1. Industry Perspective on Recalls Steve Tracey, CPFS Food Safety Manager- Supply Chain Food Lion, LLC January 25, 2011 Raleigh, NC

2. Food Lion Today Food Lion Stores as part of Delhaize America and of the Delhaize Group, offers quality products at Extra Low prices in approximately 1,300 stores in 11 Southeast and Mid-Atlantic states. Food Lion, bloom, Bottom Dollar Food, Harveys, & Reids stores employ over 73,000 associates. We serve 10 million customers per week

3. Delhaize/Food Lion History 1867 Jules Delhaize, professor of commercial sciences, dreamt of revolutionizing food retailing in Belgium 1883-1914 In thirty years the company( Delhaize = “The Lion”) opened more than 500 branches 1957 Food Town started by Ralph Ketner, Brown Ketner, and Wilson Smith in Salisbury, NC. 1974-1983 in less than ten years this American company grew from 22 to 226 supermarkets. 1983 Delhaize acquires Food Town chain –the stores are renamed Food Lion

4. 1991-2003 Delhaize expands into Eastern Europe, the Far East, and makes US acquisitions of Kash n’ Karry, Hannaford Bros and Harveys. In 2004 Food Lion launches bloom banner In 2005 Food Lion launches Bottom Dollar Food banner 2010 Food Lion, Hannaford, Sweetbay aligned to form Delhaize America Delhaize/Food Lion History

5. Food Lion Family Operating Area or “Foot print”

6. Food and Occupational Safety & Quality Assurance Team ServSafe Food Safety Training Support Retail Stores –Food Safety Reviews –Personal or Occupational safety checks –Work with government regulators Department of Agriculture State and Local Health departments Supply Cain food safety and quality –Vendor certification –Distribution center receiving checks

7. The Food Lion Food Safety and Quality Assurance Team No Hair Hair

8. Food Safety Managers – Retail Currently two FS Managers and four specialists divide the markets Northeast -PA, MD, DL, VA, Mid Atlantic – NC & VA Southeast– NC, SC, GA, &FL Southwest - WV, KY, TN, & GA Visit stores – Food Safety Review Work with Public Health Officials Provide training Monitor vendor services

9. Delhaize America Standard Practices Operations Standard Practice Audits –Shelf tag accuracy –Office security –Connecting with customers Food Safety Scorecard –Food Safety Review Results –Food Safety Training compliance –Regulatory inspections –Response to Urgent Recalls

10. Supply Chain Food Safety Private Brand Vendor Certification –Requiring all Private Brand suppliers to be GFSI Certified. SQFBRC Dutch HACCP IFS FSSC 22000 SQF 1000, Code level 2 (5th edition) Primus GFS Synergy 22000(ISO 22000 based) Using StoreBrandSource software to keep all product data, specs, packaging, etc

11. Urgent Recalls – Notification by Alert Services Food Track Alert –subscription fees paid annually – multiple user –E mail notification on recalls, regulations, and research –Many other food safety related topics Rapid Recall Exchange by GS 1, US –Subscription –E mail notifications on Recalls only –“Initiators” and “Receivers” join the exchange

12. Food Safety & Defense Alerts Product Recall Bulletin 14-Jan-10 (I) Thursday [Parkers Farm – UD #3] Snapshot Parkers Farm expands product recall to include that all products made at the company's Coon Rapids plant Parkers Farm expands product recall Parkers Farm expands product recall ST. PAUL, Minn. - A Minnesota food company its expanding its voluntary nationwide recall. The Minnesota Department of Health says Parkers Farm took that action after the department determined that all products made at the company's Coon Rapids plant may have been contaminated with the Listeria monocytogenes bacteria. The recall now includes all products produced under the Parkers Farm label, as well as a number of products marketed under other labels and produced at the Coon Rapids plant. The recalled Parkers Farm products include peanut butter, bagel spreads, dips and spreads, and cheese. The products are distributed nationwide in retail stores including Hy-Vee, Cub, Rainbow, Lunds/Byerly's, Target, Whole Foods, Jewel, Dominicks, Marsh, Price Chopper, Shop Rite, Nash Finch, Sam's Club, Costco, Safeway, Kroger, Walmart and Aldi. No illnesses have been linked to the recall. On the Net: A complete list of recalled products is at http://www.mda.state.mn.us ST. PAUL, Minn. - A Minnesota food company its expanding its voluntary nationwide recall. The Minnesota Department of Health says Parkers Farm took that action after the department determined that all products made at the company's Coon Rapids plant may have been contaminated with the Listeria monocytogenes bacteria. The recall now includes all products produced under the Parkers Farm label, as well as a number of products marketed under other labels and produced at the Coon Rapids plant. The recalled Parkers Farm products include peanut butter, bagel spreads, dips and spreads, and cheese. The products are distributed nationwide in retail stores including Hy-Vee, Cub, Rainbow, Lunds/Byerly's, Target, Whole Foods, Jewel, Dominicks, Marsh, Price Chopper, Shop Rite, Nash Finch, Sam's Club, Costco, Safeway, Kroger, Walmart and Aldi. No illnesses have been linked to the recall. On the Net: A complete list of recalled products is at http://www.mda.state.mn.us http://www.mda.state.mn.us End of Snapshot – Full Text Follows End of Snapshot – Full Text Follows

