Is retail the missing link between consumers and supply chains?

After the introduction of IDH facilitator Barrett Brown, Chris Anstey, retailer policy expert and Independent Consultant kicked off the workshop by saying it is important to recognize why labels exist. ‘They serve to add value, build margin, support profit for all, to differentiate for the brand owner and support corporate responsibility values’.

Certification and stewardship approach
Mr. Anstey stated that private labeling is the most important trend now in retail and adds value in the short term. The “stewardship approach”  will predominate on private labels while the brands will rely on third party certification. ‘Certification approaches are complex and expensive. The theory is great and it can drive change quickly but it is confusing for the consumers as well because of the complexity of the issues and the variation in labels and what they stand for.’

Omni-standards

Mr Anstey argued that consumers have more faith in the private labels of supermarkets than the claims and labels of the brand manufacturers. Possibly this is because supermarkets are more closely related to customers than brands are. Anstey showed there is a call from Sustain, an NGO based in the UK, for the introduction of omni-standards in which all major sustainability and nutrition aspects of food (see figure) are integrated and communicated: “the mother of all labels”. Anstey: ‘ The question is: can consumers still comprehend the messages that such a labels are sending out?’

'The future for sustainable labeling is promising. What Wallmart is doing is very ground breaking. It is interesting to see what Makro/Metro, Carrefour, Tesco and other big retailers will do in the near future.'

Trust and credibility

Neither certification nor labeling is perfect and never will be. A more transparent communication agenda will build trust and credibility only if it is backed up with evidence of genuine change. Transparency and open communication are key issues.

Photo's: Rogier Bos 

Roland Waardenburg, Vice-President of Corporate Responsibility for Ahold started his presentation by stating that :‘The responsibility of Ahold is to create a profit, while simultaneously taking care of people and planet’ . He said that Ahold believes that labeling shouldn’t even be necessary and that governments and NGOs need to remember that what consumers say and what they do is not always the same thing.

Consistent and easy

Furthermore he elaborated on the fact that there is a lot of labeling confusion and that the business of Ahold is to make it consistent and easy for customers. ‘ We want customers to be able to walk into any of our stores and have our company logo stand for trust in all aspects.’

Top of the bill

He elaborated on the Pure & Honest (Puur & Eerlijk) label of the Dutch retailer Albert Heijn. That label is introduced to make it easy for customers  to choose products that are top-of-the-bill in sustainability. The Pure & Honest label is based upon existing labels like Fair Trade, organic, Marine Stewardship Council, UTZ and others.

In a lively discussion that followed the presentations of both speakers - kicked of by Frank Mechielsen of Oxfam Novib - one of the first questions was: ‘Why does Ahold, as a market leader and front runner not communicate more about sustainability initiatives?’ Roland Waardenburg answered that Ahold communicates not so much on sustainable issues because they would rather work and play a role behind the scene and keep a low public profile.

Criteria on the Internet

Chris Anstey added that Ahold has been a co-founder of a numer of European and global sustainability initiatives and that the experts know very well about the sustainability activities of Ahold.  Another important question was on the transparency of the Pure & Honest label regarding to both social and environmental issues. Mr. Waardenburg answered that it depends on the product and the label where it is based upon if it is Pure AND honest or Pure OR Honest. Information on the exact criteria are always to be found on internet (http://www.ah.nl/puureneerlijk).

It is possible that supermarkets can bridge the gap between supply chains and consumers and can become the missing link. The dream of a perfect world is, like Roland Waardenburg stated: ‘ There shouldn’t be a need for labeling. Sustainability should be a norm, like food safety is which is not mentioned on the package either’.

More information:

Download Powerpoint Presentation Chris Anstey 

Download IDH booklet on Sustainable Retail