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									             NATIONAL PACKAGING COVENANT ANNUAL REPORT

                                                    FOR



                           Saxby’s Soft Drinks Pty Ltd
                                           7147 The Bucketts Way
                                           Taree: N.S.W. 2430.
                                              A.B.N. 30 909 292 060




                                    July 2006 to June 2007.




Saxbys Soft Drinks Pty Ltd –National Packaging Covenant Annual Report 2006-2007   1
Company Information

Saxby’s Soft Drinks Pty Ltd was established in 1864 by George Saxby in Taree, NSW.
During the past 143 years Saxby’s have continued to operate in the Manning Valley at
Taree and now operates from Taree South. Saxby’s Soft Drinks Pty Ltd is a manufacturer of
carbonated beverages. Saxby’s brand represents over 98% of production, the remainder
being contract packing. Saxby’s also produces a small amount of fruit juice under franchise
from Bevco using the Orchy Brand.

Saxby’s also are distributors for Schweppes, Orchy, Red Bull, and Golden Circle on the mid
north coast of NSW. Saxby’s Soft Drinks Pty Ltd currently employs 42 staff and distributes
their products nationally. Saxby’s production represents less than 0.3% of the total market.
Juice production is less than 80,000 litres. In May 2006 Saxby’s purchased Solis Beverage
Holdings who are the brand owner of Solis a non carbonated range of juice drinks with
added vitamins and extracts. Solis product is contract manufactured.

Saxby’s is a brand owner under the National Packaging Covenant. Total turnover is in the
range of $10-25m p.a. Due to our relatively small size, Saxby’s is not a key driver of the
beverage industry and hence must operate within current market systems utilising materials
and packaging currently produced in response to prevailing market pressures. Saxby’s is a
member of the Australian Beverage Enterprises Cooperative Society Ltd (ABECS), which
is also a Covenant signatory. As ABECS members must have consensus on packaging
decisions to leverage purchasing power, we are further limited in our ability to influence
packaging decisions.



Company Brands

Saxby’s owns the following brands of soft drinks and beverages:

Saxby’s Soft Drinks
Solis Beverages
Adrenalin Energy Drink


Saxby’s contract fills the following brands of soft drinks and beverages:

Zietsch Bros under contract from Sydneywide Beverages Pty Ltd
Nippy’s Ginger Beer under contract from Jolt Corporation
Am’e under contract from Occasio




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Packaging Material Types Used

Saxby’s uses the following packaging materials in the manufacturing and distribution
process:

    1.  Glass bottles – 330ml, 375ml and 750ml
    2.  HDPE bottles – 5 litre
    3.  PET bottles – 600ml and 1250ml
    4.  Wood pallets, plastic pallets and slip sheets
    5.  PP closures are used on PET bottles
    6.  Aluminum closures are used on glass bottles
    7.  Paper and metallic labels are used on all PET bottles and the majority of glass
        bottles.
    8. Plastic film labels are used on glass bottles for some product lines (Solis, Adrenalin,
        Am’e and Nippy’s)
    9. Cardboard cartons
    10. Shrink wrap
    11. Returnable plastic cases
    12. 25L plastic drums for essences and chemicals


Supply chain influence by retailers may affect Saxby’s packaging mix or cause increased
packaging consumption per given amount of product. For example, switching to a 12-pack
from a 24-pack may result in increased cardboard consumption. Saxby’s will report on this
influence in our Annual Reports under the Covenant.



Environmental Management Practices

Although Saxby’s does not have formal environmental management systems or policies in
place, we incorporate sound environmental practices into our activities. At present, informal
monitoring procedures are undertaken, with environmental issues considered on a regular
basis and reviewed as required. Opportunities for technologically improving efficiency are
considered when updating plant and equipment.


Our PET bottles conform to the Plastics and Chemicals Industries Association’s (PACIA)
Plastics Identification Code.

Collection and recycling programs are currently in place for a range of materials and as a
result very little general waste is sent to landfill. Cardboard is baled and recycled through
the local government recycling program (Taree Resource Recovery). Glass, plastic wrap
and aluminium closures are also recycled through this program. Pallets and slip sheets from
glass bottle transport are returned to O-I, while pallets and slip sheets from PET bottle
transport are returned to Visy Beverages. Other pallets are pooled and reused through
CHEP. Reject containers are collected and recycled through either the PET or glass
recycling collection systems as appropriate. Oils are pumped out for refiltering. During

Saxbys Soft Drinks Pty Ltd –National Packaging Covenant Annual Report 2006-2007              3
servicing, refrigerants for glass door merchandisers are decanted and recycled. Toner
cartridges are returned for refilling. Quantities of materials recycled are tracked informally.

