QA REFERENCE GUIDE - mars-metcdn-com.global.ssl.fastly.net...Grocery – Food (Edible) able to be stored at Ambient Temperatures e.g. canned, dry Other aspects of this document provide:-

QA REFERENCE MANUAL – FOOD V1.0

METCASH TRADING Ltd | February 3, 2016 1 of 49

QA REFERENCE GUIDE

FOR

SUPPLIERS of

METCASH OWNED BRANDS

(Private Labels – Food Products)

February 2016



1. SCOPE OF THE QA REFERENCE GUIDE .................................................................................................. 4

2. METCASH BRANDS .............................................................................................................................. 5

2.1 ABOUT METCASH’S BRANDS ............................................................................................................. 5 2.2 INTELLECTUAL PROPERTY RIGHTS ..................................................................................................... 5 2.3 USE OF CONTROL BRANDS ................................................................................................................ 6 2.4 THIRD PARTY PACKAGING SUPPLIERS .............................................................................................. 6 2.5 DISPOSITION OF UNUSED / REDUNDANT PACKAGING .................................................................... 6

3. WARRANTY ......................................................................................................................................... 7

4. CONSUMER & CUSTOMER COMPLAINTS ............................................................................................. 8

5. RECALL OR WITHDRAWAL OF PRODUCTS ............................................................................................ 9

6. SHELF LIFE MANAGEMENT POLICY & SERVICE DELIVERY .................................................................... 10

6.1 MINIMUM RL & DL POLICY – DATE CODED LINES .......................................................................... 10 6.2 CHANGES TO SHELF LIFE DATA ........................................................................................................ 10 6.3 STOCK REJECTION / RECEIVAL ......................................................................................................... 10 6.4. BELOW “RL” EXCEPTIONS ................................................................................................................ 11 6.5 MINIMUM SUPPLIER DELIVERY STANDARDS ................................................................................. 11

6.5.1 FOOD SAFETY & GENERAL GROCERY QUALITY REQUIREMENTS ............................................... 11 6.5.2 GENERAL FOOD & GROCERY DELIVERY REQUIREMENTS ........................................................... 11 6.5.3 REFRIGERATED & FROZEN FOOD TEMPERATURE REQUIREMENTS ........................................... 12 6.5.4 BULK PRODUCE SPECIFIC – OUTER CARTON LABELLING ............................................................ 12 6.5.5 REJECTION OF FRESH PRODUCE AT OR AFTER RECEIPT ............................................................. 13

7. SUPPLIER ASSESSMENT & REQUIREMENTS ......................................................................................... 14

7.1 OVERVIEW OF SUPPLIER ENGAGEMENT PROCESS ......................................................................... 15 7.2 FOOD SAFETY PROGRAMS .............................................................................................................. 16 7.3 APPROVED SUPPLIER PROGRAMS .................................................................................................. 16 7.4 FOOD PRODUCT HACCP REQUIREMENTS ....................................................................................... 16 7.5 INFESTATION & CONTAMINATION ................................................................................................. 17 7.6 ALLERGEN MANAGEMENT .............................................................................................................. 17

8. PRODUCT REQUIREMENTS ................................................................................................................. 18

8.1 PRODUCT SPECIFICATIONS .............................................................................................................. 18 8.2 PRODUCT LABELLING ....................................................................................................................... 19

8.2.1 LIST OF LABELLING COMPONENTS FOR METCASH BRANDS ...................................................... 21 8.2.2 NAME OR DESCRIPTION OF THE FOOD ....................................................................................... 21 8.2.3 BRAND NAME .............................................................................................................................. 22 8.2.4 NET WEIGHT OR VOLUME (QUANTITY) ...................................................................................... 22 8.2.5 DATE MARKING / BATCH OR LOT CODE ..................................................................................... 23 8.2.6 INGREDIENTS LIST ....................................................................................................................... 24 8.2.7 PERCENTAGE LABELLING ............................................................................................................. 25 8.2.8 FOOD ADDITIVES ......................................................................................................................... 25 8.2.9 NUTRITION LABELLING ................................................................................................................ 25

8.2.9A) NUTRITIONAL CLAIMS ....................................................................................................................... 26 8.2.10 INFORMATION FOR ALLERGY SUFFERERS .............................................................................. 27 8.2.11 OTHER WARNING STATEMENTS ............................................................................................. 27 8.2.12 COUNTRY OF ORIGIN .............................................................................................................. 28 8.2.13 CONTACT DETAILS - FOOD RECALL INFORMATION ................................................................ 29 8.2.14 BARCODING & EAN NUMBERS & GS1 VERIFICATION ............................................................ 29



8.2.15 LEGIBILITY REQUIREMENTS .................................................................................................... 30 8.2.16 USE OF PRODUCT IMAGES & GRAPHICS - (SEE ALSO SECTION 8.2.2) .................................... 30 8.2.17 STORAGE AND DIRECTIONS FOR USE - (SEE ALSO SECTION 6) ............................................... 30 8.2.18 LOGO REQUIREMENTS ............................................................................................................ 31

8.3 OUTER CARTON LABELLING ............................................................................................................ 34 8.3.1 GENERAL OUTER PACKAGE REQUIREMENTS .............................................................................. 34 8.3.2 COMPANY & PRODUCT DETAILS ............................................................................................... 34 8.3.3 TEMPERATURE MARKING – STORAGE INSTRUCTIONS .............................................................. 35 8.3.4 REQUIREMENTS FOR LABELLING OF METCASH BRANDED FROZEN THAW-BACK RANGES ....... 35

8.3.4.1 THAW BACK OUTER CARTON LABELLING SPECIFICATION (IGA FRESH PRODUCT RANGES) ............. 36 8.3.4.2 HANDLING INSTRUCTIONS (FROZEN / THAW BACK) (IGA FRESH PRODUCT RANGES) ....................... 36

8.3.5 FRESH PRODUCE SPECIFIC – OUTER CARTON LABELLING (IGA FRESH PRODUCT RANGES) ....... 37 8.3.6 PROVISION OF OUTER CARTON LABEL / ARTWORK EXAMPLE (IGA FRESH PRODUCT RANGES)

37 8.4 ARTWORK, BLOCKS & PACKAGING ................................................................................................. 38

9. METCASH TRADE MEASUREMENT REQUIREMENTS FOR PACKERS ..................................................... 39

9.1 UNDERWEIGHT TOLERANCES .......................................................................................................... 39 9.2 MINIMUM QUANTITY SYSTEM ........................................................................................................ 39 9.3 AVERAGE QUANTITY SYSTEM (AQS) “E” MARK ................................................................................ 40 9.4 RANDOM WEIGHT PACKAGES ......................................................................................................... 40 9.5 OTHER TRADE MEASUREMENT REQUIREMENTS (SEE ALSO SECTION 8.2 – PRODUCT LABELLING) ........ 40

10. PRODUCT ASSESSMENT & MONITORING ....................................................................................... 41

10.1 SUPPLIER MINIMUM PRODUCT TESTING ....................................................................................... 41 10.2 RETENTION SAMPLES ...................................................................................................................... 41 10.3 SHELF LIFE VALIDATIONS ................................................................................................................. 41 10.4 METCASH MINIMUM PRODUCT TESTING ....................................................................................... 41 10.5 HOW DO I KNOW IF MY PRODUCTS ARE CONSIDERED “HIGH RISK” BY METCASH? ......................................... 42 10.6 METCASH ‘HIGH RISK FOOD PRODUCT’ AUDITS ............................................................................. 43 10.7 MICROBIAL MONITORING ............................................................................................................... 43

10.7a MAXIMUM Microbiological Standards and Permitted Chemical Additives for Foods ............. 44 10.8 CHEMICAL MONITORING ................................................................................................................. 44

10.8a Permitted Chemical Additive Criteria for Small Goods Meats & Value Added Raw Meat

Products 44 10.8b Contaminants and Residues in Foods - Maximum Residue Limits (MRLs) ............................... 44

10.9 FRESH PRODUCE – QA MONITORING .............................................................................................. 46

11.0 OTHER PRODUCT CLAIMS ............................................................................................................... 47

11.1 ORGANIC PRODUCT CLAIMS ........................................................................................................... 47 11.2 FREE RANGE / BARN LAID EGGS CLAIMS .......................................................................................... 47

12. GENETIC MODIFICATION & GENETIC ENGINEERING ....................................................................... 48



Scope

1. SCOPE OF THE QA REFERENCE GUIDE This document is intended to be read in conjunction with:-

1. The Metcash Trading Terms Agreement and 2. The Metcash Owned Brands Supply Agreement. 3. Any relevant State or National regulations 4. FSANZ Food Standards Code 5. National Measurement Institute Trade Measurement Legislation (NMI) 6. ACCC and Australian Consumer Law 7. www.metcash.com

This Reference Guide outlines the minimum requirements for the following product categories as they

apply to Metcash Private Label food products and fresh foods in general:-

Perishable Foods required to be stored at Chilled temperatures – +1oC to +5oC

Frozen Foods stored at Freezer temperatures -15oC to -18oC

Confectionery Products stored under air conditioned temperatures +10oC to +20oC

Fresh Foods – fruit and vegetable produce items

Grocery – Food (Edible) able to be stored at Ambient Temperatures e.g. canned, dry

Other aspects of this document provide:-

An overview of some specific Metcash processes and policies.

Some basic Metcash style preferences for packaging.

Metcash’s guide to various aspects relating to sustainability, environmental, social

responsibility expectations



Brands

2. METCASH BRANDS

2.1 ABOUT METCASH’S BRANDS

Metcash owns (or has the exclusive right to use in Australia) a large number of brands for use on Metcash

Private Label products (referred to as “Control Brands”). The list of Control Brands may change over time,

particularly where Metcash develops new brands. Examples of current Control Brands include:

IGA Signature

IGA Bakers Oven

Black & Gold

SNAK

Canning Creek

Royal Harvest

Premium Brands

IGA Value Added Meats

IGA Fresh Meats

IGA Fresh

2.2 INTELLECTUAL PROPERTY RIGHTS

Each Control Brand may consist of a number of elements in which Metcash owns the intellectual property

rights, such as a name, a slogan or a logo. Those intellectual property rights may include copyright, registered

or unregistered trademarks or other forms of intellectual property protection.

All reputation, goodwill, rights, title and interest in those IP rights remains with Metcash at all times.

Suppliers must not:

- represent to any third party that they have any rights in any of Metcash’s intellectual property;

- bring into disrepute or engage in any passing off or misleading or deceptive conduct in relation to

Control Brands; or

- reproduce the Control Brand in a manner different from that specified in Metcash’s instructions.

Suppliers are asked to notify Metcash of any unlawful or unauthorised use of any Control Brand (or any other

Metcash intellectual property) of which they become aware.



Brands

2.3 USE OF CONTROL BRANDS

Under the terms of the Metcash Owned Brands Supply Agreement, Metcash grants to Suppliers a licence to

use Metcash’s IP rights solely for the purpose of producing goods in accordance with:

- the Supplier’s agreement with Metcash; and

- any guidelines or policies that Metcash provides to the Supplier.

Suppliers must therefore only use Control Brands in accordance with the instructions given by Metcash from

time to time, including those set out in this Manual.

This includes using logos in the form specified by Metcash and using the “R” or “TM” symbols only in

accordance with Metcash’s instructions.

