Mondelez wellbeing broadsheet apr14 digital by Lucy Langdon

WELL-BEING NEWSLETTER Issue 2 — May 2014

COFFEE MADE HAPPY

COCOA LIFE

HARMONY

COMMUNITIES

MINDFUL SNACKING

ENVIRONMENTAL FOOTPRINT

Growing in Honduras The Power of Partnership Making Sustainability Work Fresh Faces

Bringing Cocoa Life... to Life! Partnering for Greater Impact Our Budding Community

People at the Heart of Harmony Zoom on Spanish Launch Rolling Out in Central Europe

Nourishing Our Communities Faster Disaster Response Meet the UK’s Sustainability Forum

Minding Our Business A Princely Example of Improved Nutrition

A Big Win in Vienna Philadelphia Gets Smarter

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THE VOICE A CALL FOR THE WELL-BEING OF OUR PLANET

THE WELL-BEING MANIFESTO

We believe in the power of big. And small. That great change can begin with a single voice. So we’re starting the call. To action. To change. To Well-being. A call built on simple foundations. Sustainability. Mindful snacking. Safety. Communities. Ideas born out of needs. All coming together. All forming one greater Well-being. Not just for our company, but for our world. Yet we are only starting the call. Because for the Well-being of everyone,

EVERY VOICE MUST BE HEARD. WILL YOU LEND YOURS?

A CENTURY OF WELL-BEING

How times have changed! Today’s Mondelēz International is very different from the company that started more than 100 years ago. But a century of cultural, societal and technological change hasn’t altered our core purpose: to create delicious moments of joy for everyone.

y keeping this promise through our brands, we’ve stayed relevant to our consumers. Today, because of the economic, environmental and societal challenges our world faces, it’s changing faster than ever before. Our business and brands will have to do the same if we want to continue to thrive. The fifth pillar of our strategy globe – our commitment to protect the Well-being of our planet – is our plan for doing just this. It means we can continue to grow our business while ensuring a better future for our suppliers, our farmers and our consumers. Our strategy covers the full lifecycle of our products and focuses on three key areas. First, we’re improving how our ingredients are grown. Our products rely on a sustainable supply of agricultural commodities. Through Coffee Made Happy, Cocoa Life and Harmony, we’re helping farmers increase their outputs and improve their livelihoods and their communities, while also protecting the environment. Second, we’re improving how our products are made. That means we’re reducing our operational footprint – using less water, energy and packaging materials, as well as reducing waste. By 2015, we seek to achieve a 60% reduction in materials sent to landfill sites.

We’re also committed to ensuring the foods we sell and the environments in which our people work are safe. Our loss time injury frequency rate and total injury rate are both down, and February’s Safety Month feautured our Work Play Live Safe campaign and 10 Golden Rules for drivers. This is great progress, but there’s more we can do to stay safe. Like holding the hand rail on the stairs, not using our mobile phones while driving, and always using personal protection equipment. And third, we’re improving how our products are consumed. By offering our consumers better choices, portion control options, and more detailed nutritional information, we’re empowering them to snack mindfully. We’re also supporting lots of community healthy lifestyle programmes, and are committed to responsible marketing. As the world’s largest snacking company, we have a huge opportunity to ensure a sustainable future for our industry and our planet. We have the size and influence to bring together and amplify voices from across the food industry – employees, consumers, community partners, NGOs, suppliers, farmers and investors. If we work together, we can ensure the future of our brands for the pleasure of generations to come. What better legacy can we leave than this?

SHARE THE GOOD NEWS!

If you’ve enjoyed this edition of The Voice, please share it.

