1

Kraft Foods North AmericaSupplier Quality and Food Safety Forum

Specification Requirements and Process - Kraft Foods GKIT

GFSI Certification Expectations

January/February 2012

22

Introduction 5 mins

Notification to Kraft Foods 5 mins

GFSI Certification Expectations 15 mins

Global Specification Management System– Process 15 mins

– GKIT 45 mins

Closing Summary 5 mins

Q and A 30 mins

Agenda Topics

3

Completed 2009 – 2011:• Supplier Quality and Food Safety Overview, Kraft Foods Supplier Audit Program• Material Monitoring Program and COA Requirements• New Kraft Foods Raw Material Specification Requirements and Process• Supplier Quality Expectations (SQE)• Supplier Quality and Food Safety Requirements (Audit Tier, Micro Tables)

Today’s Topics:• Notification to Kraft Foods• GFSI Certification Expecations• Kraft Foods Raw Material Specification Requirements and Process• Spec Communication

3

Supplier Forum Program Overview

444Monitoring

Policy/Contract Requirements

Continuous Improvement Selection/Approval

A comprehensive approach to managing supplier quality

• Supplier QI Program• Supplier Quality Partnerships• Supplier Development • Industry Benchmarking

• Quality Policy• WW Supplier Quality

Expectations (SQE)• Supplier HACCP Manual• Material Specifications

• WW Quality Audit Program• Materials Monitoring Program• COA Verification• Supplier Performance Monitoring• Certificate of Conformance (COC)

• Risk Assessments• Supplier Pre-Assessment• Quality Audit Approval

Supplier Quality Management

5

Communication with Kraft Foods

The Supplier must immediately notify Kraft Foods of occurrences which could affect the processing, food safety or quality of materials supplied to Kraft.

–Inadvertent release from Hold of any material produced for Kraft

–Notification by law enforcement or other authority of a potential product security event

–Identification of an unlabeled allergen in material produced for Kraft

–Inability to deliver materials that meet Kraft Specifications

–Changes to suppliers processes and/or facilities that could have an impact on materials supplied to Kraft

–In the event of a positive pathogen result (in the lot or in similar products produced on the same line and/or direct contact surface swab), Kraft Foods Contracting Representative must be notified, even if the specific lot is not sent to Kraft Foods

6

A Case for GFSI Certification

•There is only one true internationally recognized certification for food plants Food Safety Management Systems

•That is GFSI (Global Food Safety Initiative) approved certifications •Launched in 2000

•400 members in 150 countries

•Mission: Continuous improvement in Food Safety Management System (FSMS) to ensure confidence in the delivery of safe food products to consumers

•Objective: Convergence between food safety standards

•Mantra: “Once certified accepted everywhere”

Revised 2011 Categories and Audit Matrix

TierIngredient Categories

(List is not all inclusive - refer to the Raw Material Tier Assignment list for details)

Qualification Process

(new)

Accepted Audits and Certifications

(ongoing)

Target Freq.

(years)

1 RTE Meats, Cheeses, RTE Raw Fruits/Vegetables Kraft Audit Kraft Audit 1.5

2

RTE Nuts/Seeds/Coconut, Retorted and Aseptic Products (Low Acid Canned Foods), Cocoa/Chocolate/Confectionary, Treated Herbs/Spices/Seasoning; Tea and Tea Products; Egg and Egg Products; Dairy Products and Substitutes; Yeast; Enzymes

Kraft Audit

1Certifications or 3rd Party SQE + Supplier Food Safety Assessment (frequency determined by Food Safety Group)

2

Fruit and Fruit Products, Vegetable and Vegetable Products, Flavoring Ingredients (material assigned to tier 2 or 4 - refer to the Raw Material Tier Assignment list for details)

4

4Grain and Grain Products, Emulsifiers; Prepared Sauces/Spreads/Condiments, Coffee and Coffee Products, Bread and Bakery Products; Sugars and Sweeteners; Starter Media/Culture; Fats and Oils; Food Additives; 3Raw Meat and Raw Meat Products, Food Chemicals Hydrocolloids and Gums, Wafers; Untreated Herbs/Spices/Seasoning;

3rd Party SQE or1Certifications

3rd Party SQE or1Certifications

3

5

Raw Milk and Cream, Nationally Branded Confections; Green Coffee Beans; Compressed Gases; Raw Grains; Raw Nuts/Seeds/Coconut; Raw earthen materials (e.g., unprocessed materials mined from the earth); Alcoholic Substances (Spirits, Liquors)

Audits may be required as result of a risk assessment by BU or Plant using the material

NA

1.Certifications include GFSI (SQF 2000 Level 2 or 3, BRC version 5, IFS version 5, Dutch HACCP option B – until December 31, 2011, ISO22000 + PAS220, FSSC22000)

2.Not Accepted:1.) ISO22000 audits without PAS220, 2.) GMA-SAFE dated after December 31, 2011, 3.) Dutch HACCP issued after January 1, 2012

3.NSF Cook and Thurber and Silliker audits accepted only for raw meat and raw meat products until further notice4.AIB accepted for Flour mills only until further notice5.Where local regulatory considerations make a higher tier rating necessary, this must be documented in local procedures and notified to auditing, a

lower tier rating cannot be applied.

