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3.3 Nutrition, product quality and safety

Emmi takes responsibility for the health and quality aspects of its products that it can influence and control in terms of nutrition, product quality and safety. Specifically, this includes the processing of high-quality raw materials, the targeted avoidance of additives, the reduction of sugar, the handling of allergens and their declaration, as well as ensuring impeccable product quality and safety during storage and during the manufacturing and transport process.

3.3.1 Impact on the environment and society, and opportunities and risks for Emmi

(Dairy) products, for a healthy and balanced diet

By developing and providing high-quality products, Emmi contributes to promoting a balanced and healthy diet in society. Milk is a high-quality food that contains a variety of valuable macro- and micronutrients (fat, protein, carbohydrates, vitamins and minerals) in a form that is easily digestible for humans. In 42 countries, nutritionists recommend including milk as a daily part of the diet, as it supports muscles, bones and the cardiovascular system, among other benefits (Max Rubner Institut, 2014).

Emmi also manufactures dairy products with additional nutritional benefits such as lactose-free dairy products, probiotic yogurts, natural recipes without artificial or unnecessary additives, and products with a high protein content and no added sugar. Products with high sugar content can increase the risk of diet-related diseases such as diabetes, obesity and cardiovascular disease.

Emmi is also considering the growing importance of vegan diets and their nutritional and environmental aspects. Vegan products manufactured by Emmi provide dietary diversity for consumer groups who, due to intolerances or a personal desire not to consume animal-based products, choose to avoid dairy products and opt for a high-quality alternative.

Safe and high-quality products to protect consumers

Emmi positions itself as a manufacturer of safe and high-quality products. The company adheres to the principles of good manufacturing practice, meets strict quality standards and complies with all legal and regulatory requirements. Consumers expect high-quality and safe products, which strengthens their confidence in Emmi as a food producer and brand. This trust forms the foundation for the company’s long-term success. Consumers also benefit from high-quality food, because it has a longer shelf life and can often even be eaten beyond its best-before date. In doing so, they make an important contribution to preventing food waste (see section “Food waste”).

If, despite all precautionary measures, a defective product is put on sale that endangers the health or safety of consumers, a product recall may be necessary. Such a measure can entail significant financial risks, negative consequences for the company’s reputation and a loss of consumer confidence. Emmi therefore does everything in its power to prevent such incidents through comprehensive food safety and quality management. This primarily includes a proactive improvement process in which additional preventive measures are implemented by assessing specific risks.

High-quality products require high-quality raw materials that, among other things, are cultivated and produced in a climate-conscious and environmentally friendly manner and in compliance with social criteria. Emmi therefore promotes the use of suitable and more environmentally friendly packaging and production methods. These include reducing waste, using water and energy efficiently, and minimising GHG emissions.

3.3.2 Management approach and goals

Risk-based and continuous improvement in product quality and safety

A centralised department at Group level is responsible for global quality management and guaranteeing the highest product quality and safety. This department determines the strategic direction and primarily supports the organisations in each country. Food safety at Emmi is based globally on the HACCP concept (Hazard Analysis Critical Control Points). This methodology involves hazard analysis, risk assessment and risk management in food production, distribution and logistics. It is used to approve new process equipment and procedures and is an integral part of Emmi’s quality management system. Important elements of the HACCP concept are the preventive programmes (PRP), such as personal hygiene, cleaning systems, avoidance of cross-contamination (particularly with regard to allergens) and the design of the production environment. The PRPs thus form the most important foundation for ensuring food safety. If the hazard analysis and risk assessment indicate a higher risk in certain locations, additional measures are taken to control chemical, microbiological and physical hazards.

Certification of sites according to market requirements

When certifying its sites, Emmi takes into account various factors, including specific market requirements. For example, different standards recognised by the GFSI (Global Food Safety Initiative) are applied. In the vast majority of cases, these are the FSSC 22000 standard (Food Safety System Certification), the IFS standard (International Featured Standards) and the BRCGS standard (Brand Reputation through Compliance Global Standards). GFSI standards are not required in all countries. In Mexico and Tunisia, for example, quality management systems are certified in accordance with the ISO 22000 standard (including the HACCP concept). All powder production at the Brazilian company is FSSC 22000 certified. A comprehensive quality management system is also used in the other production areas, but this is not certified. In Switzerland, the large industrial production sites are FSSC 22000 and, in some cases, IFS certified. Three very small, artisanal Emmi production facilities – known as cheese kitchens – are not GFSI certified but, like all other sites, are subject to regular internal audits. As a result, eight of the Emmi Group’s 74 production sites are not certified in accordance with a GFSI standard.

