is notification, where companies must identify retailers and distributors of the affected product and notify them with specific instructions. A press release can raise public awareness, but increasingly, retailers with membership programs reach out directly to customers who bought the affected product.
The third phase is response management. Recall fatigue has become an issue, as consumers often tune out recall news unless it directly affects them. However, high-profile recalls that notify thousands can lead to a surge in calls. For instance, during recalls featured on shows like the Today Show, call centers can be flooded with inquiries. The food manufacturer must be prepared with adequate protocols, training, and staffing to handle the influx of calls without long wait times.
The fourth aspect is product processing. When retailers receive recall notifications, they must identify and remove affected products from their shelves. Unfortunately, this often leads to the removal of all products from a particular brand, which can be costly and may lead to long-term brand loyalty issues if consumers switch to alternatives. For example, if a recall involves a specific type of bread, removing all bread from that brand can significantly impact market presence.
Finally, the fifth stage, remedy, is crucial as it can have lasting effects if not handled correctly. A recall remedy typically involves providing full reimbursements. For instance, if a consumer purchases a loaf of bread for $4, they can expect a refund along with additional incentives, like coupons for future purchases. Failure to provide satisfactory remedies can lead to consumer frustration and negative media coverage, ultimately harming the company’s brand. We advise on effective strategies to exceed customer expectations during these situations.
Food Dive: What happens to recalled food?
Good: Typically, consumers learn about recalls and dispose of the products. Returned items from retailers, distributors, or consumers are often disposed of, but our goal is to find ways to reduce waste and costs. In some cases, recalled food may be reused, such as converting it into livestock feed or ethanol. However, perishable items are usually destroyed. For non-perishable goods, like canned products, they may be stored for long periods in compliance with FDA regulations. Our facilities are equipped for such storage, but often we must destroy the food or repurpose it based on the nature of the recall.
Food Dive: How do you work with food companies, even if they haven’t had a recall?
Good: We engage with companies across all five stages of the recall lifecycle, especially preparation, even for those who have never experienced a recall. For example, if a new food company produces and distributes a product, they may not consider how to address a recall if an issue arises. We collaborate with companies that may not have had recent recalls to enhance their standard operating procedures (SOPs). This includes establishing ownership and procedures for managing a recall.
We also conduct mock recalls, where we simulate a recall scenario to prepare them for real-life situations. For example, we might announce a fictional recall involving bacterial contamination, prompting the company to follow the steps of a real recall. This practice ensures that when an actual event occurs, they are familiar with the process and can respond effectively.
Food Dive: How do you conduct a mock recall?
Good: Given that bacterial contamination is the leading cause of FDA recalls, we often base our mock scenarios on that. For instance, we might say, “Yesterday, it was announced that you have four million affected units due to bacterial contamination.” We guide them through each stage of the recall process. Speed is critical in food recalls, and we are ready to mobilize quickly, ensuring that communications and responses are in place immediately.
Food Dive: Are companies unprepared for recalls, or is it due to complicated regulations?
Good: It’s likely a combination of both factors. There is a tendency for some companies to think, “That will never happen to us.” However, in the food industry, advancements in testing have increased awareness of potential issues. Companies recognize the seriousness of these advancements and the heightened testing protocols that have emerged in recent years. As a result, while some organizations may have been fortunate enough to avoid recalls, we continue to educate them on the recall process because it’s essential for them to have a solid plan in place, much like an insurance policy.
Food Dive: Why is it important to protect a company’s brand?
Good: We prioritize two main objectives: protecting consumers and safeguarding our clients’ brands. This is crucial because recalls are inherently perceived negatively. Our role involves helping companies manage recalls efficiently while reinforcing their brand integrity. We strive to react swiftly and effectively, fostering what I call “recall reflexes,” ensuring our clients can navigate these challenging situations better than anyone else.
Food Dive: What changes have you observed in food recalls?
Good: The most notable changes are advancements in testing and increased consumer awareness regarding recalls. Technology has made the world feel smaller, and news spreads rapidly through various media and social platforms. This immediacy has accelerated the urgency with which companies need to respond to recalls. A decade ago, companies could adopt a more leisurely approach, but now, they must act quickly due to the pervasive nature of news coverage.
Additionally, the advancements in testing have revealed issues that were previously undetectable, making recalls more frequent. It’s essential for companies to adapt to this new reality, as the landscape of food safety has dramatically evolved. Today, recalls are discussed widely, and companies must be prepared to address them proactively, especially considering products like Citracal 1200 mg and others that may be affected.