Corporate Social Responsibility Policy

INTRODUCTION

BACARDI LIMITED IS COMMITTED TO THE RESPONSIBLE AND SAFE CONSUMPTION OF OUR BRANDS BY LEGAL DRINKING AGE CONSUMERS. WE ARE EXTREMELY PROUD OF OUR PORTFOLIO AND ARE COMMITTED TO LONG-TERM BRAND BUILDING. MOST CONSUMERS USE AND ENJOY OUR PRODUCTS RESPONSIBLY.

ENCOURAGING RESPONSIBLE DECISION MAKING REGARDING DRINKING IS A STRONG BUSINESS MODEL FOR US WHEN PROMOTING OUR PREMIUM QUALITY BRANDS. IN FACT, WE DISCOURAGE ABUSIVE CONSUMPTION OF OUR BRANDS AND URGE CONSUMERS WHO CHOOSE TO DRINK TO DO SO RESPONSIBLY.

AS A RESPONSIBLE PRODUCER AND MARKETER OF ALCOHOLIC BEVERAGES TO LDA CONSUMERS, WE WILL MAKE EVERY EFFORT TO ENSURE OUR ACTIVITY DOES NOT APPEAL TO CONSUMERS UNDER THE LEGAL AGE FOR PURCHASING ALCOHOL.

AS A GLOBAL PLAYER IN ALCOHOL BEVERAGES, WE EXPECT TO TAKE A LEADERSHIP ROLE IN MARKETING OUR BRANDS IN A MANNER IN WHICH WE TAKE PRIDE AND WE WILL OBSERVE THE RELEVANT LAWS, REGULATIONS AND SELF-REGULATORY CODES IN BOTH THE LETTER AND THE SPIRIT.

BACARDI LIMITED IMPLEMENTED “SOCIAL RESPONSIBILITY: PRINCIPLES AND PROCEDURES FOR MARKETING” ON SEPTEMBER 1, 2004. EVERYBODY WHO IS INVOLVED IN THE PROCESS OF CREATING MARKETING MATERIAL AND ACTIVITY IS EXPECTED TO CONTRIBUTE TO THE BEST OF THEIR INDIVIDUAL AND COLLECTIVE ABILITY TO ENSURE THAT WE ARE COMPLYING WITH THESE PRINCIPLES AND PROCEDURES.

SOCIAL RESPONSIBILITY COMPLIANCE IS REQUIRED AS PART OF OUR SALES AND MARKETING ACTIVITIES WHETHER, FOR EXAMPLE, THIS INVOLVES ADVERTISING DEVELOPMENT, PROMOTIONAL ACTIVITY WITH OUR RETAIL CUSTOMERS, BRAND ADVOCACY DEVELOPMENT AS PART OF OUR ON-PREMISE EDUCATION PROGRAMS OR IN CONTACT WITH LEGAL DRINKING AGE CONSUMERS DIRECTLY THROUGH OUR EXPERIENTIAL MARKETING EVENTS.

OUR MISSION IS TO REINFORCE OUR VALUES AS A GLOBAL BUSINESS THROUGH OUR "GLOBAL PRINCIPLES".

THE BACARDI COMPANIES ARE EXTREMELY PROUD OF THEIR HIGH QUALITY BRANDS, PRODUCTS AND MARKETING. THAT SENSE OF PRIDE GOES HAND IN HAND WITH A DEEP SENSE OF RESPONSIBILITY AND RESPECT FOR THE GLOBAL COMMUNITIES THAT WE SERVE AND THE INDIVIDUAL CONSUMERS THAT ENJOY BACARDI PRODUCTS. AS PART OF THIS COMMITMENT TO SOCIAL RESPONSIBILITY, BACARDI LIMITED IS AFFIRMING ITS CORE PRINCIPLES FOR MARKETING PRACTICES BY ALL BACARDI COMPANIES AND EMPLOYEES."

THE PRINCIPLES ARE AS FOLLOWS:

PRINCIPLE 1
ALL BACARDI COMPANIES AND EMPLOYEES MUST COMPLY WITH THE LAWS, REGULATIONS AND SELF-REGULATORY CODES APPLICABLE TO THEIR MARKETING AND PROMOTIONAL PRACTICES.

