Responsibility is colourfulSustainability at Ritter Sport

Sustainability is a much talked about topic nowadays. However, not many people have a clear idea what the word actually means. To many people, ‘sustaining‘ sounds like checking or paying attention - with a wagging finger. Only very few people associate the term with joie de vivre. That is a shame. Because striving towards a good quality of life for generations to come is a source of joy. In our company, sustainable management stands above all for pleasure, innovation and growth. ‘Acting sustainably‘ is our philosophy. It has defined our family for the past 100 years. Only with this maxim can we connect the two things we believe belong together: chocolate and responsibility.

Marli Hoppe-Ritter Alfred T. Ritter

3

Foreword

Contents

54

People

Page 12– 13

Economy

Page 8– 9

Nature

Page 6– 7

Energy

Page 10 – 11

Society

Page 16– 17

Culture

Page 18–19

Brand name

Page 20–21

Quality

Page 14– 15

6

Eco...logicalLong before ecological agriculture became a hot topic, siblings and Ritter Sport proprietors Marli Hoppe-Ritter and Alfred T. Ritter founded the ‘Cacaonica’ project in the Wasala region of Nicaragua in 1990. The family company‘s idea was as good as it was ambitious: they wanted to foster the production and marketing of sustainably cultivated cocoa, protect the natural forest resources and offer local producers a secure livelihood.

At the start there were 170 small farmers who learnt to look after cocoa trees, ensure

quality and to not only grow organic cocoa, but also to market it themselves.

Now there are 2,700 farmers in the project. They no longer only get to sell their cocoa to Ritter Sport, but can also sell to other purchasers. Ritter Sport pays the project participants a purchase price which is significantly above the global market price. This ensures the farmers receive both good payment and greater planning security.

Of course, it is not just the farmers in Nicaragua who should benefit from the

Taking responsibility: the Cacaonica project has set itself the goal of fostering the farming, cultivation and marketing of organic cocoa.

Enjoyment with a clear conscience: Ritter Sport organic chocolate has been around since 2008.

Nature

ecological commitment of the company, but also customers in Germany and around the globe. That‘s why, in 2008, Ritter Sport was the first major chocolate manufacturer to launch its own organic range. The cocoa naturally comes from the Cacaonica project, but also from Ecuador and Peru.

The organic chocolate comes in five varieties: Milk Chocolate, Chopped Almonds, Raisin Cashew, Cocoa Flakes & Nuts and Macadamia. Of course, these ingredients come from ecologically certified farms.

The cocoa fruit contains cocoa beans and therefore the most important raw material for every delicious chocolate square.

7

"My father was one of the first Cacaonica

farmers, now three generations of

our family work in the project."

Daniel Calero, cocoa farmer from

Nicaragua

WALDENBUCH

Economy

"A business relation-ship with Ritter Sport is a partnership on an equal level."

Olaf Reichardt, Managing Director of Fuchs & Hoffmann GmbH and a Ritter Sport supplier of more than ten years

From Baden-Württemberg to the whole worldFounded in 1912, Ritter Sport has kept its current headquarters in Waldenbuch near Stuttgart since 1930. This is where the company manufactures its square chocolate bars and clearly avows itself to the production location of Germany. Ritter Sport‘s suppliers, however, are all around the globe. Just like its customers. Chocolate lovers now enjoy the brightly packaged bars in more than 90 countries.

Ritter Sport links its optimum quality with ecological and social responsibility. This begins with the purchase of raw materials. Regardless of whether it‘s cocoa from

Nicaragua, raisins from California or nuts from Turkey: Ritter Sport puts great value in partnerships with its suppliers in accordance with its purchasing strategy. The company has been working with the majority of them for many years and maintains personal contact. This creates trust and reliability. Both of which are extremely important to the high-quality producer Ritter Sport. After all, even the smallest fluctuations in the quality of the cocoa, milk or almonds have a great effect on the taste of the chocolate. That‘s why Ritter Sport is very careful in the selection of its suppliers and is continuously carrying out audits to ensure that the agreed upon

Production location in Germany: Ritter Sport employs around 900 people.