Last Revised: 7-September-2011

24

8

A Case for GFSI Certification

•BRC, IFS, SQF, Dutch HACCP, FSSC22K all recognized

•Kraft Foods committed to having all internal facilities obtain an accredited, independent verification of its food safety management system – in the form of GFSI certification – by 2013

•FSSC22K selected by Kraft Foods for internal facility certification

•Approach is being extended to our supply base – it is a requirement that all raw material suppliers to Kraft Foods attain GFSI certification by Dec. 31, 2014

•Some benefits of GFSI:•Promotes food safety•Provide a standard across the industry•Lower cost•Reduce audit fatigue

9

• Kraft Foods global Product and Packaging Specification and Nutrition Management Application enables

– development and management of all raw, formula, pack and product specs

– sharing of specifications within the region and across the world

– common generation and management of all product label declarations

– seamless linkage between RDQ, Master Data and Supply Chain

• Kraft Foods Global Specification System implementation worldwideto all Kraft RDQ centers and manufacturing facilities

– KRAFT and LU scope: fully implemented

– CADBURY scope: data migration and implementation ongoing, completion target Q3 2012

• Kraft Foods Global Specification System includes consistent gathering of raw material information via Global Kraft Information Tool (GKIT)

– GKIT in place in NA for 4 years

– GKIT replacing current "Supplier Questionnaire" in EU and CEEMA

Global Specification Management System

New Kraft Foods Specification Structure

Product

PLR Product Label Report

BoM Package Component

Formula

Plant Allergen Profile

BoM

Raw Material Raw MaterialRaw Material

Supplier Info Supplier InfoSupplier Info

GKITSUPL GKITSUPL GKITSUPL

SUPL = Supplier Location Spec

GKIT = Global Kraft Information Tool

Legend:

Formula

ProductPackage Component

BoM

BoM

New Kraft Foods Specification Structure

Raw Materials

Supplier Info

GKITSUPL

Of Critical Importance:

• SUPLspec for each approved suppliermanufacturing location/site

• GKITingredient information documentper each supplier

• RMATconsolidated ingredient /raw material specification

• SARspecification agreement reportper each supplier

Specification Agreement Report

SUPL = Supplier Location Spec

GKIT = Global Kraft Information Tool

Legend:

12

New Kraft Foods Specification Structure

13

GKIT Process

• Kraft pre-populates base info in GKIT template– admin info– micro parameters

• Kraft sends GKIT to supplier– via e-mail, as xml file attachment

• Supplier completes GKIT– supplier location info– technical info

• Supplier returns completed GKIT to Kraft– via e-mail, as xml file attachment

• Kraft integrates GKIT into Global Spec System– checks for completeness and correctness– creates of actual raw material spec– creates SAR and sends it to supplier

• Supplier approves Raw Material Spec via SAR– checks and approves SAR– returns approved SAR to Kraft

New Kraft Foods Specification Structure

14

SUPL - Supplier Location "Specification"

Purpose• assure that Kraft only buys from approved and audit compliant suppliers and locations• facilitate traceability and rapid response in case of special situations or issues

Content and Process• Content

– commercial address and contact details– production location address and contact details– audit compliance status and next audit / re-certification date– authorized ingredient categories and possible restrictions

• Created and maintained by Kraft's global Auditing team– when a supplier location gets qualified and approved – when a supplier location is re-audited, re-certified or restrictions changed– when a supplier location is disapproved

• Linked to relevant raw material spec by RDQ– buying only possible from supplier locations that are linked to raw material spec

New Kraft Foods Specification Structure

15

Specification Agreement Report

• Specification Agreement Report key elements: – Supplier Name – representing Kraft-approved supplier

manufacturing location << New– Ingredient Trade Name– Ingredient Declaration– Ingredient Composition– Allergen Status << New– Micro Properties– Kosher/Halal Certification– Shipping and Storage Properties– Shelf Life and Minimum Guaranteed Remaining Shelf Life

• Supplier receives the Kraft Specification Agreement Report and is expected to deliver material in accordance with Kraft requirements

RMAT Specification Agreement Report Feedback Form

• Suppliers should receive a Feedback Form along with each Specification Agreement Report

• The SAR Feedback Form is similar in content to the form currently used in KFE and CEEMA

• Suppliers are asked to indicate acceptance of the SAR, or document reasons they are unable to accept the SAR

• Please return completed feedback forms via email to your Procurement contact and copy the centralized Global Spec Communications mailbox at globsupspeccom@kraftfoods.com

16

Specification Approval Report Feedback Form

TO:

SUPPLIER:

DATE:

Raw Material Name: Kraft (Meridian) Raw Material Part Number: Version: Last Modified Date:

Kraft SAP Material Code(s): Supplier’s Material Item Number(s): Supplier site(s) where the raw material is produced:

Please indicate your acceptance of the attached Specification Agreement Report (SAR) by checking the box below and signing and e-mailing this SAR Feedback Form to <buyer email address> with a copy to the Kraft Global Spec Communications Mailbox at globsupspeccom@kraftfoods.com. Acceptance By signing below, you confirm on behalf of your company (the supplier listed above) that you are aware that the SAR contains requirements with which the raw material listed above that you supply to Kraft must conform. You acknowledge that your understanding of the SAR and ability to supply raw materials to Kraft that conforms to the SAR is a key factor in Kraft’s decision to purchase such raw material from you. You will notify Kraft if your company is unable to meet this specification for any reason in advance of shipment. By accepting the SAR, you agree that it will be available directly at the production site(s) listed on the SAR.

