From World of Food Safety Conference, Bangkok in 2013

1. Ensuring Food Safety and Brand protection
throughout the Supply Chain
Anil Nair
Mondelez International
Regional Corporate Quality
World of Food Safety,
THAIFEX, Bangkok.
May 2013

2. Contents
2
Managing Supply Chain Quality Expectations
Integrating Prevention based Food Safety
Approach
Examining Consumer Relevant Quality
Standards
Middle East Case Study – Cheese Handling in
the Supply Chain

3. Our Dream
3
CREATE
DELICIOUS
MOMENTS
OF JOY

4. Our Values Guide Us
4
Inspire trust.
Act like owners.
Keep it simple.
Be open and inclusive.
Tell it like it is.
Lead from the head and the heart.
Discuss. Decide. Deliver.

5. We Inspire Trust…
5
The Importance of Food Safety:
– Consumers have a right to trust all food they
purchase…
– It is generally recognised across the food industry
that food safety is not a source of competitive
advantage
– We all want the highest appropriate standards
applied across the value chain, to assure the
highest levels of consumer protection.

6. Mondelēz International - Overview
6
Net Revenues of $35 billion in 2012
Global snacks powerhouse
Products marketed in 165 countries
No. 1 in Biscuits, Chocolate, Candy and Powdered Beverages
No. 2 in Gum and Coffee
Approximately 110,000 employees
Donated more than one billion servings of food since 1997

7. A Global Snacks Powerhouse
With $35 Billion In Revenue (1)
7
(1) 2012 reported net revenues
(2) Biscuits includes salty/other snacks
Biscuits(2)
32%
Chocolate
27%
Gum &
Candy
15%
Beverages
17%
Cheese &
Grocery
9%
Latin
America
15%
EEMEA
11%
Europe
39%
North
America
20%
Asia Pacific
15%
• Nearly 75% of revenues
in fast-growing snacks
categories
• In December 2012, we announced a reorganization of our management and
reporting structure following the Spin-Off of Kraft Foods Group. Beginning in
2013, our operations, management and operating segments will reflect: Asia
Pacific; Eastern Europe, Middle East & Africa (“EEMEA”); Europe; Latin America
and North America. Accordingly, we will begin reporting on our new segment
structure during the first quarter of 2013, including all historical periods we
present. For purposes of this presentation the above pie chart reflects this
structure based on our 2012 Net Revenues.

8. We offer many of the world’s favorite brands
8

9. Our Categories & Power Brands
9
Biscuits
~65% of Biscuit
Revenue
Gum & Candy
~60% of Gum &
Candy Revenue
Beverages,
Cheese & Dairy
Chocolate
~50% of Chocolate
Revenue
~50% of Beverages,
Cheese & Dairy Revenue

10. Our Geographic Presence
10
North America (NA)
Latin America (LA)
Europe
(EU)
Asia Pacific
(AP)Worldwide HQ: Deerfield,
Illinois
Eastern Europe, Middle East and Africa
(EEMEA)

11. Eastern Europe, Middle East & Africa
11
• Region headquarters:
– Dubai (UAE)
• Key markets:
– Egypt, Nigeria, Pakistan,
Russia, Saudi Arabia,
South Africa ,Turkey, and
Ukraine.
• Net Revenues*=$3.7 billion
* In December 2012, we announced a reorganization of our management and reporting
structure following the Spin-Off of Kraft Foods Group. Beginning in 2013, our operations,
management and operating segments will reflect: Asia Pacific; Eastern Europe, Middle East
& Africa (“EEMEA”); Europe; Latin America and North America. Accordingly, we will begin
reporting on our new segment structure during the first quarter of 2013, including all
historical periods we present. For purposes of this presentation the net revenues provided
above reflects this structure based on our 2012 Net Revenues.

