AmBev Citizenship Report 06

A report on AmBev’s Social,
Economic and Environmental performance
AmBev’s Key
Performance Indicators
About AmBev
4
5
Vision and Strategy 11
Economic Performance
and Corporate Governance
Environment 21
People and Community 29
Our Products
GRI Index 41
37
15
Welcome
The century-long tradition of the companies that formed
AmBev is a testimony to our Company’s contribution to the
economic growth and the sustainable development of the
societies of which we are part.
This Sustainability Report highlights the economic, environmental and social
values that AmBev generates, and shows our concern on making today’s
decisions with the eyes on the future.
In 2006, the Company’s net revenues and EBITDA rose 10.4% and 18.1%
respectively, delivering an EBITDA of R$ 7.4 billion and 42.3% of margin.
We worked hard towards the reduction of our environmental impact. We further
reduced our relative consumption of energy and recycled 98.1% of our
by-products. We continuously invest on our People, our most important asset.
Over the past 10 years, AmBev University has invested more than R$ 120 million
in the training and development of our talents. Similarly, we have continued to
promote actions defending the responsible consumption of our products. Every
day we strive to improve our relationship with the communities in which we
take part and with society in general.
As a result of our work, in 2006 we were chosen a model company by Exame
magazine’s Guide to Good Corporate Citizenship, whose objective is to
disseminate and stimulate the best corporate responsibility practices. The
Company earned the award for promoting responsible drinking and for using
eco-efficiency indicators. In Peru, the National Environmental Council (CONAM),
with the support of the World Bank, acknowledged our local unit as outstanding
for its implementation of eco-efficient projects. We won the Client Service
Excellence Award, from the beverages category, awarded by Consumidor
Moderno magazine, among other honors and distinctions.
I am hereby proud to present this AmBev Sustainability Report; the result of a
team effort! Nevertheless, we are never completely satisfied and what we have
yet to accomplish has already been transformed into future challenges and
goals.
We trust that in the next years we will continue communicating even greater
results.
Luiz Fernando Edmond
Zone President Latin America
3
AmBev’s Key Performance Indicators
KPI
2006
2005
Notes
Volume of Sales (hectoliters (000 hl))
134,366
125,313
AmBev’s volume of sales increased 7.2%.
Revenue
R$ 17,614 million
R$ 15,959 million
AmBev’s net revenue increased 10.4%.
EBITDA
R$ 7,444 million
R$ 6,305 million
EBITDA margin raised from 39.5% to 42.3%.
Material recycling and by production
(% recycling and reuse)
98.1%
96.75%
Over the past five years, the increase in
reutilization has represented a 60 % reduction of
solids disposed of as waste.
By-Products Revenue
R$ 59.3 million
R$ 50.9 million *
Energy use (Gigajoules per hectoliter
production (Gj/hl))
107.8
109.12
In 2002, this index was 123.18.
Water use (Hectoliters of water use per
hectoliter production (hl/hl))
4.30
4.21
One of AmBev’s brewery reached 3.49.
Greenhouse gas emissions
(kg carbon dioxide emissions per
hectoliter production (kg CO2/hl))
6.62
6.85 *
AmBev has projects for diversifying its energy
matrix using renewable sources and reducing the
use of fossil fuels that, coupled with the initiatives
for reducing consumption, also are designed to
minimize the emission of greenhouse gases.
Number of employees
35,090
28,567**
Number of employees and distributors
trained
5,700
3,100
Hours of training for employees and
distributors
35,000
10,200
Economic
Environmental
4
People
* Brazil only.
The “AmBev University” promotes education
and training to its employees and its distributors’
employees
About Ambev 5
1885
Our Brazilian origins
date back to 1885.
About AmBev
About AmBev
Introduction
Present in 14 countries of the Americas
AmBev is the largest private company of consumer goods in Brazil,
and Latin America’s largest brewer. It has operations in 14 countries
of the three Americas and is a part of the biggest worldwide
platform for the production and sale of beer, as a result of the global
operation signed with Interbrew (today InBev) in 2004. Its results
have been mounting, with solid improvements in profits and cash
generation based upon management practices that ensure the
efficiency and sustainability of the Company’s businesses.
6
Although it is a relatively young Company, created in 1999, it has
over a century of experience from Brahma and Antarctica breweries,
which merged to grow and expand their frontiers of operation. The
Company has also been active in Canada since 2004, where it
acquired control of the Labatt brewing company. The InBev
partnership has allowed us to take the Brahma brand to over 30
countries in the world. And in 2006, the Company concluded the
control of Quinsa, which has operations in the South American
Southern Cone region, a deal initiated in 2002 when AmBev first
took an ownership stake in the company.
AmBev has Brazil’s largest portfolio of beverages, holding winning
brands in the segments of beer (such as Skol, Brahma, Antarctica
and Bohemia) and soft drinks (notably Guaraná Antarctica,
produced from a fruit grown in the Amazon Region, Pepsi-Cola and
H2OH!), as well as the Gatorade isotonic beverage and Fratelli Vita
water. It is also a market leader in Argentina with Quilmes Cristal, in
Bolivia (Paceña), in Paraguay (Brahma) and Uruguay (Patricia). In
2006, 30.8% of our EBITDA was obtained through the Hispanic Latin
American (HILA) and North American operations.
6
About AmBev
History
On October 9, 2000, following this alliance, AmBev entered into a new
franchise agreement with PepsiCo which terminated the Brahma
franchise agreement and granted the Company the sole bottler and
distributor rights for Pepsi soft drink products in Brazil.
Brahma,1908. Rio de Janeiro.
AmBev’s Brazilian origins date back to 1885, when the first Antarctica
factory plant was built in São Paulo’s district of Água Branca. After a
period producing ice and food, the plant started brewing beer, thus
marking the beginning of a rapid entry into the beer market. This was
solidified over the years by numerous acquisitions, including
‘Cervejaria Bavária’ in 1904 and ‘Cervejaria Bohemia’ (the oldest
brewer in Brazil) in 1961.
Brahma was first brewed in Brazil in 1888, when Swiss brew master
Joseph Villiger established the brewery Manufatura de Cerveja
Brahma Villiger & Companhia in Rio de Janeiro. The plant started
with a daily production of 12,000 liters of beer and 32 employees. By
1934, bottled Brahma beer had become Brazil’s most popular beer
with 30 million liters produced per year.
Brahma, 1932. Marquês de Sapucaí, Rio de Janeiro.
In 2002, AmBev expanded its partnership with PepsiCo to include the
production, sales and distribution of Gatorade. On January 31, 2003,
AmBev completed a business combination with Quinsa, through
which AmBev acquired a 40.5% initial economic interest in Quinsa
and established a leading presence in the beer markets of Argentina,
Bolivia, Paraguay, Chile and Uruguay.
In 2004, due to the acquisition of the Canadian brewery Labatt, AmBev
consolidated its position as a genuine American beverage company,
with operations in the three regions of the hemisphere extending from
Patagonia to Alaska.
On August 2006, AmBev announced the closure of the transaction
with Beverages Associates Corp. (“BAC”) on which BAC agreed to sell
all of its remaining shares in Quinsa to AmBev, increasing to
approximately 91% of its total share capital.
Cia. Antarctica Paulista, 1928. São Paulo.
Brahma’s corporate growth continued through the years through
acquisitions, such as of ‘Astra S.A.’ (1971), ‘Cervejarias Reunidas Skol
Caracu S.A’ (1981), as well as with a number of strong production and
distribution alliances. In 1997, Brahma acquired Pepsi-Cola
Engarrafadora Ltda. and PCE Bebidas Ltda., PepsiCo bottlers in the
south and southeast of Brazil, at the same time acquiring the
exclusive rights to produce, sell and distribute Pepsi soft drinks in the
northeast of Brazil. In 1999, Companhia de Bebidas das Américas
(AmBev) was formed by the merger of Brahma and Antarctica.
Cia Antarctica Paulista, 1954. São Paulo.
7
About Ambev
Organization & Structure
For information on this section, please refer to AmBev’s Annual
Report or website.
Guide to Brands
A large and diversified portfolio, supported by permanent innovation,
allows AmBev to offer products for different consumer profiles and
consumption occasions. It has beers, soft drinks, ready-to-drink teas and
mineral water to satisfy all preferences. The Company also invests on
the continuous development of its brands through creative and
intriguing campaigns, striving to keep them always fresh in the minds
of consumers. AmBev seeks consistent growth through positions that
reinforce its ties with consumers and strengthen the value of its brands.
8
Three of the Company’s beers are market leaders in Brazil and figure
among the world’s best-selling brands: Skol, in third place; Brahma,
in fifth; and Antarctica, which is 20th. Quilmes is Argentina’s
most-consumed beer and Labatt Blue is the Canadian beer with
the greatest international penetration. Moreover, AmBev owns the
Guaraná Antarctica soft drink, a refreshing and light beverage
produced from an Amazonian fruit. With its unique flavor, this
beverage has won a place among the most consumed soft drinks in
the world. By category, AmBev’s main brands are:
Beers
Skol – Brazil’s market leader, a light beer identified with a young
adult public, that has innovation as one of its main features. It was
the first beer in the country to be packaged in a can, it also launched
the long neck concept and introduced many new ideas during 2006,
such as Skol Geladona (a package that keeps the liquid at a cold
temperature for a longer period of time) and Skol Lemon,
inaugurating a beer category containing fruit components.
Brahma – A brand that recalls the gathering of friends, identified
with Carnival, it has been produced since 1888. Besides Brazil, it is
also present in Paraguay as the main brand in that country, besides
being in more than 30 countries in the Americas and Europe. In 2006,
it was produced in a special version for the football World Cup,
known as Brahma Bier, based on the German helles beer recipe, and
also innovating with Chopp Brahma Black, a draft keg beer that is
extra creamy and cascading when poured into a glass.
