Get documents about "Kraft Foods Responsibility Report
Shared by: ghkgkyyt
-
Stats
- views:
- 82
- posted:
- 12/20/2011
- language:
- English
- pages:
- 51
Document Sample
Creating
a more
delicious
world
Our 2010 repOrt
Message from Our Chairman and a 2 b
Chief Executive Officer
Ever since my first “job” selling as a global food company, we can help raise
people up—out of hunger, out of poverty, toward
girl scout cookies, i believed healthier lifestyles—through what we make and
that business could be a force how we make it. Millions of times a day … in ways
big and small … quite literally around the world,
for good. today, i know it is. we’re doing just that. and we do it at multiple
points in our supply chain … from our agriculture
Business is a vital part of the success of most sourcing initiatives that have made us a leading
nations. from Chile to China. the united states purchaser of sustainable cocoa, coffee and
to ukraine. Well-run businesses contribute to cashews to our finished products, like Biskuat
society in so many ways: Providing jobs, creating and Tiger fortified biscuits that help indonesian
robust supply chains, revitalizing communities, moms ensure their kids get the right vitamins
innovating solutions for some of the world’s and minerals to grow to their full potential.
toughest challenges, contributing to public
coffers and delivering shareholder returns that “Creating a more delicious world” is a lofty
irene B. rosenfeld enable further investment. But companies that goal to be sure. But we make it achievable by
Chairman and can successfully and simultaneously balance taking a pragmatic approach. first, we focus
Chief Executive Officer the short- and long-term interests of the our efforts where we can make the greatest
multiple constituents they serve can do the difference. Our global priorities are food safety,
most good. they can, indeed, change the health and well-being, and sustainability. next,
world for the better. we agree on the goals, strategies and actions
to achieve each priority.
that’s one of the reasons i’m so proud to
be leading Kraft foods, where we say that Our goals, whether financial or philanthropic,
“delicious is our difference.” Yes, our products are designed to be ambitious, but achievable.
taste delicious. But to us, it’s more than that. Our strategies are long term, spanning
delicious is also our corporate purpose … the decades in some cases. But the targets we
mindset and spirit we apply to everything we set to evaluate our progress are measured in
do and how we do it. it’s also why we titled increments of five years or less. that way, the
this report, “Creating a more delicious world.” same people who set the targets can also be
MEssagE frOM Our ChairMan and ChiEf ExECutivE OffiCEr Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 3 b
held accountable for delivering them. finally, We’re not perfect, and we’re not finished. But
our actions focus on what we call the “three Ps” by focusing on what matters most and where
for creating lasting change: Products, Policies we can make the biggest difference, i am
and Partnerships. all three are important, but confident we’re on the right path. We’re working
i want to elaborate a bit on Partnerships. Even to support healthier lifestyles and sustainable
though there is a lot we can do as the world’s agriculture. seeking solutions that, by design,
second-largest food company, many of the benefit our business and our society. Working
issues we’re tackling are so big that we can for outcomes that are sustainable and scalable.
only achieve lasting change when we work and sharing our progress and setbacks along
with others. so together with our suppliers, the way. We can’t do everything, but we are
customers and consumers … with governments, doing a great deal. We’re proud of what we’ve
multilateral organizations and nongovernmental accomplished and how it is helping consumers
organizations (ngOs) … we look for innovative and communities around the world live more
ways to combine our inherent strengths and deliciously every day.
capabilities to achieve the kinds of significant
irene rosenfeld helps build
change we all want—for ourselves, for our
a playground in Chicago’s
Washington Park, one of children and for generations to come.
13 playgrounds built as part of
our partnership with KaBOOM! in the following pages, i encourage you to
during delicious difference take a look at what we’re doing and what we’ve
Week in 2010. during this accomplished, on our own and in partnership
week, nearly 25,000 employees
with others around the world. this report covers irene B. rosenfeld
in 56 countries engaged in
community activities to help both the legacy Kraft foods and Cadbury Chairman and Chief Executive Officer
fight hunger and promote businesses and summarizes our 2010 progress Kraft foods inc.
healthy lifestyles. in the areas of highest societal interest. May 2011
MEssagE frOM Our ChairMan and ChiEf ExECutivE OffiCEr Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 4 b
table of Contents
Delicious @ Work Highlights .........................................................................................................................5
From Our Partners ..................................................................................................................................................6
Health and Well-Being: Eat delicious, live well .............................................................................8
Sustainability: Now and for future generations........................................................................ 20
Food Safety and Quality: Better practices deliver the best results........................ 36
Workplace and Culture: Becoming performance-driven, values-led ..................40
Governance and Compliance: Inspiring trust.............................................................................. 46
taBlE Of COntEnts Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 5 b
delicious @ Work highlights
since 1999 in the u.s. during the last five years, in 2010, we reduced sodium in 2010, women made
alone, we’ve helped we’ve improved the nutrition in 340 north american up 35% of management
provide more than profile of more than products—removing nearly worldwide.
1 billion servings 5,500 products 3 million kilograms 43% of our
of food (6.5 million pounds) salaried employees
of salt were women
today, we’re helping to since 2005, we’ve significantly increased our purchases of We’ve cut
improve the livelihoods
of more than
certified coffee and cocoa (measured in metric tons)
Kraft Foods certified coffee and cocoa bean buying
p 97 million
1 million farmers
through partnerships
Rainforest Alliance
Certified™ coffee
50,000
kilometers*
Fairtrade sugar
24,000 (60 million miles) from our
that support sustainable Fairtrade cocoa 19,000
Rainforest Alliance 11,000 global transportation network
agriculture Certified™ cocoa
2005 2006 2007 2008 2009 2010
We’ve cut greenhouse gas emissions We’ve reduced We’ve reduced water We’ve cut our packaging
and energy use by our waste by consumption by by nearly
p 18% p 16% p 42% * * *
p 30% * p 100,000
greenhouse energy metric tons*
gases use (200 million pounds)
*data normalized to production with a 2005 baseline.
dEliCiOus @ WOrK highlights Index
from Our Partners a 6 b
“InMed Partnerships for Children is proud to work with the Kraft Foods Foundation toward
our shared goals to fight hunger and malnutrition, and to help youth put health into action.
Together, we are creating hope and opportunity for the next generation, providing more
than 100,000 of Brazil’s most vulnerable youth with the foundation of knowledge and
good health they need to transform their futures.”
Linda pfeiffer, Ph.d., President and CEO, inMEd Partnerships for Children
“As the numbers of
hungry increase,
we need private
companies like
Kraft Foods to join us
in the fight against
hunger. It’s a fight
too big for any one
player, but together
we can find new ways
to dramatically reduce
malnutrition.”
Josette Sheeran,
Executive director, “Kraft Foods Foundation is helping to make
World food Programme nutritious food available in schools and
communities to combat the high rates of
malnutrition in young children. Families are
also learning the skills they need to make
healthy choices to improve the nutritional
status of their children. The Foundation’s
impact will be felt for generations.”
Charles MacCormack,
President and CEO, save the Children
frOM Our PartnErs Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 7 b
“We are all responsible “CARe is pleased to be working alongside Kraft Foods to improve
for ensuring the long- the lives of people living in poor communities. Through savings,
term health of our education, entrepreneurship and innovative technologies, thousands
planet. As the leading of cocoa farmers are benefiting from more sustainable cocoa
purchaser of coffee and farming systems. Together, we are making a real difference in the
cocoa from rainforest lives of many rural families around the globe.”
Alliance Certified™
Helene D. Gayle, Md, MPh, President and CEO, CarE
farms, Kraft Foods
is doing its part by
helping farmers earn
a good living as they
conserve wildlife
habitats and the vital
natural resources on
which we all depend.”
tensie Whelan,
President,
the rainforest alliance
“Soon, 9 billion people will seek to improve their
lives in the context of a single planet. And every business
in every industry will be forced to grapple with finding
ways to meet their needs while using less water, carbon
and land. We work with companies like Kraft Foods that
are willing and able to influence the future of the planet
by working to positively advance the way agricultural
commodities are produced, bought and sold.”
Carter roberts, President and CEO, World Wildlife fund, u.s.
“Kraft Foods’ commitment to Fairtrade is helping to build a better future for many
thousands of cocoa farmers, their families and their communities. Through this
commitment, farmers can enjoy more secure, sustainable livelihoods. We look forward
to building on this partnership to create a better future for even more farmers.”
rob Cameron, Chief Executive, fairtrade labelling Organizations (flO) international
frOM Our PartnErs Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 8 b
hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and
compliance
HeALtH AnD WeLL-BeinG: today, the world faces the paradoxical
challenge of addressing both hunger and
Eat dEliCiOus,
obesity. according to the World Health
Organization, one in six people in the world
doesn’t get enough to eat. at the same time,
livE WEll
one in five is overweight or obese.
tackling such complex challenges requires
a collaborative approach involving consumers,
companies, governments and civil society.
so we take a three-pronged approach,
combining our products, policies and
partnerships, so our cumulative efforts
can help make a real difference.
Our focus is to make our brands—
foods consumers love—nutritionally
better and more wholesome, without
compromising taste.
hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 9 b
hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and
compliance
prODuCtS pOLiCieS pArtnerSHipS Products: Making the foods since 2005, we’ve reformulated or launched
people love even better more than 5,500 products that meet one
or more of these focus areas. Our goal is
around the world, people eat and drink about to continually grow the number of options
900 million servings of Kraft foods products in our portfolio that give consumers better
every day. that gives us an enormous choices for healthier and more wholesome
opportunity to have a positive impact on foods. it’s good for consumers and it’s good
consumers’ health and well-being. so our focus for business.
is on making our products more nutritious and
more wholesome, while still delivering the same
ReMOVInG OR RedUCInG nUTRIenTS
delICIOUS @ WORK delicious taste people have come to expect.
COnSUMeRS WAnT leSS OF
Some of our 5,500 better Based on what our consumers tell us they SOdIUM Much of the world’s population is
choices worldwide:
want, we focus our efforts on three areas: consuming too much sodium. While sodium
Brazil: Mini Philadelphia cream reduction isn’t new for Kraft foods, in 2010
cheese with 40 percent less sodium • foods with less fat, sodium, sugar we began to accelerate our efforts to further
than the local Requeijão cheese. and calories. reduce it in our products, without compromising
iberia: Fruit & Fit biscuits, made with taste or safety. this is a tough challenge for
30 percent fruit and just 49 calories
• foods with more beneficial ingredients,
such as whole grains, fiber, healthier the entire food industry, but we feel good
per biscuit.
oils and micronutrients. about our progress:
philippines: Tang Fruitrition, a
powdered beverage mix fortified • foods that are “simpler:” easier-to- • in the u.s. and Canada, our largest and
with a combination of vitamins and understand ingredient lines and fewer most diverse portfolios, we announced plans
minerals found in fruit juices and artificial ingredients.
needed by the population.
to cut sodium by an average of 10 percent
by 2012 across the portfolio. in 2010 alone,
for more examples, see our we removed nearly 3 million kilograms
Health & Wellness Fact Sheet.
