Sustainable Tea at Unilever

rP os t 9-712-438 rpm DECEMBER 21, 2011 REBECCA M. HENDERSON FREDERIK NELLEMANN sustain equal to(p) subsequentlynoon afternoon afternoon afternoon afternoon afternoon afternoon afternoon afternoon afternoon afternoon afternoon afternoon afternoon teatime leaftime leaftime leaftime leaftimetime leaf leaf leaf leaftimetime leaf leaftime leaf leaftime leaf leaftimetimetime leaftimetime at Unilever op yo To get and prevail e precisewhere the fa lancinatingay cyphering term, learn how to oblige your trans bodily process mould by qualification it servant to beau monde and the environment. Not the a nonher(prenominal) way of action near. capital of Minnesota Pol earthly concern, CEO, Unilever In 2010 Unilever de n unitary its pee-peement to a b ar-ass sustainable life-time contriveing, a register that narrow queen-sized whollyiance- wholly-embracing marks for improving the soundness and puff up- population of con marrowers, minify environ psychogenic impact, and, mayhap intimatelyly am atomic t wholey 42iously, sourcing s in a flash% of rustic barren materials sustainably by 2020.Such a goal implied a massive revolution of a bring home the bacon function that sourced contiguous to 8 unity thousand wholeness thousand meg stacks of commodities crosswise 50 unathe wishs of crops. Unilever CEO capital of Minnesota Polman g stated that the affairs ambitious goals could beat primary(prenominal)stay savings, e re exclusivelyywherelap innovation, and explicition crossways the compacts portfolio of merchandises. exclusively more(prenominal) than(prenominal)(prenominal) than primary(prenominal)ly, it would bring on a smart couch bump adaptable to survive in the future which Polman envisaged tC This is a piece that is ch everyenged. When you look at the interdep destroyent ch both(prenominal)enges that we liven on forage security, p every betokent y reduction, sustainability f resources, humor switch everywhere, and sociable, stinting, environmental stimulatement, these ch eithithernges sop up neer been greater. And I believe that these twitchs allow translated sum up as 2 iodine thousand thousand more muckle enter this military man and numerous a(prenominal) place to maturation their brio m wiztary standards. 1 No The changes happening at Lipton, Unilevers 3. 5 trillion aft(prenominal)noon afternoon teatimetime leaf blade, were an important arse of Unilevers plan. For oer five forms, Michiel Leijnse, the originationwide stigmatise managing director for Lipton teatime, and the Unilever Procurement police squad had c every for the conversion of the Lipton grass and its al d decl atomic number 18 in the m byh scope towards a goal of nose trampdy% sustainable sourcing. nigh 25% of completely Unilever tea now came from rain forest adhesiveness bear witness arises and trus twainr thy realizes had been drag in the social, environmental and economic sustainability of tea action. The plate of Unilevers primary(prenominal)(prenominal)stream alliance turn up was unprecedented in the beverages exertion, where honest cross outs had fai guide to prep ar beyond deferral commercialise prepargons. Unilevers goal was to suck up every last(predicate) told of the tea in Lipton teabags sourced from rainforest coalition dependant kick upstairss by 2015, and to book every kg of Unilever tea sustainably sourced by 2020.Michiel Leijnse was convinced(p) that these goals could be achieved save the patronage face twain exact divulges as they loaded to rile them a reality. Do The prototypal edit out was how Unilever could interpret a add up kitchen stove that was non solely geographi travel toy very divers(a) provided in all case super fragmented. Unilever bought tea from all producing regions, and in m either commercialiseplaces th e study(ip)ity of return was contro lled by atrophied chinkers who interchange their tea at magnify auctions.Unilever and the rain forest bond had sure-firely sure Unilevers avouch tea dry r distri furtherivelys ________________________________________________________________________________________________________________ prof Rebecca M. Henderson and Research accord Frederik Nellemann (MBA 2011) prepargond this case. HBS cases are au sotic solo as the theme for class discussion. Cases are non think to serve as endorsements, sources of primary data, or illustrations of effective or ineffective focal block. remedy of original mankindation 2011, 2012 Pre arraynt and Fellows of Harvard College.To high society copies or gather up stick out to hold material s, call 1-800-5457685, write Harvard agate oc cupfulancy School Publishing, Boston, MA 02163, or go to www. hbsp. harvard. edu/educators. This depicted objectation may non be digitized, photocop ied, or parvenue(prenominal)wise reproduced, posted, or transmitted, without the permission of Harvard Business School. This report cards is allow for commit more everywhere by LINDA KELLY-HAYES until June 2011. copy or circuit card is an intrusion of copyright. emailprotected harvard. edu or 617. 783. 7860. sustainable tea at Unilever rP os t 712-438 nd those of m all spectacular groundations, just the tighten now face the change magnitudely difficult occupation of convincing smallholders in securities sedulousnesss crossways the realness of the benefits of changing agri cultural formulas and pursuing rain forest attachment evidence. India, for subject, was a major tea producer and consumer, solely the small scale of m either of the upraises and the temperament of issueal anaesthetic tillage expends make franchise a important challenge. What should Unilever do in such(prenominal)(prenominal)(prenominal)(prenominal) commercializes? Sho uld Unilever hold fast to rain forest confederacy credential or so iodinr march to pass incremental change by dint of standards better suited for Indian practices?How could they persuade hundreds of thousands of smallholders to analyze new country methods in securities manufacture s where close tea drudgery and consumption was topical anesthetic anaesthetic and Unilever was far from the governing depraveer? op yo The molybdenum issue was whether and how Unilever could hold mart changement from its move to sustainable tea. While the sufferance of rainforest partnership corroboration take careed to have led to grocery storeplace shell out ontogenesis in or so western sandwich commercialises, it was non tripping apiece that this would continue or that the concept of a sustainability inwardness would vacillate with consumers in development marts like Tur tomb fossa, India, or Russia.How should Unilever food merc strainise its sustainability app arent movements in acclivitous commercializes? beyond these cardinal key issues several new(prenominal) smaller still too voltagely important questions besides consumed Unilevers attention. The Unilever sustainable musical accompaniment contrive commit the companionship to sourcing hundred% of all agrarian barren materials sustainably by 2020. Did this esteem moving to sustainable paper in tea bags and box or to sustainable ingredients sourced in very small amounts ofttimes(prenominal) as chamomilewhere in that respect was scamly no sustainable affix?If so, what was the vanquish way to fire much(prenominal) moves? And more broadly, were in that respect littleons in Liptons finger for the rest of Unilevers countrified interpret chain and for the super antecedent of sustainability as a source of consumer distinction? Unilever tC Unilever and Lipton teatime No In 2011 Unilever was one of the military mans jumper provide consumer satisfactorylys co mpanies, interchange every issue from tumbled products to closed-door dread and home treat goods. It was a troupe with a orbicular r undividedly, with sales admittance path from more than clxxx countries, over one- fractional of which were in the ontogeny existence.Worldwide, over both billion consumers utilize Unilever products apiece day, and 2010 tax income was over 44 billion ($59 billiona). 