Global Perspectives on Product Recall. Food Safety Authority of Ireland Dublin 11-November 2009

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1 Global Perspectives on Product Recall Food Safety Authority of Ireland Dublin 11-November 2009

2 Perception 2

3

4 Source: AMR Research

5 Source: AMR Research

6 Reality 6

7 67% of Food Companies with $5 B or More in Sales had Recalls that Cost $20 M or More in 2007 Source: AMR Research

8 Source: AMR Research

9 Source: AMR Research

10 10

11 Recall Business View - Analyst 18 days to sense & act on a recall only 43% of recalled products with health & safety concerns are traced 42 days to complete the recall 11

12 Canadian Product Recall How did we achieve success in Canada 12

13 We assessed the reality or AS IS situation with Industry partners 13

14 What we found... 14

15 What we did.consensus Driven Success With a roadmap for multiple categories Grocery Recall Approved by Major Associations 2 Requirements Workshops held 2 Service Pilots completed Went Live in Nov General Merchandise Recall 2nd Workshop in Nov Expected Go Live Q Pharmaceutical Recall Workshops in Q Expected Go live Q

16 What is the GS1 Product Recall Service? 16

17 What is the GS1 Product Recall Service? A very low cost subscription based web service that enables industry partners to have a rapid, direct & secure relationship regarding product recall, it; Compliments and automates existing processes Standardizes the recall form and process improving speed, accuracy, effectiveness and compliance Ensures only authorized & approved recalls are issued Has 2 way communication to validate product removal Has the ability to Target receivers w/specific attachments Enables 24x7x365 real-time look up of recall status Follows best practices for technology, privacy, security 17

18 Recall Functional View Retailer Receives Recall Notification Immediately Manufacturer Initiates Recall - Manufacturer completes recall notification form (incl. attachments) - All other internal recall & risk management processes remain in place -The Recall Solution standardizes the communication of recall info to retail partners Complements & enhances existing product recall processes by providing to users: - Accurate & Complete info - In a Standard format - In Real Time - From a Single Trusted Source - and developed by industry for industry - Retailer receives recall notification, detailed product info/image, attachments & disposal instructions in a standard format & single location - Retailer uses this standardized recall information to drive more effective/efficient internal processes (product removal/disposal/return, consumer info, etc.)

19 Security & Audit Trail Multiple Security Layers For All Users Security Access restricted to authorized subscribers with valid User ID & Password Comprehensive verification process by GS1 before registration approved Self-registration enables subscribers to select authorized internal access Subscribers assign roles and permissions to internal users Service requires two separate & authorized users to issue a recall Audit Trail Each recall has a globally unique identification number (GDTI) assigned System records when a recall is sent when a recall notification was opened who opened a recall notification All issued recalls are permanently stored electronically 19

20 Product Recall Notification Status Recall ID Status GDTI Date Created Date Updated Attachment Count 20

21 Food Industry Overview US & Canada Players involved since 2008 to develop the Service Manufacturers Retailers Maple Leaf McCain Quaker Oats Company Procter & Gamble Co. Pharmavite LLC Kraft Foods Inc. Bush Brothers & Co. The J.M. Smucker Company The Coca-Cola Company General Mills Hormel Foods Gold n Plump Poultry Unilever Nestle Purina Loblaws Metro Target Wakefern Food Corp/ Harris Teeter K-VA-T Food Stores Dorothy Lane Market SUPERVALU Inc. Bashas Giant Eagle, Inc. Sobey s Petro Canada Country Grocer Hy-Vee, Inc. Wegmans Food Markets, Inc. Schnuck Markets Inc. Weis Markets, Inc. Ellwood City Save-A-Lot Big Y Foods Covers over 43% of US retail spend and 95% of Canadian retail spend

22 GS1 Organizations Engaged Canada United States Mexico Chile Brazil Columbia Germany UK France Italy Belgium Czech Rep. Sweden Finland China Australia India New Zealand Hong Kong South Africa South Korea Japan

23 Contact Information John Keogh Senior Vice President, GS1