1. Sustainable Sourcing for BEVERAGE Category Managers: Using the FMI Guide Five Winds International & Ecos US Conference Number(s): 1-877-782-5094 Participant Code: 200436 January 26, 2011

2. Acknowledgements Produced “by the industry for the industry” Thank you to: United Soybean Board FMI Sustainability Executive Committee and Council Specifically those that helped to launch the development of the guide: Suzanne Forbes (Wakefern), Harriet Hentges (Ahold USA), Tom McIntyre (SUPERVALU), Karen Meleta (Wakefern), Tracy Taylor (Ahold USA) and Jeanne von Zastrow (FMI) All those who participated in our Guide survey and submitted additional comments

3. Background on Guide & Presentation This presentation accompanies the document: Sustainability on the Shelves A Guide for Category Managers Please customize the Guide and these slides for your own use

4. Agenda Learning Objectives What is Sustainability? Sustainable Sourcing Decision Framework for Beverage Take-Home Messages Questions

5. Learning Objectives Provide good working understanding of sustainability in the food retail sector Identify key sustainability issues specific to each product category Possess questions and tools to help understand and verify sustainability claims, recognize “greenwashing”, and select more sustainable products

6. What is Sustainability? Sustainability “Business practices and strategies that promote the long term well-being of the environment, society, and the bottom line” - FMI

7. Sustainability in Your Company Poll: Who is in charge of sustainability in your company? Corporate Sustainability Director Senior Executive designated to manage sustainability c. Sustainability Team d. Other e. No one 7

9. Availability

10. Price

11. ServiceSustainable Sourcing SUSTAINABLE ATTRIBUTES

12. Sustainability is a Strategic Business Issue 300% Growth of U.S. sales of “ethical” cleaning products in 2009. Packaged Research $73M Additional profit generated by Marks and Spencer’s Plan A sustainability strategy in 2009. M&S 2010 Progress Report

13. Consumers are looking for “green” Source: 2009 GMA/Deloitte Green Shopper Study

14. Stepwise approach to buying more sustainable products

15. Step 1: Know Your Priorities What are your company’s priorities? Sustainable sourcing strategy Company sustainability priorities Product priorities

16. Poll: What sustainability issues are your customers asking about? (select all that apply) a) Packaging b) Sustainable seafood c) Organic d) Local e) Toxic/natural ingredients f) Other Step 1: What are your customers’ priorities?

17. What is a Sustainable Product? 14

18. How do these terms relate to sustainability? recyclable less toxics organic local eco-labelled less packaging BPA-free recycled content packaging fair trade durable use less resources

19. What are the Sustainability Issues for Beverage?

20. Carbon Footprint A carbon footprint includes all greenhouse gases emitted by a product’s production, transportation, consumption, and end of life. Final carbon footprint calculation for a standard bag of Walkers Crisps is 80g CO2 which compares to 243g CO2 for an average cheeseburger See Guide, page 22 Sources: US EPA Greenhouse Gas Equivalencies Calculator and http://www.walkerscarbonfootprint.co.uk/walkers_carbon_footprint.html and http://openthefuture.com/cheeseburger_CF.html

21. Water Footprint 53 gallons! See Guide, page 22 Source: http://www.huffingtonpost.com/2009/02/13/1-latte-53-gallons-of-wat_n_166759.html

22. Waste Footprint Every year, the US generates around 14 million tons of food waste, equivalent to 106 pounds of food waste per person See Guide, page 23 Source: http://www.epa.gov/reg3wcmd/solidwasterecyclingfacts.htm

23. Packaging Almost 1/3 of the waste generated in the U.S. is packaging See Guide, page 24 Source: http://www.cleanair.org/Waste/wasteFacts.html

24. Organic, Local, and Bioengineering Consumer demand? Sustainability science? See Guide, page 25 Source: http://pubs.acs.org/doi/abs/10.1021/es702969f

25. Processing, Recycling, and Disposal are Hot Spots for Beverage

26. Processing, Recycling, and Disposal are HotSpots for Beverage Enormous freshwater needs during processing… 518 liters of freshwater are required to produce just 1 liter of Minute Maid orange juice 35 liters of freshwater are needed to produce a half liter of Coca-Cola Source: http://www.nytimes.com/2010/11/29/business/energy-environment/29iht-RBOGFOOT.html

27. Processing, Recycling, and Disposal are HotSpots for Beverage Large environmental impact during recycling and disposal… Recycling 1 plastic bottle can conserve enough energy to power a light bulb for 6 hours. Nearly8out of every 10 bottles will end up in a landfill Source: http://earth911.com/recycling/plastic/plastic-bottles/facts-about-plastic-bottles/

30. Step 3: Acquire Information You’ve started the conversation, now begin to acquire information on company and product sustainability See page 21 of Guide for General Questions to ask your suppliers http://www.greenbiz.com/news/2010/03/11/how-to-embed-sustainability-into- company-dna#ixzz10qIvI7SA "A lot of companies publish how green their building is, but it doesn't matter if you're shipping millions of power-hungry products with toxic chemicals in them," …."It's like asking a cigarette company how green their office is.” Apple CEO Steve JobsSource: Businessweek 2010

32. Possible starting points:Review and compare to information in Guide & “For More Information” links Compare information with your company priorities identified in Step 1 Talk to your sustainability team Talk to other category managers

33. Evaluate Information Types of information you may receive:

34. Eco-Labels: One tool in your toolkit Learn more about the eco-labels for your category SOURCES: World Resources Institute, Big Room Inc. | Bonnie Berkiwitz and Laura Stanton/The Washington Post - May 3, 2010

36. Sustainable

37. Green

38. Environmentally-friendlySin of the Hidden Trade-Off Sin of No Proof Sin of Vagueness Sin of Irrelevance Sin of Fibbing Sin of the Lesser of Two Evils Sin of Worshiping False Labels For more information, see Guide pages 27-28 (Used with Permission)

39. Greenwashing Poll: If you think you’ve seen greenwashing, what about it made you question the claim? No data/proof provided Vague or undefined terms used Claim seemed too good to be true Hidden trade-offs may exist Other

41. Availability

42. Price

43. Service

45. Further Questions? Thank you for your attention and participation today!

46. Coming soon via Survey Monkey Did this webinar: Provide you with a good working understanding of sustainability in the food retail sector? Identify key sustainability issues specific to your product category? Possess questions and tools to help understand and verify sustainability claims, recognize “greenwashing”, and select more sustainable products?

47. Contact Information

48. Living Our Values Five Winds is a Carbon Neutral Company and follows a Sustainable Purchasing Policy