When most people hear about the cost of a food recall, they think of disposal fees, shipping returns, and maybe a press release or two. But the real costs go much deeper — and often last years beyond the initial crisis.
Direct costs like logistics, insurance claims, and crisis communications usually total between $3M–$5M. But add in retailer penalties, lost contracts, class action lawsuits, regulatory fines, and long-term consumer distrust, and a recall that started at $10 million can balloon past $100 million.
The biggest hidden cost? Brand erosion. Once consumers lose faith in a product, it can take decades — if ever — to win them back.
Food companies that invest in proactive recall planning and transparent crisis communication don’t just lower direct costs. They also protect their most valuable asset: trust.
