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Fortnum & Mason<br />

Corporate Social Responsibility Policy 2011


1. Introduction 3<br />

2. Fortnum & Mason<br />

– About our Business 6<br />

1. Company details 6<br />

2 Description of our business 6<br />

3. Main products 6<br />

4. Main services 6<br />

5. Main suppliers 6<br />

6. Main customers 6<br />

3. Fortnum & Mason<br />

– Products and Suppliers 7<br />

1. Mission statement 7<br />

2. Food buying pillars 7<br />

3. Fashion and Home buying pillars<br />

4. Requirements for own label<br />

9<br />

and proprietary brands 10<br />

5. Animal welfare 13<br />

6. Local sourcing 13<br />

7. Foie gras 15<br />

8. Organic food 16<br />

9. GMO 16<br />

4. Fortnum & Mason<br />

– The Environment 22<br />

1. Environmental statement 22<br />

2. Environmental policy 23<br />

3. Carbon management policy 23<br />

a. Energy efficiency 23<br />

b. Waste management 24<br />

c. Packaging 24<br />

d. Couriers 24<br />

e. Supply chain 25<br />

f. Construction 25<br />

CONTENTS<br />

2<br />

5. Fortnum & Mason<br />

– The Community 26<br />

1. Charitable giving 26<br />

2. Volunteering 27<br />

3. Local organisations 27<br />

4. The Arts 27<br />

5. Piccadilly Project 27<br />

6. Fortnum & Mason<br />

– Our People 28<br />

1. Equal opportunities policy 28<br />

2. Skills and training 29<br />

3. Staff engagement 29<br />

4. Benefits and reward 30<br />

7. Fortnum & Mason<br />

– Our Customers 32<br />

1. Service 32<br />

2. Value 32<br />

3. Quality 32<br />

4. Communication and engagement 32<br />

5. Accessibility 32


INTRODUCTION<br />

Fortnum & Mason was founded in St. James’s more than 300 years ago.<br />

From the very beginning the business sought to provide groceries and<br />

related products of the highest possible quality to discerning customers.<br />

The business developed into a unique emporium selling goods that<br />

were available nowhere else, often being the first to introduce new<br />

products such as spices and teas in the 18th century and hampers in<br />

the 19th century.<br />

The business is fiercely proud of its heritage and traditions, but is<br />

equally enthusiastic about introducing change and developments to<br />

meet the requirements of today’s business and its key stakeholders.<br />

From a single store in Piccadilly, the modern business now comprises<br />

not only the flagship store, but a rapidly developing mail order and<br />

internet business, five restaurants, an event’s catering business and a<br />

strong international presence, with Fortnum & Mason products being<br />

sold in 14 countries around the world.<br />

Fortnum & Mason is a privately owned business which allows us<br />

to take a long term view of our business activities and to always do<br />

what is right for the long term sustainability of the company and<br />

what is right in terms of our social and environmental responsibilities.<br />

Our vision for the business is that we should strive to be:<br />

“A prosperous and very English retailer of the most inspiring<br />

products and services in the world across food, drink, entertaining<br />

and celebration for customers who want the very best.”<br />

3


Integrity<br />

Values<br />

Underpinning all our activities are our values<br />

by which we constantly judge our actions.<br />

We will always be honest and sincere in our dealings<br />

with customers, staff, suppliers and other stakeholders.<br />

We will deliver what we say we will deliver, and we will<br />

always be consistent and straight forward in our dealings<br />

with others. We will be uncompromising in terms of doing<br />

the right thing and being good citizens.<br />

Innovation<br />

We will continuously challenge the status quo and<br />

convention in pursuit of innovative and creative ideas. We<br />

will be pioneering in our thoughts and actions, seeking out<br />

the best ideas and products from around the world.<br />

Inspiration<br />

We will aim to inspire, surprise and delight our customers,<br />

staff, suppliers and other stakeholders by offering the<br />

unexpected and exceeding expectation.<br />

5<br />

Excellence<br />

Everything we do we will do to the highest possible<br />

standard to meet the most discerning standards.<br />

Ethical<br />

We will ensure that everything we do is to exemplary<br />

standards of conduct, is sustainable and morally defensible.<br />

We will ensure that the way in which we carry out our<br />

business is rewarding for all those involved.<br />

Enduring<br />

We will ensure that everything we do is suitable for the<br />

long term sustainability of our business, our community,<br />

our environment and our stakeholders. We will never<br />

take the expedient short term route where the enduring<br />

longer term solution is a better one.<br />

In this report we have focussed on the key elements of our CSR policy; our products and suppliers, our environment,<br />

our community, our people and our customers.<br />

We are totally committed to upholding the highest possible standard of corporate responsibility. We recognise, however,<br />

that we have more to do. With the comprehensi<br />

ve refurbishment of the Piccadilly store for our tercentenary in 2007, we have added floor<br />

space and introduced some air cooling, all of which adds to the challenge of reducing our<br />

energy consumption.<br />

We are determined to ensure that corporate responsibilities are embedded in all our activities and reviewed regularly<br />

at the highest level against measurable targets.<br />

I believe that this report illustrates that we have made progress this year and confirms our commitment to drive<br />

continual improvement. We are committed to continuing our long tradition of ethical business practices into our<br />

fourth century.<br />

Beverley Aspinall<br />

Managing Director<br />

March 2011


1. Company Details:-<br />

• Turnover<br />

o £56.1m at 53 weeks ending 18/7/10<br />

• Employees<br />

o 450 as at 27/7/10<br />

• Trading locations<br />

o Piccadilly, London<br />

o Terminal 5, Heathrow<br />

o UK Airports<br />

o Japan<br />

o Europe<br />

o USA<br />

Chapter 2<br />

Fortnum & Mason – About Our Business<br />

Fortnum & Mason was established in 1707 and has been owned<br />

by the Weston family since 1951. The Garfield Weston Foundation<br />

owns 79.2% of Wittington Investments which is the ultimate holding<br />

company of Fortnum & Mason. The current chairman, Kate Hobhouse,<br />

is the granddaughter of Garfield Weston.<br />

• Type of business<br />

o English luxury retailer and restaurateur with the<br />

product categories of food, drink, entertaining<br />

and gifting.<br />

2. Description Of Our Business<br />

Fortnum & Mason is a multi channel retail and<br />

hospitality business. Its operations include:<br />

• Piccadilly retail and hospitality<br />

• Mail order<br />

• Internet (UK and worldwide)<br />

• Corporate sales<br />

• UK airports<br />

• International division<br />

• Events catering (Fortnum & Mason Events)<br />

• Private functions<br />

6<br />

3. Main Products<br />

• Tea<br />

• Groceries<br />

• Confectionery<br />

• Hampers<br />

• Wine<br />

4. Main Services<br />

• Retail shopping<br />

• Restaurants<br />

• Events catering<br />

• Internet shopping<br />

• Mail order shopping<br />

5. Main Customers<br />

• Private individual customers<br />

• Corporate clients<br />

• Organisations for event catering<br />

• Japanese operating partner – Juchheim<br />

• Airports<br />

We work closely with our suppliers and customers to<br />

ensure that quality assurance and product integrity are<br />

maintained at all times.<br />

Environmental issues relevant to the business are discussed at<br />

monthly board meetings, with the Managing Directors holding<br />

direct responsibility for driving continual improvement.


Chapter 3<br />

Fortnum & Mason – Products and Suppliers<br />

1. Mission Statement<br />

Fortnum & Mason will only source and stock the best quality products<br />

for own label lines and proprietary brands. We work closely with our<br />

suppliers to develop product that is as natural as possible, only using<br />

quality ingredients without using unnecessary additives or chemicals.<br />

2. Food Buying Pillars<br />

These are our principles for developing own label products but they also apply to the proprietary products that we buy.<br />

• Quality – We provide our customers with the best tasting food by ensuring that we use only the finest ingredients<br />

and production methods. We only work with the most skilled producers and always try to promote traditional and<br />

artisan methods of production. Our rigorous quality control procedure and standards of traceability ensure not only<br />

that our products are safe and always reach our customers in peak condition, but that also the stipulated highest quality<br />

ingredients are used throughout the supply chain. Our breadth of range will always ensure that we have the right quality<br />

for any occasion.<br />

• Englishness – Across everything Fortnum & Mason is and does runs its English character. The company is a fusion<br />

of eclectic influences. We provide our customers with a range of products either sourced from England, have been<br />

adapted to the English taste, or stem from our heritage.<br />

• Seasonality – We always aim to provide our customers with a seasonal range of products.These products reflect the<br />

British growing seasons. This philosophy extends to the recipe based products not just the fresh produce. We also<br />

develop products for the major English celebrations, English traditions and the leisure activities of our customers.<br />

• Ethical and Environmental – We never deviate from our CSR policy. Many of our suppliers are very small, and we<br />

support them to ensure a continuing supply. We always develop close relationships with our suppliers allowing us to<br />

ensure that they are following a responsible code of conduct towards any livestock and to ensure that they and their<br />

employees are being paid a fair price for a product.<br />

We do not subscribe to any one Agricultural Policy, we subscribe to agricultural practices where tradition and time<br />

are respected. Animal Welfare is very important to us and we believe if kept to the highest standards it also leads to a<br />

discernable difference in product flavour.<br />

Wherever possible we always support rare breed meats that are traditionally bred, reared and handled as we believe this<br />

results in a better quality meat. We like to source our beef, pork and lamb from the Royal farms.<br />

