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MANIFIESTO GRUPO BIMBO IN HEALTH AND WELLNESS “We at Grupo Bimbo are fully aware of the tremendous challenge of helping deal with the problems of overweight, obesity and diabetes that affect Mexican society today. We are convinced that the food industry must play an active role in joining forces with other sectors to positively impact the health of future generations. Through “Sembrando juntos,” our social responsibility program, we reaffirm our commitment to stakeholders and frame our initiatives under four pillars: Wellness, Planet, Community and Associates. The actions taken under this first pillar, Wellness, are part of a strategic initiative toward speedier compliance with the commitments we assumed before the World Health Organization in 2008, and range from improving the nutritional profile of products in our current portfolio and the development new ones, to introducing simplified labeling, responsible advertising for children, promotion of physical activity, and helping raise the awareness of costumers and the general public about health and nutrition. At Grupo Bimbo, we will continue to set clear and quantifiable objectives for the short and medium term that can guide our actions in helping solve the problems associated with poor nutrition and a sedentary lifestyle, through which we can become a local and global benchmark in Health and Wellness initiatives.” Daniel Servitje Montull Chairman of the Board and CEO, Grupo Bimbo The challenge of nutrition today All around the world, consumers today are demanding more products that are part of healthy lifestyles and eating habits. The problem of obesity and its consequences, as well as its co-existence—in many countries—with a serious lack of basic nutrition, poses the daunting challenge of developing that can to meet the varying needs of a market increasingly committed to this issue. Facing this challenge requires that all of us in the food industry, along with governments and society at large, join forces to develop products and tools that can help consumers achieve a state of greater health and wellness. Our Vision To be a leading company in health and wellness on a global level. Our Mission To offer our customers a wide variety of products that can be part of a healthy diet, and to promote healthy lifestyles and physical activity through brand strategies and quantifiable actions. Our Principles • Adherence to best practices in the countries where we operate. • Strict compliance with local regulation in countries where make and sell our products. • Strict quality standards based on international recommendations and scientific research. • Business results attained gradually but consistently. Our strategy: Sembrando Juntos for your Wellness 1 GOVERNANCE Grupo Bimbo Health and Wellness Model Executive Committee on Health and Wellness Information quality 2 GENERAL COMMITMENTS 5 Platforms Products Nutritional information Responsible marketing Promotion of physical activity Alliances and research Governance A) Grupo Bimbo health and wellness model B) Executive Committee on Health and Wellness At Grupo Bimbo, we have developed a global health and wellness model with a business vision, which helps us to define the strategies applicable to all of our product brands and categories in countries where we are present. This model is sustained by four lines of action, through which the strategy is managed: the nutritional quality of our product portfolio through reformulations and the development of packaging with clear, accessible nutritional information for our customers. At Grupo Bimbo, the health and wellness strategy is managed jointly with our Innovation and Corporate Marketing areas. Additionally, the company has a Health and Wellness Committee made up of representatives from the areas of Innovation, Corporate Marketing, Corporate Affairs, Personnel, Institutional Relations, and the technical and commercial areas of each of our Organizations. The Committee is headed by an Organization Director, who ensures the commitments assumed by the group are kept. The Committee meets on a bimonthly basis to review and report on progress toward annual goals. (ii) Brands and categories: Development of healthy C) Information Quality (i) Product portfolio: Actions focused on improving brands and product categories, as well as quantifiable actions to promote physical activity associated with brand strategies. (iii) Communication: Strategies for communicating and interacting with key stakeholders (consumers, governments, and opinion leaders) as well as alliances with research institutes. (iv) Social responsibility: Constant interaction with other Grupo Bimbo Social Responsibility pillars that are affected by our health and wellness actions (Community and Associates). The Internal Auditing area validates the company’s annual results before they are published in external reports. Furthermore, over the course of the year we commission specific audits of the progress reported within the Health and Wellness Committee by all of our Organizations. General Commitments Our commitment to nutrition goes back to the year 2005, when we publicly announced our internal program “Committed to your Health” which established a series of actions focused on improving our product portfolio 5 1 2 3 4 