How to Survive and Thrive During a Food Recall Media Crisis
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This document provides guidance on preventing, preparing for, addressing, and recovering from a food recall crisis. It emphasizes having effective product development and quality assurance systems to prevent issues, and being prepared with a communications plan that informs all stakeholders, manages public relations, and recovers customer loyalty. The key is a quick, transparent, and responsible response that makes customers whole and tells the company's positive story to turn the crisis into an opportunity.
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How to Survive and Thrive During a Food Recall Media Crisis
- 1. How to Survive and Thrive During a Food Recall Media Crisis 1
- 2. 2
- 3. Crisis Communication Prevent Prepare Address Recover = 75% } 25% 3
- 4. Prevent it! Effective product development Rigorous specifications: build, adhere, change with great care Independent QA Only you can prevent product recalls 4
- 5. Management Communication Project Management Communication CEO Finance HR Legal Sales & Marketing Supply Chain QAPurchasing R&D Effective product development systems • “Machineable” product design •Innovation and new processes • Cost-savings initiatives that affect product design •Supplier qualification 5
- 6. Rigorous specification process Integrated product design process QA testing new resources; new products; new formulations Cross-functional involvement in and approval of final product specs Monitor and adhere to specifications 6
- 7. Independent QA Direct, clear access to CEO Dotted line reporting Avoid straight-line (only) to Manufacturing 7
- 8. Be Prepared "He who fails to plan is planning to fail.” - Winston Churchill 8
- 9. Stuff Happens Natural Disasters Supplier errors False Rumors Product Tampering Equipment & Tech failure Human error industrial accident Human error harmful product Organizational misdeeds SOURCE: Crisis Management & Communications 9
- 10. Stuff Happens Environmental Issue/Accident Investigation/Lawsuit/Fine/Settlement Poor Financials/Stock Performance Structure/Ownership Issue (M&A, etc.) Management Change/Dismissal Incident/Allegations Consumer Complaint/Issue Employee Complaint/Issue Labor Dispute Workplace Injury/Fatality SOURCE: Crisis Management & Communications 10
- 11. Do you have a Plan? Marketing communication plans and process in place Specific Public Relations contact Can mobilize and execute broad communication initiative …. cohesively Existing media list and relationships ‘Media capable’ – traditional and social Tested it via ‘dry run(s)’ 11
- 12. Fix the Product Issue • Inform Sales Team • Inform Supply Chain Partners •Brokers, Distributors, etc. •Retailers • Inform regulatory agency (e.g. FDA) Inform Constituents • Inform Media • Inform Consumers • Structure and Leverage Feedback Loops Protect and make whole Protect and maintain reputation Cohesive Communications Plan 12
- 13. Fix the Product Issue Knowledge = Product Liability and Responsibility There’s nothing to “spin” 13
- 14. Key Elements Scope of the problem Geographies, brands, skus = = Clear and complete How to identify What they need to do, when, how to inform that it has been completed Where to get additional information, who is their key contact 14
- 16. Regulatory Agencies www.fda.gov Safety Reporting Portal www.usda.gov FSIS Recalls Portal
- 17. Fix the Product Issue • Inform Sales Team • Inform Supply Chain Partners •Brokers, Distributors, etc. •Retailers • Inform regulatory agency (e.g. FDA) Inform Constituents . • Inform Media • Inform Consumers • Structure and Leverage Feedback Loops Protect and make whole Protect and maintain reputation Cohesive Communications Plan 17
- 18. PR •Craft key messages • Distribute • Handle media and influencer communications • Hotline • CRM/database capturing • Analysis/reporting of inquiries • Alerts • Announcement ads • Public Service Announcements Customer Service AdvertisingInteractive • Online crisis management • Web-based communications • Reputation monitoring •Social media: FB, Twitter, YouTube Crisis Communications 18
