Product Recall Costs
Definition
Recalls in food and beverage, including alcoholic beverages, result in destruction of contaminated products, leading to direct financial losses from stock write-off, logistics, and downtime.
Key Findings
- Financial Impact: AUD 100,000+ average per recall (lost stock, logistics, profits); 63% of businesses under-insured vs. typical costs[1]
- Frequency: 79 recalls/year average since 2013 (1.5/week nationally)[1]
- Root Cause: Manual traceability failures in complex supply chains, lack of recall insurance coverage
Why This Matters
The Pitch: Wholesale alcoholic beverage players in Australia waste AUD 100,000+ per recall on logistics and lost sales. Automation of traceability and notification eliminates this risk.
Affected Stakeholders
Operations Manager, Compliance Officer, Wholesale Director
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Evidence Sources:
Related Business Risks
Insurance Coverage Gaps
ACCC Recall Notification Penalties
ACL Product Safety Breach Penalties
Fines for Delivery to Intoxicated Persons
Failed Delivery Reporting Overhead
Fines for Supplying Alcohol to Minors
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