The following is the Corporate Responsibility Report as published in the C&C Group’s 2016 Annual Report.
- We are supporting the implementation of minimum unit pricing in Scotland, the Republic of Ireland and Northern Ireland.
- We became the first drinks company in the UK and Ireland to display calorie information on our packaging.
- We communicated the calorie content of our draught products in outlets.
- We are working with Governmental bodies, Drinkaware and police forces on initiatives to improve the safety of the night time economy.
- C&C made a significant contribution to the new US Cider Bill which has now been passed as legislation and will help improve the quality of cider products in the US.
- The Tennent’s Training Academy provides high quality hospitality industry training, now having trained over 20,000 people.
- We have made significant charitable contributions at local and national level.
- Efficiencies at our manufacturing sites have meant that our energy consumption per hectolitre fell by 6%.
- Our two largest production sites, Clonmel and Wellpark, sent zero waste to landfill.
- Health and Safety programmes have delivered a significant reduction in the number of injuries resulting in lost-work days.
- Our commitment to the environment and agriculture is extremely high. During the last 12 months we pressed over 83,000 tonnes of fruit.
- We pay the appropriate and required level of tax in the different countries we operate in and remit substantial amounts of alcohol duty.
Ensuring that the group operates in an environmentally and socially responsible way is one of our key values. We operate a range of policies that ensure we deliver the demands of our stakeholders.
ENVIRONMENTAL IMPACT & ENERGY
Our operations teams in each of the Group’s manufacturing facilities actively work to reduce our impact on the environment. Their focus is on the reduction in consumption of energy, water and other raw materials as well as waste going to landfill and greenhouse gas (GHG) emissions. We also actively review mechanisms whereby we can increase transportation efficiency. FY2016 was the first full year that our Borrisoleigh plant could be incorporated into the data for comparison.
In comparison to FY2015, the total electricity used per hectolitre of products produced in our manufacturing sites at Wellpark, Borrisoleigh and Shepton Mallet reduced by a further 6%. The factors contributing to this performance included awareness and improvement programmes on each of the sites and a range of targeted investments, most notably a €1m investment in the Wellpark Brewery refrigeration system.
Our manufacturing sites at Clonmel and Shepton Mallet are accredited with the Environmental Management Standard ISO 14001; the facility at Clonmel is also accredited to the Irish Energy Management Standard IS EN 16001:2009, and works closely with the Sustainable Energy Authority of Ireland (SEAI). Clonmel was reaccredited to the ISO 50001:2011 Energy Management Standard. These standards require us to demonstrate the systematic management of energy leading to a decline in GHG emissions. At Clonmel and Borrisoleigh 100% of the electricity provided by our electricity supplier comes from renewable sources. Our environmental management systems at Wellpark are aligned with Clonmel and Shepton Mallet and met their regulatory targets in FY2016. In the UK, we avail of the Government’s small emitters opt out scheme.
We continually review our supply chain to ensure we are optimised, both in respect of footprint and customer service.
In the past 12 months, our distribution partner in the Republic of Ireland has upgraded its fleet with 20 new tractor units. All of these units meet the requirements of the Euro 6 EU Regulations for diesel engines, meaning lower levels of harmful exhaust emissions and greater fuel efficiency. In our secondary distribution fleet through improved transport planning, we have removed a total of 14 trucks from the fleet and from contractors and have significantly reduced our road haulage mileage.
In the past 12 months our distribution partner in England and Wales has also invested in fleet efficiency, with £13m spent on new trucks and trailers and £2m invested in trailer tracking and traffic management systems.
We continue to benchmark our SKU’s to ensure that we take every opportunity to light-weight our packaging and make full use of recyclable materials. We work with our multinational suppliers in this area to make best use of their expertise, and we also look at efficiencies in the supply chain. For example, we are currently engaged in partnership with our main glass supplier on their continuous improvement project initiative to ensure we are achieving maximum efficiencies, value and quality on glass across all our plants, and the wider supply chain.
In line with our pledge to promote responsible drinking, all our labels contain information on alcohol units, Chief Medical Officer guidelines and health warnings. In a new initiative, we have also introduced alcohol units per serving on our newly branded Tennent’s glassware range.
We have also made a voluntary commitment to include calorie information on our products, and have already rolled this out on our Tennent’s cans.
