One of the biggest threats to any frozen food company is a recall. Whether it’s caused by biological contamination or the discovery of foreign materials, being forced to recall a product can produce significant and often lasting effect on companies.
The price tag of a recall involves the costs of notifying any pertinent regulatory bodies, the supply chain and consumers, as well as retrieving and destroying product that has already been shipped (reverse logistics) and destroying any related product that remains at the plant. Also included is the cost of labor to not only perform all the above tasks, but also the labor costs required to produce a replacement run of the product.