Tag Archives: risk

May 8, 2018

Food Fraud Requires Companies to Think Like a Criminal

By Juliani Kitakawa, Veronica Ramos

In a two-question format, the authors discuss pressing issues in food fraud.

1. Where are the current hot spots for food fraud?

Food fraud activities have been known for centuries. For example, in ancient Rome and Athens, there were rules regarding the adulteration of wines with flavors and colors. In mid-13th century England, there were guidelines prescribing a certain size and weight for each type of bread, as well as required ingredients and how much it should cost. In the United States, back in 1906, Congress passed both the Meat Inspection Act and the original Food and Drugs Act, prohibiting the manufacture and interstate shipment of adulterated and misbranded foods and drugs. However, evidence and records of actions taken over those events were not officially collected.

It was not until 1985, when the presence of diethylene glycol (DEG) was identified in white wines from Austria, that authorities, retailers and consumers started to have serious concerns about the adulteration of food and the severity of its impact on consumers. In addition, there was increased interest to regulate, investigate and apply efforts to enforce requirements.

Other examples include the following:

2005: Chili powder adulterated with Sudan (India)
2008: Dairy products adulterated with melamine (China)
2013: Beef substituted with horsemeat (UK)
2013: Manuka honey where it was known that bees were not feeding from pollen of the Manuka bush (New Zealand)
2016: Dried oregano adulterated with other dried plants (Australia)

This list can go on and on.

Lately there have been more cases of food fraud. Fortunately, even limited international databases are helping to identify the raw material origins of products in the supply chain that could be more exposed to adulteration. Also, food manufacturers, brokers and agents are conducting assessments to ensure that they are buying ingredients and products from sources, where food fraud could be prevented. The following products are identified as having more adulteration notifications:

Olive oil
Fish
Vegetable products with claims of “Organic”
Milk
Grains
Honey and maple syrup
Coffee and tea
Spices
Wine
Fruit Juices

2. What can companies do to mitigate the risk?

Control measures to prevent food fraud activities include the adequate evaluation and selection of suppliers, as well as the ‘suppliers of the suppliers’. Typical risk matrices of likelihood of occurrence versus consequence can be used to measure risk—and determine priorities for assessing and putting control measures in place. Assessments can be focused on points of vulnerabilities such as food substitution, mislabeling, adulterations and/or counterfeiting, usually due to economic advantages for one or more tiers in food chain production.

Other food fraud activities include effective traceability systems, monitoring current worldwide news and notifications on food fraud using international databases (EU-RASFF, USA- EMA NCFPD and USP, etc.), and product testing.

Product testing is becoming an important tool for the food industry to become confident in sourcing raw materials, ensuring the management of food fraud control measures, fulfilling applicable legal requirements, and ensuring the safety of consumers.

Product testing laboratories offer different kinds of testing methods depending on the required output; for example, if it is possible and requested, a targeted or non-targeted result.

Targeted analysis involves screening for pre-defined components in a sample:

Liquid chromatography
Gas chromatography
Mass spectrometry (LC-MS and GC-MS)
Nuclear magnetic resonance spectroscopy (NMR).
PCR technique

Non-targeted analysis aims to see any chemical present in the sample:

Isotopic measurement-determination of whether ethanol and vinegar and flavorings are natural or synthetic
Metabolomics: Maturation and shelf life
Proteomics: Testing for pork and beef additives in chicken, confectionery and desserts

Due to the importance of food fraud for a food safety management system, GFSI published Version 7.1 of Benchmarking Requirements, including subjects on food fraud, as vulnerability assessment. In 2018 all certification schemes have incorporated such requirements and started enforcing them.

Fraud cases threat consumer trust in products and services. Companies are learning to “think like a criminal” and put in place measures to prevent fraud and protect their products, their brands and their consumers.

April 12, 2018

FST Soapbox

Foodborne Illnesses and Recalls on the Rise

By Francine L. Shaw

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The last word a manufacturer wants to hear is “recall”. During 2017, recalls involved everything from salad mix contaminated with a dead bat to hash browns infused with shredded golf balls.