Metcash may also require that Control Brands are used in association with products that are identified as

having been packed for a Metcash subsidiary, such as Mirren (Australia).

2.4 THIRD PARTY PACKAGING SUPPLIERS

Metcash acknowledges that Suppliers may wish to engage a third party (“Packaging Supplier”) to print or

manufacture packaging for the products that the Supplier intends to supply to Metcash.

Where this is the case, the Supplier must:

- notify Metcash of the final packaging design and artwork (in the form being produced by the

Packaging Supplier) and not make any change without notifying Metcash in advance;

- notify Metcash of the identity of the Packaging Supplier (and not change the identity of the Packaging

Supplier without notifying Metcash in advance);

- notify the Packaging Supplier of Metcash’s requirements and instructions in relation to the use of

Control Brands, including those set out in this Manual; and

- not allow any other third party to use Metcash’s intellectual property rights (without Metcash’s

approval).

The Supplier remains responsible for ensuring that the Packaging Supplier also:

- does not allow any other third party to use Metcash’s intellectual property rights without notifying

Metcash;

- complies with all of Metcash’s requirements and instructions in relation to the use of Control Brands

For the avoidance of doubt, Metcash’s approval of the packaging design and artwork is not a substitute for

the Supplier’s own compliance with all applicable Acts, Regulations, Ordinances and industry codes, as

further set out in the Supplier’s trading terms with Metcash.

2.5 DISPOSITION OF UNUSED / REDUNDANT PACKAGING

All quantities of old or redundant packaging shall be accounted for by the supplier and reported to the

relevant National Merchandise Manager, who will advise of the preferred method of disposition.

Disposition instructions may vary according to the circumstances of each situation.

All advice / notices and verification of actions shall be in writing (or via email).



Warranty

3. WARRANTY See also Sections 10 & 13 of The Metcash Owned Brands Supply Agreement v 1.0 June 2013.

If any Products are deemed defective, then the Supplier must either:-

Replace the defective Products free of charge; or

Credit Metcash and its customers accordingly with the invoiced cost of the defective Products

The Supplier must reimburse Metcash for any costs of returning defective products



Consumer & Customer Complaints

4. CONSUMER & CUSTOMER COMPLAINTS At any time a Consumer or Retailer complaint for a Metcash Branded item is received, the following processes will be followed:- Metcash Consumer Support will:-

Assess if the Consumer Complaint is a severity one, severity two or severity three Complaint as determined by Metcash.

Determine the probable cause of the complaint based on the information provided (e.g. warehouse / cold chain / supplier / product).

Log complaint and immediately notify the Supplier via email

Refund consumers with IGA gift cards where the consumer complaint is a severity three level complaint. Metcash may raise a voucher claim against the supplier for re-occurring non- compliant products.

Where the Supplier or Product is deemed to be at fault, the Supplier will:- a) Contact the consumer within 48hrs to start the process of investigating and resolving the complaint; once

the complaint is finalised with the consumer, the supplier must provide Metcash with written evidence of the risk analysis, risk assessment, corrective action and compensation that was agreed to with the consumer.

b) Any serious complaint (as per ACCC definitions) or Severity One or Severity Two consumer complaint

received though a Government instrumentality is considered a ‘serious’ matter and Metcash must be involved in direct and immediate contact between the Supplier, Metcash and the Government Authority. Metcash must receive the appropriate report, findings and problem solving documentation within 48 hours.

c) The Supplier will reimburse any agreed cost or replacement value that was reasonably incurred by Metcash arising out of a consumer complaint, product withdrawal or product recall (refer to Metcash Recall/Withdrawal policy)

d) The level of complaints will be monitored and summarised monthly by Metcash and may lead to termination of the contract. The table below provides a general summary of actions, but the actions may vary according to specific

circumstances:-

Complaint Level

Gift Card Issued to Consumer

Supplier Notified

NCR Issued to Supplier

Supplier to Contact

Consumer

ACCC Mandatory Reporting – Medical

Attention Sought

Withdraw / Recall Advice

Level 3 Varies based on frequency or Severity

& Risk Level 2

Level 1



Recall or Withdrawal of Products

5. RECALL OR WITHDRAWAL OF PRODUCTS Metcash follows the FSANZ Food Industry Recall Protocol or instructions as issued by the ACCC or State

Regulatory Authorities for Food product recalls and withdrawals.

In the event of a dispute between Metcash and their supplier, Metcash reserves the right to make the

final decision on proposed actions concerning its Branded products.

a) Metcash may withdraw products from sale, and if necessary, initiate recalls of such products where Metcash deems it necessary for safety or quality reasons.

b) The decision to withdraw private label products rests with the General Manager of the product category in conjunction with the Metcash Risk department.

c) The Supplier shall be notified and advised of the details and the reason for the withdrawal, and Metcash expects full cooperation from the Supplier in order to protect our Brand.

d) The Supplier must act according to the current Metcash Recall / Withdrawal policy & processes at all times and shall endeavour to carry out all notifications in a timely manner.

e) Metcash will seek to recover from the Supplier, all expenditures which have been made in relation to product recovery activities. This may include claims, demands, penalties, fines or other liabilities.

f) Without limiting the generality of sub clause (c) above, the Supplier agrees to reimburse Metcash for all expenditure reasonably made by them arising out of, or in connection with:

Any withdrawal from sale and/or recall of any of the Products from stores and/or customers; or

Gathering of any of the Products withdrawn from sale and/or recalled; or

The return or disposal of such Products; or

Consultation and laboratory fees; and

Any other related costs which are not due to the sole fault of Metcash.

Refer to www.metcash.com for Product Recalls & Withdrawals policy and process

http://www.metcash.com/



Shelf Life Management & Service Delivery

6. SHELF LIFE MANAGEMENT POLICY & SERVICE DELIVERY See also Sections 7 & 8 of The Metcash Owned Brands Supply Agreement v 1.0 June 2013 & HA11-13NAT

National Buyers are responsible for ensuring item information is received in writing from an authorised supplier source, and for reviewing the accuracy of the date code data with the supplier & Group Food Safety Dept. as required, to comply with Metcash standards

6.1 MINIMUM RL & DL POLICY – DATE CODED LINES

Receiving Limit policy is set in agreement with Group Food Safety Dept. & the General Manager Sales & Merchandise. Fresh RL policy is set in agreement with the General Manager – Fresh.

Currently, receiving limit policy is 4-tiered. Goods with:

93 days MSL & less, MF&G require at least 70% RL

over 93 days and up to 365 days shelf life, MF&G require at least 60% RL

over 365 days and up to 730 days shelf life MF&G require at least 50% RL

over 730 days MF&G require at least 365 days RL

Exceptions to RL Policy are only provided under agreement for imported lines lead times.

DEFINITIONS:

Maximum Shelf Life (MSL): Shelf life of goods when packed by the manufacturer.

Receiving Limit (RL): Minimum remaining shelf life of goods, or maximum age after packing, when received at MF&G warehouses, on a national basis, under normal supply conditions. RL may also be described as Minimum Life on Receipt (MLOR).

6.2 CHANGES TO SHELF LIFE DATA

1. Suppliers must submit written evidence to verify the reason for change. Changes to an existing product’s shelf life data can only be authorised by Group Food Safety Department & National Buyers. Valid reasons for change may be due to changes to product specification, logistics lead times & seasonality etc.

1. Temporary changes to shelf life data may occur for periods of up to 6 months as requested by the Suppliers to National Buyers. For temporary changes, a date to change back to the original data must be provided.

2. Single deliveries or short term supply issues up to 2 weeks do not constitute a temporary change to shelf life data. These may be managed by written communication.

6.3 STOCK REJECTION / RECEIVAL

During normal receiving, where no prior advice is given, Authorised Receivers advise Warehouse Management of all goods arriving below the Receiving Limit. This is urgently communicated to the Stock Controller for corrective action, prior to the vehicle leaving the premises.



Shelf Life Management & Service Delivery 6.4. BELOW “RL” EXCEPTIONS

PLEASE NOTE: Stock received this way must be by exception, and not a common practice. If stock arrives with less shelf life than the specified “Receiving Limit”, then it is normally rejected.

Stock may be received outside the minimum “Receiving Limits” ONLY under a prior sign-off with Suppliers &

National Buyers. For this to occur:

The Supplier is responsible for contacting the National Buyer to forewarn of stock issues or special deals

that may result in goods being delivered that are below their specific “Receiving Limit”. The supplier must

confirm this in writing.

6.5 MINIMUM SUPPLIER DELIVERY STANDARDS

Cold Chain Compliance

If the product is to be stored under refrigeration then the product storage statement should comply with the

current Australian Cold Chain Guidelines (See AFGC) and Food Code requirements.

Deliveries into Metcash Food & Grocery Branches will be subject to the following:-

6.5.1 FOOD SAFETY & GENERAL GROCERY QUALITY REQUIREMENTS

The following standards apply to ALL deliveries of stock (where applicable):-

No evidence of pest activity or foreign objects / matter / unacceptable or foreign odours.

No evidence of physical damage to goods.

No underweight products (applies to manufacturers / packers only).

Second hand packaging is prohibited. All stock must be delivered in original containers.

Compliance to agreed Metcash Food & Grocery product & artwork specifications.

6.5.2 GENERAL FOOD & GROCERY DELIVERY REQUIREMENTS

All refrigeration units on food transport vehicles are kept in operation whilst in transit.

Some branches only accept stock delivered on a rear – loading truck. Please confirm prior to delivery.

Delivery drivers must report to Authorised Branch Staff for unloading instructions.

Drivers must leave refrigeration units running, with doors closed, until our receiving staff are available.

All deliveries are to be accompanied with an invoice. All documents will be marked as “Subject To Check”.

Product codes must be correctly completed for each product on all invoices.

Pallets are not to exceed 1.8m in height and 1200kg (including pallet).

Stock contained on the pallet must be within the confines of the pallet.

Palletised goods must contain only one product type, of the same lot and date code (where applicable).

Bins of produce (fruit & vegetables) must be delivered with a lid.

Please be aware that any non-conformance to the above standards may result in IMMEDIATE rejection of the delivery. If a delivery is rejected, Metcash generally expects that the order is replaced on the same day.



Shelf Life Management & Service Delivery 6.5.3 REFRIGERATED & FROZEN FOOD TEMPERATURE REQUIREMENTS

Our staff will also check product temperature using a calibrated thermometer to ensure goods are within the standards set below, before accepting or rejecting perishable foods.

Temperature Criteria Products

At or between 1o – 5oC Fresh mushrooms, all fresh berry variants (strawberries, blackberries etc.)

Packaged / bulk salads, sprouts, bean shoots & related high risk fresh products

Processed / cut / trimmed fresh fruit & vegetable lines

All other perishable lines as indicated on the packaging

Surface Temp Below 7oC (Internal Product Temperature between -1 o to 5 o C)

Fresh meat carcasses & whole unpackaged primals

Between 2o – 15oC

Eggs

All fresh fruit lines

All vegetable & herb lines

Except :-

Berry lines, watermelon, dates, pineapple

Whole garlic, ginger, pumpkin, bulb onions, brushed & sweet potatoes

Between 11o – 17oC (Pulp Temp)

Fresh bananas, mangoes & paw-paw.

At or below - 15oC (Surface temperature & show no evidence of thawing)

All frozen lines (or as indicated on the packaging)

Metcash recognizes that there may be some customer specific standards for receiving temperatures in place for specific items (e.g. Subway). In these cases, the customer specific requirements will generally take precedence over the general standards notes above.

