food Processing exPo - CLFPclfp.com/documents/nv/nved12013_web.pdf · 16 Food Processing Expo 2013...

T h e V o i c e a n d a d V o c aT e f o r T h e c a l i f o r n i a f o o d P r o c e s s i n g i n d u s T r y

E d i t i o n 1 , 2 0 1 3

food Processing

exPosomething for everyone

CordeliaRoad

Chadbourne Road

Downtown

42 Miles to Sacramento

38 Miles to I-5

45 Miles to San Francisco

Fairfield

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Sutter Regional Medical Foundation

Rail Line

Rail Line

Gateway 80 Business Park

±52.4 Acres

Rail Line

U P TO ±52.4 A ±2 AC R E S

w w w . g a t e w a y 8 0 b u s i n e s s p a r k . c o m

PROJECT HIGHLIGHTS:• Excellent Street Frontage with Immediate Access to I-80, I-680 & Hwy 12

• All Utilities Available; Site Features Access to 5 Million Gallons of Water per Day

• Fairfield Features Two State-of-the-Art Water Treatment Plants, Providing

Extensive Water and Sewer Capacity ideal for Food and Beverage Industries

• Access to 12,000 Volts & 115,000 Volt Electrical Transmission Lines

• Business-Friendly City Supportive of New Development; Streamlined Building

Approval Process

• Zoned for Industrial, Manufacturing and R&D Type Uses

• Located in Fairfield’s Premier Business Park Featuring Companies such as Jelly Belly,

Anheuser Busch, Guittard Chocolate, Calbee, Amcor Packaging & Meyer Cookware

FOR MORE INFORMATION CONTACT:Brian Rein at (888) 483-8175 or [email protected]

CORPORATE NEIGHBORS

Anheuser Busch Brewing Company

Jelly Belly Candy Company

Guittard Chocolate Company

E X C E L L E N T L O C A T I O N F O R F O O D & B E V E R A G E C O M P A N I E S

G A T E W A Y 8 0 B U S I N E S S P A R K • F A I R F I E L D , C AE X C E L L E N T L O C A T I O N F O R F O O D & B E V E R A G E C O M P A N I E S

California League of Food Processors 1

10

In Every Issue

5 President & CEO Message

8 Legislative Update

10 Regulatory Report

24 New Members

E d i t i O N 1 , 2 0 1 3

Features

6 Annual Board of Directors' Meeting

9 Mitigate Your Risk

16 Food Processing Expo 2013 Recap

18 Employment Law Update

21 New Era for NOx Emissions Control

22 Product Recalls and The Food Safety Modernization Act

CordeliaRoad

Chadbourne Road

Downtown

42 Miles to Sacramento

38 Miles to I-5

45 Miles to San Francisco

Fairfield

CordeliaRoad

Sutter Regional Medical Foundation

Rail Line

Rail Line

Gateway 80 Business Park

±52.4 Acres

Rail Line

U P TO ±52.4 A ±2 AC R E S

w w w . g a t e w a y 8 0 b u s i n e s s p a r k . c o m

PROJECT HIGHLIGHTS:• Excellent Street Frontage with Immediate Access to I-80, I-680 & Hwy 12

• All Utilities Available; Site Features Access to 5 Million Gallons of Water per Day

• Fairfield Features Two State-of-the-Art Water Treatment Plants, Providing

Extensive Water and Sewer Capacity ideal for Food and Beverage Industries

• Access to 12,000 Volts & 115,000 Volt Electrical Transmission Lines

• Business-Friendly City Supportive of New Development; Streamlined Building

Approval Process

• Zoned for Industrial, Manufacturing and R&D Type Uses

• Located in Fairfield’s Premier Business Park Featuring Companies such as Jelly Belly,

Anheuser Busch, Guittard Chocolate, Calbee, Amcor Packaging & Meyer Cookware

FOR MORE INFORMATION CONTACT:Brian Rein at (888) 483-8175 or [email protected]

CORPORATE NEIGHBORS

Anheuser Busch Brewing Company

Jelly Belly Candy Company

Guittard Chocolate Company

E X C E L L E N T L O C A T I O N F O R F O O D & B E V E R A G E C O M P A N I E S

G A T E W A Y 8 0 B U S I N E S S P A R K • F A I R F I E L D , C AE X C E L L E N T L O C A T I O N F O R F O O D & B E V E R A G E C O M P A N I E S

16

8

21

2 news & Views Magazine Edition 1, 2013

CLFP Board of DirectorschairVaughn Koligian, Sun-Maid Growers of California

firsT Vice chairDan Sroufe, Pacific Coast Producers

second Vice chairGreg Estep, Olam Spices & Vegetable ingredients

Bell-Carter Foods, InC. Ken Wienholz

CalIFornIa FIre-roasted, llCKirk Bewley

california oliVe ranchJim Lipman

camPbell souP suPPly comPany timothy Gruenwald

conagra foodsPat Coe

culinary farmsKirk Bewley

del Mar Food ProduCts CorP.P. J. Mecozzi

del monTe foodsDavid Withycombe

delallo ItalIan Foods, InC.George Hoag dIana FruIt Co., InC.Eugene C. Acronico

FrIto-lay, InC.Scott Kinghorn

GIlls onIons, llCSteven H. Gill

giulianos’ sPecialTy foodsCorey Giuliano

H. J. HeInz CoMPanyScott Ruffe

hilmar cheese comPanyBurt Fleischer

HorIzon nut CoMPanyJeff Jankovic

ingomar Packing comPanyGregory R. Pruett

J.G. Boswell toMato Co. llCDave Johnson

KaGoMe, InC.Ann Hall

krafT foodsDerek Crawford

los gaTos TomaTo ProducTsReuben Peterson

Mad wIll's Food CoMPany, InC.Gilbert Hilleary

MarIanI PaCKInG CoMPany, InC.George Sousa, Sr.

mooney sTarNick Kastle

tHe MornInG star PaCKInG Co.Chris Rufer

MusCo FaMIly olIve Co.Janet Edwards

nw PaCKInG/san BenIto FoodsSteve Arnoldy

olam sPices & VegeTable ingredienTsMike Smyth

PaCIFIC CHoICe Brands, InC.Allan Andrews

Pacific coasT Producersdan Sroufe

satICoy Foods CorP.Glen A. Fischer

seneca foods corPoraTiontim Nelson

sensienT dehydraTed flaVors llcAlejandro Ballesteros

sMuCKer FruIt ProCessInG Co.Al Yamamoto

sTanislaus food ProducTsTom Cortopassi staPleton-sPenCe PaCKInG Co.Brad Stapleton

sun-MaId Growers oF CalIFornIaVaughn Koligian

sunsweet GrowersMelvin Ward

suPherb farmsMike Brem unIlever suPPly CHaIn, InC.Randall Ledet

wawona Frozen FoodsWilliam S. Smittcamp

west Coast ProduCtsdan Vecere

wHIte oaK Frozen FoodsJim McKendry

wIlBur PaCKInG CoMPanyRichard R. Wilbur, ii

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1323DCSprFVhalfpage_CLFP.indd 1 04/19/2013 11:01 AM


edItIon 1, 2013November 2012 - April 2013

ediTor Amy Alcorn

layouT & designAmy Alcorn

conTenT ediTorAllyson Rathkamp

ContrIButInG wrItersAmy AlcornLarry day

downey Brand LLPtrudi HughesJohn Larrea

Richard MachadoRob Neenan

Bernie Steves

news & vIews Is PuBlIsHed seMI-annually By:

the California League of Food Processors1755 Creekside Oaks Drive, Suite 250

Sacramento, CA 95833Phone: 916-640-8150

Fax: 916-640-8156Email: [email protected]

For most recent updates, please visit our website:www.clfp.com

FRONt COVER:Food Processing Expo 2013 by Gino Creglia

Contents © 2013. All rights reserved. No part of this magazine may be reprinted in whole or part without written permission of

the publisher.

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President & CEO Message

Global food demand is expected to increase rapidly in the next few decades, providing new opportuni-ties for California farmers and pro-cessors. The world population is expected to rise from the current level of 6.3 billion to over 9 bil-lion people by 2050. Most of the population growth will occur in de-veloping countries and one-third of the world population will be in two countries: india and China.

Feeding nearly three billion more people will require raising overall food production by nearly 70 percent, a daunting task. At the same time, human diets are chang-ing towards more consumption of meat, which is more input intensive than crop production.

there is limited arable farm land that is not currently in production, and much of the uncultivated land has poor soils, inadequate rainfall or access to irrigation, lack of infrastructure, or other issues. in many areas land use is shifting from food production to biofuel production to meet growing energy demand.

Satisfying the rising demand for food will require large improvements in crop yields, increased use of irrigation, and reduced crop losses due to spoilage. Competition between residential users and agriculture for water will intensify, and this will complicate efforts to boost crop yields.

Many analysts believe that although significant increases in yields can be achieved through improvements in farm-ing practices in developing countries, those changes will not be enough to keep pace with the rapidly expanding population. Biotechnology will be a critical component, and research is already taking place to find ways to make crops use less water, tolerate higher levels of salinity, in-crease pest and disease resistance, and increase nutrient content.