5 and promoting physical activity among our customers and associates. In 2008, we aligned our internal program with the “Global Strategy on Diet, Physical Activity and Health,” created by the World Health Organization (WHO). Concretely, this program consisted of: Overall platforms with various lines of action and medium - and long - term goals: PRODUCTS: Nutritional quality of our portfolio NUTRITIONAL INFORMATION: Clear and accessible information for our customers RESPONSIBLE MARKETING: Responsible advertising, primarily when aimed at children PROMOTION OF PHYSICAL ACTIVITY: Promoting the habit of physical activity and healthy lifestyles among our consumers and associates ALLIANCES AND RESEARCH: Strategic alliances 1 Products: Nutritional quality of our portfolio A)Improving the nutritional profile of our portfolio A diet based on reduced consumption of food high in saturated fats and sugars, as well as an ample intake of fruits and vegetables, accompanied by an active lifestyle, are among the principal measures recommended by the World Health Organization (WHO) and United Nations Food and Agriculture Organization (FAO) to combat chronic disease. Our commitment to offering products that meet customers’ needs while complying with global recommendations on the content of nutrients with a high impact on health is evident in the actions we take to improve the nutritional profile of our product portfolio: • Reduce nutrients with a negative impact on public sugars, saturated fats, trans fatty acids and sodium. health, like • Increase the content of positive ingredients and whole grains, fiber, vitamins and minerals, and others. nutrients, like • Develop new choices in our product portfolio with healthy nutritional profiles (especially in products aimed at children). • Detect nutritional deficiencies Our efforts to reformulate and innovate healthier products began in 2008. • Make these options more accessible By 2012, in vulnerable groups, and develop products that can help to cover those needs. by reducing prices and increasing availability. Additionally, we have a robust research and development platform that includes four innovation and nutrition centers for product development: one in Mexico, two in the US, and one in Brazil. These enable us to better understand our customers and continue innovating with a focus that is segmented geographically and demographically. 1 Group Bimbo had improved 1.700 products the nutritional profile of more than (20% of the more than 8,000 it sells) by reducing nutrients with a high impact on public health—fats, saturated fats, sugar and sodium— and developing 198 products with an improved nutritional profile. Products: Nutritional quality of our portfolio B)Nutritional Profiling System Our internal nutritional profiling system is a tool that our product innovation areas use to improve the nutritional profiles of our portfolio, either through reformulations or new developments. This internal evaluation system is based on: • Scientific evidence and international dietary guidelines. • Disqualifying content levels for certain nutrients that surpass the recommendations of international organizations. • A product’s nutritional rating is obtained by assigning base points and extra points: • BASE POINTS: Assigned for the content of nutrients with a high impact on public health, like fats, sugars and sodium, and positive nutrients like fiber, proteins, vitamins and minerals. A profile in which all of these are in optimum balance would earn a score of 100. • DISQUALIFYING LEVELS: Presence of undesirable levels of fats, saturated fats, cholesterol and sodium. The presence of any of these values prevents the profile from accumulating extra points. • EXTRA POINTS: These are earned for the addition of functional ingredients, prepared from fruits and vegetables, milk, and the elimination or substitution of natural components for additives. • 1 Based on the point score, products are grouped into various categories. C)Facing malnutrition The co-existence of illness attributed to malnutrition with those attributed to overweight and obesity is one of the most challenging public health issues among development countries (particularly in vulnerable groups, like children under 12). Children require balanced diets that permit an optimum development of their bodies. Many of them, however, living in poverty, do not eat or have limited access to foods that would give them a proper diet. As a result, their diets do not incorporate nutrients that are critical to their development and growth, like calcium, fiber, magnesium, vitamin A, B complex vitamins, Vitamin C and D, iron, potassium and zinc. A lack of sufficient micronutrients, the causes of which are complex and diverse, has been correlated with many chronic illnesses and in many cases this is due to insufficient consumption of foods rich in nutrients, like meat, eggs, fish, milk, fruits and vegetables. Products: Nutritional quality of our portfolio Deficiencies in micronutrients among some groups at risk, like children, pregnant women or the elderly, require dietary supplements to overcome. One of the most effective ways to meet the community’s health needs is to develop actions relating to the fortification of basic foods that are widely consumed, like bread and cereals, which in some cases require only a minimum change in consumer behavior. All of our products in the bakery category are fortified with vitamins and minerals, particularly cookies and cakes. In some cases we have developed products aimed especially at covering micronutrient deficiencies in groups at risk in specific regions of Mexico. One example of this is the addition of amino chelated iron to popular cookie products like animal crackers, Deliciosas and Canelitas in southeast Mexico, where the problem of anemia has worsened, primarily in rural areas. 