Reducing The Risk Of Recalls

With research showing that only 21 percent of all product recalls over the last decade were detected by the company themselves, it is more important than ever that food and beverage manufacturers review and prevent contamination and mislabeling. Here, Darcy Simonis, group vice president, food and beverage at ABB, explores the rise of recalls and what food companies can do to mitigate this alarming trend.

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The most startling figures from the food industry are those that hint at the major financial burden of product recalls. According to the Grocery Manufacturers Association (GMA) and the Food Marketing Institute (FMI), the estimated average cost for a food recall is $10 million — and that is only the direct costs to the company, such as the retrieval and disposal of the tainted product. Factoring in the indirect costs, such as lawsuits, sales losses and damaged reputation, drives that cost even higher.

Food packaging is advancing in many ways, with its principle roles being to protect food products from outside influences and to provide consumers with ingredient and nutritional information — making it a critical component in the overall safety process. However, with food supply chains spanning over large distances and through multiple intermediaries, contamination and mislabeling risks at the packaging stage are often overlooked and emphasis on food safety usually lies in the preparation of the food itself.

In fact, researchers at Queens University conducted the firstever analysis of all food recalls announced in the United Kingdom, the United States and Ireland over the last decade. The research identified 2,439 product recalls and found that the biggest driver of food recalls resulted from operational mistakes, such as incorrect labelling and food corruption along the supply chain.

The risk of recalls

While most food recalls are voluntary, it is usually in the best interest of a food facility to fully cooperate and initiate a recall when requested. Federal and legal agencies will take quicker and more decisive action when a product poses a significant risk to human health if a manufacturer or distributor is unwilling to launch a voluntary recall, or if the agency decided that the company’s voluntary action is ineffective.