fmi final beverage cat man webinar[1]
TRANSCRIPT
Sustainable Sourcing for BEVERAGE Category Managers:
Using the FMI Guide
Five Winds International &
Ecos USConference Number(s): 1-877-782-5094
Participant Code: 200436
January 26, 2011
• United Soybean Board
• FMI Sustainability Executive Committee and Council– Specifically those that helped to launch the development of the
guide: Suzanne Forbes (Wakefern), Harriet Hentges (Ahold USA), Tom McIntyre (SUPERVALU), Karen Meleta (Wakefern), Tracy Taylor (Ahold USA) and Jeanne von Zastrow (FMI)
• All those who participated in our Guide survey and submitted additional comments
Produced “by the industry for the industry”
Thank you to:
Acknowledgements
Background on Guide & Presentation
• This presentation accompanies the document:
Sustainability on the Shelves
A Guide for Category Managers
• Please customize the Guide and these slides for your own use
Agenda
• Learning Objectives• What is Sustainability?• Sustainable Sourcing• Decision Framework for Beverage• Take-Home Messages• Questions
Learning Objectives
1. Provide good working understanding of sustainability in the food retail sector
2. Identify key sustainability issues specific to each product category
3. Possess questions and tools to help understand and verify sustainability claims, recognize “greenwashing”, and select more sustainable products
What is Sustainability?
Sustainability
“Business practices and strategies that promote the long term well-being of the environment, society, and the bottom line” - FMI
Sustainability in Your Company
Poll: Who is in charge of sustainability in your company?
a. Corporate Sustainability Director
b. Senior Executive designated to manage sustainability
c. Sustainability Team
d. Other
e. No one
7
What is Sustainable Sourcing?
8
SUSTAINABLE ATTRIBUTES
Quality
Availability Price Service
Sustainable Sourcing
I take my decision-making elements of price, service, quality and availability and simply add our sustainability priorities as
a fifth. Not all elements carry equal weight at all times but they are my top priorities
when choosing what to buy. - Tracy Taylor, Ahold USA
Sustainability is a Strategic Business Issue
300% Growth of U.S. sales of “ethical” cleaning products in 2009. Packaged Research
$73M Additional profit generated by Marks and Spencer’s Plan A sustainability
strategy in 2009. M&S 2010 Progress Report
Consumers are looking for “green”
Source: 2009 GMA/Deloitte Green Shopper Study
Stepwise approach to buying more sustainable products
Step 1: Know Your Priorities
What are your company’s priorities?
Sustainable sourcing strategyCompany sustainability priorities
Product priorities
• Poll: What sustainability issues are your customers asking about? (select all that apply)
a) Packaging
b) Sustainable seafood
c) Organic
d) Local
e) Toxic/natural ingredients
f) Other
Step 1: What are your customers’ priorities?
What is a Sustainable Product?
14
eco-labelled
less packaging
fair trade
less toxics
use less resources durable
organic
recycled content
packaging
BPA-free
How do these terms relate to sustainability?
recyclablelocal
What are the Sustainability Issues for Beverage?
Carbon Footprint
Sources: US EPA Greenhouse Gas Equivalencies Calculator and http://www.walkerscarbonfootprint.co.uk/walkers_carbon_footprint.html and http://openthefuture.com/cheeseburger_CF.html
See Guide, page 22
A carbon footprint includes all greenhouse gases emitted by a product’s production, transportation, consumption, and end of life.
Final carbon footprint calculation for a standard bag of Walkers Crisps is 80g CO2 which compares to 243g CO2 for an average cheeseburger
Water Footprint
53 gallons!
Source: http://www.huffingtonpost.com/2009/02/13/1-latte-53-gallons-of-wat_n_166759.html
See Guide, page 22
Waste Footprint
Every year, the US generates around 14 million tons of food waste, equivalent to 106 pounds of food waste per person
Source: http://www.epa.gov/reg3wcmd/solidwasterecyclingfacts.htm
See Guide, page 23
Packaging
Source: http://www.cleanair.org/Waste/wasteFacts.html
Almost 1/3 of the waste generated in the U.S. is packaging
See Guide, page 24
Organic, Local, and Bioengineering
Consumer demand? Sustainability science?
