Executive Briefings

European Retailers Could Face Another Food Scandal, Report Says

So-called "adversarial procurement" practices among large retailers are a threat to the "integrity of the food industry", according to a major report into the horse meat scandal in Europe.

Professor Chris Elliott, in his final report into the scandal, said procurement policies in “some food businesses, particularly some of the larger retailers, are a matter of concern” as they compete to cut prices.

“The culture of adversarial procurement has not changed and in some cases the review has learned that it has got worse,” he said.

“Recent reports in the media show the emergence of a new price war between some of the major retailers, and suppliers are already under pressure to further reduce prices. The food industry needs to realise the extent of their exposure should adulteration or substitution occur, both in terms of the potential for the endangerment of consumers, and brand damage and loss of revenue.”

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Professor Chris Elliott, in his final report into the scandal, said procurement policies in “some food businesses, particularly some of the larger retailers, are a matter of concern” as they compete to cut prices.

“The culture of adversarial procurement has not changed and in some cases the review has learned that it has got worse,” he said.

“Recent reports in the media show the emergence of a new price war between some of the major retailers, and suppliers are already under pressure to further reduce prices. The food industry needs to realise the extent of their exposure should adulteration or substitution occur, both in terms of the potential for the endangerment of consumers, and brand damage and loss of revenue.”

Read Full Article