Annual Report 2014

CORPORATE RESPONSIBILITY

Highlights

In the year ended 28 February 2014:

  • Total water usage reduced by 4.12% despite an increase in production volume of 1% in ROI and UK.
  • Water usage in the packaging hall at Wellpark reduced by 80% after the installation of a water recirculation system.
  • The Tennent’s Training Academy has now trained over 13,000 students for the Scottish pub and hospitality industry.
  • Charitable activities increased with national and local charities supported in the UK, ROI and the USA
  • Increased commitment to the responsible drinking agenda.
  • Through our leadership of the UK national association of cider makers, we helped secure an excise duty freeze in the UK.

INTRODUCTION

The Group operates a corporate responsibility and sustainability policy at the heart of which lies the desire to meet the demands of its stakeholders in an economically, environmentally and socially responsible way as possible. This desire sits at one with the values of our organisation as sustainability not only reduces our costs but also reduces the impact our business has on the environment, and helps ensure a positive long-term future for the communities in which we operate.

ENVIRONMENTAL IMPACT & ENERGY+-

Our energy reduction teams in each of the Group’s manufacturing facilities seek to reduce our impact on the environment. Each team looks at ways of reducing consumption of energy and raw materials, waste going to landfill and greenhouse gas (GHG) emissions, and also looks at ways of increasing transport efficiency and packaging optimisation. Each team reports monthly to the Group Operations Director, who reports through the Group Chief Executive Officer to the Board.

Compared with FY2013, energy used per hectolitre of product produced in our manufacturing sites at Clonmel, Shepton Mallet and Wellpark fell from 8.24 kWh/HL to 8.20 kWh/HL, although our overall electricity usage increased from 37.8 million kWh to 38.2 million kWh in line with the increased production at these sites. We have reduced our natural gas usage at these sites from 88.2 million kWh to 88.07 million kWh despite the rise in production volumes, and we remain committed to reducing our electricity and natural gas usage. To this end we have developed a reduction target of 11% by the end of FY2015, against FY2012 as a base year. A set of KPIs was introduced at the Gleeson sites in July 2013 to monitor energy consumption, which include electricity use, gas use and diesel used in its fleet of distribution vehicles. Our electricity usage in our manufacturing site in Vermont in FY2014 was 1.6 million kWh.

Our manufacturing sites at Clonmel and Shepton Mallet continue to be accredited with the Environmental Management Standard ISO 14001; the facility at Clonmel also continues to be accredited to the Irish Energy Management Standard IS EN 16001:2009, and works closely with the Sustainable Energy Authority of Ireland (SEAI). These standards require us to demonstrate the systematic management of energy leading to a decline in greenhouse gas (GHG) emissions. Our facilities at Wellpark and Shepton Mallet continued to meet their regulatory targets in FY2014, and they continue to avail of the UK Government’s small emitters opt out scheme. The Gleeson sites are not yet accredited to these standards but have their own environmental management system in place. At Clonmel 100% of the electricity provided by our electricity supplier comes from renewable sources.

In Vermont 40% of our electricity usage comes from renewable sources. 25% comes from a scheme known as “cow power” which generates electricity from cow manure using methane digestors on dairy farms (and has achieved a reduction in carbon equivalent to planting 1,000 acres of pine forest), and a further 15% of the electricity purchased comes from solar power.

At our new apple-crushing facility in Portugal environmental projects include improvement in storage of fuel for boilers and associated efficiency improvements. Improvements have been made in the effluent treatment works and in respect of storage and collection of attributed wastes.

SUSTAINABLE LOGISTICS +-

FY2014 has seen a continuation of the focus on driving efficiencies in conjunction with our transport partners. During FY2014 our logistics partner in Scotland introduced a new tear-drop trailer design that has improved fuel efficiency by 5%. In another project, we have successfully trialled an exercise in Scotland with a major off-trade retailer, where we deliver products directly to their despatch centre, which will significantly reduce road mileage. We are also looking at rolling out similar projects to our other off-trade customers.

PACKAGING +-

We continually benchmark our packaging weights and we are either ahead or on a par with industry standards on most packaging materials. Measures taken this year to reduce the weight of our packaging include increasing the stretch of the pallet shrink wrapping (meaning fewer wraps per pallet), which resulted in a 3% reduction in plastic used over the year, and down-gauging shrink wrap, which saves 10% on the volume of plastic used. This was established in Clonmel in FY2013 and was rolled out to Shepton Mallet and Wellpark in FY2014.

