Sustainability report 2017
Chocolat Frey AG aspires to long-term corporate success. The company can keep renewing itself, fund innovations and therefore safeguard its competitiveness only if it is commercially successful. A company can pay fair wages and offer career prospects only if it is commercially successful. And a company can be relied on to provide benefits and add value for customers only if it is successful. Securing our profitability is therefore not an end in itself, but a means to an end.
Customers of Chocolat Frey AG expect high-quality products and excellent product safety. Chocolat Frey encourages targeted growth with sustainable products. The company and society derive the maximum added value from optimum market coverage with products manufactured with the utmost attention to environmental and social responsibility. Our portfolio of sustainable products (particularly certified products) can be influenced by the design of our range, new developments and innovations, as well as appropriate marketing,
Product range and certified products
Chocolat Frey manufactures chocolate, chewing gum and semi-finished products. Semi-finished and finished chocolate products account for around 80% of our total annual sales.
Chocolate bars, confectionery items, chocolate snacks and seasonal goods.
Chocolate coatings, shavings, sticks, cubes, sprinkles, fillings, glazes, cocoa pastes and self roasted hazelnut and almond products.
Chewing gum products
Exclusively sugar-free chewing gum products in different formats, forms, surfaces and colours.
Chocolat Frey is certified for a large number of product-related quality standards, such as UTZ, organic, aha!, halal, etc. Compared to the previous year, Chocolat Frey increased its turnover in certified products by almost 10%, meaning that 55% of turnover now comes from certified products. The percentage of certified product sales is growing steadily, also boosted by greater consumer awareness. We are therefore getting ever closer to the target we set ourselves for 2020.
Our Chocolat Frey products are bought by Migros cooperatives, various industrial and food service companies, and private-label clients in Switzerland and abroad.
While around two thirds of our turnover is currently generated in the Swiss market, Chocolat Frey is continually working to expand its export business. The largest export markets at the moment are Great Britain, North America, Spain and Canada.
Sales and turnover
In 2017 we sold 40,359 tonnes of products. As Chocolat Frey is part of the M Group, the company’s financial results are only published at group or business division level. Chocolat Frey is part of the sweets & snacks, cooking & baking, and coffee business division, known as Segment IV at M-Industry. The Facts and Figures 2017 brochure contains information about sales trends for M-Industry and Segment IV, while the Migros Annual Report 2017 presents the Migros Group’s key financial figures and financial report.
Chocolat Frey AG is aware that it has a particular responsibility for hygiene and product safety. With our very comprehensive and certified quality management system, Chocolat Frey ensures that all relevant statutory requirements, as well as the requirements of certification standards and internally imposed guidelines are observed. Chocolat Frey feels obliged to produce its entire product range at a quality that is appropriate to the market and with a leading level of hygiene and safety.
Chocolat Frey has been certified for the following systems, among others, to fulfil our internal food safety requirements:
Chocolat Frey products are subject to systematic, risk-based quality control. Any deviations in quality or even serious quality defects that constitute a health risk for consumers result in an immediate halt to distribution of the products concerned. In the year under review, no products that could potentially prejudice product safety had to be taken out of circulation.
With ever more resources being consumed worldwide, it is vital to use all resources, be they energy, water, or raw materials, as efficiently as possible. Chocolat Frey AG strives to produce as much as possible, with as little input (resources) as possible.
Our guiding principle for the future is to produce more with less and to avoid unnecessary waste of raw materials of any kind. This is where financial and environmental benefits go hand in hand.
Packaging is primarily used to protect products, while also facilitating handling during transportation and communication. Appropriate packaging helps increase product safety and longer consumption periods and therefore also conserves resources. Product packaging also influences the possibility of subsequent recycling by consumers, therefore Chocolate Frey also tries to take account of later disposal, in addition to manufacturing and use, in product design.
By 2020 Chocolat Frey wants to reduce packaging material used per tonne produced by 10%. Similarly, the recycling rate and proportion of renewable raw materials in packaging should be increased.
