Importance of sustainable and ethical supply chains in retail and foodservice

To minimalise incidences like brands being indirectly linked to deforestation from reoccurring, it is vital that higher standards of transparency are met.

On 25 November 2020, a cross-section study revealed that UK supermarkets and food outlets such as Nando’s, McDonald’s and Asda are selling chicken fed on imported soya from the supplier Cargill, which has been linked to large tree clearance in the Brazilian Cerrado.

The indirect responsibility the retailers and food outlets hold for supplying the soya crop to their chicken stock highlights the current challenge of brands meeting consumer demands for more supply chain transparency. This demand has especially come to light during Covid-19 conditions, as trust for brand claims and production plays a more influential role in consumer product and service choices. The increase in demand for more transparent production, especially in terms of more information on-pack about ingredients used and product formulation, shows how important authenticity is for retail and foodservice.

According to GlobalData’s COVID-19 recovery week 11 consumer survey (2nd-6th December 2020), 31% of consumers in the UK find ethical/sustainably sourced production methods more* important than before as a result of the Covid-19 pandemic. Simultaneously, the same survey states that 36% of UK consumers agree they were confused by the on-pack marketing or health claims made by brands. This demand from consumers amid the crisis sets a tone for foodservice and retail brands to adopt more transparent and authenticated supply chain processes in order to ensure consumer trust.

To minimalise incidences like brands being indirectly linked to deforestation from reoccurring, it is vital that higher standards of transparency are met to maintain an ethical and sustainable supply chain process. Consumer demand clearly shows the importance of product traceability and a lack of investment for the theme from suppliers (e.g. the Tesco horse meat scandal in 2013) has proven to lead to brand mistrust in the UK. The inability to effectively invest in supply chain traceability still leaves supermarkets and foodservice providers exposed to consumer-brand mistrust.

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