1. Integrated Product Policy (IPP) in the Food Industry: Market Leaders versus Bio-Pioneers Prof. Dr. Frank-Martin Belz Dipl.-Oec. Jasmin Pobisch Technical University of Munich TUM Business School Professorship for Brewery and Food Industry Management

2. IPP Food 2 Agenda IIntegrated Product Policy (IPP) IIResearch Methodology IIIEmpirical Results IVDiscussion

3. IPP Food 3 I Integrated Product Policy (IPP)  Green Paper of the European Commission published in 2001  Overall objective: reduce the environmental impact of products “from cradle to grave”  Major task for business: develop and provide greener products, inform consumers and enhance demand

4. IPP Food 4 I Integrated Product Policy (IPP)  Do market leaders and bio-pioneers develop and provide greener products?  Do they enhance the demand for greener products?  Do they co-operate with non-market organizations to enhance the supply and demand of greener products?

5. IPP Food 5 IIResearch Methodology  Unit of analysis: food processing companies (market leaders and bio-pioneers) 9 selected product categories  Qualitative and quantitative content analysis 27 written documents (mainly sustainability reports and environmental reports) 619 pages, 358 quotes  10 semi-structured Interviews

6. IPP Food 6 Product Categories Market LeaderBio-Pioneers MeatZimboHermannsdorfer Landwerkstätten DairyMüller GroupAndechser Molkerei Bio Käserei Zurwies Bakery & Bread KampsHouber Brezel Müller BreadHofpfisterei SweetsFerreroRapunzel Nestle IIResearch Methodology

7. IPP Food 7 Product Categories Market LeaderBio-Pioneers SpicesFuchs GewürzeSalus Coffee & TeaKraft Jacobs Suchard Ulrich Walter Baby FoodNumicoHipp Frozen FoodUnileverFrosta Oetker GroupWagner BeerHeinekenNeumarkter Lammsbräu InBevRiedenburger IIResearch Methodology

8. IPP Food 8 IIIEmpirical Results Main CategorySubcategoryCode Upstream Activities (Supply Side) Sustainable management of natural resources 1.1 Ethical purchasing1.2 Food modification1.3 Downstream Activities (Demand Side) Information and sensitisation2.1 Enhancement of consumer demand2.2 Political Activities Endorsement3.1 Partnership3.2

9. IPP Food 9 IIIEmpirical Results 34% 41% 25% 54% 37% 9% 0% 10% 20% 30% 40% 50% 60% Upstream ActivitiesDownstream ActivitiesPolitical Activities Market Leaders Bio-Pioneers

10. IPP Food 10 IIIEmpirical Results 20% 7% 6% 20% 21% 8% 18% 37% 11% 7% 22% 15% 2% 8% 0% 5% 10% 15% 20% 25% 30% 35% 40% RessourcesPeopleManipulationInformationDemandEndorcementPartnership Upstream ActivitiesDownstream ActivitiesPolitical Activities Market leaders Bio-Pioneers

11. IPP Food 11 IVDiscussion Suppliers Consumers Market leaders Market Leaders – Sustainability Followers? Suppliers Consumers Market leaders Non-market actors

12. IPP Food 12 IVDiscussion Suppliers Consumers Bio-pioneers Non-market actors Suppliers Consumers Bio-pioneers Bio-Pioneers – New Market Leaders?

13. IPP Food 13 From IPP to Balanced Sustainability Marketing?  IPP puts emphasis on products  Sustainability Marketing aims at customer value, social value and ecological value  Analysis shows the necessity to balance the upstream and downstream activities  Balanced Sustainability Marketing? IVDiscussion

14. IPP Food 14 Prof. Dr. Frank-Martin Belz / Jasmin Pobisch Technical University of Munich Professorship for Brewery and Food Industry Management Alte Akademie 14 D-85354 Freising-Weihenstephan Fon +49 8161 71 3096 Fax +49 8161 71 3209 Frank.Belz@wi.tum.de Jasmin.Pobisch@wi.tum.de www.food.wi.tum.de @  Thank you very much for your attention!