Here in Australia the most public food scare we have had in recent years was a large-scale recall of frozen berries that were apparently contaminated with Hepatitis A. The recall was prompted after a string of cases of the virus in New South Wales and Victoria were blamed by health officials on the well known Nanna’s brand of mixed berries.
The owner of Nanna’s brand and manufacturer of the berries, Patties Foods, posted a profit decline of 90%. The chairman Mark Smith blamed the decline saying “The frozen berries recall had a significant impact and was the primary reason for the approximate $14.6m reduction in net profit,”
It is reported that the recall cost Patties Foods $13.6m.
So to answer the question posed by the title of this blog – how much does a recall cost? – the answer is A LOT.