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					2011 Global Citizenship Report | Canada




Connecting
for a Better
World
2




    Striving for a Better World
    At Labatt Breweries of Canada, in all that we do we recognize our responsibility
    to improve the world where we do business. We are committed to building
    a company for the long-term with a legacy to be proud of — for the people who
    work for us and with us; for future generations and the environment in which we
    live; and above all for our consumers who we hope will always enjoy our products
    responsibly and be as proud to choose them as we are to create them.
    Our dream is to be the Best Beer Company in
3   a Better World by focusing on three key pillars:

            Responsible Enjoyment
            We brew our beers to be enjoyed responsibly by those of legal drinking
            age. For a quarter century, Labatt has been a Canadian leader in
            encouraging consumers to enjoy our beer responsibly and moderately
            and in the fight against drinking and driving — the societal issue that
            concerns more Canadians than any other.


            Environment
            We are committed to a sustainable approach to the use of key natural
            resources; we focus our environmental initiatives on four key issues —
            water, energy, recycling and packaging.


            Community and Heritage
            We are committed to making a difference through our people, the
            integrity of our business conduct and our community support. We have
            a long-standing tradition of giving back through sponsorships,
            charitable donations and our employees’ personal involvement.
    Report Highlights
4
    3,000 10.01
    Employees              Volume Produced
                                                      6 Key Brands
                                                      Domestic: Budweiser, Bud Light,
                           (million hectoliters)      Alexander Keith’s, Kokanee, Labatt Blue
                                                      International Premium:
                                                      Stella Artois


    At Labatt Breweries of Canada, our dream may be ambitious,
    but our efforts are constant, our resolve is unshakeable and
    our commitment is strong.
    The goal of our three-year-old Better World initiative is to make a positive contribution to
    the world around us by investing in organizations, projects and activities that improve the
    communities where we do business, by extending our pioneering efforts in promoting the
    responsible enjoyment of our products, and by improving our environmental performance
    and encouraging sustainability as a day-to-day business practice.

    In 2011, Labatt advanced its Better World dream through a range of successful initiatives
    targeting key areas including responsible enjoyment, the environment, health and safety
    and the community.

    For instance, Labatt put the spotlight on the prevention of underage drinking with its
    Family Talk About Drinking program, and its new Take the Pledge moderation campaign that
    targets the prevention of drinking and driving.

    Labatt’s Better World actions in its breweries, warehouses and offices, as well as at the
    community level improved its environmental performance and inspired employees
    and consumers to do more in pursuit of conservation at work and at home. Highlights
    included the many World Environment Day and World Water Day projects that saved water
    and other natural resources, as well as multiple events and contests that helped boost
    environmental awareness and inspired both learning and action. We are proud that our
    London and Montreal breweries each earned environmental awards recognizing their
    individual efforts.

    Last year, as part of its Community and Heritage commitment, Labatt’s deep roots, history
    and impact in Canada were celebrated with the donation of two significant corporate
    archival collections to institutions in London, Ontario, the home of company founder
    John Kinder Labatt.
5




    Promoting Responsible Enjoyment
    Beer is enjoyed responsibly by the vast majority of consumers, but we recognize
    that alcohol misuse may cause harm. That’s why at Labatt Breweries of Canada,
    we have been an industry leader for more than two decades in encouraging
    consumers, especially young adults, to enjoy our beer responsibly and moderately.
    In 2011, we developed and promoted responsible drinking programs in all of our
    key markets, with a primary focus around preventing drinking and driving, high-
    risk drinking and underage drinking.
6   2014                     Global Responsible
                             Enjoyment Goals

    In September 2011, we announced global company-wide targets on key
    responsible drinking initiatives that we will strive to achieve by the end of 2014. Our goals are to:


                                                        Provide ID-checking materials and other
    Reach at least                                      educational information to at least