12. Introduction to BU Quality
Ensure Compliance of Mondelēz
International’s requirements to
assure product Quality and Safety in
the Supply Chain.
12

13. • Compliance to QCMS & support to commercialization
T1
– Warehouse/Co Packer Audit support
– SS Management support
– BU-driven consumer complaint evaluation and support
T2
– Consumer Premium coordination
– Technical trade liaison, including BU-driven trade complaints
– Licensing support
– Label compliance approval (legal oversight) including final artwork verification
– Manage due diligence/regulatory compliance issues involving imports
T3
– QA input PAM
– Development of BU Q Systems and Policies
– Training KFI requirements for BU functions and support to BU assessments
• Business value programs
T4
– Field audits
– Quality building programs with the trade (freshness, trade returns, unsalable, quality yield
initiative)
T1
T2
T3
T4
BU Quality Best Practice
- 4 Tier Programs

14. Managing Supply Chain Expectations
14
Keep Storage Conditions
(Temperature/Humidity)
Incoming
Dispatch
Control any
contamination
Pest/ Chemical
Traceability
Control of
returned product
FIFO
Principles
Hold &
Release
Damage/ physical/
heat
Quality
System Quality
Management
System

15. ?Warehouse
C
O
N
S
U
M
E
R
Lead & Live Consumer Inspired Quality
- Quality
Control
- Quality
Systems/policies
Trade/Market
Quality feedback
from Trade
Consumer
complaints
Field AuditWarehouse

16. Retail Quality Audit - Quality Assessment
- What is it?
16
• Checking the condition of products (Mondelez) in stores
– On Shelf availability, Shelf-ready packaging, Temperature

17. Retail Quality Audit - Quality Assessment
- How do we do?
17
• Consumer units purchased and checked at home/office
– Package damage, print, easy open, inner unit wrap, coding
– Product damage, appearance, filling, colour, ingredients

18. Proactively Auditing the Supply Chain
18
Plant (Line) Plant
(Warehouse) Customer
(Warehouse)
Consumer
Shelves
Sandwich position Detailed/accurate
data recording
Product identification
Product Sampling
Evaluating the Supply Chain
Saudi Arabia –Oreo Breakages

19. Tracking/Sampling at each stage of Supply Chain
19

20. Our Integrated Prevention Based Food Safety Approach
is a Point of Difference
20
Risk
Categories
Design Procure Convert* Distribute Trade Consumer
• Design Safety
Analysis
• Specifications
• HACCP
• Supplier QA
• Plant & Equipment
Design/Capability
• Contracts
• Selection/
Approval
• Material
Monitoring
• Continuous
Improvement
• Specifications
• HACCP
• Supplier QA
• Traceability
• Sanitation & Pest
Control
• Complaint Mgmt
• Process Capability
& Control
• Traceability
• Warehouse
Controls
• Complaints
• Warehouse
Control
• Specification
• Labelling
• Consumer
Response
• Process
Capabilities
*Applies to internal & external plants
MicrobiologicalChemical Physical
Scope
Risk
Preventio
n
Programs
Starts with Design and grounded in sound Preventative Programs

21. QCMS provides the framework for
integrated product design.
21
Design Procure Convert Distribute Trade ConsumerConsumer
Focus on what’s important
Design it in
Make it right every time
Talk about it in a meaningful way
Listen, learn, and improve

22. Design
22
Design Procure Convert Distribute Trade Consumer
We design robust products with food safety in mind
Our design process includes product safety gates at key
development stages
Packaging integrity is a key element
Internal global food safety team provides expertise

23. Suppliers
23
Some examples of significant incidents which
highlight the external risks.
Chinese milk powder contaminated
with melamine sickens 1,253 babies
German Dioxin egg scandal spreads
across EU
LOS ANGELES (AP) — The normally quiet
almond industry has suddenly found itself
struggling with a food producer’s worst
nightmare: a salmonella outbreak that has
sickened more than two dozen people and
prompted a nationwide recall.

24. Suppliers
24
Design Procure Convert Distribute Trade Consumer
Risk based supplier approval
Supplier development
Communications (specifications, expectations)
Material Monitoring program

25. Conversion
25
Design Procure Convert Distribute Trade Consumer
Our operations manage product safety based on the
CODEX principles of HACCP
Founded on solid PRPs
CCP Process capability is validated against proven science
Internal Audit programs

26. Distribution & Trade
26
Design Procure Convert Distribute Trade Consumer
Warehouse & Transportation expectations
Training and coaching of trade partners
Supply chain traceability
Retail product audits

27. Consumers
27
Design Procure Convert Distribute Trade Consumer
Communications – product labeling
Understanding anticipated products use
Proactive use of consumer contacts
Monitoring for emerging food safety issues

