Writing for The Faster Times, the online investigative website, Amy Westervelt said private label food items have a "transparency" problem because consumers aren't told what firm is actually manufacturing the items. As part of an ongoing "Generic Foods Investigation," she has launched a probe to find out who produces many of Trader Joe's popular items.
For instance, she has so far found, partly through reader's responses, that Trader Joe's Green Goddess Dressing is made by Annie's; Trader Joe's organic yogurt by Straus Creamery; and Trader Joe's Spinach and Cheese Frozen Pizza by Amy's Kitchen. (Trader Joe's didn't confirm the findings.) She also identified the cost-savings for consumers for a Trader Joe's item versus each manufacturer's comparable item. For instance, Trader Joe's organic yogurt is 80 cents cheaper than Straus Organic Yogurt.
The problem, according to Ms. Westervelt, is that private label food products at food retailers are tough to track.
"If you discovered, for example, that there was a meat by-product in the food, your only recourse really would be to take it up with Trader Joe's - -the manufacturer remains obscured," wrote Ms. Westervelt.
Ms. Westervelt also said consumers should be aware of Trader Joe's connection to German supermarket giant Aldi. The chain is owned by a family trust set up by Theo Albrecht, one of the two brothers behind Aldi.
"What doesn't sit quite right is the lack of transparency -- the fact that it's next to impossible for consumers to figure out where their food is coming from," wrote Ms. Westervelt.
She promised information on Wal-Mart's and Costco's private label lines in future installments.
Many online responses to the series praised the reporter's efforts at revealing Trader Joe's manufacturing sources. But a few were sympathetic to the retailer.
One respondent, Jeanne, who worked in an industry related to private label products, remarked that she didn't think it was fair to compare a manufacturer's flagship product to their private label efforts. Recipes/formulas are changed to "personalize" the final private label offering for each chain.
Another responder, Daniel B., who said he worked in advertising for many years, said that while the investigation was said to be about supply chain transparency, the biggest benefit is "giving the consumers the heads up about which brands can be purchased for less at Trader Joe's."
Still, he believes retailers who put their name on private label items they didn't produce "need to be more vigilant" than if they were just stocking shelves with national brands.
"By putting their own name on a package, if something goes wrong, it is the retailer whose reputation is tarnished. And I do believe that is a strong incentive for keeping things on the up and up," he wrote.
Discussion Question: Should retailers provide the names of manufacturers that produce their private label products?