FIRST CHOICE FOOD & DRINK GROUP

CORPORATE RESPONSIBILITY REPORT

Published October 2015

Over the last year, the food and drink industry has continued to face challenges, requiring businesses to adapt quickly to changing conditions in order to remain competitive. Consumer behaviour impacting the outlets in which our products are sold, global pressures on commodity prices and availability, sustainable sourcing and ethical supply chains are just some of the issues that we deal with every day.

In our position as a leading food and drink group, we continue to trade responsibly and with integrity to provide high quality, safe, healthy and nutritious food to millions of people every day.

We are pleased to have made further progress against our own corporate responsibility targets and to contribute to the wider environmental, economic and social challenges we face.

We are guided by our three corporate responsibility pillars of Climate Change & the Environment, Fair Partner & Good Employer and Health & Wellbeing. They help to shape our strategies, build employee, customer and supplier trust and loyalty, and reduce our footprint and impact on the environment.

These pillars are an integral part of the decision making processes in our business and are fundamental in enabling us to continue to grow in a sustainable manner. We encourage input from supply partners, customers and consumers and constantly strive to achieve a successful balance between interdependent commercial interests and our wider responsibilities.

This report provides an insight into our commitment and approach to responsible operations, as well as information about the significant investments and developments made across our business in the last year.

Michael EasterbrookManaging Director and Chief Executive Commercial

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Contents

About our business Page 4Our approach Page 6 Our corporate responsibility summary Page 8

Climate change and the environment Page 10Progress against our targets Page 10Case study: Packaging reduction Page 11Climate change Page 12Case study: Water saving projects Page 13Palm oil Page 13Case study: Seafood sustainability Page 14

Fair partner and good employer Page 16Case study: Supplier partnerships Page 16Ethical trading Page 16Case study: UK farming Page 17Staff focus Page 17Case study: Cambridge University student project Page 18Case study: Princes Learning Academy Page 18Apprentices and graduates Page 19

Health and wellbeing Page 20Facts about our products Page 20Case study: Soft drinks and sugar Page 21Case Study: Which cooking oil website Page 21Case study: Aqua Pura Page 22Food health Page 23Case study: Fareshare Page 23Case study: Educational and heath campaigns Page 23

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We own a variety of household name brands, including Crosse & Blackwell, Crisp ‘n Dry, Napolina, Trex and the iconic Princes brand itself. We also produce food under licence for brands such as Branston, Batchelors, Olivio and Flora.

We are a major supplier of customer own brand goods to major UK and continental European retailers, wholesalers and foodservice companies.

Our vision is to be a first choice food and drink group.

Fast facts about our business

About our business

We employ more than 8,000 people.8,000

15

80%600

1880

We operate 15 well invested production sites, which meet the highest quality and

safety standards.

80% of the products we sell are manufactured at Princes-owned or joint

venture sites.

We deal with over 600 suppliers from over 40 countries.

Princes heritage dates back to 1880 when it was established as a fish importing business in Liverpool, the city where our international

headquarters are still located today.

Customer PartnerAs a trusted customer partner we are known for our ability to deliver

a reliable service and quality food and drink products.

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L

L

L

L

L = Licensed brands

We have a portfolio of leading food and drink brands

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Our approachPrinces is one of Europe’s largest food and drink groups and is committed to supplying high-quality products that meet changing customer and consumer needs. Our operations and supply chains extend around the globe and it is our responsibility to meet these needs and grow our business in a positive and sustainable manner. We will continue to place corporate responsibility at the heart of our business, reducing our environmental impact, building stable, fair and transparent relationships and providing high quality, nutritious food, sourced with integrity

Mitsubishi Corporation three corporate principles – Sankoryo

Corporate Responsibility to Society – “Shoki Hoko”Strive to enrich society, both materially and spiritually, while contributing towards the preservation of the global environment.

Integrity and Fairness – “Shoji Komei”Maintain principles of transparency and openness conducting business with integrity and fairness.

Global Understanding Through Business – “Ritsugyo Boeki”Expand business based on an all-encompassing global perspective.

These principles guide our three pillars of corporate responsibility: climate change and the environment fair partner and good employer and health and wellbeing.

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How corporate responsibility is managed within the Princes Group

We are committed to delivering high standards of corporate responsibility throughout our business on a daily basis, setting objectives, monitoring progress and providing feedback to stakeholders.

Corporate responsibility is managed through dedicated work streams, which report to our board of directors. These workstreams, comprising employees from a wide range of business functions, manage key areas on a wide range of topics, from energy efficiency to seafood sustainability.

The work streams have developed a strategy to improve performance against our three pillars and ensure activities receive the proper level of resourcing. They monitor progress against defined targets and review objectives on a regular basis.

