Bidvest Europe

Sustainable development at Bidvest Europe

Bidvest Europe leads the industry in running its operations on sustainable development values, and is now winning new business as a result of practices that anticipate institutional demand for responsible and sustainable products. While some consumers in the current economic downturn are making buying decisions based on price, Bidvest Europe is saving money by adopting more environmentally efficient processes, bringing down transport costs and reducing consumption of energy and resources.

Material sustainable development issues

• demand for healthier foods
• environmental performance, especially CO₂ output
• responsible husbandry of food sources

Risks

• managing and minimising environmental impacts, including resource consumption, water and energy usage
• compliance with tightening environmental legislation, regulations and risk management
• compliance with health and safety legislation, regulations and associated requirements

Opportunities

• reduction in CO₂ output ahead of potential legislation
• exploit the company’s sustainability leadership in the catering industry

Sustainability introduction

The food industry has a major impact on the world’s resources, and both institutional customers and consumers increasingly demand that the foodservice industry take responsibility for serving healthy and sustainably produced food. Bidvest Europe, including 3663, Deli XL- Belgium and Deli XL - Netherlands, is committed to leading the industry in the responsible stewardship of resources. Sustainability as competitive advantage is a key element in divisional strategy.

While Bidvest Europe has a unified sustainable business development vision, differences in markets and cultures have resulted in the evolution of a variety of regional approaches.

To benefit from regional innovation, Bidvest Europe has formed a combined sustainability committee consisting of representatives of each committee from each national market. The combined committee works with the Bidvest Group sustainability committee. This open management structure shares information and leverages the benefits of regional innovation. Initiatives pioneered in one region are tested, developed into replicable programmes and then rolled out across the Bidvest Europe division.

The approach adopted by Bidvest Europe focuses on sustainability across people, product and the environment.

Environment

Environmental responsibility tops the public and political agenda in Europe, and strong pressure is being applied to the food industry, particularly in the form of tender specifications for institutional and government food catering contracts. While there are regional differences, in general customers demand fresh, seasonal products of known provenance. Marine resources in particular receive close scrutiny.

As market leaders in their industry, Bidvest Europe companies already possess strong sustainability credentials through compliance with the highest environmental standards. To retain and improve market share, further innovations in branding standards for product lines and improvements in environmentally sound processes are becoming a business priority.

Personnel at each company implement and monitor company-wide standards of environmental management and practice. At 3663, for example, this effort is implemented and supported at local and regional level by over 65 sustainability coordinators.

Systems to monitor environmental performance are now largely in place, enabling us to set targets and implement programmes for next year covering packaging waste, recycled packaging and energy and fuel usage. This will enable us to fulfil our aim of submitting carbon footprint data to the Carbon Disclosure Project in 2010. This year, our sustainability report for the UK operation, 3663, was undertaken in accordance with the GRI, and externally audited, achieving a B+ rating.

Packaging

Bidvest Europe is committed to increasing the amount of recyclable packaging across its private-label ranges and providing the accompanying eco-labels to communicate this. However, the ratio of private-label products is far lower in Belgium and the Netherlands, with the result that progress in these markets has been slower than in the UK.

3663 tracks packaging material used in its business and meets its producer obligations under packaging waste regulations. Packaging of own-label products differentiates 3663’s efforts to reduce packing mass. This campaign has resulted in packaging weights that cannot be reduced further without compromising product quality. Outer case packaging weights on UK private labels are now 8% less than the average packaging weight of all products supplied by 3663.

The next area of focus will be to work with the company’s brand partners across all operations to roll out the techniques already proven within Bidvest.

Recycling

Bidvest Europe has effective recycling policies in place across all sites, resulting in a steady increase in the level of recycling of key materials. We have increased the tonnage of cardboard and plastic recycled versus last year. All other waste streams are segregated and where possible recycled, i.e. plastic cups and bottles, aluminium cans, stamps, printer cartridges and paper.

Non-recyclable waste streams are segregated and disposed of in accordance with the appropriate legislation, i.e. hazardous waste regulations, animal by-products regulations etc.

Supplier environmental improvement

Bidvest Europe aims to work with suppliers to continuously improve the environmental performance of the entire supply chain, but individual companies are at different maturity levels. As the programme develops, the provenance of food products can be improved and more accurately described on brand labels, ensuring that our products lead the drive towards responsible environmental stewardship. To take performance levels above legislative requirements, the division aims to measure the percentage of products that come from sustainable sources.

In Deli XL - Netherlands, contracts are being secured with growers that specify best growing practices, the use of organic, rather than chemical fertilisers, water reticulation practices, product handling and packaging, etc. An alliance has also been formed with a Norwegian salmon-farming operation that presents a sustainable and environmentally responsible alternative to traditional fishing and farming practices.

