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Moving Towards FIFCO 2020 Moving towards FIFCO 2020 INTEGRATED REPORT 2016-2017 FIFCO FIFCO 2 INTEGRATED REPORT 2017 Moving towards FIFCO 2020 INTEGRATED REPORT 2016-2017 FIFCO FIFCO 3 INTEGRATED REPORT 2017 How to read this report GRI 102-45, GRI 102-46, GRI 102-54 This report is available at The company reports on all FIFCO operations This report gives us the opportunity For the fourth consecutive year, our in Costa Rica, Guatemala, El Salvador and to show our shareholders and other www.fifco.com 2017 Annual Report is written under the United States: Cervecería de Costa Rica, stakeholders how the different areas and the Integrated Reporting framework, Florida Retail, Industrias Alimenticias Kern’s are interrelated and interact with each www.fifcosostenible.com following the guidelines established by the (IAK, located in Guatemala), North American other, identifying the multiple ways in International Integrated Reporting Council Breweries (NAB, located in the United States), which the company creates present (IIRC). This report presents the company’s Florida Hospitalidad and Florida Capitales, and future value. At the same time, it economic, social and environmental for the period corresponding to the fiscal year evaluates the company’s contribution performance and provides a summary of between October 2016 and September 2017. to society and the environment at a how FIFCO creates value in financial and Some sections of this report include data from local and regional level, by linking its non-financial terms. El Salvador; however, this does not represent efforts and initiatives with the specific a significant activity for FIFCO since it has only contexts and challenges in which it 10 collaborators and most initiatives don’t operates. apply. If you have any questions or The Vincular Center – PUCV suggestions regarding this FIFCO complements the guidelines and The contents within this report were report, please contact recommendations of the IIRC and this report defined based on the following criteria: For the fourth consecutive year, the company switches from FIFCO’s Corporate Rela- has been prepared in accordance to the GRI consistency and continuity with the a complete audit, to a specific verification of materiality and tions Department Reporting Standards: Comprehensive Option content reported for the 2015-2016 stakeholder participation processes, reporting in accordance Tel: (506) 2437-7770 and the United Nations Global Compact guiding period; definition of materiality according to the GRI Standards: Comprehensive Option in a 2437-7291 principles; and refers to the relationship between to interviews and a consultation process more flexible and transparent manner, executed by the company’s strategy and the Sustainable implemented with our stakeholders; an the Vincular Center for Social Responsibility and email: Development Goals (SDG). update of our sustainability strategy, as Sustainable Development, School of Commercial [email protected] well as key achievements and programs Engineering, Pontificia Universidad Catolica de from the previous period. Valparaíso in Chile. FIFCO FIFCO 4 INTEGRATED REPORT 2017 Reporting in accordance with the Global Reporting Initiative: Opción Exhaustiva Through its corporate strategy FIFCO aims for a sustainable development. As a means Principles for Content Principles for Quality to hold itself accountable regarding this sustainable development aspiration, FIFCO publicly reports its –positive and negative • Stakeholder Inclusiveness •Accuracy - economic, social and environmental impacts. In order to do this, its reports are • Sustainability Context • Balance developed in accordance with the Global Reporting Initiative Standards (GRI), • Materiality • Clarity published on October 19, 2016, which define a common reporting language. • Completeness • Comparability This report is elaborated applying the 10 • Reliability principles established by the GRI, regarding both content and quality: • Timeliness FIFCO FIFCO 5 INTEGRATED REPORT 2017 The International Integrated Reporting Council also suggests that in order to demonstrate how the information is interconnected, an integrated report must answer each of the following six questions: General aspects and business Strategic Objectives Corporate Governance model What does FIFCO do and how do we Where is FIFCO headed and how will What is FIFCO’s corporate create sustainable value in the short, it get there? governance structure and how does it medium and long term? relate to the sustainability strategy? FIFCO is a Costa Rican public company, FIFCO aims to lead the categories FIFCO operates under the Corporate founded in 1908; it produces and in which it competes through the Governance Code, the second version distributes food and beverages mainly in