East African Breweries PlcNSEKE: EABL

EABL 2024 Annual Report- webpage view

Sep 6, 2024 at 5:58 AM UTC · Issued by East African Breweries Plc

2 0 2 4 I N T E G R A T E D R E P O R T & F I N A N C I A L S T A T E M E N T S

2024	INTEGRATED REPORT &
FINANCIAL STATEMENTS

OUR BRANDS

OUR PURPOSE

Celebrating life, every day, everywhere.

OUR AMBITION

To create the best performing, most trusted and respected consumer products company in Africa.

OUR VALUES

Our values underpin our business and guide how we work.

Passionate about consumers and customers
Value each other
Be better
Proud of what we do

OUR CULTURE

Our culture code articulates the behaviours we drive and model, as we energise the organisation towards achieving our strategic goals.

EABL'S CULTURE CODE IS:

BOLD

Daring, risk-taking and experimenting, empowered teams and radical liberation.

PROGRESSIVE

Pioneering, innovating, shaping new frontiers, digital transformation, sustainability, social change.

CONNECTED

Oneness, shared goals, common purpose, pulling together, trust, creating a "fun" workplace that brings out our purpose of "celebrating life everyday everywhere".

TABLE OF CONTENTS

OUR INTEGRATED STORY	1
About This Report: A Toast to Transparency	1
EABL ESSENCE	2
EABL Overview	4
Our Geographic footprint	4
Our Journey and Significant milestones	5
Our Brands	6
Our Purpose	7
Our Ambition	7
Our Values	7
Our Culture	7
Value Creation Model: From Grain to Glass	8
Stakeholder Engagement: Collaborative Spirit	14
LEADERSHIP REFLECTIONS	20
2024 in a Glass: Key Performance Indicators	22
Board Chairman's Statement: Distilling Value	26
CEO and Group Managing Director's Review:
Brewing Success	34
CFO's Financial Review: Sustainable Growth	42
OUR STRATEGIC BLEND	52
Strategic Review: Crafting Tomorrow's Beverages	54
East African Beverage Market: Trends and
Opportunities	56
Brands in Focus	58
Innovations	70
Our Strategic Enablers	74
FILTERING OUT THREATS,
TAPPING OPPORTUNITIES	92
Material Matters: What's in Our Mix	94
Risk Management: Filtering Out Threats, Tapping
Opportunities	97
GOVERNANCE AND ETHICS	104
Board Composition: A Diverse Blend	106
Senior Management	116
Corporate Governance Statement	117
Running a sustainable business through an effective
Internal Audit & Risk function	131
FINANCIAL STATEMENTS AND	134
OTHER INFORMATION
Corporate Information	136
Directors' Report	137
Directors' Remuneration Report	139
Statement of Directors' Responsibilities	143
Report of the Independent Auditor	144
Consolidated statement of profit or loss	148
Consolidated statement of comprehensive income	148
Company statement of profit or loss and other
comprehensive income	149
Consolidated statement of financial position	150
Company statement of financial position	151
Consolidated statement of changes
in equity	152
Company statement of changes in equity	154
Consolidated statement of cash flows	155
Company statement of cash flows	155
Notes	157
Appendix I: Principal shareholders and
share distribution	211
SUPPLEMENTARY INFORMATION	212
Notice of Annual General Meeting	214
Notes on The Annual Genral Meeting ('AGM')	215
Proxy Form	221
Electronic Communications Consent Form	222

INTEGRATEDREPORT

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PHOTOGRAPH

REQUIRED

OUR INTEGRATED STORY

ABOUT THIS REPORT: A TOAST TO TRANSPARENCY

OUR REPORTING SCOPE

AND BOUNDARY

The Integrated Report for the fiscal year ended 30 June 2024 provides a comprehensive overview of East African Breweries PLC's (EABL) business model. It encompasses information regarding our company's strategy, governance, material risks, approach to operating responsibly, and financial and non-financial performance. The objective is to deliver a cohesive and inclusive report to both our current and potential investors that reflects how the Company creates value for all its stakeholders.

FRAMEWORK

Our Integrated Report follows the principles outlined in the International Integrated Reporting Framework, ensuring adherence to its fundamental concepts. The Annual Financial Statements have been diligently prepared in accordance with the International Financial Reporting Standards (IFRS). The Group continuously evaluates whether there are additional reporting frameworks or metrics we could use to further enrich our disclosures. The report is part of our commitment to fostering transparency and accountability towards our stakeholders.

