http://money.cnn.com/video/news/2013/04/11/n-cmr-food-safety.cnnmoney/index.html?iid=SF_BN_River
There has been a lot of recent food fraud throughout the food industry. To avoid paying higher costs of premium food ingredients some companies are replacing them with cheaper ingredients. Sometimes these alternative ingredients can be harmful. According to the watchdog organizations the reported cases of food fraud are up by 60% this year.
This could be especially harmful to consumer confidence and result in a decline of consumption of generic foods and an increase in consumption of locally produced food.
ReplyDeleteThis fraud will definitely impact consumer confidence and loyalty for the future. The food industry is in a sticky situation and must respond quickly otherwise the spread of this information may destroy certain brands.
ReplyDeleteI agree with Steph and Matt, this would have severe impacts on consumer confidence; it will lead to a huge decline in consumer demand; however this could also be seen an opportunity where smaller, more trustworthy businesses can be formed, thereby increasing both investment and consumption.
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