Food Recalls: Effective Supplier/Retailer Partnerships LeAnn Chuboff | David Guilhaus | Holly Mockus

June 19, 2015

Webinar Logistics

2

• All lines are in listen-only mode

• Post your questions early and often!

• A link to the webinar recording will be emailed shortly after the event

Today’s Speakers

3

LeAnn ChuboffSafe Quality Food

Institute

Holly MockusAlchemy

David GuilhausPublix

Agenda

4

• Food Recall Challenges

• Food Recalls Insight

• Manufacturing Best Practices

• Retailer Perspective

• Q&A

5

Food Recall Challenges

Holly MockusAlchemy

Food Recall Challenges

6

$10 Million Average direct cost to a food

company of a recall

Allergens #1Leading cause of recalls for both the

USDA and FDA

http://www.foodonline.com/doc/my-two-cents-are-you-prepared-for-the-high-cost-of-a-food-recall-0001?sectionCode=Articles&templateCode=Single&user=3098071&source=nl:43110&utm_source=et_6212916&utm_medium=email&utm_campaign=FOL-E_2015-06-

04&utm_term=e6a99a48-6ca0-4d99-be13-aa9501d0ea29&utm_content=My%2bTwo%2bCents%253a%2bAre%2bYou%2bPrepared%2bFor%2bThe%2bHigh%2bCost%2bOf%2bA%2bFood%2bRecall%253f

20%Consumers state they wouldn’t purchase any brand made by a company affected by a recall

7230.1 FSIS Directive Ongoing Verification of Product Formulation and

Labeling Targeting the Eight Most Common (“BIG 8”) Food Allergens

New Regulatory Developments As Of May 2015

7

• FDA Guidance for Industry Questions and Answers Regarding Mandatory Food Recalls Draft*

• Legislation Introduced by Sen. Kirsten Gillibrand (D-NY)

• Give U.S. Department of Agriculture mandatory recall authority over contaminated meat and poultry.

*http://www.fda.gov/downloads/Food/GuidanceRegulation/GuidanceDocumentsRegulatoryInformation/UCM445437.pdf

Food Recall Insight

LeAnn ChuboffSQF

8

The SQF Program• Global program based in the United States

• Owned by the Food Marketing Institute

• Modularized to provide a farm to fork solution

• Designed around the GFSI Industry Scopes

• Includes 35 different food sector categories to meet the needs of all suppliers

• Auditors are credentialed in specific food sector categories

• 3 levels of certification with a unique approach to food quality

9

Top Causes for Global Food Recalls - 2014

10

SQF Non-Conformances

11

2.8.2 Allergen Management 2.8.2.2 Allergen Labelling2.4.1.1 Food Legislation

2.4.2.2 Food Safety Fundamentals2.4.3 Food Safety Plan (M)2.5.2 Validation & Effectiveness2.5.6 Product Sampling, Inspection, Analysis11.7.4.3 High Risk Processes

Disconnect Between Non-Conformance & Reality

Recall: Mislabeling of allergens Non-conformance: 2.8.2.1 - Cleaning and sanitation between change-overs rather than 2.8.2.2 - Product ID and Labeling

Recall: Listeria monocytogenes and environmental monitoringNon-conformance: 11.7.4.1 - Staff access points rather than 11.7.4.1- Environmental Monitoring Program

Recall: Incoming raw materials/ sources Non-conformance: 2.3.3.1 - Contract Service Providers rather than 2.4.5.4- Incoming Goods and Services

12

Best Practices

Prevent recalls and withdrawals by reviewing your food safety system

– Focus on implementing effective food safety systems, not just meeting the SQF Code

– Conduct internal audits– Revisit your approved supplier program– Conduct validation activities

• Don’t forget about the allergen program and finished product labels• Include a review of the EMP

– Conduct a traceback exercise• Include a review of all related processes• Check incoming ingredients to specification

13

Retailer Survey In Progress

• Survey to retailers and manufacturers

• Gain better understanding of the frequency and type of recalls/withdrawals

• How to improve the supplier/buyer relationship

Full results to be shared at Alchemy Conference - September 21st – 23rd

14

SQF Resources

• SQF Training Centers

• Online Training through Alchemy

• SQF Website- www.sqfi.com

15

2015 Upcoming Events

• Learning Lunch Webinar– July 22nd Creating an effective Quality Program

• Lead SQF Auditor (5-day)– August 24-28, Oakbrook, Ill.

