SOCIAL AND ENVIRONMENTAL REPORT 2017 · and tas,Zue g“B ioC em ”w h c ert ﬁ do gan f uit an s...

SOCIAL AND ENVIRONMENTAL REPORT 2017

March 2018

W h at i h av e a r e m y o r c h a r d s

My name is Oswald Zuegg.

I’m an agronomist and an entrepreneur.The boundary between my office and my orchards is imaginary:

While I have learned a lot from our company, I have learned even more from our orchards.

I know that there’s a strong link between the quality of the land and that of the fruit, and

I must confess that, when it comes down to it, I am more passionate about trees than figures.

Growing up in a family that has always owned orchards, becoming an agronomist was only natural:

While other children dreamed of going to the moon, I dreamed of staying on earth.

Obtaining orchards in northern Italy like those of the south meant growing them on the best land

and under climatic conditions suitable for different varieties: the very best can only be obtained by combining

different types of seeds, soils and climatic conditions.

Knowing your orchards well, monitoring them with a combination of humility and ambition,

and experimenting with new recipes that reawaken the taste buds:

these are traditions that have been passed down in our family for generations.

And we believe that this is the only possible way

to show our appreciation for you and the land itself.

Zuegg, since 1890

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ZUEGG GROUP EVERY ORCHARD HAS ITS STORY...

... EVERY FRUIT SOPHISTICATED RECIPE

ZUEGG BRAND PRODUCTS (B2C)

PRODUCTS FOR THE FOOD INDUSTRY (B2B)

ZUEGG: FAMILY, ORCHARDS

THE ENVIRONMENTAL REPORTINCREASINGLY EFFICIENT AND MINDFUL

ZERO WASTE, MAXIMUM SAVINGS

ENERGY AND ECOLOGICAL MANAGEMENT

SIGNIFICANT ENERGY PARAMETERS

THE ENERGY PARAMETERS OF THE GROUP AS A WHOLE

VERONA

LUOGOSANO

WERNEUCHEN

ZÖRBIG

ELNE

AFANASOVO

THE SOCIAL REPORT THE ZUEGG STAFF

THE RIGHT BALANCE BETWEEN LEISURE TIME AND WORK

CONSUMPTION, SUSTAINABILITY AND INNOVATION

OUR CORPORATE SOCIAL RESPONSIBILITY

STAFF PROFILE

ORGANISATIONAL MODEL

ETHICS AND MONITORING

WORKPLACE HEALTH AND SAFETY

INFORMATION AND COMMUNICATION

ZUEGG RETURNS TO TV WITH A NEW ADVERTISING SPOT:

“THE ORCHARDS OF OSWALD ZUEGG”

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CONTENTS

6

EVERY ORCHARDHAS ITS STORY… It was 1860 when Ernst August Zuech (Zuegg only after 1903), together with his 14 children, began growing fruit on his farm in Lana d’Adige (South Tyrol) and selling it at nearby markets.

This was the start of a fascinating story: while the company underwent significant development on a local scale throughout the 20th century, its products only began to be distributed throughout the country in the 1950s, driven by the famous Fruttino snack and the first fruit juices. In 1962, at the height of the economic boom, Zuegg inaugurated a new plant in Verona, where just a few years later an exclusive aseptic Tetra Pak juice packaging line would be invented in Italy for the first time.

From the 1980s onwards, the company’s production activities continued to expand with the construction of major facilities and offices: in 1985, Zuegg inaugurated a new facility in Avellino, immersed in the surrounding nature, where the fruits were harvested, selected, and transformed into purées or simple frozen cubes; in 1991, a portion of the production activities were moved abroad for the first time, to

ZUEGG GROUP

Werneuchen, with the establishment of a new facility for the production of semi-finished products destined for the northern European market. In 2001, Zuegg purchased another facility in the German town of Zörbig, near Leipzig, for the production of jams and syrups. In 2002, the company purchased a facility in Elne, France, where it produces semi-finished products for the French, Spanish and Portuguese markets. Zuegg Austria was established in the city of Graz in 2010, with the aim of marketing Zuegg brand products throughout Eastern Europe. A new plant for the production of semi-finished industrial products was built that same year in Afanasovo, Russia.Sales offices were opened in Switzerland and the United States in 2013 and 2014, respectively. This consolidated a group of global dimensions, but which nevertheless remained inspired by craftsmanship and a love for nature.