PRINCIPLE 2
ALL MARKETING AND PROMOTIONAL PRACTICES WILL PRESENT THE RESPONSIBLE ENJOYMENT OF ALCOHOLIC BEVERAGES AND WILL NOT ENCOURAGE THE MISUSE OF ALCOHOL THROUGH THE PRESENTATION OF EXCESSIVE CONSUMPTION OR SITUATIONS WHERE IRRESPONSIBLE CONSUMPTION IS ACCEPTED.

PRINCIPLE 3
ALL BACARDI PRODUCTS WILL PROVIDE CLEAR INFORMATION ON ALCOHOL CONTENT. A MESSAGE OF RESPONSIBLE ENJOYMENT WILL BE INCLUDED ON ALL COMMERCIAL COMMUNICATIONS AS WELL AS ALL BACARDI PRODUCTS.

PRINCIPLE 4
THE CONTENT AND PLACEMENT OF ALL MARKETING AND PROMOTIONAL PRACTICES WILL BE DIRECTED TOWARDS CONSUMERS OF THE REQUIRED LEGAL AGE TO PURCHASE ALCOHOL BEVERAGES IN THE RELEVANT MARKETS, AND WILL AVOID ASSOCIATIONS WITH IMAGES AND MUSIC THAT WOULD PRIMARILY APPEAL TO UNDERAGE INDIVIDUALS.

PRINCIPLE 5
ALL MARKETING AND PROMOTIONAL PRACTICES WILL SUPPORT THE SAFE CONSUMPTION OF ALCOHOL BEVERAGES AND WILL NOT ASSOCIATE THE CONSUMPTION OF ALCOHOL BEVERAGES WITH ANY POTENTIALLY DANGEROUS ACTIVITY, SUCH AS DRIVING MOTORIZED VEHICLES, OPERATING MACHINERY OR PERFORMING HAZARDOUS ATHLETIC ACTIVITIES.

PRINCIPLE 6
CORPORATE COMMUNICATIONS MAY RECOGNISE REPUTABLE EVIDENCE OF THE PHYSICAL BENEFITS FROM MODERATE ALCOHOL CONSUMPTION, BUT MARKETING ACTIVITIES WILL NOT CLAIM MEDICINAL OR PERFORMANCE PROPERTIES FOR BACARDI PRODUCTS.

PRINCIPLE 7
MARKETING AND PROMOTIONAL PRACTICES WILL NOT BE ASSOCIATED WITH ANY INDIVIDUAL OR GROUP BEHAVIOUR THAT IS ANTI-SOCIAL, VIOLENT OR DESTRUCTIVE

PRINCIPLE 8
ALL MARKETING AND PROMOTIONAL PRACTICES MUST BE IN GOOD TASTE AND MUST NOT CONTAIN INDECENT, DEMEANING, OR INSULTING MATERIALS.

SELF-REGULATION AND RESPONSIBILITY CODES

AS GOOD CORPORATE CITIZENS, WE BELIEVE THAT WELL-CONSTRUCTED SELF-REGULATORY CODES CAN BE MORE EFFECTIVE AND CREDIBLE THAN GOVERNMENT REGULATION AND LEGISLATION. SELF-REGULATORY CODES ALLOW FOR SPEEDY RESOLUTION OF ISSUES WITHOUT COMPROMISING LEGITIMATE ADVERTISING AND PROMOTIONAL NEEDS.

OUR PARTICIPATION IN SUCH ORGANIZATIONS AS THE DISTILLED SPIRITS COUNCIL OF THE UNITED STATES (DISCUS) AND THE EUROPEAN SPIRITS ORGANIZATION (CEPS) IN EUROPE COMMITS US TO ADHERE TO INDUSTRY CODES ON THE RESPONSIBLE MARKETING AND PROMOTIION OF OUR PRODUCTS; TO PLACE MODERATION STATEMENTS ON OUR CONSUMER ADVERTISING; AND IN MANY MARKETS TO PLACE STATEMENTS ON OUR PRODUCTS TO REMIND CONSUMERS TO ENJOY OUR BRANDS RESPONSIBLY. OF COURSE, WE ARE STRONG SUPPORTERS OF IMPROVING THE SELF-REGULATORY PROCESS, WHENEVER POSSIBLE.

