great beer, great responsibility - MillerCoors

great beer,great responsibilityMillerCoors • 2010 Sustainable Development Report

GREAT BEER,GREAT RESPONSIBILITYThese are words we live by at MillerCoors. We brew great beer brands and strive to make a differencethroughout the lifecycles of each one, from implementing sustainable growing practices to encouragingconsumers to recycle our packaging after enjoying the finished product.With every barrel of great beer we brew, we work to uphold our great responsibility.We partner with retailers, distributors and community groups to ensure our beers are enjoyed responsibly bylegal drinking age consumers. In 2009, we expanded the Miller Lite Free Rides program to four new markets.To date, the program has provided safe alternative transportation to more than 2.3 million riders.Great responsibility also means reducing our impact on the environment and creating new ways to operatemore efficiently. Last year, MillerCoors renewed its commitment to the U.S. Environmental ProtectionAgency’s Climate Leaders program, pledging to reduce corporate-wide greenhouse gas emissions eightpercent by 2015.We recognize the opportunity we have to make a positive difference across our entire supply chain. We workwith our suppliers to find more efficient solutions for delivering brewing materials to our facilities and helpembed sustainability into their businesses.Ultimately, it is our people who make our great beers and lead the fulfillment of our great responsibility.We are committed to creating a safe, rewarding and diverse workplace. That means being a great employerand active member of our communities, through corporate giving and volunteerism. In 2009, we donated$1.6 million to the United Way through our employee giving program, and employees collectivelyvolunteered nearly 20,000 hours.We consistently hold ourselves to the highest ethical standards.We track our performance and transparently report ourprogress through the Sustainability AssessmentMatrix, a measuring tool and benchmarkingsystem based on inputs from the GlobalReporting Indicators G3 guidelines andthe UN Global Compact Principles.Throughout the pages of this reportyou will find examples of waysour proud brewing heritage andcommitment to responsibility arereflected today in each stage ofbrewing every one of our greatbeer brands.Because we know that with great beercomes great responsibility.1

our mostimportantingredientYou can’t beat the best ingredients.In today’s current environment, companies are workingharder than ever to bring together the right ingredientsto gain a competitive edge. However, the desire to wincan’t come at the expense of growing a business the rightway. For brewers, it means brewing great beers whilemaking the least impact on the environment.MillerCoors made a commitment to implementsustainable practices throughout our business, fromminimizing the amount of water we use in the brewingprocess to reducing our carbon footprint. Our sustainablepractices include being good stewards of society,as well as valuing and leveraging diversity andpreventing drunk driving.But our achievements would not have beenmade possible without our most valuable asset:Great people.Our people are at the heart and soul of everythingwe do. We work as one, we grow as one and wemake a difference in our communities, as one.Throughout these pages you’ll see that our peopleare behind every statistic and accomplishment. You’llalso see that we’ve collaborated with a wide range ofstakeholders – distributors, suppliers and partners –2

Our sustained commitment toSustainable DevelopmentFor MillerCoors, sustainabledevelopment is a journey, not adestination. It is a journey thatrequires an enduring commitmentto continuous improvement as wework to grow our business the rightway. Each day, each year and witheach beer we brew, we seek tomake meaningful progress on thiscritical course.We have charted our way with a clear strategic focuson sustainable development grounded in five keyresponsibilities:• Alcohol Responsibility• Environmental Sustainability• Sustainable Supply Chain• People and Community Investment• Ethics and TransparencyIn this report we take a moment to reflect on the placeswe’ve been and on some of the ways we’ve made significantprogress on our five responsibilities during the last year.We are making progress every day in our efforts, as acompany, as individuals and together with our stakeholders.We are also working to help the people who enjoy our beerstake responsibility by choosing to never drive drunk, reducetheir environmental impact and become more involved intheir communities. After all, this great responsibility extendsto each and every one of us.who are committed to making a positivedifference in our world.These great ingredients, blended together withpassion and commitment help us brew, sell anddeliver our great beers responsibly. These greatingredients help us achieve our vision of creatingAmerica’s Best Beer Company.We are proud of where we are, but we’re even morepassionate about putting in the ongoing effort needed togrow our business the right way for years to come. As wecontinue on our sustainable development journey, we’ve setaggressive targets – incremental destinations we’ll seek withpassion in our persistent pursuit of the great responsibilitieswe’ve put before our business.It will be an enduring effort. It will be a sustainedcommitment to sustainable development.N. Cornell BoggsChief Responsibility and Ethics OfficerLeo KielyChief Executive Officer3

G R E A T B E E R , G R E A T R E S P O N S I B I L I T YTABLE OF CONTENTSMillerCoors • 2010 Sustainable Development Reportabout millercoors 5a l c o h o lresponsibility 6• Helping Prevent Drunk Driving............................................... 6• Working to Reduce Underage Drinking................................. 8• Adhering to Our Strict Marketing Standards......................... 8• Partnering to Address Campus Issues.................................... 9e n v i r o n m e n t a lsustainability 10• Ensuring a Secure Future Through Water Stewardship...... 10• Reducing Our Energy and Carbon Footprint...................... 12• Driving Packaging Sustainability........................................... 16• Moving Towards Zero Waste Operations............................. 17s u s t a i n a b l esupply chain 18• Reducing Our Environmental Footprint............................... 18• Encouraging Our Responsible Sourcing Principles............. 19• Supporting Local Enterprise Development......................... 19p e o p l e a n dcommunityinvestment 20• Building a World Class Safety Culture.................................. 20• Investing in Our People......................................................... 21• Investing in Our Communities.............................................. 23• Supporting Multiculturalism.................................................. 23• Engaging Employees in Volunteerism.................................. 24stakeholder engagementEngaging our stakeholders and listening andresponding to their feedback is essential to ourrole as a responsible corporate citizen. MillerCoorsworks with its stakeholders in many ways, includingone-on-one dialogue, establishing formalpartnerships, participating in forums and joiningindustry associations. Within this report, we outlineour work with various stakeholder groups.Distributors.......................................................................6, 8, 14, 24, 26retailers............................................................................. 6, 8, 19, 26suppliers.......................................................................................16–19industry forums...............................................................8, 10–12, 16, 19, 26government agencies..................................................................... 8, 12, 14, 19–20non-profit organizations.................................................................6–9, 12, 19, 21–25local communities............................................................................. 6, 8, 20–25e t h i c s a n dtransparency 26• Utilizing Best in Class Ethical Practices................................ 26• Maintaining Transparency...................................................... 26• Measuring Our Progress........................................................ 26third party viewpoints 27Available onwww.GreatBeerGreatResponsibility.com• MillerCoors adherence to United Nations Global Compact• Summary of MillerCoors goalse x t e r n a lcommentary 28by Corporate Citizenship4

ABOUTMILLERCOORSBuilt on a foundation of great beer brands and more than 288 years of brewingheritage, MillerCoors, a joint venture of SABMiller plc and Molson CoorsBrewing Company, continues the commitment of its founders to brew thehighest quality beers and grow its brands the right way through responsiblemarketing and a focus on the environment and community.MillerCoors is the second largest beer company in America, capturing nearly30 percent of U.S. beer sales. Led by two of the best-selling beers in theindustry, MillerCoors has a broad portfolio of highly complementary brandsacross every major industry segment. Miller Lite is the great tasting beer thatestablished the American light beer category in 1975, and Coors Light isthe brand that introduced consumers to refreshment as cold as the Rockies.MillerCoors brews premium beers Coors Banquet and Miller Genuine Draft,and economy brands Miller High Life and Keystone Light. The company alsoimports Peroni Nastro Azzurro, Pilsner Urquell, Grolsch and Molson Canadian.MillerCoors operates eight major breweries in the U.S.; two microbreweries:the 10th Street Brewery in Milwaukee and the Blue Moon Brewing Companyat the Sandlot in Denver, Colorado; as well as two wholly-owned subsidiaries:the Leinenkugel’s craft brewery in Chippewa Falls, Wisconsin, and CoorsDistributing Company in Golden, Colorado. MillerCoors also owns five grainelevators in the western U.S. and has partnerships in place for the RockyMountain Bottle Company with Owens Illinois Inc., and the Rocky MountainMetal Container Plants with Ball Corporation. The company headquartersoffice is located in Chicago, Illinois.MillerCoors Eight Major Breweriesmillercoors 2009economic impact• Employed nearly 8,700 people• Paid $1.2 billionin wages and benefits• Contributed $1.3 billionin tax revenue• Spent $4.3 billion withits network of more than10,000 suppliers• Garnered total net revenueof $7.6 billion;($8.9 billion pre-excise tax)sustainabledevelopmentMillerCoors defines sustainabledevelopment as: “managing ourenvironmental, social and economicrisks and opportunities in a strategicway to protect our reputationand maximize business value.”We are committed to growingour business the right way andestablished a five-point sustainabledevelopment model that definesour responsibilities as:AlcoholResponsibilityEnvironmentalSustainabilitySustainableSupply ChainPeople and CommunitYINVESTMENTEthics andTransparency5

