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[8 comments]

Shoppers Seeking 'Best-Before Date' Bargains

February 9, 2010

By Bernice Hurst, Contributing Editor, RetailWire

It looks as if many consumers are making their money go further by making their food go further -- further from their best-before dates, that is. Stories in The Guardian and The Independent explored the ways in which websites are selling food at prices well below supermarkets on the basis that it has gone beyond its peak of perfection while still remaining perfectly edible.

It is now widely recognized that best-before and sell-by dates are primarily for retailers' information. Only use-by reflects safety. Even official government advice confirms that food beyond its best-before date will be safe to eat when stored correctly, although anything beyond its use-by date should not be eaten.

Business is so good for bargain websites that approvedfood.co.uk says its year on year sales for the last week of December increased by 500 percent. Approvedfood and foodbargains.co.uk have posted apologies because high demand is causing backlogs and extended delivery times.

Both sites offer "clearance, short-dated and out-of-date food and drink" as a way to cut costs and reduce waste. The Guardian points to campaigners' approval of the trend on the basis that "it can help to reduce Britain's huge mountain of food waste."

According to The Independent, government figures show that 370,000 tonnes of food is thrown away each year in the UK after passing its "best-before" date, as well as 220,000 tonnes that is close to, but still within, its "use by" date.

Products range from canned foods such as tuna to packs of soup, toilet paper and pet food with brand names such as Heinz, McVities, Baxters, Nescafe and Cadbury.

While chocolate bars, chips and fizzy drinks proliferate, Approvedfood also has a healthy eating range comprising of crispbread, sushi nori roasted seaweed, canned celeria strips and cold-pressed extra virgin olive oil amongst other less run of the mill items.

Approvedfood's founder, Dan Cluderay, assures customers that "We never sell anything past its 'use-by' date ... but the 'best-before' date simply refers to the product's optimum quality. Products past this date are still perfectly fine to consume and it's very unusual for anyone to be able to tell the difference." He also claims that customers saved an average of 75 percent on recommended retail prices.

Discussion Questions: Do websites selling food past its best-before date have an attraction for bargain-hunting Americans? Do such sites present a threat to retailers?

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Comments:

Doesn't this remind you of the 1980s when senior citizens were eating dog food because they couldn't afford human food? I'm all for waste reduction, but this strikes me less like bargain hunting and more a sad commentary on our times.

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Dr. Stephen Needel, Managing Partner, Advanced Simulations

To me, the various ways that products are dated here in the U.S. is so confusing ("best buy," "purchase by," etc.) that making sense of it all would be compelling in and of itself. In a health food store a few weeks ago, I called out to the manager that an entire wall of products had expired. The cashier's face lit up and later, she told me that she hated to admit it but she was glad...all of it was going home with her.

I definitely see a market; just a matter of getting the word out to the right people.

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Carol Spieckerman, President, newmarketbuilders

The sale of short coded merchandise also occurs here in the U.S. Retailers/diverters have access to "hot sheets" listing short coded merchandise.

There are even a few retailers whose business is built around selling short coded items. The good news is assuming it sells, and is consumed before its "use by" date, then the retailer has low cost goods to sell and the consumer is able to afford items that they might not have be able to do so otherwise.

Interestingly, I was in a meeting the other day where a distributor stated that it is common for wholesalers to sell shorter coded items to high volume retailers because they are the ones that will move it faster.

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Steve Montgomery, President, b2b Solutions, LLC

I've got to agree with Stephen--this all seems rather pitiful to me.

Nobody wants to waste food, but even in donating it to food banks and homeless shelters I would think there are liability issues if something goes bad or someone gets sick from expired product. The legal ramifications of selling "old" product would seem to be huge--what happens the first time a product really IS bad when it's beyond code?

And, whatever happened to "just-in-time delivery" "efficient supply chain," "consumer demand management," etc.? Weren't these tools supposed to eliminate or at least drastically reduce OOS and all this waste as well?

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Al McClain, CEO, Founder, RetailWire.com

Selling "out-of-date" merchandise is, quite simply, BAD BUSINESS. The individual companies that make this a practice set themselves up for the crackdown that they will inevitably face. Hopefully, the manufacturers take the action of insisting that these goods be pulled from the market, prior to some government agency stepping in.

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Roger Saunders, Managing Director, PROSPER BUSINESS DEVELOPMENT / BIGinsight

Most nonrefrigerated and frozen food products and even some refrigerated food products can be safely consumed long beyond their "expiration date." The cereal and crackers may get a little stale, and foods made with oils a little rancid tasting, but that's about it. I even find that unopened packages of yogurt and sour cream are perfectly fine weeks after their use-by date. The USDA says that refrigerated eggs are good for perhaps a month after their labeled date. Finding a package of expired cheddar cheese (or any hard or process cheese for that matter) at half price is a true gift so long as the package integrity has been maintained and mold is not visible. Any white specs on the surface are merely some of the natural components crystallizing out. Also, refrigerating unopened packages of foods (such as salad dressings) that are labeled "refrigerate after opening" will greatly extend their quality.

The FDA requires that all drugs (including over the counter drugs) be labeled with an expiration date. But the potency of that multivitamin does not magically evaporate at that stated date, and your dandruff shampoo (legally a "drug") is probably no less effective.

We throw far too much perfectly good food and other items away by strictly adhering to those dates.

Jerome Schindler, Counsel, Imported Foods

Of course this will go over well with Americans. Short-coded or 'past-prime' food items are the cornerstone of the successful retail chains like "Grocery Outlet" and all of the "99 cent" stores.

'tkluger'

While I agree this is (or at least might be) a sad commentary, I think it is a comment on individual dispositions rather than our times. Whatever. I agree with Al; this is a scheme that has "liability problem" written all over it. However much the operators may tell us of their safeguards, specializing in product that is--by definition--already old when acquired seems to be asking for trouble.

'notcom'

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