Antarctica – A classic pilsen beer, produced since 1885. It combines
tradition and quality, being notable for its aroma, taste and slight
bitterness. It consolidated its position in the Brazilian market through
the BOA Club (Official Antarctica Drinkers Club), which has a large
number of participants.
Bohemia – Brazil’s first beer, produced since 1853. It is the leader of
the premium segment. Besides being produced in the pilsen type, it
has the wheat (Bohemia Weiss), the schwarzbier (Bohemia Escura)
and the abbey (Bohemia Confraria) versions.
Original – A beverage with a pronounced flavor, sold in the premium
segment. Created in 1906, its formula has been maintained until
today along with the original monolucid paper label. It is produced in
small quantities, intended for people who appreciate and value a
traditional tasting, superior quality beer.
Serramalte and Polar – Brands distributed mainly in the south of
Brazil. These are beers with smooth aromas, flavors and a slightly
bitter taste that have conquered loyal consumers in regional markets.
Líber and Kronenbier – Non-alcoholic beers allow the increase of
consumption occasions. Liber is produced through technology that is
new to Latin America, which includes the use of a special equipment
that fully extracts alcohol from the beverage.
Caracu – A black beer of the stout type which was originated in
Ireland. It has been produced since 1899 and is known for its
full-bodied taste and energy. Because it is not filtered, it is more
nutritious and contains yeast and proteins.
Quilmes – Argentina’s best-selling beer, produced in more than 15
versions, including the particularly notable Quilmes Cristal. Launched
in 1888, the brand name honors the location’s old indigenous name
where the brewery was built.
Pilsen and Patrícia – Benchmark beers in the Uruguayan market.
They are full-bodied, strong and have a slightly bitter flavor.
Brahva – Sold in Central American countries, it maintains the same
flavor, shine, transparency and purity of Brahma. The brand name was
decided on after consumer market surveys in the region.
Labatt Blue – The best-selling Canadian beer in the world. Launched
in 1951 with Labatt Pilsener, it was baptized as “Blue” by fans of the
Winnipeg Blue Bombers football team.
Kokanee – A brand with a strong presence in British Columbia
(Canada). It is produced in the Kootenays Mountains. With a mixture
of Pacific Northwest hops, Kokanee delivers a smooth,
clean and lightly hopped taste.
Alexander Keith’s – The most popular beer in Nova Scotia (Canada).
It uses balanced North American flavor and bittering hops to create a
unique malty flavor. Keith’s is smooth, has a slightly floral hop
character with a sweet flavor delivery.
Stella Artois – An InBev international brand, a superpremium beer
first created in Belgium in 1366, and also produced in Brazil and
Argentina. It is made with the highest quality of ingredients, and it
has a balanced and strong taste.
8
About AmBev
Soft Drinks
Teas
Guaraná Antarctica – The second best selling soft drink in Brazil,
with the unique flavor of the guaraná fruit that is grown in the
Amazon Region.
Pepsi-Cola – AmBev the second largest PepsiCo bottler in the world.
It produces and distributes soft drinks in a number of companies in
Latin America and the Caribbean, with a product line that includes
the traditional Pepsi-Cola, Pepsi-Twist, with its cola and lemon
taste, Pepsi X, the first energetic soft drink in the world, and Pepsi
Max, with maximum taste and no sugar.
H2OH ! – Launched in Brazil in 2006, the beverage was already a
success in Argentina. It has a light taste of lemon, is slightly
carbonated and contains no sugar. It was developed in partnership
with PepsiCo. AmBev also produces Sukita, an orange flavored soft
drink, Soda Limonada and Tônica Antarctica.
Lipton Iced Tea – The world leader in the Ready-to-drink tea
segment, produced under franchise license in Brazil.
Isotonics
Water
Fratelli Vita – Lightness is one of its main qualities, due to the low
level of dissolved salts.
Competitive advantages in costs
and services
Distribution is one of the beverage business’ most complex aspects.
AmBev services approximately 2 million points of purchase in Latin
America. To be able to do this, it combines direct and outsourced
distribution, through exclusive retailers, comprising a multi-brand
network that ensures deep market penetration and competitive
advantages in costs and services.
Gatorade – The best selling isotonic sports beverage in the world,
produced also as part of the alliance with PepsiCo.
9
About this Report
Reporting Period, Boundaries and Basis
Key External Relationships
About this Report
The Reporting Period, Boundaries and Basis of The Report concentrate
on the calendar years of 2005 and 2006, with some references to
information or data from 2004, when it is available and deemed
relevant. This Report covers most of AmBev’s units in the following
countries: Argentina, Bolivia, Brazil, Canada, Chile, Ecuador, El Salvador,
Guatemala, Nicaragua, Paraguay, Peru, Dominican Republic, Uruguay,
and Venezuela. The Company still does not have consolidated
information about all countries, especially concerning environmental
and social indicators. When this is the case, there will be a comment to
specify regions that are being included.
AmBev maintains a number of key external relationships which help
guide its activities in a more sustainable manner. Below is a brief
description of these :
Special considerations apply for the reporting of the Company’s
environment data. This Report has consolidated information about
AmBev’s plants in the following countries: Argentina, Brazil, Ecuador,
Guatemala, Peru, Dominican Republic, Uruguay and Venezuela.
ABIR – The Brazilian Association of Soft Drink and Non-Alcoholic
Beverages Manufacturers is an entity that
represents manufacturers of soft drinks,
bottled water, juices, teas, and sport drinks.
ADAN – The Association for the Defense of the Environment and Nature
is a non-profit non-governmental organization that works to improve
communities’ quality of life through the proper destination of solid
residues in Venezuela.
ADOFACE – The Dominican Republic Association of Beer Producers.
ASBEGA – The Peruvian Association of Soft Drink Producers.
Global Reporting Initiative
This Report is partially in accordance with the 2002 Global Reporting
Initiative (GRI) Guidelines for Sustainability Reporting. It follows as
closely as possible the GRI guidelines, with a main focus on its core
performance indicators. Our next report will follow the newly
updated G3 version of the GRI guidelines.
CAPEBRAS – Chamber of Commerce and Integration between Peru-Brazil.
CAVENBRA – Chamber of Commerce and Industry between VenezuelaBrazil.
About AmBev
CAVEFACE – The Venezuelan Chamber of Beer Producers.
CEBDS – The Brazilian Business Council for
Sustainable Development, founded in 1997,
it integrates the Regional network at the World Business Council for
Sustainable Development. It is a coalition of enterprises that aim at
integrating the principles and practices of sustainable development to
their businesses.
CEMPRE – The Brazilian Business Commitment for
Recycling is a non-profit association dedicated to the
promotion of recycling within the scope of integrated
waste management. Established in 1992, Cempre is maintained by
private companies from various sectors. AmBev is one of its founding
companies.
Cerveceros Latinoamericanos – This Association
represents the interests of the Latin American
brewers and facilitates an effective channel of
communication between this region’s companies.
10
CISA – The Information Center on Health and
Alcohol (CISA) is a non-profit non-governmental
organization (NGO) whose main purpose is to
generate a source of information on health and alcohol. The Center has
a database of information from nationally and internationally
renowned publications, official data and information published in
general interest newspapers and magazines.
ETCO – The Brazilian Institute for Ethics in Competition is a non-profit
organization of enterprises and non-governmental entities. Its goal is
to set ethical parameters for competition and to stimulate effective
actions against tax evasion, product falsification and contraband.
Guatemala Industry Chamber
Guayaquil Industry Chamber in Ecuador
Recicloteca – Founded in 1991 by Ecomarapendi (a
non-governmental organization) and sponsored by
AmBev since 1993, Recicloteca is highly renowned
and it is the largest Information Center on
Recycling and Environment in Latin America. In
2006, the Brazilian Ministry of the Environment awarded it with the
“Green Room Title”, which is granted to institutions that contribute to
public access to materials and publications about the environment.
Sindicerv – The Brazilian National Union of
Brewing Companies defends and represents
the beer industry associates before federal,
state and city governments and the civil society.
SNI – The Peruvian National Industry Society.
Validation
Financial data has been taken directly from our 2005 and 2006
Annual Reports which were subject to independent auditing.
External report validation for AmBev’s Citizenship Report has not
been carried out. However, in future reports, this will be considered.
Acknowledgment
“AmBev’s 2006 Citizenship Report is the result of the hard work of many
people. We would like to be thankful to all those from AmBev, and from
the agencies Sd3 and Walking Men. Without great efforts from all of
you this report would not be so complete and relevant.”
Luiz Eduardo Osorio
Head of Corporate Social Responsibility and Governmental Affairs
Fabiana Rafaela Pizzolatti
Corporate Social Responsibility
If you would like to know more about AmBev and this Report please
visit:
www.ambev.com.br
or e-mail us at:
[email protected]
10
Vision and Strategy 11
We make today’s decisions
with the eyes on the future.
Vision and Strategy
Vision and Strategy
Our vision: to be the best beer production and distribution platform in
the world. For us, being the best means, on the one hand, to reach the
highest profitability in the beer industry. Nevertheless, this goes
beyond figures. This must be conquered with quality. On the other
hand being the best means: to own the best brands and those
growing more rapidly; to have the best products for consumers; to be
12
recognized by customers as their best partner; to maintain the best
and most committed People; to build a solid and unique culture; it also
means to dare to move on and lead the changes needed to make
dreams come true.
Vision and Strategy
AmBev's Culture and Values
Our People make the difference
Our corporate strategy guides us to achieve our vision of moving
from ‘Biggest to Best’, but it is our People, working together, that will
define if we will achieve our vision. Our culture is the way we do
things - it is the AmBev Way, which guides our People’s behavior and
actions, and which is a combination of our values, our beliefs, and
our management practices and principles. Each of our employees is
responsible for consistently working towards, and living by, our four
values :
We attract the best People, and we hold on to them.
We keep on investing on their development, in order to support
continuous learning, and to reward success. We respect and trust
each other.