In 2017, the group led by Oswald Zuegg has a total turnover of 326 million Euro, 6 well-established plants throughout Europe, and the prospect of conquering new markets around the globe.

... EVERY FRUITA SOPHISTICATED RECIPE

Zuegg Group produces a wide range of Zuegg and Zuegg Skipper brand products, plus an equally wide and specialised range of products derived from primary and secondary fruit processing for the food industry. The production activities are guaranteed by the famous “Zuegg Method”: a series of high-quality procedures that have earned prestigious official recognitions,

including ISO 9001, ISF (International Food Standard) and BRC (Global Standard Food) certification, all of which are respectively governed by the Federal Association of German Trade Companies and the British Retail Consortium.

In 2017, the Zuegg brand division (B2C) generated approximately 222 million Euro, accounting for 68% of

the total turnover. The industry division (B2B), on the other hand, generated 104 million Euro, accounting for 32% of the total turnover. Primarily thanks to the brand division, which drives the group’s continued growth, the total turnover of 326 million Euro marked an overall increase of 7.6% with respect to the previous year.

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TOTAL TURNOVER 326 MILLION EURO

B2C TURNOVER BY PRODUCT CATEGORY

+7.6 %

+5.6%

+19.8%

2017

+14.4%

68%B2C

32%B2B

TURNOVER IN MILLIONS OF EUROS

2016 194

2017 222

109

104

BRAND

JUICES

JAMS

TREND

194

222

114.2

136.8

80.2

84.7

INDUSTRY

2016

2017

BRAND

2016

2017

2016

2017

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Jamsand marmalades

Zuegg is the number one jam in Italy, the most appreciated by families because it is prepared with the best fruit picked by hand and according to recipes designed to enhance each type of fruit. In 2017, the classic line of 320g “Oswald Zuegg Orchards” jams featured 18 different flavours: 18 tried and tested recipes designed to bring out the flavour of each individual fruit variety. Alongside tradition, the “100% fruit” line, only grape

sugars for the least sweet but most intense Zuegg jams. Then there are the “Zuegg Vellutate”, renamed “La Pasticcera”, i.e. soft jams, particularly suitable for the preparation of cakes and tarts, Zuegg “BioCremosa” with certified organic fruit and cane sugar and, finally, “La Leggera”, with no artificial sweeteners and only 10 kcal per serving. A comprehensive product range that bears witness to Zuegg’s leadership on the Italian jam market. (*)

Nectars and juices

In their practical 200 ml Tetra Pak format, Zuegg’s juices and pulps represent nectars par excellence: Velvety apple, pear, peach and apricot nectars: the intact taste of Italian fruit, with no artificial flavours, colours or preservatives. The “wellness” Nectar line offers three exclusive recipes rich in vitamin C and antioxidants: pomegranate, wild blackcurrants, red berries and goji in

Zuegg 6x125ml, juices dedicated to those who take care of themselves every day. The nectar alternatives are known as Skipper products: popular light and refreshing juice products that are continuously evolving in terms of flavour, formats, and innovations. And last but not least, the new line with no added sugar: all the sweetness of freshly picked natural fruit, with no added sugar, thus keeping its original

quality intact. And Zuegg quality can now be found everywhere thanks to the range of products designed for the Ho.Re.Ca sector, with an increasingly vast selection and variety of flavours. Despite a generally negative consumption trend, Zuegg’s market share has increased by 1.7 percentage points over the past four years, more than all other major players in the sector (*).

(*) SOURCE: IRI 12.2017

FRUITHARVESTED

BY HAND

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Transformation processes

The same fruit and the same philosophy of quality that have contributed to the success of Zuegg products in the consumer market are always at the disposal of the Business to Business Division, the sector dedicated to the food and confectionery industry. In this context, the plant in Avellino provides many first-stage processing products such as concentrated or frozen aseptic fruit purées, fruit pastes and IQF fruit, according to predefined or custom wholesale batches. All processed products originate from local seasonal fruits:

the incoming goods, in raw materials selection, as well as goods leaving inspection, up to the packaging of the finished product. The plants involved in fruit processing have acquired the major European industry certifications and particularly those required for organic production. The numerous freezing, packaging, storage and logistics services, plus other on-demand services, testify to the desire to offer a reliable and flexible partnership, ready to meet the challenges of global markets. Another great Zuegg result.

