The Food Marketing Institute (FMI) has partnered with Berrian Insurance Group, a Leavitt Group company, to promote RevenueShield, an insurance program designed to protect grocers and supply chain partners from potential new risks associated with managing retail fresh-prepared food initiatives and private brand manufacturing.
According to FMI officials, grocers and their supply chain partners are strategically positioning freshly prepared foods and private brand products, and their investment in these areas are growing profit centers. As some of the highest-performing segments in the food retail industry, the risk to a brand and balance sheet has consequently expanded, particularly with regard to product recalls and the potential for food safety risk.
“The expansion into these nontraditional revenue centers has resulted in significant sales growth, customer loyalty and stronger brand awareness,” says Joel Berrian, co-owner of Littleton, Colo.-based Berrian and a member of Leavitt Group’s board of directors. “With that expansion comes additional risk, especially to a retailer’s brand reputation during an outbreak or recall event. RevenueShield is the first of its kind to address business income loss from this type of risk, as well as the crisis management needed to keep customers coming through the doors and a number of other factors that protect a revenue stream.”
Mark Baum, FMI chief collaboration officer and SVP of industry relations at the Arlington, Va.-based trade association says, “FMI has been in front of industry trends and is constantly seeking new and innovative ways to assist members with their investments and enhanced emphasis on freshly prepared foods and private brand offerings. FMI has chosen to partner with Berrian because of their extensive knowledge and experience working with food retailers and their ability to create insurance products and services specifically designed for our members.”
“The program provides retailers the opportunity to further enhance their food safety programs by identifying and managing risks in order to reduce the likelihood of a crisis occurring,” says Hilary Thesmar, PhD, RD, chief food and product safety officer and SVP of food safety programs at FMI.