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Investor Presentaiton

Ferrero Group Sustainability Report 2022 Product quality and safety Introduction Our sustainability progress Our reporting F A quality product requires high standards of performance and seamless execution. Attention to detail and consistent quality does not only matter in our manufacturing, but throughout the entire Ferrero supply chain. Product and ingredients quality and safety Our Quality System operates globally through our Central Quality Department and Local Quality Departments in our various commercial and industrial subsidiaries. The Group Quality Organisation supervises the entire value chain, from raw materials to market. It works in close contact with local teams to define quality and food-safety objectives, and periodically monitors performance through a complex system of indicators and auditing procedures. We publish quality results periodically for all relevant departments and our corporate management. Our factory in Arlon was closed on 8 April 2022 further to evidence produced by authorities of a possible link between cases of Salmonella and our products. After a product recall and close cooperation with the Belgian Food Safety Authority (AFSCA), the plant restarted production in July 2022, with a permanent authorisation granted on 16 September 2022. Ferrero has prioritised quality and high food safety standards throughout the company's 77-year history. To ensure that this remains an isolated event, and as part of our commitment to continuous improvement, we have made and continue to make significant investments into a comprehensive set of preventive measures. These include further strengthening quality and food safety procedures and collaboration with food authorities and external industry experts. Performance data such as energy efficiency and waste generation presented in this Report have been slightly affected by this event, as it refers to the period 1 September 2021 31 August 2022. Our FSSC certificate was suspended in April 2022 and reinstated on 29 July 2022. Our Quality and Food-Safety Policy As stated in our Quality and Food-Safety Policy, our mission is to work together to develop strategy, competencies and people, leading the overall Ferrero team to ensure safe, responsible, sustainable, high-quality products that offer the best consumer experiences, connecting people now and in the future. To achieve this, our business model is built to: • Promote a quality and food-safety culture, strengthened by engaging our people. • Achieve product quality and freshness throughout the value chain in all global markets. Integrate our quality and food-safety management system globally across the business. • Protect our brand reputation through effective risk management. • Ensure continuous improvement by standardising the monitoring and analysis of our primary processes, and our quality and food-safety objectives. •Manage information on quality, through various communication resources, both internally and externally. Attention to consumers' feedback During fiscal year 2021/22, we carried out 879,256 store visits worldwide to monitor the trade age (freshness) of finished products, and their temperature in store. In 424,414 of these visits, auditors behaving as shoppers assessed the perceived quality of our products at the point of sale, checking for visual defects against a list defined specifically for each product. To ensure each product complies with its sensory profile, we carry out a sensory evaluation in addition to the usual laboratory tests. This assesses all organoleptic attributes of a product (how it affects the sense organs), as well as its aesthetic appearance and presentation. Tasting and sensory evaluation activities include: • Raw-material taste tests during the delivery phase. • Taste tests of semi-finished and finished products from the production line, during the production phase. • Quantitative descriptive analysis by a trained panel of tasters in our central product observatory and at production units. Our quality-tasting panel involves trained testers across the globe. We conduct tasting sessions monthly at all our sites and in our central tasting laboratory in Alba to verify and guarantee the excellence and consistency of the sensory profile offered to our consumers. All assess the sensory performance of our products according to the Ferrero Group Tasting Procedure. We have developed customised global software, designed to ensure visibility of all the results of the tasting sessions at our sites and business units. Within the Commercial Quality Development department is organised the Consumer Contact Methodologies function. With the objective of obtaining and maintaining consumer satisfaction, this function has the scope to organise and constantly reinforce the best conditions to answer and provide solutions to our consumers' requests. In providing consumers with information and support, our company is also continually improving product quality, by systematically analysing our consumer feedback. Our company is using the sole Customer Relationship Management (CRM) tool, called Ferrero CARE, and consumer feedback is classified according to a uniform set of definitions, procedures and operating methods that apply to all our affiliates. Attention is given to accessibility and 31 Contact Centres over the world are managing the one-to-one relationship with our consumers. 60 <
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