Three principles, two strategies – one ambitious aim

We want to continue providing our customers with the things that define Tchibo: high-quality coffee and consumer products which give customers a new experience every week. Yet this will only be possible if we account for social and environmental issues to the greatest possible extent in all our processes.

A simple illustration demonstrates the extent to which we will be reliant on sustainability in the future: If climate change causes a shift in the conditions under which our raw materials are produced, the quality and yield of the coffee harvest may suffer. By taking measures to promote sustainability, such as planting shade trees, preventing ground erosion, and training farmers in the countries where our coffee originates, we are taking responsible action to ensure that we can continue supplying our customers with top-quality coffee in the future.

In 2006, we launched our “Strengthening strengths 2010” company strategy, which outlines, develops and consistently implements the sustainable direction of our business activities. Since the fourth quarter of 2010, “Strengthening strengths” has been continued in the shape of “Building Our Future on Tradition”, which once again makes a clear statement of the vital place sustainability has in our company strategy.  

The basis of our approach: Three clear principles

Our integrated and ambitious approach is based on three principles:

• Responsibility as part of company strategy: Taking responsibility is part of our company strategy. Each year, we set concrete objectives for coffee, consumer goods and all our major processes, taking economic, environmental and social variables into account. At the end of each business year we check to see if we have reached our targets – and then set ourselves new goals.
• Responsibility throughout the lifecycle of each product: We keep a close eye on the environmental and social effects our products have at each stage of their lifecycle, from resource use, via production by our suppliers, to disposal. Sustainability is a firm part of how we define quality
• Customer orientation: Customer orientation is the very foundation of our success. This principle is anchored in our company values and our corporate strategy – and it is alive in every single one of our employees.

Two corporate strategies that build upon each other: “Strengthening strengths 2010” and “Building Our Future on Tradition”

Following a long period of dynamic growth, our sales and results declined during the 2006 business year. Reasons for this included intensifying competition, initial investments and pressures in new lines of business, and the fact that we were reaching a natural limit of our growth potential in Germany.

We developed “Strengthening strengths 2010” as a comprehensive package of measures in response to this situation, focusing on three major objectives:

• To strengthen the brand both emotionally and qualitatively, in part by gradually integrating sustainability into the brand values as proof of the quality of our products and fundamental processes,
• To expand our eastern European business model, and
• To further develop the multi-channel sales system based on customer needs.

Over the past five years, we have successfully put these restructuring measures into action. We are also very proud of our achievements to date in the area of sustainability.

Reasons to be proud, motivation to keep going: Taking stock of sustainability in 2010

In 2010, the proportion of the total volume of raw coffees used in our German and international business activities that was cultivated sustainably had already reached 9.6 per cent. In the area of consumer goods, we offer environmentally and socially responsible cotton articles under the “Cotton made in Africa” label from the Aid by Trade Foundation as well as articles made of organic cotton. Products made of hardwood are subject to the Forest Stewardship Council’s (FSC^®) strict certification requirements. A comprehensive training and qualification programme in the production countries helps us foster compliance with social standards on the part of our consumer goods suppliers. Our “WE” (Worldwide Enhancement of Social Quality) programme makes a point of including production facility employees and their representatives, as well as our buyers, as the equal partners of management representatives.. Since October 2010, we have been offering our customers green electricity generated completely by water power. Tchibo makes it possible for German households to switch over to a clean, secure and certified electricity supply.

Additionally, we have developed and implemented sustainability management systems for our eastern and south-eastern European subsidiaries, adapting them to fit each individual country. This also involved setting up and training national sustainability teams.

“Building Our Future on Tradition” – our plan for success for the next five years

We are continuing “Strengthening strengths” in the shape of “Building Our Future on Tradition”. In doing so, we combine our tried-and-trusted strengths with new growth initiatives. We want to continue to enthuse and inspire our customers each and every day with the uniqueness of our brand, our coffee expertise and range of consumer products, our shop and warehouse concept, and with our corporate culture. We would especially like to expand our activities in online business, with the Cafissimo and in new coffee systems, in eastern Europe, in external business and by investing in up-to-the-minute system architecture.

One thing remains constant through all of these new developments: Sustainability is an integral component of our business activities. We want to have optimised all of our products and major processes to meet environmental and social standards and ensure that our stakeholder groups perceive and acknowledge our success.