a l c o h o l r e s p o n s i b i l i t ya great responsibilityMillerCoors believes there is no greaterresponsibility than promoting theresponsible consumption of our products.Responsibility is the core of our businessand we work every day to:• Help prevent drunk driving• Reduce underage access to alcohol• Ensure adherence to our strictmarketing standards• Partner to address college campus issuesResponsibility on the RoadWe believe that drunk driving ispreventable. In 2009, MillerCoors providedalternative transportation to hundredsof thousands of people through drunkdriving prevention efforts,including Miller Lite FreeRides, 1-800-TAXICABand other designateddriver programs. We’recommitted to expandingMark Adkins, President, 1-800-TAXICAB, Inc.our efforts and askingconsumers to join in ourcommitment to being “one million strong” MillerCoors works collaboratively with ourin 2010 by pledging to be a designatedcommunity stakeholders to prevent drunk driving:driver or planning ahead for• MillerCoors teamed with Coors Distributingsafe transportation.Company and Colorado State Patrol todistribute 1,000 cab vouchers on theIn 2009, we expanded our Miller Liteopening day of baseball.Free Rides program to four new markets:• We distributed 13,000 cab vouchersPanama City Beach, FL; Louisville, KY;at Applebee’s restaurants during the holidayNashville, TN; and Chicago, IL.season as well as educational materials toMillerCoors is also the exclusive partner tohelp prevent drunk driving.1-800-TAXICAB, the largest transportationrelatedresponsibility program in history. Inother partners, we succeeded at• Together with TEAM Coalition and2009, in partnership with 1-800-TAXICAB,encouraging more than 25,000fans at five NFL stadiums towe launched the Miller Lite Taxi Finderpledge to be designated driversiPhone application, which helps consumersduring the 2009 football season.locate a cab using GPS technology.The Miller Lite Free Rides bus navigates throughdowntown Chicago during the holiday season.“After a 10-year history, the 1-800-TAXICAB program continuesto grow in terms of volume, reach and programming elements.MillerCoors has helped us to assist millions of consumers take ataxi through phone, online and taxi voucher field efforts.”2015 goalEncouragesix million peopleto pledge to planahead and takea safe ride6

dial1-800-taxicabDrunk driving is preventable. MillerCoorsencourages consumers to plan ahead for safealternative transportation. We partner with1-800-TAXICAB, the largest transportationrelatedresponsibility program in history, to helppeople plan ahead by providing cab vouchers andgenerate awareness of the program. Since 2006,MillerCoors has worked with 1-800-TAXICAB tooffer nearly 149,000 cab vouchers.7

a l c o h o l r e s p o n s i b i l i t y21 and over, onlyMillerCoors knows it takes collective action to help reduceunderage drinking. We work closely with our stakeholders,including the Federal Trade Commission, local lawenforcement, parents, distributors, retailers and communitygroups, to help prevent youth access to alcohol.Our Respect 21 Responsible Retailing Program,developed in partnership with Brandeis University andthe Responsible Retailing Forum, helps communities raiseawareness and guides retailers in improving practices toprevent underage access to alcohol.In 2009, we worked with our distributors to expand theprogram to four new locations: State College, PA; SaltLake City, UT; Madison, WI; and Fort Myers, FL. In Respect21’s five-year history, we’ve introduced the programto 15 communities, with measurable improvementsrecorded in all locations. In La Crosse, Wisconsin,the program helped the community join together toaddress the issue of underage drinking. In Albany,New York, mystery shopper results improved from77 to 100 percent over a five-month period.8We also recognize the role parents play in preventingunderage drinking. MillerCoors partners with theSearch Institute to provide education informationspecifically for parents. In 2009, we launched a digitalmarketing campaign for MVParents.com, recentlyrenamed ParentFurther.com, driving 50,000 parentsto the website monthly to find tools to empowerteens to make the right decision not to drink.The website is grounded in Search Institute’s 40Developmental Assets , a framework of positivecharacteristics that help youth thrive and avoidnegative behaviors, such as underage drinking.Search Institute’s research shows youth with31–40 of the Assets are 15 times less likely toabuse alcohol than teens with 10 or fewer.Getting home safelytastes greatWe encourage consumers to planahead. In the past 22 years, morethan 2.3 million people haveparticipated in the Miller Lite FreeRides program on key holidays.AccountabilitythroughSelf-RegulationAccording to a 2008 FTCreport, self-regulatorypractices by alcoholcompanies are successfulat ensuring content doesnot appeal to underageaudiences.We recognize that consumersand stakeholders interactwith our brands in themarketplace, and we strive toresponsibly advertise.MillerCoors has a strictself-regulation processand reviews all marketing for adherence to stateand federal regulations. Our advertising is intendedonly to reach legal-aged adults and our policies andverification process ensures that at least 70 percentof any programming audience is 21 and over.To ensure that our commitment to responsibility isrepresented consistently, we train sales and marketingemployees, as well as external advertising agencies, onthe MillerCoors Marketing Compliance Code (MCC). In2009, we set a goal to train all teams on the new MCC,and by the close of the year we succeeded in training85 percent of sales and marketing employees, and 75percent of agencies. To reach our goal, our in-persontraining efforts are continuing in 2010.We also adhere to external compliance codes, such asthe Beer Institute’s Compliance Review Board process,which involves a third-party review panel for advertisingrelatedconsumer complaints.MillerCoors is constantly engaging externalstakeholders, and makes changes when necessary toits advertising. In 2009, we voluntarily pulled our MillerLite Taste Protector television advertisements followingobjections from one special interest group.Our distributors are also dedicated partners insupporting our commitment to responsibly sell andpromote our beers. We offer tools to help distributorseducate retailers, inform consumers and bringsolutions to communities.

a l c o h o l r e s p o n s i b i l i t ygreat partners on campusMillerCoors works with its stakeholders to ensure that alcohol is consumedresponsibly on college campuses. We engage our community partners to developlong-term solutions to help prevent underage access to alcoholand overconsumption.We work with the W.I.N. Foundation to help empower women on collegecampuses through the Raise Your Standards Program. The goal of the programis to educate college-aged women about the dangers of overconsumption andalcohol abuse, as well as safety and prevention. From 2008 to 2009, we increasedour outreach on campuses by nearly 40 percent – connecting with 3,250 studentsacross seven college campuses.Great Beer,Great Responsibility.comIn 2009, we launched a new website,www.GreatBeerGreatResponsibility.com,to engage stakeholders and consumerson responsible beer consumption.Leading ResponsiblyMillerCoors executives and employees lead our company in growing our businessthe right way. We hold our employees to high standards and work to ensure that ourpeople are informed, engaged representatives – inside and outside of the company.Researched and developed over the course of 2009, we’re launching a newAlcohol, Behavior and Communication (AB&C)training program to help employees betterunderstand the issues associated withalcohol consumption.In addition to educating employees on thecompany’s employee alcohol policy, theAB&C training will drive employeeengagement by facilitating anopen dialogue. For example,employees discuss howalcohol affects the body,what it means to drinkresponsibly and theimportance of theirrole as an employee ofa beer company.Employees at Fred’s Pub,located on our Milwaukee campus.looking back.In 2009, we exceeded our drunk driving prevention goals, providing severalhundred thousand safe ride alternatives and implementing more than one hundreddrunk driving prevention programs in partnership with local distributors. Weexpanded our Respect 21 program to four new markets and are continuing to trainall sales and marketing employees, as well as external agencies, on the MillerCoorsMarketing Compliance Code to achieve our 2009 target to train 100 percent.looking ahead.Expand Free Rides program to five new markets•Increase designated driver programs to three new venuesLeverage exclusive sponsorship of 1-800-TAXICAB to promotesafe alternative transportation•Expand Respect 21 program to four new marketsEngage and educate 100 percent of employees through Alcohol,Behavior and Communication training9

