At Royal Cup, we believe that long-term, responsible growth needs to be measured in more ways than just profitability. Using the triple bottom line model, we are able to approach sustainability in a more holistic manner by measuring success and impact in three distinct areas: social responsibility, environmental stewardship and economic prosperity.

As a company committed to environmental awareness and socially

responsible practices, Royal Cup takes pride in constantly researching and

developing products and coffees. Our goal is to help customers achieve their

objectives, while providing solutions that are environmentally responsible.

We sell quality products and services and are proud

of our work.

We are a 100% customer-driven company and strive to

create customer advocates.

We maintain high integrity in all interactions and treat

everyone like we would like to be treated.

We are good corporate citizens with a developed sense of

social responsibility and we give back to communities our

time, talent, & resources.

We are a profitable, growing company with a fun-loving

spirit, and a great place to work.

Royal Cup Coffee’s Core values

QUALITY

CUSTOMER

DRIVEN

INTEGRITY

SOCIAL

RESPONSIBILITY

WORK FOR

FUN & PROFIT

At Royal Cup, we measure sustainability success using the Triple Bottom Line.

This framework captures an expanded spectrum of values and criteria for

measuring organizational success:

Triple Bottom Line

At Royal Cup, Corporate Social Responsibility (CSR) is central to our core

values. We conduct business in an ethical and responsible way. We are

investing in a number of initiatives to maintain our strong CSR position

for the future, including:

• Royal Cup contributes over 5% of pre-tax profit dollars to various charities

and non-profit organizations every year. Our associates are encouraged to

give of their time, talent and money in support of their local community

activities.

• Individual Headquarter Leadership Support has personally committed to

the following: Executive Board Chair for Red Cross, United Way Campaign

Chair, United Way Board Chair, Boy Scout Campaign Chair, Rotary Club

Birmingham President, Leadership Alabama Founder, A+ Education

Reform Founder, along with many other committees, boards and groups at

a local and national level.

• Royal Cup is an active member of the National Coffee Association,

the Specialty Coffee Association of America, and Quality Assurance

International.

• In June 2013, Royal Cup teamed with Ecom to donate a computer lab

to an elementary school attended by children of coffee cherry pickers

in Brazil.

• Royal Cup is committed to its partnership with The Nature Conservancy for

over 20 years.

Social Responsibility

Charities and Non-Profit Organizations that Royal Cup supports:

Social Responsibility

And Many More…

Royal Cup recognizes the necessity of a healthy economic state in order to

positively influence the well-being of our employees, partners and customers.

We recognize and promote strategies that spur creativity, innovation and

entrepreneurship throughout the organization, which facilitates the creation

of shared knowledge that impacts business and industry.

• A new campus expansion at Royal Cup will provide over 40 jobs and

$3+ million in economic impact in Birmingham, Alabama and beyond.

• Royal Cup offers an Employee Assistance Program to help our employees

with emotional, legal, financial, and health-related issues, such as

smoking cessation.

• Royal Cup continues to invest in World Coffee Research (WCR) projects.

The WCR’s intent is to improve the availability of quality coffee worldwide,

while considering the environmental and economic impact on the

growing regions. A member of Royal Cup’s leadership team has served as

Board Chair since the WCR’s inception. For more information, visit: www.

worldcoffeeresearch.org.

Economic Stability

Royal Cup is committed to offering products and services that are good for

the environment, while operating in an efficient and effective manner.

Environmental Stewardship

From Farm to Cup• Royal Cup was the second roaster in the United States to purchase coffee

from Rainforest Alliance Certified™ farms in 2003. Rainforest Alliance

Certified™ farms support a healthy environment, promote the well-being

of workers and their communities, and ensure efficient farm methods.

Farm workers benefit from safe working conditions, dignified housing and

medical care, and access to schools for their children. Certification ensures

the protection of ecosystems, including wildlife habitat, water and soil.

www.rainforest-alliance.org.

• Over 60% of coffees produced in our H.C. Valentine Coffee Company

are organic. Output of organic coffees at H.C. Valentine increased by

64% in 2013.

