Coles Supermarkets Customer Focused Allergen Management & Labelling. Neil McSkimming Policy & Legislation Manager - Food Coles Quality Team

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1 Coles Supermarkets Customer Focused Allergen Management & Labelling Neil McSkimming Policy & Legislation Manager - Food Coles Quality Team September

2 Coles a customer focused retailer supermarkets nationwide 20 30,000 SKUs on shelf 92,000 employees Housebrand private label ( Suppliers) Focus quality product + innovation Leading market share private label sales (Latest Nielson Qtr report)

3 Coles Housebrand foods

4 Why are we changing Allergen Labelling? Meet customer needs Reduce risk of allergic reactions Variety of food choices for allergen suffers Our moral & legal responsibilities to our customers Trusted labelling Business costs & brand loyalty Avoidable costs of food recalls / withdrawals (50% of food recalls, in Australia, due to presence of undeclared allergens).

5 Why are we changing Allergen Labelling? Labelling consistency Example: Pasta sauce legal label but contrast can always be better (Result: 2 reactions with 1 Epi-pen) Would a customer reasonably expect allergen presence? Pesto Yes Chocolate Maybe Tomato-based Pasta sauce probably no

6 What are our customers asking? 201 Allergy/ Allergen enquiries in 2007 (Total 7000 product enquiries) Examples: Oils I need to know if this product has any traces of nuts because I am breast feeding and my son is highly allergic. Soup Does this have any traces of nuts, sesame seeds or egg? I have 2 grand daughters with very severe allergies.

7 What are our customers asking? Continued Trust in Allergen labelling If the label advises that there is no peanuts in the products, will this be correct information. Emerging allergens Lupin? Do your cheese slices contain lupin? My daughter is allergic to lupin, can I feed it to her?

8 What have we done for our customers? We are committed to providing a safe food offer for our customers Developed an Allergen Control Policy HB supplier requirement: Allergen Control Procedures / Policies (HACCP based) Labelling truthful, legible & consistent Compliance monitoring (Auditing & Testing program) Continuous improvement Note: Adopted the AFGC Food Industry Guide to Allergen Management and Labelling

9 Business Commitment Brand Charters Core Brand Standards Includes: BRC, SQF 1000 & 2000 level 3 or Freshcare Allergen Policy, Listeria Control Policy and Shelf life Guide Customer Value Plan Technical Policies & Supplier Guidelines Coles Housebrand

10 Supplier CD - Policies & Guidelines

11 What have we done so far? Trained our Product Technologists Allergen management VITAL tools Communicated our Policy to suppliers through P.T. visits & supplier CD Implemented AFGC Guide food labelling (from Feb 08) Testing - developed & implemented our own comprehensive testing program for undeclared allergens 3rd Party Audit included Labelling is changing - new product development (NPD)

12 Our Labelling is changing Adopt: AFGC Allergen Guide - Labelling Format

13 Voluntary labelling requirements AFGC VITAL Tools Risk Assessment Protocol May be present statements (previously May contain )

14 Our new labels phased approach e.g. NPD Summary Statement Contains Cross contact statement using VITAL tool May be present Summary statement Contains Larger 3mm font when space allows Allergenic ingredients bolded Contains May be present

15 Coles Testing Program - Allergen Purpose: Allergen labelling compliance i.e. Undeclared Allergens Precautionary statement verification i.e. May contain statement Products tested 50, Sample tests 255 Tested for: Gluten/ wheat, Peanuts, Sesame, Almond, Hazelnut, Crustacea, Total milk, Egg and Soy Results 100% labelling compliance Opportunity for our customers May contain statements only 2% (2 out of 97 tests) found to contain the stated allergen. using AFGC Allergen management & Labelling Guide & VITAL tool may reduce unnecessary precautionary statements.

16 Learnings Use of VITAL tools for decision making Crispbread product allergen tested for audit verification Soy detected; levels not requiring cross-contact statement Supplier unable to control consistently; identified factory upgrade to allow removal of cross contact statement; investment undertaken

17 What are our challenges? It s the beginning: Lack of awareness of risks in supply base - knowledge base is sometimes low; education on risk recognition and control is key Suppliers Lawyers wanting to make may contain statements Managing information between all parties (e.g. unapproved specification changes alternative ingredients used when approved ingredient in short supply. Therefore, ColesPLUS essential web enabled database)

18 Policies & Guidelines available ColesPLUS Register contact your Coles Product Developer Available: Training: Perth 19 th Sept, Adelaide, 22 nd Sept, Sydney 25 th, 26 th, 29 th & 30 th Sept, Melbourne 1 st,2 nd,3 rd,8 th, 9th & 10 th Oct, Remote dial-in 13 th Oct

19 Where to from here? Continue to implement - AFGC Guide across all products Communication Via - CD, Coles Product Developers & Technologists, and Industry Forums Training Up-skill suppliers and auditors with strong focus on effective allergen management systems Verification Supplier audits, internal audits, annual policy review and HB product testing program New Product Development - Exploring opportunities for more allergen free products

20 What do our suppliers need to do? You need to: Obtain a copy of the Coles Allergen Policy, AFGC guide Develop & implement Allergen control program Staff training Allergen Management & VITAL Register for ColesPLUS

21 Our Aspiration Coles to be a destination

22 Thank you Housebrand Quality Working Together Customers, Support & Due-diligence

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