MATERIALITY

We apply the principle of materiality in assessing which information is to be included in our Integrated Report. Through a review of our operating environment and engagement with our key stakeholders, we have identified and reported on the issues, risks, and opportunities that we believe could materially affect EABL and its ability to be a sustainable business that consistently delivers value to our key stakeholders.

94 For more on our material matters, refer to page 94.

ASSURANCE

To enhance the integrity of our report, the financial statements were audited by PricewaterhouseCoopers LLP.

Their independent report in relation to the

144 financial statements of the Group is set out

on pages 144 to 147 of this report.

OUR	EABL	LEADERSHIP	OUR	FILTERING OUT THREATS,	GOVERNANCE	FINANCIAL	SUPPLEMENTARY
INTEGRATED STORY	ESSENCE	REFLECTIONS	STRATEGIC BLEND	TAPPING OPPORTUNITIES	AND ETHICS	STATEMENTS	INFORMATION
							1

EABL

ESSENCE

EABL Overview

Our Geographic footprint

Our Journey and Significant milestones

Our Brands

Our Purpose

Our Ambition

Our Values

Our Culture

Value Creation Model: From Grain to Glass

14 Stakeholder Engagement: Collaborative Spirit

EABL ESSENCE

INTEGRATEDREPORT

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OUR JOURNEY AND SIGNIFICANT MILESTONES

EABL OVERVIEW

East African Breweries PLC (EABL) is the leading branded alcohol beverage business in East Africa. Since the inception of our flagship product, Tusker, over 100 years ago, EABL has grown through constant innovation to offer a wide and outstanding collection of brands that range from beer and spirits to adult non-alcoholic drinks (ANADs), reaffirming our standing as a total adult beverage (TAB) company.

We are proud of our achievements over the last century and especially the impact we have generated among our people. Our expansive value chain is deeply intertwined within the tapestry of our communities, touching farmers, transporters, distributors and retailers, to the people employed directly and indirectly because of our products.

OUR GEOGRAPHIC FOOTPRINT

Our extensive network of breweries, distilleries, and distribution facilities spans the six markets within which we operate in East Africa, especially concentrated in the three core markets of Kenya, Uganda, and Tanzania. Despite operating in East Africa, our unique products can be found in more than 10 countries across Africa and beyond. The Group's geographic diversity is an important factor in delivering the highest quality brands to East African consumers and long-term value to investors.

KBL
incorporated
as a private
company and

the first beer	KBL
is brewed on	becomes
the 14th of	a public
December	company
1922	1934

	EABL acquires
	100% of shares
	in International

	Distillers Uganda	EABL cross-
	(IDU) Limited	lists on the
Senator
and 46.23% of	Uganda

KBL acquired

Tanganyika	EABL
Breweries	acquire
and changed	financial
its name to	holding of
East African	Uganda
Breweries	Breweries
Limited	Limited
1935	1959

	EABL completes the
	largest public issue
	in Kenya's history
	offering Kshs 3

Diageo	million shares at a
acquires	price of Kshs 18 each,
majority	raising the number of

OUR GEOGRAPHIC FOOTPRINT

GROUP CORPORATE STRUCTURE

brand is	UDV (Kenya)	Securities
launched	Limited	Exchange

control of	shareholders to more
EABL	than 23,000

GROUP NET SALES

KENYA

OTHER PUBLIC	DIAGEO KENYA
SHAREHOLDERS	LIMITED

35%

2004

2002

2001

2000

1972

64%

UGANDA

65%

EABL (HOLDING COMPANY)

• EABL cross-lists on the		EABL issues Kshs 5
Dar-es-Salaam Stock		billion, 5-year fixed

exchange and becomes	EABL acquires	rate notes in the debt
the first company in East	a controlling	capital markets as the
Africa to reach US$ 1 billion interest (51%)	first tranche of notes
in market capitalisation	in Tanzania's	under a Kshs 11 billion
• EABL Foundation is	Serengeti	medium-term notes
launched	Breweries	programme

EABL issues Kshs 6 billion, 5-year fixed rate notes in the debt capital markets as the second tranche of notes under a Kshs 11 billion medium-term notes programme

