Responsible Sourcing

Bacardi has embedded responsible sourcing into our business through our procurement strategy. We choose suppliers who commit to the highest standards for labor and human rights, health and safety, environmental protection, and business integrity.

We work with our suppliers to ensure these high standards are met and together we address the challenges faced within the supply chain, including ethical sourcing, compliance, advancing human rights and reducing environmental impacts.

Our Responsible Sourcing Standards apply to all suppliers providing goods and/or services to Bacardi - more than 3,000 in FY18. These standards, along with our Vendor Qualification Process (VQP), represent the minimum requirements for our supplier partners.

To trade with Bacardi, vendors must comply with the standards set out in these documents and ensure their suppliers and subcontractors do likewise. We require the agreement to and return of a satisfactorily completed and executed copy of these documents for each manufacturing facility used, including principal subcontractors (i.e. where main manufacturing is outsourced). Bacardi is committed to only selecting suppliers (vendors, agents, and manufacturers) that strive to conduct business in a professional and ethical manner.

In addition, we work within the Sedex platform (a nonprofit organization dedicated to improving ethical business practices in global supply chains) to manage our multi-tier responsible sourcing data. This includes checking our suppliers’ compliance to our standards, understanding challenges faced in achieving compliance, opportunities to work together to develop solutions and improve standards, and gives the supplier a platform to demonstrate responsible sourcing compliance to new customers.

Supplier Engagement Approach


Sugarcane-derived products are our most significant agricultural supply and we work with our suppliers and industry groups to ensure all suppliers achieve certification to the Bonsucro standard (a global multi-stakeholder nonprofit organization that promotes sustainable sugarcane production, processing and trade around the world, covering human rights and labor conditions, biodiversity, environmental, and economic viability of sugarcane producers). As of the end of 2017, 86.3% of our sugarcane-derived products used to make our BACARDÍ rums are sourced from Bonsucro-certified suppliers, well ahead of our original 2017 target of 40%.

At the end of FY18, 88.5% of our global direct spend was linked to Bacardi through Sedex, with more than 50% of those linked audited. 100% of our global point of sale suppliers are Sedex linked to Bacardi, with up-to-date audits. During FY18 we also worked with the Prosecco and Asti Consortiums, and Equalitas (a standard which focuses on the social, environmental and economic pillars of sustainability of the wine sector) to develop a plan to implement their standards for our grape suppliers.

Moving forward we will work to define and implement sustainable agriculture sourcing strategies, with credible third-party certification for additional crops, including our botanicals, agave, and wheat.

Packaging

We are also working with all our board and paper packaging suppliers to ensure they are sustainably certified. As of mid-2018, 90% of our corrugated packaging suppliers are Forest Stewardship Council (FSC)/ Programme for the Endorsement of Forest Certification (PEFC)/ Forestry Sustainable Initiative (FSI) certified. We are working with our individual box and label suppliers on action plans to achieve FSC certification, currently gathering baseline data suppliers. As of mid-2018, 52% of our individual box (board) and 66% of our label (paper) suppliers are certified.

As announced with the launch of the expanded Good Spirited initiative, our long-term global goal to continue to source our materials responsibly encompasses all our key raw materials, paper, and board. In addition, we will work with all new direct or point of sale suppliers to ensure they meet the highest of ethical standards for labor, human rights, and environment and economic issues. We will continue to ensure 100% of our global point of sale suppliers are linked to Bacardi through Sedex and that they have up-to-date audits that detail their compliance to minimum standards.