Name: ………………………………………………. Signature: ………………………………………….……….

Position: ……………………………………………. Date: ……………………………………………….……….

If you do not accept the SAR, please indicate so by checking the box below, and identify why your company is not able to comply with the SAR. Please indicate any specific section(s) of the SAR that you are unable to meet, and the reasons why. Please also provide a name and contact information for the appropriate person for follow-up at your company: Non-Acceptance ……………………………………………….……………………………………………….……………………………………………….……

……………………………………………….……………………………………………….……………………………………………….……

……………………………………………….……………………………………………….……………………………………………….……

………………………………………….……………………………………………….……………………………………………….…………

Contact Name: ………………………………………… Phone / e-mail Address: ………………………………………….

Title: ……………………………………………………… Date: ………………………………………….……….……….……

17

GKIT and RMAT Spec Process

Note: final split of tasks between RDQ and Procurement may be locally adjusted depending on specific needs

Basic communication flow model

KraftRDQ

Supplier

KraftProcure-

ment

Create GKIT xml templatewith base info

Check GKIT for

completeness and

correctness

Return SAR feedback form

indicating acceptance to Procurement

Complete GKIT template

Send GKIT as xml file

via e-mail

File Supplier approval and

reference spec in contract

Return completed

GKIT as xml file

via e-mail

ok?

Review RMAT and create

SARin Meridian

Review SAR

no

yes

Send SAR to supplier via e-mail

Accept SAR?

no

yes

Review SAR feedback form

Revise RMAT Spec, and issue Spec Change

Notification

Create RMAT spec, issue

Spec Change Notification

Summarize issue(s) on SAR Feedback form

no yesTechnical

Issue?

Integrate GKIT into Global

Spec system

Respond to non-technical

Issues

NotifyProcurement

(email)

How to Complete the Global Kraft Ingredient Tool (GKIT)

Review Guide for Ingredient Suppliers and Kraft Foods RDQ

18

How to Complete the Global Kraft Ingredient Tool

19

Description

Executive Summary

GKIT – Instructions

GKIT – Kraft GKIT Instructions

GKIT – Kraft Contact Information

GKIT – Review and Approval Information

GKIT – Region and Additional Information

GKIT – Supplier Plant Information - Supplier Headquarters

GKIT – Supplier Plant Information – Plant Information

GKIT – Supplier Packaging Information

GKIT – General Information

GKIT – Composition Section – Ingredient Component List

GKIT – Composition – Allergens/Sensitivities

GKIT – Composition – Substances of Interest

GKIT – Composition – Flavor Information

GKIT – Composition – Active Enzymes, Color Information, Chemical CAS Information

Description

GKIT – GMO Assessment

GKIT – Nutrition Information

GKIT – Analytical Instructions

GKIT – Microbiological Requirements

GKIT – Regulatory Information

GKIT – Kosher / Halal Certification

GKIT – Dietary Suitability

GKIT – Shipping and Storage

GKIT – Active Enzymes Addendum

GKIT - Gluten Assessment Addendum – Ingredient Identification

GKIT - Gluten Assessment Addendum – Cross Contact Assessment

GKIT – Natural Addendum

GKIT – Non-GMO Addendum

GKIT - Peanut-Nut Free Status Addendum

GKIT – Vegetarian / Vegan Addendum

Components of the Training and GKIT

20

• The goal of this document is to familiarize the user with Meridian/Interspec Global Kraft Ingredient Tool export XML that is sent to suppliers.

• Objectives– At the end of this guide, users will understand the following:

• Expected fields to be completed by Kraft RDQ in the Meridian/Interspec Specification system prior to exporting and sending the XML to a supplier.

• Guidance for the supplier on fields to complete and the expected data that is to be entered by the supplier.

• Fields that Kraft RDQ must review and confirm for compliance to Supplier Site Locations, Microbiological Agreement and Testing Labs when the completed GKIT is returned from the supplier.

• NOTE: The screenshots used throughout this user guide are for illustration purposes only. Various specification numbers are used.

Summary/Objectives

21

GKIT – Instructions

• The Kraft Foods GKIT file is in an XML format

• Kraft Foods RDQ - Once you export this from the Specification system, you must save it to a C:drive before you can send it as an attachment to your supplier for completion

• Supplier – when you receive the Kraft Foods .xml GKIT as an attachment in an email, you must save it to a C:drive before you can work with it

• The GKIT .xml is safe to work with and is compatible with Internet Explore 6.0 or greater

• Please reference Kraft Foods GKIT – How to Work with the XML File – Supplier Instructions document for detailed instructions on XML files.

– Kraft Foods RDQ - Please send the “How To Work with the XML File” document to your supplier with the GKIT

– Supplier – Please notify Kraft RDQ if you do not have a copy and/or are having issues with the .xml file

22

GKIT – Kraft GKIT Instructions

• The Menu will be on the left hand side of the screen. The Menu is where the SAVE and PRINT buttons are located.

• The information on the Menu can be selected (clicked) to activate the section for viewing on the right hand side of the screen.

• The GKIT will open to the first section – Kraft GKIT Instructions

23

GKIT – Kraft GKIT Instructions

• The XML document allows the user to edit the different sections to be edited without saving between sections.