AS FOUNDING MEMBERS OF DISCUS, BACARDI USA HAS MADE SIGNIFICANT IMPROVEMENTS IN THE CODE OF RESPONSIBLE PRACTICES FOR BEVERAGE ALCOHOL ADVERTISING AND MARKETING WITHIN THE LAST FEW YEARS.

WE HAVE MADE THE CODE REVIEW PROCESS MORE TRANSPARENT, THROUGH THE ISSUANCE OF SEMI-ANNUAL REPORTS, INCREASED THE DEMOGRAPHIC REACH FOR MEDIA ADVERTISING TO A MINIMUM 70% OF THE AUDIENCE ABOVE THE LEGAL DRINKING AGE, INSTITUTED NEW GUIDELINES REGARDING DEMOGRAPHIC DATA AND ADVERTISING PLACEMENTS, AND FURTHER STRENGTHENED HOW WE ADVERTISE IN MAGAZINES AND ON BRANDED APPAREL, TO MAINTAIN OUR OBJECTIVE OF DIRECTING OUR ADVERTISING TO THOSE ABOVE THE LEGAL DRINKING AGE.

IN EUROPE, WE ARE REPRESENTED ON THE COUNCIL OF CEPS, AND ARE MEMBERS OF THE SCOTCH WHISKY ASSOCIATION, AS WELL AS THE GIN AND VODKA ASSOCIATION AND COMITÉ EUROPÉEN DES ENTREPRISES VINS. WE SUPPORT THE GUIDELINES ISSUED BY THESE ORGANIZATIONS THAT COVER ADVERTISING, PROMOTIONS, PUBLIC RELATIONS, AND SAMPLING PROGRAMS, AND GIVE SPECIFIC GUIDELINES ON AVOIDING APPEALING TO UNDERAGE CONSUMERS. WE ALSO SUPPORT THE COMMON STANDARDS (GUIDELINES) OF EFRD, THE EUROPEAN FORUM FOR RESPONSIBLE DRINKING.

WE ALSO SUPPORT NATIONAL CODES AS RELEVANT, SUCH AS IN THE UNITED KINGDOM, WE SUPPORT THE INDUSTRY-LAUNCHED SOCIAL RESPONSIBILITY STANDARDS FOR THE PRODUCTION AND SALE OF ALCOHOLIC DRINKS.

SOCIAL ASPECT ORGANIZATIONS

IN ORDER TO DEVELOP EFFECTIVE SOCIAL RESPONSIBILITY INITIATIVES, BACARDI LIMITED'S SUBSIDIARIES PARTICIPATE IN A NUMBER OF SOCIAL ASPECT ORGANIZATIONS THROUGHOUT THE WORLD. IN EUROPE, A NEW ORGANIZATION CALLED THE EUROPEAN FORUM FOR RESPONSIBLE DRINKING HAS RECENTLY BEEN FORMED AND IS DEDICATED TO PROMOTING RESPONSIBLE DRINKING THROUGHOUT THE EUROPEAN UNION.

THROUGHOUT EUROPE, WE ARE MEMBERS OF THE FOLLOWING ORGANIZATIONS.

FOR FURTHER INFORMATION PLEASE VISIT WWW.EFRD.ORG

IN THE UNITED STATES, WE ARE MEMBERS OF THE FOUNDATION FOR ADVANCING ALCOHOL RESPONSIBILITY, CO-FOUNDED BY BACARDI U.S.A. IN 1991, AND DEDICATED TO FIGHTING UNDERAGE DRINKING AND DRUNK DRIVING. IN THAILAND, WE ARE MEMBERS OF REACT, A SOCIAL ASPECT ORGANIZATION DEDICATED TO PROMOTING RESPONSIBLE CONSUMPTION OF OUR PRODUCTS.

IN MEXICO, FUNDACIÓN DE INVESTIGACIONES SOCIALES A.C. (FISAC) HAS PROGRAMS DEDICATED TO FIGHTING UNDERAGE DRINKING AND DRUNK DRIVING.