1 The latest addition to our portfolio of products designed to cover specific deficiencies in certain segments of the population was in 2012 when we re-launched Bimbo White Bread, now with Actileche, accompanied by an attractive advertising campaign that publicized the benefits associated with consumption of this product. Actileche is an exclusive formula developed over the course of a year by our Research & Development area, together with the Salvador Zubirán National Institute for Medical Sciences and Nutrition (INNSZ), one of Mexico’s most prestigious national health institutes and the largest center for medical training and research in Mexico. With milk and vitamin A, white bread with Actileche provides critical nutrients like calcium, vitamin D, and a mix of B complex vitamins and minerals (iron, calcium, zinc, iodine and phosphorous) important for children’s growth and development. Products: Nutritional quality of our portfolio A) Bringing our products closer to customers We consider our ability to reach all corners of the world a competitive advantage, because it allows us to bring our products closer to our customers. We do so through more than 51,000 routes and more than 2.2 million points of sale, which represents the largest distribution network in Mexico and one of the largest in the Americas and the world. It is also important to come closer to customers with products developed to cover specific nutritional needs at all income levels, particularly among the poorest communities. That is why we have set ourselves the goal of establishing accessible prices in these developments and use popular, widely-accepted products as a vehicle to reach our customers. B) Our targets In order to work for concrete results in the medium and long term, Grupo Bimbo has established various goals for 2020 regarding the nutritional improvement of our portfolio: Reduce sodium by 30% in our leading bread brands, and by 15% in leading salted snack brands. Reduce sugars by 10% in the categories of Improvement in our portfolio of products aimed at kids under 12 through specific nutritional profiles. cookies, cakes and pastries. Development of at least two products with improved Reduce saturated fats by 25% nutritional profiles per country per year, in the better and healthy categories. in leading brands of cookies, cakes and pastries and 15% in leading salted snack brands. Elimination of trans fatty acids from our product portfolio. Development of at least two whole grain products per country per year. 1 Development of at least two products with health-positive elements per country per year. Development of one healthy brand or category per organization per year. Development of one product per region per year focused on meeting a specific nutritional need in vulnerable groups, making it access able at reduced prices. Products: Nutritional quality of our portfolio 2 Nutritional information: Clear, accessible information for our customers At Grupo Bimbo, we are convinced that educating our customers is the best way to bring about a change toward healthier lifestyles. Labeling, and particularly nutritional information, plays an important role in communicating essential information about the nutritional value and composition of our products. We are committed to increasing our efforts to provide consumers accessible and easy-to-understand nutritional information, to help them make healthier decisions when buying and consuming foods. A)Nutritional labeling policy Our commitments: Incorporate at least a minimum amount of nutritional information on our projects, detailing the content of nutrients most critical to pu-blic health in each portion (energy content, total carbohydrates, sugars, proteins, fats, saturated fats, sodium and any nutrient about which we are claiming some benefit). If this is not possible because of the size of the product and its label, we will make sure this information reaches our customers through other channels. Continue to fully abide by all laws and regulations regarding labeling in the countries where our products are sold. 2 Where there are no applicable regulations in force, abide by international regulations (Codex) or by the Grupo Bimbo will best practices of the many countries where we operate. Incorporate other information in addition to basic in simple and easyto-understand front labeling. nutritional data, Have our labels include a recommendation that consumers practice at least 30 minutes of physical activity a day, as part of our promotion of healthy lifestyles. Nutritional information: Clear, accessible information for our customers B)Front labeling In recent years, a number of ways to present nutritional information have been devised, all with the purpose of helping consumers make healthier decisions when it comes time to buy and