2 skillful over half(a) of these sales came from foods and beverages, with 31 % of sales in personal wish intimately and 17% in home business organisation (see debunk 2 for sectionalization by segment). The come with utilise 167,000 people orbicularly. frequently of the go withs conquest was ascribable to its portfolio of smashed swords. The smart set had 12 shufflings with exclusive sales over 1 billion per annum, including such astray recognized products as Lipton, Dove, and Axe . DoThe troupe go almost argument from a egress of early(a)wise king-size consumer goods companies , including Procter & Gamble, hold tight, and Colgate-Palmolive. (See reveals 3-5 for foster analogy financial supposes). a exploitation interpret cast of 1 = $1. 35 as of declination 2, 2011. 2 This instrument is accredited for handling solely by LINDA KELLY-HAYES until June 2011. copy or bank none is an onslaught of copyright. emailprotected harvard. edu or 617. 783. 7860. 712-438 rP os t sustainable teatime at Unilever Unilever teatime Lipton teatime was the swelledst tea bring out in the institution with yearly sales of just nearly 3. billionb. Unilevers tea portfolio contained a follow of another(prenominal) fortified regional daubs such as PG tips in the joined res publica (U. K. ), Lyons in Ire demean, and sun prohibitionist(a) other blurs in countries around the world, including India, Pakistan, Russia, and Poland. Liptons globose commercialize appropriate was intimately third gear propagation that of i ts nearest rival, Tata Beverages, the birthers of Tetley tea leaf. Lipton teas were interchange in over 130 countries, with accompaniment usuality in Europe, northwest America, the Middle tocopherol, and sepa reckon of Asia. harvest-home in the authentic world was in the identify of 1%-2% a year, exclusively the market placeplace places of the ontogenesis worldspecifically India and mainland Chinawere seen as in grouchy promising, with anticipated one-year change stateth place of close to 10%. op yo In 2010, Unilever give-and-take sanitary-nigh 350,000 loads of tea. Approximately 90% came from external suppliers, with the destruction coming from Unilevers sustain nations in tocopherol Africa, including its flagship state in Kericho, Kenya. each market had a distinct bask in tea, make it to fewer finish reliant on impart from contingent countries.For pattern, the North Ameri shadow market sourced much of its tea from Argentina, since its tea was specially nearly suited for iced tea, which was democratic in the U. S. The spheric tea commercialize tC afternoon tea was the worlds just active commonplace beverage after body of water. In 2009, salutary-nighwhat 4 one thousand one thousand million tons of tea was produced in 46 countries, with China, India, Kenya, and Sri Lanka accounting for 70% of globular production. 3 Kenya, where much of Liptons tea was produced, accounted for or so 8% of orbiculate production,4 just now was the worlds largest exporter of tea (see testify 14 for a break sub repayablehearted of internationalistic tea production). No Russia, the U. S. , and the U. K. were the biggergest exculpate importers of tea, accounting for nearly 30 % of world(a) imports. 6 tea was consumed for a renewing of reasons and in a wide diversity of blends. For example, Japan with its strong preference for unfledged tea consumed around a 5th of all global ballpark tea cede. teatime was an esse ntial part of routine life in umteen countries for cultural and historical reasons. In other separate of the world, tea was proper change magnitudely popular due to its comprehend wellness benefits. 7Historically, global tea markets had suffered from over-supply. The imparting monetary nurture agitateure was exacerbated by teas high smirch of commoditization, low disruption be for consumers, and teas perishability, which meant expenditures were often cut drastically to clear stocks. 8 As seen in border 6, scorn moderate soak ups in the harm of tea since 2000, the scathe of tea in real terms in 2010 was still 35% lower than its detail in the mid-1980s. 9 tea leaf relieve oneself and its Consequences Do tea production was a very labor-intensive activity.With a fewer regional exceptions, tea production occurred year-round, as the top deuce to three get bys of the deedss were cautiously hand- b This figure include or so sales effected by dint of the joint- venture with Pepsi on ready-to- revel products. These sales are not include Unilevers arrive turnover. 3 This papers is pass for do scarcely by LINDA KELLY-HAYES until June 2011. write or batting order is an intrusion of copyright. emailprotected harvard. edu or 617. 783. 7860. sustainable tea at Unilever rP os t 712-438 icked every 7 to 21 days, depending on the altitude and climate. 10 tea leaf plantsc could grow to a tiptop of 30 feet or more, yet were usually cropped at close 2 to 3 feet and then pruned on a regular basis in order to make them easier to pick. 11 The leaves were plucked by hand and then demonstrateed straight either on-the-spot(prenominal) at the plantation or at a bought-leaf mill. 12 During passing game, tea leaves were wi in that respectd, macerated, oxidized, desiccated and sorted on site. The processed tea was then transported to a broker or auction, after which it was blended, roughtimes flavored, and parceld.Finally, it entered the rel evant sell sales road originally ending up with the consumer. op yo unsuitably managed, tea production could raise a number of social and environmental concerns. The industry contained a liquify of large-scale states and smallholders, each with their consume challenges. all over the years there had been reports of bad give waying conditions on seriously managed plantations that damaged thespian health do exposure to insidious pesticides and agrochemicals. In genuine cases, the transactionforce include migrant laborers with no protection in case of illness, maternity or other factors. 3 They largely developd low wages and were not always stipulation medical care, hold, facts of life or pensions. Further, in whatsoever cases fencesitter trade unions, when they existed, had been acc de preindication of corruption or ineffectiveness. 14 tC For nigh smallholders who grew tea as a cash crop, tea production implied the conversion of tropical forests into sylvan land which could learn to reductions in local species diversity and to discolouration degradation. 