Duchy Originals Sustainable Journey

Tim Appleton

“Ten years ago I started a company called Duchy Originals. I wanted to demonstrate that it was possible to produce food of the highest quality, working in harmony with the environment and nature, using the best ingredients and adding value through expert production.

I also wanted to engender increasing funds for my Charitable Foundation, which receives all of the profits through which I can then support an increasing number of worthwhile projects.” HRH The Prince of Wales commenting on the establishment of Duchy Originals in 2002

Duchy Originals historyDuchy Originals history• Established by HRH The Prince of Wales in 1990.

• Organic Pioneer - ‘Shop soiled Royal’.

• Sourcing Oats from the Home Farm at Highgrove.

• Oaten biscuit launched the brand in 1992 – 18 months to get the right recipe.

• Baked by Walkers Shortbread in Scotland – the first Producer Company.

• To support sustainable farming and food production.

• Production of a premium range natural and healthy food and drink.

• Sound husbandry - protect and sustain the countryside and wildlife.

• Support for UK farmers and manufacturers.

• Generate funds for The Prince of Wales’s charities.

• ‘Virtuous Circle’.

Duchy Originals AimsDuchy Originals Aims

Charitable DonationsCharitable Donations

• £1 million profit donated for three consecutive years.

• Nearly £8 million has been donated to The Princes Charities Foundation.

• Supported a variety of worthwhile causes over the past five years.

• £400K donated to farmers affected by Foot & Mouth, Soil Association, HDRA, Affordable Rural Housing.

Where have we got to?Where have we got to?

• One of the UK’s largest Organic and Free Range food brands.

• Nearly 300 SKU’s from biscuits to bacon to body care.

• 35 producers throughout the UK, primarily SME’s.

• First factory opened in Cornwall in 2006 to produce pastry products.

• Currently sold through all of the majors, independent retailers and ten key export markets.

2005

• Started a programme of Sustainable Development for both the Head Office and the Producer companies.

• Needed help and advice and set up Sustainability Advisory Board.

• Creating through our Producers, a unique network of businesses primarily SME’s leading the way in Sustainable Development.

What is Sustainable What is Sustainable DevelopmentDevelopment?

Common Futures, Brundtland report. 1987

"Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

It contains within it two key concepts:the concept of needs, in particular the essential needs of the world's poor, to which overriding priority should be given;

andthe idea of limitations imposed by the state of technology and social organization on the environment's ability to meet present and future needs.“

What is Sustainable What is Sustainable Development?Development?

“If it isn’t sustainable then it is unsustainable.”

Sustainable Development is simultaneous development in three pillars all at the same time.

Economy

Environment

Society

Not as a result of trade offs between one or more pillars.

Producers are primarily SME’s

• Unique problems• Lack of time.• Lack of expertise.

Provide the producer an understanding of the concept of SDIdentify their quick wins to start their sustainable programmes.Provide links to sustainability information and relevant website

sites.Enable

Develop producer networks.Engage

Visit regularly. Provide

newsletters.

Identify current sustainable actions. EncourageShow cost benefits of sustainability.

ExemplifyDuchy Originals to lead by example.

CatalysesSustainable Action

The 4e diamond approach

The QuestionnaireThe Questionnaire

1. Resource Use: Energy, electricity, gas, bio-fuels, renewables, recyclables.

2. Efficiency of use of the resources: How much waste, noxious emissions, encourage bio-diversity.

3. Social Impact: Health and safety, community involvement, employee development, life long learning.

4. Economic Impact: Job creation, decision making based on SD impact, support of the local economy.

5. Company Governance: Stakeholder communication, responsibility, product selection, annual report,

mission statement.

ProgressProgress

• One of the first initiatives was to establish what our own Carbon and Ecological Foot print of Duchy Originals Head Office. – Working with an organisation called Best Foot Forward we found

that Car travel makes up 60% of our Ecological footprint and 61% of our CO2 emissions.

• WRAP, Waste and Resources Action Programme.– Biscuit Box project, Glass lightning project.– Signatory’s to the Courtauld Commitment. – Minimisation of packaging to become best in class.

ProgressProgress

• Started BS8555 at DOL factory in Launceston.

• Producer conferences held in 2007 and 2008.

• Travel Policy introduced.

• Continued advice from the SAB, avoid on-pack Carbon Labelling in particular.

• Started Life Cycle Analysis of Four Key products.

• SAB insistent that we must have a mission statement

Consumer segmentation

Foodie Activist

Activist segments

ProvenancePurists

SustainabilityPragmatists

Animal Welfare

Campaigners

TASTES GOOD

IS GOOD DOES GOOD

Going beyond Organic

Tastes Good...

Best natural and organic ingredients

Only free range animals

Made with care

Is Good...

No artificial fertilisers or pesticides

Does good...

Preserving wildlife and landscapes

Supporting charities

Good Food Charter

Minimising environmental footprint

Localsourcing

Lesspackaging

Treating people fairly

Communicating sustainability

Profits to charity

Provenance stories

Good Food Charter

FSC board

Go to web for info

Profits to charity

Challenges we’ve faced

• The retailers generally want only one premium offering.

• They are not promoting Organic which is viewed as expensive and hasn’t been helped with the recent FSA nutritional survey.

• Promotion of specific alternatives as opposed to Organic with Fairtrade and Freedom foods.

• Dealing with the attitude that Organic is a single interest subject in a complex market.

Going forward

• Businesses who've taken sustainability on board agree that sustainability issues are key business issues.

• Sustainability actions really do mean efficiencies, savings and new opportunities.

• Values still matter, internally and for consumers.

• The recession may deliver short-term losses, but in the long term we still need to grapple with the big issues, and unlimited growth will not deliver sustainability.

 

A quote from the Forum for the Future publication

Are you a leader business?

“A sustainable business is the end goal and sustainable development is the process by

which we get there.”

Thank you.