Principles In Action Highlights 2011 Putting Our Principles in Action to Make a Difference to People and the Planet through Our Performance PRINCIPLES IN ACTION: A SUMMARY OF OUR EFFORTS Wrigley. Creating simple pleasures to brighten everyone’s day. A letter from our President Most people know Wrigley for our gum and confections including: Orbit®, Extra® and 5® sugarfree chewing gum brands, Doublemint® gum and candies such as Skittles® and Starburst®. What many people may not know is that Wrigley is a part of Mars, Incorporated—a private, family-owned company that provides quality pet foods, many of the world’s best-loved chocolates, nutritious family foods, refreshing tea and coffee, as well as our tasty gum and confections to millions of consumers around the world. Mars is made up of 70,000 Associates who are united by Five Principles—Quality, Responsibility, Mutuality, Efficiency and Freedom. As we run and grow our business, we make decisions based on The Five Principles and as a result we’re able to make a difference to People and the Planet through our Performance. Simply said—that’s putting our Principles in action. Some companies call this “doing the right thing” or “being a responsible corporate citizen,” but for us, it’s just who we are. In fact, Mars was founded with an objective that calls upon the company to “create a mutuality of benefits for all stakeholders.” As our business continues to grow, our ability to create shared value for our Associates, communities, consumers and environment grows right along with it. From oral care outreach activities and Associates going green to sustainable packaging innovation and waste management practices, we’re putting our Principles in action around the world and making a difference in many different ways. I’m proud to share this collection of stories showcasing who we are and hope that you’ll take time to read more. Sincerely, Martin Radvan Wrigley President p.1 PRINCIPLES IN ACTION: A SUMMARY OF OUR EFFORTS Performance Growing our business for the greater good 5 Principles guide our business 17K 180 22 17,000 Associates in 48 countries Countries offer Wrigley products Wrigley factories As part of a private, family-owned company, we think in terms of generations, not quarterly returns. Guiding our approach are the Mars Five Principles—Quality, Responsibility, Mutuality, Efficiency and Freedom. While most businesses consider quality, responsibility and efficiency to be important, our commitment to Mutuality is what really sets Mars and its six business segments apart from the rest. Mutuality means that we run our business in a way that not only benefits our bottom line but equally benefits those involved in our success—from the farmers who grow the mint we buy, to the companies who supply us with our packaging materials and the communities surrounding our factories. These people rely on our business for their well-being and likewise, we rely on them. So it’s crucial that we work together towards long-term and shared rewards. p.2 PRINCIPLES IN ACTION: A SUMMARY OF OUR EFFORTS Headquartered in Brussels, Belgium, Mars Petcare is one of the world’s leading pet care providers with brands such as PEDIGREE®, WHISKAS® and ROYAL CANIN®. Headquartered in Mount Olive, New Jersey, U.S., Mars Chocolate is one of the world’s leading chocolate manufacturers, including M&M’S®, SNICKERS®, DOVE®, GALAXY®, MARS®/MILKY WAY® and TWIX® among its brands. Wrigley is synonymous with smiles We make some of the most-loved brands in the world including Extra®, Orbit® and 5® sugar-free chewing gums, Skittles® and Starburst® candies and Altoids® and Life Savers® mints. We proudly offer a portfolio of 40 brands that delight consumers in more than 180 countries around the world. Headquartered in Brussels, Belgium, Mars Food is dedicated to providing leading food brands tailored to local tastes, including UNCLE BENS®, DOLMIO®, MASTERFOODS® and SEEDS OF CHANGE®. We’re part of something bigger With U.S. headquarters in West Chester, Pennsylvania, and U.K. headquarters in Basingstoke, Mars Drinks offers KLIX®, FLAVIA®, ALTERRA™ and THE BRIGHT TEA CO™. Throughout these pages, you’ll hear more about how Mars is realizing this opportunity, through shared initiatives like Sustainable in a Generation and the Mars Volunteer Program. But there is much more. Visit mars.com and take a look at the Mars 2011 Principles in Action Summary to learn more about how we’re collectively making a difference. In 2008, we became part of Mars, Incorporated—a private, family-owned company with brands such as Snickers®, Dove®, M&Ms®, Uncle Ben’s®, Pedigree®, Banfield Pet Hospitals® and Alterra® Coffee and Teas. Wrigley operates as a