In 2018, US companies experienced 213 pathogen related recalls. What did that cost them? We did a bit of digging and here is what we found…Over half of all recalls cost more than $11 million.
We recently attended a food sanitation conference and someone in the audience asked the panel, “How much does a recall costs…or a range I might expect?” Surprising no one had an answer.
We thought this was an important question because it helps us all better understand the cost of waiting to long to address food safety concerns or not having enough effective interventions to successfully manage the risks.
The best source we discovered was published by GMA (The Association of Food, Beverage and Consumer Products Companies) and Ernst & Young. The full report can be viewed by clicking <here>
This study was published in 2011 so we have adjusted for inflation to 2019 US dollars.
48% of recalls cost less than $10 million
47% of recalls cost between $11 million to $110 million
5% of recalls cost more than $112 million
Graph: ESTIMATED FINANCIAL IMPACT AS A RESULT OF A RECALL Including sales loss, direct recall costs, etc
The implementation of additional food safety hurtles may have helped these companies reduce their risk and financial impact. We may be able to help, connect with us <here>