Saxby’s has in place a HACCP Food Safety Program, although the program is not yet
certified. Waste water usage is monitored. Saxby’s intend to participate in local recycling
initiatives via the local government network organisation MIDWASTE
(www.midwaste.org).



Covenant Support and Commitments

This Annual Report covers the timeframe from July 2006 to June 2007, inclusive.
Significant changes to production practices and packaging types used are not anticipated,
although our Action Plan would be revised should circumstances change significantly and
changes reflected in future Annual Reports.

Saxby’s fully supports the National Packaging Covenant and the product stewardship
principles and Environmental Code of Practice for Packaging (ECoPP) contained therein.
This support is reflected in our becoming a signatory and paying our contribution to the
industry funding arrangements to assist in achieving Covenant targets. Saxby’s has
identified relevant key performance indicators (KPIs) required of us under the revised
Covenant. The commitments outlined in the attached tables further demonstrate our
commitment to the Covenant and the improved measurement of Covenant activities through
these KPIs. KPIs and performance against key timeframes are reported against the tables
from our 2006-10 Action Plan to facilitate reporting.

The Covenant contact person for Saxby’s is Ian Turner, Saxby’s Managing Director.
Ian’s contact details are:
Phone: (02) 6552 1014
Address: 7147 The Bucketts Way, Taree, NSW 2430
Email: saxbyadmin@ceinternet.com.au


Due to our relatively small size, Saxby’s must select from packaging available from
packaging manufacturers. Our principal packaging suppliers are signatories to the Covenant
and must therefore incorporate the ECoPP into their decisions on packaging placed onto the
Australian market. That said, Saxby’s will conform to the ECoPP in our packaging
decision-making process for any new packaging or reviews of existing packaging.




Saxbys Soft Drinks Pty Ltd –National Packaging Covenant Annual Report 2006-2007               4
Relevant Key Performance Indicators and Associated Performance Measures, Targets
Timeframes and Reporting

KPI 1.
Total weight of consumer packaging (domestic & imported) sold per annum into the
Australian market and the total weight of products packaged. (NB: Required of
Individual Brand Owners)

KPI
1A. Report tonnes of packaging by material type
by source (local or imported).

Performance measures and targets:
Action 1: Saxby’s will established baseline data for all material types.

Timeframe: Action 1: end-September 2007

Report Status
Action 1: completed on schedule. Refer Confidential Attachment A for details.

1B. Report tonnes of packaged product sold.

Performance measure and Targets: Refer Action 1.

Reporting Staus: Refer Confidential Attachment A for details.

1 C. Report ratio of product to packaging (by Weight).

Performance measures and Targets: Refer Action 1.

Reporting Status: 0.35 tonnes packaging / tonnes beverage

Process and records for reporting against KPI’s: Development of a spreadsheet-based
system to enable data to be recorded.

KPI 3. Improvements in design, manufacture, marketing and distribution to minimise
the environmental impacts of packaging. (NB: Required of All Packaging Supply
Chain Signatories)

KPI
3A. Report examples of improvements made to packaging and their effect
On minimising the environmental impacts of the packaging.

Performance Measures and Targets:
Due to our relatively small size, Saxby’s must select from packaging available from our
packaging manufacturers, all of which are Covenant signatories and are therefore required
to be in conformance with the ECoPP. Our primary packaging encompasses PET, cardboard
and glass, which are recyclable and readily collected in most if not all kerbside collection

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systems. Should away from home collection systems such as public place or special event
recycling are in operation, these materials are also readily collected from this sector.

Action 2: Saxby’s will report against KPI 3 in our Annual Reports.

Timeframe: Action 2: October 2006 and annually thereafter

Reporting status: Action 2 completed. See below.

3A. Saxby’s Soft Drinks is constantly looking at ways of improving efficiencies and
reducing waste in production and throughout the supply chain. A review of the current
products found that none of the products were excessively packaged and no components of
the packaging could be eliminated. To make the consumer more conscious of the need to
recycle the ‘please recycle’ logo has been placed on finished goods as well as being placed
on all new cartons. As part of this continuous improvement process Saxby’s Soft Drinks
have made some improvements in waste reduction.

Saxbys Soft Drinks is looking to lightweight its 375ml bottle and is working with Owens
Illinois to make this happen. The weight reduction will result in a significant saving in glass
as this is Saxbys highest volume bottle.