At Wellpark, we have introduced shrink wrap packaging to replace trays and boxes. This improves the appearance of our packaging and also reduces the weight of a typical case by approximately 14%. At our Gleeson manufacturing sites we are trialling light-weight PET bottles. One of our main PET preforms (which are blown into full size bottles) has been reduced in weight from 44g to 41g. This will result in an annual saving of PET plastic of 76 tonnes.

Between 60% and 70% of the glass used in our bottles is recycled, and this is increasing. We have taken part in the Packaging Recycling Group Scotland where, alongside our work with Resource Efficient Scotland, we aim to make further advances in the recycling of packaging. This involved a detailed analysis of packaging throughout our supply chain.

At Vermont our cardboard packaging is made from 100% recycled materials, and over 113 tonnes of waste packaging was recycled in FY2014. There is also a policy of reusing materials on site, which includes using shredded paper for packing samples.

Another project completed in FY2014 for our international business is the introduction of new non-returnable polyethylene kegs, which are recycled by approved recycling operators in the country of destination. This eliminates international transportation of empty steel kegs back to the UK and ROI, and will significantly reduce the Group’s overall carbon footprint.

CARBON CONSUMPTION+-

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 has participated in the Carbon Disclosure Project (CDP) Supply Chain Programme for a number of years, and CO2 emissions for the Group are evaluated annually and posted on the CDP website at www.cdproject.net. In the CDP Ireland Report 2012 (which is the most recently available report), the Irish CDP respondents’ average disclosure score was 78%; the Group scored 96% and was second in the consumer staples sector. The CDP Ireland Report 2013 report will include data from Gleeson sites for the first time.

Scope 1 and 2 CO2 emissions in FY2014 are broken down across our manufacturing sites as follows:

Clonmel:

7,732t

Shepton Mallet:

8,515t

Wellpark:

18,123t

Other offices:

1,008t

Vermont:

1,240t

CO2 emissions for our Gleeson sites will be included next year.

In ROI 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.

Each year we ensure compliance with national packaging regulations for our products placed into the marketplace. In the UK the actual sale volume of packaging recycled in the calendar year 2013, saved over 1,459 tonnes of CO2 equivalent. In ROI we also recovered and recycled 2,259 tonnes of CO2 produced by the cider fermentation process and used it to carbonate our products.

We have also installed a solar power facility in Vermont, which was developed through All Earth Renewables. Dubbed the “Solar Orchard”, this has produced 239,345 kWh of electricity in FY2014.

WASTE+-

We have systems in place to maximise the recycling of the waste that we produce and minimise what we send to landfill. Our ultimate goal is to recycle or recover for reuse 100% of our process waste products. In FY2014, our manufacturing sites at Clonmel, Shepton Mallet and Wellpark reduced the overall amount of waste sent to landfill by 6%.

At Clonmel our recovery and recycling rate was 100%, and we sent no waste to landfill as all non-recycled waste was converted to RDF (refuse derived fuel).

At Shepton Mallet our recovery and recycling rate was 86%; the amount of waste sent to landfill in FY2014 rose to 66 tonnes (from 50 tonnes in FY2013) due to major civil projects at the plant. In FY2015 the site will be sending any residual waste to an RDF facility thereby diverting all waste away from landfill.

At Wellpark no waste is sent directly to landfill. The amount of waste sent by our third party waste management contractor to landfill dropped from 70 tonnes in FY2013 to 47 tonnes in FY2014, a 33% reduction, and as of January 2014 we now (in close collaboration with our waste management provider) divert all waste at Wellpark from landfill to an RDF facility. We have also continued our project with Zero Waste Scotland to identify waste reduction opportunities along our supply chain.

At Gleeson’s Borrisoleigh site, the average amount of waste sent to landfill was 38 tonnes per month for the first six months of FY2014, which we reduced to an average of 11 tonnes per month for the last six months of FY2014. We intend to reduce this yet further in FY2015. In Vermont there is a recycling programme for all industrial waste materials.

