PRODUCT RECALL SPECIALTY PRACTICE
RECALL COVERAGE
FOR THE FOOD AND BEVERAGE INDUSTRIES
FOOD & BEVERAGE PRODUCTS – ACCIDENTAL CONTAMINATION
As has been the case for the past several years, mislabeling (a form of accidental
contamination) continues to be the leading cause of product recalls, accounting for
approximately 60% of all food-related recalls. Although a product itself may not be
contaminated, a mislabeled product could lead to a recall because it poses a risk for bodily
injury resulting from an allergic reaction. Peanuts, tree nuts, fish, shellfish, eggs, milk, soy,
and wheat are responsible for most food allergies. As of January 1, 2006, a new federal law
took effect that require food labels to list ingredients made from proteins derived from any of
these eight major allergenic foods.
CONTACT
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Accidental contamination is thought of as unintentional contamination by an external source
or substance. This would include contamination by a foreign object (glass, metal, stones,
etc.), chemicals (oil, cleaning solvents, etc), or biological contaminant (listeria, salmonella,
E. coli). These contaminations generally occur either through contaminated ingredients
obtained from suppliers that have made their way through incoming quality control, or
through faulty machinery or facility maintenance. A light bulb breaking over a batch, metal
shavings from a conveyor belt, or a leaking air conditioning unit are but a few real life
examples of accidental contaminations.
FOOD & BEVERAGE PRODUCTS – MALICIOUS PRODUCT TAMPERING
Intentional contamination is a less common but potentially more destructive reason for a
recall. The motives for product tampering vary widely, which makes controlling or managing
the exposure very difficult. Product tampering incidents and threats are usually unexpected,
and motives can range widely. These motives can be financially driven, as with product
extortion incidents in which a perpetrator attempts to extract a monetary demand from a
company in exchange for not carrying out a threat. Although product extortion incidents in
the U.S. are uncommon, certain countries including Germany, Canada, the United Kingdom,
and Australia have a long history of these types of events. The recent Masterfoods tampering
of Mars and Snickers bars in Australia illustrates the disastrous potential tampering threats
carry. Disgruntled employees or customers are another potential tampering threat when they
seek to punish a company for perceived mistreatment. Political, terrorist, or extremist groups
may also target companies due to a country affiliation or controversial product that may
be involved. The Animal Liberation Front (ALF), terrorist groups, and other special interest
groups have all demonstrated their ability to carry out damaging tampering campaigns.
Whether staged or actual, a product tampering incident has the potential to destroy
consumer’s confidence in the safety of your products.
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PRODUCT RECALL SPECIALTY PRACTICE
RECALL COVERAGE FOR THE FOOD AND BEVERAGE INDUSTRIES
FACTORS AFFECTING YOUR VULNERABLITY TO CONTAMINATION
Factors affecting a company’s vulnerability to accidental or deliberate contamination fall into the following categories. Some of
these categories are more controllable and lend themselves to internal procedures to minimize the exposure. Others may be
largely outside a company’s direct control.
• COMPANY PROFILE – Higher profile and visibility equates to a higher exposure.
• TYPE OF PRODUCTS – Products aimed at children (candies, toys, clothing) and those with little protective packaging (fresh
fruits, vegetables, meats) could be at greater risk for recall.
• PACKAGING – A well protected product may lessen the exposure to a deliberate contamination simply because it is more
difficult to tamper. However, it is important to keep in mind that no package is tamper proof.
• LABOR RELATIONS – Facility closings, downsizings, and layoffs, union relations, and general employee relations contribute
to a company’s vulnerability.
• GEOGRAPHIC EXPOSURES – How widely and to where products are distributed may require more resources to track or
recall contaminated products.
• QC/QA PROCEDURES – These are the most obvious and regulated tools to minimize and detect potential contamination.
• PRODUCT SHELF LIFE – The amount of product in the stream of commerce and the amount of inventory available to
replace recalled products may determine how well a company recovers from an incident.
• PRODUCT CODING – Smaller lot size and forward/backward traceability will impact the scope and size of a recall.
• HISTORY – Previous occurrences, copycat incidents, and effectiveness of crisis and recall plans may affect risk levels.
• EXTREMISTS – Sensitive products (animal tested) or political or country affiliation could make a company a target for
intentional contamination.
• PREPAREDNESS – How well is the company prepared to respond to a crisis and, if necessary, recall their products.
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