    100M                                               500K
    adults with programs developed                      bars, clubs, restaurants and grocery
    by subject matter experts, that help                stores to help them prevent sales to minors
    parents talk with their children
    about underage drinking



    Provide training on responsible
    alcohol beverage sales to at least                  Reach at least


    1M                                                 500M
    bartenders, waiters, grocery store                  legal-age consumers to increase
    clerks and others who serve and                     awareness of the importance of using
    sell alcohol                                        a designated driver or safe-ride home



                                                        Celebrate our annual Global Be(er)
    Invest at least                                     Responsible Day


    300M                                              1DAY
    (USD) in advertising and programs to help           promoting the importance of responsible
    remind and educate consumers about the              drinking among our employees, retail
    importance of responsible drinking                  customers and consumers
    In addition, we will continue
7
    to train all of our sales and
    marketing employees annually
    using the Anheuser-Busch InBev
    Commercial Communications
    Code and support enforcement
    of industry advertising and
    marketing self-regulatory codes.

    Labatt Responsible Enjoyment Initiatives
    For a quarter century, Labatt Breweries of Canada has
    been a Canadian leader in encouraging consumers
    to enjoy our beer responsibly and moderately and in
    the fight against drinking and driving – the societal
    issue that concerns more Canadians than any other.
    We constantly update our programming to ensure it
    remains relevant and effective. Labatt is a pioneer in
    developing partnerships to encourage moderation
    and discourage underage drinking.
    Promoting Responsible Enjoyment
8   To help achieve our national and global goals in 2011,
    Labatt initiatives included:
    Family Talk About Drinking – a Prevention Program
    In September, Labatt launched its latest innovative responsible drinking initiative, the
    Family Talk About Drinking prevention program, which includes the Family Talk website and
    the Labatt Family Talk Parent Guide. Parents can use the Family Talk program, which draws
    on the knowledge and experience of experts in this field, to talk to their children about
    making smart, safe decisions about alcohol. Via a public service email, Labatt directed
    approximately one million Canadian mothers, about 25 percent of the total moms in
    Canada, to a dedicated Family Talk television program on a major national cable network.

    Take the Pledge – a New Moderation Campaign
    Across Canada, the new Take the Pledge moderation campaign’s billboard and street
    level ads showed just how far people will go to avoid drinking and driving – for example
    sleeping on the back of a statue, on a park slide and atop a tree branch. The campaign
    directed consumers to Labatt’s responsible drinking Facebook page where they “signed”
    a pledge to not drink and drive, with more than 10,000 individuals participating.
    In appreciation, Labatt donated $1 per pledge to the True Patriot Love Foundation
    in support of Canadian Military Families, and if the signers shared the link with a friend,
    the company donated an additional $1.
    Take the Pledge Goes to University Campuses
9   for Global Be(er) Responsible Day
    In September, Labatt partnered with about 20 of Canada’s major universities and
    colleges to bring Global Be(er) Responsible Day to students. Labatt employees, all
    wearing Take the Pledge t-shirts, used iPads to replicate the successful Facebook
    application face-to-face and in real time. As a result, in just a single day, more than
    6,200 university and college students took the Pledge Vs. Drinking N Driving on the spot.

    Budweiser TV Ad Designates Holiday Drivers
    A new Budweiser TV spot, “Great times wait for the designated driver,” aired
    Canada-wide during the holiday season. It underscored the importance and
    widespread acceptance of having a designated driver when going out to social,
    sporting and entertainment events. It reinforced Labatt’s clear, consistent
    message: “Don’t drink and drive.”
     Operation Red Nose/Nez Rouge
10   For the third consecutive year, Labatt participated in Operation Red Nose/Nez Rouge
     in the Province of Quebec, with volunteers taking the wheel for people who didn’t
     feel comfortable driving their own vehicles home during the Christmas and New Year
     holidays. More than 83,000 people got a safe-ride home thanks to this program.