ZUEGG: FAMILY, ORCHARDS

Values and methods

Zuegg’s values (quality, experience, collaboration and benefit-sharing within the group) have become its official rules of conduct, and have thus been enshrined within a code of ethics that represents the strength of a directly responsible community: the great Zuegg “family”.The attention dedicated to these values is substantiated by a production method that’s capable of combining the organoleptic properties of fresh fruit with the demands of an increasingly well-informed consumer base, which is always attentive to both flavour and safety.

apricots, peaches, strawberries, cherries, oranges, figs, kiwis, plums, pears, quinces and chestnuts.The production of the four plants for the second transformation (Verona, Werneuchen, Elne, Afanasovo) is dedicated, for the production of sweets, snacks, smoothies, baby food, ice cream, yoghurt and other bakery and confectionery specialities. The operations of the B2B Division, which in 2017 accounted for 32% of total Zuegg Group turnover, are ensured by careful inspections of

Zuegg sustainability

Consistent with its values and methods, the Zuegg Group some time ago undertook a major autonomous fruit procurement andmanagement project. That of the integrated supply chain, literally “from tree to table”, today practised both in its own orchards, as well as those of selected fruit growers. A project that was greatly desired

PRODUCTS FOR THE FOODINDUSTRY (B2B)

and is gaining traction among an increasing number of Italian and European operators. This eco sustainable formula, which involves a large number of professional services and industry experts, shortens the qualifies the supply chain in order to obtain fruits that are better, tastier and more genuine than ever before.

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INCREASINGLY EFFICIENT AND MINDFUL

2017 was an extremely positive year for Zuegg Group. This consideration is not so much based on the increase in overall profits, but rather the accomplishment of an enthusiastically pursued and strongly desired goal: to obtain a progressive and constant reduction of the energy consumption and environmental impact parameters.

The Group is therefore in excellent shape today from both a financial and ethical standpoint, also because it boasts an excellent position in terms of strategic assets, thus conveying an image that’s increasingly consistent with its core business and its health and wellness mission.

From an environmental perspective, the gradual decrease in energy consumption and the consequent reduction in CO2 emissions show that all the efforts made in recent years to optimise the plants have generated measurable results, and, more importantly, that the process is still ongoing.

On the social side, the Zuegg family is increasingly motivated and serene, aware of the fact that it is operating in an environment that’s not only innovative and growing, but is also increasingly understanding and responsive to everyone’s needs.

THE ENVIRONMENTAL REPORT

GOALACHIEVED

ZERO WASTE, MAXIMUM SAVINGS

At Zuegg, proper management of resources, together with an equally rigorous management of waste disposal, are an integral part of the individual culture of every worker, employee and manager. All the plants have implemented regulations and continuous reminders regarding the proper use of water and electricity. Various automated waste prevention systems are present in all production and administrative departments, where sorted waste collection practices are also in place. These small measures have significantly raised awareness of our contribution to making the world a better place.

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Water

Electricity

Methane Gas

Carbon Dioxide

Waste

SIGNIFICANT ENERGY PARAMETERS

Unlike other resources, water is not renewable. The steady increase in demand witnessed during recent years has required the group to come up with solutions that will allow for a more rational use of this resource. As a result, the optimisation of the washing processes and the wastewater generated by production became one of the group’s most urgent tasks.

The group has systematically streamlined the use of this resource with an attentive energy savings policy, as well as through resource renewal, by focusing upon the adoption of high-performance systems, such as the cogeneration system launched at the Verona plant in 2014.

Among all fossil fuels, methane gas remains the group’s favourite due to its relative abundance, as well as the fact that it is relatively “clean” and “well-performing”. In fact, methane does not release any particular or unburned residues within its fumes, thus ensuring an advantageous cost/yield ratio with respect to the other resources.

In order to help curb the release of gases harmful to the atmosphere, in 2010 Zuegg Group began a CO2 emission monitoring process, while at the same time launching annual reduction programs for the production phases, and optimizing its transportation and distribution system with a new logistics system.

Approximately 90% of the waste materials generated by Zuegg consists of supply packaging (cardboard packaging, plastic wrappers, and steel drums), which are valuable raw materials for the recycling industry. Consequently, the proper diversification and sorting of waste materials is systematically carried out at source in order to ensure their reuse. The remaining organic residues consist of sludge and liquid wastewater from the production line washing processes.

