Product Recall Insurance for SME’s for the Food & Beverage industries

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The impact of a recall has been felt by the smallest companies right through to the largest brands in Australia.

In fact, there were a total of 626 recalls between 2008 and 2017. These affected nearly every type of food industry including dairy, meat, vegetables, fruits, seafood, bottled water– even beer.

Recalls cause significant impact on a business as costs can run into the millions. This can even occur from products with a reasonably low turnover.

The reality is that recalls can be expensive. And the two major issues companies face after recalls are a damaged reputation followed by a hit to the bottom line.

What causes recalls?

There are a wide range of reasons behind recalls including microbiological contamination, foreign matter, biotoxins, chemical contaminants, mislabeling, undeclared allergens, and the presence of disease. Commonly, these are out of the control of the manufacturer.

Food Standards Australia New Zealand reports significant growth in recalls as a result of undeclared allergens like peanuts, milk, eggs, fish, shellfish, wheat, tree nuts and soybeans. In recent years, the frequency has tripled from 10 declared recalls in 2008 to 34 in 2017, accounting for 48% of all recalls in the last three years.

These claims often arise from contaminated ingredients being supplied to manufacturers, only to be discovered when a third party has tested the products or someone has fallen ill.

What allergens are causing recalls? From 2007 to 2016 Food Standards Australia New Zealand report dairy was the most common cause, followed by peanuts, wheat/gluten and finally tree nuts.

Real average: 63 recalls per year

Over the past 10 years, there have been 626 recalls of food and beverage products in Australia - making the average about 63 per year. Over the past three years, three quarters of recalls were caused by undeclared allergens, microbial contamination and foreign matter.

Undeclared allergens are risky business

A significant change has been the rise in recalls attributed to allergens, with the annual number rising from 10 in 2008 to 34 in 2017. Alarmingly, nearly half of all recalls were attributed to allergens in the last three years alone.

What allergens are causing recalls?

From 2007 to 2016 dairy was the most common cause, followed by peanuts, wheat/gluten and finally tree nuts.

Allergen recalls are predominately coming from processed foods, confectionary and baked foods.

This is no surprise considering the large number of ingredients in processed products. The more ingredients, the harder it is to ensure they are free from potential allergens.

Contamination is the next threat

Product recall insurance brokers

Microbiological contamination is the second largest cause of recalls. The most common of these contaminations are Listeria monocytogenes, Salmonella and Escherichia coli (E.coli) – combined these account for 81% of all microbiological recalls.

Given the right conditions, millions of bacteria can grow on common, everyday foods. These conditions are:

  • Time – a single bacterium can multiply to over two million in just seven hours
  • Warmth – the ‘danger zone’ temperatures at which bacteria grow best are between 5ºC and 63ºC
  • Food – like any other living things, germs need food to grow. High-risk foods that bacteria love best include dairy products, meat, poultry, fish and shellfish
  • Water – bacteria need moisture to grow. This includes moisture in ‘wet’ foods such as juicy meats, sandwich fillings, soups, sauces and dressings.

Product Recall Insurance for SME’s for the Food & Beverage industries

Product Recall Insurance for SME’s for the Food & Beverage industries 

The impact of a recall has been felt by the smallest companies right through to the largest brands in Australia.

In fact, there were a total of 626 recalls between 2008 and 2017. These affected nearly every type of food industry including dairy, meat, vegetables, fruits, seafood, bottled water– even beer.

Recalls cause significant impact on a business as costs can run into the millions. This can even occur from products with a reasonably low turnover.

The reality is that recalls can be expensive. And the two major issues companies face after recalls are a damaged reputation followed by a hit to the bottom line.

What causes recalls?

There are a wide range of reasons behind recalls including microbiological contamination, foreign matter, biotoxins, chemical contaminants, mislabeling, undeclared allergens, and the presence of disease. Commonly, these are out of the control of the manufacturer.

Food Standards Australia New Zealand reports significant growth in recalls as a result of undeclared allergens like peanuts, milk, eggs, fish, shellfish, wheat, tree nuts and soybeans. In recent years, the frequency has tripled from 10 declared recalls in 2008 to 34 in 2017, accounting for 48% of all recalls in the last three years.

These claims often arise from contaminated ingredients being supplied to manufacturers, only to be discovered when a third party has tested the products or someone has fallen ill.

What allergens are causing recalls? From 2007 to 2016 Food Standards Australia New Zealand report dairy was the most common cause, followed by peanuts, wheat/gluten and finally tree nuts.