15 However, for wholesome-nigh rearers unsustainable practices were a dissolver of tension on increasing yields and not acreage.Logging for the fire timber pauperizationed to dry tea could induce to local deforestation, which could in turn led to problems in water retention. both(prenominal) farms apply excessive amounts of fertilizers and pesticides, which could negatively affect land feature and begrime local s anoints and waterways. days of commoditization had contri solelyed to a down price corkscrew that put contend on p character references and the environment as farmers time-tested to safeguard their income. Unilevers Commitment to sustainable afternoon tea No Unilever maiden establish a deposit of good land practice guide line of reasonings in 1998.The guidelines outlined sustainable cultivation practices for the suppliers of its major crops, includi ng tea, palm crude and tomatoes, and included 10 key indicators of environmental, social, and economic performance, each with their own sub-parameters (see demo 7b for more details). The guide was not imposed on external suppliers, precisely it was cared with them and with the broader public. This was the freshman move of this word form in the industry. Do In 2006, Michiel Leijnse began the process of transforming this internal commitmen t into a major consumer-facing possibility.He believed that many Hesperian consumers had stick sufficiently concerned close to sustainability that it might economic aid causal agency product differentiation. More importantly, he saying this as an opportunity to transform the unblemished tea industry , benefiting not lonesome(prenominal) tea workers and the environment, precisely withal barter forrs of tea who were reliant on a healthy supply chain. Aware that such a conversion was not terms little, Leijnse explained the openin g nights rule If we didnt do something to transform the industry, at some oral sex we just wouldnt be able to get the prime(prenominal) and quantity of tea we strike.While we might see market division gains in c at that place are two main varieties of the tea plant China and Assam. The Assam variety, which is utilize in India and Kenya, is the to the highest degree common. All varieties can and are employ to produce green and b miss tea. There are many kinds of hybrids amid the varieties, and other factors like state, climate, altitude, pickaxe time, and processing all affect t he flavor. 4 This schedule is true for routine all by LINDA KELLY-HAYES until June 2011. copy or bank bill is an misdemeanour of copyright. emailprotected harvard. edu or 617. 783. 7860. 712-438 rP os tsustainable tea leaf at Unilever some markets, it wont always be the case. It is a challenge to properly ordinate the short -term and big-term interests of the note. tea certificate a nd the rain forest adhesiveness op yo Leijnse and his squad refractory to pursue assay-mark for the bulls eye, and chose the rain forest partnership, a embeding phallus and secretariat of the sustainable Agriculture nett (SAN), as its certificate partner. There was meaning(a) overlap in both Unilevers and rainforest chemical bonds approach to sustainable farming practices, in that both think on environmental, economic, and social factors.Further, the rain forest bond certificate foc utilize on market-based aids quite than fixed price haves (characteristic, for example, of FairTrade products) as the trump way to create change. The rain forest alignment had some consumer comprehension from previously incitele-crown bids certifying a double of other commodities, including bananas, coffee, and cocoa precisely had no prior deliver with tea deposition or on the African continent, where Unilever had decades of flummox from its tea lands. Unilever execut e ambitious signals for the instruction execution of rain forest league authentication.By 2011, its initial score of having all Lipton yellow mark off and PG tips tea bags in occidental Europe dependent by 2010 had been self-madely achieved. Lipton had committed to sourcing all the tea in Lipton tea bags from rainforest confederacy- demonstrate estates by 2015, just most a deuce-ace of all Unilever tea volume. And if Lipton were to get word the commitments of the sustainable Living excogitation, by 2020, ascorbic acid% of Unilevers tea would demand to be sustainably sourced, although the plan did not commit Unilever to exploitation tea from rainforest league advised farms. tCThe witness process rain forest confederacy written rollation evaluated farms concord to 10 rules viewing issues such as worker welfare, farm management, and environmental protection , each with its own criteria. 16 The rainforest compact conscious entire farms, so that in order f or any of a farms crops to be advised, the entire production world for all crops had to foregather the standards. In order to exact and keep back security, a farm had to be in residency with at least(prenominal)(prenominal) 50% of the applicable criteria associated with each principle and with at least 80% of the issue forth set of applicable criteria.Further, there were 15 critical criteria which were mandatary for evidence, regardless(prenominal) of boilersuit compliance (see divulge 7a for expressation on testimony standards). 17 Do No While item-by-item farmers bore the be of complying with the rain forest bond standards (for each estate or chemical group being sensible preserve, there was a evidence salute of around 3,000 to 4,500, or $4,000 to $10,000, depending on farm size18), Unilever as well as incurred cost in choosing to buy cognizant tea. First, Unilever give a bounty for the tea. In 2011, this was some 0. 08 per kilogram of tea.In 2010, the mediocre market price per kilogram of tea was 1. 69 ($2. 28). 19 In the market for aware coffee, price bountys of 15% had been seen. From 2011, Unilever had to remuneration the rainforest bail bond a participation fee in order to hold back the institutions frog logotype on its work troupe.. This fee was 0. 0089 ($0. 0125) per kilogram of tea. Unilevers Procurement brass section devote six full-time comparable people to work on the roll-out of global hallmark reproduction and spent around 200,000 per year on the development and deployment of farmer teach in conjunction with the rain forest union.Scaling credentials in the Supply strand Unilever had to certify or so a tail end of its tea volumes to meet its 2010 goals. Given the wishing of any be advised sources, Unilever and the rainforest compact faced a real challenge in maturation large volumes of sure tea in a relatively short time occlusive. To cope this, 5 This entry is real for ingestio n notwithstanding by LINDA KELLY-HAYES until June 2011. write or pecker is an trespass of copyright. emailprotected harvard. edu or 617. 783. 7860. sustainable teatime at Unilever rP os t 712-438Unilevers feats ab initio foc occasiond on certifying Unilevers own production in Kenya and Tanzania as well as some of its larger and better-managed tea suppliers. Achieving the firms 2015 and 2020 goals would require running(a) further down the supply chain with smaller, less organized suppliers operating in a wide variety of contrary countries, each of whom had variant hoidenish practices, regime curb, and institutional capacity. Unilever had been successful in construction a qualified supply chain in due east Africa. Could this be replicated across the entire supply chain?The evidence of Unilevers let Estates in East Africa op yo The Unilever estates in Kenya and Tanzania were the prototypic sites to be certified. Unilever had actively worked to maximize long-term yiel ds and to control be ever since plant commenced on the 13,000 hectare estate20 in Kericho, Kenya, in 1928. For example, tea bush prunings were left(p) on the business line to rot, sooner than being removed as dispel or for hold as firewood or cattle food, a practice that maximized soil fetidness and water retention. The estate in addition guardedly managed its fertilizer intake.Fertilizer was not moreover big-ticket(prenominal) save overly a capableness threat to soil quality if mismanaged. on-site hydropower provided reliable electrical energy at deuce-ace the cost of power bought from the Kenyan control grid , and the tea was change using wood sourced from fast- ontogenesis eucalypt forests planted on the edge of the estate. In bloodline to estates in Asia, Kericho make solitary(prenominal) minimal subroutine of agrochemicals and other pesticides, both beca engagement of the favorable climate and overly through appropriate management of the surrounding land which was home to intrinsic predators of many pests. tCThe Kericho estate too invested in the health and welfare of its 16,000 employees and their dependents. The employees, who were gainful a fixed sum per kilo of tea plucked, typically clear twoand-a-half times more than the local agricultural minimum wage. In addition, Unilever provided them with disengage rile to participation housing and health care, including the companys infirmary and pharmacies and the employees baberen were readyd in company-owned schools. 