Economic determinants of food safety controls in supply of retailer own-branded products in United Kingdom

Abstract

Whilst major multiple food retailers in the UK have gained commercial advantage from increased sales of own-branded food products, this trend has exposed them to greater risks of product failure. In a bid to manage these risks, multiple food retailers have implemented complex and very costly food safety control systems in the procurement of own-branded products. Using a transaction costs framework, the paper suggests that multiple food retailers have encouraged the development of third party agencies as institutions through which the costs associated with food safety controls can be reduced, whilst maintaining an acceptable risk of product failure. © 1998 John Wiley & Sons, Inc.