Waitrose way Awards Winning Case Studies TREADING LIGHTLY Protecting and enhancing the environment has been

part of the way that Waitrose sources its food and drink for decades. Whether its reducing water use, minimising waste or cutting down on CO2 emissions, Waitrose and its suppliers are passionate about setting ambitious targets and finding innovative solutions. A great example is Waitroses energy centres that power, heat and cool branches cutting CO2e by up to 80%. This not only makes good business sense, but its the right thing to do Treading Lightly (Waste Reduction/Own Label) - Dalehead Foods The issue of waste in food production is a perennial ecological thorn in the side for producers. Waste is not only an environmental issue, it is an issue for the bottom line. The simple fact is that waste costs money. The winner of the Waste Reduction category is Dalehead Foods, which supplies all Waitrose fresh pork, bacon sausage, cooked meats, lamb and added value products. In a partnership spanning more than 30 years, Dalehead now operated five sites in the UK committed to maintaining and enhancing the unique supply chain that Dalehead and Waitrose operate. All the Waitrose own label British pork, ham, bacon and sausage lines are produced from piglets derived from sows kept outdoors in higher welfare systems. One of the disadvantages of these systems is the higher feed useage and cost compared with conventional intensive systems. This is caused by higher feed demand for exercise and variable climatic conditions; wastage due to the method of scattering pig feed and feed predation by bird species, especially gulls and corvids. Recognising the issue, Dalehead and its pig production company BQP, initiated a study to look at the ecological impact of higher welfare systems. The first output from the project was a bespoke pig-feeding system for both suckling and pregnant sows that led to a seven per cent reduction in feed usage. Although a seemingly simple solution, it has required considerable technical input and is seen as a game changer for the UK industry as a whole. The reduction in feed usage has led to: A reduction in the amount of feed being lost on the ground with a resulting decrease in nitrate and phosphorous loading. This equates to a saving of 4,000 tonnes per annum across the Waitrose supply chain. The reduce the amount of unwanted corvid activity around the pig units. This reduces corvid predation on ground-nesting birds. Make the Waitrose offer more competitive by narrowing the cost-base between high welfare and more intensive systems. Award judge Tristram Stuart said: This is a wonderful piece of work because it helps demonstrate that with some effort, higher welfare farming systems can compete with conventional intensive systems both on cost and environmental footprint. Jane Clarke, Waitrose Manager, Sustainability and Ethical Sourcing, added: Always ensuring that our suppliers adhere to the very highest levels of animal welfare is key a key requirement in the Waitrose Way, as is our commitment to reduce waste wherever we can in

our supply chain. This project is a great example of a piece of work that perfects fits in with both these important areas of our business. Treading Lightly (Waste Reduction/branded) - Vitacress Salads Ltd The winner of the Treading Lightly/Waste Reduction category is Vitacress Salads Ltd. This group of pioneering farmers based in Hampshire grow baby leaves that are sold a under the Steves Leaves prepared salads brand in Waitrose. Their entry describes their efforts to reduce food waste by packaging their tasty and nutritious leaves in smaller 40g and 60g bags. The smaller bags sizes were borne out of a desire to minimise food waste and distinguish their product to customers. Leafy salads are one of the worst causes of food waste with an estimated 37,000 tonnes at a value of 170m being thrown away each year. This equates to more than 25% of all the leafy salad thats sold to customers. The Steves Leaves brand was developed to tackle this issue head on. The idea was developed by a team at Vitacress that was charged with making their offer different. They decided they wanted to tackle the bad press that prepared leafy salads were getting in the food waste debate. A typical bag of salad weighs in at 100-180g while the Steves Leaves 40-60g bag provides one serving. The leaves offer customers something a little different too with unusual varieties such as Wasabi Rocket and Wild Red Rocket. Steves Leaves were the first branded salads offered to Waitrose customers and they complement the Waitrose own label range well. Working closely with the Waitrose team, Steves Leaves are building on the choice they offer and more of their leafy products will be appearing in Waitrose branches this year. The companys respect for the environment doesnt stop at packaging, they wash their leaves in spring water which is recycled to water the watercress beds. They are also committed to nature friendly farming practices and set aside 10% of their land to encourage all sorts of wildlife and wildflowers for birds, bees and butterflies to enjoy. This excellent biodiversity is clear to see at their farms in Kent, Hampshire, Wiltshire and Dorset in the Summer as well as further afield in Portugal and Spain during Winter. Laura Strangeway, Waitrose Manager, Sustainability and Ethical Sourcing said: We all need to accept responsibility for reducing food waste whether its in our shops or at our customers homes. A great deal of effort and resource goes into producing the food our customers buy so its important that they eat and enjoy it rather than throwing it in the bin. Steves Leaves have been selected as the winner for this category as their very simple concept of producing salads in smaller bags means our customers can buy as much or as little salad as they need. Tristram Stuart, added: Steves Leaves shone through as a company that is passionate about helping people enjoy delicious and nutritious food without creating unnecessary and costly waste. Their product is produced with real care for the environment and really does stand up to the Waitrose way.

