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Are You Ready For a Recall ?. Denise Webster Director, Trading Law & Technical Fresh & Easy Neighborhood Market. Product Recalls on the Rise?. Complexity of supply chain Increase testing Better reporting Visibility Awareness Economics. Your Brand & Bottom line.

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are you ready for a recall

Are You Ready For a Recall ?

Denise Webster

Director, Trading Law & Technical

Fresh & Easy Neighborhood Market

product recalls on the rise
Product Recalls on the Rise?
  • Complexity of supply chain
  • Increase testing
  • Better reporting
  • Visibility
  • Awareness
  • Economics
your brand bottom line
Your Brand & Bottom line

Cantaloupe Jensen Farms 2011

Deadliest foodborne illness outbreak in over 25years Listeria contamination resulted in over 30 deaths and hundreds of illnesses.

Dollar volume of sales drops by 55.7% within four wks

Sunland 2012

42 people infected with Salmonella in 20 states

240 products recalled

First company to have registration suspended

Facility & industry still trying to recover

impact of fsma
Impact of FSMA
  • Mandatory Recall Authority
  • Suspension of Registration
  • Administrative Detention
  • Expansion of Records Access
  • Reportable Food Registry
  • Mandatory Recall Fees
  • Preventative Controls
  • Produce Safety
what s the true cost of a recall
What’s the true cost of a recall?
  • Destruction Costs (internal, DC, retail)
  • Recall Communication (PR, Customer Service)
  • Transportation and Warehousing
  • Additional Staffing/Consulting Cost
  • Inspection and Testing
  • Replacement Product
  • Refunds to Customers
  • Business Interruption
  • Rehabilitation Expense
traceability
Traceability
  • Identification codes (best before, lot code)
  • GS1/ iCix/HarvestMark
  • Depth a recall goes into the supply chain
  • Depth the government may require a recall
  • Minimize exposure
  • Quick response
  • Recognition
recall insurance
Recall Insurance
  • How much does a recall cost companies?
  • General product liability insurance enough?
  • Strict liability implications
  • Premium vs. Deductible
  • Standard vs. Optional coverage
  • Likelihood of having an ‘Insured event’
  • Recoverable event or Catastrophic?
can you prevent recalls
Can you ‘prevent’ recalls?

pre·vent

  • To keep from happening
  • To keep (someone) from doing something
  • To anticipate or counter in advance
  • To come before; precede

American Heritage Dictionary

retails counter in advance
Retails - ‘Counter in Advance’
  • Supplier Assurance/Requirement Programs
  • Combined 3rd party and own audit programs
  • Risk-based decision making
  • Integrated database systems
  • Engagement
  • Training
are you ready
Are you Ready?
  • Crisis manual with recall protocols, templates, press release and contact list
  • Point person for the business and regulatory agencies
  • Verified and validated processes
  • Effectiveness checks
  • Mock recalls
  • Customer Service FAQ’s
transforming the media
Transforming the Media
  • How will you be remembered?
  • How would you turn negative media around?