Tag Archives: Tesco

Polish meat filler at centre of burger scandal

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Burgers feeling the heat. Photo iStockResults back from the meat at the centre of the European horsemeat scandal revealed earlier this week that a Polish supplier of filler product for the burgers is the source of the equine DNA.

Tests by the Irish Food Safety Authority (FSAI) showed positive for equine DNA against meat filler – supposedly beef – imported from Poland for use in the production of burgers at the ABP-owned Silvercrest food processing plant in Ireland.

The Irish minister for agriculture, food and the marine Simon Coveney TD said the investigation had established a direct correlation between burgers in which a high level of equine DNA was detected and this raw material product. He was confident that the raw material in question was the source of equine DNA introduced into burgers manufactured at Silvercrest.

Ireland and the UK have conducted an exhaustive investigation into the source of the DNA – vital to reassure consumers and trade about the safety of the food chain.

In Ireland, over 140 samples of primary products and ingredients were tested for equine DNA at the Silvercrest plant, with three burgers and one imported ingredient testing positive for significant levels of equine DNA. The current findings of the official investigation do not show any evidence that Silvercrest deliberately used horsemeat in their production process, said the Minister.

ABP’s Yorkshire-based plant Dalepak was cleared by the British Food Standards Agency (the FSA), after samples comprising all the meat being used in the production of the suspect lines showed there was no horse or pork DNA present in any of them.  Investigation continues, however, into the origin of the DNA in some Dalepak products manufactured in 2012. The FSA has been answering questions at the British Parliament’s environment select committee this week.

ABP Group management has assured the Irish Minister that it will fully comply with conditions the Minister will apply to continued production standards at Silvercrest.

Silvercrest has commenced a deep cleansing of the plant, under new management, and will be submitted to a six-moth period of scrutiny by FSAI inspectors, after which it will be reviewed, advised Coveney.

“As part of this supervision, the Department will carry out weekly sampling of production in order to provide the necessary reassurance to its customers on the integrity of the production chain. A key component of this is the company’s commitment to source all its raw material from Ireland and the UK.”

The Polish authorities have been advised and the matter is now with them, said Coveney.

It is thought  that the situation has been in place for a year, as that’s the length of time the Polish supplier has been providing the filler products.

Changes at ABP

Apologising for the impact the issue had caused, Paul Finnerty, group chief executive for Silvercrest’s owner ABP Food Group said he was relieved the that the source of the problem had been identified.

“As previously stated, the company has never knowingly bought or processed horse meat and all of our purchases are from approved and licensed EU plants.”

In addition to the deep cleansing and new Silvercrest management team, ABP had undergone a Group reorganisation with responsibility for Silvercrest transferring to ABP Ireland. Its sister business in the UK, Dalepak Foods, will come under the immediate control of ABP UK. The Group is independently audting all its third party suppliers.

He noted that the source of the contaminated meat from Poland is not related to ABP’s plant in Poznan. As with all other parts of the Group, this plant does not process any horsemeat, said Finnerty.

Rippes spreading wider

Meanwhile, the ripples are spreading wider. News reports this week showed that ASDA and the 2,800 store Co-op had joined Tesco, Lidl, Aldi, Iceland and BurgerKing in ditching Silvercrest as a supplier. In addition, Spanish burgers have been said to also contain horse DNA after testing by a consumer group there. The group, Organizazión de Consumidores y Usuarios (OCU), has approached the Spanish food safety body to ask it to investigate.

Breach of trust too great

As promised, Tesco Group technical director Tim Smith has been telling his customers what had happened. He said the evidence tells him that Silvercrest, its frozen burger supplier, used meat in their products that did not come from the list of Tesco approved suppliers they were given. “Nor was the meat from the UK or Ireland, despite our instruction that only beef from the UK and Ireland should be used in our frozen beef burgers. Consequently, we have decided not to take products from that supplier in future. We took that decision with regret but the breach of trust is simply too great.”

Adding that Tesco will not take anything for granted in future after the incident, he said: “It has shown that in spite of our stringent tests, checks and controls there remained a small possibility that something could go wrong and it did. We want to stop it ever happening again, so we are taking action to reduce that possibility still further.”

The retailer is introducing a comprehensive system of DNA testing across its meat products, which will set a new standard according to Smith. “It will be a significant investment for Tesco, borne by Tesco,” he said.

