Correspondence
Email sent to the press office at REWE.
The email said: "I’m contacting you in light of our latest investigation which concerns the use of forced labor in China’s food processing industry, and a link we’ve discovered between companies engaged in such practices and one of your suppliers - Nomad Foods.
REWE sells Iglo brand white fish products. Our research shows that Northseafood Holland and Unibond Seafood International are white fish suppliers to Nomad Foods brands, which include the Iglo, Birds Eye and Findus ranges retailing across Europe.
Northseafood Holland has imported shipments of white fish, including pollock, from the processor, Yantai Sanko Fisheries Co. Ltd., based in China. Yantai Sanko Fisheries Co. Ltd. has received persons from the Xinjiang region of China under a government labor transfer program since 2019 and until at least April 2023.
Northseafood Holland B.V. has also been supplied white fish by Yantai Longwin Foods Co. Ltd., a company linked to Yantai Sanko Fisheries through corporate ownership. Our investigation has found Uyghurs working at Yantai Longwin Foods Co. Ltd. since at least 2020 and until at least July 2023.
Unibond Seafood has imported shipments of white fish, including cod and pollock, from Qingdao Tianyuan Aquatic Foodstuff Co. Ltd. since the Chinese plant is known to have first started using Xinjiang labor in 2018. Our evidence demonstrates the presence of Uyghur workers at Qingdao Tianyuan as recently as May 2023.
The United Nations, human rights organizations and academic experts agree that since 2018, the Chinese government has systematically subjected Xinjiang’s predominantly Muslim ethnic minorities to forced labor across the country via state-sanctioned employment programs which use coercive methods in worker enrollment and obstruct freedom to terminate employment.
Could you confirm whether white fish sourced from Yantai Sanko, Yantai Longwin and Qingdao Tianyuan has been used in any of the Iglo branded products sold by REWE since 2018?
Does REWE have any comment or clarification to make regarding the above information? Please respond by close of business September 8, 2023, and note that all interactions are fully on record."
The Outlaw Ocean Project's publishing partner in Germany, Die Zeit, contacted REWE twice seeking comment from REWE.
REWE spokesperson Thomas Bonrath replied. A summary of the email in English: REWE is still investigation whether, or to what extent, the supply chains of branded and private label products which could be affected by The Outlaw Ocean Project's investigation is ongoing. The company is awaiting final feedback from Iglo as to whether the companies named by The Ocean Outlaw Project are part of the supply chain of the Iglo fish products supplied to REWE since 2018, though Iglo is not one of REWE's private label suppliers. REWE's purchasing for its private labels relies on ratings baesd on sources such as the fish stock assessments of the International Council for the Exploration of the Sea and the health of the fish stock as well as recommendations from environmental organizations. The company's Supplier Code of Conduct regulates the requirements for corporate due diligence in the supply chain, such as fair working conditions and the prohibition of slavery and forced labor. In addition, the private label suppliers receive the REWE Group's wild fish-specific guideline for private label suppliers, in which specific requirements for the fishing sector are defined, such as valid employment contracts, safe operation of the fishing vessel, medical care and the right to return home.
The email in its original language said: "Die Mail der Organisation “Ocean Outlaw Project” vom 31. August 2023 ist noch am gleichen Tag in unseren LkSG-Beschwerdeprozess aufgenommen worden. Die Prüfung und Aufklärung, ob oder inwieweit die Lieferketten von Marken- und Eigenmarkenartikeln betroffen sein könnten, dauert nach wie vor an.
Zum jetzigen Zeitpunkt liegt uns noch keine finale Rückmeldung seitens Iglo vor, ob die seitens “Ocean Outlaw Project” genannten Unternehmen Teil der Lieferkette der an uns gelieferte Iglo-Fischprodukte sind (Betrachtungszeitraum 2018 - heute). Iglo ist kein Eigenmarkenlieferant von uns.