28. What is Consumer Relevant Quality?
28
Consumer Relevant Quality is a program comprised
of Key Quality Attributes which are simple flavor
and visual standards aligned to customer and
consumer expectations measured throughout our
supply chain
Making Every Day

29. What Is So Special About CRQ’s ?
29
Consumer Relevant Quality (CRQ’s)
Provides a leading vs. lagging tool, insight to consumer‘s
expectations
Integrates Retail Assessment programme providing a
powerful tool for market calibration
Differentiates Mondelez , builds competitive advantage

30. Consumer Relevant Quality Journey
30
IDEATION DESIGN MAKE DELIVER CUSTOMER CALIBRATE CI
CDM 49g Packaging
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Appearance Coding Registration Sealing Back Seal Alignment
Category
%
%G %A %R
CONSUMER

31. Consumer Relevant Quality Journey
31
RACI
R –R&D (Tech)
A –Marketing
C-R&D (Senior)
C-Supply Chain Ops
I –Category Quality
I –Country Quality
Consumer
InsightIDEATION
RACI
Responsible Person that performs some or all of the tasks
Can be more than one person – segmented task or procedure
Accountable Person that will be held to account for performance/delivery
only one person allowed
Consulted Person or Persons that need to be consulted regarding the task
Informed Person or Persons that need to be informed regarding the task

32. Evaluation
• Post Launch Reviews
(R&D)
• Retails Quality Audits
(Category Quality)
• Consumer Preference
Testing against PPQS
(Marketing)
• Consumer Response
& Complaints via
Care Lines
(Category Quality)
32
Consumer Relevant Quality is specified, calibrated and improved via
Quality Measures along I2M within the supply chain
Idea Development Development
• Quality Perspective
(Category Quality)
• Concept Test
(R&D / Marketing)
• Meridian Data
Quality (R&D)
• Product Testing
(R&D / Marketing)
• Visual Standards
(R&D)
Execution
• Pre-Launch Quality
Risk Assessment
(Category Quality)
• 1st Production
Approvals
(R&D / Supply
Chain)
  
Cycle Time Metrics PDR to
Launch
Approval
Launch Approval to
First Production 
1st Prod to
Release
QualityMeasuresI2M

33. Consumer Relevant Quality Journey
33
RACI
R – R&D (Tech)
A – R&D (Senior)
C- Marketing
C- Supply Chain Ops
I – Category Quality
I – Country Quality
Product
Specification
Development
Naked
& Packaging
Process
Specification
Development
DESIGN
Key
Product
Attributes
Key
Quality
Attributes
Standard
Running
Conditions
Plant
& Equipment
Process
Capability
R – R&D (Tech)
A – R&D (Senior)
C- Supply Chain Ops
I – Category Quality

34. Consumer Relevant Quality Journey
34
RACI
R –Supply Chain Ops
(Front Line)
A – Supply Chain/Ops
(Senior)
C- Site/Plant Quality
I – Category Quality
I – Country Quality
Live
Monitoring
of
Key Product
Attributes
&
Key Quality
Attributes
Live
Monitoring
of Process
Standard
Running
Conditions
MAKE

35. 35
Product Quality Visual Standard
Attribute Red
Unacceptable
Amber
Min acceptability
Green
Target
Recipe
distribution
(Inclusions)
Uneven Fair distribution Even distribution
Quality Improvement
Product Quality Visual Standards

36. Consumer Relevant Quality Journey
36
RACI
R – Supply Chain
(Distribution)
A – Country Q
C- Category Quality
I – Supply Chain Ops
Transport
&
Storage
Condition
Mgmt
DELIVER

37. Consumer Relevant Quality Journey
37
CUSTOMER
GROWTH
PROFIT
Customer
Confidence
Meeting
Customer
Expectations
Consistent
Quality
Shelf Space
Preference
over
Competitors

38. Consumer Relevant Quality Journey
38
CONSUMER
Consumer
Preference
V’s
Competitor
Products
Making
Every Day
Meeting
Consumer
Expectations
Consumer
Trust

39. Consumer Relevant Quality Journey
39
RACI
R – Category Q
(Project Owner)
A – Country Q (Senior)
C - Supply Chain/Ops
C - Marketing
C - Country Q
I – Supply Chain Ops
(Front Line)
Market Place
Buy Back
Post Production
Quality Reviews
Consumer
Preference Testing
Consumer
Response
Consumer
Complaints
CALIBRATE
CDM 49g Packaging
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Appearance Coding Registration Sealing Back Seal Alignment
Category
%
%G %A %R