Our Energy Saving Forum manages and shares best practice across the group and has in place systems to reduce our environmental footprint while fulfilling customer needs and corporate responsibility commitments.

The Corporate Responsibility Committee provides feedback to a wide range of stakeholders including employees, customers, suppliers, consumers and government. This encourages a two-way dialogue that enables us to assess and continually enhance the social, economic and environmental impact of our business.

We seek and welcome feedback from all stakeholders to help shape and evolve business operations and future plans.

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Climate change• Energy reduction ahead

of our target.• 98 per cent of food and

packaging waste from our production sites is recycled – on target.

• Reduction of road miles – on-going.

• Recycled PET use in our soft drinks bottles with plans to expand use into other areas of our business - on-going.

• Use of LED lighting is our Group policy and is being rolled out across our sites.

• Reduction of mains water used in our operations - on-going

Environment• Over 130 tonnes of PET

removed from our Aqua Pura Natural Mineral Water bottles.

• Updated Wild Caught Sustainable Seafood statement published.

• A new Tuna Sourcing and Sustainability Guide published.

• Continued support for scientific research into seafood bycatch mitigation.

• Energy forums established at our sites to focus on minimising use of resources.

Our corporate responsibility summaryOur corporate responsibility activity is built around a strong business strategy and robust management systems that identify the most important ethical, social and environmental issues and deliver more efficient, accessible and sustainable long-term returns for all stakeholders.At the very heart of our business strategy are the Princes three pillars of corporate responsibility that are the driving force behind what we do. These initiatives are in turn closely aligned with our core values of respect, integrity and transparency.

Here’s a summary of our key achievements over the past year.

Climate change and the environmentWe understand the impact that our business processes can have on both the environment and the climate, and we are dedicated to ensuring that we minimise any potential negative outcomes that may result from what we do. We constantly evaluate our production and sourcing methods, set targets, take action and make improvements to ensure we always fully comply with all regulations and best practice.

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Fair partner• Crosse & Blackwell

Best of British the first consumer brand to sign the NFUs Back British Farming charter.

• Red Tractor endorsement for our range of British grown Batchelors peas.

• Supply partnership agreement renewed with Thai Pineapple supplier TPC/SAICO.

• Ethical Trading Initiative event held at our Foggia site for Italian tomato growers.

• Average of 50 hours per person training delivered at our UK manufacturing sites.

Health• Continued to support

the governments Public Health Responsibility Deal pledges.

• Reformulated customer own-brand soft drinks to remove 13 billion calories.

• Our Jucee squash reformulated to become 100% No Added Sugar

• Over 200 branded products we supply count towards the Government’s 1 of 5 A Day.

• Consumer website launched providing health information on cooking oils.

Good employer• European Works

Council for employees established.

• SA8000 certification renewed at Princes Tuna (Mauritius) Riche Terre.

• Student placement scheme established in addition to our existing graduate and engineering apprentice programmes.

• Reportable accidents declined to lower level than in 2007 despite a significant increase in number of employees.

Wellbeing• Sixth consecutive year

of support for Cancer Research UK’s Race for Life.

• Increased focus on encouraging Princes staff participation in Race for Life events.

• Consumer campaigns continue to highlight benefits of oil-rich fish and canned fruit.

• On-going partnership with FareShare for donation of unsold food.

• On-going commitment to responsible marketing and labelling of all our products.

We are guided by our three corporate pillars which help to inform and shape our strategies.

Fair partner and good employer

Health and wellbeing

Our commitment to being a fair partner and good employer spans our whole supply chain, and we’re proud of the long-term trusted relationships we’ve built with our partners, covering our suppliers, employees, customers and consumers. After more than a century in business, we believe the key to this success is through collaborative working with all parties, and our relationships are very much based on our core values of respect, integrity and transparency.

As a responsible food and drink group, we aim to help consumers make healthier choices about the food they eat and the lifestyles they live. We regularly review our products to ensure they are using the best ingredients and that nutritional information is displayed clearly on our packaging to allow consumers to make informed decisions.

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Progress against our targets

Target Status

Reduce primary energy used at our Group controlled manufacturing sites by 10 per cent by 2020 (measured from a baseline of 2012/13 usage).

Ahead of target – with 16.5 per cent reduction to date.

Reduce total amount of mains water used throughout manufacturing operations (measured by case produced and from baseline of 2012/13 usage)

Ongoing – with increased focus in high areas of use we have reduced our water use by 17 per cent to date.

Zero food and packaging waste to landfill by 2020 On target – 98 per cent of waste from our production sites is recycled.

