Product Recall

A consumer products company announces a major product recall. A steady communications strategy reassures investors while minimizing adverse impact on the stock price.

Client Challenge

Effectively communicate a product recall to the financial community in order to reassure investors and support the current valuation.

A well-known consumer products manufacturer learned the rechargeable battery packaged with one of its products had caused property damage in a residential home. The news was first reported on a local television affiliate. The affiliate then demanded an explanation from the company. A forensics expert found the source of the damage was not the product itself but an independent battery furnished with the product. The company elected to conduct a broad recall of the product and needed to assure investors this action would not impact future sales.

Sharon Merrill Approach

Comprehensive communications strategy through a combination of employee and partner communications, consumer messaging, investor materials and media statements.

Sharon Merrill implemented a comprehensive communications strategy, developing internal employee communications, external investor, consumer and retail partner messaging and media statements. External communications affirmed that the company was taking quick, decisive action to implement the product recall. Investor communications explained the cost of the recall and that there would be no material impact to revenues, because the product had been discontinued two years prior. Sharon Merrill also provided media training to senior executives and spokespeople to prepare them to respond to constant media inquiries. The goal of the communications strategy was to present a proactive, strategic approach to consumer safety and give investors increased confidence in the company’s operating outlook.


Reinforced company’s reputation as a product leader and maintained support for the stock’s valuation

Sharon Merrill’s proactive communications plan presented a unified message of product leadership and consistent operating performance. The result was enhanced consumer confidence in the company’s products and solidified investor support for the stock price, which was unaffected by the recall.

We can help your company prepare for a potential crisis or deal with a current threat. Call 617-542-5300 or email us at