This article was displayed on the ChosunBiz RM Report site on Feb. 17, 2025, at 5:21 a.m.
Approximately once in a while, large retailers take action to stop sales or recall their private brand (PB) products.
On the 17th, according to the Food and Drug Safety Agency's Food Safety Korea, on the 31st of last month, the agency announced it was stopping sales and recalling Emart's bite-sized rice snacks. This product is reported to have contained metallic foreign substances, which are presumed to be scouring pads. This product is not directly manufactured and sold by Emart; it is a PB product sold under the NOBLAND name but produced by a Chinese manufacturer. Emart requests the production of the product through an original equipment manufacturing (OEM) method.
In January of last year, Lotte Mart's PB product, Only Price disposable plates and bowls, faced sales suspension and recall measures due to noncompliance with polypropylene total extractable limits. The total extractable refers to the total amount of polypropylene released when melting food containers or sanitary products. This product was produced by Tongyang ENG, and the plates manufactured on Nov. 17, 2023, are subject to recall. The bowls were produced on Nov. 10 of the same year.
Homeplus also took recall measures for its PB product, Signature grape seed oil, in 2023. At that time, it did not meet the benzopyrene standard. This raises continued concerns regarding safety from the consumer's perspective.
Although the distribution industry is striving to maintain the quality of PB products, there is a stance that not all incidents can be prevented. In the case of Emart, there are over 3,000 NOBLAND products, while Peacock has around 800 products. Homeplus introduced 280 PB products in 2000 and has recently expanded its product line to over 1,400. A representative from a large retailer stated, "With thousands of product lines and a large number of suppliers, it is not feasible to monitor all products at all times, even though we have an in-house inspection system."
Among these, the distribution industry's concern is how to maintain brand value. As prices rise and competition for ultra-low-cost products intensifies, the three large retailers will inevitably continue to expand PB products. Emart operates PB brands such as "NOBLAND" and "Peacock" and plans to steadily increase sales. Sales of NOBLAND increased from 1.2 trillion won in 2021 to 1.38 trillion won in 2023. During the same period, Peacock's sales rose from 400 billion won to 420 billion won.
Lotte Shopping has also been consistently pursuing a strategy to strengthen PB products, focusing on supermarkets and marts. Lotte Mart currently operates various PB products such as "Cooking" (ready-to-eat meals) and "Today's Good" (processed and daily necessities). Last year, Kim Sang-hyun, Vice Chairman of Lotte's distribution group, noted in a video message to employees that he was planning to export PB products to the United States.
Homeplus plans to revamp over 1,400 food and non-food PB products under the slogan, "Only the essential quality simply, a cost-effective brand made by Homeplus." Until now, Homeplus's PB brand was divided into two: "Homeplus Signature" and "Simplus." Homeplus stated, "We have the goal of becoming the best choice for consumers in an era of high prices by enhancing the quality and price competitiveness of PB products."
A representative from a large retailer said, "While we try to strengthen management every time a problem arises, when attention focuses on a specific institutional sector, it often leads to issues in other sectors. Without increasing dedicated personnel to match the strengthening of PB products, addressing safety concerns about PB products will not be easy."