Pulling the little morsels from stores was, of course, the obvious thing to do. Ever since Johnson & Johnson removed Tylenol from shelves following a cyanide scare back in 1982, the prompt withdrawal of mislabeled or contaminated products has been the gold standard response for business leaders. So it’s no wonder Idea made the same “extraordinary effort,” as company spokesperson Ylva Magnusson called it.
What’s less obvious is what Ikea’s managers should do now. Are the “mysteriously cheap” meatballs so iconic that Ikea wouldn’t be Ikea without them? The meatballs, part of the company’s food-sales division that make up 5 percent of the company’s revenue, are one of its most popular products, inspiring everything from poetry from adoring fans to distressed tweets over their removal from store shelves.
At the same time, trotting them back out (forgive me!) after the horsemeat scandal may give some customers pause. For a retailer whose specialty is inexpensive home furnishings, is it worth the risk to also sell packaged foods with even more complex supply chains? We may not know what’s really in particle board, but any “ick” factor associated with flatpack furniture is far smaller than one associated with food. Is it time to stick to furniture?
If handled correctly, there may be little long-term impact for Ikea from the scandal. After all, Ikea is not exactly Whole Foods-most consumers probably didn’t have high expectations of its meatball ingredients in the first place-and a brand with as many cult followers as Ikea has is likely to weather the storm.
Still, there’s one thing the company definitely needs to do in the short term -- stay ahead of any further potential discoveries of equine in its edibles. It can’t risk appearing as anything other than completely forthcoming. When Ikea reintroduces meatballs in the affected countries, company leaders should clearly communicate what they have done to ensure the right ingredients are in there. Switching suppliers could be a start.
And it wouldn’t hurt to offer a refund to customers with meatballs in their freezer-even if they’re horsemeat free. They may not look so appetizing anymore.
What do you think Ikea should do now? Share your thoughts in the comments section.
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