Food Management

Supplier Management

Food Supplier Selection Standards

The food suppliers selected by Mercuries F&B Co., Ltd. are legally registered companies (agents/importers) or factories, which is a basic condition. Also, this company adopts system-certified food ingredients or suppliers with priority (e.g., certification of CAS (Certified Agricultural Standard), TAP (Traceability/Good Agricultural Product), TQF (Taiwan Quality Food) verification, FSSC/ISO 22000 Food Safety Management System, and HACCP (Hazard Analysis Critical Control Point)) to control the food safety together.

In 2023, the central kitchen of Mercuries F&B Co., Ltd. cooperated with 105 suppliers, including 101 suppliers in Taiwan which obtained food business registration numbers and 4 foreign suppliers which obtained HACCP certification. There were 67suppliers with the certification of at least one system in Taiwan (accounting for 66 of suppliers in Taiwan), and 70 suppliers which purchased products complying with internationally recognized product liability standards (accounting for 67% of overall procurement). In addition, suppliers of consumables with non-food grade including 21 food ingredient suppliers and 1 packing adhesive tape supplier didn’t obtain system certification yet (accounting for 36% of overall procurement). Most of them were intermediaries or distributors. In order to reduce cost and inventories, the company chose to directly purchase from intermediaries. Currently, these suppliers have been actively included in the food safety system.

Food Supplier Evaluation

Suppliers who are registered as qualified with continuous transactions will be evaluated quarterly on three aspects: Product quality (weight as 50%), delivery time (weight as 30%), and cooperation (weight as 20%). The evaluation score is divided into four grades as shown in the figure below.

In 2023, Mercuries F&B Co., Ltd. evaluated a total of 105 food suppliers. According to the evaluation results, there were 101 grade A excellent suppliers (accounting for 96%), 4 grade B eligible suppliers (accounting for 4%) and no suppliers of grade C and below. In 2023, the company paid on-site visits to 9 food ingredient suppliers, which was twice as many as the previous year.

On-the-Spot Audit of New Food Suppliers

Before cooperation with a newly developed supplier, or transaction of a new raw material, the corresponding grade will be evaluated according to all the certifications of the supplier as well as product inspection reports, e.g., acquisition of Good Hygiene Practices (GHP) and compliance with relevant domestic regulations and rules, as well as other relevant goals. Also, on-the-spot inspection of the manufacturer’s factory will be conducted. The evaluation items are shown in the table below. In 2023, the company paid on-site visits to 4 food ingredient suppliers.

Ratio from Local Procurement

In response to the United Nation SDG “Responsible Consumption and Production” and in order to ensure sustainable consumption and production modes, Mercuries F&B Co., Ltd. manages to assure supply, support and stabilize local economy, and maintenance community relations with supporting the local suppliers (i.e., local suppliers in Taiwan) as a strategy.

Mercuries F&B Co., Ltd. purchases food ingredients from local suppliers in Taiwan (accounting for 95% of the total procurement budget) in addition to food ingredients including beef, cheese, mushrooms, canned tuna, and fixed frying oil which are imported, in order to promote local economy and employment and develop a benign supply chain.

Food Safety and Quality Management 

Mercuries F&B Co., Ltd. takes “Food Safety” as the highest principle, deems “Quality Foremost, Safety and Health, and Customer Satisfaction” as the tenet, and adopts the strengthening of source management of raw materials and the reinforcement of process health control as the main strategy.

Food Safety Committee

Mercuries F&B Co., Ltd. established “Food Safety Committee” in 2012. Led by the chairman, the manager of the central kitchen serves as the convener, and food technologists as well as personnel from relevant units in charge of management, production, and quality management serve as members to inspect and integrate the food safety and quality management, and hold internal meetings periodically every month. In addition to the routine inspection of factory operation, this committee further reviews matters related to food safety and quality it is responsible for.