Reduction in packaging material
Despite a switch to thinner materials in some transport packaging, it was only possible to reduce slightly the amount of packaging material in 2017. Chocolat Frey packaging is already extremely material efficient, therefore further savings on packaging could have an impact on product protection. The market trend for ever smaller, attractive individual packaging with greater functionality and convenience is hampering efforts to reduce packaging because material usage is greater in smaller packaging units.
Chocolat Frey is therefore focusing on environmental optimisation of its packaging. Attempts are continually being made to increase the rate of recycling and, where possible and sensible, the proportion of renewable raw materials. Last year various types of packaging were switched to recycled material and FSC, with larger optimisation projects not planned until 2018.
The procurement principle for cardboard packaging is clearly defined: where paper and cardboard are concerned, Chocolat Frey uses FSC-certified material (FSC and FSC mix) wherever possible; when supplies are short, their recycled material is used.
In 2017 the recycling rate was 35.4%, which is 2% higher than the previous year.
Recycled materials are used in secondary packaging only, i.e. packaging that has no direct contact with chocolate. The reason for this is that recycled material contains substances that are harmful to health and that could be transferred to the chocolate. This way Chocolat Frey guarantees safe consumption of its chocolate.
Proportion of renewable raw materials
78% of our packaging material is made from renewable raw materials. Packaging material made from non-renewable resources includes plastics, aluminium and tin. Tin is used for cans, aluminium as foil for the chocolate and plastic for chocolate blister packs or bags for Easter bunnies. Chocolat Frey does not use bioplastics, or plastic from renewable raw materials because there is no benefit overall to using bioplastics from an environmental perspective:
Chocolat Frey AG believes in avoiding waste in the first instance and recycling as much as possible of all unavoidable waste. Waste can be avoided through efficient and innovative production processes, but also through good planning. By 2020 Chocolat Frey intends to reduce company waste by 5% per tonne of chocolate manufactured and recycle 80% of company waste.
In 2017 Chocolat Frey produced 3,070 tonnes of waste and so missed by just 1% its target for reducing specific company waste. This discrepancy is very low and lies within acceptable margins. Various renovation projects were also carried out in 2017, which produced a lot of construction waste and consequently increased the overall quantity of waste.
Company waste is split between organic and non-organic waste. Any organic raw materials should be processed and recycled with the greatest possible added value. Here Chocolat Frey is guided by the “Food -> recycling -> animal feed -> fermentation -> composting” recycling pyramid, thus guaranteeing full reuse of organic waste. Cocoa and nut shells, plus any chocolate remains from production are processed into animal feed. The remaining organic waste is fermented.
In line with internal specifications, we strive to recycle all non-organic waste. Non-recyclable raw materials are primarily pre-treated wooden pallets that have to be burned in the incineration plant in Buchs in compliance with the law. Building rubble goes to landfill, while special waste, such as flavouring agents and mineral oils, are disposed of in accordance with the applicable provisions.
Chocolat Frey’s efforts are paying off. In 2017 the company achieved an 80% recycling rate, which must be maintained or even improved.
Food waste is food that is lost along the supply chain. Food waste can occur during processing, but also if the maximum internal storage period is exceeded. By-products, such as cocoa shells or nutshells, are not considered as food waste because they have no use as a food.
More than half of the organic waste that occurs at Chocolat Frey AG is in the form of by-products.
Food that is processed further into animal feed or fermented is considered to be recycled, but at the same time corresponds to a food loss and is therefore classed as food waste.
By 2020 Chocolat Frey intends to reduce food waste by 15% to 18.5 kg per tonne of chocolate produced. Thanks to several implemented measures, Chocolat Frey was able to reduce the amount of food waste by just under 7% to 18.6 kg per tonne of chocolate in 2017, and is therefore well on the way to achieving its target by 2020.
According to Chocolat Frey’s Production Manager, there are many small measures that contribute to reducing food waste. One measure successfully implemented in 2017 concerned the company’s rework, in other words chocolate scraps from the production process. The rework is stored temporarily and used again in the next production run, provided that the rework’s internal shelf life has not been exceeded. Better management of rework stocks has ensured continual recycling of chocolate residues, saving 35 tonnes of chocolate. In 2017 employees were also trained about food waste, so that Chocolat Frey can prevent food loss in future too.