british american tobacco p.l.c. sustainability report 2010 - Souza Cruz's work with retailers

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Sustainability Report 2010
Brazil factory

Souza Cruz sells its products through 250,000 retailers and in recent years has implemented several initiatives under the umbrella of its ‘Sustainable Retail Platform’.

Youth smoking prevention

In 2009, Souza Cruz launched its latest youth smoking prevention (YSP) campaign as one of the first companies in the Group to be aligned to our global YSP approach. The campaign aimed to cover all 250,000 retailers serviced by Souza Cruz and is delivered in partnership with national retail trade associations. It focuses on raising awareness among retailers of the minimum age law of 18 for the sale of tobacco products in Brazil. As well as providing retailers with YSP point-of-sale materials, the company’s Trade Marketing & Distribution teams also discuss the importance of youth smoking prevention and provide guidance and advice on age verification.

In 2010, the company carried out a survey of retailers to establish the effectiveness of the campaign. The results showed that retailers’ awareness of the law prohibiting the sale of tobacco products to minors had increased from 79 per cent to 93 per cent. Of these, 74 per cent were first made aware of the law by a tobacco company. In the vast majority of cases (85 per cent) this tobacco company was Souza Cruz. Additionally, the survey showed that 67 per cent of retailers now request age verification before making a sale – an increase of 6 per cent.

Responsible Retailing Development Centre

Souza Cruz sponsored the establishment of the Responsible Retailing Development Centre in 2007 by the Dom Cabral Foundation. It aims to generate expertise and management tools, and implement innovative projects to enhance standards of conduct in retail management.

In 2010, the Centre completed two major projects: the Fundamental Principles of Responsible Retailing and the Future Retailing Model. The Fundamental Principles of Responsible Retailing are 16 guidelines for retailers to enhance their responsible business practices. They also encourage producers, suppliers, distributors and consumers to do the same. The Future Retailing Model is a scenario of sustainable retailing in 2020. It highlights the changes that will need to be made to make this projection a reality, providing practical examples and guidelines for retailers.

Retailer engagement

In 2010, at the annual Petrol Stations and Convenience Stores Exhibition, Souza Cruz presented the concept of sustainability and how it relates to the retail trade. The event was attended by more than 80 companies from the oil and gas sector.

Souza Cruz also demonstrated its leadership in responsible business among the wider retail community by sponsoring a television programme in 2010. ‘O Empreendedor’ was aimed at small businesses in the bakery sector and Souza Cruz contributed information on addressing environmental impacts, customer service, ethical principles and retail management.

The challenge for Souza Cruz is to clearly demonstrate to retailers the business value of sustainability, not just as a 'nice to have' but as something that can benefit them in the long term. This is particularly the case for the many small retailers that the company works with.

What's next?

Souza Cruz plans to continue building upon these initiatives and to develop new activities as part of its Sustainable Retail Platform, as well as aligning its aims with other business processes, including those in the Marketing function.