Oak State Products - Quality Contract Manufacturing & Sensory Evaluation Services

1. Introduction Oak State – Oak State Products is a family-owned and operated business that has been baking food products for more than 50 years. The company specializes in contract manufacturing and inclusion and crumb sales. It operates a more than 240,000-square-foot facility that includes four oven lines, separate packaging areas and warehouses. It offers a full line of contract manufacturing services ranging from development to commercialization, as well as assists in developing specialty flavors for customized products. The company’s capabilities include individual and bulk wrapping and product grinding. Established in 1956, Oak State Products has a professional staff of more than 350 full-time employees and is located in Wenona, Ill.Organic and BRC certified, kosher. Curtis Beelman - Chair of Oak State HACCP Team/custodian of written plans. NSF: Certified HACCP Manager 2009 (15 yrs. in the food industry, 8+yrs Quality exp.) Quality Manager: Ingredient issues, coordination with QA Technicians. Sensory Instructor, BRC (GFSI), GMP. B&CMA 91st Technical Conference – Atlanta, GA

2. B&CMA 91st Technical Conference – Atlanta, GA Sensory Application: Real World & Technical • Starting the program – Where to begin. Who can qualify to become a panelist. Customers their products. Expectations and limitations of a Sensory program and how it pertains to the Coman industry. Ingredient Receiving/Use - Sensory Application – before and during the use of ingredients. • Employee Training – Basic Sensory Training aside Customer supplied Sensory Training. • New product development – Customer/Oak State Sensory standardization on new and or re-formulized products. B&CMA 91st Technical Conference – Atlanta, GA

3. Sensory Application: Real World & Technical • Establishing customer criteria and specifications – What is an approved Sensory Guide and how sensory review forms become standard. • Every day guidelines – The significance of following standards, completing reviews and forms in a timely manner. • Applying the plan and keeping it relevant – “day to day” Product Reviews, HOLDs, dispositions, etc. Assessing the plan and employee commitment. B&CMA 91st Technical Conference – Atlanta, GA

4. Starting the Program - Sensory Evaluation  in Quality Control “Often, the problem with starting a program is knowing where to begin. If a company includes tasting as part of its QC procedure, but has never really given the program much consideration, it's almost at the same level as those companies that don't have a program. "A little sensory testing is worse than nothing, since one makes the false assumption that they have a sensory program." B&CMA 91st Technical Conference – Atlanta, GA

5. Starting the Program – Where to begin. Who can qualify to become a Sensory inspector? Those who can pass the tests! – Potential inspectors must first be trainable. Topics covered - Flavor evaluations, the difference between flavors and odors; for both ingredients and finished products, dimension/defect identification, packaging/graphics – both primary and secondary packaging. Customers and their products - Each customer brings with them their own unique set of product requirements and guidelines. These are often exclusive to each sku as well. Customers often require a Certified Sensory Trainer be present at each of their sites. Expectations and limitations of a Coman Sensory Program - Each ingredient drum, bag, box, barrel, etc. cannot be sampled. Nor can each finished cookie, bar, tray or carton be sampled. A Sensory program is only as good as the time and energy the company can to devote to make it happen. Ingredient and Packaging Receiving/Use - Sensory Evaluation begins with receiving raw materials. COA review, micro sampling and testing. Evaluation continues on during the life of each element with storage and then usage. B&CMA 91st Technical Conference – Atlanta, GA

6. Employee Training – Basic Sensory Training aside Customer supplied Sensory Training. Basic Sensory training, annual. 1. Basic Taste Recognition Test 2. Color Blindness Test 3. Aroma Recognition Test. Customer Supplied Sensory Training, annual. 1. Package Appearance 2. Product Appearance, Flavor and Texture 3. Raw Material Appearance, Flavor and Texture B&CMA 91st Technical Conference – Atlanta, GA

7. Environmental Factors • Lighting • Air ventilation • Unnecessary or distracting odors • Temperature B&CMA 91st Technical Conference – Atlanta, GA

8. Customer Supplied Sensory Training Package Appearance Tray Overwrap/Individual wrapped: • Code Date – placement, clear, legible • Label – placement, graphics, color • Defects – no dents, nicks, etc. • Seals – no tucks, creases, tears, cuts, no product in end seals Carton/Shipper: • Code Date – placement, clear, legible • Registration – top to bottom, side to side • Graphics –color, clarity • Defects – Structural, B&CMA 91st Technical Conference – Atlanta, GA

9. Customer Supplied Sensory Training Product - Appearance • Value Impression • Breakage • Empty • Short count • Slack-fill • Under weight • Color – uniform, light, dark, dull, shiny, smooth • Defects • Topping coverage • Component or particulates ratio B&CMA 91st Technical Conference – Atlanta, GA