Not all recalls are created equal. Both the USDA and the FDA have three classifications of recalls to indicate the relative degree of health hazard presented by the product being recalled:

Class I: A Class I recall is the most serious classification, involving a health hazard situation in which there is a reasonable probability that eating the food will cause health problems or death.
Class II: A Class II recall involves a potential health hazard situation in which there is a remote probability of adverse health consequences from eating the food.
Class III: A Class III recall involves a situation in which eating the food will not cause adverse health consequences.

During 2017, there were 456 recalls recorded in the United States. The number one reason for those recalls was undeclared allergens.

Identify the weak links in your supply chain: Attend the Food Safety Supply Chain Conference | June 12–13, 2018 | Rockville, MD | Learn moreFoodborne illnesses continue to be widespread, as well. In 2017, we saw Robin Hood flour contaminated with E.coli, Soygo yogurt with Listeria, tomatoes, cantaloupe, and ground turkey tainted with Salmonella, and even shredded coconut was responsible for causing a Salmonella outbreak in the United States and Canada. Foodborne illness outbreaks can happen at restaurants, corporate events, private parties, schools and cruise ships—anywhere and everywhere food is served.

Recalls and foodborne illnesses are 100% preventable. Incidents occur because of human error, and all it takes is one weak link to cause serious—and potentially fatal—problems. That’s it. One weak link can cause the traumatic deaths and/or illnesses of customers, and cost your company billions of dollars, loss of sales, plummeting stocks, negative media coverage and a severely damaged reputation.

When there’s a recall or a foodborne illness, products must be destroyed, which is lost revenue for manufacturers, retailers, restaurants, etc. Finding the source of the contamination can be a massive undertaking. The manufacturer may need to close all of their plants for cleaning until the source is identified, which adds up to a tremendous financial burden, and also requires significant time and effort. Class 1 recalls can cost hundreds of millions of dollars or more, to identify the source of contamination, recall products, sanitize facilities, and keep consumers safe.

It takes years for companies to establish a solid reputation, and food recalls and foodborne illness outbreaks can obliterate a brand’s reputation overnight. Consumers lose confidence much faster than they gain it, and bad news travels fast (especially in this time of social media where news spreads instantly and widely). And on top of that, there may be litigation as a result of the recall, incident or outbreak, which will result in attorney fees and potential settlements that could be very significant. If the risk of massive expense and bankruptcy isn’t enough, for the past few years, the U.S. District of Justice has been issuing fines and prison terms to company leaders involved in foodborne illnesses outbreaks and food recalls.

The government, media and general public are holding companies (and their leadership) accountable now, so you’d think that recalls and foodborne illness incidents would be on the decline but, unfortunately, that’s not the case. And with advancements in technology, why are we still having so many issues surrounding the safety of our food?

Many media outlets report that foodborne illnesses have been rising considerably in the past few years. However, according to the CDC, a study showed that the six most common foodborne illnesses have actually declined in frequency by 25% over the last two decades. Having said that, though, the severity of foodborne illness outbreaks seems to be increasing, and the number of outbreaks connected to produce has risen, as well. Some experts believe the increases may be due to better reporting processes rather than an actual increase in the number of foodborne illnesses.

There are various theories as to why foodborne illnesses may be getting worse. Some government agencies indicate it has to do with farming policies. The CDC disagrees. More widely accepted beliefs are the increase in popularity of organic produce—grown with manure rather than chemical fertilizer—which can transfer bacteria to the produce. Additionally, there’s debate that the use of antibiotics can cause bacteria that causes foodborne illnesses to become resistant.

Recalls may occur for a variety of reasons. Products may be pushed beyond their shelf life by the manufacturer, or maybe the design and development around the product was insufficient (equipment, building, etc.). Is the manufacturing facility designed in a manner that can prevent contamination—structurally and hygienically? Maybe the production quality control checks failed. Did the manufacturer conduct an adequate food safety risk assessment prior to launching the new product? Profit margins are often thin—did financial incentives prevent the company from implementing a thorough food safety program?

Getting back to the basics of food safety would reduce recalls and foodborne illnesses significantly. Manufacturers must be certain about food safety as well as the integrity of the ingredients they use. They need to be honest with themselves and understand the risks of the ingredients, processes and finished products that they are handling.