All waste generated during the production process is separated into recyclable bins and
taken to the recycling depot located directly across the road from the factory.

Paper recycling bins are place in all administration offices for the recycling of “waste”
paper generated throughout the administration process.


3B. Quantitative details of substantial improvements should be provided
where available e.g. tonnes of packaging avoided increased recyclables etc.

Performance measures and targets: Refer Action 2.

Reporting Status: Action 2 completed on schedule. See below.

During the past year there has been no substantial change in the packaging used.

Process and records for reporting against KPI’s: Refer Action 2.

KPI
4. Changes to protection, safety, hygiene, shelf-life or supply chain considerations
affecting amount & type of packaging used. (NB: Required of All Packaging Supply
Chain Signatories)

KPI
4A. Report changes to protection, safety, hygiene, shelf life or supply
chain considerations affecting amount & type of packaging used with examples, and
their associated impact on the amounts and types of packaging used.

Performance measures: Action 3: Saxby’s will report against KPI 4 in our Annual
Reports.
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Timeframe: Action 3: October 2006 and annually thereafter

Reporting Status: Action 3 completed on schedule. No substantial changes to packaging
used
(see below).

4A. The current glass bottles used by Saxby’s Soft Drinks, are theoretically able to
withstand being dropped from a height of one (1) metre after filling. As these bottles are
filled under pressure, any reduction in weight would substantially reduce the strength of the
bottle and possesses a safety issue. We are exploring the possibility of reducing the weight
of our 375ml bottle. This will be possible by using narrow neck press and blow technology
which enables weight reduction without detriment to bottle strength. This change will be
introduced during the next reporting year.

The board grade of the cartons has been reduced to a level where if we reduced the grade of
the carton further the strength of the carton is jeopardized due to the weight of the finished
product.

Any reduction in the weight of the PET bottles would reduce the shelf life of the product
and have greater potential for the disposal of finished goods.

4B. Quantitative details of changes should be provided of substantial changes where
possible e.g. additional tonnes of packaging required, changes to materials used etc.

Performance measures: Refer Action 3.

Reporting Status: Action 3 completed on schedule. No substantial changes to packaging
used.

Process and records for reporting against KPI’s: Refer Action 3.

KPI
6. Total weight, by type, of “non-recyclable” consumer packaging sold per annum into
the Australian market. (NB: Required of Individual Brand Owners)

KPI
6A. Report tonnage of “non-recyclable” packaging sold by
material type and total.

Performance measures and Targets
Action 4: Saxby’s will include “non-recyclable” packaging in the baseline data established
for all material types (refer Action 1). Presence of any “non-recyclable” materials such as
high wet strength board, PVC closures or plastic films will be identified and quantified.

Timeframe: Action 4: end-September 2007

Report Status: Action 4 completed.
Report Status: 1.38 tonnes of plastic wrap was used and recycled.

6B. Report total “non-recyclable” packaging as a % of total packaging sold.
Saxbys Soft Drinks Pty Ltd –National Packaging Covenant Annual Report 2006-2007              7
Performance measures: Refer Action 4.

Report Status: <0.01% “non-recyclable” packaging as % of total packaging sold.

Process and records for reporting against KPI’s: Development of a spreadsheet-based
system to enable data to be recorded.

KPI
 16. Percentage of signatories providing recycling collection facilities for post-
consumer packaging generated on-site. (NB: Required of All Signatories)

KPI
16A. Report whether on-site recycling facilities are provided or not.

Performance measures & targets: Recycling facilities are provided on-site.

Timeframe: Action: Report progress annually

Reporting Status: Continued maintenance and operation of in-house recycling systems.

16B. if yes, provide details.

Collection and recycling programs are currently in place for cardboard and plastic wrap.
Pallets and slip sheets are returned to the suppliers.

Action 5: Saxby’s will continue maintenance and operation of in-house recycling systems.

Action 5: Report progress annually

Action 5 completed on schedule. Continued maintenance and operation of in-house
recycling systems.


KPI
 21. Estimated tonnage of consumer packaging sent (a) for recycling and (b) to landfill
from on-site collection facilities. (NB: Required of All Signatories)

KPI
21A. Report on amounts of consumer packaging from on-site collection which is
(i) Sent for recycling (tonnes and % of total waste); and
(ii) Sent to landfill (tonnes and % of total waste).

Performance measures and Targets
i) 40 tonnes of onsite collection was sent recycling. This is 99% of total waste from on site
collection.
ii) 1 tonne was sent to land fill. This represents 1% of total waste. It also represents a
possible recording error which will be rectified.

