The role of food retailers and technology in reducing consumer food waste

Summary

• Theworldproducesenoughfoodtofeedeveryoneofus,yetalmostonebillionpeopleliveinhunger.

• Betweenonethirdandonehalfofallfoodproducedgloballyiswastedorlostalongsupplychainseveryyear.

• Iffoodlossesandwastewereacountry,thiscountrywouldbethethird-largestemitterofgreenhousegasesintheworld11aswellasasignificantcontributortoclimatechange.

• Ineconomicallydevelopedcountries,consumersareresponsibleformostofthefoodwasted(38to47%).Thehouseholdistheworstpossibleplaceforthisbecausealltheenvironmental,social,andeconomiccoststhatgointoproducinganddistributingfoodaddupfromfarmtofork.

• Theproportionoffoodthrownawaybyretailersisthelowest,ataround5%.Still,retailerscanobtainamedianof5.1dollarsinreturnforeverydollarinvestedinreducingfoodwaste.

• Foodretailershavetheknowledgeandmeanstoinfluencehowconsumersbuy,cook,andevenstoreanddisposeoffoodathome.

• Consumerswhowastelessfoodcoulduseresultingsavingsonhigh-qualityfoodproductswithhigherprofitmarginsforretailers(upselling)orontryingnewproducts(cross-selling).

• Reducingfoodlossesandwasteshouldbeapproachedfromasystemsperspectivetoensurethatisolatedactionsdon’tshiftlossesandwastetootherstagesofthesupplychain.

• Technologycanbeacatalystofbehavioralchange,afacilitatorofcollaborativerelationshipsalongthesupplychain,andatoolforinformationexchangeandtransparencytoavoidfoodwaste.Combiningorganizationalandregulatorysolutionswithtechnologicalonesiskey.

• TheInternetofGroceriescanconnectretailersandconsumersfromthemomenttheproductischosenatthesupermarket,throughitsstorageandcooking,uptoitsdisposal,orideally,lackthereof.

• Collaborationbetweencompaniesacrossdifferentindustriescouldbringaboutinnovativeandbusiness-mindedapproachestoreducingfoodwaste.

1Roughly 1,4 billion hectares of land in 20072Roughly 250km3 of water in 20073Total food production causes 70% of annual deforestation

Objective Themainobjectiveofthispaperistoidentifythedilemmas,challenges,opportunities,androleoffoodretailersinreducingfoodwastetherewhereitisthehighest,attheconsumerlevel.

IntroductionInthefilm“JustEatit-AFoodWasteStory”leadingfoodwasteexpertDanaGunderssaid:“Imaginewalkingoutofagrocerystorewithfourbagsofgroceries,droppingoneintheparkinglot,andjustnotbotheringtopickitup.That’sessentiallywhatwe’redoing.”

Theworldproducesenoughfoodtofeedeveryoneofus,yetalmostonebillionpeopleliveinhunger.35Betweenonethirdandhalfofallfoodproducedgloballyiswastedorlostalongsupplychainseveryyear.35That’senoughtofeedtwicethenumberofhungrypeopleintheworld.35Producingfoodthatwillbelostorwastedmeanswastinghumanlabor,money,land,energy,andwater.Toputthingsinperspective,inordertoproducefoodthatisneverconsumed,asurfacearealargerthanCanadaandIndiacombinedisused,1threetimesthewatervolumeofLakeGenevaissquandered,2androughly20%oftotaldeforestationiscaused.3

11Stunningly,iffoodlossesandwastewereacountry,thiscountrywouldbethethirdlargestgreenhousegasemitterintheworld,11aswellasasignificantcontributortoclimatechange.

Butwhatifwestartseeingfoodlossesandwastenotonlyasaproblembutasasourceofuntappedpotential?Byforcingustothinkdifferently,problemscanbecomeenablersofpolicychange,socialdevelopment,environmentalgovernance,andbusinessinnovation.Manyinventionsinthefoodandbeveragesindustry,includingpasteurization,canning,controlledfermentation,andrefrigeration,cametolifeasaresultoftryingtosolveapressing

Consumer Goods Forum’s Educational Series on reduction of food waste at home

Food wastageThere is a distinction between “food losses” and “food waste.” “Food losses” refers to food that “spills, spoils, incurs an abnormal reduction in quality such as bruising or wilting, or otherwise gets lost before it reaches the consumer”.

37 Such losses often result from poor

infrastructure and deficient technology, transportation, refrigeration, and packaging (Gustavsson et al., 2011).

“Food waste” is described as “food that is of good quality and fit for human consumption but that does not get consumed because it is discarded, either before or after it spoils.”

37 Food waste often results from a decision

to throw food away.

Reasons for food waste include high aesthetic requirements, especially for fruit and vegetables, the mismatch of supply and demand between retailers and consumers, and the physical and cognitive distance between production and consumption. Harvested bananas that fall off a truck are considered food loss, while brown-spotted bananas thrown away at a grocery shop or at home are considered food waste.

36 Together,

food losses and food waste are referred as food wastage.

thewayweseeitI sell it, they buy it, we waste it.

2 3

Summary

• Theworldproducesenoughfoodtofeedeveryoneofus,yetalmostonebillionpeopleliveinhunger.

• Betweenonethirdandonehalfofallfoodproducedgloballyiswastedorlostalongsupplychainseveryyear.

• Iffoodlossesandwastewereacountry,thiscountrywouldbethethird-largestemitterofgreenhousegasesintheworld11aswellasasignificantcontributortoclimatechange.

• Ineconomicallydevelopedcountries,consumersareresponsibleformostofthefoodwasted(38to47%).Thehouseholdistheworstpossibleplaceforthisbecausealltheenvironmental,social,andeconomiccoststhatgointoproducinganddistributingfoodaddupfromfarmtofork.

• Theproportionoffoodthrownawaybyretailersisthelowest,ataround5%.Still,retailerscanobtainamedianof5.1dollarsinreturnforeverydollarinvestedinreducingfoodwaste.

• Foodretailershavetheknowledgeandmeanstoinfluencehowconsumersbuy,cook,andevenstoreanddisposeoffoodathome.

• Consumerswhowastelessfoodcoulduseresultingsavingsonhigh-qualityfoodproductswithhigherprofitmarginsforretailers(upselling)orontryingnewproducts(cross-selling).

