Food firms ‘suffer red tape allergen product recalls’
The number of food and drink products being removed from shelves as a result of unreported allergens on packaging climbed by 60% last year, according to the research.
Last year 96 products were removed due to unreported allergens on pre-packed food labels, compared with 60 withdrawals in 2014. Unreported allergens on packaging was now the UK’s leading cause of food withdrawals, said the law firm.
“The research highlighted a growing pressure on food manufacturers to conform to rigorous EU food reporting standards,” said the firm.
Product destruction
Higher costs linked to product recalls included: transport and logistics, communications, product destruction, retailers and customer reimbursements and legal fees.
The EU’s Food Information for Consumers Regulation, which came into force in December 2014, had significantly “toughened up allergen labelling requirements” in pre-packaged products, said the firm.
The new regulation stated that allergens must be emphasised in the ingredients list. That had driven the increase in the number of products withdrawn.
Before the new legislation, manufacturers carrying out product risk assessments for allergens may have considered the amount of allergens in a product so small that the risk was negligible.
But now, supermarkets and other retailers, concerned about contravening EU laws, were “putting food items increasingly under the microscope”, which has led to a growing number of product removals.
EMW explains that the cost of food withdrawals can be hugely damaging to companies, with potential losses running into the hundreds of thousands.
EMW consultant Sebastian Calnan said: “Public scrutiny on food manufacturing has intensified greatly in recent years, often with good reason.
“However, the recent and seemingly heavy-handed crackdown on food manufacturers regarding allergen labelling has undoubtedly put a massive strain on the industry.
“With a large upswing in the number of food items being removed, food producers have to be extremely aware of the tough EU criteria to ensure they do not fall foul of the legislation and suffer from any subsequent losses to revenue.”
Product withdrawal a growing problem
Losing market share during a period of product withdrawal was a growing problem, said Calnan.
“Businesses increasingly have to put contingency strategies in place to be able to respond quickly and efficiently to allergen withdrawals, which in addition to the direct costs, can be extremely expensive and burdensome.”
In addition to direct costs, the indirect costs – such as the damage to brand loyalty and reputation, which can take years to develop – can be even more damaging.
Food and drink manufacturers may also suffer from the potential loss of customer loyalty, as long-term customers find alternative products during periods of withdrawal.
Meanwhile, the latest advice on how to avoid a damaging product recall will be one of the subjects under discussion at the Food Manufacture Group’s one-day food safety conference in London on Thursday October 13.
The costs of food and drink product recalls
Direct
• Transport and logistics
• Communications
• Product destruction
• Retailers and customer reimbursements
• Legal fees
Indirect
- Damage to brand reputation
- Lost sales
- Loss of consumer loyalty