Rapid Recall Exchange National Pork Board Retail Advisory Committee April 15, 2010 Amy Fanale, GS1 US Director, Product Management An Industry Problem • Consumer safety and confidence are paramount issues for GMA and its member companies • The number and complexity of product recalls continues to grow • Current legislative and regulatory environment requires focused attention • Impact on share price and market value of companies is significant and impact increases if recall is poorly executed • Pressure from trading partners to improve recall execution practices • The product recall notification step of the recall execution process is one of the biggest opportunities for improvement 2 The Industry-Driven Solution: Fast – Accurate – Secure Recalls Rapid Recall Exchange™ applies industry expertise and leading practices to standardize product recall and withdrawal notifications between retailers/wholesalers and suppliers • Recalling firms send product recall information directly to retailers and wholesalers confidentially and immediately via the web • Provides users with standardized product recall information, handling instructions, product images, alerts, 2-way communication tools, and the flexibility of customized attachments • Real-time updates on who received the notification and when • Leverages global GS1 standards to ensure accuracy and enhance speed of recalls 3 A Joint Industry Call to Action • FMI, GMA, NGA, GS1 US committed to and collaborating on food and product safety • 2009/2010: Focus on driving mass adoption in core grocery sectors – Health and Beauty – Food and beverage [shelf stable and temperature controlled] – Fresh Foods – Pet Food and Supplies – Tobacco – Alcohol beverage • 2010/2011 and beyond: Develop industry roadmap for food and product safety with other trade associations – Foodservice – Healthcare – General Merchandise 4 Features & Functions • Secure user-authentication • Two-way messaging • Email alerts about new information • Comprehensive, prioritized information & product images for easy identification • Attach documents to provide additional information for all or targeted receivers • Verification of notification • Universal notification of Class 1 recalls • Test environment for trialing recall processes • Customer service for assistance including 24 / 7 technical help 5 Benefits Retailers Suppliers • Quickly identifies recalled products – • Easy-to-complete online form to input product images and other information information are provided on the recall form • Database of retailer and wholesaler • Provides the necessary information to contacts to target specific recipients remove recalled or withdrawn products, • Immediate updates of who received handle them appropriately and initiate and opened the notification financial settlement • Expanded notifications to ensure • Accelerates response time – recipients don’t overlook new information is received the moment it is information available and immediate action can be • Two-way communication taken • Communicates directly with recall initiator 6 How to Access Rapid Recall Exchange • Can be accessed directly, www.rapidrecallexchange.org • Also from these organizations: – Food Marketing Institute, www.fmi.org – Grocery Manufacturers Association, www.gmaonline.org – National Grocers Association, www.nationalgrocers.org – GS1 US, www.gs1us.org 7 Product Recall Process Post notification communication Recall Recall Recall Initiator Approver Receiver • Completes • Reviews the • Receives the product product the product recall form recall form recall form • Submits • Approves or • Acts on the form to Rejects the product Recall form recall Approver process Recall Initiator Company Roles Recall Receiver Company Roles 8 Recall Initiator Create New Product Recall 9 Recall Create Recall Initiator General Information Recall Create Recall Initiator Manufacturing Company Information Recall Create Recall Initiator Product Information Recall Upload Images & Attachments Initiator Recall Create Recall Initiator Product Handling Details Recall Create Recall Initiator Reimbursement Requirements Recall Create Recall Initiator Contact Information Recall Target Receivers Initiator 17 Recall Target Attachments Initiator 18 Recall Notify Approver Approver 19 Recall Approver Review Approver 20 Recall Approval – Send to Receivers Approver 21 Recall Notify Receiver Receiver Class I Example 22 Recall Notify Receiver Receiver Class III Example 23 Recall View Recall Receiver 24 View Recall Recall Receiver Product Information 25 Recall Receiver Ability to Respond to Initiator 26 Recall Audit Reports 27 Pricing Recall Initiator - A company that will be issuing Product Recall Notifications. This company type cannot receive Product Recall Notifications. Annual Revenue Annual