We make things happen
We think big and set our goals and standards accordingly. We are
focused on results and work hard and enthusiastically to achieve
them.
Our consumers come first
Our consumers are at the core of everything we do and stand for,
and we consider ourselves to be partners of our consumers and
retailers by attending them with superior quality. We consistently
look for innovative opportunities and will act on them decisively. We
are committed to establishing and delivering superior quality.
We lead the way
We do this by personal example, and by being where things
happen.
13
Vision and Strategy
Corporate Citizenship at AmBev
The company expresses its commitments towards sustainability
both internally and externally. With the focus of obtaining
sustainable results, AmBev settles its actions on three pillars:
economic, environmental and social. AmBev considers its
profitability as an economic responsibility so that the business can
generate economic and financial values to its stakeholders, such as
employees and investors. Environmental responsibility lies with the
Company’s concern about ecoefficiency and environmental
protection. AmBev includes as its social responsibility the
relationship with employees, communities, national governments,
NGOs and the concern with the Responsible Consumption of its
products. Ethics permeates all these actions and the attitude of the
Company’s People.
We make things happen
We promote
economic
development
14
We lead
the way
Our people
make
the difference
Quality
We respect
ethics and the
environment
We promote
social well-being
Stakeholder Relations
Shareholders*
AmBev’s relationship with its shareholders follow the concepts
below :
Transparent Communication: We understand that open and
transparent communication is an excellent mean of creating value
for shareholders. We offer detailed analyses to the market, including
quarterly reports and conference calls so that investors understand
the fundamentals of our company and the main guidelines of our
businesses.
Alignment with objectives: In order to ensure that the executives’
objectives remain aligned with shareholders’ expectations, the
company has adopted a variable compensation system for all
employees that is linked to achieving stretch goals. Following the
concept of thinking like owners, disseminated by our culture, the
top 200 executives participate in a stock option plan tied with their
annual bonuses, making them shareholders in the company and
fostering a long-term relationship between executives and the
company.
Shareholders Agreement: The controlling block is composed of two
entities that, together, held 89.1 % of the company’s voting capital in
December 2006 and 66.3 % of its total capital: InBev, with 73.1 % of
its voting capital and 57.7 % of the total capital (directly or
indirectly), and Fundação Antonio e Helena Zerrenner (FAHZ), with
16.0 % of its voting capital and 8.6 % of total capital. The
Shareholders’ Agreement, valid until 2019, bestows FAHZ with the
right of veto on questions related to a wide range of important
matters, such as dividends, investments, acquisitions and the
issuance of new debts.
* Source : Annual Report 2006.
14
Economic Performance and
Corporate Governance
%
10,4
AmBev posted exceptional results in
2006, with a rise of 10.4% in net revenues.
15
Economic Performance and Corporate Governance
Economic Performance and
Corporate Governance
Corporate Governance*
AmBev’s corporate governance structure follows the highest
global standards. The relationship between the Company and its
shareholders is based upon transparent communication,
guaranteeing best practices and management focused on the
alignment with objectives. To do it so, during 2006 another step
was taken in the process for continuously improving internal
controls that allow the adjustment to the requirements of the
Sarbanes-Oxley Act (SOX).
16
Board of Directors: Consisting of nine members and two surrogates,
each with a term of office until 2008, the Board of Directors defines
the general strategies that assure the success of both long-term
objectives as well as short-term competitiveness. Elected during a
General Shareholders’ Meeting for a term of three years, with the
possibility of re-election, the members’ attributes include, among
others, the selection of the executive directors. One of their most
important functions is to guarantee that AmBev’s values, ethics and
culture are practiced and disseminated to all of the Company’s
employees. None of the members of the Board are executive officers,
in order to guarantee greater independence and autonomy between
the two main AmBev management bodies. Moreover, specific
committees support the Board’s actions, responsible for detailed
analyses of subjects under the Board’s jurisdiction. The General
Shareholders Meeting held on April 20, 2006 elected three members
of the Fiscal Committee (FC), of which one was a representative of
minority shareholders. As legally foreseen, the FC members’ term of
office is one year, valid until the subsequent General Shareholders’
Meeting. The independence of the Fiscal Committee’s, which in our
case also accumulates the function of Audit Committee, under the
terms of the SOX, is guaranteed by the election of independent
members who have considerable autonomy.
* Source : Annual Report 2006
Operations, People and Management Committee: Among its
responsibilities are analyzing, proposing and monitoring the
Company’s performance goals and budgets ; and the following up
of all Company’s actions by analyzing results, marketing
developments and permanent internal and external benchmaking.
Compliance Committee: It helps the Board of Directors to analyze
and monitor the Company’s internal controls and fiscal profile and
to ensure compliance with the legal, and statutory conditions of its
operations with stakeholders.
Finance Committee: Its support to the Board of Directors
encompasses the analysis and monitoring of the Company’s annual
investment plan and opportunities for external growth, as well as
the capital structure, cash flow and management of financial risks
and treasury policy.
Economic Performance and Corporate Governance
Creating Economic Values
ECONOMIC PERFORMANCE INDICATORS
The company posted exceptional results in 2006, with a rise of
10.4 % in net revenues, reaching R$ 7.4 billion and a 42.3 % margin.
A result of this magnitude have only been possible due to AmBev
dedication to achieve “World-Class Efficiency”. The Company focuses
on and ensures that all parts of its operations, from procurement to
distribution are run as efficiently and effectively as possible. The
efforts of AmBev’s People, its result-oriented culture and recognized
ability of retaining the best talents, contributed immensely to these
great results. Looking towards the future, AmBev is committed to
continue delivering results and to be a benchmark to the beverages
industry.
AmBev is dedicated to accomplishments. This enthusiasm
encompasses all stages of its business, beginning with the selection
of the barley and other raw materials required for its products;
moving on to the development of new beverages, the bottling,
marketing, distribution and point-of-purchase processes of
relationship; and ending up in the initiatives that the Company uses
to assure consumer preference for its brands. The Company
continues to focus on execution of operations. Its manufacturing
facilities have reached high operating and environmental efficiency
levels. Its brands’ images are strengthened by the creativity of its
marketing, making use of effective and innovative campaigns.
Its increasingly motivated sales force seeks to explore the
opportunities in the markets in which AmBev is present. Its logistics
operations continue to be efficient, guaranteeing that customers are
satisfied with the services received from AmBev.
The focus on cost reductions is more and more present on a daily
basis, regardless of the results that have been achieved.
In December 2004, Standard & Poor’s raised AmBev’s foreign
currency risk rating from BB- to BBB-, three levels above Brazil’s
country risk rating. In January 2006, Fitch also raised AmBev’s foreign
currency risk rating to BBB-, which makes AmBev the first Brazilian
company to receive such classifications from Standard & Poor’s and
Fitch. Currently, AmBev is rated BBB by both agencies.
17
Economic Performance and Corporate Governance
Economic Highlights
Direct Economic Impacts
2004
R$ million
2005
R$ million
2006
R$ million
Customers
AmBev’s net revenues totalled R$ 17,614 millions in 2006, an increase
of 10.4 % against 2005.
Income Statement
12,007
15,959
17,614
Gross Earnings
7,226
10,216
11,665
General and
Administrative Expenses
3,611
5,174
5,409
EBIT
3,615
5,043
6,256
Net Earnings
1,162
1,546
2,806
33,017
33,493
35,645
Cash and cash
equivalents
1,505
1,096
1,539
Total Debt
7,811
7,204
9,567
Net Revenues
Net Revenue
Millions of Brazilian Reals (R$ million)
20,000
17,614
15,959
15,000
12,007
10,000
5,000
Balance Sheet
0
Total Assets
18
Not Equity
16,976
19,867
2006
Malt and byproducts Brazil
0,6 %
North America
22,1 %
19,268
Soft Drinks Brazil
10 ,3 %
4,537
6,305
7,444
37.8 %
39.5 %
42.3 %
Capital Expenditures
(R$ million)
1,274
1,370
1,426
Return on Equity ( %)
10.8 %
7.8 %
14.6 %
EBTIDA Margin
2005
Breakdown of Net Revenues
Cash Flow and Profitability
EBTIDA (R$ million)
2004
Beer Brazil
51,3 %
Hispanic Latin America
15,7 %
EBITDA*
Millions of Brazilian Reals (R$ million)
8,000
7,444
Share information (R$ / thousand shares)
Book value*
Earnings per Share*
6,305
258.97
304.03
302.39
6,000
17.72
23.65
44.04
4,000
2,000
4,537
Dividends (ON)
20.86
23.07
19.76
Dividends (PN)
22.95
25.38
21.59
114.0 %
109.0 %
54.5 %
40,424
53,646
64,109
6,305
6,107
7,802
219
123
223
65,553
65,346
64.458
655.5
653.5
644.6
Payout of Dividends
Capitalization
Marker Capitalization (R$
million)
Net Debt (R$ million)
Minority Stakes
(R$ million)
Shares in Circulation
(thou.)*
Equivalent ADRs (thou.)*
3,072
0
2002
2004
2005
2006
* Earnings Before Interest, Taxes, Depreciation and Amortization.
* Values adjusted for the share bonus issued on May 31st, 2005.
Economic Performance and Corporate Governance
Shareholders
Net Profit
Dividend policy
AmBev’s net profit totaled R$ 2,806 millions in 2006, an increase of
81,5 % against 2005.
AmBev’s Social Statute foresees a minimum mandatory dividend of
35% of the company’s adjusted annual net income, as determined by
Brazilian corporate law. The mandatory dividend includes amounts
paid as interest attributable to shareholders’ equity. This is equivalent
to a dividend but it is a more tax-efficient way to distribute earnings
as they are generally deductible by the Company for Brazilian
income tax purposes, and the Company manages to repay a higher
amount to its shareholders. The shareholders (including holders of
ADRs) pay income withholding taxes on the amounts received as
interest attributable to shareholders’ equity, while such payment is
not required in connection with dividends received. However, the
increase in the amount distributed related to the tax benefit more
than offsets the amount paid by the shareholder for income
withholding tax. Income withholding tax is usually paid by Brazilian
companies on behalf of their shareholders. AmBev has two classes of
shares, common (ON) and preferred (PN). Common share holders are
entitled to voting rights, while preferred shares have priority in
liquidation. As per Brazilian corporate law, dividend payments to
preferred shareholders must be 10% greater than those made to
common shareholders.