The global origin of the ingredients is evident in the diversity of the chocolate range:

around 900 employees produce not only 24 standard varieties, but

also two mini-mixes, five organic squares, seven large bars, the chocolate cubes and varying

seasonal varieties. On average, a total of

2.5 million colourful squares leave the factory in

Waldenbuch every day. This means almost one in four

100 gram chocolate bars in Germany originates from Ritter.

standards are being maintained. This is the only way to guarantee the high quality and consistent flavour of the products in the long-term. In return, it is a matter of course for Ritter Sport to pay fair prices.

The ingredients, like the customers, are from all over the world. Production, however, only takes place in

Waldenbuch near Stuttgart.

98

Energy

Green energy for colourful squaresMarli Hoppe-Ritter and Alfred T. Ritter shows how importantly the family company takes the topic of environmental awareness: ecological measures and investments are fundamental as long as they do not create more than ten per cent additional cost. In the case of higher additional cost, management makes the decision. It should therefore come as no surprise that Ritter Sport is also a trendsetter when it comes to packaging. The company was the first chocolate manufacturer to replace aluminium and paper with a polypropylene wrapper in 1991. The sealed wrappers not only save materials, they are also completely recyclable.

Clean environment: Ritter Sport is investing in ecological measures in order to keep nature intact.

Clean energy: the company‘s own heating and power station saves one million litres of heating oil per year.

6,800 tonnes per year - around the same output as 10,000 one-person households create through electricity usage in a year. Ritter Sport uses the plant‘s waste heat for its own heating. This covers around 70 per cent of the heating requirement of the offices and production building in Waldenbuch. Ritter Sport creates around 30 per cent of the required electricity itself with the plant. Furthermore, around 1,000 photovoltaic modules on the roof of the production building make use of solar energy. Ritter Sport buys the rest of its energy requirements from the green electricity pioneers at the Schönau electrical power station. A policy decision by the owners

"Ritter Sport has been proving for years that manufacturing companies can forgo sourcing their energy supplies from nuclear power stations."

Ursula Sladek, Co-Founder of the Schönau electrical power station

The family company Ritter Sport takes its responsibility for the next generation seriously and consistently backs the protection of resources, green electricity and economical use of energy.

Ritter Sport has run its own combined heating and power station since 2002, which supplies the company with energy. The plant saves around 12 million kilowatt hours of primary energy per year, representing around one million litres of heating oil. This meant the CO2 emissions were able to be reduced by

The approx. 1,000 photovoltaic modules on the roof of the production

building make use of solar energy.

1110

People

Responsible cooperationThe Ritter family knows that the success of its company is largely reliant on the motivation and qualification of its employees.

Only real chocolate fans, who work with passion and joy in Waldenbuch, guarantee the high quality of the products. That‘s why the company finds reliable cooperation so important. It is no wonder, then, that most of the around 900 employees have worked for Ritter Sport for many years. Many are the third generation. Fairness also involves fair pay. The same pay for men and women for the same work is a matter of course at Ritter Sport. Something just as important to

Ritter Sport as fair pay is a pleasant working environment. Openness and readiness to cooperate are what characterise the management style. Employees should prefer coming to work in the morning than leaving in the evening - that is the owners‘ creed. Management does a lot to make this happen. The professional perspectives at Ritter Sport are varied and the training and development opportunities comprehensive.

Health is important: that‘s why the company supports its employees with a versatile fitness programme.

Combining family and career, i.e. the opportunity for training during parental leave, is fostered at Ritter Sport. But young parents are not the only group whose wants and needs are looked after by the employer. Older employees are also consistently integrated into the development programme thanks to the 55 plus initiative.

And Ritter Sport wouldn‘t be Ritter Sport if it didn‘t also take care of the health of its employees. Furthermore, the Waldenbuch company offers its employees seminars on health topics and sports courses. The comprehensive commitment is also considered exemplary elsewhere: in 2009 St. Gallen University awarded Ritter Sport the 1st prize in the ‘family orientation and demographics’ category. This renowned ‘top job seal’ makes Ritter Sport one of the 100 best employers in the German SME (Small/Mid-Size) sector.

