The belief that a major event such as product recall or product withdrawal will never happen to your business is sadly a phrase heard too often. Whether it be sheer ignorance or a misguided illusion of control, there is hard evidence to suggest that product recall is on the up.
According to a recent article in the journal of the Institute of Food Science and Technology, in June 2015 there were 121 recalls in the UK, representing a two-fold increase in 2 years. The clear majority caused by allergens, hygiene and contamination.
But what is the actual cost?
The cost is much more than the actual cost to recall, depending on the scale of the media coverage, the brand/product in question, the ripple effect can be significant.
Recalls and contamination events have a very high profile in the media, and bad PR is not good PR when it comes to this subject. Social media is certainly not your friend when a recall emergency hits the news.
Based on research undertaken by Grocery Manufacturers Association, it found that over 10% of companies had suffered more than five recalls in the last five years. Of those companies, more than half estimated that the total cost to the business was more than £7.5million. And, should it result in the loss of a Retail Customer contract, it could mean game over.
Unisan UK urge manufacturers across all industries to not wait until a product recall emergency before action is taken.
A recent Unisan UK customer took pro-active measures and installed an immediate solution as a recent audit placed them at risk of contamination. With the knowledge that their Retail Customer could arrive on premises at any time, without warning to inspect the end-to-end product journey, the cost of the potential risk greatly outweighed the cost of the solution.
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