“We want to leave customers in no doubt that we will do whatever it takes to ensure the quality of their food and that the food they buy is exactly what the label says it is.”

 

Burger hell

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Burgers feeling the heat. Photo iStockThe discovery of horse and pig DNA in frozen beefburgers manufactured primarily in Ireland this week has sent the UK and Ireland into a spin as experts try to track its source. While checks are in place here in New Zealand that should prevent a similar thing happening, it is a salutary lesson for the meat industry about what could happen if consumer trust is broken.

What happened in Europe, is that frozen burgers, supposedly made from beef by major EU meat processor ABP Food Group, were routinely DNA-tested by Food Safety Authority Ireland (FSAI) and found to contain meat/protein from other sources including horse and traces from pigs too. The affected burgers, produced in the company’s subsidiaries Liffey Meats and Silvercrest Foods in Ireland and Dalepak Hambleton in the UK are sold in Tesco, Aldi, Lidl and Iceland stores in the UK and in Dunnes stores in Ireland.

Though the FSAI stated in its announcement on Tuesday (15 January) that there was no food safety risk from the products, all retailers have all reacted quickly to remove the items from sale. Tesco, which has also removed all other products from the suppliers from its stores and online, has apologised to its consumers and is promising them that it will find out what has happened and when it does so, it will tell them.

Other supermarkets have also withdrawn similar meat products while answering the British Food Standards Agency’s urgent questions to all British retailers about the exact contents of those items. To date, a total of over 10 million burgers are estimated to have been withdrawn from sale.

The issue is accumulating column inches in the UK and comment from Jewish and Muslim religious groups, animal welfare groups and unions demanding more transparency and more regulation for the meat industry.

ABP is taking the matter “extremely seriously” and says it has “never knowingly bought, handled or supplied equine meat products.

“We are shocked by the results of these tests and are currently at a loss to explain why one test showed 29 percent equine DNA,” the company says, adding that it was checking thoroughly with the two concerned suppliers and “is considering its options”. ABP is conducting its own DNA analysis of the products and will be implementing a new testing regime for meat products which will include routine DNA analysis.

The company assures that its group companies only buy meat from licensed and approved EU suppliers. “These results relate only to where beef based products have been sourced by those suppliers from the Continent. Only a small percentage of meat is currently procured from outside the UK and Ireland. Fresh meat products are unaffected.”

The latest comment in The Guardian suggests that the horse DNA might have come from additives extracted from protein sources, rather than fresh horse meat directly.

NZ: legal requirements not to mislead

Here in New Zealand, there are legal requirements not to mislead the customer, says the Ministry of Primary Industries (MPI), which will be keeping a close eye on proceedings in the UK.

New Zealand processors are subject to performance-based verification by MPI and meat products are not permitted for export until they first comply with requirements for sale domestically. In addition, MPI provides export certificates that provide MPI-verified assurances on the species of animal  from which the exported products were derived.

Under its mandatory Species Verification Programme – which checks the effectiveness of the regulatory requirements in place to ensure truth in labelling with respect to species of origin – MPI samplers collect 300 samples of meat from randomly allocated cold stores all around the country. Each sample is tested and the test includes checks for contamination by other possible species, using the enzyme-linked immunosorbent assay (ELISA), which identifies proteins unique to a species. For example, a sheepmeat sample will be tested for the presence of cattle, deer, goat, horse or pig meat. These tests are conducted by an MPI contracted laboratory to do independent testing using an International Accreditation New Zealand (IANZ) method. The contracted laboratory operates under comprehensive quality systems that, as a minimum, comprise compliance with the ISO 17025 ‘Standard for technical competence of testing laboratories’.

In addition, the Australian/New Zealand Food Standards Code maintains standards for meat and meat products, specifying the proportions of fat free meat flesh and fat (sausages, for example, must contain no less that 500g/kg of fat free meat flesh and the proportion of fat in the sausage must be no more than 500g/kg of the fat free meat flesh content). There are also separate checks for contaminants and residues.

Together, these controls minimise the possibility of a meat not being mentioned in packaging being in the New Zealand product, says MPI, adding that there are no known incidents where a meat product in New Zealand was discovered not to be what it said it was.

 

 

 

 

Touch screen at Tesco

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One of New Zealand meat’s biggest customers, Tesco, is trialling new technology – a giant 80 inch touch screen giving shoppers interactive access to more than 11,000 toy products – in one of its key stores in the run up to Christmas.