U.S. food processors and growers will play a critical role in meeting world food demand. Even under optimistic assumptions about improved production in developing countries, food exports from the U.S. and other devel-oped nations will have to more than double over the next 40 years. The California food industry may ride this wave of growth and see a wide range of new export opportuni-ties.

Our job at CLFP is to ensure that policy makers in Cali-fornia understand the important role the food proces-sors play in the state’s economy, but also the significant contribution that food processors will play in long-term global food security.

by Rob NeenanCLFP President & CEO

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The Hotel del Coronado in Coronado, California served as the location of CLFP's Annual Board of Directors' Meeting which took place April 25 & 26, 2013. Over fifty attendees joined in social and business activities.

The annual election of officers yielded:

chairVaughn Koligian, Sun-Maid Growers of California

first Vice chairDan Sroufe, Pacific Coast Producers

second Vice chairGreg Estep, Olam Spices & Vegetable Ingredients

elected to serve new two-year terms on the executive Committee (2013-2015):P.J. Mecozzi, del Mar Food ProductsBill Smittcamp, Wawona Frozen FoodsAnn Hall, Kagome, inc.Chris Rufer, The Morning Star Packing Co.Reuben Peterson, Los Gatos tomato Products

serving the remainder of a 2012-2014 term on the executive Committee:Randy Rickert, Unilever Supply Chain, Inc.Burt Fleischer, Hilmar Cheese Co.Dave Johnson, J.G. Boswell Tomato Co.Scott Ruffe, H.J. Heinz Co.Pat Coe, ConAgra FoodsJanet Edwards, Musco Family Olive Co.

Annual Board of Directors' MeetingCalifornia league of food ProCessors

Other business items included:

• The Executive Committee approved 2013 Scholarship Program awards amounting to $31,000;

• The auditors report on the 2012 financial statements was approved and accepted, and the status of the 2013 budget was reviewed;

• Food Processor membership applications were approved for White Oak Frozen Foods and Horizon Nut Company. The Board also discussed the staff initiative to increase food processor membership;

• Reports of CLFP legislative activity, water resources, agricultural products, food safety, nutrition and labeling, labor and employment, air quality and energy, truck weight project and BOE validation factor study;

• A recap of the results of the 2013 Food Processing Expo and discussion of plans for the 2014 Expo;

• Plans for Capitol Day, scheduled to be on June 25, 2013.

At the general session, presentations were made by:

• dennis Arriola, President and COO, Southern California Gas Company Topic: Natural Gas Issues Update

• Daniel Cozad, Executive Director, Central Valley Salinity Coalition Topic: CV-SALTS: Why It Matters To You

• Jeff Malin, Senior Business Development Specialist, Governors' Office of Business and Economic Development Topic: Services Available from the Governor's Office of Business and Economic Development

Hotel del CoronadoCoronado, CaliforniaApril 25 & 26, 2013


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by trudi HughesCLFP Government Affairs Director

Legislative Update

2013 California Legislative SessionWith Democratic supermajorities in both the California State Senate and Assembly, the 2013-14 Legislative Ses-sion promises to be filled with policy and political chal-lenges. A supermajority in both legislative houses gives Democrats the power to control not only tax measures but constitutional amendments and urgency legislation, which are bills meant to take effect immediately. It also gives them the ability to override the Governor’s vetoes. the business community is concerned about what this new power structure in the legislature might mean for the economic vitality of the state. CLFP and other busi-ness groups have been focusing their attention on the “Moderate Democrat Caucus,” which is made up of business friendly democrat legislators, largely from the Central Valley. With the Republicans now being on the sidelines of most major policy decisions, the moderate Democrats will be key to curtailing the advancement of legislative measures that could be detrimental to the business climate in California. they will also be instru-mental in moving measures forward that will provide much needed regulatory relief to businesses.

The 2013 Legislative Session began on January 7, 2013. CLFP staff reviewed the thousands of new bills intro-duced in the Legislature in January and February and, in conjunction with the CLFP Legislative Affairs Committee, determined which measures impact the food processing industry.

The legislative policy and fiscal committees have been holding hearings since March in order to meet man-datory legislative deadlines. CLFP is actively engaging on a number of key legislative issues that have a di-rect impact on the food processing industry, including:

• Reform of the California Environmental Quality Act;• Reform of Proposition 65;• Reform of the California Alternate Rates for Energy

Program (CARE); • Regulatory reform;• Targeted taxes on sweetened beverages;• Expansion of the California Beverage Recycling Pro-

gram;• Increases in penalties for air quality violations;• Imposition of significant new statutory limitations on

all future tax credits, deductions, exclusions, and ex-emptions.

CLFP’s Legislative Affairs Committee The CLFP Legislative Affairs Committee’s mission is to in-crease member engagement and participation in CLFP’s legislative affairs program and to provide staff with tech-nical and strategic assistance on legislation, lobbying as-sistance on key bills, and Capitol Day planning and par-ticipation. The CLFP Legislative Affairs Committee meets monthly to discuss bill status updates and new issue developments. If you are interested in participating in the committee contact Trudi Hughes or Allyson Rathkamp.


Mitigate Your Riskby Richard MachadoAgrian inc.

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Agrian has received considerable adoption from both field level us-ers and processors, making sharing growing practices as easy as simply pressing a button – Agrian calls it the network effect. Growers, Crop Consultants and Ap-plicators with Agrian accounts, sim-ply login to Agrian’s web-based ser-vice and share product use reports directly to food processors. These

electronic submissions eliminate the need of repetitive data entry. Pro-cessors can also generate detailed reports in Agrian or easily intergrade the data into their own ERP system for more flexibility.

Agrian’s Documented Processor Ac-count provides a grower manage-ment tool for use by their field de-partment to track cultural practices during the growing season. in ad-dition, customized crop forecasting formulas can be created. detailed GIS/GPS mapping of all growing sites is a feature that allows for the iden-tification of potential hazards from surrounding crops or other sources.

With more than 6,500 indexed la-bels, the Agrian database is the largest manufacturer, indemnified database in the US. The database

features crop-specific rates, REI and PHI timelines; and it is a valuable tool to check against any standards or controls established internally.

Agrian also offers an iPhone or iPad app, Agrian Mobile, enabling users the ability to access Agrian’s label database, field data, and perform trap counting from their device.

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Regulatory Reportby trudi Hughes and John LarreaCLFP Government Affairs Directors

Regulation of Waste Water Discharges by Farmers and Food Processors to IncreaseThe Central Valley Regional Water Quality Control Board (Regional Board) is moving forward with new waste wa-ter discharge regulations for agriculture, and continues the process to develop new standards for food proces-sors and other industrial waste water discharges. the irrigated Lands Regulatory Program (iLRP) is designed to monitor and protect surface water and ground water that may be affected by farming operations. The Board’s key concerns include increasing nitrate and salt concen-trations and the detection of pesticides and herbicides above prescribed limits. Most farmers in the Central Valley have joined regional coalitions to develop and implement best practices, conduct water quality moni-toring programs, and demonstrate compliance with reg-ulations. The coalitions have estimated that the cost of compliance for farmers will range from $3 - $10 per acre, per year, depending on a number of factors.

The Regional Board is also in the process of revising its Basin Plans, the regulations that set standard for Waste Discharge Requirements. Similar to the ILRP, the Central Valley Salinity Alternatives for Long-Term Sustainability (CV-SALTS) initiative is focusing on the long-term buildup of salts and nitrates in surface and ground waters. CV-SALTS is a multi-stakeholder process that is examining water quality issues, long-term compliance options, and how current regulations could be revised to enhance wa-ter quality without imposing an unreasonable economic burden on businesses. CLFP has been actively partici-pating in CV-SALTS and is advocating for a number of changes in the regulations which will give food proces-sors more site-specific compliance options. However, the Regional Board may impose new requirements regarding the use of Best Management Practices in exchange for more compliance flexibility. The new draft regulations may be completed by 2015. (Staff Contact: Rob Neenan/Trudi Hughes)

BPA Proposition 65 ListingThe Office of Environmental Health Hazard Assessment (OEHHA) announced its decision to include Bisphenol-A (BPA) on the Proposition 65 list on April 11, 2013. But the American Chemistry Council (ACC) asked the courts to freeze the listing until after a decision in its pending law-suit, filed against OEHHA in Sacramento County Superior Court on March 15, 2013. In July 2009, OEHHA's Developmental and Reproduc-tive Toxicant Identification Committee (DART-IC) voted unanimously that BPA did not belong on the Prop 65 list, based largely on the findings from a 2008 report by the National Toxicology Program. ACC's lawsuit says the new attempt to get BPA on the Prop 65 list — using a different mechanism but the same scientific studies — amounts to circumventing the state's scientific process by allow-ing administrative staff to override the scientific panel's 2009 decision.

