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Recall scares may backfire on safety effectiveness

Survey reveals national apathy over food and drink public alerts UK consumers are increasingly turned off by food scares and product recalls - with almost 70% of shoppers saying they are hardly aware of national product alerts and fewer than 20% trusting the manufacturer or retailer to give them accurate information, a new nationwide survey reveals. Ironically, as the EU and UK regulatory and advisory authorities report soaring numbers of recall and safety reports in the last year, their effectiveness in terms of consumer safety seems to be diminishing as consumer apathy sets in. The survey, conducted by European risk management and PR experts Razor, reveals for the first time solid statistical evidence that partially undermines the approach adopted by manufacturers and government advisory bodies who feel it is both their legal and moral responsibility to 'tell it all and tell it fast' whenever a product emerges as a threat to human safety - especially if it is a food or drink and however theoretical the risk. Among headlines emerging from the survey are: -67% of those questioned, male and female, are either not aware of any product recall alerts in the last year or only aware of one or two. -The most trusted source of product safety advice and information are the regulatory bodies or independent authorities (38%), like the Food Standards Agency, local councils and the Consumer Council. - Only 17% said they would trust a manufacturer's advice - 15% would turn to the media for their information - and a mere 13% said they would trust the retailer. - On food safety alerts specifically, over a fifth, 21%, feel less confident about food safety now than they did a year ago and 16% 'don't care about such alerts and don't take any notice of them'. Commenting on the findings, Chris Woodcock, Managing Director of Razor, explains: "More than 1,300 food safety incidents were investigated by the UK Food Standards Agency last year, the first time there was an industry-wide, reliable tally. Yet the survey shows only the minority of these, that progress into full-blown recalls, are getting the message across. "There are various reasons why product alert notifications are increasing, not least the 2005 product safety legislation forcing manufacturers to be responsible for informing the authorities and consumers of any potential risk to consumers from their products. In addition, beyond pure compliance, there is also a growing desire and need on the part of organisations to live up to their corporate and social responsibility commitments, by doing - and being seen to do - the right thing. "However, our survey shows that the sheer volume of recalls and warnings is increasingly falling on deaf ears. Moreover, and perhaps even more worryingly, the trend for those who do take any notice of the advice is to trust what the media tells them more often than the retailers,' and almost as often as the manufacturers,' interventions. "Although the advisory bodies might be mildly encouraged by our findings, this is a sharp blow for FMCG brands who have built up brand equity over many decades and who can suffer major dents in sales and loyalty as a result of recalls or other incidents. It clearly indicates that more proactive risk management and reputation-building work needs to be done to recover trust and overcome the scepticism, particularly following some high-profile brand incidents in the first half of 2007." The current rate of recalls and alerts is no social or commercial accident. More stringent public alert demands arose as a result of European legislation, which established the European Food Safety Authority and new procedures in food safety back in 2002. Articles in the legislation relating to traceability and transparency forced manufacturers to be more open about product recalls. Meanwhile, the volume of alerts shows no sign of abating, nor does the provision of timely public advice: in the last year to spring 2007, the Food Standards Agency (FSA) dealt with 81 food alerts issued to local authorities and 478 notifications to the European Commission, through the Rapid Alert system for Food and Feed that supplies Member States with two-way intelligence on measures to ensure food safety. In a parallel move, the US Food and Drug Administration (FDA) announced in June 2007 a new advisory committee designed to counsel the agency on how to strengthen the communication of risks and benefits of FDA-regulated products to the public. The Risk Communication Advisory Committee will have a three-part role: help the FDA better understand the communication needs and priorities of the general public; advise the FDA on the development of strategic plans to communicate product risks and benefits; and make recommendations to the FDA on what current research suggests about crafting risk and benefit messages, as well as how to most effectively communicate specific product information to vulnerable audiences. David Honour, Editor of risk management and business continuity website www.continuitycentral.com; adds: "The momentum for food and drink manufacturers and retailers to take more action has been building seriously for about three years, triggered by the FSA and the British Retail Consortium's product recall guidelines. It seems to be becoming a positive choice for boardroom teams, not just a distress purchase by companies that feel under duress." Other recent industry data demonstrates that recalls are also becoming increasingly international, with 48 per cent of European recalls involving products made in China, meaning that UK businesses relying on Chinese manufacturers are increasingly vulnerable, especially as Chinese legislation is still not wholly aligned with European. Chris Woodcock concludes: "There is an obligation for legal and regulatory compliance, that manufacturers are heeding. But there is also a much greater need for pre-emptive risk management work to prevent incidents arising or to mitigate their effects, on the consumer and the brand, when they occur." A full copy of the survey results is available from Razor for £250 + VAT. Email kate.hessian @razor-pr.com Tel: 01869 353800