Human error is a given. It’s the corporation’s responsibility to minimize the risk. Implement ongoing food safety education and training for all employees, explaining the proper food safety protocols and processes. Develop internal auditing systems, using innovative digital tools. Get rid of the pen and paper forms, where it’s more likely for errors to occur and for pencil whipping to happen. Digital solutions provide more effective internal auditing, meticulousness in corrective action systems including root cause analysis, allergen management, and controls relating to packing product into the correct packaging format—all fundamental to keeping foods, consumers and businesses healthy and safe.

Tim Birmingham, Almond Board of California

February 28, 2018

In the Food Lab

10 Years, 0 Salmonella Outbreaks

By Tim Birmingham

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Almond Board of California (ABC) tackled food safety head-on in the wake of emerging Salmonella concerns in the early 2000s. Conventional wisdom of the time suggested that low-moisture foods like almonds presented a minimal threat, but rather than simply accepting this, ABC engaged in research to better understand the risks. The resulting best practices and groundbreaking mandatory pasteurization program developed by ABC remain the gold standard for other sectors—and drive continued food safety and quality efforts for California Almonds.

In 2017, ABC marked the 10-year anniversary of its mandatory almond pasteurization program – and, most importantly, 10 years free of Salmonella recalls and outbreaks attributed to California Almonds. The almond industry is proud of its unified efforts over the last decade, as well as the food safety record we’ve been able to achieve. However, the work to protect and improve food safety and quality continues. Looking back at our initiatives and successes reminds us of how important this work is and drives our exploration of what’s next.

Understanding and Addressing the Risk

Outbreaks of Salmonella in 2001 and 2004 raised questions and concerns about food safety and quality across industries. For California Almonds, one of the biggest challenges was determining the true level of risk. The easy answer seemed to be that risk should be low, that, based on accepted conventions of the time, pathogens should not be able to grow in almonds and other low-moisture foods. However, ABC investigated further and quickly realized that the pathogen could present a problem. The organization decided to take action and tackle Salmonella and other potential threats.

In collaboration with food safety experts and research partners, ABC began research in 2001 to better understand the prevalence and concentration of contamination in almonds, conducted in tandem with efforts to develop strategies for contamination control. ABC was able to gather enough survey data over the course of several years to show that Salmonella was indeed present in about 1% of the almonds tested at very low concentrations. This data was fed into ABC’s risk assessment work, which enabled identification of appropriate performance criteria for ensuring consumer safety (>4-log reduction).

At the same time, ABC also worked to identify effective processing technologies and the best means of validating them. A technical expert review panel was assembled to help ABC develop a plan, assess research needs, establish standards and create guidelines for the industry. Extensive work went into determining how to validate equipment, including the determination of an appropriate surrogate (non-pathogenic microorganisms) that could be used in lieu of Salmonella in the plant. Concurrently, researchers worked to determine the specific time and temperature combinations needed for a >4-log (and 5-log) reduction for a range of pasteurization processes, including oil roasting, blanching and dry roasting, some steam processes and PPO processing. ABC and partners invested significant time and effort into this research, which culminated in the development of the groundbreaking mandatory pasteurization program for Salmonella reduction, and validation guidelines.

Process Implementation and Ongoing Education

Voluntary compliance with the pasteurization program began in 2004, well in advance of September 2007, when it became mandatory. By that time, pasteurization was established as the industry norm and laying the groundwork for ongoing food quality and safety efforts. Today, ABC has more than 1 billion pounds of validated pasteurization capacity for processes that maintain the raw characteristics of almonds, including steam, moist heat and propylene oxide (PPO). It also has close to 1 billion pounds of validated capacity for processes such as dry roasting, oil roasting and blanching. All reduce the level of potential contamination in almonds without diminishing the product’s quality, nutritional value or sensory qualities (taste and crunch).

ABC also developed a comprehensive round of updates to recommended food safety practices, creating a powerful program with tools that help growers and processors achieve their desired results. These tools include Good Agricultural Practices, Good Manufacturing Practices, HACCP guidelines and Pathogen Environmental Monitoring resources.

In total, ABC has made a $5 million investment in food quality and safety research and validated more than 200 treatment processes, to date. It remains committed to this mission, maintaining close connections with the scientific and regulatory communities to stay current on food safety in the broader context as well as issues specific to California Almonds. All relevant insights and information are disseminated to growers and processors in the form of clear, practical resources, including print publications and digital communications, and workshops and one-on-one field trainings.