21%

TANZANIA

15%

OUR	EABL
INTEGRATED STORY	ESSENCE
4

100% Kenya Breweries Ltd (KBL)

46.3% United Distillers Vintners (UDV) Kenya Limited

100% East African Maltings Ltd (EAML)

98.2% Uganda Breweries Ltd (UBL)

100% International Distillers Uganda (IDU) Limited

100% East African Breweries (Rwanda) Limited

85% SerengetiLimited Breweries

LEADERSHIP	OUR
REFLECTIONS	STRATEGIC BLEND

2005

2010

2015

2017

							KBL brewery in Kisumu

Diageo			EABL issues		is commissioned,
increases its			Kshs 11 billion		enabling the business

aggregate			medium-	EABL	to recruit 15,000 new
equity stake			term note;	acquires an	sorghum farmers,
in EABL from			the largest	additional	bringing the total
50.03% to a			public issue	34% stake	number of sorghum

maximum of	EABL	in Kenya's	in Serengeti	farmers in East Africa to
65%		Centenary	history	Breweries	60,000
2023		2022		2021		2020	2018

FILTERING OUT THREATS,	GOVERNANCE	FINANCIAL	SUPPLEMENTARY
TAPPING OPPORTUNITIES	AND ETHICS	STATEMENTS	INFORMATION
			5

INTEGRATEDREPORT

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EABL ESSENCE

(CONTINUED)

OUR BRANDS

Our broad portfolio consists of outstanding local jewels and international brands, reaching across categories, occasions, and price points. Our brands are iconic, relevant, and culturally present. They are flagships of everyday meaningful connections, many with rich legacies spanning generations, while others have more recently being launched. We are incredibly proud of the positive

impact they have in bringing people together to celebrate life, every day, everywhere.

For more information about our brands,

58 please see the Brand Portfolio Performance

section on page 58.

OUR PURPOSE

At EABL, we strive to be the best we can at work, at home, and in the community. We are passionate about our high- quality brands (which suit every consumer occasion and economic level) and the role they play in celebrating life. At the core of our approach is a commitment to serving the communities in which we operate by ensuring alcohol continues to play a positive role in society as part of a balanced lifestyle. Doing so is good for consumers and good for business.

Our responsibility and influence extend beyond our direct operations. In our "Society 2030: Spirit of Progress" ESG action plan, we have set ambitious goals that support our commitment to shaping a more sustainable and inclusive business and society. We take great care in building sustainable supply chains, protecting the environment and the natural resources we all rely on, and committing to skills development, empowerment, inclusion, and diversity.

OUR AMBITION

We aim to create the best performing, most trusted, and respected consumer products company in Africa. In order to achieve our ambition, we need to deliver efficient growth and long-term shareholder value. This means delivering quality, sustainable growth in net sales, steady margin expansion, feasible investments and reliable cash flows year after year. To be most trusted and respected, we do business the right way from grain to glass and ensure our people are highly engaged and continuously learning.

OUR VALUES

Our values underpin our business and guide how we work. We are passionate about our customers and consumers, and we want to be the best. We give each other the freedom to succeed and value each other. Pride is a source of energy for our company and we work hard so we can be proud of what we do.

OUR CULTURE

Our culture is rooted in a deep sense of our purpose and values. At present, we are the custodians of some of the most iconic brands in the world. This means that we have a responsibility to not only ensure they remain as relevant today as they have done in the past, but to also pass them down to the next generation in even better shape.

Our culture code articulates the behaviours we drive and model as we guide the organisation towards achieving our strategic goals.

EABL's culture code is:

Bold: Daring, risk-taking, experimenting, empowered teams, radical liberation.

Progressive: Pioneering, innovating, shaping new frontiers, digital transformation, sustainability, social change.

Connected: Oneness, shared goals, common purpose, pulling together, trust, creating a fun workplace that brings out our purpose of "celebrating life, every day, everywhere".