Increase recycled material in our PET soft drinks bottles to 25 per cent by 2015

On target – we are currently at 24 per cent at end March 2015. We intend to maintain the 25 per cent level in our soft drinks business and are seeking to extend the use of recycled PET into other areas of our business.

Continuously review manufacturing processes to reduce road miles (measured against 2009 baseline)

Ongoing – continued use of waterways, collaboration with customers and investment in on-site warehousing mean we are continually reducing road miles per case

Climate change and the environmentAs a responsible manufacturer and importer, we are committed to reducing the environmental impact of operations and protecting precious natural resources.We continually evaluate the impact of our operations with stakeholders to develop and implement ways to reduce waste and decrease the use of energy, water and raw materials in a responsible way. This has an impact in all areas of our business and helps us to maximise efficiency and meet targets, reducing the effect on the environment.

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Case study: Packaging reduction

Princes is committed to incorporating sustainability into our overall business strategy and to helping our customers achieve their environmental goals. We make it our mission to develop innovative packaging solutions that provide sustainability benefits for our own direct operations, our customers and our supply chain.We have taken a number of steps during the past year to tackle sustainability challenges throughout the packaging lifecycle. The challenge we have set ourselves is to reduce the amount of PET (polyethylene terephthalate) in our packaging without compromising on aesthetics or functionality. The Princes Packaging Development Team firmly believes that most sustainability challenges can be solved with innovation, and that this innovation can have a positive impact on our business as well as on the communities in which we and our consumers live and work. We are pleased to have successfully delivered significant bottle weight reduction projects in our UK operations.Edible oils – branded bottle weight reduction projectOur joint venture Edible Oils Limited site in Erith, Kent, forms the hub of our cooking oil production and is located adjacent to one of the largest seed oil crushing and refining establishments in Europe. Here we bottle our market-leading products, Crisp n’ Dry, Flora, Olivio, and Mazola Corn Oil. Our packaging reduction team was keen to look at weight reduction options for our cooking oil portfolio, reducing plastic whilst maintaining performance, bottle integrity and consumer safety. Our achievements:

• A new bottle shape for our best-selling 1L and 2L bottles has allowed the maximum reduction in PET to be realised, and a total saving of 225 tonnes of PET per annum has been achieved across both bottle formats.

• Our design team has ensured that the original bottle shape has not been compromised by the new packaging materials.

• Additional ribbing has been added to the front and rear of the new bottle to add strength.

Water 5L bottle weight reduction projectOur bottled water production sites, in Eden Valley in Cumbria and Church Stretton in the heart of rural Shropshire, have successfully delivered a project this year to reduce the amount of plastic in our 5 litre bottles while meeting key criteria of stability, consumer appeal, functionality, product safety and integrity.Church Stretton has been bottling water for almost 130 years. Its natural mineral water source catchment area has been a designated area of outstanding natural beauty for more than 50 years, and the site produces customer own-brand water as well as our leading natural mineral water brand, Aqua Pura.Our facility at Eden Valley also produces Aqua Pura and draws natural mineral water from what is believed to be one of Europe’s largest aquifers. Its water sources are protected due to being in an EU Special Area of Conservation.Over several months, our packaging and operational teams, supported by our supply partners, worked at both sites to deliver this significant weight saving.Our achievements:

• A combined total saving of 130 tonnes of PET per annum has been achieved across both production sites.

• The bottle shape and structure have been re-designed to acheive optimum weight reduction.

• Investment in capping technology to enable the reduced weight cap to perform to the required safety and durability standards.

• A new, round bottle and neck finish has been achieved which offers greater pallet stability whilst being more aesthetically pleasing for consumers.

• The new design is also easier for the consumer to open.

The manufacture of every tonne of PET produces around 3 tons of carbon dioxide (CO2); therefore, these projects will eliminate over 1,000 tonnes of CO2 each year from our supply chain.

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Energy efficiency• We completed energy audits at all of

our UK manufacturing sites in 2014/15, and our Energy Saving Forum will be using this data to implement projects where we can make a difference to our energy consumption.

• Energy forums are being established at all Princes sites to focus on WAGES (water, air, gas, electricity & steam) reduction.

• Air leak detection systems have been reviewed, and we have intensified our focus on proactive problem spotting.

• Use of LED lighting is now our Group policy, and following installation at various UK sites in 2014, we are rolling out this format to all sites on a replacement basis.

• Our Wisbech site has installed a new compressed air generation system, increasing efficiency and distribution across the site, with the resulting reduced energy demand saving 11 tonnes of CO2 per annum.

Road miles• We have arranged to use pallet-width

containers from Southern Spain which will reduce the number of containers we import by 11 per cent. Pallet-width containers are ideal for the transport of palletised goods and can transport up to 6 more pallets than a standard ‘high cube container’. We plan to increase our use of these for suppliers in Italy and France.

