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The evolving        Challenges and
                            opportunities
    landscape of food
       certification
                        Dr Thom KLEISS, Head
                           Nestlé Quality Audit




1
Nestlé at a glance: Key figures


           • CHF 108bn sales in 2009

           • EBIT CHF15.7bn

           • Over 280,000 employees

           • 449 factories

           • operations in 83 countries




2
Sales by Region
Percentage of Total F&B Sales in 2009




                              Europe
                              35.8%
    Americas
     44.3%
                                        Asia, Oceania, Africa
                                               19.9%




3
4
The evolving     Challenges and
    landscape of food    opportunities
       certification

     • Accreditation

     • Certification

     • Advantages

     • Landscape

     • Challenges

     • Opportunities


5
Accreditation - Nestlé


   • Nestlé Specialized Laboratories (approx. 30): ISO 17025
   accreditation compulsory

   • Nestlé Factory laboratories (approx. 400): move to ISO
   17025 accreditation

   • Business partners laboratories: encourage ISO 17025
   accreditation
Advantages -benefits


     • Business results!

     • Global acceptance of analytical results

     • Basics of management system in place

     • Formal sign-off on management system - compliance

     • Benefit of the outsider’s eye

     • Mutual acceptance standards – mechanisms - terminology

     • Avoid waste – fine tune - Nestlé & partners

     • Consumer and customer - stakeholder communication

     • Preferred partnerships
Food certification landscape
Food certification landscape (cont’d)


    • USA large retailers certification initiatives

    • Global acceptance of ISO 22000 and PAS 220 – FSSC 22000

    • Global Food Safety Initiative (GFSI) – equivalent standards

    • Proprietary audit standards on their way out (lesson: ‘Peanut
    Cooperation of America’)

    • Customer internal supplier standards focus on high risk – low
    risk can be handled by certification - less work – win/win for both
    Nestlé and supplier
Nestlé                               Potential hazards of the material


example                          Nestlé HACCP hazard assessment



                                               Significant
                                                hazard?
                           YES                                              NO




                           Who
                         controls?
        Vendor                                               Nestlé

   HIGH RISK Vendor                                                   LOW RISK Vendor

External certification                                          External certification
Approved CBs – GFSI                                             Approved CBs – GFSI
PLUS: Nestlé signs off
on control measures
Challenges


  • Too many standards under development (GFSI benchmark)

  • Some industry players going back fully to own (customer)
  standards

  • Quality (and quantity…) of Certification Bodies – evolving role
  of Accreditation rules and Bodies

  • Value of certification – ‘guarantee’
12
Opportunities


 • Develop food industry consensus on certification standards,
 including the right accreditation – fair choice but with limits

 • Accreditation bodies take more ownership of quality of certification
 bodies (now often: standard owners)

 • Industry players partner up with Certification Bodies – make it work

 • Certification industry needs to consolidate on scale and quality (of
 audits – auditors)
Key messages


 • Accreditation and certification are here to stay – we need it -
 they help in the basics – compliance!

 • Accreditation and certification show results – for companies –
 for trade – for customer and consumer




 • Credibility of programs requires industry consensus - quality
 assurance – consolidation – transparency - continuous
 improvement
15

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Changing landscape of certification

  • 1. The evolving Challenges and opportunities landscape of food certification Dr Thom KLEISS, Head Nestlé Quality Audit 1
  • 2. Nestlé at a glance: Key figures • CHF 108bn sales in 2009 • EBIT CHF15.7bn • Over 280,000 employees • 449 factories • operations in 83 countries 2
  • 3. Sales by Region Percentage of Total F&B Sales in 2009 Europe 35.8% Americas 44.3% Asia, Oceania, Africa 19.9% 3
  • 4. 4
  • 5. The evolving Challenges and landscape of food opportunities certification • Accreditation • Certification • Advantages • Landscape • Challenges • Opportunities 5
  • 6. Accreditation - Nestlé • Nestlé Specialized Laboratories (approx. 30): ISO 17025 accreditation compulsory • Nestlé Factory laboratories (approx. 400): move to ISO 17025 accreditation • Business partners laboratories: encourage ISO 17025 accreditation
  • 7. Advantages -benefits • Business results! • Global acceptance of analytical results • Basics of management system in place • Formal sign-off on management system - compliance • Benefit of the outsider’s eye • Mutual acceptance standards – mechanisms - terminology • Avoid waste – fine tune - Nestlé & partners • Consumer and customer - stakeholder communication • Preferred partnerships
  • 9. Food certification landscape (cont’d) • USA large retailers certification initiatives • Global acceptance of ISO 22000 and PAS 220 – FSSC 22000 • Global Food Safety Initiative (GFSI) – equivalent standards • Proprietary audit standards on their way out (lesson: ‘Peanut Cooperation of America’) • Customer internal supplier standards focus on high risk – low risk can be handled by certification - less work – win/win for both Nestlé and supplier
  • 10. Nestlé Potential hazards of the material example Nestlé HACCP hazard assessment Significant hazard? YES NO Who controls? Vendor Nestlé HIGH RISK Vendor LOW RISK Vendor External certification External certification Approved CBs – GFSI Approved CBs – GFSI PLUS: Nestlé signs off on control measures
  • 11. Challenges • Too many standards under development (GFSI benchmark) • Some industry players going back fully to own (customer) standards • Quality (and quantity…) of Certification Bodies – evolving role of Accreditation rules and Bodies • Value of certification – ‘guarantee’
  • 12. 12
  • 13. Opportunities • Develop food industry consensus on certification standards, including the right accreditation – fair choice but with limits • Accreditation bodies take more ownership of quality of certification bodies (now often: standard owners) • Industry players partner up with Certification Bodies – make it work • Certification industry needs to consolidate on scale and quality (of audits – auditors)
  • 14. Key messages • Accreditation and certification are here to stay – we need it - they help in the basics – compliance! • Accreditation and certification show results – for companies – for trade – for customer and consumer • Credibility of programs requires industry consensus - quality assurance – consolidation – transparency - continuous improvement
  • 15. 15