OUR	EABL	LEADERSHIP	OUR	FILTERING OUT THREATS,	GOVERNANCE	FINANCIAL	SUPPLEMENTARY
INTEGRATED STORY	ESSENCE	REFLECTIONS	STRATEGIC BLEND	TAPPING OPPORTUNITIES	AND ETHICS	STATEMENTS	INFORMATION
6							7

INTEGRATEDREPORT

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EABL ESSENCE

(CONTINUED)

VALUE CREATION MODEL: FROM GRAIN TO GLASS

HOW WE CREATE VALUE FOR OUR STAKEHOLDERS THROUGH OUR BUSINESS MODEL

We are a proud grain-to-glass business that operates with the simple purpose of supporting our consumers in "Celebrating life every day, everywhere".

We deliver our strategic priorities through a business model that has the consumer at its heart and puts our responsibilities to our stakeholders front and centre.

Consumers	Customers	Suppliers	Our People	Communities	Investors	Government &
						Regulators


						Top risks
Our Business	Our Capital Resources				affecting
Activities				availability of

our capitals

Consumer Insights We continually evolve our data tools to understand consumers' attitudes and motivations. We convert this information into insights which enable us to respond with agility to our consumers' interests and preferences.

Research

We have invested heavily in research and development programs such as new brewing materials and brewing technologies,

Financial Capital

Financial Capital provided by our equity and debt holders, as well as cash flow earned from our operations are an ethical input in executing our business activities and in generating, accessing and deploying other forms of capital.

Stakeholders:

Investors Regulators

Kshs 32.150 billion

(2023: Kshs 28.5 billion)

SHAREHOLDERS EQUITY

Kshs 50.5 billion

(2023: Kshs 61 billion)

TOTAL DEBT

Kshs 34 billion

(2023: Kshs 26 billion)

CASH GENERATED FROM OPERATIONS

Regulatory Environment
Slowed economic growth and macro- economic volitility
Illicit trade
Supply chain disruptiuons
Impact of climate change
Cyber threats

liquid product development for both alchoholic and non- alcoholic beverages, and development of new packaging and dispensing solutions.

Responsible Sourcing EABL has built a solid sorghum and barley value chain that comprises of farmers, research institutes, seed companies, financial institutions, fertiliser providers, mechanisation companies and other sector service providers.

Human Capital

We are proud of our people, whose passion, commitment, and specialist skills make the difference. We invest in training and career development, and develop well-being policies for our people to be the best that they can be. Championing inclusion and diversity is fundamental to driving engagement and achieving the best possible outcomes for our business.

Stakeholders:

A workforce of >638 employees and contractors.

Fair pay and benefits and terms of employment.

Kshs 14.8 billion

(2023: Kshs 13.3 billion)

TOTAL EMPLOYEE COSTS

A refreshed culture that is people-centered, bold, innovative, and competitive.

Continued investment in employee welfare and well-being policies.

We partner with a network of suppliers to procure high quality materials and services.

Our People

OUR	EABL	LEADERSHIP	OUR	FILTERING OUT THREATS,	GOVERNANCE	FINANCIAL	SUPPLEMENTARY
INTEGRATED STORY	ESSENCE	REFLECTIONS	STRATEGIC BLEND	TAPPING OPPORTUNITIES	AND ETHICS	STATEMENTS	INFORMATION
8							9

INTEGRATEDREPORT

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EABL ESSENCE

(CONTINUED)

VALUE CREATION MODEL: FROM GRAIN TO GLASS (CONTINUED)

Our Business

Activities

Manufacturing We distill, brew, bottle and distribute our spirits and beer brands through a globally coordinated supply operation, working to the highest quality manufacturing standards.

Marketing

We invest in world- class marketing to responsibly build vibrant brands that resonate with our consumers. We

Our Capital Resources

Intellectual Capital

Our intellectual property includes the equity of our brands that we have built over the years, consumer insights, commercial data, new product innovations and investments in manufacturing, logistics and sales executions.

Stakeholders:

Kshs 12 billion

(2023: Kshs 10 billion)

MARKETING SELLING AND DISTRIBUTION

World-class IT systems and digital platforms.

Our Capital Resources

		Kshs 75 billion
		(2023: Kshs 81 billion)
Manufacturing Capital
IN PROPERTY, PLANT AND
We have a regional network of sites	EQUIPMENT
devoted to research and development,
distillation, maturation, brewing,
warehousing and packaging of spirits and
beer. Our investment in our manufacturing
and logistics assets are a source of
competitive differentiation.
Stakeholders:

have a rigorous Marketing Code that sets mandatory

Our People

Consumers

Our People Suppliers

Communities

minimum standards for responsible marketing.