consume food. One of these schemes is front labeling. This type of labeling is intended to complement the nutritional information already printed on the back of the food package, and make it more accessible for consumers. One of the most viable and widely-used form of labeling in the world is modeled after the US Dietary Guidelines for Americans (DGAs), which are designed to give a general idea of the values a food contains, compared to the established recommendations for health adults. C)Statements of nutritional and healthy qualities Grupo Bimbo’s system for front labeling requires the following: • A list of key nutrients: energy (calories), saturated fats, sugars and sodium. • Location of nutrients on the front panel to facilitate reading by consumers. • Content of key nutrients, referenced to the percentage daily requirement in the diet of the overall population. • Clear, relevant, legible and comprehensible format. • Factual information sustained by verifiable scientific information. • Applicable to all categories of foods and non-alcoholic beverages without exception. D)Our targets To include DGA-type front labeling on all GB products, where space permits, by the end of 2014. For Grupo Bimbo, it is important to clearly and truthfully communicate the nutritional and health benefits of our products. For this reason, we have a process of internal validation in which our priority is to sustain, according to rigorous scientific evidence, this type of statement. We are respectful of the regulatory framework applicable in countries where we are present and verify strict compliance with the defined guidelines for claims regarding any type of benefit in our products. In countries where there are no regulations on this matter, we adopt the best practices of the countries where we are present, or by international regulations like the Codex Alimentarius. 2 Nutritional information: Clear, accessible information for our customers 3 Responsible Marketing: Responsible advertising, primarily in advertising aimed at children A)Code of ethics in advertising At Grupo Bimbo, we are committed to truthful advertising campaigns that promote the strengthening of universal ethical values; which we understand to mean family unity, the physical and emotional integrity of the individual, respect for the universal rights of children, respect for the physically challenged, the elderly, and for people of other ethnic groups or social conditions. That is why we try to advertise our products on programs that reflect a positive focus on morals and on ethnic, religious or political tolerance. We want to avoid programs that polarize and discriminate, those that denigrate religious beliefs, political positions, or the values of the individual. B)Responsible advertising aimed at children under 12 Among the commitments assumed before the WHO, Grupo Bimbo has pledged to promote and ensure that advertising prepared for and aimed at children complies with the best practices of socially responsible advertising established worldwide. 3 Responsible Marketing: Responsible advertising, primarily in advertising aimed at children Much to the political attention seen in the international, regional and national spheres has been focused on marketing and advertising for food and beverages aimed at this public. With this in mind, Grupo Bimbo has assumed various commitments that encourage responsible advertising: • Compliance with Self-Regulatory Program for Children’s Advertising. • Assuming additional commitments, focused on developing nutritional profiles for products that are advertised to children, with the following goals: • Ensure that advertising prepared for and aimed at children is a helpful tool for health education. • Compliance with the requirements of international organizations, like the WHO, to include new lines that express an even greater commitment to children’s advertising. • The Adoption of Pledges, in which children’s advertising is closely linked to nutritional profiles based on scientific evidence backed by world-renowned institutes and organizations. 3 Responsible Marketing: Responsible advertising, primarily in advertising aimed at children C)Grupo Bimbo Pledge Advertising messages: Grupo Bimbo publicly pledges to develop advertising intended to promote Advertising messages: Grupo Bimbo publicly healthy lifestyles and eating habits among children pledges to develop advertising intended to promote under years ofand age, according the following healthy12lifestyles eating habits to among children principles: under 12 years of age, according to the following principles: • Advertising for products that represent healthy choices, on that nutritional profiles that • eating Advertising for based products represent healthy are consistent with global standards and based on eating choices, based on nutritional profiles that scientific evidence. are consistent with global standards and based on • • scientific evidence. Advertising for products that meet the required nutritional must that be meet developed in the Advertising profiles for products the required context of healthy lifestyles, through messages nutritional profiles must be developed in the that reinforce the idea of adopting: context of healthy lifestyles, through messages that reinforce the idea of adopting: • Healthy eating habits, consistent