Leveraging GFSI to support Food SafetyManagement at Mondelez International

Jorge Toro, Associate Director Corporate Quality

Latin America - Mondelez International

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A global snacks powerhouse with net revenues of $34 B in 2014

products marketed in 165 countries

over 100,000 employees

working with around 3,000 Raw

Material Suppliers, and about 2,000

Packaging suppliers

Food Safety Management at

Mondelez International

How do we manage Food Safety at Mondelez

• Providing Food that is Safe to Eat is at the Core of Mondelez Values

• We ensure that our consumers and customers can trust the products that we manufacture and provide to them

• We do this by having:

A comprehensive Food Safety program that meets or exceeds regulatory

requirements and ensures global consistency

Benchmarking annually to ensure the robustness of our food safety

program including 3rd party audits (GFSI)

Continuously evolving our global strategies on Food Safety, with global

goals to drive further progress

Leveraging Supply Chain initiatives to support the Food Safety program

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Executive Summary

Food Safety management occurs at multiple levels

MDLZ International Board of Directors

Level

• Review food safety management

Responsibility

• Assess company risk profile and management programs

•Assess and proactively manage issues, issues prevention, and communication of lessons learned

• Implement the company food safety policy and programs, ensure regulatory compliance

•Establish food safety policy, control programs, and compliance mechanisms

MDLZ Executive Team

Special Situations Management Team

Food Safety & Quality Senior Management

Business Units

CONFIDENTIAL

We have an Integrated Quality Management Approach that

focuses on Systems across Key Factors in the Supply Chain

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Risk Categories

Design Procure Convert* Distribute Trade Consumer

• Design Safety Analysis

• Specifications

• HACCP

• Allergen Mgmt

• Supplier QA

• Plant & Equipment Design/Capability

• Package Integrity

• Contracts

• Selection/Approval

• Material Monitoring

• Continuous Improvement

• Specifications

• HACCP

• Supplier QA

• Traceability

• Sanitation & Allergen Control

• Complaint Mgmt

• Process Capability/Lean Six Sigma

• Infrastructure Investment

• Traceability

• Warehouse Controls

• Complaints

• Warehouse Control

• Specification

• Labeling

• Consumer Feedback

• Process Capabilities

*Applies to internal & external plants

MicrobiologyChemical Physical

Scope

Quality Risk Prevention Programs

Background

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Quality Policy

Policies set our worldwide standards for food safety and quality

Based on ISO standards, provides a foundation and common language to communicate design, product safety and quality requirements throughout the supply chain.

Compliance with regulations, code of conduct and industry standards

Scope includes MDLZ Int. sites, external manufacturers, and suppliers

Training program builds understanding & competencies

Consistency across entire company

Audits verify adherence

Minimum

legal requirements

Quality Chain

Management System

Food Safety &

Quality Assurance

HACCP

GMP

Quality Audits

Quality Management – QCMS

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GMP/GHP HACCP QCMS/ISO QM

Prerequisite

ProgramsFood Safety

(HACCP)Quality

Systems

Cultural & Managerial

Approaches

How it fits together…

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Executive Summary

Quality & Food Safety Programs are designed to Assess, Manage, and Mitigate Risks

RISK

MANAGEMENT

RISK

MITIGATION

RISK

ASSESSMENT

Supplier Approval& Management

Design Safety Analysis(DSA)

Hazard Analysis & Critical Control Points(HACCP)

Third Party Validation

Auditing

Material Monitoring

Training

Traceability

Specification Management

Contingency Planning

Special Situations Management

GFSI at

Mondelez International

MDLZ has made a strong commitment to the Global Food Safety Initiative. Steps that we have taken include:

Sending a communication to all MDLZ raw material suppliers globally (~3000) with the expectation that they receive certification from one of the GFSI accredited standards by the end of 2016

Currently nearly 84% of suppliers with a GFSI benchmarked certification

Ensuring that all of our internal manufacturing facilities have a GFSI certification. (We have chosen FSSC 22000) by the end of 2015

Currently at 97% of facilities certified

Promoting GFSI to our external partners including Joint Ventures and External Manufacturers

Partnering with other GFSI members to build knowledge and capability of food safety through the global markets program

Continued support to GFSI through our board membership and participation in Regional Focus Days and the Annual Conference

• All suppliers to Mondelēz shall be GFSI certified:

• SQF2000 Levels 2 or 3 (Safe Quality Food)

• BRC versions 5 & 6 (British Retail Consortium)

• IFS versions 5 & 6 (International Food Standard)

• FSSC22000 (Food Safety System Certification)

• All details about GFSI here: www.mygfsi.com

• Existing suppliers / renewals of approval: No longer accepted:

