ENFORCING STRICT SAFETY STANDARDS FOR ALL PRODUCTS

Enabling the largest number of customer to have access to quality products is one of the Group’s priorities. This represents the foundation of the Carrefour brand, which combines a wide selection and affordable prices with quality and product safety.

Incorporating safety and quality into the DNA of our products

At Carrefour, quality is a requirement demonstrated throughout the life of its products. As soon as a new product enters development, Carrefour technical teams treat as “fundamental” the customers’ expectations as reported by the customer service department, its price position, regulatory information and the manufacturing process, identifying the origins of raw materials, etc. Carrefour teams incorporate the search for future satisfaction into the product’s DNA. To ensure that the supplier’s tools, skills and motivation are compatible with the Group's quality requirements, its carries out production site audits during the call for tenders. The Carrefour teams prepare specifications that describe the nature and origin of raw materials, the recipe used and the production method. Based on this, the selected product will then be controlled through an annual monitoring plan. The entire process was also designed to ensure optimal health and safety. Notwithstanding this, we know that there is no such thing as zero risk. Therefore Carrefour has established a group of tools and procedures to help its teams manage any suspicion of non-compliance: an intelligence network to issue alerts; analyses to identify questionable products and to contact affected suppliers; and a rapid, multi-channel communications system to order the removal of products from stores if necessary. The Group regularly improve the ergonomics and performance of these tools. Finally, the Group ensures the international sharing of best practices, especially in China where the Carrefour China Foundation for food safety is involved in a major initiative to promote progress among suppliers and local authorities

Household and personal care (HPC) products: linking the precautionary principle to environmental performance

The precautionary principle is one of the key principles of the Group’s policy which ensures the safety and quality of its HPC products. Even before specific regulatory requirements come into force, our “ingredient” policy, drawn from best practices, already prohibits the use of certain substances whose total harmlessness has not been confirmed by the scientific community. With regard to cosmetics formulations, Carrefour takes every precaution by assigning recognized toxicology experts to the task. Relayed by the French Commerce and Retailing Federation (FCD) working group on HPC, the Group, supports the development of new European cosmetics rules to strengthen product safety through optimal regulatory standardisation. Finally, Carrefour worked with Ademe on an environmental analysis procedure which, starting in 2009, will enable the development of new Carrefour AGIR Éco Planète products which are more environmentally friendly.

Children's clothing: increased safety

In the area of child safety, Carrefour has exceeded existing regulatory requirements by establishing specifications which strictly control the use of certain chemical substances which may be toxic, carcinogenic or allergenic. Likewise, Carrefour checks the resistance of small removable elements to eliminate the risk of ingestion. Furthermore, independent laboratories and organisations confirm that required safety levels have been achieved: more than 4,000 chemical analyses and more than 20,000 product inspections were conducted in 2008.

Toys under tight surveillance

A rigorous quality control program was established to ensure the quality and safety of imported toys. In particular, the Group examined mechanical, electrical and fire risks as well as chemical risks (heavy metals, phthalates, etc.). Taking this another step further, Carrefour applied its toy standards to any products that are handled by children (such as stationary and animal toys). In addition, in 2008 Carrefour was involved in preparing a report for the European Commission that assessed the effectiveness of safety measures implemented in the toy industry. Finally, the Group was involved in preparing a charter signed by Eurocommerce member retailers to bring best practices into widespread use.

PROMOTING QUALITY FOR ALL

Enable to reconcile quality and purchasing power

The Carrefour Group develops own-brand products that guarantee its customers the best value for money. These products, including the “first price” products, especially enable the greatest number of people to access a varied range of food products enabling to have a balanced diet.

Quality : a daily concern for everyone

Quality, safety and Sustainable Development are a daily concern for everyone at Carrefour. That’s why each quality engineer is also responsible for Sustainable Development in the product categories under their responsibility. This commitment is put into practice during product selection. Naturally, the Carreofur teams assess them according to safety, quality and performance criteria. But we are also responsible for seeking out and promoting product ranges that constantly aim to be more environmentally-friendly and healthy for our consumers. For example, the team of chemical engineers has developed a range of paint products that received the Ecolabel. The team responsible for electrical products selects high performance energyefficient equipment and makes sure that our suppliers are aware of the new European EuP directive (setting eco-design requirements applicable to products which use energy). From a social point of view, the Carreofur teams also verify that our suppliers’ manufacturing sites offer decent working conditions. Developing a more responsible product offering means building for the future, where everyone plays a role in supporting innovation to benefit the greatest number.