(6.5 million pounds) of salt from 340
products. and we plan to reduce sodium
in hundreds more products.
hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 10 b
hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and
compliance
prODuCtS pOLiCieS pArtnerSHipS • in latin america this year, we initiated plans • in Europe, since 2008, we reduced saturated
to reduce sodium by an average of fat by 54 percent in our Prince biscuits.
5 percent—equal to 227,000 kilograms We’re also eliminating partially hydrogenated
(0.5 million pounds) of salt—across our vegetable oils from our biscuits and exploring
biscuit and cheese lines by the end of 2012. ways to reduce or limit these oils in other
products worldwide.
• in Europe, we continued our sodium
reduction efforts with our Dairylea cheese • in australia, we launched Philadelphia
lines, where we’ve reduced sodium by cooking cream, a dairy-based cooking
30 percent since 2002. product that has 60 percent less fat
than regular cooking cream.
SATURATed And TRAnS FATS heart disease
is one of the leading causes of death worldwide.
research has shown that reducing saturated
fats and trans fats may help to improve heart
health. and we know our consumers look at
the fat content of products when trying to make
healthier choices. that’s why over the years,
we’ve been removing saturated and trans fats.
• in the u.s., we reformulated our 2 percent
cheeses so that they taste just as good as
full-fat cheese, and we launched our fat-free
Tassimo skinny Cappuccino.
hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 11 b
hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and
compliance
prODuCtS pOLiCieS pArtnerSHipS SUGAR Consumers are also seeking products in Europe, we offer our Belvita biscuits in
with less sugar, and health officials are 100 calorie packs and our Prince biscuits
encouraging people to eat less as well. so, now contain less than 100 calories per serving.
we’ve taken action: We also sell Cadbury Highlights, a low-calorie
drinking chocolate, with only 40 calories and
• in the u.s., we reduced the sugar in our less than 1 percent fat per serving. throughout
Capri Sun juice drinks. We also introduced the u.s. and Canada, we have a wide variety of
sugar-free Jell-O Mousse cups. biscuits and cheeses in 100 calorie packages.
• in latin america, we reduced the sugar
Kraft foods is a founding member of the
in our Tang powdered beverages and we
Healthy Weight Commitment Foundation—
introduced several sugar-free products,
a multiyear effort launched in 2009 to help
including Clight powdered beverages.
reduce obesity in the u.s., especially among
• in Europe, we reduced the sugar in children. as part of that commitment, we
delICIOUS @ WORK our Belvita biscuits by about 8 percent continue to develop and introduce lower calorie
during the last four years. options of many of our brands. We’ve changed
these are just some of the Kraft
recipes where possible to lower the calorie
foods brands where we’ve either • and globally, we offer sugar-free versions
lowered the sugar content or offer content or reduced portion sizes of existing
of Halls throat lozenges and Trident gums.
a sugar-free option. single-serve products. in 2010, the foundation
members pledged to reduce 1.5 trillion calories
CAlORIeS today, many consumers are
in their portfolios by the end of 2015, using
looking for foods that are either lower in
2008 as the baseline.
calories or come in portion sizes that can help
them control their caloric intake. to meet this
need, we offer a range of calorie- and/or AddInG InGRedIenTS COnSUMeRS WAnT
portion-controlled options. We’re not just removing ingredients consumers
don’t want; we’re also adding more of what
they do want.
hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 12 b
hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and
compliance
prODuCtS pOLiCieS pArtnerSHipS WHOle GRAInS Most consumers don’t get eSSenTIAl VITAMInS And MIneRAlS to help
enough whole grains. so we’re finding new address malnutrition in developing markets, we
ways to increase the whole grain content of offer foods fortified with micronutrients. We
our products. Our researchers have developed don’t simply add the nutrients people need.
a proprietary technology that enables us to We invest in technology that helps ensure
use the whole germ of the grain. When we that the nutrients we use can effectively and
add whole grains to our products, we’re now efficiently be absorbed by the body. and we
able to provide consumers with much more price these products affordably so they are well
of what they want and need, while maintaining within reach for millions of consumers with
the taste they love. limited disposable income. Examples include:
delICIOUS @ WORK • in the u.s., in 2010, we announced that we • Tiger and Biskuat biscuits, sold in indonesia,
would double the amount of whole grains in are fortified with nine vitamins and six
here are some examples where
we’ve increased whole grain our Nabisco cracker brands by 2013. When minerals. developed in collaboration with the
content in our European biscuits. we’re done, Nabisco crackers will account World Food Programme and The Indonesian
for 9 billion servings of whole grains in the Association of nutritionists, our biscuits
american diet each year. supplement the daily nutritional requirements
of a growing child, at an average cost of 100
• in latin america, we added whole grains to
to 500 rupiah (between one and six cents
our popular Trakinas, Belvita, Ceralitas and
u.s.) per pack.
Club Social biscuits.
• globally, we fortify our Tang powdered
• in the Eu, we increased the number of our
beverage drink with vitamin C and add other
biscuit and crisp bread products that contain
key nutrients specific to a country’s needs—
whole grains by 50 percent.
such as iron in southeast asia, vitamin B-12
• and, in China, we launched the country’s and folic acid in China, iodine in the Middle
first whole grain biscuit, which provides East, and vitamins a and E in argentina
10 percent of the recommended daily and uruguay.
amount of fiber in one serving.
hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 13 b
hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and
compliance
prODuCtS pOLiCieS pArtnerSHipS Our affordable nutrition products have small remove and prevent the formation of stains when
price tags, but they are big business for us. used as part of a normal teeth-cleaning routine.
that’s why we chose to invest in expanded
capacity. that way, we can bring more Policies: leading in ways
consumers more of the essential vitamins and
minerals they need at prices they can afford.
that make a difference
nutrition awareness and education are critical to
HeAlTHy SMIleS People chew gum for a helping consumers make better choices about
variety of reasons—to help relieve stress, to their health and well-being. Our marketing and
improve dental health and freshen breath, or communication policies are designed to ensure
to relax and enjoy a refreshing break. research that consumers have clear nutrition information
delICIOUS @ WORK has shown there are many oral health benefits about our products.
from chewing gum … especially if it’s sugar-
few low-income families in Brazil
have access to oral care. so by
free … and the American dental Association AdVeRTISInG TO CHIldRen how we market
the time they are lucky enough and World dental Federation agree. Just the our products matters. that’s why we take great
to see a dentist, their conditions physical action of chewing gum for at least care to market and advertise responsibly—
are often extreme. 20 minutes after eating stimulates saliva flow, especially to children. in 2005, we became
that’s where dentista do Bem helping to prevent cavities by reducing plaque the first company to announce global policies
(dentist for good) comes in. acids and strengthening teeth. for advertising to children*, with three main
sponsored by Trident chewing focus areas:
gum since 2006, dentista do today, more than 70 percent of our gum
Bem provides free dental services, worldwide is sugar-free. in addition, our Trident • We don’t advertise to children under
including reconstruction and
Xtra Care and Trident Total sugar-free gums, age 6 (long-standing policy).
preventive treatment, to
underprivileged children— available in several countries, contain the
• for children ages 6 through 11, we only
until they reach the age of 18. proprietary ingredient recaldent. research has
advertise those products that meet
shown that chewing a recaldent-containing
in 2010, 15,000 children received specific nutrition criteria.
free dental care—and now are
gum—versus a regular sugar-free gum—helps
proudly showing their smiles. strengthen teeth by actively promoting tooth • We don’t advertise in primary or
re-mineralization and protecting against tooth secondary schools.
decay. People want healthy teeth and they want
them to look good, too. Our sugar-free Trident
White gum has been clinically shown to help * in late 2010, the legacy Cadbury business began implementing these
provisions and will be in full compliance by January 2012.
hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 14 b
hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and
compliance
prODuCtS pOLiCieS pArtnerSHipS Our practices have become the model for how Our labels list the amount of each nutrient
and what many other companies advertise to in a given portion of the product and/or per
children. We were a founding member of the 100 grams or milliliters, depending on local
“Market International Food & Beverage Alliance, and,
along with other members, made a global
regulations. in most cases, our labels also
include the percentage that each nutrient
responsibly.” commitment to the World health Organization
to advertise only products that meet specific
provides of the recommended daily value (dv),
daily intake (di) or guideline daily amounts
nutrition criteria to children under age 12 and to (GdAs)—or the local equivalent where available.
Kraft foods Code of Conduct, rule 2
monitor our efforts. We’ve made similar pledges
in australia, Brazil, Canada, india, Mexico, We’re also pursuing front-of-pack labeling that
russia, south africa, turkey, u.s. and all Eu delivers meaningful information at a glance, and
countries. implementing pledges at the national are increasing our front-of-pack labeling around
level encourages local companies to follow our the world. in australia and the Eu, we provide
lead and to improve the types of products they front-of-pack information on calories, based on
advertise to children as well. the percentage of di and percentage of gda,
respectively. in the u.s., we support nutrition
PROdUCT lABelInG since 2007, we’ve Keys a front-of-pack program, developed by the
provided nutrition labeling on products Grocery Manufacturers Association and Food
worldwide. Marketing Institute. and in asia Pacific, we are
currently exploring front-of-pack options with
following the recommendations of the Codex the broader food industry.
Alimentarius, a set of globally recognized,
widely used food standards, our labels provide
information on calories plus seven key nutrients
where space permits: protein, carbohydrates,
sugar, fat, saturated fat, fiber and sodium. On
very small packages and others with limited
space, we list calories, protein, carbohydrates
and total fat, per Codex recommendations.
hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 15 b
hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and
compliance
prODuCtS pOLiCieS pArtnerSHipS We also provide nutrition information online Partnerships: Together
and via toll-free consumer call centers. Our we can make it happen
healthy living websites in several countries
offer lifestyle tips and recipes. and in the u.s., it takes all sectors of society to successfully
our Good eating, Good living website provides fight global hunger, obesity and the underlying
information for people living with diabetes. causes of malnutrition. so, in communities
We also provide this information in spanish throughout the world, we’re working with
at our comidakraft.com website. nongovernmental organizations (ngOs)
delICIOUS @ WORK that demonstrate they know how to make
Whether it’s a hard-to-reach rural as we develop and assess our policies, we a real difference.
area or an urban neighborhood engage with other organizations. for example,
without a grocery store, the Kraft we have participated in consultations with the Our partnerships are built on a long history.
foods Mobile Pantry program is and in 2009, Kraft foods and its foundation
World health Organization on the subjects of
making a difference for families
sodium intake and advertising to children. in renewed their commitment, providing
living in the u.s. “food deserts.”