Action 6: Saxby’s will coordinate with our service providers to quantify recycling of
packaging from on-site collection facilities.
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Action 7: Saxby’s will coordinate with our waste management service provider to
separately break out waste to landfill on invoices. Note that that amount will not be limited
to packaging.

Action 8: Saxby’s will quantify recycling and disposal of packaging from on-site collection
facilities and report against KPI 21 in our Annual Reports.

Time Frame Action 6:
September 2007

Action 7:
December 2006
Reporting Status
Action 8: October 2006 and annually thereafter

Action 6 & 8 completed on schedule. Action 7 pending.


KPI
22. Number of signatories who have formally adopted the ECoPP and developed
systems for its implementation. (NB: Required of All Packaging Supply Chain
Signatories)

KPI
22A. Report whether ECoPP has been formally adopted.

Performance Measures & Targets:
Due to our relatively small size, Saxby’s must select from packaging available from our
packaging manufacturers, all of which are Covenant signatories and are required to be in
conformance with the ECoPP. Significant changes are not anticipated from the current
packaging mix.

Action 9: Saxby’s will conform to the ECoPP and associated Guidelines in our
Packaging decision-making process for any new packaging or reviews of existing
packaging.

Timeframe
Action 9: When new packaging considered or existing packaging reviewed

Report Status
Action 9 N/A as there has been no new packaging introduced and no reviews of current
packaging mix.




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22B. Report actions and commitments that demonstrate that the ECoPP has been
implemented.

Performance and measures targets;
Action 10: Saxby’s will continue to produce product in packaging materials that are
currently readily recycled.

Timeframe;
Action 10: Report progress annually

Reporting Status:
Action 10 completed on schedule. Virtually all packaging materials are currently readily
recycled.

Process and records for reporting against KPI’s: Refer Actions 9 and 10.

KPI
26. Implementation of Buy Recycled purchasing policy or practices. (NB: Required of
All Signatories)

KPI
26A. Report whether the signatory has implemented a Buy Recycled purchasing
Policy or practices.

Saxby’s does not currently have formal Buy Recycled purchasing policy or practices.
Recycled content in packaging used is affected by the practices of our packaging
manufacturers.

The two main contributors to packaging at Saxby’s Soft Drinks (glass & cardboard) are
sourced from suppliers that use recycled materials in their process. This equates to a
minimum of 97.9% of all packaging used containing recycled material

Performance measures and Targets
N/A

Timeframe
N/A

26B. If yes, provide details and quantitative data where available.

Performance measures: Total amount of product purchased that has recycled content was
2451 tonnes.

Timeframe: N/A

Reporting Status: N/A

Process and records for reporting against KPI’s: N/A



Saxbys Soft Drinks Pty Ltd –National Packaging Covenant Annual Report 2006-2007            10
KPI 27. Establishment of baseline performance data. (NB: Required of All
Signatories)

KPI
27A. Report indicative baseline data (where available),including qualifiers &
assumptions, by 31st October 2006.

Performance measures: Indicative baseline data was not available for Saxby’s to report.

Timeframe: N/A

Report status: N/A

27B. Report established baseline data by 31 October 2007.

Performance targets& measures: Action 11: Saxby’s will report established baseline data
in our first Annual Report under the revised Covenant.

Timeframe: Action 11: October 2007

Report Status: Action 11 -completed on schedule.

Process and records for reporting against KPI’s: Development of a spreadsheet-based
system to enable data to be recorded.

KPI 28. Annual Reporting against Action Plan. (NB: Required of All Signatories)

KPI

28A. Report to be lodged by 31 October each year commencing 2006 and outlining
progress against baseline data, individual Action Plan commitments, targets and
Timelines.

Performance measures and Targets:
Action 12: Saxby’s will report established baseline data and progress against all identified
KPIs, including KPI performance measures and targets in our first Annual Report under the
revised Covenant and annually thereafter.

Timeframe: Action 12: October 2006 and annually thereafter

Reporting Status: Action 12 completed on schedule. IDAS data entry completed before 31
October.

Process and records for reporting against KPI’s: Refer Action 12.


Saxbys Soft Drinks Pty Ltd –National Packaging Covenant Annual Report 2006-2007           11
KPI 29. Demonstrated improvement and achievements against individual targets &
milestones. (NB: Required of All Signatories)

KPI

29A. Annual report to clearly demonstrate continuous improvement and performance
against individual targets and timelines in Action Plan.

Performance Measures and Targets: Refer Action 12.

Timeframe: Refer Action 12.

Process and records for reporting against KPI’s: Refer Action 12.




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