TACKLING CHANGE SUSTAINABLY Hubert Weber EVP and President, Europe

elcome to the second issue of The Voice. This edition’s theme is creating change, what it looks like, how it happens, and what it means – inside our business, and around the world. I was lucky enough to speak recently at Chatham House – an independent policy institute in London. My subject was our global food system and Mondelēz International’s approach to sustainable business – and – no surprise, the concept of creating change for positive impact came up. I spoke about the 25 years I’ve spent in our industry. We used to think about food very differently – it only hit the headlines with tragedies like famine. And I highlighted the amazing things we’ve done to make our global food system work better. From improving yields to reducing water use; from increasing access to paying more fairly. But we live in changing times, and today’s challenges are new and bigger. Demand for food is rising, agriculture is threatened by a changing climate and there’s a global obesity pandemic. We must tackle these challenges in a sustainable way. Our Well-being strategy means we’re creating a food system that works for nature, people and our business, from production right through to consumption. You can read about our sustainable production programs from page 4, our work on sustainable consumption from page 7, and about the things we’re doing to keep our own house in order on page 8. But to see how we’re helping to create change in the global food system for good, just turn the page.

WELL-BEING NEWSLETTER Issue 2 — May 2014

THE WORLD LOOKS DIFFERENT WITH MONDELĒZ INTERNATIONAL IN IT

Our company is responsible for some of the world’s most loved brands; we’re a global snacking powerhouse. Over the last century, our business has thrived because it’s adapted so well. Today, our world faces new challenges. Many of these, from climate change to an obesity pandemic, demand a change in how we run our business. And when a business like ours starts to change, so does the world.

Thanks to the support of the Mondelēz International Foundation, the Red Cross has the resources to immediately respond to the needs of people impacted by disasters across our country and around the world.

OUR COMMUNITY PROGRAMS ARE CHANGING LIVES ACROSS EUROPE.

Partnering with communities to promote healthy lifestyles.

NUTRITION

SUSTAINABILITY

Empowering consumers to snack mindfully.

Securing sustainable supplies, and reducing our environmental footprint.

SAFETY

Read about our programs in Italy, France, Spain and the UK on page 7.

Keeping our employees and consumers safe.

COFFEE MADE HAPPY AND COCOA LIFE ARE REACHING THOUSANDS OF FARMERS ACROSS ASIA.

GERMANY

UNITED KINGDOM

POLAND

FRANCE GROWING HAPPY COFFEE IN HONDURAS.

CZECH REPUBLIC

We’re really excited about launching two new Coffee Made Happy projects in Honduras. 60% of Hondurans are directly or indirectly influenced by the coffee sector – and we buy more of their coffee than anyone else.

WE’RE FINDING NEW WAYS TO CUT OUR ENVIRONMENTAL FOOTPRINT ACROSS EUROPE. Our Philadelphia plant in Bad Fallingbostel is a role model for sustainability.

Find out all about the work we’re doing in Honduras and beyond on page 4 .

ITALY SPAIN

Find out why in the Philadelphia Gets Smarter article on page 8.

WE’RE EMPOWERING OUR CONSUMERS TO SNACK MINDFULLY.

DOMINICAN REPUBLIC

We’re proud of the steps we’re taking to reduce the sodium and saturated fat in our products, and to help our customers make healthy snacking decisions.

CÔTE D’IVOIRE HONDURAS

COCOA LIFE IN BRAZIL AND DOMINCAN REPUBLIC. Brazil is one of the world’s largest producers of cocoa beans, and the Dominican Republic isn’t far behind. So we’ll be scaling up our Cocoa Life programs in these countries in the year ahead. Find out all about the work we’re doing on page 5.

Find out more about this on page 7.

Our teams are doing some great work to help thousands of people – particularly children and young adults – live healthier lifestyles.

OUR COMMITMENT TO WELL-BEING IS MADE UP OF FOUR FOCUS AREAS: COMMUNITIES

Neal Litvack Chief Development Officer, American Red Cross.

BRAZIL

Find out what this means for France’s favourite biscuit – Prince – on page 8.

COCOA LIFE HAS LAID ALL THE FOUNDATIONS FOR SUCCESS IN TWO OF ITS MOST IMPORTANT ORIGIN COUNTRIES – CÔTE D’IVOIRE AND GHANA. “We’re kick-starting the transformation of our cocoa supply chain by improving the lives of the people who are at the very beginning of it – the cocoa farming communities.” – Cathy Pieters, Director of Cocoa Life. Hear more from Cathy on page 5.

