Tag Archives: food retail

Angela Fernandez, GS1

COVID-19 Puts More Emphasis on Supply Chain Visibility and Data Quality: A Conversation with Angela Fernandez of GS1 US

By Maria Fontanazza
No Comments
Angela Fernandez, GS1

The food industry is adapting in completely new ways as a result of the coronavirus pandemic. Retailers are scrambling to keep certain items on store shelves and manufacturers are adjusting their production strategies based on realistic and ever-shifting needs. In a recent discussion with Food Safety Tech, Angela Fernandez, VP of community engagement at GS1 US and FST editorial advisory board member, talks about how companies can improve relationships with trading partners in the face of COVID-19.

Food Safety Tech: What issues do you see happening in the supply chain right now?

Angela Fernandez: Our food supply chain is experiencing overwhelming demand. As an organization that collaborates with both the retail grocery and foodservice sectors to solve supply chain challenges, we’re working with industry on how we can make our supply chain more efficient in the short term, and make it more resilient in the long term.

Consumers are frustrated by empty shelves and the demand created by the pandemic is changing the movement of products. Right now, products are not always accounted for in transit, there are production issues depending on category, and food produced for foodservice outlets like restaurants, schools, and hotels can’t always be easily diverted to a supermarket. The U.S. Food and Drug Administration is lifting restrictions on the sale of food so that it is possible for items that may have been produced for foodservice “sale” to be sold in a supermarket.

FST: In what particular areas are you seeing inventory shortages that are impacting retailers and suppliers?

Fernandez: We’re seeing a couple of different dynamics. For suppliers that produce products for both retail and foodservice channels, we see a shift in reducing production on foodservice items and an increasing manufacturing on their retail product lines. We’re also seeing foodservice suppliers that have not serviced the retail channel previously are now looking to establish new relationships with retailers and recession-proof their businesses. This is not happening as fast as consumer demand for perimeter products like dairy and produce, so we see shortages and products expiring before they can be sold to these new retail customers.

Additionally, food product variation and customization is decreasing. If you think about your own experience going to the grocery store today, or arranging for a delivery, you’re seeing fewer flavors of a product available and fewer brand names you’re familiar with. Suppliers are continuing to shift back to mainstream production of their core product lines just to keep store shelves stocked. I think that’s what we’re going to continue to see—the reduction of customized and specialty items.

For retailers, they have a prioritized the focus on ramping up their e-commerce strategy to relieve the pressure on their stores and service more consumers online. This poses a particular challenge when retailers have limited IT resources and a need to set up a new item supplied from a new foodservice manufacturer that is trying to divert their products to the retail channel to support the demand. And in some cases unfortunately, foodservice suppliers maybe unable to redirect some of their products due to the fact they are not marked for individual sale with the traditional U.P.C. and other retailer requirements.

FST: Is there a better way that food companies, retailers and suppliers can work together during this pandemic?

Fernandez: Food companies can improve the way they work together if they focus on supply chain visibility and data quality. Visibility is key as suppliers are ramping up production on those mainstream products and trying to get them to the proper locations when retailers need them. That’s where I would look at GS1 Standards such as the Global Trade Item Number (GTIN) for product identification and the advance ship notice (ASN) transaction, which lets a partner know when something is ready and being shipped. Global data standards enable the visibility to what delivery a retailer can expect and when, and being able to account for that inventory once it’s inside the DC [distribution center] location so that they can update an online platform. This can help ensure that a retailer has accurate information for the consumer and ability minimize the substitutions that can occur.

The second piece is the data quality aspect—making sure we have the right information around those core items that we are trying to keep stocked on the shelves for consumers who are purchasing those items today. The retail grocery and foodservice industries have been working on making product data more complete and accurate for a number of years, but we’ve seen a heightened focus on it now, knowing that consumers are relying on digital information to be correct since they cannot see the product in person right now. Expanding the data set for the consumer is critical.

FST: What is GS1 US doing right now to help customers better navigate today’s environment?

Fernandez: GS1 US is helping trading partners work with the capabilities they have to implement greater supply chain visibility, improve data quality and ramp up e-commerce operations. Depending on what was already implemented by the manufacturer or retailer, we’re looking at how we can leverage existing capabilities to help partners work together more efficiently to meet demand. How we can help connect the physical product and the digital data, knowing how important that is online right now, not only for trading partners but also for consumers?

One example of how GS1 Standards can be extended is if a retailer is looking to shorten their supply chain and purchase from a local farm. Standards provide a blueprint for supply chain partners to work together in a consistent way. We want to help these companies leverage and extend the standards instead of proprietary systems and abandoning useful processes for item setup, data exchange and point of sale checkout. Those are the types of discussions that we’re having—how GS1 US members can extend the standards that lead to operational efficiency and more easily bring in new partners to help fulfill demand.

Retail Food Safety Forum

Untangling the Net of Seafood Fraud

By Maria Fontanazza
No Comments

Achieving complete traceability is a must to combating seafood fraud. How is industry getting there?

The length and complexity of the seafood supply chain has created an ideal environment for fueling the mislabeling of the world’s most highly traded food commodity. Considering 91% of all seafood consumed in the United States imported, the ethical and economic impact of seafood mislabeling is enormous. While increased demand is putting pressure on the seafood industry, federal agencies are laying the groundwork to aggressively attack the rampant mislabeling problem.