All products containing livestock are also consistent with our CSR policy.<br />

We are currently working toward removing all non-essential food additives from our recipes i.e. those that are not required<br />

for a technical function, endeavouring to use natural alternatives.<br />

7


Fish – We aim to stock only cold water fish from around<br />

the British Isles and for our stock to conform to the Marine<br />

Conservation Society guidelines for fish to eat and fish<br />

to avoid. We are a traditional retailer with a long history<br />

of selling traditional products such as smoked salmon.<br />

We recognise that some species may be considered to<br />

be ‘at risk’, however, we endeavour to source such species<br />

from the most sustainable and environmentally sound<br />

fisheries/farms. We aim to actively manage our range to<br />

limit and/or provide alternatives to such species. We also<br />

aim to educate and diversify our customers’ taste in order<br />

to take demand away from vulnerable species.<br />

Three major factors will be considered during our buying<br />

decision for fish<br />

• Capture area/stock – only buy where fish level is<br />

deemed sustainable<br />

• Fishing method - wild and farmed fish.All farmed fish to<br />

be sourced from accredited fisheries (Soil Association<br />

or RSPCA Freedom Food)<br />

• Breeding season – will not source fish during the species<br />

breeding season<br />

We buy individual wild salmon caught off the North East<br />

of England, Scotland and in English rivers. Salmon fishing<br />

by named licensed fishermen, using nets and putches, yields<br />

naturally reared fish which are healthy, lean and better<br />

flavoured than intensively reared farmed fish. Fish farms are<br />

carefully chosen for their choice of diet, stocking density and<br />

tidal waters. We allow customers to choose between wild,<br />

farmed and organic farmed in both fresh and smoked salmon.<br />

Caviar is another traditional product we have sold for many<br />

years. We abide by the recent 5 year ban on quotas for<br />

Wild Caviar imposed by CITES and DEFRA. However,<br />

we will continue to sell the small quantity of wild caviar<br />

stock we have left. We have many farmed caviar alternatives<br />

including organically farmed caviar, to offer choice to all our<br />

customers. All our caviar carries full CITES accreditation<br />

stating where the caviar is from and giving us full traceability.<br />

Our pricing policy reflects the increased availability of farmed<br />

caviar, and the exclusivity of wild caviar. Our suppliers use<br />

all the sturgeon by product in further processing.<br />

8<br />

Beef – We only buy beef from farms that we feel have<br />

a deep respect for the breeding of steers in a stress free<br />

manner. The stewardship of the land on which these animals<br />

graze is of the utmost importance as we believe it directly<br />

affects the welfare and taste of the final product.<br />

Rather than using only the primal cuts, we strive to use as<br />

much of the carcass as possible through the supply chain<br />

within our business.<br />

We only stock veal that is English, free range, rosé and organic.<br />

Pork – We aim to buy extensively reared pigs that comply<br />

with UK Animal Welfare guidelines that are over and<br />

above the EU legal standards. We are also working toward<br />

ensuring that any processed product from our continental<br />

suppliers complies with UK standards of Animal Welfare.<br />

Lamb – We only source rare breed, extensively reared<br />

lambs/sheep that have been bred specifically for their<br />

flavour, we buy rare breed when possible.<br />

Poultry – We never buy from intensively reared farms.<br />

We always ensure that we buy from free-range farms.<br />

We are working toward using free-range eggs in all products<br />

made using egg.<br />

Wherever possible we buy game from named shoots/<br />

estates, preferably from wild game shoots with strong<br />

conservation policies.


3. Fashion and Home Buying Pillars<br />

Fortnum & Mason is predominantly known for being a food retailer but we take great pride in selling premium quality fashion<br />

and home goods as well. In order to maintain our high standards the following principles are vigorously maintained:<br />

• Quality – We provide our customers with luxury products by ensuring that we use only the best materials and production<br />

methods. We work with the most skilled producers and always try to promote traditional and artisan methods of<br />

production. We are working with our direct suppliers to apply quality control procedures and standards of traceability to<br />

ensure the product quality is maintained to an agreed specification.<br />

• Englishness – Across everything Fortnum & Mason is and does runs its English character. The company is a fusion of<br />

eclectic influences.We provide our customers with a range of products sourced from England, before working with artisan,<br />

exclusive and distinctive suppliers from across the globe.<br />

• Seasonality – We aim to provide our customers with a seasonal range of products to reflect the fashion seasons and<br />

fashion trends. We develop products for the major English celebrations, English traditions and the leisure activities of our<br />

customers. This philosophy extends to the home departments in addition to fashion lines.<br />

• Ethical and Environmental – We assess both the brand and the product against our CSR policy, taking information of<br />

relevance and pertinence from our suppliers’ CSR questionnaires, audits and specifications.<br />

We are working with our direct suppliers to ensure their commitment to best practice on all issues, such as protecting the<br />

environment, animals, child labour and renewable resourcing, to deliver ethical quality goods.<br />

We do not subscribe to any one manufacturing policy; we promote practices where tradition and time are respected. It is<br />

our aim to promote and implement progressive sustainable practices across the fashion design, sourcing and manufacturing<br />

supply chain.<br />

We have introduced quality assurance procedure, alongside a product traceability programme to aid best practice.<br />

Home & Beauty –These products are more difficult to track,<br />

but we work closely with our suppliers to ensure that none<br />

of the animal species, fauna or flora is from endangered<br />

species. Fortnum & Mason works to the guidance and<br />

recommendations of C.I.T.I.E.S (Convention on International<br />

Trade in Endangered Species) to ensure that international<br />

trade in specimens of wild animals and plants do not threaten<br />

their survival.<br />

Skins – We strive to use skins from sustainable sources and<br />

do not support the rearing of animals for the sole purpose<br />

of using their skin. We acknowledge animal welfare concerns<br />

surrounding the capture and killing of wild animals such as<br />

snakes, crocodiles and other reptiles. We do not promote the<br />

use of endangered or threatened species and use C.I.T.I.E.S<br />

and REDLIST data as guidelines for these practices.<br />

Hair & Horn – We promote the use of hair and horn from<br />

sustainable sources that are a by product of the animal rather<br />

than its sole purpose. We are supported by, and refer to, our<br />

Health and Veterinary Certificates and Supplier Declaration<br />

Articles for advice.<br />

Cotton – We will support the growth of organic cotton and<br />

wool, which ensures they are 100% naturally grown without<br />

chemicals or the use of genetically modified seeds.We have<br />

produced an allergen policy to which we refer to promote<br />

the use of fibre production processes that reduce the risk of<br />

an allergic reaction.<br />

Leather – We strive to use leather that is a by product of<br />

an animal’s life, taken from sustainable sources. We support<br />

the use of non-toxic varnishes and glues being used in the<br />

production of leather products.<br />

Silk/Fibre – We aim to promote the use of alternative fibres,<br />

including silk and hemp, which reduce the fashion industry’s<br />

reliance on chemicals and any consequential allergy reactions.<br />

9<br />

Feathers – We strive to support resources that are a by<br />

product or natural occurrence of life from sustainable stocks.<br />

We do not support the use of endangered species or<br />

gratuitous practices.<br />

Wood, Card, Paper – Forest Stewardship Council (FSC)<br />

certification is an increasingly important part of social<br />

and environmental standards in the market place. It is our<br />

practice to support and encourage suppliers to have FSC<br />

accreditation. We promote the use of recycled card and<br />

paper products.<br />

Animal Testing – We believe in improving the quality<br />

of human and animal life while taking responsibility for<br />

respecting the animals that support the research and for<br />

treating those animals humanely. We believe that research<br />

using animals should be well regulated. We support testing<br />

laws and regulations (Animals [Scientific Procedures] Act<br />

1986) that recognise animal life as valuable and the value of<br />

human life in animal testing.<br />

Craftsmanship – We support traditional craftsmanship of<br />

highly skilled and artisan suppliers, which allows us to offer<br />

exclusive and bespoke products.<br />

Processing – We have a Food Technologist specifically<br />

trained in Animal Welfare. We aim to have all manufacturers<br />

inspected and compliant with EU accreditation. It is our<br />

priority that the factories are traditional and as close to the<br />

product source as viably possible. Above all our philosophy is<br />

that all animals are treated with respect.<br />

Discovery – Fortnum & Mason built its reputation on<br />

innovation and we will always continue to search for the<br />

best and the most original products.We strive to be first to<br />

market and take pride in showcasing new and imaginative<br />

producers. We take advantage of the rich history of the<br />

business and encourage the promotion of classic trends.<br />

We are always prepared to develop or find products for<br />

adventurous consumers.


4. Requirement for Own Label and Proprietary Brands<br />

During the development of own label products the following procedures are followed. Own label products are continually<br />

reviewed throughout using a QC rota to ensure that the agreed product specification, processing procedures and packaging<br />

standards are maintained throughout each production run. By continually reviewing our products it will show if further<br />

development of the product is required. This QC rota allows us to monitor and maintain regular communication with our<br />

