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FOOD SAFETY CONCERNS WITH CHOCOLATE. “Keeping Your Sweets Safe”. THE HERSHEY COMPANY. Leading North American manufacturer quality chocolate and non-chocolate confectionery chocolate-related grocery products leader in the gum and mint category Global Manufacturing Operations
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FOOD SAFETY CONCERNS WITH CHOCOLATE “Keeping Your Sweets Safe”
THE HERSHEY COMPANY • Leading North American manufacturer • quality chocolate and non-chocolate confectionery • chocolate-related grocery products • leader in the gum and mint category • Global Manufacturing Operations • Manufacturing facilities in US, Canada, Mexico, Brazil, China, India and Malaysia
FUN FACTS • We use more than 1 BILLION pounds of milk a year • almost 2 pounds of milk to make one pound of milk chocolate • We make over 3.5 BILLIONbars per year • We make 13.6 BILLIONkisses per year across all our kiss shaped brands! • 4 days of production would make enough Kisses to stretch from New York City to Los Angeles • 1 day of Syrup production would make 12.2 million 8 ozglasses of chocolate milk • 1 week of production would make enough snack size bars to completely cover 4 football fields
POTENTIAL FOOD SAFETY RISKS • Salmonella • Chocolate Products • Cadbury 2006 • Nesquick Chocolate Powder 2012 • Chocolate Marshmallow Eggs 2013 • Peanut Products • Con Agra Peter Pan Peanut Butter 2007 • Peanut Corporation of America 2008
POTENTIAL FOOD SAFETY RISKS • Listeria • Dairy Ingredients • Allergen Concerns • Peanut, Almond, other Tree Nuts, Milk, Soy, Wheat • Foreign Material • Metal on Metal in processing equipment
WHY IS FOOD SAFETY IMPORTANT • Consumer well being • Hershey is an $8 billion brand, and growing • Global Distribution • Our brand is our name
WHO IS RESPONSIBLE FOR FOOD SAFETY • Everyone • Identify the “right” thing to do • Train people on the “right” thing • Practice the “right” thing • Empower employees to do the “right” thing • “Doing The Right Things Right Everyday”
CHALLENGES TO FOOD SAFETY • Global Manufacturing and Distribution • Standards differ • Infrastructure differs • Cultures differ • Food Safety is equal • Diverse product line presents different challenges
GLOBAL FOOD SAFETY SYSTEM • Product Excellence Program • HACCP Based Approach • Food Safety • Food Quality • Regulatory Compliance • Assure Safe, High Quality Products Across the Supply Chain • Sets expectations, defines programs
PRODUCT EXCELLENCE PROGRAM • Identify • Product quality and safety concerns • Control • Develop systems to control product quality / safety concerns • Monitor • The effectiveness of the controls
PEP IS THE WAY WE OPERATE PEP INNOVATION SUPPLY CHAIN GOVERNANCE
DRIVERS OF INNOVATION • New manufacturing facility • New manufacturing process • New products • New market • New regulations • New technology
DESIGN QUALITY IN • Overlays the innovation / commercialization process • Quality Design Review • New Material / New Product / New Process • Product Qualification • Commercialization
NEW MATERIAL / NEW PRODUCT • Product review • Recipe development • Regulatory review – where manufactured and where sold • Label review • Dietary concerns – Kosher, Halal • Key requirements identification • Claims – Peanut Free, Sugar Free, Reduced Fat • Certifications – Organic, Rain Forest Alliance • Unique product attributes • GMOs
NEW PROCESS • Process review • Process Controls • Product Attributes • Product Safety • Equipment review • Sanitary Design • Ability to clean effectively • Change over capability
PEP IS THE WAY WE OPERATE PEP INNOVATION SUPPLY CHAIN GOVERNANCE
SUPPLY CHAIN • Ingredient • Packaging • Receiving • Manufacturing • Shipping • Warehouse • Distribution • Retail / Consumer
SUPPLIER QUALITY PROGRAM • Supplier Qualification • Supplier Approval Program • Ingredients • Packaging • Food Contact Packaging - qualify as an ingredient • Equipment • Contract Services
RECEIVING • Inbound Inspection Process • Load Conditions • Carrier Conditions • Ensure Correct Material, Approved Supplier • Sampling, Certificate of Analysis
MANUFACTURING • Prerequisite programs form the foundation • Premises • Food Defense • Facility • Structure • Utilities – air, water, steam, lighting • Chemical Compliance and Control • Integrated pest management • Waste management and disposal
MANUFACTURING • Prerequisite programs form the foundation • Equipment • Product protection – physical contamination control • Cleaning and sanitation • Calibration • Allergen Control • People • Dress and grooming • Plant practices • Training
MANUFACTURING • Master Control Plan • Food Safety • Food Quality • Regulatory Control • Key control points • Chemical, Biological, Physical, Regulatory • Monitoring, Corrective Action, Verification, Validation
SHIPPING • Program modeled on the Sanitary Food Transportation Act of 2005 • Sanitary Transportation • Controlled Shipping Conditions
WAREHOUSE / DISTRIBUTION • Facility Design • Construction style and material • Appropriate Storage Conditions • Integrated Pest Management Program • Stock Rotation • Controlled Storage Conditions
RETAIL / CONSUMER • Customers - Confection Protection at Retail • Warehousing and Storage • Environment • Pest Management • Stock Rotation • Customer and Consumer Feedback
PEP IS THE WAY WE OPERATE PEP INNOVATION SUPPLY CHAIN GOVERNANCE
GOVERNANCE • Program and Policy oversight • Shelf life • Product coding • Traceability • Incubation hold • Recall program management, mock recall activities
GOVERNANCE • Assessment program • Internal manufacturing facilities • Compliance to GFSI certification requirements • Assessments across the supply chain
PEP IS THE WAY WE OPERATE PEP INNOVATION SUPPLY CHAIN GOVERNANCE
WHAT DOES FOOD SAFETY MEAN TO HERSHEY “Doing The Right Things Right Everyday” • Identify the “right” thing to do • Train people on the “right” thing • Practice the “right” thing • Empower employees to do the “right” thing