Ritter Sport does a lot to ensure that its employees can combine their

work and family life.

"Ritter Sport is a real family company."

Gabriele and Alexander Noack, mother and son, both employed by Ritter Sport

1312

Quality

From nuts to pleasureFor three generations Ritter Sport has stood for innovative ideas and the highest quality chocolate. On the one hand, this is down to the love the Ritter family and the employees have for the products. On the other it is the Swabian precision that is worked with in Waldenbuch.

Only the best ingredients make it into the bars and give each variety their unmistakable flavour. Whether whole hazelnuts, real fruit pieces or fine marzipan: Ritter Sport relies on valuable raw materials and applies the highest quality standards. Eleven different chocolate recipes

ensure that every variety tastes different. Furthermore, Ritter Sport makes two organic chocolate masses for the organic varieties that are made with ingredients from tried and tested ecological farms - as stipulated by the strict guidelines of the EU organic directive.

To ensure that the chocolate makes it to the customer with the highest quality, Ritter Sport uses modern sealed wrappers made from recyclable polypropylene. The colourful wrapper is not only visually pleasing, it guarantees optimum protection for the product. The material prevents

Hi-tech: state-of-the-art manufacturing processes guarantee the careful processing and freshness of the products.

Expertise: the experience and craftsmanship of the chocolate experts turn first class ingredients into a real taste experience.

foreign aromas, moisture or light from influencing the chocolate quality.

Fresh, fresher, Ritter Sport: almost every variety is produced several times a week, thus avoiding long storage times. The company can deliver the bars across Germany and the bordering countries within 24 to 48 hours. The quality of every individual bar is personally guaranteed by Alfred T. Ritter with his name.

"Quality is created with good raw

materials and recipes as well

as optimum manufacturing

processes."

Daniela Palm, employee

SGS INSTITUT FRESENIUS

Ritter Sport processes hand-selected whole hazelnuts by the tonne every year.

1514

Society

"I think the social involvement of my employer is a good thing. The fact that even I can decide which project is to be supported motivates me."

Johannes Schlegel, Ritter Sport trainee

Good chocolate alone is not enoughBe it the special relationship with its employees, the above-average pay or the fostering of young artists - Ritter Sport is involved, because this too is part of its corporate culture.

Supporting children is of particular impor-tance to the family company. Alfred T. Ritter is one of the founding benefactors of ‘Child-ren for a better World e.V.‘, an aid organisa-tion which fosters social projects in Germany and around the world.

But often, all it takes is a look around your neighbourhood to recognise that there are institutions here, too, that need support. Helping these facilities and projects and contributing locally are the goals of ‘Ritter Sport helps‘. The chocolate manufacturer founded this initiative in 2011 in order to raise awareness of social questions amongst the trainees and students of Ritter Sport. " ‘Ritter Sport helps‘ gives our trainees the opportunity to broaden their horizons and to further sharpen their social awareness by actively helping in the institutions. Their commitment greatly impressed me," says Alfred T. Ritter.

Helping creates happiness: trainees decide which social institution from their neighbourhood to support with money and energy.

Children: as a family company, Ritter Sport supports underprivileged children and charitable institutions in their direct neighbourhood.

The Swabian chocolate manufacturer makes regular contributions to the needy in Baden-Württemberg with food donations to the ‘Landesverband der Tafeln‘. In addition, Ritter Sport fosters charitable and social institutions in its local surroundings. Alfred T. Ritter states his reasons for this involvement: "Even though our standard of living is very high here in Germany compared to other countries, financial means are often lacking here in our region as well. Active help is required and we are aware of our social responsibility."

Involvement even outside the company is part of the corporate

philosophy at Ritter Sport.

1716

"I would never have guessed how many ways a square could be designed. It is really interesting."