suppliers regarding the products they produce for us.<br />

• Own label product development<br />

- Seven stage process:<br />

1. Intent to supply agreement<br />

2. Audit of premises<br />

3. Review of manufacturing processes<br />

4. Product specification<br />

5. Shelf life testing<br />

6. Labelling<br />

7. Design and packaging<br />

All stages of the own label product cycle is monitored and<br />

kept electronically on the Technical Database (Hamilton<br />

Grant).<br />

• Acceptance criteria<br />

Unless the following criteria is provided and adhered to<br />

a product will not be stocked at Fortnum & Mason.<br />

• Product Review/Intent to supply<br />

o Availability of product<br />

o Seasonality<br />

o Exclusivity<br />

o Methods used for manufacture<br />

• Is the product organic?<br />

• Have any chemicals been used?<br />

• Is there any risk of GMO within the product?<br />

o Labour<br />

o Working conditions for employees/guaranteed no<br />

slave/child labour<br />

o Quality of product<br />

o Legality<br />

o Safety of product<br />

o Food safety procedures<br />

o Sensory testing/approval<br />

10<br />

• Product Specification<br />

Specifications must be completed by the supplier before<br />

the product can be offered for sale.A specification must<br />

be completed for all Fortnum & Mason label products<br />

o Fortnum & Mason Product Specification (QAF:01)<br />

o Fortnum & Mason Wine Specification (QAF:101)<br />

The product specification will be monitored and<br />

enforced by the Food Safety &Technology Department.<br />

Any amendments to the specification must be sent to<br />

the Food Safety & Technology Department to update<br />

the specification held on file.<br />

• Supplier Approval<br />

Our buyers must personally visit premises, interrogate<br />

both product and its creator and understand their<br />

philosophy. If we feel they share our values then<br />

we work with them to bring their product to our<br />

customers – and to develop new and interesting ideas<br />

for the future. Many of our sources are very small and<br />

we support them to ensure continuing supply. After this<br />

initial agreement to enter into business, the following<br />

information/documents must be obtained prior to<br />

accepting the first delivery of finished product:<br />

• Supplier Self Audit Questionnaire<br />

• Audit<br />

• Product specifications<br />

• Financial/credit check<br />

• Final artwork approval


• Supplier food safety and approval requirements<br />

Traceability Procedures All products supplied/made<br />

for Fortnum & Mason must have full traceability and<br />

must be traceable one step forward and one step<br />

backwards through the chain, as per the General Food<br />

Regulations 2004 (178/2002 – Article 18).Traceability is<br />

required in order to accommodate a full product recall<br />

or withdrawal of a product from the market (178/2002<br />

– Article 19)<br />

Lot codes The supplier must provide lot codes on all<br />

products to ensure traceability and to comply with The<br />

Food (Lot Marking) Regulations 1996. Each product<br />

will have a unique reference number relating to the<br />

production run this number identifies.<br />

Any product decanted by our Catering team will ensure<br />

that use before dates are clearly marked on the boxes<br />

provided for storage.<br />

Manufacturing Processes All suppliers must comply<br />

with 852/2004 The Hygiene of Foodstuffs. Under this<br />

regulation are a number of articles which must be met<br />

in order to produce safe food. Suppliers must have strict<br />

manufacturing processes in place to ensure that food<br />

safety is managed throughout the entire manufacture<br />

process. Procedures based on HACCP principles<br />

(Hazard Analysis & Critical Control Points) must be in<br />

place and documented, as per article 5 of 853/2004.<br />

Shelf-lifeTesting The acceptable life of the manufactured<br />

product must be established so that its safety and<br />

integrity are not compromised. Shelf life data must be<br />

available for both the unopened and opened product.<br />

Testing is required on both ambient and chill<br />

temperatures to ascertain the time over which the<br />

product can be stored without the loss of quality<br />

or compromising any food safety element, thereby<br />

determining the optimum in-store display parameters<br />

(time and temperature) and consumer life.<br />

Nutrition Labelling Nutritional analysis must be carried<br />

out on all products that will be offered for sale to Fortnum<br />

& Mason’s international food markets. Nutritional<br />

information must be provided to meet labelling legislation<br />

requirements of our export markets. The Buyer is<br />

responsible for ensuring that the supplier carries out full<br />

nutritional testing, which must either be recorded on the<br />

specification or a copy of the analytical report must be<br />

sent to the Food Technology Department.<br />

11<br />

Product Labelling All products must comply with The<br />

Food Labelling Regulations 1996 and requirements on<br />

what information must appear on the food and how it<br />

must appear.<br />

o Name of the food<br />

o List of ingredients<br />

o Quantity of certain ingredients or categories<br />

of ingredients<br />

o Appropriate durability indication<br />

o Any special storage conditions or conditions<br />

of use<br />

o Name or business name and address or<br />

registered office of either<br />

o Place of origin or provenance of the food<br />

if failure to provide this could mislead<br />

the customer<br />

o Instructions for use, if failure to do so may<br />

mislead the customer<br />

o Allergen information<br />

o Net weight or volume – Weights and Measures<br />

Act 1985 and Weights and Measures (Packaged<br />

Goods) Regulations 2006


Chemicals Our policy has always been not to use<br />

chemicals where they are unnecessary, and not to<br />

use chemicals known to be hazardous. However, food<br />

additives may need to be used and when used, must be<br />

used as per the specified regulations for the product.<br />

We recommend that our suppliers use natural flavours<br />

and colours whenever possible and any other additives<br />

that must be used to perform a technical function are<br />

sourced from natural sources.<br />

Supplier Documentation required<br />

o Sourcing Policy<br />

o Food Safety Hygiene Policy<br />

o Environmental Policy<br />

o Ethical Policy<br />

o Foreign Body Prevention Policy<br />

o Glass & Hard Plastics Policy<br />

o Pest Control Policy<br />

o HACCP<br />

o Manufacture Process Flow Document<br />

o Allergen Policy<br />

o Fortnum & Mason supplier self audit questionnaire<br />

o Fortnum & Mason product specification<br />

o Fortnum & Mason product standards document<br />

Product Integrity To maintain the integrity of the<br />

products supplied to Fortnum & Mason, a number of<br />

procedures have been put in place throughout our<br />

internal distribution and storage process up to the final<br />

point of sale.<br />

o Receiving procedure<br />

o Storage<br />

o Dispatch/mail order of fresh food<br />

o Food Safety Manual for food counter staff<br />

o Internal audits<br />

o External audits by an independent<br />

3rd party auditor<br />

12<br />

Audits When new suppliers are engaged, a Supplier Self<br />

Audit Questionnaire must be completed and sent to<br />

the Food Safety &Technology Department for approval.<br />

From the information provided in this document and<br />

the risk level of the food operation the Food Safety &<br />

Technology Department will decide who will carry out<br />

the audit of the premises.<br />

Suppliers will be classed as high, medium or low risk and<br />

this will dictate how often and who is able to carry out<br />

the audit.<br />

• High Risk Every 12months<br />

• Medium Risk Every 18 months<br />

• Low Risk Every 36 months<br />

High Risk Medium Risk Low Risk<br />

Cooked meat &<br />

poultry products<br />

Cooked meat<br />

products (including<br />

gravy, meat pies,<br />

pâté, cook-chill<br />

meals)<br />

Cooked eggs and<br />

egg products,<br />

particularly those<br />

made with raw<br />

eggs and not<br />

thoroughly cooked<br />

Shellfish and other<br />

seafoods<br />

e.g. raw oysters,<br />

mussels and<br />

cooked prawns<br />

All other fresh<br />

foods not listed<br />

under the High<br />

Risk category<br />

Ambient stable<br />

foods (bread,<br />

biscuits, cereals,<br />

crisps and cakes)<br />

Preserved foods<br />

e.g. sterilised milk<br />

or canned food<br />

whilst unopened<br />

Dried products<br />

Acid foods e.g.<br />

fruit, vinegar or<br />

products stored in<br />

vinegar (pH


5. Animal Welfare<br />

Fortnum & Mason works closely with its UK suppliers of animal products to ensure that the protection of the health and<br />

well being of the animals are maintained to a high standard. UK suppliers must work to the ‘Five Freedoms’ framework<br />

which must apply whether on the farm, in transit, at market or at a place of slaughter.<br />

Five Freedoms (Farm Animal Welfare Council)<br />

1. Freedom from hunger and thirst<br />

2. Freedom from discomfort<br />

3. Freedom from pain, injury or disease<br />

4. Freedom to express normal behaviour<br />

5. Freedom from fear and distress<br />

6. Local Sourcing<br />

We buy our goods as close to home as we can, from suppliers with sustainable agricultural policies. 86% of our suppliers<br />

are from the UK with our closest source being the bees on our roof on Piccadilly. We support small suppliers of excellent<br />

quality goods, always buying to quality rather than price. We are often the sole remaining stockists of a particular producer,<br />

doing our utmost to keep local traditions alive and profitable.<br />

Case study<br />

One of the ways we can demonstrate our commitment to sourcing product from the UK is the recent decision<br />

to relocate our tea business. The incumbent supplier has been an excellent supplier for the past 50 years but<br />

decided to move their main production outside the UK. We felt that this didn’t sit with our brand values so we<br />

made the difficult decision to move our business to a British supplier.<br />

The business is still built on the<br />

uniquely close relationships<br />

which the van salespeople<br />

have with their customers,<br />

many of which go back<br />

several decades.<br />

13<br />

There is an accepted link between good welfare practices<br />

and the production of good carcass and meat quality. In<br />

order for Fortnum & Mason to assess the welfare practices<br />

of its suppliers, Fortnum & Mason’s Food Technologist is a<br />

trained Animal Welfare Officer (AWO).<br />

The History of Ringtons<br />

Ringtons was founded in 1907 by Samuel Smith, and<br />

it remains a family business: three of Sam’s greatgrandsons<br />

are actively involved in running the company<br />

today, and are totally committed to Sam’s founding<br />

values of quality and service. The business is still built<br />

on the uniquely close relationships which the van<br />

salespeople have with their customers, many of which<br />

go back over several decades: Glyn Meredith recently<br />

retired after delivering to the same groups of houses<br />

and customers for 42 years.<br />

The company began in 1907, when Samuel Smith<br />

moved from Leeds to Newcastle to set up his own<br />

tea delivery business. With an initial investment of<br />

£250 from a business partner, William Titterington, Sam<br />

began making door to door tea deliveries to customers<br />

using his instantly recognisable horse and carriage. The<br />

Ringtons name was formed from the last part of the<br />

name Titterington, with the ‘S’ for Smith.<br />

A year later, two horses were in operation and Sam<br />

Smith had four loyal assistants to help cope with what<br />

was a rapidly expanding enterprise. By 1914, Samuel<br />

Smith had bought out William Titterington’s share of the<br />

business and Ringtons was growing into a true family<br />

business - Samuel’s son, Douglas, joined the company as<br />

a tea delivery boy.


The First World War had a huge impact on the<br />

company. Many of the employees were sent to fight<br />

for the country and rationing and sales laws were put<br />

into force. Samuel promised the servicemen their jobs<br />

would be waiting for them on their return and sure<br />

enough, all 12 surviving members of his former staff<br />

came back to their jobs.<br />

In the early 1920s, Ringtons bought two motorised<br />

vehicles, although it seemed that most customers still<br />

preferred their tea delivered by the traditional horse<br />

and cart, and it wasn’t until 1962 that the last horse<br />

(Monty) finally retired.<br />

Ringtons was again seriously affected by the Second<br />

World War. Over 400 Ringtons employees, including<br />

Samuel’s four grandsons, were called up to fight and<br />

by 1943, 200 vans were taken off the road. Once<br />

again, the business was kept going and the surviving<br />

servicemen, including his grandsons, returned to work<br />

for the company.<br />

All Fortnum & Mason Teas are purchased in accordance<br />

with Ethical Tea Partnership (ETP) standards. These<br />

standards aim to ensure that all its tea is from sustainable<br />

sources.<br />

The ETP began work in 1997 as the Tea Sourcing Partnership,<br />

an organisation started by a number of UK based tea<br />

packing companies who decided to work together on<br />

sustainability issues in their supply chains, rather than to<br />

compete on ethics. Membership grew rapidly and there<br />

are now twenty members from Europe, North America<br />

and Australasia.<br />

In September 2004 they changed their name to the Ethical<br />

Tea Partnership. In its 12 year existence, ETP has grown<br />

in geographical scope, gradually covering all the major<br />

tea export regions. They are now active in all areas of the<br />

world where F&M purchases its tea stocks: China, North<br />

India (Assam, Darjeeling), South India (Kerala,Tamil Nadu),<br />

Indonesia, Kenya, Malawi, Sri Lanka and Tanzania.<br />

14<br />

Samuel Smith passed away aged 77 in 1949 and his<br />

sons took on the business. This was only the beginning<br />

of Smith generations following in their parents’<br />

footsteps.<br />

After over 100 years, the famous Ringtons vans still<br />

continue their door to door deliveries all the way from<br />

Scotland down to Peterborough and from Lancashire<br />

across to East Anglia, a total of 28 sales offices serving<br />

275,000 households. They blend all their own teas,<br />

and roast all their own coffees. Ringtons opened their<br />

new factory in 1992, but the head office is next door<br />

to the original factory in Byker, which is a famous<br />

local landmark.<br />

Now, the fourth generation of the family, Nigel, Simon,<br />

and Colin Smith, run the business on a daily basis as it<br />

continues to flourish.<br />

ETP’s Regional Managers work with producers to address<br />

issues identified by monitors and support sustainability<br />

improvements. As well as organising its own monitoring of<br />

estates,ETP works with certification programmes operating<br />

in the tea sector to facilitate third party certification where<br />

this is of interest to producers and ETP members (e.g.<br />

Fairtrade, Rainforest Alliance).<br />

ETP also works with a range of development agencies,<br />

government and UN organisations and technical specialists<br />

on projects to improve the lives of workers in the tea sector.<br />

The ETP is a member of the Ethical Trading Initiative (ETI).<br />

All suppliers are requested to supply details of their own<br />

environmental policy along with a requirement to verify<br />

that fair trade and ethical standards are observed at all<br />

times. All practices are reviewed annually.


