Product Recall: Learning from Nanna’s

Australian frozen foods brand Nanna’s has made the news recently after infecting 18 Australians to date with Hepatitis A.  National Health departments have got involved and the company has had to put out a nation-wide recall for four of its frozen berry products.  However, this is only a taste of what’s to come for Nanna’s who have been operating in crisis mode since the story broke on mainstream media.

Nanna’s is set for a financially difficult time.  On top of immediate costs associated with the product recall, the brand looks to be facing a costly legal process, with Slater and Gordon law firm already gathering evidence to bring a class action against them.  The story is accelerating at pace, and the brand’s reputation is suffering the consequences.  Consumers have lost faith in the brand and are boycotting its products in favour of locally produced fruit.  It’s going to take a lot of effort for Nanna’s to regain the trust of their former consumers.

Consumers trust the brands they buy from and manufacturers have obligations towards consumers under Australian law, with a clear requirement that any goods they produce must be free from safety defects.  As is evident with the Nanna’s case, when a situation like this occurs, it sparks consumer and can quickly spiral out of control.  The effect on the business can be catastrophic.

Product Recall insurance can protect against any costs incurred in the event that your product has to be recalled and replaced with a safe one.  The Nanna’s example highlights that while the chances of occurring are minimal, the effects on your business are considerable. Protecting your business and personal assets, Product Recall insurance allows the company to continue to pursue their goals, safe in the knowledge that strategies are in place, plans are tested and potential financial losses are appropriately covered. Whatever your business situation, it is important that you have considered every possible risk as part of your insurance program as the unexpected can have an astronomical effect on the your business.

Find out more detailed information on Product Recall Insurance or Business Interruption insurance from your insurance broker.


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