 991250 Food Recalls: How Can Your Company Prepare?December 31, 1999 Chicago - Following the recent food recall by gourmet food producer D'Artagnan Inc. for suspected listeria contamination and last the recall of 90 tons of beef for possible E.coli contamination by Dallas-based Supreme Beef Processors, Insurance Brokers Service, Inc. (IBS) President and COO Bob Greenebaum offers advice to food companies: “The truth is, for big and small food producers alike, recalls can cost millions of dollars in product losses and operational delays, not to mention intangible losses to a company's reputation and customer confidence,” Greenebaum said. “Protecting the consumer is the number one priority in a product recall. But can you do so without crippling your business?” Greenebaum, whose company offers product recall insurance for food companies, stresses that while manufacturers and processors may have an understanding of the operational aspects of a recall -- which regulators to notify, how to contain the exposed product and how to track a problem -- they may not have a plan that incorporates these logistical requirements with reputation-saving communications efforts. He suggests that companies must be prepared to deal with a recall from several angles, including financial protection, logistical planning and effective communication with the public and media. Currently, there are a number of different insurance products on the market offering financial coverage for both accidental contamination and products tampering. For example, IBS's Total Recall PLUS product includes a unique crisis management component that assists companies both with logistics and communications considerations, as well as real-time crisis support to safeguard the insured's reputation. Again emphasizing the growing number of recalls, Greenebaum advises companies to prepare for a worst case scenario. “It's an up-front investment that can save your company.”
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