What’s Next: Research, Tech and Regulatory Practices

The mandatory pasteurization program is now well established, but it isn’t static – ABC continues to stay on top of the latest methods, regulations and needs impacting California Almonds. Industry investment continues to increase, particularly in processes that maintain the raw characteristics of the product. And, while much information regarding processes and technologies are company-specific and confidential, equipment manufacturers continue evolving and growing their offerings, with a particular focus on maximizing almond quality and throughput.

On the regulatory side, FSMA continues to roll out for growers and processors. ABC helps growers and other stakeholders understand which rules apply, what actions to take to ensure compliance and when specific requirements come into effect for different operations, with FSMA-related resources, Preventative Controls and Produce Safety trainings and timely information available online. Many processors and non-farm huller/shellers started 2018 already meeting FSMA Preventive Control requirements, but the number of impacted orchards and huller/shellers expanded in January as the Produce Safety rule came into effect. At this point, the almond industry and the larger community of food and beverage industries have had time to assess the impact on their stakeholders and take action to ensure FSMA compliance.

FSMA reflects the evolving role of FDA in ensuring food safety. Traditionally, FDA has taken a reactive approach to food safety. The agency now has the authority to investigate farms and facilities regularly to ensure food safety regulations are followed. For the first time, growers and huller/shellers falling under the farm definition may be audited by FDA or FDA-designated agencies. While some growers may choose the exemption option, ABC encourages almond growers to understand the rule’s requirements and develop food safety plans appropriate to their farms. It will be new and uncertain territory for some, but with the FDA’s proactive approach, staying ahead of the curve on food safety and quality will be beneficial.

Currently, almonds are the only tree nut with a mandatory pasteurization program and defined performance criteria accepted by FDA. They have paved the way for validation of other tree nuts, and those industries should also consider implementing appropriate preventive controls for Salmonella. ABC’s work can be considered a road map for other nuts and low-moisture foods, but what works for almonds will not always work for other foods. Research specific to each type of nut needs to be conducted to uncover pathogen prevalence and concentration, as well as pathogen/surrogate resistance to various processes. We will continue to be proactive, as well, evaluating current practices and engaging in research to improve how we understand and control microbial contamination in almonds.

Even with a track record to take pride in, the responsibility and work of food quality and safety never end. We will continue to update and evolve programs, not only as a function of compliance, but to protect the almond customers who support us every day.

February 14, 2018

Registration Open for 4th Food Safety Supply Chain Conference

By Food Safety Tech Staff

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Do you trust your suppliers? What about your supplier’s suppliers? Strengthening the links within your supply chain can be a challenging task, but it is necessary with FDA, and FSMA, recognizing the risk that exists.

Key topics, including vulnerabilities, inspections & audits, traceability, supplier verification, transportation, and recalls will be addressed at the 4th Food Safety Supply Chain conference from June 12–13 in Rockville, MD. The event will be held at the U.S. Pharmacopeial Convention.

This year’s agenda will be posted by March 1. In the meantime, the following are some topics covered at last year’s event:

Industry Experts Weigh in on Supply Chain Issues

Import Safe Food, Stay Out of Trouble with FDA

February 8, 2018

Pathogenic Contamination Among Top Food Safety Hazards for Cannabis

By Steven Burton

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“As more people gain access to and ingest cannabis products, it’s only a matter of time before food safety becomes a primary concern for producers and regulators,” says Steven Burton, CEO and founder of Icicle Technologies, Inc. Without federal regulation, there are so many questions about the food safety hazards associated with the use of cannabis in food products. In an article published in Food Safety Tech’s sister publication, Cannabis Industry Journal, Burton discusses the Top Four Safety Hazards for the Cannabis Industry, which includes pathogenic contamination from pests and improper handling.

Erin Mann, Food Protection and Defense Institute

November 7, 2017

FST Soapbox

Improving Food Supply Chain Resilience Through Proactive Identification Of Risks

By Erin Mann, MPH

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There was a time not long ago when most of the food Americans ate came from close to home. Consumers primarily ate what was in season and there were less processed and manufactured foods in general. That has all changed. Our world is more accessible, people are traveling more frequently, and as they do, they are also expanding their palates. Consumers can have Thai food for lunch, Ecuadorian for dinner, and enjoy fresh produce year round regardless of the growing season near home. Similar changes in diet and consumption patterns can be observed across the world. This global “shrinking” (globalization) demands longer and more complex food supply chains to move product and provide ingredients.

