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Case Study: FRULACT

FRULACT is a business group established in 1987, positioned as a top-ranked innovative company in the supply of added-value ingredients for the food and beverage industry, focused on fruit preparations, flavours, and plant-based ingredients. Thus, FRULACT adds value to raw materials through innovative and efficient processing methodologies, betting on trends, and anticipating consumers' needs.
FRULACT serves globally a full range of dairy, beverage, and ice cream producers from its production units bases in Europe (Portugal, France, Germany and Switzerland), North America (Canada), and Africa (Morocco and South Africa).

FRULACT's headquarter is based in Portugal, and nowadays, the company is owned by Ardian, a world-leading private investment house.

FRULACT's products are: (i) stabilised preparations, that are based on fruits, vegetables, cereals and seeds, functional ingredients, savoury and/or specialities; (ii) flavours by the Frusenses; and (iii) plant-based ingredients by the Oatvita.

Why it is a good practice?
FRULACT cares about sustainability management, engaging and constantly communicating with stakeholders all along the value chain. Thus, FRULACT tends toward nature, partners, people and innovation.
At FRULACT, they rely on everyone to contribute innovative thinking and ideas. As part of the strategic review of RDI strategy, the governance of RDI activities

was also reviewed. An Innovation Committee was created.

FRULACT cares about its employees (Frupeople) and invests in fostering personnel development. They implement the Frulact Academy, a project that aims to provide the Frulacteans with the skills they need to perform at the highest level by sharing internal and external knowledge and establishing strategic partnerships. Frulact implemented an onboarding training program for all employees that covers Quality and Food Safety, Environmental and Health and Safety topics. In 2022 Frulact subscribed to Axa Climate School to upskill and engage all employees to succeed in the sustainable transition.

The RDI Strategy was defined and aligned with FRULACT's Global strategy, namely "Natural, healthier, and new experiences". FRULACT improves its portfolio with healthier and high nutritional products, providing new experiences to consumers. They also preserve and enhance the quality and properties of the ingredients by using new or improved processes to increase product quality. Furthermore, the reduction of sugar is identified as a strategic area of knowledge production by FRULACT. The company has been developing alternative formulations aimed at eliminating the incorporation of sucrose and/or reducing the energy value of its products by identifying solutions available on the market and analysing their sensory, nutritional, functional, microbiological, and sustainability impact.

In 2019 Frulact defined a sustainability strategy inspired by its value chain, where the Group realised the impact of specific activities - internal and external - on the company and the community. Frulact’s Value Chain for Sustainability reflects how they add value to the business through sustainable practices and the optimisation of the resources used. FRULACT's value chain for sustainability focuses on the following topics: Nature – protect in order to harvest; Partnerships – transparency builds trust; FruPeople – their driving force; Innovation – adding value; Products and Markets – challenge the future.

FRULACT promotes agricultural best practices through procurement policies while ensuring the quality and food safety of raw materials, including:
integration of biodiversity preservation: the Promotion of Sustainable Agricultural Practices for the enhancement of Biodiversity is fostered;
preservation of natural resources by developing innovative technologies that allow the sustainable use of ecosystem resources, with particular efforts to preserve the local ecosystems;
promotion of the establishment of partnerships with stakeholders to create a more comprehensive culture of biodiversity, and sustainable use of natural resources;
promotion of an internal culture of biodiversity preservation, raising awareness and sharing pertinent information on this topic.

FRULACT promotes environmental impact monitorisation to ensure the efficient use of resources, namely by:
improving the efficiency in their water consumption;
transition to energy sources with low carbon or zero carbon. In some units, FRULACT had launched
an energy production units (UPAC) with solar photovoltaic panels;
promoting the recovery of waste generated, eliminating the landfill operation.

Water is a raw material! Frulact also use it to ensure food safety and use it to clean production and packaging lines. Frulact is committed to use it in a more efficient way! FRULACT aim to reduce water consumption by 2% by 2025

Regarding waste management, some organic waste is recovered in composting processes. The waste recovery (% of waste valued through the circular economy) increased from 88 % in 2020 to 93 % in 2021.

FRULACT act in ethical and responsible ways with their own personnel and with all those they collaborate with. They promote and share values of respect and integrity towards humans and our planet

The supplier selection and approval process include the obligation to sign a declaration, in which the supplier ensures the absence of forced labour and child labour in all its forms, favouring suppliers with Global GAP certification, stimulating sustainability along the value chain.

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