GHANA

We’re already leaders when it comes to clear nutritional labelling – but we’re aiming to do even more. We have some stretching goals to help us make this change. Clare Leonard Director of Scientific Affairs, Regulatory Affairs and Nutrition. Find out more about this on page 8.

We’re empowering farmers to improve their lives and their communities via projects in India, Vietnam and Indonesia. In 2014, we’ll start using our coffee and chocolate brands to tell our Well-being story.

OUR HARMONY FARMS AND FACTORIES ARE SPREADING ACROSS FRANCE AND CENTRAL EUROPE.

Read about the latest from Coffee Made Happy and Cocoa Life on pages 4 and 5.

We’re working with 1,700 farmers in France, Spain, Poland and the Czech Republic. And we have 190,000 tonnes of Harmony wheat flour booked for the 2014 harvest – that’s a lot of biscuits! Learn more about the people at the heart of Harmony on page 6.

VIETNAM INDIA

INDONESIA

WELL-BEING NEWSLETTER Issue 2 — May 2014

COFFEE MADE HAPPY

COCOA LIFE

OUR BUDDING COCOA LIFE COMMUNITY

Cocoa farmers drying their beans.

THE POWER OF PARTNERSHIPS Interview with Victor Gfeller, Associate Director Strategy Sourcing Coffee.

COFFEE MADE HAPPY GROWS IN HONDURAS Honduras is coffee, and coffee is Honduras. The country is the number one Arabica producer in Central America, and 60% of Hondurans are directly or indirectly influenced by the coffee sector.

ut two years ago, leaf rust disease damaged around 30% of coffee trees in Honduras – severely hitting the country’s coffee farmers and economy. Coffee Made Happy is all about creating coffee farming entrepreneurs – equipping them to be stewards of their land, and building the foundation for healthier, happier communities. So our recent arrival in Honduras is playing a crucial role in the country’s economic recovery.

Emma Dixon, Kenco, Fulvia Aurino and Victor Gfeller, Coffee Made Happy , and Sofia Monge, Latin America CGA, together in Honduras

Kenco has a new mission: it’s called Growing Brighter Futures and its ambition is to create more opportunities for young people in countries like Honduras. Emma Dixon Senior Brand Manger, Kenco

very young person deserves a fair chance in life. But for many children and adolescents living in the countries where our coffee is grown, opportunities are few and far between. That’s because issues such as violence and remote living limit their access to resources and restrict their chance for self-improvement.

We’ve started two big skills and infrastructure projects which will reach 17,000 coffee farmers – about 10% of the country’s coffee farming population. But that’s just the start of our Honduras story. Read our interview with Victor Gfeller, Associate Director Strategy Sourcing Coffee, to find out about his recent trip to Honduras, the change Coffee Made Happy is already making, and the exciting plans we have for reaching even more Honduran coffee farmers.

Q. How can Coffee Made Happy reach more than 10% of the country’s coffee farmers? By making innovative partnerships. That was actually another purpose of my trip. Coffee Made Happy is a catalyst for big, positive change and there are lots of opportunities for synergies.

MAKING SUSTAINABILITY WORK FOR OUR BRANDS Senior Brand Manager for Kenco, Emma Dixon, recently visited Honduras – one of our biggest sources of coffee. Why? Because Kenco has a new mission: it’s called Growing Brighter Futures and its ambition is to create more opportunities for young people in countries like Honduras. This aligns closely with Coffee Made Happy’s core purpose: to equip the next generation of coffee farmers with the skills to become coffee entrepreneurs. And, in turn, to make coffee farming more attractive to younger generations. That’s why it makes so much sense for one of our most loved brands to leverage the fantastic work Coffee Made Happy is doing

Victor Gfeller

BRINGING COCOA LIFE… TO LIFE!