The Food Safety Committee convenes a management review meeting every year (the most recent meeting was held on February 21, 2023). This meeting focused on the analysis of results of internal and external auditing activities, changes in laws, regulations, and rules, continual improvement and updating of FSSC/ISO 22000, and other relevant agendas, and reviewed and made resolutions on matters related to the food safety and quality management of Mercuries F&B Co., Ltd.

Food Safety Management System

Dayuan Factory of the central kitchen of Mercuries F&B Co., Ltd. completed and acquired the certification of FSSC/ISO 22000:2018 and HACCP in July 2019, completed follow-up inspection in 2022, and smoothly closed renewal review in June 2023. In addition, the flour factory of Dayuan Factory of the central kitchen passed TQF renewal review and obtained a verification certificate in July 2022 and smoothly closed renewal review in July 2023.. The company will continue to review the effectiveness and operation status of the food safety management system to assure the effective operation of food safety management.

Food Raw Material Management Flow

Mercuries F&B Co., Ltd. implements source management of food raw materials based on “Table of Incoming Inspection of Raw Materials” to ensure that data regarding the raw materials of food ingredients, materials, and food additives used in the catering stores comply with the standards of relevant regulations of the government on food safety and health. Also, this company requires the implementation of relevant work upon inward delivery of the raw materials, including sampling, inspection, recording, and labeling.

The traditional supply chain is based on the mutual trust with the suppliers. However, the reasons for the occurrence of multiple food safety events came from the supply chain. Therefore, this company reviews the quality of its supply chain again, establishes anti-counterfeiting and adulteration identification process, and cooperates with relevant internal departments to ensure the safe and stable supply of raw materials.

Food Safety Monitoring Mechanism

The food safety monitoring mechanism is designed to execute risk evaluation and hazard control in accordance with regulations related to food safety. Mercuries F&B Co., Ltd. implements continual monitoring in the important control processes including sources of raw materials, manufacturing, storage, and sales every year in accordance with HACCP and ISO/FSSC 22000 Food Safety System, to ensure the health management of employees, mechanical equipment, and working environment. Furthermore, it has established inspection plans for raw materials and finished products. These plans have been assured by third-party verification units every year.

Mercuries & Associates Holding leads its subsidiaries to take management responsibilities intensively and duly from source management to manufacturing and processing, with the objective to provide safe and delicious food, and enable consumers to “eat securely”.

Raw Material Monitoring Methods

｜Independent Testing

Rapid screening of “animal drug residues” is conducted for different parts of various kinds of raw meat in the Dayuan Factory of the central kitchen of Mercuries F&B Co., Ltd. In 2023, 638 samples were selected from the raw materials of 21 product items. The total number of samples increased by 21.1% compared with that in the previous year with yield of 100%.

｜Independent Health Monitoring

Dayuan Factory of the central kitchen of Mercuries F&B Co., Ltd. conducts independent sanitation inspection of five categories for independent sanitation inspection every month. In 2023, a total of 213 sampling points (product items) were independently inspected with 2,278 sample-times in total and yield of 100%. Due to the increase of the finished product items, the total number of product items sampled increased by 4% .

｜Third-party Impartial Unit Testing

In 2023, Dayuan Factory of the central kitchen of Mercuries F&B Co., Ltd. conducted third-party impartial unit testing of 28 raw material items (accounting for 21% of total number of raw material items), 95 types of finished products (accounting for 95% of the total number of finished product items), and water quality of water dispenser/water column for 4 times respectively in accordance with relevant provisions of the monitoring plans. Also, it adjusts the number of samples according to the number of new products or abnormal conditions taking place every year. In 2023, 148 samples were selected in total. The inspection results were 100% qualified.

In addition, Mercuries F&B Co., Ltd. completed the follow-up inspection of five major products with “Clean Label” in the braising line of the central kitchen (i.e., braised beef soup, stewed beef soup with vegetable and fruit essence, Nanyang Laksa chicken soup, black pepper pork fillet, and curry chicken). The validity period of verification expires on December 31, 2024.