Brazil, we’ve facilitated conversations among $180 million of cash and food over three years
in 2009, our company and our technology and nutrition teams and to leading community organizations that help
foundation pledged $4.5 million meet immediate needs and create long-term
leading nutritionists and health professionals
over three years to feeding america.
the mobile pantry program is on local nutritional needs. in Europe, our change. these partners work to give families a
bringing more food—and better biscuit research and development teams take “hand up” rather than a “handout” by providing
nutrition—to children and families part in global forums on whole grains with key the nutrition education and economic
who need it most. nutrition and public health leaders, including empowerment to create lasting change.
the fleet of 25 mobile pantry trucks the european nutrition Congress and
brings fresh produce, protein and HeAlTHGRAIn Forum. Whether it’s helping farmers grow and sell
dairy products into communities their cocoa crops or teaching families the
where access to food is challenging. and our own Worldwide Health & Wellness fundamentals of good nutrition, together
they’ll deliver 50 million meals over with our partners, we are providing the
Advisory Council informs our work and helps
three years.
guide our efforts in providing consumers with necessary tools that empower communities
www.feedingamerica.org more choices to meet their needs in health to successfully combat hunger and related
and well-being. health issues themselves.
hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 16 b
hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and
compliance
prODuCtS pOLiCieS pArtnerSHipS PARTneRSHIPS On THe FROnTlIneS OF • empowering local food entrepreneurs—
FIGHTInG HUnGeR And MAlnUTRITIOn We know that when women earn income,
90 percent of it gets reinvested into families.
“ If women in rural areas had indonesia and Bangladesh rank fifth and sixth, so to help break the cycle of poverty, we’re
respectively, for the highest rates of chronic helping women operate mobile retail stores
the same access to land, child malnutrition. so in 2010, our company
technology, financial services, (bikes or carts) that sell nutritious foods,
and foundation entered a five-year public- soap and agricultural supplies. this helps the
education and markets as private partnership with the World food women make a living while bringing needed
men, agricultural production Programme to tackle the root causes of products and supplies to their communities.
could be increased and the malnutrition. Called Project laser Beam, our
part of the program has three components: • encouraging lifelong healthy habits—
number of hungry people
in addition to working with farmers
reduced by 100–150 million.” and entrepreneurs, we’re also training
• Supporting local farming—given that
The State of Food and Agriculture, nearly 75 percent of families facing hunger community leaders to deliver nutrition
2010–2011 live in rural areas, often the most immediate education at schools and other places
solution is to support local agriculture. to where families gather.
www.fao.org
that end, Project laser Beam is helping
to establish women-operated rural farms
that grow vegetables and raise livestock.
By giving women access to seeds, fertilizers
and credit, we equip them to provide food
for their families and offer a chance for
long-term income.
hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 17 b
hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and
compliance
prODuCtS pOLiCieS pArtnerSHipS Our foundation has been working with Save in China, since 2009, we’ve built 100
the Children since 2009 to help malnourished “Kraft Hope Kitchens” in five rural Chinese
families in southeast asia. today, they’re provinces in partnership with the China youth
working in indonesia and the Philippines to development Foundation. When we launched
tackle malnutrition by teaching healthy eating the program, surveys showed nearly 70 percent
and hygiene habits. of students at these schools felt hungry during
the day and more than 30 percent sometimes
• indonesia: With the help of save the couldn’t get enough to eat. the kitchens
Children, the foundation is working through provide children hot, safely prepared foods. they
a unique system of female volunteers who provide teachers, parents and staff with new
consider it a privilege to help other mothers skills for nutritious cooking and safe food
and kids in their communities. Children and handling. By the end of 2010, we had helped
delICIOUS @ WORK their moms are learning nutrition practices thousands of children get hot, nutritious meals.
and taking those lessons home so the whole More than that, we are giving them—and their
When amy abing came to save the
family eats better. and it’s working. the villages—a start toward long-term health.
Children’s gardening training in the
Philippines, she seemed discouraged government is expanding the program.
and malnourished. a single mother
• philippines: Our foundation is also working
with a kidney ailment, she earns
$8 a month. timidly, she said there to help mothers set up and maintain urban
were miserable days when she and vegetable gardens. With very limited space,
her two children missed meals. they use recycled plastic containers to grow
local crops, such as pechay, kangkong and
at the class, sponsored by the
Kraft foods foundation, amy learned labanos. this program won the 2010 asian
how to plant and maintain an urban Corporate social responsibility award.
garden. from her small plot, she
now feeds her two daughters and
even has a little left over to sell to
neighbors. “nowadays, my children
and i eat cooked rice with boiled
vegetables dipped in vinegar with
salt and sliced onions,” she boasts.
www.savethechildren.org
hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 18 b
hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and
compliance
prODuCtS pOLiCieS pArtnerSHipS PARTneRSHIPS PROMOTInG • u.S.: Our foundation works with The
HeAlTHy lIFeSTyleS national latino Children’s Institute (nlCI)
and the yMCA of the USA (y-USA) to
“ 38 percent of Hispanic kids Just as we’re working with others to fight address the obesity epidemic among latino
hunger, we’re also partnering to help families children in the u.s. in 2002, we partnered
ages 2 to 19 are overweight get healthy.
or obese, compared with with nlCi on a program called Salsa, Sabor y
Salud (“food, fun and fitness”). Created by
32 percent of other kids the • u.S.: Millions of americans live in “food latinos for latinos, this program engages
same age.” deserts,” and many families must travel whole families to eat healthier food and
long distances to reach stores that sell increase their physical activity. now our
Journal of the American Medical fresh produce and other foods necessary to
Association, 2010 foundation is working with the Y-usa to
maintain a healthy diet. The Food Trust is our expand Salsa, Sabor y Salud into 130
www.ama-assn.org foundation’s partner to increase access to communities nationwide.
fresh foods at local supermarkets, with the
aim of ultimately reducing the prevalence of • uK and russia: Childhood obesity is on
obesity and other diet-related issues in the rise in both of these countries. in 2004,
underserved communities. the food trust we launched an initiative in the uK with
advocates policies that bring new stores education experts called health4schools.
offering fresh foods to help build healthier it’s an award-winning program that teaches
communities. in 2008, we began working children to grow vegetables, prepare healthy
with the food trust in illinois. and we’re now salads and play active games. after the uK
expanding to four more states: georgia, launch, we quickly realized that russian kids
Massachusetts, Minnesota and texas. could benefit as well. so, our foundation
partnered with the Charities Aid Foundation
to help families make smarter food choices
and become more physically active.
health4schools has also enabled several
russian schools to upgrade cafeterias
and purchase new gym equipment.
hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 19 b
hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and
compliance
prODuCtS pOLiCieS pArtnerSHipS • Brazil: the country’s most prominent charity Working toward the day
helped us understand that malnutrition is when everyone can eat
pervasive in the favelas (urban slums) and
remote rural regions of Brazil. Poor children
delicious and live well
don’t have enough to eat and often get sick Challenges don’t come much bigger than
from parasites in the soil and water. With global hunger and obesity. solving them
InMed Partnerships for Children, the Kraft takes collaboration. We’re doing our part by
foods foundation introduced a school-based increasing the number of “better choice”
health program that teaches children to grow options in our product portfolio to help
fresh produce for their schools and the consumers as they strive to eat better; following
surrounding community. Moms are starting marketing and communications policies that
delICIOUS @ WORK their own gardens and cooking healthier help people make informed choices and
meals. and school food workers are learning understand how our foods fit into a balanced
at a small school in Brazil, the play
is the thing. students producing
about food safety and nutritious cooking. the diet; and partnering with others to take action
a retelling of Little Red Riding program also supports low-cost, low-tech and get the results that enable lasting change.
Hood cast the Big Bad Wolf as water purification, along with treatment for We’ll continue working to help speed progress
a vegetarian who wanted to eat children with intestinal parasites and anemia. toward the day when everyone in the world eats
the vegetable garden. delicious and lives well.
One boy, normally shy and stunted
from malnutrition, joined in like
never before. his kinetic enthusiasm
galvanized the class as he
transformed into a natural leader.
“We were caught off guard by
how strongly the health in action
program with inMEd Partnerships
for Children hooked the kids to
think about nutrition in a fun way,”
observed a member of our
visiting team.
www.inmed.org
hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 20 b
health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and
compliance
SuStAinABiLity: sustainability is about conducting business
in a way that is environmentally, socially and
nOW and economically responsible. it’s about living
today, while being mindful of tomorrow.
fOr futurE
the demands being placed on the planet
are growing. Experts predict that the world’s
population will reach just about 9 billion by
gEnEratiOns
2050. and standards of living are expanding
in much of the developing world. these
developments put incremental strain on the
planet. in some areas, experts find that natural
resources are being depleted faster than the
earth can replenish them. Clean water and
arable land are becoming scarce. Clearly, we
must think and behave differently.
as a food company, Kraft foods is dependent
on the earth for the raw materials we use every
day to make our products. We are changing the
way we do business to become more sustainable.
given the size and complexity of the issues,
“development that meets the needs of the we’re partnering with others—peer companies,
present without compromising the ability of governments, ngOs, farmers, suppliers and
future generations to meet their own needs.” consumers—to find innovative, scalable solutions.
united nations–sponsored Brundtland Commission report
sustainaBilitY: nOW and fOr futurE gEnEratiOns Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 21 b
health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and
compliance
s i m p rove
ti nuou me
nt
Six areas of focus By the end of 2015, using 2010 as our base
c on year, we plan to*:
sustainability is a strategic business priority for
TRANSPORTATION/ AGRICULTURAL Kraft foods. We focus on areas that matter • increase sustainable sourcing** of
DISTRIBUTION COMMODITIES most to our business and where we can make agricultural commodities by 25 percent.
the biggest impact. Our “sustainability Wheel”
represents our focus areas and serves as our • Eliminate 50,000 metric tons (100 million
framework for building sustainability into pounds) of packaging material.
WASTE design PACKAGING
everything we do. We use the wheel to measure • reduce energy use in our manufacturing
and reward improvement. Our six areas of focus plants by 15 percent.
are: agricultural commodities, packaging, energy,
water, waste and transportation/distribution. • reduce energy-related carbon dioxide
WATER ENERGY
emissions in our manufacturing plants
in 2006, we set aggressive five-year goals*. in by 15 percent.
2010, after integrating the Cadbury and lu • reduce water consumption in our
businesses and looking to continuously improve manufacturing plants by 15 percent.
