ICA Meat Repackaging Controversy - Background

Background

ICA food stores in Sweden are all owned and operated independently, although operations are co-ordinated and wholesale operations are run centrally. ICA is 60% owned by the Dutch retailer Ahold, with the remaining 40% owned by Hakon Invest, which is majority owned by local store managers who are also franchisers of the ICA brand. In 2006, The Swedish division, ICA Sverige AB (literally: ICA Sweden Ltd), operated 1,397 retail stores, run by some 1,400 store managers. The largest stores are operated under the store brand Maxi ICA Stormarknad; these are hypermarkets with a full range of groceries as well as fashions, homewares, entertainment and electrical goods. Before the food safety irregularities were revealed, the ICA brand was regarded as one of the most trusted retail brands in Sweden, and the most trusted retail brand among the grocery store chains.

There has been a general prohibition of relabeling packed meat for many years in Sweden. The current legislation and a major part of the Swedish National Food Administration Regulations are based on European Union law. According to the National Food Administration, some 1,000 food safety inspectors make annually between 25,000 and 30,000 inspections in the country. As regards to the retail market, the local municipalities are responsible for controlling and acting against food safety irregularities.