10. Customer Supplied Sensory Training Product - Flavor • Roasted / toasted / baked flavors • Scorched • Intensity • Off oil flavor, rancid • Off or foreign flavors • Unbalancedflavor • Heat intensity B&CMA 91st Technical Conference – Atlanta, GA

11. Customer Supplied Sensory Training Product - Texture • Hard, soft, crisp, mushy, crunchy • Oily mouth-feel • Too thin, too thick • Chalky mouth-feel • Dry mouth-feel • Gritty B&CMA 91st Technical Conference – Atlanta, GA

12. Sensory Evaluation begins with raw materials and packaging. Ingredient Receiving/Sampling COA Verification Lot Tracking B&CMA 91st Technical Conference – Atlanta, GA

13. One Ingredient’s Path Receiving Finished Drizzle Shipping Ingredient Drizzle Warehouse Ingredient Ingredient Melting B&CMA 91st Technical Conference – Atlanta, GA

14. Example: Flour Receiving/Testing Ph and Spread tests must be performed on all bulk flour prior to unloading. COA must also be verified. If spread test or pH does not meet min/max requirements, perform a retest and contact Quality Management immediately. All testing needs to be documented in the Raw Material Log Book along with date sample is received, lot #, manufacturer, and amount received. B&CMA 91st Technical Conference – Atlanta, GA

15. Sensory Evaluation begins with raw materials and packaging. B&CMA 91st Technical Conference – Atlanta, GA

16. Sensory Evaluation begins with raw materials and packaging. B&CMA 91st Technical Conference – Atlanta, GA

17. Processing Baking Mixing Forming Mixing Cooling Wrapping B&CMA 91st Technical Conference – Atlanta, GA

18. New Product Development – Customer/Oak State Sensory standardization on new and re-formulized products. New customers without Sensory programs can choose to adopt a program already in place at Oak State. Finished product cookie checks are performed hourly for Appearance, Flavor, Aroma and Texture. HOLD criteria is based on a scale of 0 to 10. 0-3, acceptable, 4-9, adjust and 10, no ship. Existing customers with new or re-formulized products typically choose to use an existing program with or without additions. Standard formats are reused with agreed upon customer approved updated specs and graphics. Specs are typically reviewed with the customer following a fifty shift run time of each product. B&CMA 91st Technical Conference – Atlanta, GA

19. Sensory Program To ensure that we are in compliance with the specifications set forth by our customers for sensory perceptions of their products.Sensory tests will be performed once per hour or as often as the customer requests. This procedure is customer specific. Allaspectsoftheproductwillbetaken into consideration. These tests include color, size, shape, general appearance, taste, texture, aroma, film appearance, code appearance, carton appearance, case appearance, and any other factors that affect the appearance of the product. B&CMA 91st Technical Conference – Atlanta, GA

20. Sensory Program Sensory Review is a HOLD criteria - If any sensory component of a product does not conform to our customer specifications the product will be placed on hold. The line supervisor will be informed of the nonconformity and immediate action will be taken to correct the problem. The product will continuetobeplacedonholduntiltheproductiswithinspecs. TheQualityManagerwillbenotified of thenonconformity and the product that had been placed on hold will be reviewed by the quality manager and shift supervisors. Only the quality manager can take product off hold. B&CMA 91st Technical Conference – Atlanta, GA

21. Establishing customer criteria and specifications – What is an approved Sensory Guide and how sensory review forms become standard. * - The following slides are an agreed upon customer approved updated specs and graphics Image and Defect Reference Manual. * - Training on PES, Product Evaluation System worksheets is based on the Image and Defect Reference Manual. B&CMA 91st Technical Conference – Atlanta, GA

22. Example: Image and Defect Reference Manual Only specifications that directly impact potential defects are listed below. For a complete list of specifications, and to confirm any updates to specifications, please refer to the Production manual (PM) in the Snacks Sharepoint site. PRODUCT INFORMATION: Peanut Butter Patties have several steps in their processing. First the cookie dough is mixed. Then using a rotary molder, the cookie bases are shaped and baked. Once the cookie bases have cooled sufficiently peanut butter is deposited on to them. These continue down the line until they are fully enrobed in a light compound coating of chocolate. They are cooled and then packaged for shipping. The cookie base is light tan, with a golden peanut butter filling, and chocolate brown coating. The cookie base lends a crisp texture, while the chocolaty coating and peanut butter have a smooth mouthfeel with a blending of the three flavors. Once the cookies are cooled they are packed 15 to a tray and overwrapped with suitable moisture, oxygen, barrier property film. The finished product shall meet all standards for human consumption including compliance with provisions of the Federal Food, Drug and Cosmetic Act and General Regulations for its enforcement. All processes shall be in accordance with good commercial practice and under sanitary conditions. APPEARANCE ATTRIBUTES: • The basecake is a light tan. • The peanut butter is a light golden brown. •The enrobed cookie is medium dark brown. • A creamy peanut butter filling with no unmixed ingredients. • Peanut Butter filling is centered and uniform in appearance. There should be no air pockets or voids in the filling. • Fully enrobed cookie. Coating application should be uniform, with no coating voids, partially coated cookies, coating splash ups or coating tails. • Coating has a visible gloss or sheen (reflects light) immediately after manufacture. This will fade over time. FLAVOR ATTRIBUTES: • The finished product exhibits a moderate peanut butter aroma and a low chocolate aroma. • The initial bite is peanut butter. This is followed by a mild chocolaty flavor, with low salt notes at end. TEXTURE ATTRIBUTES: • Finished cookie has a tender initial bite followed by a melt-away texture. • Peanut Butter filling is soft and moist without being waxy. • Coating is smooth and melts readily in the mouth with a slightly waxy mouthfeel. B&CMA 91st Technical Conference – Atlanta, GA