Dividends
The total declared dividend distribution allocation of profits to
shareholders referring to 2006 results, representing the sum of
dividends and interest attributed to shareholders’ equity, was
approximately R$1.5 billion. The amount declared represented
54.5% of the net profit reported for 2006. In addition to the dividend
distribution, the Company returned to its shareholders
approximately R$1.8 billion through its share buyback program,
with a total payout of R$3.3 billions.
Net Income
Millions of Brazilian Reals (R$ million)
2,806
3,000
2,500
2,000
1,546
1,500
1,162
1,000
500
0
2004
2005
2006
19
Economic Performance and Corporate Governance
Public Sector
Taxes
Through the entire productive chain, AmBev’s business
generates, in Brazil, approximately R$ 8.1 billion in taxes.
Indirect Economic Impacts
20
In addition to the generation of jobs and the payment of taxes,
AmBev impacts the Latin American economy throughout its supply
chain and over 2 million points-of-purchase in the region.
The Company buys the regional production for a price that is higher
than that which is stipulated by the National Supply Company
(CONAB). In 2006, the company expects to purchase 290 tons of
guaraná beans by the end of the harvest season, an amount that is
76% higher than the quantity in 2005 when 165 tons were acquired.
Annually, the company organizes the “Guaraná Day” during which
lecture cycles are held about setting up cooperatives, production
systems, the application of agro-ecological concepts for guaraná
growing, among other subjects. The farmers also pay a technical visit
to Embrapa’s field installations and AmBev’s Santa Helena Farm,
where they have the opportunity to learn about the techniques that
have been developed by the company to improve guaraná crops,
including land and planting management, crop treatment,
harvesting and processing (after-harvest actions through the
roasting of the beans).
In the south of Brazil, AmBev established the Barley Project to
encourage the production of barley and boost income for
approximately four thousand producers in three states. AmBev
drives the scheme by agreeing to buy the barley for a pre-defined
price while providing access to loans so farmers can buy seeds
repaying only after the harvest. Since 2000, AmBev has also sponsored
the “Barley Field Day” when the company, producers, cooperatives and
EMBRAPA (Brazilian Agricultural and Liverstock Research Company)
get together to learn more about the barley cultivation process and
new technologies, to exchange best practices and to visit production
sites.
For more information on AmBev’s community projects refer to
People and Community.
Environment 21
920.000
AmBev’s water savings in the last three years is
enough to supply, for a month, 920,000 inhabitants.
Environment
Environment
Environmental Performance Indicators
22
Creating Environmental Values
Materials
AmBev’s Environmental Policy was first established in 1997. It was
swiftly followed by the implementation of an internal environmental
management system (EMS) based on ISO14001. By 2001, nine
breweries had gone a step further by applying for ISO14001
certification. At this point, AmBev decided that external
certifications brought no additional value over AmBev’s own EMS,
which already had all breweries annually audited in a peer-review
process by internal environmental specialists.
The policy, aligned with InBev’s environmental policy, summarizes
the Company’s approach of reducing environmental impacts while
maintaining economic growth. In other words; this policy is how
AmBev achieves greater eco-efficiency in all its activities, products
and services. The Environmental Policy covers:
• Compliance with environmental legislation;
• Research into technologies, processes and raw materials that
minimize environmental impacts, reduce pollution and so enhance
competitiveness;
• Maintenance of a motivated, trained and qualified team so
promoting constant improvements in environmental performance;
• Development, promotion and support of programs focused on
environmental education and awareness with clients, suppliers
and communities;
• The company’s continuous and periodical monitoring of
environmental performance in every stage of the productive
process.
The commitment to seek and apply technologies, processes and raw
materials that decrease the Company’s impact on the environment
and, at the same time, maintain its competitiveness, is an essential
element of AmBev Environmental Policy.
This eco-efficiency commitment is monitored by productivity
indicators, measured and reported with the same criteria on 100%
of the plants.
Below are the results of the use of natural materials :
Natural Materials Use in Tons
2002
2003
2004
Malt
616,514
536,971
577,746
620,388
654,390
Other
Cereals *
342,299
333,174
330,612
254,956
421,240
1,208
980
1,013
920
1,087
Hops **
2005
* Includes wheat, maize, corn, rice.
** Hops sources include hop flowers, hop pellets and hop extracts
Extract Losses
In addition to keeping records of materials, production and wastes,
the Company also keeps track of extract losses which are a
measure of how efficiently a brewery or other production plant
uses its raw materials. Extract is composed by ‘fermentable sugars’
that come from the cereals and sugar used to produce beer.
Standardized laboratory procedures are used to compare the
theoretical maximum extract coming into a brewery with the
extract that remains within our products. The lower the extract
loss, the fewer raw materials are needed to produce the same
amount of beer. The Company’s results are:
Extract Losses
%
10
8
7.97
‘Cerrado do Pelintra’ Natural Heritage Area (Agudos, São Paulo).
6.41
6
Each one of AmBev’s plants has a multi-disciplinary commission to
train its employees and to monitor key environmental issues and
performance indicators. Among these indicators, the following KPIs
(Key Performance Indicators) are included: usage of materials,
energy and water, and monitoring of waste, by-products and
greenhouse gases.
2006
5.24
5.48
2004
2005
5.09
4
2
0
2002
2003
2006
Environment
Solid Waste Management
Besides reducing the amount of solid residues produced, AmBev
also recovers, reuses and recycles them. In 2006, throughout all
AmBev, 98.1% of solid waste was recovered as by-products.
The silage process stores foods in an oxygen-poor atmosphere with
low acidity. We use specially selected airproof silos and store the
malt germ on alternate layers with grain or citrus pulp which help to
modify acidity and atmosphere so ensuring long-term by-product
quality.
Solid Waste Recycling Rate
%
100
94.9
95.8
96.5
96.75
98.1
2002
2003
2004
2005
2006
75
50
25
0
Paper and pulp waste from labels are reused to make cardboard and
paper. Spent grains, wet and dry yeast and hops are used as
components in animal feedstuff and yeast is also used as food
flavoring for human consumption.
Wastewater sludge is used as an organic fertilizer and soil improver.
Malt Germs Storage
The year-on-year increase in revenue generated by by-products per
hectoliter witnessed since 2000, has not only improved profitability;
it has reduced our environmental impact.
The high rate of by-product usage for animal feeding depends on
the maintenance of a consistent high quality. Malt germ is an
important malting by-product which needs constant storage at
specific humidity and protein levels to avoid fungal growth that can
lead to micro-toxin formation. To guarantee the safe use of malt
germ as dairy cattle supplement we monitor humidity and protein
levels at the facilities. Additionally, we undertake a thorough
product micro-toxicological analysis regime. An important issue in
maximizing the reuse of malt germs is synchronizing its
distribution with the needs of local cattle.
AmBev malt germ production peaks in the summer when the need
for animal feedstuff weakens. To balance out supply we use the
silage process to store malt germ during summer and release it
during the winter.
23
Environment
In 2006, as a result of improved recycling rates the revenues from
the sale of by-products was R$ 59.3 million. The data from before
2006 shown below takes into consideration only the sale of
by-products in Brazil.
By Product Revenue R$ Million
Energy
AmBev used a total of 10,280 thousand Gigajoules of energy in
2006. When compared to production (energy use per hectoliter
produced), energy use has decreased by 1.19 % against 2005.
Direct Energy Consumption (Mega Joules)
2001
2002
2003
2004
2005
2006
22.3
26.1
30.5
41
50.9
59.3
Primary
Source
2002
2003
2004
2005
2006
Heat
Energy
6,850,242,786
6,095,551,608
6,052,029,381
6,341,333,474
7,273,609,118
Electric
Energy
2,591,913,942
2,428,847,942
2,435,466,370
2,969,440,326
3,006,571,226
Total
9,442,156,728
8,524,399,550
8,487,495,751
9,310,773,800
10,280,180,344
Energy Consumption
Thousands of gigajoules ('000 Gj)
12,500
24
10,000
9,311
10,280
2005
2006
8,487
7,500
5,000
2,500
0
2004
Energy Consumption per Hectoliter Production
Megajoules per hectoliter (MJ/hl)
150
123.1
113.8
108.7
109.1
107.8
2004
2005
2006
100
50
0
2002
2003
Environment
Renewable Energy Sources
Water Use
AmBev’s commitment to reduce the environmental impact of its
activities and products led it, in 2003, to seek ways to diversify its
energy supply by searching for renewable energy sources.
AmBev has developed a corporate standard procedure for all
AmBev plants describing practices for the sustainable use of water
called the “Water Commandments”. They focus on progressive and
continuous reduction in water usage, coupled with its recycling and
reutilization. The Water Commandments deal with these issues on
two fronts:
An important element of this has been the usage of agricultural and
plantation by-products such as wood chips, coconut husks and
farmed eucalyptus lumber as boiler fuel. These types of residues are
now in use at five Brazilian breweries : Agudos/SP, Lages/SC, Teresina/
PI, Cuiabá/MT and Viamão/RS. An added advantage of using these
carbon-dioxide-neutral sources is that they reduce AmBev’s
greenhouse gas production.
In 2005, there was a reduction on carbon dioxide emissions of
94,146 ton CO2. In 2006, due to new projects, AmBev had an
additional reduction on carbon dioxide emissions of approximately
38,700 ton CO2.
The Jacareí/SP, Jaguariúna/SP, Jundiaí/SP, Guarulhos/SP and Juatuba/
MG plants replaced 2 million cubic meters of gas for biogas generated
by AmBev’s own facilities.