Treading Lightly (Waste Reduction/branded) - Mornflake Cereals Mornflake Cereals, is Europes largest oat miller and supplies Waitrose with breakfast cereals including porridge, muesli and granola. Over 300 years ago, most mills were run by wind or water - Mornflake Cereals has returned to this tradition by commissioning one of Europes largest wind turbines in the grounds of its Scottish mill. The turbine generates four times the electricity needed to operate the mill, with the rest being fed back into the national grid to power 4,300 homes in the local area. The project involved five years of planning - including an extensive consultation process with the local community, which received no objections. This initiative saves over 4,000 tones of C02 emissions every year. Quentin Clark, Head of Ethical Sourcing and Sustainability at Waitose, comments on the winning entry: Mornflake Cereals have gone back to basics by using wind to run their business in a more sustainable way. As well the business and the environment benefiting, they are feeding electricity into the local community and offering Waitrose customers quality oats that have been produced with a clear conscience - a real award winning solution. Judge Zac Goldsmith MP comments on the award: "Mornflake Cereals has combined tradition with technology to develop an environmentally conscious solution for their business. This pioneering initiative has not only reduced costs for the business but it cuts their CO2 emissions by over 4,000 tonnes a year. The benefits don't stop there as surplus power is also fed into the national grid for the benefit of the local community." Treading Lightly (Water Reduction/Brand) - The Jordans & Ryvita Company The use of water in manufacturing and agriculture is one of the most topical issues at the moment and Waitrose is working hard to minimise the use of water in the business, including work with our farmers and growers. The winner of the Water Reduction category (brand) is the Jordans & Ryvita Company who produce wholegrain breakfast cereals, cereal bars and crispbread products. The Jordans and Ryvita Company has a long history of caring for the environment, primarily through its Conservation Grade farming scheme first launched in 1985 to help restore biodiversity to UK farmland. The company is now expanding its CSR focus to look at a range of supply chain interventions relating to water, waste and Greenhouse Gas reductions. Its focus on water has led the business to: Reduce the amount of water used in the crispbread manufacturing process by modernising the dough-chilling system. This has reduced water waste and saved ca 60,000 litres of water per year. This has improved conditions at the factory and removed the need for the use of hazardous chemical refrigerants on site. This is only the third process change in the manufacturing history of Ryvita. Commenting on the award, judge Dame Julia Cleverdon said: This award demonstrated that bold thinking is necessary to garner real environmental benefits. This was only the third

process change in Ryvitas history and given the iconic status of the product, the decision will not have been taken lightly. However, the results have not changed the quality or taste of the product in any way and yet has resulted in the removal of 60,000 litres of water every year from the manufacturing process. A tremendous effort. Waitrose Head of Sustainability and Ethical Sourcing Quentin Clark said: This is a tremendous result in a difficult area. Heritage manufacturing processes for long-established brands such as Ryvita can be difficult to modernise without affecting the product. Ryvita bit the bullet and did just that in a hugely successful way that they should be enormously proud of. Treading Lightly (Water/own label) - Wealmoor Ltd The winner of the Treading Lightly/Water category is Wealmoor Ltd a leading supplier to UK retailers, the food and wholesale sectors. The company specialises in growing, importing and marketing fresh exotic fruit and speciality vegetables. They pride themselves on exporting horticulture in a responsible and sustainable way. Wealmoor has been working across its UK packaging sites and with its growers to use water more efficiently to protect natural resources. They have invested in increasing the quality of green water and reducing the use of potable water. Their application focuses on two water conservation projects: 1. The installation of an underground pond to capture rain water at their packing site in Atherstone on Stour which has led to an 80% reduction in potable water consumption. The pond captures rainwater through channelling on the roof and ground water. It is located under the carpark to ensure the sites footprint didnt increase and there wasnt any subsequent impact on the wildlife habitat. It acts as a break balancing pond to eliminate the risk of flooding into local rivers. The rainwater collected is used for grey water toilets. Borehole water is used for cooling towers and non-essential water supplies. They have also installed electronic flow taps to improve efficiency and minimise environmental impact. Since these measures were introduced theres been an 80% reduction in potable water usage and a 140% increase in consumption of green water. This has led to an 80% reduction in utility costs at the site. Whilst the initial installation costs were significant, they should be recovered within 15 years. 2. Working with Kenyan grower KHE to complete the largest dam in Kenya. Work on the 1 milllion cubic metre dam is nearing completion. The aim is to provide a year round water supply during the dry and rainy seasons. This is the first time the farm has had water for 52 weeks of the year. A 45% increase in revenue us expected due to water security. It will also lead to increased employment at the site offering 800 people job security and improved skills. Farm workers with no previous experience were trained to operate the earth moving equipment to build the dam. 26 year old Jogo, a former street kid in Nanyuki, was employed as a tractor driver on the farm. He has now been taught to drive a bulldozer and is said to be one of the best drivers the project manager has ever seen.