Im Bereich Fisch und Meeresfrüchte definieren wir für unsere Eigenmarken die Ziele und Anforderungen in der Fisch-Leitlinie. Hier legen wir bspw. offen, dass wir beim Einkauf von Fisch und Meeresfrüchten auf unsere sogenannte Positivliste zurückgreifen, welche auf Basis von wissenschaftlichen Quellen wie etwa den Fischbestandsbewertungen des Internationalen Rats für Meeresforschung und der Gesundheit des Fischbestandes sowie Empfehlungen von Umweltorganisationen ein Rating erstellt. Nach diesem Ergebnis orientiert sich der Einkauf bei der Beschaffung und kann so Faktoren wie Überfischung berücksichtigen. Ein Ausschluss von illegaler Fischerei ist hier dokumentiert.
Der „Supplier Code of Conduct” regelt die Anforderungen zur unternehmerischen Sorgfaltspflicht in der Lieferkette wie faire Arbeitsbedingungen und dem Verbot von Sklaverei und Zwangsarbeit. Zudem erhalten die Eigenmarken-Lieferanten die „Wildfisch-spezifische Richtlinie der REWE Group für Eigenmarken-Lieferanten“, in welcher unsere spezifischen Anforderungen für den Fischereisektor definiert werden wie gültige Arbeitsverträge, sicherer Betrieb des Fangschiffs, medizinische Betreuung und das Recht auf Heimschiffung."
The Outlaw Ocean Project’s publishing partner in Germany, Die Zeit, asked REWE for an update on its internal review into the findings of The Outlaw Ocean Project’s investigation.
The email in its original language said: "In der „Zeit“ und auf „Zeitonline“ lief kürzlich eine Serie über Zustände in der chinesischen Fischfangflotte und in der dortigen Fischverarbeitung (www.zeit.de/schattenflotte), zu der Sie mit meinem Kollegen Marcus Rohwetter bereits Kontakt hatten. Wir möchten in der kommenden Woche noch einmal auf dieses Thema schauen, und ich würde gerne der Ankündigung in Ihrer E-Mail vom 10.10. an uns nachgehen, derzufolge bei Rewe noch eine „Prüfung und Aufklärung“ laufe.
Ist diese Prüfung denn inzwischen abgeschlossen und mussten Konsequenzen gezogen werden? Wenn Sie bis zu unserem Redaktionsschluss am Montag um 12:00 noch entsprechende Ergänzungen zu Ihrer damaligen Erklärung haben, nehmen wir sie gerne mit zur Kenntnis. Ganz herzlichen Dank."
Kristina Schütz, Head of Corporate Communications atREWE Group, replied. A summary of the email in English: The company’s checks had been completed and found that Iglo is not a private label supplier of REWE and the three companies named by The Outlaw Ocean Project are also not part of REWE’s private label supply chain.
The email in its original language said: "wir haben nun alle Prüfungen abgeschlossen: Iglo ist kein Eigenmarkenlieferant von uns und die drei vom Ocean Outlaw Project genannten Unternehmen sind auch darüber hinaus kein Teil der Lieferkette unserer Eigenmarken."
Die Zeit replied to ask: 1) if Iglo continues to supply REWE as a brand supplier, and 2) if it cannot be ruled out that deliveries were made, either previously or currently, to REWE from the relevant processing companies, outside of the private label supplies.
The email in its original language said: "Das lässt nach rascher Lesart den Schluss zu, dass a) Iglo (natürlich) als Markenlieferant Rewe weiterhin beliefert. Wie sehen Sie in diesem Zusammenhang dann die Verantwortung Ihres Hauses in der Lieferkette? und dass b) auf der Basis Ihres Statements nicht auszuschließen ist, dass aus den anderen Ihnen genannten Unternehmen in der Vergangenheit Lieferungen an Rewe geleistet wurden und/oder oder dass auch heute jenseits der Eigenmarken solche Lieferungen an Rewe stattfinden. Ist das falsch? Danke für die Klärung, Mit freundlichen Grüßen."