I – Awareness Training and the elimination of losses
• Usage Awareness, to instruct employees by communicating best
practices and training them on the correct procedures related to
water usage before they start their work.
• Follow-up of the key performance indicators at each of the plants,
aiming at the reduction of water usage.
II – Use of technologies and processes to reduce the use of water
• Research for alternative technologies that reduce usage.
• Maintenance of technical conditions that prevent waste
problems such as leakages.
• To forward for treatment the water from various production
stages, when necessary, or reuse it as non-drinkable water for
factory cleaning and other non-product uses.
Greenhouse gas emissions
AmBev develops alternative fuel projects and consumption
reduction programs to minimize greenhouse gases emissions.
Among the carbon neutral fuel projects it has developed in the
last two years, are the use of biogas generated by the anaerobic
wastewater treatment process and, where available, the
replacement of fossil fuels by biomass. For more information about
the biomass project, please refer to the item Renewable Energy
Sources.
CO2 emissions per hectoliter production*
Kilograms per hectoliter (kg/hl)
The Recycling and Reuse of Water
A key objective is to increasingly reduce the use of water in AmBev's
industrial processes along with the generation of lower levels of
wastewater. 8 liters were necessary to produce 1 liter of beer,
however by 2006, AmBev had reduced the volume of water needed
to produce a liter of beer to 4.30 liters. This represents a decrease of
19.7% against 2002. A special mention goes to AmBev’s breweries in
Curitiba, Brasília, Camaçari and Agudos which only use, respectively,
3.49, 3.63, 3.69 and 3.70 liters of water to produce 1 liter of beer.
AmBev's water savings in the last three years are enough to supply
920,000 inhabitants for a month.
12
9
9.03
8.22
Water use per hectoliter production**
7.89
6.85
6.62
6
Hectoliters water per hectoliter (hl/hl)
6
5.36
4.88
3
4.37
4.21
4.30
2004
2005
2006
4
0
2002
2003
2004
2005
2006
2
* Brazil sites only for 2002, 2003, 2004 and 2005.
0
2002
2003
** In 2006, this indicator was significantly influenced by the inclusion of new plants
and by the starting of new lines of production.
25
Environment
AmBev’s water recycling and reuse efforts are in line with the
company’s environmental management policy which seeks both to
conserve the environment and to lower the production cost base.
Wastewater Treatment
AmBev has wastewater treatment plants (WWTP) in 95% of its plants,
treating 100% of the wastewater coming from these plants. Only two
plants treat its wastewater using external WWTP. Together, AmBev’s
WWTP’s treat 200 thousand m3/day of wastewater and an organic
load of 234 thousand kgs COD/day, which is equivalent to the sewage
treatment of a city with 4.5 million inhabitants.
26
Jacareí, São Paulo.
Water Sources and related Ecosystems/Habitats significantly
affected by Use of Water
AmBev monitors the qualitative and quantitative characteristics of
the water source supply used in all of its production units. In 2005,
the volume of water used by AmBev’s plants was well below
authorized limits. Sources of supply were: 25% deep wells; 60%
surface waters, such as rivers, and 16% from the public water supply.
AmBev participates on all river basin committees set up where its
plants are located. The Company identifies priorities as to the
availability of water and seeks coordinated efforts in the
management of water basins so as to reduce usage.
AmBev’s Jaguariúna plant is located in the Piracicaba basin which
has had a number of years of dry conditions. In response to the
water stress, AmBev has implemented a number of water usage
reduction projects. The success of these projects was recognized in
November 2003, by an Action for Water Award from the Piracicaba,
Capivari and Jundiaí Inter-city River Basin Consortium.
Biodiversity
In the city of Maués, Amazonas, in the midst of the native forest,
lies Fazenda Santa Helena. This AmBev owned 1,070 hectare farm
is the world’s largest genetic database for guaraná, a seed
indigenous to this region of Brazil and an important ingredient in
AmBev fruit based drinks. Less than 50% of the farm is cultivated
and farming procedures respect the natural habitat of the guaraná
trees.
The entire project at Fazenda Santa Helena is totally integrated with
the ecosystem through the planting the guaraná in small forest
clearings called ‘guaranazeiros’. The company maintains the native
vegetation surrounding the clearings, thus preserving the area’s
fauna and flora.
In Guarulhos, São Paulo, AmBev has a plant surrounded by a total of
8,425,379 m2 of protected natural vegetation, divided into two
governmentally protected areas: one is federal, Paraíba do Sul River
Environmentally Protected Areas (APA); and one from the state,
Piracicaba-Juquei Mirim Environmentally Protected Areas.
Environment
AmBev’s plant in Agudos, São Paulo, includes the ‘Cerrado do
Pelintra’ Natural Heritage Area. These 923 hectares lie in an area
between the Brazilian savannah-like Cerrado and Atlantic Forest
habitats, displaying 185 species of trees, 29 species of mammals,
165 species of birds, 29 species of reptiles, and 13 species of
amphibians. Within the reserve, 124 hectares are being reforested.
The reserve is an important resource for employee and community
environmental education. It is also a source of income. Each year
more than 600 liters of honey are produced. In 2005, a partnership
with the local government was implemented to further protect
the area.
Compliance
In 2006, though there were 21 non-compliance point situations, all
of them were resolved in line with mandatory procedures.
Number of Non-compliance Situations : AmBev
2003
2004
2005
2006
14
19
22
21
Fines for Environmental Non-Compliance : AmBev (€)
2003
2004
2005*
2006
8,134
0
9,259
0
Note that, in 2004 and 2006, no fines we received by AmBev.
* Refers to a fine resulting from an arson attack on an area next to the Manaus plant
which belonges to AmBev.
Transport
Agudos, São Paulo.
Products and Services
AmBev does not have specific studies about the environmental
impact caused by its products, such as energy usage from the
refrigeration of its products at the points of purchase and its
consumers’ homes, and the percentage of packages recycled.
Nevertheless, it supports non-governmental organizations such as
Recicloteca and CEMPRE. For more information please refer to About
AmBev (Key External Relationships) and People and Community
(Cooperative Solidarity Recycling).
All AmBev’s distribution and logistic needs are outsourced by
specialized fleet contractors. AmBev works with these in
developing distribution and logistic optimization projects, to
result in a reduction of fuel consumption and its consequent
emission of gases. Examples of these projects include: minimizing
the number of partial loads to improve fleet use; route
optimization, increased fleet utilization rates and the reduction of
recalled/returned products.
AmBev does not measure the gas emissions of contractor’s fleets.
27
Environment
Case Studies
Peru
Subject
Community Consultation at Huachipa
Before the beginning of the construction of AmBev’s Huachipa
plant in Peru, there was a community consultation. The Company
presented the plant’s project to more than 170 people from the
local community in order to show them the Company’s concern
with the protection of the environment and the region’s
sustainable development. Furthermore, there were periodic
community visits in order to guarantee a good relationship and an
ethical, clear and permanent dialog with the community.
28
Since its opening in June 2005, the plant has had an exemplary
environmental record. Central to the plant’s production capacity of
over 1,000,000 hectoliters of beer and 2,500,000 hectoliters of soft
drinks is the innovative wastewater treatment plant installed
which produces wastewater at less than 5 parts per million of
Biological Oxygen Demand. This ‘grey water’ is actually so clean
that the plant uses it instead of fresh water for the cleaning of nonproduction areas, such as yards, and to irrigate the landscape
around this greenfield site. As a new plant all 550 staff received the
appropriate training, including environmental policy and practices
at existing Brazilian plants before starting working at the new
plant.
As a result of this effort and with the support of the World Bank,
the Peruvian government awarded the local AmBev unit the “2006
Cleanest Production and Eco-Efficiency Prize”. Created by the
National Environmental Council of Peru, the prize is given to
companies that have implemented outstanding eco-efficiency
projects during the year.
AmBev’s plant in Sapucaia do Sul/RS was one of the winners. Its
activities during the Environment Week attracted employees,
community and sealed partnerships with schools and local
government. More than 7.500 Elementary students participated in
the Drawing Contest “How I can take care of my city’s environment”.
Employees, after attending a lecture about the impact on nature of
the selective collection of recycling materials, picked up all the trash
at the local zoo.
CDD Belo Horizonte/MG, the winner of the second category, engaged its
employees and local students on the importance of recycling through
theatre plays and other creative activities such as toy making using
recycled materials.
The Dominican Republic
Subject
Reforestation
In order to celebrate the Environmental day and to show AmBev’s
concern with the environment and natural resources, AmBev
promoted the reforestation of the margins of the Haina river (part of
it is inside AmBev’s plant). The Company involved its employees,
community leaders, 140 children from local schools and the press.
The event took place on June 5th, 2006.
Brazil
Subject
Environmental Week Competitions
Venezuela
Subject
Glass Recycling
Inspired by isolated projects developed by its units, AmBev
launched, in 2006, a contest to celebrate the International
Environment Day. So as to contribute to the society’s
environmental awareness and to the Company’s results, all units
were encouraged to involve employees, their families and the
community in projects that had the subject “Recycle Too”. Latin
American plants and sales/distribution units participated in two
different categories.
Since 2001, AmBev and other glass and beer companies have
supported ADAN’s Margarita Project which focuses on the selective
collection of glass in Nueva Esparta (Margarita Island), Venezuela. In
2005 (up to August), the project was responsible for the collection
and recycling of 378.840 kilos of glass. In 2004, 81.500 kilos of glass
were recycled.
People and Community
5.700
In 2006, the AmBev University provided specific
training for more than 5,700 employees
and distributors.
29
People and Community
People and Community
Creating Social Values
AmBev’s Code of Business Conduct
AmBev is a company with activities in several countries, and in order
to maintain its unity, AmBev’s People must act according to
common values and objectives. Therefore, the Company developed
a “Code of Business Conduct”. This Code represents AmBev’s
commitment to responsible, ethical and transparent behavior, and
mutual respect among its professionals. Together with its corporate
values, the Code plays an important part in building the foundation
for AmBev’s long-term success. Relationships with customers,
suppliers, competitors, employees and governmental bodies and
officials are to be based on compliance with all applicable laws and
regulations.