Attend the Food Safety Supply Chain Conference | June 12–13, 2018 | Rockville, MD | Learn moreTo support changes in consumer demands, food supply chains that support movement of ingredients and products from farm to fork are becoming increasingly global, dynamic and complex. These supply chains are comprised of complicated networks of farms, production or processing facilities, and storage and distribution channels with product moving via road, rail, ship and air across the globe. These supply chains provide the global food and agriculture sector with efficient access to suppliers and consumers around the world. Unfortunately, however, food supply chains are vulnerable to disruptions such as natural disasters, transportation hazards, cyber attacks, product contamination, theft and unexpected shutdowns of key supply chain nodes. Any of these disruptions could lead to significant public health and economic consequences.

Many supply chain risks and vulnerabilities are directly related to the way a supply chain is constructed. First, there are often several degrees of separation between the point of production and the source of raw ingredients with limited visibility of the pathways in between. Spices are an illustrative example of this supply chain challenge. Spice supply chains are notoriously long with product moving through a complex web of farmers, brokers, processors, wholesalers and exporters. By the time a spice reaches a manufacturer for use in a processed food product, the manufacturer may have adequate visibility and information only about the supplier from whom the spice was most immediately purchased. The manufacturer may not have good visibility of supply chain components further upstream. Depending on the nature of the manufacturer’s customers and distribution channels, the same manufacturer may also have limited visibility of downstream supply chain components. This limited visibility up and downstream could be true for every step of the chain. Without end-to-end supply chain visibility, stakeholders cannot adequately assess risks related to supplier quality and reliability. Tracing product forward and backwards becomes a very difficult task. In the event of a supply chain disruption or contamination event, limited supply chain visibility not only impedes mitigation and response efforts, but also exacerbates the event.

Second, supply chains are often constructed in such a way that certain components of the supply chain are more critical than others. For example, a supply chain may rely upon a single manufacturing plant through which all ingredients and all finished product are routed; a shutdown or failure at that point in the supply chain would greatly impact normal operations. Likewise, a supply chain may rely exclusively on a particular transportation route; a disruption to that route from a disaster could significantly delay delivery of product to consumers. A supply chain may also source the majority of a raw ingredient from a single supplier; a disruption to that supplier could force a producer to scramble to identify and vet alternative suppliers.

CRISTAL (Criticality Spatial Analysis). Photo: Food Protection and Defense Institute

Forward-thinking approaches are needed to address supply chain challenges related to supply chain complexity and poor visibility. While some supply chain risks cannot be avoided entirely, understanding supply chain structure and proactively identifying supply chain hazards based on the structure of the supply chain will ultimately improve supply chain resilience. For example, end-to-end, geo-spatial mapping of the supply chain of a particular product line would allow stakeholders to identify risks such as exclusive reliance upon a single supply chain node. However, such an approach is not easy. End-to-end geo-spatial mapping of a supply chain requires data and information from multiple stakeholders. Sharing information across organizations is both culturally and logistically difficult.

To address these challenges, the Food Protection and Defense Institute (FPDI) has developed technology that allows private food companies and the government to document, visualize and compare supply chains in support of risk and criticality assessments, mitigation efforts and event response. With support from the Department of Homeland Security, FPDI developed CRISTAL or Criticality Spatial Analysis. CRISTAL is a geo-spatial web application that allows organizations to document supply chains from end-to-end, including supply chain components owned by other entities such as suppliers or distributors. Additionally, CRISTAL allows users to visualize the geo-spatial structure of a supply chain alongside hazard layer data, including cargo theft and natural disaster hazards. By increasing supply chain visibility, CRISTAL ultimately facilitates supply chain documentation, product tracing, and event response. Finally, CRISTAL supports efforts to identify where mitigation resources are most needed during potentially catastrophic supply-chain failures.

More information about the CRISTAL technology is available on the FPDI website. Organizations interested in using the technology may contact FPDI at fpdi@umn.edu.