• We have worked with a major customer to agree a revised schedule for goods coming into a new centralised distribution centre in 2015, which will eliminate several thousand road miles per annum.

• Investment at our Bradford site in 2014 with an on-site warehouse has significantly reduced off-site stock movements, and the use of a conveyor to the warehouse has eliminated thousands of forklift truck movements.

PackagingIn addition to the major weight reduction projects featured in this report, our packaging and engineering teams work on many projects of all sizes and scales across our product portfolio, including:• We have completed the project to

reduce the gauge of can lids at our UK food manufacturing sites, which will reduce our annual steel requirement by 250 tonnes.

• Large catering cans used at our Long Sutton site are being reviewed to reduce weight.

• Reduced-weight cans at our Glasgow soft drinks site have been introduced.

• Caps used in various soft drinks products are being reviewed and new options trialled.

• A major project assessing the weight of bottles used at our Bradford site in the supply of ready-to-drink 250ml bottles is underway and due to complete late in 2015.

Waste• We have installed conveyors at our

Wisbech site to take any discoloured baked beans from the cooking process directly to a depository for waste that is sent to animal feed.

• While the majority of waste in our operations is at manufacturing sites, our offices also need to play their part. At our Liverpool head office, an increase in focus on recycling and the use of food waste bins has seen a significant increase in waste recycling.

Climate change

Our business has an impact on the environment but through responsible stewardship, all our production processes and sites are set up to operate as efficiently as possible, minimising their environmental impact. With careful management of resources we are making sustainable improvements in how we do business, including reducing packaging and waste, minimising transport miles and cutting down on water use.

Fig 1: Waste diverted from landfill

Waste to landfill556 tonnes

Recycled42,830 tonnes

98%

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Palm oil

Palm oil is extracted from the fruit of the oil palm and is widely used, both in the food industry and in the production of a wide range of other consumer goods. It is an extremely productive crop – just one hectare of oil palm produces on average almost 10 times more oil than other oil crops – and widely used in the food industry and in the production of other consumer goods such as soaps, washing powders and cosmetics.The Roundtable on Sustainable Palm Oil (RSPO) was established in 2003 to ensure that sustainable palm oil is produced to a certified standard, protecting the rights of landowners and ensuring that primary forests and high conservation areas are not sacrificed for new plantations.Princes buys very little palm oil as a direct ingredient, with the majority of our purchases coming through our joint venture partner, Archer Daniels Midland (ADM), for use at our Edible Oils Limited sites. All palm oil purchased for use in Princes oil products by ADM is RSPO-certified and has been for several years.We also purchase palm oil indirectly, most commonly in very small quantities where it is a component part of an ingredient. As a RSPO member, we have been working with our suppliers for the last two years to either remove palm oil from these ingredients, or to source only RSPO-certified material. We have made good progress and expect to have completed this by the end of 2015. In addition, our UK manufacturing sites that use any ingredients containing palm oil will all have undertaken RSPO Supply Chain audit by the end of 2015.

Case study: Water saving projects

In addition to the obvious role it plays in agricultural supply chains, water is extensively used in the food industry in processes such as washing, cooling, producing steam or as a transport medium to move ingredients around a factory. We recognise that water resources need to be used as sustainably as possible and actively seek to reduce the amount of water we use by improving our water efficiency.

Wisbech is home to our food manufacturing site in Cambridgeshire, producing canned and pouch products, including soups, baked beans, pulses, pasta and vegetables, and water is vital to the operation of the factory. Site teams have completed two projects, which have delivered a 25% reduction in water use at Wisbech and made a major contribution to our Group target for water reduction.

A flume water recirculation system has been installed, replacing the prior use of mains water for transferring raw materials on our pulses cooking line, which produces over 1 million cans per week. The water is now recirculated from the head of the line back to the start of the process and replenished with fresh water when necessary. This has reduced water use on the line by 50 per cent, a reduction of 300m3 a day.

In addition, we have invested in modifications to the cooling systems on three cookers at the site so that water is recirculated, in a closed loop, enabling a reduction of water use of some 800m3 per day. In order to achieve this seemingly simple change, a wide range of modifications were made to the cookers, cooling towers and our process controls, ensuring at all times that our rigorous attention to product quality and food safety was maintained. The closed loop also reduces our electrical power demand resulting in a decrease in CO2 emissions of 41 tonnes.

These projects result from our on-going water and effluent improvement strategy, which implements and shares best practice at our food manufacturing sites at Wisbech, Long Sutton and Chichester. As a result, more energy and water savings are now being planned to further reduce our manufacturing impact on the environment.

