1. GFSI Standards in Warehousing & Transportation AFDO June 10, 2013

2. 20120220-Role&Org Training-DRAFT-v24.pptx 1 Agenda US Foods Food Safety Risks in Storage and Distribution GFSI GFSI in Storage & Distribution US Foods Experience with GFSI Questions

3. 20120220-Role&Org Training-DRAFT-v24.pptx 2 2 U.S. Foods 2  One of the largest foodservice distributors in the United States  Headquartered in Rosemont, IL  Annualized revenue of US>$21B  One of the largest private refrigerated transport fleets  7,000 tractor trailers and 25,000 employees—best jobs in the industry  Sell > 300,000 food & non-food products  Private Label from >1200 facilities in ~10 Countries  To more than 250,000 customers in US

4. 20120220-Role&Org Training-DRAFT-v24.pptx 3 The Headlines: NY Times Peanut Butter Recall Affects Thousands WTHR- Channel 13 INDIANAPOLIS - If you think state police are just looking for speeders, think again. All across Indiana, state troopers are now cracking down on a dangerous problem that impacts local grocery stores and restaurants, and it can make you and your family very sick. 13 Investigates shows you the threat rolling into town every day, and why police say it's "totally disgusting." LA Times Salmonella and Campylobacter frequently detected The Washington Post Wall Street Journal Results show meat products contaminated with Salmonella Chicago Tribune Food poisoning at Chain Restaurants in 22 Counties Dancer Paralyzed by E.coli sues *** for $100 Million 12.03.2009. Stephanie Smith, the twenty-two year old Minnesota dance instructor left paralyzed by a burger tainted with E. coli filed suit today NY Times Salmonella Linked to Central Illinois Distributor October 22, 2010 (WLS) -- State health officials say they have traced a widespread salmonella outbreak at some Chicago-area restaurants to a food distributor based in central Illinois FDA: Hepatitis A Outbreak …..

5. 20120220-Role&Org Training-DRAFT-v24.pptx 4 Importance of food safety 76% Americans are at least somewhat concerned about food safety and food recalls * * Deloitte 2010 Survey

6. 20120220-Role&Org Training-DRAFT-v24.pptx 5 Storage & Distribution?

7. 20120220-Role&Org Training-DRAFT-v24.pptx 6 6 Producers Processors Operators Supplier/ Distributor Supplier/ Distributor RISK RISK ? Food Safety Risks

8. 20120220-Role&Org Training-DRAFT-v24.pptx 7 Food Safety Risks In Distribution?

9. 20120220-Role&Org Training-DRAFT-v24.pptx 8 *2007 Interstate Food Transportation Assessment Project – Michigan State University/ Michigan Department of Agriculture in MI, IL, WI, IN, OH Industry fragmentation Infrastructure Food Safety Issues: Food Safety Knowledge Cold Chain Management Traceability/ Labeling Cross-Contamination Club Wholesalers/ Farmers Markets Food Safety Risks in Distribution & Logistics Indiana Food Transportation Assessment Project- 2007-2012

10. 20120220-Role&Org Training-DRAFT-v24.pptx 9 “Food transportation practices provide opportunities for threats to the safety and defense of our food supply” reformat INTERSTATE ASSESSMENT CONCLUSION

11. 20120220-Role&Org Training-DRAFT-v24.pptx 10 “There is a need to look at the old model of food safety evaluations and inspections, close the gaps and build on their value” reformat Compete Risk Management… …Evolution Not Revolution

12. 20120220-Role&Org Training-DRAFT-v24.pptx 11 The Global Food Safety Initiative 11 An organization of the world's leading food safety experts from retailers, manufacturers and food service companies united by a goal to improve safety in the delivery of safe food to consumers worldwide”

13. 20120220-Role&Org Training-DRAFT-v24.pptx 12 Who is in the Global Food Safety Initiative 12

14. 20120220-Role&Org Training-DRAFT-v24.pptx 13 The Global Food Safety Initiative 13

15. 20120220-Role&Org Training-DRAFT-v24.pptx 14 The Global Food Safety Initiative 14 Governance and Structure Board: Retailers, Manufacturers & Foodservice Advisory Council: Academia, non-government organizations and government Technical Working Groups: Retailers, foodservice operators, manufacturers, distributors, standard owners, certification bodies, accreditation bodies, industry associations and other technical experts.