ENERGY AND ECOLOGICAL MANAGEMENT

In 2001, the group’s Chairman, Oswald Zuegg, decided that the group’s development would be based upon values of sustainability aimed at protecting the environment. Since that time, using a dedicated intranet, all the plants’ employees, from the managers to the individual operators, have helped to monitor the group’s energy and environmental parameters, including drinking water, electricity, methane gas, CO2 emissions, and waste products.

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THE ENERGY PARAMETERS OF THE GROUP AS A WHOLE

Water (m3/t prod.)

Electricity (Kwh/t prod.)

Methane gas (m3/t prod.)

Waste products (kg/t prod.)

CO2 equivalent emissions (kg CO2/Kg prod.)

2015

5.44

136.87

31.66

23.61

0.141

2016

5.40

137.66

31.64

23.35

0.131

2017

4.9

128.45

29.66

23.03

0.127

ITALY VERONA • LUOGOSANO

GERMANY WERNEUCHEN • ZORBIG

RUSSIA AFANASOVO

FRANCE ELNE

SWITZERLAND CHUR

AUSTRIA GRAZ

U.S.A HOBOKEN

PRODUCTION SITES

SALES OFFICES

As evidenced by the data in recent years, Zuegg Group has achieved its growth objectives while at the same time gradually reducing its environmental impact. In fact, although the Group’s production may often be discontinuous and fragmented, even due to market changes, all the energy parameters show a continued decrease in electricity and water consumption, as well as a reduction in waste materials and gas emissions.

THOSE WHO ARE IN NEED OF LESS ARE STRONGER

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VERONA

Comments on the data

The Verona facility recorded a significant overall increase in production (B2C and B2B) throughout 2017. Despite this, all the energy parameters were further optimised, with the best results of the past 3 years being achieved in terms of electricity and water consumption, waste production, and gas emissions.

Activities and productionThe Verona plant produces fruit juices and semi-finished products, or rather anything that results from the “secondary transformation” of raw materials. These juices, which have the typical colours, flavours and aromas of the fruit, are used to produce: beverages, namely products prepared with water, fruit juice, fruit extracts, flavourings, sugar, and additives; and nectars, which are obtained by adding water and sugar to fruit juice, puree or concentrate. The semi-finished product line processes frozen fruit (either whole or in pieces) with the addition of sugar, thickeners, additives, dyes and aromas: all elements used for the preparation of yoghurt, ice cream, and various other confectionery products.

Plant dataLocationindustrial area of Verona, Italy Year founded1958Industrial area36,000 m2

Production capacity24 hours, divided into 3 work shifts. 5 days out of 7Resources and supplies3 autonomous water wells; medium voltage power line; natural gas pipeline of the industrial areaDisposalpublic sewer, treatment using public facilities.

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WATER CONSUMPTIONin relation to production (m3/t prod.)

ELECTRICITY CONSUMPTIONin relation to production (kW/t prod.)

NATURAL GAS CONSUMPTIONin relation to production (m3/t prod.)

WASTE MATERIALS GENERATEDin relation to production (kg/t prod.)

CO2 EQUIVALENT EMISSIONS(Kg CO2/kg prod.)

2015

20162017

5.93

6.095.39

100.65

98.4587.11

20152016

2017

19.6117.57

20.1620152016

2017

10.62

8.9410.91

201520162017

0.0890.087

0.077

20152016

2017

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LUOGOSANO


Despite a slight increase in waste production with respect to the previous years, the Luogosano and Verona facilities were able to cope with a significant production increase by streamlining the processes and by generally reducing their consumption of all the main energy resources.

Activities and productionA large centre dedicated to transforming fresh fruits into raw materials for the food industry. These include frozen fruit (either whole or in pieces), fruit puree, fruit puree concentrate, and citrus juices. Other products including the “Fruttino”-snack and semi-finished products in tubs for the confectionery industry. The transformation activities, which are mainly seasonal and are concentrated during the months of maximum availability (January to April and May to October), involve all the excellent fruits typical of central and southern Italy. Not surprisingly, Luogosano is one of the flagships of the Zuegg sustainable agronomy project, which involves proprietary fields and close collaboration with hundreds of selected local growers. A synergy that has created considerable social connections within a 180 km radius around the plant itself.

Plant dataLocationnear San Mango sul Calore, 38 Km from Avellino, Italy Year founded1985Industrial area28,000 m2

Production capacity24 hours, divided into 3 work shifts5 days out of 7 low season; 6 out of 7 high season Resources and suppliesaqueduct, medium-voltage power line, and gas pipeline to the industrial area Disposalinternal wastewater discharge system with biological treatment unit.