     Montreal’s City Bus as Designated Driver
     Labatt and the Société de transport de Montréal joined forces to invite festival goers
     and night owls to select a night bus as their “designated driver.” The initiative promoted
     the use of public transit “after hours” in downtown Montreal.
11




     Taking Care of the Environment
     At Labatt Breweries of Canada, environmental stewardship is a key focus
     of our everyday operations. We continually seek to operate more efficiently and
     maintain our quality standards, while carefully considering our impact on the
     environment. We focus our environmental sustainability initiatives on four key
     areas – water, energy, recycling and packaging.
     In addition to promoting efficiency and avoiding waste – important aspects
     of our culture – we also recognize we have a role to play in tackling shared
     challenges such as freshwater availability and quality.
     2012 Global Environmental Targets
12
     In 2009, we announced global company-wide targets
     on key measures such as water and energy use, as well
     as carbon emission reductions that we will strive
     to achieve by the end of 2012. Our 2012 targets are:

         Increase our waste and byproduct recycling to 99 percent.

         Reduce water use for beer and soft drinks plants
         to an industry leading 3.5hl/hl product.

         Reduce energy use per hectoliter by 10 percent.

         Reduce CO2 emissions per hectoliter by 10 percent.
     Improving Environmental
13
     Performance in Canada
     In 2011, Labatt Breweries of Canada contributed significantly towards achieving
     our global targets.




     Labatt’s commitment to the
     environment and to using natural
     resources in a sustainable manner
     is completely integrated into our
     everyday business practices.
     Employee passion for our Better World dream and activities is fueled through their
     commitment to sustainability, as well as the fact that Labatt tangibly recognizes results
     by linking bonuses to Better World targets.


     Our employees have the most significant impact on water and energy consumption
     because they know our processes better than anyone and impact them daily. We rely
     on their ability to observe and analyze our consumption patterns, then tap into their
     personal creativity to develop and implement innovative solutions.


     We enable our employees to take the initiative on solutions through our industry-
     leading Innovation Program. It is unique because it recognizes that even the smallest,
     simplest ideas make a difference and that, when pooled together, seemingly minor
     results can have a highly significant, cumulative effect. To get the most out of the
     Program, ideas are recorded in our searchable Ideas Database so that employees across
     Canada and around the world can find solutions that will work in their own breweries.
     Improving Environmental Performance in Canada
14



     From 2006 –2011, Labatt employees
     have implemented 815 water
     conservation ideas and, as a result:



               41%                                     28%
           Reduced Water                           Reduced Fuel
            Consumption                            Consumption




               22%                                     66%
          Reduced Electricity                    Total Operating Waste
            Consumption                                Reduction




                                   98%
                                Recycling Rate
     Improving Environmental Performance in Canada
15
     In 2011, Labatt brewery employees across Canada
     identified resource-saving opportunities and determined
     low- and no-cost solutions that reconfigured existing
     processes and reused existing equipment whenever possible.

     For example, the Montreal brewery is saving 300,000 hl of water and $60,000 annually
     by using hot water from another process to rinse the beechwood chips used to brew
     Budweiser. In Edmonton, the Budweiser brewing team takes the centrifuge offline when
     they foresee more than one hour of idle time, which saves enough water to supply 18
     households and enough electricity to power 150 households annually. Simply recapturing
     overflow water at the Halifax pasteurizer is saving 180,000 hl water and $25,000 annually.
     Likewise, Creston captures cooling tower water and uses it to cool compressed air and CO2
     which saves 628,000 hl of water and $15,650 annually, as well as $20,000 in electricity.


