Sustainabilty @ Emmi in Switzerland
Chur, October 31st 2014 / Max Peter
ContentAbout EmmiSustainability @ EmmiSustainability issues along the Emmi Value / Supply ChainSome thoughts
Sustainability @ Emmi Seite 2
Emmi at a glance
Sustainability @ Emmi Page 3
Sales 2013Sales first half-year 2014
§ CHF 3,298 million (56% Switzerland)
§ CHF 1,625 million
Net profit margin 2013§ 3.0%
Employees (full-time equivalents) § 5,266 (as per 30 June 2014)
Volume of milk processed in 2013 § 1,465 (2012: 1,220 million kg)
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Product portfolio
Dairy products31 % (CHF 493 million)
Other products/services5 % (CHF 65 million)
Powder/concentrates3 % (CHF 58 million)
Cheese31 % (CHF 490 million)
Fresh cheese5 % (CHF 93 million)
Fresh products25 % (CHF 426 million)
Group net sales in the first half of 2014: CHF 1,625 million
House of Emmi Brands
One Word EquityEmmi
Product Brands
One Word EquityBrands
Emmi PositionStatement Where milk is turned into
moments of pleasure
Swiss original WellbeingInspirationAged to perfection
Moments of Pleasure
Local jewels
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Key production sites in Switzerland
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Emmen (Fresh products and cheese)
Bever (Cheese, dairy and freshproducts)
Ostermundigen (Fresh products andice cream)
Langnau (Fondue and processedcheese)
Dagmersellen(Mozzarella, powdered milk)
Kirchberg (Konfektionierung Käse,Export)
Suhr (Milk, cream, butter)
Kaltbach (Cow’s and goat’s milkcheese)
Bischofszell(Organic dairy and freshproducts)
Landquart (Raclette cheese)
Frenkendorf (Cheese, dairy and freshproducts)
Moudon (Cheese)
Key production sites outside Switzerland
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USA: PlattevilleEmmi Roth USA
USA: MonroeEmmi Roth USA
France: AvignonEmmi Ambrosi
Austria: Nüziders Ger: Münchehofe, Dechow,Gläserne Molkerei
Italy: RamuscelloVenchiaredo
USA: Penn YanEmmi Penn Yan
Chile: PitrufquénSurlat Industrial (Kaiku)
Chile: LoncocheChilesur (Kaiku)
Spain: PamplonaLàcteos de Navarra
Tunisia: MahdiaCentrale Laitière
Italy: PeroRachelli
USA: ArcataCypress Grove Chèvre
Mexico: Mexideli 2000
Italy: Gattico
Italy:Rancio ValcuviaA-27
ContentAbout EmmiSustainability @ EmmiSustainability issues along the Emmi Value / Supply ChainSome thoughts
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§ 1990s Formulation of an environmental policy
§ 1997 The Group's first ISO 14001 environmental certification (Dagmersellen)All Emmi locations in Switzerland have since received theISO 14001 certification
§ 2005 No genetically modified products
§ 2011 Formulation of a sustainability mission
§ 2011 1st sustainability report
§ 2012 1st sustainability motto of the year
§ 2013 2nd sustainability report
§ 2015 expand sustainability focus on the international business
Emmi has a long tradition in sustainability matters
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"Our future success is based on achieving balance and
sustainability with regard to our economic, social and
environmental goals. In key areas of sustainability, we aim to act as an
international role model within the sector."
Emmi's sustainability mission
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Four strategic directions of impact
Energy and resourcesIncrease in energy and resource efficiency and substitution of CO2-intensive energy sourceswith renewable energies or lower-carbon alternatives.
Milk and ingredientsUse of natural and respectfully produced milk and other ingredients for Emmi brands.
PackagingClosure of materials cycles.
EmployeesCreation of the conditions for family-friendly working models and more…
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Key environmental measures 2008 to 2014 (Switzerland)
Sustainability is part of the corporate policy
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2008 - Ostermundigen Heat generation fromwaste water
2009
2008 - BischofszellSolar power thanks tophotovoltaic facility
2008 - EmmenNew woodchip-firedsteam plant
2010 2011 2012 2014
Sustainability motto 2014 Intelligent mobility
2013
LandquartHeat recovery usingcompressed air
OstermundigenHeat recovery fromwaste gas
MoudonHeat generation with newcool air compressors
Emmen Heat generationusing ventilation energy
BeverSolar energy facility forprocess water
SaignelégierHigh-temperaturesolar energy facility forprocess water
SuhrExtraction of infrastructure heatfor use in water heating
Sustainability motto 2013 Close material cycles
1990iesEnvironmental organization1997Environmental MgmtISO 140012005 - DagmersellenChange from traditionalenergy to bio gaz2006 - DagmersellenCooling process usingwaste water
2006 - LandquartCooling process usingwaste water
bis 2008
DagmersellenInstallation of microgaz turbine
LogistikPartnership with railCare (Coop)
OstermundigenPre-warming of waterwith process heat
OstermundigenHeat generation with newcool air compressors
Ostermundigen Extraction of energy fromcoffee grounds (Caffè Latte)
comparison based on operating units forming today’s Emmi group
CO2 reduction – we have achieved Kyoto protocol
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1990
35’500 35’752
2012
in absolute values
to of CO2
1990
- 52.5%
2011
84.9
g CO2 /kg processed milk
40.3
g / kg processed milk
How do we think and act?