A California judge granted a preliminary injunction Fri-day, April 19, 2013. The removal of BPA from the list is effective immediately according to OEHHA. OEHHA also said that it is withdrawing its proposal for setting "safe harbour levels" for BPA. That effort would have deter-mined if products must carry a label warning consumers that a product could expose them to more than the maxi-mum allowable dose level (MADL). Should BPA end up back on the list of possible carcinogens and reproductive toxicants, labeling requirements would go into effect one year after listing.

A major concern for CLFP, ACC and many others in manu-facturing, is that listing BPA, a key component of poly-carbonate and certain epoxy resins, could result in pre-emptive deselection by manufacturers and consumers avoiding a large number of products without a full under-standing of the amount of BPA they are being exposed to or the potential effects of the chemical.(Staff Contact: Trudi Hughes)

Industrial General Permit for Storm Water DischargeIt appears that CLFP’s efforts to work with the staff of the State Water Resources Control Board (State Board) on the Draft Industrial General Permit for Storm Water Discharge (Draft) is paying off. The CLFP Water Resources Subcommittee assisted CLFP staff with developing com-prehensive technical comments on the Draft as well as providing detailed testimony at the Board’s public hear-ings.

An early review of the revised draft that is due out in May 2013 shows many improvements. Many of CLFP’s requested changes were made. Overall, the revised draft


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permit is much improved from the original draft that was released in January 2011. In particular, the removal of numeric effluent limits and the inclusion of more flexible monitoring, sampling and training requirements make the new draft permit much more workable.

However, despite these improvements, CLFP still believes that this new draft permit is a significant departure from the existing permit. In particular, CLFP remains con-cerned about receiving water limits and the heightened exposure to third party lawsuits. CLFP will continue to work with the State Board on these issues.

According to the State Board staff, there will likely be a 45 day comment period after the new revised Draft is re-leased. Two informal staff workshops will be scheduled prior to the final adoption scheduled tentatively set for July 2013.(Staff Contact: Trudi Hughes)

CARB Investment Plan the California Air Resources Board (CARB) held its last public hearing on April 25 eliciting public comment on the Draft Investment Plan (Investment Plan) for the al-location of the proceeds obtained from the cap-and-trade auctions. Pursuant to Assembly Bill 1532, the De-partment of Finance (DOF), in conjunction with CARB, is required to develop a 3-year investment plan for the expenditure of funds in the Greenhouse Gas (GHG) Re-

duction Fund in the State Treasury to achieve reductions of greenhouse gas emissions. the dOF, which now has the Investment Plan, will submit the final version to the Legislature to be included in the Governor’s May Revise of the 2013 Budget.

The initial draft of the Investment Plan was released by CARB on April 16, 2013 and was followed by three public workshops held earlier this year in Fresno, Sacramento, and Los Angeles. CLFP attended both the Fresno and Sacramento workshops and submitted formal comments on the draft of the plan.

To date, the cap-and-trade auction has netted over $500 million in funds. Expectations are that the fund could gar-ner upwards of $3 billion in the first compliance period depending on allocation prices. The monies are expected to be appropriated to State agencies by the Legislature and Governor through the annual Budget Act, consistent with the approved plan. Initially, the funds are expected to go to existing agency programs or to back fill the Gen-eral Fund through a transfer of programs that qualify for AB 32 funding.

CLFP has opposed the development of the Investment Plan as premature given the existing legal challenges to CARB authority under AB 32 to hold an auction. (Staff Contact: John Larrea)

(Continued on page 12)


BenchmarkingEcofys, the international consultancy firm hired by CARB to aid in the development of benchmarks for the AB 32 cap-and-trade scheme, has received all the data from food processors pursuant to earlier data requests and has provided its formal report to CARB on its recommen-dations as to industry benchmarks for paste, canning/diced, and dehydration facilities. Ecofys researchers have indicated that their recommendations to CARB will favor establishing separate product-based benchmarks for var-ious food processing industries.

In the next few weeks, CARB is expected to send out ad-ditional requests for facility level data to obtain produc-tion data and available sub-metering data. It’s been re-ported that the CARB requests may seek data going back to 2000. However, CARB has not yet confirmed this.

Once CARB receives the data from facilities, CARB will perform product benchmark calculations using both pro-duction data and facility emissions data, the sub-meter-ing data provided by facilities and Product Energy Inten-sity (PEi) established by Ecofys

Upon finalizing the benchmarks, CARB is expected to hold a group meeting with all food processing facilities to review the process and benchmarks. According to CARB no production numbers or fuel use will be provided at the meeting to insure confidentiality for company facili-ties. The product benchmarks will then be submitted for inclusion in the proposed regulation revisions via the public process.(Staff Contact: John Larrea)

Cap-and-Trade Workshop: Proposed Industry Assistance ChangesCARB held a workshop on May 1, 2013 to address po-tential cap-and-trade adjustments related to universities, Combined Heat and Power ‘‘but for’’ facilities, and hold-ers of legacy contracts within the Cap-and-Trade Regula-tion in response to CARB Resolution 12-33. The poten-tial regulatory changes discussed in the workshop will be brought to the Board for approval in the fall of 2013. CARB estimates that the adjustments, if adopted by the Board, will total 800,000 allowances in all.

University AllowancesFor universities, both public and private, the workshop considered a proposed methodology to allocate allow-ances to California universities in order to recognize early actions to reduce GHG emissions through energy efficiency and Combined Heat and Power (CHP) usage. There are approximately 11 campuses being considered for the free allocations. CARB proposed using a “grand-fathering” approach as employed in the Energy-based benchmark for determining the allocations. The alloca-tion would decline in proportion to the cap. The first al-locations would be 2015 vintage.

CARB didn’t answer questions regarding whether ex-pansion of campus’ facilities would result in additional allowances for growth under the energy-based method-ology saying only that such was being considered. Staff also didn’t indicate whether the 10% “haircut” applied to industries subject to cap-and-trade, would be apply to campus allocations as well.

“But For” Exemption for CHP Staff also presented a proposal to exempt emissions from steam and waste heat generated by facilities that would not have been covered entities under the cap-and-trade scheme ‘but for’ the choice to improve efficiency by in-stalling CHP. The staff attached two qualifying criteria for the exemption:1. the steam emissions alone must not exceed the

threshold, and;2. The emissions attributable to electricity alone do not

exceed the threshold.

The "but for" exemption would cover the only the first compliance period. There is no time limit on the exemp-tion and would apply to any facility that installs or utilizes CHP during the first compliance period. Legacy Contracts CARB also discussed a proposed methodology to pro-vide transition assistance to covered entities that have a compliance obligation cost that cannot be reasonably recovered due to a legacy contract, generally a Power Purchase Agreement (PPA). These contracts in question are generally PPAs with utilities that didn’t anticipate AB 32 costs and thus don’t provide for the pass-through of such costs. The CARB staff urged the contracting parties to renegotiate the contracts, but general comments from independent power producers indicated that the utili-ties were not inclined toward renegotiation. If adopted by the Board, in order to qualify for the allowance assis-tance the contracts had to be in effect before AB 32 was passed. Any PPAs with utilities will be referred to the CA Public Utilities Commission for resolution.(Staff Contact: John Larrea)

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Formerly FMC FoodTech

FlexPackage_7.375x4.6875_CLFP_040313.indd 1 4/3/13 3:39 PM


Nearly 80% of consumers say they would

purchase tomato sauce in cartons—and

manufacturers agree.

Consumer ACCeptAnCesQuAreD

tetra recart. perfectly squared.

* Source: Mambo Sprouts Carton User Study, April 2012

Tetra Pak, , PROTECTS WHAT’S GOOD and “Tetra Recart. Perfectly Squared.” are trademarks belonging to the Tetra Pak Group. www.tetrapakusa.com

Food marketers targeting the here-and-now Baby Boomers and the oncoming Millennial wave of consumer spending are turning to Tetra Recart for different, but equally compelling, reasons.

Boomers are shopping for health to continue their active lifestyles, reports A.T. Kearny. The aging phenomenon requires easy-to-use and easy-to-read products, and a fully printable package provides product information with a “billboard” effect. Millennials, however, look to cartons to provide healthier, fresher tasting foods in a package that is easy to recycle and store, according to Brand Amplitudes’ Millennials Increasingly Judge Food by its Cover.

Food marketing expert Phil Lempert , during a review of Truitt Brothers Tru-Harvest Pacific Northwest Premium Kidney Beans, gives kudos to the ease of use provided by the Tetra Pak carton and then to the wonderful taste and appearance of the product itself. “One of the easiest Tetra Pak cartons I’ve ever opened,” says Lempert, CEO of SupermarketGuru.com.

For several years, soups packaged in cartons have demonstrated market gains and profitability growth. Now, center-aisle staples—tomatoes, beans and even ready-made pasta—are adopting the transformative power of Tetra Recart. The world’s first retortable carton, Tetra Recart accommodates shelf-stable food products with particles of almost any size.

For prepared food manufacturers and retailers seeking proof-of-concept and first-to-market opportunity, soups in cartons grew in an overall declining category. While prepared foods packaged in cans, microwavable bowls and cups are down, the fastest growing segment across all prepared foods—up 16% since 2010—is packaged in cartons.