     During the year Labatt and its employees stepped up to
     support specific environmental initiatives and charities.
     Here are a few examples:


     Alexander Keith’s Green Initiative Supports Four Eco-Charities
     Alexander Keith’s Green Initiative had both a national reach through partnerships with the
     Canada-wide Waterkeepers Canada and Nature Canada, as well as a local focus with Trees
     Ontario and Nova Scotia-based Adopt-A-Stream. Consumers who bought specially-
     marked, 24-bottle packs of Alexander Keith’s India Pale Ale or 15-bottle Alexander
     Keith’s mixer packs could click on an Alexander Keith’s Facebook page to suggest a brand
     donation to their eco-charity of choice. They could also share the environmental message
     with friends, and have the company donate $1. During the year, Alexander Keith’s Green
     Initiative contributed close to $16,000 to its four eco-charity partners to protect wildlife
     habitats, promote tree planting and preserve Canada’s lakes and rivers.
     World Environment Day (WED)
16   Anheuser-Busch InBev was an official WED sponsor and for the second consecutive year
     Labatt Breweries of Canada and its sister companies launched a global celebration to
     support WED with an active program that involves employees and their families. Labatt
     was instrumental in launching WED celebrations in Toronto, North America’s official
     host city for 2011.

     Employees at each of Labatt’s breweries, warehouses and offices focused on water
     conservation and reducing their consumption of electricity and natural gas. Breweries
     participated in the third annual WED facility competition, inspiring 3,000 employees to
     engage in water-focused projects. Open houses at the various breweries also showcased
     Labatt’s commitment to sustainability to government officials and the general public,
     as well as employees’ families and friends.

     To increase employee and public awareness, Labatt employees organized events
     that included the Dash 4 Trash in Creston, B.C., the Thames River Clean-up in London,
     Ontario, a clean-up near the Montreal brewery site and a Dragon Boat race for Toronto
     employees to benefit a water charity and increase water conservation awareness.

     Several breweries also ran short- and long-term initiatives designed to inspire
     carpooling, walking, cycling and taking transit to work. On-site fairs gave employees
     information on everything from composting to reducing lunch-time waste. To further
     engage employees and show that making a difference can be fun, the Best of the Beards
     competition asked employees to put down their razors to save water and waste.
     World Water Day
17   For World Water Day in March 2011, employees focused on
     finding, tagging and repairing leaks. At various work locations,
     trades partnered with operators to identify the equipment
     that required attention, and Grow Some and Shave Every Drop
     campaigns asked employees to stop shaving to reduce water
     use. Water consumption awareness was increased through
     posters of real-life onsite leaks, residential water consumption
     reduction kits and even art contests for employees’ children.
     Awards & Recognition
     Montreal
     In 2011, the newspaper Les Affaires ranked the Montreal brewery as one of the
     50 most admired businesses in Quebec.

     Labatt’s Montreal brewery’s packaging-specific environmental efforts also earned
     Recyc-Québec’s Special Mention 2011 award as part of its ICI ON RECYCLE! program.
     The brewery has saved 1,665 tons of cardboard annually since eliminating bottle
     partitions in its 24-packs back in 2004. Labatt’s Montreal brewery has reduced waste,
     saved trees and cut its operating costs (cardboard, electricity, maintenance).

     In early 2012, the Montreal brewery also received an environmental award from the
     City of LaSalle’s Chamber of Commerce recognizing its efforts to recycle and reduce the
     consumption of resources such as water, electricity and natural gas.

     London
     The London brewery, Labatt’s largest, received a 2011 Water Efficiency Award
     from the Ontario Water Works Association, the industry association for drinking-
     water professionals. The London brewery’s 300 employees rely on a variety of
     management systems and tools, but attitude, awareness and education are equally
     important. Between 2007 and 2010, London’s water:beer ratio dropped from
     5.12hl:1hl to 3.98hl:1hl – a 22 percent reduction over four years.

