SLEEMAN’S ANNUAL REPORT ABOUT FIGHTING AGAINST FORCED LABOUR AND CHILD LABOUR IN SUPPLY CHAINS

(a) Sleeman’s structure, activities and supply chains

Sleeman Breweries is one of Canada's leading brewing companies, known for its diverse portfolio of beers and its rich history in the Canadian brewing industry.

History:

Sleeman Breweries was founded in 1834 by John H. Sleeman in Guelph, Ontario, Canada. The company has a long and storied history, including periods of growth, setbacks, and acquisitions. During Prohibition in Canada, Sleeman continued brewing beer, which led to legal challenges and the eventual shutdown of the brewery. In 1988, John W. Sleeman, a descendant of the founder, revived the family business by re-establishing the brewery. In 2006, Sleeman Breweries was acquired by Sapporo Breweries, a world-renowned Japanese brewing company. Sleeman continues to operate as a distinct entity within the Sapporo Group, maintaining its brand identity and autonomy in brewing operations.

Products & Ingredients:

Sleeman has built an incredible portfolio of beer brands in Canada; great Canadian brands such as Sleeman, Okanagan Spring, Unibroue, and Wild Rose, combined with world-class beers such as Sapporo, Old Milwaukee and Pabst Blue Ribbon.

Sleeman produces a wide range of alcoholic and non-alcoholic beverages ranging from beers to hard seltzers and premixed cocktails. Its line of beers includes lagers, ales, and specialty brews. Some of its popular brands include Sleeman Original Lager, Sleeman Honey Brown Lager, Sleeman Cream Ale, and Sleeman Clear 2.0 Premium Light Lager. It also offers seasonal and limited-edition releases, experimenting with various flavors and styles to cater to evolving consumer preferences.

Sleeman sources its ingredients and materials from various suppliers. This list includes packaging materials such as glass bottles and cans, and ingredients such as malted barley, and corn syrup. Ingredients are globally sourced across Canada, the United States, and Europe.

Operations:

Sleeman operates multiple breweries across Canada, including facilities in Guelph, Ontario; Vernon, British Columbia; Calgary, Alberta; and Chambly, Quebec. Additionally, Sleeman's distribution network spans across Canada, with its products available in various retail outlets, bars, restaurants, and through online channels.

Sleeman Breweries holds a significant place in Canada's brewing landscape, combining its rich heritage with innovation to offer a diverse range of high-quality beers to consumers across the country.

(b) Sleeman’s policies and its due diligence processes in relation to forced labour and child labour

Sleeman has adopted the following policies which can be found on the Sapporo Holdings website:

• Sapporo Group Basic Procurement Policy
  https://www.sapporoholdings.jp/en/sustainability/society/supplychain/policy/

• Sapporo Group Supplier Sustainability Procurement Guideline https://www.sapporoholdings.jp/en/sustainability/society/supplychain/policy/pdf/procure_guideline_2023_04.pdf

Sleeman is committed to upholding and respecting human rights. As part of Sapporo Group, Sleeman is building and implementing a human rights due diligence process based on the UN Guiding Principles on Business and Human Rights. It strives to promote the understanding of human rights principles throughout the entire supply chain by strengthening relationships with suppliers.

Further, the Sapporo Group Supplier Sustainability Procurement Guidelines was established to promote mutual understanding and cooperation from our suppliers outlining that:

• No work shall be performed against the will of individuals. In addition, children under the age of employment according to the laws and regulations of each country are not allowed to work
• It is important that Sleeman and its Main Vendors comply with all laws and regulations of each country and region.

(c) Parts of Sleeman’s business and supply chains that carry a risk of forced labour or child labour being used and the steps it has taken to assess and manage that risk

Sleeman views itself to be at low risk for supporting forced labour and child labour. As an organization, we have not undertaken a full mapping of our supply chain; however, based on the long-standing nature our relationships with many of our supplies as well as the straightforwardness of our supply chain, we assess the risk as relatively low.

Sleeman provides the above-noted policies to its “Main Vendors” on an annual basis to assess and manage risk in our supply chain. “Main Vendors” are expected to adhere to this policy and guidelines.

The term “Main Vendor” is defined as:

• Current supply agreement or contract exists between vendor and Sleeman
• Vendor supplies direct spend raw materials to Sleeman on an ongoing basis
• Vendor managed by Sleeman National Procurement

(d) Measures taken to remediate any forced labour or child labour

We are not aware of any forced labour or child labour in our supply chain, so no corrective measures have been taken in 2023. To the extent we become aware of something we will investigate and remediate on a case-by-case basis.

(e) Measures taken to remediate the loss of income to the most vulnerable families that results from any measure taken to eliminate the use of forced labour or child labour in its activities and supply chains;

Sleeman has not taken any corrective measures in 2023 since we are unaware of any forced labour or child labour in our supply chain.

(f) Whether any training has been provided to employees on forced labour and child labour

Sleeman provides some training on an annual basis to employees and training in onboarding new employees. At this time, we do not have a specific training cadence or policies addressing forced labour or child labour. Over the course of the coming years, we intend to provide relevant employees with training on this topic.

(g) How Sleeman assesses its effectiveness in ensuring that forced labour and child labour are not being used in its business and supply chains.

To our knowledge, our main vendors have not been cited for any forced labour or child labour violations. Thus, in 2023 we had no formal process to audit effectiveness.

This report has been approved by Sleeman Breweries’ board of directors.