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Groceries gone bad for lack of product Traceback
Food store chains under fire for selling out-of-date products
By František Bouc
Staff Writer, The Prague Post
November 02, 2005
Spoiled, stinky meat. Moldy cheese. Expired dairy products. For some supermarkets, the above items have become staples of their product lines, and people familiar with the situation wonder if the competitive nature of the retail food business in this country is behind the problem.
"The practices of many retailers appear to be really audacious. They seem to be ready to sell almost anything. The situation has come to a head," says Inka Laudová, director of the State Agriculture and Food Inspection Office (SZPI).
Laudová said daily random checks of supermarkets show that bad food has not disappeared from food store shelves since the scandal was uncovered earlier this year. Food inspectors continue to find rotten fruit and vegetables, she said, as well as many expired food items.
"This is clear proof that particular cases are not mere failures of particular managers but rather a failure of the entire system," said Ivana Picková, head of the Union for Customers' Protection.
SZPI chief food inspector Jakub Šebesta believes the price war between food retail chains is at the root of the problem. "I suppose that an effort to sell at the lowest possible price can lead to controversial practices," Šebesta said.
However, market analysts predict that grocers encouraging such practices to shore up the bottom line may soon discover the huge price tag that comes with them. "Loyalty to retailers who sell fast-moving consumer goods is very low compared to other products, and so it'll be quite difficult for retailers who now lose customers to get them back later," said EMC Public Relations analyst Radim Kamler.
Inspections turn up the heat
Supermarkets in this country came under scrutiny after recent checks conducted by SZPI showed serious shortcomings in hygienic standards. During random checks, food inspectors encountered sales of spoiled meat, moldy cheese and other bad food. To make matters worse, the checks showed that the staff in some supermarkets were directed to break the law.
"In late September, in a Julius Meinl supermarket in České Budějovice, inspectors found shop assistants who were ordered by their manager to 'refresh' expired meat and other food by washing them in vinegar or scraping mold from it," said SZPI spokeswoman Daniela Kolejková. Julius Meinl was recently taken over by Ahold, which also owns Hypernova.
The police subsequently initiated investigations of that particular shop manager.
In another check of a Hypernova supermarket in Jindřichův Hradec, inspectors found dead rats under food shelves.
Although SZPI regularly encounters shortcomings in various retail chains, the extent of shortcomings in Julius Meinl in České Budějovice and Hypernova in Jindřichův Hradec was unprecedented, Kolejková pointed out. The two cases received significant media attention and raised turmoil among shoppers who began sending the SZPI complaints about other chains including Carrefour and Billa.
Kolejková said the SZPI received more than 200 complaints from shoppers in October. "This is the biggest influx of complaints that we've ever experienced, Kolejková said.
Throughout this year, Kolejková said, the SZPI inspected 4,000 of the stores owned by all retail chains operating in the country. They discovered shortcomings in half the cases. And though the number of violations the agency found remained about level with the same period last year, the severity of violations found this year was astounding.
Blame suppliers and managers
Kateřina Černá, spokeswoman for the Dutch holding company Ahold, which runs Hypernova, said food suppliers and in particular supermarket managers were responsible for the shortcomings. "We will terminate our contracts with the suppliers who are manipulating expiry dates on products," Černá said.
Ahold Central Europe President Jacquot Boelen said the company has hired an independent company to inspect its outlets in this country.
Retail chains are also attempting to improve their tainted image. Not only are they stepping up internal audits, but they are also trying to increase transparency of operations.
For example, two big-size flat screens were installed in a Hypernova supermarket in Prague-Butovice, and shoppers can watch workers live as they process meat in the back of the store.
For its part, Delvita is now inviting customers to enter premises where meat is being processed. "Hundreds of people have already visited the premises," said Delvita spokesman Petr Uchytil.
Customers of Ahold outlets can report complaints over its newly installed toll-free line.
Hefty fines on the horizon
The ongoing breach of standards in the sale of food also has state authorities considering larger sanctions against food retailers. Today, a negative retail inspection permits a fine of not more than 1 million Kč ($40,650).
"If future inspections discover serious shortcomings, we may amend particular laws, raising sanctions for giant retail chains so that they would deliver real punishment to them," said Industry and Trade Minister Milan Urban.
To that end, the Agricultural Ministry is working on an amendment governing the sale of food, said Agriculture Minister Petr Zgarba. The new law would permit fines of up to 50 million Kč for retail chains that significantly violate hygienic standards of food sales.
