Food Industry Perspective on 3rd Party Audits and Regulatory Inspections

Overview of regulatory inspections and 3rd party audits in the food industry from the perspective of Tim Ahn, Global Director of Quality & Food Safety at Mars Chocolate. The content covers the importance of inspections, differences between inspections and audits, and the role of audits in driving quality and food safety management systems. It also discusses the significance of regulatory inspections in ensuring compliance with food laws and regulations, emphasizing the need for processors to be prepared for unexpected inspections.

• Food Industry
• Regulatory Inspections
• 3rd Party Audits
• Quality Management
• Compliance

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1. 3rd Party Audits and Regulatory Inspections Food Industry Perspective Tim Ahn Mars Chocolate Global Director - Quality & Food Safety 1

2. Agenda Introduction to Mars, Incorporated Overview of regulatory inspections Overview of 3rd party audits Using 3rd party audits to drive Quality & Food Safety Management System effectiveness. Privileged and Confidential - for Mars Internal Use only Privileged and Confidential - for Mars Internal Use only 2

3. Privileged and Confidential - for Mars Internal Use only Privileged and Confidential - for Mars Internal Use only 3

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6. Regulatory Inspections Regulatory inspections are key part of national and local food law enforcement framework. Important role in assuring compliance with regulations regarding: public health & safety food quality labelling Inspections are government funded. Important tool in assuring retail food establishments Focused on basics GMP/GHP. Privileged and Confidential - for Mars Internal Use only Privileged and Confidential - for Mars Internal Use only 6

7. Regulatory Inspections Inspections are usually unannounced. Frequency can vary. Can be routine or for cause . Inspections are not audits Designed to identify issues and non- complaint processors. Inspector training can vary by country and local jurisdictions. Regulatory inspections collect evidence - need to be treated as legal proceedings. Can result in publicity, warning letters, recall, fines, etc... Depending on country and laws, processors need to be aware of their legal rights. Processors need to prepare in advance for expected inspections. Privileged and Confidential - for Mars Internal Use only Privileged and Confidential - for Mars Internal Use only 7

8. 3rd Party Audits Audit - Planned, independent, and documented examination and verification of activities, records, processes, and other elements of a quality system to determine their conformity with the requirements of a quality standard. Different types of standards International standards ISO 9000, ISO 22000 Global Food Safety Initiative (GFSI) audit schemes Other GMP/GHP, HACCP standards Quality Management System & Food Safety Management System audit Management review Internal audit Corrective action Privileged and Confidential - for Mars Internal Use only Privileged and Confidential - for Mars Internal Use only 8

9. 3rd Party Audits Processor pays cost of audit. Certification demonstrates food safety compliance. Standardize auditor training and certification. Standards and certifications International recognition GFSI accepted by major retailers May be required in certain situations Privileged and Confidential - for Mars Internal Use only Privileged and Confidential - for Mars Internal Use only 9

10. 3rd Party Audits & Effective Q&FS Programs Quality and Food Safety Management Systems provide structure from which to produce safe, wholesome, and legal foods. Meet regulatory requirements Achieve required customer certifications Drive continuous improvement activities Demonstrate organizational governance 3rd party audits provide independent verification of Q&FS Management Systems implementation and effectiveness. Privileged and Confidential - for Mars Internal Use only Privileged and Confidential - for Mars Internal Use only 10

11. 3rd Party Audits & Effective Q&FS Programs Customized 3rd party assurance can be used to assess implementation and effectiveness of company specific standards and processes. Mars Incorporated has partnered with LRQA to develop a customized program of comprehensive site audits. Mars specific standards implementation International standards certification Corporate Q&FS reporting and metrics Enable corporate Q&FS governance Privileged and Confidential - for Mars Internal Use only Privileged and Confidential - for Mars Internal Use only 11

12. THANK YOU Privileged and Confidential - for Mars Internal Use only Privileged and Confidential - for Mars Internal Use only 12