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2015

20162017

6.57

7.626.11

150.31

157.67141.94

20152016

2017

40.2537.82

38.3620152016

2017

39.01

45.0934.36

201520162017

0.1770.172

0.174

20152016

2017






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WERNEUCHEN


Despite a slight loss of production, the energy data show the same positive trend as recent years, with the exception of waste production, which remained unaltered in 2017. It should however be noted that the discards are often counted in different ways depending on the type of plant or processing. In Verona, for example, the production residues are treated and are partially re-utilised as secondary raw materials, while in Werneuchen every discard is included in the waste count.

Activities and productionLike the Verona, Elne and Afanasovo plants, the one in Werneuchen is dedicated to the secondary fruit processing activities. It should be noted that Zuegg outfitted the factories that produce semi-finished products with the same lines and the same procedures in order to set a production benchmark, as well as to ensure the possibility of transferring the production activities whenever the need should arise. The control, traceability and maintenance systems have also been unified with those of the other Zuegg plants, with a view towards increasingly systematic integration.

Plant dataLocationWerneuchen, Barnim (Berlin), Brandenburg, Germany Year founded1991Industrial area465,000 m2

Production capacity24 hours, divided into 3 work shifts. 5 days out of 7 Resources and suppliesproprietary water well, medium-voltage power line and gas pipeline to the zone Disposallagooning wastewater treatment.

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2015

20162017

3.49

3.283.29

146.05

140.74140.62

20152016

2017

36.8934.60

36.6220152016

2017

7.35

19.687.91

201520162017

0.1650.160

0.159

20152016

2017






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ZÖRBIG


The remarkable and sudden production increase in 2017 failed to trigger an adequate optimisation of consumption levels and environmental performance. To prevent this in future, we started a project to link the processes in sales and production departments more closely.

Activities and productionThe plant is located in an area traditionally dedicated to the production of jams and marmalades. Since its acquisition by Zuegg in 2002, the products have been packaged under the Zuegg and “Original Zörbiger” brand names. There are three classic production sizes: standard size, such as the 320-330g Zuegg jam, size small, such as the 250g “100% fruit” line and, finally, the large 700g size.

Plant dataLocationZörbig, Schortewitz, Saxony-Anhalt, Germany Year founded1873 (part of Zuegg since 2002) Industrial area16,000 m2

Production capacity16 hours, divided into 2 work shifts. 5 days out of 7Resources and suppliesproprietary water well and medium-voltage power line in operation and production and gas pipeline to the zoneDisposalpublic sewer, public water treatment facility.

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2015

20162017

3.04

2.392.22

134.80

161.11165.49

20152016

2017

46.6847.00

44.6820152016

2017

26.88

22.6223.73

201520162017

0.1110.118

0.126

20152016

2017






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ELNE


This facility’s environmental and energy performance have shown an increasingly positive trend, which was further consolidated in 2017 following a slight decrease in production due to a significant reduction in requests from the European dairy sector.

Activities and productionThe plant in Elne deals exclusively with secondary-fruit processing. For this reason it has been outfitted with the same equipment and uses the same methodologies as the other Zuegg plants dedicated to this purpose: Verona, Werneuchen and Afanasovo.

Plant dataLocationElne, Perpignan, Languedoc Roussillon, France Year founded2002Industrial area47,000 m2

Production capacity24 hours, divided into 3 work shifts. 5 days out of 7Resources and suppliesproprietary aqueduct, medium-voltage power line, and gas pipeline to the area Disposalpublic sewer, treatment for the waters flowing into the agricultural zone.

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2015

20162017

5.12

4.253.52

176.17

161.14165.88

20152016

2017

29.1727.80

32.2520152016

2017

35.67

28.4830.89

201520162017

0.0970.088

0.087

20152016

2017






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AFANASOVO


Against the optimization process in 2016, the last year brought a decent loss in volume.This lead into less efficiency of the production lines, which reflected in the environmental data.Nonetheless also in Afanasovo the optimization is an ongoing process.

Activities and productionThe production type, the industrial lines, and the relative processes accurately reflect those of the plants in Verona, Elne and Werneuchen. In contrast, Afanasovo is a next-generation production centre, and is therefore capable of adopting all the innovative solutions necessary to ensure excellent efficiency, low consumption levels, and a minimal environmental impact. A model factory that has become an optimisation reference point for the whole Zuegg group.