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We are committed to the quality, integrity and long term sustainability of the seafood we sell. Our standards are consistent throughout Princes global business – from our tuna processing sites in Mauritius, to the products we import from our suppliers around the world.

The environment

Case study: Seafood sustainability

We are committed to the quality, integrity and long term sustainability of all the seafood we sell. Even though we do not own or operate any fishing boats, we still expect that our high standards are reflected in the actions of our suppliers. We also engage with a range of organisations in the global seafood industry to improve sustainability and to help protect ocean ecosystems.

In April 2015, we published our latest Wild Caught Sustainable Seafood Statement, in which we detail our commitment to the quality and integrity of the seafood we sell. In addition, recognising the particular focus on sustainably sourced tuna, we also published a new Tuna Sourcing and Sustainability Guide.

All the tuna we buy is from green rated fisheries, meaning that the stock is considered sustainable. The main species we purchase for canning is skipjack, which is fast-growing and reproduces quickly. We also purchase small quantities of Indian Ocean yellowfin and bigeye tuna. We do not source any Illegal, Unreported or Unregulated (IUU) caught tuna.

PartnershipsWe support a number of organisations that are taking a science-led approach to tuna fisheries management and reducing the impact of different fishing methods. These include the Marine Stewardship Council (see below), the Earth Island Institute (EII) and the ISSF (International Seafood Sustainability Foundation), which was established by international tuna companies, the WWF and leading scientists to ensure the sustainability of global fisheries.

We fully support the ISSF in its work to make changes on the water by implementing initiatives, such as non-entangling FADs, sharing research data with fishing vessels advising on how to reduce unwanted by-catch, and the ISSF Proactive Vessel Register, which provides independently validated information on the steps vessels are taking in implementing commitments intended to improve responsible tuna fishing. These include mandatory observer coverage, full retention of tuna

catch and the captain being trained on best practice. In addition to our responsibility to meet all ISSF resolution and compliance measures, Princes will ensure that all tuna purchased from large-scale purse seine vessels are registered on the PVR by the end of 2015.

Responsible marketingFrom nutrition labelling to sustainability information, we aim to offer the best and most relevant information to our consumers, and where appropriate, we include dolphin-friendly labelling (tuna), provide seafood sustainability information to consumers, promote consumption of seafood as part of a balanced diet, highlighting products high in Omega 3, and where possible, clearly label tuna caught with the pole and line method, offering consumers choice. We also work in partnership with the Alaska Seafood Marketing Institute (ASMI) to promote the sustainability and health benefits of Alaskan-sourced canned salmon.

‘Marine Stewardship Council (MSC)’The Marine Stewardship Council runs a globally recognised certification programme for sustainable seafood. Some of our fish products are sourced from fisheries that are certified to the MSC standard – a partnership that we hope will help to raise awareness of the need for sustainable sourcing.

We source MSC-certified fish wherever possible, and in 2014 were awarded Canned Fish Brand of the year by the MSC for the range and quality of MSC-endorsed products we sold. Our main tuna processing facility, Princes Tuna (Mauritius), is also MSC Chain of Custody-certified which means it can produce products that are eligible to carry the MSC-certified logo.

We actively encourage best practice in our supply chains and are supporting and encouraging our tuna suppliers to enter into MSC assessment to increase the amount of MSC-certified tuna in the global market. For more information on the MSC, visit www.msc.org

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Fair partner and good employerOur business growth has resulted from not only producing quality food and drink, but also ensuring we nurture and develop our employees and cultivate long-term partnerships with suppliers and customers.

Case study: Supplier partnerships

Princes and TPC/SAICO have been in partnership for over 20 years, ensuring continuity of supply of canned pineapple to our UK and European operations.TPC/SAICO, established over 50 years ago, is the leading Thai pineapple packer and fourth largest in the world.

Our requirements for product quality and safety are met via established management and quality control systems which are aligned with our requirements and those of the many customers in Europe for whom TPC/SAICO produces customer own-brand products

In addition to fundamental food industry requirements of quality and safety, TPC/SAICO’s sustainability development policies mark it out as one of the leading Thai food companies, with a strong programme of environmental initiatives and a commitment, both to its communities and to ensuring that its employees and wider supply chain are subject to strong governance and ethical compliance.

Princes’ long-term partnership approach enables TPC/SAICO to instigate its own enduring partnerships with growers, resulting in improved yields, improved quality and a guarantee of a fair and sustainable income.

Ethical tradingPrinces Ethical Trade policy outlines our support for all international legislation and codes regarding key issues such as human right, labour standards and environmental practices.

