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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 />
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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 />
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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 />
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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.