• SQF Packaging Auditor– Fall class date TBD- check website

• Alchemy Conference – September 21 – 23rd, Austin, TX

• SQF International Conference– November 3 – 5, Indianapolis, IN

www.sqfi.com/events

16

Manufacturing Best Practices

Holly MockusAlchemy

17

Manufacturing Best Practices

18

• Use Mock Trace to find and fix gaps!– Make it hard– Off shifts– Review ALL documents– Interview employees– Review training– Observe the operation– Bulk is not off limits– Rework only– Allergens– Raw material to finished good– Finished good to raw materials– Processing aids– Traffic pattern (cooler, oven)– Packaging included– Cleaning / Maintenance chemicals

• Mock Trace is a powerful tool!– 100% plus or minus??– 2 hours? 4 hours?– Work sheet?– Plant / corporate metric?

• Review templates at each exercise– Press releases– FAQs– Customer letters– Agency communications– Employee communications

• Retrospective for each exercise– Continuous improvement– Inclusion of all departments

19

Communication is Key• Do you have business relationships with your customers?

– Contact info– Periodic updates– Network– Share best practices

• Customer Communication– Complete– Accurate– Timely– Exact

• Avoid the rolling recall conundrum!!

20

Retail Perspective

David GuilhausPublix

Publix Supermarkets Background

• Employee-owned supermarket chain based in Lakeland, Florida

• $31 billion in revenue

• 85th anniversary

• 1,102 stores throughout Southeastern U.S.

• 11 food manufacturing facilities

• #2 on FORTUNE’s “Most Admired Companies”

• FORTUNE’s 100 “Best Companies to Work For”

21

How Should Suppliers Support Retail During Recalls?

22

Don’t have any!

How Should Suppliers Support Retail During Recalls?

23

In reality, when they do happen, up-front transparent communication is key.

Food Safety as our Strategy

Corporate Food Safety Objective

Food safety is a top priority. We do this by training our associates on food safety standards, monitoring compliance

with standards, having a best-in-class recall program, and following clear processes to elevate significant issues to company officers and/or the board of directors.

24

Recall Trends at Publix

2010 2011 2012 2013 20140

50

100

150

200

250

Severity 1Severity 2

25

Recall Trends at Publix

26

Quality35%

Misla-belling

28%

Undeclared Allergen12%

Pathogens7%

Foreign Material4%

Underweight1%

Other12%

2014 Recall Reasons by Count

Recall Information Sources

27

• Food and Drug Administration

• U.S. Department of Agriculture

• Centers for Disease Control

• Consumer Product Safety Commission

• Environmental Protection Agency

• FoodTrack

• Rapid Recall Exchange

• Suppliers

Recall Information Resource

• Rapid Recall Exchange (RRE)

Rapid Recall Express (RRX)

• RRX is– fillable standardized form – sponsored by GS1 US– advocated by FMI and GMA who promote the use of GS1

business standards– available to all suppliers free of charge

• www.rapidrecallexchange.org

28

Recall Management at Publix

• Product Response System

• Remove product within 3 hours

• Report units recalled

• Assist– Audible alerts for retail associates– Lock-out at the point of sale register– Verify 100% completion– Account for all customer returns– Recall reports for regulatory

• Consumer notification– Publix has no loyalty cards– Signage, Website, and Social Media

29

Recall Communication Board

• Located at all Publix retail stores

• Can hold up to 24 recall announcements

30

Recall Communication Board

31

Retail Best Practices

• Importance of an effective recall management system

• Prompt removal of recalled product from the market place

• Necessity for all stores to report the units removed at the time of the recall and with any customer returns

• Provide premier service and assist customers, stores, and regulatory officials

32

33

Q & A

Upcoming Events

34

• Network with industry leaders• Master best practices• Discover new technologies

http://www.alchemysystems.com/alchemy-conference/

SQF International Conference – Nov. 3-5, 2015

35

• Key Benefits– Hear the latest food safety

information– Updates to the SQF Program– Network with your peers– Meet new contacts and experts– Learn about innovative solutions to

everyday problems– Become a more effective leader

• Who Should Attend– Food Safety Professionals at all

levels of supply chain– Individuals from companies seeking

to enhance current programs– Companies beginning to implement

a food safety program– Food safety auditors, consultants,

and trainers

www.sqfconference.com

THANK YOUTelephone: 888.988.8832

contactus@alchemysystems.comwww.alchemysystems.com

http://blog.alchemysystems.com/

LeAnn Chubofflchuboff@sqfi.com

David Guilhausdavid.Guilhaus@publix.com

Holly Mockusholly.mockus@alchemysystems.com