- 19. Key Elements Scope of problem Geographies, brands, skus =>Clear and complete How to identify What recipient needs to do Where to get additional information Who to contact for additional (emergency) help 19
- 21. Website Landing Page and…. 21
- 23. PR •Craft key messages • Distribute • Handle media and influencer communications • Hotline • CRM/database capturing • Analysis/reporting of inquiries • Alerts • Announcement ads • Public Service Announcements Customer Service AdvertisingInteractive • Online crisis management • Web-based communications • Reputation monitoring •Social media: FB, Twitter, YouTube Crisis Communications 23
- 24. You Can’t Control the Message 1 – Way Company controlled Mass market Persuade to buy 2+ – Way Dialogue Consumer controlled Niche/micro-target market Engage to earn relevance 24
- 25. 25
- 26. “No Comment” is not an option
- 27. Key Elements Scope of problem Geographies, brands, skus =>Clear and complete How to identify What recipient needs to do Where to get additional information Who to contact for additional (emergency) help Make whole – rebuild customer loyalty 27
- 28. Manage the Message….. Media Contact identifies appropriate Spokesperson Media Contact supports Spokesperson Crafts talk points Media trains Spokesperson Present with interviews You may need to hire a PR/Crisis Communications company (from your ‘Rolodex’) 28
- 29. Public Relations Be Quick, Contrite and Responsible 29
- 30. Marketing/PR Crafts Key Messages • ONE Media Contact • All Media Requests go to Media Contact • Media Contact decides which/how to respond 30
- 31. …Select the Messenger Media Contact identifies appropriate Spokesperson Title and expertise (CEO, Quality Assurance – NOT Sales) Articulate, credible, and appropriate for that medium 31
- 32. 32
- 34. Dry Run • Walk through a hypothetical Product Recall • Post-audit, fix readiness gaps • Document procedures 34
- 35. Recovery • Move On: Consumers are very forgiving • Tell and widely publicize your positive story • Rebuild customer and consumer loyalty •Make Whole PLUS 35
- 36. PR •Craft key messages • Distribute • Handle media and influencer communications • Hotline • CRM/database capturing • Analysis/ reporting of inquiries • Alerts • Announcement ads • Public Service Announcements Customer Service AdvertisingInteractive • Online crisis management • Web-based communications • Reputation monitoring •Social media: FB, Twitter, YouTube RECOVERY Communications Make Customers Whole PLUS Tell YOUR Story Promote event Tell YOUR Story Promote event Refund + Repurchase Offer Promote event • “Re”-trial • Repeat 36
- 37. Food Recall Crisis = Opportunity 37 • Resume positive brand communication • Incent trade partners to restock and promote your brand • Incent consumers to retry your brand • Provide additional incentive for repeat business and goodwill
- 38. -15% +7%Share prices of companies that mishandle a crisis one year later Share prices of companies that handle a crisis well one year later Source: The Impact of Catastrophes on Shareholder Value; Sedgwick Group, Knight and Pretty Food Recall Crisis = Opportunity 38
- 39. Crisis Communication Prevent Prepare Address Recover = 75% } 25% 39
Editor's Notes
- As well as multiple channels to communicate, there are now multiple formats in which to express your opinion. A crisis isn’t just refined to the written word anymore. With more and more people owning multi-media publishing tools to undo your “official” messaging, leveraging the power of video is becoming an increasingly important part of your response.
- Here’s another way of looking at the cost of not planning– this study out of Oxford shows that there is a real material value in crisis planning and preparedness. The study claims that there is a 22% difference in stock market performance between companies that are seen as handling a crisis well and those that do not. Now for any of you who are responsible for the P&L, a 22% difference is huge. Just picture what the market capitalization value of that might be for a sizeable company--- the average S&P 1200 company had a market value of $23 billion year. If it lost 15% that would be about $3.5 billion and if it gained 7% that’s more than $1.5 billion. So the value of handling a crisis well can easily reach a billion dollars or more!