August 8, 2017

As Food Fraud Grows, More Comprehensive Tools Emerge

By Maria Fontanazza

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Many foods, from honey to olive oil to spices, fall victim to fraudsters each year. Often a time-consuming process, conducting research about each product or ingredient can involve combing through many websites and databases for information. To save companies from doing all that heavy lifting, newer tools are aggregating the data into single platforms. One most recent example is the World Factbook of Food, developed by the Food Protection and Defense Institute (FPDI) and funded by the U.S. Department of Homeland Security. The tool was released earlier this year, and Erin Mann, project manager at FPDI, explains how it is helping food companies mitigate the risk of food fraud in their supply chain.

Food Safety Tech: What are the fundamental advantages of using the World Factbook of Food and how is it different from other tools that companies can use to assess their risk?

Erin Mann: The World Factbook of Food is a central reference location for data related for food. It pulls together a lot of high quality data points from a lot of different sources into a single tool.

Companies can look for information on a lot of different food products and a lot of different sourcing regions and countries. We have more than 125 food profiles (and growing) and more than 75 country profiles (also growing). [There are 10 food profiles and 10 country profiles that are available for free] Each of the profiles covers a large number of topics. On the food profile side, there are data points on how the product is used, codes, information about standards and grades; and a lot of data about trends and consumption, production and trade patterns; there’s information about processing and supply chain characteristics; and another section about food defense and food safety.

It’s a resource that can be used anytime a company needs to get up to speed quickly on a product, because it covers a lot of different types of risks. If a company wanted access to information related to risk about past economically motivated adulteration (EMA) or intentional adulteration (IA) incidents, the Factbook has that. There’s also data on past recalls, information about major producing countries around the world—a wealth of information in one place that companies can use broadly for risk assessment—basically any use case where they want access to a lot of information from lots of sources, the Factbook can be a great place for that.

FST: Can you expand on the food defense component of the Factbook?

Mann: One of the primary sources that we pull for the food defense section comes from a complementary tool that we use here at FPDI—our food adulteration incidence registry, called the FAIR tool, which is a database of past EMA and IA incidents. On the technology side, the Factbook is directly linked with the FAIR tool. If you’re looking at a profile for a particular product, it will access the FAIR tool and display relevant incidents for that product. It won’t give you access to the entire FAIR database, but it will give you a high-level summary of what food defense incidents have happened in the past with the product, where they happened, the year and a summary.

What we’ve seen with the FAIR tool is high incidents of food adulteration in products like oils, spices, seafood—those are the major products impacted by food adulteration, particularly EMA.

Food Adulteration Incidents Registry (FAIR) tool

FST: From what sources are the data curated?

Mann: There’s a source list at the bottom of each profile and all the data points are referenced throughout. In terms of a high-level description of where we pull data from, it includes the USDA, FDA, Codex, the U.S. International Trade commission, United Nations data, and other industry and trade groups. It also pulls data from the World Bank and the FAIR tool.

3 Ways to Make Transparency a Successful Business Strategy

By Katy Jones

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Transparency. It’s been top of mind for years. But because of the shift in public’s interest in healthy ingredients and where they come from, businesses are responding by making transparency part of their strategic business initiatives. This includes providing a complete list of ingredients, known allergens and their nutritional information. They also want to know where and how products are sourced and handled. If this information isn’t available, it creates an air of distrust with today’s savvy consumers.

FoodLogiQ, FoodSafety Tech — **EXCLUSIVE VIDEO:** Food Safety Tech recently spoke with Katy Jones about consumer preferences and their expectations during a product recall. **Watch the video**

This information is becoming increasingly mandatory, not just because of FSMA and other regulations but because customers are demanding it. With globalization and increased imports from foreign suppliers, regulations as well as consumer expectations for food quality and safety has dramatically risen in the past few years. It is now one of the most critical ways you can earn consumer trust and loyalty. Here are three ways to incorporate transparency into your business plan.

1. Supplier Engagement Makes Good Business Sense

To offer transparency to customers, you must engage with your suppliers. You can’t offer your consumers the transparency they are demanding if you are not getting the information from your suppliers. Plus, it is critical to know who your suppliers’ suppliers are to mitigate risk.

Leveraging a supplier management technology solution will save you time by automating processes such as supplier onboarding and will help you keep track of documents, certificates and audits that you require.