Sustainability Wheel
upon our successes, we expanded our initial
• six areas of focus. goals. for our 2011–2015 goals, we’ve added • reduce waste at our manufacturing
• design in sustainability upfront. sustainable agriculture and transportation plants by 15 percent.
• Continuously improve going forward.
to what we’re measuring. • reduce 80.5 million kilometers (50 million
miles) from our transportation network.
*Measured against total production
**“sustainably sourced” defined as third-party certification or verification
sustainaBilitY: nOW and fOr futurE gEnEratiOns Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 22 b
health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and
compliance
004
UndeRSTAndInG OUR IMPACT We also use environmental management
1:2
00
systems in our manufacturing facilities
the more we can see and understand the
14
ISO
worldwide. in 2010, dnV, a leading global
potential impact our actions may have, the
registrar for isO, certified that our systems met
more effective our efforts can be. to improve
the requirements of ISO 14001, the premier
upon what we’ve done, we seek third-party
international standard for environmental
insight, which helps us evaluate our progress
management. isO 14001 provides a framework
and determine where to improve or adjust.
for continuous improvement within our facilities.
a key advisor is environmental Resources
Cadbury plants, which we acquired in 2010,
Management (eRM), an independent global
were not included in the current isO 14001
environmental management and technical
certification. We are revising our environmental
consulting firm. ErM has verified the
management systems to provide consistent
environmental performance indicators for
standards for all our facilities.
our manufacturing facilities that we report
in the following pages.
sustainaBilitY: nOW and fOr futurE gEnEratiOns Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 23 b
health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and
compliance
agriCultural
COMMOditiEs Our growing role in driving SUSTAInABly GROWn FOR
sustainable agriculture OUR COnSUMeRS
for Kraft foods, sustainability starts at the farm. Buying certified commodities is a powerful
sustainable agriculture promotes the long-term means of promoting sustainable farming,
viability of crops, the preservation of fertile supporting farmers and enabling consumers to
soil, the economic well-being of farmers and make informed choices. Our goal is to increase
farming communities, and the health of sustainable sourcing of agricultural commodities
ecosystems. as one of the world’s largest by 25 percent by 2015.
purchasers of cocoa, coffee, cashews and other
commodities, we can influence the future of We’re working to help bring more products to
those crops and the communities that grow market that have sustainably grown ingredients.
them. We’re partnering with other companies, in a different way, certification addresses the
governments and ngOs around the world to three pillars of sustainability—social, economic
increase our support of sustainable farming. and environment—by setting standards farmers
must meet and helping them to command a
the crops we buy often tell a story of family premium for their crops. the ultimate goals of
farming. Whether it’s coffee, cocoa, cashews these standards include decent wages, access
these Kraft foods brands have product
lines that carry fairtrade or rainforest or many of the other crops we buy, a large to health care and education for farming
alliance certification seals. portion of them come from developing communities; reductions in water pollution,
countries. and a variety of circumstances, soil erosion and excessive pesticide use; and
the Côte d’Or chocolate business
such as political unrest, poor soil conditions, more. smarter farming can lead to healthier
received the 2010 rainforest alliance
sustainable standard-setters award lack of infrastructure and more, contribute to farm communities and better quality crops.
for its strong commitment to improve the challenges faced by farmers. that’s why
the environment and support local we have supported farming communities and
communities. sustainable agriculture programs for years.
sustainaBilitY: nOW and fOr futurE gEnEratiOns Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 24 b
health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and
compliance
agriCultural in 2010, we continued to be the largest buyer • in ghana, we’ve quadrupled the volume of
COMMOditiEs
of coffee from Rainforest Alliance Certified cocoa sold under fairtrade terms, resulting
farms and the largest buyer of cocoa beans in £2.3 million ($3.7 million) in fairtrade
from certified Fairtrade or rainforest alliance social premiums. Communities have used
farms. here’s how that support is making the premiums to purchase mobile health
a difference: clinics, farm equipment, farm-skills training
and more.
• in 2010, our purchases of rainforest
• in the daloa region of Côte d’ivoire, one of
alliance Certified coffee helped support
the farm cooperatives we work with used a
more than 430,000 workers tending more
portion of its premium from selling rainforest
than 85,500 hectares (210,000 acres)
alliance Certified cocoa to build a small
in 12 countries in africa, Central america,
delICIOUS @ WORK health-care facility staffed by government-
south america and southeast asia.
assigned health professionals. for the first
Our Canadian confectionery team • We’re helping farmers through the Cocoa time, farmers and their families can find
created the Bicycle factory in 2009,
to rally Canadians to send much-
Partnership, the £45 million ($72 million), local treatment for ailments, such as malaria,
needed bicycles to the school kids in 10-year commitment to cocoa farmers in and mothers can deliver their babies close
our cocoa-growing communities in the dominican republic, ghana, india and to home.
ghana to help increase their access indonesia launched by our Cadbury team
to education. in 2008.
the program is based on the simple
notion that ”small purchases can make
a big difference for people in need.”
Each universal Product Code from
any participating item entered at
www.thebicyclefactory.ca turns into a
virtual bike part. for every 100 virtual
bike parts, one real bike gets sent
to ghana.
the campaign has delivered more
than 9,000 bikes in 120 communities.
sustainaBilitY: nOW and fOr futurE gEnEratiOns Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 25 b
health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and
compliance
agriCultural THe POWeR OF WORKInG WITH OTHeRS By joining these gates foundation initiatives,
COMMOditiEs
we hope to help break the cycle of poverty
another way we support sustainable agriculture
for 200,000 cocoa farmers and 150,000
is by taking part in industry programs that
cashew farmers. and the results are starting
delICIOUS @ WORK
boost development in commodity-producing
to materialize. in 2010, we purchased
communities. By collectively working with others,
Other examples of partnering: 1,000 metric tons (2.2 million pounds) of
we can make a greater impact.
cashews that were grown sustainably and
• in 2009, we joined the World
processed in sub-saharan africa.
economic Forum’s initiative called in early 2009, we joined industry, government
new Vision for Agriculture. the goal and nongovernmental partners in two Bill &
of the initiative is to define ways to CUlTIVATInG A MORe ReSPOnSIBle
provide food security for all in an
Melinda Gates Foundation initiatives that are
environmentally sustainable way investing $90 million over five years to advance AGRICUlTURAl SUPPly CHAIn
while generating economic growth. sustainable production of cocoa and cashews
Many crops we buy come from areas faced
• We are a founding member
in West africa.
with political issues or traditions that are not in
and financial supporter of the line with our sourcing standards. in order for us
4C Association. this coalition of • the World Cocoa Foundation manages the
producers, trade, industry and ngOs to source in a way that meets our standards, we
first initiative, called the Cocoa livelihoods
aims to help farmers lower costs, work with others to address such concerns as:
Program, and is providing $40 million in
improve quality and efficiency, and
gain access to markets and credit. cash and related support to increase the
COCOA lABOR ISSUeS Kraft foods is involved
incomes of small-scale cocoa farmers in
• We’ve also joined the World Cocoa in substantial efforts to address forced labor
Cameroon, Côte d’ivoire, ghana, liberia
foundation and USAId in creating and the worst forms of child labor in cocoa
a program called eCHOeS, which and nigeria.
farming. While we don’t own or control any
strengthens cocoa-growing
communities in Côte d’ivoire and
• deutsche Gesellschaft für Technische farms, we have worked since 2001 with
ghana by training young people and Zusammenarbeit (GTZ) GmbH manages the governments of the Côte d’ivoire, ghana
teachers in vocational agriculture. the second program, the African Cashew and the u.s., and our peer companies, to
through EChOEs, we’ve helped Initiative, which is providing about enhance education, support economic
train more than 5,200 students and $50 million in cash and other support development and promote responsible
more than 7,100 teachers.
to train producers in Benin, Burkina faso, labor practices.
for more examples, see nourishing Côte d’ivoire, ghana and Mozambique.
Our Agricultural Supply Chain.
sustainaBilitY: nOW and fOr futurE gEnEratiOns Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 26 b
health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and
compliance
agriCultural PAlM OIl And deFOReSTATIOn Palm oil is AnIMAl WelFARe We understand that there
COMMOditiEs
used in a large variety of products worldwide is concern about the welfare of animals raised
and demand is growing. that demand, for food. We expect our facilities and those of
combined with uncontrolled harvesting and our direct suppliers that handle live animals to
production practices that some producers meet all government regulations and industry
employ, is contributing to deforestation in standards on animal welfare.
the tropics.
in the u.s., we adhere to science-based
We support the goals and efforts of the standards developed by trade organizations like
Roundtable on Sustainable Palm Oil (RSPO) the American Meat Institute, national Turkey
delICIOUS @ WORK
and we buy from its members. Federation, United egg Producers and national
in france, we’re sourcing wheat in Chicken Council. direct suppliers must
a more integrated way to reduce the Our palm oil purchases amount to less than demonstrate compliance through annual
environmental impact of farming.
0.6 percent of worldwide production. in 2010, audits conducted by a third party. in the Eu,
We’re using local and sustainably we began buying GreenPalm certificates our suppliers have to comply with established
sourced wheat for LU biscuits. covering more than 25 percent of our palm oil animal welfare regulations as a condition of
nearly 700 farmers follow special purchases. greenPalm is an rsPO-endorsed exporting goods to these countries.
practices growing 8,000 hectares
certificate-trading program that provides
(20,000 acres) of wheat to limit
their environmental impact. farmers incentives to producers whose plantations the welfare of egg-laying hens is a concern
have reserved parts of their fields for conform to its criteria. We also purchased for some consumers and customers. this
bee-friendly flowers to help support segregated certified palm oil. using this year’s year in the u.s., we will purchase one million
one million bees—encouraging purchases as a guide, we expect to be able to eggs from cage-free facilities. in the Eu,
pollination and biodiversity for cover 100 percent of our purchases once the we are transitioning away from battery cage
future generations.
supply of certified palm oil accounts for about eggs in accordance with regulations banning
one-third of the world’s total supply. We expect the use of conventional cage systems by 2012.
our suppliers to reach this goal by 2015.
sustainaBilitY: nOW and fOr futurE gEnEratiOns Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 27 b
health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and
compliance
PaCKaging
Smarter packaging post-consumer recycled material in a given
package design, along with the amount of
Packaging is one of the first and last energy and carbon dioxide emissions required
experiences consumers have with our products. to create the package. the Eco-Calculator also
that’s why we’ve taken a comprehensive tells packaging designers how efficiently they’re
approach to packaging—one that cuts waste, using materials and how well their designs will
conserves natural resources and gives users fit our products’ physical dimensions. the tool
a more satisfying experience. is used along with other business practices,
like economic assessments and ability to
Between 2005 and 2010, we cut nearly manufacture, in deciding a final design.
