Unilever has taken several steps to combat global food waste within its supply chain and operations. It has focused on reducing waste in three major areas - tomatoes, sugar, and tea. For each commodity, Unilever analyzed where waste occurs most and implemented strategies like improving harvesting techniques, educating farmers, and developing more efficient packaging. Unilever also works with customers and consumers to reduce waste, such as by encouraging the use of leftovers. The company's goal is to have zero waste sent to landfills by 2020 and encourage other stakeholders to do the same across the entire value chain.

1. UNILEVER : Combatting
Global Food Waste
Presented by
Manish Pandey

2. We live in a world where a significant portion of the population
is starving, but nearly one-third of all food produced is wasted.
This is human disgrace, how can we say this is sustainable????
~Pier Luigi Sigismondi, chief supply chain
officer

3. Unilever : The Brand
 Formed in 1929 through merger of 2 Dutch companies
 Since inception Unilever supported a broad social purpose
 Their early emphasis was on soap
 In 20th century they moved to food category
 In 2012 company was named as leading company in DOW JONES
SUSTAINABILITY INDEX
 49.8 billion pounds in 2013 with 1000 brands
 Operates in 190 countries with 100,000 suppliers

5. Unilever Sustainable Living Plan
 In 2010 company introduced Unilever Sustainable Agriculture Code
 “Mandatory” , “Must” and “Should” for suppliers
 Like MANDATORY requirement prohibited animal abuse, MUST keep
record of irrigation water quality test.
 To be truly sustainable our policy should deliver triple bottom line
value-economic, environmental and social
 Unilever’s supply chain to sustainably source all agriculture products
 Planned to work with 500,000 smallholders farmers

6. Global Food Waste
 Food and Agriculture Organization described food loss as “ the decrease of edible
food mass available for human consumption throughout the different segments of
supply chain
 One-third of the total food produced went unconsumed (1.3 billion metric tons)
32%
23%12%
12%
21%
waste
Farm
Handling and
storage
Processing and
packaging
Distribution
Consumer
household
Picked before it ripened
Over production
Insufficient harvesting
Perished before it was
transported
Insufficient infrastructure

7. Food waste at Unilever
 27% of firm’s revenue and 41% operating profit is by food category
 19% of firm’s revenue and 11% operating profit is by refreshment category
 Both these together contribute 63% of Unilever’s waste
 Unilever is more efficient than most primarily because most of the foods are
processed so less perishable
 Unilever has worked on building efficiencies on supply chain and by incentivizing
and supporting suppliers to reduce waste
 Unilever decided to focus first on 3 major waste sources i.e.. Tomatoes, Sugar and
Tea
 They focused on improving their own operation and through R&D and new
technologies

8. Managing upstream Sources of food
Tomatoes
Worked with 15 suppliers who contributed 85% of its supply
Unilever purchase 3% of world’s tomato production
27% of their purchase goes waste
39%
18%
12%
5%
26%
Waste 39% Fields not being harvested because of lack of demands or
bad weather
18% processing and packaging
12% storage post harvest
5% during distribution
26% end customers
Tomato grading and waste
Tomato and HUL

9. Sugar
By 2013 company was sustainably sourcing 49% of its sugar
Targeting for 100% sustainable sourcing by 2020
 45% during processing and packaging
 26% consumers
 16% farm
 8% distribution
 5% post harvest and storage
 Use of molasses and bagasse in biofuel or cattle feed
 Educating and training farmers
 By making investment in efficient machinery
45%
26%
16%
8% 5%
waste

10.  Tea
Owns several tea brans like Brookbond, lipton and PG tips
In total firm purchases or owned world’s 12% of tea production
Tata global beverages owns 3.1% and Associated British foods owns 2.5%
41%
32%
13%
8%
6%
waste  41% weather damage and insufficient harvesting method
 32% when consumers make more tea than they drink or
threw away before expiry date
 13% lost during distribution
 8% processing and packaging
 6% storage and post harvest
 Shallower bins for withering process
 Two level storage in transportation

11. Managing downstream sources of food waste
 Working with customers
 Mainly in countries where global economic recession persisted
 Compete on solution rather than just on price
 Worked with food service customers such as restaurants and hotels
 Unilever Food Solution launched an app in the UK name “Wise up on Waste” directed towards
professional chef
 Working with consumers
 More than 20% of food wastage is after retail
 In UK alone value of food thrown out each year is 700 pounds, by a family with children
 Encouraged consumers to use left over food using Unilever’s food products like “Knor soups”
 In a trial practice with 12 British and Irish family, Unilever was successful in reducing their waste
by 25%-33%
 Lunched Live Better Challenge in partnership with The Gaurdian, and saved 10metric ton food
waste was prevented by participants in a week

12. Making Internal Changes
 Product left in packages
 Developed easy to evacuate packaging
 Packaging as per changing demographics
 Impact of waste reduction on sales
 Sales would fall down
 This is an opportunity for brands to partner with consumers to live sustainably
 It reduces wastes and increases revenue
 Also worked with competitors to reduce waste

13. Broader Mandates
 By 2014 company will become the first largest FMCG with zero waste to land fill
 Encourage all stakeholders for zero waste value chain
Building on Impact
 Despite of critics on overall revenue, Unilever CEO said we have to deliver rather
than responding to critic
 Sigismondi said “Food reduction will ultimately be driven by consumer demand”
 Unilever’s supply chain became one of the best recognised in the word
 Long term success ultimately relied on continue participation of all the members of
the value chain.

14. THANK YOU!!!!