Responsible Sourcing 2015

The best suppliers and a careful management of the supply chain, to offer the best products to our consumers

Supply chain management is a significant focus for ensuring the sustainability of the Company’s activities as it has an impact both upstream – on workers, the community and the ecosystem in which suppliers operate – and downstream on the quality of products offered to consumers.

Gruppo Campari’s responsible approach to business is therefore shown in the commitment it makes to managing the impact of its supply chain. To meet the challenge of ensuring a sustainable and secure supply chain in the long term, the Group has a continuing commitment to managing and optimising the process at a global level so that it can create value for local economies.

The Global Procurement department manages 1,216 suppliers. Based in the five main geographical regions (Italy, Europe, North America, South America, APAC), they provide the raw materials and expertise that ensure the success of the Group’s brands. Gruppo Campari has its own Supplier Code (issued in 2012), whose objectives include sharing the sustainability and ethical principles adopted by the Group. The Code has been shared with the various suppliers that the Group uses and, in 2015, was subscribed to by 88% of the suppliers of raw materials, packaging and POS materials operating in the five geographical areas, mentioned above, in which the supply chain is managed. This is a significant increase on the figure for 2014 (based on the same geographical perimeter, 72% of the suppliers involved had subscribed to the Code), although slightly lower than the stated objective of 90% for 2015. In addition, the Group invites subscribers to the Supplier Code to complete a self-assessment form that asks for evidence of their compliance with the sustainability parameters adopted by the Group.

An example of the supply chain’s 360-degree focus on sustainability was provided by Mexico, a country with a tradition of growing agave plants, from which tequila is made. Campari revolutionised its supply chain in Mexico, terminating relationships with its traditional suppliers and signing contracts with seven local agave growers, with a view to building loyalty in the medium term. This procurement model, which is adapted to Campari’s needs and strategies, meets its requirements by estimating volumes based on market forecasts rather than take and pay. The agreement sets purchase prices for raw materials that are slightly above the market average, with greater stability in the volumes requested; in return, farmers undertake to guarantee product quality and faster delivery times. The medium - to long-term relationship created by this agreement enables the Group to schedule technical and financial support for the farmers, ensuring benefits and improvements that create value for the company, the suppliers and, indirectly, for the local community.

 

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Last updated May 18 2017