100,000 metric tons (200 million pounds) of
packaging from our supply chain. We’re working Examples of other recent packaging reductions,
delICIOUS @ WORK to eliminate another 50,000 metric tons based on annual totals, include:
Kenco coffee refill pouch (100 million pounds) by 2015. reductions like
97 percent less packaging the 20 percent we cut from packaging for LU • u.S.: instant Maxwell House coffee jar
compared to the glass jar, formerly Le Petit Ecolier biscuits in france in 2010 are
the product’s sole container. material change—6,500 metric tons
helping us on our way. (14.4 million pounds).
Oscar Mayer Deli Creations
30 percent less paperboard; Key to our reduction in packaging is our • u.S.: Planters peanuts shipper reduction—
eliminating 544 metric tons 1,225 metric tons (2.7 million pounds).
Packaging Eco-Calculator™. it’s a tool we
(1.2 million pounds) of packaging.
invented to help our packaging developers • Central and eastern europe, Middle east and
Milka chocolate bars create more efficient, sustainable solutions Africa: Tang powdered beverage can material
60 percent less packaging weight based on data from the u.s. Environmental
from fewer layers; saving 2,600 change—500 metric tons (1.1 million pounds).
Protection agency, the u.s. department of
metric tons (5.7 million pounds) in • eu: Lacta chocolate tablets film layer
Europe and rolling out the process Energy and packaging industry groups. the
in latin america. Eco-Calculator figures the percentage of reduction—145 metric tons (320,000 pounds).
sustainaBilitY: nOW and fOr futurE gEnEratiOns Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 28 b
health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and
compliance
PaCKaging Besides improving the design in some of our in 2008 and 2009, we were the official food
packaging, we’re also using more sustainable sponsor of Recyclebank®, a company that
materials. in north america, the majority of rewards consumers for recycling. Currently,
people can recycle more than 70 percent our Back to Nature brand is participating in
(by weight) of our packaging. Most is made the Recyclebank Partners in Purpose campaign,
from paper, a renewable material. which aims to educate consumers on how to
make smarter, greener shopping choices.
for consumers, governments and trading We’re also collaborating with industry packaging
partners, having a universally accepted organizations in australia, Europe, latin america
definition for sustainable packaging—along and elsewhere to boost recycling rates.
with metrics to measure progress—is important.
that’s why we’re co-leading The Consumer
Goods Forum’s Global Packaging Project with global Packaging reduction
the aim of arriving at a common definition of Weight (Mt) Eliminated since 2005
sustainable packaging and consistent metrics.
100,000 Mt
ReCyClInG Packaging has little benefit if
consumers don’t recycle. to increase recycling
rates, we’re using more recycled content in
much of our packaging and partnering with
others on education campaigns. 2005 2006 2007 2008 2009 2010
sustainaBilitY: nOW and fOr futurE gEnEratiOns Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 29 b
health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and
compliance
EnErgY
Reducing energy to help in addition to reducing energy
combat climate change consumption, we’re also eliminating
our use of chlorofluorocarbons (CfCs)
in light of concerns over climate change, and hydrofluorocarbons (hfCs), which
we’re looking across our supply chain at have been linked to global warming and
what’s directly and indirectly under our deterioration of the ozone. By the end of
control. to address our direct impacts, we 2010, we met our goal to eliminate CfCs.
monitor manufacturing and our transportation and, we’re making great progress toward
fleet. for our indirect impacts, we focus on our goal to eliminate hfCs by 2020.
our agricultural commodity purchases
and transportation operations. applying a in 2010, we joined our fellow board members
pragmatic approach allows us to concentrate in supporting The Consumer Goods Forum’s
on areas we need to understand better and resolutions to fight climate change by
delICIOUS @ WORK where we can be most effective. addressing deforestation and promoting
Our manufacturing plants account sustainable refrigeration. We resolved to do our
for 92 percent of our electrical from 2005 to 2010, we reduced our energy part in achieving the forum’s goal of assisting
consumption. By reducing electricity use by 16 percent and our energy-related countries to achieve net-zero deforestation.
use, we save fossil fuel burned to carbon dioxide emissions by 18 percent. By
generate power and the resulting
greenhouse gases.
2015, we’re aiming to reduce our energy use in december 2010, we signed the Cancun
and energy-related carbon dioxide emissions Communiqué on Climate Change, which
by an additional 15 percent each. We’re builds on the progress of the Copenhagen
making progress by changing our operations, Communiqué, that we joined in 2009. like its
improving facilities and training employees to predecessor, the Cancun Communiqué aligns
modify their behavior. We’re also investing directly with our view that the united nations
in new technologies for lighting, heating, climate framework agreement makes sense
refrigeration, processing and packaging. for society generally and will ultimately benefit
our business.
sustainaBilitY: nOW and fOr futurE gEnEratiOns Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 30 b
health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and
compliance
EnErgY FIndInG InnOVATIVe SOlUTIOnS We invest in energy savings in our office
FOR OUR eneRGy needS buildings and distribution centers, too. in
2009, our corporate headquarters campus in
One way we’re reducing the percentage of northfield, illinois, u.s., earned the energy Star
fossil fuels we consume is by tapping into rating from the u.s. Environmental Protection
alternate energy sources. sometimes a viable agency. Elsewhere, several of our buildings in
source exists right in our factories. for example, australia, Brazil, the Philippines and switzerland
at our lowville, new York, u.s., plant, we’ve also have strong efficiency records.
discovered that by treating whey, a natural
by-product of cheese-making, in an anaerobic
“digester,” we can produce enough methane global Manufacturing Energy Consumption
delICIOUS @ WORK to replace about 30 percent of the natural (gj/ton) and CO2 Emissions (kg/ton)
gas the plant uses annually. reclaiming whey % Change since 2005
Known as the lightcube, our
eliminates the need for disposal, saving diesel
building in Zurich is one of our most
energy-efficient facilities. it uses less fuel and carbon dioxide emissions. it also -16%
-18%
energy—50 percent for lighting and results in cleaner wastewater. We’re exploring
60 percent for ventilation—than ways to convert whey to energy across our
comparably sized facilities. dairy-products network.
2005 2006 2007 2008 2009 2010
at some of our plants, we’re exploring different
Global manufacturing energy consumption
ways to save energy generated from fossil fuels
CO2 emissions
and implement innovative solutions. some
factories are using coffee grounds to generate
energy, while our plant in induri, india, uses
bagasse, the waste from the local sugar
industry. We’re reclaiming oven heat and using
solar energy to heat water. We’re experimenting
with wind turbines on factory roofs and
improving control of our utilities. and we’re
simply remembering to turn off the lights.
sustainaBilitY: nOW and fOr futurE gEnEratiOns Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 31 b
health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and
compliance
WatEr
Watching our water use • Our Puebla, Mexico, plant treats its
wastewater on site and supplies the local
a growing global population is making more authorities with clean water—free of charge—
demands on the planet’s water supply, so for irrigating the city’s green spaces.
conservation is needed around the world.
• We treat the wastewater from our Chirk, uK,
We’ve reduced water consumption in our plant on site and reuse it in boilers, cooling
manufacturing facilities by 30 percent since towers and other ways that do not bring the
2005. With a goal to reduce water use an water into contact with food. as a result,
additional 15 percent by 2015, we’re reusing it, we’ve reduced freshwater consumption at
improving processes, maintaining equipment Chirk by 20 percent.
and educating employees. • at our Cieszyn, Poland, facility, we’ve reduced
water use by 39 percent since 2005 through
delICIOUS @ WORK We’re working with global experts to estimate continuous improvement efforts.
the amount of water used in our factories, as
looking to reduce water use at well as the “water footprint” of the ingredients • We reduced water at our hemelingen,
our Vegemite spread plant in Port germany, plant in 2009 by 19 percent
and packaging materials we purchase and the
Melbourne, australia, the team compared with the previous year through
consolidated manufacturing water used in our factories.
processes and made innovative
improvements to the cleaning process.
changes. the results: Other examples of how we’re conserving
• 58 percent reduction in
and reusing water around the world:
water needs. global Manufacturing Water
• at our ringwood plant in Melbourne, Consumption (m3/ton)
• 52 percent decrease in energy % Change since 2005
australia, we’ve installed a rainwater
consumption.
harvesting system and use the captured
• More than 65 percent elimination rainwater in our boilers and cooling towers.
of wastewater discharge. When we have more than we can use, we -30%
• recovered and treated wastewater supply a neighboring school with water to
streams for use in building local irrigate its playing field.
roads, saving about one million 2005 2006 2007 2008 2009 2010
liters (264,200 gallons) of potable
water per month.
sustainaBilitY: nOW and fOr futurE gEnEratiOns Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 32 b
health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and
compliance
WastE
Redefining waste
global Manufacturing Waste
We’ve reduced net waste from our generation (kg/ton)
manufacturing plants by 42 percent from % Change since 2005
delICIOUS @ WORK 2005 levels. By 2015, our goal is to reduce
waste by an additional 15 percent. Our
We have 26 plants in nine
countries that have hit zero
strategy is simple: generate less waste and -42%
waste-to-landfill status. find new uses for the waste we do produce.
Austria norway solid waste generated from manufacturing 2005 2006 2007 2008 2009 2010
Bludenz Oslo accounts for more than 99 percent of our
vienna
Sweden total waste. We recycle or reuse about
Belgium gavle 90 percent of our manufacturing waste.
halle in some cases, we’re using manufacturing
herentals Switzerland
Bern by-products as energy sources.