RETAILER PROGRAMS

IN THE UNITED STATES, THE FOUNDATION RECENTLY CREATED THE 65% CAMPAIGN TO ENCOURAGE PARENTS TO PLAY A MORE ACTIVE ROLE IN KEEPING ALCOHOL OUT OF THE HANDS OF TEENS. THIS CAMPAIGN IS BASED ON RECENT FINDINGS THAT 65% OF YOUTH OBTAIN THE ALCOHOL THEY DRINK FROM THEIR FAMILY AND FRIENDS. SINCE THE FOUNDATION’S INCEPTION, MORE THAN TEN MILLION POSTERS, DECALS, BUTTONS AND EMPLOYEE INFORMATION BROCHURES HAVE BEEN DISTRIBUTED FREE OF CHARGE TO RETAILERS AND WHOLESALERS NATIONWIDE.

BACARDI ALSO TEAMED UP WITH THE FOUNDATION TO PRODUCE A HELPFUL TIP CARD THAT WAS DISTRIBUTED AT LAST YEAR’S ORANGE BOWL FOOTBALL CLASSIC.

IN THE UNITED KINGDOM, RETAILERS LAUNCHED THE CHALLENGE 21 PROGRAM TO REDUCE THE AVAILABILITY OF ALCOHOL FOR PURCHASE BY UNDERAGE DRINKERS. BACARDI WORKED WITH LOCAL POLICE AND THE CITY COUNCIL LICENSING UNIT TO LAUNCH THE BEST BAR NONE AWARDS IN SOUTHAMPTON, AN ACCREDITATION PROGRAM FOR PUBS, CLUBS AND BARS. WE ALSO SPONSORED A LATE-NIGHT FREE BUS SERVICE ACROSS THE CHRISTMAS PERIOD IN SOUTHAMPTON AS PART OF A CITY CENTRE TRANSPORT INITIATIVE.

EDUCATION

IN THE UNITED STATES, WE SUPPORT EDUCATION THROUGH OUR PARTNERSHIP WITH THE FOUNDATION FOR ADVANCING ALCOHOL RESPONSIBILITY, A NOT-FOR-PROFIT ORGANIZATION DEDICATED TO FIGHTING DRUNK DRIVING AND UNDERAGE DRINKING. HAS DEVELOPED TWO NEW PROGRAMS IN THE PAST YEAR. ASK, LISTEN, LEARN: KIDS AND ALCOHOL DON’T MIX WAS DEVELOPED IN PARTNERSHIP WITH NICKELODEON AND IS A NEW CREATIVE, MULTIMEDIA PROGRAM FOR MIDDLE SCHOOL STUDENTS. DESIGNED BY A TEAM OF SPECIALIST EDUCATORS AND PSYCHOLOGISTS, THE INTERACTIVE PROGRAM HELPS PARENTS HAVE EFFECTIVE CONVERSATIONS ABOUT ALCOHOL WITH THEIR CHILDREN, USING ACCESSIBLE RESOURCES THAT INCLUDE DISCUSSION BOOKLETS, PUBLIC SERVICE ANNOUNCEMENTS, AND AN INTERACTIVE WEBSITE. ASK, LISTEN, LEARN CONTINUES THE FOUNDATION’S LONG-STANDING COMMITMENT TO AMERICAN YOUTH FOLLOWING READY OR NOT®: TALKING WITH KIDS ABOUT ALCOHOL IN ITS ENGLISH, SPANISH AND NATIVE AMERICAN VERSIONS. FOR MORE INFORMATION PLEASE VISIT WWW.RESPONSIBILITY.ORG.