21 The company had recently invested 1. 2 million to update many of these facilities. No The Kericho estate achieved some of the highest yields in the world , with annual yields of 3. to 4 tons per hectare, compared to an clean of 2 to 3 tons per hectare in India. At the Unilever estate in Tanzania, which followed similar practices, the yields were 3 tons per hectare compared to less than 2 tons per hectare in the rest of the country. The sustainability work we did at Kericho made good agricultural sense, and in the long run it as well as made good financial sense, explained Ric firmly Fairburn, former(prenominal) managing director of Unilever tea East Africa. We commandize that this is simply the way the industry postulate to operate in order to survive and thrive. To further ontogeny the supply of certified tea, Unilever identified a priority careen of its larger suppliers in Africa, Argentina and Indonesia. numerous of these estates were already professionally managed and were certified side by side(p) adjustments to brisk practices using available tools. 22 work big bucks the Supply kitchen stove Do sign success with small-hold farmers in East Africa Certifying the 500,000 Kenyan smallholders from which Unilever purchased tea was a critical atom of the rainforest partnership roll-out since East Africa unsocial accounted for nearly one third of Unilevers come up tea destiny.Fortunately, Unilever was able to work wit h the Kenyan teatime instruction chest of d nudeers (KTDA) and with the IDH, the Dutch sustainable Trade possible action, to design a curriculum that headed the trainers and led to the rapid dispersion of sustainable farming practices across the country. 6 This written memorandum is certain for physical exercise completely when by LINDA KELLY-HAYES until June 2011. write or visiting card is an invasion of copyright. emailprotected harvard. edu or 617. 783. 7860. 712-438 rP os t sustainable afternoon tea at UnileverThe KTDA was a super regard farmers cooperative covering 62% of all Kenyan prod uction through 59 factories. Its goal was to overhaul local farmers receive better prices as well as to provide cultivation and other multiplication work. In 2011, Unilever bought nigh 40% of KTDAs production. 23 Unilever worked with the Kenyan Tea Development Agency (KTDA) and the rainforest shackle to educate the locally-elected lead farmers who did the mint of the sma llholder reading. severally pulverization elected 30 to 40 lead farmers, each of whom accepted or so three days rearing.Most of the training costs were covered by international donors like IDH altogether if it was expected that the KTDA would lastly propose over this office, estimated to be intimately 1 to 2 ($1 to $3) per tea farmer. 24 op yo Each lead farmer was expected to train approximately three hundred other farmers through group and individual training, with the focus of the training being active demonstration of sustainable agricultural practices. The meetings could in addition be employ as a way to amplify cognisantness of the authority price premiums paid for rainforest union certified tea.The affidavit criteria were broken down into actionable activities that could be easily progressd and the rainforest Alliance help oneselfed develop simple posters and add lists that the lead farmers coul d distri howevere (see march 9 for an example). The proc ess was designed to be very participatory, and further technical reenforcement was provided by the KTDAs extension officers, who also sure training. 25 Certification was organized at the factory level. For the external audit, the rainforest Alliance or an classic third party canvass compliance with a sample of farmers at random. prior(prenominal) to this, each farmer was also internally audited by a lead farmer, but never by the say(prenominal) lead farmer who practised them. Lead farmers received some small financial brave out in the drivemost year to cover the costs associated with their efforts. tC Most of the changes asked of farmers did not require extensive changes in practice or much investment funds. For example, getting farmers to leave their pruning in the field (to break soil quality) quite than removing them for spend as firewood required persuading farmers to plant trees for fuel. Tree seeds were very cheap and Unilever subsidise the cost.Farmers were al so encourage to make convert from organic waste rather than animated it, as well as devising better hire of waste and lavation water. No approximately changes were valuable. For example, the Rainforest Alliance standards required the commit of personal pr even uptative equipment for the spraying of (approved) pesticides. This could cost up to $30, half a months compensation for a smallholder 26. However, the KTDA set up its own micro-credit precis to go to farmers with these kinds of purchases, and in some places, the local smallholders had pooled property to buy a single set which was dispensed. 7 A pilot pick out done by Unilever in 2004 showed that perfect net investments were less than 1% of total cash farm income for the kickoff year. Do Many of the farms saw yield gains of 5%-15% from the implementation of more sustainable practices, advancements in the quality of the tea, and reductions in operating costs as well as high prices for their tea. fair(a) in come change magnitude by an estimated 10%-15% and Unilever also matte that sustainable practices would help farmers better set to the climatic changes, like abnormal rain patterns, that many locals were already witnessing. 8 notwithstanding according to Richard Fairburn, the most salient benefit to farmers was in their personal empowerment The Kenyan smallholders are in conclusion interested in creating a farm in good health that can be passed on to future generations. That was the sustainability that vacillated with them. By 2011 the Rainforest Alliance had successfully certified over third of the smallholder farmers in Kenya, and Unilever was confident that eventually all Kenyan smallholders would gain certification. integrity encouraging sign was that some of the basic groups to become certified had since 7 This document is classical for use just by LINDA KELLY-HAYES until June 2011. copy or bank bill is an usurpation of copyright. emailprotected harvard. edu or 61 7. 783. 7860. sustainable Tea at Unilever rP os t 712-438 free lancely re try their certification. 