Do we attract consumer interest for sustainable agriculture

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Do we attract consumer interest for sustainable
agriculture?

• Nestlé Nespresso AAA Sustainable Quality Program
• Karsten Ranitzsch Head of Green Coffee
• CIAA-SAI Platform Conference on Sustainable
  Agriculture
• Brussels 23.11.2007

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Attracting stakeholder interest in sustaining
highest quality coffee in three ways

• By integrating in the business model
• By sharing the values
• By engaging our stakeholders

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Attracting stakeholder interest in sustaining
highest quality coffee in three ways

• By integrating in the business model
• By sharing the values
• By engaging our stakeholders

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An Introduction to Nestlé Nespresso

• Nestlé Nespresso is a globally managed business
• Number 1 premium portioned coffee
• CHF 1 billion sales in 2006 (Ø annual growth rate
  30)
• With direct sales to 3.1 Million Club Members
• Represented in more than 50 countries around the
  world
• Over 80 boutiques in major cities
• 50 of sales via www.nespresso.com

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Our Value Chain
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Our pursuit of sustainable quality

• Safeguard the long-term supply of highest quality
  coffee
• Improve the quality of life in farming
  communities
• Reassure Club Members about our practices in
  origin countries
• Bring growers and Club Members closer together

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From value chain to value creation
Expecting highest quality coffee Interest in
provenance, authenticity Increasing awareness of
sustainability Prepared to pay premium prices for
sustainable quality Investing and sharing
economic value
Driving quality and productivity Applying the
principles of sustainability Creating micro- and
macro-economic value
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Attracting stakeholder interest in sustaining
highest quality coffee in three ways

• By integrating in the business model
• By sharing the values
• By engaging our stakeholders

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A commitment to stakeholder consultation
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Our joint commitment

• NESTLE NESPRESSO AND RAINFOREST ALLIANCE
• JOINT STATEMENT OF COMMITMENT FOR THE
• AAA SUSTAINABLE QUALITY FIVE YEAR PLAN
• 2007-2010
• In a spirit of partnership the organisations
  each commit to applying their organisational
  resources to steward the farms that participate
  in the AAA Program towards higher performance in
  quality and sustainability management practices.

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Shared Value Concept with Suppliers

• Sourcing AAA Sustainable Quality Coffee is a
  joint commitment

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This year 40 of total utilization from the AAA
Program
Green coffee utilisation
2005
2006
2007
2008
2009
2010
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Creating value Sharing value Costa Rica 14.
15. 11. 2007
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Attracting stakeholder interest in sustaining
highest quality coffee in three ways

• By integrating in the business model
• By sharing the values
• By engaging our stakeholders

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The drivers of stakeholder engagement to create
and share values
Vision Mission Values Strategy Objectives Commi
tment
Nespresso
Stakeholder
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The enablers of effective stakeholder engagement
Openness
to share, engage,
learn and change Knowledge transfer
leads
to better solutions Partnership
leading to
synergy Transparency and honesty
creating trust Long-term

thinking
Nespresso
Stakeholder
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Using online as a multi-stakeholder platform
www.nespresso-aaa-program.com
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Engaging with consumers

• Fundraising event for the 20th
  Anniversary Rainforest Alliance Gala in New York

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Engaging with consumers
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Engaging with consumers
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Media Engagement
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Nespresso AAA Summer Campus 20 International
Students
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AAA Summer Campus Documentary Video