How to Avoid a Product Recall Panic

Product recalls are an unfortunate reality in the consumer packaged goods industry. Both brands and retailers have to deal with this on a regular basis, and when managed poorly the outcome can be disastrous.

Here is a list of just a few of the most recent product recalls from the CPG industry:

-        Advantage Health Matters and Noorish Inc.: various products containing chia seeds or sprouted chia seed powder from the marketplace due to possible Salmonella contamination have been recalled.

-        A-R Perogies brand perogies and tortellini recalled due to undeclared wheat.

-        Various Old Country and Winnipeg Old Country brand meat products recalled due to undeclared mustard.

-        Goody Shop brand sweet goods recalled due to undeclared eggs, milk and wheat.

-        Boulangerie l'Escale brand products recalled due to undeclared soy.

When a product is recalled, either through a voluntary or mandatory recall, the end result is the same - that product needs to leave the shelf. When a product is recalled, the typical process is as follows:

·        The product is removed from the shelf

·        The product is shipped back to the warehouse

·        The new product packaging is re-labelled if required

·        The new product is shipped back to the store

What differs here is how the entire process is handled. If the recall takes too long, and the shelves remain empty as result of the recalled product, brand loyalty can quickly suffer due to the delay. However, if handled quickly, and safe products are delivered and restocked in a timely manner, loyalty will be far less impacted.

When a company practiced and proficient in dealing with product recalls is utilized, many of the costs associated with dealing with a product recall can be avoided. With many of the examples above, the product recall solution was as simple as a product re-labelling. When product is shipped back to the warehouse for re-labelling, the costs can become quite substantial. However, when you work with a merchandising company who can perform the re-labelling in-store, these costs are significantly reduced, as is the time it takes to have the product back on the shelf and ready to sell, thereby diminishing the loss of profit associated with most product recalls.

If you are facing a product recall, Storesupport’s emergency response services can help you deal with the entire recall and help mitigate any losses as a result of the recall process. Contact us today for a quick resolution: 1-877-421-5081.

What to Do in the Event of an Allergy Alert Product Recall

Product recalls, or more specifically allergy alert product recalls, are an issue that brands and retailers deal with on a regular basis. If a product is found to contain something that is not listed on the label, or if the label does not contain an allergy alert, steps must be taken to remedy the problem. Most product recall decisions are made by CFIA and Health Canada, and brands are expected to comply immediately. Whatever the level (Class I, II, or III recalls), the way that you handle a product recall is vital.

There are several different types of product recalls:

-        Voluntary recall: Most product recalls in Canada are voluntary, meaning that they are initiated and carried out by the company whose product is being recalled. The Canadian Food Inspection Agency monitors the recall to ensure that the correct process is followed.

-        Mandatory recall: Although most product recalls are voluntary, if a company refuses to comply with a recall request, the Minister of Agriculture and Agri-Food will step in and order a mandatory recall, especially for those foods that pose a health risk.

-        Allergy alert: This recall is issued when an undeclared item is contained in a product, and is withdrawn once that item is listed on the label.

-        Health hazard: These are issued when something that could potentially cause harm (ex. Salmonella) is found in a product.

Often these will be listed together (ex. allergy alert: voluntary recall).

In the event of an allergy alert product recall the brand has to:

·         Remove the product from the shelf

·         Ship it all back to the warehouse

·         Re-label the packaging

·         Re-ship the product back to the store

This process represents a huge cost to the brand, not only because of the money to correct the mistake and the shipping costs, but also with regard to the sales lost while the product is not on the shelf. This is why time is of the essence when you are dealing with an allergy alert product recall – or any type of product recall!

These costs are severely reduced when a merchandising company takes over – since they will just correct the labels in store, thereby saving you time and money. This rapid response approach also helps to mitigate the public relations effects, since your product is not actually being taken from the shelves.

Sometimes product recalls are unavoidable, and in these cases they need to be handled correctly. A merchandising company that offers emergency response services to deal with product recalls can help take the pressure off and get things running as they should be.

If you don’t have a system in place to deal with product recalls, please contact Storesupport to find out more by calling 1-877-421-5081 or visit www.storesupport.ca.