News

Product Recall

Written by Delta Insurance | Oct 24, 2024 4:00:00 AM

What became of the claim?

 

Event

A craft brewery mistakenly labeled 7,200 beer bottles with an ABV of 6.5%, but due to overfermentation, the actual ABV ranged between 8.5% and 9%.

Impact

Customers reported the discrepancy, leading to social media backlash, media coverage, and regulatory scrutiny. The brewery incurred approximately $100K in costs related to testing, recalls, refunds, and PR efforts.

Response

Upon discovering the issue, the brewery promptly notified their insurer, Delta, which coordinated the recall process. All associated costs were covered without any excess payment required from the brewery.

 

Outcome

The swift and transparent handling of the recall helped the brewery maintain customer trust and avoid severe legal consequences.