The cost of a product recall in the food industry
Posted: 20 June 2017 | New Food, Rentokil | No comments yet
New Food explores with an inforgraphic courtesy of Rentokil, the direct and indirect costs of a food recall.
Recalls are a huge threat to food businesses and can result in catastrophic outcomes for both company and consumer.
The direct costs for recalling a food product are:
- Assembling a crisis team
- Removing the product from the market
- Investigating and addressing the cause
- Managing the PR fallout
The indirect costs are:
- Litigation
- Stock value decline
- Fines
- Loss in sales
- Industry impact
- The infographic reveals that nuts and sweets are the most commonly recalled food product in the US (21%), whereas fruits and vegetables account for the largest proportion of recalled products in the UK (27%).
See the full infographic here:
For more information on Rentokil, click here.