• Reducingfoodlossesandwasteshouldbeapproachedfromasystemsperspectivetoensurethatisolatedactionsdon’tshiftlossesandwastetootherstagesofthesupplychain.

• Technologycanbeacatalystofbehavioralchange,afacilitatorofcollaborativerelationshipsalongthesupplychain,andatoolforinformationexchangeandtransparencytoavoidfoodwaste.Combiningorganizationalandregulatorysolutionswithtechnologicalonesiskey.

• TheInternetofGroceriescanconnectretailersandconsumersfromthemomenttheproductischosenatthesupermarket,throughitsstorageandcooking,uptoitsdisposal,orideally,lackthereof.

• Collaborationbetweencompaniesacrossdifferentindustriescouldbringaboutinnovativeandbusiness-mindedapproachestoreducingfoodwaste.

1Roughly 1,4 billion hectares of land in 20072Roughly 250km3 of water in 20073Total food production causes 70% of annual deforestation

Objective Themainobjectiveofthispaperistoidentifythedilemmas,challenges,opportunities,androleoffoodretailersinreducingfoodwastetherewhereitisthehighest,attheconsumerlevel.

IntroductionInthefilm“JustEatit-AFoodWasteStory”leadingfoodwasteexpertDanaGunderssaid:“Imaginewalkingoutofagrocerystorewithfourbagsofgroceries,droppingoneintheparkinglot,andjustnotbotheringtopickitup.That’sessentiallywhatwe’redoing.”

Theworldproducesenoughfoodtofeedeveryoneofus,yetalmostonebillionpeopleliveinhunger.35Betweenonethirdandhalfofallfoodproducedgloballyiswastedorlostalongsupplychainseveryyear.35That’senoughtofeedtwicethenumberofhungrypeopleintheworld.35Producingfoodthatwillbelostorwastedmeanswastinghumanlabor,money,land,energy,andwater.Toputthingsinperspective,inordertoproducefoodthatisneverconsumed,asurfacearealargerthanCanadaandIndiacombinedisused,1threetimesthewatervolumeofLakeGenevaissquandered,2androughly20%oftotaldeforestationiscaused.3

11Stunningly,iffoodlossesandwastewereacountry,thiscountrywouldbethethirdlargestgreenhousegasemitterintheworld,11aswellasasignificantcontributortoclimatechange.

Butwhatifwestartseeingfoodlossesandwastenotonlyasaproblembutasasourceofuntappedpotential?Byforcingustothinkdifferently,problemscanbecomeenablersofpolicychange,socialdevelopment,environmentalgovernance,andbusinessinnovation.Manyinventionsinthefoodandbeveragesindustry,includingpasteurization,canning,controlledfermentation,andrefrigeration,cametolifeasaresultoftryingtosolveapressing

Consumer Goods Forum’s Educational Series on reduction of food waste at home

Food wastageThere is a distinction between “food losses” and “food waste.” “Food losses” refers to food that “spills, spoils, incurs an abnormal reduction in quality such as bruising or wilting, or otherwise gets lost before it reaches the consumer”.

37 Such losses often result from poor

infrastructure and deficient technology, transportation, refrigeration, and packaging (Gustavsson et al., 2011).

“Food waste” is described as “food that is of good quality and fit for human consumption but that does not get consumed because it is discarded, either before or after it spoils.”

37 Food waste often results from a decision

to throw food away.

Reasons for food waste include high aesthetic requirements, especially for fruit and vegetables, the mismatch of supply and demand between retailers and consumers, and the physical and cognitive distance between production and consumption. Harvested bananas that fall off a truck are considered food loss, while brown-spotted bananas thrown away at a grocery shop or at home are considered food waste.

36 Together,

food losses and food waste are referred as food wastage.

thewayweseeitI sell it, they buy it, we waste it.

2 3

problem.Theneedtokeepfoodfreshledtoiceharvestingpracticesinthe1830s,whichresultedinthecommoditizationofice,whichthenpavedthewayfortheacceptanceofartificialrefrigeration.DuringtheRomanEmpire,theaversiontowastinganypartoftheanimalledtothecreationofsausagesandbloodpuddingsthatarestillbeingservedtoday.DuringthelateMiddleAges,roughly80%oftheaveragehouseholdincomewasspentonfoodanddrinksinmostofWesternEurope.Peoplewouldmixleftoverswiththemostdisparateavailableingredients,creatingdishessuchasthesammelsurinGermanyandsalmagundiinEngland.

Tacklingfoodlossesandfoodwastetodaywouldaccomplishmorethansimplyincreasingtheavailabilityoffoodtofeedourgrowingpopulation.Itwouldalsoimprovethesustainabilityofourfoodsupplychains,increasetheresilienceofourgrocery-retailingbusinesses,andleadtoinnovation.Besides,whoknowswhatnewculinaryandtechnologicalcreationscouldcomeofit?

Most food waste takes place at home IfyouarereadingthisfromEurope,theUnitedStates,Canada,orAustralia,youprobablywillhavethrownawaybetween3.5to7lbsofgoodfoodbytheendoftheweek.1,2,3Wastingfoodhasenvironmental,social,andeconomiccoststhatstartaddinguprightfromthefarm,andincreasewitheveryadditionalsteptowardstheconsumer.Forthisreason,thehouseholdistheworstpossibleplaceforfoodtobewasted.Yet,itisherethatthehighestpercentageoffoodwastetakesplace.Householdsineconomicallydevelopedcountriesareresponsibleforabout38%to47%oftheircountry’sfoodwaste.5,6,7,8Thepertinentquestionis,whydoweasconsumerstoleratethiswhenwebalkatotherinefficienciesofsimilarmagnitude?Wewouldn’tacceptthecashierthrowingawayoneofeverythreeproductswepurchaseorifataxidroppedusoffone-thirdofthewayfromourdestination.Oneexplanationcouldbeourlackofawarenessregardingthequantityoffoodwewasteathome.Throwingawaypastuse-by-dateproductsthathavebeenshovedtothebackoftherefrigeratorisperceivedas

cleaningratherthanwasting.Noteatingoverripebrownbananasisconsideredtobehealth-cautiousratherthanwasteful,and

disposingofsmallleftoversisperceivedtobeaninevitablepartofwashingdishes.