Freedom of choice

Industrial brand, regional brand, own-brand or “first price” products. Based on its wide range, Carrefour’s merchandise mix helps customers adapt their choices to their needs and budgets. It also responds to the growing demand for responsible consumption: under its brands, the Group lists and develops products that are accessible to the largest number of customers and which respect the environment and/or incorporate a socially responsible approach. Especially representative of this approach, the various Carrefour AGIR ranges (Organic, Eco Planete, Nutrition, Fair Trade) were enlarged by numerous products in 2008.

The Quality Lines: an historical commitment

Launched in 1992, the Carrefour Quality Lines aim to anticipate and meet consumer expectations in terms of freshness, taste and authenticity. They are based on close cooperation with suppliers aimed at constantly improving production conditions, the attention paid to the environment and product quality. In 2008, the Group included 418 Carrefour Quality lines developed in 15 countries.

Main characteristics of Carrefour Quality Lines:
On economic and social issues:

•  a strong, long-term partnership with suppliers, farmers and producers;
• promoting expertise and regional products;
• a regional - and even local - approach
• contribution to the economic, social and environmental development of local communities.

On environmental issues :

• an integrated approach to farming (careful use of water, promoting integrated pest control such as the use of ladybirds to eliminate aphids on apples rather than relying on pesticides, etc.);
• farming conditions that respect animal welfare (animal rearing densities, slaughtering conditions, etc.);
• absence of chemical treatments after harvest, no GMO products in animal feed or in plant production;
• prohibiting soil-free plant production, antibiotics and growth hormones, chemical treatment of soil and the spreading of sludge from water treatment plants;
• limit the use of additives and manufacturing aids.

Improving animal welfare

Carrefour not only complies with local and European laws on animal welfare, it also anticipates future developments. That’s why the Quality Lines include specific criteria concerning animal living space, equipment that improves comfort at all stages of rearing, transport and slaughtering conditions. In addition, the Group’s international purchasing office has banned all products made with natural fur as well as all animal testing for its cosmetic products.

Quality : an approach shared with our suppliers

To guarantee the quality of its food products and its own brand and banner brand products, Carrefour systematically conducts audits on its suppliers’ production sites, which are audited health and safety conditions. Suppliers’ production sites are audited by Carrefour, its service providers or certification agencies. Suppliers are audited with respect to health and safety conditions, risk control, the HACCP plan, traceability and compliance with specifications. In addition, Carrefour endeavours to verify progress in product development and compliance with the application of the Group’s non-GMO policy.
In 2004, specific criteria for environmental factors were set up, along with the training of auditors in several European countries. These audits are followed by action plans arranged with suppliers to improve the production process.
In 2004, Carrefour an active part in drawing up the International Food Standard (IFS), a common health and safety audit criteria for French, German and Italian retailers. Carrefour is also a member of the Global Food Safety Initiative (GFSI) of the CIES, initiative aimed at harmonize food safety standards.
Moreover, thanks to analysis made by its customers services, the Group shares with its suppliers the points of satisfaction or of improvement reported by the claims.

A fast and efficient product withdrawal procedure

Within two hours, a product can be recalled in each banner.
In France, like in other countries where the Group operates, an on-call system gives suppliers and stores 24/7 contact with the Quality Department which works in close association with the supply chain. Withdrawal messages are sent to all stores within less than 2 hours. A crisis team is set up immediately for all significant withdrawals/ recalls.

Ensure in store safety and quality

The proper upkeep of stores and the respect for the cold chain and food safety are key elements of the Group’s policy in every country.  Thus the group mobilizes all its employees in every country to ensure respect for health and safety rules. This involves training, establishing procedures, and systematic hygiene and quality audits in stores and warehouses.