990504 Detailed Food Safety Programs Not Enough!

Boston - Food companies can have sophisticated food safety programs in place and still face enormous trouble. A recent example is Thorn Apple Valley, Inc., which has one of the most comprehensive food safety programs in the meat industry, yet, last month, it filed for Chapter 11 protection, and last week, its stock fell 18.3%.

In December 1998, the USDA shut down Thorn Apple's Arkansas plant for violation of federal sanitation regulations. Consequently, Thorn Apple voluntarily recalled 30 million pounds of product produced in that facility. The Arkansas plant has not yet reopened.

On April 13, the USDA issued a broad statement that Thorn Apple products were unfit for human consumption. It failed to point out that only product produced in the Arkansas facility was in question, and, most importantly, that no illnesses were reported and no product found to be tainted. As a result, the company is holding an additional 21 million pounds of product.

The USDA's release caused enormous damage to the reputation of the company. Consumers are returning product and stores are concerned about stocking Thorn Apple products. In an unprecedented move, the USDA issued a second release to clarify its statement of April 13.

Increased focus on food safety by regulators, consumers and of course the media has resulted in heightened awareness and more aggressive monitoring. Despite the USDA's attempt to amend its inaccurate and harmful statement, Thorn Apple was unable to stop the unfolding of a crisis that caused tremendous damage.

In this current atmosphere of increased scrutiny, it is no longer sufficient to have cutting-edge processes in place. Food companies must implement strategic crisis communication plans, designed to retain control, to minimize damage and to support repair work.

The members of Clarke & Company's Crisis Communication Center work directly with their clients to develop specific, in-depth crisis plans that outline step- by-step recommendations about how, when and what to communicate with all key audiences during any type of crisis.

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