Q. You recently visited Honduras. Can you see the difference Coffee Made Happy is making? Yes, the difference is obvious. I saw two farms next to each other – one was part of our program, the other wasn’t. The Coffee Made Happy farm was much better organised; it looked healthier and cleaner. And the farmer was different too – he knew how to run his business, about production costs, and yields. Q. Can you tell us a bit about why you visited the country? I was reviewing and refining the new Coffee Made Happy project with our partners. I was looking at three things in particular: first, I wanted to make sure we all shared the same objectives; second, we discussed plans for execution and implementation; and third, we agreed on baselines and measurements.

in Honduras. Kenco already links their Rewards Club to the Coffee Made Happy programme – so that Kenco lovers can donate points to help farming communities. And later this year, the Kenco team is partnering with Coffee Made Happy in Honduras to empower young people whose lives are at a crossroads. The new project targets young people affected by the violence of gang life and offers them an alternative life in coffee farming. This helps us close the distance between our origin countries and our consumers, particularly mothers, who care deeply about these issues.

We believe that Cocoa Life is core to the long-term success of our business. And we want everyone in MEU to share that belief. That’s one reason we’re creating a Cocoa Life Ambassador community – to spread the word on Cocoa Life.

For example, our scale, reputation and ability to provide farmers with access to a market can be leveraged in really valuable ways. Like ensuring banks offer microfinance to farmer organisations, who they might otherwise avoid because of the risk. Suddenly, farmers can afford to buy fertiliser and other inputs they need, which increases the productivity of their land and improves their income. Q. Can you give us another example of how partnerships will help us scale? Sure. The vast majority of Honduran coffee farmers live in remote locations, so we need better infrastructure and more resources to reach them.

One way we’re doing that is by partnering with the ‘technicians’ of our suppliers. These are country experts who already work closely with the farmers. By sending our agronomists out with the technicians, we can spread Coffee Made Happy more quickly. Q. What inspires you the most about Coffee Made Happy? I love how closely we work with the farmers. We still rely on suppliers for purchasing, but now we’re a visible partner. And that means we can build long-term, rewarding relationships – which is a win-win, for farmers and for our business.

Their mission is: s To operate in the best interest of key stakeholders (Coffee Made Happy, the coffee farming community, Mondelēz International) s To supervise and control proper monitoring and measuring of the program s To add value in the forming of the vision, and guidance on implementation of the program The external advisors bring guidance, expertise and an external perspective to Coffee Made Happy. We chose them for their expertise in sustainability or in coffee. Once our reporting structure is fully established, these advisors will provide commentary on the progress of the Coffee Made Happy projects.

In 2013, Cocoa Life took some big steps towards our commitment to create empowered, thriving cocoa farming communities around the world. First and forermost, we set up our origin teams and established processes, such as a new cocoa verification system. We also brought Cocoa Life to life by engaging with governments and local authorities, and by helping our suppliers understand the value of sustainability in the cocoa supply chain. We establised ten KPIs, which we made public – two for each pillar of Cocoa Life: Farming, Community, Livelihoods, Youth and Environment.

Each KPI supports our action on the ground. For example, our work to support farmers to increase their productivity is measured by the Farming KPI of cocoa productivity. As Cathy Pieters says, “We’re kick-starting the transformation of our cocoa supply chain by improving the lives of the people who are at the very beginning of it – the cocoa farming communities.” All this has helped build a strong foundation for continuing Cocoa Life in 2014. Our programs in Côte d’Ivoire, Indonesia and Ghana will reach about 40,000 farmers and their communities. We’ll continue to test and improve Cocoa Life, building trust in our approach by publishing data about the impact we’re making. And, by the end of this year, we’ll know which brands will implement Cocoa Life by when.

ANDERS CARNE Public Affairs Manager, Upp. Vasby, Sweden. 2014 is also a year for more employee engagement. We want everyone in MEU to be able to share the excitement of Cocoa Life and feel inspired by what we’re doing in our origin countries.

I would like everyone in our team to take a little time, learn more about the program and become proud of our work with farmers and communities in the origins. Peter Seymour Marketing Director, Chocolate Category

FRESH FACES AT COFFEE MADE HAPPY... We’re very happy to announce that the Coffee Made Happy team is growing fast. As well as a new origin manager for Asia, who’ll be starting soon, we’re thrilled to introduce Gina Maria Canales. Gina will be joining the team in Honduras. An agronomist by trade, Gina has a lot of experience with development initiatives around the world – from Miami to Kyrgyzstan! It’s just another example of how Coffee Made Happy is creating change around the world.

