FOOD RECALLs: Largest costs & recoveries

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Thirty-six members of the Association of Food, Beverage and Consumer Products Companies participated in a survey to assess the impact of product recalls in the food, beverage and consumer product sectors. The surveys & interviews were augmented by independent research, discussions with industry professionals, and subject matter resources from Ernst & Young and Covington & Burlington.

Key Survey Results included:

81% of respondents deem the financial risk from recalls as significant to catastrophic

58% have been affected by a product recall event in the last five years

77% experienced recalls that had a financial impact of less than $30 million

78% manage the risk by procuring insurance

The largest recall costs came from business interruption & product disposal

The highest recoveries came from insurance proceeds

The full report can be viewed by clicking <here>

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