standalone segment alongside the Petcare, Chocolate, Food, Drinks and Symbioscience businesses, which together operate 402 sites around the world and generate $30 billion USD in annual net global sales. With a reach like this, it’s no wonder that Mars’ opportunity to make a positive difference to the lives of Associates, communities and the environment is significant. Governance Headquartered in Germantown, Maryland, U.S., Mars Symbioscience is our global health and life sciences segment focused on delivering evidence-based science and offering CocoaVia™, Wisdom Panel™ and Seramis® brands. Mars, Incorporated is a private, family-owned company with a strong ethical culture. It is governed by a Board of Directors who are members of the Mars family, and who receive independent advice from four external Board Advisors. Day-to-day operations are run by the global Mars Leadership Team led by the President, Paul S. Michaels. p.3 PRINCIPLES IN ACTION: A SUMMARY OF OUR EFFORTS Delivering quality Our number one priority is to offer safe products made with quality ingredients. After all, millions of consumers enjoy our brands every day, and we want to be sure they do so with the utmost confidence. We apply established standards across all aspects of production, including those outlined by International Food Standard (IFS), a third-party audit standard recognized by the Global Food Safety Initiative, and the International Organization for Standardization’s (ISO) certifications. We employ external auditing from Lloyd’s Register Quality Assurance (LRGA) to ensure we’re living up to these standards, and we achieved compliance for the third consecutive year in 2011. 3 Consecutive years of Lloyd’s Register Quality Assurance (LRQA) compliance Associates champion safety Associates are at the core of maintaining and promoting safety. Through our Coaching Associates to Reinforce Excellence in Safety (CARES) initiative, Wrigley Associates take responsibility for the safety of their fellow Associates and point out unsafe situations in a sensitive and productive manner. Today, nearly 90 percent of all factory-based Associates participate in CARES and have received training as part of their involvement. A commitment to safety A safe and productive workplace is vital to our success. We strive to keep an incident-free workplace and in 2011, eight of our factories achieved 1 million or greater working hours without a Lost Time Incident. Our factories in Shanghai and Guangzhou, China achieved a remarkable 6 million hours without a Lost Time Incident. We assess site performance through our Safety Environment Affairs and Security (SES) management system, which is based on recognized international standards such as the Occupational Health and Safety Advisory Services 18000 (OHSAS) series. p.4 8 Wrigley factories achieved 1 million or greater working hours without a Lost Time Incident in 2011 6 6 million hours without a Lost Time Incident in Shanghai and Guangzhou, China PRINCIPLES IN ACTION: A SUMMARY OF OUR EFFORTS Innovating for the future Our brands fuel our business, and we continually evolve our offerings so our products are enjoyable, accessible and relevant. This means identifying new formats and flavors, providing a range of price points and identifying new distribution channels so our products are available when and where consumers want them most. In the U.S., for example, we launched the micropack for Orbit® and 5®. This pocket-sized option gives consumers a more portable way to enjoy our products at an accessible price point (based on MSRP). We’re also exploring where our brands can make a positive contribution. As an enjoyable and healthful behavior, we have a tremendous opportunity to use our Oral Care brands—Extra®, Freedent® and Orbit®—as catalysts for change, by creating healthy habits and giving people the confidence that comes with a happy, healthy mouth. We’re currently partnering with leading oral care experts from around the world to define where we can make the greatest contribution. Innovation from the start This spirit of innovation has been a constant throughout our history. In the early days as a company, William Wrigley Jr. came up with new ways to reach consumers, including a mile-long billboard outside Atlantic City and the largest sign of its time in Times Square (1917–1924). Just over a decade later, we introduced the Doublemint® Twins (1939), which marked the beginning of one of the most successful and long-lasting advertising campaigns ever created. p.5 40 Wrigley brands 2 Billion-dollar global brands— Extra® and Orbit® PRINCIPLES IN ACTION: A SUMMARY OF OUR EFFORTS People We are all about giving people a reason to smile $4.6M 480 