We’re running a new communications campaign for Côte d’Or in France and Benelux. It raises awareness of the importance of cocoa farmers by imagining a world without chocolate. We’re bringing the campaign to life by telling the story of our work in Batéguédia – a cocoa farming village in the Ivory Coast.

The idea at the heart of the campaign is that passion is more rewarding when it’s shared. So we’re asking consumers to take action by using a code that they’ll find on their chocolate bars. For every code entered, we help cocoa farmers by providing them with shadow trees to protect their crops. This campaign has only been possible because of our partnership with CARE International. And, because it’s based on the principles of Cocoa Life, it’s helping to improve agricultural practices and increase farmers’ incomes in an empowering and sustainable way.

“I’m passionate about Cocoa Life because we can look a consumer in the eye and say that the cocoa in our chocolate is grown under decent conditions.”

INGEBORG GASSER-KRISS

PARTNERING FOR GREATER IMPACT

UPDATE ON STEERING GROUP The Steering Group for Coffee Made Happy consists of senior leaders and five external advisors.

As we start to see the impact of our work so far, 2014 is going to be an exciting year for Cocoa Life. Cathy Pieters, Director of Cocoa Life says “Cocoa Life beans will soon start flowing into our supply chain and our products.”

The growing community consists of 70 ambassadors – from right across our business. Each of them has committed to sharing their passion and expertise about Cocoa Life with other employees. It’s a great community to be a part of: ambassadors learn about sustainability, our business and employee engagement – all while supporting a program that’s improving thousands of lives around the world. But who better to tell you what being part of the Cocoa Life community means than the ambassadors themselves:

Director, Global Tablets, Zurich, Switzerland. “I feel proud that we’re acting like the visionary category leader we aspire to be.”

CLAUDIA MICELI Senior Brand Manager, Uxbridge, England. “This program will help us remain the best at what we do – not only at selling the best tasting chocolate to our consumers, but also at ensuring it is sourced in the most ethical way possible.”

GIOVANNA SOLITO Senior Brand Manager, Milan, Italy. “This project connects my daily job with the first and most relevant pillar of chocolate production: farmers.”

Above, Create buzz with an engaging big idea. Top right, Inform and prove our commitment. Right, Engage our consumers around the campaign.

If you want to know more and join the ambassador journey, email: CLAmbassadors@mdlz.com

WELL-BEING NEWSLETTER Issue 2 — May 2014

HARMONY

PEOPLE AT THE HEART OF HARMONY

COMMUNITIES

ZOOM ON SPANISH LAUNCH This year, the Harmony program is launching in the Spanish market with the Fontaneda brand. We spoke to some of the people closest to the program, Roberta Cigana, Senior Brand Manager Fontaneda, Iberia, and Esther Patino Ruiz, Corporate Communications Manager, Iberia, to find out why they’re excited about ‘Compromiso Harmony’ – the Harmony Commitment.

Castilla-León

“We’re thrilled to launch Harmony this year in Spain! Fontaneda already has a strong heritage, and Compromiso Harmony is a great opportunity for us to stay relevant to our consumers in a changing world. This became really clear in some focus groups we held recently, in which we explored the new Fontaneda communication. Harmony will help us build even more trusting and loyal relationships with our consumers.”

Navarra

Sonia Le Masne, the Marketing Manager of Harmony and Sustainability, knows that the success of our sustainable wheat program is down to the passion and the dedication of the people involved – both inside and outside our business.

ROBERTA

Aragón

“They are committed, open to change and up for the challenge of ongoing progress.” We’ve collected voices from across Harmony to share the latest news of the program’s growth, and their plans for the year ahead.

Above, Map of new Harmony sites in Spain. Right, Fontaneda launches with Harmony. Below, A Harmony field planted with wheat and flowers in Spain. Below left, Map of Harmony sites in Europe.

