unilever and tea sustainability · unilever and tea sustainability this presentation may contain...

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1 Unilever and Unilever and tea sustainability tea sustainability This presentation may contain forward-looking statements, including 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995. Words such as 'expects', 'anticipates', 'intends' or the negative of these terms and other similar expressions of future performance or results, including financial objectives to 2010, and their negatives are intended to identify such forward-looking statements. These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Group. They are not historical facts, nor are they guarantees of future performance. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including, among others, competitive pricing and activities, consumption levels, costs, the ability to maintain and manage key customer relationships and supply chain sources, currency values, interest rates, the ability to integrate acquisitions and complete planned divestitures, physical risks, environmental risks, the ability to manage regulatory, tax and legal matters and resolve pending matters within current estimates, legislative, fiscal and regulatory developments, political, economic and social conditions in the geographic markets where the Group operates and new or changed priorities of the Boards. Further details of potential risks and uncertainties affecting the Group are described in the Group's filings with the London Stock Exchange, Euronext Amsterdam and the US Securities and Exchange Commission, including the Annual Report & Accounts on Form 20-F. These forward-looking statements speak only as of the date of this presentation Michiel Leijnse, Global Brand Development Manager Lipton Michiel Leijnse, Global Brand Development Manager Lipton The World of Tea Black Tea: 2.35 million tons Green Tea: 0.95 million tons Production areas Critical to Lipton Brands 2. China 750k (90% Green) Global Production 2004 +/- 3.3 million tons 1. India 860k 3. Sri Lanka 300k 4. Kenya 290k 5. Indonesia 120k

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Page 1: Unilever and tea sustainability · Unilever and tea sustainability This presentation may contain forward-looking statements, including 'forward-looking statements' within the meaning

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Unilever andUnilever andtea sustainabilitytea sustainability

This presentation may contain forward-looking statements, including 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995. Words such as 'expects', 'anticipates', 'intends' or the negative of these terms and other similar expressions of future performance or results, including financial objectives to 2010, and their negatives are intended to identify such forward-looking statements. These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Group. They are not historical facts, nor are they guarantees of future performance. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including, among others, competitive pricing and activities, consumption levels, costs, the ability to maintain and manage key customer relationships and supply chain sources, currency values, interest rates, the ability to integrate acquisitions and complete planned divestitures, physical risks, environmental risks, the ability to manage regulatory, tax and legal matters and resolve pending matters within current estimates, legislative, fiscal and regulatory developments, political, economic and social conditions in the geographic markets where the Group operates and new or changed priorities of the Boards. Further details of potential risks and uncertainties affecting the Group are described in the Group's filings with the London Stock Exchange, Euronext Amsterdam and the US Securities and Exchange Commission, including the Annual Report & Accounts on Form 20-F. These forward-looking statements speak only as of the date of this presentation

Michiel Leijnse, Global Brand Development Manager LiptonMichiel Leijnse, Global Brand Development Manager Lipton

The World of Tea

Black Tea:

2.35 million tons

Green Tea:

0.95 million tons

Production areas Critical to Lipton Brands

2. China 750k (90% Green)

Global Production 2004 +/- 3.3 million tons

1. India 860k

3. Sri Lanka 300k

4. Kenya 290k

5. Indonesia 120k

Page 2: Unilever and tea sustainability · Unilever and tea sustainability This presentation may contain forward-looking statements, including 'forward-looking statements' within the meaning

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Structural problems in the tea industryIn real terms, prices have gone down

by about 35% in the past 25 years

60% of consumers* say they take social and environmental factors into account when

choosing what brand to buy

* Source: Globescan/MORI based on 25,000 people in 23 countries

Page 3: Unilever and tea sustainability · Unilever and tea sustainability This presentation may contain forward-looking statements, including 'forward-looking statements' within the meaning

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10 years of working towards

sustainability on our own

estates

25.000 People25.000 People100.000 Dependants100.000 Dependants

Free HousingFree HousingSchools, HospitalSchools, Hospital

>600.000 trees planted>600.000 trees planted

97% 97% Renewable energyRenewable energy

Page 4: Unilever and tea sustainability · Unilever and tea sustainability This presentation may contain forward-looking statements, including 'forward-looking statements' within the meaning

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We need certification to

1. Roll out to entire Supply Chain

2. Credibly share story with consumers

Why the Rainforest Alliance?

Page 5: Unilever and tea sustainability · Unilever and tea sustainability This presentation may contain forward-looking statements, including 'forward-looking statements' within the meaning

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The standards comprise the following 10 broad principles:

• Every Principle is broken down into a number of criteria, ca 200 in total. • A complete overview of the standards and criteria can be found at http://www.rainforest-alliance.org/programs/agriculture/certified-crops/documents/standards_indicators_2005.pdf

We are committed to sourcing all our tea sustainably

• All our tea used in PG Tips and Lipton Yellow Label tea bags in Western Europe certified by the Rainforest Alliance by 2010

• Extend Rainforest Alliance certification to all Lipton tea bags globally by 2015

Page 6: Unilever and tea sustainability · Unilever and tea sustainability This presentation may contain forward-looking statements, including 'forward-looking statements' within the meaning

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Roll out across Supply Chain

Biggest Challenge remains Smallholders

• Kenya Pilot Q3 08

• But smallholders not always most vulnerable

Page 7: Unilever and tea sustainability · Unilever and tea sustainability This presentation may contain forward-looking statements, including 'forward-looking statements' within the meaning

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Complete Communication Programme

Advertorials

Web

PACK

Print

Complete Communication Programme

Media+ KOF trips

Digital

Page 8: Unilever and tea sustainability · Unilever and tea sustainability This presentation may contain forward-looking statements, including 'forward-looking statements' within the meaning

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3 consecutive press ads illustrating the 3 RA pillars

YOUR SMALL CUP CAN HELP BUILD SCHOOLS.

Lipton Yellow Label is working with the Rainforest Alliance, an independent environmental organization, to improve the living conditions of farmers and their families. In our own Lipton Tea Gardens in Kericho, Kenya, we offer free schools for the families of our 18 000 tea pluckers.

Already more than 50% of our tea comes from Rainforest Alliance Certified™ plantations. We aim to reach full certification by 2010. To find out more, visit www.liptonforthefuture.com or www.rainforest-alliance.org

Rainforest Alliance certified

packs

TV announcement “Take a sip”

National press, radio and PR

Short movie to inform and entertain

And for PG Tips-UK

THE CAMPAIGN IDEATHE CAMPAIGN IDEATHE CAMPAIGN IDEATHE CAMPAIGN IDEA

2nd phase TV “Senor Al”

Promo packs

Page 9: Unilever and tea sustainability · Unilever and tea sustainability This presentation may contain forward-looking statements, including 'forward-looking statements' within the meaning

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Our Vision• Lead change in the tea industry• Improve the lives of up to two million people• Show how Rainforest Alliance certification

means that every cup of our tea is a step towards a better life for tea farmers, their families and the environment

• Reinforce the bond between consumers and our brands

Questions ?www.liptonforthefuture.com