QUESTION TIME
uestiontime
Thismonth’s question:Justhowachievableis sustainablegrowthforFMCGcompanies?Isitpossible togrowmorewhilstusingless?
FMCG companies find themselves in an uncomfortable situation sometimes. If there’s ever any talk of ‘unsustainable’ practices, food waste or carbon footprints, FMCG brands, as they continually prosper, often end up shouldering a proportion of the blame. Is this because, unlike other industries, the FMCG sector has a presence in everyday life and therefore has the activities of its members more highly scrutinised? It seems that whilst many companies within the sector continue to grow, they have to make sure they use less resources in order to please consumers and in turn, continue to make profit and increase growth. It’s a Catch 22. To help the industry understand this cycle, the FDF recently released its report, Sustainable Growth in the Food and Drink Manufacturing Industry. Within it, Grant Thronton concluded that the industry can generate sustainable growth by building on its strengths and minimising weaknesses. So, panel, can an FMCG company grow more whilst using less?
JOE FRANSES Director of Corporate Responsibility & Sustainability, Coca-Cola Enterprises (CCE)
The ability to grow more whilst using less represents a significant challenge for all businesses and industries. However, at Coca-Cola Enterprises (CCE), everything we do is built on the belief that we can continue to expand our business in a responsible and sustainable way. In a world where natural
resources are stretched and stakeholder expectations continue to rise, sustainability is fundamental to the way we do business and for creating long- term value. Corporate responsibility and sustainability is not an add-on but an essential practice with genuine, tangible business benefits. Sustainability drives operational efficiencies and effectiveness, helping to create better relationships with suppliers, customers and other key stakeholders. It also helps us to build a company that our employees are proud of. Whilst reducing the amount of
energy, water and raw materials used in production has obvious benefits in terms of increased business efficiency, sustainability investment is not a ‘quick win’ and should be expected to deliver financial returns over the longer-term. For example, the initial cost of developing and installing new technologies will be offset against the eventual savings for the company in relation to operational costs.
20 | FMCG News |
FMCGNews.co.uk In some cases, as we look to
increase environmental efficiency across our whole value chain, our investments benefit both CCE and our partners. For example, installing energy management devices in our coolers can lower energy consumption by up to 35 per cent, which has a positive impact for both ourselves and our customers. Nevertheless, we believe that taking the lead in this area provides an important return for our business by helping to lower the overall carbon footprint of our value chain, as well as allowing us to add value directly to our customer base. Ultimately, it is hoped that the
measures we put in place will combine to enhance our reputation all the way through to the consumer, so that we are respected and trusted within our target markets and communities.
JEFF VAN DER EEMS Chief Operating Officer and Head of Sustainability Commitee, United Biscuits
Yes. It is possible to grow while using less and at United Biscuits we have been doing it for some time. Since 1995 we have reduced our carbon emissions by a third, our water use has reduced by 37 per cent since 2007, packaging has been reduced by 13 per cent since 2003 and transport emissions have dropped by 36 per cent since 2005 and, we are now also sending zero waste to landfill. During this same period our sales volume has steadily increased and we have opened a new
factory in India. Last year our energy per tonne of product dropped by over eight per cent in the UK. We have achieved this by
setting out clear published goals at the outset of our sustainability programme and then engaging our people who are the experts in our business to produce a range of initiatives that help deliver them. There has been some investment in a water recycling plant and developing lower energy oven burners but mostly this has been achieved through the systematic implementation of a huge range of smaller
initiatives.Most of these achievements have resulted in substantial financial savings for the business, which in part have been used to help fund our growth. There is of course a limit to
the savings that can be achieved simply through improving efficiency while volumes are increasing but we believe there are still significant savings to be made. For example we are looking at how we can re-use the heat escaping through our chimneys.We may also make greater use of renewable energy sources, as we are already using these in Belgium and Holland. In addition to improving our
own operations we are working on improving the sustainability of our supply chain. Since 2009, we have been one of the few companies that have been using sustainable palm oil. Our oil is segregated through the supply chain so that we can be sure that the oil in our products is from the sustainable plantations. We have strong relationships
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