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Issue update Antibiotics

Issue update Antibiotics. July 25, 2012 – DRAFT . What we’ll cover . The situation What others are doing Our game plan. Antibiotics Issue Update. Issue update ANTIBIOTICS. Rep. Slaughter release w/ link citing Oscar Mayer Consumers Union “MEAT ON DRUGS” Targeting grocery stores

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Issue update Antibiotics

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  1. Issue updateAntibiotics July 25, 2012 – DRAFT

  2. What we’ll cover • The situation • What others are doing • Our game plan

  3. AntibioticsIssue Update

  4. Issue updateANTIBIOTICS Rep. Slaughter release w/ link citing Oscar Mayer Consumers Union “MEAT ON DRUGS” Targeting grocery stores Petition with 93,848 signatures Pew Health Group’s comment period campaign: 200,000 individuals and 293 chefs sign petition Tier 1 Media Coverage Washington Post (July 1 & 10) Fox News (July 5) ABC News (July 11) ABC Good Morning America (July 11) Superbugs in chicken (July 12) Add’l Media Interest Redbook Self NGO Coalition Competition position Consumer research & social media

  5. Issue updateANTIBIOTICS Rep. Slaughter release w/ link citing Oscar Mayer Consumers Union “MEAT ON DRUGS” Targeting grocery stores Petition with 93,848 signatures Pew Health Group’s comment period campaign: 200,000 individuals and 293 chefs sign petition Tier 1 Media Coverage Washington Post (July 1 & 10) Fox News (July 5) ABC News (July 11) ABC Good Morning America (July 11) Superbugs in chicken (July 12) Add’l Media Interest Redbook Self NGO Coalition Competition position Consumer research & social media

  6. Issue updateANTIBIOTICS Rep. Slaughter release w/ link citing Oscar Mayer Consumers Union “MEAT ON DRUGS” Targeting grocery stores Petition with 93,848 signatures Pew Health Group’s comment period campaign: 200,000 individuals and 293 chefs sign petition Tier 1 Media Coverage Washington Post (July 1 & 10) Fox News (July 5) ABC News (July 11) ABC Good Morning America (July 11) Superbugs in chicken (July 12) Add’l Media Interest Redbook Self NGO Coalition Competition position Consumer research & social media “…Consumers Union is launching the Meat Without Drugs campaign calling on grocery stores, starting with Trader Joe’s, to sell only meat raised without antibiotics. “

  7. Issue updateANTIBIOTICS 93,848 signatures toward the goal of 100,000 Rep. Slaughter release w/ link citing Oscar Mayer Consumers Union “MEAT ON DRUGS” Targeting grocery stores Petition with 93,848 signatures Pew Health Group’s comment period campaign: 200,000 individuals and 293 chefs sign petition Tier 1 Media Coverage Washington Post (July 1 & 10) Fox News (July 5) ABC News (July 11) ABC Good Morning America (July 11) Superbugs in chickens (July 12) Add’l Media Interest Redbook Self NGO Coalition Competition position Consumer research and social media

  8. Issue updateANTIBIOTICS Rep. Slaughter release w/ link citing Oscar Mayer Consumers Union “MEAT ON DRUGS” Targeting grocery stores Petition with 93,848 signatures Pew Health Group’s comment period campaign: 200,000 individuals and 293 chefs sign petition Tier 1 Media Coverage Washington Post (July 1 & 10) Fox News (July 5) ABC News (July 11) ABC Good Morning America (July 11) Superbugs in chickens (July 12) Add’l Media Interest Redbook Self NGO Coalition Competition position Consumer research & social media

  9. Issue updateANTIBIOTICS Rep. Slaughter release w/ link citing Oscar Mayer Consumers Union “MEAT ON DRUGS” Targeting grocery stores Petition with 93,848 signatures Pew Health Group’s comment period campaign: 200,000 individuals and 293 chefs sign petition Tier 1 Media Coverage Washington Post (July 1 & 10) Fox News (July 5) ABC News (July 11) ABC Good Morning America (July 11) Superbugs in chickens (July 12) Add’l Media Interest Redbook Self NGO Coalition Competition position Consumer research & social media

  10. Issue updateANTIBIOTICS Rep. Slaughter release w/ link citing Oscar Mayer Consumers Union “MEAT ON DRUGS” Targeting grocery stores Petition with 93,848 signatures Pew Health Group’s comment period campaign: 200,000 individuals and 293 chefs sign petition Tier 1 Media Coverage Washington Post (July 1 & 10) Fox News (July 5) ABC News (July 11) ABC Good Morning America (July 11) Superbugs in chicken (July 12) Add’l Media Interest Redbook Self NGO Coalition Competition position Consumer research

  11. Issue updateANTIBIOTICS Rep. Slaughter release w/ link citing Oscar Mayer Consumers Union “MEAT ON DRUGS” Targeting grocery stores Petition with 93,848 signatures Pew Health Group’s comment period campaign: 200,000 individuals and 293 chefs sign petition Tier 1 Media Coverage Washington Post (July 1 & 10) Fox News (July 5) ABC News (July 11) ABC Good Morning America (July 11) Superbugs in chicken (July 12) Add’l Media Interest Redbook Self NGO Coalition Competition position Consumer research and social media