23. Example: Image and Defect Reference Manual Image Top (Finished Cookie) Image Basecake Only B&CMA 91st Technical Conference – Atlanta, GA

24. Example: Image and Defect Reference Manual Image Top (Finished Cookie) Image Basecake Only B&CMA 91st Technical Conference – Atlanta, GA

25. Example: Image and Defect Reference Manual FOOD REVIEW GUIDELINES Broken are counted on a package basis. It is important that all cookies in a package are reviewed. Once displayed, the cookies may be quickly scanned and the trend and size of defect determined. Most other defects should be judged on a per package basis, unless otherwise specified in the individual defect definition, please refer to the below guidelines: “A” Defect – Only 25% of the package exhibit small area of defect. “B” Defect – 25% to 50% of the package exhibit some minor defects. “C” Defect – Greater than 50% of the package have minor defects. B&CMA 91st Technical Conference – Atlanta, GA

26. Example: Image and Defect Reference Manual LIST OF DEFECTS B&CMA 91st Technical Conference – Atlanta, GA

27. Example: Image and Defect Reference Manual APPEARANCE DEFECTS Chipped Edge - Reference B&CMA 91st Technical Conference – Atlanta, GA

28. Example: Image and Defect Reference Manual FLAVOR DEFECTS B&CMA 91st Technical Conference – Atlanta, GA

29. Example: Image and Defect Reference Manual TEXTURE DEFECTS B&CMA 91st Technical Conference – Atlanta, GA

30. Customer Supplied Product Evaluations and Reviews Product Evaluation, Example 2, is performed at the end of each production run on a random sample. Like samples are sent to the customer for corporate review. Information on the findings are shared. Defect Tally sheets, Example 1, are performed during production run every 60 minutes to an A, B and C defect level with three person sign-off. B&CMA 91st Technical Conference – Atlanta, GA

31. Every day guidelines – The significance of following standards, completing reviews and worksheets in a timely manner. Following Standards – “A quality standard must be developed for each product and ingredient. These standards must be stable and accepted by management. Deviation from a standard is not acceptable.” Standard vocabulary usage – Good and Bad. Each customer has their own vocabulary. In – Out; A defect, B defect, etc.; Green, Yellow, Red; Number System 1 – 10. Completion of Reviews and worksheets – Are required to be completed within a prescribed timeframe as well within acceptable limits. Incomplete, missing, out of spec. documents require ingredients, packaging, product, etc. to be placed on HOLD. B&CMA 91st Technical Conference – Atlanta, GA

32. Customer Supplied Finished Product Evaluations and Reviews Virtual Product Reviews are performed each period with the customer present via phone using like product samples from the previous months production runs. B&CMA 91st Technical Conference – Atlanta, GA

33. Oak State Daily Quality Reviews Daily Quality Reviews – Upper Management Reviews are performed once per day based on a representative sample of product produced. This review isa sensory/visualtest whereallaspectsoftheproductare taken into consideration. These tests include taste, texture, color, size, shape, general appearance, film appearance, code appearance, carton appearance, and any other factors that affect the appearance of the product. If any components of a product do not conform to our customer specifications the product will be placed on hold or customer contact will be made. B&CMA 91st Technical Conference – Atlanta, GA

34. Applying the plan and keeping it relevant – “day to day” Product Reviews, HOLDs, dispositions, etc. Assessing the plan, employee and upper management commitment. “Sensory evaluation takes a commitment on the part of corporate and plant management. The resources must be committed in order for the program to have a chance to work.” Share Sensory findings with both the employees and management. If no one sees the report they will all assume no one cares and quit reporting discrepancies to management. “In quality control, the object is to prevent the manufacture of bad product, not catch it before shipping.” B&CMA 91st Technical Conference – Atlanta, GA

35. Why Do We Use Sensory Evaluation? Most consumers desire products that meet their expectations for appearance, taste, texture and aroma, but… A product that disappoints them the first time may not get a second chance!! B&CMA 91st Technical Conference – Atlanta, GA