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Modern Slavery Statement 2020 Contents

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Modern Slavery Statement 2020 Contents Modern Slavery Statement 2020 Contents Introduction 3 Message from the Modern Slavery Working Group Chair 3 Our business 4 Our operations 5 Our supply chain 6 The risks of modern slavery practices 7 Assessing risks and policies 8 Our policies 8 Our governance 9 Own operations due diligence 11 Our supply chain due diligence 11 Remediation processes 12 Measuring effectiveness 13 The consultation process 14 Approval and signature of the statement 15 Appendix 1: Subsidiaries 16 Appendix 2: Index 17 Lion Modern Slavery Statement 2020 2 Introduction This statement is a joint statement covering Modern Slavery Act 2018 and section 54 (1) Message from Lion’s Modern Lion has now established a Modern Slavery the following Reporting Entities: of the UK Modern Slavery Act 2015 and Working Group with representation from right with respect to the financial year ending Slavery Working Group Chair across the business. This Working Group, • Lion Pty Ltd (the ultimate parent company 31 December 2020 (the ‘Reporting Period’). which I will Chair, will monitor progress and for Oceania); At Lion, our core purpose is to champion An index has been provided to guide readers support the implementation of any changes sociability and live well. Our sustainability to information related to each mandatory recommended through the review process. • Lion Global Craft Beverages Pty Ltd (the approach aims to strengthen the resilience ultimate parent company for UK and USA); reporting criteria (see Appendix 2). This of the communities in which we operate, We are pleased to share our first Modern statement sets out the steps that we have champion responsible use of our products, Slavery Statement under the Commonwealth • Lion-Beer, Spirits & Wine Pty Ltd (Australian taken to reduce the risk of modern slavery and ensures our environmental legacy Modern Slavery Act 2018, which will provide operations) practices taking place within our operations or has a positive impact now and for future further transparency about actions we are our supply chains during the Reporting Period. • Lion NZ Limited (New Zealand operations) generations. taking to identify and remedy any modern slavery risks in our supply chain. Consistent with our values that there is no We recognise human rights as a fundamental place for modern slavery within any of the About Modern Slavery principle underpinning all our business operations or supply chains of the Lion Group, The Australian and UK Modern Slavery Acts activities and understand the potential human this statement voluntarily covers the following (Commonwealth Modern Slavery Act 2018 and rights impacts of our own operations and additional Reporting Entities: UK Modern Slavery Act 2015) defines modern supply chain. We commit to taking appropriate • Lion Nathan USA Inc (US wine operations) slavery as including eight types of serious action to uphold respect for human rights. Libby Davidson exploitation covering: trafficking in persons; In 2020 we undertook an Ethical Sourcing • New Belgium Brewing Company (US beer forced marriage; forced labour; servitude; operations) and Modern Slavery Review with the key Group General Counsel slavery; debt bondage; deceptive recruiting objective of identifying areas for improvement External Relations + Sustainability Director • Fourpure Limited and Magic Rock Brewing for labour or services; and all forms of child and change, and as we prepare for our 2021 Modern Slavery Working Group Chair (UK operations) labour. Lion understands that practices Modern Slavery Statement, we will focus on like substandard working conditions and other training and internal awareness of modern References to “we” and “our” are references human rights abuses not defined as modern slavery. to each of those entities unless otherwise slavery may escalate or contribute to instances specified. This statement is made pursuant of modern slavery. to sections 13 to 16 of the Commonwealth Lion Modern Slavery Statement 2020 3 Our business Lion, headquartered in Sydney, is a leading beverages company in Australasia, with a fast-growing global footprint including operations in the United States and United Kingdom. Lion’s manufacturing footprint extends beyond 30 sites and employs over 3,900 people in Australia and New Zealand. We produce, market, sell and distribute Within the US, this includes Lion Nathan USA alcoholic and non-alcoholic beverages and Inc, trading as Distinguished Vineyards & Wine operate microbreweries and hospitality venues Partners (DVWP), our US fine wine business worldwide. which produces wine and proudly farms more than 1,000 acres of sustainably certified estate From humble Aussie and Kiwi beginnings, vineyards across California and Oregon. our