Ready For A Recall?

Handled improperly, a store brand product recall can wreak havoc on the reputation of both the brand and the retailer. But when the retailer and its private label supplier work together to mitigate the situation quickly and effectively, the reputational damage — and, of course, the potential risk to consumers — is minimized.

Progressive Grocer's Store Brands asked a handful of industry experts to weigh in on best practices here. Participating in our virtual roundtable are Joe McKie, vice president, private brands for the Food Marketing Institute (FMI), Arlington, Va.; Eddie Owens, director of communications and public relations for United Supermarkets, Lubbock, Texas; Sharrann Simmons, director of product marketing for Silliker Inc., Chicago; and Hilary Thesmar, Ph.D., RD, vice president, food safety programs for FMI.

PG's Store Brands: In your view, what is the biggest mistake a food retailer could make when facing a recall of a store brand product, and why?

Joe McKie: Not having a recall program already in place. These elements can often include isolating the product across the chain of custody; clear and concise instructions to operations and warehouse associates on what happened, what they need to do and what they should communicate to the customers; a clear line of communication with their appropriate counterparts at the supplier company; and a quick, clear and proactive response to consumers describing the situation, what you are doing about it, how you will prevent it from happening again, and what actions they need to take.

Eddie Owens: I think the biggest mistake a retailer can make is not taking any recall, whether store brand or national brand, seriously and responding as quickly as possible. This includes prompt removal and disposition of product from store shelves, providing appropriate information for store guests and involvement of the company's communication team so that appropriate responses to inquiries from consumers and news media are provided in a timely manner. Prompt responsiveness to product recalls is essential because the reputation of both the manufacturer/supplier and supermarket retailer are at stake.

Sharrann Simmons: In a recall situation, the food retailer should be 100 percent focused on one thing: protecting their brand equity. The biggest mistake a food retailer can make when dealing with a recall is trying to "hide" the issue and not providing full transparency to their consumers. A recall can be announced in a very positive way that reconfirms the retailer's commitment to food safety and quality management. Often, the main focus is the physical recall activities of getting the products off the shelves while placing little or no importance on the communication strategy. An important part of the recall strategy should be some type of "brand recuperation" activity, which could be extra couponing, special promotions or other activities to highlight the key attributes of that brand.

Hilary Thesmar: Having proper preparations and understanding the recall process are critical to a successful safety program, but no system is perfect, and recalls still occur. A breakdown in food safety systems can come from a lack of management commitment, training, communication, record-keeping or other food safety requirements. Successful companies dedicate the resources and provide the support to not only implement, but also maintain the food safety system. When they do, fast communication across the supply chain is critical to ensuring product is removed from shelves. Just as we work with national suppliers, private brand products have equal opportunity to join programs such as our Rapid Recall Exchange (RRE) in order to inform product recalls.

PG's Store Brands: Where could store brand suppliers involved in store brand product recalls improve when it comes to recall response?

McKie: In bettering the recall response process, I would argue that it's crucial to identify the size and scope of the recalled products — what and how many products are included in the recall, where they are in the supply chain and how long before they can refill the pipeline with new products.

Simmons: Recalls are the ultimate in crisis management. One of the biggest mistakes a private label supplier can make when facing a recall is a lack of coordination with their client, the retail store chain. There is an urgent need to work together to 1) confirm the reason for the recall and level of health risk, 2) identify the source of problem (foodborne pathogen, mislabeled allergens, etc.), and 3) determine an action plan and communication strategy [with] consumers, media, regulatory agencies and other key partners.

Thesmar: Overall, suppliers and retailers handle recalls really well. Retailers, wholesalers and suppliers are making the RRE a central part of their recall processes. The information RRE provides is complete and allows them to take immediate steps to notify store/distribution centers of the appropriate actions to take regarding a product recall or withdrawal. RRE is designed to convey all essential information necessary during a recall between trading partners.

PG's Store Brands: How can retailers and private label suppliers work better together to handle a store brand product recall?

Simmons: The first step for retailers and private label suppliers is to work together to develop a comprehensive recall plan for all products manufactured by that supplier. The retailer may have their own internal recall plan, and the supplier may have their own internal plan, but it is important for these two partners to work together and create a specific recall plan for the private label products produced by that supplier. Implementing an existing plan is the key to providing an effective and quick response to any recall situation.

PG's Store Brands: If you could give just one piece of advice to food retailers in terms of handling a store brand product recall, what would it be, and why?

McKie: Private brands are often managed differently than national CPG companies' product recalls. When a retailer owns a brand, that retailer owns the customer experience and the brand experience. The retailer also owns the process and the outcome — from developing protocol with suppliers before products are ever delivered to a warehouse [to] coordinating the communication, response and remedy. A retailer should never outsource its reputation and brand equity to someone outside the company; thus, a retailer brand owner must build into the product development process all of the safeguards and assurances that any national CPG company would develop for its respective brands.

Thesmar: Collaboration and communication can mean the difference between a crisis and a solution. Working with your suppliers on recall and withdrawal notifications will ensure that products are rapidly removed from the shelves. In addition, retailers need to communicate with customers and provide instructions on how to return or discard the product.

"An important part of the recall strategy should be some type of 'brand recuperation' activity, which could be extra couponing, special promotions or other activities to highlight the key attributes of that brand."

-Sharrann Simmons, director of product marketing, Silliker

"A retailer should never outsource its reputation and brand equity to someone outside the company; thus, a retailer brand owner must build into the product development process all of the safeguards and assurances that any national CPG company would develop for its respective brands."

-Joe McKie, vice president, private brands, the Food Marketing Institute