Using Business As A Force For Good: Lavazza

10/09/2019

Project Scope: 2 months

Project Members: Jef Teerlinck, ZiYue Wu

Role: Industry Analysis, Preliminary Assessment Analysis, Feasibility Solution Strategy, Concept Video Editing

Tools: Bcorporation Analysis System, Illustrator, Premiere Pro, After Effect

In Collaboration With Lavazza S.P.A.

Overview

Business culture has shifted. Its role, nowadays, is to deliver value to all stakeholders. Moreover, society's most challenging problems cannot be solved by the government and nonprofits alone.

To support Lavazza S.P.A. in obtaining the B Corp Certification that verified social and environmental performance and redefines success in business and builds a more inclusive and sustainable economy.

Certified B Corporations are businesses that meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose, accelerating a global culture shift to redefine success in business and build a more inclusive and sustainable economy.

Challenge

Deep dive into the B Corp community and in-depth analysis of its B impact report. Envision the new, positive impact for Lavazza S.P.A. and help the company be able to generate not only for its workers and customers but also for the community and the environment at large.  

Design Process

1. Research and Analysis

- Understand the philosophy and approach of the B Corp community

- Research the criteria and areas of impact included in the B Impact Assessment

- Identify a Certified B Corp among those available on bcorporation.net/directory

- Analyze its B  Impact Report

2. Roadmap Definition

- Define in detail all the actions Lavazza should take to obtain the B Corp Certification

- Organize these actions in a roadmap

3. Impact Envisioning

-  Envision the new, positive impact Lavazza will be able to generate not only for its workers and customers but     also for the community and the environment at large

4. Feasibility Solutions

- Solution for 2 years

- Solution for 10 years

5. Outcome

- Key learning

Relevant Feedback

1. Research and Analysis

Carte Noire

- One of the subsidiaries of Lavazza S.P.A.

- French market leader in Bio coffee

- Coffee beans from certified organic production

- Increasing interest in bio & sustainable market

- Current products: capsules, soft pods, bio, milled, beans & instant



What do other B-Certified coffee companies contribute to Africa?




Ethiopia

Clean drinking water for 18.900 people

Quality training for 10.000 coffee farmers

DR Congo

Cubbing lab (training center) for 3.500 farmers

Kenya

Support for 2,600 coffee farmers



What do we learn from the preliminary assessment on bcorporation.net/directory? 



Collect information

Suppliers: Evaluate all suppliers social and environmental impacts

Benchmark or do research about the internal environmental performance 

Compare information

Compare sustainability practices with other companies


2. Roadmap Definition

1-6 Months


Measure Impact

Start measuring necessary information in order to compare with competitors and improve.

Promote

Start promoting the bio-range of products more intensively.

Assist 

Deploy consulting groups for suppliers so they can assist them in a more direct and personal way.

2-5 Years


Capsule

Announce a new biodegradable capsule from sustainable materials to keep the focus on single-serve coffee.

Certification

Help suppliers in achieving the necessary certifications for fair-trade, sustainability, and environment.

Bio

At the end of 2024, all products sold by Carte Noire will be certified as AB, UTZ, and B Lab


10 Years


New Capsule

Design a new type of capsule that dissolves completely during the coffee-making process.


CSR Program

Donate 2% of revenue(5M) to alleviate the poverty in coffee export countries 


3. Impact Envisioning


Consumer concept in France in 2 years

- Single-serve coffee consumption increases 7% each year

- 67% of coffee consumption are capsules

90% of coffee consumption happens at home

- 87% of respondents have a coffee machine in their household



People issues in 2 years


17 million people that used coffee capsules made by plastic and aluminium in 2018.

Capsules issues in 2 years


Capsules from France were recycled because coffee manufacturers could only recycle the capsules they received. 

Recycle issues in 2 years


The minimum time 50 days scale to recycle aluminum. Recycled aluminum can't be used for coffee capsules. 


Current recycling in 2 years


4. Feasibility Solutions


2 years solution

- 100% compostable

- Substitutes the current bio capsules

- Fits the standard of Nespresso & Nèscafe

- Keeps the single-serve market at peak for further innovation


10 years solution - New Capsule

- Compressed coffee of nanocellulose materials

Made from agricultural waste

- 100% biodegradable

- 27% reduction of CO2-emission

40% lighter than bagasse paper

10 years solution - Sustainable Packaging

- Nanocellulose outside wrapping

- Box made from sugarcane paper

- Vegetable ink

No need to compress the coffee

- Clear certification labels

- Slide-able box for easy access

5. Outcome

Key Learning

To understand how we help the company obtain B certification through our new business strategy and innovative product. To analysis the social and environment of the company by finishing the preliminary assessment on the B-Corporation website.

Relevant Feedback

We have a chance to get in contact with a representative of Nativa which is the first certified B Corporation in Italy. They appreciated our business strategy for future industry development. At meanwhile, they would like to suggest we go deeper into our strategy and also try to provide a feasible solution for Lavazza Group in the real-world. 
© 2020 Hui-Shan Chen. All Rights Reserved.
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