Carrefour stores across the Middle East will use blockchain technology from IBM to provide shoppers with tracking information about food quality.

Dubai-based shopping mall owner Majid Al Futtaim has joined IBM Food Trust to deliver food traceability across Carrefour stores using blockchain technology.

The collaboration offers Carrefour customers the benefit of end-to-end product visibility-promoting food quality, credibility and safety. Carrefour will be able to document and locate products through manufacturing, processing, distribution and handling.

The comprehensive history of the product, including production process, halal and hygiene certifications, date of birth, nutrition information and temperature data, will be available to customers in stores.

Majid Al Futtaim runs shopping malls across the Middle East, Africa and Asia and is the owner and operator of the Carrefour franchise in these regions.

Carrefour will become the first retailer in the region to offer these levels of insight and transparency to its customers about the provenance of their food via end-to-end visibility on products throughout the supply chain, promoting increased quality, credibility and safety for its shoppers.

The initiative will start with two initial product categories, Carrefour’s own fresh chicken brand and microgreens harvested from in-store hydroponic farms, before expanding into more product lines.

All participants in this initiative across the supply chain should benefit from a smarter and more sustainable food ecosystem. The digitisation of transactions and data provides a more efficient way of working across the supply chain for growers, processors, shippers, retailers, regulators and consumers.

By using their smartphone to scan a QR code on participating products, shoppers will be able to get immediate access to actionable food supply chain data, from farm to store shelf. The history of the product, including production process, halal and hygiene certifications, date of birth, nutrition information and temperature data, will be readily available once uploaded onto the blockchain.

The growing demand for food traceability is evidenced by research conducted by the IBM Institute for Business Value, showing that 73 per cent of those responding to a survey said traceability of products was important to them. Of those who said it was very important, 71 per cent of respondents indicated they were willing to pay a premium for brands that provide it.

“Trust in the food supply is becoming increasingly important worldwide, a trend accelerated by changing consumer demands and the subsequent health and wellbeing concerns arising from the Covid-19 pandemic,” said Hani Weiss, CEO at Majid Al Futtaim Retail. “It is therefore imperative for us to invest in ensuring quality throughout the value chain while simultaneously working to build robust customer trust and loyalty. In meeting the new market expectations, we are now offering enhanced food traceability for our valued Carrefour customers and improved operational efficiency for our business.”

Majid Al Futtaim is engaging with its supplier partners to enable broader participation in this initiative, giving Carrefour customers access to traceability details across diverse products throughout the UAE, before introducing it to other Carrefour markets operated by the company in the Middle East, Africa and Asia.

“Thanks to the availability of advanced cloud-based, blockchain technology and the commitment of Majid Al Futtaim to deliver the highest quality to its customers, we are proud to be using this supply chain solution to provide the very best in quality, safety and trust to our customers in the markets we operate in,” said Nalla Karunanithy, chief digital officer at Majid Al Futtaim Retail.

IBM Food Trust uses decentralised ledgers to record transactions in a verifiable way. Through a collaborative blockchain network, critical information such as product origin, transportation and ingredients can be logged effectively and accessed quickly by permissioned participants across the value chain and ultimately customers.

This announcement is the latest tech-forward initiative in Majid Al Futtaim’s digital transformation of its Carrefour operations, following numerous developments including automated click and collect, mobile scan and go, and an online marketplace.

Founded in 1992, Majid Al Futtaim is a shopping mall, communities, retail and leisure pioneer across the Middle East, Africa and Asia. It started from one man’s vision to transform the face of shopping, entertainment and leisure and has since grown into one of the UAE’s most successful businesses spanning 17 international markets and employing more than 43,000 people.

The company owns and operates 27 shopping malls, 13 hotels and four mixed-use communities, with further developments underway. The shopping malls portfolio includes Mall of the Emirates, Mall of Egypt, City Centre malls, My City Centre neighbourhood centres, and five community malls that are in a joint venture with the government of Sharjah. The company is the exclusive franchisee for Carrefour in over 30 markets across the Middle East, Africa and Asia, operating a portfolio of more than 350 outlets and an online store.

Majid Al Futtaim also operates more than 500 Vox Cinemas screens as well as leisure and entertainment outlets across the region including Ski Dubai, Ski Egypt, Dreamscape, Magic Planet, Little Explorers and iFly Dubai. The company is parent to the consumer finance company Najm, and a fashion, home and specialty retail business representing international brands such as Abercrombie & Fitch, Hollister, AllSaints, Lululemon Athletica, Crate & Barrel, Maisons du Monde, Lego and That, a fashion concept store and app. In addition, Majid Al Futtaim operates Enova, a facility and energy management company, through a joint venture operation with Veolia.