Aiming for the highest level of consumer protection

Emmi’s food safety, hygiene and quality standards for its product portfolio and the environment, in terms of how these products are manufactured, are risk-based and are continuously improved according to the Plan-Do-Check-Act (PDCA) cycle. The risk analysis for the food safety of the products, raw materials and processes used is carried out in accordance with the standards set out in the Codex Alimentarius. The aim is to ensure the highest level of public health and consumer protection.

On-site food safety sprints

In addition to commonly used methods for checking the effectiveness of the quality management system, such as annual internal and external audits and the collection of key metrics, Emmi uses food safety sprints. Emmi uses these to monitor processes and materials at specific sites over an extended period, enabling detailed insights into the effectiveness of the measures.

With all of the measures mentioned, Emmi is pursuing the goal of ensuring impeccable product quality, ruling out product recalls and minimising quality failure costs.

Product quality indicators – quality failure costs and critical incidents

Emmi assesses product quality based on multiple indicators. Key indicators include quality failure costs and critical incidents in the market such as returns and recalls. In addition, external complaints and internal deviations are also investigated locally. Numerous internal process controls inspect raw materials, semi-finished and finished goods as well as packaging. Microbiological controls ensure that the production environment provides optimal conditions for food production.

Focusing on sugar reduction

Emmi has been incrementally reducing the sugar content of its products for many years in order to reduce potential health risks for consumers and gradually familiarise them with the resulting changes in taste. New products are already being developed with a lower sugar content. In its Swiss domestic market, Emmi has voluntarily committed itself to implementing the Milan Declaration, which is part of the Swiss nutrition strategy to promote a balanced diet. The aim was to reduce added granulated sugar in yogurts, quark and milk-based beverages by 10% by 2024 compared with 2019. For the other markets in which Emmi is active, the local legal regulations and market conditions apply. In the UK, for example, the sugar content for HFSS (High in Fat, Salt and Sugar) products is prescribed by law (The Food (Promotion and Placement) (England) Regulations, 2021). These requirements are implemented and adhered to by our local subsidiary.

Vegan alternatives

When it comes to product innovation and development, Emmi focuses on strategic growth areas that serve as the basis for innovative product developments. One of these growth areas is vegan nutrition and vegan product alternatives. Vegan milk substitutes have been playing a role at Emmi for over 20 years. Emmi manufactures these products in Switzerland, Spain, Austria, Italy and the USA. Emmi assesses product innovations for their sustainability impact.

3.3.3 Developments in the year under review

Meeting of all Emmi Group quality managers in Switzerland

As a Group-wide initiative, the most important joint quality indicators at production site and business level were developed together by the Emmi Quality Community. The key indicators were defined and published at the end of the year in the Group Supply Chain performance management framework. In addition, a meeting of all Emmi Group quality managers in Switzerland was organised for the first time. Participants worked together during the meeting to develop and define the basic principles of quality and food safety culture. Furthermore, various lectures with a practical focus were held, providing insights into quality incidents. Several small workshops were also held to discuss topics relating to supplier quality and improvement processes, and to define common approaches.

Focus areas in Switzerland – further strengthening food safety

Käserei Studer was integrated into Emmi Switzerland’s quality management system this year. Vulnerabilities were identified during food safety sprints and the identified gaps were closed using an action plan. In particular, zoning, hygiene instructions and good manufacturing practice were optimised, and cleaning plans and various work instructions were revised. In Ostermundigen and at the cheese packaging plant in Emmen, product safety was increased by integrating further x-ray inspection systems for detecting foreign bodies. Pathogen Environmental Monitoring (PEM) has also been expanded to better assess the risk of environmental contamination. The food safety culture was further strengthened through roadmaps developed individually at the sites. Instructional films on various food safety topics were also produced to be distributed through internal communication channels and for training.

Focus areas in Europe – food safety and supplier management

The food safety sprints carried out at Leeb Biomilch in Austria in 2023 were continued during the year under review. The local action plan was systematically implemented. Strengthening the food safety culture was defined as a key task. A survey in 2023 revealed the need for action in this regard in the areas of feedback, employee engagement and communication. The on-site team made great progress in the year under review, which was highlighted as especially positive during the annual IFS audit.

In the Netherlands, quality management was strengthened and realigned following the commissioning of the new goat’s milk powder production facility. Particular attention was paid to the individual strengths and preferences of employees to maximise their potential. The HACCP teams for the individual production areas were also restructured. They will now be even more closely involved in operational activities.