Plant dataLocationAfanasovo, Kaluga Oblast (approximately 130 Km from Moscow), Russian Federation Year founded2010Industrial area60,000 m2

Production capacity24 hours, divided into 3 work shifts. 5 days out of 7Resources and supplies2 proprietary water wells, medium-voltage power line and gas pipeline to the zoneSmaltimentiinternal biological wastewater treatment plant.

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2015

20162017

5.77

5.005.64

227.87

228.12254.52

20152016

2017

55.7665.25

55.0520152016

2017

59.52

60.1868.54

201520162017

0.2790.108

0.119

20152016

2017






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THE ZUEGG STAFF

Our staff is our true business capital. Not a production line, a department, a management team, or an office, but all the people belonging to the great Zuegg family, who are fully aware of their own roles within the group. We believe in Zuegg, and Zuegg believes in us. Because Zuegg actively participates in our individual and collective well-being through the initiatives launched by the Human Resources department, not only at work, but also in our private lives, with a series of gestures, moments of joy and celebrations of anniversaries and special events, just like in any good family.

Certain examples include:

• Christmas dinner, which is not just a large gathering of all the Zuegg staff, but is also a veritable holiday to be enjoyed in complete freedom: the polar opposite of most other corporate gatherings, which are much too often formal and poorly tolerated;

• WELL-BEING programs dedicated to the staff, for monitoring the employees’ perceptions of their jobs and their satisfaction levels;

THE SOCIAL REPORT

WORK-LIFEBALANCE

• The numerous initiatives created to combine professional dedication with a higher quality of life, an essential condition for increasing motivation and team spirit, with positive repercussions on both a personal and family level as well;

• Training programs aimed at creating a unified “Zuegg culture” based on objectives of quality and efficiency, as well as personal growth;

• Plans dedicated to the insertion and assimilation of new recruits, which consist of orientation, evaluation, and assistance tools;

• I n t e r n s h i p p r o g r a m s , a fundamental tool for training young people and creating a pool of potential employees, implemented thanks to the continuous dialogue between the Human Resources department and universities, secondary schools and training organisations.

THE RIGHT BALANCE BETWEEN LEISURE AND WORK

For years now, the “Work-Life Balance” document has enshrined all the policies adopted by the group to harmonise the work-life ratio for Zuegg’s employees and collaborators. This declaration, which is designed to protect the workers and their rights, is fully supported by Human Resources, which offers complete assistance, advice, and information to all the employees regarding every administrative, fiscal and union-related aspect associated with the workplace and their private lives.

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CONSUMPTION, SUSTAINABILITY, AND INNOVATION

The post-industrial era has resulted in an entirely different business model with respect to the past: one in which the market, consumption, and profit increasing ideals are no longer the only levers of success. At Zuegg, a concrete awareness of the environment, and the desire to create a social community as “healthy” as its products, have become the basis for the group’s new management and behavioural revolution. A future in which to invest, is in the interest of everyone.

OUR SOCIAL RESPONSIBILITY

In October 2011, the European Commission redefined Corporate Social Responsibility as “ the responsibility of enterprises for their impacts on society.” This new approach led to a necessary discussion regarding the term “impact”, which, being interpreted in a broad and undefined manner, effectively increases the scope of responsibility to include all business activities that are actually “in contact” with the surrounding world, thus presupposing an almost automatic duty as a result of the direct responsibilities that are nevertheless generated. At Zuegg, social, environmental, and safety adaptations become direct assumptions of responsibility that involve all the group’s employees, and even extend to the suppliers, partners, and logistics providers. What ’s more, an increasing number have become involved in consolidating the image and reputation surrounding the brand itself.

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STAFF PROFILE

Job classificationOnce again in 2017, the new market scenarios did not prevent the hiring of new recruits, nor the refinement of the system for analysing individual skills and profiles. The group’s entire staff, which is relatively uniform in terms of commitment, age, professionalism, and availability, is managed in a progressive and balanced way, with a physiological and ef for tless generational changeover.

Age The employees ranging from 30 to 50 years of age constitute the bulk of the workforce. This age span generally represents the period in which commitment and dedication reach their maximum levels , thus confirming the overall vitality that characterises the Zuegg work environment.

Education level Year after year, the data have confirmed an increase in the number of employees and managers with tertiary education, thus fulfilling the requirements for staff with strategic and decision-making capabilities.

