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Sustainability A FOCUS ON SUSTAINABILITY FY14 Home Contents CEO / Our business Strategy and Economic Trusted Responsible Environmental Building an Lion in GRI and Sustainability materiality contribution business value chain stewardship achievement figures Assurance Director message and growth partners culture Navigation arrows may not work in Safari and Firefox. For optimal viewing download and open in Acrobat Reader. A FOCUS ON... SCOPE OF REPORT CONTENTS This report covers all Lion operations in Australia and New Zealand for the Lion financial year beginning A message from our CEO 1 October 2013 through to 30 September 2014, unless and Sustainability Director 2 otherwise stated. Our business and strategy 3 Joint ventures (JVs) are included in some data. Our Material matters 4 Vitasoy and CCFA JVs are included in our environment Economic contribution 8 measures. Our people and engagement data includes Trusted business partners 11 all joint ventures. Our Vitasoy and CCFA JV facilities are Responsible value chain 18 included in the map of facilities in the ‘Our Business’ Environmental stewardship 37 section of this report. Otherwise, JVs are not included Building an achievement culture 44 unless specifically referenced. Lion in figures 51 This financial year is referred to as FY14 throughout the GRI Index 52 report. The operations of our Beer, Spirits & Wine Assurance statement 59 businesses and our Dairy & Drinks business are detailed in the infographic on page 3. The report does not cover the operations of our parent company Kirin Holdings. In accordance with GRI G4, our report boundaries for material issues are disclosed on page 7. 1 | Lion Sustainability Report FY14 Home Contents CEO / Our business Strategy and Economic Trusted Responsible Environmental Building an Lion in GRI and Sustainability materiality contribution business value chain stewardship achievement figures Assurance Director message partners culture There’s no reason a large business should be complicated to A do business with. We’re committed to creating an externally engaged Lion, which displays both flexibility and an entrepreneurial MESSAGE FROM spirit. A company that seeks to understand the needs of all its OUR CEO AND stakeholders and operates in partnership with them. SUSTAINABILITY In this respect, we are pleased to report good feedback from our community of external stakeholders over FY14. While there DIRECTOR is always more to do, it’s clear our people are working hard to grow engagement. We also have a very strong philosophical commitment to sustainability, both because it’s the right thing to do and because it’s simply good business. We are lucky to have an owner in Kirin that takes a very long-term view of the world. This delivers the right climate for decision-making, recognising no business can succeed without The theme of this year’s sustainability report is Third, we’re committed to turning around our juice business and meeting the reasonable expectations of all its stakeholders. ‘focus’, reflecting the philosophy we are growing our presence in non-alcohol beverages. To ensure these goals receive the attention they deserve, we have created a new Ultimately it’s people who make the decisions and Lion has been embedding right across our business. dedicated business called the Daily Drinks Company. on a cultural journey for more than 15 years now. A constructive, values-led culture is the most important asset any business can No business can succeed over the long term unless it’s very Lastly, we are excited about the opportunity to be part of have in achieving sustainable financial success. clear on its strengths and invests behind them. With this in mind, Australia’s Asian growth story through the establishment of a Lion recently launched a new strategy to fuel sustainable growth new business unit, Lion Asia Dairy – charged with building We’re pleased to be able to report very solid progress toward over the next 10 years. distinctive dairy brands in key Asian markets. Again, this strategy our sustainability goals and a range of exciting new initiatives. is grounded in a commitment to focus. Lion will play to its We have four simple objectives. strengths as a branded dairy business rather than seeking to We hope you find the report informative and easy to navigate. enter the commodity end of the market. We see it as an important step in being accountable to our First, we aim to expand our leadership in alcohol by revitalising stakeholders and also an opportunity to maintain a dialogue, the beer category and championing a more responsible drinking In support of these objectives, we reorganised our business so if you do have any feedback for us, please send it to: culture. during FY14. Regrettably, this required tough decisions and a [email protected] number of talented people left our business. We would like to Second, we plan to transform our dairy business, and we have acknowledge their significant contribution to the success of Thanks for your support over FY14. a clear three-year turnaround plan in place to achieve this. Lion over the years and offer them our support and good Our repertoire of natural dairy products is highly aligned to wishes as they move on to new challenges. Cheers, Australians’ desire to eat better quality and less processed food. We will lift performance by leveraging health and wellness across Underpinning each of our four objectives is a commitment to Stuart Irvine Duncan Makeig our business, focussing investment on profitable categories such simplicity and sustainability, both of which are at the very heart CEO Sustainability Director as milk-based-beverages, specialty cheese and yoghurt, and of our corporate strategy. leveraging our blockbuster brands. 2 | Lion Sustainability Report FY14 Home Contents CEO / Our business Strategy and Economic Trusted Responsible Environmental Building an Lion in GRI and Sustainability materiality contribution business value chain stewardship achievement figures Assurance Director message and growth partners culture OUR BUSINESS HISTORY LION GROUP 1840 REVENUE LD Nathan established as a approximately trading company in NZ CORE PURPOSE VALUES Enrich our world every Integrity, Achieving $5b Total 1900 day by championing Together, Sociability, number Dairy Farmers Milk Co-operative formed sociability and helping Wellbeing, Passion of people 1988 people to live well Lion Nathan is formed when New Zealand’s largest retailer, LD 7,201 Nathan & Co, merges with brewer, VISION wine and spirit manufacturer and hotel To achieve enduring Malanda operator, Lion Breweries leadership positions at home and in new markets 35 1998 by relentlessly building Total number Kirin acquires 45% interest in Lion Nathan (LN) distinctive brands which of facilities people trust 2007 <1% Kirin acquires National Foods 9% Milton 2008 Crestmead National Foods acquires Dairy 3 6% Clare Valley 6 Farmers Milk Co-operative Barossa juice 7% major 2009 facilities Adelaide Hills breweries Lidcombe Kirin Group acquires remaining LN shares Thebarton and obtains 100% ownership. Lion LEADING Fremantle Camperdown Salisbury 29% Nathan National Foods is formed BRANDS Wetherill Park East 1% Penrith Tamaki 2010 Canberra Smithfield Lindauer acquired Bentley Geelong 14% 5 22% Leeton 2 Mornington Peninsula contract and 2011 wineries Allansford wine bottling We become Lion. Operating as one facilities Chelsea Heights 3% Palmerston company with three businesses: King Island North Morwell • Lion Beer, Spirits and Wine Australia Burnie Marlborough • Lion Beer, Spirits and Wine NZ Wodonga 8% • Lion Dairy and Drinks 8 Launceston Dunedin 4 2012 Lenah Valley Lion acquires Little World craft milk breweries Beverages and Emersons facilities 2014 3 3 Prime Minister, John Key, officially opened the re-developed Speight’s Brewery. New businesses Lion Asia cheese 1 dairy food facilities facilities Dairy and The Daily Drinks Company are established. Lion acquires Morton soy Estate Wines facilities 3 | Lion Sustainability Report FY14 Note: Facilities refers to manufacturing and packaging facilities and does not include other sites, for instance corporate offices and distribution centres. Home Contents CEO / Our business Strategy and Economic Trusted Responsible Environmental Building an Lion in GRI and Sustainability materiality contribution business value chain stewardship achievement figures Assurance Director message partners culture OUR BUSINESS HISTORY 1840 LD Nathan established as a A trading company in NZ CORE PURPOSE VALUES FOCUS ON Enrich our world every Integrity, Achieving 1900 day by championing Together, Sociability, Total Dairy Farmers Milk STRATEGY sociability and helping Wellbeing, Passion number Co-operative formed AND people to live well of people LION 1988 GROUP Lion Nathan is formed when New MATERIALITY REVENUE Zealand’s largest retailer, LD Nathan 7,700 & Co, merges with brewer, wine approximately and spirit manufacturer and hotel $5b 10 41 operator, Lion Breweries Total number 1998 of sites* Kirin acquires 45% interest 4 764 in Lion Nathan (LN) Juice Plants 471 2007 Kirin acquires National Foods STRATEGY CORPORATE STRATEGY 498 6 Stuart and Duncan explain our new 10-year corporate strategy 2009 on page 2. Major Kirin Group acquires remaining LN Breweries shares and obtains 100% ownership. Expand Turnaround Build 2,240 Lion Nathan National Foods is formed Placing sustainability at the very heart of our corporate strategy alcohol Transform juice and distinctive leadership our dairy grow dairy brands is a clear signal of our commitment
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