6.5.4 BULK PRODUCE SPECIFIC – OUTER CARTON LABELLING

All cartons or wholesale sale units of produce received MUST be labeled with the following details for traceability:-

Grower’s &/or Packer’s name & address, as well as Supplier name (if different)

Product Description, Count, Size & Grade

Country Of Origin

Net pack weight (where applicable)

Packed On Date or Best Before Date or Use By date (as applicable)

DC delivery date (the date that the produce is expected to arrive into the DC)



Shelf Life Management & Service Delivery 6.5.5 REJECTION OF FRESH PRODUCE AT OR AFTER RECEIPT

Fresh produce delivered to Metcash warehouses must be suitable for sale. Produce items are regularly checked on receipt, however not all defects are immediately obvious when items are first delivered. Metcash reserves the right to reject Fresh Produce on any of the following criteria, based on the relevant Metcash Produce Specification, within the time frames nominated below:-

Description of Issue Time After Receipt Comment 1 Infestation / Contamination Any time Rejection on Buyer’s discretion 2 Temperature At Receipt only 3 Damaged Stock Up to 48 hours Rejection on Buyer’s discretion 4 Aged / Breakdown / Smell Up to 48 hours Rejection on Buyer’s discretion 5 Ripeness / Conditioning Up to 48 hours Rejection on Buyer’s discretion 6 Appearance / Shape / Colour Up to 48 hours Rejection on Buyer’s discretion 7 Size Any time Rejection on Buyer’s discretion 8 Short Date / Aged Stock Up to 48 hours Rejection on Buyer’s discretion 9 Weight Up to 48 hours Rejection on Buyer’s discretion

Suppliers – Please Note: Metcash are aware of the difficulty in providing fresh produce that is infestation – free, as there are no prevention mechanisms that are guaranteed. We must, though, ensure our customer confidence at all times and minimise our business risk. As a result we are committed to our “No Tolerance Policy” with regard to evidence of infestation and contamination. Please be advised that Metcash Food & Grocery will immediately reject any food found to contain any evidence of infestation and contamination including stock that is checked during the packing process for our customers. This may happen well after receipt. We will also recall any stock that we have dispatched on any day from that same batch. This will all

be at the cost of the supplier. Metcash policy is that there is no tolerance regarding this issue.



Supplier

7. SUPPLIER ASSESSMENT & REQUIREMENTS Suppliers will be reviewed and assessed, based on a number of criteria, some of which are listed below:-

Suppliers must hold certification / qualifications as per Metcash Supplier Certification Standard (HA05-02)

HACCP / Food Safety Plan Certification from the manufacturer must be current and the scope of certification must cover the product categories to be made under Metcash label. Other retailer standards / BRC / SQF certification for same category of product will be viewed favourably.

Public Liability Insurance Certificate of Currency

A manufacturer of a product category that has known history of product specific issues, including product complaints then additional emphasis and scrutiny may be applied to potential and existing suppliers. E.g. Manufacturers of high risk foods (See Section 10.5 of this document)

Supplier’s history of compliance / performance may also impact on the selection process.

Where a supplier is unable to comply with the requirements of the Food Safety and Quality set by Metcash, then supply arrangements will not proceed.

The combination of the information as noted above is received, influences the outcome of the risk

assessment. The flow chart below briefly outlines the process:-

Current Supplier?

NEW Supplier?

HACCP & related

Certificates comply with

Metcash Supplier

Certification stds and are

up to date for manufacturer

of products?

Certificates are

relevant to the

product being

manufactured?

Supplier of High

Risk Items to

MFG?

Supplier Evaluation

Assessment to be

completedPreviously

supplied MFG?

Seek further

clarification from

Supplier

Supplier (or suppliers in

similar category) has known

adverse issues relating to

product category?

Potentially HIGH

risk supplier

Potentially Medium

risk Supplier

Likely LOW risk

supplier

Supplier Risk Decision Process

No

No

No

No

No

No

Yes

Yes

Yes

Yes

Yes

Yes

Is the immediate

supplier a broker

or agent?

Ensure agent supplies all

relevant information from the

MANUFACTURER of the

product

Yes

No

Supplier has record of

performance or

compliance issues?

Yes

No

Has a Supplier

Evaluation Assessment

been completed within

the past 2 years?

Yes

No



Supplier

7.1 OVERVIEW OF SUPPLIER ENGAGEMENT PROCESS The following flow chart provides an outline of the processes supplier review, selection and

implementation, for Metcash Branded products.

Metcash BUYER, invites VENDOR to

submit samples

VENDOR submits samples to Buying

Dept for review

BUYER submits

Supplier / Product

to relevant GM

General Manager of

relevant Merchandise

Dept approves supplier/

product

BUYER or GFS issues Supplier Evaluation Assessment / Sustainability Questions to VENDOR for completion and submission, including supporting HACCP certificates & Public &Product Liability Certificates etc.

Supplier Evaluation Assessment Form, Certificates / Sustainability etc

completed by VENDOR - assessed by GFS / Sustainability

Rejected

GFS advise BUYER

VENDOR supplies initial samples and specifications

with supporting information (micro, shelf life, NIP, organic, claim

verification data) submitted to GFS for

review

Preliminary Product Samples and Specifications submitted to GFS and for

initial review as required

GFS determine audit program with vendor

Set audit / site visit date

GFS Conduct Site Visit / Audit and report generated

GFS confirms to BUYER

Vendor’s suitability to supply product.

Satisfactory Unsatisfactory

Satisfactory

Unsatisfactory

BUYER advises GFS -

Existing Vendor?

GFS check - Supplier

Evaluation Assessment is

less than 2 years old & all

certification is current

Accepted

BUYER to issue MOBSA to VENDOR for completion.

MC Conduct

- ABN / GST

- Admin checks

ALL Checks on

supplier are OK?

MC advise

BUYER of

REJECTION

BUYER – Use existing

Proprietary Vendor with

Vendor Code?

NEW Vendor Code

issued by MC for

Private Label Supply

MC Scan

documents to

retain on file

BUYER / MC - Will payment

terms and off remittance terms

remain the same?

Utilise existing Vendor Code

Yes

No

MC advise of Vendor

code allocation to:-

BUYER / GFS / MDG

BUYER to determine way

forward

BUYER - Stop &

review

requirements

Is the VENDOR currently

providing product from the

same ‘category’ with no

known problems or issues?

Yes

No

Yes

No

No

Yes

No

Yes

No

VENDOR returns MOBSA signed

& agreed, to BUYER

No

Yes

GFS / Sustainability Store

on File

- Supplier Evaluation

Assessment

- Public & Product Liability

Insurance (PLI)

- Certificates (Food safety

plans, Organic etc)

MC Dept Store on file

- Trading Terms Agreement

- Metcash Owned Brands

Supplier Agreement

- Other relevant info

VENDOR to rectify any anomalies, notify GFS-

BUYER advised

GFS assess rectification plans – with time frame,

to BUYER

Yes

No

GM = General Manager

GFS = Group Food Safety

MC = Merchandising Commercial

MDG = Master Data Group

MOBSA = Metcash Owned Brands

Supplier Agreement.

Yes

BUYER requests samples

from VENDOR for GFS



Supplier

7.2 FOOD SAFETY PROGRAMS All suppliers of Metcash Branded food products are required to comply with all Federal & State Government

food safety regulatory requirements and have a HACCP (Codex Alimentarius Alinorm) based food safety

program in place, for all applicable processes and products, prior to supply.

The Food Safety Plans must have been audited by an independent 3rd party and all Certification must be current

at all times, and in accordance with the guidelines as set out in the “Metcash Supplier Certification Standards

HA05-02” which principally require:-

The Supplier’s Certificate must show certification according to the category or product type of foods supplied as Metcash brands

The certificate must also certify the specific processing method for the food, i.e. storage, packing, processing & distribution etc.

The supplier is also required to complete the details in the “Supplier Evaluation Assessment HA05-01”

Please refer to www.metcash.com for a copy of the Metcash Supplier Certification Standard

7.3 APPROVED SUPPLIER PROGRAMS a) All suppliers of packaged “Metcash Branded” food products must have an Approved Supplier Program in

place which must cover selection processes for all of their raw material and ingredient suppliers. b) The Supplier’s Approved Supplier Program shall ensure that their suppliers or co-manufacturers also

comply with the “Metcash Supplier Certification Standards HA05-02” guideline. For fresh produce lines the Supplier must demonstrate certification all the way back to the grower.

c) Where the Supplier is a Trader or Broker, the Trader or Broker shall hold certification relevant to their activities and their Approved Supplier Program shall demonstrate that all products supplied to Metcash are purchased from processors / manufacturers who are certified according to the “Metcash Supplier Certification Standards HA05-02”.

7.4 FOOD PRODUCT HACCP REQUIREMENTS All food products, whether local or imported, must when stored and prepared in the conditions described within

the specification for the product, be compliant to:

a) The requirements of the current FSANZ Food Standards Code and all State Food Acts. b) Local or regional Quarantine requirements for fresh produce products; c) Federal or State food & meat regulations for all packaged fresh meat products, both in the state of origin

and the state or territory where the product is to be sold. d) HACCP (Food Safety) systems including risk assessment and management plans which when implemented,

are intended to reduce / eliminate:-

Any source of “physical contamination” such as any foreign physical object or matter. For example - plastic, glass, metal, dirt, grease, and other extraneous material, including contamination by any packaging material used.

And specifically for meat products, any source of “extraneous contamination” which could come into contact with fresh meat such as hair, hide, rind, cartilage, bone, bone fragments, offal, ingesta and the like, unless allowed within the fresh meat specification for that product.

Any source of “chemical contamination” which could come into contact with the product, including cleaning materials, pest control or ingredient chemicals, as well as non-ingredient or undeclared or non-approved food additives / processing aids.

The presence of any undeclared allergenic material.




Supplier

Any microbiological risks associated with the food product category and relevant to the product’s

manufacturing, storage and distribution methods. (See Section 10.7) e) The Supplier / manufacturer must be able to demonstrate the presence of continuous monitoring programs

to ensure ongoing identification of any potential hazards (physical, chemical or microbiological).

f) The Supplier / Manufacturer must have sufficient controls in place to ensure food safety is not compromised when product is stored in the conditions described within the specification

7.5 INFESTATION & CONTAMINATION Metcash have a “No Tolerance Policy” with any food safety risks, which includes any evidence of infestation

and contamination.

Metcash Food & Grocery will:-

Immediately reject food found to contain any evidence of infestation or contamination.

Return stock that shows signs of infestation or contamination at time of packing for our customers – note that this may happen well after receipt.

Metcash will also recall any stock that has been dispatched on any day from that same batch. This recall will

be at the cost of the supplier.

7.6 ALLERGEN MANAGEMENT Suppliers of Metcash Branded products are encouraged to have staff who have been formally trained, to

conduct VITAL (Voluntary Incidental Trace Allergen Labelling) assessments, based on the latest food industry

standard promoted by the Australian Allergen Bureau or equivalent global standard.

Where any allergen free statements or claims are made, then:-

a documented VITAL assessment must have been completed, with a copy of the full and summarised reports to be supplied to Metcash, and

the supplier must be able to provide analytical evidence to support any claim/s made. The VITAL assessment (version 2.0 or later) must have been conducted by suitably trained personnel and be

production site and product specific (as applicable).

