Outbreaks and food frauds are followed by increasing media attention. The lack of traceability information, and the slow regulatory responses resulted in a growing consumer dissatisfaction. In this environment, responsible food companies take proactive steps to gain back the trust of consumers.
Auchan is an international retail group headquartered in France, and operating more than 3700 points of sale in 17 countries worldwide. Followed by a 18 months pilot period in its Vietnam branch, the retail chain decided to implement TE-FOOD’s blockchain based traceability solution in five countries: France, italy, Spain, Portugal, and Senegal.
In each country, the system starts tracking selected product categories from farm-to-table, registering all important food quality and logistics related data. Recently the system debuted in France for organic carrot, followed by a roll out to potato and chicken in December 2018 and February 2019. Soon, Italy will join with tomato and chicken, Spain with Iberian pork products and locally grown exotic fruits, before implementing it for the chicken supply chain in Portugal and Senegal.
Consumers of Auchan can use their mobile phones to scan QR codes on the products and view the food history. The authenticity of the data will be verified on the FoodChain, TE-FOOD’s global traceability information ledger.
Using blockchain technology in the supply chain is quite new, recently the U.S. based Walmart, the French Carrefour, and the Dutch Albert Heijn retail chains started experimenting with it. Auchan’s international scale implementation is quite progressive step in this space.
A new report from Label Insight and the Food Marketing Institute (FMI) revealed that shoppers are increasingly demanding transparency and a closer connection to their food. 75% say they’ll switch to a brand that provides more in-depth product information, beyond what’s provided on the physical label. When shoppers were asked the same question in 2016, just 39% agreed they would switch brands. Farm-to-table food traceability on blockchain can be an efficient method to improve the trust of consumers, but it is not the sole advantage of it.
During food related outbreaks, it often takes weeks to find the source of contamination in the supply chain, which can contain hundreds of companies residing in several countries. Using the FoodChain, the complete history of a food product can be instantly seen on blockchain, so recalls can be managed quickly and efficiently. Authorities can respond quicker to mitigate the effects of outbreaks, while the food companies can make targeted product recalls.