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The cost of a product recall in the food industry

Posted: 20 June 2017 | , | 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:

Product-Recalls-(002)

For more information on Rentokil, click here.

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