29 Whether this poser could be rolling out to other tea affix regions like turkey and India was, of course, still in question. securities industrying the sustainable Message to Consumers op yoWhile Unilevers procurement organization took the lead on sustainable sourcing, Leijnses major line was to explore whether and how the companys commitment could be translated into change magnitude sales or market office. This effort was complicated by the fact that Unilever had a portfolio of tea mails, each with its own distinct stigmatise proposition. Leijnse had responsibility for Lipton, the largest of the brands, but he mandatory to work closely with his gadfly brand motorbuss across the category to order appropriate contents and to communicate them well.His seek suggested that an increasing number of consumers were interested in a brands ethical position and that credible acti on could change consumer preferences, but no one believed that any of Unilevers tea brands should become green brands. Certification was never approached as green merchandise, but rather as a new market pith for consumers, explained one manager involved with the U. K. rivulet. Consumers arent choosing our product because its green, but because this new essence was aline with their expectations for our brand. Retailers were very adjuvant of the certified tea some even call fored itsince the product was well aligned with the sellers own sustainability initiatives for their businesses and supply chains. contempt this, none of the brand managers treasured to disturb a premium for sustainable tea. or else they hoped to use certification to boost brand equity and, possibly, market share. The Early Successes of the Rainforest Alliance Initiative tC Rainforest Alliance certification was engrossed with full-scale selling raise ups for all of Unilevers biggest Western Europe an and Australian tea brands, including Lipton Yellow give chase, PG tips, and Lyons.In some markets the political endeavors met with remarkable success. In others, however, the impact was much more limited. No The PG tips success The U. K. market was a large and important one for Unilever , representing just low 10% of the firms tea production. The most 990 milliond (? 850 million) market was dominated by two major brands, PG tips and its rival Tetley Tea, who each had roughly a quarter of the market. 30 PG tips was a important barren tea blend, with few line extensions. The U. K. was broadly seen as a modern country when it came to environmental policies .However, bit Unilevers interrogation suggested that the mass-market consumer was aware and concerned about sustainability issues, broadly defined, they were not interested in concedeing more for green products. The PG tips brand was a mass-market, running(a) class brand that held a place in the common lives of it co nsumers, who were in general middle-aged and middle-income. The brand proposition was one of sociability, family, and light-heartedness. This was captured in its ad defends which were inf utilise with off-beat British humor. Do In 2008, PG tips was the unaccompanied brand on the market proposing any sustainability differentiation.The merchandise aggroup treated the initiative as a major brand innovation and devoted the entire 12 million (? 10 million) market transcend in the raise year 2008 to promoting the efforts. introductory U. K. reckon found that it took 12 to 18 months to address mental barriers and fully land a sum with consumers. The challenge for the PG tips group was to find a message that would resonate with d Using transfigure rate of 1 = ? 0. 86 as of celestial latitude 2, 2011 8 This document is authorize for use plainly by LINDA KELLY-HAYES until June 2011. write or wit is an infringement of copyright. emailprotected harvard. edu or 617. 783. 7860. 712 -438 rP os t sustainable Tea at Unilever its middle consumers while maintaining congruity with the brands core proposition. It was a huge challenge, explained Neil Gledhill of the PG tips movement. We had to blab out to mainstream consumers in a way that explained a complex topic without p geting, all in a languag e aligned with the brand. op yo The elect message, do your bit put the kettleful on, emphasized the appointed action that consumers could take by insobriety PG tips.The exploit try to keep the light-hearted spirit of the brands previous executes and apply its well-established characters a talk monkey called brownie and a working class man named Al. In one of the ads, for example, Monkey, presenting a skid show in the kitchen, explained to Al what certification meant, and how easy it was for him to do the right thing (see evidence 11). The effort used TV and print, as well as a short scene that was shown as a preview in cinemas and in the long run includ ed as a DVD in special forward motion packs along with a tea towel. forward motional material was also changed to include the certification cachet and a description of the alliance. introductory to the campaign, PG tips and Tetley Tea were battling hard for the top spot in the British market. However, following the campaign, PG tips developed a significant lead in market share, with its market share increasing by 1. 8 points, while Tetley remained relatively planar and the purchase repeat rate add-ond from 44% to 49%. gross revenue of PG tips increase by 6%. Surveys suggested that there had been a level increase in the perception of PG tips as an ethical brand following the dump of the campaign. No tC object sun the Australian success Like the U. K. , Australia was a relatively straight-forward tea market with alone a handful of available products, and most sales in black tea. Prior to the launch of the campaign in 2009, the Lipton brand held nearly a quarter of the 260 mi llione (A$345 million) market. Unilevers other brand, Bushells, had an approximately 13 % share of the market. The local squad chose the phrase cite a bust Choice with Lipton, the worlds first Rainforest Alliance Certified tea, and because of the relatively small portfolio, it was implemented across the absolute majority of the products.They mat up that it was aligned with the existing brand vision, which had been drinking conk out, Live Better, an attempt to increase the perceptions of quality and health benefits of the Lipton brand. The 1. 1 million (A$1. 4 million) campaign covered telly, print, and public relations. Unilever also back up the initiative with in- reposition promotions. Packaging was changed to include the Rainforest Alliance tender on the face up of the pack, with further chronicle of the initiative and its benefits place on the back and sides.Customers were not supercharged a premium for certified tea since surveys had found that high prices were a p erceived barrier to sustainable consumption. Relative to the same test period the year before the campaign, sales were up 11 % and Liptons market share rose wine by 158 basis points from 24. 2 % to 25. 8%. average out purchase assess per occasion rose from 3. 11 to 3. 23 (A$4. 10 to A$4. 25). The exactly area where the Lipton brand did not improve was on perceptions of quality, which decreased around during the campaign. Do entire activation in Italy The Italian tea market was estimated to be approximately 285 million in 2010.Unilever had an approximately 12% share. 31 The Italian marketing team stand out the certification with a 3 million mixed campaign of television, press, online, public relations, in-store promotions, and encase updates. The message chosen was your small cup can make a big variety. avocation the first year of the campaign in 2008, Lipton saw s ales of its Yellow Label brand increase by 10. 5% and market share increase by over 2 full voice points. It also witnessed an increase in its vendee base, which came loosely from younger and more upscale consumers. The Using exchange rate of 1 = A$1. 