Fmi final beverage cat man webinar[1]
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  • Source: 2009 GMA/Deloitte Green Shopper Study “Finding the green in today’s shoppers”. Sample Size is 6,498 Shoppers Interviewed as they exited the store; Percent figures indicate portion of respondents who indicated that they a) would purchase a green product (q14) b) answered ‘Yes’ to knowing what a green product is (unaided q9) c) were looking for a green product (yes or no to seeing green products q10) d) saw green products (q10) and e) purchased a green product (aided) (q11). A sample questionnaire provided to shoppers is in Appendix A
  • Supervalu private organic brand – product priorities
  • There are many aspects of products to be considered in sustainability – one of many thingsAttributes of sustainable products include:Promotes the responsible use and conservation of land, fuels and electricity;Is certified to third-party standards or ecolabels for sustainability attributes;Reduces waste and makes efficient use of resources (energy and water especially);Was sourced, grown, or made using fair labor standards;Reduces polluting by-products or safety hazards during manufacture, use and disposal;Packaging or product can be recycled; andPackaging or product contains recycled materials.
  • Add person with question mark to bottom left of slide – use monochromeHow does cat man sort through these things?
  • Carbon footprintWater footprintWaste footprintPackagingCurrent agriculture trends (locally sourced, organic and use of biotechnology)
  • Carbon footprint – look a grocery product for footprint (walker’s crisps) and say equivalence in …What is it – product imageWhy important – cost of energyWhat should you ask your suppliers
  • Carbon footprintWater footprintWaste footprintPackagingCurrent agriculture trends (locally sourced, organic and use of biotechnology)
  • Carbon footprintWater footprintWaste footprintPackagingCurrent agriculture trends (locally sourced, organic and use of biotechnology)
  • Carbon footprintWater footprintWaste footprintPackagingCurrent agriculture trends (locally sourced, organic and use of biotechnology)
  • Carbon footprintWater footprintWaste footprintPackagingCurrent agriculture trends (locally sourced, organic and use of biotechnology)
  • Agricultural land occupies 50% of the Earth's habitable land (World Wildlife Fund)Globally, the agricultural sector consumes about 69% of the planet's fresh water-more than twice that of industry (23%) and dwarfing municipal uses (8%) (World Wildlife Fund)World food production will have to increase 70% to meet the needs of the 2.3 billion people that are expected to inhabit the planet and increasing demand of higher incomes. (FAO)
  • Picture of 2 ppl talking to each other – bubble with contentWhat you need to tell them, and then how you tell themTell your suppliers about your interest in sourcing products that address:the sustainability attributes of your product category andyour company’s sustainability prioritiesMode of communication: individual phone calls or emails, a webinar, or mass messages sent to all your suppliersDepends on how many suppliers you would like to contact
  • What makes a “good” ecolabel?Ecolabeling organization itself is credible, with appropriate management practicesMarket recognitionGood performance standardAddresses important sustainability hot spotsDeveloped in a transparent process with participation of all relevant stakeholdersPublically available
  • Mention FTC work in this area
  • Take guide, customize it, and make it your own

Fmi final beverage cat man webinar[1] Fmi final beverage cat man webinar[1] Presentation Transcript

  • Sustainable Sourcing for BEVERAGE Category Managers: Using the FMI Guide
    Five Winds International &
    Ecos US
    Conference Number(s):  1-877-782-5094 Participant Code: 200436
    January 26, 2011
  • Acknowledgements
    Produced “by the industry for the industry”
    Thank you to:
    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
  • 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
  • Learning Objectives
    Provide good working understanding of sustainability in the food retail sector
    Identify key sustainability issues specific to each product category
    Possess questions and tools to help understand and verify sustainability claims, recognize “greenwashing”, and select more sustainable products
  • What is 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?
    Corporate Sustainability Director
    Senior Executive designated to manage sustainability
    c. Sustainability Team
    d. Other
    e. No one
  • What is 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
    • Quality
    • Availability
    • Price
    • Service
    Sustainable Sourcing
  • Sustainability is a Strategic Business Issue
    Growth of U.S. sales of “ethical” cleaning products in 2009. Packaged Research
    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 strategy
    Company 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?
  • How do these terms relate to sustainability?
    less toxics
    less packaging
    recycled content packaging
    fair trade
    use less resources
  • What are the Sustainability Issues for Beverage?
  • Carbon Footprint
    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
    See Guide, page 22
    Sources: US EPA Greenhouse Gas Equivalencies Calculator and and
  • Water Footprint
    53 gallons!
    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
    See Guide, page 23
  • Packaging
    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?
    See Guide, page 25
  • Processing, Recycling, and Disposal are Hot Spots for Beverage
  • Processing, Recycling, and Disposal are HotSpots for Beverage
    Enormous freshwater needs during processing…
    518 liters of freshwater are required to produce just 1 liter of Minute Maid orange juice
    35 liters of freshwater are needed to produce a half liter of Coca-Cola
  • Processing, Recycling, and Disposal are HotSpots for Beverage
    Large environmental impact during recycling and disposal…
    Recycling 1 plastic bottle can conserve enough energy to power a light bulb for 6 hours.
    Nearly8out of every 10 bottles will end up in a landfill
  • 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?
    Written marketing material
    Sales presentations
    Supplier website
    Informal one-on-one meetings
    I have to inquire
    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 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 JobsSource: 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
  • Evaluate Information
    Types of information you may receive:
  • Eco-Labels: One tool in your toolkit
    Learn more about the eco-labels for your category
    SOURCES: World Resources Institute, Big Room Inc. | Bonnie Berkiwitz and Laura Stanton/The Washington Post - May 3, 2010
  • Ask for substantiation on vague terms like:
    • Eco-friendly
    • Sustainable
    • Green
    • Environmentally-friendly
    Sin of the Hidden Trade-Off
    Sin of No Proof
    Sin of Vagueness
    Sin of Irrelevance
    Sin of Fibbing
    Sin of the Lesser of Two Evils
    Sin of Worshiping False Labels
    For more information, see Guide pages 27-28
    (Used with Permission)
  • Greenwashing
    Poll: If you think you’ve seen greenwashing, what about it made you question the claim?
    No data/proof provided
    Vague or undefined terms used
    Claim seemed too good to be true
    Hidden trade-offs may exist
  • Make Purchasing Decision
    Evaluate sustainability as only one aspect in your purchasing decision
    • Quality
    • Availability
    • Price
    • Service
    • Sustainability attributes
  • Take-Home Messages
    Know the key sustainability issues for your category and how they fit with your company’s approach
    Be on the lookout for greenwashing - when you see vague claims (e.g., “green”), dig deeper! (see Guide pages 27-28)
    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:
    Provide you with a good working understanding of sustainability in the food retail sector?
    Identify key sustainability issues specific to your product category?
    Possess questions and tools to help understand and verify sustainability claims, recognize “greenwashing”, and select more sustainable products?
  • Contact Information
  • Living Our Values
    Five Winds is a Carbon Neutral Company
    and follows a Sustainable Purchasing Policy