11,500 47 To charitable organizations in 2011 Schools impacted through Save the Children grant Volunteer hours dedicated through Mars Volunteer Program Countries with Wrigley Oral Healthcare Programs From the simple pleasure that comes from enjoying a handful of candy with a friend to the confidence that comes with a clean mouth feeling after chewing a stick of sugar-free gum, we’re all about giving people a reason to smile. Our ability to create a positive impact extends far beyond the enjoyment of our products. We have a responsibility to make a difference in the lives of people across the full spectrum of our value chain—from the farmers who grow our ingredients and the dental associations who endorse our products to the communities surrounding our factories and the Associates who work within. p.6 PRINCIPLES IN ACTION: A SUMMARY OF OUR EFFORTS Our people are paramount Our success depends on our 17,000 Associates—who live and work in more than 40 countries around the world. Regardless of where our Associates are based— a home sales office, open-floor plan workspace or in a factory—we are united by our commitment to make decisions based on their impact to people, the planet and our performance. We believe this gives our Associates a rewarding career and something more than “just a job.” 6,500+ We measure this belief by participating in the external Gallup Q12 survey annually. The survey’s 12 core questions assess whether Associates feel equipped with the right level of knowledge, materials and opportunities; whether they feel listened to, encouraged, supported and rewarded; and whether they have opportunities to learn and grow. 12 Hope Schools built across 8 provinces in China support 6,500+ children Measuring Associate engagement In 2011, we reached the 80th percentile of companies in the global Gallup database—placing Wrigley Associates among the most engaged in the workforce. This accomplishment is testament to the cultural integration following our acquisition by Mars, Incorporated, which took place in 2008. Making a difference in the community Through signature programs such as the Mars Volunteer Program and Mars Ambassador Program our Associates are given diverse opportunities to make a difference in the communities where we live and work. 11,500 The Mars Volunteer Program offers Associates one paid day a year to volunteer outside the workplace to further the health and prosperity of the local community. In 2011, our Associates contributed more than 11,500 volunteer hours from Mars Volunteer Program activities. Wrigley Associates in Israel, Russia, Greece and the U.S. provided oral health information to local students, while a team in Baddi, India, provided dental clinics to those in need. In partnership with local dentists, associates in Guangzhou, China worked with local schools to provide 375 teachers and students with oral health information and on-site dental health check-ups. Volunteer hours contributed by Wrigley Associates through Mars Volunteer Program activities p.7 PRINCIPLES IN ACTION: A SUMMARY OF OUR EFFORTS The Wrigley Company Foundation Since its founding in 1987, the Wm. Wrigley Jr. Company Foundation has donated more than $50 million to charitable organizations around the world. The Founda tion’s mission is to improve the health of people and our planet through initiatives focused on oral health, environmental stewardship, and local needs. In 2011, the Foundation donated a total of $4.6 million, including annual contributions as part of multiyear grants in support of the Foundation for Environmental Education (FEE) and Save the Children. As part of a three-year, $3 million grant to FEE, a non-profit organization dedicated to educating young people around the world about the environment, we are able to support two environmental education programs in 15 countries. Additional countries will be added to each program over the next two years. A $3 million grant over two years to Save the Children will support development of a new school health program that will reach thousands of students across six countries. The grant will help provide oral health, nutrition and hygiene care to more than 273,000 students in 480 schools in China, Kenya, the Philippines, Vietnam, Indonesia and Tajikistan. The Foundation also supports local market outreach activities. In China, for example, the Foundation has worked in partnership with the China Youth Devel opment Foundation, in partnership with Give2Asia, to build 12 “Hope Schools” since 2009. These schools have benefitted more than 6,500 underprivileged children across eight provinces in China, with additional schools being planned each year. Our local Associates enjoy a close