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Food Recalls Increasing
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Food Standards Australia reports that there were 72 food recalls in 2016 (81 in 2015, 76 in 2014).
The rise in the number of recalls is well above the average number of 61 recalls per year for the past 10 years.
Undeclared allergens and microbiological contamination are the leading causes, with foreign matter and bio-toxins also being significant reasons.
Dairy, peanut and wheat/gluten issues are the cause of over 61% of food recalls for undeclared allergens in 2016.
Recall Tools
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Two things are important when you are managing a recall:
- Who is affected?
- How do you contact them?
Being able to take prompt action may prevent any additional damage or injury. The speed and effectiveness of your response may be an important to market perceptions and limiting brand damage.
If necessary, it may even be crucial in your legal defence. While it is impossible to escape all pain, having solid data to identify, locate, and contact your affected customers is a great asset.
Hopefully, you will never need these tools
We have them built – just in case!
The Aglive platform includes tools that reach into the blockchain records to find the information you need to help manage your recall response.
Recall Impacts
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A mismanaged recall can become a crisis that affects a company’s reputation and significantly increase the financial cost.
A 2004 study by the University of Melbourne estimated the average cost of a corporate crisis is around $10m.
They also found around a quarter of recalls costing over $100m.
More grim, is the finding that around a quarter of companies that have a recall crisis won’t survive.
Legendary recalls
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- Ford (early 2000s) recalled 6.5 million vehicles with Firestone tires. The defective tires resulted in 1,400 complaints, 240 injures, and 90 deaths in the U.S.
- Toyota (2009) recalled over 10 million vehicles due to sticky gas pedals, faulty airbags and numerous other issues.
- Merck (early 2000s) recalled Vioxx, an arthritis medication, as it increased the risk of heart attacks. Settled claims and lawsuits cost Merck $4.85 billion.