Today more than 250 food product SKUs use cartons, driven by early adopters of innovation and product positioning centered on a natural, fresh and environmentally friendly image. For these reasons, products traditionally filled in cans, glass jars or pouches, such as vegetables, tomatoes, ready meals, soups and sauces, are now investing more in the bottom-line benefits of cartons too.

“The Tetra Recart format has been so successful for us at shelf that we have converted 9 more SKUs to carton packaging,” says Kevin Tisdale, marketing vice president for Pacific Natural Foods. “Consumers love the convenience of the cartons and consistently prefer the packaging over cans because of fresher taste, better flavor and ease of use.”

Cartons first gained a foothold in broth, growing to a 62% share of the category in 2012. Recloseability of the carton led consumers to increase their usage occasions, which then motivated soup brands to flow into the carton format. Since cartons in the soup category achieved a 16% volume share in 2012.

“While cans aren’t likely to disappear anytime soon, it is clear major change is afoot,” writes Brand Amplitudes’ Martin Predd in Millennials Increasingly Judge Food by its Cover.

Cartons position brands, retailers for growthThe carton package offers new opportunities for brands and retailers to create competitive advantage by improving shelf efficiency and reducing in-store operating costs in the canned food aisle.

“Tetra Recart’s shelf-efficiency provides buyers with an opportunity to introduce new products in finite shelf space, which allows for incremental category growth,” says Mary Therese Williams, marketing and product manager for Tetra Pak.

Adoption of the Tetra Recart package, for example, saves on shelf space by 44%. This allows 39 more facings to be added in four feet of space.*

Tetra Recart allows 39 more facings per four feet of shelf space, which can lead to millions in incremental sales, studies show.

All agree game-changing innovation and first-to-market creates competitive advantage. And center aisle brands are recognizing opportunity to differentiate by leveraging Tetra Recart’s key functionality of recloseability. But ease of conversion always is a consideration when changing packaging formats.

“With five co-manufacturing lines in North America, manufacturers and retailers easily enter and convert to Tetra Recart,” Tetra Pak’s Williams adds. “Our highly experienced technicians help turn concepts into commercial products that are tested, evaluated and modified to perfection.”

Consumers choosing cartons over other packaging formatsMany food producers are buzzing about the response from the Millennial generation, whose purchasing power is building.

Brand Amplitude’s ongoing exploration of Millennials’ packaging preferences revealed consumers age 24–35 perceive cartons as healthier, keeping food tasting fresher, and easy to recycle. Nearly three-fourths of Millennials would choose a leading brand of soup packaged in a carton over a can in a theoretical comparison. Ease of storing unused portions (49%) and eco-friendliness (46%) are the top two reasons for their choice. Forty-three percent said taste (less likely to have a tinny or processed taste) motivated their preference.

“We recognized cans weren’t the future,” says Arnold Casale, CEO for Soupman, Inc. “Our consumers are looking for a more modern alternative that delivers better flavors and superior integrity of ingredients. We have broader distribution and more sales velocity than ever. The future has arrived. And it comes in a box.”

For more about carton benefits, visit www.tetrapakusa.com/perfectlysquared.

Center Aisle Discovers Bottom-Line Benefits of Cartons Proof-of-concept, first-to-market advantage proven in soup category growth

*”Documenting the Value of Tetra Pak’s Aseptic and Recart Containers in the Soup Category,” Willard Bishop, 2011

Nearly 80% of consumers say they would

purchase tomato sauce in cartons—and

manufacturers agree.

Consumer ACCeptAnCesQuAreD

tetra recart. perfectly squared.

* Source: Mambo Sprouts Carton User Study, April 2012

Tetra Pak, , PROTECTS WHAT’S GOOD and “Tetra Recart. Perfectly Squared.” are trademarks belonging to the Tetra Pak Group. www.tetrapakusa.com

Food marketers targeting the here-and-now Baby Boomers and the oncoming Millennial wave of consumer spending are turning to Tetra Recart for different, but equally compelling, reasons.

Boomers are shopping for health to continue their active lifestyles, reports A.T. Kearny. The aging phenomenon requires easy-to-use and easy-to-read products, and a fully printable package provides product information with a “billboard” effect. Millennials, however, look to cartons to provide healthier, fresher tasting foods in a package that is easy to recycle and store, according to Brand Amplitudes’ Millennials Increasingly Judge Food by its Cover.

Food marketing expert Phil Lempert , during a review of Truitt Brothers Tru-Harvest Pacific Northwest Premium Kidney Beans, gives kudos to the ease of use provided by the Tetra Pak carton and then to the wonderful taste and appearance of the product itself. “One of the easiest Tetra Pak cartons I’ve ever opened,” says Lempert, CEO of SupermarketGuru.com.

For several years, soups packaged in cartons have demonstrated market gains and profitability growth. Now, center-aisle staples—tomatoes, beans and even ready-made pasta—are adopting the transformative power of Tetra Recart. The world’s first retortable carton, Tetra Recart accommodates shelf-stable food products with particles of almost any size.

For prepared food manufacturers and retailers seeking proof-of-concept and first-to-market opportunity, soups in cartons grew in an overall declining category. While prepared foods packaged in cans, microwavable bowls and cups are down, the fastest growing segment across all prepared foods—up 16% since 2010—is packaged in cartons.

Today more than 250 food product SKUs use cartons, driven by early adopters of innovation and product positioning centered on a natural, fresh and environmentally friendly image. For these reasons, products traditionally filled in cans, glass jars or pouches, such as vegetables, tomatoes, ready meals, soups and sauces, are now investing more in the bottom-line benefits of cartons too.

“The Tetra Recart format has been so successful for us at shelf that we have converted 9 more SKUs to carton packaging,” says Kevin Tisdale, marketing vice president for Pacific Natural Foods. “Consumers love the convenience of the cartons and consistently prefer the packaging over cans because of fresher taste, better flavor and ease of use.”

Cartons first gained a foothold in broth, growing to a 62% share of the category in 2012. Recloseability of the carton led consumers to increase their usage occasions, which then motivated soup brands to flow into the carton format. Since cartons in the soup category achieved a 16% volume share in 2012.

“While cans aren’t likely to disappear anytime soon, it is clear major change is afoot,” writes Brand Amplitudes’ Martin Predd in Millennials Increasingly Judge Food by its Cover.

Cartons position brands, retailers for growthThe carton package offers new opportunities for brands and retailers to create competitive advantage by improving shelf efficiency and reducing in-store operating costs in the canned food aisle.

“Tetra Recart’s shelf-efficiency provides buyers with an opportunity to introduce new products in finite shelf space, which allows for incremental category growth,” says Mary Therese Williams, marketing and product manager for Tetra Pak.

Adoption of the Tetra Recart package, for example, saves on shelf space by 44%. This allows 39 more facings to be added in four feet of space.*

Tetra Recart allows 39 more facings per four feet of shelf space, which can lead to millions in incremental sales, studies show.

All agree game-changing innovation and first-to-market creates competitive advantage. And center aisle brands are recognizing opportunity to differentiate by leveraging Tetra Recart’s key functionality of recloseability. But ease of conversion always is a consideration when changing packaging formats.

“With five co-manufacturing lines in North America, manufacturers and retailers easily enter and convert to Tetra Recart,” Tetra Pak’s Williams adds. “Our highly experienced technicians help turn concepts into commercial products that are tested, evaluated and modified to perfection.”

Consumers choosing cartons over other packaging formatsMany food producers are buzzing about the response from the Millennial generation, whose purchasing power is building.

Brand Amplitude’s ongoing exploration of Millennials’ packaging preferences revealed consumers age 24–35 perceive cartons as healthier, keeping food tasting fresher, and easy to recycle. Nearly three-fourths of Millennials would choose a leading brand of soup packaged in a carton over a can in a theoretical comparison. Ease of storing unused portions (49%) and eco-friendliness (46%) are the top two reasons for their choice. Forty-three percent said taste (less likely to have a tinny or processed taste) motivated their preference.

“We recognized cans weren’t the future,” says Arnold Casale, CEO for Soupman, Inc. “Our consumers are looking for a more modern alternative that delivers better flavors and superior integrity of ingredients. We have broader distribution and more sales velocity than ever. The future has arrived. And it comes in a box.”

For more about carton benefits, visit www.tetrapakusa.com/perfectlysquared.

Center Aisle Discovers Bottom-Line Benefits of Cartons Proof-of-concept, first-to-market advantage proven in soup category growth

*”Documenting the Value of Tetra Pak’s Aseptic and Recart Containers in the Soup Category,” Willard Bishop, 2011


Food Processing Expo RecapCalifornia league of food ProCessors

Food Processing Expo was held on February 5 & 6, 2013 at the Sacra-mento Convention Center, bringing together over 1,900 industry profes-sionals from across the U.S. and sev-eral countries.

This year’s Expo included the Mem-ber Tasting pavilion, where attend-ees had the opportunity to taste a variety of food products produced by CLFP processor members, Mem-ber/Market Sample Displays, the 5th Annual Vegetable Fruit and Nut Put-ting Contest, educational sessions and industry networking events. Over 200 industry suppliers exhibit-ed cutting-edge equipment, technol-ogy and services.

