gale prince presentation

Food Safety Food Safety in the 21in the 21stst CenturyCentury

National Restaurant AssociationNational Restaurant AssociationDoubletree HotelDoubletree Hotel

Atlanta, GAAtlanta, GAOctober 23, 2008October 23, 2008

Supply-Chain Hurdles: Supply-Chain Hurdles: Meat and PoultryMeat and Poultry

Gale [email protected]

Consumer Expectation

Safe Dining Experience

Under Magnifying GlassUnder Magnifying Glass

What is on the consumer’s mind?

Consumer Research

Consumer Research

Source: FMI Trends 2008

Top Food Stories 2007Rankings

1) Pet Food Recalls2) 21 Million pound

Ground Beef Recall3) Peanut Butter Recall4) Nutrition Labeling

NYC5) FDA restrictions on

importing farm raised fish from China

6) Nutrient fortified sodas, juice, teas and flavored waters

7) Country of Origin Labeling

Source: Hunter Public Relations Year End 2007

Congressional HearingsCongressional Hearings

Recent Food Safety Recent Food Safety ProblemsProblems

2006 Produce Safety was the top news story2006 Produce Safety was the top news story SpinachSpinach Carrot JuiceCarrot Juice

2007 Product safety was the top news stories2007 Product safety was the top news stories Peanut ButterPeanut Butter Pet FoodPet Food Canned ChiliCanned Chili

20082008 Ground BeefGround Beef Tomatoes and PeppersTomatoes and Peppers

Product Recalls Are Becoming Product Recalls Are Becoming

More More MassiveMassive 25 million pounds 25 million pounds 22 million pounds 22 million pounds 1.8 million pounds1.8 million pounds 143 million pounds143 million pounds Over a year’s production of peanut Over a year’s production of peanut

butterbutter All production codes of chili saucesAll production codes of chili sauces Multiple brands by multiple mft’s of pet Multiple brands by multiple mft’s of pet

foodfood Over 600 different food products Over 600 different food products

recalled in Europerecalled in Europe all related to one adulterated ingredient all related to one adulterated ingredient

30 Millions of toys recalled 30 Millions of toys recalled

Product Recalls Are Product Recalls Are CostlyCostly

Preliminary recall costs reported by Preliminary recall costs reported by firms of recent recalls:firms of recent recalls: $56,000,000$56,000,000 $35,000,000$35,000,000 $60,000,000$60,000,000 $30,000,000$30,000,000 $37,000,000$37,000,000 $103,000,000$103,000,000 Some firms ceased businessSome firms ceased business

These costs do not include litigation These costs do not include litigation costscosts

Nor does it include the cost in lost salesNor does it include the cost in lost sales

Legal ImpactLegal Impact

$15.6 Million in one case Jack in the Box$15.6 Million in one case Jack in the Box $12.0 Million Odwalla apple juice$12.0 Million Odwalla apple juice $4.6 Million for eleven children and E. coli$4.6 Million for eleven children and E. coli $6.25 Million for hepatitis A Green Onions$6.25 Million for hepatitis A Green Onions Food Borne Illness Pending Lawsuits:Food Borne Illness Pending Lawsuits: Pot Pot

Pies, Spinach, Peanut Butter, Pizza, Canned Pies, Spinach, Peanut Butter, Pizza, Canned Chili, Ground Beef, Tomatoes, Peppers, Chili, Ground Beef, Tomatoes, Peppers, Lettuce, restaurants, supermarkets, etcLettuce, restaurants, supermarkets, etc

20 Year Trends in 20 Year Trends in Product Recalls Product Recalls

0

50

100

150

200

250

300

350

400

450

87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07

Do Recalls Always Happen Late Do Recalls Always Happen Late Friday Afternoon?Friday Afternoon?

