In the food and beverage industry, a recall can happen in an instant—and the consequences can be devastating. Even the most careful companies, with rigorous quality control procedures, can face the unexpected: a labeling error, contamination, or packaging mishap that forces products off shelves.
While the immediate thought is often about the product itself, the reality is that the ripple effect of a recall reaches far deeper. A single incident can trigger:
- Legal action from consumers or regulatory bodies
- Production shutdowns while the issue is investigated and corrected
- Strained relationships with retailers and distributors
- Significant brand damage that can take years to repair
That’s why Product Recall Insurance is not just “good to have”—it’s essential. This type of coverage provides the financial and operational resources you need to act fast, protect your customers, and keep your business standing strong during a crisis.
A Real-World Wake-Up Call: The High Noon × Celsius Mix-Up
In July 2025, the beverage industry was rocked by a major recall. High Noon’s popular Beach Variety Pack—known for its vodka seltzer—was found to contain cans labeled as Celsius Astro Vibe Sparkling Blue Razz, an energy drink with no alcohol.
The problem? Those Celsius-labeled cans were actually filled with vodka seltzer.
According to the FDA, the incident began when a shared packaging supplier sent Celsius-branded cans to High Noon’s production facility. Those cans were filled, packed, and distributed in Beach Variety Packs across multiple states. While no injuries were reported, the potential for unintentional alcohol consumption was enough to trigger a full-scale recall coordinated by the FDA.
This was not just a labeling issue—it was a public safety concern, a brand reputation crisis, and a logistical nightmare all rolled into one.
The Fallout from a Recall
Even without reported harm, the financial and operational consequences were significant:
- Costly product retrieval across state lines
- Production interruptions while investigating the source of the error
- Retailer and distributor communications to ensure affected packs were pulled from shelves
- Potential legal exposure if consumers had been harmed
- Damage control campaigns to reassure customers and restore trust
For a business without recall coverage, these expenses can be crippling—sometimes leading to permanent closure.
What Product Recall Insurance Covers
Product Recall Insurance is specifically designed to help businesses navigate the complex, costly, and highly visible process of removing potentially harmful or mislabeled products from the market. Coverage often includes:
- Transportation and logistics to retrieve products from shelves and warehouses
- Disposal and destruction of unusable goods
- Public relations and crisis management to control the narrative and maintain trust
- Replacement costs for lost inventory
- Customer and distributor notification expenses
- Overtime labor and additional manufacturing to replenish safe inventory
In short, it’s a financial safety net and an operational lifeline when the unexpected strikes.
How Product Recall Insurance Works in Practice
In a case like the High Noon × Celsius recall, Product Recall Insurance could help cover:
- Shipping and logistics to bring back affected products from multiple states
- Disposal costs for unusable inventory
- Crisis communication to address media inquiries and reassure customers
- Lost revenue from halted production and missed sales opportunities
At Coughlin Insurance Services, we specialize in custom recall policies that align with the exact needs of your business—whether you’re a small specialty producer or a nationwide distributor.
Key Takeaways for Food & Beverage Businesses
The High Noon × Celsius recall shows that even established brands are not immune to unexpected, high-stakes errors. The right insurance coverage can make the difference between a costly disaster and a manageable setback.
If you’re in the food industry, now is the time to:
- Review your current recall and liability policies for adequacy.
- Ensure coverage includes crisis management support to protect your brand.
- Work with an insurance partner who understands your industry’s risks—like Coughlin Insurance Services.
A Partnership Where Understanding Meets Action
Since 1947, Coughlin Insurance Services has committed its resources to assist distributors, importers, and exporters, ensuring they are protected against the unpredictable nature of international trade, including exchange rate volatility and currency risks. As specialists who understand the nuances and vulnerabilities of global commerce, we have fine-tuned our insurance solutions to address the evolving dynamics of export operations.
Our affiliations with the Association of Food Industries (AFI), National Frozen & Refrigerated Foods Association (NFRA), and the Peanut And Tree Nut Processors Association (PTNPA), reinforce our commitment to safeguarding your business with unparalleled expertise. We ask you to consider a partnership where understanding meets action.
You may have been recommended to us by one of our many satisfied customers, or you may have searched online for “Ocean Cargo & Stock Throughput Insurance near me.” However you found us, we’re happy to welcome you. To discuss your needs and objectives and how we can help your company, please contact JJ Van Aman, Vice President of Sales email: jj@coughlinis.com or tel: 973-598-5884 or reach out for a free insurance quote today!