Presentation by Jamie Mitchell, managing director, Innocent Drinks - at the CBI Climate Change Summit, Tuesday 2 December 2008

1. Engaging employees,
and other lessons in sustainability
November 2008

2. agenda
o An innocent story
o What is sustainability?
o Three lessons

3. a tale of two ideas
innocent started as a three friends with one simple aim
Make life a little bit better and a little bit easier

4. a tale of two ideas
This revolutionary thinking led us to their first idea
The amazing electric bath

5. a tale of two ideas
Fortunately their second idea had more merits
The fruit smoothie

6. from small acorns
We started small

7. our products
Today we have a family of smoothies for all occasions

8. our new products
And in the past two months, 2 new ranges have been added
Orange Juice Veg Pots

9. europe
From a UK base we are now sold in a few other places too
9

10. growth
All of which has delivered some amazing growth over the years
120 114
Revenue 100
£ Millions
80 75
60
38
40
20 17
11
4 6
0.2 1.4
0
1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: innocent Ltd management accounts, 2006 budget

11. agenda
o An innocent story
o What is sustainability?
o Three lessons

12. Why do we want to be
sustainable?

13. core philosophy
An over-riding principle by which we make all decisions
Create a business we
can be proud of
a.k.a The Nursing Home Test

14. company values
This drives our 5 values
Create a business we can be proud of
Be Be Be Be
natural entrepreneurial Be commercial generous
responsible
• Keep it human, • Chase opportunities • Create growth and • With time where
put people first and be responsive profit for us and needed
• Leave things a little
our customers
• Make 100% • Be creative and better than we find • With praise
natural, challenge the status them • Be tough, and be wherever possible
delicious, quo fair
• Move towards only • With wealth with
healthy stuff,
• Prove it can be done zero or positive • Think clearly, act those that deserve
100% of the time
impacts decisively and it
• Act and talk keep the main
naturally, thing, the main
treating others thing
as you would
want to be
treated.

15. What is sustainability?

16. We think sustainability is about…
Leaving things a little bit
better than we find them

17. business value from sustainability
Continuous innovation Planning for the future
Long term Stay competitive, realise major The sustainability of our planet, and
product or cost improvements communities ensures the
through clean technology. sustainability of our business
Cost and risk reduction Brand reputation and legitimacy
Short term
Lower costs and risks by reducing Gain trust and loyalty of customers,
resource use. suppliers and employees
Internal External
Source: S. Hart 1997, Beyond Greening: Strategies for a sustainable world

18. being sustainable
There is no perfect solution – it’s a balancing act
Planet
Viable natural
environment
Sustainable
development
People Profit
Nurturing Sufficient
community Economy

19. sustainability strategy
Our sustainability strategy has 5 key elements
Made from
In market Sharing some of
Produce 100% socially and Produced by a
leading wealth created
healthy, 100% environmentally resource efficient
sustainable with people who
natural drinks conscious business
packaging deserve it
ingredients
100% ethical sustainable resource sharing the
natural ingredients packaging -efficient proceeds
drinks business

20. sustainability strategy
Firstly we need to only make natural healthy products
Made from
In market Sharing some of
Produce 100% socially and Produced by a
leading wealth created
healthy, 100% environmentally resource efficient
sustainable with people who
natural drinks conscious business
packaging deserve it
ingredients
100% ethical sustainable resource sharing the
natural ingredients packaging -efficient proceeds
drinks business

21. product has to be inherently sustainable
Natural drinks that tastes good and do you good
100% natural fruit
Never, ever from
concentrate
2 portions per
bottle
Naturally low GI

22. sustainability strategy
Buying ethical ingredients
Made from
In market Sharing some of
Produce 100% socially and Produced by a
leading wealth created
healthy, 100% environmentally resource efficient
sustainable with people who
natural drinks conscious business
packaging deserve it
ingredients
100% ethical sustainable resource sharing the
natural ingredients packaging -efficient proceeds
drinks business

23. ethical ingredients
We want to buy our fruit from farms that look after both their workers
and the environment

24. ethical ingredients
We really like the Rainforest Alliance
1. Covers both social and environmental issues
2. Encourages farms to build their skills
and capabilities
3. Works with all types and sizes of farms
4. Undertaken by local NGOs
All our bananas are from Rainforest Alliance certified farms.
We also buy some RA certified pineapple and passion fruits, and have given the
RA 3 years of funding to increase the amount and variety of certified fruit.

