Top Story
Food System in 'Crisis,' Report Says
Outdated federal policies, limited import oversight and other problems threaten U.S. food supply.
A new report from Washington, D.C.-based Trust for America’s Health (TFAH) identifies major gaps in the U.S. food safety system that leave Americans "unnecessarily vulnerable." The report, "Fixing Food Safety: Protecting America’s Food from Farm-to-Fork," outlines a number of problems, including:
- The U.S. food safety system has not been fundamentally modernized in more than 100 years.
Most federal food safety funds are spent on outdated practices related to meat and poultry carcass inspection.
- Inadequate resources are allocated to fighting modern bacteria threats; in fact, an estimated 85 percent of known foodborne illness outbreaks are related to foods under FDA’s regulation, but the agency receives less than half of the federal funding for food safety.
- In the past three years, FDA has lost 20 percent of its science staff and 600 inspectors within its main safety function.
- Gaps in current inspection processes could mean acts of agroterrorism such as wheat gluten or botulism contamination go undetected until they are widespread.
- Although 15 federal agencies are involved in food safety, efforts are fragmented; no single agency has the ultimate authority or responsibility for food safety.
- Only 1 percent of imported foods are inspected.
TFAH said approximately 76 million Americans are sickened by foodborne illnesses each year; 325,000 of these people require hospitalization and 5,000 die. Fixing the food safety "crisis" will require a collaborative effort among food producers, processors, distributors, retailers and consumers, TFAH said, combined with strong leadership from federal, state and local governments.
Mike Taylor -- a research professor at George Washington University’s School of Public Health, Washington, D.C., and an advisor on the TFAH report -- told eReport editors that retailers are "the front line of food safety," whether they’re selling products under their own private labels or selling national branded products.
"They’re the most immediately accountable to consumers," Taylor said.
On the private label side, in particular, retailers need to adopt best practices in supply chain management, he stressed.
"I think retailers have a huge responsibility to be sure that they know the conditions under which their products are produced, and how they’ve been produced to meet appropriate safety standards. Third-party audit provisions and such are important."
But food safety measures don’t end with manufacturer oversight. Frequent training related to safe food handling practices also is critical at the store level, Taylor said, especially when employee turnover is high.
Our Take: Foodborne illnesses are a serious problem that can harm not only consumers, but also brand names -- whether national brand or private label. But future food safety improvements will necessitate a concentrated effort -- with "eyes wide open" -- across the entire the supply chain.
Industry Insider
Retailers Focus on Customer-centric Strategies
A new report finds that better-performing retailers don’t let economic fears get in the way of improving the in-store customer experience.
Only 21 percent of retail survey respondents ranked the economy as a top-three business challenge for stores in a 2008 survey conducted by Miami-based Retail Systems Research (RSR).
Meanwhile, 56 percent of retailers selected "improving customer service without increasing payroll costs" as a top-three challenge, and 50 percent said creating more consistent in-store execution was a top-three challenge. Survey respondents also indicated they are turning to tools to help employees provide a better in-store experience, RSR said, with 90 percent providing this as a priority (versus 67 percent in a similar study conducted in 2007).
"With online competing against the store experience -- and winning, according to the American Consumer Satisfaction Index -- retailers have to find ways to improve the in-store experience if they want to stay competitive," said Paula Rosenblum, managing partner at RSR. "The challenge is to do that in ways that don’t increase costs."
Survey results are detailed in a new RSR report titled "The Customer-centric Store: Benchmark 2008." To download a complimentary copy of the report, visit
www.retailsystemsresearch.com
Our Take: Even in a down economy, most consumers won’t tolerate poor customer service just to achieve a small savings. A pleasant shopping experience will keep folks coming back again and again. And store brands -- communicated effectively -- can play a huge role in enhancing a retailer’s overall customer service message.
Economy Watch
Will Rebate Checks Stimulate the Economy?
Americans have mixed opinions about their ability to do so.
Economic stimulus checks are hitting bank accounts across the country, with the government hoping the tax rebates will stimulate the economy (and retailers hoping the money will be spent in their stores). But Americans have mixed opinions about their ability to do so, according to a recent nationwide Harris Poll by Rochester, N.Y.-based Harris Interactive.
Although 45 percent of surveyed U.S. adults said they believe the checks will stimulate the economy, another 48 percent said they do not believe that spending their tax rebates will make a difference.
Moreover, Harris Interactive said that almost two in five respondents (38 percent) indicated they would use some of the rebate checks to reduce their non-mortgage debt and pay off bills or credit cards. Another 35 percent said they plan to add some of the rebate to their cash savings.
One in five surveyed said they would spend some of the rebate for other things they have wanted to buy (21 percent) or taking a trip for leisure purposes (20 percent). Further down on the list was spending on home improvements (17 percent) and dining out (16 percent).
As we reported in a previous edition of the eReport, retailers such as Kmart, Safeway and Kroger are offering lucrative incentives to shoppers who opt to spend their rebate checks to purchase company gift cards. Only time will tell if such incentives will be enough to convince the naysayers to buy.
Our Take: Many people have good intentions when it comes to paying off debt or saving money, but often self-control goes out the door when new funds hit the bank account. We’re betting -- and hoping, for retailers’ sake -- that those gift cards and other rebate-related incentives will be enough to convince consumers to part with at least a portion of their windfalls.
Bits and Pieces
·What’s News in Private Label
New private label products, programs take center stage.
Among the most notable recent private label news:
- Rite Aid, Camp Hill, Pa., introduced a professional, exclusive skin care brand called C Booth Derma. The line’s packaging, advertising and promotional materials feature Colleen Booth-Rothschild, co-president of the supplier, Delicious Brands. Three different sub-lines are offered for "mature," "problem" and "all" skin types.
- Roundy’s, Milwaukee, launched a line of Roundy Organics baby food, according to Chicago-based Mintel’s Global New Product Database. The shelf-stable jarred lineup includes Stage 1 products for babies under four months old, as well as Stage 2 foods for babies four months old and up.
- Skokie, Ill.-based Topco Associates now offers its members all-natural desserts from Just Desserts, an award-winning company based in the San Francisco Bay area. Co-branded with Topco’s Full Circle brand, the items range from frosted layer cakes to brownie bites and more. The company also launched a Full Circle Eco-Friendly lineup with products such as fabric softener and dish detergent.
- In its first-ever "Corporate Sustainability Report," released on May 6, Woonsocket, R.I.-based CVS/Caremark said it would be developing action plans to replace "ingredients of concern" in both its private label and branded cosmetic products when safer alternatives are available. The move is part of the company’s new cosmetic safety policy adopted earlier this year.
- Safeway Inc., Pleasanton, Calif., announced the winners of its most recent "Lucerne The Art of Dairy" contest. This year’s theme was "Cows & History." Taking the grand prize is John Taing from John Marshall High School in Los Angeles, who will receive $20,000 for his school’s art department, plus $5,000 each for himself and his art teacher. Four other student winners also received monetary awards for themselves and their art teachers.
