Talk for Singapore Accreditation Council June 2010

1. The evolving Challenges and
opportunities
landscape of food
certification
Dr Thom KLEISS, Head
Nestlé Quality Audit
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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
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3. Sales by Region
Percentage of Total F&B Sales in 2009
Europe
35.8%
Americas
44.3%
Asia, Oceania, Africa
19.9%
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5. The evolving Challenges and
landscape of food opportunities
certification
• Accreditation
• Certification
• Advantages
• Landscape
• Challenges
• Opportunities
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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

8. Food certification landscape

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’

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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

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