connection with the schools by supporting annual back-to-school celebrations and visiting with the children. p.8 $4.6M To charitable organizations in 2011 PRINCIPLES IN ACTION: A SUMMARY OF OUR EFFORTS Sharing the benefits of chewing. We’re bringing the science behind the benefits of chewing to life by the way we market our products, engage with dental professionals and partner with academic institutions and independent researchers to further advance our knowledge. Paving the way for clean and healthy smiles 20MIN Chewing sugar-free gum for 20 minutes after meals and snacks has been proven to help protect your teeth 27 27 National Dental Associations endorse the oral care benefits of chewing sugar-free gum Oral health is an essential part of general health and well-being. However, tooth decay (caries) and gum diseases can affect nearly every human being during his or her lifetime. In fact, according to the FDI World Dental Federation, tooth decay is one of the most common non-communicable diseases on the planet. While largely preventable, many instances of tooth decay remain unaddressed due to unavailable or insufficient oral care services. We recognize this is a severe and complex issue, and for decades we’ve been collaborating with experts in the field of oral health to better understand and advance the science around the benefits of chewing sugar-free gum. In fact, as early as the 1930s, we began our research through a partnership with Northwestern University in our hometown of Chicago, Illinois. Today, the oral care benefits of sugar-free chewing gum are widely accepted and endorsed by leading authorities, such as the FDI World Dental Federation and more than 27 national dental associations. On top of these endorsements, chewing sugar-free gum is included in the health policy platforms of several national governments. Helping consumers choose It’s important to us that we offer a variety of products—many of which have established functional benefits, in addition to some that are best as an occasional indulgence. To help consumers make informed choices for themselves, we provide clear nutritional labeling and follow the Mars Marketing Code that sets strict guidelines for the way we advertise across all markets. In keeping with this Code, we do not buy advertising time or space if more than a quarter of the audience is likely to be under 12 years of age; nor will we advertise on websites aimed at those under 12. On our confectionery brands, such as Skittles® and Starburst®, we include Guideline Daily Amount (GDA) labeling. In fact, Mars was the first company to commit to using GDA labels on its confectionery products worldwide. p.9 PRINCIPLES IN ACTION: A SUMMARY OF OUR EFFORTS Sharing the benefits of chewing We’re bringing the science behind the benefits of chewing to life by the way we market our products, engage with dental professionals and partner with academic institutions and independent researchers to further advance our knowledge. Our Wrigley Oral Healthcare Program (WOHP), which launched in Germany in 1989 and now operates in 47 countries, aims to promote oral health among local communities. One way we do this is by partnering with more than 27 national dental associations and numerous health departments. The WOHP is also working to help oral care professionals and patients better understand the role sugar-free gum can play in a regular oral care routine by equipping practices with educational materials and check-up reminder cards. In addition to working with professionals, we’re partnering with others to expand our knowledge and further understand where our products can make the greatest contribution. In 2011, we joined the Dutch Top Institute for Food and Nutrition (TIFN)—in a private-public partnership on oral health called DENTA. The joint effort, which includes ACTA Dental Research, TNO, Philips, Cargill and Glaxo Smith Kline (GSK) among its partners, brings together members of the private sector with dentists, microbiologists and biochemists to better understand, maintain and promote oral health. We also work to generate greater political awareness of oral health— a subject that is often neglected in both national and international public health circles. We are a founding partner of the EU Platform for Better Oral Health, a joint initiative of the European Association of Dental Public Health (EADPH), the Association for Dental Education in Europe (ADEE), the Council of European Chief Dental Officers (CECDO), promoted and supported by the WOHP and GSK Consumer Healthcare. p.10 Eat Drink Chew™ Our Oral Care brands—Extra®, Freedent® and Orbit®— have issued a united call to action: Eat Drink Chew™. First launched