25. innocent standards
For other fruits, we have now developed our own comprehensive
minimum standards

26. sustainability strategy
After the fruit, its about the packaging
Made from
In market Sharing some of
Produce 100% socially and Produced by a
leading wealth created
healthy, 100% environmentally resource efficient
sustainable with people who
natural drinks conscious business
packaging deserve it
ingredients
100% ethical sustainable resource sharing the
natural ingredients packaging -efficient proceeds
drinks business

27. Sustainable packaging
We look for 4 main sustainability criteria for our packaging formats:
1. To only use recycled or renewable materials
2. To use as little material as possible
3. To use packaging formats
with a low carbon footprint
4. To use packaging formats
for which there is a widely available
sustainable waste management option

28. reduce virgin finite materials
Last year we achieved our long-term ambition of
a 100% rPET bottle – a global first
100%
Percent
Recycled
80%
Material
60%
40%
20%
0%
2001 2003 2005 2007

29. sustainability strategy
We want to be as efficient as possible
Made from
In market Sharing some of
Produce 100% socially and Produced by a
leading wealth created
healthy, 100% environmentally resource efficient
sustainable with people who
natural drinks conscious business
packaging deserve it
ingredients
100% ethical sustainable resource sharing the
natural ingredients packaging -efficient proceeds
drinks business

30. the basics
We started with the things that just made common sense

31. suppliers going green
We have helped one manufacturer halve their use of land fill …
40
Landfill 35
Waste
(Tonnes) 30 54%
25
20
15
10
5
0
Mar April May June July

32. suppliers going green
… and move to renewable energy

33. sustainability strategy
Lastly, we want to give something back
Made from
In market Sharing some of
Produce 100% socially and Produced by a
leading wealth created
healthy, 100% environmentally resource efficient
sustainable with people who
natural drinks conscious business
packaging deserve it
ingredients
100% ethical sustainable resource sharing the
natural ingredients packaging -efficient proceeds
drinks business

34. The innocent foundation
• Our vision
To build sustainable futures for
the world’s poorest people
Support people dependent on subsistence
agriculture to build sustainable futures

35. The projects
In 2007 we supported 18 projects around the world, helping 58,000 people
on the path a more sustainable life

36. In summary
Good Business is
Good Business
• Lower costs
• Loyal customers
• Motivated team

37. agenda
o An innocent story
o What is sustainability?
o Three lessons

38. Lesson 1:
Engage every employee by
putting sustainability at the heart of your business

39. At the heart….
Make sustainability fundamental to your business, not an add on
39

40. innocent purpose
For innocent, sustainability is a key part of our business purpose
Make food good
Delicious Healthy Sustainable

41. shared accountability
And, rather than a separate function, innocent has put sustainability at the heart of it’s
business, with accountability shared across many teams
Sponsor
Technical Packaging Production
Rich
Lead
Jess

42. 500 hands are better than two
Everyone is trained, and every team has a champion
Teams who have completed Appointed sustainability champion:
adv. sustainability training:
• All international teams
• Products
• Technical, Production, Procurement
• Procurement
• PR, Marketing, Comms
• This Water
• Commercial, Consumers
• Scandi
• People, IT, Finance, Environment
• France
• Ireland
• Germany

43. Lesson 2:
Start measuring

44. One step at a time

45. carbon footprint
Until you measure it, you can’t identify the easy wins. Our 2006 carbon
audit lead us to set three objectives for 2007
800
Disposal
CO2 Use
per Unit 600 Distribution
(Grams)
Manufacture
400 Packaging
Material shipping
200
Growing &
Packing
0
250ml Bottle 1L Carton

46. 1. Reduced fertiliser use
Fertiliser use is a major contributor – our minimum standards and buying
certified fruit reduces its use
800
Disposal
CO2 Use
per Unit 600 Distribution
(Grams)
Manufacture
400 Packaging
Material shipping
200
Growing &
Packing
0
250ml Bottle 1L Carton

47. 2. Move to 100% recycled plastic
Packaging was the biggest issue for bottles – rPET reduced the total by 18%
800
Disposal
CO2 Use
per Unit 600 Distribution
(Grams)
Manufacture
400 Packaging
Material shipping
200
Growing &
Packing
0
250ml Bottle 1L Carton

48. 3. reduce our suppliers’ footprints
It was also clear we needed to help our suppliers realise savings
800
Disposal
CO2 Use
per Unit 600 Distribution
(Grams)
Manufacture
400 Packaging
Material shipping
200
Growing &
Packing
0
250ml Bottle 1L Carton

49. Lesson 3:
Engage your consumer

50. Our website
We keep our consumers informed of our sustainability work on our website, with
frequent blog posts too
Lesson 3: Engage your consumer

51. smoothie footprints
We worked with the carbon trust to launch carbon labelling, although we haven’t yet
put these on our bottles as consumer understanding of the concept is too low

52. consumer context
Instead, we have tried to make the information meaningful with our idea for a daily
allowance of CO2 per person

53. summary
We are at the beginning of a journey. We are no way near good enough.
But we know where to go, and how to get there.
Made from
In market Sharing some of
Produce 100% socially and Produced by a
leading wealth created
healthy, 100% environmentally resource efficient
sustainable with people who
natural drinks conscious business
packaging deserve it
ingredients