Shoppers at the UK’s largest retailer’s Cheshunt Extra store, have been experiencing the latest retail experience: browsing the full range of toys available on tesco.com and filtering what’s available by age, gender and price. They can then place an order by printing a ticket for Click and Collect or by using their mobiles, by using a QR code on the screen or by sending a text message to get a weblink. Some products will be able to be rotated 360 degrees and all come with full descriptions.

Just a sample of the future sophisticated modern retail environment New Zealand’s meat exporters are working in, the three-month trial has been running at Cheshunt Extra since late October. The application was designed and developed by Tesco’s in-house R&D team, using the giant touch screen, provided by u-touch in collaboration with Computacenter. The innovation builds on another recent trial of a virtual grocery store at Gatwick Airport, which also offered  customers instant touch-screen access to online and mobile ordering in a convenient location.

Tesco’s UK general merchandise director Neela Mukherjee says, “Our focus is on making shopping as convenient as possible for our customers and we also want to make sure store customers don’t miss out on the growing range of products we have available online. This giant screen makes use of a single section of the store to offer shoppers access to an enormous range of toys, like being able to stroll down the longest aisle in the world.”

 

 

 

Meat industry lacks leadership according to Cooke

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The National Meat Workers Union’s General Secretary Grahame Cooke stated last Monday the large loss published by Alliance Group would be the first of several for the 2012 year. His point is fairly accurate, confirmed by Silver Fern Farms’ loss announced on Tuesday, writes industry commentator Allan Barber.

Of the other companies ANZCO and Blue Sky Meats will file their results with the Companies Office at the end of March. AFFCO is now a wholly owned subsidiary of Talley’s and doesn’t disclose its results, although the Meat Workers Union says (optimistically) these will be horrendous because of the lock out earlier this year. AFFCO’s results may not be as bad as all that because of the lack of a peak kill.

Cooke’s next point was the losses would inevitably lead to more industry rationalisation; this in turn would cause job losses for the meat workers who have already been affected by several plant closures in recent years. Job and earnings security suffered from fewer stock numbers and shorter season with workers being paid piece rates for shorter shifts; also higher average weights mean better productivity which is true for lambs, but not cattle.

His final point was about the lack of industry leadership in spite of the fact there are a number of good individual companies, all competing vigorously with each other. Cooke said the meat industry has not changed in the last fifty years with poor marketing and plant closures quickly followed by the addition of more capacity. He described the industry graphically as behaving like a cow with its head chopped off.

A look at the Union’s website provides more information on this topic: plant capacity has increased over the past decade with new plants, rebuilds and upgrades at nine plants across the country as well as capacity increases at several more. The Union believes the Government must initiate a ‘meat summit’ to address this.

So the questions are whether Cooke is correct or the industry is behaving in a perfectly rational manner.

My first reaction is the Government will never initiate a summit, almost certainly just another talkfest, because it realises the industry has a functioning commercial model. It competes in a global market and government should never interfere with privately owned businesses, provided they comply with the law. The meat industry has its own industry body, the MIA, which deals with all sorts of industry issues, but not those which impinge on competition between its members.

In addition, land use changes dictated by relative sector profitability will continue to occur regardless. The government would not be wise to get involved in picking winners or hobbling one sector’s ability to adjust its processing facilities.

My next reaction is meat processors and exporters are not the whole industry. There is a value chain which starts behind the farm gate and finishes in restaurants or consumers’ homes. The Red Meat Sector Strategy, FarmIQ and other company based initiatives attempt to define what can be done to join links in the value chain so they contribute to higher, more consistent returns. But it’s up to the farmers to produce to these specifications.

Meat exporters have done a great job over recent years to convert yesterday’s freezing industry into a sophisticated red meat member of the food industry, while also expanding into high value medical and other non-food product areas. More can always be done, but the industry has moved light years from the age of subsidies.

However, this process of modernisation has of necessity been achieved at a cost to overall jobs and terms of employment. The older plants were inefficient and built to service a different industry structure from a previous age. The period following deregulation and more particularly the removal of subsidies saw many farmers in serious financial straits, so their only option was to change farming practice or land use or sell. An unavoidable, even desirable, outcome was a big decline in sheep and prime beef numbers, offset to some extent by the growth in the dairy industry and the US manufacturing beef market.