Consumer Consumer ReactionReaction

ToToProduct RecallsProduct Recalls

Pet Food Recall

Triggered questions on source of ingredients in pet food, but…

Consumer Reaction to Consumer Reaction to RecallsRecalls

August 2007 Gallup PollAugust 2007 Gallup Poll Over 70% of consumers reported to Over 70% of consumers reported to

having been impacted by recent food having been impacted by recent food recallsrecalls

62% say they have avoided buying 62% say they have avoided buying certain brands or types of foods certain brands or types of foods

40% reported to have destroyed or 40% reported to have destroyed or returned recalled productsreturned recalled products

25% worried by impact on their health25% worried by impact on their health

Gallup Poll taken prior to Chili Sauce Recall

Consumer Reaction to Consumer Reaction to Recalls Recalls

Harris Interactive Research-April 2007Harris Interactive Research-April 2007 79% aware of food recalls for past three 79% aware of food recalls for past three

yearsyears 29% felt recalls were “serious concern”29% felt recalls were “serious concern” 55% would switch brands temporarily55% would switch brands temporarily 15% said they would never purchase the 15% said they would never purchase the

recalled productrecalled product 21% avoid purchasing any brand made by 21% avoid purchasing any brand made by

the manufacturer of the recalled product the manufacturer of the recalled product


Impact of major food safety issues Impact of major food safety issues on consumer purchasing decisionson consumer purchasing decisions Consumer reported they would not Consumer reported they would not

purchase the recall product in the purchase the recall product in the future…future…

2005 - 6%2005 - 6% 2006 - 38%2006 - 38% 2008 - 15%2008 - 15%

FMI Trends 2008


Harris Interactive Research-April 2007Harris Interactive Research-April 2007 News media 24 hour formatNews media 24 hour format

Story Repeated every 15 minutes Story Repeated every 15 minutes Proliferation of blogsProliferation of blogs

Consumers have access to more information Consumers have access to more information about a brand’s not –so– shining momentsabout a brand’s not –so– shining moments

Once on the internet your story is there foreverOnce on the internet your story is there forever Internet reinvents recalls months and Internet reinvents recalls months and

years lateryears later

Consumer Satisfaction

Blogs Consumer

Generated Media CGM

Recall Challenges AheadRecall Challenges Ahead

I do not expect recalls to I do not expect recalls to decreasedecrease

Can expect more massive recalls Can expect more massive recalls Foodborne disease investigative Foodborne disease investigative

skills keep improvingskills keep improving Media found food safety Media found food safety

information sellsinformation sells Consumers becoming more Consumers becoming more

sensitivesensitive

Why the increase Why the increase in food safety in food safety concerns and concerns and

recalls?recalls?

Why the ChangeWhy the Change

Concentration of food productionConcentration of food production Increased batch sizeIncreased batch size Product changesProduct changes Changes in food distributionChanges in food distribution Consumer changesConsumer changes Medical servicesMedical services New scienceNew science EpidemiologyEpidemiology LawyersLawyers

FOOD NET SITESFOOD NET SITES

Represents about 15% of US population

CDC Food Net TrendsCDC Food Net Trends1996 - 20071996 - 2007

Updated March 2008

Center of Disease ControlCenter of Disease ControlPulse NetPulse Net

Electronic Communications

CDC Outbreak Response CDC Outbreak Response and Surveillance Team and Surveillance Team

(ORST)(ORST)

What does this tell us?What does this tell us?

The foodborne disease detectives The foodborne disease detectives have become very good!have become very good!

The science and electronic The science and electronic capabilities of epidemiology will capabilities of epidemiology will continue to grow rapidlycontinue to grow rapidly

Electronic communications links Electronic communications links all of this together with instant all of this together with instant messaging.messaging.

What does this tell us?What does this tell us?

Now “Now “LITTLE PROBLEMS”LITTLE PROBLEMS” in the past in the past can now become major events!can now become major events!

Failures of basic food safety elements Failures of basic food safety elements can get your facility into the spotlight.can get your facility into the spotlight.

What do customer complaints really What do customer complaints really say?say?

