Sustainable trends from private label assortment We help our customers make better choices by increasing the availability of seasonal produce – especially fruit and vegetables. We are happy to support local producers by offering customers the benefits of local agricultural products. We offer a wide range of dry, fresh, and frozen products, including dairy and meat products, spices and salads, ice cream, bread, basic food products and other products. All these products are available at an affordable price. We are also launching initiatives to develop our private labels and to offer healthier options in our stores and in the Convenience category (semi-prepared, ready-to-cook, ready-to-eat). At PENNY we cater to the needs of the whole family, including members who prefer alternatives to traditional milk or who have dietary restrictions such as gluten intolerance. During the reporting period, we maintained a constant range of organic products and expanded our assortment with the introduction of a new range, Gluten & Lactose Free, now available in all stores in the country. Percentage of the net sales value* of "Bio" products in the net sales value of private brands (related to the categories of goods that also contain BIO items) 0.41% (0.26% declared in 2022) Percentage of the net sales value of "special diet" products in the net sales value of private brands (relative to the categories of merchandise that also contain "special diet" items) 0.23% (0.62%** declared in 2022) As for the fresh produce category, 32% of the private label fruits and vegetables sold in 2023 were organic. Our My BIO range is dedicated to those looking for products for balanced and healthy nutrition, offering natural foods, subject to rigorous control, without genetic modifications or pesticide residues. My BIO fresh products are certified organic in the EU and are ideal for preparing healthy meals. The assortment includes a variety of grain-based drinks, sweets, preserves, as well as essentials such as dairy, eggs, and honey. During the reporting period, the My BIO range included 28 different products, thus providing customers with a wide selection to meet their dietary preferences and requirements. The brand promise remains the same: z Organic products for a healthy lifestyle z Romanian production for the categories: dairy, eggs, honey z Recommended for daily consumption z EU Organic Certification The turnover of the trade specializing in organic products remained below 1% in 2023 as well. We believe that for the time being, the frugal and price-sensitive behavior of consumers regarding organic food is mainly due to inflation and rising costs. Although nutrition is an essential part of our lives, we have still noticed a certain reluctance to purchase certified organic products. In 2023 we continued to market our vegan range "Food for Future", intended for a plantbased diet and which meets the needs of our customers who have adopted this type of diet. The products of this range have been marked with the "Vegan flower" symbol, through which we aim to offer customers delicious alternatives, in different flavors. The soybeans used came from European agriculture, and the entire range offered a variety of products as a substitute for cheese, in the form of slices based on coconut oil, lasagna, pizza and vegetable nuggets. Lovers of vegan desserts could choose from a variety of ice creams with various flavors. The completely plant-based range of the PENNY brand includes a wide selection of products from several categories, so that consumers do not feel the absence of ingredients of animal origin. We have an influence to fulfill our social responsibility in terms of a balanced food offer. We pay special attention to the ingredients used in private labels. We strictly monitor the amounts of food additives and nutrients such as salt, sugar and fats that are included in these products to ensure that they fall within accepted and approved levels. In addition, we ensure that the labels of our private products provide clear and direct information about health, nutrition, and portion sizes to promote healthy eating habits while complying with all relevant European Union regulations. * without VAT ** For the calculation of the percentage for 2023, the vegan assortment was also considered, but in 2022 this assortment was not considered in the calculation methodology SUSTAINABILITY REPORT PENNY ROMANIA 2023 138/256 MESSAGE FROM THE GENERAL DIRECTORS SUSTAINABILITY STRATEGY AND GOVERNANCE ABOUT US AND OUR VALUE CHAIN ABOUT THE REPORT THE FUTURE IS MADE TODAY SUSTAINABILITY MILESTONES CONTENTS
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