BACKGROUND THE PCA S EFFECT ON THE FOODSERVICE INDUSTRY

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2 BACKGROUND THE PCA S EFFECT ON THE FOODSERVICE INDUSTRY , Peanut Crpratin f America shipped cntaminated peanut prducts One f the largest ever fd recalls in the United States Ingredient-driven utbreak

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4 FACTS&FIGURES 3,918 entries in the Reprtable Fd Registry Sysc affected by recalls frm suppliers that purchased frm PCA Sysc never purchased anything directly frm PCA

5 BANKRUPTCY Due t bankruptcy, PCA was n lnger able t cmmunicate with custmers regarding recalled prducts. FDA and Texas Department f State Health Services tk respnsibility f ntifying cmpanies FDA initiated a searchable database f recalled prducts, updated as additinal recalls are identified.

6 WHAT THE FDA KNEW MID-JANUARY 2009 Grwing multistate utbreak Salmnella Typhimurium assciated with King Nut peanut butter and Austin and Keebler brands f PB crackers PB was prduced by PCA in Gergia

7 WHAT THE FDA DIDN T KNOW MID-JANUARY 2009 Were peanut butter/peanut paste frm PCA the nly cntaminated ingredients? Hw extensive was the cntaminatin? What prducts shuld be recalled? What is the scpe f the recall? Wh received cntaminated prduct?

8 WHAT THE FDA DIDN T KNOW CONTINUED Hw were the ingredients used? Hw many prducts were affected? Were these causing illnesses? What t tell cnsumers?

9 INDUSTRY EFFECTS HOW THE OUTBREAK CHANGED FOODSERVICE Caused cnfusin amng cnsumer abut which prducts are safe t eat Lsses t supply chain partners that can t recver csts frm PCA Decreased sales f all brands f peanut butter by nearly 25 percent resulting in $1 billin lss t the US peanut industry Affected cnsumer trust f the fd industry

10 SHIFTING SITUATIONS CHANGES TO THE RECALL Expansin t cver additinal Facilities, Prducts and Time Spans Original recall invlved PCA peanut butter and peanut paste frm Blakely, GA. Facility since July 2008 Expanded recall includes peanuts and peanut prducts shipped by Plainview, TX Facility since January 2007

11 RECALLS

12 GOALS OF A RECALL Prtect Cnsumer Cmply with Laws and Regulatins Prtect Cmpany, Assets, Brand and Crprate Image Minimize Ptential Liabilities Minimize Disruptin t Sales Prtect Relatinships with Gvernment & Regulatry Bdies

13 EFFECTIVE RECALL MANAGEMENT WORK IN A TEAM Multi-faceted recall team Management (Decisin Making) Quality Assurance and Technical Advisry Media Cmmunicatin Cmplaint Investigatin Cnsumer Relatins / Custmer Service (Cntacting Accunts) Agency Cntact Legal Cunsel IT/Systems Supprt

14 EFFECTIVE RECALL MANAGEMENT KEY COMPONENTS Understand regulatry definitins and respnsibility Incrprate with Crisis Management Prgram Supplier Management, Recrd and Dcument Management Lt Traceability Cmmunicatins Capabilities IT Systems Supprt Review, Testing and Training: Excellent Preparedness and Respnse can make the difference!

15 SUCCESSFUL EXECUTION DEVELOPING A RECALL PLAN Class and Depth Cmmunicatins Plan Retrieval and Dispsitin Plan Effectiveness Check Plan Affect n Market Prduct Replenishment Plan Pst Recall Assessment/Evaluatin

16 TRACEABILITY Required by law Minimize Scpe AND Quickly and Accurately Remve Prducts frm Distributin Supply chain partners track differently, understand what they need t identify prduct IFDA and IFMA partnered t develp guidelines fr Essential Infrmatin fr an Effective and Efficient Prduct Recall Understand surce f materials fr yur private label prducts

17 TRACEABILITY CONTINUED Supplier Apprval Prgram in place Prduct Testing Prgram Standard Sanitatin Operating Prcedures Envirnmental Testing Prgram Ability t identify prduct that cntain specific ingredients frm specific supplier and/r regins

18 COMMUNICATION

19 WHAT TO COMMUNICATE Cmmunicatin f risk assciated with recall prduct Where affected prducts shipped Hw t prperly identify affected prduct What t d with affected prduct

20 WHAT TO COMMUNICATE CONTINUED Wh t cntact at yur cmpany D yu require written cnfirmatin f destructin? Methds used t cmmunicate: T supply chain partners T custmers/cnsumers Cmmunicate what prducts are in recall withut implicating nes that are nt Especially as situatin is evlving Being prepared t handle a high vlume f calls Cnsumer perspective: Clear, cncise, hnest

21 REGULATION

22 REGULATION LEGISLATION FDA USDA/FSIS 1938 Federal Fd Drug and Csmetic Act 1967 Fair Packaging and Labeling Act 2011 Fd Safety Mdernizatin Act 1906 Federal Meat Inspectin Act 1957 Pultry Prducts Inspectin Act 1970 Egg Prducts Inspectin Act

23 WHAT IS BEING DONE TO PREVENT OUTBREAKS? FDA Reprtable Fd Registry FSMA Respnsibility fr Preventin is placed n industry Mandatry Recall Authrity Suspensin f Registratin Administrative Detentin Traceability studies

24 OUTBREAK PREVENTION CONTINUED FDA s Incident Management Grup Cperatin with State Departments f Health PulseNet CDC s OutbreakNet USDA Recent annuncement regarding E. Cli Prvide infrmatin and tls t help successfully manage a fd recall

25 RESOURCES FDA - 21 CFR Part 7 ORA/OE/DCMO Guidance fr Industry: Prduct Recalls, Including Remvals and Crrectins: Reprtable Fd Registry Fd Safety Mdernizatin Act FSIS Directive (rev. 5)