16. 20120220-Role&Org Training-DRAFT-v24.pptx 15 GFSI Governance GFSI Board Advisory Council Stakeholders Packaging Animal Handling Feed Transportation & Distribution Global Regulatory Affairs Auditor Competence Guidance Document GFSI Technical Working Groups Global Markets Manufacturing Primary Production Global Markets Manufacturing Primary Production

17. 20120220-Role&Org Training-DRAFT-v24.pptx 16 The Global Food Safety Initiative 16 1. Identification of key food safety criteria in a Standard 2. Common procedures to verify implementation of Scheme by 3 rd parties (accreditation & certification) Benchmark & Recognition= Equivalence  Provides framework for the recognition of food safety schemes  Schemes successfully benchmarked and recognized have a common foundation of requirements, which should provide consistent results when applied  Carried out in an independent, unbiased technically proficient and transparent manner through an internationally recognized process  Benchmarked schemes are NOT identical because they differ in terms of level of prescription and specifics

18. 20120220-Role&Org Training-DRAFT-v24.pptx 17 GFSI Recognized Standards* *Not all inclusive

19. 20120220-Role&Org Training-DRAFT-v24.pptx 18 GFSI Scopes of Recognition Key Elements for Guidance Document

20. 20120220-Role&Org Training-DRAFT-v24.pptx 19 S&D Working Group 26 food safety professionals from 10 Countries and 3 Continents (USA, Europe & Asia). 11 of them are food distribution companies or companies that have food distribution CHAIRS: Jorge Hernandez- US FOODS, USA & Rena Pierami- SILLIKER, USA WORKING GROUP MEMBERS BRC, UK NSF-CMi, UK ALCHEMY, US LOBLAWS Canada COCA-COLA BOTTLING, USA MCDONALD’S, USA AEON, JAPAN IFS, Germany JM SWANK, USA SYSCO,USA ALLIED FOODS, Ireland DNV, USA SUBWAY, USA GLOBALGAP, Germany AFSI, USAYUM ! BRANDS, USA ROYAL AHOLD, The Netherlands DARDEN, USA AIB INTERNATIONAL, USA SQF, USA LLOYD'S REGISTER, The Netherlands

21. 20120220-Role&Org Training-DRAFT-v24.pptx 20 Work of Storage & Distribution Work Key Elements: Define key elements for Scope J- Transport and Distribution (Perishable & Ambient) Key elements under three sections:  Food Safety Management Requirements  Good Agricultural / Good Manufacturing/ Good Distribution Practices  HACCP

22. 20120220-Role&Org Training-DRAFT-v24.pptx 21 S&D Working Group Important Considerations: WG did NOT write a ‘standard’ but identified the key elements/best practices and acceptance criteria for S&D WG members represented an industry sector not their organisations or their own interests The criteria are “best practice” Wherever possible WG used existing format and previous GFSI work WG also considered issues that impact the sector and provided recommendations to the GFSI Board: Quality Auditor competence Multisite certification

23. 20120220-Role&Org Training-DRAFT-v24.pptx 22 S&D Work WG Finalized Key Elements for Storage & Distribution Key Scope Elements was put for public comment globally WG considered comments and finalized AFTER review of all comments Key Elements for S&D was approved by the GFSI Board Publish in 2013 Standards Benchmarking in Fall

24. 20120220-Role&Org Training-DRAFT-v24.pptx 23 Why important? GFSI Certification is the best recognition that a food company meets best food safety practices US Foods requirement for Private Label since 07 (>1200 facilities in ~ Countries) Customers are requiring certification Governments are recognizing its value Results U of Rostock in Germany, U of Arkansas in US and others validated certification value* including: 17 % reduction in food recalls vs. non certified 27% reduction in FS & QA complaints 51% reduction in regulatory findings 40 % reduction in product error/defect rates A Distributors’ Perspective

25. 20120220-Role&Org Training-DRAFT-v24.pptx 24 US Foods Experience with GFSI Certification “An Improvement on the Management of Food Safety, Quality and Regulatory Compliance and bottom line Risk Reduction ”

26. 20120220-Role&Org Training-DRAFT-v24.pptx 25 Set a path for Certification for all US Foods Distribution Centers & Processing Facilities reformat Compete MANAGING RISKS

27. 20120220-Role&Org Training-DRAFT-v24.pptx 26 Questions

28. 20120220-Role&Org Training-DRAFT-v24.pptx 27 Closing Thoughts jorge.hernandez@usfoods.com

29. 20120220-Role&Org Training-DRAFT-v24.pptx 28 Thank-you For more information on GFSI: www.mygfsi.com