Gerhard Schupp, pensioner and museum visitor

Art in a squareInvolvement in art and culture plays an important role for the Ritter family. That much becomes clear at first sight of the Ritter Sport production facilities in Waldenbuch: located directly next to the chocolate factory is the Museum Ritter, constructed in 2005 on a 44 by 44 metre area according to the design of the Berlin architect Max Dudler. The Ritters are not only true to themselves regarding the shape: solar energy, groundwater cooling and ground-heating completely provide the building with environmentally friendly energy. The museum exhibits 700 square metres of modern, geometrically abstract art from the collection of Marli Hoppe-Ritter. Making

young people aware of art is particularly close to the co-owner of Ritter Sport‘s heart. That‘s why creative workshops and various events in which children of almost all ages can experience and get to know art are an inherent part of the museum programme. Admission to the museum is free for children and young people up to the age of 18.

The fact that the square plays the central role in the museum goes without saying. All the exhibits allude to this, and around 40,000 visitors come to Waldenbuch every year to see the works on the topic ‘The square in art‘. In other wings of the building,

Beloved art: a look at the exhibit ‚Timm Ulrichs —Blick zurück nach vorn (look back into the future)‘, 2010, ©Museum Ritter.

Square collection: 800 paintings, objects, sculptures and graphical drawings are on display in the Museum Ritter. Here: Imi Knoebel, Revolver III, 2003, ©VG Bild-Kunst, Bonn 2011.

Culture

enthusiasts will find the chocolate exhibit, the chocolate workshop for children and young people as well as the chocolate shop.

The love for art has a long tradition in the company: there has been culture and art sponsoring since the mid 90s and Ritter Sport fosters young creative talents. "Art has the ability to rouse our fantasy. That‘s why, as a company, we consider the fostering of young artists as an investment in the future", says Marli Hoppe-Ritter.

Around 40,000 visitors come to the Museum Ritter in Waldenbuch every year.

1918

Quality. Chocolate. Squared.There is nigh on no other brand promise that is so ubiquitous in the German language as that of Ritter Sport: Quadratisch. Praktisch. Gut. This is the slogan that has stood for the special quality and shape of the chocolate squares since 1970. It is more than just an advert, it describes the philosophy of the company: best ingredients combined with innovative ideas. In English, however, they use the phrase: Quality. Chocolate. Squared.

Clara Ritter invented the chocolate square in as early as 1932 because it was easier to fit into a coat pocket than conventional bars. The snap-open pack followed in

1976 — practical for anyone who doesn‘t want to spend forever unwrapping, but wants quick enjoyment. Today the shape and snap, along with the taste, are the greatest unique selling points of the bars.

Bright red for marzipan or sky blue for alpine milk: not only the colours of the packaging ensure that everyone can immediately recognise their favourite variety - the colourful squares also stand for unadulterated joie de vivre. This, too, is an inherent part of the company philosophy, because at Ritter Sport sustainability and enjoyment are not contradictory terms. The bright colours of the

packaging have even reached cult status. You can taste, smell and even make it yourself at the Ritter Sport headquarters in Waldenbuch and at the ‘Colorful Chocoworld‘ in Berlin. This chocolate experience was opened on the Gendarmenmarkt in 2010 and has since then become the sweetest attraction in the capital. Six different subject areas invite visitors big and small to experience chocolate in a whole new dimension. Also, the mobile chocolate workshop has been touring across Germany since 2006. Children can create their very own favourite chocolate at over 50 locations year round and free of charge.

Brand name

24 colours - 24 varieties. The Ritter Sport range offers

something for every taste.

"Praline is my favourite variety because no

other chocolate tastes so creamy

and nutty."

Maria Heinze, Ritter Sport

lover

The colourful Chocoworld in Berlin: Ritter Sport fans can create and produce their very own variety in the capital.

Quality. Chocolate. Squared. 99 per cent of Germans know Ritter Sport.

2120

Company information

Publisher

Alfred Ritter GmbH & Co. KGPublic RelationsTel.: +49-7157-97 0Fax: +49-7157-9739 9E-mail: presse@ritter-sport.de www.ritter-sport.de

22

October 2011