Global Food Safety Strategy November 10, 2010 Darden ● Darden is the world’s largest full service restaurant company Red Lobster, Olive Garden, Longhorn Steakhouse Capital Grille, Bahama Breeze, Seasons 52 ● Nearly 1,800 company owned and operated restaurants in over 1000 North American communities ● Employs more than 180,000 people across North America ● Serves over 400 million meals to US customers annually 2 A Fast Moving Global Supply Chain $3.0 billion in purchases 6 distinct Brands Supply 1,800 restaurants – 2,200 SKU’s – 1,500 suppliers – 35 countries – 180,000 people handling food at the restaurants Largest food service direct importer of seafood in the US Second largest buyer of US beef in full service restaurant sector Move over 40 million cases of product per year through: – Multiple Distribution Channels including: o Grocery, Produce, Fresh Fish, Dairy, Bakery and Beverage Alcohol – More than 100,000 deliveries a year, and covering over 12 million miles 3 Darden Global Food Safety Standards Seasonal Suppliers TEAMWORK SUPERIOR FOOD SAFETY & QUALITY 4 Superior Team “Category Experts” Regional Local Suppliers Superior Processes & Systems Large Consolidated Suppliers Global Supply with World Class Vendors COMPETITIVE ADVANTAGE SUPERIOR QUALITY, SERVICE, INNOVATION & VALUE Development of small suppliers to bring new products to market Our Total Quality Mission In alignment with our Brands’ objectives, provide Darden with a competitive point of advantage, in terms of: 5 The highest levels of food safety The cleanest restaurants Food and beverage quality that always meets our specifications Total Quality Strategy Strategy: Utilizing a risk based, Hazard Analysis of Critical Control Points (HACCP) approach, ensure food safety practices are integrated at all levels of the Darden Supply Chain including Restaurants, providing: – Highest level of security (domestic & international) – Traceability from pond to plate/farm to fork Strategic Focus: Proactive vs. Reactive protection of our guests and Brand Staying current with all food safety issues and trends Building strategic relationships with Industry, Government and Academia 6 Darden Supply Chain Food Safety Management and Control Process Typical Product Safety Checks: – Long after harvest, processing, distribution – “Random” testing at end – Inhibits feedback for process improvements 7 Darden Inspection at the Source: – Inspect product and processes at the source – Provide immediate feedback on food safety – Complete microbiological/chemical testing before products are shipped to the U.S. using FDA approved methods – Lot numbers and traceability systems ensure product tested is product received Darden Global Food Safety International Team of Food Safety and Quality Professionals – Over 50 Biologists, Food Scientists, and Public Health Professionals Located Around the World 17 Field Plant Inspectors in US and 10 foreign countries who inspect food plants, products and processes 20 Field Total Quality Managers who review and certify inrestaurant processes The best way to ensure quality is to go to the source 8 Darden Restaurants Global Food Safety Benefits of Point Source Inspection ● Inspection program shifts to the “source” ; becoming proactive vs. reactive ● Results in safer, more consistent products ● Industry proactively engaged in food safety education and supplier training ● Focus resources on least developed supply sources Supplier Food Safety Best Practices Strategic alliance with suppliers to drive Total Quality – Clearly defined product specifications – Specification validation – Technical resources, training and development – Point of Origin Inspection and testing of seafood and fresh produce Visibility to Manufacturing Facilities Inspection Data – Products may only be purchased from approved Manufacturing Facilities Visibility to Critical Product Data – Full visibility to Food Safety and Quality Compliance – Corrective Action Tools to drive Continuous Improvement – Full visibility to supplier data verifying products meet the Specifications prior to shipping Full Product Traceability – Highest level of security to the Darden supply chain with traceability from pond to plate/ Farm to fork – Shelf Life Management – Food Safety Crisis Management 10 Darden Food Safety Best Practices SPECIFICATIONS SUPPLIERS • “Heart & Soul of Product Quality” • Partnership for Supplier development • Culinary, TQ, Purchasing Process • Products are purchased from approved Manufacturing Facilities • Process validation • Food Safety and Quality Criteria • Visibility to Manufacturing Facilities Inspection Data • Food safety and production process controls • Traceability • Recall Capability 11 PRODUCT SAFETY QUALITY VERIFICATION • Laboratory verification of spec compliance for all critical Darden products • Comprehensive microbiological & chemical testing • Third Party Certification RESTAURANTS • Full Product traceability • Rapid response/ recall capability • Third Party Certification Darden Global Food Safety Global Aquaculture Third Party Certification 12 Darden Food Safety Systems Proactive vs. reactive Food Safety controls – Risk based – HACCP Focus – Third Party Verification Inspect product and processes at the source Complete testing before products are shipped to the U.S. Lot numbers and traceability systems ensure product tested is product received Darden and 3rd Party Companies verify products meet product specifications In Restaurant HACCP Focus Raw Material Suppliers Manufacturers Distributors Guests Data into Information Continuous System Improvement Food Protection – Darden Verification at the Source Timely Problem Identification, Resolution & Communication 13 Restaurants Comprehensive Global Food Safety Model Food Safety Education Restaurants Extensive network of external consultants Darden Team acts as teachers/consultants Supplier Engagement Processes and Tools • Good Manufacturing Practices • Clearly defined product specifications • HACCP • On-site process validation • Point of Origin Inspection • Monitoring supplier data for continuous improvement • Food Safety Data Monitoring and Corrective Actions CONSUMER SAFETY Industry Leadership Service Excellence • GAA/NFI Standards Committee • NRA QA Executive Study Group • Produce Associations/Tomato Councils Government and Regulatory Partnership • National Cattlemen’s Beef Association • Conference of Food Protection • Global Food Safety Initiative • FDA, USDA, CDC • State Public Health Associations 14 • Traceability & Visibility • Crisis Management • Problem resolution • Recall Capability Thank you!