Situation overview:

A major dairy company specializing in producing and exporting butter and cheese products learned that one of their retailers reported finding a one-inch metal wire in a pound of butter. The manufacturer initiated a comprehensive investigation to discover where the object originated. Because the company distributes products in various formats around the world, including in 20-pound trays for restaurants, they decided to recall all production under scrutiny totaling 375 tons of butter.

PROI member Role:

A  PROI Worldwide Crisis Group partner developed a global intervention strategy for the client that involved:

• Conducting a thorough inspection of all equipment in question;
• Organizing recall logistics and identifying all recall lots;
• Deploying a comprehensive communications strategy for retail customers;
• Managing media relations to convey that the company was not taking any chances regarding the safety and integrity of its products, even though only one product was reported as unfit; and
• Deploying a government relations strategy to educate governing bodies on the steps the company was taking to reestablish normal standards.

Results:

The investigation revealed that human error during equipment cleaning was responsible for offsetting a perpetual screw that damaged a cylinder’s walls, leaving fragments in food production. The purchase of specialized equipment allowed product containers to be scanned and quickly put back on the market.

Even though direct costs were high, company sales increased 3 percent in the months following the operation, verifying the effectiveness of the intervention strategy. There was no negative impact on the company’s reputation or that of its products, and company directors maintained their credibility with stakeholders.