Posted by: Sriniwas Acharya | August 30, 2013
Food recalls are costly and risky and can threaten the existence of a company. Research indicates that approximately $20 billion is lost every year in the U.S. due to recalls. This not only includes the cost of product recalls, but also the ripple effect of a single recall on multiple stakeholders, including competing products in the same category. According to a Grocery Manufacturers Association (GMA) survey, 81% of respondents deem financial risk from recalls as significant to catastrophic.