with local in consistent each country • criteria Healthy established eating habits, withwhere local our products are sold, and with international criteria established in each country where guidelines based scientific evidence. our products are on sold, and with international • • • • guidelines based on scientific evidence. Frequent physical activity. Frequent physical activity. Adherence to the established guidelines of the self-regulatory Adherence to the advertising establishedcode. guidelines of the self-regulatory advertising code. Colocación de producto (Product Placement): Bimbo seGrupo compromete no pagarnot o ProductGrupo Placement: Bimbo apledges medio dirigido principalmente a niños menores de 12 con or el fin de promover de dichos in años, programs editorial content la in venta any media that productos, a menos que éstos cumplan con los perfiles are aimed primarily at children under 12, for the purnutrimentales establecidos. pose of promoting the sale of those products, unless they meet the established nutritional profiles. Uso de Productos / Juegos Interactivos: Grupo Bimbo se Use compromete a no incorporar imagen de Product / Interactive Games: la Grupo Bimbo sus personajes o la de sus encharacters cualquier pledges not to incorporate the productos images of its juego interactivo (Wii, Xbox, Play Station, entre or mascots into any interactive game (Wii, Xbox,otros) Play dirigido niños others) menoresaimed de 12ataños, a menos Station, aamong children underque 12, los productos mostrados cumplan perfiles unless the products represented meetcon the los established nutrimentales establecidos. nutritional profiles. Publicidad las escuelas: Grupopledges Bimbo not se Advertisingen in schools: Grupo Bimbo compromete a no hacer publicidad de unless: productos en to advertise products in primary schools las escuelas primarias a menos que: • • The product meets the established nutritional El producto cumpla con los perfiles nutrimentales profiles. establecidos. • • school administrators for educational purposes Expresamente seaactivities solicitadothat por la administración or in relation to promote healthy de la escuela para objetivos educativos o con lifestyles, with the supervision of school relación a actividades que promuevan estilos administrators or parents. de vida saludables, con la supervisión de la administración dethere la escuela o de padres de In some countries are local official guidelines familia. on the sale of products within schools, and in these • • activamente buscar quetosus productos formen parte to pay or actively seek have its products included de programas/contenidos editoriales de cualquier D)Our targets • To limit advertising for children under 12 to products that meet the nutritional profiles defined for this public. Promociones: Grupo Bimbo publicitará únicamente Promociones: GrupoaBimbo publicitará promociones dirigidas niños menores deúnicamente 12 años en promociones dirigidas niños menores 12 años en aquellos productos queacumplan con losde perfiles nutriaquellos productos que cumplan con los perfiles nutrimentales establecidos. mentales establecidos. • Promote healthy eating and lifestyles to all of our advertising publics. • • To develop and advertise at least two new products that meet the nutritional profiles defined cases we pledge to abide by those guidelines on En algunos países existen lineamientos oficiales school advertising. locales para venta de productos dentro de las escuelas, en este caso se deberán acatar dichos lineamientos para poder hacer publicad dentro de la misma. Be socially and ethically responsible in our advertising to all our consumers, governed by the highest global standards in the field. for children under 12, per country, per year. 3 Responsible Marketing: Responsible advertising, primarily in advertising aimed at children 4 Promotion of activity: Promoting the habit of physical activity and healthy lifestyles among our consumers and associates We are firmly convinced that a healthy lifestyle can only be obtained through proper diet and the regular practice of physical activity, both of which are synonymous with wellness. According to data from the WHO, in developed and developing countries, sedentary lifestyles are considered one of the greatest risks to the population, many times associated with greater access to technology, lack of social spaces, the current pace of life, a shortage of time, or problems with crime in public places. Based on scientific evidence, the lack of physical activity is closely correlated with other risk factors like overweight and obesity; as well as problems associated with these, like dyslipidemia, high blood pressure, diabetes mellitus type 2 and heart disease. Because of this, there is a pressing need for effective strategies to promote the adoption of physically active lifestyles, and to improve and promote healthier eating. A) Promotion of physical activity and healthy lifestyles among our customers At Grupo Bimbo, with the aim of promoting healthy lifestyles, we have built up alliances and developed tools that enable us to be closer to our customers and thus to promote healthy habits, proper eating, and physical activity with tangible benefits. Through our website and social networks, consumers of our products and the general public have access to our platforms and general information about diet, wellness and health care, as well as the nutritional profiles of our products. We have a blog called “Con M de Mamá” aimed at mothers of children between 0 and 12, that carries articles about childhood nutrition, recipes for kids, and advice. 