7. Foie Gras<br />

Fortnum & Mason is a traditional retailer and over the centuries we have established a strong reputation for supplying<br />

traditional foods, amongst which is foie gras.<br />

We fully acknowledge the issues and concerns people have about the production of foie gras, therefore in 2005, we<br />

completely reviewed our policy and put together our Gold Standards for production which have now been fully implemented.<br />

Through our research, we identified that duck foie gras is produced as a relatively inexpensive commercial product in<br />

intensively reared farms, so we took the decision to discontinue duck foie gras and we now only sell goose foie gras from<br />

artisan producers who have the utmost concern for the welfare of their birds.<br />

We only source our foie gras from two farms in France, which we visit and audit regularly to ensure that our Gold Standards<br />

are being maintained. Our birds are kept in small flocks and are reared free range up to their 15th week. The farmer lives<br />

on site and manages the geese through their life cycle and personally feeds them by hand during gavage. At every stage<br />

of their life, the birds are free to move around and during gavage they are fed with corn four times a day to aid digestion.<br />

We also monitor the death rate on the farms and we have no deaths reported in our birds during the process of gavage.<br />

With these measures in place we are confident that our foie gras is produced in the best possible way and that the birds<br />

lives are as at least fulfilling and stress free as that of other birds raised for the poultry market.<br />

Fortnum & Mason Gold Standard for the production of<br />

foie gras<br />

• We will always source our goose foie gras from France,<br />

the livers will be from designated areas of France with<br />

French producers manufacturing the finished product.<br />

• We will always use farms we have approved, where<br />

the farmer/stockman lives on site and manages the<br />

geese through their life cycle and personally feeds them<br />

during the gavage process.<br />

• We will always audit the farms ourselves to ensure all<br />

our standards are being met.<br />

• We will always insist on receiving and inspecting full<br />

traceability and due diligence documents once a month,<br />

to ensure that only our approved hatcheries, farms and<br />

processors are being used.<br />

• We will always ensure that our birds are raised in flocks<br />

of no more than 450.<br />

• We will always ensure that our birds are reared to free<br />

range standards up to their 15th week.<br />

• We will always ensure that are birds are able to feed and<br />

drink ad libitum up to 13 weeks when their food shall<br />

be given twice a day to help build their oesophageal<br />

muscles.<br />

15<br />

• We will always ensure that the ‘salle de gavage’ has<br />

clean air circulating, that the temperature is closely<br />

monitored with a cool air system in place and that the<br />

lighting is sufficiently low to avoid distressing the birds<br />

and sufficiently bright to allow the farmer to be able to<br />

constantly check on the birds.<br />

• We will always ensure that the birds (whilst in the ‘salle<br />

de gavage’) are in open top pens ensuring they have<br />

freedom of movement, are able to open their wings and<br />

are able to interact with each other.<br />

• We will always ensure that the geese are fed 4 times a<br />

day to ensure the doses are smaller, reducing the risk of<br />

damage to the bird and aiding its digestion.<br />

• We will never allow our geese to be fed fat or steroids;<br />

we will only allow them corn with the necessary<br />

vitamins and minerals for their well-being.<br />

• We will never use closed top pens in the ‘salle de gavage’.<br />

• We will never put rings through their beaks.<br />

• We will never allow our birds to reach a stage where they<br />

can’t support their own weight and move around freely.<br />

• We will never transport the live birds for more than<br />

30 minutes from the farm on which they are reared.


8. Organic Food<br />

Fortnum & Mason has never overtly promoted our involvement with organic food. However, we carry many organic<br />

products in our departments, most notably our fresh food areas where we stock many organic raw protein products,<br />

charcuterie products and cheeses.<br />

We generally work with small scale producers where time and tradition are respected and even where products are not<br />

certified as organic, the production ethos is in line with organic production.<br />

We do, however, recognise that we have a number of gaps in our assortment for organic options and we are excited about<br />

the work we are doing with an organic food brand to introduce a new range of organic products to sit alongside our own<br />

label assortment.<br />

9. GMOs<br />

We have been GM free since 2002 and do not stock products which contain hydrogenated fats. The palm oil which we<br />

use is sustainably sourced. We are scrupulous in our insistence that as far as possible our goods are free of chemicals and<br />

we are working toward being NAFNAC in our confectionery department.<br />

Case study – product<br />

Fortnum & Mason Honey<br />

A plan to put beehives on top of a building in the<br />

middle of Piccadilly might seem like a flight of fancy.<br />

But ever since a colony of bees took up residence on<br />

Fortnum & Mason’s rooftop, they have been happily<br />

producing a truly delicious honey – so good that these<br />

rather exclusive bees have created a waiting list for<br />

their produce.<br />

Fortnum’s Sweet Grocery Buyer Jonathan Miller<br />

designed the extravagant beehives himself, giving each<br />

a distinct architectural style – Roman, Mughal, Chinese<br />

and Gothic – as well as a coat of eau de nil paint and<br />

some rather elegant gold details. ‘I knew that if we were<br />

going to produce our own honey, the hives just had<br />

to be something special,’ explains Jonathan. ‘I wanted<br />

something distinct and fun but utterly in keeping with<br />

Fortnum’s. I decided to use different styles, but all<br />

classical ones, the sort that a good Georgian architect<br />

would have understood. One result is that the bees<br />

have got plenty of space. By bee standards, these are<br />

palatial residences.’<br />

It had long been Jonathan’s goal to have bees producing<br />

honey on the spot, as it were, rather than brought in<br />

from the countryside, and the plan finally took shape<br />

in the summer of 2008 when the bees produced their<br />

first crop.<br />

The honey, called simply Fortnum’s Bees, was a<br />

lovely pale, toffee colour with a soft consistency, a<br />

light and delicate flavour and a pleasing finish. That<br />

first crop tasted of the Oxfordshire countryside,<br />

where the bees had been staying before they were<br />

transported to London. The second crop, the result<br />

16<br />

of their forays into London’s parks and gardens, had<br />

subtle traces of chestnut and lime, giving it depth and<br />

freshness. The bees have a radius of around three miles,<br />

which encompasses St James’s Park, Green Park and<br />

Buckingham Palace, as well as any number of private<br />

gardens. Gardens in London are often planted with a<br />

dazzling array of exotic flowers, which means that the<br />

honey’s flavour is quite unpredictable, and changes with<br />

every crop.<br />

The bees should produce two crops a year, but are<br />

very sensitive to the weather; in 2009 a spell of wet<br />

weather discouraged their efforts and a second batch<br />

never appeared. So Jonathan is eagerly awaiting this<br />

year’s late crop, as it will have an entirely different<br />

flavour, infused with late summer blooms rather than<br />

the tree blossoms of spring.<br />

Not every honey lover can get on to Fortnum’s<br />

rooftops to see the hives for themselves, so on their<br />

behalf, Jonathan installed a beecam, which has attracted<br />

a considerable following. One camera is positioned<br />

to track the bees as they fly in and out of their hives;<br />

the other captures the view from the hive across the<br />

City to the iconic Gherkin, whose shape is remarkably<br />

similar to the finials decorating the hive roof. This<br />

particular view rather nicely contrasts the simplicity of<br />

a hive full of bees, doing what they have always done,<br />

with the steel and glass of a brand new building – a<br />

human hive, if you like. Jonathan admits that it is rather<br />

pleasant to go up on to the roof and see the bees at<br />

work – it gives one a sense of equilibrium, amongst the<br />

disorder and noise of the city.


