Society

Given that we are one of the largest groups in Southeast Europe and the key sectors of our operations are the retail sector, the beverage production sector, the edible oil
production sector as well as the fresh and processed meat production sector, we pay particular attention to taking into account the various needs of our key stakeholders – from consumers/customers, through suppliers and the local communities in which we operate to our employees.

Communication with consumers

In order to provide for a comprehensive insight into all activities that may have significant effects on the environment, the society and the economy, it is necessary to describe all phases of the

value chain – from the procurement of raw materials, through production and distribution, to the use and disposal of products. In accordance with that, Fortenova Group carried out the process of stakeholder and value chain mapping.

The process of mapping Fortenova Group’s stakeholders included the following groups:

Internal stakeholders, e.g. the Board of Directors, Executive Directors, workers’ councils, employees and so on;
Resource suppliers, e.g. suppliers of water, energy, raw materials and so on;
Service providers, e.g. providers of marketing, advertising, IT and other services;
Stakeholders related to human resources, such as potential employees, educational and professional institutions and so on;
Investors and providers of financial services, e.g. potential investors, stakeholders, banks, insurance companies and so on;
Regional and local governments, such as cities, municipalities and so on;
State institutions, regulatory authorities and public bodies, e.g. competent ministries, sector-related agencies and so on;
Consumers, such as B2B customers, retail and wholesale customers;
Independent experts and professional associations, e.g. business consultants, chambers of commerce and so on;
Academia, for example universities, research institutions and scientific centres;
Non-governmental organisations, such as environmental organisations, media, local communities and so on.

Based on the implemented mapping process, at Fortenova Group level approximately 2100 stakeholders were identified

The Fortenova Group stakeholder survey process was carried out with a view to assessing the impacts of the Group’s business activities and value chain on key internal and external stakeholders and identifying areas where stakeholders believe that the Group has a significant positive or negative impact on the environment and the society. The questionnaire was sent to all stakeholders identified in the stakeholder mapping process, and additionally to all Fortenova Group employees.

The final list of material topics was established by aligning the results of impacts and risks and opportunities assessment. The topics that proved to be material for Fortenova Group and that will be reported pursuant to CSRD regulations are as follows:

Our approach

Our employees are the foundation of our success and our strength. We strive to provide them with a safe and stimulating work environment and the opportunity to achieve professional goals. The number of employees in Fortenova Group in 2024 was 45,117 employees.

In addition, the Fortenova Group has identified ten other groups of key stakeholders, and our approach differs in terms of the characteristics of each group.

We are continuously developing initiatives which serve our commitment to provide an inclusive work environment and support the work-life balance – which we believe helped us to retain a talented workforce and create a competitive advantage.

To live up to our principles, our Group HR and HR departments in our operating companies are devoted to employee development through life-long learning. Thus, they actively plan and provide education and training for our employees to support their professional and personal growth and prepare them to take on more complex jobs in the organization. Also, our large companies have one or more employee training specialists actively cooperating with Group HR.

Consumers in the final consumption market are the most significant user category of Fortenova Group’s products and services. At Fortenova Group we take product quality and safety very seriously and put customers’ satisfaction, health, and wellbeing at the top of our priorities.

We firmly believe that the relationship with consumers needs to be based on mutual trust and respect, which we maintain by continuously assuring the highest level of product quality, safety controls and managing the relations with every consumer with due diligence and care, kindly, promptly, and comprehensively.

Recognizing that our business activities include all the segments of the supply chain – from producing and processing raw materials to supplying our retail network and providing consumers with our final product, the Group is firmly committed to ensuring that the final goods and services which reach the consumers are of the highest possible quality.

It is estimated that within its supply chain Fortenova Group cooperates with more than 22,000 suppliers – from small agricultural farms, through raw material, packaging and energy producers to suppliers of finished products that are distributed through the Group’s retail network, as well as suppliers of services and IT solutions.