e n v i r o n m e n t a l s u s t a i n a b i l i t yOur Greater EnvironmentMillerCoors is committed to brewing its greatbeers in the most efficient and environmentallyresponsible way. Our core environmentalcommitments include:• Ensuring a secure future through waterstewardship• Reducing our energy and carbon footprint• Driving packaging sustainability• Moving towards zero waste operationsa critical resourceWe recognize that water is a finiteresource, and its availability is agrowing concern in many parts ofthe world. We have a responsibilityto manage our water use and protectthis resource for future generations.2015 goalReduce waterusage by 15% toachieve a 3.50:1.00water-to-beerratioMillerCoors Golden brewery sitson the banks of Clear Creek.Water is also essential to the brewing process andMillerCoors focuses its efforts on:• Water efficiency• Wastewater management• Water supply assessment• Water footprinting• Community investmentIn 2009, MillerCoors recorded a ratio of 4.11 barrelsof water to every barrel of beer, a slight increase from2008. Following the joint venture of Miller and Coors,we shifted 12 percent of our production volume, theequivalent of eight million barrels, across our eightmajor breweries. Incorporating new products anddifferent yeast streams impacted our water usage dueto the intense cleaning practices required to maintainthe distinct taste and quality of our great beers.Three of our breweries maintained a water-to-beerratio under 4.00, and our Texas brewery led theway at 3.40:1.00. Now that we’ve completed ourproduction shift, our focus in 2010 will be to evaluateour processes and further optimize operations.We are also taking steps to achieve our 2015 goalof reducing water usage by 15 percent. Specifically,we are evaluating technology to reduce evaporationrates in our breweries and exploring packaging waterreclaim systems.“We need to protect and conserve our water supplies for thefuture, and corporations like MillerCoors play an importantrole in advancing sustainable water management.”Brian Richter, Co-Leader, Global Freshwater Program, The Nature ConservancyLeading the WayWater UsageWe understand that water(water per barrel of production)management and conservation is a5global challenge. MillerCoors activelyworks with its parent companies,4SABMiller, which partners with theWorld Wildlife Fund to conduct3water footprinting and watershedprotection projects around its plants,2and Molson Coors, a strategic partnerto Circle of Blue, to identify and1address our water risks.2008MillerCoors2009MillerCoors2015MillerCoorsThrough our parent companies,MillerCoors supports the UnitedUSAGE usage GOALNations CEO Water Mandate, a voluntary initiative to help companiesdevelop, implement and report progress on water sustainability.As a member of the Beverage Industry Environmental Roundtable, agroup of leading beverage manufacturers, MillerCoors participates incollecting and sharing data and benchmarks against best practices forwater conservation and reuse.4.10 : 1.004.11 : 1.003.50 : 1.0010

a valuable resourceOur Virginia brewery sits on the banks of the Shenandoah River, a tributary to the Chesapeake Bay.The brewery, led by Vice President Amy Michtich, pictured here with Director of Process OperationsAndy Pickerell, is a founding member of the Shenandoah Valley Pure Water Forum. The Forum works toaddress water quality issues regionally, including concerns over nitrogen and phosphorus dischargesfrom surrounding states into the Bay. To help address water quality, we began installation of a state-ofthe-art,$10 million membrane bioreactor (MBR). The MBR, designed to ensure regulatory compliance,helps remove phosphorous and nitrogen from the wastewater and reduce the levels discharged into theBay. This is one of the largest industrial installations of the MBR technology in the U.S. and will serve asa best practice for nutrient reduction.11

e n v i r o n m e n t a l s u s t a i n a b i l i t yPlanning AheadMillerCoors is committed to water stewardship andis focused on better understanding water risks inour communities. We work closely with communitystakeholders, including local governments and nonprofitorganizations, to understand the challenges ofwater scarcity and quality, and the potential impact onour business.According to the World Business Council forSustainable Development, water scarcity refers toan excess of demand for water over available supplyfor agricultural, industrial and domestic needs.MillerCoors Texas and California breweries arelocated in water scarce regions, while our Golden,North Carolina and Georgia breweries are locatedin water stressed regions. We are conducting anassessment to strategically evaluate the long-termwater outlook in these regions. MillerCoors also plansto complete a water footprint in 2011, evaluating ourwater use throughout the entire supply chain to betterunderstand our overall direct and indirect water usage.Major SavingsWe constantly strive to find innovative and creativeways to manage our water usage.• At our Virginia brewery, water reduction projectssaved nearly 5.3 million gallons of water annually,reducing water usage by nearly 16 percentin 2009.• Leinenkugel’s invested in a new pasteurizer that willreduce water usage by 25 percent, an annual savingsof 15–20 million gallons of water.• Our California brewery partnered with a localuniversity to identify areas of the brewery’s campusbest suited for a desert walking trail that would notrequire any watering.• Our Milwaukee brewery was the first in theMillerCoors system to install a green roof to absorbrainwater and help reduce storm water runoff.looking back.We did not meet our goal of reducing our water usage to a 3.96:1.00 waterto-beerratio. In 2009, we shifted 12 percent of production to differentbreweries as a result of the joint venture, and clearly felt the impact onour water usage. We are investing in capital improvements to achieveour 2015 goal, and also aligned our CSR investments in support of watersustainability initiatives in all of our brewery and corporate communities.SABMiller Group Head of Manufacturing Maurice Egan andMilwaukee brewery employees Joan Giuliani and Deon Van Ason the Milwaukee brewery’s green roof.GREAT ENERGYMillerCoors is committed to reducing its total energy useacross all operations by:• Reducing its carbon footprint• Focusing on renewable energy• Lessening emissions2015 goalReducetotalenergy useby 15%In 2009, MillerCoors reduced its overallenergy consumption by 3.6 percentper barrel of beer across its eightmajor breweries. This reduction wasaccomplished as we shifted productionof 12 percent of our beer portfolio, theequivalent of eight million barrels, to differentbreweries as a result of the joint venture between Miller and Coors.We are also taking steps to achieve our 2015 energy reduction goal.We are making capital improvements at our breweries, investigating heatrecovery options and implementing utilities equipment replacementprojects to improve efficiency.In 2009, MillerCoors reduced its greenhouse gas emissions by 1.2 percentacross all operations and facilities. We renewed our commitment tothe U.S. Environmental Protection Agency’s Climate Leaders program,pledging to reduce corporate-wide greenhouse gas emissions eightpercent by 2015. The company has an accomplished history with theprogram, as Coors Brewing Company was recognized forexceeding its goal early,reducing emissionslooking•ahead.20 percent perproductionindexComplete water supply assessments, including a•10-year forward look at our water scarce regionsConduct capital improvements for waterfrom 2005 to 2008.•reduction projects to achieve 2015 goalExplore packaging water reuse opportunities12