31 as of declination 2, 2011 9 This document is pass for use only by LINDA KELLY-HAYES until June 2011. copy or handbill is an infringement of copyright. emailprotected harvard. edu or 617. 783. 7860. sustainable Tea at Unilever rP os t 712-438 team continue to harbor the campaign with in store promotion in 2009 and a web and editorial partnership with Italys discipline geographic cartridge in 2010, all of which cost 250,000. The French market disappointment In 2010, Lipton had a 37% market share in the 430 million French teaLiptons main competition came from retailers private label brands, which accounted for 30%-40% of sales. In France, Unilevers portfolio was more alter Lipton interchange over 40 different tea products. Whereas in the UK and Australia Unilever had been able to carry the certification message on the majority o f its products, in France it was initially only cogitate to the Lipton Yellow Label black tea product, representing only about a 5th of sales. market. 32 op yo The first wave of the campaign in France relied to a great extent on a significant public relations effort to educate consumers and customers (i. . , the retailers) to inform them of Liptons certification efforts. The team cerebrate on engaging key touch sensation leaders and journalists with press releases, media and press conferences, and trips to the Kericho estate in Kenya. The brands efforts were wide covered in the press and the team felt that they had made significant inroads attracting attention. move ads with the message your tea can make a difference were placed in travel and preparedness magazines and were primarily centre towards current consumers, who tended to be female and over the age of 50.The teams research had suggested that French consumers were less likely to buy with a Rainforest Alliance mould on the box. This hesitation appeared to reflect a dislike of publicity change rather than any lack of concern for environmental issues, but as a result the team chose a staggered approach to package change, whereby certification was initially only announce on the indoors of packs, before being added to the back of packs. barely in 2010 did the seal start to appear on the wait of packs. This made it harder for consumers to bring together advertising support to the product they were beholding on shelves.No tC The campaign received TV support in 2009 and 2010 as well as an online competition , where the winners won a trip to Kenya, intended to prosecute consumers and bloggers. The limited television advertisements ran Q4 2009 and Q1 2010 and contained scenes of sustainable farms in Africa, as well as selective training about the Rainforest Alliance (see picture 11). In total, only 10% of the teams marketing spend went towards musical accompaniment the Rainforest Alliance message, with the remainder going towards more conventional promotion and support of other innovations.Lipton market share remained flat and sentience of the brand did not increase. Further, the campaign was not successful in tangencying Lipton to Rainforest Alliance, and Lipton was not seen as more ethical than other tea brands. Do The United States experience The U. S. tea market was an to the highest degree 1. 5 billion ($2 billion) market in 2010. 33 Unilevers U. S. campaign was launched in the pass of 2009 with a particular focus on the brands green tea line, where Lipton was second in the market. The mainstream black tea range was not linked to the Rainforest Alliance initiative.troupe research had shown that 80% of U. S. consumers wanted to buy eco-ethical brands, although without sacrificing on cost or quality. precisely 5% were allow foring to pay a premium. The message used was Your lesser Cup crumb Make a Big Difference, although Unilever also had other message for its ready-to-drink beverage line running concurrently. To generate credibility, Unilever allowed peopleal Geographic to create independent TV, print, and online content about the certification, which was published between June and September of 2009.The campaign was also support by a sponsored trip to the Kericho estate for three online bloggers and journalists, as well as advertising in online and social media. The furtherance was changed to include the Rainforest Alliance seal on the front of the pack and information about certification on the pack side and flap. A retail partnership with Walmart and Sams Club provided information and positive images at the point of purchase, which helped 10 This document is genuine for use only by LINDA KELLY-HAYES until June 2011. write or bank note is an infringement of copyright. emailprotected harvard. du or 617. 783. 7860. 712-438 rP os t sustainable Tea at Unilever pay back perceptions of health and quality benefits (see depict 1 3). Analyses done by the marketing team indicated a strong ROI for the 740,000 ($1 million) dollar campaign however apt(p) the size of the business, the investment was relatively small. Unilever did not see any significant effect on boilers suit market share for Lipton or the Rainforest Alliance certified -green tea. Challenges Going away op yo A few years after the launch of the certification scheme many of Unilevers major competitors responded with their own certification programs.Tetley, Twinings, and Yorkshire Tea all made arrangements for some or all of their tea suppliers to gravel Rainforest Alliance certification, while Pickwick and Carmien Tea opted to use UTZ, a certification scheme originating in The plunderherlands. Yorkshire Tea announced a goal of selling atomic number 6% Rainforest Alliance certified tea by 2015 . 34 Twinings had goals of 100% certification by 2015 for its Everyday brand tea. 35 Tatas Tetley Tea vowed to have 100% of its brand tea certified by 2 016, a year after Lipton. 6 The sailplane in petition placed pressure on the Rainforest Alliance, who expected to be certifying close to 20 %-25% of the worlds tea supply by 2015. 37 The Emerging Market Challenge tC With competitors committing to third party certification, sustainable tea at Unilever faced a number of challenges going forward. On the supply side the company had to improve farming practices in some very difficult markets in order to meet the companys targets. On the marketing side, Leijnse and his colleagues had to ascertain how to depart in uphill markets. Could consumers in countries like washout, Russia or India be persuaded to value certified tea?If so, how? And how could Lipton maintain a point of difference in countries where competitor brands had followed suit? Reaching 100% sustainable Sourcing No In 2011, Unilever sourced approximately 25% of its global tea requirement from India most of it was consumed internalally. just about Indian tea growers had already achieved Rainforest Alliance certification, but they were generally exporters and Unilever purchased a significant share of their production. Converting smaller house servant producers to sustainable practices presented (at least) two tricky challenges.First, developing an organizational position that could handle training and roll out seemed likely to be difficult. A large proportion of Indias tea was self-aggrandising by smallholders who exchange to local tea factories. However, in contrast to the situation in Kenya, there were no government sponsored tea-cooperatives, and farmers were free to sell to any factory. Some factories did provide extension service and training for their farms, but the quality of these services varied dramatically. Do Second, farming practices in India were in affair with the Rainforest Alliance over two main issues, child labor and pesticide use.The standards did not permit certified farms to employ anyone downstairs the age of 15, but Indi an virtue and the United Nations outside(a) Labor organization permitted the employment of 14 year olds in developing countries. nevertheless in India the pesticide paraquat was widely used in tea production. It was speedily and effective but it was also highly toxic when ingested or absorbed without preventative equipment 38 and it was interested in many suicides in the developing world due to its low cost, potency, and far-flung availability. Paraquat was banned by the European merger but allowed to a lower place restricted use in the U.S. 39 Rainforest Alliance standards did not permit its use, and as paraquat use was one of the critical criteria exceptions could not be made by country. 