In the UK, 3663 works with own brand/label suppliers to provide support and guidance to help them improve their environmental performance and the ultimate environmental value of the company’s own brand/label products.

The supplier environmental performance improvement scheme (SEPI), introduced in 2005, supports 3663’s own brand/label suppliers in their efforts to achieve ISO 14001 or EMAS environmental standards. Twenty-seven suppliers have registered with SEPI.

Ethical trading policies at Deli XL- Belgium, Deli XL - Netherlands and 3663 require suppliers to apply the principles of ethical trading and the UN Global compact.

Energy and fuel

Bidvest strives to minimise its energy and fuel usage in the forms of electricity, gas, diesel and LPG. There is a general understanding within Bidvest Europe that a reduction in CO₂ emissions translates directly into cash savings. Consequently, measures to monitor CO₂ emissions are being put in place. Legislative pressure is also being brought to bear. The UK government is introducing power consumption legislation, forcing every business that crosses a power-usage threshold to join one of a number of industry leagues, each of which has to commit to making CO₂ emissions savings. By 2011, companies will have to pay cash to government in line with their overall power usage. The money won’t be repaid unless power savings are made and the companies maintain an acceptable position in their league.

Significant initiatives to reduce diesel fuel usage
Diesel consumption has been reduced across Bidvest Europe by 41,5%, partly because of reduced volumes, but largely as a result of more efficient distribution (routing and better driving). Significant initiatives include:

Reducing total distance travelled – All divisional companies have worked to reduce total distance travelled. This is more challenging in growth areas such as the Netherlands and Belgium than in the UK operation. Improved routing systems have the task of ensuring that trucks are deployed as efficiently as possible.

Good driving – In the prior year, Deli XL - Netherlands put its drivers through a programme in support of the Dutch government’s sustainable driving initiative. To save fuel, all trucks have speed limiters fitted and set to a maximum of 85 km/hr.This had a dramatic influence on driver behaviour and fuel savings. The initiative will be rolled out to all companies in the division and is being rolled out at Deli XL- Belgium in the current year. All companies have either introduced or are trialling advanced telematics to help manage and monitor driving behaviour.

Recycled bio-diesel – 3663 has been using bio-diesel for several years as part of its commitment to the environment. In 2007, the company began using recycled waste vegetable oil as a sustainable bio-diesel to fuel its fleet. 3663 runs 710 vehicles on bio-diesel (B30 mix) produced from customers and suppliers’ used cooking oil. Annually, 3663 uses 2,8 million litres of recycled bio-diesel mix, up by 40%, thereby reducing CO₂ output. This pioneering programme has won the company various awards and has reinforced its brand reputation, factors that undoubtedly contribute to 3663’s success in winning important business contracts. The company is now seeking certification to a new ISO standard (14064), another industry first. The recycling initiative is to be tested in other companies in the division, starting with Deli XL- Belgium in the fourth quarter of this year.

Other environmental initiatives
Cleaner vehicles – Bidvest Europe has invested in environmentally friendly transport refrigeration units in the UK. These refrigeration units – 1 023 in total – negate the need for an additional auxiliary diesel engine to power the refrigeration system as they are electric and powered by the truck engines. This reduces total fuel usage and the UK business expects savings of 123 000 litres of diesel per week, equating to a saving of 16 800 tonnes of CO₂ a year.

Green building – Energy-saving technologies are specified for all newly built warehouses at Bidvest Europe. Measures include energy-efficient lighting, voltage optimisation equipment to reduce electricity consumption and photovoltaic systems for battery charging. At Deli XL- Belgium, new software analyses electricity and gas consumption, enabling the business to target an electricity saving of 350MwH and a gas saving of 200 MwH in the coming year. This will be achieved through smart batteries and charging systems and dehumidifiers for cold storage

Electricity from renewable resources – In the UK operation 98% of its electricity is now sourced from renewable sources via sustainable suppliers to the national grid.

People

Bidvest Europe companies attract and retain talented and motivated employees who share the company’s values. These values have been tested during the economic downturn, especially at 3663, where more than 500 staff lost their jobs. Key people measures such as employee absence and employee turnover reflect the sensitivity with which retrenchments were managed, and are consistent with a positive spirit in pursuit of the division’s long-term success. A major accolade was 3663’s listing in the London Sunday Times ‘Top 20 Best Big Companies to Work For’ survey, achieved against tough competition from the best companies in the UK.

Bidvest Europe continues to focus on developing and training employees. Although training spend per employee decreased, the number of training hours per employee increased significantly through more efficient use of the training spend.

Employee engagement

Bidvest Europe is active in its engagement with employees. Each company has its own consultative forums structure and methods of surveying staff satisfaction. In the UK, staff voluntarily and anonymously complete the satisfaction survey, providing feedback on key aspects of work-life within 3663. Results are communicated throughout the organisation and insights translated into key action plans at all levels, with accountability at senior-management level.