Where the VITAL program has been implemented by a supplier, then this component of the Supplier’s Certified

Food Safety Program must be included in the scope of the nominated 3rd party audit.

The 3rd party audit must have been conducted by one of the recognized audit agencies listed in the Metcash

Supplier Certification Standard (HA-05-02).

For more information please go to www.allergenbureau.net/vital/vital-downloads and

http://www.foodstandards.gov.au/consumer/foodallergies/food%20allergen%20portal/Pages/default.aspx

http://www.allergenbureau.net/vital/vital-downloads

http://www.foodstandards.gov.au/consumer/foodallergies/food%20allergen%20portal/Pages/default.aspx



Product Requirements

8. PRODUCT REQUIREMENTS It is the responsibility of the Supplier to ensure all product specifications generated to represent Metcash

Branded products, comply with all aspects of the Australian Food Standards Code, the Trade Practices Act,

National Measurement Institute Trade Measurement Legislation, State Food Legislation, ACCC and Australian

Consumer Law requirements.

NOTE:- The following sections summarise and provide some guidance on the Metcash requirements for

products, but at all times, all regulatory requirements must be met.

8.1 PRODUCT SPECIFICATIONS When a Metcash branded specification has been developed and approved for each Metcash branded product,

the Supplier/Broker shall:-.

a) Provide a copy of these specifications to the Metcash Corporate Brands Department or the Metcash Fresh QA Dept. team using a Metcash approved Specification or Product Information Form. Note: These specifications are confidential between the Supplier and Metcash Trading and must not be reproduced other than to assist your company in the supply and auditing of products supplied to Metcash.

b) Notify Metcash Buyer and QA department whenever the details on an agreed specification require a change to Country of Origin of a product or ingredient which in turn requires a formal product declaration change (as per FSANZ or ACCC requirements). This change must be approved prior to the commencement of supply of this revised product.

c) Not change the supply source or specification of imported products without seeking approval from the relevant Metcash Buyer and QA Department

d) Agree to submit product samples for review and external laboratory analysis in order to verify specific criteria as presented in the product specification.

e) Ensure that each batch of product is supplied in accordance within the agreed specifications.

Specifically for FRESH produce

a) Acknowledge that Metcash Fresh products are subjected to ‘quality assessments’ upon receipt into produce warehouses and that product may be rejected if quality checks identify non- compliance to Fresh produce specifications. These rejections will be promptly communicated to the Supplier.

b) On occasion, where seasonal variations, adverse weather conditions or changing customer requirements dictate an alteration to a product specification, a “Variation to Specification” (VTS), may be agreed between Metcash and the Supplier. This VTS must be documented and retained on file with the relevant parties, and should include the expiry date of the allowed ‘variation’.

c) Fresh Produce has specific delivery requirements as per Section 6.5.3 of this document



Product Requirements 8.2 PRODUCT LABELLING All Metcash branded food and non-food products packed by Suppliers for Metcash require assurance that they

are traceable throughout the supply chain, back to the grower or manufacturer.

The outer package of each retail sale unit and wholesale sale unit shall be labelled in accordance with the

requirements of the:

I. FSANZ Food Standards Code, II. State Fair Trading and Consumer Affairs Regulations and

III. ACCC labelling requirements The label examples below, and following narrative provides some guidance on the requirements for labels

and the style preferences for Metcash Brands.






Product Requirements 8.2.1 LIST OF LABELLING COMPONENTS FOR METCASH BRANDS

Artwork must contain the following information based on FSANZ & Metcash requirements:-

Brand Name

Product Description (FSANZ)

A minimum Net Weight or Volume or Pack number where applicable (FSANZ)

A legible Use-By or Best Before Date, or a relevant Batch Code / Packed On Date as per the Date Coding requirements detailed in the FSANZ Food Standards Code. (FSANZ)

Ingredients List in descending order including:-. (FSANZ)

o A “characterising” or “key” ingredient name (real or flavoured) as per recipe if applicable. (FSANZ) o % “characterising” ingredient (for real not ‘flavoured’ only) as applicable. (FSANZ)

Nutritional Panel (FSANZ )

Any detectable Allergens used as an ingredient, or any non-ingredient processing aid allergens evaluated, using the AFGC Vital Assessment Tool; (FSANZ)

Identification of any Genetically Modified Ingredients and or trace ingredients (FSANZ)

Country Of Origin in accordance to (FSANZ )

Unique Vendor Identification number (submitted by the Supplier at the time of tender);

Product “Packed For” address information, including Contact Details (Consumer Support Centre: 1300 135 690) unless otherwise specified. For examples, see Section 8.2.13. (FSANZ)

A Unique EAN Number.

Product storage requirements must be stated on the artwork if required (FSANZ )

Handling or Consumer instructions as agreed.

Appropriate recycling or disposal instruction, using standardised logos including plastics identification numbers, and percentage of recyclable content.

The outer carton (shipper) identification label must display the same product code as that of the consumer unit.

Exemptions of the above elements can apply to fresh whole produce in clear packages as deemed acceptable under the FSANZ Food Standards Code

Any Product claims must meet approved Australian Consumer Law and Trade Practice labelling requirements

All other labelling requirements shall be agreed with Metcash and identified on the product specification.

8.2.2 NAME OR DESCRIPTION OF THE FOOD

Refer: Standard 1.2.2 Food Identification Requirements

Foods must be labelled with an accurate name or description. Labels or descriptions must not mislead consumers therefore an Iced Sultana Cake must be iced and contain sultanas.

The prescribed name of the food or a description MUST be sufficient to indicate the true nature of the food. E.g. A food with a picture of a banana on the label must contain bananas. If it contains banana flavouring rather than real bananas, it must be labelled as ‘banana-flavoured’.

Care must be taken when images are printed on packaging. The image must be representative of the contents and must not be misleading to the consumer. Refer Section 8.2.16.



Product Requirements 8.2.3 BRAND NAME

The BRAND Name of the item shall be determined by the Metcash Buyer and identified in the specification

document relevant to the product.

Some examples of Metcash Brand names are shown in Section 2 of this document.

8.2.4 NET WEIGHT OR VOLUME (QUANTITY)

See also Section 9 of this document.

Suppliers must label food products with minimum net weights, pack number or volume and measurement

information as per National Measurement Institute (NMI) Trade Measurement legislation.

DECLARED WEIGHT

a) The weight statement is to be close to and marked to be read in the same direction as any name or brand of the article to which it relates.

b) Weight/and or pack count is to be positioned centred, beneath the product description.

c) The weight unit or pack unit is to be in lower case and in black text, or as per relevant Branding Style Guide.

d) The units of measures that are acceptable are: (g), (kg), (mg), (pack)

e) There must be a space between the numerical value and the unit of measure (e.g. “300 g” - not “300g”), and it is to be a minimum net weight or volume.

f) The declared measurement statement MUST be of at least the prescribed min. character height.

Maximum Dimension of Package Minimum Character Height

120mm or under 2.0 mm

Over 120mm but not over 230mm 2.5 mm

Over 230mm but not over 360mm 3.3 mm

Over 360mm 4.8 mm

g) The declared weight should be at least 2mm away from the edge of the package and any graphic material. If there is an image a border can be placed behind the actual declared weight.

h) If a package contains up to 8 pieces and where the packaging material is made wholly or partly of transparent material, it is not mandatory for the package to carry a weight statement - ONLY a number count on the packaging is required to be printed on the package. Note that both a pack count and a net weight can appear together.

i) If there are 9 or more pieces in a package of transparent material, then it is mandatory to include a weight statement.

References:

1. National Measurement Institute 2. National Measurement Act 1960 3. National Trade Measurement Regulations 2009 4. http://www.measurement.gov.au/TradeMeasurement/Business/Pages/default.aspx

http://www.measurement.gov.au/TradeMeasurement/Business/Pages/default.aspx



Product Requirements 8.2.5 DATE MARKING / BATCH OR LOT CODE

Refer to FSANZ Standard 1.2.5 Date Marking of Packaged Food & User Guide

All food with a shelf life of less than two years must be date marked.

All Metcash branded food products shall be date coded as per FSANZ Food Standards Code. Products that are

date code exempt must be coded by batch and Supplier ID formally stamped onto goods (as a minimum) so

that they may be traced back to the supplier origin in the event of a recall or complaint matter. The product

specification must decipher the lot code clearly.

USE BY

Foods must be eaten or thrown away by that date.

After this date foods may be unsafe to eat even if they look fine because the nutrients in the food may become unstable or a build-up of bacteria may occur

It is illegal to sell foods after their USE BY date has expired.

BEST BEFORE

This date format is applied to foods that may have a significant change in quality but do not pose a food

safety issue after this date, as they are sealed or undamaged.

The BEST BEFORE date simply indicates that the product may have lost some of its quality after this date passes.

Foods can be legally sold after the BEST BEFORE date (as long as they are not damaged, deteriorated or perished).

You can expect these foods to retain their colour, taste, texture and flavour as long as they are stored correctly.

The pre-printed Best Before or Use By on any labelling or packaging MUST have adequate blank space of at least 15mm (H) x 30mm (W) to ensure clear visibility.

BAKED ON

In relation to bread, a ‘baked on’ date means the date on which the bread was baked.

BAKED FOR

In relation to bread, a ‘baked for’ date means a date not later than 12 hours after the time the bread was baked. The ‘baked for’ date indicates the date the bread is being baked for. This date cannot be later than 12 hours after the time the bread was baked.

PACKED ON

This form of date code is not regulated by the Food Standards Code, but is sometimes used for produce items as an indication of freshness.

Additionally, this date code form may be used on products that are not required under the Food Standards Code to carry a “Use By” or “Best Before” date, e.g. where products have a shelf life in excess of 2 years.

LOT / BATCH CODES – Additional Coding to Dates or Specifically For Frozen / Thaw Back Items

Lot coding can be used in conjunction with a date code to assist in traceability.

For products that are supplied by the manufacturer as Frozen / Thaw back items, where the date code is applied at store level at time of thawing, the manufacturer shall ensure that a lot or batch code is evident on the consumer unit package to allow for product traceability. In this case, the manufacturer shall also provide detailed instruction (in the form of an affixed outer carton label) to the retailer on how to thaw product and affix date codes. (See Section 8.3)



Product Requirements 8.2.6 INGREDIENTS LIST

Refer: FSANZ Standard 1.2.4 Labelling of Ingredients & User Guide & Standard 2.7.1 Labelling of Alcoholic Beverages and Food Containing Alcohol.

Ingredients must be listed from greatest to smallest by in going weight (including any added water) at the

time they are added to the product.

Where there are very small amounts of multi-component ingredients, (under 5%), it is permitted to list the

composite ingredients only. This does not apply to any additive or allergen which must be listed, however

small the amount.

So, any additive or allergen within a composite ingredient, performing a function in the final food, e.g. a

preservative, must be listed. Palm oil or derivatives must be avoided where possible, otherwise certified

Identity Preserved or Segregated, and listed clearly in the ingredients, not just as vegetable oil.

