Introduction from Tim Warrillow, CEO
This statement sets out the steps Fevertree Drinks plc (“Fever-Tree”) has taken to mitigate the risk of modern slavery and human trafficking occurring within any part of our business or supply chain during the financial year ended 31 December 2017.
We are committed to improving our practices to combat slavery and human trafficking and continue to assess our business and supply chain to identify risks and then to target those areas with policies, procedures and training to ensure we maintain appropriate safeguards against any mistreatment of persons within our own business and our supply chain.
Fever-Tree is the world's leading supplier of premium carbonated mixers for alcoholic spirits by retail sales value, with distribution to over 60 countries worldwide. Based in the UK, the brand was launched in 2005 to provide high quality mixers which could cater to the growing demand for premium spirits, in particular gin, but also for vodka, rum and whisky. Fever-Tree sells a range of carbonated mixers to hotels, restaurants, bars and cafes as well as retail outlets. Approximately 50 per cent of Fever-Tree’s sales were derived from outside of the UK in financial year 2017, with key overseas markets in the US and Europe.
The Group’s largely outsourced business model, underpinned by a handful of strong, well-established relationships with suppliers, bottlers and distributors, allows for scalability and operational flexibility whilst maintaining the high levels of quality control.
Fever-Tree’s 2017 global turnover was £170m.
We are committed to ensuring that there is no slavery or human trafficking in our supply chain or in any part of our business. Our policies reflect our commitment to acting ethically and with integrity in all our business relationships and to the implementation and enforcement of effective systems and controls to ensure slavery and human trafficking is not taking place anywhere in our supply chains.
Our Social and Ethical Business Policy sets out the standards of employment that we expect our product and other major suppliers to conduct their business in line with. These standards are in accordance with the Ethical Trading Initiative Base Code and International Labour Organisation fundamental conventions. We require all product and major suppliers to sign up to this policy and to confirm annually that they are acting in accordance with it. We verify our supply chain working conditions via a combination of visits and self-assessment.
In addition, contractual commitments requiring compliance with the Modern Slavery Act are included in all new supplier contracts as they are signed. This includes obligations on suppliers to: comply with the Modern Slavery Act, conduct regular Modern Slavery risk assessments within their own supply chains, implement appropriate controls to prevent Modern Slavery, and notify Fever-Tree immediately if they become aware of any Modern Slavery within their supply chains. Suppliers that breach these obligations will face appropriate actions which could include termination.
Risk Assessment, Audit and Monitoring
Our preliminary assessment is based upon geography, the goods or services purchased, supplier quality performance and the nature of the business transaction. We understand that one risk area is in our product supply chains and that inherent risks lie in sourcing raw materials globally. Other risks identified include suppliers’ potential use of contractors and seasonal workers and as part of the supplier approval process it is required that suppliers have systems to manage and monitor providers of agency workers including procedures to ensure forced labour does not take place.
Fever-Tree is a member of Sedex, which promotes improvements in ethical and responsible business practices. We are able to disseminate information about our businesses and facilities to customers through this widely used and recognised system.
All our employees have a contract which sets out their working conditions, expected hours of work and salary. There is a staff handbook detailing policies, procedures, rights and benefits and all HR processes and policies are in line with UK employment laws. There are clearly set out disciplinary and grievance procedures, a Whistleblowing procedure and an Anti-Bribery and Corruption Policy.
If we learn of any allegations of slavery or trafficking through our whistleblowing system or any other means we will act promptly and effectively in the best interest of the workers affected, which could mean the termination of the business relationship with the supplier concerned.
This statement is made pursuant to section 54(1) of the Modern Slavery Act 2015 and constitutes Fever-Tree’s slavery and human trafficking statement for the financial year ending December 31, 2017.
Tim Warrillow, CEO
Fevertree Drinks plc