Bindeez Product Recall - 9 Lessons For Crisis Management

"Moose Enterprise has announced an immediatelead paint.
and voluntary Australia wide product recall for itsA third party manufacturer in China was found to
Bindeez Beads toy after being informed thatbe at fault but more than 19 million toys had to
some children who had swallowed the beadsbe recalled globally.
required medical attention.The Bindeez product recall only added fuel to the
As a precaution, Moose Enterprise has advisedfire as these irate parents commented on the
that parents and carers of children shouldMedia Motivators blog.
immediately remove the product. The company"Why is it that so many Companies that
has advised that if the product has beenmanufacture off-shore take so little responsibility
swallowed, parents should seek immediate medicalin the quality of their products?" said one parent.
attention, even if the child is not showing any"Why is it someone always has to get ill or even
adverse symptoms.die before action is taken? Why do I hear this
Moose Enterprise, CEO, Manny Stul, says that thestatement from recalls over and over again "the
safety of children is the company's first priority. Inmanufacturer substituted an ingredient without
order to best protect the safety of children whoour knowledge"?
have, or may, come into contact with the toy,In my opinion the final quality testing should
the company has voluntarily recalled the productalways remain with the local distributor/importer
and is fully cooperating with health and consumerand you should batch test your products in
affairs organisations.Australia to check if they meet the local safety
The company's products, which are manufacturedrequirements.
by internationally approved toy manufacturers inYou are totally responsible for your products.
China, are subject to world standard independentPlease, I beg you, for the sake of our children,
testing. Moose Enterprise has not experienced anyplease check your products before releasing them
safety concerns with its products since thefor sale."
company was purchased by its currentAnother parent also noted "After having to deal
management team six years ago.with my daughter's disappointment at losing one
The product was immediately withdrawn fromof her favorite toys and unknowingly putting all
sale yesterday and parents can receive a refundthree of my young children at risk, there is no
by freecalling 1800 303 895 or email Furtherway I would ever risk buying this product again."
information will be made available as soon as"I too have a stack of Bindeez in my home. I no
possible."longer have receipts and a lot of them have been
This was the official statement issued by Mooseused to "create" works of art. Where do I stand
Toys on the 7th November 2007, one day afteron getting my money back?" said another parent.
they were recalled from shelves.Media reports suggest the beads should contain a
Can Bindeez recover from its product recall?non-toxic glue but instead contain the chemical
The award-winning children's toy has been recalledwhich the body metabolises into gamma-hydroxy
because it contains a chemical which turns into abutyrate (GHB), also known as fantasy or
dangerous party drug when metabolised in theGrievous Bodily Harm.
body.All Bindeez products will be removed from sale
Bindeez are made in China and reported toand households with the toy were urged to get
contain hundreds of beads which can inducerid of it.
seizures, drowsiness or a coma if eaten.What can we learn from this case study?
It is a big blow for the company which hasThere are nine actions Bindeez should now do to
experienced great growth since winning the 2007minimize the risk to their reputation:
Australian Toy of the Year award at the1. Commit and engage
Melbourne Toy and Hobby fair.Accept responsibility, do not blame others, engage
The announcement also made an impact onwith stakeholders especially consumers.
sharemarkets around the world.2. Clear plan
Shares in the UK listed toy company, CharacterWork to deadlines, work out differences &
Group fell 22 per cent following an announcementget any 'dirt' or negative actions out in the open.
to customers it would recall the colourful bead toy3. Calm
Bindeez.Company leaders must show confidence, caring,
The group is listed on the AIM market in Londonand certainty in a time of uncertainty.
and distributes Bindeez in the UK and Ireland on4. Currency & accuracy
behalf of Melbourne-based Moose Enterprise.Key messages - focus on human life - show
"Character Group believes that its stock ofempathy to those affected, accurate facts
Bindeez products conforms to UK safety& figures, what is the company doing to
regulations.help, and what is the call to action for concerned
"However, the group has, as a precautionaryparents.
safety measure, instructed an independent test5. Control the media
laboratory and a EU toxicologist to immediatelyRehearse to stay on message, no speculation, no
test and analyse the chemical composition of"off record", no "ambush".
representative samples of the group's Bindeez6. Concise
stocks in order to fully satisfy as to their safety,"Release information, make it to the point and
said a spokesperon.timely.
Character Group's shares fell 43 pence, to 1467. Convene
pence.Set up a crisis team, a crisis centre, hold a press
This shows that a product recall, even by aconference so the action is a "one to many"
supplier can have a negative impact on sharecommunication activity.
prices.8. Connect
It has not been a positive time for toySet up up to date distribution & lists and
manufacturers or retailers. Parents can be rightlyrelease information.
concerned because between the months of May9. Correct
and July of this year select lines of toys sold byEvaluate, review & correct if necessary any
US giant Mattel were found to have high levels ofmisinformation.