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SUSTAINABILITY PROGRAM

Premio Foods, Inc. is committed to being a responsible steward of the environment and of those communities within which it operates by:
• Being a Good Corporate Citizen;
• Complying with and Respecting the Law;
• Minimizing the Organization’s Impact on the Environment; and,
• Continually Evaluating the Organization’s Performance with Respect to Sustainability.

Sustainability initiatives will continually focus on the following broad areas:
• Energy Usage
• Utilities 
• Waste Minimization
• Transportation

In an effort to address Sustainability areas in which consumers expect businesses to work towards, Premio will place particular emphasis on:

Pollution Reduction, including:
• Solid Waste Reduction
• Greenhouse Gas Emissions Reduction
• Products/Packaging Design with Environmentally-Friendly Contents and Minimal Packaging
• Efficient Distribution and Transportation of Goods

Natural Resource Conservation, including:
• Energy Use Reduction
• Water Use Reduction
• Communication of Environmental Efforts to Employees and Consumers
• Efficient use of backhaul mileage for material and ingredient pickups.
• Maximize inbound cube for inbound materials and ingredients.

Indicators used to monitor progress and measure Sustainability success will include:
• Percentage of packaging using recycled materials
• Packaging per unit of product
• Water usage per unit of product
• Electricity usage per unit of product
• Tons of waste recycled
• Percentage of product sourced within 200 miles
• Shipping cost per unit (an indicator of distance traveled)
• GHG emissions (as measured in MT/CO2e/lb produced) 
• Solid waste generated (as measured in lbs generated/lbs produced) 

Specific sustainability efforts will be categorized into five main areas:
• Solid Waste Reduction
• Greenhouse Gas Emissions Reduction
• Energy Reduction
• Water Usage Reduction
• Purchasing Practices

2011 RESULTS ACHIEVED

I. Solid Waste Reduction - Recycling
Cardboard is our most valuable material for recycling.  Vendors and suppliers are required to deliver items in cardboard packages rather than in wood or other crating material when possible.  Cardboard is compacted into bundles before disposal and 

2011 Target Items:    Supplies, Parts and Equipment packaging.
Recycled Material 2011/2010:                     +3% 

II. Greenhouse Gas Emissions Reduction

A. Inbound Freight

• Backhauled, whenever possible (Example: when a full load of meat arrives we re-load the carrier with single or multiple drop shipments to get them in areas to pick up more raw materials or meat to deliver to the factory).  This is for meat and spice raw materials that are local and out of state.

B. Outbound Freight
• Reduced facsimiles’ and paper usage by 70% by utilizing email for load planning, customer appointments, itineraries, and carrier communication.
• Continually looked at orders, delivery schedules, and customer receiving windows to maximize trailer capacity by shipping multiple drops in specific lanes locally and out of state.
• Shipped fresh and frozen products together by wrapping pallets using material to keep products thermal in transit and utilize thermal bulk heads for local shipments. This increased multiple shipments on a trailer maximizing the trailer weight limitation while maintaining desired temperatures.
• Reduced “LTL” shipments (less than trailer load) by 29 % by working with customers, carriers, and production to make products earlier than requested to maximize multiple drop deliveries.  This was less than 1% of gross pounds shipped.
• Maximized delivery synergies with Continental Capri and Atlantic Veal Company; shipping food products to the same customer base.
• Reduced pre-chilling truck wait time by 40% utilizing bulk heads before, during, and after loading local delivery trailers.
• Replaced old warehouse storage doors with automatic Arbon roll-up doors, which increased refrigerated and frozen temperatures by 29%.

III. Energy Reduction

A. Solar Power

A Solar Panel Project was initiated to install a Solar Photovoltaic (PV) System.  The system has an estimated Annual Electric Production of 150,000 KWh/year. This environmental “friendly” way to generate energy will produce sustainable energy saving over the next 25 years.
Target Areas:  Manufacturing Facility
Overall Energy Production:                      150,000 kWh.   
         
B. Improved Lighting
Lights fixtures and fluorescent technologies are continually evolving and offering new means of conserving energy.  In 2011, 100% of the Metal Halide lights, T-12, and 120 incandescent bulbs were replaced for T-8 Fluorescent bulbs.

Target Areas:  Manufacturing area
Savings due to Lighting Improvements:     6%                            

IV. Water Usage Reduction

A. Fresh Water Usage

Continued to investigate methods to reduce water consumption.  Premio is well aware of the environmental benefits and the cost saving associated with water management.

2011 Target Areas: Casing Preparation and Sanitation
Water Consumption 2011 vs. 2010 Result:     -4.8 %                       

B. Water Reuse
Efficient water management can reduce operating cost for water and energy without sacrificing production quality.

2011 Target Area:Use Cooler and Freezer Evaporator water to refill the cooling tower basin.
Water Reused in 2011:    4,960.00 gallons                      

V. Purchasing Practices
• Purchased full truck loads of raw material.
• Purchased full truck loads of resale raw material items, whenever possible.
• Purchased corrugated items made of 50% re-cycled material.

 

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