Lactalis: The Product-Harm and Product Recall Crises

Lactalis: The Product-Harm and Product Recall Crises

  • Case
  • Teaching Notes
Abstract

The case explains how in December 2017 in France one of the world’s largest dairy companies, Groupe Lactalis S.A. (henceforth, Lactalis), issued a product recall after baby food contaminated with Salmonella bacteria was discovered. Further recalls were issued after Lactalis products were found to have sickened 36 infants in multiple countries. Lactalis was criticized for its response to the product-harm crisis and its management of the product recall. Consumers did not accept any compensation offered by Lactalis and furthermore demanded the resignation of its Chief Executive Officer (CEO). Some French retailers were found to be at fault when they were found selling the baby food after product recalls were announced. The French government was also criticized for its food inspection policies which should have prevented ...

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