communicating sustainably - ramacafecommunicating sustainably ramacafé, managua september 3 2007...
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Communicating Sustainably
Ramacafé, Managua
September 3 2007
Dean Sanders
Director of Sustainability Nestlé Nespresso
To cover
Establishing the need and the opportunity
Exploring the principles and some other company examples
Sharing our approach
To cover
Establishing the need and the opportunity
Exploring the principles and some other company examples
Sharing our approach
To consume
To destroy, to squander, to
use up, to deplete
Oxford English Dictionary
Current levels of consumption are not sustainable
“One man’s consumption becomes his neighbour’s wish.
The more wants are satisfied, the more wants are born”
John Kenneth Galbraith, The Dependence Effect
So what’s the challenge?
To facilitate and enable the transition
from an unsustainable wasteful consumption
towards a new form of sustainable consumption
Business and society are in transition from the
consumer society…
Deliver $$
Drive lowest cost Consume more
Drive consumption
Shareholder
Value
Supply Chain The Consumer
Communications
Industry
The
Corporation
…to the sustainable society
Social, economic, environmental
Consume sustainably
Drive sustainable consumption, build brand
social equity
Shareholder
Value
Supply Chain The Consumer
Communications
Industry
The
StakeholderAnti-social practices a source of reputation risk
The
Corporation
What should companies pay attention to in the next
few years?
Source: Ipsos MORI June 2007, All British Public
Sustainable consumption is growing
Source: Fairtrade Labeling Organizations. Annual Report 05-06 Organic Trade Association, Soil Association, IFOAM
$-
$50,000,000.00
$100,000,000.00
$150,000,000.00
$200,000,000.00
$250,000,000.00
$300,000,000.00
$350,000,000.00
$400,000,000.00
$450,000,000.00
$500,000,000.00
Germany UK USA
Fairtrade 2004
Fairtrade 2005
$-
$2,000,000,000.00
$4,000,000,000.00
$6,000,000,000.00
$8,000,000,000.00
$10,000,000,000.00
$12,000,000,000.00
$14,000,000,000.00
Germany UK USA
Organic 2004
Organic 2005
Fairtrade
Organic
23%
35%
60%
12%30%
40%
To cover
Establishing the need and the opportunity
Exploring the principles and some other company examples
Sharing our approach
The principles and practices for success
Beliefs and
values
Communication
Product and
practices
Knowing who you are and gaining insight
into changing social patterns
Beliefs and
values
Communication
Product and
practices
We believe that everyone is
beautiful…
We believe in treating people and the environment with respect…
We believe in wellbeing…
Informing operations with beliefs
Beliefs and
values
Communication
Product and
practices
Supply chain
realignment…
Economic
transparency
and
traceability…
Independent validation…
Efficiencies
for the
consumer
Disruptive innovation signalled on pack
Bringing beliefs and practices to life for stakeholders
Beliefs and
values
Communication
Product and
practices
With honesty
Democratically
With humour
In the right tone for the right brand…
Not forgetting quality
To cover
Establishing the need and the opportunity
Exploring the principles and some other company examples
Sharing our approach
Our ambition
To be the icon for perfect coffee worldwide
Nestlé Nespresso
CHF 1 billion business
Growing at 30-40% per annum
Over 3 million Club Members
Represented in 48 countries around the world
Boutiques in 40 cities
Founded on our unique trilogy:
The world’s highest quality Grand Cru coffeesSmart, stylish and award-winning coffee machinesPersonalized 24x7 service for our Club Members
Nespresso - Passion for Perfection
Highest quality green coffee
Unmatched experts for roasting & grinding
Superior capsules/quality
Best machines, high innovation& emotional design
24/7 personal service
Within 48 hours delivery
Great variety, convenience & guaranteed freshness
Exclusive boutique network
Best in-cupquality (60/40)
Nestlé Nespresso manages the value chain from cherry
to cup
Three factors led to the creation of our AAA Program
1. The potential shortfall in the availability of highest quality coffee of the Nespresso flavour and aroma profile
2. Building on and developing Nestlé’s corporate sustainability commitment
3. Building the reputation of Nespresso as consumer expectations change
What Does « AAA » Mean ?