Any potential concerns about urban bees can be quickly<br />

allayed; the bees are Welsh Black Bees, known for their<br />

gentle ways, so they are less likely to sting unsuspecting<br />

shoppers and tourists. In fact, in all the time the hives have<br />

been in position, none of Jonathan’s rooftop visitors have<br />

ever been stung – not even the bold photographers,<br />

poking their lenses in through the hives’ front doors.<br />

As for pollution, it is not an issue; nectar sits deep within<br />

a plant and is sucked up by the bee’s proboscis, then<br />

taken straight to the hive and sealed into the honeycomb,<br />

safe from outside influences.<br />

Fortnum’s Bees was just part of a thorough overhaul<br />

of Fortnum’s honey range, instigated by Jonathan a few<br />

years ago. ‘We’re a British company and we really had<br />

to make sure we had a good range of British honeys<br />

at the top, which I think we now have,’ he explains.<br />

‘I then wanted to look for world honeys that were<br />

fascinating or distinctive.’ As a result he has amassed<br />

a wide-ranging selection, collected from places as far<br />

apart as Salisbury Plain and Pitcairn Island. Jonathan<br />

is happy to startle the tastebuds with his honeys.<br />

‘Not bland is the key,’ he says. ‘I like people to have<br />

a reaction, to either love something or loathe it, but<br />

not to be indifferent. That’s why I want a lot of variety<br />

and look for tastes that are very characteristic. It’s<br />

about finding points of difference. I don’t want people<br />

saying: “Oh, that’s sort of okay.” He recommends<br />

lighter honeys, such as English Borage, for breakfast,<br />

‘when the palate is more alive’, before working south<br />

of the equator as the day wears on, perhaps with a<br />

New Zealand Rainforest honey or a Mexican honey,<br />

the latest addition to the Fortnum’s range.<br />

But the real jewel in the crown will always be the<br />

honey from Fortnum’s Bees. This year’s spring crop was<br />

harvested in May and the second crop will appear in<br />

late autumn.<br />

17<br />

“We’re a British company<br />

and we really had to make<br />

sure we had a good range<br />

of British honeys at the<br />

top, which I think we<br />

now have.”<br />

Jonathan Miller<br />

Buyer, Fortnum & Mason


Case study – product<br />

Fortnum & Mason Handmade<br />

An Exhibition of British Craft – Spring/Summer 2010<br />

Fortnum & Mason has always prided itself on<br />

supporting small artisanal producers who lavish love<br />

and care on everything they make. Whether a handraised<br />

pork-pie from Lincolnshire, some lovingly<br />

stirred chutney from Wiltshire or honey from the<br />

bees on our very own roof, everything Fortnum’s<br />

sells is the very best of its kind.<br />

So an exhibition of joyous handmade pieces, each<br />

with a story of its own to tell, fits in perfectly with all<br />

that Fortnum’s stands for. Here under one roof can<br />

be seen (and bought) some of the most inspirational,<br />

creative work currently being made by crafts people<br />

today. Each is linked to the pleasures of food and table.<br />

Some cost just a few pounds, some a great deal but all<br />

lift the spirits and bring a smile to the face.<br />

In a world that is currently very troubled, where<br />

everywhere people are reassessing where true value<br />

lies, an exhibition like this is a wonderful reaffirmation<br />

of the value of creative innovation. Here before<br />

our eyes we can see why the connection between<br />

creator and object matter, why it lies at the heart of<br />

real quality.<br />

In a world where many of us already have too many<br />

things, we are looking for pieces that have meaning.<br />

We want things that are truly special, that have not<br />

been churned out in their hundreds at the cheapest<br />

possible price. We need to have our hearts stirred.<br />

18<br />

Here we find that. Each piece is singular. Whether it<br />

is Chris Keenan’s exquisite Celadon Tea Set (whose<br />

heart wouldn’t lift at being served tea from that lovely<br />

teapot?), Sian Matthews’ delicate silver “doilies”, Anna<br />

Barlow’s funky Ice Cream Cones or Kenny Menczer’s<br />

beautiful wood sculptures, each with a strong and<br />

personal statement to make.<br />

There are some 500 hand-crafted pieces made by<br />

over 500 different British craftsmen and women<br />

and it is wonderful to see that these skills, whether<br />

of silversmithing, woodturning, glass-blowing or<br />

pot-throwing, are still alive and more then well. It is<br />

inspiring to see the teapot, the place, the place mat,<br />

the glass, the bowl being endlessly re-invented, their<br />

forms and shapes refreshed. It is lovely to find that<br />

wit and humour can turn what could be mundane,<br />

everyday things into objects of great beauty that one<br />

longs to own.<br />

What I particularly love about this exhibition is that it<br />

celebrates true quality and the value of craftsmanship,<br />

I like too that it invites one to ponder on the perennial<br />

delights of food and dining and why they matter, an<br />

underlying Fortnum’s proposition. Here we can all<br />

find some lovely pieces, several at very affordable<br />

prices, any of which would enliven and enrich the daily<br />

ritual of the dinner table. We all need to celebrate<br />

more with friends, family and lovers and these pieces<br />

make one long to do so.<br />

Lucia van der Post


Case study – product<br />

Fortnum & Mason Coffee<br />

Fortnum’s endeavours to establish direct, long term<br />

relationships with our coffee partners to ensure both<br />

the economic sustainability for the producer and to<br />

encourage quality improvement and re-investment on<br />

the farms and in the local communities that they support.<br />

In 2010 Fortnum’s has already signed new contracts<br />

with coffee producers in India, Brazil, Colombia and<br />

Kenya in order to guarantee such mutually beneficial<br />

relationships and to pay fair price premiums for the pick<br />

of the harvest.<br />

Not only is the quality of the coffee of paramount<br />

importance, but Fortnum’s will only source coffee<br />

from producers or producer groups where there is<br />

transparent and documented commitment to the<br />

continual improvement of social and environmental<br />

conditions on the coffee farms and estates.<br />

As a key example, Fortnum’s has been developing a<br />

relationship with the Blackburn Estate in Oldeani,<br />

Tanzania which included an appraisal visit to the farm<br />

in 2008. Here, fair treatment of the farm workers is<br />

a fundamental aspect. One notable difference to the<br />

majority of coffee farms is that the coffee pickers on<br />

this estate are paid a just wage for picking a maximum<br />

Case study – product<br />

RHS Tatton Park<br />

In 2010 Fortnum & Mason formed a new company, Fortnum & Mason Events, in a joint venture with Do & Co.<br />

We were delighted to win out first contract with the RHS for the flower show at Tatton Park. We aimed to<br />

produce an excellent standard of hospitality, sourcing poultry, pork, lamb, cheese and other products locally and<br />

from the Tatton Park estate itself.<br />

19<br />

amount of coffee in a day. This ensures that the pickers<br />

are encouraged to pick only the highest quality ripe<br />

cherries from the plant. Many pickers around the world<br />

are only paid according to the volumes of coffee they<br />

are able to pick, regardless of quality.<br />

In terms of environmental protection and habitat<br />

conservation, wildlife corridors are maintained (the<br />

farm is located beside the important Ngorongoro<br />

Conservation Area, home to elephants and water<br />

buffalo) and projects in the past year have involved<br />

the construction of new water reservoirs to further<br />

catch the vital water resources and developing plans to<br />

eliminate the use of pesticides and fungicides (to enable<br />

the farm to grow certified organic coffee).


Case study – supplier<br />

Clive Christian<br />

In 1872, Queen Victoria uniquely awarded the image<br />

of her crown to the highest quality perfumery in the<br />

Empire aptly named the Crown Perfumery as a mark<br />

of excellence due to the exceptional quality of the<br />

perfumes. By the end of the 19th century, Crown had<br />

a wide range of scents, available worldwide. Despite its<br />

innovations and high reputation, the Crown Perfumery’s<br />

success dwindled at the start of World War I, resulting<br />

in its closure in the 1930s.<br />

In 1999 British designer Clive Christian was inspired to<br />

revive the original perfumery and the world of British<br />

luxury perfume with his release of The Definitive<br />

Collection. Clive Christian Perfumes 1872, X and No.1<br />

The World’s Most Expensive Perfume was created to<br />

the same quality of highly concentrated and complex<br />

formulas that had earnt the Crown Perfumery its royal and<br />

worldwide recognition. The collection truly pays homage<br />

to the essence of great British luxury and perfume.<br />

20<br />

Clive Christian has become our<br />

best selling perfume house.<br />

The range was launched exclusively at Fortnum &<br />

Mason and since then Clive Christian has become<br />

our best selling perfume house with loyal customers<br />

visiting the counter from all around the world.<br />

Each year Fortnum & Mason hold a conference<br />

with their suppliers to update them on results and<br />

strategy. We also make an award to our Supplier of<br />

the Year and this year we were delighted to present<br />

the Fashion and Home Supplier of the Year Award to<br />

Clive Christian. Clive Christian and Fortnum &<br />

Mason enjoy a close relationship between staff at all<br />

levels, which exemplifies the long term, sustainable<br />

and mutually beneficial relationship which we aim to<br />

achieve with all our suppliers, and demonstrates our<br />

commitment to supporting luxury British brands.


Case study – supplier<br />

Farmhouse Biscuits<br />

Farmhouse Biscuits originates from a farm in Barrowford,<br />

Lancashire, where a busy farmers wife Dorothy McIvor,<br />

had a talent for making delicious biscuits for her family,<br />

and began to share her products with friends and<br />

neighbours. Demand quickly grew and in 1973 the<br />

decision was made to discontinue the farming side of<br />

the business and for Dorothy and her husband Phillip<br />

to convert the farm buildings for biscuit production.<br />

Production grew rapidly but great care has always<br />

been taken to ensure that the original family recipes<br />

which were handed down from previous generations<br />

were maintained. The factory grew over the decades<br />

but the same production methods and recipes are still<br />

used to this day. Fortnum & Mason has been working<br />

closely with Dorothy and Phillip for 34 years and now<br />

stock a wide range of luxury biscuits, developed with<br />

the buyer exclusively for Fortnum & Mason under our<br />

own label. All the exclusive recipes use the finest of<br />

ingredients such as butter, ground spices, heather honey,<br />

eggs and oatmeal with no artificial additives, flavourings<br />

or colourings.<br />

21<br />

Great care has always been<br />

taken to ensure that the<br />

original family recipes<br />

which were handed down<br />

from previous generations<br />

were maintained.


Chapter 4<br />

Fortnum & Mason - The Environment<br />

1. Environmental Statement<br />

Fortnum & Mason is committed to our environmental and social responsibilities.<br />

We recognise that operating as a specialist retailer creates carbon emissions and<br />

that this can have a detrimental effect on the environment.<br />

It is the Company’s aim to make all employees aware of the environmental and<br />

social responsibilities required to implement our CSR policy. An in-house committee<br />

has been elected through a volunteer system, which reviews and ensures that all<br />

our policies are upheld and developed in line with legislation and demand.<br />

The Managing Director, Beverley Aspinall, is responsible for the corporate social<br />

responsibilities within the Company and heads this team. Bi-annual meetings<br />

allow the in-house committee to discuss any issues and review CSR procedures<br />

and policies.<br />

This section of our CSR report summarises our current position and our aspirations<br />

for the future. We are aware that this process is still in the early stages of development<br />

and we, as a company, have progress to make. We are fully aware of the need to<br />

engage all our employees in helping us achieve our environmental aims and we also<br />

engage the support and assistance from various external bodies to help ensure that<br />

we meet our targets.<br />

The company is committed to complying with relevant environmental legislation<br />

and regulations and we are working hard on the aspects that affect our current<br />

environmental policy.<br />

This policy has been posted onto the internal notice boards and on our intranet site.<br />