The Group continuously monitors the impact of its operations on the climate and we look to reduce our GHG emissions. We assess and manage climate change related risks and opportunities, including the impact on the availability and security of our sources of raw materials, such as aquifers, orchards and maltings.
The Group participates in the Carbon Disclosure Project (CDP) Supply Chain Programme and CO2 emissions for the Group are evaluated annually. The Group has historically scored highly in the CDP Ireland Report, showing disclosure scores which are amongst the best in its sector. This year’s disclosures to CDP will include data for Wallaces Express and Gleeson for the first time, as we continue the ongoing process of expanding data collection and reporting across our more recently acquired businesses. Scope 1 and 2 CO2 emissions in FY2016 are broken down across our manufacturing sites as follows:
|Shepton Mallet:||7,622 tonnes|
TThis equates to an overall reduction in carbon emissions of 12% for Scope 1 emissions and 11.5% for Scope 2 emissions and a 5% reduction in carbon emissions per hectolitre of finished product. During FY2016, audits have been carried out across our sites to identify carbon savings.
In Ireland and the UK, through our commitment to rural development, we support orchard growers who manage over 2,000 hectares of orchards for apples used directly in the production of our cider.
We ensure compliance with national packaging regulations for all our products placed into the marketplace.
We have systems in place across all manufacturing sites working towards maximising the recycling of waste we produce and minimising what we send to landfill.
In FY2016, both Clonmel and Wellpark sent zero process waste to landfill. This was due to general waste reduction, increased waste stream segregation allowing more recycling, manual sorting of residual general waste to remove any recyclable materials and then sending the residue to a Refuse Derived Fuel (RDF) facility where electricity is generated. At Shepton Mallet, general waste volume for the year has dropped a further 7%. This equates to a reduction of 57% since FY2012 through improved segregation and recycling. Borrisoleigh achieved a reduction in waste going to landfill of 42% after successful segregation and recycling initiatives were implemented there.
The management of waste from our apple-crushing facility in Portugal is now handled by professional third party contractors. Recycling schemes have been instigated to improve segregation and site awareness training programmes completed. We have also invested in optimising the treatment of effluent.
At all the Group’s manufacturing sites, water preservation and management is an important business consideration and we continue to monitor the usage of water per hectolitre of finished product from each manufacturing facility and across our supply chain. Each year the Group participates in the CDP Water Disclosure initiative in ROI and the UK.
In FY2016, our total water usage is equivalent to 3.6 hectolitres of water used per hectolitre (hl/hl) of product produced, which is significantly better than the recognised industry benchmark of 4 hl/hl. Across the Group, we also have projects in place on brewery condensate recovery, reclaiming pasteuriser and bottle rinse water, fruit processing, and minimising plant and process cleaning systems.
Our procurement and technical services teams actively review and assess our suppliers’ track record in environmental management, health and safety, sustainability and corporate social responsibility through our tendering processes and ongoing supplier reviews. This ensures that corporate social responsibility is part of sourcing decisions and sourcing strategies for new suppliers. This also allows us to develop a consistent approach to relationship management and supplier segmentation on supplier diversity, with an open dialogue encouraging best practice sharing and innovation that can be applied more widely.
We do not condone and will not knowingly participate in any form of human exploitation, including slavery and people trafficking. We refuse to work with any suppliers or service providers who knowingly participate in such practices or who cannot demonstrate to us sufficient controls to ensure that such practices are not taking place in their supply chains. We have recently updated our Sustainable and Ethical Procurement Policy and are circulating it to suppliers. We also carry out diligence audits and checks on our suppliers to ensure that they have in place and adhere to appropriate ethical policies.
We seek to support suppliers of our key raw materials such as barley and wheat through entering into long-term supply arrangements with them. We take account of broader outputs such as the impact on sustainability, profit, cash flow, reputation, environmental and social impacts in order to create shared value across the supply chain.
We also leverage the expertise and capabilities of our suppliers to ensure C&C optimises the materials we use and reduces our impact on the environment.
During the year some 80,000 tonnes of apples and 3,500 tonnes of pears were processed in our milling operations across the Group. Although this represented a reduction on the previous year, our percentage share of the available crop was maintained. Although we recently announced the decision to cease cider production at our facility in Shepton Mallet, we will continue to process fruit in the UK at the current facilities in Shepton on a standalone basis.