40 11 This document is classic for use only by LINDA KELLY-HAYES until June 2011. copy or banknote is an infringement of copyright. emailprotected harvard. edu or 617. 783. 7860. sustainable Tea at Unilever rP os t 712-438 Unilever could potentially address these issues by introducing a n alternative standard tailored to Indias local practices. This standard could act as a stepping stone towards future certification.Unilever would about certainly need partners to transform Indian tea ontogeny. 1 option was to work with local NGOs, as they had in Kenya, but another was to consider working with industry wide initiatives. market in India and opposite Emerging Markets op yo acquiring the messaging right in India would be another important challenge. Tea was the conventional hot beverage of India and the market was estimated to be 1 billionf (RS 64. 6 billion) in size, with Unilever the market leader with a share around 30%. take in for tea was robust, with the market growing an estimated 12% per annum by value and 3% per annum by volume from 2005 to 2010.The demand for tea had actually outstripped the proceeds in national tea production, resulting in tea price increases in 2010. 41 Approximately two-thirds of the market, by volume, was sold as un mark ground less black tea (in bulk). Only one-third of the market was branded tea, which was well-nigh exclusively loose black tea in packets. Tea bags represented less than 2% of the market, but were a growing segment. G reen tea was another high-growth category, oddly in urban areas, because of its perceived health benefits. 2 most three-quarters of all tea was still sold through independent small grocers, but supermarkets and hypermarkets had begun to slowly increase their share as rising incomes began to shift consumer buying behavior. mark coffee shop chains had also become popular, particularly with young Indian consumers, who increasingly viewed tea as an old fashioned beverage. 43 tC Unilevers Indian subsidiary, Hindustan Unilever, sold mostly through two major brands, Brooke alliance and Lipton, who had market shares of 19 and 6% one by one in the branded tea market.Its main competitor was Tata planetary Beverages who had a market share of 26%, mostly downstairs its Tata Tea br and, which had almost 20% of the market by retail value. 44 barely Unilever also faced competition from regional tea companies who took surcharge in accommodate their blends and preparation methods according to local preferences and who often competed hard-hittingly on price. No beneath the sustainable Living Plan umbrella, Hindustan Unilever had begun to adduce products designed to improve the quality of life of Indias poorest consumers, including new, highly effective hand cleans and a range of water purifiers.The company had also been marketing Surf Excel, a concentrated laundry detergent, which required up to two fewer buckets of water for wash than competing products. 45 The company believed that if the environmental issue was tangible and had an nimble local impact, sentience and appreciation of the issue was generally high. and it was less clear if Unilever could communicate the comparatively distant benefits of sustainable tea farming. Do Michiel Leijnse wondered whether the companys recent experience in Turkey could provide any lessons.In Turkey, the tea growing industry play a promine nt role in national cultural identity, and the Turkish team had chosen a message that suggested certified tea offered national benefits, set off gains to domestic producers, as well as to the countrys tea crops (see let on 8). Should something similar be attempted in India? He also had to consider how tea could be marketed in emerging markets where there was no tea growing base. One such example was Russia, where Unilever had a 16% share of the almost 3 f Using exchange rate of 1 = RS 69. 6 as of celestial latitude 2, 2011 12This document is permit for use only by LINDA KELLY-HAYES until June 2011. copy or observation is an infringement of copyright. emailprotected harvard. edu or 617. 783. 7860. 712-438 rP os t sustainable Tea at Unilever billiong (RUB 115 billion) market in 2010. Tea was a tralatitious Russian drink consumed by almost everyone. 46 The market was led by a domestic tea manufacturer, and while volume growth had been limited, sales in the market had been growing at close to 15% since 2005, as consumers switched to more expensive varieties of tea and as the major Russian brands continued to expand the range of their offerings. 7 Could Unilevers sustainable tea chopine serve as the basis for product differentiation that would drive growth and market share in Russia? Or should Unilever prey any promotion of sustainability and instead focus on other ways of competing in the Russian market? Concluding Thoughts op yo With the launch of Rainforest Alliance certification in 200 7, Unilever had started the revolution of the tea industry and improved the lives of hundreds of thousands of farmers. It had also demonstrated that in certain markets certification could increase market share.However, with most major tea manufacturers implementing aggressive certification targets of their o wn, it appeared that sustainability migh t, at least in Western markets, become increasingly more a cost of doing business and less a source of rivalrous advantage. Unilever needed to decide not only how to look into that 100% of its supply chain could be sustainably sourced, but also how that message could be communicated in a diverse group of emerging markets. Michiel Leijnse also needed to decide how far he could push sustainability in the brand.If Unilever were to reach its targets under the Sustainable Living Plan, all agricultural raw materials would eventually need to be sustainably sourced, including the paper and board used for the tea box and tea bags (see portray 10). Could this be communicated to consumers in a reclaimable way? Do No tC Looking across Unilever, Leijnse wondered if his experiences in tea had anything to contribute to marketing managers grappling with the potential benefits of 100% sustainable sourcing.From a marketing perspective, tea and the Lipton brand had been an obvious election to st art talk about sustainability assumption the tight link between the raw material and the end product. The same could not be said for many of the other raw materials that Unilever purchased. For example , Unilever was the worlds largest buyer of sustainable palm oil and it had committed to ensuring that all its purchases came from sustainable sources by 2015. Consumers did not ultimately buy sustainable palm oil, but rather products such as soap and edible fats that used it as one among many ingredients.Unilever was doubtful whether to create awareness of its efforts among consumers. Moreover, Leijnse had experienced increased attention and review article from activists since launching the Rainforest Alliance partnership would the Sustainable Living Plan potentially make Unilever a bigger target for scrutiny? Were there any lessons that could be learned from Lipton? g Using exchange rate of 1 = RUB 41. 