Why. How. What. Ensuring Beverage Quality and Safety 11/7/2014

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1 Why Ensuring Beverage Quality and Safety Dr. Stewart Edmed 15 October 2014 How International Conference on Food for a Quality Life Jakarta International Expo Kemayoran What 2 I have been in Indonesia only 11 days and I take the invitation to speak on this subject as an indication that our Reputation on Beverage Quality and Safety-or as we like to think-food Quality and Safety is in good shape. ENSURING THE QUALITY & SAFETY OF WHAT WE EAT AND DRINK IS ESSENTIAL FOR SUSTAINING HEALTHY COMMUNITIES 3 4 1

2 Our Framework for Governance 200+ Countries Billion Servings Per Day 500 BRANDS 3500 PRODUCTS Universal Appeal Unrivalled Reach Unparalleled Distribution 20,000+ Servings Per Second 13 Million Vending Machines/Coolers 250 Bottling Partners 700,000 System Employees 1,200+ manufacturing locations 5,000+ ingredients 10,000+ suppliers 5 6 Complexity of Supply Chain Complexity of Products $47 Billion Moving From a Few Stable Products to an Ever Increasing Diverse Portfolio of New and Different Products via Innovation and Acquisition Raw Materials Production Distribution Customer/ Consumer Waste Capture Ensure Food Safety & Security Across Entire Supply Chain while: Maintaining Quality in a Rapidly Evolving Business Environment Producing Products Compliant to Increasing Regulatory Requirements & Consumer Expectations and we wish to double our business by 2020! 7 8 2

3 OVERVIEW of How Global Operating Principles Global operating principles Food Safety Mandate Quality and Food Safety Assurance Across the Supply Chain through GFSI Our Own Company Requirements HACCP Supplier Managerment Laboratory Analysis Food Safety Operating Principles focus on: Leadership Global approach Accountability Personal Responsibility Transparency 9 10 Creating a global to local food safety system Guiding principles Food safety applies to all foods for all people Food safety standards must be science based Food safety standards must be outcome based and flexible Food safety must not be used as a competitive advantage A safe, affordable food supply for all requires public/private partnerships Our food safety system responsibilities fall within a triad of stakeholders-those in the food supply chain, regulators and the consumers. FOOD SUPPLY CHAIN CONSUMERS REGULATORS

4 Global Food Safety Initiative Coca-Cola Operating Requirements Our Framework of Governance Provides Necessary Requirements: Ensures product integrity and quality, Protects our products and trademark, Supports strategies toward our 2020 Vision, Ensures safety and well-being, and Supports environmental responsibility. All suppliers must have GFSI certification by December HACCP Coca-Cola Audit Program Hazard Analysis and Critical Control Points A systematic preventive approach to food safety that addresses physical, chemical and biological hazards as a means of prevention rather than finished product inspection (reactive). Audit Global Audit Organization s scope of work: Business Units QEOSH for CBOs, FBOs, Co-packers, CPS Globally 1,200+ audits per year Transition from third-party auditors to internal auditors

5 Supplier Management Laboratory Analysis Supplier Requirements Audits by our own employees, minimum every 3 years GFSI certification for Packaging and Ingredient Suppliers SGP Audits of suppliers by 3rd parties Supplier Requirements and Specifications Batch release for high risk ingredients Ingredients Packaging Distribution Customers Recapture Global Quality Analytical Services Water Quality Monitoring (WHO) Sweetener (pesticides and metals) CO2 Quality Monitoring Ingredient Quality Monitoring Auxiliary Materials Testing Juice Monitoring (EA and AR) Trade Sample Program Product Integrity Program Advanced Beverage Analysis and Troubleshooting Consulting Training Laboratory Analysis Summary of Capability Number of Labs: 6 Total Laboratory Space: 270,000 sq ft Number of Scientists / Technicians: 255 Total Investment: $50MM Total Operating Budget: $37MM Ensuring Supplier Quality and Safety Focus : Ingredient, primary packaging Assessment: o Compliance to the regulation All of the ingredient, beverages & packaging must comply with the health and safety of local regulations o Before any new beverage ingredient is permitted for use, it is thoroughly investigated based on aspects of safety & science o Pass the safety evaluation for food additive Food Color, Preservative, Food Acid, CO2, Low/No Calorie Sweetener, Flavors, etc. Ensuring Supplier Quality and Safety Supplier Authorization and Monitoring Incoming Quality Program Storage and Transportation Secure seal to ensure raw material integrity Certificate of Analysis (CoA) and Certificate of Conformity (CoC) Release

6 Benefits for Suppliers Ensuring Manufacturing Quality and Safety FSSC drives our organization to meet the requirement of our customer, enable our business to achieve International Food Safety Standard, to mitigate food safety hazard in our process and our products and increase our customer satisfaction Food safety risk is reduced by systematic management. The number of customer complaints on food safety issue has decreased The result of customer s satisfaction survey shows that the strength of our organization is the quality of our product GFSI ( ISO and PAS for GMP standard ) including HACCP and ISO 9001 certified Global UNANNOUNCED Audit for Quality, Environment and Safety compliance Process and Equipment validation Quality Monitoring Plan ( parameter to check, acceptance criteria ) developed based on identified hazard to comply local regulation and food safety requirement Allergen program and control Traceability capability Benefits for Manufacturing Food Safety is essential to our process. FSSC22000 implementation across our supply chain helps reduce incidence of non conforming ingredients, primary packaging and products; and enables stakeholder and employee engagement in developing food safety mindset and culture. Ensuring Storage and Distribution Quality and Safety Implement GWaP (Good Warehousing Practices) Include : WH design, WH system Temperature, humidity, heat and light exposure FEFO implementation Pallet quality to avoid potential cross contamination Seal ability : package integrity which helps optimize product shelf life

7 Ensuring At Trade Quality and Safety Protect the Supply Chain Product merchandizing / display standard Best Fresh program ( managing product shelf life ) Trade sample program to check quality and food safety Implement PIP (Product Integrity Program) Audit IMCR (Incident Management and Crisis Resolution) and Consumer Response Program (CRP) - Consumer contact center - IMCR and CRP process Laboratory Analysis Why How Ensuring Beverage Quality and Safety Thank you Dr. Stewart Edmed 15 October 2014 What International Conference on Food for a Quality Life Jakarta International Expo Kemayoran

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