Ensuring your success

LINDA JACKSON

HOUSTON BROWN & JACKSON (PTY) LTD

www.hbj.co.za

A contradiction?

“People think of innovation and risk management as two opposing poles, but they’re not. Great achievements

require great risk management. If you look at the great innovators of the world, you’ll see they’re actually great

risk managers.

www.thejournal.ie

According to Donna Berry...

1. There will be less added sugar in everything dairy. In some cases, the

reduction will be stealth. Reducing inherent lactose complements this trend.

2. Dairy proteins rule in the world of food ingredients.

3. The cultured dairy category, including yogurt, will be fat friendly, and Greek is

no longer the only word.

4. Simple and clean continue to be important. Get rid of those artificial colours.

5. Functional nutrition in dairy foods back on track. Think fiber, omega-3s and

plant sterols.

http://berryondairy.blogspot.com/2014/10/dairy-foods-2015-are-you-ready-for-new.html

Preservative free

Allergen free

Minimal processing

“Organic”

Sales creation officers

Sales prevention officers

What are the implications from a risk point of view?

Food safety risks?

Quality risks?

Validation

Supplier assessment

Specifications

COA’s

HACCP plan review

...

BMW

Honda

Dell

Toyota

Kawasaki

Foodcorp – petfood

Tigerbrands

Parmalat

Game

“Tiger Brands recalls 17,000 units of food”

“Tiger Brands rushes to shore up trust after food recall”

“Parmalat juice tainted with caustic soda

Parmalat has confirmed to Health24 that a batch of contaminated PureJoyapple juice contained traces of sodium hydroxide, more commonly known as caustic soda.”

The world's watching you Fonterra

Pharmaceutical giant recalls painkiller, Excedrin in SA

At least four million moulded Bumbo Baby Seats have been recalled from around the world, by South African company Bumbo

International Trust.

Amidst all the controversy, the popular baby seat is still being manufactured in Gauteng and

is still being sold in South African stores.

The National Regulator for Compulsory Specifications ("NRCS") in South Africa

announced an urgent recall of the Dettol Disinfectant Liquid and Domestos Extended

Germ Kill products at the end of July 2013

NOTICE OF PRODUCT RECALL - PRESS STATEMENT

Product: Rhodes Brand Mild and Hot Chakalaka

The Consumer Commission and Game recalled the dolls on 9 April 2014 after 174

000 dolls were recalled in the United States and Canada for a similar defect.

“never build … a new product in a new factory with a new workforce.”

Those “three nevers” are opportunity for trouble, because organizations must always combine knowing with growing if they are to succeed in a global marketplace.

sweetened with aspartame rather than sugar.

Inulin...chicory root fibre...etc...

A Strategic Approach to Managing Product Recalls

Risk management – a company wide approach

Exploit Enhance Share

1. Business interruption and supply chain

4. Damage to brand reputation

Put qualified people in charge of food safety.

Listen to the qualified food safety professionals you’ve hired

Use IT to give you data so you make the right decisions

Stay current with regulatory and code compliance for every jurisdiction in which your company operates

Use contracts with your vendors to protect your customers and indemnify your company of liability if something goes wrong

Make sure you have enough insurance cover to pay

“to protect the purchaser (the "insured") from the risks of

liabilities imposed by lawsuits and similar claims”

General liability covers awards of damages because of an accidental injury/loss to third

party or their property caused by you or your business. It covers the business whether the incident occurs on your property, or theirs. It

also meets the cost associated the award, like legal fees, costs, expenses or medical

treatment.

The Underwriters will indemnify the insured against their liability to

pay

compensation including costs fees and expenses for and arising out of

Any Injury and or Damage

Product liability insurance covers you against damages awarded as

a result of damage to property or personal injury caused by

your product.

The reasonable and necessary expenses of recalling and replacing products where their continued use or consumption could cause the Insured to incur a legal liability.

“We’ve had several claims in the food and beverage sector and the manufacturing sector where the quantum has exceeded R15m per incident. The amounts could have been much higher in all cases in the absence of an effective product recall plan.”

SHA

The cure-all for poor food safety and quality systems?

Assess the Risk

Notify Insurers

Cease Distribution of the Product

Notify Regulators

Notify Consumers

Facilitate Returns

Maintain Records and Provide Progress

Reports

- Number of plants/facilities and daily output

- QA - in force QA plans in place

- HACCP

- ISO Standards

- Do suppliers abide by HACCP standards ?

- Product testing

- Audits

- Recall preparedness

- Loss information if any

- Traceability challenges

- Batch coding etc

- Do they perform mock recalls at all

HBS

LINDA JACKSONHOUSTON BROWN & JACKSON (PTY) LTD

www.hbj.co.za0832744003