Organisation Profile

Our production capacity at the end of FY2016 was 710,000 metric tonnes, with an annual turnover of €650 million, and we employed approximately 1,300 people. The infographic below displays several key facts for both Lamb Weston and Lamb Weston / Meijer

Lamb Weston® is a world leading producer of high quality potato products, with its products sold in 110 countries around the world. Lamb Weston / Meijer (LWM) serves markets in Europe, the Middle East and Africa (EMEA), as well as in Brazil and Russia. The company supplies frozen potato products, such as Twisters®, Potato Dippers and Connoisseur Fries to customers in the Foodservice, Quick Service and Retail segments. LWM is also an ingredient solutions provider for the food industry. For more than 20 years we have led the industry in innovation, by introducing inventive products that add convenience to the operations of our customers and making eating more pleasurable for their customers.

Sustainability Report 2015-2016

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Owners

LW/M is a Dutch ‘VOF’ (private partnership). Lamb Weston / Meijer VOF started in 1994 as a joint venture between Lamb Weston Holland BV and Meijer Frozen Foods BV. Lamb Weston is a publicly listed food company (NYSE: LW), while Meijer is a family-owned potato business. Both partners have a 50 percent share in LW/M.

History

Both Lamb Weston and Meijer have a proven track record of creating shared value and realising sustainable, long-term profitable growth. Lamb Weston was founded in 1950 by Gilbert Lamb in an American town called Weston. This is where the company and brand names originate from. Meijer established a potato farm in Kruiningen, the Netherlands, in 1920. Meijer started by growing potatoes, and later began processing them into frozen potato products, as Meijer Frozen Foods.

We are proud of our history, representing almost a century of consistent growth and expansion. Partnership and collaboration are deeply anchored in the foundation of Lamb Weston / Meijer and the way we work as Lamb Weston worldwide.

Organizational development since our last report

We have extended our facility in Bergen op Zoom with an additional production line for frozen premium potato products. Construction of the new line started in January 2015 and was finalized in July 2016. Numbers for the new line have not been included in this report, as the facility became operational outside the reporting period.

In January 2015 we opened a corporate commercial office in Breda, the Netherlands. In September 2015 we opened a new, state-of-the-art raw receiving and grading facility at our Kruiningen facility. In the spring of 2016 we established a legal entity in Brazil and our existing representative office in Dubai is scheduled to be transformed into a legal entity towards the end of 2016.

Locations

Our head office is in Kruiningen, the Netherlands, while our corporate commercial office is located in Breda, the Netherlands. We operate five manufacturing facilities in three countries in Europe: the Netherlands (3), United Kingdom (1) and Austria (1). In the Netherlands, the potato processing plants are located in Kruiningen, Bergen op Zoom and Oosterbierum. In the United Kingdom, the potato processing plant is located in Wisbech. In Austria, the potato processing plant is located in Hollabrunn. We also own a majority stake in Frisch & Frost, operating a dough-based (bakery) processing plant in Vienna, Austria. In order to serve the Russian French fries market, we have established a joint venture with Belaya Dacha to operate a potato processing plant in Lipetsk (Russia), this factory is currently being build. The data in this report cover our potato processing activities in Europe and include only data from the related five LWM facilities mentioned above.

In June 2016 we announced our participation in a joint venture with a Russian partner, under the name Lamb Weston Belaya Dacha LLC (LWBD). This joint venture will build a new potato processing plant in Lipetsk, Russia. The transaction was officially completed in August 2016, outside the reporting period of this report. The construction of the new manufacturing facility in Lipetsk is expected to be finalized by the end of 2017. The commercial activities of our existing representative office in Moscow will be integrated into LWBD.

Lamb Weston brand

Lamb Weston is much more than just the stamp on our products; it has a rich history that we are proud of. Every great invention starts with a little curiosity. ‘Is there a better way to cut a potato?’ was something our founder, Gilbert Lamb, asked himself. This question inspired the creation of the Water Gun knife. An invention that is still the global industry standard today.

Since then, seeing possibilities has been rooted in our DNA. When we look at a potato, we don’t just see a potato, we see possibilities. From the Lamb Water Gun Knife to our sustainability initiatives, from unsurpassed product quality practices to our track record of receiving customer awards. We challenge ourselves to be inventive by continuously seeing possibilities. To serve the world with potato solutions and to give our customers peace of mind, by providing them with the quality potato products they expect, and the best possible service. The story of our brand is a story of ambition, entrepreneurship, growth and innovation.

Our customers

We supply our potato products to customers in 90 countries throughout Europe, Russia, the Middle East, Africa and Brazil. The market segments we serve are Quick Service Restaurants, Foodservice, Retail, and the Food Ingredient industry. Lamb Weston is the second largest producer of (frozen) potato products worldwide, with twenty-two manufacturing facilities spanning three continents (North America, Europe and Asia) and sales in 110 countries. For many decades Lamb Weston has been a preferred supplier of frozen potato products to major global restaurant chains.

Our Supply Chain

Our growers

Other key suppliers

We work with approximately 700 farmers, who grow potatoes for us in the Netherlands, Belgium, northern France, western Germany, Austria, Italy, Slovakia, Russia and the United Kingdom. On the European continent, the average distance our potatoes travel from our growers to our production facilities is 100-125 km. In the UK, the average distance from our local potato growers to the factory is only 90 km.

We work with hundreds of suppliers, of which over 75 are identified as key suppliers for materials and services other than our basic raw product (potatoes). Key procurement categories are: ingredients, packaging materials, co-manufacturing, logistics and warehousing, fuel, power, water, equipment, sanitation, technical and general services. The majority of our suppliers are local suppliers, based in the countries – and often even in the regions – in which we operate. Some of our bulk ingredients, such as vegetable oils, are necessarily sourced from a global market, for example because raw materials for these ingredients are grown in other parts of the world, due to the specific climate needed for these crops.