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Local Environmental Quality is good for business. Mark Jephcott External Communications Manager A.G.Barr p.l.c.

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Local Environmental Quality is good for business.

Mark JephcottExternal Communications Manager

A.G.Barr p.l.c.

• AGENDA

• Our business

• Our CSR strategy

Our Environmental strategy and delivery

• Our Environmental Quality Partnerships

Close

Our business …….

• Over 140 years making, moving, marketing and selling soft drinks

* UK soft drinks market £10 bn+ 2015* Rich history and heritage* Makers of IRN-BRU for many the soft drinks

choice of the Scottish Nation* Part of everyday life in Scotland * Ambitious and consistently outperform the market* £254.1m turnover (January 2015)

Robin Barr former Chairman A.G.Barr.p.l.cOne of only 3 people in the world who know the Secret formula of IRN-BRU

Our business …….• A growing business with a diverse, differentiated and developing brand

portfolio

Our business …….• UK wide business with regionally strong brands and consumer loyalty

National operational footprint, circa 1,000 employees, across 10 sites60% of sales in community based impulse / convenience outlets many serviced by our own sales teams

3.0%

38.6%

58.4%

Sales breakdown

Our business …….

• Consistent strategy for growth with our CSR strategy at the heart of everything we do.

1) Connecting with our consumers• 2) Building our brands

• 3) Understanding our customers

• 4) Developing partnerships

• 5) Driving efficiency

• 6) Acting responsibly

Our CSR Strategy ……..• Our People

• Our Community

• Our Consumers

• Our Environment

Our CSR Strategy ……..• Our People

Safe environment - safety Management ProgrammePerformance through People: Barr Behaviours:Being Brilliant, Always Learning, Results Driven, Relationships That Deliver

Investors in People Silver StatusHealth & Wellbeing: ‘Do More’Nearly 25% of our people with +15 years service

Our CSR Strategy ……..• Our People

Safe environment - safety Management ProgrammePerformance through People: Barr Behaviours:Being Brilliant, Always Learning, Results Driven, Relationships That Deliver

Investors in People Silver StatusHealth & Wellbeing: ‘Do More’Nearly 25% of our people with +15 years service

• Our CommunitySupport our local, national and international communitiesProvide financial, in-kind, employee volunteeringand practical supportKey areas of focus:- Health & Wellbeing (inc physical activity)- Social Inequality- Environment & SustainabilityEmployee chosen corporate charity

Our CSR Strategy ……..

• Our ConsumersMarket responsiblyCommitted to reducing sugar and offering sugar free alternativesProduct qualityClear and consistent labelling of products

• Our EnvironmentEnergy use and carbon emissionsWater consumption and disposalTransport and LogisticsWastePackaging materials reductionRecyclability of packaging Actions on litter

Environmental Quality actions ……..

• Soft Drinks Sustainability Road Map5 key areas of focus for improvement:- water efficiency- packaging and litter- raw materials- carbon reduction

- waste reduction

• The Packaging Recycling Group Scotland

34 members working towards partnership action to boost recycling reduce waste and littering

Current drinks container recycling in Scotland = 50%

Targeting 80% drinks container recycling by 2025

Environmental Quality actions ……..

• Soft Drinks Sustainability Road Map5 key areas of focus for improvement:- water efficiency- packaging and litter- raw materials- carbon reduction

- waste reduction

• The Packaging Recycling Group Scotland

34 members working towards partnership action to boost recycling reduce waste and littering

Current drinks container recycling in Scotland = 50%

Targeting 80% drinks container recycling by 2025

• LIGHT WEIGHTING PROGRAMME Over the last 10 years we have reduced the weight of our glass and PET bottles removing tonnes of packaging material from the waste stream:

Glass: removed 397 tonnes= 1.9m 330ml bottlesPET: removed 683 tonnes = 26.3m 500ml bottles

Environmental Quality actions ……..