Thetenmainreasonsforfoodwasteathome,accordingtoresearchfromWRAP,aUK-basedWaste&ResourcesActionProgram,21areasshowninthetablebelow.Attheend,theactofwastingfoodisadecisioninfluencedbyinformation,convenience,emotions,awareness,ethics,preferences,uncertainty,andmoney.

A financial business case for reducing food waste.Incontrast,theproportionoffooddiscardedbyretailersisthelowest,ataround5%.9Nevertheless,retailershavebeenattheheartofinitiativestoreducefoodwaste,stimulatingconsumerstoacceptmisshapenorimperfectproduce,donatingsurplusestofoodbanksandclearingupconfusionaboutexpirationdates.TheresearchofChampions12.3,13demonstratesthatfoodcompaniesalongthesupplychaincanobtainamedianof14dollarsinreturnforeverydollarinvestedinreducingfoodlossesandwaste(Table2showsthecostsandbenefitsofreducingfoodwastageforthesecompanies).Retailersinparticularcanobtainamedianof5.1dollarsforeveryinvesteddollarbyusingsimpleandlow-costsmethodssuchasmeetingregularlywithsuppliers,introducingorincreasingdailycommunicationswithsuppliers,linkingforecastingmethodstoorderplanningprocesses,developingtoolstoassessunderperforminglines,improvingtoolstoincreasetheaccuracyoforderamendment,andreviewingprogressonaregularbasis.13

Nudging consumer to reduce food waste Theglobaleconomiccostoffoodwastageisestimatedat750billiondollarseveryyear.4Askingwhoisresponsibleforreducingconsumerfoodwasteisnolongerarelevantquestion.Uniquetofoodsupplychainsisthefactthatonewayoranother,weareallpartofthemandtheconsequencesofwastingfoodaffectusall.Infact,foodretailershavetheknowledgeandmeansnecessarytoinfluencehowconsumersbuy,cook,andevenstoreanddisposeoffoodathome.

Retailersinfluenceconsumers’choicesthroughdata-drivenmarketing,whichincludessavvyvisualmerchandizing,assortmentplanning,andseamlesscustomerengagementinan“AnyTime”“Anywhere”and“AnyDevice”(ATAWAD)environment.Drivingconsumerstoreducefoodwasteathomeimmediatelyconjuresupthefrighteningperspectiveofreducedsalesvolumes.Shouldretailersnudgeconsumerstoreducefoodwasteathomeatriskoflosingsales?Oneleaderinthefoodretailingindustrythinksso.In2013Tesco’sCEODaveLewis,declaredawaronfoodwaste,evenattheriskofsellinglessofit.Hesaid,“Itmaysoundcounter-intuitive[…]tohelpourcustomersreducetheamountoffoodtheywaste,becauseitislikelytoinvolvereducingthevolumeoffoodtheybuy[…]Buttheissuethatwearetryingtosolveisalong-termrisktosociety.’’10

Inreality,reducingfoodwastecanfreeupconsumers’budgetsthatmayotherwisehavebeendivertedtothepurchaseofotherfoodproducts.14Consumerscouldchoosetospendthisnewlyavailablebudgetonhigh-qualityfoodswithhigherprofitmarginsforretailers(upselling),orontryinganewproduct(cross-selling).Beingafood-adventurousconsumercanbetheresultofhavingmoneyleftoveroncelesselasticpurchaseshavebeenmade.Consumers

couldexpandtheirpurchasingoptionswhileretailersexpandtheirspecialtyandexoticfoodsections.However,thiscouldalsoleadtofurtherfoodwastage:Tryingnewfoodproductsisamajorcauseoffoodwastebyconsumers,6whilethemishandlingoffruitandvegetablesinexportleadstospoilagesanddamagesalongtheway.AccordingtoJoostSnels,aresearcheronfreshfoodchainsatWageningenUniversityandResearch,asystemsperspectiveisimportantformakinginterventionstoreducefoodwastage.Failuretodosocouldonlyshiftthewastagetootherstagesofthesupplychaininsteadofeliminatingit.Forexample,packagingimprovementsmaydelaythedeteriorationofproductsbutdonotguaranteethecompleteeliminationoffoodwastage.Tacklingfoodwastagerequirestakingintoaccountinterconnectedsystemswithamultitudeofstakeholdershavingdifferentinterests,opinions,andeconomicpositions.

Asdifficultataskasitis,apivotalmomentalreadytookplacein2015whentheUnitedNationsGeneralAssemblysetatargetof50percentpercapitareductioninfoodlossesandwastealongfoodsupplychainsby2030undertheSustainableDevelopmentGoalofSustainableconsumptionandproduction(UN,2016).Thisstimulatedmanycompaniesandfoodsupplychainstakeholderstobuckledownanddosomething.Withmomentumontheirside,small,medium,andlargeenterpriseshavefueledafast-growingtrendofavoidingfoodwastewithcreativecampaignslike:“Lovingyourleftovers,”“WastelessSavemore”(Sainsbury),“GreatTasteLessWaste”(Morrisons)and“Notimeforwaste”(Tesco).Likewise,companiesreachingconsumersdigitallyanddeliveringjusttherightamountofingredientspermeal,suchasBlueApron,MarleySpoon,andHelloFresh,arerisinginpopularity.HelloFresh,forexample,grossedmorethan800,000activesubscribersineightcountriessinceitsestablishmentin2011.15

10 Main reasons for food waste at home

1. Foodgone“pastuse”or“bestbefore”date(34%)

2. Succumbingtotemptingspecialoffers(30%)

3. Foodvisiblygonebadorsmellingbad(30%)

4. Cookingexcessivequantitiesoffood(27%)

5. Noteatingfoodthatneedstobeconsumedfirst(25%)

6. Tryingtobuymorefreshfood(23%)

7. Buyingtoomuch(22%)

8. Springcleaning(24%)

9. Buyingmultipacksofperishableproducts(22%)

10. Dissatisfactionduetounmettasteexpectations(22%)

Table 1: 10 main reasons for food waste at home21

• Identifying, quantifying, and inventorying food wastage

• Prioritizing hotspots

• Monitoring progress over time

• Purchasing or leasing on-site equipment to quantify food wastage

• Training staff on food wastage reduction practices

• Purchasing equipment to redesign material flow or improve food storage

• Changing storage, handling, and manufacturing processes

• Changing packaging to extend shelf-life

• Changing date labels on packaging

• Pursuing other staff and technology investments to reduce food loss and waste

• Avoiding the costs of buying food (as ingredients or directly for sale) that previously had been lost or wasted without being sold

• Increasing the share of food purchased or prepared that gets sold onward to customers

• Introducing new product lines made from food that otherwise would have been lost or wasted

• Reducing food waste management costs (including labor) and tipping fees

• Realizing other modes of reducing input costs or increasing output sales

BenefitsCosts

Table 2: Costs and benefits for retailers entailed with reducing food wastage13

thewayweseeitI sell it, they buy it, we waste it.