40. Consumer Relevant Quality Journey
40
RACI
R – R & D
R – Supply Chain/Ops
R – Country Q
A – Category Q
C - Marketing
I – Supply Chain Ops
(Front Line)
Product
Specification
complianceCI
Prioritised
Corrective
Action Plans
implemented
at agreed
stage in CRQ
Process -
Ideation
Design
Make
Deliver

41. CRQ Summary
41
CRQ’s are Key Quality Attributes that are simple flavor
and visual standards
Align to customer and consumer expectations at the
point of sale and consumption
Measured throughout our supply chain
Delivering consistent products that provide consumer
preference over our competitors

42. Middle East Case Study –
Cheese Handling in the Supply
Chain
42

43. Philadelphia –
Supply Chain Evaluation
43
• 8.00 am: - A Philadelphia Order to a major Key
Account being picked up for delivery from the
Distributor warehouse (temperature +6 DC)
• Cartons were loaded manually into
the reefer truck and was stacked
properly (but cartons exposed to
direct sunlight for a short period!).

44. Philadelphia –
Supply Chain Evaluation
44
• The temperature inside the van before loading
was +27 DC which is not the ideal temperature
while delivering Philadelphia.
• Truck reached the outlet receiving area after a 25 minute
drive. The temperature of the truck at that time was down
to +4DC. All supplier truck s were positioned outside this
small receiving area which was right on the road. No
separate receiving area for chilled/ambient products.
Receipts inside the outlet were on a first-in-first-come basis
and we were No.17 in the queue.

45. Philadelphia –
Supply Chain Evaluation
45
• It took around another 20 minutes (we were lucky as the average time is around 45 to 90 minutes) for
the outlet representative to come and ask us to off-load the cargo onto their receiving cages provided
(as shown in the above pictures). There was no checking of temperature to ensure the products have
arrived in the right conditions. All cartons were stacked inside the cages provided in the open (products
had direct sunlight for atleast 5 minutes. Outside temperature +36 DC)

46. Philadelphia –
Supply Chain Evaluation
46
• These cages were then taken inside and kept near the
door (inside the receiving area) for bar-code checks and
receiving into their warehouse inventory/system. The
products sat there for the next 30 minutes since other
suppliers were also in the queue. The temperature in this
area was around +30 DC.
• These receiving cages were then taken into the storage areas
(a few meters inside the outlet). The temperature of the
storage area was +8 DC. It’s a small warehouse with all
chilled items from milk to cheese being stored. The
Philadelphia cartons were kept on the floor. Just a meter
away, in one corner in the same warehouse – there was a
segregated area for keeping damaged/expired items for
destruction. We found some cartons of expired/damaged
cartons of milk/juices. However, there was no spillage or any
evidence of cross-contamination at that time.
•

47. BU Quality Observations/Recommendation
47
• A major concern was noted on reefer temperatures once it leaves the port. The container arrives
unplugged during transit from the port to warehouse. This as you know is harmful for the product
(especially during summer). The data logger confirms that the container temperature at the time
of warehouse arrival was around +18 DC (it should never go above +8C). During the 30 days transit
(source to Bahrain port) it was consistently maintained at +5C. Needs to be taken up on a priority
with the port authorities as this is not acceptable as Kraft delivers CIF in a reefer container and we
expect to see the products off-loaded at your warehouse within the set temperature (as done
from origin).
• Trucks shall be conditioned to the specified temperature prior to loading. Also internal
temperature of the vehicle shall be checked and recorded before loading.
• Need to influence the Key Accounts staff to priortise reefer deliveries to be accepted/quickly
taken to the warehouse to maintain ideal temperatures at all times. It would be also
recommended to have the front of the receiving area covered to avoid direct sunlight on the
products if not having a dedicated temperature controlled off-loading area for reefer products.
Also keeping damaged/expired items in the same warehouse is not recommended as it risks cross-
contamination and odour transfer.

48. Thought for the Day!
48
– A world where all members of the global food industry
have a common platform to manage food safety and
protect our consumers, wherever they may be…
– … allows us to focus on making Delicious products

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