• All our PET packs are designed with recyclability in mind usingRECOUP ‘Recyclability byDesign’ guidelines.

• Benchmarking the recyclability of our bottles by contributing data to Wrap’sPET categorisation tool for analysis.We significantly outperform the Beverage industry.

•Member of the OPRL schemeHelps consumers recycle more materials more often

Scotland’s Local Environmental Quality - Indicators

LITTERDOG FOULINGFLYTIPPINGGRAFFITIDETRITUSWEED GROWTHFLYPOSTING

LITTER

Scotland’s Local Environmental Quality - Indicators

LITTERDOG FOULINGFLYTIPPINGGRAFFITIDETRITUSWEED GROWTHFLYPOSTING

RECYCLING

Our Partnership with Every Can Counts Scotland

• Launched at Holyrood in 2012

Jointly funded by Alupro, ZWS and A.G.Barr

ECC Scotland Manager based at A.G.Barr Cumbernauld• Aims:

To increase the number of drinks cans recycled, whether at work or while out and about, by providing practical advice and support. To provide practical advice and support to businesses on encouraging recycling in the workplace.To set up can collection points in offices, factories, colleges, Universities, schools, shopping centres

Our Partnership with Every Can Counts Scotland

• Recycling project in all 17 schools in South Lanarkshire funded by ECC and ZWS

• 17 new can crushers installed to engage young people in recycling by adding variety to capturing and recycling drinks cans brought into school

• 18,000 students and staff offered literature to support classes on the importance of recycling, helping them to think more about what happens to the waste they produce

Our Partnership with Every Can Counts Scotland

• Achieved todate:

5,000 new recycling points

1,000 Scottish workplaces

32 can crushers installed in schools, colleges and universities.

• ECC has helped Scottish businesses meet the Waste (Scotland) Regulations (2014), requiring all Scottish businesses to separate recyclable materials.

Our Partnership with Keep Scotland Beautiful

• Clean Up Scotland Campaign.

Pledged our support for the Clean Up Scotland campaign in 2015

Aims to change long-term behaviour and attitudes in Scotland by making littering unacceptable

• We also pledged to:

- organise a local clean up near to our Cumbernuald base

- encourage our Scottish based retail customers and suppliers to sign the pledge as well and get involved in the campaign.

Our Partnership with Keep Scotland Beautiful

• Local Clean Up: Cumbernauld• 17 Barr employees inc our CEO Roger White

• Community litter pick around our Cumbernauld site

20 bags of rubbish + a TV and an ironing board !

Team building opportunity as well as encouragingother businesses to join the Campaign.

A great way to demonstrate pride in• your local communities, while helping to change

behaviour on littering.

Our Partnership with Keep Scotland Beautiful

Our Partnership with Keep Scotland Beautiful

• Keep Scotland BRU-TIFUL & bin your litter !

3,500 independent retailers

Discussed our involvement in the Clean Up ScotlandCampaign and encouraged them to sign up via a specially created web link to the campaign pledge form

• Site our BRU-TIFUL A5 ‘Bin Your Litter’ window sticker

FPD with 25 lucky winners each receiving £120 Barr products• A5 presenter - talked through by the Barr Van Mate•

Our Partnership with Keep Scotland Beautiful

• Keep Scotland BRU-TIFUL & bin your litter !

Our Partnership with Keep Scotland Beautiful

• Keep Scotland BRU-TIFUL & bin your litter !

Over 1000 retailers displayed our window stickers and expressed an interest in signing up to the campaign.

• 170 pledges received during the campaign period

Spring 2016 ‘Clean Up Campaign’ initiative to follow

•Summary• Long established business (started 1875)

CSR strategy at the heart of everything we do

Invest alot of resources in our Environment Strategy

Taking some simple steps to improve local environmental quality in Scotland.

Encourage Scottish businesses to do the same.

• IT’S INVIGORATING ! (VT)