Innovation Using our deep understanding of evolving tastes, trends, and consumer sessioning occasions, we focus on driving sustainable innovation that provides new products and experiences for consumers.

Selling

Social and Relationship

Capital

Maintaining the trust of stakeholders is essential to our business. Our most valuable relationships are with our people and the communities

we operate in, our customers, consumers, suppliers, governments and regulators. We are committed to doing our business the right way from grain to glass.

Stakeholders:

> 250,000

RETAILERS, DISTRIBUTORS AND AGENTS

NEW PRODUCT INNOVATIONS TO MEET CONSUMER NEEDS

> 60,000

SUPPLIERS OPERATING ACROSS OUR VALUE CHAIN

Investors	Government
	& Regulators

		2.93 Litres
		(2023: 3.27 Litres)
Natural Capital
OF WATER USED PER LITRE OF
We recognise that the threats to our	PACKAGED PRODUCT
environment are urgent and growing, and
we are committed to taking actions to

We grow by working closely with with our customers. Our sales teams use data, digital tools, and insights to extend our sales reach, improve our execution and help generate value for us and for our customers. When our customers grow, we grow too.

			Kshs 123 million
Consumers
Customers	TOWARDS VARIOUS COMMUNITY
			PROJECTS IN THE REGION

Suppliers		Communities

Investors	Government
	& Regulators

preserve the scarce resources.
Stakeholders:
Communities	Investors

Government &

Regulators

OUR	EABL	LEADERSHIP	OUR	FILTERING OUT THREATS,	GOVERNANCE	FINANCIAL	SUPPLEMENTARY
INTEGRATED STORY	ESSENCE	REFLECTIONS	STRATEGIC BLEND	TAPPING OPPORTUNITIES	AND ETHICS	STATEMENTS	INFORMATION
10							11

INTEGRATEDREPORT

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EABL ESSENCE

(CONTINUED)

VALUE CREATION MODEL: FROM GRAIN TO GLASS (CONTINUED)

THE VALUE WE CREATE	OUTPUTS AND OUTCOMES	CONTRIBUTING TO THE
SDG'S

THE VALUE WE CREATE	OUTPUTS AND OUTCOMES	CONTRIBUTING TO THE
SDG'S

	We provide high-quality
	beverages and invest in world-
	class marketing to cater to a
	growing range of tastes and offers
Consumers
choice across every occasion.

	We advocate for moderation and
	use our platforms to campaign
	against harmful drinking.

We create socio-economic value for the societies in which we operate by creating jobs, training people, building physical infrastructure, procuring raw materials, transferring technology, paying taxes, expanding access to products and services, and creating growth opportunities for our customers, distributors, retailers and suppliers.

Millions of Consumers across the region enjoy our brands and experiences as part of celebrations, big or small.

9,951

	PEOPLE TRAINED IN BUSINESS
	AND HOSPITALITY SKILLS
Communities
through our Learning4Life program
(continued)
to boost employability

Carbon Emissions reduced to

THIS YEAR TO 21,363 TONNES

Renewable energy use increased to

75%

THIS YEAR.

Getting to our consumer, through

Zero waste to landfill

		our route to market programme	Kshs >10 billion

		is an important facet of our	VALUE CREATED FOR
		strategy. We work together with
Customers	CUSTOMERS
qualified partners, creating shared
		(distributors and retailers)
		value and growing their, and our

		business.

		We are working with our suppliers	We spent circa
		to support their sustainable
		generate revenue for our suppliers	Kshs 90 billion
		practices. Our business activities	WITH LOCAL SUPPLIERS AND
Suppliers	and their extended value chain.
CONTRACTORS

Governments & Regulators

We create socio-economic value for the communities in which we operate by creating jobs, training people, building physical infrastructure, procuring raw materials, paying taxes, expanding access to products and services,

In F24 we paid

Kshs 113 billion

TO THE EXCHEQUER IN THE FORM OF CORPORATION TAX, EXCISE, VAT AND PAYE

People are our most important asset. We are investing behind our people, building the best teams, supporting their well-being

62% : 38%

MEN TO WOMEN RATIO ACROSS

and creating growth opportunities for our distributors, retailers and suppliers.

Our People through progressive policies and creating an inclusive growth culture.