4 5

problem.Theneedtokeepfoodfreshledtoiceharvestingpracticesinthe1830s,whichresultedinthecommoditizationofice,whichthenpavedthewayfortheacceptanceofartificialrefrigeration.DuringtheRomanEmpire,theaversiontowastinganypartoftheanimalledtothecreationofsausagesandbloodpuddingsthatarestillbeingservedtoday.DuringthelateMiddleAges,roughly80%oftheaveragehouseholdincomewasspentonfoodanddrinksinmostofWesternEurope.Peoplewouldmixleftoverswiththemostdisparateavailableingredients,creatingdishessuchasthesammelsurinGermanyandsalmagundiinEngland.

Tacklingfoodlossesandfoodwastetodaywouldaccomplishmorethansimplyincreasingtheavailabilityoffoodtofeedourgrowingpopulation.Itwouldalsoimprovethesustainabilityofourfoodsupplychains,increasetheresilienceofourgrocery-retailingbusinesses,andleadtoinnovation.Besides,whoknowswhatnewculinaryandtechnologicalcreationscouldcomeofit?

Most food waste takes place at home IfyouarereadingthisfromEurope,theUnitedStates,Canada,orAustralia,youprobablywillhavethrownawaybetween3.5to7lbsofgoodfoodbytheendoftheweek.1,2,3Wastingfoodhasenvironmental,social,andeconomiccoststhatstartaddinguprightfromthefarm,andincreasewitheveryadditionalsteptowardstheconsumer.Forthisreason,thehouseholdistheworstpossibleplaceforfoodtobewasted.Yet,itisherethatthehighestpercentageoffoodwastetakesplace.Householdsineconomicallydevelopedcountriesareresponsibleforabout38%to47%oftheircountry’sfoodwaste.5,6,7,8Thepertinentquestionis,whydoweasconsumerstoleratethiswhenwebalkatotherinefficienciesofsimilarmagnitude?Wewouldn’tacceptthecashierthrowingawayoneofeverythreeproductswepurchaseorifataxidroppedusoffone-thirdofthewayfromourdestination.Oneexplanationcouldbeourlackofawarenessregardingthequantityoffoodwewasteathome.Throwingawaypastuse-by-dateproductsthathavebeenshovedtothebackoftherefrigeratorisperceivedas

cleaningratherthanwasting.Noteatingoverripebrownbananasisconsideredtobehealth-cautiousratherthanwasteful,and

disposingofsmallleftoversisperceivedtobeaninevitablepartofwashingdishes.

Thetenmainreasonsforfoodwasteathome,accordingtoresearchfromWRAP,aUK-basedWaste&ResourcesActionProgram,21areasshowninthetablebelow.Attheend,theactofwastingfoodisadecisioninfluencedbyinformation,convenience,emotions,awareness,ethics,preferences,uncertainty,andmoney.

A financial business case for reducing food waste.Incontrast,theproportionoffooddiscardedbyretailersisthelowest,ataround5%.9Nevertheless,retailershavebeenattheheartofinitiativestoreducefoodwaste,stimulatingconsumerstoacceptmisshapenorimperfectproduce,donatingsurplusestofoodbanksandclearingupconfusionaboutexpirationdates.TheresearchofChampions12.3,13demonstratesthatfoodcompaniesalongthesupplychaincanobtainamedianof14dollarsinreturnforeverydollarinvestedinreducingfoodlossesandwaste(Table2showsthecostsandbenefitsofreducingfoodwastageforthesecompanies).Retailersinparticularcanobtainamedianof5.1dollarsforeveryinvesteddollarbyusingsimpleandlow-costsmethodssuchasmeetingregularlywithsuppliers,introducingorincreasingdailycommunicationswithsuppliers,linkingforecastingmethodstoorderplanningprocesses,developingtoolstoassessunderperforminglines,improvingtoolstoincreasetheaccuracyoforderamendment,andreviewingprogressonaregularbasis.13

Nudging consumer to reduce food waste Theglobaleconomiccostoffoodwastageisestimatedat750billiondollarseveryyear.4Askingwhoisresponsibleforreducingconsumerfoodwasteisnolongerarelevantquestion.Uniquetofoodsupplychainsisthefactthatonewayoranother,weareallpartofthemandtheconsequencesofwastingfoodaffectusall.Infact,foodretailershavetheknowledgeandmeansnecessarytoinfluencehowconsumersbuy,cook,andevenstoreanddisposeoffoodathome.

Retailersinfluenceconsumers’choicesthroughdata-drivenmarketing,whichincludessavvyvisualmerchandizing,assortmentplanning,andseamlesscustomerengagementinan“AnyTime”“Anywhere”and“AnyDevice”(ATAWAD)environment.Drivingconsumerstoreducefoodwasteathomeimmediatelyconjuresupthefrighteningperspectiveofreducedsalesvolumes.Shouldretailersnudgeconsumerstoreducefoodwasteathomeatriskoflosingsales?Oneleaderinthefoodretailingindustrythinksso.In2013Tesco’sCEODaveLewis,declaredawaronfoodwaste,evenattheriskofsellinglessofit.Hesaid,“Itmaysoundcounter-intuitive[…]tohelpourcustomersreducetheamountoffoodtheywaste,becauseitislikelytoinvolvereducingthevolumeoffoodtheybuy[…]Buttheissuethatwearetryingtosolveisalong-termrisktosociety.’’10