• BUT – The data will not be saved until the SAVE FILE button in the left side menu is selected.

When SAVE FILE is selected, the Windows Internet Explorer window below will appear requesting you to confirm you want to save the document.

Select OK to save the edits and save the document back to the C:drive where this was filed.

Please Note: This Save may take several minutes. Please do not end the browser or close the screen or turn off the computer until you receive the FILE SAVED! indicator – OR your edits/inputs will be lost and not saved.

24

GKIT – Kraft Contact Information

The Kraft RDQ requestor must complete this section in the Meridian Spec system prior to exporting GKIT

Fields completed by Kraft prior to the export that cannot be edited by the Supplier are displayed in light grey

The following sections have data that will be completed by Kraft Foods within the Meridian Specification system prior to exporting the GKIT to XML and will not be editable by the supplier:● Kraft Contact Information

● Some portions of the Review and Approval Information

● Region and Additional Information

● Some portions of the Microbiological Requirements

All other fields are available for the supplier to edit to complete the data entry when they receive the GKIT XML file

25

GKIT – Review and Approval Information

• The Kraft RDQ requestor can enter data in this section in the Meridian Specification system prior to exporting GKIT

Existing Current Approved Specification:

• Kraft RDQ can enter the specification system-assigned number for the Raw Material Specification that may already exist in the Kraft Meridian Specification along with the Date and Version number of that specification.

• For new ingredients leave this section blank.

Review and Approval Information:

• Kraft RDQ should enter the Date they need the GKIT completed by in the Kraft Meridian Specification prior to exporting the GKIT to XML.

• The supplier can enter the date that they completed the form or date of any revisions.

• Kraft RDQ can enter the Date of Kraft GKIT review and approval into the Meridian Specification system upon the date when RDQ reviews the completed GKIT from supplier and submits to create an RMAT.

Light grey fields cannot be edited in the XML format and must be pre-entered into the Meridian system prior to exporting

Black fields can be edited within the XML format

26

GKIT – Region and Additional Information

GEOGRAPHIC REGION INFORMATION: Kraft RDQ Requestor will begin by determining where the

ingredient will be used for production and regions where the finished goods will be sold into. Check appropriate box(es) to select the region(s) where the ingredient will be sold and produced. They will enter this data into the Meridian system prior to exporting the GKIT to XML.

OTHER KRAFT GKIT SECTIONS REQUIRED and OTHER KRAFT FORMS REQUIRED

This section lists specific additional forms that may be required based on either the classification of the ingredient OR on the finished product which utilizes the ingredient.

The Kraft RDQ contact must determine the ingredient’s raw material functionality in the finished product in which it will be used, and consider which addendums (if any) will be required.

The Kraft RDQ developer must enter the Required Checkboxes into the Meridian system prior to exporting the GKIT to XML for the Other Kraft GKIT Sections Required and the Other Kraft Forms Required.

The Other Kraft GKIT Sections Required that are indicated as ADDENDUM will only display in the exported GKIT if they are selected in the Meridian specification prior to the export to XML. They will then be available in the XML GKIT for the supplier to complete.

ADDITIONAL KRAFT FORMS REQUIRED Kraft RDQ will enter text information into the field for

other forms which may be required into the Meridian system prior to exporting the GKIT to XML

This section is to be completed in the Meridian system prior to export to XML. It cannot be edited in the XML.

27

GKIT – Supplier Plant Information – Supplier Headquarters

SUPPLIER

HEADQUARTERS INFORMATION:

• The supplier shall complete this table, providing the Company Headquarter information . This may be different than the next sections where the information is specific to the site information where the material is actually being manufactured.

28

GKIT – Supplier Plant Information – Plant Information

PLANT INFORMATION: The supplier shall complete this table,

listing information on each plant that manufactures the ingredient/finished good.

The Establishment Number shall be noted if applicable (e.g., USDA-registered plants).

All suppliers must meet Kraft’s Supplier Quality Expectations (SQEs) before becoming an approved supplier. (KRAFT RDQ must confirm upon return of this document to confirm if the supplier is on the List of Approved Global Ingredient and Commodity Suppliers . If not listed here, check the Global Approved External Manufacturing List for co-manufacturers.) If the supplier is not on either Kraft internal list, then the supplier will need to be audited and approved by Kraft, to be available in the Spec System. Kraft RDQ will work with Kraft Procurement and the Kraft SQE Audit team to request the sites be Audited for approval.

The supplier shall indicate whether or not it has been audited by a third party.

If the supplier has other food certifications it should be noted.

If one of the listed plants is a co-manufacturer then type “Yes” and state the name of the co-manufacturer. This plant must also be approved by Kraft.

29

GKIT – Supplier Packaging Information

SUPPLIER PACKAGING INFORMATION The supplier will enter their

Ingredient Name or Trade Name for the material being supplied.

The supplier will provide information on the size and type of packaging the ingredient will be shipped in. A Kraft Material Code will be requested based on this information. Supplier may provide several pack sizes.

The supplier must provide the ingredient declaration for all regions selected on the region page. For example if Canada and United States are selected, the supplier provides the ingredient declaration for both Canada and United States.

The supplier’s code dating practice shall be identified and an example provided.

30

GKIT – General Information

GENERAL INFORMATION

• Ingredient Description: The supplier shall provide a detailed description of the raw material in the description section.

