DrivingaFoodSafetyCulture

June8,2017Presentedby:DavidAcheson

Overview

• Whydoesculturema0er•  Biggestchallengesinfoodsafety•  Approachestoassessingrisks•  Approachestomanagingrisk•  Drivingbacktoculture

WhyDoesCultureMaFer

•  Se=ngthetonefromthetop•  Whatma0erstothecompany–  Brandandreputa>on–  Maintainingasafeenvironment–forpeopleandproducts

•  Understandingtherisktodayisimportanttoconveythecorrectculturalmessage

ConstantChallenges

•  Constantinnova>on•  Consumerdemands– Lowcost– Zerorisk– Exci>ngflavors

•  Economicpressures•  Con>nuedgrowth•  Beingfamiliarwiththecurrentchallenges

•  Brandprotec>on

TheChangingFood-SafetyLandscape

•  Complexsupplychains•  Consumerdemands•  Emergingthreats•  Improvingepidemiology•  Influenceofmedia•  Li>ga>on•  Regulatorychanges•  Criminalprosecu>ons

SupplyChainRisks

TheAchesonGroup©2015AllRightsReserved

RisksintheSupplyChain

•  Whoisinyoursupplychain?•  Arethereunknownsourcesupstream?•  Doyourelyonsomeoneupstreamtocontrolmajor

risksforyou?•  Doyourrelyonaudits?•  Doyouhaveaonesizefitsallapproachtosupply

chainriskcontrolegCOAandthirdpartyaudit?•  Doyouhavetransporta>onrisks?•  Howtobalanceriskwithresources

ChangingScienceofFoodSafety

•  Drugresidues

•  Chemicals

•  Heavymetals

•  Newmicrobesbeingfound

•  E.coliO104

•  Ecoli0121

•  An>bio>cresistance

•  Realchallenges

•  Perceivedchallenges

•  Allergens

ChangingScienceofFoodSafety

•  Newrisksiden>fiedwithfoods•  Greatercapacitytolinkfoodwithillness

•  Abilitytomeasurelowerlevelsofchemicals

•  Improvementsingene>ctes>ng•  Wholegenomesequencing•  Linkingspecificisolateswithillness

ConsumerExpectaPonsandMediaInfluence

•  Consumersexpectalltypesoffoodwillbeavailableallthe>me

•  Zerotoleranceforunsafefood•  Consumersplaceresponsibilityforsafe

foodontheproducer

•  Increaseddesireforlocalandunprocessedfood

•  Consumersabilitytodamageabrand

•  Mainstreammedia

•  Socialmedia

Consumers

•  Consumerviewofscience•  Movetowardcleanlabels•  Understandingrisks•  Preserva>vesvsnopreserva>ves

•  Thoughtleadersand“agitators”•  Demoniza>onofprocessedfood

NewRegulaPons

•  FoodSafetyModerniza>onActintheUS

•  Newregula>onsinCanada•  Movingfromreac>ontopreven>on•  Focusingoncorporateresponsibility•  Greaterconsequences•  Holdingcompaniesaccountable

RegulatoryDirecPons

•  FSISfairlyclearonthedirec>ontheyareheading–  Performancestandards–  Physicalcontaminants–  FocusonSalmonella

•  FDA–underalotofpressure–  FSMAimplementa>on–  InspectorGeneralreport–  Lackofunderstandingofthefoodindustry–  TheimpactofWGS–  Direc>onofleadership

OtherKeyPlayers

•  CenterforDiseaseControl•  States•  Consumerorganiza>ons•  Congress•  DepartmentofJus>ce

LiPgaPon

•  LetCDCdothework•  Goingaaerthedeeppockets•  Strictliability•  Doesn’tma0erwhereyouareinthesupplychain

CriminalInvesPgaPons

•  PeanutCorpora>onofAmerica-Salmonella•  ConAgra-Salmonella•  JensenFarms–Listeria•  Iowaeggcompany-Salmonella•  BluebellIce-cream–Listeria•  Chipotle–Norovirus•  Dole–Listeria