TOTAL

7

51

168

261

88

SENIOR MANAGERS

MIDDLE MANAGERS

CLERKS

WORKERS

TEMPS/INTERNS

71

322

182

UP TO 30 YEARS OLD

DA 30 TO 50 YEARS OLD

OVER 50 YEARS OLD

107

199

145

MANDATORY SCHOOLING

HIGH SCHOOL DIPLOMA

UNIVERSITY DEGREE

2017

EMPLOYEES

2017

ITALY

253

GERMANY

162

FRANCE

66

RUSSIA

94 575

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Equal opportunities After several consecutive years of growth, the “equal opportunity” index , which indicates the percentage of women employed by the company with respect to the total number of staff, has stabilised around the figures of the last two years. A physiological result that has not prevented the group from further incentivizing the employment of women, as clearly stated in the guidelines of our company policy.

Training The main training areas in which Zuegg invests are focused upon the fields of safety, business management, and management, as well as various special topics dedicated to the operating and service divisions.

Union dialogueRespect and constructive dialogue have always been the constants that distinguish Zuegg’s relationships with union representatives. Always characterised by an open and constructive attitude, inspired by greater cooperation and understanding. In this manner, Zuegg continues to maintain an excellent balance between social responsibility and its own development policies.

Incentive programsThe company’s remuneration system provides for “variable” amounts at all levels, based on the achievement of the company’s objectives. The variable salary, which was negotiated with the unions, applies to all the staff and is linked to the achievement of qualitative goals, which in turn are linked to specific indicators, such as productivity, efficiency, and volume or value objectives. For the senior managers, middle managers, and staff who hold positions of responsibility, there is a bonus system in place based on the measurement of individual performance.

1

20

107

50

17

SENIOR MANAGERS

MIDDLE MANAGERS

CLERKS

WORKERS

TEMPS/INTERNS

33,7TOTAL WORKFORCE/WOMEN (%)

6,734

14,897

SAFETY TRAINING

TRAINING

TOTAL HOURS

11.7hours

SAFETY TRAINING

25.9 hours

TRAINING

AVERAGE TRAINING PER EMPLOYEE

2017

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Thanks to a well-structured and continuously updated model, the entire group has been able to implement strict control policies on yields, safety protocols, and codes of conduct, thus empowering the departments to work with higher quality standards. This efficient organisation has resulted in benefits for all the stakeholders, including the partners, the employees, the creditors, and all the subjects with interest in the group’s development.

ORGANISATIONAL MODEL

B2B

STRATEGYSUPERVISION AGENCYCONCEPT DEVELOPMENT

B2CINDUSTRY

RESEARCH& DEVELOPMENT

ZUEGGBOARD

OPERATIVITYGENERAL MANAGERHUMAN RESOURCES

CUSTOMERSERVICE

FINANCIAL

BUYING

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ETHICS AND CONTROL Zuegg’s code of ethics, which can also be downloaded from the website, represents the “constitutional” framework for the moral and behavioural standards that govern every business decision, thus safeguarding the company’s fundamental values. However, the adoption of a code of ethics, combined with the organisational model, requires a special supervisory and control mechanism to guarantee their proper functionality. The Board of Directors has therefore appointed a corporate Supervisory Body (SB), which includes an external consultant and an internal group employee, in order to ensure that all the company’s activities are consistent with the model itself. In particular, the SB monitors: • the effectiveness and compliance

with the Model on the part of the employees, the corporate bodies, the consultants, and the business partners;

• the model’s effectiveness and suitability in relation to the company’s structure, as well as its actual ability to prevent crimes from being committed;

• opportunities to update the model based on any changes in the company’s conditions and/or the current regulations.

Particular attention has been dedicated to the flows of information to and from the SB, so that the same will be able to bring the results of its activities and any critical issues to the attention of the Board of Directors and of the Board of Statutory Auditors.

Any items to report can be sent to:

PREVENTION AND SAFETY AT THE WORKPLACE

Like with the issues relating to the respect and protection of the environment, all the workplace health and safety values aimed at safeguarding the health of the personnel have been disseminated so that they might be shared and standardised among all the group’s sites. The involvement of the workers has also proven to be fundamental, as they have responded in an extremely positive manner and have been proactive in reporting any dangerous situations and behaviour.