For each ingredient listed, the word should start with a capital letter. As shown in the example above, allergens within the ingredients listing are to be highlighted in bold text. In this example they would be declared as: “CONTAINS: Gluten (Wheat), Egg, Milk, Soy. “

INGREDIENTS: Sultanas (20%) (Cotton Seed Oil), Sugar, Wheat Flour, Fondant (Sucrose, Glucose (Wheat

Derived)), Egg, Vegetable Fats (Vegetable Oils [Palm Oil], Water, Salt, Emulsifiers (322(Soy Lecithin), 435,

471, 475, 476, 477), Antioxidants (304, 306 (Soy), 307), Acidity Regulator (330), Preservative (202), Colour

(160a), Flavour), Milk Whey Powder, Humectant (420), Salt, Raising Agents [(170, 450, 500), Wheat Starch],

Acidity Regulator (334), Preservative (200), Plum Pudding Flavour, Icing Sugar (Sugar, Maize Starch),

Colours (102, 110, 120), Gelatine (from beef skin), Meringue Powder [Sugar, Egg Albumen, Thickeners (412,

405, 401), Wheat Starch, Acidity Regulator (330)], Vanilla Flavour.

CONTAINS: Gluten (Wheat), Egg, Milk & Soy.

May Contain Traces of: Almond, Peanuts & Tree Nuts.



Product Requirements 8.2.7 PERCENTAGE LABELLING

Refer: FSANZ Standard 1.2.10 Characterising Ingredients and Components of Food

Packaged foods carry labels which show the percentage of the key or characterising ingredients or components in the food products. The characterising ingredient for “Iced Sultana Cake” is “Sultana” and as you can see from the ingredient list that it has 20% Sultanas declared.

Sometimes within ingredients lists, a percentage will appear in brackets next to a particular ingredient, e.g. apples (26%) or as in the example above, sultanas (20%). This is known as characterising ingredient labelling and lists the proportion of the ingredient / component included in your product.

However, apple-flavoured means just that - if it’s labelled as ‘flavoured’, then actual ‘apples’ may not appear in the ingredients list.

8.2.8 FOOD ADDITIVES

Refer: FSANZ Standard 1.3.1 Food Additives

Food additives must be included in the ingredients list. Food additives are listed with their function in food followed by a name or number. Additives are added to food to do many things including preserving, emulsifying, colouring, raising and thickening. (E.g. Soy Lecithin (322) has been added to this Iced Sultana Cake as an emulsifier.)

8.2.9 NUTRITION LABELLING

Refer: FSANZ Standard 1.2.8 Nutrition Information Requirements

All manufactured foods have a nutrition information panel to assist consumers to compare key

nutrients and serving sizes whilst some food labels will also include information on percentage daily

intake and nutrition claims too. There are a few exceptions such as very small packages and foods like

herbs & spices, tea & coffee and foods sold unpackaged (if a claim is not made) or foods made and

packaged at the point of sale.

NUTRITION INFORMATION

Serving Size 50g

Servings Per Package 10

Avg. Quantity

Per Serving

%DI*

Per Serving

Avg. Quantity

Per 100g

Energy 800kJ 9% 1600kJ

Protein 2.2g 4% 4.3g

Fat, total 6.7g 10% 13.4g

- saturated 3.4g 14% 6.7g

Carbohydrate 29.5g 10% 59g

- sugars 23.0g 26% 45.9g

Sodium 117mg 5% 233mg

* Percentage Daily Intakes are based on an average adult diet of 8700kJ.

The title “NUTRITION INFORMATION” is to be all in capital letters and in bold text. All text in the table is to be preferably in black text. Any variation to this colour must be agreed and approved by Metcash QA in the artwork specification.

The % Daily intake statement must appear underneath the Nutrition Information Table as illustrated in the above NIP table.



Product Requirements In general, the figures in the Nutrition Information Table should be shown with no more than 3 significant figures.

When there is a gluten free statement made on the product labelling it is required to be declared in the Nutrition Information Table following the Sodium content, example below:

8.2.9A) NUTRITIONAL CLAIMS

Refer FSANZ Standard 1.2.7 Nutrition, Health and Related Claims & 1.2.8 Nutrition Information Requirements

It is emphasised that any “claim” on the product is supported by the appropriate facts (e.g. 97% fat free claim is supported in the nutrition information and “Preservative free” means no preservatives are listed in the ingredients.

Metcash will reject any product claims that are deemed to be “opportunistic”.

Examples of types of validated claims that are permitted to be labelled are:-

1. Suitable for Vegetarians – must not contain meat or any ingredients sourced from animals.

2. Organic – avoidance of most synthetic chemical inputs, GMO, irradiation, etc.

3. No Added Sugar – may contain natural sugars

4. Reduced Fat – must contain less than 3% fat for solid foods (1.5% for liquid foods)

5. Fat Free – Must be less than 0.15% fat.

6. Gluten Free

7. Low in salt – foods that contain less than 120mg of sodium per 100g

Any claims and other instructions are to be positioned underneath the storage instructions in black text and in sentence form.

NUTRITION INFORMATION

Serving Size 50g

Servings Per Package 10

Avg. Quantity

Per Serving

%DI*

Per Serving

Avg. Quantity

Per 100g

Energy 800kJ 9% 1600kJ

Protein 2.2g 4% 4.3g

Fat, total 6.7g 10% 13.4g

- saturated 3.4g 14% 6.7g

Carbohydrate 29.5g 10% 59g

- sugars 23.0g 26% 45.9g

Sodium 117mg 5% 233mg

Gluten Nil Detected

* Percentage Daily Intakes are based on an average adult diet of 8700kJ.

Any products that are declared

with a claim are to be validated by

the supplier of the product and

verifications from a NATA

registered laboratory and

provided to Metcash Food &

Grocery QC department



Product Requirements 8.2.10 INFORMATION FOR ALLERGY SUFFERERS

(Refer AFGC Code of Practice for Food Labelling & Promotion - Jan 2011)

a) Common allergens must be declared in the ingredient list or in the mandatory advisory statement. b) The most common food allergens are from

1. cereals containing gluten (including wheat, rye, barley, oats, spelt), 2. crustacea, 3. egg, 4. fish, 5. milk, 6. peanut, 7. sesame seeds, 8. soybeans, 9. tree nuts

and/or any of their products. c) These allergens must be

i. declared on the label in the ingredients listing in Bold font, and ii. in a separate advisory statement.

d) Sulphite preservatives must also be declared on the label if added at 10 (or more) milligrams per kilogram of food (i.e. > 10ppm).

e) Products containing Royal Jelly must also provide a warning statement on the food label. f) All food which contain or may contain traces of these allergens must have a declaration on the label. g) All warning statements are to be of minimum height 3mm. h) Mandatory declarations MUST be declared - preferably underneath the listed ingredients. i) The “Contains” statement is to start with the word “CONTAINS”: in black bold text and all in capital

letters followed by a colon (or reversed out as shown here). It is to be followed by the list of allergens that are in the product in “Title Case” and in normal black text.

j) The “May Be Present” / “May Contain Traces of” statement is to be in black bold text in “Title Case”. It is to be followed by the list of allergens (preferably determined by Allergen Vital Tool) in “Sentence case” for each allergen and in normal black text.

k) “May Be Present” – this statement format is reserved for manufacturers who have utilized VITAL in the preparation of the allergen warnings.

l) “May Contain Traces Of” – this statement is to be used by manufacturers who have not conducted a formal VITAL assessment in the preparation of the allergen warning statements for the product.

8.2.11 OTHER WARNING STATEMENTS

Refer FSANZ Standard 1.2.3 Mandatory Warning and Advisory Statements and Declarations &

Standard 1.2.9 Legibility Requirements - with reference to other definitions provided in the FSANZ Standards

Underneath the Ingredients listing and the allergen warnings other warning statements can/may be included

as per the product specification.

NB: -There are specific FSANZ legibility and font size requirements for use with Warning Statements



Product Requirements 8.2.12 COUNTRY OF ORIGIN

Refer to ACCC – “Australian Consumer Law” for details & FSANZ Std. 1.2.11 Country of Origin Labelling

Country of Origin labelling describes the country or countries where your food was grown, manufactured or packaged. All packaged food must be identified as having been made from imported or local produce or a mixture of both.

The country of origin to be all in CAPITAL LETTERS and as per the product specification.

The country of origin to be ‘BOLD’ CAPITAL letters.

List of permitted country of origin claims and their representations:

1. Made in Australia (Manufactured in... Australia)

To make this claim, two tests must be satisfied:

1. The goods must be substantially transformed in Australia; and

2. 50% or more of the cost of production or manufacture of the goods must be carried out in Australia.

The goods must have been substantially transformed in the country claimed to be in the origin and 50% of production must have been carried out in that country. Product of the country of origin claimed must be the country of origin of each significant ingredient of the food and all or virtually all the processes of production or manufacture of the goods have happened in that country.

2. Product of Australia (Produced in, Produce of... Australia)

‘Product of ...’ is a premium claim about a product’s origin. To make this claim, two tests must be satisfied:

1. The country was the country of origin of each significant ingredient or significant component of the goods; and

2. All, or virtually all, processes involved in the production or manufacture happened in that country.

3. Made In Australia From Local & Imported Ingredients (or Imported and Local Ingredients)

The statement speaks for itself.

Care should be taken with the use of this statement, so as not to be misleading in any way. Refer the guidelines from the ACCC for clarification on the definitions.

4. Grown In

Used mainly by produce growers and processors.

Mid 2016, there are proposed new requirements for Country of Origin labelling, and the above details may no longer be relevant.



Product Requirements 8.2.13 CONTACT DETAILS - FOOD RECALL INFORMATION

Labels must have the name and business address in Australia or New Zealand of the manufacturer or supplier,

as well as the lot and batch number (or date coding). This makes the food recalls more efficient and effective.

The following information is required to ensure traceability of all Metcash products as well as complying

with FSANZ legislation. Typical Examples for Metcash branded food products:-

Packed for: Metcash Food & Grocery 1 Thomas Holt Drive, Macquarie Park, NSW 2113 VENDOR ID: XXXXX Consumer Support Centre 1300 135 690

Packed For: Australia Asia/Pacific Wholesalers 1 Thomas Holt Drive, Macquarie Park, NSW 2113 VENDOR ID: XXXXX Consumer Support Centre 1300 135 690

Packed For: Mirren (Australia) 1 Thomas Holt Drive, Macquarie Park, NSW 2113 VENDOR ID: XXXXX Consumer Support Centre 1300 135 690

Some may also carry the website link:- www.iga.com.au

Your Metcash QC/QA contact will provide the necessary information.

8.2.14 BARCODING & EAN NUMBERS & GS1 VERIFICATION

Below is the link to GS1 for further information relating to barcodes:-

https://www1.gs1au.org/

Requirements for barcodes include:-

a) EAN numbers are generated by Metcash QA/QC Department and are to be used only for the allocated, approved product specification.

b) EANs provided by Metcash are to be used only for the purposes of the intended product. c) Suppliers to Metcash MUST not use the EAN provided, for their own branded products or any other

products not approved by Metcash Food & Grocery and are not to be misused or issued to any other suppliers.

d) By exception only, should the availability of space be limited depending on the packaging dimension, the barcode may be positioned at a vertical position with the numbers positioned on the inside of the barcode.

e) The optimum colour combination for a barcode symbol is black bars with a white background. Any variation to this colour combination is to be agreed and approved by Metcash QA via the approved artwork specification.

f) The barcode must be able to be scanned to a minimum of 80% scan rate for small packages, all others must be 100% scan rate.

g) Barcode height minimum 23.99mm in height. h) The Supplier must ensure that barcodes are:-

i. Readable and of acceptable GS1 (formerly EAN Australia) grade and magnification on all levels of packaging, and

ii. In line with Metcash Packaging and Barcode & Logistics Specifications and Conforming to minimum magnification as per Guidelines, and where space allows maximization of the size of code.

http://www.metcash.com/files/dmfile/MetcashPackagingBarcodeandLogisticsSpecificationsv12.pdf

https://www1.gs1au.org/

http://www.metcash.com/files/dmfile/MetcashPackagingBarcodeandLogisticsSpecificationsv12.pdf



Product Requirements 8.2.15 LEGIBILITY REQUIREMENTS

Refer FSANZ Standards 1.2.3 Mandatory Warning & Advisory Statements and Declarations & Std. 1.2.9 Legibility Requirements.