We are also aware that our business progress is related to the welfare of the community in which we operate and consider investing in its development and in the improvement of the quality of life to be an integral part of our socially responsible operations. The activities in the community in which we operate are intended to drive the creation of a transparent and encouraging business environment. We also realize our relationship with the community by way of donations and sponsorships to support humanitarian activities, sports and cultural events, the preservation of cultural heritage, scientific and educational institutions as well as activities focusing on children and young people.

Our initiatives

Fortenova Group’s role as a food producer and retailer entails both promoting and strengthening the economies of local communities and attending to the consumers’ needs regarding healthier diet and fresh produce. With that in mind, our Retail and Wholesale Business Division works hard in supporting local producers and delivering the best local values to its consumers.

Support for local producers

The role of Fortenova Group as food producer and retailer also comprises the promotion and strengthening of the economies in local communities and the care of consumer needs when it comes to healthier nutrition and fresh products. With that in mind, the Retail and Wholesale Division exerts efforts to support the local producers and offer its consumers the best local values. Below are the shifts made in projects of cooperation with local suppliers in 2024.

Through its project “The best from Croatia” (“Najbolje iz Hrvatske”), in 2024 Konzum HR continued to expand the availability of products made by small local producers and family farms, additionally strengthening their presence on the market. The number of stores where customers can find this special assortment is 92. The success of the project is also reflected in the increase in turnover in that category of a significant 19 percent against the year before. At the end of 2024, the assortment included 339 different products from 59 producers. Although a slight drop in the number of SKU’s was recorded in comparison to 2023, it is a result of the strategic optimisation of the assortment and the improvement of business processes, intended to achieve even better quality and efficiency. Particular focus was placed in 2024 on the regional recognisability of products, so that through the lines the Best from Dalmatia, Istria and Slavonia, the special features and the authentic tastes of the respective Croatian regions were additionally highlighted.

Through its brand “We love local” (“Radi imamo domače“), Mercator SLO successfully connected local producers and processing companies in the country, with particular focus on the promotion of domestic products on the shelves of its stores. Over time it has become key in the diversification and growth of the local product offer and gained huge popularity among consumers and experts alike. The concept was first introduced in 2016 under the name “Local”, as one of Mercator’s unique sales propositions. Over the years, the brand “We love local” has not only driven the collaboration with local producers, but served as a strong support for Slovenian athletes and various local associations to rely upon. Today this brand counts an impressive 2,000 local products available in 459 stores across the country. Out of the total assortment, 96 products bear the designation of indigenous Slovenian products, while 130 articles belong to the co-branding segment. The second half of 2020 saw the launch of the co-brand “We love local” – private label, which started with 56 products and grew to 130 products by the end of 2024. In 2024 sales of the “We love local” brand accounted for 1.75 percent of total sales and the “We love local” private label accounted for a significant 28 percent of sales within that brand. Through this initiative Mercator SLO has positioned itself as the leading retail chain for almost 300 local suppliers.

In Serbia, the project “The tastes of my home region”, initiated by Mercator SRB in 2015, provides small producers with the opportunity to place their authentic products on the shelves of large retail chains. This project also promotes traditional domestic recipes and authentic products from Serbia, supporting the local production and cultural heritage.

By 2024, the assortment within that line comprised 201 products, and since 2021 it has borne the prestigious designation of Čuvarkuća (Houseleek; literal translation – house guard, note of the translator), assigned as part of the initiative “Created in Serbia” by the Serbian Chamber of Commerce. The Čuvarkuća designation is intended to support domestic producers and educate consumers on the importance of buying products of local origin which stand out with their high quality. It is exclusively assigned to products composed of not less than 80 percent of domestic resources, including raw materials, processing, labour and packaging.

In 2024, the share of products from this line in sales amounted to 2.6 percent of total retail value, and through this project Mercator SRB collaborated with 48 local suppliers. In late 2024, the company organised a contest inviting bids, to which 17 producers applied. At the time of reporting the contest was still ongoing and the results will be published in the next reporting period.

Society

Our approach

Our initiatives

Support for local producers

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