Embed Size (px)
Citation preview
TAINTED TABLE:FOOD RECALLS ON THE RISE
2016Q2INDUSTRY SPOTLIGHTRECALL
Recall Industry Spotlight • Q2 2016
stericycleexpertsolutions.comCopyright © 2016 Stericycle. All rights reserved.
2
Introduction
Food is a vital part of our everyday lives. It fuels everything we do, shapes our identities, and serves as the centerpiece of most gatherings with family and friends.It’s no wonder that, more than any category, food recalls make headlines and grab the attention of the public. These recalls rose significantly during the first part of this year. As testing procedures continue to advance, it is a trend that will likely continue. In an increasingly global marketplace, this poses new challenges for food producers and manufacturers who face not only more recalls, but also greater regulatory complexity with each safety issue that arises.
Recall Industry Spotlight • Q2 2016
stericycleexpertsolutions.comCopyright © 2016 Stericycle. All rights reserved.
3
Contamination Nation
In Q2 2016, food and beverage recalls jumped dramatically over Q1 – more than 80 times higher for Food and Drug Administration (FDA) recalled units and more than 45 times higher for Department of Agriculture (USDA) recalled pounds.The reasons behind these recalls are as varied as the types of foods affected, but bacterial contamination is among the top causes. The number of contamination recalls for FDA products alone rose 167 percent from Q1 to Q2, and recalled units were more than eight times higher. Looking back further, there were more FDA bacteria-related recalls in Q2 2016 than any quarter in 2014 or 2015. USDA contamination recalls are also on the rise, making up 21 percent so far this year, compared to 16 percent in 2015.
For many of these recalls, the multiplier effect is back in full force. This phenomenon occurs when several recalls involving one ingredient supplier impact dozens or even hundreds of companies, brands, and products. The sunflower seed listeria recall alone accounted for more than 645,000 recalled units in Q2. Since many of these recalls - including some of the highest profile issues - have not yet been reported by federal agencies, the scope of the situation is only beginning to come to light. In some cases, these recalls have crossed regulatory lines to involve both the FDA and USDA, adding additional challenges to an already complex situation.
FDA FOOD RECALLED UNITS
Q1 2016 • 1.4MM Units
Q2 2016 • 117.8MM Units
USDA FOOD RECALLED POUNDS
Q1 2016 • 1.1MM Pounds
Q2 2016 • 53.3MM Pounds
Recall Industry Spotlight • Q2 2016
stericycleexpertsolutions.comCopyright © 2016 Stericycle. All rights reserved.
4
Investing in Testing
The question for companies and consumers alike is: “what is behind these trends?” It may appear that contamination is happening far more frequently. But rather than indicating a growing issue with food safety, many of these recalls point toward advancements in testing – specifically, whole genome sequencing (WGS).The FDA and Centers for Disease Control and Prevention (CDC) are increasingly using genome sequencing to identify contaminants according to DNA. As technology has advanced, this testing has become faster, cheaper, and more precise – allowing regulatory bodies to determine the origins of even small outbreaks.
As testing innovations continue, regulatory bodies are also becoming more stringent when it comes to acceptable levels of pathogens. Previously, food products meant for cooking received more leeway, since heat can kill listeria and other contaminants. But even these products must reach a specific internal temperature to ensure all pathogens are eliminated. And since protecting the public is paramount, regulators are taking a firmer stance on contaminants even as more of them are being discovered.
“As testing innovations continue, regulatory bodies are also becoming
more stringent when it comes to acceptable levels of pathogens.”
Recall Industry Spotlight • Q2 2016
stericycleexpertsolutions.comCopyright © 2016 Stericycle. All rights reserved.
5
Regulatory Food Fight
While food recalls grow in number, they are also growing in complexity. In addition to the multiplier effect causing food issues to cross regulatory boundaries within the United States, many food companies have gone global – adding new regulatory bodies to the mix.Food recalls were increasingly nationwide in the first half of this year, with 20.5 percent of recalls being nationwide, compared to less than 17 percent in 2014 and 2015. Perhaps more significant from a regulatory perspective is the number of global recalls. So far in 2016, about 12 percent of food recalls have been global in nature. Previously, it was never above eight percent.
Food producers and manufacturers increasingly find themselves facing conflicting global regulatory rules. For example, sesame seeds are included in labeling requirements in Europe, Canada, and Australia – but not in the U.S., despite the fact that an estimated 500,000 Americans are allergic to the ingredient1. With differing regulations, what constitutes an immediate recall in one market could be considered a minor error in another.
1www.foodsafetynews.com
Recall Industry Spotlight • Q2 2016
stericycleexpertsolutions.comCopyright © 2016 Stericycle. All rights reserved.
6
Conclusion: Beefing up Recall Plans
The road from field to fork is growing longer and more winding than ever before, and food companies must navigate additional obstacles with an eye toward prevention and preparedness.The moment a positive contamination test is received is not the time to consider how a recall might be managed. No company wants to consider the possibility of a recall, but the reality is the food industry contains many examples of businesses that experienced one – and didn’t survive. To ensure their companies don’t meet the same fate, leaders must prepare well in advance to meet a potential crisis head on.
Recall Industry Spotlight • Q2 2016
stericycleexpertsolutions.comCopyright © 2016 Stericycle. All rights reserved.
7
Stericycle ExpertSOLUTIONS helps partners minimize risk to the public and to their company brand by executing and planning for product recalls efficiently, effectively and compliantly. Each quarter, we analyze cumulative recall data across applicable product categories. This helps our partners navigate the regulatory environment and identify trends.
The Recall Industry Spotlight Explained
How the Recall Industry Spotlight is Compiled
The Recall Industry Spotlight gathers and tracks cumulative data from the primary federal agencies that oversee recalls in the United States. For this quarter’s Recall Industry Spolight, Stericycle used data from the Food and Drug Administration (FDA) and the Food Safety and Inspection Service (FSIS) of the United States Department of Agriculture (USDA.
FDA Data
To track trends in food recalls, the Recall Industry Spotlight uses information publicly available in news releases posted on the FDA website. For additional insight into recalls governed by the FDA, Stericycle collects and analyzes data from the agency’s weekly enforcement reports, which provide additional details including recall class, quantity of units affected, and number of reported incidents.
USDA Data
For additional insight into food recall trends involving meat, poultry, and egg products, the Recall Industry Spotlight collects and analyzes data from recall announcements posted on the USDA’s FSIS website. Statistics and trends are compiled using standard product categories, classifications, and reasons for recalls as recognized by the USDA.
Kevin PollackVice President312.342.1350
Chris HarveySenior Recall Strategist
Ryan GooleyRecall Consultant