ambitions are increasingly global, with a portfolio of beloved brands and venues in New Belgium Brewing, a nationally distributed markets across the world. beer brand, is recognised as a leader in sustainability and social responsibility. Founded Lion’s history extends back to the 1800’s and in 1991 in Fort Collins, Colorado, the company is proud to manage Australia’s leading beer expanded to Asheville, North Carolina in 2016, portfolio, including a broad range of brands, and to its Denver Pilot Brewery in 2018. New several popular ciders and sparkling alcoholic Belgium is now the fourth largest craft brewery seltzers. In New Zealand, Lion is New Zealand’s in the US. largest alcohol beverage company and we produce, market, sell and distribute many of In 2020, New Belgium Brewing took its market the region’s favourite drinks. leading IPA Voodoo Ranger global, launching in the UK, and launching in Australia in 2021. Our Lion Australia, Lion New Zealand and Lion Little World Beverages brands span beer, cider, Lion is a wholly-owned subsidiary of Kirin wine, spirits, coffee and kombucha. Alongside Holdings Company Limited. More information our own brands, we’re joining forces with regarding the history and structure of Lion is like-minded souls who share our passion for provided on our website www.lionco.com. brewing the best, not being the biggest. We acknowledge that our business activities, Lion Little World Beverages is the parent including our operations and our extended company for our entities operating in the supply chain could cause, contribute, or be United States and the United Kingdom. Within directly linked to modern slavery. the UK this includes Lion Beer Spirits and More information regarding our Australian, Wine UK, Fourpure and Magic Rock Brewing New Zealand, and International Brands is Company, which employ over 150 people. provided on our website www.lionco.com. Lion Modern Slavery Statement 2020 4 Our operations YORKSHIRE Magic Rock LONDON Argyle Fourpure Oregon MacRostie Little Creatures CALIFORNIA New Belgium Asheville 30 3 Markham Manufacturing Major Textbook New Belgium New Belgium Fort Collins sites offices San Francisco Magnolia Brewing - Dogpatch San Francisco Magnolia Brewing - Haight San Francisco Major office Major brewery Craft brewery Micro brewery Tiny Mountain Little Creatures Brewery Hobsonville Point Winery Freemans Bay MILTON Coffee Eumundi Brewery XXXX The Pride AUCKLAND Byron Bay Brewing Co. Malt Shovel Camperdown Little Creatures Panhead Sydney Olympic Park WELLINGTON Fremantle SYDNEY Upper Hutt PERTH Bevy WESTERN SYDNEY CBD York St Wither Hills Havana Brewing Co Marlborough CHRISTCHURCH The Fermentist MELBOURNE Tooheys Kosciuszko Lidcombe Harrington’s Brewery Furphy / Little DUNEDIN Emerson’s James Boag’s Creatures / Speight’s White Rabbit Launceston Geelong Lion Modern Slavery Statement 2020 5 Our supply chain Lion relies on thousands of suppliers providing us with raw materials and other goods and services to keep our business operating all year round. In turn, our suppliers engage other suppliers to support the delivery of these products and services to Lion. Lion ANZ spend by category We seek to promote responsible sourcing practices across our global organisation and to build long-term productive relationships with 11 our suppliers and encourage our suppliers to do the same across their own supply chain. As an example of our typical supply chain profile, in 2020, Lion Australia and New Zealand engaged with more than 3,700 suppliers from 23 countries and approximately 80% of our spend was with 99 suppliers. 2 The graph shows that the largest category of 38% spend was in Direct Materials which includes Lion ANZ spend ingredients such as hops and barley as well by category as packaging materials including glass bottles, aluminium cans, corrugate and paperboard cartons. Other spend categories include Logistics; Indirect products and services such as IT, corporate services, consulting and temporary labour; and Property & Site Services, all required to keep our business operating all year round. 1 Direct Materials Indirect product & Services Logistics Property & Site Services Lion Modern Slavery Statement 2020 6 The risks of modern slavery practices Lion’s operations are primarily based in defined by OECD. Many of our suppliers are countries with highly developed systems and 1 0% Trans-Tasman or have Australian/New Zealand processes in place in relation to maintaining 2 based subsidiaries and as a result most of our high standards of labour practices and direct spend is within our regional proximity. human rights. Australia, New Zealand, the Suppliers assessed as having an elevated United Kingdom and the United States are all modern slavery risk by nature of geographic considered low risk geographies according to location (high risk country
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