Cross-branding in food and beverage: managing product recall risk

Cross-branding, sometimes also known as co-branding, has become an important marketing strategy to help products stand out on the shop shelves. In cross-branding deals, two – or more – parties join together to create a unique product, sharing their market reach. This can increase brand awareness, enable brands to tap into new customer bases and drive product innovation.

Cross-branding deals have existed for more than 20 years, but the concept has really taken off in the past couple of years as brands seek to stand out in a crowded marketplace. These tie-ups can take the form of a joint product with composite co-branding, a new product being created by taking one element or ingredient of an existing good and using it in another, or creating special locally focused commodities, among others.

There have been hugely successful collaborations in the fashion world - sportswear manufacturers teaming up with luxury goods brands, for example - to boost awareness and market penetration. This trend has translated well to the food and beverage sector, cross-branding has become an increasingly popular route for brands to access new customers and enhance visibility and loyalty.

In a market segment where consumers often have strong brand loyalty, tapping into the customer base of another product via cross-branding can boost sales and win over new fans to a client’s already established product. And as trust and reputation are hugely important in the food and beverage sector, clients are keen to ensure they understand the risks as well as the opportunities of collaborating on new products.

Managing recalls

In the food and beverage sector several reasons can prompt a product recall, including physical contamination of a product, labelling errors or the discovery of microbial pathogens like bacteria or viruses, among other things.

In 2025, the number of recalls of food and drink products in the United Kingdom increased by 23% compared with the previous year, according to the Food Standards Agency (FSA). The FSA notes that this doesn’t necessarily indicate that food safety standards are deteriorating, but that other factors including increased testing and more complex supply chains are also coming into play.

When they are entering into cross-branding partnerships, both parties seek to understand the other’s manufacturing processes, supply chains and risk mitigation strategies to ensure that they feel comfortable working together.

If a recall of a product or ingredient does become necessary, product recall coverage can offer financial assistance for recall and legal costs and loss of sales as well as pre and post-event crisis management services.

Product recall coverage can help businesses manage and recover from a recall, even when the affected ingredient is not their own.

Rebuilding and recovering after an event

Product recall coverage can offer peace of mind to clients when they are entering into cross-branding arrangements. If an issue with the other brand prompts a recall, resulting in the need to recall the cross-branded product, the first party coverage can compensate our clients for costs associated with the recall, including legal costs and the loss of sales. It also can cover the costs of forensic accounting services if that is required to determine the level of the financial impact of the recall across the brand.

The coverage can also provide assistance with rehabilitating a brand if a recall of a cross-branded product occurs. It can cover marketing costs associated with offering discounts or offers to retain customers, for example.

And product recall coverage goes beyond indemnification of financial loss. It offers access to pre-and post-event services including 24/7 pre-incident consultancy and crisis response expertise.

Reputation at the heart

Winning and maintaining consumer trust is a major motivation for cross-branding partnerships in the food and beverage sector. In a marketplace where consumers often have fierce loyalties to certain brands, cross-branding can open up avenues to new customer bases and enhance the reputation, as well as the sales, of both parties.

The ability to manage a potential recall well, therefore, becomes hugely important to the success of these initiatives. Product recall coverage offers clients access to help in managing and recovering from a recall – even if the ingredient or element that is recalled is not their own.

As our clients explore the potential opportunities that cross-branding efforts can open up for them, we are playing our part in helping them to assess, manage and mitigate risks and enable them to grow new markets.