agri11 heineken africa sustain
TRANSCRIPT
HEINEKEN InternationalPeralt van der Merwe | 17 October 2011
Having an impact in AfricaBY LOCAL SOURCING
Agribusiness ForumJohannesburg
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
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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
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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.
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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.
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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!
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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
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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
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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