     Employees are continuing to work toward Labatt’s Better World water:beer ratio
     of 3.5 hl/hl by the end of 2012.
18




     Community and Heritage
     A key aim for Labatt Breweries of Canada is to create value for stakeholders as
     well as shareholders, especially our employees and the communities in which we
     operate. We are proud of the positive and meaningful impact our business has
     on the communities where we work. We are improving our production facilities,
     modernizing logistics and commercial investments, and creating both direct and
     indirect jobs, as well as paying taxes and excise duties. By constantly improving
     our operations, we aspire to continue to create employment, improve economic
     standards and add value.
     Investing in Our Communities
19
     In 2011, economic benefit generated by Labatt included ($CDN):

     More than                                   More than



     400M                                        230M
     in federal, provincial and excise taxes     annually in wages, employing about 3,000
                                                 people and generating approximately
                                                 84,000 indirect jobs across Canada




     More than



     2.0B
     on good and services




     In addition, in 2011, Labatt made a number of significant
     capital investments that included:

     At Labatt’s brewery in London, Ontario, a range of Better World capital investments
     were made to ensure sustainability. A $310,000 investment in a capture tank to divert
     beer from the drain has large financial and environmental benefits, while a $150,000
     investment in two capture tanks, a pump and piping are capturing 390,000 hl water/
     annually. A utility rebate and $50,000 added LED lighting in areas where 24-hour
     illumination is required, but on/off motion control is not appropriate, to save
     200,000 kwh/year. A $43,000 HVAC heat recovery coil is saving 1,250,000 MJ/year.
     Investing in Our Communities
20
     In addition to investing in our facilities,
     we also invest in our communities,
     recognizing that giving back is key to
     a sustainable approach to our business.
     Labatt has a long-standing tradition of giving back through sponsorships, charitable
     donations and our employees’ personal involvement. We are proud of our 165-year
     Canadian heritage and the rewards it has allowed us to share with Canada’s people and
     communities. We encourage our employees to volunteer their time and expertise to help
     better their communities. Labatt focuses its philanthropic investments on the individual
     needs of local organizations and activities where we can make a major difference.

     Labatt and its employees support a variety of organizations, and the company
     matches donations from employees and retirees to Canadian charities and non-profit
     organizations through the Employee Matching Gift Program.
     The Labatt Brewing Company Archival Collection
21   In 2011, Labatt celebrated the culmination of more than four years of work when the
     company’s archives were donated to The University of Western Ontario in its hometown
     of London, Ontario.

     Labatt turned the company’s largely unorganized corporate archives into a valuable
     historical collection that resides at the University of Western Ontario where it is accessible
     to scholars and the public alike. The challenge was to turn this underused, inaccessible asset
     that chronicles over 160 years of brewing heritage and corporate leadership into a benefit
     for the community. It took archival experts more than four years to edit tens of thousands
     of boxes filled with Labatt’s historical documents down to 2,500 boxes, which were then
     catalogued and organized.

     Labatt also donated $200,000 to The University of Western Ontario to assist them in
     digitizing portions of The Labatt Brewing Company Archival Collection. This will help
     preserve some of the key content of the collection and make it more accessible.

     At the same time, the Labatt Material Culture Collection of original art, brewery artifacts
     and collectibles was donated to Museum London.

     The transfer of the archives established a benchmark in heritage donations as the Canadian
     government deemed the material to be of “outstanding significance and national
     importance.” The collections were appraised at approximately $8.3 million.

     It is Canada’s first brewing industry historical collection and supported Labatt’s Better World
     strategy by reinforcing our local heritage and our reputation as a corporate leader while
     diverting material from landfill and eliminating 158,000 pounds of greenhouse gas emissions.
     Historic TV and radio commercials and images can be viewed at www.labatthistoricgift.ca.
     Labatt and Employees Give Back
22   In 2011, the company and its employees donated and volunteered with a variety of
     organizations, including Pride Toronto, a premiere arts and cultural festival, and the Slave Lake
     Fire Victim Foundation to help that community rebuild after a devastating fire in May 2011.