Quality was also strengthened at Emmi Dessert Italia. Regulatory and Supplier Quality departments were created and the focus was placed on improved collaboration with suppliers. Of particular note was the optimisation and updating of specifications and raw material requirements.

Following its move to a new building, Pasticceria Quadrifoglio focused on optimising production and quality processes. By meeting international customer standards, the foundation for exporting to international retailers was laid. Successfully receiving BRCGS certification was an important first step in this regard.

At Emmi France, the focus was also on optimising supplier management, in particular with regard to quality agreements for purchased cheeses, which are packaged at the site.

At Kaiku in Spain, supplier management processes were harmonised through cross-functional collaboration with the Procurement department. A quality management module was integrated into the existing ERP (Enterprise Resource Planning) system. Based on targets defined annually for key material groups, Kaiku now works more closely with its suppliers to further advance the improvement process and thus process efficiency. This is supported by a Power BI, which presents all complaints from co-packers in a digitised form and is updated daily.

Focus areas outside Europe – improvement process and supplier management

Quality failure cost management has been introduced at both Emmi Dessert USA and Darey in California. To achieve this, training sessions were held at all six locations based on the RAFT (right at first time) concept and the continuous improvement process. At Darey, a food safety sprint in combination with a process/loss analysis was carried out at the same time. The action plan drawn up in collaboration with the Group functions Emmi Operational Excellence (EOE) and Quality, Safety and Environment (QSE) is now being implemented by various improvement teams at the Sebastopol site.

The commissioning of the Emmi Roth plant in Stoughton, Wisconsin (USA), challenged the local team significantly. The site has completed initial certification in accordance with FSSC 22000 and, after several months of support, the quality processes have been stabilised. Further support was provided in the form of food safety sprints at the Seymour site, where areas of improvement were identified in terms of good manufacturing practice and process management.

The quality team at Vitalait in Tunisia implemented a large number of measures during the year under review, which notably included a survey on the quality culture. This showed potential for improvement in employee engagement and the need for clearer communication. The introduction of quality management software that transparently presents deviations means measures can now be better monitored and their implementation carried out more efficiently.

In addition to maintaining the quality management system for goat’s cheese production, which has been recertified with great success, the team at the US subsidiary Cypress Grove integrated a new production area for Emmi Equator Cold Coffee into the existing building and successfully commissioned it. Quality documentation has been drawn up for these new processes and employees have been trained.

For the first time at Laticínios Porto Alegre in Brazil, the quality and safety processes were aligned with Emmi processes and a roadmap outlining key areas for improvement was drawn up. The local management team has been trained in crisis management and the local crisis management system has been aligned with the Emmi system.

Product quality at Emmi Switzerland – zero violations of guidelines and regulations

At Emmi Switzerland, each product was tested in the year under review in terms of its ingredients (composition) and labelling based on Emmi’s specifications in accordance with a defined test plan. In the case of private labels, testing was carried out by the respective customer and, in the case of use of quality marks, by the standard issuer of the quality mark.

During the year under review, zero violations of guidelines and regulations or voluntary codes of conduct were identified for Emmi Switzerland, either with regard to product information and labelling or in terms of marketing/communication. There were no reminders and no fines had to be paid.

To safeguard against competitive risks, Emmi does not publish key figures on product quality and safety at Group level.

Milan Declaration (Switzerland)

In the yogurt and milk-based beverages product categories, Emmi achieved its target of reducing sugar by 10% by 2024, as defined in the Milan Declaration. The quark product category was included at a later date. In this respect, Emmi continues to pursue the goal of reducing sugar content without compromising taste or quality. Emmi is also aiming to keep the sugar content of newly launched products as low as possible, as exemplified by the following new product launches in Switzerland during the current reporting period:

3.3.4 Outlook

The first face-to-face meeting of quality managers in Switzerland in October 2024 laid the foundation for further intensive networking and collaboration over the coming years. Through regular dialogue and targeted measures, Emmi aims to consolidate the common understanding of its quality culture. The quality strategy is to be further implemented based on a regular gap analysis to continuously improve quality procedures. The integration of new companies plays a special role here.

Emmi continues to work on reducing sugar in its products in line with the Milan Declaration. Development will continue to focus on products with additional nutritional benefits.

Over the next few years, a Group-wide community focusing on nutrition will be developed. The goal of the community is to exchange knowledge and share best practices.