Our tuna processing site in the Indian Ocean, Princes Tuna (Mauritius) Riche Terre retained SA8000 certification for social accountability in 2015, having first been awarded this in 2003. This provides an independent standard protecting the rights of workers in areas such as working conditions, health & safety and remuneration and is particularly important in countries outside of the EU.

In 2015 we enlarged our PTM operation by integrating another tuna processing site, adding 2,000 new employees to the Princes Group and we are working to attain SA8000 certification at this new site as soon as possible.

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Staff focus

The acquisition in 2011 of two manufacturing sites in Eastern England represented a significant milestone for Princes, bringing us into closer contact with many British farmers and growers of fruit and vegetables who supply these sites. Our relationships with these suppliers are extremely positive, and we hold annual communication events to present our business plans, update them on market conditions, investment and development of our brands, including Crosse & Blackwell.

In 2015, Crosse & Blackwell’s Best of British range of soups and vegetables became the first fast-moving consumer goods brand to sign the National Farmers Union Back British Farming charter, which calls on consumers, government and industry to buy more British food.

To give our growers security and enable them to plan effectively, we agree tonnage and pricing in advance in order to secure the volumes we need, particularly for niche crops, such as garden peas.

For our range of Batchelors peas, we source all of our mushy, marrowfat and garden peas from Red Tractor-assured British farms. We have updated labels to highlight this and launched a new consumer website, which features details on where over 5,000 tonnes of British peas are sourced, alongside tips and recipes to inspire families at mealtimes.

In addition to our branded activity, we regularly highlight to customers the benefits of British-produced canned vegetables in their own-brand products. We are also working to increase consumer awareness of the British fruit and vegetables that can be found in the canned food aisle.

Creating the right working conditions and developing, training and rewarding our staff appropriately is essential to our business.

We continue to provide training to staff to enable them to perform their jobs efficiently and safely, and we are rolling out IOSH (Institute of Safety & Health) Managing Safely training, which exceeds national legislative requirements, to relevant UK management teams. Our on-going focus on health and safety resulted in fewer reportable accidents in our UK sites in 2014/15 compared to 2007/8, despite our employee numbers having significantly increased.

We have delivered an average of 50 hours of training per person at our UK manufacturing sites in 2014/15, and our-long term aim is to double this.

We have also created a European Works Council with representation of employees from all of our UK, Netherlands, Italian and Polish operations to enable discussion with, and feedback to, Princes management on transnational issues.

Case study: UK farming

Our core values of respect, integrity and transparency, supported by our Code of Conduct and Ethical Trade Policy, create the kind of culture we expect throughout our business and supply chain.

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Fair partner

Case study: Cambridge University student project

Case study: Princes Learning Academy

In March 2015, we partnered with the Institute of Manufacturing and Engineering at Cambridge University, hosting a team of undergraduates at our Long Sutton manufacturing site to review the process and performance of several of our cooking lines at the site.

Long Sutton is our largest UK food manufacturing site and produces baked beans, vegetables, fruit, pulses, pasta and meatballs for the Princes, Crosse & Blackwell and Branston brands as well as customer own-label products.

Students spent two weeks at the factory during March, identifying how existing processes could be streamlined before returning two weeks later to test their theories. Their proposals included environmental improvements to reduce the energy and water used in cleaning as well as simpler adjustments, such as increasing conveyor belt speeds.

The analysis and trials conducted have resulted in line-specific proposed actions, however, there is potential for further application of some of these actions in other parts of the factory. The project enabled us to have a fresh look at mature practices on the site, and by making observations that may not have been evident to business insiders, The Cambridge University team identified several areas for improvement, which may well be extended to our other operations.

Princes has evolved from a primarily trading company to a manufacturing led business, with 80% of our sales coming from products made at our own operations. Through that growth we have acquired new facilities and invested in different processes and equipment resulting in a need to adapt the skill sets of many employees to meet these challenges.

In March 2015 we established the Princes Learning Academy at our Bradford site as a central training location for Princes manufacturing staff and to host training materials for our Princes Manufacturing System (PMS) work practices. The PMS was developed during 2013/14 and while site specific training was delivered, the Learning Academy was the next stage of development in ensuring that best practice manufacturing knowledge was shared across the Group.

The Learning Academy is an environment which encourages adult learning whilst developing skills and awareness of work standards and practices, reinforced with the required behaviours of quality first, least cost, and right first time. Our first cohort at the Academy started in April 2015 and the second intake commenced in September.

In addition, we have developed three levels of competency requirement within the PMS:- Foundation, Certificate and Diploma. These encompass learning programmes for all production and support personnel from new starters up to leadership levels, which will assist in succession planning.

