GS1 Recall

Australian Food and Grocery Council


GS1 RECALL BETTER, FASTER, SMARTER FOOD RECALLS

World of Food Safety 2013

Bangkok, Thailand


OVERVIEW

• WHERE IS THE PROBLEM

• CRISIS MANAGEMENT

• INDUSTRY RECALL PROCESS

• GS1 RECALLNET CONCEPT

• GS1 RECALLNET PERFORMANCE

• FUTURE DEVELOPMENTS

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“ He who fails to plan is

planning to fail”

- Winston Churchill

BE PREPARED

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INTERNAL AND EXTERNAL RISKS

• Processing & production failure

• Product contamination

• Malcontent

• Transport and logistic failure

• Economic adulteration and fraud

• Counterfeit product

• Sabotage and tampering

• Extortion

• Bioterrorism

• Global pandemic

Internal

External

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• Food recalls by attributable cause.

• undeclared allergens average 28% of total in 2008 - 2013 period

• second most common cause after bacterial contamination

• Issues: – supplier of ingredients – change to source – uncontrolled cross contact – method of analysis – label design error – packing error

FOOD RECALLS – SOURCE OF THE PROBLEM

*source, FSANZ official recall notifications as at 17 April 2013

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Microbial 33%

Foreign matter 22%

Chemicals & Toxins

7%

Processing Faults & Illegal

Ingredients 8%

Labels - undeclared allergens

29%

Other labelling

faults 1%

Australian food recalls 2008 to 2013


FOOD RECALLS – ALLERGENS

• Most common category of allergens being recalled are:

– Peanut – Dairy – Gluten in gluten free* – Egg

• Decision to recall? – consumer complaints – Implications for most

vulnerable age group

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dairy 17%

egg 9%

fish 2%

crustacea 1%

gluten 10%

peanut 23%

sesame 4%

soy 5%

tree nut 6%

sulphite 4%

multiple 19%

Proportion of allergens in food recalls 2008 - 2013

*source, FSANZ official recall notifications as at 17 April 2013


THREE STAGES - EIGHT STEPS

READINESS

Step 1 Preparation & planning to identify & respond to a crisis

RESPONSIVENESS

Step 2 Initiate response protocol

Step 3 Determine the facts and assess the risk

Step 4 Maintain confidentiality

Step 5 Decide appropriate action [ recall / withdrawal ]

Step 6 Coordinate action throughout the supply chain

Step 7 Communicate clearly and precisely

RECOVERY

Step 8 Evaluate effectiveness

Readiness Responsiveness Recovery

7


CONFIDENCE IN RECOVERY

8

+7%

-15%

Share price of companies that handle a crisis well one year later

Share price of companies that mishandle a crisis one year later

Source: The impact of catastrophe on Shareholder value. Sedgwick Group, Knight and Pretty

Effective management of the consequences of catastrophes is the most significant factor in recovery and economic impact


INDUSTRY RESPONSIBILITIES

• Documented recall plan and operational procedures • Traceability – one step forward, one step back • Train staff to execute the food recall plan • Determine the facts and assess the risk

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• Close-out recall with government authority • Evaluate food recall plan, consider effectiveness and

lessons learned to revise the recall plan if needed

Readiness

• Initiate food recall to remove food from the market • Notify relevant food business across supply chain • Notify relevant government authorities • Inform consumers via media and advertisements • Respond to queries – media / consumer hotline • Dispose or re-process recalled product appropriately

Response

Recovery


RECALL / WITHDRAWAL FLOWCHART

Is there any product on sale at retail outlets ?

YES

NO

Is the consumer likely to have the product at home ?

Health/safety concern ?

YES

NO Quality concern ?

YES Is there any product on sale at retail outlets ?

Initiate Recall Initiate Withdrawal YES

YES

Advise Retailers and Trade Alert

consumers

Cease distribution Advise Government

Authorities about recalls Identify quantity and location of stock

Advise retailers when compliant stock is available

Close-out and report

Monitor completion & effectiveness

Implement corrective action

NO

Determine disposal options

NO

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ISO STANDARD FOR PRODUCT RECALL

• ISO 10393:2013, Consumer product recall – Guidelines for suppliers, April 15 2013

– WHAT is needed to establish, implement and manage a consumer product recall program

– plan and execute cost-effective recall programs, minimize legal risks, protect consumers from unsafe or dangerous products

– apply a consistent and repeatable processes for handling product recalls within one or across multiple retail jurisdictions.

• Global Standards One (GS1) provide the HOW: GS1 standards provide globally unique product

identification, supply chain traceability and multi-jurisdictional product recall.

