Mars recall could cost millions, says Roythornes
Product recall expert solicitors Roythornes estimates the Mars crisis could cost the firm millions. Mars reportedly ordered a full recall of a number of chocolates, including Mars and Snickers bars as well as Milky Ways and Celebrations boxes across more than 50 countries after pieces of plastic were found inside a Snickers bar.
Now Roythornes say the work involved in such a recall, the logistics of the recall itself, the PR impact of the crisis, potential legal costs as well as the potential repercussions in terms of lost sales and stock, could add up to an enormous financial hit.
Peter Bennett from Roythornes, explains, “The financial impact of this recall could be astronomic. Simply getting the products off sale and the logistics and communications involved in that, along with writing them off and losing out on potential sales is one thing.
“However, the potential legal and PR costs along with the possible reputational damage and the effect that could have on investor relations and the value of the company is another thing altogether. We think the cost could potentially run to millions. It just goes to show the importance of being prepared for such eventualities and, as we learned from the Roythornes Product Recall survey last year, around a fifth of food and drink companies are operating without a product recall plan.
“That’s a scary prospect and I expect this incident may act as a wakeup call.”