A key focus for the Learning Academy scheme is engineering. UK food and drink manufacturing, as highlighted by the Food & Drink Federation, is no different to any other industry and faces a shortage of future emerging engineers. The Learning Academy will promote and maintain skills learning for all levels of employees, while allowing specific engineering teams to focus on the higher levels of engineering capability and maintenance reliability.

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We are proud to be an employer of choice. We aim to make Princes a fulfilling place to work by providing the skills and training required to help employees realise and achieve their potential.

Good employer

Apprentices and graduates

As part of our commitment to investing in the development and training of employees, we have welcomed 12 new graduates, four student placements and 12 apprentices in 2014/15.

The Commercial Executive Graduate Scheme offers university leavers the opportunity to experience life at our Liverpool head office as they complete placements in various departments whilst also completing training modules throughout the scheme. The graduate scheme has proven successful since its launch five years ago, with many of the intake having gone on to secure managerial roles with Princes.

Meanwhile, our latest initiative offers student placements as part of a sandwich degree at Liverpool John Moores, Liverpool and Manchester Metropolitan

Universities. Current undergraduate students are able to carry out a placement in one of several departments before returning to complete their studies.

These academic employment options are complemented by our three-year engineering apprenticeship scheme which places apprentices in most of our UK manufacturing operations. The scheme aims to increase the skills and knowledge base of engineering in our own operations and aligns with efforts by the Food & Drink Federation, both to develop new talent and position the UK as a global leader in food engineering.

Poland (Szamotuły)

Netherlands (Rotterdam)

Poland (Warsaw)

Italy (Foggia) Italy (Angri)

Mauritius (x2)

Liverpool(group head office)

Glasgow

ErithBelvedere

WisbechLong Sutton

Bradford

Manchester

Eden Valley

Chichester

Church Stretton

Cardiff

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Health and wellbeingWe have a responsibility to help consumers make informed decisions about the food they buy for themselves and their families.At Princes, we don’t compromise on taste, and we regularly review our product ranges to ensure they meet or exceed consumers’ expectations and contain the best possible ingredients. We are also committed to reducing salt, sugar and additives in our ranges and recipes wherever possible.

We ensure nutritional information is displayed responsibly on packaging and in our marketing activity in a consistent format that is clear and easy to understand.

Less than 4% of our branded soft drinks volume contain any added sugar

Over 13 billion calories removed from customer own-brand soft drinks in 2014/15

Princes supplied over 1 billion cans of

fruit, vegetables and pulses in 2014/15

Over 1.1 billion 150ml portions of fruit juice

supplied that count towards 1 of 5 A Day

Over 200 branded products supplied

by Princes count towards your 1 of 5 A Day

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Case study: Soft drinks and sugar

our range of Jucee squash does not contain any added sugar

Case study: Which cooking oil

In 2014, we established a new consumer website, www.whichcookingoil.org, to offer advice to consumers on the best use of cooking oils.

In addition to appropriate recipes for the many kinds of oil, there is a wealth of information on topics such as oils to suit specific cooking styles and cuisines, health advice on oils and fats and also helpful tips on using, storing and disposing of oil.

The role of sugar in consumers’ diets continues to warrant significant attention from the media, government and many other health bodies and campaign groups.

Soft drinks in particular is a key area of attention, and as one of the UK’s largest suppliers of soft drinks we take this issue very seriously. We produce a wide range of soft drinks from our six UK production sites for our brands and customer own-brand business, including carbonates, fruit juice, squash and water.

Our leading brands, Jucee and Princes, have both taken steps to reduce added sugar in the last year. Our range of Princes Juice drinks is being reformulated so they contain No Added Sugar (NAS), and our Jucee squash range is now also completely NAS, responding to the growing requirements of health-conscious consumers. These changes mean that sales of our branded soft drinks containing added sugar represent less than 4% of our overall branded annual sales

volume, down from 12% three years ago.

In addition to reformulating our brands, as a leading supplier of own-label soft drinks, we are in regular dialogue with many of our customers on a programme of sugar reduction to help them remove calories from their products. Our work in this area has been recognised by two of our major customers in the last year with awards acheived for our approach and results.

Through our customer own-label business and Princes and Jucee brands, we are a leading supplier of pure fruit juice. In addition to being a vital source of vitamins for many consumers, particularly children and adolescents, pure fruit juice is a source of naturally occurring sugar. We take advice from the Department of Health and other relevant authorities with regard to consumption advice and responsible labelling of our juice and also ensure that we fully meet any applicable legislation in regard to marketing our brands to children.

The website is unbranded and is for the education of consumers in order that they can make informed choices for their diets and lifestyles. All health advice offered is with the support of NHS Choices.

