VIEWS: 68 PAGES: 21 CATEGORY: Health & Safety POSTED ON: 9/2/2011
Managing your food safety practices and communication can save you millions, not to mention your reputation. This in depth presentation highlights how to ensure your food safety protocol and communication - both to internal constituents and external stakeholders - is up to snuff.
TOTAL RECALL: Managing Food Safety Protocol and Avoiding Crisis . Presented by: Mareya Ibrahim, Founder and CEO EAT CLEANER® and Grow Green Industries, Inc. 2 The State of Food Safety Cost to human safety and the bottom line According to Centers for Disease Control and Prevention, 76 million Americans are impacted by food-related issues each year, with 325,000 hospitalizations and 5,000 deaths from foodborne illnesses. • Product recalls have more than doubled since 1999; salmonella and undeclared allergens risk • From 2007 to 2008 alone, food and beverage recalls increased by 60 percent Microbial contamination primary cause of recalls Only about 1% of all imports are inspected according to the USDA 3 Food Safety Vulnerability Increasing More risks on the horizon Shifting demographics and changing consumption patterns reinforce the need for food safety awareness. Consumption of raw products is increasing very rapidly; fresh spinach consumption grew 180 percent between 1992 and 2005. The U.S. population is becoming more susceptible to foodborne illness — 20 to 25 percent of the population is comprised of the elderly, children and pregnant women — the highest risk categories. By 2015, it is estimated that one in five Americans will be over the age of 60 and, therefore, more susceptible to certain types of infections. As more Americans live longer with chronic illnesses, including cancer and diabetes, vulnerability will only increase. 4 Definition of a Recall Identifying the root and the severity The FDA definition: Recalls are actions taken by a firm to remove a product from the marketplace. Recalls may be conducted on a firm’s own initiative, by FDA request, or by FDA order under statutory authority. • Class I recall: A situation in which there is a reasonable probability that the use of or exposure to an identified product will cause serious adverse health consequences or death. For example, salmonella in peanuts. • Class II recall: A situation in which use of or exposure to a violative product may cause temporary or medically reversible adverse health consequences or where the probability of serious adverse health consequences is remote. For example, allergic reactions due to undeclared ingredients. • Class III recall: A situation in which use of or exposure to a violative product is not likely to cause adverse health consequences. 5 Recall Rationale Reasons and Triggers Selected Recall Reasons: • Microbial contamination • Misbranding (e.g., undeclared allergens) Main reasons for product recalls • Foreign material contamination • HACCP plan failure • Chemical contamination • Illegal pesticide or drug residues • Packaging defects • Worker illness or disease • Intentional contamination Common Recall Triggers • Detection of a pathogen • pH value change on retained samples • Micro testing of in-line product • Micro testing of finished goods • Misinformation and labeling • Positive Listeria monocytogenes • Harmful substance levels, e.g., pesticide, melamine • Product tampering or sabotage 6 Headline-Making Recalls In the last 5 years 2011 • Jennie-O recalled almost 55,000 pounds of turkey burgers due to drug-resistant salmonella • Nearly 3,000 cases of Dole brand salad bags were recalled after a random test found the bacteria listeria 2010 • More than 500 million eggs were recalled after dangerous levels of salmonella were detected in the eggs of Wright County Egg and Hillendale Farm in fourteen U.S. states. Nearly 2,000 illnesses were reported. 2009 • Salmonellosis in peanut butter from Peanut Corporation of America became "one of the nation’s worst known outbreaks of food-borne disease" in recent years. Nine dead, estimated 22,500 sickened. •Nestlé recalled its Toll House refrigerated cookie dough products after the FDA reported there was a possibility that the E. coli O157:H7 outbreak; sickened at least 66 people in 28 states. 2008 • At least 1442 cases of salmonellosis food poisoning in 43 states were reported from suspected ingredients found in fresh salsa, such as raw tomato, fresh jalapeño pepper, fresh serrano pepper, and fresh cilantro. 2007 • ConAgra asked stores to pull its Banquet and generic brand chicken and turkey pot pies due to 152 cases of salmonella poisoning in 31 states linked to ConAgra pot pies, with 20 people hospitalized. 2006 • E. coli O157:H7 in bagged spinach packaged by Natural Selection Foods and likely supplied by Earthbound Farm. 3 dead, and 198 people reported sickened by the outbreak across 25 States. 