in Australia in 2006 and now active in nearly 50 countries, our Eat Drink Chew™ platform, and accompanying “Food Gang” campaign, shows consumers that when brushing isn’t possible, chewing sugar-free gum is a great way to help keep teeth and gums clean and healthy after eating or drinking. PRINCIPLES IN ACTION: A SUMMARY OF OUR EFFORTS Planet Making the right choices today for a better tomorrow 4 Sites send zero waste to landfill 3K Tonnes of plastic removed from bottle pack production 30% 400 Reduction in the carbon impact of mint Go Green projects We have a responsibility to take care of the world around us and strive to leave it better than how we found it. Climate change could have serious repercussions to people and the planet, and we all must do our part to mitigate its impact. At Wrigley, this means as we run our day-to-day business, we do so with an honest commitment to the planet—by seeking to use fewer resources to run our factories, selecting ingredients and packaging materials with a lower carbon impact and encouraging a more sustainably-minded workplace and community. p.11 PRINCIPLES IN ACTION: A SUMMARY OF OUR EFFORTS 2011 Results % Change from 2007 Results ENERGY (TJ) GHG (kilotonnes CO e) 2 WATER (m ) 3 WASTE TO LANDFILL (kilotonnes) 8% Total reduction in energy use since 2007 72% Less waste to landfill since 2007 8% 2% 7% 72% 2015 Target % Change from 2007 Results 25% 25% 25% ZERO WASTE TO LANDFILL Our site operations Together with our segment partners across Mars, we have set ambitious targets to make our factories and offices Sustainable in a Generation. As part of this program, we’ve committed to eliminating fossil fuel energy use and greenhouse gas emissions, minimizing our impact on water quality and availability, and mitigating the impacts of waste by 2040. With our eye on the future, we have set short-term targets to keep us on track. We’re focused on absolute progress—so that as we grow our business, we’re doing so sustainably. In 2011, we did just that and made more product with less energy, water and fewer greenhouse gas emissions. This is a positive step in the right direction, but we have work to do to ensure we reach our 2015 aims. We are on track to achieve our 2015 goal of sending zero waste to landfill and since 2007, have reduced the amount of waste to landfill by 72 percent. p.12 PRINCIPLES IN ACTION: A SUMMARY OF OUR EFFORTS Our packaging Packaging is a high-profile component of a consumer’s experience—it identifies our brands, provides consumers with important information and above all else, supports the delivery of a quality product. However, we also need to find solutions that allow us to deliver our product while lowering the impact of those materials on the environment. To help us identify where we can make the biggest impact, we completed a global packaging audit in 2011. The results revealed that because our packaging is relatively small—our greatest impact isn’t volume, but rather the carbon impact of some packaging formats and materials. Eliminated more than 3,000 tonnes of plastic from our bottle portfolio worldwide, since 2004 With this in mind, we’re taking a more strategic approach to sustainable package design—focusing our efforts on optimizing our core packaging types and limiting our use of more carbon-intensive materials such as plastic and aluminum. Using less aluminum We’re limiting the amount of aluminum material within our packaging. By replacing the aluminum bellyband—a small loop of material which holds the sticks together—with paper for 5® gum in Europe, we’ve saved more than 70 tonnes of aluminum. We’re currently reapplying this approach to our Extra®, Orbit® and Freedent® envelope packaging as well, which will eliminate an additional 40 tonnes of aluminum from the supply chain. Eliminated 745 tonnes of paper by removing paper labels 100+ tonnes of aluminum eliminated from inner-packaging p.13 PRINCIPLES IN ACTION: A SUMMARY OF OUR EFFORTS Our products The greatest source of our footprint comes from the ingredients we use to make our products. So it’s critical that we are continuously exploring the impact these ingredients have on the environment and creating products with environmental considerations in mind. In 2011, we completed an in-depth carbon analysis of our top five raw ingredients and partnered with suppliers to understand the carbon impact of ingredients in every category we purchase. With this information, we’re equipped to be able to develop ingredient-specific strategies for reducing our footprint and initiate new product designs in pursuit of a reduce climate impact. Improving mint farming and processing Most Wrigley gum contains mint oil, which is derived