I have long thought the only thing that could derail the store brand locomotive is a major recall of a retailer-marketed product. Turns out that some of the leading supermarket chains in the country have the same belief and are busy working to do something about it.
Gillian Kelleher, vice president of food safety and quality assurance at Wegmans, spoke at the 2009 Private Label Manufacturers Association Annual Conference this week, discussing how the supermarket chain is working with suppliers to ensure consumers receive only safe food.
If a supplier is making a product for the Wegmans label, they must either be inspected by company Quality Assurance Auditors or be certified against one of the Global Food Safety Initiative (GFSI) endorsed standards. The first shipment of any new Wegmans brand product is scrutinized by Ms. Kelleher's team to make sure it meets product specifications and food safety requirements. Tests are conducted in the Wegmans lab or by independent laboratories.
Ms. Kelleher said there are several benefits for the company's suppliers from the effort, including increased consistency, improved communications, standardization, HAACP training and reduced audits. As a result of the focus on food safety in store brands, Wegmans reports that 37 percent of all store brand products they carry are certified to the standards set by the GFSI. The company has the goals of reaching 50 percent by the end of the year and ultimately reaching 100 percent of all suppliers. The retailer also explained the food safety program is being expanded to include the company's culinary innovation center and bakeshop.
Future plans for Wegmans include extending food safety training throughout the supply chain.
Discussion Question: How would a major private label recall impact the growth of store brands? Do you think its worth it for retailers to "go the extra mile" with food safety requirements from a competitive standpoint?