e n v i r o n m e n t a l s u s t a i n a b i l i t ySmaller FootprintIn order to reduce our energy usage, werecognize the need to operate efficiently anddevelop innovative ways to save energy.Energy Consumption200150100500(megajoule per hectoliter)153 MJ/hl2008MillerCoorsusage147 MJ/hl2009MillerCoorsusage• In Milwaukee, we installed a new ammoniacompressor that conserves energy throughautomated controlling of pressure andtemperatures, an energy savingsof 3.3 million kilowatt hours.• At our Leinenkugel brewery,heat that would normally beexhausted into the atmosphereis recovered and reusedto pre-heat boiler water,a savings of nearly 38,000therms per year.• At our Texas brewery, weupgraded the ammoniarefrigeration system toreduce energy use by 3.6percent – eliminatingenergy-wasting pressuredrops and effectivelyutilizing the evaporativecondenser.In 2009, ourGeorgia brewerylowered by 19percent its energyusage per barrelof beer.128 MJ/hl2015MillerCoorsGOALA BroaderPortfolioAs we work to reduceour carbon footprint,we continue to partnerwith energy supplierswho share the samesustainability principles.In 2009, renewableenergy comprised just2.9 percent of our overallenergy portfolio. We’recommitted to increasingour renewable energymix and utilizing windand solar power. We’recurrently exploring a trialwind turbine project atour Milwaukee breweryand experimenting withthe use of fuel cells atour California brewery.Additionally, four of our breweries are home to anaerobic wastewatertreatment systems. At our Texas and California breweries, we generatebiogas, a renewable energy source, from the wastewater for use in ourboilers and for electricity generation, and have begun engineering at ourVirginia brewery to reuse biogas for generating electrical power.Energizing the TeamThe wastewater treatment plantat our California brewery.MillerCoors commitment to reducing its carbon footprint is a team effortbeing undertaken by employees across the company.Employees in Georgia raised awareness of energy conservation bycharting usage and creating checklists for shutting down equipment.The North Carolina brewery celebrated “ECAA Madness”(Energy Conservation Awareness Activity) in conjunction with theNCAA tournament. Employees submitted energy savings ideasfor the brewery and the company paid the electric bill of thewinning employee.Artfully CraftedBlue Moon, born in 1995, is brewed with anartistic approach. We paint flavors with hops,barley and wheat, and then add twists likeorange peel and coriander.13

e n v i r o n m e n t a l s u s t a i n a b i l i t yOptimizing TransportationWe are also dedicated to ensuring our great beer arrives to distributors with thesmallest environmental footprint possible. As a result of the joint venture betweenMiller and Coors, we substantially reduced the distance our beer travels by millions ofmiles, a reduction of tens of thousands of tons of carbon emissions.Beer that was once made in only two breweries is now made in eight. For example,Coors Light is brewed in Ft. Worth and shipped locally to our Dallas distributorrather than from Golden, Colorado, reducing by 770 the miles traveled for each ofapproximately 3,000 truck load shipments.Distributing SustainablyAs a means to conserve energy and reduce emissions, we strive to improve efficiencyin every mode of transportation our beer takes to reach consumers.• By reconfiguring railway shipments to increase the amount of beer each railcarcarries, we reduced by nearly 40 percent the number of railcars, an estimatedsavings of 3,000 metric tons of carbon dioxide.• We increased the number of kegs and pallets distributors put on return trucks,reducing by 13 percent the number of trucks on the road, or 1,400 trucks per year.• We’re saving energy, emissions and costs as a result of consolidating inventory fromnine warehouses, down to five, that store beer before being sent to distributors.• We replaced non-recyclable, single-use wood structures that secure beer in truckswith 100 percent recyclable plastic separator pads, which are lighter, easier to useand carry an average lifespan of eight years.Partners in SustainabilityMillerCoors is committed to workingwith its carriers and distributors to bemore energy efficient. Our goal is tohave 100 percent of our carriers join theU.S. Environmental Protection Agency’sSmartWay program, which drivescarriers to reduce transportation-relatedemissions. In 2009, 90 percent of ourcarriers were enrolled in the program,a 44 percent increase from 2008.Forbee Distributors, of Brooklyn, N.Y.,is building a co-generation systemthat will recycle excess heat to providecooling and heating for beer storageand offices. The facility will be 50percent more efficient than natural gasgeneration facilities.O & W, Inc., a MillerCoors distributor inMichigan, recently completed a two-yearproject to change 160 energy inefficientlight fixtures in its 100,000 square footwarehouse, resulting in an energysavings of 60 percent.looking back.MillerCoors successfully met its energy targets for 2009,reducing its total energy usage by 3.6 percent per barrel of beeracross its eight major breweries. We renewed our commitment toEPA’s Climate Leaders program, and reduced our greenhouse gasemissions by 1.2 percent across all of our facilities.looking•ahead.Incorporate transportation-related GHG emissionsinto EPA’s Climate Leaders goal•Increase percentage of renewables in energy portfolioExplore anaerobic wastewater treatment technologiesat two additional breweries14

carbonsavingsMillerCoors works closely withcarriers to reduce its carbonfootprint. MillerCoors Directorof Logistics and TransportationErik Given and carrier partnerAndy Cole, president ofTTS, are working to pursuefederal legislation to increaseload weight on trucks andsubsequently add a sixth axlefor safety. Each truck that leavesour brewery is only 65 percentfull and slightly increasing theallowed weight – the equivalentof adding five pallets of beer –would take approximately100,000 trucks off the road eachyear, a reduction of 54 milliontons of CO 2 .15

e n v i r o n m e n t a l s u s t a i n a b i l i t yGreat PackagingPackaging is a critical component of the beerproduction process, and we are conscious of itsimpact on the environment. MillerCoors approachto packaging focuses on:• Packaging elimination and lightweighting• Increasing recycled content• Supporting consumer recyclinginitiatives• Evaluating environmental impactRecognizing the role packagingplays in our overall carbonfootprint, MillerCoors engagedthird-party help to determine ourcarbon footprint – from ingredientsto suppliers to brewing and distribution– for 13 product SKUs.The carbon footprint study, conducted inaccordance with the Beverage IndustryEnvironmental Round table sector guidance,revealed that packaging makes up 21 to 44 percentof our total packaged product carbon footprint.From these results, we are actively working toreduce our packaging carbon footprint, fromsource reductions to material substitutions.2015 goalReduceretail packagingby 2%Always Smooth. Always Recyclable.The smooth taste of Keystone Light ispackaged in a recyclable aluminum can.More than 50 years ago,Bill Coors implementedthe “Coors Cashfor Cans” program,promising a pennyper can returnedto the brewery -helping spark therecycling revolution.16Cold-activated Coors Light bottles coming down the packaging line.Saving More by Using LessAs we invest in new packaging, it is essentialto keep in mind the growing demandby consumers and retailers for moresustainable options. We are activelyworking on lightweighting ourpackaging, and in 2009, we achievedan estimated annual savings of26%11 million pounds of packaging Aluminum(cans andmaterials. For example, in Coorsends)Light and Coors Banquet 12-pack63%cans, we eliminated unnecessaryGlasscorrugated fiber board, saving 5.8(bottles)million pounds of cardboard, theequivalent of 8,700 trees. We also changedthe corrugate in Coors 18- and 20-pack bottles,substantially reducing the amount of cardboard used.1%Plastic(bottles and film)2% Misc. (crowns,closures, etc.)8% Paper(cartons andshipping cases)PackagingCarbonFootprint(grams of carbondioxide per equivalent,or gCO 2e)Utilizing aluminum also remains a prime consideration as it has alower carbon footprint and the most recycled content of any beveragecontainer, at approximately 68 percent. In 2009, we introduced theMiller Lite aluminum pint, and in 2010, two of our craft beers, BlueMoon Belgian White and Leinenkugel’s Summer Shandy, will bereleased in cans for the first time.looking ahead.Translate carbon footprint research to potential packaging changes•Continue consumer research into new sustainable packaginglooking back.Collaborate with industry coalitions to proactively influenceMillerCoors packaging sustainability team wasrecycling regulatory environmentproactive in 2009 and made progress against itsgoals. MillerCoors successfully implemented morethan 11 million pounds of source reductions and is working closelywith its first- and second-tier packaging suppliers to collectively reduce energy.