WATER+-

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. The results of the 2012 CDP report (which is the most recently available report) are available on the CDP website. The 2013 CDP report (due out later this year) will also include water usage from the Gleeson manufacturing sites.

In FY2014, despite production volumes increasing, our total water usage at our Clonmel, Shepton Mallet and Wellpark sites dropped from 17.08 million hectolitres to 16.4 million hectolitres, equivalent to 3.53 hectolitres of water used per hectolitre (hl/hl) of product produced, a significant reduction on last year’s rate of 3.69 hl/hl and significantly better than the recognised brewing benchmark of 4 hl/hl.

Our aquifer protection programmes in Clonmel and Borrisoleigh have resulted in us retaining our successful accreditation to the Irish IS 432:2005 standard at both sites. Across the Group, we continue with our projects on brewery condensate recovery, reclaiming pasteuriser and bottle rinse water, fruit processing, and minimising plant and process cleaning systems, and in FY2014 we recovered and reused just under 255,000 m3 of biogas from our anaerobic waste water treatment plant in Clonmel for use as fuel for our boilers.

A project successfully implemented in the packaging hall at Wellpark has stopped water being drained away after use in the pasteuriser; instead the waste water is cooled and then recycled through the process again and again. This has resulted in a reduction in water use of 80%.

PROCUREMENT +-

The implementation of our sustainable and ethical procurement policy is monitored by the Board via the Group Operations Director, and each business unit is required to demonstrate compliance with this policy by providing access to its audit and review records, its procedure manuals and its staff training materials for audit purposes.

Our central teams in procurement and technical services actively audit our suppliers’ track record in environmental management, health and safety, sustainability and corporate social responsibility.

We proactively audit and approve our existing supplier base after reviewing responses to a supplier approval questionnaire. This questionnaire specifically asks for details in the management of environmental, health and safety, sustainability and corporate social responsibility.

We seek to support our suppliers through entering into long term supply arrangements with our suppliers of apples and barley, our key raw materials.

GREEN PRODUCTION+-

In FY2014, we milled 70,000 tonnes of apples in our milling operations across the Group. We are also encouraging apple growers to plant early harvesting varieties to increase the availability of apples in the off season.

We encourage sustainable agricultural practices and the preservation of biodiversity. In the UK we are actively involved in the National Association of Cider Makers (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.

In the USA, as part of our support for Earth Week 2013, we ran an American Forests Promotion. This promotion meant that for each new Facebook ‘like’ or newsletter sign up we received during Earth Week, a tree was planted in that person’s name. Since the promotion began in 2010 42,033 trees have been planted.

As part of our support for the working landscape we provided $10,000 in matching funds for a grant to help Vermont Tree Growers study and implement a plan to increase cider apple production in the state. We are also members of the Vermont Fresh Network, which is an organisation focused on local companies buying from local farms. In FY2014 we purchased 300,000 US gallons (1.14 million litres) of Vermont apple juice, accounting for 40% of all processed apples sold in Vermont.

COMMUNITY ENGAGEMENT+-

During the last year a key element of our CSR strategy was transferring resources and efforts from national schemes to local initiatives that will have a more positive impact on the communities in which we operate. A significant part of this is our approach to charitable activities, where we aim to support charities that have a local impact.

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 ROI’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.

Dialogue with customers

Understanding the views of our stakeholders is an important part of our business. We seek feedback from our customers and our divisional managing directors are particularly targeted on the basis of their customer satisfaction results.

In Scotland our customer satisfaction is surveyed by an external surveyor. Overall satisfaction improved for our Tennent’s business unit, and our lead over our nearest competitor has increased. In the rest of the UK and ROI we decided to engage directly with our customers instead of undertaking external surveys and in Vermont we have a social media team that interacts directly with consumers on a daily basis.

ROI and Northern Ireland

We provide financial support through trade lending facilities to enable our customers to improve their on-trade premises so that they remain vibrant parts of the local community. In FY2014 we advanced a gross total of €5.6 million to our customers in ROI and Northern Ireland.

We support many cultural events across ROI, and the expansion of our portfolio in ROI to include wines and soft drinks has given us greater access to them than we previously enjoyed. As a result we now support a diverse range of sporting events from horse racing to the Dublin and Cork city marathons.