During the year we completed our investment in the Keeping Somerset Orchards Alive project, partnering with The Farming & Wildlife Advisory Group (FWAG). This project supported community orchards and provided grants for planting, pruning and ongoing agricultural support. Key outcomes included:
- 60 grants provided for planting and pruning;
- 1,423 new orchard trees planted;
- 4,191 established trees pruned;
- Point of contact for telephone advice provided.
We are actively opposed to all forms of forced labour and work with all of our growers to ensure that appropriate methods are used to harvest apples. In FY2017 we will start a process of repeated annualised audits of our contracted growers to ensure standards are being applied. We encourage sustainable agricultural practices and the preservation of biodiversity. In the UK, we are actively involved in the NACM which takes the lead in adopting and working to sustainable principles both in the physical and social environment, and carries out annual climate change assessments. The NACM is the first drinks trade body to work with Business in the Community (BITC) to address sustainability, and we have worked with the pomology and technical experts in the NACM to develop our sustainability agenda.
At our cider mill in Vermont we take part in “cow power” which means that we pay a premium on the electricity used and this premium is used to help dairy farmers install methane digesters turning manure into power. We also use a “solar orchard” which is a 26 array solar project providing sustainable electricity and diversification for local farmers. Both of these projects are good examples of how we are working in an innovative manner to safeguard energy supply.
It is important to us that we operate as good citizens in our communities. We focus our efforts on activities that benefit our local areas. We work hard to ensure we have a positive impact on the communities in which we operate. A significant part of this is our approach to charitable activities where we support a wide range of charities particularly those that have a local impact in relation to our operating facilities.
The Group takes its responsibilities as a corporate citizen seriously. This includes respecting and complying with local tax laws and paying the required levels of tax in the different countries where we operate. We claim the allowances and deductions that we are properly entitled to, for instance, on the investment and employment that we bring to our communities. We benefit from having always been an Irish company, established in the Republic of Ireland’s low tax environment, with our major Irish cider production unit located in Clonmel and the Group headquartered in Dublin. The majority of the Group’s profits are earned in ROI and the UK, which both have competitive corporation tax rates compared with the European average. In ROI and the UK we remit substantial amounts of duty on alcohol production.
We support a diverse range of sporting and live music events as well as charities and community projects across Ireland.
Our partnerships with large sporting events includes horse racing, endurance events and the city marathons in Dublin and Cork. Additionally, Tennent’s NI has partnered with the Irish Football Association, supporting football at both a national and local level. We also support a number of live music events including Tennent’s Vital, which is Northern Ireland’s biggest music festival. The annual sponsorship of this and other live music events by Tennent’s NI helps bring world-class musicians to Northern Ireland. In ROI, we support the Forbidden Fruit Festival, the Kilkenny Trad Festival, Junction Festival in Clonmel and Bulmers Live at Leopardstown, which sees live music acts alongside evening racing events.
In Northern Ireland we are on target to raise £18,000 for PIPS (Public Initiative for Prevention of Suicide and Self-Harm). We provide financial support to the on-trade sector through our lending facilities. This has enabled many customers to improve the quality of their premises, enabling them to continue to play an important role in their local communities. Additionally, we continue to recognise the importance of the wider hospitality sector through our partnership with Tourism Northern Ireland.
In the Republic of Ireland, we continue to use our brands to raise money for local charities. Our partnership between BUMBLEance, the Children’s National Ambulance Service, and Tipperary Kidz Water helps to provide a unique, child-centred professional ambulance transport service, catering for the needs of seriously ill children en-route to and from principal centres of care. We donated €10,000 to the charity to enable them to manufacture a Bumble Bee soft toy for a promotion with a large retailer. In addition we have donated in the region of €5,000 to Barrettstown Kids Camps, which host specially designed programmes where children with a serious illness can attend, have some fun and meet other children from all over Europe. We support the Musical Youth Foundation, an organisation that provides music lessons to children in disadvantaged areas. We have also donated free stock of Finches and Tipperary Water to a wide range of other local projects and charities.
We are extremely proud to be involved with the Quinn School of Business in University College Dublin where we support students with scholarships and work placements in a scheme in memory of our late chairman, Tony O’Brien.