It also helps support supplier communications so you can establish an open dialogue, which is critical when problems arise. You can’t expect a supplier to fulfill your requirements around safety and brand promise if you aren’t open about your expectations. It’s a two-way relationship that can make a huge difference in your business.

FoodLogiQ’s recent survey, “A Food Company’s Guide to What Consumers Care About in the Age of Transparency” (click to enlarge)

2. Label Transparency

FoodLogiQ recently published a survey that revealed supply chain transparency by food companies is a critical driver in consumer purchasing decisions and brand loyalty. Fifty-four percent of respondents want as much information as possible on the label, and nearly 40% want country of origin, allergen alerts and GMOs all identified on the label.

In this survey, those who identify as “caring deeply about the quality of food they eat,” are overwhelmingly in favor of more transparent labeling, with 86% of that demographic expecting country of origin, allergen alerts and genetically modified ingredients to be noted, and they ask that “as much information as possible” be included on the label (or menu) itself.

If a brand doesn’t provide this information, consumers will look elsewhere for it. This puts companies in a vulnerable position.

3. Building a Transparent Culture and Backing Marketing Claims

Food safety professionals and the marketing department are now working together to communicate their transparent farm-to-fork story. This cross-departmental collaboration will not only meet business goals but the teamwork strengthens the overall business.

To maintain a positive reputation, it starts with being open and honest, and engaging your customers in an authentic way. And once a brand establishes itself as being transparent, consumers are more open to trying other products from that company. Building a culture of transparency that is focused on safety and quality can be an incredible marketing advantage and give food companies an edge over competitors.

A recall, stock withdrawal or a report of a foodborne illness can wreak havoc on a business. But the worst thing you can do is hide it. If a brand has ever been under fire for false information, low-quality ingredients or a major recall, consumers know. They are more informed about your products through their online research and social media. It is better for consumers to receive this information directly from the brand than through a third-party site.

If a company is faced with a recall, it is important to involve multiple business units that each have a stake in resolving the issues as quickly as possible. Include the marketing department in your food safety plan and preventative controls so if you are faced with a recall, you have a communication plan in place.

How to Meet Transparency Business Goals

For food companies to provide this transparency, protect their brand image and earn their customers’ trust, they need full end-to-end supply chain traceability technology to modernize their processes and access real-time data. Centralizing your data creates a single source of truth to make data-informed decisions and remain compliant, all while empowering consumers to make safer, more informed decisions about the food they eat.

The good news is that food companies making transparency a priority are being rewarded by customer loyalty, as consumers are willing to pay more for those products. The previously mentioned survey revealed that 88% of respondents—from all demographics, Millennials to Boomers—were willing to pay more for healthier foods including those that are GMO-free, have no artificial coloring/flavors and are deemed all natural.

Transparency transcends all categories: From restaurant menus to labels on consumer package goods. So no matter what business you are in, implement these strategies to systematically impact on your bottom line and keep your food chain safe.

June 2, 2017

FST Soapbox

Keeping Food Safe using IoT in the Digital Supply Chain

By John Sammon III

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Technology advancement continues to mature at a fairly predictable rate in terms of processing speed, size, battery life and perhaps most importantly, costs. Whereas 100 years ago the telephone, followed by the radio, were just being invented, today we are steadily marching toward a 100 gigabyte / second transfer rate. These conditions are what originally launched the Information Age and it now clears a path for 50 billion connected devices in the next three to five years.

To me, “Internet of Things” (IoT) is one of those catch-all phrases that encompasses so many different technologies, value propositions and solution sets. This means that when we discuss IoT, we can be talking about a device in your home or a device used to monitor the stability of a section of the Alaskan pipeline between Coldfoot and Deadhorse. Therefore, we should condense the topic at hand down to cold chain logistics and IoT.

The cold chain is an uninterrupted supply chain we control so temperature is maintained to ensure both quality and safety of food. This includes all segments of food production, transport, warehousing, distribution, handling, preparation and storage.

Environmental conditions are essential in both quality and safety for proper food logistics, and therefore this industry was among the first to proliferate IoT. It began 15 years ago in the “over the road” and “rail” transport space when companies began to use satellite and cellular technologies to track and monitor the status, well-being and health of temperature-controlled cargos. The real-time nature of these solutions and the cloud-based historical records were the foundation of IoT as we understand it today.

