How to Avoid a Product Recall Panic

• September 23, 2014
• Topics:
  • Product Recalls

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, Marketsupport’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.