For food manufacturers, managing a product recall presents a significant challenge—one that, if not executed correctly, can permanently harm consumer trust and lead to severe financial repercussions for the company. This 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 gain traction. Consulting firm Stericycle ExpertSOLUTIONS offers guidance to numerous food companies, enabling them to respond efficiently and effectively to recalls. The firm 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 refunds to those who purchased the affected items. Stericycle even collaborates with some food manufacturers to conduct mock recalls. Since entering the field in 2005, Stericycle has been involved in thousands of food recalls.
Michael Good, Vice President of Commercial and Client Services at Stericycle ExpertSOLUTIONS, discussed with Food Dive the processes that companies and products undergo during a recall, as well as strategies for minimizing operational impacts.
Food Dive: How do you get involved in a food recall?
Good: Alerts can stem from consumer complaints, routine testing, or notifications from suppliers or distributors. These typically represent the three main sources for initiating a recall alert, which then follows what we describe as the recall lifecycle.
Food Dive: Can you outline the recall lifecycle?
Good: The first phase is preparation, which involves having a well-tested recall plan established before any issues arise. This proactive approach can significantly streamline a recall process. Once an issue is reported, time becomes critical. If a company spends too long deliberating over what actions to take, they risk losing essential time that cannot be reclaimed. With proper planning and systems in place, managing a recall becomes much more efficient.
The second phase is notification. At this stage, companies must identify retailers and distributors carrying the affected products and provide them with specific instructions. While press releases help inform the public, retailers with membership programs often reach out directly to customers who have purchased the affected items.
The third phase is response management. Recall fatigue can be a challenge—consumers often become desensitized to recall news unless it directly affects them. However, high-profile food recalls that notify tens of thousands of consumers can lead to a surge of incoming calls. For example, during a recall featured on the Today Show, an 800-number is displayed, leading to a flood of calls that the food manufacturer must be prepared to handle with sufficient staffing and protocols to avoid long wait times.
The fourth area is product processing. When retailers are informed of a recall, they receive instructions on identifying and removing the affected products from the shelves. Unfortunately, this often results in the removal of all products from a brand, which can be costly and lead to long-term consumer brand switching. For instance, if a recall is issued for a specific type of bread but all bread from that brand is removed, it essentially removes that brand from consumers’ sight.
The fifth and final phase, which can have the most lasting effects if not executed properly, is called remedy. A recall remedy typically involves providing full reimbursements. For example, if someone buys a loaf of bread for $4, they generally receive a $4 refund and possibly a coupon for a future purchase. Inadequate remedies can lead to consumer frustration and negative media attention, ultimately damaging the company’s brand. We advise clients on effective remedies, suggesting approaches that exceed consumer expectations, such as additional compensation in response to the inconvenience caused by the recall.
Food Dive: What happens to recalled food?
Good: Many consumers simply discard recalled products. However, affected food items returned by retailers, distributors, or consumers are either disposed of or repurposed to minimize waste and costs. For instance, some food may be converted into livestock feed or biofuel, while perishable items are destroyed. Canned goods may be stored for extended periods due to FDA regulations. We have facilities capable of managing such storage needs, but often we opt for destruction or find alternative uses based on the nature of the food and the specific recall circumstances.
Food Dive: How do you assist food companies even if they haven’t experienced a recall?
Good: We engage with companies on the five phases of recall management, especially focusing on preparation. Many companies, even those that have never faced a recall, benefit from reviewing their standard operating procedures (SOPs) to clarify roles and responsibilities in the event of a recall. Additionally, conducting mock recalls has become a popular practice. We simulate a recall scenario to ensure that companies are familiar with the process, allowing them to respond effectively when a real incident occurs.
Food Dive: How do you execute a mock recall?
Good: Bacterial contamination is the leading cause of FDA recalls, so we might create a scenario involving this issue. We could inform a company that they have four million units affected by bacterial contamination and guide them through the recall stages. The urgency is critical; if a real recall were to occur, we would be ready to respond immediately, highlighting the need for speed in food recalls.
Food Dive: Are companies unprepared for recalls, or is it the complexity of regulations that hinders them?
Good: It’s likely a combination of both factors. Some companies might believe, “That won’t happen to us.” However, advancements in testing over the past decade have made it clear that the risk of recalls is more pronounced than ever. Companies are now aware that their products are being tested much more rigorously, increasing the potential for errors. While many organizations are becoming more proactive, education on the recall process is still necessary for those who have been fortunate enough to avoid such situations.
Food Dive: Why is it important to protect a company’s brand?
Good: We prioritize two main objectives: first, protecting consumers, and second, safeguarding our clients’ brands. This is crucial for helping companies recover post-recall, as recalls are inherently viewed as negative events. We assist companies in managing recalls efficiently to help preserve their brand image.
Food Dive: How have food recalls evolved?
Good: The most significant changes we’ve observed relate to advancements in testing and increased consumer awareness surrounding recalls. With the growth of technology, news spreads rapidly across various platforms, forcing companies to act quickly. A decade ago, a slower approach might have sufficed, but now, immediate and effective responses are essential. Additionally, the enhancement of testing capabilities has led to the identification of issues that were previously undetectable, highlighting the necessity for vigilance and readiness in today’s landscape.