HighRisks

•  Congresshasmadeitaprohibitedacttointroduceadulteratedfoodintointerstatecommerce

•  Thisisastrictliabilityoffense,meaningthatacompanyorindividualwhoviolatesthelawandcanfacemisdemeanorchargeswhetherornotitintendedtodistributeadulteratedfood

RegulatoryProceduresManual

– Misdemeanorprosecu>ons,par>cularlythoseagainstresponsiblecorporateofficials,canhaveastrongdeterrenteffectonthedefendantsandotherregulateden>>es

TrackingFoodborneIllness

•  CentersforDiseaseControluseFoodNettotrackhumanfoodborneillness

•  Firstusedin1996•  Capturesillnessfromnineimportantfoodborneagents•  Tracksillnessinapproximately45millionpeoplein10states•  Annualreportoftrends•  Indica>onsforregulatoryfocusandwheretherisksare

HowAreWeDoing?

•  2016FoodNetdata

HowAreWeDoing?

•  2016FoodNetdata

HowAreWeDoing?

•  2016FoodNetdata–percentchanges2016vs2013-2015averages

MajorCausesofTrouble

•  Supplychainfailures•  Labelingmistakes•  Environmentalcontamina>onofreadytoeatfoods

ApproachtoRisk

• Riskassessment• Riskmanagement• Riskcommunica>on

ConPnuousImprovement

Reac>ve Preven>ve

ApproachtoManagingRisk

•  Limitedresources,soneedtoiden>fytoppriorityrisks

•  Notallrisksarethesame

•  Somerisksaretolerable

•  Somerisksneedtobemanagedaggressively

•  Howtoapproachrisk•  Assesstherisk•  Managetherisk

RiskManagementApproach

BrandProtec>on

RegulatoryRisk

Opera>onalRisk

Reputa>onalRisk

OperaPonalRisk

•  Foodsafetyrisksinternallyandinyoursupplychain•  Factorsyoucanhavecontrolover•  Lackofmanagementcommitmentandcri>calresources

•  Lackoffoodsafetyculture•  Failingtoadequatelydocumentandmaintainstandards,policies,proceduresandexpecta>ons

•  Risksfromfailingtobeproac>ve

RegulatoryRisk

•  Riskfrombeingoutofcompliancewithregula>ons•  Failingtobecompliantwithallna>onalorlocalregulatory

requirementsforfoodsafety

•  Failingtoproperlyexecuteoninspec>onalfindings•  Failingtoadequatelymanagerecallrelatedevents

•  Failingtomonitorupcomingregulatorychangesthatcanadverselyimpactthebusiness

•  Failingtounderstandregulatorydirec>onandexpecta>ons

ReputaPonalRisk

•  Risksrelatedtopercep>onsthatimpactyourbrand•  Protec>ngyourbrandwithyourcustomers,media,

governmentandthepublic

•  Risksthatareemergingthatweoaendon’tseecoming

•  Risksdrivenbythemedia–especiallysocialmedia

•  Risksinvolvedfrommis-managingconsumer,customerand/oremployeecomplaints

•  Outsidegroupsdonotknowhowgoodyouarewithfoodsafety

RiskMaturityModel

Good

Be0erBest

Compliance

Compliance+Co

mpanyStand

ards Industry

LeadingPrac>ce

Culture

•  Cultureshouldrunrightthroughanorganiza>on•  Understandingwhyyoufollowprocedures•  Speakingoutwhenyouneedto•  Execu>veshavetosetthestandardsandgoalsfora

company•  Drivenbyrisks•  Appropriateuseofresources

•  Understandingthechanginglandscapeisimportanttomanagerisk,protectthebrandandsettherightculture

Summary

•  Seniorexecu>vesandfoodsafetyprofessionalshavetomangemanydifferentaspectsorrisk

•  Naviga>ngthecurrentfoodsafetylandscapeischallenging

•  Staycurrentwithmul>plechallengeareas

•  Buildingrela>onships•  Preven>onfocuswithstrongreac>vecapabili>es•  Theneedforastrategicandholis>capproach•  Se=ngtherightculture

ThankYouQuesPons?