Labels must be legible, with prominent type which is distinct from the background and in English. Mandated information (e.g. allergen warnings) must be in a size of type of not less than 3mm; or in the case of a small package (as defined by the standard), in a size type of not less than 1.5mm.

8.2.16 USE OF PRODUCT IMAGES & GRAPHICS - (SEE ALSO SECTION 8.2.2)

Any graphic designs / photographic images or colours used on labels MUST NOT be deceptive or misleading to the consumer in any way. Pictures and colours must at all times fully reflect the product inside the package. If a product is ‘dressed’ for a photo, the words “SERVING SUGGESTION” should appear directly underneath the image

8.2.17 STORAGE AND DIRECTIONS FOR USE - (SEE ALSO SECTION 6)

Where specific storage conditions are required in order for a product to remain safe until its ‘use by’ or ‘best

before’ date, manufacturers must include this information on the label, for example the Iced Sultana Cake

example should be “stored in cool dry conditions away from direct sunlight”.

Other foods which require storage & preparation to ensure they remain safe will need to provide directions.

List of standard storage instructions that are permitted to be used:

1. Keep Refrigerated at or Below 40C. 2. Keep Refrigerated. Store at 1 - 40C. 3. Keep Frozen at –180C until required. 4. Store at or below -18oC. 5. Frozen from fresh and thawed for your convenience. 6. Store at Ambient Temperature 7. Do not re-freeze.

The storage instructions applied to the product labelling are based on the product’s nature and shelf life. The

storage instructions are to comply with the product’s specifications.

Other foods which require preparation to ensure they are safe will need to provide directions. Typical

Instruction types include:

1. Upon opening consume within “XX no.” days. 2. Cooking Instructions 3. Handling Instructions



Product Requirements 8.2.18 LOGO REQUIREMENTS

Logos Used by Metcash Brands

All Metcash logos must be applied as per the relevant style guides for the particular Branding.

Some generic Metcash logos are as below:-

IGA Community Chest is to be included on all corporate

branded products, as indicated by the relevant style

guide.

Logo can be used in Black & White format, where

colours are restricted to a minimum of 6 colour process

200% Guarantee is the statement that encompasses

the entire fresh area is to be included on corporate

branded products as per the relevant style guide.

Logo can be used in Black & White format, where

colours are restricted to a minimum of 6 colour process

Australian Made or other Aus Made accepted logos

(e.g. Product of Australia, Australian Grown)

Other accepted logos:-

Dietary Intake Guidelines Thumbnails - (Refer AFGC - Daily Intake Labelling)

The DI% Energy Thumbnail must always be positioned on the front panel and preferably at the bottom right hand corner. The Energy Thumbnail on its own can be used when:-

1. Label space is restricted to the extent that it is impractical to present either the four or six

main thumbnails; or 2. The product is very low in all the core nutrients e.g. mineral waters and diet beverages and

it makes little sense to present the full set of thumbnails.




Where space permits, the additional DI thumbnails are to be included in the following order:-

1. Energy

2. Fat

3. Saturated Fat

4. Sugars

5. Sodium

Logo can be used in various colour formats based on background colour of packaging-Blue, Green, Red, Black & White

The DI% thumbnail information is as per the same data printed in the Nutrition Information Table

The DI% is to have the exact shape, font style and height as per The Australian Grocery Food &

Council Logo Guidelines.

Reference: AFGC Daily Intake Guide Labelling Scheme.

The serve must be expressed as “Per XXg SERVE”. This text is to be located below the thumbnail

The DI% value should be larger in print size and/or typeface than the kJ (Kilojoules value)

Energy plus Four Core Nutrients

Energy plus Six Core Nutrients



Product Requirements Recycling Logos

Suppliers must use recyclable and recycled content for tertiary, secondary & consumer unit packaging. The type of packaging (including plastic type) for each component of packaging must be disclosed accurately on the Product Specification form. Where more than one material type is used in consumer unit packaging, multiple logos can be used with the component name underneath the logo. Logos can be used in various colour formats based on background colour of packaging – Blue, Green, Red, Black & White.

Polyethylene Terephthalate (PETE)

Typical items Soft drink bottles, mineral water bottles, squash bottles, cooking oil bottles.

High-density Polyethylene (HDPE)

Typical items Milk bottles, juice bottles, washing up liquid bottles, bath & shower bottles.

Polyvinyl Chloride (PVC)

Typical items Bottles, window frames, sandwich boxes

Low-density Polyethylene (LDPE)

Typical items Plastic carrier bags, rubbish sacks.

Polypropylene (PP)

Typical items Food packaging, food film, bottle lids, crisp packets, margarine tubs.

Polystyrene (PS)

Typical items Food packaging, yoghurt pots, product packaging, foam fast-food cartons, foam meat trays.

Other resins and multi-material plastics (OTHER)

Typical items Found on a wide variety of mixed plastic items.

Steel Typical items Tinned food, bottle lids

Aluminium Typical items Drink cans

Glass Typical items Jars, bottles

Please dispose of thoughtfully Only to be used when packaging is not recyclable. Note that Metcash expects all packaging to be recyclable or be transitioning to recyclability.

Logo can be used in Black & White format, where colours

are restricted to a minimum of 6 colour process



Product Requirements 8.3 OUTER CARTON LABELLING

8.3.1 GENERAL OUTER PACKAGE REQUIREMENTS

All outer carton and pallet labelling must comply with the requirements of

http://www.metcash.com/files/dmfile/PackingBarcodeLogisticsspecifications.pdf

In summary:-

1. Information on the outer cartons for stores and DC operations must be legible on at least two adjacent sides.

2. The information on outer cartons MUST be stamped or printed in a colour that provides a distinct contrast with the colour of the background.

3. The minimum height text required on outer cartons or on sticker labels is 4.8mm character height.

4. The information on the outer cartons is to match the product labelling of consumer unit.

5. The barcode can be positioned anywhere along the face of the carton ensuring that the lower edge of the vertical bars of the barcode is exactly 32mm from the lower edge of the base of the carton. Including margin areas the barcode should be located no closer than 19mm from both vertical edges of the carton.

6. The label for each trade unit should include the following legible information:- a) Total Weight of Trade Unit & Consumer Unit Weight b) Product Description c) Brand/Logo Name d) Pallet Configuration e) Barcode f) Temperature Marking / Storage Instructions / Handling Instructions for Thaw back g) Best Before / Date Coding h) Any warning statements

8.3.2 COMPANY & PRODUCT DETAILS

Typically, the Metcash addressing details will be one of these variants. The information required, will

be confirmed by your QA/QC contact.

Packed for Metcash Food & Grocery 1 Thomas Holt Drive, Macquarie Park, NSW 2113

Packed For Australia Asia/Pacific Wholesalers 1 Thomas Holt Drive, Macquarie Park, NSW 2113

Packed For MIRREN AUSTRALIA 1 Thomas Holt Drive, Macquarie Park, NSW 2113

The following details MUST be in the order as illustrated and preferably following after the country of

origin or near proximity to the country of origin.

Total Weight of Trade Unit:

Declare the total weight of outer carton & beside total weight to have in brackets the weight of consumer units and number of consumer units)

E.g.: 5.4 kg - 8 x 675 g (3 x 225 g per Carton)

http://www.metcash.com/files/dmfile/PackingBarcodeLogisticsspecifications.pdf



Product Requirements Product Description:

The Product Description to match the product description on the consumer unit.

Brand Logo/Name:

The brand logo and name IGA Bakers Oven or Deli Shoppe.

Pallet Configuration:

Diagram of pallet configuration.

Warnings:

Handle with Care

Stack cartons on pallet right side up.

Any Dangerous Goods instructions

Barcode:

To be located on at least 2 adjacent sides of all cartons.

Bar height is 32mm.

Visibility of all TUN barcodes, pre-printed or as labels must be 100% on finished goods. No part hidden barcodes are acceptable (i.e. under tape, plastic wrap, or solely on the base of a trade unit)

Metcash Food & Grocery prefer outer cartons with pre-printed text. However we will accept outer cartons with pre-printed sticker labels as long as they are stickered on at least all 4 sides of carton.

8.3.3 TEMPERATURE MARKING – STORAGE INSTRUCTIONS

STORE FROZEN

1. Temperature statement to be all in capital letters. 2. Permitted to use any type of colour print. Must be legible and clear and of a minimum

font height of 6mm.

8.3.4 REQUIREMENTS FOR LABELLING OF METCASH BRANDED FROZEN THAW-BACK RANGES

All frozen goods that are delivered to stores MUST contain handling and date coding instructions stamped or printed on the outer cartons for store staff. This is to ensure correct thaw life coding is stickered on consumer units when stores thaw products before selling at ambient temperature, chilled temperature or before baking.

The date coding instructions & date codes are communicated to retailers on the “Metcash Frozen / Thaw-Back Bakery Range Date Marking” list that is approved by the National Bakery & Deli buyers and is issued to all IGA Stores.

Information on the outer cartons for stores and DC operations must be legible on at least two adjacent sides. The information on outer cartons MUST be stamped or printed in a colour that provides a distinct contrast with the colour of the background.

The minimum height text required outer cartons or on sticker labels is 4.8mm character height.



Product Requirements 8.3.4.1 THAW BACK OUTER CARTON LABELLING SPECIFICATION (IGA FRESH PRODUCT RANGES)

The information on the outer cartons is to match the product labelling of consumer unit and to comply with approved product specifications.

Specification:- PACKAGING - Outer Carton 1. Temperature Marking 2. Date Coding Instructions 3. Thawing Instructions 4 Total Weight of Trade Unit & Consumer Unit Weight 5. Product Description 6. Brand/Logo Name 7. Pallet Configuration 8. Barcode 9. Best Before: (Frozen State)

8.3.4.2 HANDLING INSTRUCTIONS (FROZEN / THAW BACK) (IGA FRESH PRODUCT RANGES)

The following instructions are to be included on outer cartons:

Thawing Instructions At Store Level:

1. Mark each pack with (Insert No. of days) days “Use By” or “Best Before” from date removed from freezer storage to ambient display. (1)

2. For products to be displayed in the freezer, mark with same date as the outer carton date code.

3. Date code on product at store level must not to exceed date code on outer carton. (1) 4. Stock holding should be held in the freezer. 5. Do Not Re-freeze.

Maximum Refrigerated Shelf life (Insert No. of days) including defrost time.

Example:-

Note: (1) Reference Source: Metcash Retail Document - Frozen/Thaw-Back Bakery Deli Range 11-03a Thawed Use-By Dates.