30
Formally accepted by all employees, the Code covers the
company’s attitude towards aspects of human rights such as
freedom of association. It clearly prohibits discrimination on racial,
sexual, religious and physical-disability grounds and repudiates
the practice of child labor and forced labor, including the practices
of its suppliers.
The giving of gifts and favors as an effort to sell products or services
or to influence business, labor or governmental decision-making is
strictly prohibited. Any direct or indirect contribution by the
company to any political party, committee or candidate for public
office is strictly forbidden, even if permitted by local regulations,
unless a formal approval by AmBev’s Board of Directors has been
obtained in advance. Senior managers who wish to be candidates
for local, regional, or federal elections are requested to notify
AmBev’s Board of Directors of their intentions.
Employment
Number of Employees
Country
Brazil
2006
20,083
North America
3,080
HILA-ex*
4,587
Quinsa
7,340
Total
35,090
* HILA-ex: Equador, Peru, Guatemala, República Dominicana, Venezuela.
Remuneration and Benefits
AmBev seeks to offer its employees competitive salaries and
packages commensurate with their role and responsibility. AmBev
has two variable remuneration programs: one for management (top
and second tier), coordination and supervisory staff and another for
the operational levels. A bonus is given according to the
achievement of goals set by the company and by its employees. All
employees receive each year a loyalty payment of an extra salary,
the 14th salary, besides the regular 13 monthly salaries.
AmBev’s employees have, through FAHZ’s sponsorship, medical and
dental insurance, aid at the purchase of school materials, programs
to prevent illnesses, Christmas food basket and toys. Each year FAHZ
provides partial scholarships for high school and other postgraduation courses. Through the “Cool Life” program the company
publishes a newsletter with health tips. In health prevention, AmBev
promotes flu vaccinations and encourages awareness of health
issues such as stress, hypertension and diabetes.
People and Community
Labor and Management Relations
All of AmBev’s employees in Brazil are represented by labor unions,
but only approximately 7% of its employees in Brazil are actually
members of labor unions. The number of administrative and
distribution employees who are members of labor unions is
insignificant. Salary negotiations are conducted annually between
the workers’ unions and AmBev. Collective bargaining agreements
are negotiated separately for each facility or distribution center.
AmBev’s collective bargaining agreements have a term of one or
two years, and AmBev usually enters into new collective bargaining
agreements prior to or on the expiration of the existing agreements.
AmBev believes that its relation with employees is satisfactory, and
there have been no strikes or significant labor disputes in the past
ten years.
Information, Consultation and Negotiation
with Employees
The guidelines of principles called the AmBev Culture define employee
participation. AmBev’s “Code of Business Conduct” encourages the
participation and commitment of employees on management and
results. Internal communication initiatives involve employees in
important decisions. Employees help planning the future of the
company, they know exactly what the objectives to be followed are and
what the reward from their achievements will be.
Approximately 60% of AmBev’s employees in the Company’s North
America operations are represented by unions. Unionized
employees are usually employees working within the production or
distribution departments of the Company, except for the Company’s
operations in Quebec, which is approximately 85% unionized, with
both sales and office administration employees belonging to
unions. The company has been working together with the unions to
obtain operating flexibility in exchange of improved wages and
benefits.
31
People and Community
Health and Safety
Information concerning all accidents (whether or not it resulted in
employee absence), as well as work-related illnesses, is transmitted to
the INSS (Social Security) via the CAT (Work-related Accident
Communication) form. The filling out of this form is done by the Local
Safety Area (SESMT – Labor Safety and Medicine Specialized Service)
at the unit where the accident occurred and by the physician
responsible for the unit. Internally, any accidents (whether or not it
resulted in employee absence) are investigated, dealt with and
followed up. For work-related illnesses, all units update the PPRA
(Environmental Risks and Prevention Program) and the PCMSO
(Medical Control and Labor Health Program).
Furthermore, all units inform the Corporate Safety Team, on a weekly
basis, of any absence-causing accidents that occur. The Corporate
Safety Team analyzes the event, proposes remedial actions and
disseminates their findings to avoid similar accidents reoccurring.
Health and Safety Committees
32
Every AmBev unit maintains an Internal Commission for the
Prevention of Accidents (CIPA). This commission is comprised of
elected officials chosen by the employees. Participation in the
commission’s monthly meetings is obligatory for the plant manager
as well as for any managers responsible for an area where an accident
has occurred.
In addition to the CIPA, the units keep their Labor Safety and
Medicine Specialized Service – SESMT up to date. A Safety Director
Plan was created so that CIPA, SESMT, Unit Managers and Supervisory
are more involved in safety issues. This plan monthly monitors and
follows up on the tools that guarantee a minimum of accidents at the
units.
People and Community
PEACE in Traffic – The Zero Traffic Accident
Program
AmBev has been running its “PEACE in Traffic” program since 2003
in view of the need to guarantee the physical integrity of all of its
employees, to manage safety indicators and to reduce the number
of traffic accidents. PEACE in Traffic is a labor safety program
applicable to all of the company’s Direct Distribution Centers,
encompassing Sales and Operations areas. It is specifically aimed
at reducing and preventing traffic accidents involving employees
using Company cars and motorcycles as means of transportation.
The Program makes use of tools related to four pillars—
Infrastructure, Driver’s Attitude, Leadership Attitude and People
and Management —defining the specific safety actions for all
agents involved and the procedures for their correct application.
As a result of this program and the efforts from AmBev’s People,
there has been a 77% reduction in accidents with absence over
the period since the Program was created.
Charlie Hudson de Oliveira, one of AmBev’s managers responsible
for the distribution of the Company’s products in Mato Grosso do
Sul, Mato Grosso, Goiás, Distrito Federal, Tocantins and Amazonas,
on September 29th 2006 was unfortunatelly in GOL’s flight 1907
crash. AmBev thanks Charlie and his family for all the dedication
in more than five years of hard work, for his friendship and for all
moments that he had with us.
Training and Education
In 1995, Brahma created the Brahma University (now known as
“AmBev University”) to train and enhance our employees’
performance, and the performance of our distributors’ employees. In
2006, the AmBev University (UA) provided specific training for more
than 5,700 employees and distributors, totaling 35,000 hours of
training. At the management level, AmBev’s senior management and
executive officers participate in several business and technical training
programs at leading United States and European universities. Training
programs in association with SENAI (National Service of Industrial
Learning) held in AmBev’s major facilities provide courses, mainly
technical in nature, for supervisory and operating personnel. Together
with Sindicerv, AmBev also has established a training school in the city
of Vassouras, near Rio de Janeiro, which includes a micro brewery,
bottling line and malting plant. AmBev also maintains a partnership
with SIEBEL Institute in Chicago and with Dömens Academic in
Munich, Germany, where AmBev’s personnel responsible for beer
production are introduced to new worldwide technologies and are
able to visit other brewers and equipment suppliers.
AmBev maintains an e-learning program for an on-the-job training
for sales staff at supervisory level. AmBev also operates AmBev TV, a
proprietary distance-learning tool operated over a secure satellite
broadcasting system that connects all of AmBev’s business units
and a majority of AmBev’s third-party distributors. AmBev believes
that its personnel is well trained and kept abreast of current
technical and business developments.
Leadership, Performance and Change 2005.
33
People and Community
Community
AmBev’s Corporate Relations Department, as well as the plants,
distribution and sales units, have several initiatives focused on local
communities and always seek to promptly answer communities’
demands. Among its main projects, the Company highlights the
following:
AmBev is evaluating the implementation of the project as well as
creating a Best Practices database with digital access. In the near
future, the goal is to escalate the program to other InBev Zones and
to help creating a corporate Best Practices Event.
Promoting sustainable development
Best Practices
34
In 2005, AmBev re-launched the “Best Practices” Event, improving
the way it identifies best practices throughout the company in order
to create an “Innovation Mindset” fostering our people’s ideas.
Among many categories, it included, for the first time, social and
environmental responsibility. Most of AmBev’s units in Latin America
sent projects concerning environmental management, relationship
with local communities and social initiatives. One of the goals was to
reward creative, simple and innovative actions and to communicate
them in an efficient manner, generating interest.
The first prize, in 2005, went to a project designed to hire
handicapped people and to include them in the Company’s culture.
Fourteen new employees were welcomed in Juatuba and
Contagem/MG. The focus of the second project was to develop
environmental awareness in the neighborhood close to AmBev’s
plant in Cuiabá/MT. Together with community leaders, the unit
promoted community recycling efforts and collected materials were
sold to raise funds for the community project. The third project, at
Viamão/RS, also aimed at improving environmental awareness, the
education of employees and of local communities. During the
Environment Week, in June 2005, several activities took place
around the plant including, the “Water Contest”, which sought to
encourage social responsibility among employees and the
reduction of water usage.
In 2006, the Sapucaia do Sul/RS unit came in 1st due to its
environmental activities, which involved the participation of
employees, students, the local community and governmental
partnerships. The initiative, launched during the Environment Week
(see details about this event in the Environment Chapter), defined a
“green agenda” to ensure continuity of environmental awareness
campaigns throughout the year. Our unit in Cabo/PE, placed 2nd,
promoted the Driver’s Day. This event rewarded drivers who work at
the facility with lectures about health and safety and with leisuretime activities. For its part, the Goiânia/GO plant developed a new
application for malt spent grains, a by-product of the beer
production, guaranteeing the third place in the Best Practices event.
Since this by-product is rich in protein, it was used by the School of
Food Engineering’s Junior Company (SIPPAL) from the Federal
University of Goiás in the making of bread and cookies.
