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Fmi final beverage cat man webinar[1]

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Fmi final beverage cat man webinar[1]

  1. 1. Sustainable Sourcing for BEVERAGE Category Managers: Using the FMI Guide<br />Five Winds International &<br />Ecos US<br />Conference Number(s):  1-877-782-5094 Participant Code: 200436 <br />January 26, 2011<br />
  2. 2. Acknowledgements<br />Produced “by the industry for the industry”<br />Thank you to:<br />United Soybean Board<br />FMI Sustainability Executive Committee and Council<br />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)<br />All those who participated in our Guide survey and submitted additional comments<br />
  3. 3. Background on Guide & Presentation<br />This presentation accompanies the document:<br />Sustainability on the Shelves<br />A Guide for Category Managers<br />Please customize the Guide and these slides for your own use<br />
  4. 4. Agenda<br />Learning Objectives<br />What is Sustainability?<br />Sustainable Sourcing<br />Decision Framework for Beverage<br />Take-Home Messages<br />Questions<br />
  5. 5. Learning Objectives<br />Provide good working understanding of sustainability in the food retail sector<br />Identify key sustainability issues specific to each product category<br />Possess questions and tools to help understand and verify sustainability claims, recognize “greenwashing”, and select more sustainable products<br />
  6. 6. What is Sustainability?<br />Sustainability<br />“Business practices and strategies that promote the long term well-being of the environment, society, and the bottom line” - FMI<br />
  7. 7. Sustainability in Your Company<br />Poll: Who is in charge of sustainability in your company?<br />Corporate Sustainability Director <br />Senior Executive designated to manage sustainability<br />c. Sustainability Team<br />d. Other<br />e. No one<br />7<br />
  8. 8. What is Sustainable Sourcing?<br />8<br />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. <br />- Tracy Taylor, Ahold USA<br /><ul><li>Quality
  9. 9. Availability
  10. 10. Price
  11. 11. Service</li></ul>Sustainable Sourcing<br />SUSTAINABLE ATTRIBUTES<br />
  12. 12. Sustainability is a Strategic Business Issue<br />300% <br />Growth of U.S. sales of “ethical” cleaning products in 2009. Packaged Research<br />$73M<br />Additional profit generated by Marks and Spencer’s Plan A sustainability strategy in 2009. M&S 2010 Progress Report<br />
  13. 13. Consumers are looking for “green”<br />Source: 2009 GMA/Deloitte Green Shopper Study<br />
  14. 14. Stepwise approach to buying more sustainable products<br />
  15. 15. Step 1: Know Your Priorities<br />What are your company’s priorities? <br />Sustainable sourcing strategy<br />Company sustainability priorities<br />Product priorities<br />
  16. 16. Poll: What sustainability issues are your customers asking about? (select all that apply)<br />a) Packaging<br /> b) Sustainable seafood<br /> c) Organic<br /> d) Local<br /> e) Toxic/natural ingredients<br /> f) Other<br />Step 1: What are your customers’ priorities?<br />
  17. 17. What is a Sustainable Product? <br />14<br />
  18. 18. How do these terms relate to sustainability? <br />recyclable<br />less toxics<br />organic<br />local<br />eco-labelled<br />less packaging<br />BPA-free<br />recycled content packaging<br />fair trade<br />durable<br />use less resources <br />
  19. 19. What are the Sustainability Issues for Beverage?<br />
  20. 20. Carbon Footprint<br />A carbon footprint includes all greenhouse gases emitted by a product’s production, transportation, consumption, and end of life.<br />Final carbon footprint calculation for a standard bag of Walkers Crisps is 80g CO2 which compares to 243g CO2 for an average cheeseburger<br />See Guide, page 22<br />Sources: US EPA Greenhouse Gas Equivalencies Calculator and http://www.walkerscarbonfootprint.co.uk/walkers_carbon_footprint.html and http://openthefuture.com/cheeseburger_CF.html<br />
  21. 21. Water Footprint<br />53 gallons!<br />See Guide, page 22<br />Source: http://www.huffingtonpost.com/2009/02/13/1-latte-53-gallons-of-wat_n_166759.html <br />
  22. 22. Waste Footprint<br />Every year, the US generates around 14 million tons of food waste, equivalent to 106 pounds of food waste per person<br />See Guide, page 23<br />Source: http://www.epa.gov/reg3wcmd/solidwasterecyclingfacts.htm<br />
  23. 23. Packaging<br />Almost 1/3 of the waste generated in the U.S. is packaging<br />See Guide, page 24<br />Source: http://www.cleanair.org/Waste/wasteFacts.html<br />