AA Highest Quality
A Sustainability
AAA Sustainable Quality
Nespresso AAA Sustainable Quality™ Program
To know more about - and to share more what we know about -
highest quality coffee cultivation and sustainable practices
Nestlé Nespresso’s wants to be preferred and respected as the leading quality coffee company for portioned coffee to become the
Icon for Perfect Coffee Worldwide
Leveraging the value of AAA Program to bring the consumer
closer to origin and to make the AAA Sustainable Quality™
Program more tangible
What Have We Done?
Pilot phase pre 2003
Engaged multiple stakeholders
Developed and tested the Tool for the Assessment of Sustainable Quality (TASQ™)
Involved 14 000 farmers in 9 regions in 5 countries
Currently 30% of all our coffee sourced through theAAA Program
Target 50% by 2010
A unique sustainable quality assessment tool tailored
to our business model
Quality criteria
Variety of the coffee
Crop Density
Plantation conditions
Soil Characteristics
Period and Time of Flowering
Harvesting Type
Shadow and percentage
Type of Agrochemicals used
Storage of the coffee
Drying processes / practices
Social Criteria
Hiring policies
Hiring practices
Rights and benefits of workers
Worker conditions
Labour conditions
Occupational health
Housing for workers
Rights and benefits of workers
Workers freedom and rights to organize
Access to educational & medical services
Communication with community and producers
Economic criteria
Ave. price received for last crop
Total production of the farm
Productivity
To whom the coffee is delivered
Further commercial activities of the farm
Average price paid to the pickers
% income from coffee activities
Environmental Criteria
Conservation of Biodiversity
Reforestation
Waste Management
Soil Conservation
Integrated Crop Management
Water consumption
Quantity and quality of waste generated
Quantity of energy used in the process
AAA Program Stakeholders
The AAA Sustainable Quality™ Messaging
AAA is a unique combination of quality and sustainability fully integrated into Nespresso business model
AAA is not charity – it’s about helping coffee farmers to help themselves driven by the commitment to highest quality
AAA is caring about now and the future
AAA builds on long-term partnerships between Nestlé Nespresso, NGOs, green coffee suppliers and the farmers/communities
AAA Program part of the brand DNA – not a one-off PR exercise
AAA is best practice in terms of Nestlé “Shared Value” CSR strategy
Defining communication style & tonality
With style and simplicity
As part of quality proposition “Sustainable Quality™”
Underlining connoisseur credentials
Credible, authentic, constructive
Romancing the countries of origin
Underpin brand advocacy
Inform, Inspire, Involve
Nespresso Magazine Announcement
Nespresso Magazine New Section Q & A on AAA
AAA Program Micro Website
Explore the World of Nespresso Grand Cru Coffees
Pages views since Nov. 06 1’226’189
Pages visitors since Nov. 06 354’778
2006 2007
Nespresso AAA Program Mirco Website
20’000
20’000
60’000
892’000 Mentions on Google AAA Sustainable Quality
Nespresso is inviting a group of 20 students
to go to the country of origin to learn more about AAA
quality coffee grown under sustainable conditions
AAA Summer Campus Syllabus for Students
Nespresso Magazine 6 AAA – Summer Campus
Media Amplification PhasingM
ed
ia C
ove
rag
e
• Club Member Comms (NMag Oct, website, boutique)
• Student and sustainability media (eg AIESEC, Gap Year)
• Media partnership supporting application and selection
Pre-event
• Real-time team media (eg eblogs, podcasts, travelogs)
• 20 key journalist visits and features
• Club Member Comms (eg website)
• Nespresso Magazine
During event
• Incremental news stories by non-attending media
• Student report project published in sustainability and coffee media
• AAA Forum presentation
• Club Member Comms (NMag, website)
• Other viral / word of mouth media
Post-event
Nespresso Magazine 7 AAA – The Ultimate Cupping
Regular updates to our club members on latest news
Double Honours/AAA Kenya
Building on the exclusive nature of the club concept
Quality and more as a long term communications
platform for Nespresso AAA
Feedback: www.nespresso-aaa-program.com