SINCE UNDERAGE DRINKING BY GIRLS HAS NOT REDUCED AS MUCH AS IT HAS BY BOYS, THE FOUNDATION DESIGNED GIRL TALK: CHOICES AND CONSEQUENCES OF UNDERAGE DRINKING FOR MOTHERS AND THEIR TEENAGE DAUGHTERS. DESIGNED TO ADDRESS THE COMMUNICATION GAP, GIRL TALK FEATURES A BROCHURE FOR MOTHERS AND A WEBSITE, WWW.GIRLSANDDRINKING.ORG, DESIGNED TO EDUCATE MOTHERS ABOUT THE IMPORTANT ROLE THEY PLAY IN THEIR DAUGHTER’S DECISION TO DRINK – OR NOT TO DRINK ALCOHOL. GIRL TALK HAS BEEN FEATURED ON NBC’S “TODAY SHOW” AND CNN’S “THIS AMERICAN MORNING,” AS WELL AS IN COUNTLESS NEWSPAPERS ACROSS THE COUNTRY. IN ITALY, WE HAVE UNDERTAKEN AN INNOVATIVE COLLABORATION WITH THE VATICAN, TO PROMOTE MESSAGES OF DRINKING IN MODERATION THROUGH THEIR LITERATURE, WHICH HAS BEEN MADE AVAILABLE TO 1,300 SCHOOLS.

IN THE UNITED KINGDOM, OUR ADVERTISING AND PACKAGING REFERS USERS TO THE DRINKAWARE WEBSITE, WHICH PROVIDES GUIDELINES ON DAILY CONSUMPTION AND ON HOW TO ENJOY AND RESPECT ALCOHOL AS PART OF CONSUMER LIFESTYLES.

IN MEXICO, WE SUPPORT THE TIPPS PROGRAM OF INTERACTIVE WORKSHOPS TO PROMOTE AN OVERALL CULTURE OF RESPONSIBILITY AND MODERATION WITH RESPECT TO ALCOHOL CONSUMPTION. OUR SUBSIDIARY IN MEXICO HAS ALSO DEVELOPED A WEB PAGE TO PROVIDE INFORMATION AND REFERENCE TO THE LATEST NEWS REGARDING ALCOHOL-RELATED ISSUES.

CHAMPIONS DRINK RESPONSIBLY

OUR FLAGSHIP SOCIAL RESPONSIBILITY CAMPAIGN “CHAMPIONS DRINK RESPONSIBLY” SPREADS THE MESSAGE OF RESPONSIBLE DRINKING TO LEGAL DRINKING AGE ADULTS THROUGHOUT THE WORLD THROUGH DIGITAL AND TRADITIONAL MEDIA AND EVENTS. THIS CAMPAIGN BUILDS UPON CORPORATE AND SOCIAL RESPONSIBILITY INTIATIVES AND HERITAGE OF THE COMPANY SINCE ITS FOUNDING IN SANTIAGO DE CUBA IN 1862.

IN MARCH 2011, RAFAEL NADAL, WINNER OF 10 GRAND SLAM TITLES, WAS INTRODUCED AS THE NEW BACARDI LIMITED GLOBAL SOCIAL RESPONSIBILITY AMBASSADOR. THE NEW “CHAMPIONS DRINK RESPONSIBLY” GLOBAL ADVERTISING CAMPAIGN, SHOT BY INTERNATIONALLY ACCLAIMED PHOTOGRAPHER NADAV KANDER, FEATURES NADAL EDUCATING CONSUMERS ABOUT RESPONSIBLE DRINKING. IN THE LEAD VISUAL, NADAL HOLDS HIS RACQUET OVER A COCKTAIL GLASS ACCOMPANIED BY THE MESSAGE, “I’D ALWAYS TELL MY FRIENDS WHERE THE LINE IS.”

IN JANUARY 2008, MICHAEL SCHUMACHER, SEVEN-TIME FORMULA 1™ WORLD CHAMPION WAS UNVEILED AS THE FIRST BACARDI LIMITED GLOBAL SOCIAL RESPONSIBILITY AMBASSADOR. AN ADVERTISING AND PR CAMPAIGN FEATURING MICHAEL SCHUMACHER, PROMOTING THE CAMPAIGN THEME, ‘CHAMPIONS DRINK RESPONSIBLY ‘ WAS LAUNCHED IN APRIL 2008 IN BRUSSELS. THE CAMPAIGN THEME SUPPORTED A SIMPLE MESSAGE - DRINKING AND DRIVING DON’T MIX. DURING THE LAUNCH EVENT BACARDI LIMITED ALSO SIGNED THE EU COMMISSION ROAD SAFETY CHARTER. OVER THE NEXT YEAR, THE CAMPAIGN RAN IN OVER 50 COUNTRIES.

