Profit loss is just one of the many ways a food manufacturing plant suffers following a recall. On average, it costs a company around 10 million dollars to issue a recall. This cost does not include costs for litigation, mandatory governmental costs when an incident occurs at the plant, or the cost of lost consumers and sales.[i]
The damage to future sales is staggering. For example, in 2015 Blue was forced to issue a recall on [name of product] when an ingredient from a third party supplier tested positive for Listeria. Ten people were sickened across 4 states and 3 fatalities were reported. Blue Bell lost millions of dollars in sales in 2016 following the incident and is still dealing with lawsuits.[ii] In 2016, Dole lost $25.5 million as a result of a Listeria outbreak and their packaged sales revenues nosedived a whopping $85.6 million due to a four-month plant shutdown. [iii] These numbers are shocking and quite concerning, but they are not the worst that can happen to a facility.
Could you lose your business because of a recall? The answer is yes.
A Utah economics professor asserted that companies have gone bankrupt after only one recall.[iv]
In 2017, there was a total of 456 recalls including 108 Listeria outbreaks killing 2 people, a Salmonella outbreak that affected 24 people and an E-coli outbreak that affected 14 people across several states. A Listeria outbreak linked to a variety of cheeses forced Sargento to issue a recall and the outbreak also affected other products such as Aunt Jemima frozen breakfast foods.[v]
In the spring of 2018, Cal-Maine foods recalled eggs across 9 states due to a Salmonella outbreak.[vi] That same summer, Del Monte recalled fresh veggie trays across several states because of a Cyclospora outbreak affecting 212 people.[vii]
As you can see, product recalls are costly to companies
But what’s even more concerning is, “when a recall strikes in an undifferentiated marketplace, buyers cannot distinguish sellers of good product from sellers of contaminated product. This results in consumer avoidance of an entire category of products, and can severely impact a whole industry rather than the individual firm(s) responsible.”[viii] In other words, your company may have not issued the recall but if your company manufactures the same product, you will likely suffer as well.
We know from experience that traceability plays an important role in knowing the contaminated product’s origin but Good Manufacturing Practices (GMPS) also plays a key role in the food industry. Companies need to follow the GMPS as issued by the FDA.[ix] One guideline includes the cleaning and sanitizing of the equipment used.
There are numerous cleaning and sanitizing products on the market
designed to eliminate soil (food waste and bacteria) from surfaces. Eliminating soil daily is important in order to decrease biofilm buildup and reduce the likelihood of food-borne illnesses originating from your plant. Fortune magazine wrote an article that stated 48 million people get sick annually from food-borne pathogens.[x]
The daily cleaning and sanitizing of surfaces is important and can be easy with the right product. 2XL No Rinse Sanitizing Food Service Wipes can revolutionize the way you eliminate soil from food product contact surfaces. They are designed for use in food handling and processing areas to sanitize pre-cleaned, hard, non-porous food contact surfaces. Each wipe contains ingredients that are powerful and effective but are non-toxic and bleach free. These wipes are FDA approved, NSF listed and kill 99.9% of bacteria in 30 seconds. Let 2XL help protect your facility from food-borne pathogens.
2XL is your trusted partner in the Food Manufacturing Industry