2008 KPMG Executive Roundtable

Kruh: Is, for lack of a different phrase, “doing the right thing” from an environmental standpoint positive internally for your organization, for your employees to be cognizant of?

Pillitteri: We’re the first HACCP advantage plus certified winery, and that’s a big advantage. But it’s also put a lot of weight back on the staff. Our industry’s not as mature as others yet, we’re just starting to evolve, and leading is hard. But people do care. I think they’re finally coming around to the fact that these critical control points are very important in terms of a business. At the end of the day, consumers want us to be in charge of our products.

Smith: That brings us to food safety, which is a common thread throughout the industry. How is your sector and each of your companies coping with consumer concerns surrounding food safety? And how can we ensure that the standards that are put in place or that are considered appropriate to the Canadian marketplace are adhered to?

Mizrahi: Well, our understanding as an industry of the standards in China continues to develop, we are demanding far more information of our ingredient suppliers. We demand certificates of origin, we ask far more questions and demand far more information regarding testing and the composition of the ingredient. It’s opened our eyes, as an industry, to the potential risks associated with dealing in a global environment. We also ensure that we deal with very high-quality, well-respected global suppliers; we don’t chase the deal of the week. We’re dealing with ingredient suppliers who understand the regulatory requirements and will not scrimp on testing, on inspection or on the source of their ingredients. So it has been and will continue to be an educational process.

Smith: Let’s discuss functional and wellness foods and their affect on the way the food and beverage industry researches, develops and sources new products. Are these products promoting unrealistic expectations regarding manufacturing capabilities? What barriers exist in terms of expanding this sector?

Rainey: The biggest barrier to health and wellness in Canada is the Canadian government. The regulations are significantly antiquated, to be honest. As an example, on one side of the border we’re able to say we sell all-natural spices, but on the other you’re not allowed to say that, even though it’s the exact same product. Organic is another issue – the Canadian government has three certifications for organic. And so is that confusing to the consumer? Obviously. And then from the wellness perspective, there’s the issue of fortification, making products healthier but being unable to tell consumers about it in Canada.