Owen Poole made the point to me the losses are a sheepmeat problem and Alliance has responded by making the appropriate plant decisions, such as closure of Mataura sheepmeat processing, doubling Mataura’s beef capacity, increased venison processing at Smithfield and rendering at Lorneville. Keith Cooper also confirmed his satisfaction with SFF’s footprint in relation to livestock volumes, having already taken some tough capacity decisions.

This emphasises the regular requirement for new plant configurations to meet the demands of the market place and consequently the workforce must adapt as well. My experience tells me the meat industry does a pretty good job of responding to changes in market conditions, while generally trying to keep its workforce employed. But there is no future in keeping inefficient plants running to protect workers’ jobs, because these will disappear sooner rather than later.

Equally there are no prizes for leaving customer orders unsupplied when competitors are still prepared to process livestock. I certainly wouldn’t fancy the chances of the industry leader who sets an example by refusing to pay the money and has to tell Tesco or Marks and Spencer his company can’t supply because the stock costs too much this week.

Leadership is not as simple as it appears.

The item has appeared in NZ Farmers Weekly and at Allan Barber’s blog Barber’s Meaty Issues.

Success depends on innovation

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Success depends on innovation, says the head of one of the world’s leading retailers – and a major customer for New Zealand lamb.

Speaking at the FT Innovate 2012 conference in London in early November, Tesco Plc’s group chief executive Philip Clarke said: “Be it nations or companies, if you don’t innovate; if you cling to the old way of doing things in the forlorn hope that the pace of change will slow; if you dare not take risks for fear of failure – if you do these things, then decline is inevitable.”

Change and innovation are part of every successful businesses’ DNA, he said and related the story of Tesco’s founder Jack Cohen “an innovator to his fingertips.”

It was Cohen who helped bring the concept of a self-service supermarket to Britain after World War II “an innovation that changed the entire retail industry.”

His innovative streak was borne out of an attitude of mind. “He’d travel, he’d constantly ask questions, spark ideas, try things. Lesson one from Jack then: to innovate we must create the right mindset.”

Since then Tesco has been leading innovation in retail “everything from new formats like Express to centralised distribution, which have revolutionised the supply chain here in the UK,” said Clarke.

The digital revolution is heralding a new era of retailing. While the customer always was king, thanks to digital technology, today’s customers are more powerful than ever. “Not just with more information and choice of goods and services to buy, but a choice of ways to shop at whatever time they like,” he said, adding that social media creates fashions in seconds, making or destroying brands within a day.

In the wake of the change has come data. “The vast, almost infinite quantities of data now available means no retailer has any excuse not to abide by the first law of business: know your customer.”

The insights gleaned by Tesco by its Clubcard, launched in the 1990s, turbo-charged Tesco’s growth. Data is now helping Tesco to drive innovation: “Which is why we own Dunnhumby, our marketing services business.”

While data is important, experimentation is vital. “Try, try and try again. And in the face of failure look for what is good about the experiment. Encourage your people to try again, to build on the success, not blame them for the failure.”

People said, when Tesco.com was launched in 2000, it would not work. “Today it is the world’s largest and most profitable online grocery retailer and we are rolling out the service across all our markets. Already more than five years old in Korea and Ireland; we have launched it in Slovakia, Czech, Poland. Thailand follows very soon.”

That roll out has been made possible thanks to an innovative IT platform that has been developed by Tesco’s Hindustan Service Centre, the company’s global services arm based in Bangalore, said Clarke.

“Employing over 3,000 technologists, this is where we develop new web services and systems so they are on a common operating platform, allowing is to set them up easily in markets around the world.”

Clarke described Tesco as a ‘blueprint led organisation’. “Once innovations are proved successful, a blueprint is developed and managers trained to speed adoption around the world.”

In each of their markets, Tesco.com’s offer has to be tailored to meet the local culture and tastes. New innovations to aid speeding delivery to the customer include Mapster, an application which tracks Tesco vans in real time and is being piloted in some stores around London. Tesco has also created a virtual store in Seoul, Korea, where commuters can use their smartphones on the platforms of the city’s underground to scan the barcodes of the products they want – and then their shopping gets delivered to the address of their choice later on the same day.

“Our Korean colleagues lead on digital innovation for the Group – not because we asked them but because we fostered a culture of innovation; we encouraged innovation and recognised colleagues for trying.”

