Wessanen and Organic

Why Wessanen believes in organic

Organic food is grown with the utmost regard for the environment, animal welfare, food safety and quality. The organic growing process also enhances biodiversity, contributes to soil fertility, reduces the carbon footprint and helps to lower the risk of antibiotic-resistant organisms.

To carry the label ‘organic’, a product must contain at least 95% organic ingredients. All organic products must clearly show on the label which ingredients are organic, and which are not.

Additionally, the methods whereby organic ingredients and products are farmed, grown and processed must adhere to stringent criteria such as a demonstrable lack of genetically modified organisms (GMO) and strict rules concerning pesticides, antibiotics, growth hormones and the welfare of animals.

Organic Expertise Centre

Created in 2012, the Wessanen Organic Expertise Centre (OEC) is a community of Quality, R&D and sustainability/CSR people within Wessanen sharing knowledge about organic. Its purpose is to support the Wessanen mission Healthier Food, Healthier people, Healthier Planet.

“Our conviction is that Organic is the ultimate sustainable food ..… taking care of the soil to improve its fertility”[1]

- Laurence Beck, Sustainable Foods Summit, Amsterdam, June 2015

Our OEC centrally aligns organic expertise and quality, resulting in a more integrated European approach and an exchange of best practices in relation to the quality of our ingredients, products and processes.

The OEC furthermore focuses on engaging our own people and help them to increase their knowledge on organic and vegetarian food.

It is also the driving force behind our sustainability strategy, the materiality assessment and defining all relevant KPIs.

What makes organic unique?

• All organic food is GMO-free (genetically modified organisms)
• Unique certification system
• No pesticides
• Strict rules on how animals must be cared for
• Strict rules on using antibiotics (just to cure!)
• Food colouring is prohibited
• Usage of additives and processing aids by food manufacturers is restricted
• No artificial fertilisers are allowed

Why UK consumers buy organic

Organic food products promote health and well-being, and also hold benefits for the planet and future generations. Interest in organic food and its importance is growing.

Nowadays, most consumers are aware of the relevance of organic food and its sustainable production methods. They perceive organic food as attractive, offering health benefits, a rich taste and good product quality.

Based on a large survey (by Leapfrog Research/Organic UK), the top three reasons for buying organic food are:

• healthier for me and my family
• fewer chemicals
• natural and unprocessed.

The real price of organic

Organic food is more expensive than conventional because it requires more man-hours and can lead to lower yields. However, we can consider that the price of organic food is a real price, as organic does not generate external costs to society.

Conversely, conventional food does not include external costs like:

– Water treatment, polluted by nitrates and pesticides;

– Subsidies paid to farmers to maintain their competitiveness on the market;

– Health expenses linked to certain farmers’ diseases caused by the use of pesticides as being recognised by the French institute of health and medical research INSERM.

Organic agriculture

“We believe that organic agriculture is the best way to achieve healthier food, healthier people and a healthier planet”:

• Healthier food because organic practices avoid the use of chemicals in agricultural production and transformation;
• Healthier planet because organic agriculture enhances practices which favour biodiversity, soil fertility and reduce pollution.

–Healthier people because farmers producing organic are not exposed to chemical pesticides, recognised as increasing the risk of cancers in the farming population;

Organic markets

Organic food has a long track record of growth. In 2014, the market growth was high single digit, with the European organic food market estimated at €24 billion. This is in line with the growth shown in recent years, although there are marked variations year on year per category and across the various European markets.

Wessanen strongly believes that this potential will remain significant in the long term. We are cautiously estimating mid-single digit growth in the medium and longer term with the grocery industry expected to be the main driver of future market growth. According to these projections, we expect the organic food market to double in size to €46 billion by 2025. By doubling in size, organic food would still represent just 5% of the total European food market.

The overall growth of organic food will continue to outpace that of conventional food products, contributing positively to the expansion of the European food market.

Value of Organic food market in Europe in 2014 was €24bn

2008 – Euros 18bn

2011 – 21

2014 – 24

2017E – 29

2020E – 35

2025E - 46

Wessanen NV’s 3^rd Annual Organic Day – 20^th September 2014

In September, we hosted our third annual Organic Day. This day is meant to further engage our people and to increase their organic knowledge. Close to 500 people shared a common programme, including guest speakers of the WWF at all sites.

Workshops were hosted to discuss and define areas to improve our sustainability performance and we all participated in a Pop Soup challenge to prepare a delicious lunch from discarded fruits and vegetables. These goods were obtained for example at the local market of Bijlmer in Amsterdam and the weekly fruits supplier at Saint Genis.

An internal quiz at all locations resulted in us donating 700 fuel efficient ovens to a WWF project in Madagascar.

[Source: Wessanen 2014 Annual Report]

EU Certification for Organic food

Organic food is controlled by a unique certification system that ensures it meets strict requirements. Since 2012, all organic food produced in the European Union must carry the EU organic logo. The methods whereby organic ingredients and products are farmed, grown and processed must adhere to stringent criteria. These include no use of GMO, no growth hormones as well as a restriction on the use of antibiotics, fertilisers, herbicides and pesticides. Only a few additives, processing aids and food colouring are allowed and there are strict rules concerning the welfare of animals.

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[1] (http://www.foodnavigator.com/Business/Organic-growth-What-drove-Wessanen-to-cut-90-of-its-revenue