e n v i r o n m e n t a l s u s t a i n a b i l i t ygreat achievement: zero wasteWe have always believed that waste is Innovative ReuseFrom Waste Beera resource out of place. That’s why weIn 2009, MillerCoors reused or recycled to Fish Foodchallenge ourselves every day to find newmore than 99 percent of its breweryIn 2009, our Ohio brewery teamedopportunities to reduce, reuse and recyclewaste, including spent grain andour brewery waste.up with Oberon FMR to run aspent yeast, wood, aluminum, cullet,full-scale trial of an innovativeSpecifically, MillerCoors focuses on: metals, plastic and paperboard.• Waste generation and disposal• Waste management• Upstream wasteminimizationThis represents a nearly one percentimprovement from 2008.Across our breweries,much of the waste istechnology to create a fishfood ingredient from brewerywastewater that will help alleviatedependence on natural fisheries.recycled and suppliedIn 2009, we exceeded 2015 goalThe high-protein ingredient,to external groupsour 2015 goal,Reducefor reuse. Bio-solids derived from nutrients found inreducing the totalwaste to landfill generated at thethe brewery process wastewater,amount of waste sentby 15%wastewater treatmentto landfill by moreis intended to replace fishmealplants are used tothan 20 percent.used for farm-raised fish. The trialfertilize local farms andTwo of our breweries –Virginia and Ohio – recentlyachieved their goals of zero waste tolandfill. The breweries reduced their solidwaste by cutting usage, recycling and findingcreative ways to reuse brewery materials.the lime from the wastewatertreatment plant is reused as asoil conditioner. Fly ash is reused bya local cement manufacturer for cementmix, landfill cover and reclamation refill. Inanother example of creative material reuse,showed promising results, provingthe old adage, “One man’s trash isanother man’s treasure.”our brewery green teams act as recyclingdiscarded glass is ground into mulch toambassadors to fellow employees and take alandscape our Ohio brewery.At our Ohio brewery, weleadership role in organizing activities aimedreused scrap metal and oldWe also search for new ways to reuse the at reducing waste.grating found in the brewerymaterials in which our suppliers deliverSeveral of our offices are leading the chargeour ingredients. In Golden and Virginia,to make ergonomic upgradesto eliminate waste. At our Milwaukeewe clean and reuse the hop drums in theto the high speed can packer.corporate office, employees “stashed theirbrewery. We also recycle the five-gallonpails that store hop pellets and flavoring.trash,” voluntarily forfeiting their office wasteAny remaining non-recyclable materials,bins. Their efforts resulted in a savings ofranging from 0.2–0.4 percent, are sent to amore than 15,000 plastic trash bags fromEmployee Green Teamsnearby waste-to-energy facility, where theyentering the landfill. The Vice President ofare used beneficially to produce steam. From senior management to hourly our Ohio brewery gave up her office trashworkers, MillerCoors employees are bin, and now only uses the communityWe’re committed to further improvinghelping to reduce our waste stream. bins. Additionally, the Golden Brewery Viceour performance. We’re working to gainA true grassroots effort, members of President issued reusable aluminum watera better understanding of upcomingbottles to all employees to eliminate the useregulations in orderof plastic water bottles.to finalize a new2015 goal for waste looking back.reduction. WeMillerCoors exceeded its waste goals in 2009, surpassing itslooking•ahead.2015 goal five years ahead of schedule. Two of our breweriesexpect to announceFurther improve waste collection methods at all breweriesalso achieved zero waste to landfill for a period of months.our updated targetto increase recycling ratesWe’ve maintained a commitment to finding creative ways toin late 2010.•Set new, aggressive waste reduction target for 2015reuse brewery waste, and expanded our recyclingAchieveefforts across all facilities.zero waste to landfill at one additional brewery17

S U S T A I N A B L E S U P P L Y C H A I NGreat SuppliersMillerCoors recognizes that its supply chain carries atremendous impact and therefore represents a significantopportunity. We work together with suppliers to effectivelydemonstrate our commitment to sustainability by:• Reducing our environmental footprint• Supporting local enterprise development• Encouraging our Responsible Sourcing PrinciplesGreat IngredientsWe believe in using only the bestingredients in our great beers andare actively involved with the growersand suppliers who provide us with rawmaterials. Through its Grower DirectProgram, MillerCoors employs a teamof eight agronomists to work alongsidebarley farmers to help provide insightinto decisions for planting, irrigationand crop rotation.A Piece of the High LifeIn conjunction with the AmericanMalting Barley Association, wecontinue to seek additional regionsto grow winter barley, whichrequires less water and energy dueto the off-peak growing cycle. Aftercompleting a successful trial of thecrop in 2009, we estimate a furthersavings of five million gallons ofwater and 3,000 kilowatt hours ofelectricity in 2010.In addition to our work withgrowers, we work closely withour malt suppliers to implementsustainability in their operations.One of our malt suppliers,We value small businesses, as many ofMillerCoors network of 10,000 suppliers aresmall business owners. In support of enterprisedevelopment, Miller High Life featured foursmall businesses in its commercial that airedduring The Big Game in February 2010.18The mash tuns at our Golden brewery.Canada Malting Co. Ltd., recovers biogenic heat generated bythe germinating grain and uses it to heat its malt houses. In somesites, it is the only heating source, removing all dependency onexternal energy.Through our malt optimization program, MillerCoors was ableto reduce the distance its malt traveled by analyzing in-housecapability alongside our supplier network. As a result, our Goldenfacility produces all the malt needed for the brewery and oursupplier, Cargill, now ships malt in larger quantities, resulting in15 percent fewer rail cars across shipments.sustainable farmingHops are essential to beer, helping maintain flavor and stability.Hops growing is a small industry, with only about 25 U.S. growers.MillerCoors works with the top seven who provide a consistentquality product.Our hops farmers are committed to sustainable farming practices,and as such we work together to find opportunities to be moreefficient. Together, we’ve increased the use of drip irrigation toreduce the amount of water needed for the crop. Any waste fromthe growing stages is recycled as compost, and when used in thebrewing process, is recycled as feed for cattle.

S U S T A I N A B L E S U P P L Y C H A I NRESPONSIBLE SOURCING“We are delighted to partner with MillerCoors to reduce our environmental impact.We are working to reduce water usage in our supply chain and collaborating onnew, long-term initiatives to reduce fuel and energy consumption.”MillerCoors constantlyevaluates its supplier networkto gain an understandingof social and environmentalrisks within its supply chain. Pat Bowe, Corporate Vice President, CargillIn 2009, we embedded ourglobal Responsible SourcingPrinciples in all procurement contracts,providing guidance across eight areas:business conduct; working conditions;employment; child labor; wages; diversity;freedom of association; and environment.We researched and validated a self-audittool, putting the pilot methodologyin place for our top-tier suppliers toevaluate their performance. This resource,called SEDEX, sets benchmarks on aglobal International Labour OrganizationRecognizing the importance of the supply chain forbusinesses worldwide, MillerCoors became a FounderLevel Member of The Sustainability Consortium to helpdevelop global sustainable development measurementand reporting standards in collaboration withsuppliers, retailers, non-governmental organizationsand government officials. The standards will consistentlyquantify sustainable attributes of a manufactured productacross its entire life cycle.MillerCoors also hosted a Sustainability Summit with its procurement team inGolden and Milwaukee. During the Summit, we completed our goal of conductingsustainability training for all procurement staff.standard scale to assess internalpractices as well as our suppliers’ toidentify risks and opportunities.Supplier DiversityIn 2009, MillerCoors spend with diverse suppliers was 7.4 percent of the company’scollective Impacttotal spend. We exceeded our supplier diversity program target by 14 percent,working with a total of 579 minority- and women-owned businesses.MillerCoors has more than 10,000suppliers, and we work closelyWe collaborate with industry peers to drive businessSupplierwith the Top 100, who represent 80growth for diverse suppliers. MillerCoors partners with theDiversitypercent of our total procurementNational Black Economic Development Coalition and the(MillerCoors spendspend. Many of our suppliers shareHispanic Association on Corporate Responsibility onpercentage with diverseour commitment to embeddingsustainability across operations.• Foodliner, a supplier, is expanding itsfleet with units powered by compressednatural gas for an oxygen-free exhaust.• MillerCoors partnered with two syrupsuppliers, Cargill and Corn ProductsInternational, to increase truck shipmentefficiencies by increasing load weightssupplier diversity initiatives. We are also actively involvedin the Conference Board’s Supplier Diversity LeadershipCouncil and have a seat on the Board of Directors for theNational Minority Supplier Development Council.In 2009, MillerCoors continued to foster relationshipswith second tier suppliers, hosting a networking event forthe Women’s Business Enterprise National Council. Onesupplier, CH2MHill, recognized the business value of theprogram and introduced it in its own community practices.suppliers)107.552.5and reducing trailer tare weights.2015 goalSpendmore than$2.5 billioncumulatively withdiverse suppliers6 percent7.4 percentlooking back.In 2009, we made progress with our Top 100 suppliers, sharing ourResponsible Sourcing Principles and putting the pilot methodology in placefor suppliers to perform self-audits against the Principles. We surpassed ouroverall supplier diversity spend goal, increasing to 7.4 percent of total spend.We also exceeded our spend goal by nearly 25 percent with Hispanic suppliers,but did not meet our target spend goal with African-American suppliers.20082009looking ahead.Establish pipeline of joint projects between MillerCoors and suppliersFocus on projects impacting water, packaging, waste and energy•Focus on suppliers in agriculture, promotional items and packagingLeverage The Sustainability Consortium membership to participate indevelopment of sustainability measurement and reporting standards19

