agri11 heineken africa sustain

11
HEINEKEN International Peralt van der Merwe | 17 October 2011 Having an impact in Africa BY LOCAL SOURCING Agribusiness Forum Johannesburg

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Page 1: Agri11 Heineken Africa Sustain

HEINEKEN InternationalPeralt van der Merwe | 17 October 2011

Having an impact in AfricaBY LOCAL SOURCING

Agribusiness ForumJohannesburg

Page 2: Agri11 Heineken Africa Sustain

Heineken’s footprint in Africa

Total African footprint■ 20 countries■ 36 breweries (consolidated)■ 10 breweries (managed)■ 4 soft drink plants■ 2 malteries■ 2 packaging plants (1 glass, 1

plastic)■ 2 wineries■ 1 distillery■ 1 extract plant■ Export to virtually all countries

Brewery footprint consolidated managed

Page 3: Agri11 Heineken Africa Sustain

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Economic Growth

Growing middle class/consumer market

A region with many opportunities

Rich in minerals and raw materials

Increasing capital investment

SchelZ01
or maybe another fourth?
Page 4: Agri11 Heineken Africa Sustain

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Poor infrastructure and power supply

Poverty and unemployment

Also a region with ample challenges

Bureaucracy and corruption

Poor education, health care and life exp.

Page 5: Agri11 Heineken Africa Sustain

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We have grouped our 23 programmes into 6 core initiatives

We have built our programmes around three strategic imperatives

Our long-term ambition is

Our journey is summarised by

A new approach

Brewing a Better Future

To be the World’s Greenest

Brewer

ImproveContinuously improve

the environmental

impact of our brands

and business

EmpowerEmpower our

people and the

communities

in which we operate

ImpactPositively impact

the role of beer

in society

Green

Brewer

Green

Commerce

Engaging Employees

Responsible Consumption

Heineken Cares

Partnerships for Progress

Governance, Senior management incentives, Reporting & transparency,

Supplier code, Communication & engagement

Our goal is to locally source 60% of our raw materials to brew our African beers on the African market by 2020.

Page 6: Agri11 Heineken Africa Sustain

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Our business has...

Social Impa Social ImpactEconomic Impact

Job Creation and training

Sustainable agriculture

Economic Impact Assessments

Local Sourcing

Green Distribution and Green Commerce

Safety

Responsible Consumption

Education and Schools

Community Projects

Health

It is a WIN – WIN!A WIN – WIN!

Page 7: Agri11 Heineken Africa Sustain

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Direct fte’s multiplier

Nigeria 3,000 83x

Burundi 600 57x

Rwanda 550 54x

Sierra Leone 125 40x

Underpins strong local presence

Economic Impact AssessmentImpact of direct jobs in local economies

Local Sourcing projects in:

• Nigeria• DCR• Egypt • Burundi• Rwanda• Sierra Leone• Ghana• South Africa

Raw Materials:

• Sorghum• Maize• Rice• Barley • Sugar

We aim to source 60% of raw materials locally

Economic Impact by Local Sourcing

Source: Triple Value

SchelZ01
You do want to mention this right? We do not include SA in our other external communication..Something to discuss later!
Page 8: Agri11 Heineken Africa Sustain

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Local Sourcing – the method

Provide training to farmers and agricultural support

♦ Recruitment of farmers

♦ Agricultural training on best production practices

♦ Seed improvement

♦ Provide training to small holders farmers and agricultural support

Increasing the % of raw materials sourced from local farming communities

♦ Guaranteed demand

♦ Capital investments by bank

Page 9: Agri11 Heineken Africa Sustain

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We will thereby:

1) Secure a sustainable supply of raw materials for our beers in Africa;

2) Help to strengthen the competiveness of the African agricultural sector, eventually lowering the prices of local grains;

3) Improve the livelihoods of rural households over time;

4) Reduce our own carbon footprint by shortening our supply chains for raw materials and cutting transportation costs.

Effects of our local sourcing

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Sourcing rice locally in the DRC

Page 11: Agri11 Heineken Africa Sustain