     Labatt and Alexander Keith’s supported the 2011 Canada Winter Games, the
     largest multi-sport event ever held in Nova Scotia and Halifax’s first Canada Winter
     Games. Alexander Keith’s also sponsored a speech by renowned primatologist and
     conservationist Dr. Jane Goodall in celebration of the 50th anniversary celebration of her
     work, and supported the Adopt-A-Stream program – a partnership with the Nova Scotia
     Salmon Association and the Nova Scotia Liquor Corporation that aims to protect and
     restore local watersheds and improve Nova Scotia’s water quality.

     In Creston, B.C., Labatt’s Columbia brewery partnered with the Canadian Avalanche
     Association, which educates outdoor enthusiasts on avalanche preparedness and
     safety while enjoying recreational activities and supported the Canadian Cancer Society
     through the Creston Relay for Life.

     Labatt continues to invest in the power of Canada’s young people with its Scholarships
     for Children of Employees program. Labatt’s 2011 contributions will help the scholarship
     winners reach their academic and life goals for up to four consecutive years.

     Labatt is also a long-time supporter of amateur sports in Canada.
     Dream, People, Culture:
23

     We also recognize
     that by showing
     respect for our people
     through competitive
     compensation, benefits
     and a safe work
     environment, we tap
     into their desire to help
     us be a responsible
     corporate citizen.
     Safety
24
     At Labatt Breweries of Canada, we
     operate day-to-day using a set of
     principles that define our culture and
     our approach to our employees, our
     customers and to consumers. One of
     these principles states, in part: We don’t
     take shortcuts…the safety of our people
     can never be compromised.
     Workplace and employee safety has long been a major focus for Labatt, and we set annual
     targets to reduce injuries and lost-time accidents with the ultimate goal of no injuries at all.

     Across Canada, in every brewery and warehouse, Labatt puts safety first by offering the
     training, audits and support required to keep safe attitudes and behaviour top-of-mind.


     That commitment continues to produce measurable results.

                                  13%                               86%
                                  Less LTIs in                    Less LTIs from
                                2011 over 2010                    2005 to 2011




     At Labatt Breweries of Canada, we saw a 13 percent decrease in our total lost-time
     incidents in 2011 over 2010, and we’ve reduced lost-time incidents by 86 percent
     between 2005 and 2011. In 2011, a number of Labatt locations extended zero lost-
     time incident records ranging from two to eight years.
     In addition, Labatt’s Montreal brewery
25
     earned the Commission de la santé
     et de la sécurité du travail (CSST)’s Prix
     Innovation 2011 award in the Montreal
     region. At the Montreal brewery each week,
     all production lines are stopped for 15
     minutes to allow front-line managers to
     address everything from safety milestones
     to near-misses, new safety equipment and
     procedures, and remind employees that
     every job can be done safely. Stopping the
     line shows employees that Labatt really
     does put safety before production.
     For World Safety Day’s Drive Safely at Work & Home theme, Labatt asked employees to avoid
     distracting driving behaviour and recommit to seatbelt use to stay safe. Employees were able
     to access the Street Smart online presentation on seatbelt use and sign the Hang Up and Drive
     pledge online.


                                83%                             17%
                                 Male                           Female
                               Employees                       Employees




     Our work force is composed of 83 percent male and 17 percent female employees.
     Outlook for 2012
26
     Labatt’s Better World plans for the coming year include
     having Budweiser assume responsibility for the majority
     of our responsible enjoyment programming. As part
     of this effort, Labatt will build on the Good Sport fan
     management program, partnering with key sports teams,
     to promote the Don’t Drink and Drive message.
     We plan to extend our successful Family Talk About Drinking and Take the Pledge programs
     and will continue to collaborate with licensees and retailers for Global Be(er) Responsible
     Day and with local environmental and not-for-profit groups to boost awareness and
     provide information on World Environment Day, World Water Day and World Safety Day.



     In addition to our ongoing support
     for charities and other worthwhile
     organizations in the communities
     where we do business, we will
     introduce a disaster recovery
     program with funds and efforts
     focused on the unexpected
     catastrophes that occur from time
     to time and their unfortunate victims.

				
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