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Case study: Aqua Pura

Aqua Pura is our natural mineral water brand and is drawn from deep in the heart of the rolling British countryside, naturally filtered through ancient rocks. Our consumer messaging continues to encourage people to get out and about, explore the great outdoors, try new activities and stay healthy and hydrated. In short, people who choose an Aqua Pura LifeIn 2014/15, we intensified our focus on employees, with frequent engagement to inspire Princes employees to lead healthy, active lifestyles in-line with the brand’s mission.

Leaflets were distributed encouraging Princes staff to enter a weekly competition to win sports or outdoor equipment to help them get active with their friends and families. The leaflets also encouraged sign-up to the Cancer Research UK Race for Life and Great Events series of running, swimming and cycling events.

2015 was the 6th consecutive year in which Aqua Pura proudly supported Cancer Research UK’s fundraising events Race for Life, Pretty Muddy and Shine. More than 650,000 bottles were handed out to participants, with 100 lucky winners given the chance to boost their fundraising by £50.00. Staff were offered discounted places to encourage participation and we had several teams from across the business taking part in events all over the country. We also launched our first ever donation packs in stores, with 10p from every special 500ml bottle sold being donated to CRUK, to help us reach our donation target of £100,000.

In addition, Aqua Pura continued its long-term partnership with the Great Events series, supplying water to thousands of thirsty runners, cyclists

and swimmers at events all over the country. Princes staff were offered free places and VIP experiences at several of the major events, including its flagship event, the Great North Run, the UK’s largest half-marathon.

We encouraged participating members of staff and consumers to become ‘Aqua Pura Champions’ and offered them training kits and free water to help with their training.

Throughout the Summer of 2015, we also ran our first Aqua Pura Staff Health Awareness road shows, where CRUK nurses and health experts met with staff at Princes UK manufacturing sites and offices, focusing on education about cancer awareness and early diagnosis.

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Food health

Our product portfolio is a diverse range of kitchen cupboard essentials, including fish, fruit, meat, pasta, vegetables , edible oils, water and juice, all of which feature prominently in any balanced diet.

In manufacturing these products, we follow advice from leading authorities, such as the European Food Safety Authority (EFSA) and the Food Standards Agency (FSA). In addition, we place the utmost importance on meeting our legislative responsibilities and all compliance matters.

All our branded products were relabelled in the last year to meet new European Food Information Regulations that came into force, and we will continue to meet any and all requirements, ensuring

our consumers can make informed choices.

We ensure that we meet all legislative changes, and in January 2015, all products sold in France met new laws that required the removal of Bisphenol-A (BPA), a component used in the protective coating inside canned food that prevents food from reacting with the metal of the can.

In the UK, we are active members of the British Soft Drinks Association and helped to establish a voluntary code on the production and marketing of energy drinks. This has been developed further with advice for retailers of all sizes on how best to consider their sale of these products, factoring in their proximity to schools and other local concerns.

In 2013, we formalised a partnership with FareShare for the redistribution of unsold food from our UK operations.

FareShare is an award-winning charity that has tackled the dual issues of food waste and food poverty for over 20 years. It distributes food to over 2,000 charities and feeds over 150,000 people every week, saving other

charities some £20m of expenditure on food.

In addition to receiving donations from Princes operations and offices, FareShare offers advice on waste prevention in manufacturing operations, and we plan to make more use of its expertise, not only to reduce our waste, but also to ensure that any waste streams identified are put to good use.

Our products are developed responsibly, regardless of whether they are our brands or customer own-brand, and our diverse range of products helps to support a balanced diet.

We have continued to promote fruit consumption, highlighting the nutritional benefits of canned fruit and encouraging consumers to use it in new ways, such as at breakfast, a snack, or as an ingredient. In addition to on-line resources, coupons and promotion in media, we communicate these messages on the outer case to reach people when they shop in stores. We do not communicate these messages on any canned fruit in syrup and only ever promote canned fruit as part of 1 of 5 A day when it is packed with juice.

We also feature 1 of 5 A day on packs where appropriate to encourage fruit and vegetable consumption. Our support for Omega 3 consumption continues and our messaging to consumers regularly highlights the benefits of oil-rich fish such as salmon, kippers, mackerel and sardines.

We have noted the recommendation in July 2015 from the government’s Scientific Advisory Committee on Nutrition (SACN) to reduce sugar and increase fibre, fruit and vegetables in the national diet, and we will continue to develop and promote new products responsibly.

Case study: Educational and health campaigns

Case study: FareShare

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www.princesgroup.comPrinces Limited, Royal Liver Building, Pier Head, Liverpool L3 1NX United Kingdom Tel: +44 (0)151 966 7000 Fax: +44 (0)151 966 7010

For enquiries relating to Princes Corporate Responsibility: corporate.responsibility@princes.co.uk

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Corporate Responsibility Report