Dr. Les Pau aull, l, Founde der & CEO, Global bal Susta - - PowerPoint PPT Presentation

• Dr. Les Pau

aull, l, Founde der & CEO, Global bal Susta tainable le Solution tions, s, LLC (GSS)

Intelligent Thinking & Strategic Planning

Many U.S.-based agri-food companies lack comprehensive strategies to mitigate the effects

• f a product-harm crisis, which increases the

probability of corporate damage to the stock price, brand image, and sustainability. (Cleeren, van Heerde, & DeKimpe, 2013).

Bad Executive Decisions

• Product-harm crisis A product-harm crisis is a sudden and

unexpected event that threatens to disrupt an

• rganization'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).

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.

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 product-

harm crisis protect their brand and company sustainability.

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 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 (300–600MPa/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)

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 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

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 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 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)

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.

Save Lives and Save Your company

Thank You!