Clarke liked to think that Jack Cohen would be proud of what Tesco did with Facebook, asking customers what ice-cream flavours they wanted – the 21st century equivalent of his 1930s store tours in Hackney. “Asking customers what they want isn’t new, but doing it the digital way is.”

Looking to the future, Clarke said for retailers it’s no longer going to be sufficient to innovate simply to meet an existing customer trend. “We need to innovate to anticipate what customers want. Successful retailers will not be those who meekly follow the customer like some obedient puppy. They will be one step ahead, offering people new ways to make their lives that bit better.”

Those innovations have to fit a powerful trend created by the power of digital technology,. “People want and increasingly expect personal service, a personalised choice, a sense that a brand – be it a retailer or media organisation – has tailored what they offer to fit their own unique needs and wishes.”

The drive to personalisation will be propelled even further by the internet of things. “Everything from the light bulb in your house to the car you drive will be connected to the internet… Mass personalisation, plus the internet, will determine everything, from pricing and promotions to the internet.”

Innovations depend on much more than just clever people who are experts at technology; and they rely on much more than just using customer insight in an intelligent way, Clarke said.

“From the perspective of any CEO, a company that truly excels at innovation is a company whose culture rewards innovation. It is a culture where people understand that, to change, to create something new, means taking risks. A culture where people know that innovations can certainly fail, that mistakes happen, but you learn from them; where aiming high, having a big, bold idea is not frowned upon, but encouraged. A culture in which the leaders think the biggest mistake is not trying, not experimenting, not taking a risk.”

 

Tesco to run hybrid nutritional labelling scheme

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UK retail chain Tesco, a major customer for New Zealand’s meat exporters, has had a change of heart over traffic-light nutritional labelling,  says online food trade magazine Just-Food.

This is a major change in strategy for Tesco which up to now has supported the Guideline Daily Amounts (GDA) approach, the magazine says. Responding to consumer research, Tesco made the announcement last week that it will now be using a hybrid labelling system, including both GDA and traffic light systems.

Philip Clarke, Tesco’s chief executive said Tesco has led the way by giving shoppers clear information about the food they eat and was the first retailer to put nutritional information on the front of its packs in 2005 when it rolled out its GDA labels.

“We always listen to our customers and they have told us by combining our popular GDA labels with traffic light colour coding we can make it even easier for them to make informed and healthy choices about the food they buy,” he said.

The news has been welcomed by British health minister Andrew Lansley, NGOs and public health groups.

The consumer research was conducted by Penn Schoen and Berland and involved 1,002 UK adults aged over 18 in a quantitative online survey.

 

Silver Fern Farms’ UK brand launch expanding

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Silver Fern Farms’ launch of its branded New Zealand lamb range into British retail giant Tesco (Food NZ, December/January 2012) has been successful, according to the company, which is now looking at expanding the product range available in Britain.

This is the first time that branded lamb has been available in the fresh chilled lamb section of a major grocery chain in the UK. Chief executive Keith Cooper said the company was delighted that “the early good results at Tesco have given us the opportunity to extend the range with the introduction of Lamb Medallions to the current range – Roast, Rumps, Rack and Loin Fillets. We are currently stocking about 250 stores in the UK with pleasing upward trending occurring over the introductory period.”

Silver Fern Farms has utilised Primary Growth Partnership funding to assist with UK consumer research and using branded retail as a test market/prototype will allow the company to begin to meet its commitments to achieving the goals within the framework, Cooper says. The project was also supported by Beef + Lamb NZ with $1 for $1 matched levy funding.

The original launch was supported by an innovative marketing campaign focused on creating awareness at the point of purchase and tightly targeted towards Tesco shoppers using Tesco communications mediums.

The company is also fortunate to have a team of people in the UK who can work alongside its brand team here in New Zealand, group marketing manager Sharon Angus says. “We’re able to think local and act global.”

Published in Food NZ magazine (June/July 2012) .

Carbon labelling dropped

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News from the UK suggests that supermarket giant Tesco has dropped its carbon labelling scheme after four and a half years, after discovering it was taking too long and costing too much money to document each of its 70,000 products. Only about 500 of the products are labelled, with a further 1,500 in the pipeline. The company retains its commitment to carbon footprinting, but will be shifting to global supply chain issues instead.