EABL

44%

SENIOR LEADERSHIP WOMEN

	For our investors we are delivering
	sustainable and resilient financial
	performance. We provide access
	through open engagement virtually
Investors	and physically through Annual
General Meetings (AGMs), investor

Kshs 7.2 billion

CAPEX

	We are a part of our communities,
	providing employment directly or
	through the wider value chain.
	We make a difference through
Communities
	programs like Learning4Life

467,895m3

RECYCLED AND REUSED WATER representing 14% of

our total withdrawals

relations forums, etc

We uphold the highest governance

standards through responsible

and sound Board governance

framework and practices.

Kshs 10.8 billion

IN EARNINGS AFTER TAX

and ROCE of 28%

and through progress on our

sustainability commitments.

>500,000

INDIRECT JOBS ACROSS THE VALUE CHAIN

Kshs 7.0

DIVIDEND PER SHARE

OUR	EABL	LEADERSHIP	OUR
INTEGRATED STORY	ESSENCE	REFLECTIONS	STRATEGIC BLEND
12

FILTERING OUT THREATS,	GOVERNANCE	FINANCIAL	SUPPLEMENTARY
TAPPING OPPORTUNITIES	AND ETHICS	STATEMENTS	INFORMATION
			13

INTEGRATEDREPORT

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EABL ESSENCE

(CONTINUED)

STAKEHOLDER ENGAGEMENT: COLLABORATIVE SPIRIT

We are deeply connected to the environment and communities in which we operate. Our ability to create and protect value is dependent on our relationships with and the contributions we make to our stakeholders. They include not only business partners such as suppliers and customers, our people, and workforce, but also government, consumers, and the wider communities in which we operate. We consider their key interests in our decision-making and communicate with them on a regular basis. This dialogue helps us build trust and respect and make choices as a business that help shape the role we play in society.

OUR PEOPLE

Our people are at the core of our business. We aim to build a trusting, respectful and inclusive culture in which every individual feels highly engaged and can be their best. We want our people to feel their human rights are respected and that they are treated with dignity. We are committed to creating opportunities for growth and to a continuous learning culture.

Material	Capitals	How we	Key objectives and	Outcomes of	Principal
issues:	impacted:	engage:	metrics we track:	engagement:	risks:

• Prioritisation of		• Safety strategy	• Employee	• 86% Staff	• People retention
health, safety,		anchored on our	engagement	Engagement	• Health and
and well-being		Zero Harm goal	• Gender	scores	safety
Human Capital
• Human rights,	that ensures	representation	• Net exporter	• Security
diversity, and		everyone goes	percentage	of talent; 21	environment
inclusion		home safely	• Lost Time	employees on
• Employee		every day	Accident Rate	international
engagement,	Intellectual	• Employee well-		assignments
growth, and	being policies		• 62%: 38% men to
Capital
development		and Employee		women ratio
• Ways of		Assistance		• 44% of senior
working, culture		Programme		leadership roles
and benefits		• Company-		held by women
Social &
programme	wide employee		• Five Lost Time
Relationship
	surveys to		Accidents
	Capital
	understand and

		act on needs and
		well-being

Consistent talent and performance management approach
Extensive online learning and development material
Informative and up-to- date employee communication channels

CONSUMERS

Understanding our consumers is key to growing our business sustainably for the long-term. Consumer motivations, attitudes and behaviour form the basis of our brand marketing and innovations. We make our brands with pride and want them to be enjoyed responsibly. On occasions when consumers choose alcohol, we want them to "drink better, not more".

Material	Capitals	How we	Key objectives and	Outcomes of	Principal
issues:	impacted:	engage:	metrics we track:	engagement:	risks:

• Choice of brands		• We understand	• Market share	• We continued	• Slowed economic
for different		consumers'	data	to evolve our	growth and
occasions		needs and	• Number of	portfolio with	macro-economic
• Responsible	Social &	preferences	people reached	new innovations	volatility
marketing	Relationship	through our	with our	to address	• Consumer
• Affordable	Capital	access to	messages of	changing	disruption
products		consumer	moderation	consumer needs	• Supply chain
• Product quality		insights	• Compliance with	• We have invested	disruption
and supply		• Broad portfolio	product quality	further in digital	• Illicit trade
		of choices across	and food safety	and e-commerce	• Increased
		categories and	standards	to meet new	competition
		price points	• Number of	shopper needs
		• Insightful	consumer
		innovation	complaints
		that satisfies
		consumer
		preferences
		• Responsible
		advertising and
		marketing that
		adheres to our
		strict Diageo
		Marketing Code
		• Active
		engagement
		and education
		to promote
		moderation
		and reduce the
		harmful use of
		alcohol
		• High-quality
		manufacturing
		and
		environmental
		standards