Tuesday’s Kick-off Breakfast speak-er, Ross Shafer, best-selling author of “Nobody Moved Your Cheese,” spoke to a crowd of over 350 attend-ees. His new book, “Are You Still Rel-evant” and key note topic addressed twelve reasons smart organizations thrive in any economy.

Tuesday afternoon’s NCIFT Lun-cheon speaker, Kimber Stanhope, PhD, RD, UC Davis, provided a look at evidence that suggests consumption of high sugar diets is contributing to the U.S. epidemics of cardiovascular disease, diabetes and metabolic syn-drome.

Wednesday’s General Session Break-fast hosted a panel of speakers in-cluding, Assemblymember Adam Gray, (d-Merced), dominic diMare, DiMare, Van Vleck, & Brown, and dale Stern, downey Brand LLP. the panel discussed the outcome of the 2012 state election and how the new Democrat supermajorities will affect food processors with changes in en-vironmental laws and regulations, tax policy, and labor laws. They also discussed what the major issues

in the 2013-2014 Legislative Ses-sion will be and who the key policy makers will be, and whether or not the regulatory climate for California businesses will improve.

The Expo also hosted several hot topic and educational sessions. Monday’s new pre-expo workshop, Food Processing School, brought over 110 attendees. Tuesday’s hot topic session “Food Labeling Issues” was presented by Angel Garganta, Esq., Arnold & Porter, LLP, Lee Smith, Esq., Weintraub Tobin Chediak Cole-man Grodin Law Corporation, and Ron Fong, President & CEO, Califor-nia Grocers Association. The session was moderated by Mona Shulman, Pacific Coast Producers.

Wednesday’s hot topic session was presented by Chris Shimoda, Califor-nia Trucking Association, Ed Yates, CLFP, and John Runyan, the Coali-tion for Transportation Productivity and provided an overview and up-date on California trucking issues. Andrew Chang, Andrew Chang &

Co., Allan Bedwell, URS, and Tiffany Roberts, Legislative Analyst's Office, California Legislature discussed the impact of AB 32 on the state’s econ-omy and on food processors. All sessions were impressively attended and received positive reviews.

The ever popular Supplier Host Council Reception & Silent Auction raised over $29,000 for the CLFP Scholarship Fund, which supports higher education for over 20 Califor-nia students each year. This year’s winner of the Scholle Trip Raffle was Paul Maxon of the Morning Star Packing Company. Congratulations Paul!

The CLFP Staff and Expo Steering Committee are already planning for next year. We look forward to a new and exciting Food Processing Expo being held February 19 & 20, 2014!

For more information on Food Pro-cessing Expo, contact Alissa Dillon at [email protected] or (916) 640-8150.

Over two days, 1900 industry professionals were on the tradeshow floor.

by Amy AlcornCLFP Marketing Manager


Products on display at the Market Sample Display on Tuesday.

Tuck Caruthers of Mad Will's Food Company was the winner of the Tuesday Give-A-Way to Costa Rica.

Toine Kuijpers congratulates Paul Maxon of The Morning Star Packing Company. He was the winner of the Scholle Packaging raffle during the Supplier Host Council Silent Auction.

Attendees sample products at the Member Tasting Pavilion.

2013 ExPO SPOnSORS

P A C K A G I N G

Food ProcessingSuppliers Association


Courts GraPPle wItH CalIFornIa law requIr-InG eMPloyers to ProvIde eMPloyees wItH "suiTable seaTing"

in recent years, there has been a rise in lawsuits by em-ployees against grocery stores, clothing retailers, banks and other customer-driven businesses, involving an ob-scure provision hidden deep within California’s Industrial Welfare Commission Wage Orders. The provision ad-dresses “suitable seating” at work and provides, in part, that all employees “shall be provided with suitable seats when the nature of the work reasonably permits the use of seats.”

in the late 1980s, the Labor Commissioner concluded this provision was “originally established to cover situations where the work is usually performed in a sitting position with machinery, tools or other equipment” and “was not intended to cover those positions where the duties require employees to be on their feet, such as salesper-sons in the mercantile industry.” Thus, for many years, employees generally did not seek to enforce it vis-à-vis employers in the grocery, retail, banking and other indus-tries typically associated with “standing” jobs.

that was then. Fast-forward to today. Following the California Supreme Court’s decision in Brinker v. Superior Court, the likelihood of employees succeeding in a class action meal and rest period case has been called into question. As a result, the plaintiffs’ bar began strategiz-ing to create new class action opportunities. The Wage Orders’ “suitable seating” provision provided that oppor-tunity.

this all started in 2010, when a California court held in Bright v. 99 Cents Only Stores that employees could prosecute “suitable seating” claims in representative ac-tions using the California Private Attorneys General Act (“PAGA”). Under PAGA, employees may seek civil pen-alties not only for violations they personally suffered but also for violations of other current and former em-ployees. Thereafter, a northern California federal court issued rulings in two separate “suitable seating” cases: Garvey v. Kmart and Green v. Bank of America.

Garvey v. Kmart involved a group of cashiers who alleged Kmart did not provide suitable seating for employees who worked at the cash registers. Following a one-week bench trial, the court concluded Kmart had legitimate grounds for requiring its cashiers to stand based on the need to project a “ready-to-assist attitude to customers

waiting in line.” The ruling was not entirely favorable to employers, however. The Court criticized Kmart’s sug-gestion that it had a “secret” policy of providing seating to anyone who requested it. Further, the Court suggest-ed that alternative seating options such as “lean-stools” (where employees “place most of their weight on a sup-ported seat, while remaining in a more upright, leaning position”) might be required even where an employer has a legitimate reason for not providing traditional seats.

in Green v. Bank of America, the trial court initially dis-missed a class action lawsuit based upon the Labor Com-missioner’s earlier assertion that employers need only give seats to employees who request them. In Green, there was no allegation in the complaint that any em-ployee requested a seat, so the case was dismissed.

However, last month, the Ninth Circuit Court of Appeals reversed the trial court’s ruling. In doing so, the appel-late court explained that the trial court read into the Wage Orders something that was not there – a require-ment that employees must affirmatively request seats. Because there was no such requirement in the language of the “suitable seating” Wage Order provision, it con-cluded, employees are not required to plead or prove a request was made prior to filing a lawsuit. Significantly, the appellate court expressly declined to comment on whether the nature of the work involved in the case rea-sonably permitted seats in the case at issue or whether seating provided was “suitable.” Those issues were re-manded to the trial court to be resolved following devel-opment of the facts.

What does this mean for employers? Only time will tell. These cases are new and the law is still evolving as it works its way through the courts. To reduce potential liability, employers should examine the jobs performed by their employees to determine whether the “nature of the work reasonably permits the use of seats.” If it does, employers should analyze whether seats can be safely provided and whether employees want them. One thing is now more clear, though – employers cannot rely upon employees to request seats in order to avoid liability. As with other employment laws in California, employers have an affirmative duty to conduct this analysis and, if appropriate, provide suitable seating for all employees.

Employment Law UpdateArticles provided by Downey Brand LLP


an emPloyer’s obligaTion To accommodaTe an emPloyee disabled by Pregnancy is noT limiTed by california’s Pregnancy disabiliTy leave law

in Sanchez v. Swissport, Inc., a California appellate court recently found that an employee who exhausted all per-missible leave available under California’s Pregnancy Dis-ability Leave Law (PDLL) stated a cause of action under the California Fair Employment and Housing Act (FEHA) for employment discrimination.

Defendant Swissport, Inc. employed Plaintiff Ana G. Fuentes Sanchez for approximately a year and half when she was diagnosed with a high-risk pregnancy, requiring bedrest. She alleged that Swissport was aware of her due date, October 19, 2009, and that she needed a leave of absence until she gave birth. According to Ms. Sanchez, her employer afforded her just over 19 weeks of leave, consisting of her accrued vacation time in addition to the time allotted by the California Family Rights Act (CFRA) and the PDLL, before abruptly terminating her employ-ment. She claims that at no time did her employer ever contact her to engage in a timely, good faith interactive process in order to identify available accommodations,

such as an extended leave of absence, so that she could remain employed.

Swissport moved to dismiss the case, asserting that it had necessarily satisfied all of its obligations under the FEHA because it had provided Ms. Sanchez with all of the leave mandated by the PDLL and the CFRA for her preg-nancy-related disability. the court disagreed that the PDLL is the exclusive remedy for an employee seeking accommodation of her pregnancy-related disability, con-cluding that the PDLL’s remedies augment, rather than supplant, those set forth elsewhere in the FEHA. Under the FEHA, a woman disabled by pregnancy is entitled to the protections afforded any other disabled employee – a reasonable accommodation that does not impose an undue hardship on her employer. Depending on the circumstances, disability leave may exceed four months. Because an employer’s compliance with the PDLL simply extinguishes any cause of action under the PDLL rather than the FEHA as a whole, employers must take care to engage in an appropriate interactive process to avoid claims of disability discrimination.