Inreality,reducingfoodwastecanfreeupconsumers’budgetsthatmayotherwisehavebeendivertedtothepurchaseofotherfoodproducts.14Consumerscouldchoosetospendthisnewlyavailablebudgetonhigh-qualityfoodswithhigherprofitmarginsforretailers(upselling),orontryinganewproduct(cross-selling).Beingafood-adventurousconsumercanbetheresultofhavingmoneyleftoveroncelesselasticpurchaseshavebeenmade.Consumers

couldexpandtheirpurchasingoptionswhileretailersexpandtheirspecialtyandexoticfoodsections.However,thiscouldalsoleadtofurtherfoodwastage:Tryingnewfoodproductsisamajorcauseoffoodwastebyconsumers,6whilethemishandlingoffruitandvegetablesinexportleadstospoilagesanddamagesalongtheway.AccordingtoJoostSnels,aresearcheronfreshfoodchainsatWageningenUniversityandResearch,asystemsperspectiveisimportantformakinginterventionstoreducefoodwastage.Failuretodosocouldonlyshiftthewastagetootherstagesofthesupplychaininsteadofeliminatingit.Forexample,packagingimprovementsmaydelaythedeteriorationofproductsbutdonotguaranteethecompleteeliminationoffoodwastage.Tacklingfoodwastagerequirestakingintoaccountinterconnectedsystemswithamultitudeofstakeholdershavingdifferentinterests,opinions,andeconomicpositions.

Asdifficultataskasitis,apivotalmomentalreadytookplacein2015whentheUnitedNationsGeneralAssemblysetatargetof50percentpercapitareductioninfoodlossesandwastealongfoodsupplychainsby2030undertheSustainableDevelopmentGoalofSustainableconsumptionandproduction(UN,2016).Thisstimulatedmanycompaniesandfoodsupplychainstakeholderstobuckledownanddosomething.Withmomentumontheirside,small,medium,andlargeenterpriseshavefueledafast-growingtrendofavoidingfoodwastewithcreativecampaignslike:“Lovingyourleftovers,”“WastelessSavemore”(Sainsbury),“GreatTasteLessWaste”(Morrisons)and“Notimeforwaste”(Tesco).Likewise,companiesreachingconsumersdigitallyanddeliveringjusttherightamountofingredientspermeal,suchasBlueApron,MarleySpoon,andHelloFresh,arerisinginpopularity.HelloFresh,forexample,grossedmorethan800,000activesubscribersineightcountriessinceitsestablishmentin2011.15

10 Main reasons for food waste at home

1. Foodgone“pastuse”or“bestbefore”date(34%)

2. Succumbingtotemptingspecialoffers(30%)

3. Foodvisiblygonebadorsmellingbad(30%)

4. Cookingexcessivequantitiesoffood(27%)

5. Noteatingfoodthatneedstobeconsumedfirst(25%)

6. Tryingtobuymorefreshfood(23%)

7. Buyingtoomuch(22%)

8. Springcleaning(24%)

9. Buyingmultipacksofperishableproducts(22%)

10. Dissatisfactionduetounmettasteexpectations(22%)

Table 1: 10 main reasons for food waste at home21

• Identifying, quantifying, and inventorying food wastage

• Prioritizing hotspots

• Monitoring progress over time

• Purchasing or leasing on-site equipment to quantify food wastage

• Training staff on food wastage reduction practices

• Purchasing equipment to redesign material flow or improve food storage

• Changing storage, handling, and manufacturing processes

• Changing packaging to extend shelf-life

• Changing date labels on packaging

• Pursuing other staff and technology investments to reduce food loss and waste

• Avoiding the costs of buying food (as ingredients or directly for sale) that previously had been lost or wasted without being sold

• Increasing the share of food purchased or prepared that gets sold onward to customers

• Introducing new product lines made from food that otherwise would have been lost or wasted

• Reducing food waste management costs (including labor) and tipping fees

• Realizing other modes of reducing input costs or increasing output sales

BenefitsCosts

Table 2: Costs and benefits for retailers entailed with reducing food wastage13

thewayweseeitI sell it, they buy it, we waste it.

4 5

Combining organizational and regulatory solutions with technological ones is keyTherearenumerousinitiativestoreducefoodwaste,butthemarkethasyettorealizeasystemicchangethroughwhichfoodwasteisnotonlytreatedbutinsteadavoidedwheneverpossible.Fragmentedapproachestoreducingfoodwastemayonlycauseashiftintheplaceandtimeinwhichfoodwasteoccurs.Justconsiderthecasesinwhichretailershavedonatedsurplusesofsoon-to-expireproductstofoodbanks,whichascharitableorganizationsfeelcompelledtoacceptthem,evenwhentherearen’tenoughrecipients.16MatchingsupermarketsupplywiththedemandsoffoodbankscanbebroughttoarealleveloffoodwastereductionbyusingoneofthemostubiquitousformsofInformationTechnology(IT),anapp.IntheUK,afoodbankapphasbeendevelopedthroughwhichfoodbankscanadjusttheirfoodneedsinrealtime,allowingdonorstoseetheavailabilityofrequiredproductsonaTrafficLightdashboard:urgentproductscoloredinred,itemsinshortsupplyinyellow,andthosecurrentlywellstockedingreen.17Byusingthisapp,Canterburysawaonehundredpercentincreaseindonationsofneededproductsinjustonemonth.18OtherappssuchastheFoodStorageandShelfLife,helpconsumersreducewastebyprovidingstorage-andshelf-lifeinformationaboutmorethan350foodproducts.

Technologymaynotsolvetheproblemoffoodlossesandwasteonitsown.ThepotentialbenefitsofRadioFrequencyIdentification

technologies(RFID)areconstrainedbythelackofuniformityinglobalstandards,highcosts,lackoftrust,misinterpretationofdata,andalackofcollaborationinthesupplychain.19Combiningorganizational,regulatory,andtechnologicalsolutionsiskey.

Gettingtherightalgorithmtotacklefoodlossesandwasterequiresnotonlytakingintoaccounttheindividualinterestsofsupplychainstakeholders,theirmotivationaldriversandwillingnesstoreducefoodlossesandwaste,butalsoinnovativetechnologies.Technologycancatalyzebehavioralchangebyactingasatoolforinformationexchangeandtransparencyamongthesupplychainpartners,therebyfosteringtrust-basedcollaborativerelationships.