František Bouc can be reached at [email protected]
Food store chains under fire for selling out-of-date products
By František Bouc
Staff Writer, The Prague Post
November 02, 2005
Spoiled, stinky meat. Moldy cheese. Expired dairy products. For some supermarkets, the above items have become staples of their product lines, and people familiar with the situation wonder if the competitive nature of the retail food business in this country is behind the problem.
"The practices of many retailers appear to be really audacious. They seem to be ready to sell almost anything. The situation has come to a head," says Inka Laudová, director of the State Agriculture and Food Inspection Office (SZPI).
Laudová said daily random checks of supermarkets show that bad food has not disappeared from food store shelves since the scandal was uncovered earlier this year. Food inspectors continue to find rotten fruit and vegetables, she said, as well as many expired food items.
"This is clear proof that particular cases are not mere failures of particular managers but rather a failure of the entire system," said Ivana Picková, head of the Union for Customers' Protection.
SZPI chief food inspector Jakub Šebesta believes the price war between food retail chains is at the root of the problem. "I suppose that an effort to sell at the lowest possible price can lead to controversial practices," Šebesta said.
However, market analysts predict that grocers encouraging such practices to shore up the bottom line may soon discover the huge price tag that comes with them. "Loyalty to retailers who sell fast-moving consumer goods is very low compared to other products, and so it'll be quite difficult for retailers who now lose customers to get them back later," said EMC Public Relations analyst Radim Kamler.
Inspections turn up the heat
Supermarkets in this country came under scrutiny after recent checks conducted by SZPI showed serious shortcomings in hygienic standards. During random checks, food inspectors encountered sales of spoiled meat, moldy cheese and other bad food. To make matters worse, the checks showed that the staff in some supermarkets were directed to break the law.
"In late September, in a Julius Meinl supermarket in České Budějovice, inspectors found shop assistants who were ordered by their manager to 'refresh' expired meat and other food by washing them in vinegar or scraping mold from it," said SZPI spokeswoman Daniela Kolejková. Julius Meinl was recently taken over by Ahold, which also owns Hypernova.
The police subsequently initiated investigations of that particular shop manager.
In another check of a Hypernova supermarket in Jindřichův Hradec, inspectors found dead rats under food shelves.
Although SZPI regularly encounters shortcomings in various retail chains, the extent of shortcomings in Julius Meinl in České Budějovice and Hypernova in Jindřichův Hradec was unprecedented, Kolejková pointed out. The two cases received significant media attention and raised turmoil among shoppers who began sending the SZPI complaints about other chains including Carrefour and Billa.
Kolejková said the SZPI received more than 200 complaints from shoppers in October. "This is the biggest influx of complaints that we've ever experienced, Kolejková said.
Throughout this year, Kolejková said, the SZPI inspected 4,000 of the stores owned by all retail chains operating in the country. They discovered shortcomings in half the cases. And though the number of violations the agency found remained about level with the same period last year, the severity of violations found this year was astounding.
Blame suppliers and managers
Kateřina Černá, spokeswoman for the Dutch holding company Ahold, which runs Hypernova, said food suppliers and in particular supermarket managers were responsible for the shortcomings. "We will terminate our contracts with the suppliers who are manipulating expiry dates on products," Černá said.
Ahold Central Europe President Jacquot Boelen said the company has hired an independent company to inspect its outlets in this country.
Retail chains are also attempting to improve their tainted image. Not only are they stepping up internal audits, but they are also trying to increase transparency of operations.
For example, two big-size flat screens were installed in a Hypernova supermarket in Prague-Butovice, and shoppers can watch workers live as they process meat in the back of the store.
For its part, Delvita is now inviting customers to enter premises where meat is being processed. "Hundreds of people have already visited the premises," said Delvita spokesman Petr Uchytil.
Customers of Ahold outlets can report complaints over its newly installed toll-free line.
Hefty fines on the horizon
The ongoing breach of standards in the sale of food also has state authorities considering larger sanctions against food retailers. Today, a negative retail inspection permits a fine of not more than 1 million Kč ($40,650).
"If future inspections discover serious shortcomings, we may amend particular laws, raising sanctions for giant retail chains so that they would deliver real punishment to them," said Industry and Trade Minister Milan Urban.
To that end, the Agricultural Ministry is working on an amendment governing the sale of food, said Agriculture Minister Petr Zgarba. The new law would permit fines of up to 50 million Kč for retail chains that significantly violate hygienic standards of food sales.
František Bouc can be reached at [email protected]