2024 annual report on Newrest’s commitment to cage-free eggs and the ECC

Cage-free eggs

As part of Newrest’s CSR approach, the Group committed in 2017 to purchase exclusively egg products from cage-free farmed hens by 2025. This subject always represents a major challenge due to the different levels of maturity of the production capacities of each region.

Newrest continues to work closely with The Humane League to identify, within the regions and countries, suppliers capable of satisfying its growing requirements and needs.

The results outlined below illustrate the opportunities and challenges related to this topic. They also reflect the progress of each area’s production capacities.

Between October 2023 and September 2024, 13% of egg products purchased came from hens raised outside cages, compared to 11% in the 2023 fiscal year.

As suggested by The Humane League and in order to ensure better continuity in the assessment of its performance, the Group relies on information from the Global Coalition for Animal Welfare (GCAW). The report published in December 2023 provides a better understanding of the cage-free egg production capacities of the countries in which Newrest operates. The colors in the table above reflect Newrest’s performance in purchasing cage-free eggs, in relation to the production capacity of these countries.

Reference document: Cage Free Eggs: A GCAW Global Landscape Review.

• Orange = % of Newrest’s purchases of cage-free egg products are lower than the area’s production capacities
• Yellow = % of Newrest’s purchases of cage-free egg products are slightly lower than the area’s production capacities
• Green = % of Newrest’s purchases of cage-free egg products are equal to or greater than the area’s production capacities

An in-depth analysis of the data collected by Newrest has made it possible to identify the countries where volumes of egg products purchased are substantial, thus directing its efforts towards countries likely to generate a significant impact.

Global price and supply pressures are currently rising, mainly due to several key factors:

• The avian flu has led to a significant reduction in the number of laying hens.
• Production units are inactive while they are being converted to alternative farming methods.
• Households are significantly increasing their purchases of egg products, being an accessible source of protein.
• The in-ovo sexing generates additional costs.

Newrest has achieved its objective of sourcing 100% of egg products from cage-free hens in a dozen countries. This success is based in particular on the research of the purchasing teams as well as on the development of local production capacities.

In Asia and Sub-Saharan Africa, a local approach is promoted, thus contributing to the evolution of the local market and the development of new players. However, some countries in these regions still face a partial or even total lack of reliable alternatives.

In Europe and North America, growth was slightly down or stagnant, partly due to cultural contexts slowing growth and new customers imposing certain products. Spain and Portugal, with significant purchasing volumes, require realistic and sustainable alternatives to be offered to the Group’s customers.

In France, the catering activity on board trains shows a rate of 100% of egg products from hens raised outside cages.
A capacity and cost study was carried out on the rest of the activities and showed an additional cost of 19% as of the 1^st of April 2025. This figure is subject to the high volatility of the market and is likely to be revised upwards in the coming weeks.

In South America, a future variation in growth is expected due to the acquisition of new businesses, diluting the figures currently collected. The focus will be on raising awareness among local teams to identify suppliers of cage-free egg products.

The uncertainty remains in some regions. In North Africa and the Middle East, current capabilities do not allow for a reliable and realistic roadmap. Newrest’s teams therefore remain on the lookout for market developments.

With the support of The Humane League, in-depth research is underway to map potential suppliers of cage-free egg products in countries where the Group purchases large volumes of egg products. This research will reflect the realities of each country and allow for the development of relevant regional roadmaps.

European Chicken Commitment

In 2019, Newrest joined the European Chicken Commitment, which aims to improve animal welfare by promoting chicken meat (fresh, frozen and processed) that complies with stricter breeding and slaughtering criteria than those of the European regulations in force. Despite increased awareness on this topic, Newrest’s purchasing teams continue to investigate with their suppliers to assess their ability to meet their needs.

Since 2023, a questionnaire has been sent to suppliers and distributors in the European countries where Newrest operates, in order to provide an overview about the availability of products and the level of compliance of each supplier with the six criteria mentioned by the European Chicken Commitment (ECC). Answers are obtained by product reference.

Cooperation with all players in the poultry industry and The Humane League association remains a priority for Newrest, in order to make intelligent progress towards realistic changes within its supply chain.