All Bidvest Europe operations increase awareness around sustainable business practices.

Deli XL Be has started an employee engagement and communication plan called the CAP programme that encourages employees to share their views on a variety of sustainability issues. Through this engagement, a review of printed reports was undertaken, resulting in more efficient document use and paper savings. The contract to supply ink cartridges for printed reports has been renegotiated to be more environmentally friendly.

A network of over 65 sustainability coordinators helps 3663 employees drive sustainability and environmental initiatives at all locations. The coordinators communicate sustainability issues, conduct environmental audits at company sites and collate employee ideas for further improvements in areas such as waste recycling and energy efficiency. A sustainability conference is held every year. This year it will concentrate on areas for improvement, share best practices from around the organisation and recognise individual and collective employee achievements across a variety of sustainability activities and performance criteria. The focus is now shifting towards community engagement, and a new award is to be announced.

Performance, policies and benefits

Particular focus is devoted to working practice and policies that ensure work environments are healthy and safe and that employees experience fair pay and benefits. Sustainability aspects include, where appropriate, flexible working, such as home-based or part-time working, to minimise employee travel time and mileage.

Bidvest Europe continuously monitors safety management. In the UK, 3663 is pioneering the adoption of an externally accredited occupational health and safety management system, BS OHSAS 18001, to reduce the company’s exposure to health and safety risks.

3663 employees are provided with opportunities for development and informal and formal recognition and go through annual appraisals. Employee benefits include: pension scheme, childcare vouchers, health care and discounts for health and family-oriented activities.

Continuous improvement is embedded into the culture of Bidvest Europe. The First for Service programme uses the European quality management excellence model to drive improvement in business performance at every level. A number of sites in the UK have achieved the National Investors in Excellence standard.

Products

Customer health and safety are paramount. Dedicated quality assurance and HACCP-trained employees ensure food quality and safety standards are met. Key customers conduct periodic food quality audits. Customer complaints are monitored and corrective actions instigated with suppliers where necessary. Customer complaint levels have fallen from last year.

Healthier eating

Bidvest Europe is at the forefront of industry efforts to provide healthier eating alternatives.

In the Netherlands, Deli XL complies with government’s ‘Healthy Choices’ certification standard across all its private-label products. Launched in January 2008, the private-label brand ‘Fresh4You’ encourages consumers to adopt a healthier lifestyle by offering healthier choices, especially for lunch.

In 2005, 3663 responded to consumer demands for healthier options with the healthier eating campaign ‘Positive Steps’. The initial focus was on salt content reductions in more than 300 products without compromising taste or quality. Since then, the campaign has reformulated recipes to cut fat, saturates, sugar, artificial colours and additives across many products in the company’s private-label range. Concurrently, 3663 was closely involved with the movement for healthier school meals and supported the Schools Food Trust initiative to instil healthy eating habits among Britain’s schoolchildren. After a number of years of research, testing and development, guidelines and recipes were introduced by the School Foods Trust for the serving of balanced, nutritious meals at junior schools from September 2008, with senior schools due to be added to the programme this year (now legislated). 3663’s reputation has benefited from its contribution to this initiative. The business continues to play a role, producing guidelines for school caterers on how to meet government’s nutrition-based standards for lunch and break-times.

New European regulations have been introduced to ensure that nutrition and health claims are more easily understood by consumers and caterers. In the UK, 3663 has been working closely with industry bodies on these issues. 3663’s advice centre provides customers and consumers with help across a broad range of catering issues and has produced over 50 fact-sheets in response to enquiries on subjects such as healthy catering practice for schools, care homes and restaurants.

Product and supply chain responsibility

The use of sustainable food products is being strongly promoted by the Dutch government. Its goal is 100% supply from sustainable sources. Deli XL - Netherlands has responded by changing its ranges to include sustainable products. It is now possible for caterers who supply the government to source their entire range through Deli XL’s sustainable products range. Deli XL - Netherlands also monitors the progress of its suppliers on the sustainability journey, ensuring that key issues are put on the agenda as a requirement for future business.

Waste Handling

Bidvest Europe complies with stringent waste handling legislation. In Belgium, Deli XL employs ISO 22000-compliant processes that meet the requirements of the Fost +, Val-I-Pac, and Valor Frit organisations. In some areas, Deli XL - Belgium is world class in its waste handling.

Conclusion

Bidvest Europe is determined to further strengthen its reputation for providing the best quality products, obtained from sustainable sources and brought to the customer in the most environmentally sustainable manner. This strategic commitment will entrench the company’s competitive advantage as it seeks to grow market share in tough market conditions.