OUR	EABL	LEADERSHIP	OUR	FILTERING OUT THREATS,	GOVERNANCE	FINANCIAL	SUPPLEMENTARY
INTEGRATED STORY	ESSENCE	REFLECTIONS	STRATEGIC BLEND	TAPPING OPPORTUNITIES	AND ETHICS	STATEMENTS	INFORMATION
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EABL ESSENCE

(CONTINUED)

STAKEHOLDER ENGAGEMENT: COLLABORATIVE SPIRIT

CUSTOMERS

Our customer partners are experts in the products they buy and sell, as well as in the experiences they create and deliver. We work with a wide range of customers: big and small, on-trade and off-trade, digital and e-commerce. Our passion is to ensure we nurture mutually beneficial relationships that deliver joint value and the best outcome for all our consumers.

			Key objectives
Material	Capitals	How we	and metrics we	Outcomes of	Principal
issues:	impacted:	engage:	track:	engagement:	risks:

• A portfolio		• Use of best practice	• Volume and	• 20 of our	• Slowed
of leading		sales analytics	revenue growth	distributors	economic
brands that		and technology	• Outlet sales call	have achieved	growth and
Intellectual
meets evolving	to support our	coverage	the Gold	macro-economic
consumer	Capital	retailers and	• High	Standard in	volatility

preferences		distributors	merchandising	world-class	• Consumer
• Identification of		• Commercial	standards	distributorship	disruption
opportunities		account managers	• Customer	standards,	• Supply chain
that offer	Social &	engage with our	feedback	while 35 have	disruption
profitable	Relationship	customers		been certified	• Illicit trade
growth	Capital	• at a strategic level		'silver status'	• Increased
• Insights into		and develop joined-		moving	competition
consumer		up business plans		towards 'gold
behaviour and		• Our account		status'
shopper trends		managers continue
• Technical selling		to make regular
expertise,		visits to outlets
promotional		• Ongoing dialogue
support, and		and account
merchandising		management
• Availability and		support
reliable supply		• Training through
		unique offerings
		like the Diageo Bar
		Academy

SUPPLIERS

Our suppliers and agencies are experts in the wide range of goods and services we require to create and market our brands. By working with them, we not only deliver high-quality products marketed responsibly, but improve our collective impact, ensuring sustainable supply chains. These relationships enable us to reduce our environmental impact and make positive contributions to society.

Material	Capitals	How we	Key objectives and	Outcomes of	Principal
issues:	impacted:	engage:	metrics we track:	engagement:	risks:

• Sustainable		• Local raw	• Percentage	• All our suppliers	• Slowed economic
sourcing		material supply	of key raw	are in compliance	growth and
• Supplier		partnerships	materials sourced	with our Know	macro-economic
Intellectual
standards	• Partnering	sustainably	Your Business	volatility
• Environmental	Capital	with supplier	• Percentage of	Partner	• Supply chain

concerns		standards, our	our suppliers	(KYBP) and	disruption
• Fair contract and		code for working	in compliance	Partnering with	• Impact of climate
payment terms		with suppliers	with EABL's	Suppliers (PwS)	change
	Social &	• Supplier	Know Your	programmes
	Relationship	performance	Business Partner
	Capital	measurement	(KYBP) and
		and performance	Partnering with
		reviews	Suppliers (PwS)
		• Regular trainings	programmes
		on sustainable
		farming practices
		to our farmers
		• Provision of
		drought resistant
		seed varieties

OUR	EABL	LEADERSHIP	OUR	FILTERING OUT THREATS,	GOVERNANCE	FINANCIAL	SUPPLEMENTARY
INTEGRATED STORY	ESSENCE	REFLECTIONS	STRATEGIC BLEND	TAPPING OPPORTUNITIES	AND ETHICS	STATEMENTS	INFORMATION
16							17