• In the description section the supplier must indicate any significant manufacturing/process related elements e.g. blanched, frozen, retorted, roasted, spray dried, sun dried, and physical state e.g. liquid, powder

31

GKIT – Composition Section – Ingredient Component List

COMPOSITION• The Ingredient Component List composition table consists of four primary

sections:• Ingredients• Composition (Target or Min/Max Range)• Functionality• Ingredient Country of Origin

32

GKIT – Composition Section – Ingredient Component List

INGREDIENT:• The composition consists of a listing of ALL components AND sub-components (if

applicable) of the ingredient IN DESCENDING ORDER OF PREDOMINANCE. • Subcomponents should be indicated by indenting these ingredients in the listing by using

spaces prior to entry.• The listing shall include processing aids (if used) and incidental additives (if present).• Kraft RDQ should compare the ingredient composition to the ingredient declaration found

on the Supplier Packaging page to ensure the sequence of ingredients matches.– Note: The composition and ingredient declarations may not match exactly as

processing aids and incidental additives might not be listed on the ingredient declaration.

• Kraft RDQ should compare the ingredient composition to the Allergen/Substances of Interest section to ensure information is consistent.

• Note the section immediately below the composition table which lists additional requirements for specific components/ subcomponents.

• This information shall be provided as part of the composition table.• The source of ingredients shall be noted in the ingredient description section as indicated.• If a natural and artificial flavor is used, the percentage of each portion shall be indicated.

– For example, if a natural and artificial chocolate flavor is used as a component of the ingredient, then the flavor component should indicate x% natural flavor and y% artificial flavor in the ingredient description section.

33

GKIT – Composition Section – Ingredient Component List

COMPOSITION TARGET % / COMPOSITION MIN MAX %

For the composition, exact percentages are required, such that the components total sums to 100% and the subcomponents total sums to 100%.

• Note that if the “composition extended” tab is used, the values from that page will be included in this sum.

• Note that < (less than) and > (greater than) symbols should not be used.

• If necessary and permitted (by region), min/max ranges may be used to represent the percentage of each component in the ingredient such that proprietary formula information is not disclosed.

• If used, min/max ranges in no greater than 10% increments shall be used.

• Components/ subcomponents (including processing aids and incidental additives) which have a regulatory usage limit must be clearly disclosed in the table.

FUNCTIONALITY:

• The specific functionality of each ingredient shall be noted as indicated.

• Common functionalities include, but are not limited to:• Color; Flavor; Preservative; Processing Aid, Carrier, Emulsifier, Incidental Additives, etc.

• Note that the functionality of subcomponents shall be noted as well as that of the primary components.

COUNTRY OF ORIGIN:

• The country of origin REPRESENTS THE LOCATION WHERE THE MATERIAL WAS MANUFACTURED/PRODUCED.

• When the material undergoes substantial transformation in a second country, the country in which the transformation is performed shall be considered the country of origin.

34

GKIT – Composition - Allergens/SensitivitiesALLERGEN/SENSITIVITIES

This section is broken out into 5 subsections:• Cross Contact Method or Explanation• Global Food Allergens• Regional Food Allergens• Food Sensitivities and Intolerances• Allergen Control Program

The presence of any allergens or sulphites listed in the attached table must be declared.

Determine whether the allergen or sulphite is present via direct addition, cross contact (indirect addition), or present on production line. These terms are defined above the allergen table in the GKIT.

Direct addition allergens and sulphites should also be included in Ingredient List of the Composition Section

Indicate the presence (or absence) of the allergen or sulphite by selecting does contain, does not contain or cross contact next to the name of the allergen in the appropriate row.

Provide the source of the allergen or sulphites. For sulphites, also include the level added in

parts per million (mg/kg). If the allergen or sulphite is present via cross

contact (indirect addition) state the testing method or rationale for indicating presence of the allergen or sulphite in the box above the allergen table.

If the raw material does not contain any allergens or sulfites, the table must be completed with response of does not contain.

Indicate whether there is an allergen control program in place and the method of the control program. DO NOT LEAVE THIS BLANK! If there is no allergen control program, answer NO and indicate the reason in the method of control section.

35

GKIT – Composition – Substances of Interest

SUBSTANCES OF INTEREST

• The purpose of this section is to identify other substances that may be in the material that have a history of eliciting reactions in those individuals that are sensitive to them.

• Indicate the specific constituents listed in the table if they are present in the ingredient.– Note: The constituent may be either directly added as an ingredient component or introduced via a

processing aid or additive.

• If present, also indicate the source of the constituent (e.g., whey derived from milk).

GKIT – Composition – Flavor Information

FLAVOR INFORMATION: Fill this section out for all flavor

ingredients, including formulas with flavoring systems. Flavoring systems may create the need for a label qualifier. Flavors that include allergenic substances must declare all allergens.

Flavor(s) included in this section should also be included in the Ingredient Component list of the Composition Section.

NATURAL ● example – vanilla extract● When using natural flavors in

ingredient statements they can be called by their common name or “Natural Flavor”.

● Flavors from animal extracts must always list the species name, i.e. NATURAL BEEF FLAVOR.

● Smoke flavoring may not be listed as “Natural Flavor” or “Flavor”, but may be declared “Natural Smoke Flavoring” or “Smoke Flavoring”.