For marketing disclaimer, visit bankofamerica.com/disclaimer

Creating fertile ground

for agribusiness growth.

Bank of America Merrill Lynch is committed to helping agribusiness clients capitalize

on new opportunities in California and worldwide. Working with deeply experienced

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Market Executive

1.916.326.3109

[email protected]

(Continued on page 20)


new FMla reGulatIons requIre new Poster and exPand miliTary leaVe enTiTlemenTs

Attention employers, it’s time to replace your old FMLA poster. New FMLA regulations and a new FMLA poster requirement took effect March 8, 2013.

The Department of Labor recently published final regu-lations clarifying several changes to the Family Medical Leave Act (“FMLA” or “the Act”). These new regulations expand military leave entitlements available under the Act and increase the scope of qualifying exigency leave. The new regulations also require employers to post an updated FMLA poster.

new PosterStarting March 8, 2013, covered employers must begin using the new poster prepared by the Department of Labor summarizing the major provisions of the FMLA, which is available on the Department of Labor Website at: https://www.dol.gov/whd/regs/compliance/posters/fmlaen.pdf. The poster must be displayed at all worksites.

military exigency leave and military caregiver leaveNew regulations expand eligibility for qualifying exigency leave to family members of regular Armed Service mem-bers who are deployed to a foreign country. Pursuant to the regulations, a new qualifying exigency leave category for paternal care leave was also established. Under this provision, eligible employees may now take qualifying ex-igency leave to care for a military member’s parent who is incapable of self-care. Such care may include arrang-ing for alternative care, providing care on an immediate need basis, admitting or transferring the parent to a care facility, or attending meetings with staff at a care facility. The new regulations also increase the amount of time an eligible employee may take for qualifying exigency leave for Rest and Recuperation from 5 to 15 days.

In addition, the definition of a covered service member has been expanded to include covered veterans who are undergoing medical treatment, recuperation, or therapy due to a serious injury or illness, rather than just current service members. A covered veteran is an individual who was discharged or released under conditions other than dishonorable at any time during the five-year period pri-or to when the eligible employee seeks or takes FMLA leave to care for the covered veteran. The definition of a serious injury or illness has been expanded to include an injury or illness that existed before the beginning of the service member’s active duty that was aggravated by service in the line of duty in the armed forces. In the case of veterans, a serious injury includes an injury that mani-fested itself before or after the service member became a veteran.

If they have not already, employers should begin using the updated FMLA poster immediately. In addition, em-ployers should evaluate their leave policies and employ-ee handbooks to make sure they are consistent with the new regulations.


by Larry dayNationwide Boiler

Ammonia-Free SCR System Marks new Era for nOx Emissions Control

California’s highly regulated food processing industry continues to boom and still produces nearly half of all U.S. grown fruits, nuts and vegetables despite highly reg-ulated and costly air quality rules and regulations. Over the past decade, a series of stringent regulatory man-dates have set new air emission control goals associated with minimizing overall greenhouse gases and improving operational efficiencies. As a result, the vitality of the food processing industry has relied upon continued prod-uct innovation from heat, steam and power equipment suppliers, representing large boilers, steam generators and process heater equipment.

Emission standards developed for boilers over ten years ago are now considered outdated and ultra low NOx (ULN) burners that were once considered state-of-the-art can no longer meet NOx emission requirements alone. When considering Best Performance Standard requirements for qualifying boilers permitted under the San Joaquin Valley Air Pollution Control District, selective catalytic reduction (SCR) technology has been selected as the most effective solution for not only meeting new emission requirements, but also for achieving higher ef-ficiencies when compared to ULN burners.

A new approach to SCR technology has recently been developed and successfully proven, representing a fun-damental shift in the standard design and operational philosophy. Field tested on a firetube boiler for a ma-jor tomato processor in Los Banos, CA and on two pack-age watertube boilers for a district heating plant in San Francisco, CA, an Ammonia-Free SCR system has been designed and developed that combines the advantages of highly successful SCR technology without the use of anhydrous ammonia, classified as a hazardous material by OSHA.

Standard SCR technology consists of injecting ammonia (NH3) into boiler flue gas and passing it through a catalyst bed where nitrogen oxides (NOx) and NH3 react to form harmless nitrogen and water vapor. This requires storing ammonia in bottles or tanks that need to be replenished based on system demands, requiring costly ammonia storage and/or handling safety program compliance.

The urea-injection based SCR system utilizes the internal temperature of the boiler for optimum decomposition of urea to ammonia for the same conversion of NOx. This technology performs effectively on firetube and water-tube boilers, enabling boiler owners and operators ad-

verse to ammonia to obtain the superior performance of SCR technology without being limited to the poor operat-ing and energy intensive performance of ULN burners. In addition, the Ammonia-Free SCR system has the poten-tial to reduce operating costs and enhance boiler perfor-mance, operation and safety by system-level integration and redesign of both in-furnace and post-combustion NOx control.

NRG Energy Center installed an Ammonia-Free SCR sys-tem for two (2) 55,000 lb/hr (71.4 MMbtu/hr) natural gas fired boilers that were required to comply with a NOx emission requirement of 9 parts per million (ppm). A single ammonia-free SCR solution was supplied, elimi-nating the need to retrofit both boilers with ULN burner technology. Overall, the SCR system easily met NOx emis-sions requirements and successfully reduced NOx emis-sions from 30 ppm to 1 ppm NOx. It also avoided the high excess air, limited turndown, and high fan motor horsepower requirements typical with ULN 9 ppm burn-ers. NRG’s boilers remain to operate dependably without any performance issues or concerns about meeting fu-ture NOx emission limits.

The example illustrates how boiler equipment suppliers are meeting the demands of the industry by providing in-novative, state-of-the-art technology that will shape the future for air emission controls within the food process-ing industry. there is no doubt that air emission regula-tions will continue to evolve and plant owners and opera-tors will look for out-of-the-box thinking technology that will provide years of hassle-free compliance assurance.

Ammonia-Free CataStak™ SCR system on an 800 hp firetube boiler


2012 continued the decade long trend of increasing product recalls in the United States. While incidents involving cantaloupes and ground turkey dominated food safety head-lines in 2011, 2012 saw peanut butter move back into the news. Although slowed by budget constraints, the Food Safety Modernization Act has begun to influence food safety both domestically and globally.

During the fall of 2012, a multistate outbreak of Salmonella Bredeney in-fections was linked to peanut butter processed at Sunland, Inc.’s peanut processing plant in Portales, New Mexico. The original recall initiated by the company on September 24, 2012, included peanut butter and other nut butter products. Over the next few months, the outbreak spread, and the recall expanded to over 200 peanut and nut-based products. Cookies, candies, ice cream, salad kits, energy bars and even pet treats were just some of the products that were affected. the Center for disease Control (CdC) reported that a total of 42 people in 20 states were affected by the out-break.

On November 26, 2012, the U.S. Food and Drug Administration (FDA) suspended the registration for Sun-land’s Portales, NM facility. This was particularly significant in that it marked the first instance the FDA used its authority to close a food handling facility since it was granted that power by the Food Safety Mod-ernization Act (FSMA) in 2011. The updated Federal Food, Drug, and Cosmetic Act provides, in relevant part, that if the FDA determines that food manufactured, processed, packed, received, or held by a facility registered under section 415 has a reasonable probability of causing se-rious adverse health consequences or death to humans or animals, the FDA by order may suspend the regis-tration of a facility (1) that created, caused, or was otherwise responsi-ble for such reasonable probability; or (2) that knew of, or had reason to know of, such reasonable prob-ability, and packed, received, or held such food.

Global sourcing of products and in-gredients continues to be a focus for regulators. A typical U.S. manufac-turing company now relies on more than 35 different contract manufac-turers around the world. during a 5-year period from 2005 – 2010 the CDC linked imported food from 15 countries to over 2,348 illnesses and 39 outbreaks. Fish and spices were the most common foods linked to these outbreaks. Nearly 45% of the imported foods causing outbreaks came from Asia.

The first rules issued by the FDA under the FSMA strengthened the FDA’s ability to prevent potentially unsafe food from entering com-merce. the rule allows the FdA to administratively detain food the

Product Recalls and The Food Safety Modernization Act Ensuring the safety and quality of domestic and imported products

agency believes has been produced under unsanitary or unsafe condi-tions. Previously, the FDA’s ability to detain food products applied only when the agency had credible evi-dence that a food product presented was contaminated or mislabeled in a way that presented a threat of seri-ous adverse health consequences or death to humans or animals. As a re-sult of this rule, the FdA is now able to detain food products that it has reason to believe are adulterated or misbranded for up to 30 days, if needed, to ensure they are kept out of the marketplace.

The second rule requires anyone im-porting food into the United States, including food for animals, to inform the FdA if any country has refused entry of the same product. This new requirement will provide the agency with more information about foods that are being imported, which im-proves the FDA’s ability to target foods that may pose a significant risk to public health. This new reporting requirement will be administered through the FDA’s prior notice sys-tem for incoming shipments of im-ported food established under the Public Health Security and Bioterror-ism Preparedness and Response Act of 2002.