from raw mint. In fact, we use mint in more than 80 percent of our gum formulas including fruitflavored gum. As such a significant buyer, it’s our responsibility to improve the environmental aspects of its production and work to sustain a healthy industry for the benefit of growers and surrounding communities. As a founding member of the Mint Industry Research Council (MIRC), we have worked together to help mint farmers reduce their environmental impacts through continued soil conservation, reduced water use, energy management and fertilization methods. Since 2007, these efforts have reduced GHG emissions from the mint we source by 30 percent. p.14 40% Raw materials account for 40% of our total footprint PRINCIPLES IN ACTION: A SUMMARY OF OUR EFFORTS 1.6M Students received educational materials as part of our support of Keep America Beautiful 400 Our culture We believe in the power of personal responsibility and are committed to creating a more sustainably-minded workforce and community. Our Go Green program encourages Associates to bring sustainable practices to life at the workplace. At nearly 100 sites around the world, our Associates are developing their own Go Green projects to help lessen the impact our everyday business operations have on our planet, including swapping paper coffee cups for reusable mugs and eliminating plastic water bottles from team meetings. We’re having some fun going green as well—even hosting cafeteria composting competitions, planting factory-side gardens and cleaning up a local river by kayak. Associate-led Go Green projects Go Green teams In support of our Sustainable in a Generation commitments, Go Green teams are championing the cause by educating Associates on site-specific practices, such as recycling and waste management. In Scoresby, Australia, for example, the Go Green team introduced a one-stop waste management solution resulting in 70 percent less waste going to landfill. At our Global Innovation Center in Chicago, Illinois, U.S., the Go Green team launched a composting system in 2011, which diverts an average of 1,900 pounds of organic material per month from landfill, including compostable cups, plates and utensils from the cafeteria and even plant and tree clippings from our indoor Winter Garden. p.15 PRINCIPLES IN ACTION: A SUMMARY OF OUR EFFORTS Responsible disposal While the vast majority of consumers dispose of their gum properly, not everyone has the same respect for their communities. We take this issue very seriously and recognize that the only long-term sustainable solution to dealing with littered gum—and all forms of litter—is to change behavior. To help facilitate this change, we partner with governments, environmental organizations and educators in Australia, China, Germany, England, Ireland, New Zealand and the U.S. to support in-school education programs that help young people develop a respect for their local environment and to drive community awareness and anti-littering campaigns. We also have included a responsible disposal logo on all gum packages for decades. Along with others in our industry, we believe that unifying our messaging will make the disposal icon more motivating and effective. Working with the International Chewing Gum Association, we have developed a new logo for the gum industry, which will begin appearing on packs in some markets in late 2012. Driving awareness in the U.K. In the U.K., we support a host of efforts to help drive sustainable behavior change. Bin It! is an actor-led educational workshop to get 11–13 year-olds thinking about responsible disposal. In 2011, the program toured 99 schools and reached more than 12,740 students in the U.K. and Ireland. We’re also a founding partner of “Love Where You Live”—a joint effort by Keep Britain Tidy and the Department for Environment, Food and Rural Affairs—and lead campaigns as part of the Chewing Gum Action Group by partnering with local authorities to reduce littered gum. The 2012 campaign, which launched in March, focuses on a sense of national pride in the U.K. during the country’s summer sporting event calendar and encourages the public to do their country proud by responsibly disposing of their gum. p.16 99 Our award-winning Bin It! Program toured 99 schools 193K Reached 193,000 students in more than 660 through Keep Australia Beautiful To learn more about Wrigley: CLICK HERE www.principlesinaction.wrigley.com © 2012 Wm. Wrigley Jr. Company. All Rights Reserved. 5, Orbit, Freedent, Extra, Doublemint, Skittles, Starburst, Life Savers, Eat Drink Chew and all affiliated designs are trademarks of the Wm. Wrigley Jr. Company or its affiliates.
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