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Torskefiskkonferansen 2011


Sustainability in today’s economic climate -
a European market view


Tromso
October 27th, 2011

Peter Hajipieris
Chief Technical, Sustainability & External Affairs Officer
Iglo Foods Group Ltd
                                                                          11
Norwegian Seafood Council AGM, Tromso, 2007




                                              2
Agenda

• Who is the Iglo Foods Group?
• Reflecting on 2011 - so far
• Where are we with Sustainability?
• What is the consumer telling us?
• Summary - approach at Iglo Foods Group


                                           3
Europe’s number 1 frozen food brand
• # 1 frozen food brand in Europe
• Fish, Veg’s, Poultry, Red Meat, Ready Meals
• Birds Eye, Iglo and Findus Italy brands in 16 markets
• €1.6 billion sales
• Household brands for over 50 years




                                                          4
#1 frozen food brand in Europe – differing CSR needs




                                                  5
Agenda


• Who is the Iglo Foods Group?
• Reflecting on 2011 ….so far
• Where are we with Sustainability?
• Our Approach at Iglo Foods Group


                                      6
Key landscape dynamics in 2011


• Fish being consumed despite other category pressures
• Sensitivity to rising food prices & -ve economic news
• Food integrity issues emerged in key markets
• Consumers more aware of sustainability campaigns
• EU CFP Reform – Discards and a Celebrity Chef
• Market awareness of certification schemes & costs


                                                          7
Media map of key CSR & Health stories in UK for 2011




                                     Courtesy of Freud Communications   8
Persistent media ‘gloom & doom’




                                  9
Mis-labelling & challenges to Claims on fish products




                                                  10
Celebrity Chef joined the EU CFP debate - Discards




                                                 11
Other proteins challenging ‘fish sustainability’




                                              12
Agenda


• Who is the Iglo Foods Group?
• Reflecting on 2011 ….so far
• Where are we with Sustainability?
• Summary - approach at Iglo Foods Group



                                           13
Most agree with Sustainability pillars
and most understandably focus on the Environment

                  Environmental


                   Economics


                     SOCIAL




                                                   14
But CSR/Sustainability is much more e.g.

                               Provenance
  Environmental
                               Quality
    Economics
                               Food Safety
      SOCIAL

                              Resource
                              Management

                               Taste!!!
                                             15
True Sustainable Development = consumer needs


   Environmental
                                 A business
                               needs to sell to
    Economics
                               consumers to
                               pay the supply
      SOCIAL                    chain – if not
                               the social part
                               of that supply
                               chain cannot
                               be supported

                                                  16
and Sustainability cannot ignore consumer economics
“Many of us think that we have the right answer to Sustainability . We do
and we do not – we only have part of it at any given time.
Sustainability will always have many interpretations – there is no one way.
That is why we call it Sustainable Development - there is NO end point.
It is a continuous development process – and in fact, it started decades ago.
Our industry and the whole planet, in other sectors, is still learning the
‘what’ and the ‘hows’ of becoming more ‘Green’ .
The trick is to be part of a Sustainable Development Programme that does
not become unaffordable – the consumer always pays. If it becomes too
costly, too fast – they will reject it and our economic ability to support the
supply chain that is meant to feed them breaks down”.         Peter Hajipieris
                                                  World Seafood Congress, 2011
                                                               Washington DC
                                                                                 17
Evolution of

  food & fish standards

has always been based on

         phases

                           18
The need to extend fish shelf-life defined the
         start of ‘standards development’



     Drying – Salting – Smoking - Pickling



but consumers wanted ‘freshness, taste & nutrition’


                                                       19
                                                      19
So we entered phases of fish Standards Development
Drying, Salting, Smoking, Pickling
      Icing of Fish
          Canning
          Freezing of Fish
        Food Safety model & Codex           National Regulations
                  Quality Standards

                        HACCP/HAZOPS             Modified Air Packaging
                             TQM & ISO 9000

                                 EU Fish Hygiene Regulations

                                     FAO Code of Conduct - Responsible Fisheries

                                 Time - Illustrative                               20
Today – price, food safety & quality still fundamental


What do I look for
  in a pack of
  frozen fish ?
                        1. Price - affordable
                        2. Safe to eat
                        3. Like the product-Taste
                        4. Quality – consistency
                        5. ‘Responsible provenance’


                                                       21
We design our operations to meet these needs

                                         Operations


                                1. Affordable – cost &
1. Price - affordable
                                  efficiency
2. Safe to eat & healthy
                                2. Food Safety - HAZOPS
3. Like the product-Taste       3. Product design
4. Quality - consistent         4. Quality & Freshness

5. ‘Responsibly & Ethically     5. Responsible Food

  sourced’                         Sourcing/GMP/FS=CSR

                                                          22
So we manage the CSR risks in all our foods




                                              23
But fish industry must take care about costs



        THE GREATER
         THE EMPHASIS
          ON PERFECTION
            THE FURTHER
              IT RECEDES



                             Harida Chaudhuri
                                                24
Current phase of Standards Development