Kristina Schütz, Head of Corporate Communications atREWE Group, replied. A summary of the email in English: REWE is in constant communication with its brand and own-brand suppliers regarding their shared responsibility for human rights and environmental risks in the supply chain. Regarding the example of Iglo, it obliges its suppliers to ensure compliance with the agreed requirements via regular audit. In the area of both branded and private label products, REWE can rule out the possibility that these companies are part of its supply chains, but it cannot be completely ruled out that REWE occasionally received Iglo products in the past, in which raw materials were processed at Qingdao Tianyuan.
The email in its original language said: "Wir stehen selbstverständlich sowohl mit unseren Eigenmarken- wie auch Markenlieferanten in kontinuierlichem Austausch hinsichtlich unserer gemeinsamen Verantwortung für menschenrechtliche und umweltbezogene Risiken in den Lieferketten. Die Anforderungen sind klar benannt. Im konkreten Beispiel verpflichtet iglo wiederum seine Lieferanten in der Lieferkette sicherzustellen, dass mittels regelmäßiger Audits die Einhaltung der vereinbarten Vorgaben überprüft werden. Wir können sowohl im Bereich der Marken- als auch unserer Eigenmarkenprodukte ausschließen, dass die genannten Unternehmen Teil unserer Lieferketten sind. Es ist nicht komplett auszuschließen, dass REWE in der Vergangenheit temporär iglo-Produkte erhalten hat, bei denen Rohware über mittelbare Lieferanten bei Qingdao Tianyuan verarbeitet wurde. Beste Grüße"
The Outlaw Ocean Project emailed: "We previously contacted REWE on August 31, 2023, regarding our investigation into the use of forced labor in China’s seafood processing industry. Our ongoing investigation has uncovered additional evidence which we wanted to bring to your attention. We have investigators on the ground in China who have been engaging with labor brokers directly involved with the transfer of North Korean workers to factories in China. Through this and other investigative means, including collecting online footage from the plants and interviews with workers recently returned to North Korea from China, we’ve found large numbers of North Korean workers at a range of seafood processing plants in Liaoning province, on China’s border with North Korea.
We have information that as recently as December 2023, there were 50-70 workers at Dalian Haiqing Food Co. Ltd. in Liaoning.
The use of overseas North Korean workers was prohibited by the United Nations Security Council in 2017, with Resolution 2397 setting a deadline of December 2019 for the repatriation of all such workers to North Korea. Under the Countering America's Adversaries Through Sanctions Act (CAATSA), passed in 2017, the United States prohibits the import of any goods produced by North Korean nationals unless clear and convincing evidence is provided that indicates the materials were not made with forced labor. According to trade records seen by The Outlaw Ocean Project, REWE was the consignee for multiple shipments of seafood from Dalian Haiqing in 2020 and 2021.
While we understand that you may not be aware of the above issues, we want to ask if REWE has any comment to make in response to this email?"
Thomas Bonrath, media spokesperson for REWE Group, replied: "Thank you for your message. Due to the limited information and missing documents, it is indeed not possible for us to fully trace the past facts. We would need specific and complete details of the companies involved in the supply chain as well as the deliveries themselves, e.g. batch numbers, production, delivery and invoice data.
However, we would like to make the following statement: REWE Group does not tolerate human rights violations or forced labor in the supply chain. Corresponding regulations that are binding for our suppliers define minimum standards, demands, activities and restrictions that are verified through certifications and regular audits and help to minimize such risks. In accordance with the REWE Supplier Code of Conduct, suppliers are also obliged not to violate human rights and environmental obligations in their own business area and to pass on the corresponding obligations in the upstream supply chain, i.e. to the indirect suppliers of REWE Group, in a binding manner. REWE Group updated the REWE Supplier CoC in October 2022. The REWE Supplier CoC thus already takes into account the requirements of the German Supply Chain Due Diligence Act (LkSG), which has been in force since January 1, 2023.