“People Who Care”
AmBev understands that exemplary behavior begins at home so in
August 2006, it launched the first “Gente do Bem” (“People Who
Care”). This event aimed at engaging employees and local
communities with social responsibility issues. As part of the activities
every AmBev unit in Brazil held an open day to discuss responsible
consumption of alcohol. Around 45.000 people watched “How to talk
to your children about the use of alcohol” video developed by CISA.
Over the next few years, AmBev plans to similarly engage with local
communities on different social topics.
People and Community
Helping Communities
Commitment to Brazil’s Amazonas Region
Present in the Amazon since the 1940s, AmBev has implemented
policies for the economic, social and environmental development
of the region. The initiatives are based upon the Maués Project,
which calls for the renovation and expansion of guaraná
plantations, the supply of seedlings and support for the
development of poultry farming as an alternative source of
income for local planters.
The Company’s Amazon projects were reinforced in 2003 when it
became involved with the Green Free Zone project run by state and
municipal authorities. The Company will destine R$ 61 million until
2013 for the development of Maués. The R$ 23.4 million that has
already been invested over the past four years has enabled the
following actions:
• Funding more than 1,300 public housing units in the rural district,
where nearly 40 % of the municipality’s population resides;
• Creation and maintenance of 12 agricultural production centers.
Each is staffed by an agricultural technician and equipped with a
motorboat to facilitate visits to different locations. Trained by
AmBev agronomists in Maués, the technicians orient farmers
regarding the best guaraná growing techniques;
• Inauguration of a sewing workshop, including the purchase of
equipment and the training of seamstresses, who today are
responsible for the production of school uniforms for the
municipality. Currently, there are 32 professionals involved in the
initiative;
• Development of poultry and sheep raising projects, designed to
offer farmers with alternative sources of subsistence;
• Development of a beekeeping project consisting of the distribution of
hives and the training in the management of honey production. Bees
are the main pollinating agent of the guaraná plant ;
• Fostering the sugar cane production involving the acquisition of
raw materials, pre-planting land preparation assistance and the
building of transportation infrastructure for shipping out
production. The project seeks to promote the sale of by-products
such as mascavo (brown) sugar. There are already four sugar
refineries in operation in rural districts of Maués ;
• Development of manioc plantations, with the objective of
doubling the planted area and fostering self-sufficiency in the
production of manioc meal in the Maués area.
Cooperative Solidarity Recycling
Recicloteca’s research showed that, although neighborhood waste
management cooperatives are spread across Brazil, they lacked
the professional skills and machinery to grow and prosper as a
sector. Therefore, Recicloteca launched this Program with the
objective of:
• Promoting self-respect and increasing incomes for those involved
in collecting and selling recyclable materials;
• Increasing social inclusion and improving of the quality of life
among these groups and their communities ;
• Promoting the proper disposal of poorly discarded waste on
rivers, unused spaces, etc;
• Reducing the volume of municipal waste by increasing waste
reuse at source ;
• Increasing the efficiency of the Brazilian waste management
sector by encouraging smaller operators to handle waste that
would be uneconomical for larger operators.
The program has focused on providing hydraulic presses to
optimize cooperative activities, highlighting the role of
cooperatives in improving urban solid-waste management ,
training cooperative members in reutilization skills for incomegeneration purposes and promoting the involvement of
communities in sorting recyclable materials.
The results of the pilot project are impressive. Twelve cooperatives
duplicated the volume of PET handled and increased its average
price from R$ 0.27/kg to R$ 0.62/kg. The program has benefited 27
cooperatives in five states and in the federal capital of Brasilia.
Clients
Our teams are constantly trained so that their routines go beyond
a mere buy-and-sell relationship. Through its salespeople,
supervisors and managers, AmBev establishes an important
exchange of information with retailers and clients, which leads to
the improvement of our market knowledge and the consequent
development of our partners. The sales force’s routine is analyzed,
revised and improved each year so that we assure making a
difference inside the points-of-purchase or with the retailers. The
striving for sales excellence involves actions that enables to
identify opportunities and improvements to be executed at each
points-of-purchase that is visited. AmBev understands that its
responsibility does not end with a sale, and that a good
partnership is established through trust, commitment and an
effort to find a common objective.
Moreover, AmBev has a Relationship Program destined to clients
throughout Brazil. Based on the demand from the Company’s
clients, the objective is to improve AmBev’s relationship with its
points-of-purchase. AmBev values and recognizes all clients who
deal its products. Through this Program, the Company helps the
development of its clients’ businesses through easily implemented
tips and information. In this regard, AmBev makes use of a
35
People and Community
bi-monthly magazine and a monthly television channel. AmBev
believes that training its clients is also a way of contributing to the
economic and social development of the Country.
Education and Literacy
Project “Faz Universitário”
Bahia State government has developed the educational project
‘Faz Univesitário” in partnership with companies and local
universities to combat social exclusion by providing scholarship
aid and financial resources to the underprivileged youth. Since
2004, over 2,503 destitute students have benefited from this
educational project, attending different undergraduate schools in
Salvador and other cities. For this project, AmBev will be
contributing approximately R$ 600 thousand per year, benefiting
around 100 students.
“Alfa e Beto” Literacy Program
36
AmBev, together with Sergipe State government, sponsored the
acquisition of books to around five thousand elementary students. It
invested, in 2005 and 2006, a total of one million reais.
Brazil’s Community Action
Since 1995, AmBev purchases its season greetings cards from the
Brazil’s Community Action, an organization that develops social and
educational works for the lower income population of greater São
Paulo.
FAHZ
The primary objectives of the national welfare institute Fundação
Antônio e Helena Zerrener (The Zerrener Foundation), one of
AmBev’s controlling partners, are to provide employees and
managers with medical/hospital and dental assistance, to aid in
professional specialization and graduation courses, and to maintain
facilities that provide aid and assistance to the elderly, through direct
actions or financial aid agreements with other entities. In 2006, the
Foundation invested a total of R$ 92 million in benefits and another
R$ 7.3 million at the Walter Belian technical school.
Our Products
’06
Our Products
In early 2006, the sixth “People who Sell”
(“Gente que Vende”) event took place in Brazil.
37
Our Products
Our Products
Customer Health and Safety
Since 2001, the AmBev Responsible Consumption Program, pioneered
in Brazil, Ecuador and Peru, has sought to promote the responsible
consumption of AmBev products focusing on underage drinking and
drink-driving programs. As part of this program, in 2006, AmBev
launched a boomerang logo to communicate its concern for
responsible consumption in a more integrated way both to its internal
and external stakeholders. The logo and its strapline,“It’s cooler when
you go and come back” will be an increasing part of all AmBev’s
responsible consumption activities and partnerships.
External Public
AmBev supports governmental initiatives to develop programs to
prevent traffic accidents resulting from drinking and driving. The
Company also donates breathalyzers. As far as 2006, more than 20,000
breathalyzers were distributed to the Brazilian states of São Paulo, Rio de
Janeiro, Distrito Federal and Rio Grande do Sul. AmBev’s beer brands
Brahma, Skol and Antarctica also communicate the “If you drink, don’t
drive” message.
Responsible consumption initiatives with a focus on curbing underage
alcohol consumption also extend to the point-of-purchase, to
advertising campaigns and to AmBev events. Around 350,000
commercial establishments joined AmBev’s “Ask for an ID campaign”. All
AmBev events in Brazil promote responsible consumption messages
often with innovative touches to reinvigorate the responsible
consumption message.
38
Responsible consumption messages are an important part of
AmBev’s internal communication, such as corporate television
programs, intranet and magazines. The company also involves its
people in events that focus on the subject, such as the sixth “People
Who Sell” and in “People Who Care” events (please refer to
Community to get more information about this event). In April 2005,
some AmBev employees delivered responsible consumption
materials to point-of-purchase locations around Brazil, launching a
campaign to encourage beverage dealers to promote a campaign
to encourages “designated drivers”.
“People Who Sell”
In early 2006, the sixth “People who Sell” (“Gente que Vende”) event
took place in Brazil and in every Latin American country where
AmBev operates. Around 80% of its employees in Brazil, from all
areas of the company, put consumers as a first priority and took to
the streets to sell or serve our products directly to consumers. This
annual event has two functions: to promote responsible
consumption directly to consumers and to allow employees to learn
about the business by accompanying sales representatives and
supervisors on sales calls.
As 2006 was a World Cup year; Ronaldo, one of Brazil’s main soccer
players, led the campaign. AmBev’s concern with drinking and
driving was at the center of the event. All participating employees
wore T-shirts with the responsible consumption, boomerang, logo
on the back, encouraging consumers to go out and have fun while
drinking responsibly and getting home safely afterwards.
Brazil
Subject
Carnival 2006
During carnival events around Brazil in 2006, AmBev promoted its
responsible consumption messages in two main areas: at the event
itself and by encouraging the avoidance of “drinking and driving” to
and from the event. Among the many activities AmBev undertook
were :
• In Rio de Janeiro and São Paulo, five thousand disposable
breathalyzers were donated to local and federal government
agencies;
• At appropriate airports, carnival goers received information about
events as well as tips on responsible consumption;
• In Recife and Olinda, a memory game helped to entertain carnival
goers and to transmit the messages : “It’s cooler when you go and
come back”, and for those unsafe to drive “Take a Ride” ;
• In Salvador, participants were offered a temporary boomerang
tattoo to help them remember the importance of responsible
consumption;
Our Products
Regional Events
During regional events, such as Barretos and Carnabelô, AmBev
also promotes responsible consumption messages through a
variety of methods. Besides balancing tests to engage
merrymakers and identify those who should not drive, the
company promotes partnerships with taxi cooperatives.
Equador
Subject
Alert underage drinking and drinking & driving.
In December 2005, AmBev Ecuador was the first beer company in
the country to launch a campaign to alert people to the problems of
underage drinking and drinking & driving. AmBev Ecuador
understands the importance of working together with the
government and society and has enlisted the CTG (Comisión de
Transito de Guayas) as a partner. One outcome of the partnership is
the installation of roadside signs in Guayas carrying messages such
as, “If you drink don’t drive”.
