Correspondence
Email sent to two press contacts at Walmart.
The email said: "We last emailed Walmart in February 2024 regarding our investigation into the use of forced labor in China’s seafood processing industry. For several months, we have been conducting an investigation of the shrimp company, Choice Canning. Part of that investigation has involved an ongoing conversation with a former Choice Canning employee who managed a plant for the company in Andhra Pradesh, India. We began talking while they were still on staff with Choice Canning and we have continued the dialogue since they stepped down from their position with the company. This person has filed a whistleblower complaint to U.S. federal authorities.
Through them and other channels, we have collected a variety of materials concerning Choice Canning, particularly regarding the company’s operations in Andhra Pradesh. These materials include: internal emails, WhatsApp messages, voice memos from senior management, security footage, audio recordings of meetings of Choice Canning staff, invoices from employment contractors, documentation produced by auditors for internal and external use, among other items. We have conducted an intensive review of all those materials. We have also interviewed current and former workers from the plant. We have also corroborated various findings using other documentation (including local news reports from Andhra Pradesh and industry analysis by non-governmental organizations), interviews with experts (such as shrimp industry groups and industry lawyers), and analysis of hundreds of videos taken in and around the Amalapuram plant. We also dispatched a videographer to the plant to visit one of the offsite peeling sheds and to inspect conditions at the Amalapuram compound.
Our investigation found evidence of:
Document falsification by Choice Canning management to mislead auditors about where it sources shrimp and the true count of employees on-site;
Decisions by senior Choice Canning management to ship to customers in the U.S. shrimp that it knows to be antibiotic-positive;
Contradictory documentation by SGS auditors, with SGS reports produced for Choice Canning’s internal use raising concerns about unsanitary production conditions, while SGS reports for external review raised no such issues and instead supported BRCGS and BAP certification of Choice Canning;
Senior Choice Canning management approving the underpayment of workers, and complaints to local police by workers who did not receive payment or who received payment long after it was due;
Choice Canning staff complaints about inadequate living conditions on-site, including worker dorms without proper bedding, or with unhygienic canteen food;
Workers being prevented from leaving the site of their own volition;
Choice Canning’s ongoing use of unsanitary off-site peeling sheds which it concealed from auditors;
Understatement of the number of workers based at the plant and the temporary relocation of some of those workers when auditors visited so as to give a false picture;
Repeated complaints from people living near Choice’s Amalapuram plant of pollution causing health problems in the community;
“Gift” payments to local officials that some might view as bribes.
Trade data and company documents show that Choice Canning has supplied shrimp to Walmart under Walmart’s own brands ‘Great Value’ and ‘Sam’s Choice’.
Questions we have for Walmart:
- While we understand that you might not be aware of any of the above issues, does Walmart have any comment or statement to make in response to this email?
- Is Walmart aware of any audits conducted at Choice Canning? If so, can you confirm who carried out the audit and when?
Please let us know your responses to the above questions by close of business on March 15, 2024. Please also note that we will need for all our interactions to remain on record and in writing."
Blair Cromwell, Director of Global Communications at Walmart, replied: "Below is Walmart’s statement.
As outlined in our Standards for Suppliers, Walmart prohibits unsafe working conditions or forced labor of any form. We expect suppliers to operate safe workplaces and take responsibility for the wellbeing of their workers, and we expect our suppliers to adhere to our forced labor prevention principles including workers not paying to get a job, workers understanding the terms and conditions of their employment, and that workers have freedom of movement. Our Standards also apply to companies that our suppliers employ, including raw material, component or ingredient suppliers, subcontractors and agents, and we expect them to cascade these standards throughout their supply chain. If we learn that serious issues may be present in a supplier facility, whether through allegations made or audits, we deploy Walmart investigators to gather facts through on-site visits to facilities or through other means. As such, we are looking into the allegations raised by Outlaw Ocean."
A subsequent email was sent to Walmart, saying: "The piece we are preparing to publish, which we believe to be in the public interest, will mention Walmart briefly as one of Choice Canning’s clients, but in no way accuses the company or any of its officers of doing anything wrong.
We are writing, therefore, to alert Walmart to matters uncovered by the investigation prior to publication of our article, and to offer the firm the opportunity to comment should they wish to.
The article will highlight some concerns about the plant at Amalapuram which include: Workers being paid less than the minimum wage. Workers living on the site not being allowed to leave without permission. Internal staff communications which suggest the plant is claiming all the hatcheries it buys from are Best Aquaculture Practice (BAP)-certified, whereas in fact they are not. The alleged use of unaudited off-site peeling sheds. WhatsApp messages appearing to demonstrate that authorisation was given to ship shrimp that had tested positive for antibiotics on more on one occasion.
As I said, the piece will cast no blame on Walmart. We have seen your response to the Outlaw Ocean Project of March 13 saying that you are investigating its claims, so this is just to give you the opportunity to provide any further response or comments should you wish to do so, which we will consider for inclusion in the piece. Please reply by 1pm ET on Monday March 18 if you would like us to do this."
Blair Cromwell, Director of Global Communications at Walmart, emailed: "Can you share details on the timing of your story? I am also sharing an updated statement that includes information related to the antibiotic issue you raised in your email.
As outlined in our Standards for Suppliers, Walmart prohibits unsafe working conditions or forced labor of any form, and as outlined by our [Antibiotics in Farm Animals Position](https://corporate.walmart.com/policies#antibiotics-in-farm-animals-position, we limit our supplier’s use of antibiotics in the food we source, including fresh and frozen seafood. We expect suppliers to operate safe workplaces, take responsibility for the well-being of their workers, adhere to our forced labor prevention principles and to protect the integrity of the food we sell by complying with all FDA regulatory requirements and Walmart food safety standards. Furthermore, Walmart Standards apply to companies that our suppliers employ, including raw material, component or ingredient suppliers, subcontractors and agents, and we expect them to cascade these standards throughout their supply chain. If we learn that serious issues may be present in a supplier facility, whether through allegations made or audits, we deploy resources to gather facts through on-site visits to facilities or through other means. As such, we are looking into the allegations raised.
For more information on Walmart’s approach to food safety, see Safer, Healthier Food & Other Products For more information on Walmart’s approach to sourcing responsibly, see People in Supply Chains"