NATURAL TYPE ● example – natural mango type● This will be loaded in the composition

as “Natural Flavor”.

36

GKIT – Composition – Flavor Information

• NATURAL/ARTIFICIAL BLEND (CONTAINS SOME NATURAL FLAVOR INGREDIENT FROM NAMED FOOD)

– example – natural and artificial vanilla flavor– In the composition section, the Natural and Artificial portions should be entered separately to

facilitate labeling.

• NATURAL/ARTIFICIAL BLEND (CONTAINS NO NATURAL FLAVOR FROM NAMED FOOD) – example – natural and artificial vanilla type flavor– Same as preceding entry, except the natural vanilla type portion will be loaded in the composition as

“Natural Flavor”.

• ARTIFICIAL– example – artificial maple flavor– This will be loaded in the composition as “Artificial Flavor”.– Artificial smoke flavoring must be labeled as such.

• COMBINATION OR FANCIFUL FLAVORS– Fill in this field when there is a blend of characterizing flavors and list all separately (Apple, Pear,

Grape…) – Complete this field for fanciful flavors (example, Tropical Blend) – Pineapple, Coconut…etc.

• FLAVOR and EXTRACT MANUFACTURERS ASSOCIATION– Indicate the FEMA Number if available for the material being supplied if applicable

37

38

GKIT – Composition – Active Enzymes, Color Information, Chemical CAS Information

ACTIVE ENZYMES: The supplier shall indicate whether

or not the raw material contains active enzymes.

COLOR INFORMATION: If the material supplied is a color,

indicate the color type as either Artificial or Natural

CHEMICAL – CAS INFORMATION If the material supplied is a

chemical, indicate the CAS Number in the field.

39

GKIT – GMO Assessment

GMO Assessment: The supplier is to indicate the

presence or absence of a derivative of select identified crop ingredients

The supplier is to indicate if the ingredient or any of its components was derived from a genetically engineered microorganism (GMO) or fermentation process.

The supplier is to indicate the Unavoidable GMO contamination status

The supplier is to complete the GMO Assessment checkboxes which summarize the above information into whether the material is from a GMO Crop and Contains GMO Proteins

40

GKIT – Nutrition Information

NUTRITION INFORMATION: Nutrients are grouped by classification –

Macronutrients, Vitamins, Minerals, Sugars/Sugar Alcohols, Fatty Acids, Amino Acids, Intense Sweeteners, Antioxidants and Polyphenols, Other

MACRONUTRIENTS The values in this section must be in agreement

with the Analytical Chemical/Physical Sections• Moisture• Fat• Ash• Protein• Salt

Include all data where available and relevant. If the value is zero, enter ‘0’; if data is unavailable, leave blank.Other nutrients need to be filled out based on what the ingredient delivers, the product line it is used in, and for potential claim substantiation.

e.g. Significant Dietary Fiber content: need soluble and insoluble fiber values

e.g. Crystal Light: would require sugar alcohols The proximate analysis total should sum to 100%

(i.e. fat, moisture, carbohydrate, protein and ash) The entire fat profile (including total fat, saturated

fat, trans fat, poly’s and mono’s) must be filled out, regardless if the total fat rounds to 0g.

Analytical methods need to be specified when indicated (e.g., Trans fat) in the Analytical Section

Indicate Source of Data – Analytical, Calculated, Canadian Nutrient File, USDA where applicable

41

GKIT – Nutrition Information

Global Nutrient Definitions and Required Nutrients by Region

NUTRITION INFORMATION: continued Nutrients are grouped by classification –

Macronutrients, Vitamins, Minerals, Sugars/Sugar Alcohols, Fatty Acids, Amino Acids, Intense Sweeteners, Antioxidants and Polyphenols, Other

Nutrients such as vitamins and minerals may need to be filled out for the following reasons:

Enrichment and fortification standards. Certain products list several nutrients on their

labels in addition to the mandatory nutrients: Folate, Vit B12, Zinc, etc.

Potassium and phosphorus are requested in order to respond to consumer inquiries.

Work with your Nutrition Applications/Regulatory contact to decide on which nutrients you will need data for.

When reviewing the completed nutrition information apply basic logic. Are the values representative for this ingredient?

If the REGION and ADDITIONAL INFORMATION Section checkboxes for Other Kraft GKIT Sections Required for Amino Acids and/or Fatty Acids, these need to be completed and are in the Nutrition Data section.

Global Nutrient Definitions

Required Nutrients by Region

To open the above files, end the Slide Show.

42

GKIT – Analytical Instructions

ANALYTICAL INSTRUCTIONS: The supplier provides a detailed ingredient description of the

raw material in the General Information- Description section of the GKIT. This information is transferred into the Kraft Raw Material specification.

The supplier must provide detailed information on each of the Sensory properties listed Color Flavour Texture Odor

The supplier shall provide detailed information on the Residue Limits (if present in the GKIT form), Chemical Composition, Grading and Defect Limits, Particle Size, Physical Tests, and Sensory Evaluation properties of the material being supplied.

Kraft RDQ should specify which properties are critical to the ingredient and the finished product functionality and quality.

Kraft RDQ should review with Analytical Sciences the test methods for any properties which require a COA.