Cartons are to have printed on all 4 sides the following statement:-

“DATE MARK PRODUCTS BEFORE PUTTING ON THE SHELF”



Product Requirements 8.3.5 FRESH PRODUCE SPECIFIC – OUTER CARTON LABELLING (IGA FRESH PRODUCT RANGES)

All cartons or wholesale sale units of produce received MUST be labeled with the following details for traceability:-

Supplier name

Product Description

Country Of Origin

Net pack weight (where applicable)

Packed On Date or Best Before Date or Use By date (as applicable)

8.3.6 PROVISION OF OUTER CARTON LABEL / ARTWORK EXAMPLE (IGA FRESH PRODUCT

RANGES)

Suppliers are to provide Metcash Fresh QA with a PDF copy the Outer Carton Label to receive final approval

for product artwork.



Product Requirements 8.4 ARTWORK, BLOCKS & PACKAGING

a) All artwork is to be prepared by the Supplier and remains the property of Metcash at all times.

b) All draft and final artworks are to be signed and approved by Metcash QA Department, prior to printing.

c) The Supplier will be responsible for all costs associated with artwork and blocks.

d) The supplier must obtain all necessary approvals from relevant government departments and authorities including but not limited to the National Measurement Institute regulations, Health Department requirements, Australian Quarantine Inspection Service testing requirements, Therapeutic Goods Administration compliance requirements, National Registration Authority compliance requirements and any other Department or Product testing standard necessary for product approval for sale within the Australian market place.

e) The Supplier warrants that it has obtained all necessary approvals relating to the artwork, labelling, registrations and suitability of product packaging being used.

f) All Metcash Branded Products produced for Metcash must comply with all applicable legislation whether Federal or State.

g) Checks on artwork for packaging material runs must be authorised by Metcash and a sample be provided from the first production run

h) No responsibility will be taken by Metcash for packaging materials that are in excess of three (3) months normal or forecasted sales.

i) The Supplier is not authorised to use any registered trademarks owned by Metcash without the written permission of Metcash.

j) During the tender process, suppliers must complete the “Sustainable Packaging” section of the Product Specification form and respond within 10 days to the Metcash Packaging Recommendations Letter. This will ensure Metcash compliance with the Australian Packaging Covenant.

k) Suppliers should implement the sustainable packaging guidelines available to download at: www.packagingcovenant.org.au

l) All Food packaging must meet the requirements outlined in the current Global Food Safety Initiative. In summary, the supplier must ensure that a Hazard and Risk Management system and pre-requisite programs have been used to ensure that none of the components parts or the whole material could compromise food safety.

http://www.mygfsi.com/technical-resources/guidance-document.html

m) Where modified atmosphere packaging is utilized:

The suitability of the gas mix must be approved, validated, and appropriate control systems must be in place to manage the delivery of food grade gas to each pack.

Seal effectiveness must also be monitored during production and validated for shelf-life of each product.

http://www.packagingcovenant.org.au/

http://www.mygfsi.com/technical-resources/guidance-document.html



Trade Measurement Requirements for Packers

9. METCASH TRADE MEASUREMENT REQUIREMENTS FOR PACKERS

See also Section 8.2.4 of this document

Products packed for Metcash must comply with the requirements prescribed in the Australian National

Measurement Act 1960, the Australian National Trade Measurement Regulations 2009 and any requirements

so subscribed by Metcash. If more than one measurement statement is required on the package (a weight

and count statement) then the contents of the package shall comply with both weight and count legislative

requirements.

Articles sold by weight or volume must be the net volume or net weight respectively and where sold by weight

must not include the weight of the package (tare). The tare shall include the weight of all packaging materials

used. Measuring scales (equipment) used for trade measurement purposes in the packaging process must be

pattern approved, labelled with a National Measurement Institute approval number or similar, verified by a

registered licensee with a licensee stamp attached, be accurate and used correctly.

For packages sold by volume, the volume must be correct at the temperature at which it is sold to the

consumer. For packages marked by volume and stored on standard supermarket shelves, this temperature is

deemed to be 20 deg. C. For refrigerated products such as fresh milk and juices, the volume must be correct

at 4 to 5 deg. C, and for packages stored in freezers, the volume must be correct when measured at –18 deg.

C. Suitable volume measuring equipment shall be used.

Packages must also be labelled correctly with a net measurement marking, the name address of the packer or

the company on whose behalf it was packed and the marking size and position on the pack must meet

legislative requirements.

9.1 UNDERWEIGHT TOLERANCES

There are some tolerable deficiencies permitted by trade measurement legislation. Any short measure greater

than the tolerable deficiencies permitted are a major breach of the legislation.

The supplier must ensure that Metcash Branded Products are never packed with deficiencies greater than

these allowable tolerances. In Australia, there are two methods of determining measurement:

The Minimum Quantity System, and

The Average Quantity System (AQS)

9.2 MINIMUM QUANTITY SYSTEM

For like packages, i.e. with a constant measurement marking, the maximum actual deficiency allowed in a pre-

packed article is 5%. However, the average of a group of 12 like packages must be not less than the stated

measurement marking.



Trade Measurement Requirements for Packers

9.3 AVERAGE QUANTITY SYSTEM (aqs) “e” MARK There are ranges of tolerable deficiencies which depend on the nominal quantity of the package, and suppliers must refer to the National Measurement Institute Trade Measurement legislation relating to AQS. (http://www.measurement.gov.au/TRADEMEASUREMENT/BUSINESS/Pages/AverageQuantitySystem.aspx )

Suppliers of Metcash Branded Products requesting that they be permitted to pack to the AQS method of measurement and hence apply an “e” mark on their packaging artwork must first request approval from Metcash QA Dept. and must provide evidence that their QA processes & procedures have been audited and approved in the last 12 months by a reputable third party audit agency (refer to the Metcash Supplier Certification Standard). This must be reviewed & reported by the supplier at least annually to maintain Metcash approval to pack to AQS. The agreement with a Metcash Owned Brands supplier to accept & include an “e” mark on the product artwork is based on the requirement that the product complies at all times with the National Measurement Act & National Trade Measurement Regulations. Summary of Requirements for Use of the E Mark

1. All products that have been packed and sealed are passed through an online check-weigher with a functional detection / rejection mechanism.

2. Tare weights of empty packaging regularly checked as part of the QA program, by taking an average of 10 individual packaging systems, with records retained.

3. Check-weighers must be certified and calibrated annually or after malfunction. 4. The Calibration must be checked at least on a weekly basis and confirmed to be within calibration. 5. The detection / rejection mechanism is to be checked each run, prior to start up and at least 2 hourly

intervals during operation. Records of the checks are to be retained.

9.4 RANDOM WEIGHT PACKAGES Packages which are not packed to the same nominal measurement marking are known as random-weight articles. As there are no like packages, it is not possible to calculate an average of a sample. The legislation does not allow a deficiency of a single package’s contents in this situation of random weight packages. If a package has two measurement markings, such as a weight statement AND count, then BOTH these measurement quantities MUST be correct. The quantity of a package must make such allowance for any likely reduction over the product life to prevent the commission of an offence, in relation to the article.

9.5 OTHER TRADE MEASUREMENT REQUIREMENTS (See also Section 8.2 – Product Labelling) There are also specific requirements nominated in the legislation about labelling such as the size and location of the measurement marking. There are also requirements about the kind of measurement you must apply depending on the product e.g. yoghurt must be sold by mass; cream must be sold by volume. Note: All Metcash Branded Products will be subjected to random audits (at store level) by approved independent third parties adopting the Australian Standard for testing as per AS 3806 – 2006 Compliance Programs for Trade Measurement and National Measurement Institute test procedures.

http://www.measurement.gov.au/TRADEMEASUREMENT/BUSINESS/Pages/AverageQuantitySystem.aspx



Product Assessment & Monitoring

10. PRODUCT ASSESSMENT & MONITORING

10.1 SUPPLIER MINIMUM PRODUCT TESTING

a) The Supplier shall ensure that they implement a product assessment program for all products supplied to Metcash. This program shall provide adequate assurance that Metcash branded products are compliant with the product quality and food safety criteria as documented in the agreed specification

b) This programme for each product and variant include an analysis conducted by a NATA accredited laboratory and be available on request

c) All costs for the above will be borne by the supplier.

d) Finished product samples that are representative of the production output are to be analysed, no sample is to be “fashioned” for testing.

e) Where the Supplier is supplying Metcash Branded Products, appropriate documentation must be maintained to support any nutritional, health or marketing claims. Product testing must provide verification to ensure accuracy and compliance of any nutritional or marketing claim.

f) The supplier will also submit documented proof thereafter, upon request by Metcash QA.

10.2 RETENTION SAMPLES

a) Retention samples shall be retained by the Supplier for all packaging and production runs of Metcash brand products supplied to Metcash, for the total shelf life of the product under the recommended storage conditions.

b) The number of samples retained shall be determined based on the:-

number of production runs

volume of product supplied

associated product risk.

10.3 SHELF LIFE VALIDATIONS

In addition to assessments made during product development and set-up, all Suppliers shall conduct shelf life

validation testing including physical, microbiological, and or organoleptic sensory testing on an ‘annual basis’

to verify their shelf life claim for each product category supplied to Metcash. This should include ‘challenge

tests’ as per FSANZ Food Standards Code requirements.

10.4 METCASH MINIMUM PRODUCT TESTING

For each product supplied, Metcash may withdraw a random sample from the Metcash Distribution Centre

up to twice a year for the purposes of Quality Assurance audits. A full report will be copied to the supplier.



Product Assessment & Monitoring 10.5 How do I know if my products are considered “HIGH RISK” by Metcash? The flow diagram below provides some guidance on how Metcash Owned Branded Products are reviewed for

‘risk ratings’.

Risk ratings for products are assessed and based on the 5 parameters below and detailed in the following decision tree:

Allergen free statement or product claim

Par – cooked / raw to heat & serve

Ready to eat (pH range of 4.0 – 9.0 and an aW of greater than 0.83)

Thaw to serve (pH range of 4.0 – 9.0 and an aW of greater than 0.83)

Pesticide residues

Other risks associated with known historical issues pertaining to certain product categories.



Product Assessment & Monitoring 10.6 METCASH ‘HIGH RISK FOOD PRODUCT’ AUDITS a) Metcash will conduct separate annual random product assessments on Corporate Branded products,

according to the following product risk structure:

Microbiological testing (as per the above Microbiological Criteria) on “High Risk” foods such as RTE meats, soft cheeses, and RTE salads;

MRL testing for pesticide residues on selected packaged fresh whole fruit & vegetable lines; and

Testing for presence of allergens for all lines where an ‘allergen free claim’ is made.

b) All testing shall be conducted by a NATA Accredited (or equivalent) laboratory and all test results shall either remain the property of Metcash (and be copied to suppliers) or be made available to Metcash if suppliers make arrangements for testing. Where above test results indicate a failure or non-compliance to FSANZ Food Standards Code or any further state Food Act requirements, further corrective actions will be conducted which may result in product recall / withdrawal as per Metcash Trading Ltd protocols.

c) Supplier will be liable for the samples selected and the cost of both the Metcash Quality Assurance Audits and the NATA accredited laboratory assessments.

d) Metcash QA /QC will supply a copy of all external verification reports to the Supplier, so that these reports

may provide further evidence / support for external food safety audit program

10.7 MICROBIAL MONITORING Suppliers shall ensure:-

i. That they have a chemical MRL (Maximum Residue Levels) and or microbiological testing program in place (where required) that provides adequate assurance of all such food products supplied to Metcash in accordance with the product specification

ii. The frequency of product testing shall be established by the Supplier based on the risk of product and the volume supplied, with at least two checks per production run (as a minimum)

iii. Packaged Metcash Branded RTE (Ready-To-Eat) Meat products and their applicable manufacturing environments shall be sampled and swabbed according to the “PrimeSafe Regulatory Guidelines for the Control of Listeria”, and all corrective actions shall comply with this Guideline.