｜Strengthening of Independent Testing Capacity

Independent test items include the analysis of chemical and physical properties as well as microorganisms. The testers of the quality management section of Mercuries F&B Co., Ltd. participated in microorganism testability test of “SuperLab Proficiency Testing” recognized by TAF and complying with ISO/IEC 17043. Total bacterial count (AOAC 990.12), Escherichia coli group (AOAC 991.14) and Escherichia coli (AOAC 991.14) all passed the test. The testing capability of testers are tested and learned about through the regular participation inn the proficiency testing annually organized by laboratories, to assure that no safety risk exists in the quality of the food ingredients and finished products.

To strengthen the independent testing capacity of the quality management section, Mercuries F&B Co., Ltd. acquired ISO/IEC 17025 Laboratory quality management system certification on December 23, 2020, as well as implemented quality management procedures, bettered technical capacity, and execution efficiency of software documents according to the system specifications, replaced old equipment with new ones, and made other relevant improvements. On December 2023, it completed annual evaluation work and assured the compliance of certification system, personnel’s capabilities, and testing and measuring instruments. In the same year, Mercuries F&B Co., Ltd. replaced laboratory adjustable micropipettes, electric extractors, far infrared thermometers, saccharimeters, electronic scales, as well as other relevant equipment with new ones to assure the quality and compliance of the testing and measuring instruments and equipment.

2023, the expenses generated by the laboratory of Mercuries F&B Co., Ltd. ^{Note 1} accounted for 0.15% of the net amount of annual food operating revenue. Due to the influence of the epidemic, the ratio of laboratory expenses in the overall operating revenue was basically same as that in the previous year.

Food Safety Traceability and Tracking

In order to realize the effective traceability of products manufactured in each stage from purchasing of raw materials and production to delivery, Mercuries F&B Co., Ltd. utilizes its internal ERP system to record the basic data of raw materials, products, suppliers, etc., and realize the functions of query of goods purchasing and sales, traceability management, ordering and acceptance, production history registration, and uploading to public cloud. Relying on systematic management, the company strives to reduce manpower and paper work, and strengthen the raw material traceability mechanism that targets at food suppliers.

In 2023, the raw materials used in accordance with the administrative provisions of food regulations of the government included 392 food ingredients and 120 non-food ingredients. Tracking and traceability management was implemented for 100% of food ingredients and 98% of non-food ingredients (the remaining 2% of non-food ingredients were packaging bags).

Food Safety and Sanitation Education and Training

The central kitchen of Mercuries F&B Co., Ltd. provides suitable internal and external “Food Safety and Sanitation Education and Training Courses” based on employees’ different work contents, with the objective to strengthen employees’ professional functions, improve employees’ awareness of food safety and sanitation, and lower the food safety and sanitation risks.

In 2023, the central kitchen executed a total of 2,480 hours for all food and safety education and training programs, and the average training duration per capita reached 18.1 hours, down by 34.77% compared with that in the previous year due to the influence of the epidemic.

Catering Store Audit Mechanism (QSC)

To carry out the concept of food sanitation from raw materials to table (consumers), Mercuries F&B Co., Ltd. has not only implemented strict control over food safety, but also established an audit mechanism that covers three aspects, i.e., food quality management (Quality), service quality (Service), and environmental sanitation (Cleanliness). The members of the audit team comprise the auditors of the head office of Mercuries F&B Co., Ltd. The scoring results are classified into five grades, i.e., A+, A, B, C, and D.

In 2023, the company audited for 4,730 store-times (up by 5.5% compared with previous year). The monthly average audit rate reached 99%, up by 0.8% compared with previous year. Those with evaluation results as grades A+ and A accounted for 36.1% of total store-times, down by 2.7% compared with previous year; stores with evaluation results as grades C and D were required to submit improvement plans to continually improve the conditions of expiration or deterioration of food ingredients.