Real average: 63 recalls per year

Over the past 10 years, there have been 626 recalls of food and beverage products in Australia - making the average about 63 per year. Over the past three years, three quarters of recalls were caused by undeclared allergens, microbial contamination and foreign matter.

Undeclared allergens are risky business

A significant change has been the rise in recalls attributed to allergens, with the annual number rising from 10 in 2008 to 34 in 2017. Alarmingly, nearly half of all recalls were attributed to allergens in the last three years alone.

What allergens are causing recalls?

From 2007 to 2016 dairy was the most common cause, followed by peanuts, wheat/gluten and finally tree nuts.

Allergen recalls are predominately coming from processed foods, confectionary and baked foods.

This is no surprise considering the large number of ingredients in processed products. The more ingredients, the harder it is to ensure they are free from potential allergens.

Contamination is the next threat

Product recall insurance brokers

Microbiological contamination is the second largest cause of recalls. The most common of these contaminations are Listeria monocytogenes, Salmonella and Escherichia coli (E.coli) – combined these account for 81% of all microbiological recalls.

Given the right conditions, millions of bacteria can grow on common, everyday foods. These conditions are:

  • Time – a single bacterium can multiply to over two million in just seven hours
  • Warmth – the ‘danger zone’ temperatures at which bacteria grow best are between 5ºC and 63ºC
  • Food – like any other living things, germs need food to grow. High-risk foods that bacteria love best include dairy products, meat, poultry, fish and shellfish
  • Water – bacteria need moisture to grow. This includes moisture in ‘wet’ foods such as juicy meats, sandwich fillings, soups, sauces and dressings.
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Beau Runnalls

Beau Runnalls

Senior Insurance Broker

Beau is a senior insurance broker at Midland with seven years of industry experience supporting businesses across Australia. He works across a broad range of sectors, with particular expertise in earthmoving, heavy equipment, trades, and the winery industry.

Known for his attention to detail and measured approach, Beau focuses on delivering insurance solutions that are clear, practical, and free from unnecessary complexity. He remains actively engaged in professional development, ensuring his advice reflects current industry standards and best practice.

Beau places strong value on collaboration and long-term client relationships. Outside of work, he enjoys golf and football, reflecting his team-oriented mindset and active approach both professionally and personally.

Alex Petkovic

Alex Petkovic

Senior Insurance Broker  |  Development & Service

With 27 years of experience in the insurance industry, Alex is a senior broker at Midland, recognised for his depth of knowledge, attention to detail, and straightforward approach. While he works across a broad range of businesses, he has a particular focus on clients in the construction and building sectors.

Committed to keeping insurance clear and practical, Alex places a strong emphasis on honesty and client-first advice. He remains actively engaged with industry developments through ongoing professional development and research, and is also a natural mentor, regularly supporting and guiding emerging brokers within the team.

Joshua-Kerr

Joshua Kerr

National Sales Manager

Joshua is Midland’s National Sales Manager, with more than two decades of experience in the insurance industry. His expertise spans a wide range of insurance solutions, with particular depth in the winery and brewery sectors.

Taking a considered, people-focused approach, Joshua works closely with clients to understand how their businesses operate and the risks they face, allowing him to deliver insurance solutions that are both practical and relevant. He is known for his ability to make complex insurance concepts clear and approachable.

Outside of work, Joshua has a strong connection to community, having spent several years coaching junior basketball and serving as Vice President of a children’s basketball club. Staying closely attuned to industry developments, he is committed to helping clients make informed insurance decisions that support their long-term success.

Justin-Lane

Justin Lane

Director

Justin is a Director at Midland and has been part of the business since 2003. With more than two decades of experience, he works closely with small businesses across Australia, helping them secure insurance solutions that genuinely reflect the way they operate.

Known for his practical, solution-focused approach, Justin places strong emphasis on clarity, reliability, and long-term client relationships. His depth of industry knowledge and consistent, hands-on service have seen him become a trusted adviser to many business owners over time.

Damien Lane

Director

Since 2001, Damien has been central to Midland’s evolution, bringing more than two decades of industry experience and a strong commitment to client-focused service. His expertise spans a wide range of sectors, with recognised depth in the brewery and distillery space.

Working with independent brewers across Australia, Damien helps clients navigate complex operational risks with practical, grounded advice. He is known for his industry knowledge, clear communication, and ability to build enduring client relationships.

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