Whereas these earlier solutions focused on the segments of supply chain where risks are most high, today IoT technology is implemented from source to destination. Smart devices are showing up all over the supply chain. These independent devices can work independently or collectively to capture and even halt food contamination before it happens. Temperature is essential, but more and more food safety IoT will detect gases, along with other environmental conditions that can predict and accurately report the evidence of pathogens.

But what is driving the IoT adoption? How do these disparate technologies come together in a cohesive way to build solutions that are proficient and economical? And perhaps most importantly, what is next?

Why

Consumer demand for fresher, safer and responsibly sourced foods are driving much of the IoT adoption. More retailers are focusing on customer loyalty and trust as key metrics for success. So whether it is blueberries 12 months out of the year, or whole meal replacements such as a vegetarian lasagna, people want more than low cost; they= want transparency and quality. This demand drives behavior throughout the supply chain.

How

The technology required to make this happen is ubiquitous and indeed, fascinating. Starting with the sensor technology first, we are seeing more “things” that can detect. In addition, the intelligence embedded in the devices provides accurate performance while preserving battery life, by reporting on exceptions.

The delivery of information has improved with multi- modes using cellular, Wi-Fi, Bluetooth, RFID, and various other scan/read technologies. Wireless is everywhere.

We are also seeing the explosion of APIs in all IoT solution sets. API stands for “Application Programing Interface”. Web APIs are a framework that allows for future functionality within applications. APIs allow the building of HTTP services that are compatible with a broad range of clients (sensors, mobile devices and browsers). This framework sets a standard for how different components of software should interact with one another.

The development and advancement of cloud technology acts as the backbone of all IoT. These central repositories of data (which becomes information) virtually never go down, are endlessly scalable and elastic without which there would be no internet.

Lastly, we have mobility. Mobility can be wearable or a handheld. The app plays a critical role in the proliferation of IoT. Smart devices are essential to solutions when stakeholders are everywhere throughout the supply chain. The application to see real-time information and track progress lives in Google Play and iTunes stores. Mobility coupled with wireless allows for real-time alerting and alarming directly to responsible stakeholders.

What’s Next

I believe that we will begin to see more “Solutions of Solutions”: Systems created out of many different technologies that when brought together generate widespread value.

As an example, global sourcing coupled with sophisticated, informed consumers has yielded technologies such as IBM’s Blockchain, which is designed for a single version of truth about a product from source to origin. Similar to Bitcoin, this technology allows for a decentralized exchange of valuable information whereby all participants benefit in the sharing of data.

The largest U.S.-based retailers are investing millions of dollars in these traceability technologies, not just to protect their brands, but because consumers expect transparency, demand quality and seek sustainability. The laws of economics (supply and demand) dictate that those that source these foods, such as meats, fishes, fruits and vegetables, must then also invest in technologies that share data.

However, because the Blockchain concept is designed such that no one single entity controls enterprise-wide information, the entire supply chain becomes transparent, which yields trust that everyone owns access and visibility. Each source of data in the chain is interdependent upon other sources, therefore all are compelled to behave rationally and responsibly. At its foundation, Blockchain is a database of information from (n) sources whereby a decentralized structure yields shared values for all stakeholders.

April 7, 2017

Does Your Risk Control Program Meet FSMA’s Demands?

By Food Safety Tech Staff

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Identifying, prioritizing and managing supply chain risks is critical to maintaining FSMA compliance. Under the Preventive Controls rules, food companies must implement a hazard identification system for any known or foreseeable hazards. During an upcoming webinar, David Acheson, Ph.D. and Miles Thomas will discuss how data can help companies manage supply chain risk, methods for analyzing and prioritizing hazards, and mitigating risk to achieve FSMA compliance. They will also shine a spotlight on global trends in food safety and authenticity threats.

Learn more during the webinar, Don’t Get Blindsided by FSMA! April 27, 2017, 1 pm ET.

1. Where are the current hot spots for food fraud?

2. What can companies do to mitigate the risk?

Understanding and Addressing the Risk

Process Implementation and Ongoing Education

What’s Next: Research, Tech and Regulatory Practices

1. Supplier Engagement Makes Good Business Sense

2. Label Transparency

3. Building a Transparent Culture and Backing Marketing Claims

How to Meet Transparency Business Goals

Why

How

What’s Next

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