      Responsible Farming
       ‘Sea to Plate’ Traceability        Now
                 Sustainability
                          Eco-Labelling
                                                25
Some ‘Governance & Certification’ platforms

Environment      Social           Food Safety      Welfare

                  FAO Guidelines

   FAO Code of Conduct for Responsible Fisheries

Global Food Safety Initiative            Aquaculture Dialogues

       ISEAL          ASI          ISO              IAF

            ISO 65        Conformity Assessment

       Traceability         BRC          IFS         COC

 MSC      ASC     GlobalGAP         GAA        FOS ………etc etc
                                                                 26
Risk of admin & standards costs escalating




                                             27
Consumer will only respond if it is affordable



                                           Standard Phase 3




                        Standard Phase 2




     Standard Phase 1


                                                         28
National Fisheries Culture cannot be ignored




                                               29
Agenda


• Who is the Iglo Foods Group?
• Reflecting on 2011 ….so far
• Where are we with Sustainability?
• Summary - approach at Iglo Foods Group



                                           30
Our CSR approach? Feed Consumers Responsibly




                                               31
Forever Food Journey workstreams
                       1. ‘We Care for the Environment’




Climate        Waste           Packaging   Water          Transport       Sustainable
Change                                                    Efficiency       Sourcing



                                            3. ‘We work to ensure consumers
2. ‘We are Fair & Honest’                           prefer our food’




     Ethical     Nutrition &                       Nutritional         Healthy
    Sourcing      Labelling                         Balance            Lifestyle
                                                                                        32
We invest in world class GMP & QA - Social
e.g. Bremerhaven, Germany
• Largest frozen fish factory in the world - high efficiency
• Daily testing authenticates what we claim
• Focus is on maximum resource utilisation – low waste




                                                               33
We invest in Product Innovation - Economic

                Allows us to pay the supply chain




                                                    34
Offer choice in healthier eating – Social benefits




                                Omega 3




                                                 35
Sustainable Fisheries Development in action




1. We do not plunder the planet – we operate to high standards.

2. Approach: Policy / Standards / Certification development.

3. We work with internationally recognised Codes.

4. We lobby on policy reform e.g. EU CFP – it is a ‘hotspot’.

5. Improvement Programmes - but they must be viable.

6. Above all safe, good quality, wholesome, tasty food is key.



                                                                  36
Responsible Aquaculture - investing in future
We sponsor CTO who sits on Supervisory Board to develop ASC




    Have run charity Seafood
  promotion to help raise funds           And led development of
                                        Pangasius Dialogues standard
                                            for ASC certification




                                                                 37
We use the same approach for our Vegetables


All Peas &                                  We employ over 344
Spinach work                                Growers in rural
to 70 point                                 communities, with
                                            long-term contracts
Sustainable
Agriculture
programme




                                                              38
And we are recruiting a younger generation into fish




                                                   39
Takk
 Thank You
             40

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Torskefiskkonferansen 2011 - Peter Hajipieris