Couldthen,anIT-drivensupplychaintransformationcontributetosolvingfoodwastebyconsumers?IThashelpedoptimizesupplychainoperationsfromtheback-officetothepointofsalebyimprovingsupplychainvisibilityandcollaborativepartnershipsleadingtoenhancedfoodqualityandsafety.Reductionoffoodlosseshasbeenachievedthankstothequickerresponsetimeofstakeholdersthatismadepossiblebyautomatingorderingprocesses,streamliningpaymentmechanisms,schedulingwarehousing,monitoringdelivery,controllingsystemsforqualityassurance,collectingproducts’data,andtrackingbarcodes,amongothers.20However,theuseofIThasbeenscarceintrackingfoodproductsupuntiltheirconsumptionorend-of-life.Thefocushasbeenmainlyinstreamliningthelogisticalandtransportprocessfromthemanufacturertotheretailer.

Information technology meets waste-avoiding behavior TheuseofITforimprovingtheinteractionbetweenretailersandcustomershasalreadyproventobesuccessful.Next-generationloyaltyprograms,one-to-onepersonalization,andomni-channelcustomerengagementaresomeofthesignificantadvances.AndrewParry,projectmanageratWRAP,21suggeststhatsevenoutofthetenmainreasonsforconsumers’foodwaste(showninTable1)couldbealleviatedwithtechnology,withoutdisregardingthepowerofinformingandeducatingcustomersabouttheuseofsuchtechnology.

InSeattle,aregulationpassedin2015imposesaone-dollarfineeverytimefoodisfoundinconsumers’dumpsters.22Theinspectionofthetrashcansisastrenuoustask,accomplishedbyworkerswhocombmanuallythroughthetrash;andheretechnologywouldcomeinhandy.Smartwastecontainersthatmeasurethefillingpercentage23,24andcontentofwaste25ofrestaurants,retailers,andcitydumpstersalreadyexistthankstowirelesssensorsandbuilt-inscalecamerasconnectedtotheinternet.UsingITwouldnotonlyalleviatethemanuallaborbutalsoincreaseitsaccuracy.TheInternetofThings,orrather,theInternetofGroceries,cannotonlyfacilitatetasks,butalsohasthepotentialofconnectingretailersandconsumersfromtheverymomenttheproductispickedupatthesupermarket,throughitsstorageandcooking,uptoitsdisposal,orideally,thelackthereof.

Itcanallstartbyenablingcustomerstocreateonlineshoppinglistsandaddingredientstotheirshoppingbasketbasedonrecommendedrecipes.Atthestore,consumerscouldbeabletovalidateproductfreshnessthroughsmartlabels,suchasprintedsensors,26orportablespectrometers,suchastheSCIO,27andhaveinstantaccesstoinformationaboutproductsoringredients.Usingbeacons,retailerscouldreachconsumerswhohave

downloadedthestoreappandenabledBluetoothtoofferthempersonalizedsuggestionsrelatedtotheproductslocatedintheircloseproximity.28Throughdynamicpricingusingelectronicshelflabels,pricescouldbeadjustedinrealtimetoinstantaneouslyimprovetheuptakeofproductswithashortershelflife.Likewise,consumerscouldreceivein-storecustomizedoffersaccordingtotheirpre-identifiedpreferences,suchastheirwillingnesstobuyproductsclosetotheirsell-bydateormalformedproducts.Wehavebecomeaccustomedtobuyingandsellingfruitthatlookslikeitcameoutofatemplate,therebyconsumingandretailingaratherunrepresentativesampleofnature.Forexample,increasingsalesofcurvedcucumberscouldhelpredefinethenorm.

AnothertrendinparallelwithfoodwastereductionandtheInternetofThingsiscollaborativeconsumption,orthesharingeconomy,whichallowsconsumerstoenjoyaccesstomoreproductsandserviceswhileconsumingfewerphysicalresources.Imagineconsumersnolongerneedingtoownafridge.Imagineretailersofferingsmartfridgestoloyalconsumersandimaginethatsamefridgeplacingdirectorders,assessingthefreshnessofproducts,suggestingstoragesolutions,offeringrecipeideas,andcommunicatingwithconsumersthroughtheirmobiledevices.Theconsumersurplus,orvalue,thatconsumersplaceonproductsrelativetotheirpricecouldincreasethankstothesetechnologies,whichtakeovertheleastpleasanttaskspertainingtofoodhandling,suchasplanningandstoring,andleavetousonlytheenjoyableactivitiessuchascookingandeating.Afterall,theutilityvalueoffoodisafunctionnotonlyoftaste,butalsooftime,cost,ease,andconvenience,whereinthrowingfoodawaycansometimesbetheoptimaldecisionforaconsumer.29Keepingleftoversforexample,entailsstoringthefoodinacontainer,warmingitup,cleaningthecontainer,andwashingthedishusedforconsumingthefood.It’stoomuchhasslecomparedtoorderingapizza,butanattractiveoptionwhenmostofthe“hardwork”istakenawayfromus.

Imagineconsumersnolongerneedingtoownafridge.Imagineretailersofferingsmartfridgestoloyalconsumersandimaginethatsamefridgeplacingdirectorders,assessingthefreshnessofproducts,suggestingstoragesolutions,offeringrecipeideas,andcommunicatingwithconsumersthroughtheirmobiledevices.

“

“

thewayweseeitI sell it, they buy it, we waste it.

6 7

Combining organizational and regulatory solutions with technological ones is keyTherearenumerousinitiativestoreducefoodwaste,butthemarkethasyettorealizeasystemicchangethroughwhichfoodwasteisnotonlytreatedbutinsteadavoidedwheneverpossible.Fragmentedapproachestoreducingfoodwastemayonlycauseashiftintheplaceandtimeinwhichfoodwasteoccurs.Justconsiderthecasesinwhichretailershavedonatedsurplusesofsoon-to-expireproductstofoodbanks,whichascharitableorganizationsfeelcompelledtoacceptthem,evenwhentherearen’tenoughrecipients.16MatchingsupermarketsupplywiththedemandsoffoodbankscanbebroughttoarealleveloffoodwastereductionbyusingoneofthemostubiquitousformsofInformationTechnology(IT),anapp.IntheUK,afoodbankapphasbeendevelopedthroughwhichfoodbankscanadjusttheirfoodneedsinrealtime,allowingdonorstoseetheavailabilityofrequiredproductsonaTrafficLightdashboard:urgentproductscoloredinred,itemsinshortsupplyinyellow,andthosecurrentlywellstockedingreen.17Byusingthisapp,Canterburysawaonehundredpercentincreaseindonationsofneededproductsinjustonemonth.18OtherappssuchastheFoodStorageandShelfLife,helpconsumersreducewastebyprovidingstorage-andshelf-lifeinformationaboutmorethan350foodproducts.