Analysis of the accident indexes

This analysis quantifies and examines any incidents that have taken place at the various plants, or rather any dangerous and unpredictable actions that have occurred at the workplace in a non-recurring fashion. In 2017, the total number of occupational accidents was the same as the previous year, while the severity index was slightly higher. This suggests that we should continue to further intensify all the accident prevention and safety training programs.

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17,18

1,94

NUMBER OF ACCIDENTS

FREQUENCY INDEX

SEVERITY INDEX

2017

SUPERVISORY BOARD

C/O ZUEGG S.P.A.VIA FRANCIA 6 . 37135 VERONA

[email protected]

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INFORMATIONAND COMMUNICATION

Zuegg Group communicates its products and values using direct and contemporary language, with the aim of conveying honesty, respect for nature, and a sense of ethics. The marketing department is in charge of any communications to the general public (press, TV, packaging, PR, sponsorship, web and social media), as well as any communications concerning the products and intended for the internal stakeholders (GDO sector promotions, Ho.Re.Ca, and internal communications).

The creation of Skipper’s social media profiles

As of this year, Zuegg’s more youthful personality, Skipper, has established a social media presence with its own profiles on Facebook and Instagram, which are united by a common strategy of profound customer awareness, in which sharing and lifestyles serve as the watchwords. WHAT ARE YOU WAITING FOR? FOLLOW SKIPPER ZUEGG TOO, AND KEEP UP TO DATE ON ALL THE BRAND’S LATEST NEWS.

Zuegg JAM Session

Zuegg’s first and only online jam talent show was held from August to December: a new and original initiative designed to pique the imaginations of those who follow us on the web as well. In order to participate, each user simply had to register with the jamsession.zuegg.it website, and upload their “jam session” consisting of Zuegg jam products: a photo or video to be shared online expressing their own creativity in terms of goodness and flavour. The uploaded posts were evaluated by a “strict” judge interpreted by

The fans of ZUEGG and SKIPPER!

In December 2017, the Zuegg Italy Facebook page reached a total of 65,000 fans, while the newly-created Skipper_Zuegg page reached a total of 10,000. Zuegg and Skipper are continuing to gain followers as a result of the company’s online communication activities and thanks to your help. KEEP IT UP, AND INVITE ALL YOUR FRIENDS TO LIKE THE ZUEGG

PAGE AND SHARE YOUR SOCIAL CONTENT WITH THE

#ZUEGGITALIA and #SKIPPER _ ZUEGG.

hiips://www.instagram.com/skipper_zuegg/

hiips://www.facebook.com/ZueggSkipper/

an extraordinary character: the legendary Elio! The prize? Being chosen by such a picky judge, and the possibility of becoming the winner of winners in December. A large number of users decided to participate, by following Zuegg and Elio in his hilarious tutorial, and by sharing their creations and applauding those deemed most original!During this event, the Zuegg website reinforced its position on the digital landscape with a total of 9.5 million users, and became a true platform for fun and user engagement.

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As of March, Zuegg has been on the airwaves with its new 45 second feature film. An advertising spot with a cinematic feel designed to make the viewer experience first hand the difficulties and the work necessary to obtain the very best fruit, narrated by Dr. Zuegg himself, who recounts a personal story made up of men and

orchards. He takes us on a journey through his very own orchards, complete with the seasons, and their climatic changes, but without ever revealing his face. Because like he says: “My face doesn’t count for anything... what counts is the fruit!” Ambition, vision, determination, and commitment, because the only thing that matters for Zuegg is what we put

ZUEGG RETURNS TO TV WITH A NEW ADVERTISING SPOT: “THE ORCHARDS OF OSWALD ZUEGG”

into our products, and their origins. There are also two other 15-second spots and two 7-second clips, which are mainly focused upon the recipes and the fruit: from the harvest up until its preparation and processing, which, thanks to Zuegg’s knowledge and dedication, give rise to a unique product.

THE ORCHARDSOF OSWALD ZUEGG

ON TV

ruffobros.it

zuegg.com

Zuegg’s respect for nature supports the creation of tools

with a low environmental impact.Just like this document,

printed in Verona on paper made frompure and recycled, FSC®

- Forest Stewardship Council® -wood pulp from forests managed in an

environmentally-friendly, socially responsible, and economically viable manner.

SOCIAL AND ENVIRONMENTAL REPORT 2017 · and tas,Zue g“B ioC em ”w h c ert ﬁ do gan f uit an s...

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