We support a number of local schools by providing student work experience opportunities at our Clonmel production site for students in technical and manufacturing subjects as well as places in our Marketing, Finance and Customer Service departments in Dublin and Belfast.
During the last year we announced the closure of our production facility in Borrisoleigh and an expansion in investment and additional jobs in Clonmel. We are working with the community in both areas to ensure that the transition is as smooth as possible.
We provide financial support through trade lending to on-trade customers. In FY2016 we advanced more than £5 million to enable customers to improve the quality of their establishments and help them play an important role in the local communities.
We have a broad range of charitable activities including KidsOut Scotland where we organised a charitable dinner that raised over £50,000; and our support of PUBAID which highlights the charitable work carried out by UK pubs and which sees £100m raised annually. A key charitable initiative is the Goals for Charity campaign between Celtic FC and Magners Irish cider where we donated £150 for every goal scored to the Celtic FC Foundation, which raised approximately £18,500. This donation enabled Magners, the Tennent’s Training Academy and Celtic Charity Foundation to develop a programme to support 12 long-term unemployed adults to take part in a 10-week course focussed on developing skills in the hospitality industry as a gateway to securing future employment.
We recently pledged support to a charity called “Voice-Over”, based in Glasgow, which supports immigrants by embarking upon the social enterprise of providing translation services. We are helping this charity with funding, advice and translation requests and this is an example of how we aim to use our charitable activity to help those affected by poverty and inequality.
We provide valuable support to those setting out on a career in the pub and hospitality industry. The Tennent’s Training Academy, which offers a wide range of training programmes with nationally recognised qualifications in all aspects of the hospitality industry, has now trained over 20,000 people. The Tennent’s Training Academy has expanded its operations and now provides a wider range of courses than ever before. We also have four modern apprentices currently working at Wellpark.
Tennent’s is the founding partner of T in the Park, one of the top music festivals in Europe, which brings some of the world’s biggest music stars to Scotland. Staged at the stunning Strathallan Castle in Perthshire, the festival is now in its 23rd year and is attended by 85,000 people per day over the three days of the event. As well as being the highlight of the summer for tens of thousands of music lovers, T in the Park generates over £15m for the Scottish economy. Tennent’s is also committed to Scotland’s unsigned music talent via T Break. Now in its 21st year, this highly credible music programme has seen global artists like Snow Patrol, Biffy Clyro, Travis and Paolo Nutini showcase their talent at the T Break stage at T in the Park.
The Drygate Brewery opened on our site in Glasgow in 2014. This joint venture brings craft beer and a superb retail establishment to the east end of Glasgow. This provides a useful resource for people living and working in the area and has hosted many cultural events such as music and comedy nights, which have proved very popular.
During the last 12 months we announced the decision to cease cider production at our facility in Shepton Mallet. However, we will continue to press apples and other fruits in the cider mill. We have been working with the local community and local politicians and government to ensure that the best possible outcome is achieved for employees and the community.
Our commitment to the agricultural environment and apple growers of England is undiminished and we support Somerset Orchards by participating in the “Keep Somerset Orchards Alive” project.
In FY2016, Vermont Hard Cider Company donated over $75,000 to local groups and charities. The biggest recipient of our charitable donations continues to be Survivorship NOW, a cancer survivor and supporter organisation that helps bridge the gap between cancer treatment and recovery. We donated $30,000 to the organisation and are in our third year of producing our Woodchuck Private Reserve Pink Cider in their honour.
We also donated over $10,000 to the Vermont Foodbank both in an outright donation of $5,000 and by our staff participating in a “pick for your neighbour” event where our staff picked the apples for the Foodbank and we made a contribution to the orchard to cover the cost of the apples.
We have also upheld our commitment to our orchard partners in the state of Vermont. During 2016 we participated in Earth Week. For each new Facebook like we received during that week, we planted a tree in that person’s name. As a result of this year’s activity we planted 4,546 new trees. Since the earthquake in 2010 the Vermont Hard Cider Company has planted over 50,000 trees.
We ran a similar promotion to plant fruit trees by raising money which funds research into apple growing. Over $16,000 has been raised since 2013.
We have a long-term view relating to apple growing and are funding a study to promote the growing and harvesting of cider specific apples in Vermont in an environmentally friendly way by using less treatment on the trees. The test involves 40 acres of orchard that is managed using cider specific techniques. The inputs and yields will be carefully tracked over the initial three years of the study. Vermont Hard Cider Company has provided funding for this initiative through $300,000 in payments for apples above market value and through a $200,000 loan to the orchard to enable it to purchase additional acreage.
