Recently, when consumers were sickened after eating Raw Farms, LLC cheddar cheese products, the FDA determined that the products were contaminated with E. coli and recommended a recall. Raw Foods refused to recall the products or pull their cheddar cheese from supply. The company disputed the FDA’s findings, arguing that internal testing showed no pathogens in their products. After a two-week standoff, Raw Farm eventually issued a recall “under protest,” while continuing to dispute the legitimacy of the FDA’s evidence. Raw Farm’s unwillingness to cooperate with the FDA’s findings and issue an immediate recall shows what can happen when a company’s instinct is to contest rather than act: consumers lose faith in the brand.
The way a company behaves during a food recall is one of the clearest signals available about whether consumer safety is driving their decisions. Since consumers don’t have behind-the-scenes visibility into companies’ recall decision-making process, companies must demonstrate through words and actions that they prioritize public health.
Deciding whether to recall, how much to recall, and when to act are rarely straightforward.Companies must weigh evolving information, public health risks, legal considerations, supply chain complexity, and potential financial consequences. So, how can companies convey their trustworthiness when faced with a recall situation? According to Roger Hancock, CEO of Recall InfoLink and one of the foremost experts on recalls:
- Be cooperative and proactive. Critics sometimes suggest the often-used phrase “out of an abundance of caution” is used as a way to displace liability. However, erring on the side of consumer protection if there’s any chance that product safety was compromised is the right approach. Raw Farm’s “under protest” phrase is far more concerning, conveying that the company wasn’t acting willingly to avoid potential consumer harm. It may take them a long time to recover from these unfavorable optics.
- Weigh business risk against consumer risk. Consumer trust must be a line item in the risk assessment—perhaps one that carries more weight than anything else. Prioritize public health and consumer safety, even at the expense of your business. Reassure key audiences that your company works continuously to protect consumer health and prove with your actions that you will spare no expense to protect them.
- Act before being forced to. Companies that recall under duress don’t convey trustworthiness. If well-respected regulatory bodies like the FDA have evidence that your products have been compromised, cooperate and issue an immediate recall.
- Own what went wrong. Consumers understand that recalls can happen, even to companies with best practice food safety protocols. A recall won’t necessarily break consumers’ trust or damage your brand reputation—but only if your company owns what went wrong, and doesn’t delay, deny, or deflect.
- Communicate clearly, early, and transparently. Trustworthy companies are transparent about the recall, explaining what happened and what needs to happen next. They issue clear, actionable messages, including product identifiers and instructions on what to do if consumers bought or consumed these products.
- Err on the side of consumer protection. If there’s even a possibility that a food product has been compromised, recall it to protect public health. Unwillingness to issue a recall can be a red flag to consumers, trading partners, and regulatory bodies. Ultimately, being uncooperative about issuing a recall may be more harmful, in terms of long-term reputational damage, loss of consumer trust, legal liabilities, declining sales, etc.