We are also supporters of live music events. Tennent’s Vital is Northern Ireland’s biggest music festival, and the annual sponsorship of this event by Tennent’s NI helps bring world-class musicians to Northern Ireland. In ROI, we continue to support the Forbidden Fruit Festival, the Body and Soul Festival and Bulmers Live at Leopardstown, which sees live music acts alongside evening racing events.

We also recently completed the construction of a craft beer brewery on the site of our cider mill in Clonmel. This new brewery facility will help us to capitalise on the growing craft beer market both in ROI and overseas, and it will also add additional investment and job security to the local community in Clonmel.

We are also using our brands to raise money for charities; for example in ROI we are contributing, via Tipperary Natural Mineral Water, special edition bottles of Kidz water towards the Irish Society for the Prevention of Cruelty to Children (ISPCC) to promote their ‘standing up to bullying’ campaign. We provide point of sale materials and have committed to spend €50,000 on other promotional activity, including PR, radio advertising and support at ISPCC events.

In addition to larger scale initiatives we also help local causes whenever we can. This included the donation of half an acre of land from a portion of our Clonmel orchards to Powerstown School, which will be used as a playground.

Scotland

For many years we have provided financial support through trade lending facilities to enable our customers to improve their on-trade premises so that they remain vibrant parts of the local community. In FY2014 we advanced a gross total of just under £13.3 million to our customers in Scotland.

In 2013 Tennent’s was appointed as the official beer for the veterans’ charity Help for Heroes, and we are now selling special edition packs of Tennent’s throughout the UK. All the profits from the sales of these products will go to the charity. In addition we are making the Tennent’s Training Academy in Glasgow available for ex-service men and women to be trained in new career skills.

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 13,000 people. The Tennent’s Training Academy was also the first in Scotland to run Public Licence Holder refresher training courses and we are now running these courses all over Scotland. In addition, we continue to support the modern apprenticeship scheme, with three modern apprentices currently working at Wellpark, and in conjunction with some of our customers we helped to set up 100 placements in the hospitality sector.

Tennent’s is a founding partner of T in the Park, one of the top music festivals in Europe, which helps bring some of the world’s biggest music stars to Scotland. The festival is now in its 21st year, making it one of the longest running music festivals with a single sponsor in the UK. We also continue to support Scotland’s unsigned music talent, and this year 16 artists will be offered the chance to play on the T Break stage at T in the Park.

The Group continues to sponsor Celtic and Rangers football clubs, and we donated sponsorship rights to Celtic and Rangers U19 and Women’s teams to promote the clubs’ respective charity foundations. As part of our relationship with Celtic football club we are donating a minimum of £150 to the Celtic Charity Foundation for every competitive goal scored in the 2013/14 season, and as at the end of FY2014 this initiative has raised over £10,000.

In partnership with the Celtic Charity Foundation we provided funding for 40 children from Smithycroft school in Glasgow to go on a sailing trip organised by the Rona Trust, an organisation that helps improve the confidence of young people through sailing experiences.

As part of our strategy to play a bigger role in the community of Glasgow we have opened up our brewery to the public, with tours now regularly taking place from our revamped visitor centre.

England

As part of the Shepton Mallet Cider Mill agricultural investment fund, in FY2014 we agreed to support local cider apple growers to plant a total of 270 acres (90,000 trees) of new cider apple orchards. We are also actively involved in the ‘Keeping Somerset Orchards Alive’ project to restore and plant traditional orchards and promote traditional orchard craft and local cider making.

We have continued our support for the local community through numerous local sponsorships, including sponsorship through our Blackthorn cider brand of Bristol City and Bristol Rovers Football clubs and Bristol Rugby club. We also support shows in the South West including the Royal Bath and West Show and the Mid Somerset Show and donate to various local groups and charities.

United States

Our Woodchuck and Magners cider brands have won medals in several prestigious competitions in the United States, a testament to the quality of our cider.

The events and festivals in which we are involved are carefully planned to ensure they adhere to all responsible drinking requirements. Our slogan “Revel Responsibly” is trademarked in the US and appears on posters and graphical elements we produce. This phrase is also used on related social media.

Our Vermont cider business is also active in the community. We donated $95,000 to nearly 100 different local groups and charities. Our biggest single donation, $50,000, was made to Survivorship NOW, a Vermont-based breast cancer survivor organisation, for whom we created a pink cider.