  • 1. Torskefiskkonferansen 2011 Sustainability in today’s economic climate - a European market view Tromso October 27th, 2011 Peter Hajipieris Chief Technical, Sustainability & External Affairs Officer Iglo Foods Group Ltd 11
  • 2. Norwegian Seafood Council AGM, Tromso, 2007 2
  • 3. Agenda • Who is the Iglo Foods Group? • Reflecting on 2011 - so far • Where are we with Sustainability? • What is the consumer telling us? • Summary - approach at Iglo Foods Group 3
  • 4. Europe’s number 1 frozen food brand • # 1 frozen food brand in Europe • Fish, Veg’s, Poultry, Red Meat, Ready Meals • Birds Eye, Iglo and Findus Italy brands in 16 markets • €1.6 billion sales • Household brands for over 50 years 4
  • 5. #1 frozen food brand in Europe – differing CSR needs 5
  • 6. Agenda • Who is the Iglo Foods Group? • Reflecting on 2011 ….so far • Where are we with Sustainability? • Our Approach at Iglo Foods Group 6
  • 7. Key landscape dynamics in 2011 • Fish being consumed despite other category pressures • Sensitivity to rising food prices & -ve economic news • Food integrity issues emerged in key markets • Consumers more aware of sustainability campaigns • EU CFP Reform – Discards and a Celebrity Chef • Market awareness of certification schemes & costs 7
  • 8. Media map of key CSR & Health stories in UK for 2011 Courtesy of Freud Communications 8
  • 10. Mis-labelling & challenges to Claims on fish products 10
  • 11. Celebrity Chef joined the EU CFP debate - Discards 11
  • 12. Other proteins challenging ‘fish sustainability’ 12
  • 13. Agenda • Who is the Iglo Foods Group? • Reflecting on 2011 ….so far • Where are we with Sustainability? • Summary - approach at Iglo Foods Group 13
  • 14. Most agree with Sustainability pillars and most understandably focus on the Environment Environmental Economics SOCIAL 14
  • 15. But CSR/Sustainability is much more e.g. Provenance Environmental Quality Economics Food Safety SOCIAL Resource Management Taste!!! 15
  • 16. True Sustainable Development = consumer needs Environmental A business needs to sell to Economics consumers to pay the supply SOCIAL chain – if not the social part of that supply chain cannot be supported 16
  • 17. and Sustainability cannot ignore consumer economics “Many of us think that we have the right answer to Sustainability . We do and we do not – we only have part of it at any given time. Sustainability will always have many interpretations – there is no one way. That is why we call it Sustainable Development - there is NO end point. It is a continuous development process – and in fact, it started decades ago. Our industry and the whole planet, in other sectors, is still learning the ‘what’ and the ‘hows’ of becoming more ‘Green’ . The trick is to be part of a Sustainable Development Programme that does not become unaffordable – the consumer always pays. If it becomes too costly, too fast – they will reject it and our economic ability to support the supply chain that is meant to feed them breaks down”. Peter Hajipieris World Seafood Congress, 2011 Washington DC 17
  • 18. Evolution of food & fish standards has always been based on phases 18
  • 19. The need to extend fish shelf-life defined the start of ‘standards development’ Drying – Salting – Smoking - Pickling but consumers wanted ‘freshness, taste & nutrition’ 19 19
  • 20. So we entered phases of fish Standards Development Drying, Salting, Smoking, Pickling Icing of Fish Canning Freezing of Fish Food Safety model & Codex National Regulations Quality Standards HACCP/HAZOPS Modified Air Packaging TQM & ISO 9000 EU Fish Hygiene Regulations FAO Code of Conduct - Responsible Fisheries Time - Illustrative 20
  • 21. Today – price, food safety & quality still fundamental What do I look for in a pack of frozen fish ? 1. Price - affordable 2. Safe to eat 3. Like the product-Taste 4. Quality – consistency 5. ‘Responsible provenance’ 21
  • 22. We design our operations to meet these needs Operations 1. Affordable – cost & 1. Price - affordable efficiency 2. Safe to eat & healthy 2. Food Safety - HAZOPS 3. Like the product-Taste 3. Product design 4. Quality - consistent 4. Quality & Freshness 5. ‘Responsibly & Ethically 5. Responsible Food sourced’ Sourcing/GMP/FS=CSR 22
  • 23. So we manage the CSR risks in all our foods 23
  • 24. But fish industry must take care about costs THE GREATER THE EMPHASIS ON PERFECTION THE FURTHER IT RECEDES Harida Chaudhuri 24
  • 25. Current phase of Standards Development Responsible Farming ‘Sea to Plate’ Traceability Now Sustainability Eco-Labelling 25
  • 26. Some ‘Governance & Certification’ platforms Environment Social Food Safety Welfare FAO Guidelines FAO Code of Conduct for Responsible Fisheries Global Food Safety Initiative Aquaculture Dialogues ISEAL ASI ISO IAF ISO 65 Conformity Assessment Traceability BRC IFS COC MSC ASC GlobalGAP GAA FOS ………etc etc 26
  • 27. Risk of admin & standards costs escalating 27
  • 28. Consumer will only respond if it is affordable Standard Phase 3 Standard Phase 2 Standard Phase 1 28
  • 29. National Fisheries Culture cannot be ignored 29
  • 30. Agenda • Who is the Iglo Foods Group? • Reflecting on 2011 ….so far • Where are we with Sustainability? • Summary - approach at Iglo Foods Group 30
  • 31. Our CSR approach? Feed Consumers Responsibly 31
  • 32. Forever Food Journey workstreams 1. ‘We Care for the Environment’ Climate Waste Packaging Water Transport Sustainable Change Efficiency Sourcing 3. ‘We work to ensure consumers 2. ‘We are Fair & Honest’ prefer our food’ Ethical Nutrition & Nutritional Healthy Sourcing Labelling Balance Lifestyle 32
  • 33. We invest in world class GMP & QA - Social e.g. Bremerhaven, Germany • Largest frozen fish factory in the world - high efficiency • Daily testing authenticates what we claim • Focus is on maximum resource utilisation – low waste 33
  • 34. We invest in Product Innovation - Economic Allows us to pay the supply chain 34
  • 35. Offer choice in healthier eating – Social benefits Omega 3 35
  • 36. Sustainable Fisheries Development in action 1. We do not plunder the planet – we operate to high standards. 2. Approach: Policy / Standards / Certification development. 3. We work with internationally recognised Codes. 4. We lobby on policy reform e.g. EU CFP – it is a ‘hotspot’. 5. Improvement Programmes - but they must be viable. 6. Above all safe, good quality, wholesome, tasty food is key. 36
  • 37. Responsible Aquaculture - investing in future We sponsor CTO who sits on Supervisory Board to develop ASC Have run charity Seafood promotion to help raise funds And led development of Pangasius Dialogues standard for ASC certification 37
  • 38. We use the same approach for our Vegetables All Peas & We employ over 344 Spinach work Growers in rural to 70 point communities, with long-term contracts Sustainable Agriculture programme 38
  • 39. And we are recruiting a younger generation into fish 39