– Miguel Lopera, President & CEO of GS1

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CASE STUDIES

• Beef – horse meat contamination – Contamination and economic substitution

– complexity of supply chain and coordination or action – Dutch, Irish, British, French, Swedish, Greek recalls

• Chinese dairy / infant formula – melamine contamination and economic adulteration – Complexity of supply chain, traceability and laboratory detection

• Kraft peanut butter – Salmonella contamination – Wide distribution, target market high proportion of children, competitor impact

• Garibaldi metwurst – Entertoxic E.coli 0111 – causing haemolytic uraemic syndrome and renal failure

– Company denial, diverse range of suppliers, government intervention

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THE MAPLE LEAF RECALL

• 20 dead – 38 other confirmed cases across Canada/US

• $203 million spent by Maple Leaf (compensation costs)

• Consumer confidence ↓ 20 points (2007 food safety survey)

• 246 Food Recalls in 2006-2007

• Sub-optimal notification processes

• Lack of an audit trail

The president and CEO of Maple Leaf Foods said Sunday he is determined to put public health first with a massive meat recall because of an outbreak of the potentially deadly bacterium Listeria monocytogenes at a Toronto plant. August 25, 2008

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http://www.mapleleaf.com/en/


SPEED OF RESPONSE

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We live in world of real-time

Expectation that news travels much faster in a world connected by Social Web

The longer a crisis is drawn out, the more bad press and negative association

Act quickly and decisively to protect consumers


Detailed review of recall practices with industry & peak bodies

Initial development of online portal with automatic notifications – GS1 Canada

Industry Pilots with 25 food manufacturers and retailers

Further tailored deployment in the US, Canada, Australia, New Zealand, South Africa, Germany…

Industry collaboration to develop a new way of managing recall notifications

GS1 PRODUCT RECALL DEVELOPMENT

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Australia


Move from the current manual, paper form

To a standards based, secure, auditable web

based portal

Developed by ECRA in 2005

In June 2009, the GS1 Recallnet Initiative was started in Australia with leadership from the AFGC, leading manufacturers, wholesalers,

retailers and government

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Australia

http://gs1melb12/gs1recallnet/home.aspx


Ensure rapid removal of unsafe food from retail sale, catering and institutions

Decrease resource required for a recall

Time and cost efficiency to manage recalls

Increased business preparedness

Ensure competency of businesses with training and mock recall

Lower insurance premiums for businesses

GS1 RECALLNET OBJECTIVE

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Australia


Standard form and notification workflow

B2B, B2G communications, not B2C

Targeted communication with retail customers

Notification to regulators (FSANZ, ACCC)

Response notification of customer action

Audit trail reduces risk and confusion

Decreases risk of inaction

Enables Mock Recall and staff training

GS1 RECALLNET ADVANTAGE

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Australia


FSANZ/ACCC

RECEIVERS

Retailer

Broker

Food Service

Manufacturer

Wholesaler

RECALLNET NOTIFICATION PROCESS

INITIATOR (SPONSOR)

Initiator Approver

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Australia


• Web portal accessible by any browser on any device

• common GS1 standards for identification and traceability

• standard web forms with validation to ensure completeness and accuracy

• each field with “mouse over” explanations and

workflow guidelines for easy, intuitive workflow

• capability for text message as an immediate form of notification

• report back functions to show progress and status on each recall or withdrawal

GS1 RECALLNET FEATURES

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Australia


EASY OF USE

Overall 4-Step Process to issue notifications

Drop down lists, online help and definitions to minimise data entry

Mandatory data requirements

Broad set of data for multiple processes

FSANZ specific data requirements

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Australia


BUSINESS SUITABILITY

Applicable to all business in the Food & Grocery sector, from small suppliers to large multinational companies: • raw material and ingredient suppliers • manufacturers and processors • retailers and restaurants

• distributors and food service companies • hospitals, nursing homes, schools, airline caterers.

Australia

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• Established system - recall and withdrawal notifications:

– based on filling out separate forms for each customer – manual process time-consuming and error-prone

• Evaluation of GS1 Recallnet web portal: – Increased speed and accuracy of recall - withdrawal – decreases business and consumer risk – reduced cost and staff time

• Efficiency at the core of GS1 Recallnet. – portal provides a simple workflow completing a

standard notification form. – data is validated as it is being entered to ensure the

accuracy and completeness. – improved security and checking with internal

authorization

– single form rather than using multiple manual forms

DRURY ORCHARDS CASE-STUDY

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“most importantly,

we know that we are

reaching the right

people.”

Rick Drury

Australia


GS1 RECALLNET ENHANCEMENT

• GS1 Recallnet system in the Food Sector to meet requirements of Consumer Goods

– No need to subscribe for another service – Lower overall development and service

costs – Extend the reach for food recalls to

general merchandising retailers – Faster turnaround – Update existing Food Service with new

functionality and capability

• Healthcare enhancements – new functions Healthcare (upgrade of

Food service with new enhancements part of Consumer Goods project)

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Australia


LINKS AND INFORMATION

• Find out more about Recallnet, register for Webinars and access online tutorials at:

http://www.gs1au.org/services/recallnet/

Special thanks Marcel Sieira GS1australia






KIM LEIGHTON

DIRECTOR – POLICY AND REGULATION

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