  12. Issue updateANTIBIOTICS • Consumers Union • Center for Science in the Public Interest • Environmental Working Group • Food & Water Watch • Food Animal Concerns Trust • Human Society of the United States • John Hopkins Center for a Livable Future • Less Cancer • MomsRising • Natural Resource Defense Council • STOP Foodborne Illness Rep. Slaughter release w/ link citing Oscar Mayer Consumers Union “MEAT ON DRUGS” Targeting grocery stores Petition with 93,848 signatures Pew Health Group’s comment period campaign: 200,000 individuals and 293 chefs sign petition Tier 1 Media Coverage Washington Post (July 1 & 10) Fox News (July 5) ABC News (July 11) ABC Good Morning America (July 11) Superbugs in chicken (July 12) Add’l Media Interest Redbook Self NGO Coalition Competition position Consumer research & social media

  13. Can add a link if you want to play a video Issue updateANTIBIOTICS • Rep. Slaughter release w/ link citing Oscar Mayer • Consumers Union “MEAT ON DRUGS” • Targeting grocery stores • Petition with 93,848 signatures • Pew Health Group’s comment period campaign: 200,000 individuals and 293 chefs sign petition • Tier 1 Media Coverage • Washington Post (July 1 & 10) • Fox News (July 5) • ABC News (July 11) • ABC Good Morning America (July 11) • Superbugs in chickens (July 12) • Add’l Media Interest • Redbook • Self • NGO Coalition • Competition position • Consumer research & social media

  14. Issue updateANTIBIOTICS ADD MOTIVE QUEST and OTHER CONSUMER RESEARCH • Rep. Slaughter release w/ link citing Oscar Mayer • Consumers Union “MEAT ON DRUGS” • Targeting grocery stores • Petition with 93,848 signatures • Pew Health Group’s comment period campaign: 200,000 individuals and 293 chefs sign petition • Tier 1 Media Coverage • Washington Post (July 1 & 10) • Fox News (July 5) • ABC News (July 11) • ABC Good Morning America (July 11) • Superbugs in chicken (July 12) • Add’l Media Interest • Redbook • Self • NGO Coalition • Competition position • Consumer Research & social media

  15. Issue updateANTIBIOTICS According to Citizens Against Superbugs1: • 75% of Americans want government to do something to restrict the use of antibiotics in animal farmers • 71% believe that antibiotic overuse and misuse is causing antibiotic resistance and a human health crisis • Rep. Slaughter release w/ link citing Oscar Mayer • Consumers Union “MEAT ON DRUGS” • Targeting grocery stores • Petition with 93,848 signatures • Pew Health Group’s comment period campaign: 200,000 individuals and 293 chefs sign petition • Tier 1 Media Coverage • Washington Post (July 1 & 10) • Fox News (July 5) • ABC News (July 11) • ABC Good Morning America (July 11) • Superbugs in chicken (July 12) • Add’l Media Interest • Redbook • Self • NGO Coalition • Competition position • Consumer Research & social media 1Applegate Responds to Rep. Slaughter’s Question on ‘What’s in the Beef” as New Study Finds Origins of MRSA Strain in Food Animals. Dec. 2011 survey was administered by Toluna, one of the world’s leading online panel and survey technology providers. Sample size 2,211 men and women over the age of 18

  16. Mounting government interest • GAO report • FDA guidance • H.R. 965: Preservation of Antibiotics for Medical Treatment Act of 2011 • FAO of United Nations intiative

  17. AntibioticsWhat others are doing

  18. Key terms • Antibiotic: A substance produced by microorganisms that kills or inhibits other microorganisms • Therapeutic: Treatment, control and prevention of bacterial disease • Sub-therapeutic: Administration of an antibiotic at a low level for an extended period of time to promote growth and prevent illness in animals • Antimicrobials: An agent that kills bacteria or suppresses their multiplication or growth. This includes antibiotics and synthetic agents. It exclusedionophores and arsenicals. • Antiobiotic resistance: A natural biological process that enables bacteria to outmaneuver the very drugs designed to kill them. • Is transferred via two methods: • Intrinsic transfer, in which pre-existing resistance only is transferable to the progeny of a bacteria • Acquired, which develops through mutations or from DNA transfer among bacteria • Medically important antibiotics: Antibiotics used in both animal and people that are important to treat human infections

  19. Four categories of FDA-approved food animal antibiotic uses Disease Treatment Administered to a group of animals when a proportion of the animals in the group exhibit clinical signs of disease Disease Control Disease Prevention Growth Promotion Administered only to animals exhibiting signs of disease • Administered to growing, healthy animals to promote increased weight gain. Such uses are typically administered continuously through the feed or water in a herd- or flock-wise basis. • Administered to a group of animals, none of which are exhibiting clinical signs of disease, in a situation where disease is likely to occur if the drug is not administered The FDA considers treatment, control, and prevention all to be "therapeutic" uses targeting a specific disease or agent, whereas growth promotion is what some call a "sub-therapeutic.“