P e o p l e a n d C o m m u n i t Y I N V E S T M E N TA Great InvestmentMillerCoors is committed to growing its business theright way. We make it a priority to support our peopleand the communities in which we live, work and sell ourbeers. Specifically, we are working on:• Building a world-class safety culture• Investing in our people• Investing and volunteering in our communities• Supporting our multicultural stakeholdersOur Texas brewery has gone onemillion hours without a lost timeincident – the equivalent of two years.Employees at ourMilwaukee brewery.SAFETY CULTUREAt MillerCoors, the safety of our employees is of thegreatest importance. We work to ensure our employeeshave a safe work environment and strive for zerowork-related injuries. In 2009, our DART rate –Days Away, Restricted or Transferred due to injury– was 1.06 percent, below MillerCoors thresholdof 1.46 percent.“We’ve been impressed with MillerCoors leadership andcommitment to workplace safety and health excellence.”Bob Glover, Assistant Regional Administrator, OSHA Region VIIIWe are committed to reducing injuries on the job andinstilling a new safety culture at our breweries. In 2009,we launched the transformation process at our Californiaand Milwaukee breweries to engage workers in buildingthe safety culture they want at their facility.Grassroots teams implemented changes based ontheir culture assessment. For example, in Milwaukee,the packaging team made changes to shift the culturetowards glove use after determining most workrelatedinjuries stemmed from cuts to hands. Prior toimplementation in 2009, the team had 11 hand injuriesand after the project there was onlyone injury the remainder ofthe year.looking back.Additionally, several MillerCoorsfacilities, including the Virginiabrewery, were recognized byOSHA’s Voluntary ProtectionProgram, which setsperformance-based criteriafor worksites.The home draft bottle rinser at our Eden brewery.MillerCoors surpassed its safety goals in 2009. We held a grassroots safety summitwith representatives from nine of our facilities and piloted our safety culturetransformation at two breweries. Importantly, brewery employees are activelyengaged in the safety culture shift.looking ahead.Launch safety culture process at two additional breweries•One additional facility to participate in OSHA’s VPPComplete Environmental, Health and Safety managementsystem and process20

P e o p l e a n d C o m m u n i t Y I N V E S T M E N Tgreat peopleMillerCoors supports the growth of itstalent and is committed to investingin the professional development ofits employees. Through MillerCoorsUniversity, we offer training in areassuch as leadership development andunderstanding of the commercialbusiness. In 2009, 4,810 employeesparticipated in a MillerCoors Universitylearning opportunity for a totalof 160,000 training hours.We also encourageemployees topursue continuingeducationopportunities.In 2009,MillerCoorsprovided morethan $700,000 intuition reimbursementto nearly 300employees.2015 goalAchieve recognitionas FORTUNE 100Best CompaniesDiversity and InclusionGrowing and leveraging diversity is a businesspriority and starts with our people. In 2009,our employee engagement index increasedby three percent in the area of diversity andinclusion, an indication that we are makingstrides. Employees across the companyparticipated in an online training that explainshow diversity and inclusion helps MillerCoorswin in beer. According to a post-trainingsurvey, more than 75 percent indicatedthat they will be able to apply theknowledge gained to better performtheir jobs.We also launched the MillerCoorsMentoring Program. By pairingemerging talent with our seniorleaders, we create one-on-onelearning opportunities and foster thetransfer of diverse ideas. Through actionand experiential learning, emerging leadershave the opportunity to grow professionally.to Work For ® Employee NetworksOur great beer is made bygreat people. To engageemployees, we implementedan employee campaign titled,“Be Great,” that highlightsdifferent employeeseach month for theirresponsibility efforts.64 RewardingCaloriesMGD 64 is theofficial sponsorof the Rock ‘n’Roll MarathonSeries , andin 2009recognized64th placefinishersof 14marathonswith aspecialMGD64prizepackage.MillerCoors employees are as diverseas our portfolio of great beer. EmployeeAffinity Groups at our breweries andcorporate offices work together to advancethe business strategy and promoteMillerCoors in communities. In 2009,Employee Affinity Groups:• Joined with the Latin AmericanEducational Foundation to providestudents with college scholarships,raising nearly $25,000.looking back.• Organized an employee fundraiser thatresulted in a $15,000 donation to Toys forTots during the holidays.• Served Thanksgiving and Christmasdinners at The Center on Halstedin Chicago.• Held Veteran’s Day events at many ofour breweries, honoring current and pastemployees who served in the military.• Held our annual Dragon Boat Racefestival in Colorado and Wisconsin.• Partnered with the Rocky MountainIn 2009, MillerCoors focused on growing and developing its talent. We conductedan employee engagement survey that established baseline measurements, then setgoals based on the results. We participated in talent sourcing with multiculturalorganizations and built a strategy in 2009 to focus on areas of the workforce wherediverse candidates are underrepresented.Deaf School tobuild awarenessand supportfor the hearingimpaired.looking•ahead.Engage employees in their development throughMillerCoors University•Launch 360⁰ feedback tool for managersFacilitate human resources efforts in recruiting diverse talent21

Celebratingwater stewardshipMillerCoors launched its first company-wide volunteer water stewardshipinitiative by dedicating September as MillerCoors Water Stewardship Month.Employees from all brewery and corporate office locations volunteered to improveaccess to clean waterways, rejuvenate stressed watersheds and restore nativeecosystems. In total, 528 employees volunteered 1,658 hours of their time atactivities across the U.S. In Virginia, volunteers planted 60 trees and restoredstreambeds and river banks. In Chicago, employees conducted water qualitytesting and removed invasive plant species along the Chicago River.22