As well as using the water to grow crops, the dam will provide water supplies for two schools and two police stations, which previously had severely rationed water supplies during dry months. The dam will also create a unique natural habitat for a variety of local wildlife. This includes a bird island and a baboon restaurant that provides food plus swings and chains to play on. On hearing about the ambitious plans for the project, the local project team shouted yawezekana which means we can do it and they really did! Wealmoor plans to share insights from both projects with the rest of their growers this July. The session will focus on how water management can save costs and limit environmental impact. Quentin Clark, Head of Ethical Sourcing and Sustainability at Waitose, said: Wealmoors entry is an outstanding example of the positive impact that sound water management can have on the environment and the bottom line. They have been determined and passionate about water management which is essential for sustainable production. The knock on effects that the KHE project had on local employment, skills and wildlife were phenomenal. Dame Julia Cleverdon said: The underground pond is a shining example of water management and the work of KHE in Kenya proves that extended growing seasons can bring huge benefits to local growers, wildlife and communities. The fact that Wealmoor plan to share learnings with the rest of their worldwide grower base is excellent news as the benefits are clear to see. Treading lightly (CO2e Reduction /own-label) - Barfoots of Botley Ltd Barfoots of Botley Ltd, based in Bognor Regis, supplies Waitrose with a wide range of vegetables including asparagus, legumes, courgettes, marrows, squashes, pumpkins, chard and sweetcorn. They were chosen by the judges as the own-label winner for the Treading Lightly category, for the fantastic lengths they have gone to, to dramatically reduce their overall CO2e emissions. This has included building the UKs first sweetcorn fuelled anaerobic digestion (AD) plant which converts all of the companys green waste into three times the amount of energy needed to power its processing facilities - with the residual amount being fed into the national grid. The residue left at the end of the AD process also provides an organic fertiliser which they use on their crops, creating a sustainable, integrated farming production system. The plant also means less tractor journeys are required to tansport waste saving 50,000 miles of diesel per annum. To date, the development has achieved a business CO2 offset of 125%. The judges were also impressed that Barfoots has set up a new business, Barfoots Projects Ltd, to offer project management advice to landowners thinking of building their own plants demonstrating their commitment to encouraging renewable energy usage.

Laura Strangeway, Waitrose Manager, Sustainable and Ethical Sourcing said: Barfoots have developed a fantastic solution that not only makes them self sufficient in energy at their processing factory but it also diverts waste from landfill. These are vital environmental issues that we champion under the Waitrose way and Barfoots is an outstanding example of how to rise to the challenge. Tristram Stuart, author and campaigner added: We must do all we can to halt the food waste scandal. This entry is excellent, Barfoots have mixed innovative technology with a determination to be sustainable. This has reduced their impact on the environment and saved money - which business wouldnt want to follow their lead?

CHAMPIONING BRITISH Waitrose has a long term commitment to supporting British farmers and growers. It believes in always getting the best out of seasonal food and produce. And encouraging its customers to choose British produce when its in season and at its very best. Winchester Growers Limited Waitrose is well-known for its horticulture offering and its cut flowers are very popular with customers. Given climatic considerations, cut flowers are one of the most difficult categories in which to bring to market a consistent British offering. The winner of the Championing British category, Winchester Growers Limited manages to do just that with more than 3,000 acres under cultivation in the UK, with sites at Spalding and Nocton in Lincolnshire and Penzance, Cornwall. The company has developed an additional portfolio of products that includes summer flowers and has seen strong financial performance over the past four years, thanks to its focus on British. Winchester growers is an integrated business with growing, packing and bulb trading operations. In 2011 the company helped Waitrose develop its UK flower sales and has seen some significant uplifts including: Speciality daffodil saw a +50% uplift y-o-y British lilies + 4.9% in a declining market. Worked to extend the season for a number of UK crops giving Waitrose a longer selling window. In 2011 Winchester Growers had the number one market position in more than 70% of its net sales areas. Largest grower of daffodils in the world with a unique seed stock in Cornwall.