Canada (Ontario)
East York United States in 2007, we launched a pilot program with
Bethlehem, Pa
Mississauga Sonoco, a global packaging and recycling
scarborough fair lawn, nJ
new ulm, Mn company, to substantially reduce waste in
France Oakville, Ca our plants. Our objective: to send zero waste
Cestas Philadelphia, Pa to landfills.
laverune suffolk, va
toulouse
Germany
Berlin
donauwörth
Elmshorn
fallingbostel
hemelingen
holzhafen
lörrach
sustainaBilitY: nOW and fOr futurE gEnEratiOns Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 33 b
health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and
compliance
WastE TURnInG TRASH InTO USeFUl PROdUCTS We also send post-manufacturing waste to
seventy percent of our north american terraCycle. that post-manufacturing waste,
packaging is recyclable. for the remaining combined with what the brigades collect,
30 percent that can’t be recycled, we’re has enabled us to keep nearly 3.7 metric tons
working to find alternatives to address its (8,100 pounds) of waste from 800 million
end of life. One alternative is to use it a second packages from going to landfills.
time, or upcycle. in 2007, we partnered with
TerraCycle™, a company that collects post-
consumer and post-industrial packaging and
turns the waste into merchandise.
the system uses collection brigades that are
typically run out of community centers, schools
and youth groups. Kraft foods compensates
the collection teams for each package they
collect and send in.
today, Kraft foods is the largest sponsor of
these Kraft foods brands participate
terraCycle, supporting the organization in
in the terraCycle™ program. argentina, Brazil, Canada, ireland, Mexico,
sweden, the uK and the u.s. with more
than 85,000 brigades and an estimated
12 million people collecting waste worldwide.
as a result of their efforts, brigades received
approximately $1.6 million in charitable
donations in 2010. the organizations use the
money they receive to buy equipment and
supplies or donate it to their charities of choice.
sustainaBilitY: nOW and fOr futurE gEnEratiOns Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 34 b
health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and
compliance
transPOrtatiOn/
distriButiOn Moving products more efficiently another solution is to use alternative modes of
transportation. By shipping wheat to our toledo,
improving our global transportation and Ohio, u.s., facility by waterway rather than road,
distribution network so that we move products we’ve replaced 10,000 truck shipments that
and raw materials more efficiently saves truck have cut nearly 2,000 metric tons (4 million
fuel, cuts carbon dioxide emissions and pounds) of emissions. in Brazil, in just six
reduces traffic. since 2005, improved internal months of shipping by water, we cut 125 truck
processes, along with our collaborations with shipments—390,000 kilometers (242,000
customers and suppliers, have eliminated miles) and 300 metric tons (more than
approximately 97 million kilometers (about 600,000 pounds) of carbon dioxide emissions.
60 million road miles). By 2015, our goal
delICIOUS @ WORK is to eliminate another 80 million kilometers the right technology makes a difference.
as members of the u.s. (50 million road miles) from our global We’re using the Oracle® transportation
Environmental Protection agency’s transportation network. Management system to optimize truck
smartWaysM transport Partnership, movements and reduce “empty miles” in our
we’ve reduced truck idling, lowered u.s. operations. similarly, the autovlB software
sometimes the answer is literally right under
our corporate speed limit and from Transportation/Warehouse Optimization
equipped our trucks with fuel-saving our feet, as in our underground refrigerated-
storage facility built into the natural limestone enables us to improve payload by configuring
technology. We’ve also adopted
other strategies that enable our caves at springfield, Missouri, u.s. not only loads with a mixture of heavy and light products,
trucking operations and those of our do the naturally cool caves require 65 percent eliminating more than 9,000 truck shipments
freight carriers to use less fuel and less energy than conventional storage facilities, and 9.6 million kilometers (6 million miles).
emit fewer greenhouse gases.
their large size and central location enable us
in 2009, we were one of just five to consolidate inventory and transport our
consumer products companies to products to our customers more efficiently.
earn the smartWay Excellence award. that’s an annual savings of 680,000 liters
(180,000 gallons) of fuel, 1,800 metric tons
(4 million pounds) of carbon dioxide emissions
and more than 1.6 million kilometers (one million
miles) of truck travel.
www.epa.gov/smartway
sustainaBilitY: nOW and fOr futurE gEnEratiOns Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 35 b
health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and
compliance
BeInG MORe TRAnSPARenT companies that demonstrate good internal
In OUR eFFORTS data management practices for understanding
greenhouse gas emissions, including
it’s important to do the right things for current energy use.
and future generations. it’s equally important to
show what we’re doing. that’s why we participate in 2010 we were listed on the dow Jones
in internationally recognized indices. Sustainability World Index for the fifth straight
year, the dow Jones Sustainability north
as an example, we’ve been a part of the Carbon America Index for the sixth year and listed
disclosure Project (CdP) since 2005. from the as a Cii leader by Maplecroft Climate
beginning of our participation, we have formally Innovation Indexes (CII), placing us in the
reported scope 1 and scope 2 emissions. in 100 top-performing companies in Maplecroft’s
2009, we began reporting on a portion of benchmarking of the largest 350 u.s. companies.
scope 3. Cadbury, which we acquired in 2010,
had also reported to the CdP since 2005,
appearing regularly in its leadership index. Focusing on sustainability
in 2010, we submitted a combined report to We all have a role to play in caring for people,
the CdP that included emission data from land and resources that touch our daily lives. We
both legacy Cadbury and Kraft foods. Our can’t do everything. But we can work to make a
carbon-emissions profile is available on the difference in the areas where we’re big and that
CdP website. are big to us. and that’s why we’ve taken a
strategic approach to our sustainability efforts.
in 2010, we were recognized for our efforts
to reduce energy consumption and carbon Our accomplishments to date are increasing
emissions in two important ways. first, the sustainable sourcing of agricultural commodities,
Carbon disclosure Project listed us in its 2010 cutting packaging materials, reducing energy
Carbon disclosure leadership index for the and water use, finding new productive uses for
first time, ranking us among the top-scoring our waste and smarter distribution of our
10 percent of global 500 and s&P 500 products. Every step, no matter the size, is a
companies that report emissions to the CdP. step in the right direction. Can a company do
We’re the only u.s.-based food company to well by doing good? We say yes!
be listed on the global index, which recognizes
sustainaBilitY: nOW and fOr futurE gEnEratiOns Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 36 b
health and well-being sustainability fOOd safEtY and QualitY Workplace and culture governance and
compliance
FOOD SAFety AnD QuALity: Providing food and beverage choices that are
safe is paramount to our success. it’s the core
BEttEr PraCtiCEs of our heritage and an essential part of our
culture. Maintaining trust means offering quality
products that people can rely on and feel good
dElivEr thE BEst
about serving to their family and friends.
Setting and ensuring others
rEsults follow high standards
We employ a comprehensive, quality chain
management system to ensure that our food
is safe. it’s based on ISO 9001:2000, an
internationally recognized family of quality
management standards. in addition, we
supplement the isO standards with safety and
quality standards developed specifically for our
business. We also work with governments and
industry partners around the world to share
learnings because we know that all food safety
issues, even when they are not ours, can shake
consumer trust.
“Make food that is safe to eat.”
Kraft foods Code of Conduct, rule 1 for example, several years ago, we announced
a new ingredient technology that helped inhibit
the growth of Listeria in cooked meats. to
expedite industry knowledge and use of this
food safety innovation, we shared the technology
with the meat industry and published the
information to make it widely available.
fOOd safEtY and QualitY: BEttEr PraCtiCEs dElivEr thE BEst rEsults Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 37 b
health and well-being sustainability fOOd safEtY and QualitY Workplace and culture governance and
compliance
similarly, in 2010, Kraft foods led an industrywide will visit the site. Otherwise, we may work with
delICIOUS @ WORK initiative to create and publish guidance for the third-party auditors. in all cases, it’s critical that
driven by our philosophy of safe production of nuts and made it available to the auditors are properly trained, managed and
continuous improvement, we nut suppliers and producers. adhere to a common set of criteria.
regularly look at ways we can
improve our supply chain to Our quality management system helps suppliers that fall short of our standards must
strengthen food safety. employees, suppliers and distributors around the take prompt, verified corrective action. if they
recently, we began a program world understand our standards and expectations. don’t, we stop doing business with them until
to periodically screen select raw We offer approximately 70 employee education they raise their standards to meet our
materials for potential chemical programs, covering topics from sanitation to requirements.
contaminants. We do this across the allergen control to packaging design.
supply chain worldwide. ingredient
Equally as important as audits are our tools
samples are tested on a scheduled
basis and analyzed by a Kraft foods- as a global leader in food safety, we have and programs for helping suppliers improve
approved lab. suppliers cannot ship well-defined safety and quality expectations their food safety and quality systems. We hold
the ingredients to our facilities until for our suppliers worldwide and, before we use “lessons-learned” sessions, offer food safety
test results confirm that they meet ingredients or raw materials, we have an audit and quality forums, and provide on-site quality
our specifications. conducted of their facilities to make sure they consultations.
meet our supplier Quality Expectations.
Over the last two years, we’ve hosted numerous
these suppliers are audited every one to three supplier Quality and food safety forums covering
years thereafter by Kraft foods or third-party asia, Central and Eastern Europe, European
auditors, based on risk. if a supplier handles union, Middle East and africa, and north
food at a higher risk for contamination, or if america. We plan to continue these sessions.
quality control is more challenging, our staff
fOOd safEtY and QualitY: BEttEr PraCtiCEs dElivEr thE BEst rEsults Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 38 b
health and well-being sustainability fOOd safEtY and QualitY Workplace and culture governance and
compliance
Taking action when needed Weighing the use of genetically
despite our vigilance, threats to safety and modified ingredients
quality may arise. When something goes wrong, We believe genetically modified ingredients
we respond quickly. Our special situations can play a role in food production. We also know
delICIOUS @ WORK Management teams—senior-level managers consumers worldwide have different points of
from across the company who have experience view about genetically modified ingredients. for
We’ve helped build better food
in handling these types of situations— that reason, we review their opinions continually.
production infrastructure in
Kyrgyzstan and developed products take immediate steps to protect consumers in 2010, our position did not change.
for Benin. We’ve expanded the when there is a food safety issue. We have an
offerings at a vietnam cooking early-alert system and processes to fast-track When we choose to use genetically modified
school for low-income consumers, information to our internal quality and consumer ingredients in our products, we do so based on
helped to improve and extend safe managers, as well as our special situations a number of factors, including:
distribution in vanuatu, and helped
Management teams. through training,
an Ecuadorian charity raise money
by selling artisan chocolates. employees in our manufacturing plants know • fact-based scientific consensus about safety.
exactly what steps to take when issues arise.
since 2001, we’ve sent more than • Consumer acceptance.
175 Kraft foods scientists, engineers
and other experts on 60 “missions” Alerting consumers to allergens • local regulatory approval for use.
with the united nations volunteers
some of our consumers have food allergies • Our own strict safety and quality criteria.
programme. Our employees shared
their expertise with nonprofits and that can be quite serious. We address allergen
small businesses focused on concerns at critical points throughout our We follow all local regulatory requirements
sustainable agriculture, food production production and our supply chain. We account regarding the use and labeling of genetically
and community development. for the possible sources of major food allergens modified ingredients. We also support
www.unv.org and identify them in common terms on appropriate regulation of genetically modified
our labels. foods and ingredients to ensure the safety and
integrity of the food supply and the protection
of the environment.
fOOd safEtY and QualitY: BEttEr PraCtiCEs dElivEr thE BEst rEsults Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 39 b
health and well-being sustainability fOOd safEtY and QualitY Workplace and culture governance and
compliance
We have no safety concerns with the genetically Meeting expectations every
delICIOUS @ WORK modified ingredients currently on the market. step of the way
We believe it’s important to listen this is based on conclusions reached by a
and learn from our consumers. We majority of scientists and regulatory organizations, People, rightly, expect safe food. By adhering
start by providing consumers with a including the Food and Agriculture Organization to strict standards, acting swiftly when threats to
variety of channels to reach us: of the United nations, the U.S. national safety arise and communicating with consumers
• Contact points, including 18 major Academy of Sciences and the World Health effectively, we maintain and strengthen our
global contact centers, in all Organization. reputation for consistently producing delicious
countries where our products foods people can trust.
are sold. though scientists have reached consensus,
• Contact details on all Kraft foods consumers have not. for example, in the u.s.,
websites through frequently asked most consumers are not concerned about
Questions (faQs) and Contact us. genetically modified foods. so we use them
• social media, with nearly in most of our products there. But in Europe,
600 million fans of our various where many people don’t want genetically
facebook pages with more than modified ingredients, we don’t use them.
