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Growing Sustainably: Dunkin’ Donuts Coffee Today and Tomorrow
Presenter: Ellen Rogers
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d.
Who We Are
► Franchisor of quick service restaurants serving hot and cold coffee and baked goods
► Founded in 1950 in Quincy, MA► Dunkin’ Brands (Nasdaq: DNKN) is the parent company of Dunkin’
Donuts and Baskin-Robbins► Dunkin’ Donuts is a global brand with presence in 46 countries with
12,400 locations worldwide► Still serving the original proprietary blend of coffee established by
its founder, William Rosenberg
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Who We Are Not
► Roasters ► We partner with roasters who purchase and roast the coffee
according to our specifications► Buyers
► Our Roasters buy the green coffee working with our National Distribution Center on when and how much to buy
► Retailers► We are 100% Franchised
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Dunkin’ Donuts Today
Dunkin’ Is a Brand that can Win
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Supporting our Coffee Standards
► Tree to Cup (TTC) Program ► Maintains coffee quality standard globally► Measures ongoing performance and execution► Incorporates continuous improvement
► 2 US labs and 8 origin labs► 10 coffee roasting facilities worldwide► 4 blends of coffee creating over 15,000 different ways to order your
coffee
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What Sustainability Means to Us
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Business ContinuityConducting our business in a manner that will allow us to be in business
tomorrow, in one year, and in 10, 20, 30 years
Supply Chain ResilienceEnsuring we have a long-term supply of our key commodities (coffee, dairy,
wheat, palm oil, etc.)
Brand Risk ManagementAvoiding risks to the brand’s reputation that could cause a disruption
(child labor, food safety) & mitigating the impacts of climate change
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Why is DBI Interested in Sustainability?
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Respond to Global Brand Perception
Reduce Brand Reputation
Risk
Reduce Regulatory or Legal Risks
Identify Supply Chain or
Operational Benefits
Manage Investor
Expectations
Act Accordingly to DBI Core
Values
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How Does DBI Prioritize our Sustainability Issues? Materiality Assessment
• Identify the most important issues to internal and external stakeholders – people and groups with an interest in our business (franchisees, licensees, employees, guests, regulators, media, NGOs, etc.)
• The ones that matter the most to bothaudiences are the most material issues
• These issues are the highest priority for our business and our stakeholders
• They have the biggest impact on our ability to conduct our business successfully, without interruption, and make a profit.
• Define strategy from highest priorities
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Materiality Assessment Results
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Charity PartnershipsCertification & Fair Trading
PETDairy ProductsMeat Products
EggsAnimal Welfare
Product QualityChild Labor & Modern Slavery
EnvironmentPolypropylene and EPS
DeforestationFood Safety
Bribery & CorruptionPalm Oil
Sugar
Tea
DiversityFreedom of Association &
Collective Bargaining CocoaWheat
GMO Food AdditivesPaper Products
Wheat
Flavoring Transport & LogisticsNuts & Fruits
Governance & EthicsPolystyrene
Impo
rtan
ce to
ext
erna
l sta
keho
lder
s
Importance to internal stakeholders
Coffee
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Coffee’s Cause for Concern
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We Recognize the Viability of Longer-term Coffee Supply is an Issue We Cannot Ignore
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Source: Climate institute
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Why is Coffee a Priority?
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Coffee consumption continues to increase, creating more demand for high quality coffees, creating long term supply availability concerns
Coffee production, in addition to standard market conditions (supply & demand) has other factors contributing to long-term viability of coffee
► Climate change/growing conditions► Social issues► Farmer economic viability
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How are we tackling coffee issues?
► Surveyed our suppliers in U.S. and international markets to better understand our supply chain, traceability and risks
► We are working with our Roaster partners to implement our Guidelines for Sourcing Responsible Coffee
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Where we Want to Focus for Long-term Viability of Coffee
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► Increasing coffee yields through improved tree productivity
► Improving water quality and waste water pollution
► Mitigating risk of child labor issues/increasing support for education
► Minimizing deforestation
We believe improving green coffee growing standards & quality will result in improved yields & higher prices for farmers; allowing them to continue growing coffee
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What’s Next?
Working to Achieve 100% Responsibly Sourced Coffee via 3 Pillars :►Policy
• Pilot, audit and implement. Strive for continuous improvement ► Partnerships
• Continue to build via common responsible sourcing goals►Certification
• A balanced approach that supports sustainability awareness
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We believe improving green coffee growing standards & quality will result in improved yields and higher prices for farmers; allowing them to continue growing coffee
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Thank you
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Addendum
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Dunkin’ Donuts Tomorrow
Dunkin’ US Blueprint for Growth 2022
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What’s Next?
Working to Achieve 100% Responsibly Sourced Coffee via 3 Pillars :► Certification
• 100% certification of specific DD coffees: US Espresso, UK Espresso, US Dark Roast► Policy
• Implement a coffee policy to improve standards with US roasters and international licensees
►Partnerships• Supporters of coffee policy standards• Leverage existing coffee sustainability work worldwide
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We believe improving green coffee growing standards & quality will result in improved yields and higher prices for farmers; allowing them to continue growing coffee