Beverley Aspinall<br />

Managing Director<br />

March 2011<br />

22


2. Environmental Policy<br />

The Company is conscious of its position and role within the<br />

community and is committed to continual improvement of<br />

our environmental performance. In meeting this objective,<br />

the Company’s environmental policy is:<br />

• To satisfy all appropriate legislation and conform to<br />

good industry practice.<br />

• Requires full consideration to be given to:<br />

o Responsible use of raw materials and conservation<br />

of resources<br />

o Efficient use of energy in all operations<br />

o Use of packaging materials and processes which<br />

minimise demands on non-renewable resources<br />

o Minimising emissions into the air, water courses or<br />

as waste<br />

o The environmental impact of new capital investments<br />

• Encourages active participation of employees in<br />

addressing environmental issues.<br />

• Seeks assurances from suppliers on environmental issues.<br />

• Subject to review, incorporating new objectives<br />

as appropriate.<br />

We do all we can to reduce the indirect effects of our<br />

operations upon our surrounding environment. It is well<br />

known that greenhouse gases such as CO2 and methane<br />

released into the atmosphere by human activity cause<br />

climate changes and the effects of this changing climate can<br />

be seen already, temperatures and sea levels are rising as<br />

ice and snow cover decline, with potentially catastrophic<br />

consequences for the natural world and society.<br />

The largest and fastest growing pressures on the environment<br />

come from areas such as household energy and water<br />

consumption, food consumption, transport and tourism.<br />

We are now focussing on the whole life cycle of goods,<br />

services and materials, including impacts outside the UK.<br />

3. Carbon Management Policy<br />

Fortnum & Mason acknowledges that its activities impact<br />

upon the environment and contribute to climate change.<br />

Therefore, it is committed to reducing carbon dioxide and<br />

other greenhouse gas emissions and thus its impact on<br />

climate change.<br />

Fortnum & Mason wants to be a leader in efforts to address<br />

climate change, and sees this as an excellent opportunity to<br />

promote its environmental credentials.<br />

In managing carbon, Fortnum & Mason will:-<br />

• Annually assess its organisational carbon footprint<br />

• Identify opportunities to reduce CO and other<br />

2<br />

greenhouse gas emissions by:<br />

o Reducing the need for activities<br />

o Making activities more efficient<br />

o Making activities greener and cleaner<br />

23<br />

• Consider offsetting our unavoidable emissions using<br />

high quality offsetting projects.<br />

• Set targets to reduce emissions and monitor against<br />

benchmarks.<br />

• Allocate responsibility for achieving these policy aims.<br />

• Review targets and this policy regularly.<br />

• Involve and engage staff in environmental activities.<br />

• Promote these achievements to customers.<br />

By committing to this policy, Fortnum & Mason aims to<br />

position itself as a leader in addressing climate change. The<br />

Company sees competitive advantage and new business<br />

opportunities to be gained from continually improving<br />

environmental performance. The action plan aims to<br />

reduce wastage, improve efficiency and save money, so<br />

embedding good environmental management into core<br />

business activities.<br />

a. Energy Efficiency<br />

Activities currently undertaken to reduce energy include:<br />

• Building Management System (BMS) to control heating<br />

and cooling.<br />

• Lighting Management System (LMS) to control store<br />

lighting times.<br />

• Passive Inferred (PIR) sensors in washroom and<br />

•<br />

storeroom facilities.<br />

External optimisers.<br />

• Introduction of low voltage and LED lighting.<br />

To further develop our environmental work, we have<br />

recently appointed consultants Carbon Clear to assist us<br />

in further formalising our carbon management processes.<br />

We have calculated our carbon footprint for examining<br />

Scope 1 and Scope 2 emission under Greenhouse Gas<br />

Protocol, gas electricity, other fuels, also water.<br />

For the year to June 2010 our footprint amounted to<br />

3,347 tonnes of CO 2 e, with 81% arising from electricity<br />

consumption at the Piccadilly store. A summary of the<br />

footprint is shown below:<br />

Units Tonnes of<br />

CO 2e<br />

Electricity - Piccadilly kWh 4,961,467 2,700<br />

Gas – Piccadilly kWh 2,769,656 565<br />

Water – Piccadilly M3 23,847 23<br />

Electricity – Ely kWh 88,345.95 48<br />

Calor Gas - Ely Litres 6,686 10<br />

Total Footprint – Tonnes of CO 2e 3,347


In the lead up to our tercentenary, the building at<br />

Piccadilly underwent major refurbishment with significant<br />

construction work over a long period. During the<br />

construction period our carbon emissions increased and<br />

so, to gauge a more realistic assessment of our carbon<br />

reduction, we have compared our emissions in 2009/10 to<br />

the pre-refurbishment figure in 2004/5.<br />

Counting emissions from Piccadilly and our warehouse<br />

in Ely, emissions show a reduction of 9% over the period,<br />

with a 1% reduction in electricity, a 36% reduction in gas<br />

despite the increased size of the store in Piccadilly and the<br />

introduction of air cooling. Water usage has unfortunately<br />

increased by 21% due to the introduction of two new<br />

restaurants and a switch from using bottled water to tap<br />

water. Reducing our water usage will be a key focus for us<br />

in 2010/11.<br />

Our target is to reduce our overall carbon emissions by a<br />

further 5% by the end of 2012.<br />

We are currently preparing our Carbon Management<br />

Action Plan following a detailed energy audit of the<br />

Piccadilly store, which will include specific activities, tasks<br />

and timescales for achieving our policy aims. Activities may<br />

include behavioural, operational and equipment changes<br />

and we will use the carbon hierarchy of:<br />

• Reduce the need for activities<br />

• Make activities more efficient<br />

• Make activities greener and cleaner<br />

Activities include control and use of energy efficient<br />

lighting, electrical equipment and heating/cooling systems;<br />

implement a “switch it off” policy, ensure efficient use of<br />

plant and kitchen equipment, reduce wastage, build a new<br />

energy efficient warehouse.<br />

b. Waste management<br />

The store and warehouse produce approximately 378 kilos<br />

of waste each year. Our objective is zero waste to landfill<br />

by the end of 2010. At present 100% of waste from<br />

the Piccadilly store is sent for recycling or reuse. Waste<br />

from our warehouse, excluding cardboard currently goes<br />

to landfill, although we are currently finalizing arrangements<br />

to send all waste from the warehouse facility to a Materials<br />

Recovery Facility (MRF) and fulfil our objective.<br />

c. Packaging<br />

In 2006/7 Fortnum & Mason commissioned a review of all<br />

packaging through Envirowise.<br />

The project identified the opportunity to reduce our<br />

carbon footprint relating to packaging by 145 tonnes per<br />

year and to prevent 72 tonnes of packaging waste being<br />

discarded by customers.<br />

24<br />

We have been steadily working through the<br />

recommendations in the report and our main activities<br />

include the following:-<br />

• Introducing air fill pouches in place of polystyrene infill<br />

for mail order packaging.<br />

• Introducing moulded pulp boxes in place of polystyrene<br />

to transport wine for mail order, saving 3 tonnes of CO 2<br />

per annum.<br />

• Reducing the weight of plastic carrier bags by 25% and<br />

replacing the original carrier bag with bags which are<br />

100% biodegradable.<br />

• Introducing a “bag for life”. Since its introduction in<br />

October 2009 we have sold 27,000 bags for life. This has<br />

helped to reduce our plastic bag usage by 53,000 bags.<br />

• Using 100% biodegradable fillings for our hampers,<br />

which is a wheat based product called Greenfill.<br />

Greenfill is suitable for composting and also dissolves in<br />

water.<br />

• Introducing eco friendly insulated packaging, using<br />

sheep’s wool for transporting chilled deliveries to<br />

customers homes.<br />

We have received the environment agency’s latest<br />

packaging report which states that Fortnum & Mason are<br />

complying with the Regulations and are taking adequate<br />

steps to discharge recovery and recycling obligations.<br />

d. Transport<br />

We do not own any vehicles directly but use third party<br />

logistics companies for all our goods management and<br />

deliveries to customers.<br />

Our main courier is Parcelforce who have reduced their<br />

GHG emissions (tonnes) by 20% over the last 5 years.<br />

Parcelfoce<br />

Worldwide<br />

GHG<br />

emissions<br />

(tonnes)<br />

2004<br />

-2005<br />

2005<br />

-2006<br />

2006<br />

-2007<br />

2007<br />

-2008<br />

2008<br />

-2009<br />

118,101 107,323 101,528 101,086 96,029<br />

Parcelforce have:<br />

• Rolled out 1100 Mercedes Eco-Start vehicles – which<br />

cut out when stationary as part of their focus on<br />

reducing the emissions generated. Their entire fleet of<br />

2000 plus vans is regularly renewed to ensure they have<br />

the most economical and efficient vehicles on the road.<br />

• Required drivers to undertake daily vehicle checks and<br />

vehicles undergo maintenance inspections regularly to<br />

ensure their efficiency and safety.<br />

• Supported drivers with data and varying levels of<br />

training so as to help them increase their fuel efficiency<br />

and reduce carbon emissions.


• Incorporated alternative fuel and energy vehicles into<br />

their fleet.They currently have six different vehicle types<br />

undergoing tests. These include two electric vehicles,<br />

two hybrid vehicles and two “teardrop” trailers. They<br />

are investigating viable options for alternative fuels for<br />

the future of their fleet.<br />

For local deliveries in London we use Cyclone who make<br />

deliveries by electric vehicle and bicycle.<br />

e. Supply Chain<br />

Our supply chain strategy includes the backloading of<br />

vehicles, using the return trip of vehicles after they have<br />

made their deliveries. The strategy has been particularly<br />

successful in our delivery of our wicker baskets.<br />

Empty vans and lorries account for 7.2% of the UK’s total<br />

annual carbon footprint. (Source: Lowcarboneconomy.com)<br />

Our wicker supplier uses a transport company based in<br />

Ely, just 6 miles from the Fortnum & Mason warehouse.<br />

All loads from them to Ely are a return load filling what<br />

otherwise would be an empty lorry. The mileage of this<br />

trip is 220 miles. In a 12 month period from July 2009 to<br />

June 2010 this trip was made 54 times, a total mileage of<br />

11880 miles. The transport company averages 9 miles to<br />

the gallon (source: Halls), this equates to 1.97 miles per<br />

litre, 11880 miles equals 6030 litres. This equates to saving<br />

15914kg of CO 2 per annum.<br />

25<br />

f. Construction<br />

In 2011 we are planning to build a new warehouse in<br />

Cambridgeshire. The specification for the warehouse fully<br />

takes environmental impact into account and includes the<br />

following:<br />

Insulation<br />

The unit will be built using a high specification of 80mm<br />

thickness insulated cladding used for roofing with a 2.5 u<br />

value. Roofing light panels will be double glazed and meet<br />

the same 2.5 u value.<br />

The unit will be built using a high specification of 80mm<br />

thickness insulated cladding used for outer walling with a<br />

2.5 u value.<br />

Office Heating<br />

The heating system will utilise as much energy as possible<br />

from an air source heat pump system, significantly reducing<br />

the electricity requirements for office heating.<br />

Glazing<br />

The office windows will be double glazed units featuring<br />

low e-glass and gas filling which will meet requirements of<br />

BS5713 & BS6262. All glass will be tinted for extra heat<br />

reflectivity.<br />

Electricity<br />

Research is underway into powering a neighbouring fish<br />

farm with a wind turbine, which could also be utilised by<br />

our site.<br />

Rain Collection<br />

We are planning to introduce a rain water collection<br />

system that can be used for cleaning the warehouse, toilet<br />

facilities etc.<br />

Landscaping<br />

There will be extensive planning of trees, shrubs and plants<br />

around the new building.<br />

Lighting<br />

We will install low energy lights, equipped with sensor<br />

switches to ensure lights are only used where and when<br />

required. This will also significantly reduce electricity<br />

consumption for the site.<br />

Solar Panels<br />

Consideration is being given to the use of solar panels to<br />

generate electricity if the wind turbine mentioned above<br />

does not go ahead.