15 million twitter followers. in countries where we don’t use genetically
modified ingredients, our suppliers must
then, to help us respond better to provide documentation on the origin and
consumer needs, our information
preservation of all ingredients.
analysts provide more than 1,000
monthly and quarterly analyses of
consumer input to all brands and
across multiple functions in Europe,
latin america and north america.
fOOd safEtY and QualitY: BEttEr PraCtiCEs dElivEr thE BEst rEsults Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 40 b
health and well-being sustainability food SAfETY And QuAliTY WOrKPlaCE and CulturE governance and
compliance
WOrKpLACe AnD CuLture: they invent new flavors. Make and sell our
delicious products. Manage our company.
BECOMing and much more. Every day, our success
depends on more than 125,000 capable,
dedicated and diverse Kraft foods employees
PErfOrManCE-
around the world. treating them well and
providing a workplace that is safe, rewarding
and inclusive is our proven recipe for keeping
drivEn, valuEs-lEd
great people and inspiring them to do
good things.
Starting with safety
We work hard to keep all of our employees
safe and strive for zero accidents in the
workplace. We aim to get there by addressing
the causes of injuries and by setting clear
expectations that employees must follow all
safety laws and guidelines, operate equipment
properly and never use alcohol or illegal drugs
in the workplace.
“Treat people fairly.” By doing this, we’ve made good progress.
While this 2010 report includes safety data on
Kraft foods Code of Conduct, rule 3
only our manufacturing facilities, by 2012, we’ll
track and provide this data for all employees.
WOrKPlaCE and CulturE: BECOMing PErfOrManCE-drivEn, valuEs-lEd Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 41 b
health and well-being sustainability food SAfETY And QuAliTY WOrKPlaCE and CulturE governance and
compliance
since 2005, we have reduced our lost-time Our safety Policy sums up our approach well:
accident rate by 32 percent in our manufacturing
facilities. in 2010, 76 plants, including our • safety and health improvements are both
Cadbury facilities, completed a full year of an individual and team responsibility.
operation without a reported lost-time accident.
• Each of us must be dedicated to conducting
that covers approximately one-third of our
all activities with the highest concern for
operating plants worldwide. Each facility
employee safety and health.
received a plaque for helping fulfill our vision
of being a “safety perfect” organization. facility • Each of us should participate in a local safety
managers made the presentations at plant-wide program and actively seek to achieve an
celebrations, recognizing all employees for their accident/injury-free work environment.
role in this achievement.
to achieve these commitments, we created
despite our progress, we clearly have more a new worldwide safety and environment
work to do. tragically, there were four employee management system in 2010. this system
fatalities in 2010. two employees in Philadelphia, brings together the best practices from legacy
Pennsylvania, u.s., died due to workplace Cadbury and Kraft foods. Our plan is to roll
violence; an employee in Chicago, illinois, u.s., out this system across the company.
died on entering a palletizer; and an employee
in india died due to a fall. three members of
the public—one each in the dominican lost-time accident reduction
republic, uK and u.s.—also died as a result since 2005*
of traffic accidents while our employees were
carrying out their duties.
0.78
We thoroughly investigated all events to -32%
understand the root causes and to see if
we needed to revise our safety policies 2005 2006 2007 2008 2009 2010
and processes. this focus on continuous
*this chart shows the number of lost-time accidents per
improvement is key to achieving our goal 100 full-time equivalent Kraft foods employees per year.
to keep all employees safe.
WOrKPlaCE and CulturE: BECOMing PErfOrManCE-drivEn, valuEs-lEd Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 42 b
health and well-being sustainability food SAfETY And QuAliTY WOrKPlaCE and CulturE governance and
compliance
Mixing in wellness We are also an active member of the World
economic Forum’s Workplace Wellness Alliance.
We encourage and support our employees the alliance brings together 39 multinational
in having healthier lifestyles. We offer various companies from around the world that are
health and well-being tools and resources committed to advancing wellness in the
in many facilities around the world—and our workplace by improving the overall health
goal is to expand these efforts each year. and well-being of their global workforce.
though these resources may differ based on
local and cultural needs, they generally offer
similar elements around nutritional, physical Folding in respect
and mental well-being. here are just a few We’re building an increasingly diverse workforce
programs employees can take advantage of: and supplier base because we know that having
different perspectives means better decision-
• lifestyle improvement programs, such as making. this approach also enables us to be
stress management, weight management even closer to our diverse consumers.
and smoking cessation.
• fitness and/or sports facilities on site, at Kraft foods, to ensure everyone can
incentives for gym membership and contribute to his or her fullest potential, we
employee sports competitions. don’t permit discrimination or harassment
based on age, race, disability, national origin,
• health screenings and exams, including religion, sex, sexual orientation or any other
vaccinations and flu shots. legally protected status.
• healthier options and nutrition information
in our cafeterias and canteens.
• newsletters/intranet sites that offer health
tips and work-life and flex-time programs.
WOrKPlaCE and CulturE: BECOMing PErfOrManCE-drivEn, valuEs-lEd Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 43 b
health and well-being sustainability food SAfETY And QuAliTY WOrKPlaCE and CulturE governance and
compliance
aligned with our value of “being open and Our global focus is on gender diversity.
inclusive,” our global diversity and inclusion in the u.s., we also measure progress on
strategies provide direction to our employees our representation of minorities. in 2010,
worldwide. Our efforts focus on three strategic minorities accounted for 21.5 percent of
areas: culture, partnerships and accountability: our u.s. workforce.
• Our culture requires that we communicate Others are recognizing us for advancing and
openly, seek input from employees, and fostering an inclusive culture. for example,
delICIOUS @ WORK provide diversity and inclusion training for in 2010, DiversityInc named us one of its
We’re working across our company employees at key career stages. “50 Best Companies.” Working Mother
globally to hire, develop and retain magazine has named us one of its “100 Best
• Partnerships are vital to our success.
more women. in 2010, 43 percent of Companies” for several years running. and in
internally, our 10 employee resource groups,
our salaried employees were women 2010, LATINA Style magazine rated us no. 8
and they made up 35 percent of our made up of diverse employees around the
on its “50 Best Companies for latinas” report—
management team. world, help us promote and drive diversity
up from no. 25 in 2009.
and inclusion. External partnerships with
organizations and associations that share
We’ve looked beyond our four walls too. for
our commitment to diversity and inclusion
more than 25 years, Kraft foods has invested
help us accelerate the pace of change.
in supplier diversity because it’s good business
• finally, in diversity, as in everything else, to explore a variety of purchasing options.
we are accountable to each other to uphold diverse suppliers have an equal opportunity
our values. since 2009, we have linked to work with Kraft foods and its subsidiaries
diversity and inclusion to executive incentive regardless of race, national origin or gender.
compensation to increase our leaders’
accountability.
WOrKPlaCE and CulturE: BECOMing PErfOrManCE-drivEn, valuEs-lEd Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 44 b
health and well-being sustainability food SAfETY And QuAliTY WOrKPlaCE and CulturE governance and
compliance
Our supplier diversity team develops and Spicing it up with
delICIOUS @ WORK executes global strategies, in line with our talent development
supplier diversity examples in supplier diversity guidelines, to increase the
north america: use of minority- and women-owned businesses. like building great brands, increasing the skills
We look to all of our suppliers for product and talents of our people takes time, energy
• in 2010, we began sourcing the and expertise … but done right, great brands and
majority of adhesives for north
and service innovations at a competitive cost,
american products from minority- without compromising quality or food safety. great people deliver great value for many years.
owned Adhesive Systems, Inc., We also are stepping up efforts to ensure
bringing capital investments and our suppliers use diverse suppliers. Our performance management program
jobs to the detroit, Michigan, creates a connection between our business
metropolitan area. to help advance our supplier diversity efforts, strategies, our employees’ development and
• We were one of the first companies we offer a supplier registration portal for the individual performance required for the
to make a pledge to Chicago minority vendors certified by a third party, company’s success. We believe people’s
United’s Five Forward Initiative™, such as the national Minority Supplier achievements are based on not only milestones
demonstrating our commitment and deliverables, but also their demonstration
development Council or Women’s Business
to growing relationships with five
enterprise national Council. Once registered, of Kraft foods’ values. We are explicit in our
local minority- and women-owned
companies. as we’re making minority- and women-owned businesses receive expectations of our employees and draw the
progress toward our goal, we’re notification of upcoming sourcing opportunities connection to creating a performance-driven,
creating a win-win for our new and outreach events at Kraft foods. values-led culture.
business partners and Kraft foods:
- Cano Container Corporation, Everyone wins when we have a diverse Kraft foods’ rigorous and consistent approach
a hispanic-owned supplier of workforce and a diverse supplier base. to all elements of performance management—
corrugated boxes to Kraft foods, goal setting, ongoing informal and formal
more than doubled its warehouse
performance feedback, development planning
capacity in the Chicago
suburban area. and assessment—provides a strong framework
- CSMI, a minority- and women-
for managers and employees as they translate
owned engineering and design company strategies into the work they do
consulting business in a Chicago every day.
suburb, more than doubled its
sales with Kraft foods in the past
year, which enabled the company
to hire additional workers.
WOrKPlaCE and CulturE: BECOMing PErfOrManCE-drivEn, valuEs-lEd Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 45 b
health and well-being sustainability food SAfETY And QuAliTY WOrKPlaCE and CulturE governance and
compliance
Our performance management program sets Serving up a stronger company
expectations; requires accountability; engages
employees and managers in feedback, both Providing a safe, inclusive and rewarding
informal and formal; and fosters development. workplace is critical for any company that hopes
to innovate, grow and lead. in our journey toward
We’re clear about what our employees need a culture driven by performance and led by
to do to succeed—and we help them do it. values, we’re building a stronger company and
Our leadership imperatives and competencies, place to work that attracts and retains the
functional/technical competencies and career thinkers, problem-solvers and doers, who will help
models, along with Kraft foods’ values, provide define the food industry, for decades to come.
the organization with a common language that
describes expectations and development for
delICIOUS @ WORK
employees. Our tools and training support the
Making a delicious difference is elements of our performance management
integral to our corporate culture process, including development planning.
and values.
nearly 25,000 employees in 56 through Kraft foods’ global succession
countries, including Chairman and planning program, we develop our next
CEO irene rosenfeld, helped fight generation of leaders by determining
hunger and promote healthy
development actions that align with our
lifestyles in their communities during
Kraft foods’ second annual delicious business strategies and needs, the employees’
difference Week. they planted capabilities and potential career opportunities.
community gardens, built playgrounds, Our program drives consistency in how we
assisted at food banks and served assess, develop and deploy our talent against
nutritious meals to people in need. the roles most critical to Kraft foods’ success.
