AB InBev Water Strategy Solutions for Sustainable Water Use February 24, 2011 Ludo Degelin ©Anheuser-Busch InBev AB InBev Company = The world’s leading brewer One of the world’s top five consumer products companies Well-balanced geographic footprint No. 1 or 2 position in 19 key markets More than 200 key brands, operating in 23 countries 116,000 employees Production volume 2009: 408.6 Mio hl 6 geographical zones among which Western Europe ©Anheuser-Busch InBev AB InBev Supply in Western Europe 15 Breweries in 5 countries 4200 Employees > 30 Mio hl beer Global Brands Budweiser, Stella and Beck’s Multi Country Brands Hoegaarden and Leffe 165 Beers Breweries ©Anheuser-Busch InBev 950 SKU’s Best Beer Company in a Better World Reputation Responsible Drinking Environment People ©Anheuser-Busch InBev Community Global Environmental Goals 2012 WE Water Usage of 3,5 hl/hl production Energy Usage and Greenhouse gas Emissions 99% Waste & Byproducts Recycling Rate Compared to 2009 ©Anheuser-Busch InBev -28% -10% WE +1% We use water … In 2010, Western European breweries consumed ± 15,5 Mio m³ water Ground water 78 % Municipal water 22 % All water is treated to comply with our quality standards Usage of water 20 % is transformed into beer 10 % is evaporized in production 70 % becomes waste water after use as process or cleaning water ©Anheuser-Busch InBev … and give it back to the environment Treatment of waste water before discharging to surface water 40% external treatment (municipal WWTP) 60% internal treatment (own WWTP) Compliant with all legal requirements Anaerobic treatment, 4 Mio m³ biogas recovered for electricity and heat production ©Anheuser-Busch InBev Water Reduction Targets Belgium 5,55 Western Europe 4,89 4,19 3,50 Actual 2009 Actual 2010 = = ©Anheuser-Busch InBev 2011 2012 2009 2012 Target of 3.5 hl/hl production by end of 2012 Water reduction of 28% in 2012 versus 2009 Water saving of ± 4,3 Mio m³ water in 2012 versus 2009 Equal to annual water use of ± 78.000 persons Our Water Reduction Strategy Actions are focusing on Process Optimization Capital Investment Employee Engagement ©Anheuser-Busch InBev Process Optimization VPO, our AB InBev way to operate our breweries Best Practice Sharing PDCAs Shared targets driving right focus Increased visibility of water consumption, additional meters (per department, line, machine, …) Energy & Water KPI’s – KEG LINE Enhanced Maintenance and Leakage repairing ©Anheuser-Busch InBev Process Optimization Optimization of cleaning processes, water reduction while maintaining standards, Quality First! Breakdown of Water Consumption Other, incl. Losses; 25% Heat Transfer; 11% Raw Material; 20% Cleaning Duties 45% Cleaning Duties; 45% Relation LEF - Water Usage 4,5 Focus on production line performances 3,5 Water Usage (%) reduces energy and water usage 4,0 3,0 2,5 2,0 1,5 1,0 0,5 0,0 60% 65% 70% LEF (%) ©Anheuser-Busch InBev 75% 80% Capital Investments Water Reduction Projects Leuven: narrowing the diameter of the rinser nozzles water reduction of 47.000 m³ per year Leuven: optimization of the cooling towers water reduction of 37.880 m³ per year Jupille: investment in water treatment installation water reduction of 40.000 m³ per year Water Reclaim Projects Leuven: one way bottle line, rinse water of the empty bottles is reused to rinse the filled bottles ©Anheuser-Busch InBev New Investments New Power Plant Leuven 75 Ton steam/hour 5MW electrical capacity 10% more energy efficient Rainwater collection and treatment for steam production 5% water saving New Bottlewasher Jupille 120.000 bottles/hour 15% reduction in energy use (steam) 20% reduction in water use or 30.000 m³/year ©Anheuser-Busch InBev Employee Engagement Energy and Water Saving Program launched Employees focusing on reduction of base load ENERGY AND WATER SAVING PROGRAM During which production stop? FULL PRODUCTION CIP STOP WEEKEND/ HOLIDAY Energy/Water Point 15 BREAK DOWN Energy/Water Tour MATRIX Energy/water Checklist Department/Zone: Packaging ... Before the production stop, switch off the listed equipment. What? After the production stop, switch on the listed equipment. N° Description of equipment to be switched off = ENERGY/WATER POINTS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 28 29 30 31 Lighting Office Lighting Machinery Lighting Floor Lighting Canteen Lighting Lab Lighting Toilets Lighting Workshop Lighting Locker room Lighting Canteen Lighting Basement Lighting waste storage PC office FLM PC filler PC office basement Conveyer belts washing machine Conveyer belts WA-line EBI device Laser Photocopier office FLM Vaccuum cleaner lazer Packing machine labels Syscona Lamp basement Gate warehouse labels at outside Gate warehouse labels at side bottle line Gate warehouse packaging at outside Gate warehouse packaging at side bottle line Door HK3 Door bottle line at side of the street Energy Days in all breweries Identified water saving 115.000 m³ Energy Tours for finding leakages Training on technical skills and awareness ©Anheuser-Busch InBev Production Stops Weekend / Holiday CIP Break down > 30 min ___ Employee Engagement World Environment Day, annual UN event June 4th Central theme 2010 WATER Focus on behaviour change on water use Best Idea Water Saving Contest 356 ideas Celebration of Winner Leuven Brewery “We Run for Water”, a charity project for WaterAid, 700 employees ran 4000 km ©Anheuser-Busch InBev Employee Engagement Competition between breweries Better World Trophy for the brewery with the best improvement in water usage Yearly celebration at the Supply Convention, Jupille in 2010 ©Anheuser-Busch InBev On track in 2010 Wernigerode brewery is a benchmark for water usage with 3,2 hl/hl production N° 1 Western Europe N° 4 AB InBev Globally Best performer worldwide: Cartersville US water usage of 3,04 hl/hl production Germany, water usage of 3,92 hl/hl production Belgian breweries achieved a water reduction of 11,9% in 2010 versus 2009 ©Anheuser-Busch InBev Concluding Water reduction as part of our Better World Dream is a priority for our company as it is for the broader society to which we belong Key strengths of our organization are commitment of our people, top down target setting, standardized processes and focus, which make us reach challenging goals We have still a lot to do, but we take it as a challenge. Our drive is strong and we are making steady progress, we will achieve our ambitious targets ©Anheuser-Busch InBev