Technologymaynotsolvetheproblemoffoodlossesandwasteonitsown.ThepotentialbenefitsofRadioFrequencyIdentification

technologies(RFID)areconstrainedbythelackofuniformityinglobalstandards,highcosts,lackoftrust,misinterpretationofdata,andalackofcollaborationinthesupplychain.19Combiningorganizational,regulatory,andtechnologicalsolutionsiskey.

Gettingtherightalgorithmtotacklefoodlossesandwasterequiresnotonlytakingintoaccounttheindividualinterestsofsupplychainstakeholders,theirmotivationaldriversandwillingnesstoreducefoodlossesandwaste,butalsoinnovativetechnologies.Technologycancatalyzebehavioralchangebyactingasatoolforinformationexchangeandtransparencyamongthesupplychainpartners,therebyfosteringtrust-basedcollaborativerelationships.

Couldthen,anIT-drivensupplychaintransformationcontributetosolvingfoodwastebyconsumers?IThashelpedoptimizesupplychainoperationsfromtheback-officetothepointofsalebyimprovingsupplychainvisibilityandcollaborativepartnershipsleadingtoenhancedfoodqualityandsafety.Reductionoffoodlosseshasbeenachievedthankstothequickerresponsetimeofstakeholdersthatismadepossiblebyautomatingorderingprocesses,streamliningpaymentmechanisms,schedulingwarehousing,monitoringdelivery,controllingsystemsforqualityassurance,collectingproducts’data,andtrackingbarcodes,amongothers.20However,theuseofIThasbeenscarceintrackingfoodproductsupuntiltheirconsumptionorend-of-life.Thefocushasbeenmainlyinstreamliningthelogisticalandtransportprocessfromthemanufacturertotheretailer.

Information technology meets waste-avoiding behavior TheuseofITforimprovingtheinteractionbetweenretailersandcustomershasalreadyproventobesuccessful.Next-generationloyaltyprograms,one-to-onepersonalization,andomni-channelcustomerengagementaresomeofthesignificantadvances.AndrewParry,projectmanageratWRAP,21suggeststhatsevenoutofthetenmainreasonsforconsumers’foodwaste(showninTable1)couldbealleviatedwithtechnology,withoutdisregardingthepowerofinformingandeducatingcustomersabouttheuseofsuchtechnology.

InSeattle,aregulationpassedin2015imposesaone-dollarfineeverytimefoodisfoundinconsumers’dumpsters.22Theinspectionofthetrashcansisastrenuoustask,accomplishedbyworkerswhocombmanuallythroughthetrash;andheretechnologywouldcomeinhandy.Smartwastecontainersthatmeasurethefillingpercentage23,24andcontentofwaste25ofrestaurants,retailers,andcitydumpstersalreadyexistthankstowirelesssensorsandbuilt-inscalecamerasconnectedtotheinternet.UsingITwouldnotonlyalleviatethemanuallaborbutalsoincreaseitsaccuracy.TheInternetofThings,orrather,theInternetofGroceries,cannotonlyfacilitatetasks,butalsohasthepotentialofconnectingretailersandconsumersfromtheverymomenttheproductispickedupatthesupermarket,throughitsstorageandcooking,uptoitsdisposal,orideally,thelackthereof.

Itcanallstartbyenablingcustomerstocreateonlineshoppinglistsandaddingredientstotheirshoppingbasketbasedonrecommendedrecipes.Atthestore,consumerscouldbeabletovalidateproductfreshnessthroughsmartlabels,suchasprintedsensors,26orportablespectrometers,suchastheSCIO,27andhaveinstantaccesstoinformationaboutproductsoringredients.Usingbeacons,retailerscouldreachconsumerswhohave

downloadedthestoreappandenabledBluetoothtoofferthempersonalizedsuggestionsrelatedtotheproductslocatedintheircloseproximity.28Throughdynamicpricingusingelectronicshelflabels,pricescouldbeadjustedinrealtimetoinstantaneouslyimprovetheuptakeofproductswithashortershelflife.Likewise,consumerscouldreceivein-storecustomizedoffersaccordingtotheirpre-identifiedpreferences,suchastheirwillingnesstobuyproductsclosetotheirsell-bydateormalformedproducts.Wehavebecomeaccustomedtobuyingandsellingfruitthatlookslikeitcameoutofatemplate,therebyconsumingandretailingaratherunrepresentativesampleofnature.Forexample,increasingsalesofcurvedcucumberscouldhelpredefinethenorm.

AnothertrendinparallelwithfoodwastereductionandtheInternetofThingsiscollaborativeconsumption,orthesharingeconomy,whichallowsconsumerstoenjoyaccesstomoreproductsandserviceswhileconsumingfewerphysicalresources.Imagineconsumersnolongerneedingtoownafridge.Imagineretailersofferingsmartfridgestoloyalconsumersandimaginethatsamefridgeplacingdirectorders,assessingthefreshnessofproducts,suggestingstoragesolutions,offeringrecipeideas,andcommunicatingwithconsumersthroughtheirmobiledevices.Theconsumersurplus,orvalue,thatconsumersplaceonproductsrelativetotheirpricecouldincreasethankstothesetechnologies,whichtakeovertheleastpleasanttaskspertainingtofoodhandling,suchasplanningandstoring,andleavetousonlytheenjoyableactivitiessuchascookingandeating.Afterall,theutilityvalueoffoodisafunctionnotonlyoftaste,butalsooftime,cost,ease,andconvenience,whereinthrowingfoodawaycansometimesbetheoptimaldecisionforaconsumer.29Keepingleftoversforexample,entailsstoringthefoodinacontainer,warmingitup,cleaningthecontainer,andwashingthedishusedforconsumingthefood.It’stoomuchhasslecomparedtoorderingapizza,butanattractiveoptionwhenmostofthe“hardwork”istakenawayfromus.