REWE Group's guideline for sustainable business also applies to all business relationships. Among others, it includes the prohibition of forced labor and exploitative child labor as well as fair treatment of employees. We consistently follow up on indications of human rights violations or forced labor as part of our due diligence. REWE Group reserves the right to impose sanctions in the event of deliberate gross disregard of the values described in the guideline."
The Outlaw Ocean Project replied: "Thank you for your email and for engaging with us on this. There are a number of very helpful databases, such as Import Genius and Panjiva, which we tend to use to help in tracing supply chain connections and shipments. The trade records showing shipments from Dalian Haiqing Food consigned to Rewe-Zentral AG are all marked as leaving the port of Dalian, and arriving at the port of Hamburg. The arrival dates are: 14-05-2021; 21-05-2021; 04-06-2021; 25-06-2021; and 20-08-2021. The product details for the first of those dates list frozen fillets of Alaska pollock, while the other four are identified as frozen fillets of cod. I hope this additional information is helpful to you in identifying these materials in REWE’s supply chain. Does REWE have any corresponding records matching these orders to Haiqing, or products received from Haiqing?"
Thomas Bonrath, media spokesperson for REWE Group, replied: "Thank you for your renewed email. We are very interested in investigating the matter and are taking the information seriously.
According to our information, Dalian Haiqing Food Co. Ltd. has five fish factories. Two fish factories produce products for the domestic Chinese market and three fish factories produce export products. We have a business relationship with two of the three fish factories producing for export: Dalian Jiaming Food Co. Ltd. and Dalian Haikuo Food Co. Ltd.
Both factories are BSCI-certified and both factories underwent ICS (Initiative for Compliance and Sustainability) audits in 2023. Two REWE Group employees were last personally on site in June 2023. They were unable to identify any violations. Therefore, the decisive factor in determining whether our supply chain is affected within the meaning of the German Supply Chain Due Diligence Act (LkSG) is whether you have evidence of human rights violations at the two named fish factories. Only with this information can we initiate further measures at the level of the factories and the certification and auditing bodies involved.
We would also be happy to talk to you personally to clarify the matter. If you provide us with the relevant contact details, we will be happy to forward them to our specialised department."
The Outlaw Ocean Project replied: "Thanks for your email and your interest in discussing the investigation further. As you may not know, we're communicating with over 300 companies about our investigation into forced labor, and we're doing so always in writing and on record so we can be fully transparent. While we are unable to speak by phone, we are happy to keep talking by email.
As a journalism outlet, we are unable to provide anything that risks exposing our sources to retribution or penalty from authorities in China and/or North Korea. That said, we do not wish to hinder your investigation into the allegations and will share what additional context we feel safely able to at this time.
Dalian Haiqing operates multiple plants, including Dalian Jiaming and Dalian Haikuo, from the same area in Zhuanghe City, Liaoning.
One of our investigators in China visited this site on our behalf, providing video footage from the grounds. Haiqing displays its branding at each of the facilities, and Chinese corporate records indicate it is still the parent company. We used mapping software and open source footage to independently confirm the location of this investigator’s visit.
Our investigator who visited the site was accompanied by a businessman who works with the plant. This businessman also identified the dorms and said that Haiqing employed 50-70 North Korean workers and has done so since 2021.
Our investigation has also interviewed North Korean workers who worked as recently as 2023 at facilities they said were owned by Haiqing. These workers, most of them women, described their time doing seafood processing at Haiqing plants and some of them described sexual coercion from their managers and sex for pay.
Thomas, thank you for sharing the auditing details. Do you know if the audits that the two Haiqing factories underwent in 2023 were announced or unannounced? Did the auditors, or the REWE employees who visited the plant, have any processes in place specifically to identify North Koreans (for example, being able to speak Korean)?"