ESTHER “We’ve begun our Harmony journey by introducing the program to some of our key stakeholders. We wanted them to know about our commitment to sustainability and Fontaneda’s bond with its agricultural community. The outcome has been fantastic – they appreciate our commitment and our innovation. And now we’re starting to spread Harmony among consumers with a media relations plan that tells our story in a compelling, emotional and effective way. And we’re really excited about introducing Harmony to our employees in our next Townhall.”

A PROUD SPANISH FARMER COOPERATIVE In Spain, 160 farmers are partners of the Harmony program. They choose their best fields to apply the Harmony Charter. That’s because they know they are the first link in a chain – and the most important one. Speaking on behalf of my cooperative, I’m very proud to be part of this innovative approach. Gorka Azpicueta, Group AN.

ROLLING OUT IN CENTRAL EUROPE This year, Harmony is also starting to work with farmers across Central Europe. We spoke to Balazs Szabo, a wheat buyer, and Mateuzs Gutsche, a miller, about what Harmony means for them:

NOURISHING OUR COMMUNITIES One way we’re fulfilling our commitment to communities and nutrition is through health programs in the countries where we operate. Here are four of our most impactful programs:

Germany: Klasse2000 Klasse2000 is Germany’s largest program for promoting healthy lifestyles and violence prevention in schools. We’ve been working alongside teachers and health partners for the last five years, to help children from first to fourth grades improve their health and life skills. Over that time, we’ve invested $1.5 million in everything from exercise through play and healthy diets, to relaxation and dealing with strong emotions, like stress. Spain: TAS In Spain, we are working with the Alicia Foundation on TAS – a project that provides Spanish children with the education and practical tools needed to improve their eating habits and lifestyles. So far, the initiative has reached around 30,000 youths. Recently an evaluation conducted to study the eating habits of students in over 92 schools in Spain took place. Each school presented a proposal on how to improve their students’ eating habits and opportunities for physical activity. After analysing these, an expert panel chose 10 schools for specific focus. Once the program finishes in late 2014, the online tools will be available for wider use. And our great work is being recognised! We’ve won a number of awards, including the prestigious NAOS Award for promoting healthy eating habits in schools, bestowed by the Ministry of Health.

Mateuzs: The Harmony program is fundamentally changing how I and other millers work with Mondelēz International. But for the better. It leads to a much closer partnership between us and the farmers. Harmony is going to be a challenge, but it’s important and I know we can do it. I’m proud to be able to call myself a Harmony partner.

UK: Health For Life Health For Life is our five-year $5 million program for encouraging healthy lifestyles. We’ll reach around 60,000 pupils, as well as parents and school staff from about 50,000 households in the South Birmingham area. The initiative is successfully getting more and more people to take part in growing food, physical activity and healthy cooking. It’s delivered through primary schools, secondary schools and the wider community around our Bournville site. More than 400 Mondelēz International employees have supported the program so far, helping to create growing areas for fruit and vegetables within schools and on communal ‘green gym’ sites.

Top: Save The Children, Italy (Photo: F. Alesi). Above left, TAS, Spain. Above right, Klasse2000, Germany. Left, Health For Life, UK.

INVESTING IN FASTER DISASTER RESPONSE

E Balazs: My job has changed as a result of Harmony. Now, it’s about much more than buying: I’m also building strong and efficient partnerships with our key suppliers. Many of the ideas behind the Harmony program are new for Central Europe, so we have to think differently about how we work to make sure the Harmony agricultural and biodiversity practices are well implemented. It’s a step change, but I’m excited about it!

Italy: Ready, Steady, Go Ready, Steady, Go is our awardwinning collaboration with Save the Children. We’ve been working with the charity for four years, investing millions of dollars into helping children who face hardships receive better nutrition education and access to healthy lifestyles. To do this, we’ve held a whole range of classes, from cooking to personal hygiene and self-esteem; we’ve run sports tournaments and group games; and we’ve provided free, expert nutrition advice to parents. And any employee who wants to can support Ready, Steady, Go through volunteering or payroll donations.

MEET THE UK’S SUSTAINABILITY FORUM

very minute counts when disaster strikes. That’s why we’re using an innovative donation approach to give $2 million to two disaster relief organizations. By donating before disaster strikes, they can respond more quickly when it does.