P e o p l e a n d C o m m u n i t Y I N V E S T M E N Tgreat communitiesMeaningful community investment isintegral to growing our business the rightway. MillerCoors focuses on strategiccorporate social investment priorities,including water, enterprise development,multicultural communities and theUnited Way. In 2009, our total communityinvestment spend was $10.6 million.In connection with our strategic priorities,we invest in water conservation andstewardship initiatives in our brewerycommunities. In 2009, MillerCoors:• Invested $500,000 to fund theMillerCoors THIRST FreshwaterInnovation Lab at Milwaukee’sDiscovery World Museum.• Donated $10,000 to help restock thefish in a lake near the Wisconsin Dellsafter a berm collapsed anddrained the lake. Alocal Leinenkugeldistributor matchedour contribution.communityactivatedAs the officialsponsor of thePuerto RicanDay Parade,the Coors Lightteam provided$75,000 inscholarshipsto the NationalPuerto RicanDay Paradeand DiversityFoundationScholarshipFund in 2009.• Issued $52,000 in watershed protectiongrants to organizations in our brewerycommunities through a partnershipwith River Network, a national nonprofitorganization.SupportingMulticulturalismWe work with our multiculturalstakeholders and community partners todevelop programs that:• Focus on leadership development• Provide educational opportunities• Promote entrepreneurismIn 2009, we celebrated the 10thanniversary of the MillerCoors UrbanEntrepreneur Series business plancompetition by giving $200,000 in grants.MillerCoors is the founding corporatesponsor of the Thurgood MarshallCollege Fund, which for 23 years hasprovided support and scholarships to the47 public Historically Black Colleges andUniversities. In 2009, we donated a record$1.3 million to the Fund. We alsodonated $60,000 in scholarshipsduring the Historically BlackColleges and Universities FootballClassics.We continue our commitment tohelping Latino students pursuehigher education through apartnership with MillerCoors¡Adelante! In 2009, we donated$200,000 in scholarships andsponsored 30 students to attendthe ¡Adelante! Leadership Institutein San Antonio, Texas.MillerCoors receivedthe 2009 Corporationof the Year Awardfrom the U.S. HispanicChamber of Commerce.CHICAGO HEADQUARTERSEARNS LEED SILVERcertificationMillerCoors officially opened itsChicago headquarters in June2009, bringing a commitment toenvironmentally-friendly design.The space features energy efficientlighting with motion sensors, andthe open layout harvests 90 percentdaylight. In total, 96 percent of theconstruction waste was recycled.The building recently earnedLeadership in Energy andEnvironmental Design (LEED)Silver certification from the U.S.Green Building Council, whichencourages global adoption ofsustainable green building anddevelopment practices.23

P e o p l e a n d C o m m u n i t Y I N V E S T M E N TGreat DedicationMillerCoors employees are committed tocommunity. At a young age, Anita Hernandezwas instilled with the belief, “see a need,fill a need.” A procurement specialist at ourIrwindale, California brewery, she remainsinspired by these words and displays aremarkable commitment to communityservice. In her 14 years with MillerCoors, Anita hascoordinated dozens of volunteer events. In 2009, she helpedorganize more than 120 volunteers to participate in theCoastal Clean-Up event in Los Angeles County. Anita alsoserves as chair of the Board of Directors for the IrwindaleChamber of Commerce and was recently honored with the2010 Women of Achievement Award for the 57th AssemblyDistrict for her dedication to the Irwindale community.volunteerismMillerCoors employees help make a difference in our communities throughvolunteerism. We launched a new internal website to help employeestrack volunteer opportunities and hours. In 2009, employees logged nearly20,000 volunteer hours.• More than 60 volunteers helped restore a damaged wetland during thethird annual Friends of the Forest Day in Golden.• The Irwindale brewery teamed with Shoes That Fit, a United Way agency,to run a children’s shoe drive, collecting 250 pairs of shoes prior to thestart of the school year.• Employees at the Leinie Lodge wrapped holiday gifts for communityguests with Leinenkugel beer labels unusable for packaging andcollected contributions for a local food pantry.• Each quarter, employees spend hundreds of hours at Project C.U.R.E.,a non-profit relief group that delivers donated medical supplies andequipment to developing countries.MillerCoors southwest sales team and Glazer’s Distributingteamed up with Habitat for Humanity.teaming withDistributorsOur distributorsalso know thatwith great beercomes greatresponsibility.2015 goalExceed$2 million annuallyin United WaycontributionsMillerCoorssouthwest salesregion teamed withGlazer’s Distributing Companyto build a Habitat for Humanity home in Dallas.Collectively, 30 MillerCoors and Glazer’svolunteers dedicated eight Saturdays to constructthe home, a total of 1,400 volunteer hours.Through our Coors Light Compartiendo MesaFood Basket Program, we work with distributorsand community organizations to assemblefood baskets for families during the holidays.In 2009, we donated more than 6,000 basketsin seven communities.24looking back.MillerCoors successfully met its corporate social investmentgoals in 2009, establishing a three-year strategy and launching anenterprise-wide United Way campaign that resulted in a donationof more than $1.6 million. Progress was also made in the company’smulticultural relations strategy in aligning strategic partnerships.looking•ahead.Increase employee participation in Water Stewardship Month byfive percent•Grow the United Way campaign participation rate by 10 percentLeverage multicultural programs and relationships into sales and•marketing objectivesIncrease employee volunteer hours by five percent

employees Live UnitedMillerCoors introduced its first United Way employee giving campaign,spanning 12 locations and nearly 8,700 employees. To help maximizeemployee contributions, MillerCoors offered a company match fordonations and matched one dollar per employee volunteer hour.We donated a grand total of more than $1.6 million to United Way agenciesin our corporate headquarter and brewery communities.25

e t h i c s a n d t r a n s p a r e n c yGREAT PRACTICESGreat Beer, Great Responsibility means we arecommitted to growing our business the rightway. Ensuring ethical practices both withinthe organization and throughout ourentire value chain is a top priority.In 2009, we redesigned our Codeof Business Conduct and issued anew training tool to all employees,who affirm the Code annually. Wealso achieved our goal of issuingthe Code to distributors and top retailchain accounts. Furthermore, in everypurchase order and supplier contract we includerequirements to abide by provisions of our Code.MillerCoors plays an active role with externalorganizations, including the Corpedia AdvisoryBoard, the Corporate Executive Board Complianceand Ethics Leadership Council, and the Ethicsand Compliance Officer Association, to conductbenchmarking and maintain leading edgetechniques for ethics and transparency.Sustainable LeadershipMillerCoors is a joint venture wholly owned byour parent companies, SABMiller and MolsonCoors. Both parent companies are global leadersin sustainable development and actively guideMillerCoors progress. MillerCoors Board of Directorsincludes members from both parent companies.One of three Board-level committees, CorporateResponsibility and Ethics, charts our progress andmeets at least three times each year.Our Sustainability Leadership Council includes 36employees from all functions of the business andmeets quarterly to set goals and guide MillerCoorssustainable development strategy. MillerCoors alsohas an internal Compliance Committee that meetsquarterly to review ethics issues.2015 goalImprove overallSustainabilityAssessment Matrix(SAM) scoresby 5%Members of our Sustainability Leadership Councildiscuss sustainability initiatives.Tracking Our ProgressMillerCoors utilizes the Sustainability Assessment Matrix (SAM), ameasurement tool and benchmarking system based on inputs from theGlobal Reporting Indicators G3 guidelines and UN Global CompactPrinciples, to track its progress. Twice yearly, we complete a SAMassessment on 10 global sustainable development priorities, and theresults are sharedpublicly at www. THE FOUR LEVELSsabmiller.com/files/4reports/sdreporting.Each priority has a‘stairway’ that plotsa course throughfour levels ofperformance from 1minimum standardto best practice.During the most recent reporting period, MillerCoors overall SAM scoreimproved by 3.5 percent, from 3.08 to 3.19. In addition, more than60 percent of our scores are at a level three or higher.MillerCoors operations are governed by federal and state regulations.In 2009, we paid three environmental penalties from violations at ourCalifornia, Texas and Golden breweries, and received an OSHA citationregarding electrical safety standards at our Golden brewery. We havesince made improvements to ensure compliance.3best practiceAchieving what is currently considered to beglobal best practice in a particular field.developing leadershipApplying a comprehensive approach includinginnovative tools and widespread engagement.2 progressingEnsuring consistent performance is achieved in a particular field.Minimum standardAll operations must achieve level 1 as it represents management of the keysustainable development risks we are facing today. The Executive Committeehas mandated that where operations do not meet level 1 currently, they mustimplement a plan to reach this level as soon as possible.26looking back.We met our 2009 ethics and transparency targets. We furtherembedded sustainability into the business, established a crossfunctionalSustainability Leadership Council, as well as several workingsubcommittees. MillerCoors also improved its overall SAM score andestablished corporate and brewery “green teams.”looking ahead.Improve stakeholder dialogue through GreatBeerGreatResponsibility.com•Provide ethics advice to the field sales organization via townhall meetingsImprove and enhance Integrity Program through online training with•MillerCoors UniversityEngage employees in culture of sustainability

