S U S T A I N A B L E S U P P L Y C H A I NGreat Suppliers<strong>MillerCoors</strong> 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 <strong>great</strong> <strong>beer</strong>s andare actively involved with the growersand suppliers who provide us with rawmaterials. Through its Grower DirectProgram, <strong>MillerCoors</strong> 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 of<strong>MillerCoors</strong> 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, <strong>MillerCoors</strong> 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 <strong>beer</strong>, helping maintain flavor and stability.Hops growing is a small industry, with only about 25 U.S. growers.<strong>MillerCoors</strong> 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 <strong>MillerCoors</strong> 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.”<strong>MillerCoors</strong> 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, <strong>MillerCoors</strong> 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.<strong>MillerCoors</strong> 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, <strong>MillerCoors</strong> 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.<strong>MillerCoors</strong> 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. <strong>MillerCoors</strong> partners with theDiversitypercent of our total procurementNational Black Economic Development Coalition and the(<strong>MillerCoors</strong> 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.• <strong>MillerCoors</strong> 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, <strong>MillerCoors</strong> 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 <strong>MillerCoors</strong> 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