Social Media Can Hurt a Company

By Jessica Theisman, Associate Editor

Product recall coverage has a publicity element. California Ag Today recently spoke with Caitlin McGrath, national product recall and contamination risk consultant with Lockton Insurance Brokers, about the importance of the topic.

Caitlin McGrath, with Lockton Insurance Brokers.

Product recall coverage’s publicity element can be adverse, with the accusation of contamination coming into play.

“The example I always use is a mom who puts online a food item that made her kid sick, and this gets shared 100,000 times. You get calls from your customers, supermarkets, and drug stores asking you to stop sending your product,” McGrath said.

If products are not selling, that can be a very significant loss.

“Most recalls are voluntary. They have to be reported to the FDA if they are going to cause bodily injury or property damage,” McGrath said.

She suggests having an internal communication and external communication setup. Be aware of what testing labs you are going to use, what PR companies you are going to use.

Many times, companies try to execute their recall and are not ready for the customer demands.

“Sometimes customers are coming to them and saying, ‘you owe us all this money,’ ” McGrath said. “It is important to have the plans for the whole logistics of the recall.”