We are also keen to provide public access to orchards, and as part of that we are lead sponsor of, and helped organise a programme called “apples to iPods” in which consumers are invited to hunt for wooden apples hidden in the orchards which can be exchanged for an iPod.

Clean water for the developing world

Finally, in a charitable initiative that is working across our activities in the UK and Ireland, we are in discussions with One Water, a mineral water producer that funds clean drinking water boreholes in the developing world, to share our expertise in the production and sale of drinks products in order to help them become more efficient in their procurement and distribution operations and to increase the promotion and sales of their products. This relationship is in its early stages but we aim to enable One Water to increase the amount of money they can donate to the provision of safe drinking water in the developing world.

RESPONSIBLE DRINKING+-

Public Policy Leadership

In the past year, as a member of the Council of the Portman Group, we have implemented the fifth edition of the code. The updated code is now implemented across all of our marketing and promotional activity in the UK. Additionally, we used our extensive experience in music and sports sponsorship to lead the UK-wide implementation of a new sponsorship code.

During the last twelve months we held the Chair of the National Association of Cider Makers (NACM). 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/or alcohol generally. Through our leadership of the NACM, we helped secure an excise duty freeze in the UK.

On the global cider stage, with the NACM, we have supported the creation of the United States Association of Cider Makers (USACM) and we are represented on its board and legislative committee. We have worked on a revised definition for cider in the US allowing higher carbonation, which is more aligned to European levels. This change in ruling is in the early stages of the US legislative process.

Within Europe we are 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.

Local Government

During the course of the last twelve months a number of local authorities across England and Wales have implemented schemes to limit the sale of strong beer and cider. We have only a small commercial interest in these products; we continue to look at the best way of working with local authorities, as well as central governments, to tackle alcohol misuse, provided that it is not undertaken in a discriminatory fashion.

Public Health Responsibility Deal UK

In March 2012, the Group joined with the majority of the alcohol industry to pledge a reduction of one billion units of alcohol from the 52 billion units currently anticipated to be consumed in the UK up to 2015, with 30 million units of that reduction coming from the Group’s products. Following the disposal of the high strength Diamond White and White Star cider brands in FY2014, we are pleased to report that we have already achieved our element of this unit reduction. Nevertheless we will look to continue to reduce the number of alcohol units in our products by having a greater presence of lower alcohol products in our portfolio. The launch of Caledonia Best ale at 3.2% ABV and the forthcoming launch of Tennent’s Lemon T at 2.8% ABV are examples of our lower alcoholic strength product innovation.

Review of Alcohol Trade Body Memberships

During FY2014 we carried out a review of our trade body memberships. The basis of the review was to ensure that good value was achieved by us. The assessment was made by evaluating cost of membership versus the social benefits in terms of responsible drinking and associated community actions. In the case of four organisations we decided that we can achieve greater efficiency for our responsible drinking programmes, with more focused targeting of the public who consume our products, by working directly with our customers and consumers rather than continued membership of the national trade bodies that we chose to leave. As a result of this exercise, we are going to remain a member of Drinkaware but we have given notice to resign our memberships of The Portman Group (UK), the British Beer and Pub Association (UK), Mature Enjoyment of Alcohol in Society (Ireland) and the Alcohol Beverage Federation of Ireland (Ireland).

Notwithstanding that we will have ceased to be members of these trade bodies, we will continue to adhere to their codes of conduct where appropriate, and we remain fully committed to the promotion of responsible drinking.

Best Bar None

As part of our strategy on focusing on local customers and consumers with responsible drinking messages and activity we have joined 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. We are working with the Scottish Government, the NHS and the Scottish Police on quantifying the impact of Best Bar None on the number of hospital admissions and police incidents, as well as increased customer footfall in the areas where Best Bar None operates.

Scottish Government Alcohol Industry Partnership (SGAIP)

Tennent’s was a founding member of the SGAIP. The SGAIP has undertaken various initiatives over the last six years towards achieving a reduction in alcohol misuse in Scotland.