  24. 24. Organic, Local, and Bioengineering<br />Consumer demand? Sustainability science?<br />See Guide, page 25<br />Source: http://pubs.acs.org/doi/abs/10.1021/es702969f<br />
  25. 25. Processing, Recycling, and Disposal are Hot Spots for Beverage<br />
  26. 26. Processing, Recycling, and Disposal are HotSpots for Beverage<br />Enormous freshwater needs during processing…<br />518 liters of freshwater are required to produce just 1 liter of Minute Maid orange juice<br />35 liters of freshwater are needed to produce a half liter of Coca-Cola<br />Source: http://www.nytimes.com/2010/11/29/business/energy-environment/29iht-RBOGFOOT.html<br />
  27. 27. Processing, Recycling, and Disposal are HotSpots for Beverage<br />Large environmental impact during recycling and disposal…<br />Recycling 1 plastic bottle can conserve enough energy to power a light bulb for 6 hours.<br />Nearly8out of every 10 bottles will end up in a landfill<br />Source: http://earth911.com/recycling/plastic/plastic-bottles/facts-about-plastic-bottles/<br />
  28. 28. Step 2: Communicate Needs to Suppliers<br />I am interested in sourcing products that address:<br /><ul><li>The sustainability attributes of my product category
  29. 29. My company’s sustainability priorities</li></li></ul><li>Step 3: Acquire Information<br />Poll: How do you typically get information about sustainability from your suppliers?<br />Written marketing material<br />Sales presentations<br />Supplier website<br />Informal one-on-one meetings<br />I have to inquire<br />I don’t receive information<br />
  30. 30. Step 3: Acquire Information<br />You’ve started the conversation, now begin to acquire information on company and product sustainability<br />See page 21 of Guide for General Questions to ask your suppliers <br /> http://www.greenbiz.com/news/2010/03/11/how-to-embed-sustainability-into- company-dna#ixzz10qIvI7SA<br />"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.”<br />Apple CEO Steve JobsSource: Businessweek 2010<br />
  31. 31. Step 4: Evaluate Information<br />If you have information gaps, circle back to “Acquire information”<br /><ul><li>Do you have a process to manage information?
  32. 32. Possible starting points:</li></ul>Review and compare to information in Guide & “For More Information” links<br />Compare information with your company priorities identified in Step 1<br />Talk to your sustainability team<br />Talk to other category managers<br />
  33. 33. Evaluate Information<br />Types of information you may receive:<br />
  34. 34. Eco-Labels: One tool in your toolkit<br />Learn more about the eco-labels for your category<br />SOURCES: World Resources Institute, Big Room Inc. | Bonnie Berkiwitz and Laura Stanton/The Washington Post - May 3, 2010<br />
  35. 35. Ask for substantiation on vague terms like:<br /><ul><li>Eco-friendly
  36. 36. Sustainable
  37. 37. Green
  38. 38. Environmentally-friendly</li></ul>Sin of the Hidden Trade-Off<br />Sin of No Proof<br />Sin of Vagueness<br />Sin of Irrelevance<br />Sin of Fibbing<br />Sin of the Lesser of Two Evils<br />Sin of Worshiping False Labels<br />For more information, see Guide pages 27-28<br />(Used with Permission)<br />
  39. 39. Greenwashing<br />Poll: If you think you’ve seen greenwashing, what about it made you question the claim?<br />No data/proof provided<br />Vague or undefined terms used<br />Claim seemed too good to be true<br />Hidden trade-offs may exist<br />Other<br />
  40. 40. Make Purchasing Decision<br />Evaluate sustainability as only one aspect in your purchasing decision<br /><ul><li>Quality
  41. 41. Availability
  42. 42. Price
  43. 43. Service
  44. 44. Sustainability attributes</li></li></ul><li>Take-Home Messages<br />Know the key sustainability issues for your category and how they fit with your company’s approach<br />Be on the lookout for greenwashing - when you see vague claims (e.g., “green”), dig deeper! (see Guide pages 27-28)<br />Just get started! Start small and build up, using the Guide as a reference tool along the way<br />
  45. 45. Further Questions?<br />Thank you <br />for your attention and participation today!<br />
  46. 46. Coming soon via Survey Monkey<br />Did this webinar:<br />Provide you with a good working understanding of sustainability in the food retail sector?<br />Identify key sustainability issues specific to your product category?<br />Possess questions and tools to help understand and verify sustainability claims, recognize “greenwashing”, and select more sustainable products?<br />
  47. 47. Contact Information<br />
  48. 48. Living Our Values<br />Five Winds is a Carbon Neutral Company <br />and follows a Sustainable Purchasing Policy<br />

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