Dr. Les Paull, Founder & CEO, Global Sustainable Solutions, LLC (GSS)

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1 Dr. Les Paull, Founder & CEO, Global Sustainable Solutions, LLC (GSS)

2 Intelligent Thinking & Strategic Planning Many U.S.-based agri-food companies lack comprehensive strategies to mitigate the effects of a product-harm crisis, which increases the probability of corporate damage to the stock price, brand image, and sustainability. (Cleeren, van Heerde, & DeKimpe, 2013).

In June of 2016, the FDA successfully criminally prosecuted executives of the Peanut Company of America for the 2009

3 Bad Executive Decisions Product-harm crisis A product-harm crisis is a sudden and unexpected event that threatens to disrupt an organization's operations and poses both a financial and reputational threat (Coombs, 2007). In June of 2016, the FDA successfully criminally prosecuted executives of the Peanut Company of America for the 2009 product-harm crisis that broke the public trust when salmonella-contaminated peanuts resulted in more than $1 billion in losses and closure of the company (Leighton, 2016).

GSS provides a top down set of strategies to mitigate the losses associated with a PHC to

4 The Business Problem The lack of corporate strategies to mitigate product-harm crises negatively affects consumer confidence and trust in the Company, Brand, and food safety. GSS provides a top down set of strategies to mitigate the losses associated with a PHC to reduce illness and death to consumers while sustaining brands and corporations from collapse.

5 Explore Strategies to Mitigate a Crisis Fear often defines the difference between a great executive and one that is mediocre. Failure to spend a small amount to provide enhanced food safety usually is based on a fear that increased cost will reduce profit margins and cause customers to switch to another brand. Executives that explore new ideas and concepts to mitigate a productharm crisis protect their brand and company sustainability.

6 Turn Fear to Increased Profits Current data indicates consumers have a willingness-to-pay (WTP) for increased food safety. Brand your products with pride to demonstrate the product has increased food safety because you care for consumer well being. Turn fear to increased profits.

GSS Provides numerous strategies to Mitigate consumer and corporate losses from agri-food product-harm crises Three phases of a crisis Pre-, Mid-, and post Specific strategies for each phase and

7 GSS Provides numerous strategies to Mitigate consumer and corporate losses from agri-food product-harm crises Three phases of a crisis Pre-, Mid-, and post Specific strategies for each phase and some overlap Word-of-Mouth (WOM), Use of Social Media, Spillover Risk Willingness-to-pay (WTP), Third Party Certifications (TPC) Brand and corporate sustainability, Capital and personnel deployment

High-Pressure Pasteurization (HPP) An Overarching Mitigating Strategy Cold pasteurization process Already sealed packaging isostatic pressure (300

8 High-Pressure Pasteurization (HPP) An Overarching Mitigating Strategy Cold pasteurization process Already sealed packaging isostatic pressure ( MPa/43,500-87,000psi) Pressures above 400 MPa / 58,000 psi at cold (+ 4ºC to 10ºC) or ambient temperature inactivate the vegetative flora (bacteria, virus, yeasts, molds and parasites)

9 HPP Mitigating Benefits

Pre-crisis Mitigating Strategies- Prepare for the Storm High-pressure pasteurization (HPP) as a strategy to mitigate product-harm crises Preventative maintenance strategies The use of pre-crisis

10 Pre-crisis Mitigating Strategies- Prepare for the Storm High-pressure pasteurization (HPP) as a strategy to mitigate product-harm crises Preventative maintenance strategies The use of pre-crisis strategies to mitigate product-harm crises Continuous evaluation of supply chain contamination Traceability- HPP provides a short cut to track a contamination Third-party certifications (TPC) Word-of-mouth communications (WOM) Willingness-to-pay (WTP) Use of Social media

11 Mid-Crisis Strategies-In the Storm Strategies during the storm of crisis The use of mid-crisis strategies to mitigate product-harm crises HPP provides users confidence all areas of concern can be quickly checked Necessary strategies to protect and sustain brand and corporation Spillover liability Word-of-mouth (WOM) communications Use of social media Corporate image management

Post-Crisis Strategies-The Storm has Passed HPP provides quick access to track a contamination back and manage post-crisis strategies After the crisis has passed The use of

12 Post-Crisis Strategies-The Storm has Passed HPP provides quick access to track a contamination back and manage post-crisis strategies After the crisis has passed The use of post-crisis strategies to mitigate product-harm crises Sustaining brand attributes Corporate sustainability WOM communications Use of social media Corporate image management

HPP Provides an Overarching Protection The use of high-pressure pasteurization (HPP) Kills pathogens in most fruits and vegetables Provides a barrier to

13 HPP Provides an Overarching Protection The use of high-pressure pasteurization (HPP) Kills pathogens in most fruits and vegetables Provides a barrier to trace back a crisis Reduces tracing time for post-hpp agriculture Users can pass cost for added food safety to consumers under consumer willingness-to-pay (WTP)

14 Global Sustainable Solutions, LLC Protects Brands, Companies, and Executives Executives are accountable for a product-harm crisis and may face criminal prosecution. Failure to obtain and implement adequate strategies to mitigate a product-harm crisis may be deemed negligence. Proper use of an array of mitigating strategies to reduce losses to consumers and your organization can provide a competitive advantage. Continue to avoid a crisis, but know what to do when one occurs. One in 6 Americans is hospitalized with a food-borne illness each year.

15 Save Lives and Save Your company

16 Thank You!

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