In 2016 our purchases amounted to 242,8 MEUR in value. 72 % of the total is sourced from EU countries or Norway, Finland being the single largest sourcing country with a share of 36 %. In total 7 % is sourced from risk countries as identified by the Business Social Compliance Initiative (BSCI).
Sourcing of wines, raw materials, packaging materials and finished goods
We purchase wines, barley and other raw materials and packaging materials for our proprietary brands from suppliers, as well as finished goods from our partners.
We purchase barley from 1,500 contract farmers in Finland, directly or through grain traders. We also encourage our contract farmers to optimize the efficiency of their operations and use production inputs sensibly, for example, as part of our BSAG commitment made in 2015 aimed at protecting the Baltic Sea.
We require compliance with the principles of the BSCI Code of Conduct from our wine, raw materials and packaging materials suppliers and partners. In addition, they fill in our Corporate Social Responsibility questionnaire. The biggest sourcing countries of wines for Altia’s proprietary brands are Australia, USA, Chile, South Africa, Spain and Hungary. For raw materials and packaging materials, the biggest sourcing countries are Finland, Sweden and Germany. The most significant origins of our partners’ products are France, Italy, South Africa and USA.
Social responsibility audits are conducted at our suppliers and partners within the BSCI framework. The audits focus on BSCI risk countries and are commissioned by the Nordic alcohol retail monopolies, who are BSCI participants. In 2016, new audits were conducted in Guyana and Argentina.
We conduct our own audits at raw material and packaging material suppliers, which focus on quality but also cover corporate responsibility topics. In 2016, four such audits were conducted.
When sourcing different goods and services, which are not part of Alta's end products, product safety is ensured through documentation. The fulfilment of the contractor’s obligations and liabilities is ensured by requiring suppliers to register into Suomen Tilaajavastuu Oy’s Reliable Partner service. We are also a member of Nordic Source, a cooperative society for joint purchases, where responsibility topics are also discussed.
Altia Supplier Code of Conduct
We have created our own Supplier Code of Conduct for suppliers and subcontractors. Starting in 2017, the Code of Conduct will be made an integral part of contracts with suppliers.