The Homa Files

Excerpted from Marketing Daily, “CPGs Are Improving Their Recall Response” by Karlene Lukovitz, Dec 5, 2008

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During the past two years, the U. S. Department of Agriculture (USDA) and the U.S. Food and Drug Administration (FDA) issued nearly 500 food safety alerts…

A recent consumer survey … found that 58% of respondents who had heard about product safety and/or quality problems changed their buying habits. Consumers turn away from such products for more than nine months, on average, increasing the likelihood that they will discontinue the use of the product or brand entirely.

“Consumers are becoming less tolerant of recalls, with more than 50% changing their product choices … As these consumers continue to buy different products, product manufacturers can expect lower sales and run the risk of damage to their brands.”

So how well-prepared are CPGs when it comes to product recall response time? Better than many consumers might assume, it turns out.

According to new research…24% of CPGs can currently trace and track a product and issue a 100%-correct recall alert within 6-24 hours, 20% can respond within 1-6 six hours, 12% within 1-2 days, and 8% within 1 hour. However, for another 20%, the response time is between two and five days…CPGs reported having specific goals for further recall response improvement…

Consumers can get food product alerts delivered by email by signing up for free membership in USFoodSafety.com. The service also says it will deliver unbiased articles on food safety issues and advice on safe food handling from academics who are experts in the field.

“Consumers have to become their own food safety advocates by actively searching for recalls and alerts”…

Edit by SAC

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Consumer tolerance of product recalls is declining. While recalls negatively affect brand value, companies with fast response times are more likely to retain the trust of their customers.

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Full Article:
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=96115

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