Fee < $5MM $300 $5MM < $35MM $500 $35MM < $100MM $950 $100MM to < $500MM $1,315 $500MM and Above $2,100 Recall Receiver - A company that will be receiving issued Product Recall Notifications. This company type cannot issue Product Recall Notifications. Annual Revenue Annual Fee < $1B $250 $1B to < $15B $500 $15B and Above $750 28 Industry Adoption Kroger Endorses Rapid Recall Exchange and Encourages All Suppliers to Join Exchange CINCINNATI, April 6 /PRNewswire-FirstCall/ -- The Kroger Co. (NYSE: KR) today announced its endorsement of the Rapid Recall Exchange, an online service that standardizes and accelerates food and product recalls and withdrawals. Kroger will be the first national retail chain to encourage its suppliers to subscribe to this industry-leading program. The Rapid Recall Exchange, developed by GS1 US in collaboration with the Food Marketing Institute and Grocery Manufacturers Association, is the industry's only online standardized recall notification system. Using consistent forms and processes, retailers receive the same complete information, including product images and handling instructions, when a recall is issued. "Using Rapid Recall Exchange provides Kroger with timely and accurate recall data. The need for speed is crucial in recall situations and this will help us be more efficient in removing recalled product from our shelves and communicating with our customers about recalls," said Dr. Payton Pruett, vice president of corporate food safety for Kroger. Kroger is asking all suppliers to subscribe by July 1, 2010. Suppliers using the Rapid Recall Exchange can provide all critical recall information in one communication – 24 hours a day, seven days a week – quickly alerting retailers. This enables retailers like Kroger to quickly remove recalled products and reach out to customers about recalls. Kroger is an industry leader in recall communication efforts. Using its customer loyalty database, Kroger is able to notify customers via register receipts and phone calls about recalls of products they may have purchased. Kroger has a 24-hour, seven-day-a-week process in place to coordinate recalls, and works quickly and effectively to remove from sale products that have been recalled or withdrawn. For more information about recalls, visit http://www.kroger.com/recalls. Current Customers (as of April 1, 2010) A&P Buehler's Fresh Foods D'Agostino Supermarkets A.C.Kissling Co. Bush Brothers & Company Dad‘s Pet Care Associated Food Store Butterball LLC Daymon Associates Inc. Ahold USA C&S Wholesale Grocers Inc Diamond Walnut Growers Inc. Alex Lee Inc. C. H. Guenther and Son Inc. Dahl's Foods Alfa Sprouts C.B. Fleet Company Inc. Del Monte Foods Apple Wedge Packers & Cider Cabot Creamery Cooperative Delhaize Group/Delhaize America Applewood Orchards Inc. Campbell Soup Company Disneyland Associated Grocers – Louisiana Christopher Ranch LLC. Dorothy Lane Market Associated Grocers of New England Clement Pappas & Co. Inc. Eagle Eye Produce Associated Wholesale Grocers CMI Inc. Eagle Produce LLC dba Martori Farms Associated Wholesalers – Inc Coffee Holding Co. Inc. Europackaging LLC Bell-Carter Foods Incl Colonna Brothers Inc. Everlast Sports Nutrition BI-LO LLC CVS Pharmacy Florida’s Natural Growers BJ's Wholesale Club Carolina Pride Foods Inc - Carolina Pride Foods Inc Fairway Market Bozzuto’s Inc Chief Super Markets Inc. Festival Foods Wisconsin Bumble Bee Seafoods Cobb Management - Makoto Dressing Inc. Food Lion Big Y Foods Inc. Columbia Centre Market Place Inc. FoodMatch Inc Bristol Farms ConAgra Foods Forest Hills Foods Brookshire Grocery Company Costco Wholesale Fox & Obel Food Market Buckden Inc - Buckden's Valu Foods Cypress Holdings Inc. Harvest Market Fresh & Easy Neighborhood Market For the most recent listing, see www.rapidrecallexchange.org Cont’d on next slide Current Customers (as of April 1, 2010) Fruit Fresh Up Inc John B Martin and Sons Farms Inc. Marx Brothers Inc. K-VA-T Food Stores Inc. - Food City & Super General Mills Inc. Dollar Discount Food Stores McCormick & Company Inc. Great Lakes Cheese Company Inc. Knouse Foods Cooperative Inc. Mid-Am Food Enterprises Georgia Pacific Corporation Kellogg Company Mrs. AppleTree Giant Eagle Kings Supermarket Nash Finch Grimmway Enterprises Inc Knowlan's Super Markets Inc. Festival Foods National Fruit Product Co Inc. Grocers Supply Co. Inc. Kraft Foods Inc. Newtree America Inc H E Butt Grocery Company Kreher's Farm Fresh Eggs LLC National Produce Consultants Inc. H J Heinz Company Lakeside Mills Inc. Nestle USA Hofmann Sausage Co. Inc Landies Candies Co. Inc. Newport Ave. Market IGA Hubbard Peanut Company Inc. Laurel Grocery Company Northgate Gonzalez LLC Hy-Vee INC. Lipari Foods Inc. Ocean Spray Cranberries Inc. Harris Teeter Lund Food Holdings