7 The World’s Largest Outbreak A disaster on all fronts E.coli outbreak in Germany, 2011 World’s largest outbreak, 50 dead and thousands sickened to organ failure Lettuce, tomatoes and cucumbers suspected and blacklisted; finger pointing led to reputation misstep and cost Germany under fire for taking so long to identify the source of lethal E.coli Failure to provide the public with clear information complicated matters further The bottom line…3 weeks after the initial outbreak and hundreds of millions of dollars in losses for farmers across the European Union sparked a war of words between leaders. Citing safety concerns, Russia and Saudi Arabia blocked all imports of produce from the EU. 8 The Importance of Food Safety Protocol Fiscal and relationship ramifications • Average cost of a recall to companies is $10 million • Imposed federal investigations and time-consuming paper trail identification • Stock price declines of up to 22 percent within two weeks after a recall announcement • Potential brand damage, category impact and long term lost sales 9 Anatomy of a Recall Media love them, everyone else hates them • Recalls happen every week and largely go unnoticed when handled efficiently and competently • A great food scare can make headlines and sell newspapers and the bigger the brand, the bigger the coverage • Speed of action and communication are vital, but it is equally important for manufacturers to take a little time to ensure that information is accurate. • Bungled recalls are those where there is no clear process or decision-making, delays in admitting the problem, or worse, ignored or even covered up, only to come to light later. 10 A Tale of Two Recalls Same company, two different outcomes 2002 Recall 2007 Recall 11 Timely Response is Critical Timing is everything Identification and timely escalation of issues are critical in preventing delays throughout the entire recall process. •Manufacturers typically take from 0.5 to 72 hours to complete the identification process • Smaller organizations with fewer facilities complete the identification process in between 0.5 and 17 hours. • Larger organizations take 32 hours on average; more decision makers, products, facilities and distribution channels to trace Source: Deloitte Study - Recall Execution Effectiveness: Collaborative Approaches to Improving Consumer Safety and Confidence 2010 12 Total Recall Management From Prevention to Governance Prevention: Inhibits food Issue Detection: Starts Investigation: Determines Recall Decision: safety issues through from the time food safety the severity and scope Completes the quality assurance issue is reported until an through laboratory tests. identification process processes investigation is launched. Technology is used to by reaching an internal locate the product. decision that a recall should take place. Governance: Helps ensure that crisis teams are involved from issue detection to investigation. Source: Deloitte Study - Recall Execution Effectiveness: Collaborative Approaches to Improving Consumer Safety and Confidence 2010 13 Proactive Measures Integrated technology, real time communication A comprehensive HACCP program is employed by leading companies using: • Integrated technology systems rather than paper-based or spreadsheet systems • Extends beyond the company’s facilities and goes all the way back to the raw material source, including farmers for agricultural products • Communication around potential issues on a near real-time basis • E.g. Sensor would detect the temperature change, set off an alarm / alert and shut off the production line automatically Programs like Rapid Recall Exchange ensure prompt and accurate product recall and withdrawal notification communications for retailers, wholesalers and suppliers through a web-based service, 24/7. 14 Crisis Management Planning Issue Identification-Feedback Source: Deloitte Study - Recall Execution Effectiveness: Collaborative Approaches to Improving Consumer Safety and Confidence 2010 15 Communication is Key Internal and external planning Proactive Internal Communication: • Assemble a task force team and appoint lead crisis management person • Identify an official spokesperson for internal communication • Put together a list of emergency names and contact numbers • Create instructions on communicating with your employees; provide them with information on their role in the situation and dealing with the media • Test out the plan by running a simulation 16 Communication is Key Internal and external planning Proactive PR: • Develop a list of questions and answers for the media • Draft press release with basic company information • Assemble a list of local media contacts to proactively approach or organize for a press conference or briefing when necessary •Be sure your spokesperson is truthful, professional and media trained; develop a list of do's and don'ts on dealing with the media. 17 Communication is Key Internal and external planning Proactive Retailer Communication: • Identify a single point of contact to support recalls at stores • Use automated systems for transmission of information to stores • Run 24/7 recall operations; have plans for recall during the weekend • Require stores to send a confirmation of receipt Proactive Consumer Communication: • On websites, in retail stores and in the national press • Text message campaign • Social media via P2P platforms such as Twitter and Facebook and blogs 18 Crisis Management Planning Training and Implementation 19 “Failure to Plan is Planning for Failure” Being proactive is critical • Identify key risks and mitigate them as much as possible • Adhere to stringent internal process and accountability procedures • Formulate internal and external communication plans and practice them • Act swiftly but efficiently • Notify stakeholders and communicate openly 20 For more information, contact: Mareya Ibrahim T: 888-284-2435 xt. 702 email@example.com Thank Y U
"Managing Food Safety Protocol and Crisis Communication"