Annual report 2007
 

Product safety and quality

Guaranteeing product safety and quality

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Quality: a requirement which is part of the Carrefour Group’s basics.

Quality is one of our main source of competitive differentiation and is part of the fundamental policies defining the implementation of the Group’s strategy.
It always corresponds to what the customer explicitly or implicitly wants and must be clearly perceived as such. The value for money must be the best.
Controlled products whether banner brands or own brands, offer exemplary quality and safety. A product must demonstrate the required quality level before it can be approved for purchase.

Anticipating and managing risk: the role of the Scientific Committees

The France Scientific Committee who meet several times during the year, plays a key role in anticipating and managing crisis. Its mission is to help the company prevent and manage food and non-food related risks. The evaluation of these risks is made by regular scientific monitoring and their prevention, promoted by a quality policy . The subjects dealt with include nutrition, GMOs, carcinogens, allergens, toxicology, antibiotics, food hygiene, microbiology.....

Inspired by the work done in France, a number of countries have set up Scientific Committes or Scientifc bodies that draws on a network of specialists.

Guaranteeing food products safety and quality

The best possible value for money is offered at every price level (first price products/ own brand and banner brand products). For own brand and banner brand products, the quality process includes signing a set of specifications, approving production sites and product control plan, processing and archiving any con-compliant products and following up of customers claims.
To complete this system, Carrefour has deployed in 2005 a Quality Scorecard available on the group’s intranet site, which enable all the countries to track products at every stage of their marketing and to react more efficiently in case of a crisis. 

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.

Providing our customers with freedom of choice

Carrefour is committed to offering its customers broad freedom of choice by structuring its product mix to include major national brands, regional, own-brand, retail banner and first price products.
The Carrefour Group’s own brand, retail banner and first price products give the customers a selection of non-GMO and organic products as well as the opportunity to choose quality at price that suit every pocketbook.

Quality at the best price: first price products

First price “No1” products launched in Spain in 2002 have now been deployed in most of the countries where the Group operates. Drawing on synergies and purchasing volumes at the Group level, these products are intended to offer consumers quality products at a price that is 5% to 7% below hard-discount prices. In addition to meeting existing legal requirements, No1 products also reflects the quality and safety approach that characterizes all our own brand and banner brand products. As for GMO concerns, Carrefour has decided to apply the same position for No1 products as for own brand and banner brand products by excluding genetically modified organisms from the composition of all products.

Carrefour Quality Lines: a concrete example of our sustainability approach

Carrefour has launched in 1992 its first Carrefour Quality Lines for fresh food products (meat, vegetables, cheese, etc…) initiating thus a new type of partnership between retailers and farmers in France, but also in a lot of countries in the world.
These Lines are intended to meet consumer needs in term of food safety, freshness, taste and authenticity. These lines are the fruit of upstream work with suppliers, who are rewarded for their quality effort, and they contribute to economic, environmental and social development in various countries where the Group operates. In 2005, there were 363 Carrefour Quality Lines worldwide among which 228 in Europe, 95 in Latin America and 40 in Asia.

Safety commitment on Drug Perfume and Hygiene products (DPH)

All suppliers are required to abide by Carrefour’s policy on cleaning, detergent and cosmetic products. No cosmetic product has been tested on animals by Carrefour’s European purchasing office or on its behalf for 10 years.
Products and their formulas are rigorously scrutinized by a team of six internal specialists, with the support of an additional team of recognized external experts. Some of the group’s banners are taking this approach even further: for example, French hypermarkets and supermarkets have launched eco labelled own-brand products.
In addition, Carrefour keeps its customers informed with safety icons, the use of which has been recommended in every country around the world.

Safety commitment on textiles and clothing for babies and children


In 2003, Carrefour has developed specifications to improve the safety of clothing and textile products intended for children and babies. In two years, more than 5,000 textile products involving over 200,000 substances were tested by independent agencies. This safety requirement has been boosted by regular monitoring conducted with the help of specialists, toxicologists and allergists for all textile products.

Quality information on non-food products labels

To promote the quality of its own-brand products and retail brand products among consumers, Carrefour Hypermakets in France also decided to optimize the quality of information on the packaging of its Carrefour brand non-food products. Four criteria, symbolized by four icons, were adopted, referring to usage, safety, health and the environment or social conditions of production. The packaging points out the most striking criterion for each product by explaining in one or two sentences the product’s added-value. This is signed with the commitment logo of Carrefour, which provides Consumer services with evidences of its procedures. Carrefour has already used this method on paints, backpacks, toys and scents. This approach will be extended to include children’s products, paper goods, sporting goods and food containers.

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.

 

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