13. RAPID RECALL EXCHANGE by GS 1 United States Rapid Recall Exchange applies industry expertise and best practices to standardize product recall and withdrawal notifications between retailers/wholesalers and suppliers. The online service enables prompt and accurate information exchange to protect customers and save trading partners time and money. Rapid Recall Exchange applies industry expertise and best practices to standardize product recall and withdrawal notifications between retailers/wholesalers and suppliers. The online service enables prompt and accurate information exchange to protect customers and save trading partners time and money. Current Subscriber List (R) - Receiver, (I) - Initiator Current Subscriber List (R) - Receiver, (I) - Initiator A&P - (R)Ahold USA - Lowes Food Stores) - (I)Bush Brothers & Company - (I)Butterball, LLC - (I)C&S Wholesale Grocers Inc - - (I)Carolina Pride Foods Inc. - ((R)ConAgra Foods Inc. - (I)Costco Wholesale - (R)Del Monte Foods - (I)Delhaize Group (Food Lion LLC, Hannaford Bros. Co., Sweetbay Supermarkets,) - (R)Diamond Foods, Inc. - (R)Fresh Encounter Inc. - (R)General Mills - (I)Georgia Pacific (Paper Supplier) - (I)Giant Eagle, Inc. - (R)Golub Corporation (Price Chopper Supermarkets) - The - (R)H J Heinz Company - - (R)Harris Teeter - (R)Hershey Company - The - (R)Winn-Dixie Stores, Inc - (R)

14. Urgent Recalls – Supplier Notification Category Management –Linked with suppliers- very critical relationship –Suppliers notify us by phone or e mail –We confirm reports from alert services –”are we affected?” Category Recall Spreadsheet –Buyers prepare product information Product name, flavor, size, & UPC number Lot # & sell by dates DCs and stores affected

15. FDA’s Reportable Food Registry Required as of September 2009 Applies to all FDA regulated categories of food and feed except dietary supplements and infant formula. The Registry or RFR = An electronic portal for industry to report when there is “reasonable probability” that an article of food will cause serious adverse health consequences.

16. FDA’s Reportable Food Registry Becoming more user friendly to complete Multiple locations can be attached to one report –If product is currently in 5 DCs, then we have one report with 5 locations listed We will need suppliers to fill out questionnaires that will provide us with needed information for complete reporting.

17. Urgent Recalls - Execution EMS project to stores –Execution Management System –Stores must respond within 6 hours –Shelf signs are attached if needed Auto phone calls to store to check for EMS –“LionNet Alert” by Send Word Now can dial all stores fast –Improve response to 3 hours and then to1 hour Retail communications coordinator can track the EMS responses and monitor which stores have replied and with what quantities.

18. Urgent Recalls - Execution Scan block sent to all affected store check outs –Product will not scan to be purchased –Note on screen says that product is recalled Replacement product arrives –Scan block lifted –Signs removed

19. Recall Notice to public Signs posted on shelf where product was E mails to “Shopper’s Companion” members on latest recalls Loyalty card customers are called if we know they purchased the affected product LionNet Alert has the capability of sending text messages and phone calls to customer’s homes foodlion.com website is updated and information posted immediately and continuously

20. Goals of Food Safety Program Provide Safe and Wholesome food to our customers 100% Compliance with all regulations in all states Develop our managers and associates in Food Safety knowledge Be “Best In Class” in Food Safety among retailers