• At Royal Cup, we build good relationships with importers and exporters.

Our travels to the producing countries reveal how well the farms are

managed and how well their people and the environment are treated on

these farms. Building relationships with these farmers and co-ops solidifies

our commitment to their well-being.

Royal Cup is committed to offering products and services that are good for

the environment, while operating in an efficient and effective manner.

sustainability of Operations• Royal Cup currently uses a regenerative thermal oxidizer to cut gas usage

and to clean smoke from the roasting process. We are working to reduce

energy and water usage and are contracting with a company to eliminate

other wastes, such as boxes and paper.

• Royal Cup partners with a local recycling company for our food

wastes, and is building partnerships to find second uses for our

burlap coffee bags.

• Our EspresShip Department is partnering with UPS to achieve a neutral

carbon footprint by 2014.

• Select divisions are utilizing GPS route technology, helping improve

efficiencies in fuel consumption and vehicle emissions.

• Royal Cup offers and actively promotes a full line of biodegradable and

compostable foodservice disposable supplies.

• The H.C. Valentine Coffee Company, a proud member of the Royal Cup

Coffee family, possesses several environmental certifications: Fair Trade,

QAI, USDA Organic, and Rainforest Alliance.

• Internal transportation is structured to minimize miles driven

and maximize cubic capacity usage. Backhauls minimize

“empty” miles driven.

• Royal Cup is currently testing the use of intermodal transportation (truck/

train) for long-haul shipments in an effort to reduce fuel consumption.

• Royal Cup operates a full rebuild operation for beverage equipment and

recycles unusable metal parts.

Environmental Stewardship

1. Give 5% of pre-tax profits to charity.

2. 90% of employees donate to United Way.

3. Royal Cup encourages and supports employee volunteerism in

our local communities.

4. Link all Royal Cup community involvement around the country and

develop an interactive map highlighting the company’s service from

coast to coast.

5. Obtain Certification from MWBE (Minority and Women Businesses)

with the goal of increasing partnerships with women- and

minority-owned businesses at 10% per annum.

Sustainable Goals

1. Strengthen and further define supply chain transparency program by

working with importers, co-ops, and farmers in producing countries.

2. Engage the Rainforest Alliance and Fair Trade Organization in an effort

to identify cause marketing programs to help support specific projects on

one or more farms from which we buy coffee.

3. Continue our investment in the World Coffee Research organization’s

pivotal work on genetics, disease treatment and prevention, variety trials

and other efforts.

4. Be a great place to work:

• Actively promote from within

• Monitor and measure against diversity goals

• Develop and promote safety and wellness programs

1. Increase output of sustainable coffees:

• Rainforest Alliance Certified™ coffee by 5%;

from 3.5 million to 3.675 million pounds

• Fair Trade USA Certified™ coffee by 60%

from 250,000 to 400,000 pounds

• Increase Organic coffee pounds by 15%

2. Reduce energy consumption

• In all our facilities

• Define Carbon Footprint in FY 2014 using SCAA’s

START Program

• Evaluate merits of LEED Certification in Royal Cup

plant expansion

• Expand waste and raw materials recycling programs

• Strengthen electronic commerce capabilities to reduce paper usage

• Expand “lights on timers” program in warehouses to conserve energy

• Fill 30% of equipment needs with refurbished coffee brewing

equipment

• Work towards achieving zero waste into landfills

• In our fleet

• Explore reducing emissions by switching to fuel-efficient fleet

vehicles

• Expand usage of fleet management software to increase efficiency

of the route system by end of FY 2015

• More fuel efficient route trucks will reduce fuel consumption by 16%

for this vehicle class

• Passenger minivans have been replaced with smaller vehicles,

which will result in 33% fuel savings

Royal Cup Sustainability Strategy

More Sustainable Coffees

Transparency

Quality Product

Integrity

Volunteer

Operate Efficiently

Best Placeto Work

Women- & Minority- OwnedBusinesses

Act Responsibly

Reduce Energy Use

World CoffeeResearch

Charitable Giving

Good Corporate Citizen

Carbon Footprint

RainforestAlliance Project