Abstract

The caselet “Lactalis’ Product Recall” talks about the recall by Lactalis Group (Lactalis) of the baby milk powder manufactured at one of its units in France due to salmonella contamination. It describes the incident in detail, along with the probable cause of the contamination. It also highlights how the recall had an impact on the brand image of the company. The role of some French retailers and the French Government in the product recall, apart from customers’ opinions on the ethical aspects of the company are also described in detail. The case ends with a brief look at the impact of the crisis on France’s reputation and the future steps to be taken by the company and the French government to avoid recurrence of such a contamination.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Examine the ethical issues involved in product recall
• Analyze the impact of a product recall on the brand image of a company

Keywords

Lactalis ; Product recall; Brand Management; Business Ethics; Dairy Industry; Food Contamination; Ethical obligations; Brand reputation; Managerial Ethics; Brand Image; Quality assurance programs; Recall Procedures; Retail Industry; French Government; Regulations