4 We traditionally participate in a broad number of activities relating to nutrition, physical activity and healthy lifestyles. We hold our own sporting events, like “Carrera Bimbo” and “Futbolito Bimbo,” and sponsor others in the various countries where we operate. Through these actions, we also promote family togetherness in our communities. Promotion of activity: Promoting the habit of physical activity and healthy lifestyles among our consumers and associates B)Encouraging consumption of fruits and vegetables To ensure a proper diet and access to critical nutrients and micro-nutrients, experts recommend the inclusion of fruits and vegetables in our everyday diet. Various public health programs, like “5 a day,” “Dietary Guidelines for Americans” and others, encourage and promote the consumption of these food groups by the general public, and stress their many benefits to human health. We at Grupo Bimbo understand the importance of encouraging the consumption of fruits and vegetables, so we have developed materials that are published electronically ad in print, recipes and meal plans, which are available through: • Grupo Bimbo’s Nutrition Website (www.nutriciongrupobimbo.com) • • • Health Conferences and Expos Internal Certification Program for Grupo Bimbo’s company dining rooms. Among the materials we have developed are the following: • Nutrition articles for the whole family: • Eating fruit can help you slim down. • • Benefits of fruits • 10 strategies to get kids to eat vegetables • What should I eat if I have inflammatory bowel syndrome? Meal plans: A fundamental aspect for including fruits and vegetables into people’s diets is teaching them where they fit in a general meal plan. We focus on providing attractive, delicious and healthy recipes for preparing fruits and vegetables. Grupo Bimbo’s Nutrition page has a section entitled “Meal Plans,” where users can find a tool for calculating nutritional recommendations by weight, size, gender, objective and physical activity. Users who access the page receive a personalized eating plan that meets with Mexico’s Eat Right Plate, meaning it includes an abundance and balanced variety of fruits and vegetables. 4 Additionally, at Grupo Bimbo we have a program called “Healthy Company,” which takes action to promote healthy lifestyles among our associates. One of the actions of this program has been the certification of Grupo Bimbo’s company dining rooms, in which the inclusion of fruits and vegetables on breakfast and lunch menus is one of the key requirements for certification. Promotion of activity: Promoting the habit of physical activity and healthy lifestyles among our consumers and associates C)Promoting physical activity and healthy lifestyles among our associates The physical and emotional wellness of our associates is a priority for Grupo Bimbo. We make an effort to encourage them and their families to adopt healthy lifestyles, through prevention programs. In the US, we developed programs like the Tobacco Cessation Program, which provides various kinds of support to help associates stop smoking, and the Healthy Focus Program, to develop training programs to deal with basic health problems. In Mexico, we have a number of initiatives to reduce the risk of developing or worsening chronic degenerative disease. These include a weight reduction program and an over-40 program, which together have benefited 65,000 associates. D)Our targets • To promote two measurable actions a year focused on encouraging physical activity or improving healthy lifestyles among our associates. • To certify healthy dining rooms at our plants, per region, per year. • To associate our leading brands with strategies linked to the practice of physical activity. To promote at least two measurable actions a year focused on encouraging physical activity or improving healthy lifestyles among our customers. 4 Promotion of activity: Promoting the habit of physical activity and healthy lifestyles among our consumers and associates 5 Alliances and research: Strategic alliances We understand that the problems associated with malnutrition have their origins in many causes, and that many different forces must come together to solve them. For this reason, we must seek out alliances with authorities, NGOs and civil society through which we can develop comprehensive programs to attack those problems at their root. • With non-governmental organizations, supporting various programs and actions focused on promoting healthy lifestyles. • With opinion leaders, jointly communicating with consumers on the benefits of healthy eating and an active lifestyle. • • With academic and research institutions, moving forward on the innovation of products and technologies that can enable us to offer products with substantially improved nutritional profiles. At Grupo Bimbo, we work to establish commitments and forge alliances with strategic participants: • 5 With governments, participating in and supporting the implementation of public health policies. Alliances and research: Strategic alliances