“i love the look in people’s eyes
when they see you helping out. it
makes you feel good,” said sabrina
Warner, serving at Chicago’s
inspiration Café, which provides free
restaurant meals to the homeless
and low-income residents.
WOrKPlaCE and CulturE: BECOMing PErfOrManCE-drivEn, valuEs-lEd Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 46 b
health and well-being sustainability food SAfETY And QuAliTY Workplace and culture gOvErnanCE and
COMPlianCE
GOvernAnCe AnD COMpLiAnCe: the trust of consumers, customers, communities,
regulators, suppliers and, of course, employees is
insPiring trust something we do not take for granted. We strive
to earn that trust every day by doing what we say
we will do and holding ourselves accountable,
even on the occasions when we fall short. and,
as a public company, we have the added
responsibility to be open and responsive to our
approximately 80,000 shareholders worldwide.
living up to these expectations and obligations
is not easy. indeed, it requires detailed planning
and hard work. that’s why we have structures,
policies and processes to help promote the
ethical and efficient governance of our company.
and we have internal and external auditors to
monitor our compliance with those policies and
procedures.
Starting at the top
Our Board of directors governs Kraft foods in
“One thing is certain—when gaining a business line with our Corporate Governance Guidelines.
advantage means violating the rules or ignoring ten of our 11 directors are independent under
the new York stock Exchange listing standards.
our values, we don’t do it.” the chief executive officer is the only
Kraft foods Code of Conduct, introduction employee director.
gOvErnanCE and COMPlianCE: insPiring trust Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 47 b
health and well-being sustainability food SAfETY And QuAliTY Workplace and culture gOvErnanCE and
COMPlianCE
all Board committees consist entirely of given the increased focus on executive
delICIOUS @ WORK independent directors. the Board has a lead compensation in recent years, in 2010, the
If our Code of Conduct doesn’t director—an independent director who serves as Board’s human resources and Compensation
cover a specific situation, our the principal liaison between the chief executive Committee completed a thorough analysis
employees draw on our values officer and other independent directors—to of compensation practices and made several
to guide them: increase the Board’s effectiveness, promote adjustments to Kraft foods executive
We inspire trust. open communication among independent compensation programs. starting in 2010, the
We act like owners. directors, provide independent Board leadership mix of grants to senior management, including
We keep it simple. on behalf of shareholders and chair meetings the named executive officers, has been
We are open and inclusive. of the independent directors. 50 percent performance shares, 25 percent
We tell it like it is. stock options and 25 percent restricted stock.
We lead from the head and the heart.
While the Board does not have a written policy this mix places more emphasis on performance-
We discuss. We decide. We deliver.
regarding diversity, the company endeavors to based compensation—that is, performance
nominate and assemble a Board composed shares and stock options.
of individuals with diverse views, backgrounds
and professional experiences. for example, Setting clear standards on integrity
three directors are women. the representation
of women on our Board is almost twice the for employees, we developed our Code of
fortune 500 average of 15.7 percent, as Conduct as the cornerstone of our commitment
reported in 2010 by Catalyst. to doing business with integrity. the Code is
concise, clear and unequivocal, and available
all non-employee Board members are expected in 34 languages. By stating 10 simple and
to adhere to our Code of Business Conduct and wide-ranging rules, the Code links our business
ethics for non-employee directors. this Code performance with our core values and draws
addresses such issues as legal and regulatory strict ethical boundaries. it makes plain, for
compliance and conflicts of interest. everyone who works at Kraft foods, what we
believe is the proper way to do business.
gOvErnanCE and COMPlianCE: insPiring trust Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 48 b
health and well-being sustainability food SAfETY And QuAliTY Workplace and culture gOvErnanCE and
COMPlianCE
Our Code of Conduct reflects our belief that and responsible marketing. We continuously
delICIOUS @ WORK ensuring compliance and integrity is a never- measure and evaluate the effectiveness of
in 2009, we launched a new ending process. We’re continually making sure our compliance and ethics programs.
Ethics in action awards program our standards are high, expectations are clear
to recognize employees who act and that we have the tools and processes in ensuring people feel safe
with ethical courage and lead with place for meeting them. We regularly perform
integrity. in 2010, several employees assessments of key legal and compliance risks
to speak up
received these global awards:
across our entire company. under our speaking up Policy, we expect
• a customer finance analyst in the employees to ask questions and raise concerns
Philippines spoke up to protect about business practices when they see
the business and ensure that we educating employees on ethics
something they think may be wrong.
didn’t employ an ex-colleague Our chief compliance officer and five regional
with a reputation for negligence
and dishonesty.
compliance officers—with support from other Employees have several avenues for speaking
members of the Compliance & integrity and up, including their supervisors, compliance
• a line operator in slovakia took legal groups—help employees understand officers or human resources contacts.
responsibility for food safety and
our ethical standards. training educates
made the hard decision to stop
production to avert a potentially employees worldwide about our ethics and for times when employees are not comfortable
serious problem. compliance practices. speaking with any of our internal sources,
• a manager of European exports in
or simply wish to remain anonymous, we offer
switzerland displayed unwavering
in 2010, exempt Kraft foods employees at all external support. Consistent with applicable
integrity when refusing to make an levels took our Code of Conduct online training local laws, we have established a toll-free
“unofficial” payment to customs and completed an acknowledgment form. We telephone Helpline, which is operated by
officials. were able to include all exempt employees an independent company, as well as a
• in the u.s., a senior scientist from because we doubled the number of languages corresponding Webline, so that our employees
new York worked tirelessly to put offered for the course. in late 2010, we began can confidentially and, if they wish, anonymously
safety and quality first, assuming a providing this course to our legacy Cadbury report instances of suspected wrongdoing or
leading role in our response to a employees. ask questions about compliance matters. the
pistachio recall.
helpline and Webline are available globally
in addition, we offer in-depth courses to and allow employees to discuss their concerns
employees based on their responsibilities. in their own languages.
topics include food safety, antitrust, anti-bribery
gOvErnanCE and COMPlianCE: insPiring trust Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 49 b
health and well-being sustainability food SAfETY And QuAliTY Workplace and culture gOvErnanCE and
COMPlianCE
anyone outside of our company who suspects Holding ourselves and our suppliers
wrongdoing by a Kraft foods employee or to high standards
business can contact the helpline, Webline
or our Compliance & integrity group at We select suppliers (including consultants and
Kraft-Compliance@kraft.com. other service providers) around the world based,
in part, on whether their ethical standards align
We also encourage our employees and those with ours. Our guiding principle is that we will
outside our company to report concerns not expect more of our suppliers than we
about our fiscal controls, auditing matters expect of ourselves.
or anything else that appears to involve
malfeasance of any kind. Please report such We created a summary of our corporate social
concerns to Kraft-FinancialIntegrity@kraft.com. responsibility expectations in three public
statements, which are substantively consistent
in addition, Kraft foods monitors public policy with long-standing Kraft foods’ policies:
and participates in the public discussion on
issues affecting our company. some examples Kraft Foods Statement on Human Rights
of issues include food safety and security, Kraft Foods Corporate Responsibility Guidelines
nutrition, biotechnology, environmental
responsibility, food labeling, marketing and Corporate Responsibility expectations
packaging. and, when we engage with for direct Suppliers
governments, we follow the rules and do so
transparently. for example, we voluntarily Most major suppliers and customers have
publish a list of all Kraft foods’ U.S. political requirements regarding corporate responsibility
contributions in the Corporate Governance expectations that have led to a proliferation of
section of our website. corporate codes of conduct and assessment
requests. We helped create what we consider
to be a simpler approach.
gOvErnanCE and COMPlianCE: insPiring trust Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 50 b
health and well-being sustainability food SAfETY And QuAliTY Workplace and culture gOvErnanCE and
COMPlianCE
Kraft foods is a founding member of the • Completed PrOgrEss pilots at seven
delICIOUS @ WORK Program for responsible sourcing (AIM- of our facilities.
in november, 2010, guided by PROGReSS), sponsored by Association
• set aggressive goals to complete self-
the objective to demonstrate the des Industries de Marque (aiM) in Europe
assessments and audits of 100 percent
importance of responsible sourcing and the Grocery Manufacturers Association
of our global locations during the next
for the sustainability of business, in the u.s. this industry initiative allows a
leading companies—including three years.
supplier to provide common information about
Kraft foods—collaborated to hold
corporate social responsibility performance so • Worked with our suppliers to initiate
a first-of-its-kind supplier forum
on responsible sourcing in each customer can make business decisions PrOgrEss at more than 300 of their
são Paulo, Brazil. independently and in accordance with its own facilities and completed 10 suppliers’ audits.
corporate responsibility standards.
the supplier forum included 280
people—representatives from brand Adding up to trust
companies, supplier organizations to demonstrate our commitment to this
and internationally accredited important initiative, in 2010, Kraft foods: Of all of our assets, the public’s trust in us
third-party audit agencies. is the one we value most. Our governance
• Completed foundational work, by assessing policies, our Code of Conduct and our
the focus of the forum was on
the human aspect of sustainability, risk within our supply chain through self- expectations of suppliers are all parts of our
emphasizing the people in our assessments and verification by data daily effort to preserve trust. like any company,
value chains and in the communities systems and third-party audits. we’ll sometimes fall short, but our standards,
where we operate. it was an excellent policies and systems make it plain to anyone
platform for the supplier partners to • Provided critical training to a number of who works for us, does business with us or
engage with senior business leaders our facility managers and suppliers globally. buys our products: We’re working to create
in order to get a sense of the topics included corporate responsibility,
urgency and seriousness of this a more delicious world—every day.
PrOgrEss, and the importance of
opportunity.
assessments and audits to continuously
www.aim.be/responsible_sourcing.htm improve management systems and respond
to customers’ requests for information.
gOvErnanCE and COMPlianCE: insPiring trust Index
at Kraft foods, we’re creating a more
delicious world and we’d love to hear
your thoughts on how we’re doing.
Please send us an e-mail at
deliciousWorld@Kraftfoods.com.
www.kraftfoodscompany.com/DeliciousWorld