More recently, the FDA unveiled a new strategy to meet the challenges posed by rapidly rising imports of FDA-regulated products and a com-plex global supply chain in a report called the "Pathway to Global Prod-uct Safety and Quality."

This report calls for the agency to transform the way it conducts busi-ness and to act globally in order to promote and protect the health of U.S. consumers. Highlights of the

by Bernie StevesAon Risk Solutions


Planning or Prepared?Commodity price risk. Product recall. Regulatory/Legislative changes. Damage to reputation/brand. Economic slowdown. These are just some of the new world of risks facing the food system, agribusiness and beverage industry.

Aon’s 2013 Food Systems, Agribusiness and Beverage Industry Report identifies emerging risk issues and the latest strategies to manage risks, overcome challenges, and capture opportunities. To download, please visit aon.com/fab

Aon Risk Insurance Services West, Inc.Agribusiness ProfessionalsCA License # 0363334

5260 N. Palm #400 Fresno, CA 93704 +1.800.331.3495

8880 Cal Center Dr., #130 Sacramento, CA 95826 +1.800.777.1206

1418 S. Main Street, Suite 104 Salinas, CA 93908 +1.800.688.7568

Aon Risk Solutions

Risk. Reinsurance. Human Resources.

report include the following four key elements needed to make the change:

1. The FDA will partner with its counterparts worldwide to cre-ate global coalitions of regula-tors focused on ensuring and improving global product safety and quality.

2. The coalitions of regulators will develop international data information systems and net-works and increase the regular and proactive sharing of data and regulatory resources across world markets.

3. In addition to its information gathering and analysis capa-bilities, the FDA will have an in-creased focus on risk analytics and information technology.

4. The FDA will increasingly lever-age the efforts of public and private third parties and indus-try and allocate FdA resources based on risk.

Growing demand, constrained sup-ply, and increased regulatory and social scrutiny will determine what resources are used, how they are used, and the cost. Manufacturers will adopt new manufacturing pro-cesses and emerging technologies in response. Governments world-wide will increasingly be called upon to mitigate the sometimes negative impacts of globalization on their citi-zens, making the operating environ-ment for companies more complex.

Bernie Steves is the Managing Direc-tor of Aon Risk Solutions Crisis Man-agement Practice based in Chicago, IL. Bernie is recognized as one of the country’s leading product recall, contamination, and food borne ill-ness insurance and risk manage-ment specialists.

Contact InformationAon Risk Solutions/Crisis Management

Bernie StevesManaging directorCrisis Managementt +1 312 381 [email protected]


Welcome new MembersNOVEMBER 2012 - APRIL 2013

new ProCessor MeMBers

HorIzon nut CoMPany26487 N. Highway 99tulare, CA 93274Phone: (559)685-3663Fax: (559)685-2486Website: www.horizonnut.comBoard Member: Jeff Jankovic Email: [email protected] Alternate Board Members: Hien tran and Martin GuzmanCommodities packed in California:Roasted and/or Salted Pistachios & Almonds.

wHIte oaK Frozen Foods2525 Cooper Ave.Merced, CA 95348Phone: (209) 725-9492Website: www.whiteoak frozenfoods.comBoard Member: Jim McKendryEmail: [email protected] Board Member: Brian diCianoCommodities packed in California: Reduced moisture IQF No Heat Jalapeno, Anaheim Green Chile, Bell Peppers, (Red, Green, Yellow), Onion (Yellow, Red), Tomato, Broccoli, Celery, Mushroom. Product is available Conventional and Organic. Roasting and Blending are part of our capabilities.

american indusTrial equIPMent4749 Bennett Dr., Ste. G Livermore, CA 94551Phone: (925) 454-3450Fax: (925) 454-3454Email: [email protected]: www.aiequip.com Contact: Mike BrancoAmerican Industrial Equipment represents many industry leading pump manufacturers tailored to food processing, industrial and wastewater applications. We offer a broad variety of end suction centrifugal, lined slurry, self priming, electric & hydraulic submersible pumps well suited to the tough applications encountered in the food processing industry. Whether it is with new equipment applications or pump repair service, we offer a trained technical sales force anxious to support your facilities pumping demands.

ananTa usa1055 South 19th Avenue Lemoore, CA 93245Phone: (559) 924-4785Fax: (559) 924-0933Email: jose.fresneda@ anantausa.comWebsite: www.anantausa.comContact: Jose Martinez-Fresnedadesign, manufacturing and implementation of industrial processing. technical consultancy, engineering, development, introduction and coordination of project services for industries.

new aFFIlIate MeMBers

aggreko llc160 W. industrial WayBenicia, CA 94510Phone: (916) 871-2133Email: [email protected]: www.aggreko.comContact: Ray DebenedettoWe provide temporary utility solutions, power, climate control, process temperature control, and oil free compressed air.

agri-PlasTics mfg7793 Young St. Grassie, ON L0R 1M0CanadaPhone: (905) 945-3116Fax: (905) 945-5359Email: [email protected]: www.agri-plastics.netContact: darren VanBuurenAgri-Plastics is a manufacturer of single wall and insulated double wall reusable material handling containers specially designed for the food processing industry. They range in capacity from 23 to 57 cubic feet and can handle very heavy loads. they are designed for easy cleaning and are produced from food grade materials.


anTea grouP11050 White Rock Road, Suite 110Rancho Cordova, CA 95670Phone: (916) 503-1275Fax: (916) 638-8385Email: jan.wagoner@ anteagroup.comWebsite: www.anteagroup.comContact: Jan Wagoner Antea Group is an international engineering and environmental consulting firm specializing in full-service solutions in the fields of environment, infrastructure, urban planning and water. By combining strategic thinking and multidisciplinary perspectives with technical expertise and pragmatic action, we do more than effectively solve client challenges; we deliver sustainable results.

aPPlied adhesiVes13152 E. Imperial Highway Santa Fe Springs, CA 90670Phone: (888) 700-5527Fax: (562) 926-7392Email: [email protected]: www.applied-adhesives.comContact: Richard SturmaAPPLIED Adhesives specializes in adhesive technologies for the packaging, paper converting, graphic arts, bottle labeling, product assembly, woodworking industries, and supports the markets those industries serve. Our customer focus is why we are a nationwide leader in supplying high-performance industrial adhesives and insuring lowest cost-in-use, product availability, and on-time delivery.

BatCHMaster soFtware23191 La Cadena Drive, Suite 101 Laguna Hills, CA 92653Phone: (949) 583-1646Fax: (949) 271-4620Email: [email protected]: www.batchmaster.comContact: John HoulthamCalifornia based BatchMaster Software has a long history of serving the needs of food manufacturers. BatchMaster incorporated proven best practices supporting planning and control of all business process and regulatory compliance requirements to full GSI standards. BatchMaster is designed for ease of use-it works and thinks the way you do.

CoMMunIty Power corPoraTion928 Willow St.Alameda, CA 94501Phone: (510) 387-4763Email: [email protected]: www.gocpc.comContact: Steven JohnsonCommunity Power Company provide waste-to-energy systems based upon advanced gasification technology.

CooPer & MCClosKey InC.9521 Laurentian Dr. San diego, CA 92129Phone: (858) 484-3028Email: [email protected]: www.cmiprorisk.comContact: Bo CourtneyCooper & McCloskey is an independent, California based insurance brokerage firm that specializes in Product Recall and Contamination Insurance for agricultural, food and beverage clients throughout the Western States. CMI doesn’t compete with an insured’s current insurance broker. Instead, we partner with that broker to provide the broadest possible access to insurance companies that provided needed insurance coverages such as Product Recall.

CPs soutHwest InC.1610 E. Miraloma Ave. Placentia, CA 92870Phone: (714) 985-4277Fax: (714) 985-9009Email: amelia.strukelj@ petracps.comWebsite: www.cpssouthwest.comContact: Amelia BoosalisA concrete coatings/epoxy flooring company that specializes in food processing plants.


Food saFety net servICes (Fsns)199 W. Rhapsody San Antonio, CA 78216Phone: (210) 413-6031Fax: (210) 525-1702Email: [email protected]: www.fsns.comContact: Catherine MurphyFood Safety Net Services (FSNS) is a nationwide network of ISO 17025 accredited laboratories that perform a wide range of microbiological and chemical testing. Additional services include GFSI approved Auditing (BRC, SQF) as well as a full scope of consultation services that include method validation, shelf-life testing, and antimicrobial and process validation. California locations include Fresno and Los Angeles.

gea Process engineering1600 O'Keefe Road Hudson, Wi 54016Phone: (715) 386-9371Fax: (715) 386-9376Email: [email protected]: www. niroinc.comContact: Bruce BlanchardGEA Process Engineering inc. is a full-service company offering systems and solutions for liquid and powder processing and packaging for the dairy, and food industries. The company is known for innovative processing systems for drying, evaporation, distillation, filtration, liquid processing, aseptic filling, bottling, powder handling and packaging, and fermentation.

gPm corPoraTionPO Box 120Ripon, CA 95366 Phone: (209) 599-6026Fax: (209) 599-6098Email: [email protected]: www.gpm2.comContact: doug FisherEngineered industrial pumping system. Specializing in food processing sanitary and slurry applications. Stationary and portable pumping units, for fixed or variable speed. Complete rebuild capabilities and failure analysis available. Peerless pump stocking distributor.

