Traceability management in the wine and spirits industry in the EU

PERNOD RICARD HOLDING
Traceability management in the wine and spirits industry in the EU
Beijing, 25th April 2012
Jean‐François ROUCOU
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Traceability in the wines and spirits industry
1.
The basics of traceability
2.
Traceability of Pernod Ricard products
3.
The threats to traceability
4.
Other aspects of traceability
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Definitions
 Traceability is the ability to trace the history of a supply chain unit (a “product”) by means of recorded identification.
The history includes: •
•
•
•
•
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Geographical origin
Composition: ingredients, raw materials
Production process
Packaging used
Transportation Supply chain operators downstream and upstream, etc...
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Definitions
NB : a “unit” can be a consumer unit or a batch
 Individual traceability :
• a bottle
 Batch traceability: • a case
• a pallet
• the production of a day
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2
Definitions
 Tracing (up) is the capability to identify the origin of a particular unit and/or batch of product located within the supply chain by reference to records held upstream.
 Tracking (down) is the capability to follow the path of a specified unit of a product and/or batch through the supply chain as it moves between organizations towards the final point‐of‐sale or point‐of‐service.
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Why do we need traceability ?
 The producer is responsible for his product, in case of defect such as
• Quality for the consumer (ex: not the right taste)
• Consumer safety (ex: broken glass in the bottle can harm)
• Legal compliance (ex: alcohol content outside legal limit, formulation outside product definition standard)
 This becomes critical with food products
• Risk of toxicity through ingestion
• Risk of microorganism (perishable) or chemical contamination
 It is the responsibility of the producer to react quickly
. and efficiently in case of a serious problem
• Withdraw the product from the distribution chain
• Or recall from the consumer
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Typical examples of recall
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Recalls happen all the time (examples for 2 months)
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Why do we need traceability ?
Therefore we need traceability both ways :
1/ To identify the problem
Tracing
up
• From a sample, identify the origin of the problem 9
Why do we need traceability ?
2/ To control the problem
• From a batch, identify where are the non compliant products
and withdraw them from the distribution chain
Tracking
down
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Why do we need traceability ?
2/ To control the problem (continued)
• In case of a serious health threat to the consumer:
a direct recall of the product from the public is needed !
Public
recall
 Consumer
 Retail shops
The consumers must be able to identify the defective product themselves, using traceability information !
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Legal requirement
 USA : U.S. Bioterrorism Act 2002
 Europe : • EC regulation 178/2002, art. 18 on Traceability
« Operators shall have in place systems and procedures which allow for this information to be made available to the competent authorities on demand » (art.18.2)
• EEC Directive 89/396 on indication or marks identifying the lot to which the foodstuffs belong « A foodstuff may not be marketed unless it is accompanied by an indication (…) which allows identification of the lot to which it belongs. For the purpose of this Directive, ‘ lot ’ means a batch of sales units of foodstuff produced, manufactured or packaged under practically the same conditions» (art.1)
« The indication [of the lot] shall be determined of affixed under the responsability of one or other of those operators: producer, manufacturer, packager» (art.3)
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Legal requirement in Europe
In Europe:
 The producer is responsible for putting in place a traceability system of his choice
 For food products, there is an obligation to indicate the lot
 Sanctions are foreseen by EU Member States in case of erasure or damage of lot indication:
 France: if there is fraud, up to 4 year emprisonment and 75K € for individuals, up to 187,500 € and removal of business license for companies
 UK: up to 5K £
 Spain: for severe breach: confiscation and up to 601,012 € or five time the value of the good  Germany: Confiscation and 20K €
 Lot indication system is not harmonized
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Summary : conditions required for traceability
Unique identification
 Any traced or tracked entity must be uniquely identified. The unique identifier is the key that enables access to available data about its history. In a majority of food supply chains, products are tracked and traced by their production batch, which have undergone the same transformation (production process), and by their transport/storage paths (distribution process).
Data capture and recording
 Traceability requires pre‐defined data to be captured and recorded throughout the supply chain. The accuracy and speed of data recording and retrieval are the main performance indicators of any traceability system.
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Traceability in the wines and spirits industry
1.
The basics of traceability
2.
Traceability of Pernod Ricard products
3.
The threats to traceability
4.
