Practical Delivery of Food

Safety

Stuart Challenor - Tesco

23 June 2016

Agenda

1. Brief introduction to Tesco2. Our approach to technical management3. Specifics for management of keys areas4. Tesco and society

Tesco

Employ 476,000 colleagues worldwide

Operate in 11 markets serving 78 million customers every week

Britain’s largest private sector employer (310,000 in the UK)

Group sales of £50bn (2015 – 2016)

UK

Extras -250

Superstores - 479

Metro - 178

Express - 1,713

One Stop - 873

Dobbies- 36

International

Ireland

Poland

Hungary

Czech Republic

Slovakia

Turkey

Malaysia

Thailand

China

India

Multichannel

Tesco Bank

Tesco.com

Tesco Mobile

Dunnhumby

Giraffe

Harris + Hoole

Delivering Product Safety and Quality

Tesco Product Rules

At all times – follow these rules to provide a robust foundation for our business Before launch – we must identify potential risks and ensure controls are place to

manage the safety, legality and quality of the products we launch After launch – we must manage the ongoing safety, legality and quality of the

products we sell by ensuring we only work with suppliers meeting our requirements

Product Rules – At all times

1. Capability and training2. Managing external service providers3. Emerging issues, legislation and policy4. Sourcing, buying selling and exporting

3. Emerging issues, Legislation and Policy

Maintenance of an internal team of scientific and regulatory experts across key disciplines

Maintenance of a panel of internationally recognised external experts Development of networks across government, trade bodies, research

institutes and academia A risk based product testing programme Structured dissemination of intelligence products Policy development based on best science and customer insight

Product Rules – Before launch

5. Liability and product risk6. Product development, information and design7. Supplier and site approval8. Product testing9. Product trials and first production runs10. Good product handling through distribution and retail

10. Good product handling through distribution and

retail

Define the processes and systems to be used through distribution and store Our design standards ensure that equipment used in store is fit for purpose We monitor the effectiveness of our systems and processes through audit

(approximately 8000* store safe and legal audits annually)

* - UK & Ireland

Product Rules – After product launch

11. Ongoing product management12. Ongoing supplier management13. Product withdrawals, recalls and regulatory compliance14. Customer feedback15. Performance monitoring and review

11. Ongoing product and supplier (13.) management

We have a risk based product surveillance programme Specifications are reviewed a minimum of every two years There is a process in place to ensure ongoing compliance with the

specification The product is regularly reviewed against the defined benchmark All direct sites are audited against the relevant technical and ethical

standard There is a site visit plan in place

Audit

We use 4 audit service providers and circa 80-100 auditors We audit in >80 countries All auditors undergo training and examination in the Tesco standards and are

signed off after witness audits by approved lead auditors and trainers We have an on-going witness and calibration programme for all auditors Audits may be announced or unannounced

Audit

Seven Tesco standards covering food and non-food The frequency of on-going audits is based on risk and BRAG rating. Frequency

ranges from 3 months to 2 years The audit duration is 1-2 days depending on the standard The scope of audit is a full Tesco traceability challenge (product purchased from

store where possible), site audit in which we observe physical processes and a record and a document review

Product testing

Broadly run five programmes covering compositional analysis, authenticity, contaminants, microbiology and non-food

All analysis commissioned to expert third part laboratories Test in the order of 20,000* samples per annum (= to around 170,000

tests) Over 8,000 speciation tests since January 2013

* - UK

13. Product withdrawals, recall and regulatory

compliance

Dedicated Incident Management Team in place to investigate and respond to product issues

When things do go wrong, manage withdrawal or recall of product, coordinating as appropriate with internal and external stakeholders

In-house regulatory policy team

Tesco and Society – Our big commitments

Lead in reducing food waste

To improve health and through this help to tackle the global

obesity crisis

To create new opportunities for millions of young people around

the worldTesco and Society –Essential Commitments

Trading responsibly Reducing our impact on the environment Being a great employer Supporting local communities

Thank You