ISO22000 audits without PAS220

ISO22000 + PAS220 approvals issued after January 1 2012 and without confirmed

appointment for upgrade to FSSC22000 at next audit

GMA-SAFE approvals issued after December 31, 2011

Dutch HACCP issued after January 1 2012

GFSI = Global Food Safety Initiative BenefitsA GFSI-benchmarked scheme gives confidence that the certified food safety management system is required to be adequately designed, implemented and maintained“Once certified, accepted everywhere” - Certificates gained from an audit to any GFSI recognized scheme are accepted by many international and regional/national retailers or suppliers: Anticipated reduction in the number or seriousness of food safety issues Anticipated reduction in the number of audits

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Leveraging GFSI certifications for new and existing suppliers

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Executive Summary

GFSI targets & achievements

Global :

More than 95 % Internal Manufacturing sites certified with a GFSI recognized scheme ( FSSC 22000)

> 80 % Suppliers certified under a GFSI recognized scheme

Suppliers GFSI Certification

Region Suppliers

in Program

scope

GFSI

Certified2012

%GFSI

2013 YE

%GFSI

Current %

GFSI *

Latin

America

414 210 29 % 33 % 51.0%

Global 2708 2187 38 % 50 % 81.0%

Latin America :

100 % Internal Manufacturing sites certified with a GFSI recognized scheme ( FSSC 22000)

51.0 % Suppliers certified with a GFSI recognized scheme

External Manufacturing sites required to be certified by 2017

* June 2015

Receiving certification by a GFSI recognized standard through an accredited third party provides numerous benefits: Improved consumer

confidence in safer food

Certified companies are more

disciplined, more efficient and more profitable- Tool for

continuous improvement in site performance on food

safety

Certified companies show equivalence of

process across countries and

continents – MDLZ’s suppliers are now

able to demonstrate that all of their

facilities follow the same type of Quality Management System

The GFSI recognized standards are

accessible and are shared by many –

Once you are certified, you can

provide raw materials to any company who accepts GFSI

certification in lieu of their own audit

Cost efficiency in the supply chain –

MDLZ has been able to supplement

internal resources through our GFSI

approach with third party certification

bodies

Food Safety through the Quality Chain

Non-Sensitive ingredient suppliers

Identification of Suppliers

GFSI + MDLZ SQE Requirements

GAP Assessment & Closure

Mdlz SQE Audits or

GFSI Recognised Certification

Approval

Sensitive ingredient suppliers

Identification of Suppliers

GFSI & MDLZ SQE Requirements

GAP Assessment & Closure

Initial Mdlz SQE Audit &

3rd Party GFSI Certification

Approval + Periodical Technical visit

Internal Manufacturing

Training on QCMS

HACCP Implementation

GAP Assessment & Closure

Mdlz Global Audits&

3rd Party Certification

External Manufacturing

Training on QCMS

GAP Assessment

Commercial Alignment

Scheduled Mdlz Global Audits &

3rd Party Certification

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Co

nsu

mer S

afe

ty &

Satis

fac

tion

Why a shared responsibility?

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Executive Summary

…because… the world population will grow and so will demand more food… safe food…

World population is projected to grow from

6.1 billion in 2000 to 8.9 billion in 2050,

increasing therefore by 47 per cent.

* UN New York, 2004

The Food and Agriculture Organization of the United Nations (FAO)

estimates that 60 percent more food is needed to feed a world population

of nine billion people.

The globalization of the food trade offers many benefits to consumers

but at the same time present new challenges to food safety and suppose a

stricter food safety system to minimize risks.

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Executive Summary

… because food contaminations knows no borders and what is originated in one area is distributed widely and can cause illness in large numbers of people in distant places.

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Executive Summary

…because… GFSI was

established to ensure

safe food for everyone

globally and to enhance

food safety through

capacity building,

contributing to the

development of local

suppliers and small, local

businesses in countries

around the world through

its Local Groups.

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Executive Summary

…because we integrate a global network of experts from

different areas working in a collaborative way to define best

practices with great focus and shared responsibility to improve

food safety in the whole supply chain

Different areas : Industry, Retail, Food Services, Government, Academia.

Collaborative : helping each other, no competition when discussing Food Safety

Best practices: Hazard Analysis , Design Risk Assessment, Preventive Controls,

Science based risk management.

Whole Supply Chain: “farm to fork”

approach to cover all sectors of the

Food System .

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Executive Summary

Consumers

GovernmentFood

Services

Retail

Organisations

Academia

Manufacturers

…because …we have a shared vision of “safe food for consumers everywhere” and consumers are the core of our collaborative efforts

Thanks!