“Illegal unregulated and unreported fishing is a huge global phenomenon that distorts markets and skews estimates of fish abundance,” said Kimberly Warner, PhD, senior scientist at Oceana, during a recent webinar on food fraud. The goal is to achieve complete transparency and traceability, keeping the “who, what, when, where, and how” with the fish. “Right now when fish are landed, they are required in the United States to list the species, where it was caught, [and] how it was caught. But that information is not following seafood through the supply chain.”

Simply put, seafood fraud is as any illegal activity that misrepresents the seafood one buys. According to Oceana, this can include not disclosing the real name of the fish or its origin, not providing an accurate weight, adding water or breadcrumbs, not declaring the presence of additives, or selling “fresh” fish that was previously frozen.

There are several motivations behind seafood fraud, says Warner. Some businesses want to increase profits and avoid profits; others want to hide illegally caught seafood or engage in trading endangered or threatened species, or mask seafood hazards; and some companies are just ignorant to the requirements of seafood labeling.

The lack of reliable and trustworthy information poses a challenge to consumers who want to make informed decisions when purchasing seafood. While proactive consumers use guides such as  “Seafood Watch”, a program offered by the by Monterey Bay Aquarium, in many cases they still do not have enough information to make a decision with complete confidence.

Supply Chain Traceability

Last month the Presidential Task Force on Combating Illegal, Unreported, and Unregulated Fishing and Seafood Fraud released its final recommendations for creating a risk-based traceability program that tracks seafood from harvest to entry into U.S. commerce. The ambitious action plan seeks to tackle the following goals:

•    Combat IUU fishing and seafood fraud at the international level
•    Strengthen enforcement and enhance enforcement tools
•    Create and expand partnerships with nonfederal entities to identify and eliminate seafood fraud and the sale of IUU seafood products in U.S. commerce
•    Increase information available on seafood products through additional traceability requirements

Key dates on the plan’s timeline include identifying the minimum types of information and operational standards by June 30, which will be followed by a 30-day comment period; engaging the public on principles used to define “at risk” species by July and releasing final principles and “at risk” species by October 2015; and building international capacity to manage fisheries and eliminate IUU fishing, with an interagency working group developing an action plan by April 2016.

Bait & Switch: Quick Stats Behind Seafood Mislabeling

•    Red snapper is the most commonly mislabeled fish (up to 28 species were found to be substituted, a large amount being tilapia)
•    74% of fish are mislabeled in sushi venues
•    38% of restaurants mislabel seafood
•    30% of shrimp samples misrepresented
•    Chesapeake Blue Crab cakes: out of 90 sampled, 38% mislabeled, with 44% coming from the Indo-Pacific region

Statistics generated from studies conducted by Oceana in which the organization gathered seafood samples nationwide. 

 

 

How can consumers protect themselves?

Warner’s advice: Ask the folks behind the seafood counter where they purchase their seafood from and whether it is farmed or fresh. If you can, buy the whole fish, because it’s harder to disguise when whole. And finally, if the price is too good to be true, it probably is. “Expect to pay more for wildly caught, responsibly fished seafood,” she said. 

Related content: InstantLabs Launches DNA-based Atlantic and Coho Salmon SpeciesID Test Kits to Combat Seafood Mislabeling

Four Large Retailers Asked to Stop Selling ‘Mislabeled’ Herbal Supplements

No Comments

The New York Attorney General’s office has ordered Walmart, Target, Walgreens and GNC to stop selling “mislabeled” herbal supplements, after independent lab tests of these supplements have revealed that they do not contain ingredients as stated on the labels.

NY Attorney General Eric Schneiderman has sent cease-and-desist letters to all four companies demanding that they stop selling their store-brand herbal supplements because DNA barcoding showed that 79 percent of them either didn’t contain the stated ingredient(s), or were contaminated by other filler materials such as rice and wheat to which some people might be allergic. The companies have been asked to respond by February 9, with information about how their store-brand supplements are processed, according to a NY Times report.

“The topic of purity (or lack thereof) in popular herbal dietary supplements has raised serious public health and safety concerns, and also caused this office to take steps to independently assess the validity of industry and advertising,” the letters stated, adding that “Contamination, substitution and falsely labeling herbal products constitute deceptive business practices and, more importantly, present considerable health risks for consumers.”

Tests were done at the request of the New York AG’s office on the following store-brand supplements: Ginkgo Biloba, St. John’s Wort, Ginseng, Echinacea, Valerian Root, Garlic and Saw Palmetto. Three to four samples of each supplement purchased in different parts of the state were tested. Each sample was tested five times, for a total of 390 tests on 78 samples.

Only 4 percent of Walmart’s supplements (“Spring Valley” brand) actually contained the ingredients listed on the label, while 18 percent did at Walgreens (“Finest Nutrition” brand), 22 percent at GNC (“Herbal Plus” brand), and 41 percent at Target stores (“Up & Up” brand). Only the GNC garlic consistently tested as advertised, according to the AG’s office.

A Walmart spokesperson has said that the retailer is immediately reaching out to the suppliers of these products to learn more information and will take appropriate action. Walgreens agreed to remove the products from its stores across the country, even though only New York was requiring it to do so. GNC confirmed that the products in question had been removed from its store shelves.

Creighton R. Magid is a partner at the international law firm Dorsey & Whitney and head of its Washington DC office, supported Attorney General Schneiderman’s actions and described that “he is taking aim at these herbal supplements not by attacking their efficacy or health risk, which would be more difficult to prove, but by alleging false labeling – something that can presumably be proved with a lab test to establish the actual ingredients.”

“Unless the manufacturers or retailers can show that the ingredients of these products are as shown on the labels – and not merely powdered versions of a junior high lunch – these products will probably start disappearing from store shelves rather quickly,” Magid added.