Paul Anderson Gram Commercial A/S Paul Anderson

1st May 2008 The Gram Green Paper Sponsored by

The background Gram have invested a considerable amount of money to commission this activity to better understand where we are as an industry Green issues…energy consumption has been our main calling for the last 8 years in the UK market First UK equipment supplier to focus on this issue as its main policy and point of difference

UK Climate Change and Energy Policy Targets  UK Kyoto obligation “Cut greenhouse gas emissions by 12.5% on 1990 levels averaged over ”  UK Energy White Paper: Goals to 2020 – 20% cut in CO 2 by 2010 from 1990 levels – 10% of electricity generated from renewables by – An aspiration to rise to 20% by 2020 – 10GW e of electricity from combined heat and power (CHP) schemes by 2010  UK Energy White Paper: Goals beyond 2020 –To cut CO 2 emissions by 60% by 2050 –To create a low carbon economy in the UK

ECA for Energy-Saving Investments  100% first year tax allowance +  Definitive list of qualifying products (ETL) Energy-Efficiency Loans for SMEs  £5k to £100k unsecured  0% APR  Repayable over 1 to 4 years

Gram’s aims Perceived lack of understanding of the ECA Scheme within the food service industry To continue to position ourselves at the forefront of the refrigeration category within the ECA Scheme, with the most comprehensive product listing…over 30 products listed. Gram aims to become the operators’ first port of call for detailed advice and insight into the scheme and its benefits

So what have we done… Independent quantitative research was carried out by Cambridge Direction Limited –700 telephone interviews were conducted amongst 6 defined market segment –Respondents varied from chefs, middle and senior management to proprietors from both group and independent catering businesses To understand where UK foodservice operators are concerning the growing need to be greener and more environmentally responsible

Summary High level of “green ness” but strong interest in being greener 74% of the total sample felt their businesses were “green”

Where there’s desire… …but 73% want to be greener Education and Healthcare channels have the greatest desire to be greener - each 83%

Could do better… Opportunity to do more  A third of Healthcare and over 40% of Workplaces felt they were doing either nothing or nothing of significance Pubs and Workplaces appear to have lower green aspirations  While these Pubs and Workplaces were among the most likely to think of themselves as green (78% and 75%), they were the least likely to want to be greener (64% and 63%)

How easy is it to be green in our industry? Just over half think it is easy to be green 56% of the total sample answered that they found it easy to be green at work and 41% felt it was difficult - both feelings present opportunities! But what is the interpretation of ‘being green’? A very wide interpretation of “green” Responses from a few of the sample do suggest that “green ness” can extend far beyond recycling and saving energy: “Fair Trade” “Using fresh produce” And buying “organic” is seen as green

Easiest actions Low energy perceived as difficult!  The hotels, healthcare and pub channels were most likely to mention low energy actions such as “light bulbs”, “low energy” or “energy saving”  This was the second most often mentioned area of green initiatives - but trailed well being “recycling” in terms of number of mentions - just 5% of the total sample mentioned low energy initiatives

Impact on time and costs And affordable for many too Across the total sample, 45% agreed that they thought they could afford to be as green as they would like Healthcare and Workplaces were most positive (59% and 51%) and the Education channel was least likely to say they could afford it (32%)

Low energy usage - the way forward Buying low energy equipment gets the thumbs-up for money savings 73% of the sample agreed that they would see long-term savings from buying low energy equipment like fridges - the highest score for the prompted initiatives After that there is a big drop to the next action that is seen to save money - choosing greener utilities - here 40% agreed it would save money long term Consolidated or single deliveries was felt to be a long term money saver by 36%

Actions that save money long term Ranking for agreement on saving £ long-term Action undertaken Percentage agreeing to saving being made 1st Buying new low energy equipment like fridges 73 2ndChoosing greener utilities like electricity40 3rd Getting single or consolidated rather than many, multiple deliveries across the week 36 4thLocal sourcing - fewer food miles30 5thRecycling packaging27 6thRecycling of waste food20  Initiatives must have a positive commercial bearing on a business

The feel good factor It is important to gain personal and commercial buy-in Respondents were asked which of the following statements best fits their thinking if they were able to adopt a greener policy? We’d save money long term I’d feel good about it It would be a combination of feeling good and saving money It’s mostly about the fact that it is essential for the environment and world Feeling good and saving money is a strong combination Over half the sample agreed with this statement suggesting a touch of emotional well-being as well as rational cash saving was motivating

Sector messages

Thank you Any Questions?