Other aspects of traceability
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Traceability code
 A readable code
• Alphanumeric sequence
 Printed directly on the bottle or the label
• Must stay visible after opening the bottle
• Sometimes replicated on other parts (closure, reverse side of label)
 Refering to bottling line and batch • Either physical batch (example : a tank)
• Or precise bottling time + minute
• NB : clear bottling date is mandatory for China
 This information is enough to retrieve all parameters of production
• Ingredients, packaging, suppliers, process…
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Examples of traceability codes
 Chivas Regal whisky
• On the back‐label
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Examples of traceability codes
 Chivas Regal whisky
Bottled on
2009/07/22
LA 5 0803 021332
22nd July 2009
‘L’ denotes the Lot
number
A = year of production
5 = production line
0803 = Batch number
021332 = unique
bottle number
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Examples of traceability codes
 Martell Cordon Bleu cognac
• On the glass
2009/06/15
L 11:30 A
Bottled on
15th June 2009
‘L’ denotes the Lot
number
11:30 = time of production
A = production line
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Traceability management
 Parameters are recorded at each step of the production
• Ingredients mixed
• Suppliers
• Quality parameters
 The system is certified and audited by third party
• ISO 9001 (quality management) and ISO 22000 (food safety)
 Group internal audits are carried regularly
• As part of Group Quality standards
• Checking readability and time to retrieve all production parameters
• Traceability considered a key quality requirement
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An example of tracing exercise  From a bottle of Cordon Bleu cognac :
2011/10/27 L 11 :35 A
 We will trace up :
• Packaging materials
• Origin and quality of the cognac
• Process steps
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An example of tracing exercise : packaging 2011/10/27 L 11 :35 A
 n° of empty bottles used
• Date of production by glass supplier
• N° of Individual pallet used (500 bottles)
• Result of supplier quality controls
 n° of batch of corks used
• Date of production by corks supplier
• N° of corks box used (1000 corks)
• Result of supplier quality controls
 n° of batch of overcaps used
• Date of production by overcaps supplier
• N° of overcaps box used (5000 overcaps)
• Result of supplier quality controls
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An example of tracing exercise : cognac
2011/10/27 L 11 :35 A
 n° of tank used for bottling
• Designation of product
• Results of quality controls
• History of the tank
 n° of cistern‐truck for transport
• Date of transportation
• Results of quality controls
• History of the cistern
 n° of blending batch
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Cognac spirits used + quality controls
Water used + quality controls
Filtration + quality controls
Chemical analysis + tasting
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An example of tracing exercise : process steps
2011/10/27 L 11 :35 A
 Rinser
• Results of quality control
 Filter
• Results of quality control
 Filler/ capper
• Results of quality control
 Labeler
• Results of quality control
 Packer
• Results of quality control
A reference sample is available for further investigation
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Traceability in the wines and spirits industry
1.
The basics of traceability
2.
Traceability of Pernod Ricard products
3.
The threats to traceability
4.
Other aspects of traceability
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Traceability is in danger if…
1.
2.
The chain of data recording is broken (tracking)
The traceability information is removed from the product (tracing)
• Products « decoding » is a serious concern in China
• Such practice is considered ILLEGAL in Europe
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A serious issue: decoded products
 Example for Absolut vodka (bottle)
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A serious issue: decoded products
 Example for Absolut vodka (closure)
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A serious issue: decoded products
 Example for Chivas Regal whisky (label)
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A serious issue: decoded products
To reduce the impact of decoding,  additionnal codes may be added
• Ex: reverse side of back label, closure…
• but they are also subject to removing…
 hidden codes can be used
• Ex: invisible ink, …
• But they do not allow consumer or retailer recall (they can’t read them !)
To protect the consumer’s health
existing visible traceability codes should be protected against damage or erasure
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Traceability in the wines and spirits industry
1.
The basics of traceability
2.
Traceability of Pernod Ricard products
3.
The threats to traceability
4.
Other aspects of traceability
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Other aspects of traceability
 Fighting counterfeiting ?
• Traceability can help identification of fake products
• Ex: this number does not exist, or should not be found here
• Product with lot codes voluntarily removed create de facto suspiscion and should be removed from shelves
But
 The question of counterfeit is authentication
and not identification
• Authentication : proof that the product is genuine
• Identification : individual traceability allows tracking of a single bottle
 This is particularly true when original parts are used to make counterfeits
• Ex: refill of original bottle with original label, lot indication and parts of original closure
Traceability can help
but
it is not the sole solution against counterfeiting !
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Other aspects of traceability
 What about bar codes ? QR code ? RFID ?
 They are another way to carry the traceability information
• They allow industrialisation of the reading process
• They add some costs (RFID > QR code > bar code) • But they follow all the sames rules of information management as ordinary codes
 They do not allow consumers or retailers to access the traceability information…
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A few conclusions
 Traceability technology already exists and is in use
 Easy to implement and cost effective on wide scale
 Ultimate objective at all times is consumer safety AND accountability at source
 Solution must address BOTH authentication AND identification
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Thank you for your attention !
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