Introduction

Product recalls can cost CPG companies dearly, yet the frequency of recalls doesn’t seem to diminish. Discount retailer Aldi recently announced a product recall due to an allergen labeling issue. Their vegetable bao buns contained sesame and duck meat, which was not mentioned on the label. 

In a similar case, retail giant Costco recalled 79,200 kilograms of butter due to mislabeling. The necessary 'Contains Milk' statement on the label was missing, causing potential health risks, especially for individuals with dairy allergies or lactose intolerance.

Such recalls underscore the role of correct labeling in food safety and product recalls, requiring CPG companies to take packaging artwork proofreading more seriously.

Understanding the Common Reasons for Product Recalls in CPG

Product recalls in the CPG industry happen for several reasons: 

• Labeling errors: Labelling errors pose a severe health threat, especially for people allergic to ingredients like milk, eggs, peanuts, soy, etc. The Centers for Disease Control and Prevention (CDC) estimates that each year, 1 in 6 Americans get sick, 128,000 are hospitalized, and 3,000 die of foodborne diseases. 

• Misleading claims: The terms low-fat, natural, zero-sugar, or multi-grain might appeal to the average consumer, but most of these claims are often misleading. For example, supermarket chain Harris Teeter labeled its fruit cereal bars as “Naturally Flavored with Other Natural Flavors,” even though only artificial flavors were used. 

• Packaging defects: Packaging defects are also a leading cause of product recalls, resulting in massive company losses. Multinational consumer goods corporation P&G was forced to recall 8.2 million bags of laundry detergents due to a defect in child-resistant packaging. 

• Non-compliance: Non-compliance with regulatory requirements also leads to product recalls. Infant formula brand Crecelac faced a major recall after the FDA flagged these products for non-compliance with crucial safety regulations. The company had failed to submit the necessary premarket notification for these formulas, resulting in non-compliance with US food safety and nutritional standards.

Understanding the Implications of Recalls and the Need for Effective Proofreading

Packaging and labeling errors are a significant reason for product recalls, causing severe repercussions for CPG companies, including:  

• Financial losses, reaching millions or even billions of dollars, incurred conducting investigations, contacting buyers, reimbursing payments, disposing of packaging, and other related steps.

• Damage to reputation due to eroded customer trust, diluted perception of safety, and repeat purchase hesitation. 

• Legal consequences, comprising fines and penalties, license revocations, criminal charges, and increased scrutiny by regulatory bodies.  

• Lost customer trust, especially if the labeling mistake leads to allergies or other health scares, forcing consumers to find other options. 

• Poor competitive standing, causing competitors to quickly grab market share as companies spend more time remediating flaws instead of focusing on new features and improvements. 

The several far-reaching consequences of product recalls make proofreading a critical step in CPG packaging. Modern proofing software can:  

• Compare artworks for text and image deviations and inconsistencies. It can generate comprehensive reports to keep teams informed and allow them to take swift corrective action without costly reprints.

• Highlight mistakes/differences by comparing labels with approved copies. It can flag exact errors in labels and ensure compliance with regulatory requirements. 

• List issues for quick consumption, enabling decision-makers to get to their root cause and change their processes/approaches to minimize the same errors from happening again.

The AI Proofreading Advantage ‍

AI-powered proofing tools enable CPG companies to achieve fast and precise artwork proofing and safeguard artworks against non-compliance. From multilingual spell check to pack copy comparison against designed artwork, AI proofing tools help get rid of inconsistencies using a single, unified artwork management platform. Here’s why AI proofing stands out: 

• Brings in context: AI proofing tools rely on large volumes of training data to identify spelling mistakes, check labels for misleading or missing information, and flag inconsistent font usage. As new data is fed, the tools improve at analysis, pinpointing exactly where or why an issue exists. 

• Makes proofing user-friendly: AI plays a pivotal role in orchestrating the labeling review and approval process. Providing a structured framework and user-friendly interface, it enables stakeholders from different departments to review artwork, offer feedback, and approve revisions. 

• Doesn’t just compare but also categorize/classify: AI proofing software uses advanced machine learning models and natural language processing tools to group data into meaningful categories or assign labels based on patterns and context. This capability enables teams to analyze labeling errors better and implement corrective action based on the category. 

• Accelerates compliance through quick turnaround: AI allows packaging designers to access verified information directly within their artwork management tool, receive feedback, and incorporate changes into the artwork layout. This minimizes the risk of manual errors during labeling and ensures alignment with necessary specifications before moving to production.

Avoid Labeling Errors with the Right Proofing Tool

In the CPG industry, product recalls have many negative consequences. If businesses want to minimize the probability and impact of recalls, they must leverage the power of AI proofing tools to prevent labeling errors, avoid legal consequences, and maintain consumer trust.