Peru
Subject
Skol Beats 2006
AmBev is a keen sponsor of Skol Beats, the largest electronic music
event in Latin America which annually attracts more than 60,000
partygoers. As in 2005, responsible consumption was a theme for
this year’s event. Stewards were on hand to provide information on
responsible consumption and to advise on the different means of
transportation available, which included free buses to take people
to the subway. Festival goers were entertained by a virtual game
which checked whether or not they were fit to drive. As beer was
available at Skol Beats a strict minimum legal age policy was
enforced to protect minors. After the event, 14 tons of recyclable
materials were collected and donated to the Vira Lata recycling
cooperative.
Pioneer in campaigns for responsible consumption
of beer in the market
39
Since the beginning of its operation in the Peruvian market, AmBev
Peru has been the pioneer in the development of campaigns for
responsible beer consumption.“If you drink, don’t drive” and “Beer only
for 18-year-old or older” have been the messages used in all advertising
material. These messages are promoted by attractive visual elements
such as giant beer cans, shirts and pins. Points of sale and local media
have been added as targets of the campaign.
Our Products
Venezuela
Subject
Promote responsible consumption through
advertising.
Promote responsible consumption through advertising.
In August 2006, AmBev Venezuela started its responsible
consumption and sales campaign. The company promotes
messages such as “Si tomaste, llama a un experto” (If you drink, call
an expert – a taxi) and “No vale disfrazarse… Cerveza sólo para
mayores de 18 años” (Don’t dress up… Beer for older than 18 only).
The campaign is aimed at the company’s points-of-purchase and
nightclubs in the main cities.
Customer Satisfaction and Privacy
AmBev’s Consumer Services Department (CSD) in Brazil is the
Company’s only area that has direct contact with consumers. Each
day, it receives around 1,500 phone calls and 300 emails. Seventy
percent of the consumers want information about the products’
composition and distribution, company events, information about
promotions and corporate data. Sixteen percent register claims; 10%
are looking for sponsoring or donations and 4% get in contact with
AmBev’s CSD to give their opinion. All information gathered is
organized by corporate function (Industrial, Sales, Marketing) and
used to improve products, processes and consumers’ satisfaction. In
2005 and 2006, AmBev received the award for best CSD in the
Beverages Industry from Prêmio Consumidor Moderno. This prize is
the most important customer relationship management prize in
Brazil. The CSD also carries out periodical customer attitudinal
surveys about its products.
AmBev’s policy offers a no-quibble exchange for any product (in
accordance with the Brazilian legislation). Any returned products are
analyzed so that the problem may be determined. All problems,
including those occurring in distribution and at point-of-purchase are
reported to the Quality Department for corrective action. They are
only used to improve the Company’s products and services and its
consumers’ satisfaction.
40
Advertising
AmBev’s Responsible Marketing
Product Information and Labeling
All beer and soft drinks packaging produced by AmBev show all the
necessary information required by law. Beer labels contain basic
composition information, alcoholic content and validity date, producing
unit, as well as guidelines on responsible consumption. Soft drink labels
contain basic composition information, nutritional table (nutrition facts),
validity date, producing unit.
On non-returnable packaging, the material used (glass, PET, or can) is
indicated by appropriate symbols as well as its recyclability
characteristics.
Marketing plays a fundamental role in the success of a free market
economy. Marketing promotes competition, allowing consumers to
choose between competing brands. AmBev has chosen to
communicate with its consumers in a responsible way, by
promoting the responsible use of our products. AmBev’s “Marketing
Code of Conduct” sets out the general principles and guidance in
this area. The Code is mandatory for all our operations, and is to be
applied in addition to laws, mandatory rules, or other self-regulatory
codes which may exist at a country level.
AmBev follows three voluntary self-regulatory codes on advertising.
For beer advertising, the Company follows, in Latin America,
Cerveceros Latinoamericanos’ Code and, in Brazil, Sindicerv’s and
CONAR’s (Council for Advertisement Self-Regulation and Ethics). For
soft drinks, in Brazil it follows CONAR’s Code
GRI Index
GRI Index
Economic perfomance indicators
EC1.
Net Sales
Customers
EC2.
Geografic Breakdown of Markets
Customers
EC6.
Distributions to providers of capital broken down by interest on debt and
Providers of Capital
borrowings, and dividends on all classes of shares, with any arrears of
preferred dividends to be disclosed.
EC7.
Increase/decrease in retained earnings at end of period
Providers of Capital
EC8.
Total sum of taxes of all types paid broken down by country
Public Sector
EC13.
The Organization’s indirect economic impacts
Indirect Economic Impacts
Environmental Perfomance Indicators
EN1.
Total materials use other than water, by type
Materials
EN2.
Percentage of materials used that are wastes (processed or unprocessed)
Solid Waste Management
from sources external to the reporting Organization
EN3.
Direct energy use segmented by primary source
Energy
EN17.
Initiatives to use renewable energy sources and to increase energy efficiency
Renewable Energy Sources
EN5.
Total water use
Recycling and Reuse of Water
EN20.
Water sources and related ecosystems/habitats significantly affected by use
of water
Water Sources and related Ecosystems/
Habitats significantly affected by Use of
Water
EN22.
Total recycling and reuse of water
Recycling and Reuse of Water
EN6.
Location and size of land owned, leased, or managed in biodiversity-rich habitats
Biodiversity
EN7.
Description of the major impacts on biodiversity associated with activities and/ Biodiversity
or products and services in terrestrial, freshwater, and marine environments
EN8.
Greenhouse gas emissions
Greenhouse gas emissions
EN11.
Total amount of waste by type and destination
Solid Waste Management
EN12.
Significant discharges to water by type
Wastewater treatment
EN14.
Significant environmental impacts of principal products and services
Products and Services
EN15.
Percentage of the weight of products sold that is reclaimable at the end of
Solid Waste Management
the products’ useful life and percentage that is actually reclaimed
EN16.
Incidents of and fines for non-compliance with all applicable international
Compliance
declarations/conventions/treaties, and national, sub-national, regional, and
local regulations associated with environmental issues
EN34.
Significant environmental impacts of transportation used for logistical purposes Transport
41
GRI Index
Social Performance Indicators
LA1.
Breakdown of workforce by country.
Employment
LA12.
Employee benefits beyond those legally mandated
Wages and Benefits
LA3.
Percentage of employees represented by independent trade union
Labor/Management Relations
Organizations or other bona fide employee representatives broken down
geographically OR percentage of employees covered by collective bargaining
agreements broken down by region/country
LA4.
Policy and procedures involving information, consultation, and negotiation
with employees over changes in the reporting Organization’s operations
Information, Consultation and
Negotiation with Employees
(e.g., restructuring).
LA5.
Practices on recording and notification of occupational accidents and
Health and Safety
diseases, and how they relate to the ILO Code of Practice on Recording and
Notification of Occupational Accidents and Diseases
LA6.
Description of formal joint health and safety committees comprising
Health and Safety Committees
management and worker representatives and proportion of workforce
covered by any such committees
42
LA9.
Average hours of training per year per employee by category of employee
Training and Education
LA17.
Specific policies and programmes for skills management or for lifelong learning
Training and Education
HR1.
Description of policies, guidelines, corporate structure, and procedures to deal AmBev’s Code of Business Conduct
with all aspects of human rights relevant to operations, including monitoring
mechanisms and results
HR3.
Description of policies and procedures to evaluate and address human rights
AmBev’s Code of Business Conduct
performance within the supply chain and contractors, including monitoring
systems and results of monitoring
HR4.
Description of global policy and procedures/programmes preventing
AmBev’s Code of Business Conduct
all forms of discrimination in operations, including monitoring systems and
results of monitoring.
HR5.
Description of freedom of association policy and extent to which this policy
AmBev’s Code of Business Conduct
is universally applied independent of local laws, as well as description of
procedures/programmes to address this issue
HR6.
Description of policy excluding child labour as defined by the ILO Convention
AmBev’s Code of Business Conduct
138 and extent to which this policy is visibly stated and applied, as well as
description of procedures/programmes to address this issue, including
monitoring systems and results of monitoring.
HR7.
Description of policy to prevent forced and compulsory labour and extent to
which this policy is visibly stated and applied as well as description of
procedures/programmes to address this issue, including monitoring systems
and results of monitoring
AmBev’s Code of Business Conduct
42
GRI Index
Social Performance Indicators
SO1.
Description of policies to manage impacts on communities in areas affected
Community
by activities, as well as description of procedures / programmes to address this
issue, including monitoring systems and results of monitoring
SO2.
Description of the policy, procedures/management systems, and compliance
AmBev’s Code of Business Conduct
mechanisms for Organizations and employees addressing bribery and corruption.
SO3.
Description of policy, procedures/management systems, and compliance
AmBev’s Code of Business Conduct
mechanisms for managing political lobbying and contributions.
SO7.
Description of policy, procedures/management systems, and compliance
AmBev’s Code of Business Conduct
mechanisms for preventing anti-competitive behaviour.
PR1.
Description of policy for preserving customer health and safety during use
Customer Health and Safety
of products and services, and extent to which this policy is visibly stated and
applied, as well as description of procedures/programmes to address this
issue, including monitoring systems and results of monitoring
PR2.
Description of policy, procedures/management systems, and compliance
Product Information and Labelling
mechanisms related to product information and labelling
PR8.
Description of policy, procedures/management systems, and compliance
Customer Satisfaction and Privacy
mechanisms related to customer satisfaction, including results of surveys
measuring customer satisfaction
PR9.
Description of policies, procedures/management systems, and compliance
Advertising
mechanisms for adherence to standards and voluntary codes related to
advertising
PR3.
Description of policy, procedures/management systems, and compliance
mechanisms for consumer privacy
Customer Satisfaction and Privacy
43
more on www.ambev.com.br