SARATOGA SPRINGS, N.Y. -- Summer is peak season for ice cream. That's why the recent recall of thousands of gallons could not have come at a worse time for the Stewart's Shops convenience store chain.
Mary Anne Macica remembers the initial incident and ensuing events all too well. Speaking before 34 retailers and suppliers at the 2011 CSP Leadership & Crisis Prevention Forum last week, the risk manager for the 328-store chain said local Environmental Protection Agency (EPA) officials would eventually declare 100,000 gallons of Stewart's ice cream "hazardous waste" and [image-nocss] force a recall that eventually cost the company in the range of $450,000 to $600,000.
"We've been in business since 1921 and never had a recall until [now]," she told the group, which over the three-day conference would discuss issues ranging from cybercrime to reporting requirements for in-house drivers.
Look for more from the 2011 CSP Leadership & Crisis Prevention Forum in the September issue of CSP magazine.
For Macica, the chain of events began with a malfunctioning "dasher," a cylinder with a rotating scraper inside, in the ice-cream production process, she said. The initial breakdown was identified in mid-May, and the Friday before the Memorial Day weekend, staff found what the company described as "foreign material"in the ice cream. The discovery occurred at 10:00 a.m., and by noon, all production at Stewart's ice-cream facility was shut down. Workers cleaned all the systems and identified the dasher as the source of the problem. The chain started a voluntary recall, notified the proper authorities and detailed what happened, when and what action Stewart's took.
The Food & Drug Administration (FDA) sent a letter acknowledging Stewart's initial notification to them and formally instituted the recall.
In addition to the cost of the product, the chain paid $50,000 in dumping fees, including the use of a burn plant because the ice cream was considered hazardous waste; $50,000 in transportation fees; and $50,000 in overtime.
"It was a Level 2 recall," Macica said. "But we treated it like a Level 1."
The chain notified the media, publicly announcing the malfunction at the plant and that a nonharmful substance was in some product. They released product codes and offered a couple of half-gallons of ice cream for the returns. She said to date, they have had no claims.
Some of the lessons learned included how their preparedness efforts, inclusive of a manual and training, gave all those involved "level heads." No one pointed fingers and everyone trusted each other to do their jobs, she said. The biggest lesson, however, came with their customers and the positive reaction Stewart's received during the ordeal.
"Loyalty of brand name and goodwill will carry you through a recall," she said.
Other topics addressed during the forum:
Tim Weston, product manager for Wayne, Austin, Texas, updated attendees on the latest mandates for the Payment Card Industry (PCI) Standards Council, with upgrades to fuel dispensers being mandated if retailers want to keep accepting debit at the pump. David Bridgers, vice president and general counsel for Louisville, Ky.-based Thorntons Inc., walked through mandates for employees who drive company trucks and vehicles. Other speakers, such as Steve Burkhart, vice president and general counsel for BIC Corp., Shelton, Conn., and Stewart Van Duzer, first vice president of Federated Mutual Insurance, Owatonna, Minn., delved into risk issues and coverage for everything from product liability to data theft. Look for more from the 2011 CSP Leadership & Crisis Prevention Forum in the September issue of CSP magazine.
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