a company from the cooperative groupWritten by: Isabelle MAZO Checked by: Laurence BELLISSEN

Approved by: Xavier BURETTE Effective date: 09/04/2013

QUALITY QUALITY MANUALMANUAL

Usine de Quimper : ZI de l’hippodrome - 1 rue Le Bon Quimper plant 29956 QUIMPER cedex 9

Tél : (33) 02 98 90 41 68 Fax: (33) 01 56 80 28 95

Usine de Clermont-Ferrand :  : 18 rue de la Charme Clermont-Ferrand plant 63000 CLERMONT FERRAND

Tél : (33) 04 73 23 90 00 Fax: (33) 04 73 23 41 38

Atelier de Sayat  :  : Rue des Routiers Sayat plant 63530 SAYAT

Tél : (33) 04 73 23 90 00 Fax: (33) 04 73 23 41 38

Siège social  : 13 bis rue de l’Aubrac Headquarters 75012 PARIS

Tél : (33) 01 53 46 30 40 Fax: (33) 01 53 46 30 89

a company from the cooperative groupWritten by: Isabelle MAZO Checked by: Laurence BELLISSEN

Approved by: Xavier BURETTE Effective date: 09/04/2013

COMPANY PRESENTATIONCOMPANY PRESENTATION  

Beuralia was created in 2005 through the combination of France Beurre’s, Sodiaal Industrie’s and Union Beurrière’s milk fat services. Strengthened by fresh cream input provided by its shareholder, the dairy group Sodiaal, this processing company is expert in the making of products derived from milk fat such as butters, light butters, concentrated butters, dairy spread specialties). Beuralia aims for the enhancement of milk fat products coming from its shareholder.

The company headquarters are located in Paris. two plants and a workshop share the different processes : The Quimper plant manufactures butters and concentrated butters for professionals whether they are industries or shopkeepers, as well as consumer products, among which butters that are granted the logo « produit en Bretagne » ( produced in Brittany ).

The Clermont Ferrand plant manufactures consumer butters and dairy specialties, mainly retailers’ branded products for large European Multiples. It also manufactures 25kg butter cubes and melted cheese for industrials. The Sayat plant was taken over in 2010 and specialises in the manufacturing of single catering portions (from 8g to 15g).

SCOPE OF ISO 9001 CERTIFICATION SCOPE OF ISO 9001 CERTIFICATION  

The scope of ISO 9001 Certification includes activities such as development, manufacturing and selling of butters, concentrated butters, dairy specialties and processed cheese for all Beuralia production facilities.

The various concerned commercial networks are: • Ingredients : For industrials: Anhydrous Milk Fat (AMF), butters and concentrated butters for European manufacturers in the pastry and biscuit shops, the ice cream, the ready-made meals, the chocolate sectors… For food service: butters and concentrated butters concentrated butters for artisans in the pastry industry and catering services via the company Sodiaal Food Experts. • Consumer products : Mainly branded butters and light butters for consumers via some of the largest European manufacturers.

• Exportation outside Europe: AMF in metal containers for mass consumption or for manufacturers, butters, processed cheese.

 

OUR AIMSOUR AIMS  In the first half of 2009, our strategic target setting was the object of an important participative approach thoroughly carried out by the Executive Committee (CODIR) along with some of the company managers. This step was driven by the necessity to have a perfect knowledge of our markets and their evolution, and enabled to instil a new vision of business. This strategic planning (PMT) is yearly updated and presented to our shareholders. This gives our company a clear visibility on the direction to follow over the next three years and permits us to decide and prioritise the human investments and materials to be implemented in the purpose of achieving our goals.  Presently, our objective is to rely on this system for the support and the evolution of our company through a collectively shared dynamic.

a company from the cooperative groupWritten by: Isabelle MAZO Checked by: Laurence BELLISSEN

Approved by: Xavier BURETTE Effective date: 09/04/2013

3

MANAGEMENT’S COMMITMENT:MANAGEMENT’S COMMITMENT:The mission of Beuralia is to make sure the group maintains profitable opportunities in fat containing products.

Its vision is to become a European reference for butter for all trade networks, through innovation, commercial and industrial growth.

In a perspective of sustainable development, the quality policy of Beuralia is founded on its dedication to ensure a consistent quality according to the current regulations, and to act responsibly as a company, particularly as far as environment, ethics, security of individuals and food security are concerned. It aims to be recognized thanks to the quality reference ISO 9001, as well as the client references that are IFS and BRC.

The product quality process describes the responsibilities I have established in order to guarantee food safety using the HACCP method, with the help of a multidisciplinary team on every manufacturing site.

In the framework of the priorities defined by the Group which are:

Reinforcing the approach for Security and Healthcare of individuals at work

Permanently improving products through Mastery of the Quality and Safety of feedstuffs (SDA) and processes.

Developing organisation through strong and transparent relations between clients and in-house suppliers,

Support and collaboration Sodiaal Food Expert and Direction Internationale Groupe

with regards to Beuralia, I’m asking you to concentrate the efforts on the following objectives:

INTEGRATE VOLATILITY AS A FACT

in enabling the diversification of our sources of supply in optimising the management of our carry-over stocks and associating purchases and sales contracts as far as possible .

REINFORCE PROFITABILITY

in mobilizing our energies around loss reduction programs, productivity, new high-quality and less expensive product launches, in arbitrating the orientations by profit margins and seeking the best valorisation for butter by-products.