Case study – Eco friendly product<br />

The Wool Packaging Company<br />

When professional packaging designer Angela Morris<br />

was asked by the National Trust to help its tenant<br />

farmers by finding a more environmentally friendly<br />

means of keeping their homes deliveries chilled during<br />

transit, her answer was nothing short of revolutionary.<br />

Angela’s idea was to use sheep’s wool, an abundant and<br />

sustainable natural resource – there are over 22 million<br />

shearable sheep in the UK. She identified that sheep’s<br />

wool is a ‘smart fibre’ with hygroscopic properties that<br />

absorb and release moisture from the air to create<br />

consistent temperatures. Following detailed research,<br />

Morris developed woolcool ® , a system of eco-friendly<br />

insulated packaging that is now marketed by the Wool<br />

Packaging Company. Not only does it compete on<br />

cost, but woolcool ® keeps chilled contents below 5<br />

(degrees C) for at least 24 hours, performing better<br />

than equivalent polystyrene packaging.<br />

The environmental benefits are manifold. The<br />

innovation comes at a time when sheep farmers have<br />

seen the price of wool plummet because of man-made<br />

fibres and much wool was wasted. Woolcool ® creates<br />

a new market for these farmers and can use evens the<br />

coarsest of fleeces.The processing is minimal, with the<br />

wool being hand-pulled and washed without extreme<br />

temperatures or chemical treatments. There are even<br />

some useful by-products: the sludge produced from<br />

washing is used for natural fertilizers or slug pellets; and<br />

natural lanolin is separated out for use in cosmetics and<br />

pharmaceuticals. Through existing suppliers switching<br />

to woolcool ® , an estimated 65 tonnes of polystyrene<br />

of polyethylene is estimated to have been taken out of<br />

the chilled food delivery sector in 2009. Much of that<br />

waste would have gone into landfill. Even the footprint<br />

from delivering woolcool ® represents a dramatic<br />

improvement: since it is flat-packed, three articulated<br />

26<br />

The system of eco-friendly<br />

insulated packaging is nothing<br />

short of revolutionary.<br />

lorries can deliver 10,000 units of woolcool ® in<br />

comparison to 25 vehicles for equivalent polystyrene<br />

packaging.<br />

Shropshire-based the Wool Packaging Company has<br />

become the only business providing sheep’s wool<br />

packaging on a commercial scale.<br />

Fortnum & Mason introduced the product in October<br />

2010 and has been delighted with the results achieved.


1. Charitable Giving<br />

Chapter 5<br />

Fortnum & Mason - The Community<br />

Fortnum & Mason’s holding company is Wittington Investments Ltd,<br />

which is 79% owned by the Garfield Weston Foundation. In 2009 The<br />

Foundation supported 1518 charitable appeals, with the total cash<br />

donation of £37.6m, £9.7m of which was for charities based in London.<br />

In 2011, Fortnum & Mason is hoping to return to profit and will then begin<br />

making contributions to the Foundation.<br />

In the meanwhile we recognise the importance of supporting charities in<br />

the local community and we work in a variety of ways to support local<br />

and national charities.<br />

The Princes Trust is a charity which helps to change young lives.<br />

It gives practical and financial support, developing key workplace skills<br />

such as confidence and motivation. It works with 14-30 year olds who<br />

have struggled at school, have been in care, are long term unemployed or<br />

have been in trouble with the law.<br />

The Prince’s Trust helps more than 40,000 such disadvantaged young<br />

people every year, giving them they confidence and skills to get a job.<br />

In 2009, more than 80% of young people who went on The Prince’s Trust<br />

programmes moved into work, education or training.<br />

Fortnum & Mason will be offering work placements in retail, hospitality,<br />

and warehousing, will be mentoring young people on the programme and<br />

is aiming to raise £100,000 through staff involvement over the 3 years.<br />

27


2. Volunteering<br />

All staff are allowed to take up to 3 days to do voluntary<br />

work while being paid by Fortnum & Mason. This will usually<br />

be in association with our nominated charity, which may, for<br />

example, involve visiting schools to help with reading.<br />

3. Local Organisations<br />

Fortnum & Mason recognise the value of participating in<br />

the community by being members of a variety of local<br />

organisations.<br />

We are currently supporting the St James's Conservation<br />

Trust in their work to preserve the character and heritage<br />

of St James's. We are also members of London First,<br />

The Jermyn Street Association and the New West End<br />

Company, and we actively engage in and support activities<br />

to promote the West End as the world’s top shopping<br />

destination.<br />

Case study<br />

Piccadilly Project<br />

In 2008 Fortnum & Mason met with other local<br />

businesses, organisations and residents to explore what<br />

could be done to improve the environment of Piccadilly<br />

and St James’s. Piccadilly is a world famous destination<br />

of great historic interest and character, yet since the<br />

1960s has been spoilt by the one-way gyratory system<br />

and a lack of care and attention to the environment.<br />

The views of other local stake holders was sought in<br />

a series of community meetings and it quickly became<br />

apparent that there was unanimous support for making<br />

improvements, including the re-introduction of twoway<br />

traffic. Initial ideas were supported by the St James<br />

Conservation Trust, local residents, the Crown Estate,<br />

Westminster City Council and the Mayor of London.<br />

Funds were successfully secured from Transport<br />

for London, Westminster City Council, The Crown<br />

Estate and Fortnum & Mason to make the desired<br />

amendments. The work will be completed in time for<br />

the celebrations of The Queen's Diamond Jubilee and<br />

the London Olympics in 2012.<br />

4. The Arts<br />

We work with a number of Arts organisations to promote<br />

the arts through commercial activity, these currently include<br />

The Royal Academy of Art,The National Gallery,The V&A,<br />

Sadler's Wells and Glyndebourne.<br />

5. Piccadilly Project<br />

We have been active leaders of the project to restore<br />

Piccadilly and St James's to two way traffic and to improve<br />

the historic environment by removing street clutter<br />

and improving paving and lighting etc. We have donated<br />

£250,000 to help achieve the best quality of design. The<br />

work will be completed in time for the celebrations of the<br />

Queen’s Diamond Jubilee and the London Olympics 2012<br />

and are working closely with other local businesses with<br />

a view to establishing a Business Improvement District<br />

for Piccadilly.<br />

Piccadilly is a world famous destination of great historic<br />

interest and character, yet since the 1960s has been spoilt by<br />

the one-way gyratory system and a lack of care and attention<br />

to the environment.<br />

28<br />

Visuals courtesy of Atkins Public Realm/Design Hive/<br />

The Crown Estate


1. Equal Opportunities Policy<br />

Chapter 6<br />

Fortnum & Mason – Our People<br />

In order to provide equal employment and advancement opportunities<br />

to all staff, employment decisions at Fortnum & Mason are based on<br />

merit, qualifications, and abilities.<br />

Fortnum & Mason does not discriminate in employment<br />

opportunities or practices on the basis on any characteristic<br />

protected by law. Fortnum & Mason expects all employees,<br />

of whatever grade or authority, to abide by and adhere to<br />

this principle.<br />

Fortnum & Mason will make reasonable accommodations<br />

for qualified individuals with known disabilities. Employees<br />

with questions or concerns about any type of discrimination<br />

in the workplace are encouraged to bring these issues to<br />

the attention of their immediate supervisor or the HR<br />

Department. Employees can raise concerns and make<br />

reports without fear of reprisal.<br />

Fortnum & Mason commits itself to the immediate<br />

investigation of any claims of discrimination on the<br />

above grounds and, where such is found to be the case,<br />

a requirement that the practice cease forthwith and (if<br />

appropriate) that restitution is made for damage or loss.<br />

Any employee found guilty of discrimination will be<br />

instructed to stop the offending behaviour immediately<br />

and will be dealt with under the disciplinary procedure.<br />

Unless assurances of future non-discriminatory actions<br />

are forthcoming, an employee repeating any act of<br />

discrimination may be dismissed.<br />

This policy governs all aspects of employment, including<br />

selection, job assignment, compensation, discipline,<br />

termination, and access to benefits and training.<br />

The Board recognises that its employees, colleagues,<br />

suppliers and associated workers are the most important<br />

asset of the Company. We are committed to equal<br />

opportunities and are committed to ensuring that no<br />

employee, colleague, supplier, applicant or associated<br />

worker is treated less favourably on the grounds of race,<br />

religion, gender, ethnic origin, disability or sexual orientation.<br />

All employees/colleagues/suppliers and associates of<br />

Fortnum & Mason must be dealt with equally, fairly, ethically<br />

and with consideration for their self-esteem.<br />

29<br />

No-one will be discriminated against by Fortnum & Mason<br />

on any of the following grounds:<br />

Sex Discrimination: Employees at Fortnum & Mason are<br />

protected from discrimination at work on grounds of their<br />

gender. As at July 2010 of our Senior Management team of<br />

24, 12 are women, and on our main Board of 7, 4 are women.<br />

Race Discrimination: Fortnum & Mason protects all<br />

workers from discrimination at work on grounds of colour,<br />

nationality (including citizenship), ethnic or national origins.<br />

As at July 2010 65% of our staff are British, 28% European<br />

and 5% are from the rest of the world.<br />

Disability Discrimination: Workers at Fortnum & Mason<br />

who have a disability are protected from discrimination at<br />

work.<br />

A disability is defined as any mental or physical condition<br />

such as impaired mobility, manual dexterity, hearing,<br />

memory or the ability to learn or understand which may<br />

affect that person’s ability to carry out day-to-day activities.<br />

We are fully compliant with all aspects of the Disability<br />

Discrimination Act.<br />

Religious or Belief Discrimination: Fortnum & Mason<br />

protects workers from discrimination on grounds of their<br />

religion or beliefs.<br />

Sexual Orientation Discrimination: Fortnum & Mason<br />

protects workers from discrimination on grounds of their<br />

sexual orientation.<br />

Gender Reassignment Discrimination: Fortnum & Mason<br />

protects workers from discrimination at work if they<br />

are intending to undergo the medical process of gender<br />

reassignment, are undergoing that process, or have<br />

undergone that process in the past.<br />

Age Discrimination: Fortnum & Mason is committed to the<br />

principle of non-discrimination on grounds of age. In addition<br />

to ensuring that we do not discriminate on grounds of age<br />

in our recruitment or selection policies, we have a flexible<br />

retirement scheme giving individual employees as much<br />

choice as possible over when they want to retire, subject<br />

to the needs of the business. Many of our staff choose to<br />

stay with the Company after retirement age is reached.


