04/2011

A note from the CEO As one of our key UK and Ireland stakeholders we’d like to keep you 2012 CSV At Nestlé we believe updated on our UK and global that to be successful activities and I hope that you find this Prize – Call new quarterly eNewsletter helpful and over the long-term informative. Key news for this quarter we need to create relates to the recently announced for Entries value for our Public Health Responsibility Deal and Do you know of an shareholders and for an update on our palm oil sourcing commitments. In the next edition innovative development society as a whole. we’ll update you on progress against project that would We call this Creating Shared the targets that we outlined in our benefit from a UK Creating Shared Value report Value and place particular focus substantial on three key areas that are core published last year. to our business: nutrition, water We very much welcome any investment? and rural development. feedback that you may have - please send your comments and Nominations are now open for Nestlé employs just under the 2012 Nestlé Prize in Creating ideas to [email protected] 7,000 people across 19 sites in the UK and Ireland and is one of Shared Value. Launched in 2009 the UK food industry’s major exporters, exporting in excess of Paul Grimwood, Chairman and the bi-annual prize offers advice £266m worth of products each year to over 32 countries. Food Chief Executive, Nestlé UK & Ireland and financial support of up to manufacturers of all sizes are facing extremely tough market 500,000 Swiss Francs (approx conditions in 2011 and we are committed to playing our part in £340,000) to an individual, NGO the UK and Ireland’s economic recovery whilst at the same time or small enterprise working in encouraging government to do everything it can to support our the field of nutrition, water or rural development. Applicants sector and create the optimum conditions for business. can either self-nominate or be nominated by others familiar with their work and the application deadline is 30 Nestlé signs up to Public Health June 2011. The Prize is open to applicants from anywhere in the Responsibility Deal world but the initiative must be implemented in a developing Nestlé UK has been working with the UK Government on the country. Full details Public Health agenda for a number of years and we very much are available at: Nestlé Prize welcome the partnership approach being developed under the recently launched Public Health Responsibility Deal.

Nestlé has signed up to all differing consumer • We have developed a 99 kcal the Food Pledges, all the preferences - from Shredded biscuit range which includes relevant and applicable Wheat which contains no , Blue Riband, Physical Activity Pledges, added salt to great tasting Toffee and Drifter. and finally, all the Health at treats like . Work Pledges. • We provide lower , We are also committed and saturated fat As a major food manufacturer to providing nutritional options on popular we understand that information to help our beverage brands including consumers are looking for employees and consumers Café Menu Skinny healthier foods that make informed food choices Range and Nescafé Dolce do not compromise on taste and constantly review and Gusto Skinny Range. and in the UK and Ireland look to improve the products we offer a wide range of that we offer. For example: The Responsibility Deal’s products which meet strength comes from • Since 2008, 195 tonnes of organisations across varying salt have been removed sectors working together to from Nestlé breakfast improve people’s health and cereals portfolio in the UK we believe this is just the (based on actual volumes beginning of what we hope sold). becomes an engaging and constructive partnership. • Over 25% of our breakfast cereals sales in the UK are More information about the Yan Reach, one of the rural farmers supported by products with no added Deal, its partners and their International Development salt (e.g. Shredded Wheat, pledges, can be found at: Enterprises (IDE) Shredded Wheat Fruitful Cambodia, winners and Honey Nut Shredded Public Health Responsibilty Deal of the first Nestlé Wheat). Prize in Creating Shared Value 04/2011

Nestlé UK Ltd moves to 70% certified 2010 Rural sustainable palm oil by January 2012 Development Report From January 2012, 70% of the palm oil used in manufacturing by Nestlé UK Ltd will come from certified sustainable sources. launched The remaining 30% of the palm oil used in Nestlé UK products Nestlé has been working with will be covered by GreenPalm Certificates. farmers and rural communities since the company formed over 140 years ago and we now This move supports the global formed an agreement with For more information on have 443 factories, most of target of sourcing only sustainable Nestlé and since then, significant Nestlé’s position on palm oil visit them in rural areas and half in palm oil by 2015, that was set by progress has been made. Working deforestation and palm oil. For developing countries. Our new Nestlé in 2009. By the end of 2011, with Nestlé, we have conducted an update on how the TFT work Creating Shared Value Rural certified palm oil and palm oil an in depth analysis of the is progressing please see the TFT Development Report has just certificates will account for 50% of supply chain in order to create website: Nestlé and TFT publish been launched, outlining the Nestlé’s global purchases and we transparency. We’re now working first progress report. economic, environmental and continue to work with suppliers, with Nestlé suppliers to help them social impacts of our operations farmers and other stakeholders change the way they operate and and reinforcing the critical to increase the availability of we are already beginning to see role that rural development sustainable palm oil. success in this area”. plays in poverty reduction in low-income countries. It also Nestlé globally buys 0.7% of world includes updates on The Cocoa palm oil production and Plan and The Nescafé Plan last year announced a new and recommendations from partnership with The Forest Trust our external Creating Shared (TFT) to establish Responsible Value Advisory Board on areas Sourcing Guidelines. where Nestlé needs to do more. The full report and a summary Nestlé was also the first company to version can be accessed at: commit to ensuring its products do Rural Development Report not have a deforestation footprint.

Commenting on the UK news, Scott Poynton, TFT’s Executive Director said, “Last May, we

A palm oil plantation

UK Nescafé consumers are introduced to Gerardo!

In August 2010 Nestlé launched The Nescafé Plan, a ten year £213 million investment that brings together Nestlé’s commitments on coffee farming, production and consumption.

Through The Nescafé Plan, training. More information on Nestlé will double the amount Gerardo’s story is available of coffee it purchases directly through The Nescafé Plan. Last from farmers, expand its month Nestlé also announced technical assistance for farmers details of new Nescafé Plan and distribute 220 million high- projects that will support farmers Farmers Jaswinder Singh and yielding, disease resistant coffee from the Colombian Coffee Jasveer Kaur deliver milk to a plantlets by 2020. In February Growers Federation (FNC) chilling centre in Nestlé’s milk 2011, Nestlé UK began consumer which represents more than district in Rajasthan, India advertising on The Nescafé 500,000 producers – for further Plan featuring Nicaraguan information see: farmer Gerardo Areas who The Nescafé Plan underway has benefitted from farmer in Colombia Coffee farmer Gerardo Areas