Driving a Food Safety Culture. June 8, 2017 Presented by: David Acheson

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1 Driving a Food Safety Culture June 8, 2017 Presented by: David Acheson

2 Overview Why does culture ma0er Biggest challenges in food safety Approaches to assessing risks Approaches to managing risk Driving back to culture

3 Why Does Culture MaFer Se=ng the tone from the top What ma0ers to the company Brand and reputa>on Maintaining a safe environment for people and products Understanding the risk today is important to convey the correct cultural message

4 Constant innova>on Consumer demands Low cost Zero risk Exci>ng flavors Economic pressures Con>nued growth Being familiar with the current challenges Brand protec>on Constant Challenges

5 Complex supply chains Consumer demands Emerging threats Improving epidemiology Influence of media Li>ga>on Regulatory changes Criminal prosecu>ons The Changing Food-Safety Landscape

6 Supply Chain Risks The Acheson Group 2015 All Rights Reserved

7 Risks in the Supply Chain Who is in your supply chain? Are there unknown sources upstream? Do you rely on someone upstream to control major risks for you? Do your rely on audits? Do you have a one size fits all approach to supply chain risk control eg COA and third party audit? Do you have transporta>on risks? How to balance risk with resources

8 Changing Science of Food Safety Drug residues Chemicals Heavy metals New microbes being found E. coli O104 E coli 0121 An>bio>c resistance Real challenges Perceived challenges Allergens

9 Changing Science of Food New risks iden>fied with foods Safety Greater capacity to link food with illness Ability to measure lower levels of chemicals Improvements in gene>c tes>ng Whole genome sequencing Linking specific isolates with illness

10 Consumer ExpectaPons and Media Influence Consumers expect all types of food will be available all the >me Zero tolerance for unsafe food Consumers place responsibility for safe food on the producer Increased desire for local and unprocessed food Consumers ability to damage a brand Main stream media Social media

11 Consumers Consumer view of science Move toward clean labels Understanding risks Preserva>ves vs no preserva>ves Thought leaders and agitators Demoniza>on of processed food

12 New RegulaPons Food Safety Moderniza>on Act in the US New regula>ons in Canada Moving from reac>on to preven>on Focusing on corporate responsibility Greater consequences Holding companies accountable

13 Regulatory DirecPons FSIS fairly clear on the direc>on they are heading Performance standards Physical contaminants Focus on Salmonella FDA under a lot of pressure FSMA implementa>on Inspector General report Lack of understanding of the food industry The impact of WGS Direc>on of leadership

14 Other Key Players Center for Disease Control States Consumer organiza>ons Congress Department of Jus>ce

15 LiPgaPon Let CDC do the work Going aaer the deep pockets Strict liability Doesn t ma0er where you are in the supply chain

16 Criminal InvesPgaPons Peanut Corpora>on of America - Salmonella ConAgra - Salmonella Jensen Farms Listeria Iowa egg company - Salmonella Bluebell Ice-cream Listeria Chipotle Norovirus Dole Listeria

17 High Risks Congress has made it a prohibited act to introduce adulterated food into interstate commerce This is a strict liability offense, meaning that a company or individual who violates the law and can face misdemeanor charges whether or not it intended to distribute adulterated food

18 Regulatory Procedures Manual Misdemeanor prosecu>ons, par>cularly those against responsible corporate officials, can have a strong deterrent effect on the defendants and other regulated en>>es

19 Tracking Foodborne Illness Centers for Disease Control use FoodNet to track human foodborne illness First used in 1996 Captures illness from nine important foodborne agents Tracks illness in approximately 45 million people in 10 states Annual report of trends Indica>ons for regulatory focus and where the risks are

20 2016 FoodNet data How Are We Doing?

21 2016 FoodNet data How Are We Doing?

22 How Are We Doing? 2016 FoodNet data percent changes 2016 vs averages

23 Major Causes of Trouble Supply chain failures Labeling mistakes Environmental contamina>on of ready to eat foods

24 Approach to Risk Risk assessment Risk management Risk communica>on

25 ConPnuous Improvement Reac>ve Preven>ve

26 Approach to Managing Risk Limited resources, so need to iden>fy top priority risks Not all risks are the same Some risks are tolerable Some risks need to be managed aggressively How to approach risk Assess the risk Manage the risk

27 Risk Management Approach Opera>onal Risk Regulatory Risk Reputa>onal Risk Brand Protec>on

28 OperaPonal Risk Food safety risks internally and in your supply chain Factors you can have control over Lack of management commitment and cri>cal resources Lack of food safety culture Failing to adequately document and maintain standards, policies, procedures and expecta>ons Risks from failing to be proac>ve

29 Regulatory Risk Risk from being out of compliance with regula>ons Failing to be compliant with all na>onal or local regulatory requirements for food safety Failing to properly execute on inspec>onal findings Failing to adequately manage recall related events Failing to monitor upcoming regulatory changes that can adversely impact the business Failing to understand regulatory direc>on and expecta>ons

30 ReputaPonal Risk Risks related to percep>ons that impact your brand Protec>ng your brand with your customers, media, government and the public Risks that are emerging that we oaen don t see coming Risks driven by the media especially social media Risks involved from mis-managing consumer, customer and/or employee complaints Outside groups do not know how good you are with food safety

31 Risk Maturity Model Be0er Best Good Compliance Compliance + Company Standards Industry Leading Prac>ce

32 Culture Culture should run right through an organiza>on Understanding why you follow procedures Speaking out when you need to Execu>ves have to set the standards and goals for a company Driven by risks Appropriate use of resources Understanding the changing landscape is important to manage risk, protect the brand and set the right culture

33 Summary Senior execu>ves and food safety professionals have to mange many different aspects or risk Naviga>ng the current food safety landscape is challenging Stay current with mul>ple challenge areas Building rela>onships Preven>on focus with strong reac>ve capabili>es The need for a strategic and holis>c approach Se=ng the right culture

34 Thank You QuesPons?

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