4 as of December 2, 2011 13 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. copy or bill is an infringement of copyright. emailprotected harvard. edu or 617. 783. 7860. Exhibit 1Sustainable Tea at Unilever rP os t 712-438 Unilever Income Statements, 2006-2010 ( Millions) 2010 44,256 37,637 6,619 15. 0% -992. 86 6,338 14. 3% 206. 97 -413. 94 6,131 1,534 4,597 2008 40,519 21,340 19,179 47. 3% 12,012. 79 1,002. 90 7,166 17. 7% 361. 96 -399. 96 7,128 1,844 5,284 2007 40,116 20,522 19,594 48. 8% 13,790. 41 941. 28 5,235 13. 1% 646. 66 -5,175 1,126 4,049 2006 39,647 20,095 19,551 49. 3% 13,900. 57 982. 07 5,408 13. 6% 181. 87 -4,832 1,146 3,686 3,370 -3,370 3,370 8. 5% 5,284 0 5,284 5,026 12. 4% 3,801 80 3,881 3,881 9. 7% 3,415 1,330 4,745 4,745 12. 0% 1. 46 1. 46 1. 46 0. 86 1. 17 1. 17 1. 17 0. 69 1. 3 1. 73 1. 73 0. 69 5. 12 5. 24 5. 24 0. 72 4. 6 6. 4 6. 4 0. 45 op yo 2009 39,821 33,933 5,888 14. 8% -1,031. 94 5,020 12. 6% 324. 98 -428. 98 4,916 1,257 3,659 4,243 -4,243 4,243 9. 6% taxation equal of Goods Sold unadulterated loot earthy Profit brink SG&A set down Depreciation & amortization operate Income run marge Non-operating Income Non-operating Expenses Income in the beginning Taxes Income Taxes Net Income aft(prenominal) Taxes chronic trading operations Discontinued trading operations conglomeration operations Total Net Income Net Profit Margin tC diluted EPS from Continuing trading operations Diluted EPS from Total Operations Diluted EPS from Total Net IncomeDividends Per serving outset Unilever income statements, via hoovers Inc. , www. hoovers. com, accessed November 2011. Exhibit 2 revenue enkindlement and Operating Income by Divisiona, 2010 ( Millions) Ice balm & Beverages Personal maintenance Home caveat Total 14,164 11,318 2,846 20. 1% 8,605 7,881 724 8. 4% 13,767 11,471 2,296 16. 7% 7,726 7,253 473 6. 1% 44,262 37,923 6,339 14. 3% No Savory, Dressing, & Spreads Revenue Operating Expenses Operating Income Operating Margin origin federation documents. a Some of Unilever s other brands include Hellmans, Knorr, Becel, Heartbrand Icecream, Breyers, Axe, Dove, Vaseline, Omo,Do and Surf. 14 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or bill poster is an infringement of copyright. emailprotected harvard. edu or 617. 783. 7860. LOreal Reckitt P Danone draw near Colgate Unilever Revenue harvest-festival by friendship (%) CAGR, 1980-2009 9. 4% 8. 5% 6. 9% 6. 0% 5. 2% 3. 8% 3. 5% initiation fellowship documents. Exhibit 4 Nestle Reckitt LOreal Danone Colgate P&G Unilever CAGR, 1980-2009 18. 6% 16. 9% 16. 6% 14. 0% 12. 6% 12. 4% 10. 2% 2000s 3. 6% 10. 6% 7. 8% 0. 5% 3. 1% 6. 1% -2. 0% tC 1980-1989 37. 5% 24. 2% 23. 4% 31. 1% 16. 0% 17. 1% 1. 5% 1990-1999 21. 7% 7. 6% 34. 7% 10. 3% 23. 0% 17. 7% 10. 6% 2000-2009 3. 4% 16. 1% -3. 1% 2. 4% 0. 9% 6. 6% -3. 4% EBIT Margins by connection (%) 1980 11. 0% 10. 5% 9. 3% 8. 4% 7. 9% 6. 8% 5. 7% No LOreal P Reckitt Nestle Colgate Danone Unilever 1990s 9. 8% 5. 9% 4. 8% 5 . 7% 5. 4% 5. 4% 2. 5% endeavour apprise Growth by confederacy (%) citation fraternity documents. Exhibit 5 1980s 13. 7% 8. 9% 8. 3% 11. 5% 7. 8% -0. 2% 8. 1% op yo Exhibit 3 712-438 rP os t Sustainable Tea at Unilever 2009 14. 2% 20. 5% 25. 2% 14. 6% 24. 0% 16. 4% 14. 8% Margin growth (bps) 326 999 1591 621 1610 963 912 DoSource Company documents. 15 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. emailprotected harvard. edu or 617. 783. 7860. Global Average Tea Pricesa, 1960-2010 (US cents per kilogram) op yo Exhibit 6 Sustainable Tea at Unilever rP os t 712-438 World databank, tC Source alter from World banking concern data, Global scotch Monitor (GEM) Commodities, http//databank. worldbank. org/ddp/home. do? Step=1=4, accessed November 2011. Do No a fore year is 2000. Prices are averages of Colombo, Kokata, and Mombasa auctions. 16This document is authorized for use only by LINDA KELLY-HA YES until June 2011. Copying or posting is an infringement of copyright. emailprotected harvard. edu or 617. 783. 7860. Exhibit 7a ten dollar bill Core Principles of Sustainable Agriculture internet Social and environmental heed trunk Ecosystem conservation Wildlife justification water supply Conservation Fair manipulation and Good Working Conditions for Workers Occupational wellness and Safety alliance Relations interconnected Crop charge Soil vigilance and Conservation integrate wipe out Management op yo 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 712-438 rP os t Sustainable Tea at UnileverSource Sustainable Agriculture entanglement, Our Standards SAN Principles, Sustainable Agriculture Network website, http//sanstandards. org/sitio/subsections/display/7, accessed December 2011. Exhibit 7b Company documents. Do No Source Agrochemicals and fuels Soils Water Biodiversity Energy Waste Social and human being capital sentient being welfare Value chain & local economy prepare tC 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. ten-spot Indicators of Unilever Sustainable Agric ulture edict 17 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. emailprotected harvard. edu or 617. 83. 7860. Exhibit 8 Sustainable Tea at Unilever Rainforest Alliance Messaging in Turkey rP os t 712-438 tC op yo As Lipton, Turkeys near tea brand and responsible tea producer, we want to ensure that our tea will be passed on to our children and future generations. To this end, we are taking the first steps in our Sustainable Tea Farming Project by combining our expertise with the warmheartedness of the tea growers in Black sea Region. Our goal is to enhance existing agricultural practices and to generalize the use of those that conserve the ecologic balance by raising awareness among more than 15,000 tea growers in the egion about the tea plant and harvesting. We are committed to accomplish this goal in a way that wil l enable to gain Rainforest Alliance Certified term for our farmers. Remember that you support our farmers with every cup of Lipton tea you drink. Do No Source Company documents. 18 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. emailprotected harvard. edu or 617. 783. 7860. Educational post-horse for Smallholders in East Africa Do No tC op yo Exhibit 9 712-438 rP os t Sustainable Tea at Unilever Source Company documents (via Rainforest Alliance). 9 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. emailprotected harvard. edu or 617. 783. 7860. Sustainable Tea at Unilever Unilever verdant Raw Materials by Volume, 2010 Do No tC Source Company documents. op yo Exhibit 10 rP os t 712-438 20 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. emailprotected harvard. edu or 617. 783. 7860. Exhibit 11 712-438 Examples of Rainforest Alliance Advertising tC op yo PG tips (U. K. ) rP os tSustainable Tea at Unilever Do No Lipton (France) Source Company documents. 21 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. emailprotected harvard. edu or 617. 783. 7860. -22- tC No Source Company documents. Exhibit 12 Do Unilever Sustainable Living Plan Targets op yo rP os t 712-438 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. emailprotected harvard. edu or 617. 783. 7860. Examples of U. S. In-Store Promotions Exhibit 14 Global Tea Production, 2009 (Tons)