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§ one of our most important acting principle
§AVOID§REDUCE§RECYCLE / CLOSE LOOPS
principles
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ContentAbout EmmiSustainability @ EmmiSustainability issues along the Emmi Value / Supply ChainSome thoughts
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The degree of direct infuence in sustainabilty matters depends upon theindustrial role we have
Source Make
OwnBrands full full full full
Private label reduced Near full full Non existent
Third partyco-
packing
Reduced / none Near full reduced Non existent
Deliver Sale & Market
DEVELOPMENT à most important step to increase future sustainability
Sustainability throughout the Emmi value chain
Clear principles in product development:- No GMOs (genetically modified organisms)- Less additives- No preservatives- No lysozyme in cheese production (enzyme to prevent late blowing)
Example: Reduction of sugar
examination of existing recipes (e.g. yogurts: -10 to 15 % in 2011)new recipes with varying degrees of sweetness
alternatives to sugar (stevia, lactose)
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DEVELOPMENT (products and packaging)
Sustainability throughout the Emmi value chain
Packaging development – in the search of the right balance- thinner packaging- greener packaging material- but: no negative effect on: taste, shelf life, stability (à secondary packaging), haptics or optics
Example: Reduction of packaging material
joint project of packaging development, production, sales, marketing and Coop wins Emmi Sustainability Award 2013
- 19 optimisation projectsà annual cost savings: CHF 330’000
à saved material or replaced by greener alternative: 127’500 kilograms
Example: Reduction of packaging complexity
packaging variations in processed cheese from 20 to 2àless costs à more flexibilityàless faultsàless losses (due to frequent reconfigurations to machinery)
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PROCUREMENT à choice of sustainable sources
Sustainability throughout the Emmi value chain
Clear general terms and conditions of sale for suppliers:- GMO-free goods only- proactive information about nanotechnological components- certified Global Food Safety Initiative (GFSI) quality standard- minimal use uf secondary and tertiary packaging materials- recycling of secondary and tertiary packaging materials- guarantee about the compliance with applicable employment legislation and UN Convention on the
Rights of the Child and International Labour Organisation (ILO) at all stages of production and processing
Example: Coffee from RainforestAliance-certified plantations
Example: Free range eggs indesserts from Italy
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PROCUREMENT
Sustainability throughout the Emmi value chain
Example: Organic milk
Emmi is the largest processor of organicmilk in Switzerland
largest share of organic Swissmilk is processed in the
«Biomolkerei Biedermann»
acquisition of the first organic dairy outside Switzerland: «Gläserne Molkerei»
in Germany (2012)
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PRODUCTION à MUDA principle saves every type of ressources
§ MUDA à reduce waste§ do the right things first time right§ increase efficiency & effectiveness§ continous improve
Sustainability throughout the Emmi value chain
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ENVIRONEMENT – Water, energies and waste
Example: Solar power
Biomolkerei Biedermann
Käserei Studer
Lataria Engiadinaisa(Schweizer Solarpreis 2012)
Saignelégier(Schweizer Solarpreis 2013)
Example: Energy and compost from coffee
> 100 mio. cups of EmmiCaffè Latte
freshly brewed coffee
1’900 tonnes of coffeegrounds
950’000 m3 of biogas
950 tonns of compost
Example: Use of process heatfor preheating of brewing water
Brewing process for coffee (Emmi Caffè Latte and Emmi Pure Swiss Yogurt):average temperature of 90°C
Preheating to around 70°C by usingprocess heat
Savings of:- 2,2 mio kWh of energy- CHF 110’000- 110 tonnes of CO2
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DISTRIBUTION à management of distribution network reduces tokm
Sustainability throughout the Emmi value chain
- 6‘000 to 8‘000 pallets per day to our customers- fleet:
- 60 good vehicles owned by Emmi- 100 lorries owned by Emmi‘s subsidiaries Baumann Käse, Biomolkerei Biedermann and Emmi Frisch-Service- additional 60 to 90 vehicles from third-parties- 8,8 kilometres per year à 200 trips around the world- average fuel requirement: 29,2 litres of diesel (vs. 30,4 in 2008)
Example: Cooperation with railCare
deliveries to Coop in Ticinofrom road to rail
1’200 pallets per month
700 lorries per year
around 88 tonnesCO2 reduced
Example: Lorries with high Euro emissions standards
86 % of Emmi’s lorries meetEuro 5 emissions standard
2014: all Euro 3 lorries replacedby Euro 6
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SALES & MARKETING à tell the customer the values
Sustainability throughout the Emmi value chain
Example: Promoting sustainable products together
20th anniversary of Naturaplan
Organic versions of the classic brand cheeses LUZERNER, GALA and Gerber
Example: Emmi makes milk products – not money
Every year, Emmi supports at least 1’000 sport and school camps with products
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SALES & MARKETING à labels to impove trust of consumers
Sustainability throughout the Emmi value chain
Emmi manages more than 20 labels and their respective rules and standards
AHA Glutenfrei (Gluten-free) Kosher SpigaBarrata
Alpinavera GM-free Mountain and Alpine Ordinance SUISSE GARANTIE
AOP / AOC Halal Organic V-Label
Fairtrade / Max Havelaar IP Suisse / Terra Suisse Regional products Wiesenmilch
Rain Forest Alliance FAIR TRADE …
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ContentAbout EmmiSustainability @ EmmiSustainability issues along the Emmi Value / Supply ChainSome thoughts
Sustainability @ Emmi Seite 27
lots of chances along the Value & Supply Chain
§ any search of excellence along supply chain operations leads to mor sustainability
§ first step: search in your direct sphere of influence, then enlarge to the other ends of your supply chain (next tiers)
§ involve employees to earn low hanging fruits
§ big savings / big impacts need time, endurance and perseverance
§ think in life cycles and closing of possible loops
§ change managerial and operational thinking and behavior to this thinking
§ create the right incentives – as well on politic / economic level as on company level
§ sustainability is not a one-man/women show, neither a pure marketing issue, it should become part of the enterprise-DNA
§ the best idea is worth nothing, if it doesn’t meets customers
some thougths
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