Harvest Blade and suPPly, InC.8871 Muraoka DriveGilroy, CA 95020Phone: (408) 836-5628Fax: (888) 676-3670Email: [email protected]:www.harvestblade.comContact: Margo donahueHBS is a services company providing processors up to 85% saving off of their blade expenses by extending the life of their blades through our re-sharping solutions. We market re-furbished blades and can source new blades.

HelIoPower, InC.580 douglas Ct. incline Village, NV 89451Phone: (775) 830-0448Fax: (775) 548-9819Email: [email protected]: www.heliopower.com/ foodenergy.comContact: Tom MillhoffHelioPower is an integrated energy services company. We reduce the energy cost of producing, transporting and storing food products. HelioPower serves processors by developing, financing and implementing tailored energy solutions including biomass, solar PV, solar thermal, co-generation, CHP, fuel cells, lighting, energy analytics, metering & monitoring, policy guidance and advocacy, and business process consulting. We create high-return projects and structure financing to deliver immediate and sustainable positive cash flow.

InG. a rossI 731 Colina Vista Ventura, CA 93003Phone: 052-127-1320Fax: 052-177-4331Email: [email protected]: Richard Orzalliin 1951 ing. Angelo Rossi laid the foundation for what would eventually become ing. Rossi. ing. Rossi is well known globally for their design, engineering and the installation of state of the art food processing equipment. Ing. Rossi’s global reach in the food industry makes them an excellent choice when considering building a Greenfield project, an expansion of current capacity or an upgrade for improvement in yields, energy efficiency, quality, etc.

IntraloX, llC301 Plantation Road New Orleans, LA 70123Phone: (504) 570-2502Fax: (504) 734-0063Email: [email protected]: www.intralox.comContact: Joao Leiteintralox is a global manufacturer specializing in conveying technologies that solve conveyance problems, simplify processes, and save money for customers. The combination of our service infrastructure, industry expertise, innovative technology, and performance guarantees allows our customers to achieve extraordinary results. We are committed to long-term, win-win partnerships and actively practice the principles outlined in our business philosophy.


la cosTa energy efficiency doors InC.7040 Avenida Encinas, Suite 104-294 Carlsbad, CA 92011Phone: (949) 350-5348Email: [email protected]: www.lacostadoors.comContact: Howard CaganLa Costa Energy Efficiency Doors Inc. is located in Carlsbad (North County San diego). We cater to a large number of industries to help save energy, and help with productivity. We have relationships with local utilities, manufacturers, vendors, and third party affiliates. Expertise: National level working with local utility companies with incentives and rebates with temperature control conditions. Please ask about our national maintenance program for strip curtain doors!!

MaGnatIon water systeMs660 4th StreetOakland, CA 94607Phone: (510) 879-7000Fax: (510) 879-7801Email: [email protected]: www.magnationwater.comContact: Kyla BurkeManufacturers of non-chemical water treatment systems to improve water productivity; eliminating scale build-up, iron bacteria, reducing chemical use, improving on water and energy use efficiency.

mark iii consTrucTion5101 Florin Perkins Rd. Sacramento, CA 95826Phone: (916) 381-8080Fax: (916) 386-0363Email: [email protected]: www.mark-three.comContact: Mike O'BrienMark III Construction, Inc. is a design/build mechanical, electrical, and underground utility contractor. For over 35 years Mark III has been doing business in the North California and Central Valley, specializing in industrial and food grade facilities. Services include utility install and upgrades, equipment connections, and system engineering.

o'dell enGIneerInG1165 Scenic Drive, Suite B Modesto, CA 95350Phone: (209) 571-1765Fax: (209) 571-2466Email: [email protected]: www.odellengineering.comContact: William PaulO'Dell Engineering specializes in state of the art surveying and data collection services in support of Building Information Modeling (BiM), 3 d Modeling, As-Built drawings, renderings and fabrication. Uses include pre-design data collection, design analysis, true as- built construction documentation and presentation.

PreCIsIon InsulatIon, InC.3491-G Orange Grove Ave. North Highlands, CA 95660Phone: (916) 486-8742Fax: (916) 486-8746Email: precision.insulation@ yahoo.comWebsite: www.precisioninsulation.netContact: Vivian SherrillWe are a mechanical insulation contractor, specializing in fabrication and installation of insulation systems for commercial, industrial and process systems.

self insured soluTions430 N. Vineyard Ave. # 102Ontario, CA 91764Phone: (800) 592-0047Fax: (800) 592-2541Email: parley.call@ selfinsuredsolutions.comWebsite: www.selfinsured solutions.comContact: Parley CallSelf Insured Solutions created and successfully manages California Agricultural Products, a self insured workers' comp group. The California Agricultural Products Self insured Group (SIG) is an elite collective of safety-driven food processing employers who've pooled their resources to successfully self insure. Self insurance is simple: members of the group make contributions, and the workers' comp self insured group then pays the claims and expenses. Ask us how you can join our successful SiG today.

seParators, InC.PO Box 630tulare, CA 93274Phone: (559) 329-9403Fax: (559) 366-7326Email: [email protected]: www.separatorsinc.comContact: Jon MelloSeparators, Inc. is North America’s leading independent centrifuge service provider specializing in the remanufacturing of Alfa Laval, Tetra Pak and Westfalia centrifuge equipment. The company offers a full complement of startup, maintenance, repair and emergency services and stocks over 10,000 parts with 24/7 availability. Industries served include: dairy, beverage, rendering, edible oils, pharmaceutical, biofuels and industrial fluids.

sIerra PaCIFIC wareHouse grouP4300 Finch RoadModesto, CA 95357Phone: (209) 572-2882Fax: (209) 527-0221Email: [email protected]: www.spwg.comContact: Chris MurphySierra Pacific is centrally located, food grade facilities serving the food service, retail and industrial food companies. Specialty handling for fruits, vegetable, ingredients, and raw materials, rail served with our own tracking service for local, regional and port service.


San Ramon, CA 94583 Tel 925.208.4250 www.cti-ct.comFax 925.208.4251

14 Beta Court

Teamcalifornia8789 Auburn Folsom Road #108Granite Bay, CA 95746Phone: (916) 791-9900Email: [email protected]: www.teamca.orgContact: Mary ingersollteamCalifornia assists the California food processing industry with expansion, financing, export opportunities and incentives. TeamCalifornia is a non-profit operating to market the resources and benefits for the industry in California. We specialize in new market development throughout California. We operate throughout the state with our state, regional, local and exhibit internationally to assist you.

wear-ever ManuFaCturInG2283 Camel Rd. Benicia, CA 94510Phone: (707) 745-9199Fax: (707) 745-9166Email: [email protected]: John Lindholm

zeP sales & servICeCorona, CA 92882Phone: (360) 239-2561Fax: (866) 393-7329Email: [email protected]: www.zep.comContact: Scott JimenezSanitation doesn’t have to be costly or complicated. The Zep Food Division separates itself from other companies through our comprehensive approach to product design and on-site service that includes highly trained representatives, technical experts, and microbiological support. We go beneath the surface to offer you complete food safety/sanitation solutions.

CLFP Supplier Host Council Member

IPM ServicesFor over half a century, Crane has been among the leaders of science-based pest control, championing the methods of holistic and cooperative pest management to ensure a safe and effective program for our clients and their employees and customers.Examples of services Crane provides its food-service partners include protection against:• Rats • Mice • Cockroaches • Ants • Spiders • Pigeons • Gophers • Flying insects • Stored product pests

Over 80 Years in Northern California and Western NevadaCrane Pest Control was founded in San Francisco in 1930 and has grown to be a highly respected and nationally recognized regional company serving Northern California and Western Nevada. Three San Francisco family generations have made Crane what it is today, and family members are still actively involved in the company.

An NPMA Green-Pro Certified company, Crane is a member of multiple civic and industry organizations, including the prestigious EPA Pesticide Environmental Stewardship Program, along with the following:

• California League of Food Processors • Better Business Bureau• American Institute of Baking • Almond Hullers and Processors Association• Western Agricultural Processors Association • American Culinary Federation• California Restaurant Association • Golden Gate Restaurant Association• Chefs Association of the Pacific Coast • California Environmental Health Association• Pest Control Operators of California • National Pest Management Association

Regulatory Compliance/Organic Programs• Environmentally sensitive pest management programs for regulated and

inspected facilities (AIB, Silliker, FDA, UDA, etc.)

• Superlative Compliance File System and optional electronic (bar code) monitoring system.

• Partners with Certified Organic clients regulated by USDA National Organic Program (NOP).

CraneFP.indd 1 2/15/12 12:21:21 PM

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