Source: http://pubs.acs.org/doi/abs/10.1021/es702969f
See Guide, page 25
Processing, Recycling, and Disposal are Hot Spots for Beverage
518 liters of freshwater are required to produce just 1 liter of Minute Maid orange juice
Processing, Recycling, and Disposal are Hot Spots for Beverage
35 liters of freshwater are needed to produce a half liter of Coca-Cola
Enormous freshwater needs during processing…
Source: http://www.nytimes.com/2010/11/29/business/energy-environment/29iht-RBOGFOOT.html
Processing, Recycling, and Disposal are Hot Spots for Beverage
Nearly 8 out of every 10 bottles will end up in a landfill
Source: http://earth911.com/recycling/plastic/plastic-bottles/facts-about-plastic-bottles/
Recycling 1 plastic bottle can conserve enough energy
to power a light bulb for 6 hours.
Large environmental impact during recycling and disposal…
Step 2: Communicate Needs to Suppliers
I am interested in sourcing products that address:
• The sustainability attributes of my product category
• My company’s sustainability priorities
Step 3: Acquire Information
Poll: How do you typically get information about sustainability from your suppliers?
a) Written marketing material
b) Sales presentations
c) Supplier website
d) Informal one-on-one meetings
e) I have to inquire
f) I don’t receive information
Step 3: Acquire Information
• You’ve started the conversation, now begin to acquire information on company and product sustainability
• See page 21 of Guide for General Questions to ask your suppliers
http://www.greenbiz.com/news/2010/03/11/how-to-embed-sustainability-into-company-dna#ixzz10qIvI7SA
"A lot of companies publish how green their building is, but it doesn't matter if you're shipping millions of power-hungry products with toxic chemicals in them," …."It's like asking a
cigarette company how green their office is.”Apple CEO Steve Jobs
Source: Businessweek 2010
Step 4: Evaluate Information
• If you have information gaps, circle back to “Acquire information”
• Do you have a process to manage information?
• Possible starting points:– Review and compare to information in
Guide & “For More Information” links– Compare information with your
company priorities identified in Step 1– Talk to your sustainability team– Talk to other category managers
Types of information you may receive:
Evaluate Information
SOURCES: World Resources Institute, Big Room Inc. | Bonnie Berkiwitz and Laura Stanton/The Washington Post - May 3, 2010
Learn more about the eco-labels for your category
Eco-Labels: One tool in your toolkit
(Used with Permission)
1. Sin of the Hidden Trade-Off
2. Sin of No Proof
3. Sin of Vagueness
4. Sin of Irrelevance
5. Sin of Fibbing
6. Sin of the Lesser of Two Evils
7. Sin of Worshiping False Labels
For more information, see Guide pages 27-28
Ask for substantiation on vague terms like:
• Eco-friendly• Sustainable• Green• Environmentally-friendly
Greenwashing
• Poll: If you think you’ve seen greenwashing, what about it made you question the claim?
a) No data/proof provided
b) Vague or undefined terms used
c) Claim seemed too good to be true
d) Hidden trade-offs may exist
e) Other
Make Purchasing Decision
• Evaluate sustainability as only one aspect in your purchasing decision
Quality Availability Price Service Sustainability attributes
Take-Home Messages
1. Know the key sustainability issues for your category and how they fit with your company’s approach
2. Be on the lookout for greenwashing - when you see vague claims (e.g., “green”), dig deeper! (see Guide pages 27-28)
3. Just get started! Start small and build up, using the Guide as a reference tool along the way
Further Questions?
Thank you
for your attention and participation today!
Coming soon via Survey Monkey
Did this webinar:
1. Provide you with a good working understanding of sustainability in the food retail sector?
2. Identify key sustainability issues specific to your product category?
3. Possess questions and tools to help understand and verify sustainability claims, recognize “greenwashing”, and select more sustainable products?
Contact Information
Libby BernickFive Winds [email protected](610) 640-2302 x102
Kats MaroneyEcos [email protected](610) 299-1949
Living Our Values
Five Winds is a Carbon Neutral Company
and follows a Sustainable Purchasing Policy