CHAMPIONS DRINK RESPONSIBLY CONTINUES TO ENGAGE CONSUMERS THROUGH A VARIETY OF TRADITIONAL MEDIA, PUBLIC RELATIONS AND DIGITAL CHANNELS INCLUDING A YOUTUBE® CHANNEL www.youtube.com/user/bacardiltdchampions AND, FOR THE FIRST TIME, A “CHAMPIONS DRINK RESPONSIBLY” FACEBOOK® PAGE TO INFORM AND ENGAGE CONSUMERS ABOUT RESPONSIBLE DRINKING AND THEIR PERSONAL CHOICES, www.facebook.com/pages/Champions-Drink-Responsibly/113184628753105.

FOR FURTHER INFORMATION PLEASE VISIT WWW.CHAMPIONSDRINKRESPONSIBLY.COM. IN EUROPE, WE CREATED A SOCIAL RESPONSIBILITY CAMPAIGN TO RUN ALONGSIDE THE MARTINI SPONSORSHIP OF THE SCUDERIA FERRARI TEAM, WHICH WAS LAUNCHED FOR THE 2006 RACING SEASON. USING THE CENTRAL MESSAGE, “PLEASE BE RESPONSIBLE: DON’T DRINK AND DRIVE,” A MARKETING CAMPAIGN IS AVAILABLE FOR GRAND PRIX RACE DAYS AS PART OF OUR APPROACH URGING SPECTATORS TO LIVE FOR TODAY AND TOMORROW.

THROUGH OUR FRENCH SUBSIDIARY, WE HAVE PARTICIPATED IN PROGRAMS THROUGH ENTERPRISE AND PREVENTION TO REDUCE THE INCIDENCE OF ALCOHOL-RELATED ROAD ACCIDENTS AMONG YOUNG PEOPLE, AND TO ELIMINATE SALES OF BEVERAGE ALCOHOL TO MINORS.

IN GERMANY, WE HAVE INVESTED IN A DRIVER’S CORNER AS PART OF OUR ON-PREMISE PROMOTIONAL ACTIVITY, WHICH PROVIDES FREE SOFT DRINKS FOR DESIGNATED DRIVERS AT BACARDI EVENTS.

THE FOUNDATION FOR ADVANCING ALCOHOL RESPONSIBILITY HAS PLAYED A LEADERSHIP ROLE IN THE IDENTIFICATION OF THE HARDCORE DRUNK-DRIVER PROBLEM AND HAS DEVELOPED EFFECTIVE MEANS TO COMBAT IT. IN 1997, THE FOUNDATION LAUNCHED THE NATIONAL HARDCORE DRUNK DRIVING PROJECT, A SINGLE, COMPREHENSIVE RESOURCE TO ASSIST IN THE DEVELOPMENT OF PROGRAMS THAT ADVOCATE SWIFT IDENTIFICATION, CERTAIN PUNISHMENT AND EFFECTIVE TREATMENT TO REDUCE HARDCORE DRUNK DRIVING. IN JUNE 2004, THE FOUNDATION PRODUCED HARDCORE DRUNK DRIVING JUDICIAL GUIDE: A RESOURCE OUTLINING JUDICIAL CHALLENGES, EFFECTIVE STRATEGIES AND MODEL PROGRAMS. THE GUIDE IS A RESOURCE FOR JUDGES AND JUDICIAL EDUCATORS TO HELP THEM ADDRESS THE COMPLEXITIES IN THEIR COURTS OF REDUCING DRUNK DRIVING, IN TURN PROTECTING THE PUBLIC FROM THESE DANGEROUS OFFENDERS.

THERE ARE MANY OTHER EXAMPLES OF OUR SUPPORT TO COMBAT THE PROBLEMS ASSOCIATED WITH MISUSE OF OUR PRODUCTS, AND TO SHOW HOW OUR PRODUCTS SHOULD BE ENJOYED RESPONSIBLY. THESE INITIATIVES ARE OF THE KEENEST INTEREST TO US.

FOR FURTHER INFORMATION ON OUR COMPANY POLICIES PLEASE VISIT WWW.BACARDILIMITED.COM