Minimum Unit Pricing

The Scottish Government has passed legislation to introduce minimum pricing for alcohol. This legislation is now the subject of judicial review as third parties have brought a legal challenge. We remain supportive of these proposals provided they are fairly, reasonably and proportionately implemented, and are part of an overall programme to reduce the abuse of alcohol. In other markets, including ROI and Northern Ireland, we support the proposals for minimum unit pricing on a similar basis to Scotland.

In England and Wales, during the last 12 months, the UK Government has decided not to progress minimum unit pricing at this point.

Responsible Drinking Initiatives

The Group has continued its commitment to responsible drinking messages throughout the last twelve months and we are an active member of Drinkaware. T in the Park leads the way in communicating responsible drinking messages. During the festival, Tennent’s once again 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.

USA

In the USA where we have increased our presence through the acquisition of Vermont Hard Cider Company, we are committed to promoting responsible serving and consumption of alcohol, and the “Revel Responsibly” slogan is frequently used in product advertisements, point of sale materials and social media to promote responsible drinking.

Overseas markets

We work with our distributors to ensure that the marketing and sale of our products in our international markets complies with all relevant local laws and regulations in this regard.

EMPLOYEES+-

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.

Information on the make-up of our workforce is contained in the table below:

Male

Female

Directors

89%

11%

Senior Managers

72%

28%

All Employees

78%

22%

Health and wellbeing of employees

In FY2014 there were 19% fewer lost-time accidents but there was a small rise in non-lost-time accidents at Clonmel, Shepton Mallet and Wellpark. This reflects an improvement in reporting as well as a reduction in serious accidents. A Group-wide review of health and safety procedures has been introduced that follows any health and safety incident in order to ensure that best practice is shared across all sites.

Numbers of lost-time accidents in FY2014 (FY2013 in brackets) are broken down across our manufacturing sites as follows:

Clonmel:

1 (7)

Shepton Mallet:

10 (9)

Wellpark:

2 (0)

Gleeson (all sites):

6 (July 2013 to end FY2014 only)

Portugal:

0 (August 2013 to end FY2014 only)

In FY2014 we introduced a safety behaviour programme across Clonmel, Shepton Mallet and Wellpark. This requires all employees to report hazards, near miss incidents and any positive or negative safety behaviours across each site on a daily basis. In addition there are targets set to resolve any issues raised, to ensure that we continuously improve safety standards on all sites.

As part of this programme we also launched a ‘Safety Pledge’ initiative to engage our employees at Clonmel, Shepton Mallet and Wellpark in health, safety and wellbeing. The Safety Pledge is a set of values that we asked our employees to commit to, and the signatures of all employees are displayed on large 6ft x 4ft posters on each site to demonstrate their understanding and support for this initiative. In FY2014 Clonmel saw a decrease in lost-time accidents of 86%, and Wellpark maintained a low level of lost-time accidents. In FY2015 we will focus on reducing accidents on our other sites.

In addition we are continuing to focus on training and development for our employees, including machine specialist skills, business improvement techniques, compliance training and a comprehensive team manager training programme. The same programme is being rolled out at all the Gleeson manufacturing sites during FY2015. The Wellpark site successfully applied for and achieved accreditation from the Royal Environmental Health Institute of Scotland as a health and safety training centre. Occupational health services are offered at all our manufacturing sites to give annual health checks and health awareness programmes.

At the Gleeson sites a comprehensive review of the health, safety and wellbeing systems and controls was undertaken in FY2014 and a significant upgrade of facilities, equipment and work practices has been undertaken. This has included reviews of risk assessments, improved traffic and pedestrian management on site, specifically targeted training and improved communication and reporting systems across the sites.

At our new apple-crushing facility in Portugal, a significant focus has been placed on health and safety, and a health and safety committee has been set up; a number of safety improvements have already been implemented.

Personal Development

A performance management system was introduced for our employees at Wellpark. This included the setting of personal objectives for all members of staff, linked to the site’s objectives for the year. These ranged from improving right first time rates to improving efficiency to improvement in hygiene standards. Every employee was supported by a project champion and all received mid-year reviews to monitor their progress. This resulted in improved employee engagement and some notable improvements in the site’s performance. Clonmel, where the system had already been introduced, achieved 100% completion of their system and their mid-year reviews. Similar schemes will be introduced at our sites in Borrisoleigh and Shepton in FY2015.