Challenges and Opportunities: Managing Food Safety Risk

Lois LehmanSenior Manager FSQAUS Foods

Agenda

• US Foods

• Importance of Food Safety

• The Risks

• USF approach

• Additional Opportunities

• Q&A

U.S. Foods – Background

One of the largest foodservice distributors in the United States Headquartered in Rosemont, IL Annualized revenue of US$19B 25,000 employees - best jobs in the industry One of the largest private refrigerated

transport fleets Sell > 300,000 food & non-food products To more than 250,000 customers that

include Colleges & Universities , Government, Hospitality, Healthcare and Restaurants (Chains and Single Units)

LocationsMore than 60 distribution centers and 13 processing facilities

Food Safety Importance Shaped by Critical Events

2006 - SpinachTomatoes- 2008Peppers- 2008

2009 Peanut Butter2010- EggsSprouts- 20112011 Turkey BurgersMelons- 2011Rocky Ford Melons 2011Sprouts 2012

Outcome?

Copyright PMA 20096

The Headlines:

Illinois *** Salmonella Outbreak LawsuitJune 21,2010……A Salmonella lawsuit was filed on behalf of a Will county, Illinois resident, who became infected with Salmonella after eating at a **** restaurant.

Salmonella Linked to Central IllinoisOctober 22, 2010 (WLS) -- State health officials say they have traced a widespread salmonella outbreak at some Chicago-area restaurants to a food distributor based in central Illinois

ABC Local

* Deloitte 2010 Survey** ASQ 2009 Survey***PEW Poll September 8, 2009

73% are as equally concerned about food safety as the war on terror**

93% say food growers, manufacturers, operators should be held legally responsible when individuals are fatally sickened by tainted food***

76% Americans are at least somewhat

concerned about food safety and food recalls*

Food Safety Importance- CUSTOMERS

Impact on the Operator?

More than ever food safety is Critical to an operator

• Customers concerned

•Food Safety Legislators- New Laws

• New Regulations

• More inspections and power to inspectors

• More testing

• More Recalls

• More National/ Regional or Local stories

• More Operators concerns

USF Approach to Food Safety and Regulatory Compliance

2nd & 3rd

PartyVerification

Producers Processors Distributors Customers

RISK RISK RISK

2nd and 3rd

PartyVerification

Mitigation Points FS SystemsHACCP FS ChecksQuality Checks

Mitigation Points FS SystemsHACCP FS ChecksQuality Checks

Mitigation Points FS SystemsHACCP FS ChecksQuality Checks

2nd & 3rd

PartyVerification

Monitoring &Verification

Monitoring &Verification

Monitoring &Verification

9

RISK

“Multiple Barriers Approach to Food Safety”

Requirements for Suppliers

2

MONITORING: Regular product monitoring to ensure compliance with:

• Safety expectations

•Quality specifications

• Regulatory compliance

HIGH FOCUS on high risk products and/or suppliers, facilities, or regions with a history of risks

3

DATA on: Food Safety & Regulatory Risks

• Focus of Monitoring and Verification activities

Suppliers

SUPPLIER IMPROVEMENT:Our commitment to Food Safety & Quality improvement uses data gathered from monitoring and verification program to score our suppliers and help them improve

SET CLEAR EXPECTATIONS:

•Supplier Approval- Facility and Product

• Risk Assessment

• Quality Management Systems

•Safety & Quality Controls for ingredients

•HACCP

•Allergen Controls

•Product Specifications

•Label Approval

•Packaging Specifications

1

Distribution Centers

Best Practices in Distribution:

• Job specific food safety training for all employees who handle food products

• Specific Key Performance Indicators for every stage (Receipt, Storage, Load & Delivery)

• Ensuring Cold Chain Management throughout

• At least 2 HACCP certified employees in every Distribution Center

GOAL: To create a food safety culture

Additional Opportunities?

• Involvement with Industry and Academia in the identification of emerging risks and mitigation steps- Be among the FIRST to identify issues

• Involvement in the development new standards and regulations

“ The best way to predict your future is to create it”- Abraham Lincoln

• Continuous Vigilance and Improvement

What operators should do about food safety

• Consider Food Safety and Quality as a Key Business

Decision

• Take Farm to Fork Approach to Food Safety

• Partner with Suppliers with Best Food Safety Programs

• Focus on Food Safety Risks in YOUR operations

• Commit to Food Safety Training Managers and Staff

BUSINESS CASE: Properly Leveraged food safety can offer more than Risk Management, Brand Protection, and Regulatory Compliance, it can also offer Savings, Superior Product and Customer Service

Questions/ Discussion