Quality Assurance. Stephen Cater, Ph. D Director, Quality Assurance. Trade Symposium May 27, 2016

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2 Quality Assurance Stephen Cater, Ph. D Director, Quality Assurance Trade Symposium May 27, 2016

3 QA Requirements Sensory Agenda Labelling Laboratory Testing Organic Update Packaging

4 Quality Assurance Requirements for Beverage Alcohol in Ontario

5 Why We Test LCBO: importer of record is responsible for the quality and safety of the products it sells FDA & Regulations of Canada

6 Legislation Food & Drugs Act & Reg s Consumer Packaging and Labelling Act & Reg s Ontario Liquor License Act & Liquor Control Act

7 Corporate Social Responsibility

8 Role of LCBO QA Ensure products offered for sale are: Of Sound Quality Authentic and Safe to Consume Compliant with Applicable Regulations

9 LCBO QA Quality Management System

10 LCBO CoAs

11 LCBO CoAs Valid for one year from issue date Cost is charged to supplier Accepted internationally Can be used to export Canadian products into other countries

12 Industry Advisor/ Affiliations LCBO QA monitors and works with many regulators and industry groups to be aware of emerging issues Helps determine chemicals that require testing and maximum allowable limits

13 Regulatory Partners Police Services Royal Canadian Mounted Police Canadian Border Services Agency Alcohol and Gaming Commission of Ontario

14 Sensory Evaluation

15 Sensory Method Score Final Score: 14.4 (20-point scale) Characteristics & Attributes Appearance & Colour Excellent 5 Very Good Grading Categories Good Satisfactory Unsatisfact. Comments Aroma & Bouquet Correctness Intensity Quality Taste Correctness Intensity Finish Quality Harmony 10

16 Sensory Results 20.0 Score Acceptable Sensory Quality Unacceptable Sensory Quality Score & Reasons for Rejection Score Method Output

17 Laboratory Confirmation Not a confirmation of sensory findings May determine presence of a fault but not sensory acceptability Sensory faults are usually the result of more than one chemical compound The combination of compound, intensity and ratio makes the fault Same compounds, same intensities and ratios may be sensorially acceptable in one wine but not in another

18 Sensory Evaluation Most issues screened at NISS stage Existing productsoccasional quality issues such as sediment, sulphur

19 Labelling

20 Label Review Mandatory Federal Requirements Bilingual- English/French Common name (e.g. wine/vin) Net quantity (e.g. 750 ml) Alcohol declaration (e.g. 13% alc./vol.) Country of origin (wines and brandies) Dealer name and address (Eng or Fr) Ingredient list (non-standardized) Allergens and Claims

21 Steve s 2013 Merlot Wine/vin 750 ml 13.5% alc./vol. Product of Canada/Produit du Canada contains sulphites/contient des sulfites Steve s Winery, Toronto, ON

22 Labelling Process NISS: electronic Shipments: reviewed at warehouse and on lab bottle Specialty Services: reviewed on lab bottle

23 Labelling Failures NISS: Supplier can correct prior to shipment Shipment: QA will resticker and charge back the supplier

24 Labelling Issues Bilingual Sulphite Alcohol deviation Organic Net qty Boxes

25 Laboratory Testing

26 What do we test? All products offered for sale/imported by LCBO require testing. LCBO: NISS, GP, Vintages Specialty Services Products of World- boutique, e-com Grocery E-Commerce

27 Alcohol Testing Alcohol level is tested on all products Actual alcohol must be within required tolerance Product Tolerance Spirit ± 0.3% Beer ± 0.5% Fortified Wine ± 0.5% Wine ± 1%

28 Contaminants Testing Heavy metals- arsenic, lead, cadmium, cobalt, copper Pesticide residues Methanol Ethyl carbamate (EC) Illegal additives, e.g. isopropanol

29 Preservatives & Additives Sulphites- free and total SO 2 Sorbic acid Synthetic dyes

30 Wine Properties Testing Volatile Acidity Total Reducing Sugars Total Acidity Sweetness Descriptor

31 Caffeine Caffeine in beverage alcohol gives consumers false sense of physical and mental competence and decreased awareness of impairment LCBO Limit: 30mg/serving Several products have been reformulated to meet LCBO limits

32 Lab Failures % Lab Rejected

33 Breakdown of Rejected Tests Tamper, 1.9% Sediment, 2.3% Bar Code, 2.6% Other, 3.0% Organic, 8.8% Label, 29.6% Allergen, 23.4% Chemical, 12.4% Alc Dev, 16.0%

34 Failed Products New listings that fail chemical issuenot ordered New products that fail chemical issue- not sold Chemical failures of existing products may: Recall of the product Return to vendor Destroy

35 Chemical Issues with Products Ethyl Carbamate (fortified wines, bourbon) Heavy metals (Copper, Arsenic, Lead) Sulphites Volatile acidity Synthetic dyes

36 Organic Update

37 Organic Must meet Canadian Organic Standard for 2009 and later CFIA accepted equivalents Must indicate organic along with certifying agency

38 Steve s 2013 Merlot Wine/vin 750 ml 13.5% alc./vol. Product of Canada/Produit du Canada contains sulphites/contient des sulfites Steve s Winery, Toronto, ON Certified Organic/Biologique by Len s Organics.

39 Organic EU Organic Wine Standardaccepted by CFIA in April, 2016

40 Packaging Requirements

41 Packaging Automated warehouses Case weight max 18.9 kg Carton Requirements Material Dimensions Burst strength or ECT SCCs Floor loaded, no slip sheets or pallets Pallets, 48 x 40, high density wood

42 Pilot Program Imported specialty services loads Some loads from Italy being piloted as palletized loads for non-durham warehouses

43 Pallets LCBO pallet specs issued Block and stringer pallets PECO now available as additional pallet source, along with CHEP

44 Issues with Products? Packaging Carton specs (vertically challenged) Wooden boxes wrapped in plastic Case weight (18.9 kg max) Lightweight glass (96% compliance rate) Pallets (continental North America) Anti-skid (continental North America)

45 Shrink Wrapped Trays Concern with compliance on many SKUs Letter to all agents issued Auto-debiting of warehoused inventory found leaking, e.g. cans

46 Vintages Release Carton Compliance 15% Compliant 85% Non-compliant

47 Vintages Release Cartons % Non-compliant Reasons Carton SCC Markings Partitions

48 LCBO Guidelines In Product Packaging Standards and Guidelines for Chemical Analysis Based on Food and Drug Regulations and LCBO requirements Posted on TRO: m/tro/packaging- Quality/ProductPackagingStandards.s html

49 Questions?

50 Thank you