Wal-Mart adopts new safety rules for private-label food products

Wal-Mart Stores, Inc. (NYSE: WMT) will be soon requiring audits from the global food production facilities that make the plethora of house and private-label brands sold in its retail stores. Wal-Mart announced that it would become the first grocery retailer in the U.S. to adopt the 'Global Food Safety Initiative' standards on food safety for its own private brand products. Brands such as Great Value and Sam's Choice are included in that group.

After a disastrous 2007 that saw tainted food recalls from spinach to peanut butter, consumers are still wary of food safety even if a high-profile recall isn't in the works. Many people I've spoken with recently have even started to seek out organic alternatives after losing trust in many of the processed food manufacturers due to so many recent safety recalls.

What Wal-Mart must do here is market its position as the sole adopter of this standard in every grocery section of every store. The world's largest retailer has a bad habit of embarking on important initiatives that have great value to the consumer, but falling flat on marketing those initiatives to the consumer. It could go a long way towards winning even more customer loyalty if Wal-Mart will just get the word out this time. In addition to private-label brands, Wal-Mart said that it would also require suppliers to be certified by programs under the umbrella of the Global Food Safety Initiative.