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Bavaria presented its first Sustainability Report

20 March 2009

- The report presents the balance on the Sustainable Development policy which along with SABMiller, Bavaria has committed to develop.
- The report emphasizes on four of the ten sustainable development priorities: reduce irresponsible alcohol consumption; produce more beer with less water; have supply chains that reflect corporate values; and bring benefits to the communities in which it operates.
- This is Bavaria's first sustainability report, following GRI methodology and audited by Bureau Veritas.

Bogotá, March 19th 2009. Bavaria, leading beverages company in Colombia, presented yesterday, to the public opinion and interest groups, its first sustainability report. Bavaria, as a company playing an important role in Colombian society, and within the context of its sustainable development policy, has set forth basic guidelines to promote it, identifying the risks and opportunities for the business within the global, environmental and social frameworks, looking to ensure their adequate fulfilment.

As part of its commitment and with the goal of making its actions visible, Bavaria has been producing social balance reports, however, starting this year, it began the making of these sustainable development reports, which will have an annual frequency and will be made following the AA1000 Accountability model and lined with the rulings of the Global Reporting Initiative -GRI- version G3, specialized guides for sustainability reports. These guides not only guarantee a greater transparency, but also ease the review and comparative processes in Bavaria's performance in these practices, by third parties.

The released sustainable development report contains details on the way in which Bavaria measured its performance, the obtained results of the past two years, and the commitments made in social and environmental issues for the next period.

It is based on the balance of the ten work priorities which Bavaria, in line with SABMiller, has identified and has committed to focusing its efforts on: reduce irresponsible alcohol consumption; make more beer with less water; reduce the energy and carbon footprint; foster the reuse of packages and recycling; work for operations to have zero waste; have supply chains which reflect its values; take benefits to the communities in which it operates; respect human rights; contribute to reduce HIV//AIDS and be transparent when reporting its progress.

"Any company, regardless of the work it carries out, has a commitment with the society in which it acts, even more so if we are talking of a company like Bavaria which has a positive impact on society, both in social and economic terms. This is why we wanted to refine the way in which we were measuring this impact by using the GRI methodology, which guarantees a better record keeping of our actions, to show progress and establish commitments. Society now has the information and can follow up on social and environmental performance" stated Fernando Jaramillo Giraldo, Corporate Affairs Vice-President of Bavaria.

Bavaria has focused on four of these priorities for it considers them of the highest importance for the current moment of the country. In this stance the company has looked to reduce irresponsible alcohol consumption and to work on the non consumption of minors; produce more beer with less water; have supply chains which reflect corporate values; and bring benefits to the communities in which it operates.

In this sense, Bavaria has developed important campaigns and communications actions to incentivise responsible alcohol consumption and eradicate underage alcohol consumption, such as the Alcohol Manifesto, the internal policy for employees, the Commercial Communications Code, the policy on market research, the understanding and analysis of the problem, the involvement of interest groups, the signing of the Protective Pact, the campaign "We can all be parents", the making of mass media campaigns, the making of the brochure "Before alcohol talks to your children, talk to them first!", among many other actions.

In the priority of making more beer with less water, Bavaria has managed the residual water treatment, the strict adherence to local regulations, leak control through measurements, reuse and recycling of water, the start of a water mapping process in all plants with a ten year vision to analyze the demand made by each plant on the equilibrium of the source, and especially, a serious commitment with the community.

In the supply chains trend which reflect corporate values, Bavaria has the Suppliers Management Division, which takes actions targeted to improving quality, opportunity, competitiveness and reliability of its suppliers, within the framework of sustainable development, as one of the requisites to reach certification. This has guaranteed that 72% of the total purchases correspond to local providers. It has carried out programs to support the development of suppliers, which have been implemented through the help of experts.

Lastly, in the benefits to the communities where it operates, Bavaria has managed to have an impact on them through the Destapa Futuro program, which is focused in entrepreneurship and employment generation. Has created an entrepreneurial culture through which each year 300 entrepreneurs are trained and $3.4 billion pesos in seed capital are handed out to the best 60 business plans. Likewise, it created the Bavaria Entrepreneurs Network, which allows all Colombians to access information, receive training and offer their products and services online. It has also carried out programs which benefit the communities close to the plants where it operates.

As part of its commitment, and as a follow-up to the publication of the report, Bavaria acquires several obligations which seek to continue benefiting the country; among them are the development of prevention programs targeted to employees and the implementation of a national plan with the coalition to fight underage alcohol consumption; update and complete the water sources mapping and establish alliances with global NGOs (WWF & TNC) to re-establish water sources at risk; and identify within the supply chain if there are minors working, specifically in coal mines.

Bavaria S. A. is the largest beverage company of Colombia. Its brands Águila, Águila Light, Club Colombia, Cola & Pola, Costeña, Costeñita, Peroni, Pilsen, Póker, Redd's and Pony Malta are leaders in their respective beverage categories in Colombia.

For additional information please contact:
Juan David Lee Aguirre

Phone +57-1-638 9290

Bogotá, D.C.


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