Food Safety… Things that keep me

up at night

Tony Fata

President

October 26, 2012

Presentation Outline

Overview of our Company Part I

How Quality and Food Safety has evolved in our business

Part II

Quality and Food Safety A Key Competitive Advantage

Part III

1

Overview of our Company Part I

2

Sager Food Products

Founded 1980 by Santo Fata

Developed original Private Label Vegetable and Olive Oils

Market Leader in Canadian Private Label Oils

Expanded into BBQ and Asian sauces as well as other products

3

Our Products

Organic

• Canola Oil

• Sunflower Oil

• Olive Oil

Blends

• Omega Blend

• Omega-3 Fish

• Infused Oils

Shortening

• Liquid

• Solid

• Donut Fry

Conventional

• Canola Oil

• Soybean Oil

• Corn Oil

• Sunflower Oil

• Peanut Oil

Specialty

• Safflower Oil

• Grapeseed Oil

• Nut Oils

• Sesame Oil

• Argan Oil

Olive Oils

• Extra Virgin

• Pure Olive

• Extra Light

• Olive Blends

4

Our Clients

5

Our Manufacturing Facility

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6

How Quality and Food Safety has evolved in our business

Part II

7

The way we used to work…

Source: I Love Lucy Property of CBS Interactive

8

Traditional Purchasing Criteria

Price R

ela

tio

nsh

ip

Service

Quality

Availability &

Assortment

9

Traditional Quality & Food Safety – Just the Basics…

Simple Manufacturing Procedures

Visual inspection of raw materials only

Hairnets

Part time QC reporting to production manager

Date coding

Limited traceability

Basic pest control

No smoking in plant

10

What changed?

Increased awareness of Food Recalls and increased public concern for food safety

11

What else has changed?

Increased awareness of Food Recalls and Increased public concern for food safety

Creation of the “new “ CFIA (1997)

Increased quality standards for the Retailers’ Control Label Brands

Increased QA awareness by Clients

Stricter industry quality standards

New accreditation schemes

12

Oil Reception

Storage Filling Cap, Label,

Case Shipping

Manufacturing Process

13

Oil Reception

Storage Filling Cap, Label,

Case Shipping

Managing Quality & Food Safety

5 micron filtres

Release of oils by QC

Bottle washing

Chemical Analysis

Monitor production environment

Lot coding

Metal detectors

Traceability of Orders

Case & pallet Identification

Monitoring of reservoirs

Product sampling

Dedicated QC reporting to Sr Mgmt

Third Party Audits

Increased Costs

14

Retained samples

Managing Quality and Food Safety

Stricter GMPs

Manufacturing process is monitored from beginning to end

Regular employee training

Traceability

Lot codes for all components

Mock recalls

Compliance

CFIA

Client audits

HACCP & GFSI (Global Food Safety Initiative)

New Legislation

15

Impact of the new legislation

Generally, we support the primary objectives of the new Safe Food for Canadians Act:

Improved food safety oversight

Increased inspection powers

Traceability

Regulating imports

Promoting exports

We do have some questions relating to: Which commodities will be regulated

Fees and red tape

16

Quality and Food Safety A Key Competitive Advantage

Part III

17

Traditional Purchasing Criteria

Price R

ela

tio

nsh

ip

Service

Quality

Availability &

Assortment

18

Today’s Purchasing Criteria

Price Q

ual

ity

Service

Relationship

Availability & Assortment

“You will get the tie”

19

Key Competitive Advantages

Price

Service Level

Product assortment and availability

Reputation

And of course…

20

Quality and Food Safety – A new barrier to entry

21

Do you have

any questions?

Avez-vous des

questions? ? ?

22

Thank you

Merci!

23