Regulating Food Safety: Internet Sales & Emerging Technologies
VANESSA LINDSAY PHASE 2 CONSULTING, INC. “ The DISRUPTOR Generation ”
Millennial consumers, and start up entrepreneurs, have changed the rules and caused major disruption in nearly every sector including the food industry ONLINE FOOD SALES Direct-to-Consumer Delivery Model
“DRAMATIC ONLINE-ONLY RETAILER GROWTH DRIVEN BY Early Pioneer: FRESH DIRECT, NY MILLENNIALS: Today, 1 in 4 shoppers is using online-only retailers, Emergence of Meal Kit and Fully an increase of more than 50% in 2 Cooked Meals Brands such as BLUE years … nearly half of Millennials are APRON, PLATED, HELLO FRESH, CHEF’D, shopping online-only retailers, almost PURPLE CARROT, SUN BASKET, and 80% higher than just 2 years ago” FRESHLY.
(Source: FMI US Grocery Shopper Trends 2017) REGULATORY FOOD SAFETY
Many process under FDA and local regulatory authority and are subject to compliance with FSMA Operate USDA retail exempt facilities, but use USDA Source materials for meat and poultry Producing Fully Cooked Meals or Meal Kits, Reheated or Fully Cooked by Consumers Meals include Entrée Protein and Side Dishes, Meat/Poultry/Seafood/Egg/Vegetarian/Allergen-Free Options tied to user profiles CCPs: Receiving & Storage Temperature, Cooking, Chilling, Metal Detection, Label Verification (FDA Food Code Guidelines) Generally Short Shelf Life MEAL SHIPPING METHODS
Meals Ship Via Ground Carriers such as Fed Ex, or through a combination of refrigerated freight and Ground Carriers Shipments: 1-2 day time zones for delivery Secondary packaging: recycled denim insulation, styrofoam, gel packs or dry ice in corrugated shipping boxes Packaging integrity: tested through a series of practical verification tests and third party validations using International Safe Transit Association (ISTA) protocols for winter, summer (7E), and extreme heat profiles. Shipping temperature studies: validate meal temperatures remain at 40F or less for the duration of transit time under worst case scenario conditions SANITARY DESIGN & PRACTICES
Raw to RTE Separation, Refrigerated Processing environment Color Coded Cleaning Equipment Color Coded Uniform Policy, Specialized workers dedicated to Sanitation functions Teams dedicated to food safety and quality assurance Use of Disposable gloves, sleeves, and aprons as well as E3 and D2 alcohol spray sanitizers for hands and surfaces New Construction Projects: Stainless Steel seamlessly welded floor drains and drain cleaning program Cementous Urethane flooring and IMP Panel wash-down walls TESTING PROGRAMS
ATP Surface – Sanitation Effectiveness Verification Daily at Pre-Operational Inspection ALLERGENS- 3M Clean Trace at Product Run Changeover Daily AIR SAMPLING – Semi annual testing for TPC, Yeast and Mold POTABLE WATER – Coliforms, E.coli, semi annual and after any major plumbing projects PATHOGEN MONITORING – Environmental 4 Zone LISTERIA SPP. SHELF LIFE / R&D – Basic Spoilage Organisms & Challenge Studies ADVANTAGES IN THE FOOD TECH SECTOR
Rapid Recall Ability due to the unique direct access to consumers’ individual contact information, allows for speed and accuracy Customer facing technology platform can save user profiles containing nutritional preferences, and dietary/allergy restrictions Food Tech companies are generally investment funded, allowing for hire of high-level Food Safety professionals early in their development as companies A drive for sustainability and environmentally-friendly products and packaging FOOD SAFETY: Getting Up to Speed Quickly
Incubators: Food Investment Partners Regulations & Third Innovation Centers & Consultants Party Audits
& Social Groups • Venture Capital and • FSMA – New Food Regulations require food start-ups to get up • Food Works, Brooklyn, NY Investment Partners provide resources to hire senior leaders to speed with Food Safety • Hana Kitchens, Brooklyn, NY early on Requirements quickly • Chobani Incubator, Manhattan, NY • Food tech start ups meet • GFSI – Third Party Audit • Rutgers University Food requirements for retail clients Innovation Center South, consultants for facility Bridgeton, NJ development, food safety, drive demand for Food Safety and operations through Standards • Food Tech Meet-Up various channels $TRATEGIC INVESTMENT$ OTHER FOOD TECH BUSINESSES
Amazon: Amazon Fresh, Amazon Pantry, Amazon Fulfillment, Amazon Third Party Sellers Dry Food Products: Nuts.com and Thrive Market Pet Food: Chewy.com and PetPlate.com Finless Foods and Memphis Meats which produce animal protein from cultured cells Ocean Hugger Foods, Impossible Foods, Beyond Meat & Good Catch Foods producing plant based Meat and Fish Alternatives The Cannabis Industry: producing non-hallucinogenic CBD Edibles Alternative Insect-based Protein sources: EXO Protein Bars, Hargol, Protix Q & A