Commenting on the award, judge, Dr Alan Knight said: This is a great example of a British business working hard to bring a real point of difference to British Horticulture. Waitrose customers can enjoy home-grown cut flowers for longer and Winchester can offer more employment opportunities to people in the communities their operations are based in." Waitrose Manager Sustainability and Ethical Sourcing Jane Clarke said: British produce is not just about fruit and veg, and Winchester offers a great example of a company doing great things for UK growers.

LIVING WELL Waitrose is passionate about helping its customers choose a healthy and balanced diet. This includes offering a range of delicious food under the LOVE Life brand, giving customers tips and advice about health and wellbeing in the LOVE Life magazine, clearly labelling products, and working in partnership with the Government to reach ambitious salt, fat and calorie reduction targets with no compromise on taste or quality. Dairycrest The winner of the Living Well category is Dairycrest who supply Waitrose with all their own label milk, butter, Davidstow cheddar and cream. Dairycrest has worked with the Waitrose team to develop the following products with lower fat and salt content: essential Waitrose 1% fat fresh milk gives customers an alternative to semi skimmed milk. essential Waitrose reduced salt butter launched in 2011 contains 1.7% salt. essential Waitrose Davidstow Lighter Cheddar - a healthier choice for customers launched in 2009 with nearly 4g less fat than its full fat alternative. The products have proved to be popular with customers: 64 tonnes of lighter cheddar have made it into Waitrose shoppers baskets. 19% of UK households buy 1% milk at least once a year (according to Nielsen 2011). Sales of reduced salt butter have risen 11% year-on-year. Commenting on Dairycrests Waitrose Way Award, Moira Howie, Waitrose Nutritionist, said: Dairycrest has been a link between Waitrose and its milk producer groups for many year and this award demonstrates our shared values. Working in partnership, we have proved that its possible to offer customers healthier alternatives without sacrificing quality or taste. Awards Judge Dr Alan Knight, added: Taking a responsible approach to health was at the heart of this brilliant entry. Dairycrest has made it very easy for Waitrose customers to choose healthier and delicious everyday products.

TREATING PEOPLE FAIRLY Waitrose believes in treating its Partners (employees), farmers and suppliers fairly, as well as supporting local good causes. Great examples include: the Waitrose Foundation which has raised over 4m to help thousands of farm workers in South Africa, Ghana and Kenya; and the donation of over 3m to 10,000 local good causes through Community Matters. Blue Skies Holding Ltd Blue Skies specialises in producing fresh-cut fruit and juice products from a network of factories in Africa and South America. It supplies a number of European retailers including Waitrose. The companys biggest factory is in Ghana where it employs more than 1,500 people and sources fruit from 100 small to medium sized farms. It is also home to the Waitrose Foundation in Ghana. To date more than 300,000 has been raised and around 10 projects completed in Ghana and South Africa including the construction of schools and latrines. Blue Skies believes in value adding at source whereby the raw materials are processed within the country of origin rather than shipped over seas for processing elsewhere. By doing this, as much as 70 per cent of the value of the finished product remains in the country of origin, compared with only 15 per cent if processing happens abroad. Blue Skies works within a framework it has developed called the Joint Effort Enterprise or JEE. JEE is a set of principles on which the business is founded to ensure a positive legacy for its operations and to strengthen the sustainability of the business with a culture of respect that focuses on problem solving without confrontation. Specific aims and objectives include: Enhancing job satisfaction among staff. Strengthening relationships with suppliers. Sustaining the natural resources on which the business depends. Gaining the support of the local community. Collectively responding to challenges and resolving disputes. Respecting local cultures and countering suspicions of neo colonialism. Ensuring we are profitable, but not at any cost. Dame Julia Cleverdon said: Blue Skies is an example of a business that has found success by doing the right thing. It is an inclusive and caring employer that obviously has the interests of the wider Ghanain economy at heart as demonstrated by its at home processing policy. Tina Varns from the Waitrose CSR Team said: The company has helped drive forward the principles of the Waitrose Foundation in Ghana while developing its own suite of fantastic engagement tools to ensure it is right at the heart of the local community and always making a positive contribution.