REPORTING CONTEXT ABOUT US OUR OPERATING CONTEXT OUR PERFORMANCE OUR LEADERSHIP GOVERNANCE OUR FINANCIAL STATEMENTS SHAREHOLDERS' CORNER Potential impacts • Profitability adversely affected in the event of termination of agreements or less favourable renewal terms. • Ineffective partnerships. Associated opportunities • Sustained collaboration with our international partners to enable rapid achievement of goals and continued expansion of portfolio and markets. • Leverage partnership to increase positive social and environmental impacts. Potential impacts • Products not aligned with consumer expectations and behaviours, reducing sales. • Change in consumption patterns in Mauritius towards healthier options driven by health issues related to diabetes and cardiovascular diseases, following similar trends in western developed countries. • Prevalence of alcohol-related health problems in Mauritius and other markets. Associated opportunities • Develop new product categories that respond to health-related requirements. • Foster consumer loyalty by providing more detailed product information. • Promote responsible alcohol consumption. • Work with customers and partners to promote safe and responsible gatherings in the ‘new normal’. • Management focus on effective day to day interaction with our strategic partners. • Engagement in joint projects and business planning with a focus on strategic issues affecting growth. • Participation in senior management forums. • Ongoing analysis of customer data from market surveys to identify emerging consumer preferences and requirements. • Consistent and seamless contact with customers through a connected multiple-channel retail experience. • Reducing the calorie content of products in the portfolio. • Offer the right product, at the right price, in the right package through the right channel. • Improve consumer information through more transparent product labelling. • Ongoing discussions with government, NGOs and specialists to promote responsible alcohol consumption. • Train our frontline sales team on our products and ingredients to be ambassadors of our beverages and provide customers and consumers with the facts they need to make informed decisions. Risk Risk Impacts and opportunities Impacts and opportunities Mitigation Mitigation TREND TREND 5. Changing societies and consumer preferences (External) • Changes in demand for products. • Increasing consumer consciousness about the products they buy. • Decreasing and ageing population. • Healthier lifestyles • Changes in consumer behaviour linked with Covid-19. 6. Strategic stakeholder relationships (External and internal) Particularly with our international partners. Potential impacts • Increased pressure to promote eco-friendlier products and packaging. • Waste reduction from production operations. • Stopped or reduced production due to a lack of raw materials. • Increased exposure to energy price fluctuations. Associated opportunities • Positioning PhoenixBev as an industry leader in waste management and other eco-friendly practices. • Using innovation to achieve greater resource efficiency. • Re-use and recycling of waste. • PhoenixEarth promotes environmental and social responsibility to support the UN SDGs. • Ongoing engagements with regulators and industry to promote responsible packaging initiatives. • Focus on identifying valorisation options for glass and other waste streams, including recycling glass through Mauritius Glass Gallery and our partnership with Beemanique. • Recycling PET bottles. • Careful planning and monitoring of water availability and use. • Revamping production lines to improve water and energy efficiency. • Various projects in progress on production sites to shift to green/ renewable energy. • Certification to international environment management system ISO 14001:2015 across our manufacturing sites to minimise our environmental impact and ensure responsible practices. Risk Impacts and opportunities Mitigation TREND 7. Environmental considerations (External and internal) • Environmental protection (water, biodiversity, waste management). • Resource scarcity through natural disasters and climate change. CONTINUED RISK RISK REPORT 41 Phoenix Beverages Limited Integrated Report 2022 40 Phoenix Beverages Limited Integrated Report 2022
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