  20. Peer & Competitive BenchmarkingAntibiotic Positions • Large Processors & Suppliers • Cargill • Tyson • JBS Swift • Seaboard • Prestage Farms • Hormel • Sara Lee • Smithfield • Restaurants • McDonalds • Burger King • Wendy’s • Compass Group • Wolfgang Puck • Bon Appetit • Starbuck’s • Panera • Chick-fil-A • Arby’s • Chipolte • YUM! KIF, Taco Bell and Pizza Hut • Subway • Grocery • Walmart • Kroger • Supervalu • Target • Safeway • Wegman’s • Whole Foods • Niche Processors • Applegate Farms • Coleman Natural Foods

  21. Public positions on antibiotics Offers choice Antibiotic-free Comply with FDA guidelines Only used to prevent, treat & control disease * *Residue-free, no hormones added (which in pork isn’t allowed any ways)

  22. Position: Use according to FDA’s regulations • Food safety is our top priority • Complies with all applicable laws and regulations (FDA, USDA and FSIS) • Support best practices and where applicable “require suppliers” • Meet or exceed government regulatory requirements (Hormel increased monitoring of residues) • Expects suppliers look to industry assurance programs • Supports the changes being implemented by FDA (phase out sub-therapeutic use and phase in veterinary oversight for all medically important antibiotics) • Hope to identify new practices that could eliminate their use

  23. Position: Only used to prevent, treat, control illness; no growth promotion • Antibiotics used for three purposes (Smithfield/pork): • Prevent disease • Control disease • Treat disease • Not continuously fed • Not used for growth promotion purposes • Small portion of hogs raised without antibiotics for niche market (pay up to 30% more) (Smithfield) • Does not permit use of antibiotics for growth promotion or to improve feed efficiency (Chick-fil-a; YUM! Brands (verified through annual supplier certification process); Burger King – 100% for chicken; beef and pork are not known due to the fact that the animals come from thousands of farmers ) • Working with suppliers to ensure that these new FDA recommendations are fully reflected in supplier practices (Yum! Brands)

  24. Position: May not use human antibiotics in animal growth promotion • Disapproved the purchase of poultry in which antibiotics that belong to classes of compounds approved for use in human medicine have been used for growth promotion (Compass Group) • Expect products which adhere to specific criteria developed in partnership with Environmental Defense Fund. Has guidelines in pork regarding the use of non-therapeutic antibiotics – supplier is gradually reducing use (Compass Group) • Suppliers much meet our policy or present a plan on how they will work with us to achieve our goals in the future (Compass Group) • Preference is to use antibiotic-free meat whenever possible. In Feb 2012, initiated commitment to source 25% from Certified Humane sources (Compass Group/Bon Appetit)

  25. Position: Offer consumer choice • Provide a wide variety of fresh and frozen choices, including antibiotic-free products for our customer who want them and understand why there may be a higher price • Shows a detailed chart that outlines which products are produced without antibiotics, antibiotics only for disease treatment, antibiotics for treatment and control and routine use of antibiotics (Wegmans) • All meat is free from unacceptable levels of residues, whether the antibiotic was administered for disease treatment or disease control (Wegmans) • Supports responsible use which includes • Supports all FDA, USDA guidance (withdrawal times, random residue testing) • Under supervision of certified veterinarians • Witholding antibiotics from sick animals is nhumane and doesn’t comply with our animal welfare program • Safeway’s Rancher’s Reserve Beef Program – animals removed from the program if antibiotic treatment administered twice in animal’s life span • Current limitations are due to “limited availability of raw materials” (Safeway)

  26. Position: Antibiotic-free No antibiotics, EVER! (Whole Foods) “First national restaurant company to serve 100% naturally raised meat, all of which comes from animal that are raised in a humane way and never given antibiotics or added hormones.” (Chipolte)“ Do, on occasion, incur unpredictable and short-term supply disruptions “Strives to provide ‘clean” food at a reasonable price…” (Panera) Serves antibiotic-free chicken Added some antibiotic-free roasted turkey Serves a growing portion of pork products “Does not sell any meat that was produced with antibiotics” (Applegate Farms) “Works with a network of nearly a thousand family farmers who use common-sense animal husbandry practices like a clean environment, enough space and 100% vegetarian diet, and as a result, we’ve managed to have less than 1% of our producers’ animals fall ill.”

  27. AntibioticsOur game plan

  28. Need to discuss this as a team … thought starter ideas only Our game plan 1. Take a 360-degree view to understand the landscape and landmines • The science • Supplier positions and future intentions • Consumers intentions, price points • Competitors/peer positions 2. Determine Oscar Mayer position • Must align across Kraft Foods • Interim • Long-term

  29. AntibioticsQuestions?

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