Implementation
Results
Constraints or dilemmas
Recognition
Ahold Sustainability Report 2004
Describe how you put this
program into practice
Objectives
Time frame
Scope
Describe the main current
and/or expected results from
this program: social, environmental
or commercial
Describe the main difficulties,
constraints, dilemmas you
ncountered throughout the program,
and how did you handle this
If possible, provide us with balanced quotes
(positive and/or constructive comments) from
both an external partner and internal program
champion
The Utz Kapeh code is a set of internationally recognized economic, social and
environmental criteria for responsible coffee production, such as minimal and
appropriate use of pesticides, protection of labor rights and access to education
and health care.
Independent third-party auditors are approved by Utz Kapeh and engaged by
producers to assess compliance with the Code of Conduct. They inspect coffee
producers, at both management and farm levels.
The program is complemented by a comprehensive, internet-based Track-and-
Trace system. This creates the opportunity for coffee brands, retailers and end-
consumers to trace back their coffee's place of origin and it provides them with
the assurance that the coffee they have purchased has been sourced from
responsible producers. This direct link with origin is a real innovation in the
coffee industry.
The Utz Kapeh program started in 1997. The objective of the Ahold Coffee
Company is to have all of our coffee certified. In 2003, we started buying
100% certified products. In 2005 at least 90% of our private label products
had an Utz Kapeh logo on the package.
Since its introduction, the Utz Kapeh program has developed rapidly. Initially
founded by Ahold and its suppliers in Guatemala, it has become an
independent, not-for-profit non-governmental organization (NGO), promoting
sustainable coffee production to suppliers, as well as to other retailers and
roasters.
The Ahold Coffee Company purchases around 16,000 tons of coffee for the
corporate brands of Ahold retailers in the Netherlands, Sweden, Norway, the
Czech Republic and the U.S. each year. One of these, Albert Heijn's private
label coffee, is the second largest coffee brand in the Dutch market.
The Utz Kapeh Code of Conduct is now officially recognized by EUREPGAP and
the leading NGOs in the Netherlands, the rest of Europe and Japan.
In the international coffee market there is no contact between producers and
roasters. This is mainly because the supply chain is long, with many traders,
importers and exporters in between, and price-setting is done at the terminal
markets. This means that there has been a lot of blending of different kinds of
coffee parcels. Traceability is extremely complicated and most of the time not
possible. Utz Kapeh however requires or enables a roaster to source coffee
directly from certified coffee producers. This means that Ahold Coffee Company
manages a fairly long supply chain. Full focus and attention and strong long term
relations with the producers enable us to guarantee full traceability of our coffee.
Dutch minister approves of Utz Kapeh
The Dutch minister for Development Cooperation Ms. Van Ardenne has publicly
expressed her approval of the Utz Kapeh program. In a speech delivered at
an EU conference on Corporate Social Responsibility on November 9, 2004,
she told the audience that "the Dutch government encourages corporate social
responsibility by supporting initiatives like... Utz Kapeh coffee."
Visit www.minbuza.nl to read Ms. Van Ardenne's speech in Dutch.