Public Policy Leadership
As a relatively small manufacturer, closely linked to our local communities, we focus our attention on initiatives that will directly affect these communities. This means we are not members of large national bodies, such as the Portman Group, as we believe the approach taken by these bodies does not best serve our objectives and those of our communities.
We are members of the National Association of Cider Makers (NACM) which works closely with apple growers and the agricultural communities in cider regions, and we have a seat on the board of the organisation. This has put us at the heart of many UK Government discussions relating to the responsible use of alcohol. The NACM is also engaged with tax and regulatory departments and opinion-forming bodies having an interest in cider and alcohol generally. The 2016 UK Government budget saw duty frozen for another 12 months on beer and cider.
On the global cider stage we are active in the United States Association of Cider Makers (USACM) and we are delighted that legislation has recently been passed in Washington that implements a revised definition for cider in the US allowing higher carbonation, which is more aligned to European levels.
Within Europe we are corporate members and key influencers within the European Cider and Fruit Wine Association (AICV). Working with these and other organisations enables us to press for consistency in cider definitions across the world, which is important for our global expansion aspirations.
A large number of local authorities in England and Wales have implemented restrictions on the sale of high-strength beer and cider. We have a very small commercial interest in these products. However, we are concerned by the precedent such local legislation sets. In order to achieve some balance to the schemes we have appeared at a Westminster committee hearing in the House of Commons.
Public Health Responsibility Deal UK
We continue to support the eHealth responsibility deal pledges that were made in March 2012 and are delivering our commitments against these pledges. We have disposed of high-strength cider brands and launched lower alcohol strength products to deliver our units reduction pledge.
We believe that consumers should be given information about what they are consuming in order to make their own informed choices. For that reason from February 2016 we became the first drinks producer in the UK and Ireland to voluntarily add calorie information to our packaging. Tennent’s Lager was the first product to show calorie information and we are planning to add this information to the rest of our portfolio over the course of the next year.
In Australia, we launched Magners Blonde. This low carb version of Magners has 85% lower carbohydrates than other ciders and no added sugar.
These pioneering initiatives are further proof of our commitment to ensuring a sustainable relationship between ourselves, our products and our communities.
We are funders of Drinkaware, which performs the valuable role of equipping consumers with information about their drinking. We also promote Drinkaware on our packaging and advertising materials.
Best Bar None
As part of our strategy of focusing on local customers and consumers with responsible drinking messages and activity, we are a member of the Best Bar None scheme. The aim of this scheme is to improve the night time economy of many Scottish high streets, making them safer and more enjoyable places to be.
Scottish Government Alcohol Industry Partnership (SGAIP)
Tennent’s was a founding member of the SGAIP. The SGAIP has undertaken various initiatives over the last 12 months. The SGAIP has evolved into a forum, which facilitates greater focus on effective schemes and reduces bureaucracy. We chaired this new forum during its transition stage. The current focus of the SGAIP is on increasing the availability of small wineglasses in the Scottish on-trade and reducing underage purchasing of alcohol.
Legislation relating to Tied Pubs
The UK Small Business Enterprise and Employment Act 2015 includes provisions giving pub tenants the opportunity to opt out of the tied arrangements requiring them to buy beer and cider from the owner of the pub and to choose to pay market rent for the premises instead. These provisions currently only apply in England and Wales. The Scottish Government is carrying out a study to determine how or if similar legislation should be applied to Scotland. We are strong supporters of implementing this legislation and are contributing to the study.
Minimum Unit Pricing
The Scottish Government has passed legislation to introduce minimum pricing for alcohol. During 2015 this legislation was the subject of a European Court of Justice hearing. The final opinion of the European Court of Justice, published in December 2015 indicates that the Scottish Government can implement minimum unit pricing provided it can be shown to the satisfaction of the national courts that it is the most effective measure. The Scottish Government is pushing ahead with this final stage of the legal process. We believe that minimum unit pricing is an important step in tackling irresponsible consumption of alcohol and, as such, we remain highly supportive of its implementation. The Governments in Ireland, both in the North and in the Republic, are also proposing to implement minimum unit pricing and we are supporting these plans as well.
