Food Safety and Labelling for Retailers and Suppliers

Retailer Supplier Co-Operation Andy Papastefanou | 11 April 2018

Congratulations You're an Entrepreneur- You have made this difficult decision, and you know that the path ahead is not going to be easy But –You must be prepared for supplying the major chains, because WE have an obligation to protect consumers So do your homework and research

Basic Considerations on your path To a successful product listing

Vat Registration Refer to SARS website for VAT requirements- Valid Tax invoice All invoices must have Name Address Vat registration Number Contents Word Tax invoice clearly indicated Serialised Tax invoice number Date Accurate description of goods Qty/Vol supplied Selling price Vat Charged Total consideration

Food Safety

Food Safety • CGCSA-FOOD SAFETY INITITIATIVE IS A GLOBAL MARKETS PROGRAMME to build capacity, where suppliers may progress towards a food safety certification • All suppliers must have a Certificate of Acceptability for their premise from the dept of health ( reg 962) • All Farmers must undergo a local GAP ( Good agricultural practice) inspection at foundation level • If there is a processing facility at the farm, then an additional assessment is required • - basic food safety audit for low risk items • For high risk or highly processed food ( e.g. cut vegetables, frozen foods, dairy and perishables) • will automatically be expected to be assessed at the intermediate level • Once you are at this level , you are expected to stay at that level as a minimum • Suppliers at Intermediate level are encouraged to work towards a Global Food Safety recognised Food safety certification • e.g. FSCS 22000 ( recognised by GFSI to provide a framework to effectively mange food safety responsibility) • BRC Global standards ( designed to assist with legal obligations) • www.mygfsi can assist with recognised schemes

Food Safety Single Food Audit System( Global Markets Capacity Building ) Food Safety Initiative of CGCSA with Major Retailers have developed a food safety audit as an entry level to fair trade Objectives Reduce number of food safety audits Ensure all food suppliers meet food safety requirements Align with International standards to reduce food safety risk Enhance consumer confidence in food industry Enable cost efficiency though common assessments Enable markets to achieve certification create beneficial partnerships Principle is a three tier Global market protocol Basic Level Intermediate Full Certification

Food Safety • All regional suppliers to SPAR of Foodstuffs, Beverages and Pet food must comply to ensure the supply of safe food to our customers • All Major retailers in South Africa recognise the intermediate Level requirement , as a Minimal Safety Assurance • It levels the playing fields around supplier assessments and audits • It provides a level of standardisation • Removes the burden for suppliers who are subjected to the costs of multiple audits against varying standards

Food Safety-Global Markets assessment providers

Labelling • Consumer protection act and Food labelling Regulations are required to ensure descriptions are not misleading and to provide transparent and detailed info on • ingredients • Nutritional analysis • Source of ingredients • Allergens ( peanut) and additives • Expiry dates • Storage instructions • Traceability of product • Net contents in metric units

Labelling • MANDATORY LABELLING • WHEN: • COMPOSITION OF ITEM HAS CHANGED SIGNIFICANTLY • NUTRITIONAL VALUE DIFFERS SIGNIFICANTLY • STORAGE, PREPARATION OR COOKING DIFFERS SIGNIFICANTLY • HYPERSENSITIVITY – TRANSFERRED FROM • CRUSTACEA • EGG • FISH • GROUNDNUTS • MILK • SOYA • TREE NUTS • WHEAT AND TRITICUM SPECIES / CROSSBRED • VARIETIES • VEGETARIAN / RELIGIOUS ISSUES • DERIVED FROM OR CONTAINS GENETIC MATERIAL OR • PROTEIN FROM A FOREIGN ANIMAL SOURCE

Labelling • The following words may not appear on any food product: • x % fat free. One must state ‘contains xx % fat’. • Nutritious or Goodness or other words implying the same thing. • Healthy / healthful / health or other words implying the same thing. • Wholesome / complete nutrition / balanced nutrition and other words implying the same thing. • “Sugar free” and “Fat free” are only allowed, if specific conditions, as set out in the Food Labelling Regulations are met. • “Suitable for those with diabetes”, “diabetic friendly” or words with a similar meaning, may technically not be used. • All descriptive words must be carefully chosen to ensure that no implied claims are inadvertently made and that descriptions such as “home made” or “natural” etc. fall within the CODEX definitions.

EAN Code • EAN codes supplied by GS1 is a single standard Retail identification • EAN (European Article Number) is used worldwide for retail product marking. Developed to be globally accepted • EAN barcodes comprises of an additional digit on each variant so that countries around the world can be included in the system – • EAN-13, the original format, with 13 digits; • EAN-8, the compressed version for usage on small products, with 8 digits. • The makeup of EAN barcode digits consists of the company number, item reference and single check digit.

Product Data • Suppliers need to List and maintain their static data on the • SOUTH AFRICAN PRODUCT DATA CATALOGUE ( PDC) • Benefits • Listing & maintaining static data on one data base for all major Retailers • Support from PDC to list as they understand what Retailers data requires • Reduce costs due to inefficient process caused by bad data • How • Obtain an account from the PDC • Log onto the PDC internet site • Content • Consumer EAN code • Description • Pack size • Height/Width/Depth • Gross weight • Dangerous item • Shelf life

E- Commerce • Introduction of paperless system • Invoices transmitted Electronically via Electronic schedules • EDI transactions –Orders, Pricing etc • SPAR operates through Gateway ( Vodacom) Electronic management system

Further requirements • Do your market research- not the Buyers job • CHEP pallet agreements • Product service level agreement • Delivery vehicles must conform to minimum standards

What a Buyer looks for • The Market is inundated with new products and with limited shelf space, so we reserve the right to manage our shelf space as we see appropriate • Is your product going to grow the Category/market • What is the unique product offering or is it simply a “ me too” item • We look for products that provide margin, has a consumer benefit, or is different • What is your marketing plan to grow your product • Do you have a sales and merchandising team to back you up • Above and below the line support • Pricing vs opposing products

What a Buyer looks for • All products reviewed for • Market position ( product attributes / offerings ) • Brand equity • Shelf profitability • Price comparison with opposing products

Retailer Enterprise Development

Retailer Enterprise Development Text Here

Thank you

Food Safety and Labelling for Retailers and Suppliers