PREPARE THE FUTURE

to increase our profit margins through a continuous development and the placement of new products generating added value on the market. Our aim is to reach 40% of our revenues through target products by 2016. This vision forces us to remain proactively concerned and to anticipate our clients’ needs.

REINFORCE THE SAFETY AND QUALITY OF OUR PRODUCTS

by pursuing the actions already undertaken on our initiative in 2011, and completing them with a plan that will concern all the Group companies and which will be launched in the course of the year.

Our strategic dashboard enables to follow our achievements in relation to our objectives. This plan is issued from the

Management to all the company services in order to ensure that all members work together and measure the potential gaps so

as to bridge them.

I am confident that all Beuralia partners get together

so as to successfully complete the defined areas of improvements.

Xavier BURETTE

Chief Executive Officer

a company from the cooperative groupWritten by: Isabelle MAZO Checked by: Laurence BELLISSEN

Approved by: Xavier BURETTE Effective date: 09/04/2013

LISTENING TO AND SATISFYING THE CUSTOMERLISTENING TO AND SATISFYING THE CUSTOMERBEURALIA is willing to appear as a company resolutely turned towards clients through the "markets and clients listening" process. The Commercial / Marketing, Innovation and Quality Departments collect and formalize information coming from clients from different networks. Those come from visits at our clients’, from exhibitions, pastry exhibitions, internal client audits and team discussions upon the evolution of markets, processes and end products.

These pieces of information are transmitted to the plants for an optimal customers’ support.

The "developing and producing products" method about product development, packaging and process, is driven by the Development Committee. The latter regroups all concerned services and is animated by the Chief Executive Office. The Innovation and Quality Department is responsible for the development of new products.

The 2011-2014 strategic plan defines the company long term development areas and its needs for investment. It is reviewed every year to take into account the evolutions of the market, and adapt our answers.

The Innovation and Quality Department answers to all sorts of questions coming from clients, including product questionnaires, data sheets, information and certifications.

All the requirements follow a validation circuit including all concerned functions throughout the company.

These requirements then serve as references for the services involved in the chain of production and logistics (telemarketing, planning and scheduling, product quality and production units) in order to ensure the quality of its products and services according to their specifications.

The Innovation and Quality Department registers all customers’ complaints and transfers them to the concerned unit so as to seek the root causes and implement adequate corrective actions. The operators are kept informed of any complaint linked to their process through official boards. Customers are unfailingly taken care of.

RESOURCES MANAGEMENTRESOURCES MANAGEMENT BEURALIA has developed a long term vision which is supported by:

Abundant and high-quality resources: Beuralia belongs to the largest dairy cooperative in France: 5 billion litres of milk collected, 13,000 members, 650 000 dairy cows. These data constitute the majority of our supplies, added up to purchases of cream and butter from thoroughly selected suppliers.

A sustained investment plan for the company to acquire and to keep technological leadership.

A cross-disciplinary organisation that irrigates the whole company, provided with highly qualified and experienced partners.

A dedicated innovation team that dedicates its knowledge to the development of new products in all market segments.

OUR QUALITY MANAGEMENT MEASURESOUR QUALITY MANAGEMENT MEASURESOur quality management system is based on a process approach that is identified in the diagram presented here opposite.

Beuralia benefits from its shareholder in the fields of human resources, law, accountability and tax law.

a company from the cooperative groupWritten by: Isabelle MAZO Checked by: Laurence BELLISSEN

Approved by: Xavier BURETTE Effective date: 09/04/2013

THE DOCUMENTARY SYSTEMTHE DOCUMENTARY SYSTEM

The documents we possess to run our quality management system are the following :

- the quality manual describing the diagram of the processes as well as the quality management system.

- the process identity card (pointing out its purpose, its input and output data, the pilot, the indicators and monitoring methods) and the flowchart or text table.

- process-associated measures when needed.

- field records such as analysis protocols, instructions or specifications.

This documentation is subject to constant changes, available via  " VDoc" software.

All types of documents are submitted to drafting, verification, confirmation, filing and archiving rules.

The records, each of which managed by a specific department, serve as evidence for the achievement of the various operations.

MASTERING OUR PROCESSES MASTERING OUR PROCESSES  The processes are described, monitored and managed. A manager shares each process with his team and measures its efficiency. The semi-annual Process review and the annual Management review enable to highlight the chosen indicators and to decide which actions are to be taken in order to improve the results, as well as the means implemented to achieve this aim.

Food safety control is a crucial point in every food-processing industry, which we particularly take care of through :

- our HACCP approach, led by a documented operational staff. The file takes up all the provisions that have been taken in terms of hygiene and product traceability on our production sites, including allergens/GMO.

- an incident response Guide on Food Safety, and the other company departments such as Purchase, Finance, Industrial, Environment, Social.

CONSTANTLY IMPROVINGCONSTANTLY IMPROVING

Quality policy is observed by each of the internal operational directions through our Strategic Dashboard.

The Strategic Dashboard objectives are then spread out to the other directions following the same pattern.

A monthly tracking is made.

Process reviews allow to rule on their efficiency from:

the Strategic Dashboard and management indicators.

any non-compliant issues identified.

from comments made in audits (either internal or external).

client complaints tracking.

The listed discrepancies are subject to corrective actions and improvements.

The Innovation and Quality Department is in charge of tracking planned measures and expose the obtained

results during the Management review.