The Kraft GKIT Analytical properties are segmented by the type of test and the required inputs

• Descriptive• Qualitative• Quantitative

43

GKIT – Analytical Instructions

Descriptive Tests Inputs:● Description - text field - 40 character max. ● COA – checkbox - if required● Frequency

Minimum Testing Quantity – numeric Minimum Testing Qualifier – rate list dropdown

44

GKIT – Analytical Instructions

Qualitative Test Inputs:● Acceptance Criteria – appropriate dropdown list● COA – checkbox - if required● Reference Method – is defaulted if only 1 acceptable; list dropdown if blank to select acceptable

method● Key Testing Details – text field – 40 character max.● Frequency

Minimum Testing Quantity – numeric Minimum Testing Qualifier – rate list dropdown

45

GKIT – Analytical Instructions

Quantitative Test Inputs:● Target/Min/Max – numeric● UoM – Unit of Measure – set to the Reference Method of the test● Dec – Decimal Precision – set to the testing accuracy of the Reference Method and Unit of

Measure● COA – checkbox - if required● Reference Method – is defaulted if only 1 acceptable; list dropdown if blank to select acceptable

method● Key Testing Details – text field – 40 character max.● Frequency

Minimum Testing Quantity – numeric Minimum Testing Qualifier – rate list dropdown

46

GKIT – Microbiological Requirements

MICROBIOLOGICAL REQUIREMENTS:

The Microbiological Rating, Microbiological Table Name and Microbiological Comments sections are to be completed by Kraft Microbiology before it is sent to the supplier.

The information must be populated into the Meridian specification system prior to the Export of the GKIT to XML.

The Microbiological Rating, Table Name, Tests and Comments cannot be edited in the GKIT XML document.

The supplier reviews the Microbiological Tests and Comments supplied from Kraft and then enters a Yes or NO into the Supplier Agreement to Micro Standards. If No, the Supplier will list the differences or Comments in the field in the following section.

Upon the return of the GKIT from the supplier, Kraft RDQ must check to see if the supplier agrees with the Micro requirements. If the supplier selected “NO”, then the Kraft RDQ and Micro contacts shall discuss the discrepancies with the supplier and agree to a resolution. A GKIT is only finalized once the micro has been agreed to by both parties.

47

GKIT – Microbiological Requirements

MICROBIOLOGICAL REQUIREMENTS:

The supplier reviews the list of Microbiologically Sensitive Safety Ingredients and indicates a Yes or No to reflect if the material Contains any of these ingredients. If yes, the supplier will fill in the text box identifying the sensitive material.

Micro Testing Laboratory – The Supplier completes this section. If Micro testing is required the testing labs need to be registered on our Global List of Approved Pathogen Labs, and Kraft RDQ should check the list to confirm that the lab is approved.

48

GKIT – Regulatory Information

Regulatory Information

For standardized foods (such as cheese, chocolate, flour, etc.), the supplier provides the applicable Regulatory Reference from the picklist, for all regions selected on the region page.

Include any other Legal References that may apply that could not be located or selected from the dropdown list for References.

Indicate the Legal Designation or Common Name of the material, if applicable.

49

GKIT – Kosher / Halal Certification

Kosher / Halal Certification If applicable, the supplier should

indicate if the material being supplied is Kosher Certified, Kosher Certified for Passover, and/or Halal Certified.

If the material is Kosher certified, please indicate in the Kosher Certification section the Agency Name that is certifying the material, the Kosher Designation and the Document Number of the Kosher Certification.

If the material is Halal certified, please indicate in the Halal Certification section the Agency Name that is certifying the material and the Document Number of the Halal Certification.

50

GKIT – Dietary Suitability

Global Dietary Suitability Definitions

Global Dietary Suitability Definitions

Dietary Suitability

If applicable, the supplier should indicate if the material being supplied meets certain Dietary Suitability:

Suitable for Jewish Diet Suitable for Muslim Diet Suitable for Vegetarian Diet Suitable for Vegan Diet Suitable for Children under 3 years of age Organic Certified Suitable for Organic Products

If the material is Organic certified, please indicate in the Organic Certification section the Agency Name that is certifying the material, the Organic Category and the Country of the Organic Certification.

To open the file, end the Slide Show.

51

GKIT – Shipping and Storage

Shipping and Storage

The shipping and storage section provides information to the manufacturing facility using the ingredient on how to properly store the ingredient as well as how to expect the shipment to arrive at Kraft. The supplier needs to select one of the following conditions:

• Ambient• Dry Storage• Conditioned Storage• Chilled/Refrigerated Storage• Refrigerated• Frozen Storage• Super Chill• Protected• Heated

The condition selected shall be the most appropriate for the ingredient during shipment and storage.

• Note: the conditions for shipping may differ from the storage conditions.

The Conditions are provided which align to the Description.

52

GKIT – Shipping and Storage

Shipping and Storage

The Shelf Life of the Material needs to be provided for each Pack Size Item that is supplied. The Pack Size is a numeric field followed by a list of Units of Measure and Pack Types. Each Pack Size Item needs to have the Total Shelf Life (in DAYS) from the Date of Manufacture as well as the Minimum Guaranteed Shelf Life (in DAYS) Remaining on Receipt of the shipment to the Kraft facility.

Other Shipping, Storage or Handling Requirements can be indicated in the text box.

Special Precautions for Testing or Handling this Ingredient can be indicated in that specified text box.