2. Skills and Training<br />

The Company is committed to ensuring a culture of trust and respect, working in an environment which encourages<br />

teamwork, honesty and an openness to express opinion, with staff and our customers both internally and externally.<br />

Staff are supported and encouraged to develop their own skill set both to enhance their performance and to ensure that<br />

they gain greater self-confidence and awareness. Coaching and development are offered to all our staff.<br />

Product knowledge training is carried out by the relevant manager to ensure the understanding of the sales and merchandising<br />

teams on matters such as food safety, quality, taste, shelf life and storage.<br />

a. Fortnum & Mason Academies<br />

We have devoted a great deal of time and effort to<br />

developing the Fortnum & Mason Academies in Fine Food,<br />

Fashion and Home, Hospitality and Customer Service. The<br />

purpose of the Academies is to educate our staff about<br />

what they are selling and how to sell it, with a view to<br />

offering our customers the best possible service<br />

The Academies are split up into individual modules, each of<br />

which has its own handbook. For example the handbook<br />

based on tea details how tea is planted, harvested,<br />

processed, blended and exported. For general knowledge<br />

there are details of which countries produce our tea; and to<br />

top this off, of course, how to make the perfect cup of tea.<br />

b. National Vocational Qualifications<br />

Many employees have achieved NVQ qualifications at<br />

Fortnum & Mason. We have been involved in NVQ’s<br />

in Retailing, Business Administration, Computer Skills,<br />

Marketing and Management and Hospitality.<br />

3. Staff Engagement<br />

We believe that it is critical to engage staff by ensuring that they are fully informed about the business and that they have<br />

the opportunity to participate in decision making.<br />

To this end we publish a daily newsletter to all our staff updating them on our trading performance and relevant day to day<br />

issues.We also have notice boards on each floor to convey information to staff.<br />

We hold a Managing Director’s Committee Meeting made up of members of staff representing different areas of the<br />

business. This Committee allows its members to talk directly to the Managing Director about any current issues in their<br />

area. The Managing Director also holds an annual forum with all staff to communicate strategy and developments within<br />

Fortnum & Mason.This forum is interactive and gives all staff the opportunity for a question and answer session as well<br />

as an opportunity to meet the Board. Twice monthly the Board meets with the Management Team and monthly with the<br />

Team Leaders to discuss sales and business developments. This is then communicated to all staff via departmental weekly<br />

half hour training sessions.<br />

We also have a CSR Committee made up of management and non-management who monitor and review our performance<br />

against our policy and targets, reporting their findings to the Board.<br />

Similarly, our Health and Safety Committee monitors all aspects of Health and Safety, reporting findings as part of Risk<br />

Management at the monthly Board meetings.<br />

The Charities Committee is made up of management and non-management and is currently working with The Prince’s<br />

Trust to raise £100,000 to help underprivileged young people.<br />

In 2011 we will be establishing a Social Committee to organise events and outings for Staff.<br />

30<br />

c. Students<br />

For many years we have been running various programmes<br />

to offer students the work experience necessary for a head<br />

start in building their future. For high school students we<br />

offer short work experience opportunities, allowing an<br />

insight into what working life involves.<br />

For undergraduate students, we offer an Industrial<br />

Placement on our Management Trainee programme. This<br />

programme is for students within the U.K on a sandwich<br />

degree course (which entails one year of an industrial<br />

placement).They have an opportunity to work in different<br />

departments enabling them to learn and develop varied<br />

skills throughout the store. Some students enjoy their time<br />

so much that they go on to join us as an employee after<br />

they have graduated.<br />

We also offer an International Industrial Placement.<br />

Students from abroad join us on an industrial placement<br />

and are moved around the store, carrying out various tasks<br />

and reports.


4. Benefits and Rewards<br />

• Remuneration – all staff are paid a fair wage for the<br />

work they do which is regularly monitored against the<br />

general market rate. In addition, pay is performance<br />

related, so the highest performing members of staff<br />

are the highest earners within their type of work. A<br />

bonus scheme for all staff will be introduced once the<br />

Company is in profit.<br />

• Health Plan – a private health insurance plan is offered<br />

to all staff through Healthsure, for a modest contribution.<br />

• Interest free travel loans are offered to all staff.<br />

• Staff Discount of up to 40% is offered on staff purchases<br />

in the store.<br />

• Reward Gateway – all staff have access to Reward<br />

Gateway which offers benefits and cash back on<br />

products and services across 1000 retailers.<br />

• Childcare Vouchers – we work with Busy Bees to help<br />

staff to claim childcare vouchers.<br />

• Long Service Awards – staff who have worked at<br />

Fortnum & Mason for 10, 15, 20 or 25 years receive a<br />

cash award and an invitation to dine with a friend.<br />

• Weddings and Civil Partnerships – staff receive a paid<br />

day off and a gift to the value of £100.<br />

• Staff Shop – staff can purchase food and other<br />

products which might otherwise be wasted at a heavily<br />

discounted rate.<br />

• Bonus Scheme – in 2010 a bonus scheme was<br />

introduced for all staff based on company performance,<br />

and the first bonus was paid to the staff in January 2011<br />

for reaching their Christmas targets.<br />

Case study<br />

Hannah Collins<br />

Hannah was born in Somerset in November, 1982. She<br />

was raised in the area and completed her education<br />

locally, accruing 11 GCSE’s. During this time Hannah<br />

first developed her passion for the retail industry, and<br />

began work experience as a buyer with the women’s<br />

fashion company New Look, during her summer<br />

holidays.<br />

Following this new found enthusiasm she went on<br />

to acquire 5 A-levels comprising Business Studies,<br />

Psychology, Geography, German and Sociology. Whilst<br />

studying at college, keen to enhance her career path<br />

and expand on retail knowledge accrued at New<br />

Look, Hannah joined Clarks shoes where she became<br />

a weekend children’s shoe fitter. The early experience<br />

of customer service during the ‘back to school’ period<br />

became an exciting rush.<br />

After progressing to Children’s Weekend Supervisor,<br />

Hannah then transferred branches so she could continue<br />

her employment with Clarks whilst also furthering her<br />

education with a retail degree. She subsequently moved<br />

to Guildford, where she completed a BA Honours in<br />

Retail Management (2005) at the University of Surrey.<br />

31


After the completion of her degree Hannah joined<br />

Fortnum & Mason as a Buyer’s Clerk in the<br />

Grocery department. During this period, she completed<br />

the Fortnum & Mason food academy which<br />

increased her depth of knowledge into Fortnum’s<br />

unique range of produce.<br />

The Retail Management degree included a year in industry,<br />

and this is when Hannah first encountered Fortnum &<br />

Mason. Throughout her university placement she spent<br />

time assisting various departments within the company<br />

including the sales floor, Warehousing and Logistics<br />

and Customer Service. Alongside her valuable work<br />

experience, during this time Fortnum & Mason helped<br />

Hannah gain her NVQ Level 3 in Mentor Managing.<br />

After the completion of her degree Hannah joined<br />

Fortnum & Mason as a Buyer’s Clerk in the Grocery<br />

department. During this period, she completed the<br />

Fortnum & Mason food academy which increased<br />

her depth of knowledge into Fortnum’s unique range<br />

of produce.<br />

In 2005 it was announced that Fortnum & Mason<br />

would be undergoing a £30million refurbishment, and<br />

Hannah was enlisted to join the project team that<br />

November. Her key project management role was to<br />

liaise with fellow colleagues and customers during the<br />

development period.<br />

Upon completion of ‘Project Piccadilly’ Hannah’s<br />

next step in October 2007 saw her assist in the<br />

implementation of Fortnum & Mason’s first 3rd Party<br />

call centre in Glasgow, which processes telephone<br />

orders. This meant relocation for three months to<br />

deliver training and support to the new team. Following<br />

a successful launch, Hannah was then promoted to<br />

Team Leader of the Customer Order department in<br />

32<br />

June 2008. Hannah became a key individual in managing<br />

of one of the busiest departments through the 2008<br />

Christmas trading period. Following this success, in<br />

2009, Hannah was promoted to Customer Relations<br />

Manager. The role incorporates management all our<br />

telephony departments; customer services, telephone<br />

ordering and switchboard. Furthermore, Hannah is now<br />

also a key member in the customer service academy,<br />

which aims to provide outstanding customer service<br />

training to all employees.<br />

Alongside her role, Hannah is an active member of<br />

several of Fortnum & Mason’s additional activities.<br />

These include co-managing the Charity Committee<br />

fire warden duty and as a St John’s Ambulances ‘First<br />

Aider at work’, for which she undergoes regular<br />

training. Hannah has undertaken many sponsored<br />

events for various charities raising a sum of £890 to<br />

date. These included completing a 17 mile night hike<br />

around central London for Maggie’s Charity twice, a<br />

two mile swimathon for CLIC Sargent and organising a<br />

coffee morning for the employees at Fortnum & Mason.<br />

Finally, Hannah is also playing an active role in the<br />

future development of Fortnum & Mason through her<br />

participation in the implementation of a new customer<br />

ordering system, due to launch store-wide in the<br />

new year.


1. Service<br />

2. Value<br />

Although we are a luxury retailer and our pricing structure<br />

reflects our brand positioning we aim to charge fair prices<br />

for the quality of product we are providing. Our margins<br />

are set at a fair level and we constantly monitor our<br />

competitors’ prices, so that we are charging only a modest<br />

premium above high street prices for proprietary brands.<br />

3. Quality<br />

Chapter 7<br />

Fortnum & Mason – Our Customers<br />

Fortnum & Mason aim to provide excellent service through whichever<br />

channel our customers contact us – store, telephone or website.<br />

We train our staff through the Academies to be knowledgeable, polite,<br />

attentive, friendly and helpful. We aim to provide ‘old fashioned’ service<br />

backed up by modern systems and processes.<br />

On those occasions where something goes wrong we aim to provide and<br />

promote a generous response in order to turn a dissatisfied customer<br />

into an advocate of Fortnum & Mason.<br />

We undertake regular ‘mystery shopping’ to monitor and help us to<br />

improve out standard of service.<br />

As outlined in our buying pillars, we always seek out the<br />

highest possible quality of product for our discerning<br />

customers. We work directly with our suppliers, often<br />

developing recipes together to achieve the highest quality<br />

possible. We employ a qualified food technologist who<br />

monitors quality control with all our suppliers.<br />

33<br />

4. Communication and Enagagement<br />

We keep our customers informed of development and<br />

activities through email, direct mail, news and stories on<br />

our website and through electronic information boards in<br />

the store. In addition we commission regular exit surveys<br />

to find out what our customers think of us, and hold focus<br />

groups to talk through issues with customers in more<br />

depth. In 2010/11 we are introducing a new Customer<br />

Relationship Management system which will give us 360<br />

degree view of our customers’ activities across all channels,<br />

store, restaurants, telephone and website enabling us to<br />

target our communications more effectively.<br />

5. Accessibility<br />

Since completing the refurbishment of the store we fully<br />

comply with the Equalities Act and are able to satisfy the<br />

needs of all our customers, whether they need assistance<br />

due to hearing, sight or mobility issues.

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