Over the last 25 years, we’ve given more than $1 billion in money and food to charities. Now, we’re supporting the International Federation of Red Cross and Red Crescent Societies (IFRC) and the American Red Cross.

We’re also supporting the Red Cross in France, where we’ve donated $1.6 million since 2011 to support a healthy eating program. We aim to provide 50 million additional meals and enough fresh fruit, vegetables and proteins.

Our pledge deepens our long-standing partnership with the American Red Cross and IFRC, and is one way we play our part in protecting the Well-being of people and our planet.

We are grateful for the generosity of the Mondelēz International Foundation and look forward to how their support will help us respond to disasters and health emergencies across the globe.

Walter Cotte Under Secretary General, Programme Services, IFRC.

Neal Litvack Chief Development Officer, American Red Cross.

Nicole Robinson President of the Mondelēz International Foundation and Senior Director Corporate Community Involvement.

The UK’s Sustainability Forum was launched in November 2013. It brings together employees who are working on our sustainability goals – either directly or indirectly. And it creates an expert space for them to share best practice, hear from external advisors and help with the reporting of our achievements. These include achievements like the fact that three of our UK factories send no waste to landfill, that we’ve installed a Combined Heat and Power plant at the Banbury Kenco site and that we regularly engage with our customers around sustainability issues.

The Forum is here to celebrate the power of these kinds of milestones. The group recently received a briefing on Mondelēz International’s new Well-being strategy. At their last meeting, they explored the challenges and opportunities across the business to drive greater waste and energy savings. The Forum meets quarterly and has about 20 members from across the business, including R&D, CS&L, PCM, and manufacturing. It’s led by Claire Neilson Noble, Public Affairs and Sustainability Manager, Gareth Hutton, Customer Innovation Manager, and Josephine Bradley, Head of External Communications.

WELL-BEING NEWSLETTER Issue 2 — May 2014

MINDFUL SNACKING

ENVIRONMENTAL FOOTPRINT

CLARE LEONARD:

MINDING OUR BUSINESS A BIG WIN IN VIENNA

Nutrition and mindful snacking are crucial to our Well-being strategy, and are a big area of change for our business.

e spoke to Clare Leonard – Director of Scientific Affairs, Regulatory Affairs and Nutrition – about what mindful snacking means to her, why sugar is a hot topic, and what that ‘change’ might look like. Q. ‘Mindful snacking’ is quite a new term – what does it mean to you? Our business makes snacks, and we have a responsibility to make them as ‘mindful’ as possible. That means everything from what we put into our products, to how we reformulate them over time, to how we label, communicate and market them. The word ‘snacking’ describes a behaviour, but it’s also been unhelpfully related to foods that are ‘unhealthy’. I would contest that no food is unhealthy if you eat it occasionally or in moderation. A good diet isn’t just balanced and varied; it should fit your desires as well as your needs. In fact, done right, snacking can improve diets – studies show that people who eat little and often are healthier than those who eat fewer, larger meals. Q. So what’s the problem with snacking? We’re living through an obesity epidemic; like many foods, excessive snacking can contribute to this problem. It would be wrong of us to sidestep this issue by saying “our consumers just need to eat more healthily”.

So, while we have commitments to helping our consumers snack more healthily (like improving our calorie labelling), that’s just one part of what we’re doing. We’re also committed to changing our products – reducing sodium and saturated fat, and increasing whole grains. Q. Recently, sugar has been in the news quite frequently – why is that? The World Health Organisation recently revised its recommendations on sugar intake. As you know, obesity is caused when we eat more calories than we burn. And that means calories from all sources. There’s no conclusive evidence to link sugar with obesity or related conditions – like diabetes, cancer and heart disease. However, many of our snacks contain sugar and are calorie dense – so we do need to be aware that this could raise health concerns if over-consumed. Q. What effect is Mindful Snacking having on our business? We’re already leaders when it comes to clear nutritional labelling – but we’re aiming to do even more. We have some stretching goals to help us make this change. For example, we’ve set a goal to increase the amount of mindful portions (individually wrapped products with fewer than 200 kcals) by 25% by 2020. We also have sugar limits for our new products in development, and we’ve set stricter, lower limits for products that we want to call ‘Better Choice’. We’re also promoting our Better Choice products so that they make up 15% of our MEU net revenue. I’m excited about how our commitment to Well-being will change our business – it’s already driving some exciting conversation and innovation.