third party viewpointsMillerCoors brews great beer, but we also have a great responsibility to our people, partners and communities. A key part of ourstrategy is to meaningfully engage our stakeholders and work together on our sustainable development commitments. MillerCoorsasked a representative group of stakeholders to provide an analysis of our performance in 2009 and give input on how we can focusour efforts moving forward.SEARCH INSTITUTE | Peter L. Benson, Ph.D., President and CEO“MillerCoors has been a respectful, honest and collaborative partner for Search Institute for more than half a decade. Ourpartnership is innovative on a number of fronts and built on a strong research foundation that emphasizes what parents can do tokeep their teens from using alcohol—beyond just talking about it.The company has taken a bold and innovative approach to corporate social responsibility that is worthy of emulation by othercompanies. We have appreciated how MillerCoors has spurred us to grow and think beyond our current approaches. The companyhas shown its commitment over the long term to focus its investments and commitments in places that are effective in the longterm,even when the results may not be easy to see right away.The year 2009 was pivotal for the Search Institute, and with support from MillerCoors we were able to revamp the website toParentFurther.com [one of Search Institute’s most important education tools] and expand its content. Their investment in ourwork has been leveraged to attract other corporate sponsors, key national partners and other leaders, who have made this work onparent engagement a top priority and strategy for Search Institute.”The Nature Conservancy | Dayna Gross, Silver Creek Preserve Manager“The Silver Creek Preserve in Central Idaho is a recipient of a MillerCoors grant that has allowed us to embark on a watershedplanning effort, something we have needed for many years. We are working closely with stakeholders, including many MillerCoorsbarley farmers, to develop a vision for the watershed which includes water conservation on working farms and ranches. Thestakeholders have been surprised and impressed that MillerCoors is funding much of this work.The goal of this pilot project is to create an example of how you can make simple changes and save substantial amounts of bothwater and energy to keep more water in the aquifer and in Silver Creek. For example, the retrofitting of one pivot could save125,000 gallons of water every time the pivot completes a circle—roughly once every two days.The hurdles we face with this project are not unique. We first have to get stakeholders on board, find matching funds andimplement the conservation strategies. This grant has allowed us to develop a plan and begin implementation. And if successful,we will have several more years of implementation required to maximize the benefits.”The Sustainability Consortium | Dr. Jon Johnson, The Sustainability Consortium Co-Director,Professor, Sam M. Walton College of Business, University of Arkansas“The current sustainability measurement and reporting environment for manufacturers and retailers is fragmented and has nostandardized method. Few, if any, existing systems account for a full product life cycle analysis and most focus on a single dimensionof sustainability. The Sustainability Consortium is working with MillerCoors to develop integrated sustainability measures andreporting standards.MillerCoors research shows that much of its environmental impact lies outside its own boundaries, throughout the supply chain.With this comes an appreciation of the need for a comprehensive, credible system, both affordable and accessible to its supply chain.Our partnership is still young, but in the early stages we have been impressed with the level of commitment – actions in additionto resources – MillerCoors has exhibited. From the company’s past success in reducing its water and carbon impact, and fromits aggressive goals for further reductions, I believe the company is well positioned to lead the beverage industry on several keydimensions of sustainability.As impressive as the company’s gains have been, I’m anxious to see how much additional progress it can make through its ongoingefficiency improvements, and would like to see water and carbon goals extended to include more of their supply chain. We are lookingforward to MillerCoors continued participation in the Consortium, but beyond that it would be particularly exciting to work togetherto find innovative ways to use the information and tools we are co-creating.”HISPANIC ASSOCIATION ON CORPORATE RESPONSIBILITY | Carlos Orta, President and CEO“The partnership between MillerCoors and the Hispanic Association on Corporate Responsibility (HACR) dates back nearly25 years, when Coors Brewing Company provided a seed grant to launch HACR. Our objective today remains to work withcompanies in a proactive manner with a single focus: the U.S. Hispanic community.We have an outstanding working relationship with MillerCoors. They have a strong commitment to multiculturalcommunities, and they understand these communities will fuel their growth and profits over the next several decades andthey are investing accordingly.MillerCoors willingness to be transparent sets them apart from their direct competitors as well as other companies. MillerCoorssenior leadership is fully committed to diversity and Hispanic inclusion, and that is reflected throughout the rest of the company.There is always room for improvement and we are confident that MillerCoors is willing to invest the resources needed to createAmerica’s Best Beer Company. Our partnership with MillerCoors is very important to our organization and it is a partnership thatwe tout as a role model for other corporations. MillerCoors has not only set the standard, but continuously raises the bar throughinnovative and strategic products, programs and initiatives.”27

e x t e r n a l c o m m e n t a r ySTATEMENT BY CORPORATE CITIZENSHIPMillerCoors as a single entity has existed for two years. Thesustainable development commitment from both parent companiescontinues to serve as a foundation for MillerCoors; however,MillerCoors has moved forward significantly in advancing itsown sustainable development activities over the past year.The next few years will continue to require the company tofocus on developing and fine-tuning its policies, systems andpractices to meet its sustainable development commitments.MillerCoors second sustainable development report highlights theprogress the company has made in just one year. The company hasundertaken many of the commitments made in last year’s report,especially in the “Looking Ahead” section, and recommendationswe outlined in our commentary last year, which together haveimproved their sustainable development program and theirreporting. MillerCoors has completed a carbon footprint for 13product SKUs, set 2015 goals for non-environmental areas such asalcohol responsibility and included stakeholder perspectives on thecompany’s partnerships.This year’s report includes other aspects of best practice reporting.The addition of charts that show performance, trends from lastyear and distance to the 2015 goals, as well as a qualitative andquantitative explanation of the company’s carbon footprint frompackaging, makes it easier for readers to understand MillerCoorsimpact in key areas. The report aims to improve transparencyby discussing a few challenges last year, noting how MillerCoorsperformed on its commitments in last year’s report across each area(i.e. “Looking Back, Looking Ahead”) and highlighting the call toaction from a few partners.Going forward we identify three main areas that MillerCoors shouldaddress. First, MillerCoors has a five-point sustainable developmentmodel, which provides a starting point for managing and reportingsustainable development. MillerCoors can take the next step byfocusing on a handful of issues where it has the most impact asan alcoholic beverages company, which could include alcoholresponsibility, water and climate change.Second, the inclusion of third party viewpoints, summary ofstakeholder engagement methods and signposts to the company’swork with each stakeholder group does increase MillerCoorscredibility. However, during our conversations with MillerCoors wegot the impression that stakeholder engagement could be expandedinto a more systematic approach that involves greater two-waydialogue with a variety of internal and external stakeholders. Inturn, MillerCoors should report in greater detail on its stakeholderengagement process, including stakeholders’ main concerns andthe company’s responses, and on the results from its company’semployee and customer satisfaction surveys.Third, the report includes a variety of points that helpcreate a comprehensive picture of MillerCoors sustainabledevelopment activities. Still, some topics could be coveredin greater detail, such as additional health and safetymetrics (e.g. fatalities), supply chain risks stemming fromdomestic suppliers (e.g. illegal workers) and communityinvestment focus areas.MillerCoors report provides a good view into thecompany’s sustainable development activities. The GreatBeer, Great Responsibility website offers an opportunity forMillerCoors to expand upon and update the informationprovided in the annual Sustainable Development Report.Furthermore, the website could provide a forum throughwhich to create conversations with and gather feedbackfrom interested groups.Corporate CitizenshipMay 19, 2010www.corporate-citizenship.comabout corporate citizenshipand our roleCorporate Citizenship is a specialistmanagement consulting companyadvising corporations that seek toimprove their economic, social andenvironmental performance.We provide assurance services of SABMiller’sSustainability Development Report and MolsonCoors environmental data. Our assurancestatements are available on the parentcompanies’ websites.MillerCoors commissioned us to prepare anexternal commentary on this report. Our workwas comprised of interviews with a cross-sectionof managers from relevant departments, a reviewof best practice reporting by other brewingcompanies and a review of the company’s inputsinto the Sustainability Assessment Matrix (SAM).This statement does not constitute independentassurance as we have not verified the report’scontent nor assessed inclusively, materiality orresponsiveness to stakeholders.28

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