Responsible Drinking Initiatives
We are committed to promoting responsible drinking in all the markets in which we operate. In addition to adhering to the relevant guidelines and legislation, we have also implemented a number of additional programmes to promote responsible drinking.
The Irish Government unveiled its Alcohol Bill 2015 during the year which includes many far-reaching initiatives to tackle the harm created by the misuse of alcohol in Ireland. This includes the introduction of minimum unit pricing, restrictions on advertising and improvements in health labelling. We have welcomed these initiatives as we believe that it is important to balance consumers’ relationships with alcohol in order to maintain a sustainable business.
We also expanded the distribution for our 0% version of Tennent’s, Hee Haw, and, as part of our plan to have a wide range of alcohol free alternatives, we launched Magners 0% alcohol cider during the year.
We have further developed our non-alcoholic product range, with increased marketing and promotion behind the Finches and Tipperary brands in Ireland, and we launched our new JWV+ soft drink product.
At T in the Park, Tennent’s operated ‘Be Chilled’ at T in the Park, which comprises a facility for consumers camping at the festival to pre-order and collect chilled Tennent’s Lager to encourage trading down.
Developing, engaging and rewarding employees fairly is fundamental to the success of our business and also to the relationships that we have with the local communities in which we work.
We are an equal opportunities employer. We aim to create a working environment in which all individuals are able to make best use of their skills, free from discrimination or harassment, and in which all decisions are based on merit. We have a formal equal opportunities policy that commits us to promoting equality of opportunity for all our staff and job applicants. For our operations in Northern Ireland this includes adherence to the MacBride Principles. Our policy states that we do not discriminate on the basis of age, disability, marital status, ethnicity, creed, sex or sexual orientation. The policy also requires our staff to treat customers, suppliers and the wider community in accordance with these principles as well.
Health and wellbeing of employees
There has been a significant improvement in safety, health and environmental performance in FY2016. This includes an overall reduction in Lost Time Accidents (LTAs) with a 42% reduction across all sites compared with FY2015. Our Shepton Mallet Cider Mill has completed 500 days LTA free and there has been an 80% reduction in LTAs in our Borrisoleigh plant compared with FY2015.
There has been a 35% reduction in all accidents compared with the prior year and staff engagement levels in safety and health continued to increase at every site. Our Wellpark brewery led the way in the Group safety behaviour programme with a 65% increase in staff engagement versus the prior year. Significant improvements were also seen in both Shepton Mallet and Borrisoleigh. Specific focus however continues in Clonmel, which had an increase in LTAs in FY2016.
Site Safety Days have been instrumental in activating a proactive safety culture and in making employees fully aware that they are accountable for their own health and safety as well as for those around them. In particular, high impact lectures delivered by Health and Safety experts continue to be effective. Health and Safety Managers formed a collaborative network across all sites sharing best practices, support and driving engagement.
Occupational health services are offered at all our manufacturing sites to treat work related injuries, provide annual health checks and support health awareness programmes.
The manufacturing sites strive to improve employee engagement through an active programme of team briefs, team building days, safety days and social events which are used to support local clubs and charities.
A focus for FY2016 has been to support those employees who may be leaving the business in the next financial year as a result of the closure of the Shepton Mallet Cider Mill and Borrisoleigh manufacturing sites. A suite of support has been put in place at both sites.
In Shepton we have provided up to £500 per person for external training to strengthen their skills when looking for alternative employment. In addition we are working in partnership with the Department of Work and Pensions locally to ensure individuals are “job ready”. This will be done through ensuring current skills such as fork lift truck licences or engineering qualifications are up to date. In addition we will provide training for CV writing skills as well as interview techniques. We are also working closely with local employers and recruitment agencies and will be holding a jobs fair on site for those leaving the business to support redeployment in the local area.
In Borrisoleigh, the focus has been on redeployment to Clonmel where 69 additional roles have been created. The business has committed to retraining individuals who wish to transfer to Clonmel as well as an extended trial period and travel support during the period to support a smooth transition. For those leaving the business, a support programme is being put in place to enhance employment opportunities outside of the C&C Group.
Another key focus has been to improve capability in our sales teams across our business. This has taken place through training on a new approach to selling and negotiation skills training. In addition there have been leadership initiatives to further develop our managers across the business.