
Preventing damage before it occurs: Product recalls are the daily business of REWE Group's risk managers. Kerstin Bartsch knows that this is a task that requires round-the-clock commitment and enormous team spirit, but is also extremely exciting.
one: Mrs Bartsch, can you describe the tasks of the Risk Management department?
Kerstin Bartsch: The primary goal of risk management is to effectively and efficiently carry out necessary silent and public product recalls in the interests of preventive consumer protection. Even if product recalls are of course not wanted, they are necessary in order to avert potential harm to all parties involved and especially to consumers. In short: nobody wants us, but everyone needs us. We therefore carry out product recalls of unsaleable goods for the entire REWE Group in Germany as well as its sales divisions and cooperation partners for food, near-food and non-food articles - regardless of whether it is an article under our own brand or a manufacturer's brand.
Kerstin Bartsch, Head of Risk Management
one: How big is your team and which divisions does it work for?
Kerstin Bartsch: We are a very stable team of seven people, most of whom come from REWE Group's quality management department and contribute their expertise across the product groups. The most recent addition is a colleague who joined us from REWE digital and who broadens our perspective with her point of view. We work for all national sales divisions.
one: The Risk Management functional area was founded in 2007, and you have been with us for many years. What were the milestones during this time?
Kerstin Bartsch: Milestones were the development of the product recall processes, the documentation in the risk management manual, the establishment of regional interfaces and the establishment of regular internal training for employees. The launch of new sales formats and lines, such as REWE Dortmund or Supermärkte Nord at the time, are challenging. This will also keep us busy in the future. We are particularly proud of our data-supported product recall system. We developed the software for this together with REWE Systems. It enables product recalls across all levels in real time and is unique in German retail to date. Today, the authorities know that a product recall at REWE, PENNY or Toom works quickly, safely and reliably.
one: What do you think has changed in your day-to-day work?
Kerstin Bartsch: Today, the authorities investigate more frequently and more intensively, and customer awareness has also increased over the years. There are years when the issues are very big. In the coronavirus era, for example, the issue of ethylene oxide (a pesticide, editor's note) kept us on our toes. All of this makes the work very exciting.

one: How is the team dealing with the increased demands?
Kerstin Bartsch: My employees are available 24/7, highly motivated and committed. Our hotline for suppliers and authorities is manned late into the night by our colleagues themselves. Systematic cooperation is essential, especially with our colleagues in the regions, the regional risk managers.
The team is constantly challenged to develop further and adapt to new circumstances and requirements. This applies to all levels of our work, for example systems, legal requirements, internal REWE developments - as already mentioned, from the integration of new sales lines to new warehouse locations.
one: You and your team look after both the Group's own brands and the branded products. What are the differences in your day-to-day work?
Kerstin Bartsch: We don't make a distinction between own brand and brand, but assess each situation anew and individually, because every crisis is unique and case-specific. In the case of own brands, we are in close contact with the responsible Purchasing and Category Management departments as well as with our colleagues from Quality Management. The legal department, the supplier in question, logistics, the authorities right up to the ministries and the regional risk managers, who act as an important interface to the stores and warehouses in the event of product recalls, are also on board.
one: Prevention comes before reaction. Can prevention and recall be considered separately from each other?
Kerstin Bartsch: Prevention starts at a very early stage. Before a food producer can even supply REWE Group, there are very high requirements from quality management. And in order to be prepared for the worst-case scenario, the supplier must provide us with their current contact details, where they can be reached around the clock. We check that this data is up to date at regular intervals with control calls.
We also inform our suppliers how to proceed in the event of a product recall so that we have the necessary data and information in good time. A classic case is when a supplier openly and honestly reports a problem to us, for example with the product packaging. We enter the reported data into our recall system and press the imaginary red button. This means that the product recall is immediately imported into all merchandise management systems and across all levels - from the warehouse to the store checkout - and the goods are automatically blocked, for example in the warehouse. We can also set a checkout block for the item directly via the system. This system puts us one step ahead in the retail sector.
one: Mrs Bartsch, thank you for talking to us.
Kerstin Bartsch, 46, has headed the Risk Management functional area, a team of six employees, since November 2021,
which has been linked to the Ware Quality Management division since 1 January of this year.
Product recalls must always be carried out if a product actually or with sufficient probability does not fulfil the legal requirements, is subject to a sales ban (e.g. due to an order from an authority) or could cause damage to the company's image. The information that an article needs to be recalled can, for example, result from a notification from the supplier, from an official report on
a sampling or a product analysis organised by the manufacturer or REWE quality management. In the case of private labels, expert input from colleagues in quality management is essential and decisive. Their expertise supports the team in the risk assessment. Together, it is then possible to make an appropriate recommendation for the measures to be implemented to the responsible purchasing department.
What does consumers' increased focus on cheaper alternatives mean for the Sustainability trend? According to GfK, veggie and organic products remained on trend in the first quarter of 2022. Meat/cheese substitutes (up 13.3 per cent), vegan confectionery/veggie fruit gums (6.5 per cent) and the plant-based white line (3.3 per cent) all recorded positive sales momentum. However, private labels performed significantly better than manufacturer brands in all three categories. Private labels recorded growth of 20.9 per cent for meat/cheese substitutes; for vegan
Confectionery/veggie fruit gums increased by 14.9 per cent and the white plant-based line by as much as 23.7 per cent. Organic manufacturer brands suffered an 11.4 per cent drop in sales in the first three months of the year, while private labels increased by 9.3 per cent. However, this development cannot be explained by consumers' weaker wallets. According to GfK, it was not the lower-income households that reduced their organic spending the most. On the contrary, the decline in sales of manufacturer brands tended to be particularly pronounced in the higher income groups.