On 1st April this year, the Mondelez Austria team was awarded the ‘Green Building Award’ by the EU Commission for our office in Vienna. The award came after an eight-month renovation project in 2012/2013. Our range of intelligent energy efficiency systems and cutting-edge technologies impressed the judges.

These included: s 11,000 annual kWh savings through LED lighting and motion detectors in halls and bathrooms s 75% reduction in heating requirements, thanks to an air source heat pump s 15,000 litres of water saved every year from water-efficient urinals

For Prince de LU, signing the charter meant moving beyond nutritional communication to make three transformative nutritional promises – two of which have already been achieved! First, to reduce fat by 10.2% in most products between 2009 and 2012 (95% of total sales). Second, to reduce saturated fat content by 30.7% in most products between 2009 and 2012 (95% of total sales). And third, to increase fibre content by 20-40% by using 15% whole-wheat flour – a target we’re still reaching towards. It’s great these achievements have been officially recognised by the French Health Ministry.

Andreas Kutil Managing Director Austria

PHILADELPHIA GETS SMARTER Our Philadelphia plant is seeing the benefits that change can bring, from finding new ways to reduce its environmental impact, to embracing an innovative technology that improves the product itself.

A ROLE MODEL FOR SUSTAINABILITY The vast majority of our business’ environmental impact comes from sourcing raw ingredients. But keeping our commitment to protect the Well-being of our planet means taking care of our own operations too.

Bad Fallingbostel is our first food manufacturing facility that’s been awarded the prestigious Gold in LEED (Leadership in Energy and Environmental Design). There are many reasons to be proud of this site, but here are a few highlights:

A STEP CHANGE IN CREAM CHEESE s Sends nothing to landfill and is much more water and energy efficient s Has a new purchasing policy that favours recycled and certified products s With a combined heat-power installation we are producing 60% of the plant’s power, reducing CO2 emissions by 43% s Philadelphia’s new oval packaging cuts cooling time by 90% s The majority of our milk comes from dairies and farms in the region

A PRINCELY EXAMPLE OF IMPROVED NUTRITION They’re already France’s favourites, but now our Prince biscuits are more nutritious too. That’s because, as part of the government-supported National Nutrition and Health Program, Mondelez France signed a voluntary commitment charter. This kind of commitment is a great way for us to take the lead in helping consumers snack more healthily.

The Green Building Award is confirmation that it is worthwhile to invest in sustainability, not only for the environment but also for our employees and for our business success.

We’ve adopted a holistic approach that goes beyond recycled paper. We want to keep moving forward and pioneering green practices in general, e.g. environmentally-friendly electrical appliances and building materials with recycled content. Friedrich-Wilhelm Flebbe Manager, Sustainability

Above, Bad Fallingbostel employees celebrate being awarded the prestigious Gold in LEED. Top right, Our Fallingbostel employees.

n March, we launched Backbone – a new technology that will make our Philadelphia Light line of products more savory and even healthier. The new technology increases creaminess – an important driver of liking for our consumers. But that’s not all: it also improves the nutritional value of this widely-loved cream cheese – including lower levels of sodium and fat / saturated fat. Dr. Alan Wolfschoon-Pombo, our research principal R&D, identified this major step change. The technology application was then developed by Loreta Lenz, Section Manager R&D, and her team. Despite a very aggressive and challenging timeline, they stayed focused on the consumer and the overall quality of Philadelphia.

I would like to congratulate and thank the team who made this project happen. It has been a cross functional, multi-country project and I am conscious of all the hard work needed to implement a project such as this. This is one of those special projects which delivers quality improvement, nutritional benefits as well as substantial cost savings. Chrystel Barranger President Cheese & Grocery MEU