Product Assessment & Monitoring 10.7a MAXIMUM Microbiological Standards and Permitted Chemical Additives for Foods

The maximum acceptable microbiological standards throughout the shelf life of all Foods for Metcash Branded

Foods are listed below, unless the Food Standards Code 1.6.1 requires ‘higher’ testing methodology for a

specific product:

Microbiological Criteria Maximum Counts (Inclusive of end of shelf-life)

Total Viable Aerobic Count (M2.1) <108 cfu/g (initial counts not to exceed106 cfu/g)

Coliforms (M52) <1000/g (Non RTE Products)

Escherichia coli (M52) <10 cfu/g

Listeria Monocytogenes (M36.5 – VIDAS) Not detected in 25g

Coagulase positive Staphylococci (M3.1) <100 cfu/g

Salmonella (M80.1) Not detected in 25g

Campylobacter (M48) Not detected in 25g

Yeast (M4) <100 cfu/g

Mould (M4) <100 cfu/g

a) Where product is known to support the growth of any other organisms they shall also be tested and verified to ensure food safety throughout the shelf life of each product.

b) Suppliers specifying greater than 106 maximum counts for SPC must provide assurance with back-up testing for levels of any specific genus such as Lactobacillus. Such testing must ensure that the favoured organisms are less than a 2 log of the SPC result, i.e. if a SPC maximum standard is 108 then the Lactobacillus count must be no less than 106.

c) Some of these standard tests may not apply to certain categories of foods and these test requirements will be specified by Metcash QA within the individual Product Specifications.

10.8 CHEMICAL MONITORING

10.8a Permitted Chemical Additive Criteria for Small Goods Meats & Value Added Raw

Meat Products

The maximum acceptable chemicals of all High Risk ‘Meat Smallgoods’ are listed below:

Sulphites (raw product) <500ppm

Sulphites (cooked product) <500ppm

Nitrites (cooked product) <125ppm

10.8b Contaminants and Residues in Foods - Maximum Residue Limits (MRLs)

All products supplied under Metcash brands and fresh categories, must comply with the (FSANZ) Australian Food Standards Code 1.4 for Contaminants and Residues.

Where Metcash deems products to be ‘high’ risk, the products will be included in the testing program to verify ongoing compliance to the Standard.

Exported products which may require different screening to meet relevant export control orders and importing country requirements will be assessed on a case by case basis.



Product Assessment & Monitoring Testing Guidelines

Where a product is deemed to be of “High” risk, then this item (and its supplier) may be subjected to increased surveillance and / or on site audits.

The table below provides some guidelines on expected testing requirements and frequency of testing however Metcash reserves the right to request additional testing as necessary to ensure the safety or quality of any product.

Category Definition Example Testing Minimum Frequency

Allergen Free Claim

A product contains a nutritional statement such as a health claim, “Gluten Free” or “Lactose Free”

- Gluten Free Biscuits

- Lactose free milk

- Nut free cake

Specified allergen testing.

2 x per year

Health claim Where a product makes a specific health claim or health related claim

low salt,

low fat,

high fibre

Product claims to be verified by specific testing according to the claim

2 x per year

Raw or Par – Cooked Heat & Serve

A product that is to be cooked by the consumer and the product safety is dependent on this microbiological reduction step being correctly followed by the consumer.

Some frozen or chilled meal products

The product will be subjected to microbiological tests as agreed & specified for that range of products

2 x per year

Ready To Eat Thaw To Eat

A product that is packed & / or frozen and RTE with a pH range of 4.0 – 9.0 and an Aw of greater than 0.83, and/or there is a product / industry history of food poisoning and / or recall notification. Where thawed product is intended to be eaten by the consumer (with no prior microbiological reduction step).

Prepared salads Fermented meats Dairy Cheesecake

The product will be subjected to microbiological tests as agreed & specified for that range of products

2 x per year

Selected Fresh & Packaged produce lines, including ORGANIC claims for fresh items

A product that is packed consisting of fresh produce or nuts – Where the outer skin can be eaten without cooking

Apples Pears Stone Fruits Tomatoes Chillies

That product will be subject to pesticide residue tests as agreed & specified for that range / variety of produce.

Annually

Product categories with Known Industry Issues

Products with a history of issues or related to FSANZ or customer requirements

Nut butters, raw nuts ‘Beef’ specific value-added products must not have pork content

Salmonella, Aflatoxin Meat Species confirmation

2 x per year



Product Assessment & Monitoring 10.9 FRESH PRODUCE – QA MONITORING

a) All chemicals used pre or post-harvest for fresh produce must be registered and approved for use in accordance with the requirements of the APVMA regulatory system.

b) All Contaminants and Heavy Metals levels found in finished products must comply with the FSANZ Food Standards Code MPC’s and MRL’s.

c) For packaged Metcash branded Fresh Produce supplied to Metcash, effective chemical and microbiological tests (at least annually) must be carried out on each growers product (or product type), as part of the verification activity to show all chemical and microbiological hazards are in control.

d) A market wholesaler / packer must verify, through random testing, that effective chemical and microbiological compliance is confirmed (or results are received through information gathered from their suppliers are provided to the fresh market wholesaler). Random tests includes a set percentage of product checked, based on risk and volume.

e) It is the responsibility of the Fresh Produce Supplier to justify this frequency of random testing. All fresh produce test results must meet the microbiological, pesticide residues, heavy metals, food additives, chemical and contaminants criteria prescribed for the product in the FSANZ Food Standards Code or any applicable state regulatory code.



Genetic Modification & Engineering

11.0 OTHER PRODUCT CLAIMS Reference: Australian Government DAFF website for Australian Standards & Organic Federation of Australia –

“NATIONAL STANDARD FOR ORGANIC AND BIO-DYNAMIC PRODUCE” This website also lists the Department of Agriculture Organic Approved Certifying Organisations.

11.1 ORGANIC PRODUCT CLAIMS

a) The Supplier must guarantee the organic integrity of all products supplied to Metcash. This includes the assurance that the Organic status of all such products is maintained from raw ingredient procurement to finished product distribution into Metcash branches. All such products must be handled in a manner that prevents contamination or substitution with incompatible products containing pesticides, herbicides, hormones or genetically modified material and fall within the scope of their Organic Certification, both for manufacturer and suppliers of ingredients.

b) Fresh suppliers supplying Organic products must ensure that they have an approved Supplier Program as per the “Metcash Supplier Certification Standards” guideline as well as a recognised industry Organic Certification for all food ingredients and products.

Refer to www.metcash.com for Minimum Sustainability claims QA Requirements

Evidence to be provided by Suppliers to support the claim-

Letter of certification for the supplier, ingredient or whole product from one of the certification bodies e.g. Australian (NASAA, BFA, ACO, OFC, Aus Qual, Demeter, OGA, TOP) NZ (Certified Organic), USA (USDA, Canada Organic ) EU ( Soil Assoc., EU Org Farming, EKO, BIO, AB, BIOHELLAS, DIO ) Asia (JAS, ) Worldwide (IFOAM)

A certified Supplier/product should appear on the relevant certifying body's website member list.

Suggested wording for labelling

Logo and/or wording to be used in accordance with the certification body's requirements

Reference:- Please refer to the website of the individual certification claim for requirements on logo use

and/or approved on-pack wording

11.2 FREE RANGE / BARN Laid EGGS CLAIMS Labelling Reference –

http://www.humanechoice.com.au/Resources/Documents/Egg-Labelling-Guide-March-2013-FINAL-1.pdf

Evidence to be provided by Suppliers to support the claim-

Letter of certification for the supplier and/or product under one of the certification bodies e.g. Australia (FREPA, AECL, FRFA, FRPA, ACO as organic eggs must be produced in free range conditions)

A certified Supplier/product should appear on the relevant certifying body's website member list.

Suggested wording for labelling

Logo and/or wording to be used in accordance with the certification body's requirements

Reference: Please refer to the website of the individual certification claim for requirements on logo use

and/or approved on-pack wording.


http://www.humanechoice.com.au/Resources/Documents/Egg-Labelling-Guide-March-2013-FINAL-1.pdf



Genetic Modification & Engineering

12. GENETIC MODIFICATION & GENETIC ENGINEERING

See also Section 13c (1) of The Metcash Owned Brands Supply Agreement v 1.0 June 2013.

This guideline only covers foods that may contain Genetically Modified Foods as defined in Food Standards Code A18 that are controlled or partly controlled by Metcash Limited and its subsidiaries.

All food products supplied to Metcash branches must already comply with the Commonwealth Gene Technology Act (2000) and FSANZ Food Standards Code 1.5.2. This shall include the use of additives and processing aids produced by ‘gene technology’.

Metcash requires that suppliers should always preferentially source those ingredients that do not contain GM material. This preference also extends to any animal feed for meat/dairy/egg producing animals.

Where animal feed for meat/dairy/egg laying animals, is identified as containing GM material, fresh meat suppliers shall ensure that the animal feed being used is regulated and approved by the Office of the Gene Technology Regulator (OGTR) http://www.ogtr.gov.au/

Metcash Owned Brand Suppliers supplying products labelled as “GM/GE Free” must ensure that they have effective GM testing in place and meet the approved Supplier Program as per the “Metcash Supplier Certification Standards” guideline. This requirement also applies to any sub contracted manufacturers of the supplier, manufacturing for private labels.

Metcash private label products must not be labelled opportunistically with regard to their GM status. I.e. “GM Free Frozen Broccoli” would be classed as opportunistic as GM broccoli is not presently permitted in Australia.

All products must be handled in a manner that prevents contamination or substitution with incompatible products and fall within the scope of their GM Claim, both for manufacturer and suppliers of ingredients, including processing aids.

The Supplier must be able to guarantee via Identity Preservation (IP) systems, the integrity of all products supplied to Metcash that are labelled GM/GE free. Where products are identified as containing GM material as a result of cross contamination, the product and labelling must meet the requirements of the Food Standards Code 1.5.2. Additionally, the supplier must provide at least annually, verification testing results to support labelling declarations. This requirement for verification testing includes threshold testing of products from raw material procurement through to finished product distribution into Metcash branches.

See: http://www.comlaw.gov.au/Details/F2014C00036

Refer to www.metcash.com for further details re Supply Chain and Cold Chain requirements

General Information References on Genetic Modification:-

http://technyou.education.csiro.au/

http://technyou.education.csiro.au/module/205/genetically-modified-food-labeling

As at February 2014, there are a number of commodities which have been granted GM approval in Australia.

These are:- Soyabean, Canola, Corn (Maize), Rice, Potato, Cotton, Sugarbeets. See:- http://www.foodstandards.gov.au/consumer/gmfood/applications/pages/default.aspx

http://www.ogtr.gov.au/

http://www.comlaw.gov.au/Details/F2014C00036


http://technyou.education.csiro.au/

http://technyou.education.csiro.au/module/205/genetically-modified-food-labeling

