Our suppliers play a critical role in enabling us to create sustainable products and operate a sustainable business. Our goal is to create a value chain that we, and our customers and suppliers can be proud of. One that supports local communities, reduces our environmental footprint, and consistently delivers quality beers and ciders that Kiwis love.
We collaborate closely with our suppliers over time to build long-term relationships based on mutual trust and agreed sustainability outcomes. Significant supplier impacts in our value chain include packaging materials, plastics and waste used in production, carbon emissions and labour practices.
Key targets and performance
The key measures we use to assess our progress towards creating a sustainable value chain are the percentages of local suppliers (by spend) in our supply chain and suppliers signed up to our Supplier Code of Conduct. The Code of Conduct outlines our expectations around business conduct, human rights and care for the environment. We also use the internationally-recognised EcoVadis supply chain management system to identify potentially high-risk suppliers.
In 2018, we had 1,321 suppliers of which 99.4% have signed up to our Code of Conduct. We spent over $403 million with suppliers in the year ending 31 December 2018, and 96% of this was spent locally. We have no high-risk suppliers based on the screening undertaken through EcoVadis.
|Number of suppliers||N/A||1321||1535||1327|
|% local (NZ) suppliers by spend (based on top 100 suppliers)||96%||96%||96%||90%|
|% suppliers signed up to Supplier Code||100%||99%||98%||100%|
|EcoVadis high-risk suppliers||0||0||5||3|
We’re continuing to seek out the best end-to-end solutions with our suppliers, and explore new ways to build on our social impact and reduce our environmental footprint. This includes reviewing our packaging materials to reduce their carbon footprint and environmental impact, and assessing the risks to human rights across our value chain.
Case study: Sustainable barley growing
Securing high quality raw materials, such as premium barley, is crucial to making our products. This is why we work with farmers to understand the long-term challenges of growing barley in New Zealand. One of those farmers is Tim Gorton, a third generation farmer from the Manawatu whose family has been supplying malting barley for the brewing industry for over 20 years. He and his family operate a mixed crop farm that produces a significant amount of barley during spring.