development of ideas that make sense having been approved by the Board Central America, the Caribbean and the economically, but also have a minimal of Directors in May 2017 (the previous United States, it also has a hospitality or positive impact on society and the version was in force since 2009). business in the province of Guanacaste, environment. Innovation, operational Following this code is mandatory for Costa Rica and various investments. and commercial excellence, category the company and all our collaborators. For the past 10 years, FIFCO has been development and an entrepreneurial This code establishes the company’s operating under a triple bottom line culture have become the means to management system, under the approach, where sustainability is at the achieve our corporate goal. principles of transparency, accountability core of the company, as the motor for and sustainability. innovation and constant improvement. FIFCO FIFCO 6 INTEGRATED REPORT 2017 Operational Context Performance Looking to the future Under which circumstances does the How was the company’s performance What opportunities and challenges company operate, taking into account in relation with the strategic goals? could FIFCO have to face? key commodities and relationships on which the operation depends? FIFCO’s operation is exposed to In regards to the 2020 goals, FIFCO’s FIFCO’s “guiding star” is to “Enhance various contexts, not only in regards economic, social and environmental every beverage consumption to geography - having operations in performance in 2017 was positive. This opportunity”; this guides our actions and 4 countries (Costa Rica, Guatemala, report details the financial and non- in order to achieve this we have defined El Salvador and the United States) financial achievements attained in the a series of commitments for the year - but also in participating in different three dimensions, which demonstrates 2020, grouped within three strategic industries, categories and segments. our commitment to offer products and objectives: World tendencies and discussions services of the highest quality, with regarding food, beverages, nutrition, minimal impact on our environment, 1. Double Sales and Profitability alcohol in society, tourism, and while we create value in the communities convenience stores amongst others, where we operate. 2. Be champions in our communities, are consequential circumstances for with our collaborators and in regards to the business. The rational use of raw Smart Consumption. materials or commodities insures a sustainable operation for the future. At 3. Reach a positive balance in Water the same time, an effective dialogue with Consumption, Emissions and Waste. our stakeholders is fundamental for the creation of real economic, social and environmental value. FIFCO FIFCO 7 INTEGRATED REPORT 2017 Contents Economic Section 1 Section Dimension Message from the Chairman of the Board of Directors 10 2 Message from our CEO 13 2017 Milestones 16 54 Corporate Governance 17 Risks 22 Organization Profile 24 Internal Social External Social Dimension: Dimension Our business model 29 Our People Social Investment Our strategy and the United Nations Sustainable Development Goals 30 FIFCO’s 7 commitments for 2020 32 107 13 2 Our stakeholders 34 Impacts and materiality of the value chain 37 Envirnomental GRI Standards Generating value 39 Dimension & Annexes Changes in the organization 41 Certifications and acknowledgements 42 Organizations we are part of 43 The Capitals 44 15 5 179 FIFCO FIFCO 8 INTEGRATED REPORT 2017 Board of Directors WILHELM STEINVORTH HERRERA CHAIRMAN RODOLFO JIMÉNEZ BORBÓN VICEPRESIDENT ARTURO ALEXIS LORÍA AGÜERO SECRETARY JOSÉ ROSSI UMAÑA* TREASURER ANDRÉ GARNIER KRUSE* VOTING MEMBER EDNA CAMACHO MEJÍA* VOTING MEMBER SERGIO EGLOFF GERLI* VOTING MEMBER ROBERTO TRUQUE HARRINGTON* STATUTORY AUDITOR *Independent members of the Board of Directors FIFCO FIFCO 9 INTEGRATED REPORT 2017 SECTION1 FIFCO FIFCO 10 INTEGRATED REPORT 2017 Message from the Chairman of the Board WILHELM STEINVORTH H. CHAIRMAN OF THE BOARD OF DIRECTORS Dear Shareholders: Florida Ice & Farm Co. is celebrating 109 years of existence, and looking Throughout these 109 years, it is worth highlighting the significant back and reviewing the company’s achievements, how much it has progress that FIFCO has made in the last decade. In recent years, the grown in little more than a century and the positive impact it has had company has grown and evolved in a very remarkable way. We went on Costa Rica; we cannot fail to thank the leaders who guided FIFCO to from having 1,800 collaborators to more than 6,400 today, we have where it is today. Presidents of the company such as Mr. Cecil Vernor managed to multiply the size of the company over six times, reaching Lindo
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