53

GKIT – Active Enzymes Addendum

Active Enzymes Addendum

The ACTIVE ENZYMES ADDENDUM is accessible by selecting this option on the REGION and ADDITIONAL INFORMATION Section when the GKIT is created in the Meridian Spec system prior to the Export of the GKIT to XML.

Active enzymes in finished products have the potential to result in product failure (viscosity loss, flavor degradation, etc.).

• For example, proteases can cause failure in protein-containing products, amylases can cause failure in starch-containing products, and lipases can cause failure in fat-containing products.

To protect Kraft’s finished product quality, ingredient enzyme content information is needed.

54

GKIT - Gluten Assessment Addendum – Ingredient Identification

Gluten Assessment Addendum

The GLUTEN ASSESSMENT ADDENDUM is accessible by selecting this option on the REGION and ADDITIONAL INFORMATION Section when the GKIT is created in the Meridian Spec system prior to the Export of the GKIT to XML.

Required whenever a Gluten Free claim will be made on the finished product that this material will be used in.

The supplier will need to review the Ingredients that compose the material that is being supplied to Kraft in the Ingredient Identification section and then complete the Cross Contact Assessment.

55

GKIT - Gluten Assessment Addendum – Cross Contact Assessment The Gluten Assessment Addendum - Cross

Contact Assessment is completed by the supplier for any Ingredients identified on the first portion of this questionnaire.

Required whenever a Gluten Free claim will be made on the finished product.

56

GKIT – Natural Addendum

Natural Addendum

The NATURAL ADDENDUM is accessible by selecting this option on the REGION and ADDITIONAL INFORMATION Section when the GKIT is created in the Meridian Spec system prior to the Export of the GKIT to XML.

When the Natural Addendum is present, please fill out all fields according to the instructions in the blue text on the form.

With the exception of flavors, for which there are regulatory definitions for “natural flavor”, Kraft does not ask suppliers to validate their ingredients as “natural”.  Kraft only requires general information about the processing procedures, starting materials, and additives.  Kraft will make the determination whether or not the material qualifies as “natural”, using this information.

57

GKIT – Non-GMO Addendum

Non-GMO Addendum

The NON-GMO ADDENDUM – Crop Ingredient or Crop Material is accessible by selecting this option on the REGION and ADDITIONAL INFORMATION Section when the GKIT is created in the Meridian Spec system prior to the Export of the GKIT to XML.

Request the Non-GMO ADDENDUM every time you are going to use the ingredient in a non-GMO product or if your region requires all materials to not be from GMO crops.

The Non-GMO Addendum – Crop Ingredient or Crop Material Section is to be completed by the supplier to provide information on how the material is measured or monitored to support a Non-GMO status claim.

58

GKIT - Peanut-Nut Free Status Addendum

Peanut-Nut Free Status Addendum The PEANUT / NUT FREE STATUS ADDENDUM is

accessible by selecting this option on the REGION and ADDITIONAL INFORMATION Section when the GKIT is created in the Meridian Spec system prior to the Export of the GKIT to XML.

Required whenever a Peanut/Tree Nut Free claim will be made on the finished product.

59

GKIT – Vegetarian / Vegan Addendum

Vegetarian / Vegan

Addendum

The VEGETARIAN / VEGAN ADDENDUM is accessible by selecting this option on the REGION and ADDITIONAL INFORMATION Section when the GKIT is created in the Meridian Spec system prior to the Export of the GKIT to XML.

Required whenever a vegetarian- or vegan-related claim will be made on the finished product.

60

Summary

• The GFSI Certification initiative is a transformational change, intended to further promoting food safety to protect our brands and our consumers by allowing for 3rd party verification of Food Safety Management Systems across our direct material supply base

– All raw material suppliers to Kraft Foods attain GFSI certification by Dec. 31, 2014

• Immediately notify Kraft Foods of occurrences which could affect the processing, food safety or quality of materials supplied to Kraft

• The GKIT is a fundamental part of the Kraft Foods Global Specification System, and indispensable for assuring food safety, quality andlegal compliance of our products

– GKIT used for all new or changing raw materials

• The spec communication process allows suppliers to review Kraft Foods raw material specification requirements and provide feedback to RDQ or Procurement prior to supplying Kraft Foods

– Suppliers must confirm acceptance of the Spec Agreement Report (SAR) and return the SAR Feedback Form to Kraft Foods

– Suppliers can only source from Kraft Approved manufacturing sites included in the SAR --- Provide notice to Kraft Foods of any changes to site status

Kraft Foods Supplier Quality Web Site

61

The Kraft Foods Supplier Quality web site is designed to facilitate the communication between Kraft Foods and our suppliers.

Here you will find all of the Quality Requirements and Guidelines for Suppliers to Kraft Foods, as well as the slides used in our Supplier Forums.

The web site includes:• Supplier Quality and Food Safety Contractual Requirements

• Supplier Forum presentations

• Quality Support Material

• Contact email address

• eLearning modules

Browser Address: http://brands.kraftfoods.com/kraftsupplier/

Questions?

62

Visit the Kraft Foods Supplier Quality and Food Safety web site at:http://brands.kraftfoods.com/kraftsupplier/

63

Visit the Kraft Foods Supplier Quality and Food Safety web site at:http://brands.kraftfoods.com/kraftsupplier/

Thanks for your time today!