Do not take unusual events lightly!Do not take unusual events lightly! PREVENTION IS THE KEY TO FOOD PREVENTION IS THE KEY TO FOOD

SAFETYSAFETY

Preventing Preventing Food Safety ProblemsFood Safety Problems

Protecting Your Guests Protecting Your Guests

And TheAnd The

Bottom-lineBottom-line

Preventing Food Safety Preventing Food Safety ProblemsProblems

Starts with knowing your product and Starts with knowing your product and processprocess

Vulnerability of your product to food Vulnerability of your product to food safety issues safety issues

The microbiological risks of your product The microbiological risks of your product Where are the Critical Control Points Where are the Critical Control Points Potential impact of post preparation Potential impact of post preparation

handlinghandling– The kitchen environmentThe kitchen environment– The impact of employee practicesThe impact of employee practices


Historical issues Historical issues StaphylococcusStaphylococcus SalmonellaSalmonella E. coli O157:H7E. coli O157:H7 NorovirusNorovirus Chemical contaminationChemical contamination


Common Sources Employees Employee practices Temperature Control

Cooling Cooking

Cross Contamination


Know your supply source Ask about the suppliers food safety

controls Expect there maybe contamination

on raw unprocessed products Design your food safety programs to

isolate and prevent cross contamination Temperature control

Cooling Cooking

Developing aDeveloping aFood SafetyFood Safety

CultureCultureInIn

Your KitchenYour Kitchen

Culture

Management must demonstrate the culture by Setting the example Provide and maintain your facility to

promote good food safety practices Provide employee training and re-

enforcement Monitor performance Don’t miss a teachable moment! Being proactive and provide leadership


Employee TrainingEmployee Training Follow up…Follow up…

Facility InspectionsFacility Inspections SelfSelf Third partyThird party

Inspections can serve as a training toolInspections can serve as a training tool


Regulatory inspectionsRegulatory inspections Regulatory inspection reportsRegulatory inspection reports

Have you addressed items on the reportsHave you addressed items on the reports Regulatory inspection is not the tell allRegulatory inspection is not the tell all You need to go beyond You need to go beyond

You cannot delegate your responsibility to You cannot delegate your responsibility to the HDthe HD

It is YOUR facility and YOU are It is YOUR facility and YOU are responsible for FOOD SAFETY!!!responsible for FOOD SAFETY!!!


Two hot topics for 2009 Product Recalls

Do you monitor? WWW.Recall.Gov

Are you responsive? Traceability

How well can you trace your supply chain? How quick can you identify the source of an

item? Practice


To do1.

2.

3.

October 23, 2008

Today you have an opportunity…

ResponsibilitiesResponsibilities

Our ResponsibilitiesOur Responsibilities MoralMoral

To do what is right for your To do what is right for your guests guests

LegalLegal To meet regulatory To meet regulatory

requirementsrequirements

Both as a Corporation and Both as a Corporation and You PersonallyYou Personally

ComplacencyComplacencyIs a self-satisfaction Is a self-satisfaction

especially when accompanied especially when accompanied by unawareness of actual by unawareness of actual dangers or deficienciesdangers or deficiencies

Merriam-Webster Dictionary

ComplacencyComplacency

““We have been in business for 67 We have been in business for 67 years and we have never had a years and we have never had a problem.” problem.”

““We have always done it like that We have always done it like that and it has never been a problem.”and it has never been a problem.”

““The inspector didn’t say anything The inspector didn’t say anything about that being a problem”about that being a problem”


What about your operation?What about your operation? Have you as a manager become Have you as a manager become

complacent?complacent? Are you taking things for granted?Are you taking things for granted? Are you accepting less than what Are you accepting less than what

you should?you should?


YOU Cannot Accept A YOU Cannot Accept A Complacent Attitude WithComplacent Attitude With

FOOD SAFETYFOOD SAFETY

Food Safety is a Food Safety is a Journey Journey

Not a Not a Destination!Destination!

You must continue to strive You must continue to strive for improvements each and for improvements each and

every day every day

in protecting the consumer in protecting the consumer

Meeting Guest Expectations

Thank you for your attention

[email protected]

gale prince presentation

Health & Medicine