4. Values-Led Sourcing
Values-Led Sourcing
Values-Led Sourcing has been a hallmark of Ben & Jerry’s purchasing practices since our earliest days. We think business can work to make the world a better place, and we like to buy from suppliers who feel the same way. Some of the Values-Led Sourcing initiatives we’ve included in our purchasing decisions include suppliers with…
- Environmental commitments, such as carbon dioxide balancing from Superior Nut.
- Social vision, such as job training and community support from Greyston Bakery.
- Third party certifications, such as Fair Trade.
Click on each values-led supplier in the table below to visit their site.
In 2006, 49% of our raw material spend (i.e., ingredients, dairy, packaging) went to initiatives that we see as aligned with our values, compared to 55% in 2005 and 59% in 2004. The decline in the past three years is due almost exclusively to the falling price of milk over this period. Excluding dairy purchases, our VLS spend percentage has remained essentially constant over the same three years. The net result, however, is that even though our commitment to Values-Led suppliers has not waned, external forces have reduced the amount we’re spending on Values-Led Sourcing initiatives.
This situation has made it clear to us that we need better measures of the success and impact of our Values-Led Sourcing initiatives, beyond a simple percentage of our total spend. So in 2006, we embarked on a project to devise new metrics to measure the impact of many of our Social Mission projects, including Values-Led Sourcing initiatives. We anticipate that these metrics will paint a clearer picture of the benefits that we’re creating from our VLS efforts, and better inform our decisions about VLS going forward. Check back next year when we’ll roll out our results.
We also continue to seek a balance between our mission-driven desire to support forward-thinking suppliers and our need to keep costs down in our supply chain. A constructive tension between Ben & Jerry’s and Unilever’s North American Ice Cream (NAIC) has proven mostly successful in this regard so far. NAIC, which manages Ben & Jerry’s supply chain, keeps a sharp eye on costs, while Ben & Jerry’s continues to seek Values-Led suppliers who will create real social benefits and keep us aligned with our three-part mission. When we find solutions that satisfy both parties, we know we’re on the right track.
In 2006, for example, NAIC supply chain expressed concerns about the supply, quality, and cost of the unbleached Eco-Pint container that we used to package our ice cream. The Ben & Jerry’s team responded by presenting several options for alternative packaging that could answer these concerns, while still maintaining our commitment to environmentally responsible packaging. Together, and with input from Ben & Jerry’s board, we honed in on a solution that we think is in line with our values and good for our business. Learn more details about the change in our pint packaging here [LINK to 6.3.1].
Outside of our Values-Led Sourcing initiatives, all of the suppliers for Ben & Jerry’s ice cream are expected to follow practices consistent with the Code of Business Principles of our parent company, Unilever. This code includes: continuous improvement in managing environmental impacts, safe and healthy standards for workers, and a firm commitment to human rights, among other things. Unilever is also a signatory to the UN Secretary General’s Global Compact of 1999 which commits the company to support and respect human rights within our sphere of influence.
New VLS initiatives for 2007!
Transition to Certified Humane, Cage-Free Eggs
In 2006 , we made the decision to transition all of the eggs used in our U.S. ice cream production to Certified Humane Cage-Free suppliers over a four-year period, beginning in 2007.
Fair Trade Vanilla and Chocolate Ice Cream
Watch this video clip about Fair Trade |
We made plans in 2006 to convert the vanilla extract in our smooth Vanilla ice cream — and the cocoa powder in our smooth Chocolate ice cream — to Fair Trade Certified in 2007. For the last several years, we have purchased vanilla extract and cocoa powder for these flavors from other Values-Led suppliers, so the change won’t significantly increase our VLS spend or affect the number of our VLS suppliers. However, given the excellent track record and the growing consumer awareness of Fair Trade certification, we’re excited about the transition. We will continue to source all of the coffee extract used in our ice cream from Fair Trade sources, as we have since 2005.