Imagineconsumersnolongerneedingtoownafridge.Imagineretailersofferingsmartfridgestoloyalconsumersandimaginethatsamefridgeplacingdirectorders,assessingthefreshnessofproducts,suggestingstoragesolutions,offeringrecipeideas,andcommunicatingwithconsumersthroughtheirmobiledevices.

“

“

thewayweseeitI sell it, they buy it, we waste it.

6 7

The challenge posed by uncertainty and riskExpertsinthefieldofsustainablesupplychainsadvocateintegratedsolutionstofoodlossesandwastethroughwhichthequalityoffoodproductsismeasured,monitored,andcontrolledfromthemomentitleavesthefarmuntilitreachestheconsumer.Thistechnologyhasalreadybeencommerciallydeveloped.

However,accordingtoToineTimmermans,30ofWageningenUniversity&ResearchintheNetherlandsandanexpertinthefieldofsustainablefoodchains,technologyisroughlytenyearsaheadofbehavioralacceptancebymostcompanies.Someofthesecompaniesseemtosufferfromthe“notinventedheresyndrome.”Understandably,theinnovatorsorearlyadoptersoffoodwastereductiontechnologiesfaceuncertaintyandrisk.31

Finally,companiesthatcantakeactiontoreducefoodwasteshouldnotunderestimatethereputationalbenefitsandconsumertrustthatwillaccrueonthestrengthofthesocialpurposeofeliminatingfoodwaste.Infact,consumertrustandbrandreputationcanactasforcemultiplierstobuildemotionalconnectionsforlifelongrelationshipswithconsumers.Suchaninitiativecanalsomobilizecommunityactiviststothefightagainstfoodwaste,increasethelevelofsupportfrompolicy-makersandmaximizeshareholderandmarketvalue.33

ConclusionReducingfoodwastemightlookliketoohugeaproblemforasinglecompanytotackle,butexperienceshowsthatthesmallesteffortscanhavebroadramificationsandinspireotherstojointhecause.Collaborationwithconsumersismorepossiblenowthaneverbefore,especiallysincebuyingfoodisnolongermerelyanecessity,butalsoanactofculturalexpressionthroughwhichconsumersrewardcompaniesthatreflecttheirownprinciples.Toincreasethechancesofsuccessfullyreducingfoodwaste,wemustrealizethatretailersarenolongersubjecttoanisolatedlinearbusinessstructure.Theyare,rather,anintegralpartofsocietyandofanetworkofindustriesinterconnectedthroughinformationtechnologies.Thesmartuseofinformationtechnologiesalongfoodsupplychainscreatesopportunitiestospurtheadoption

ofcommonstandards,supplychaintransparency,andreal-timeinformation-sharingpractices.Ifrealtimeisthenewstandardforbusinessinsights,nowisalsotherealtimetocutfoodlossesandwaste.

Foodwastereductionispartofalargerefforttoimprovethesustainabilityofourglobalfoodsystems.Eachofushassomethingtowin,eitherthrougheconomicprofitorenvironmentalandsocialbenefits.Severalinitiativestoreducefoodlossesandwastehaveprovenfinanciallysound,andeventhoughfoodwastebyretailersrepresentsonlyaboutfivepercent,theytoocanearnsignificantbenefits.Retailershavethetoolsandinsightstochangeconsumerknowledge,mind-set,andbehavior.Lessfoodlostandwastedwouldalleviatetheburdenontheenvironmentcausedbyagriculture,transport,andthedisposaloffoodthatnevergetseaten.Evenso,reducingfoodwasteisnotonlyaboutprofit,logistics,ortheenvironment.Itisalsoafundamentallymoralchoice.

Foodretailerscanhelpconsumersreducetheirfoodwasteby:

1. Understandingwhysomeofyourproductsarelandinginconsumers’dumpstersinsteadofontheirplates

2. Reducingthecognitivedistancebetweentheproductionandconsumptionoffoodproductsbyproactivelyinformingconsumershowtheseproductscametobe

3. Makingtheinformationaboutyourproductseasytounderstand

4. Applyinginformationtechnologiestohelpconsumersquantifytheamountoffoodwastedathome

5. Helpingconsumersbuildatailoredstrategytocutfoodwasteathome

Theuseof(information)technologytoaddressenvironmental,social,andbusinessissuesisnowubiquitousandcertainlyvaluable,butisnot,onitsown,the“goosethatlaysthegoldeneggs.”Sometimes,agreaterissueisbeingabletochangedeeplyentrenchedmindsetsandbeingwillingtochallengethestatusquo.

Eatingfoodisoneofthemostnaturalactsofhumanbeings.Whatwouldyousaywastingitwouldbe?

Food retailers can help consumers reduce their food waste by:

1. Understanding why some of your products are landing in consumers’ dumpsters instead of on their plates

2. Reducing the cognitive distance between the production and consumption of food products by proactively informing consumers how these products came to be

3. Making the information about your products easy to understand

4. Applying information technologies to help consumers quantify the amount of food wasted at home

5. Helping consumers build a tailored strategy to cut food waste at home

8

The challenge posed by uncertainty and riskExpertsinthefieldofsustainablesupplychainsadvocateintegratedsolutionstofoodlossesandwastethroughwhichthequalityoffoodproductsismeasured,monitored,andcontrolledfromthemomentitleavesthefarmuntilitreachestheconsumer.Thistechnologyhasalreadybeencommerciallydeveloped.

However,accordingtoToineTimmermans,30ofWageningenUniversity&ResearchintheNetherlandsandanexpertinthefieldofsustainablefoodchains,technologyisroughlytenyearsaheadofbehavioralacceptancebymostcompanies.Someofthesecompaniesseemtosufferfromthe“notinventedheresyndrome.”Understandably,theinnovatorsorearlyadoptersoffoodwastereductiontechnologiesfaceuncertaintyandrisk.31

Finally,companiesthatcantakeactiontoreducefoodwasteshouldnotunderestimatethereputationalbenefitsandconsumertrustthatwillaccrueonthestrengthofthesocialpurposeofeliminatingfoodwaste.Infact,consumertrustandbrandreputationcanactasforcemultiplierstobuildemotionalconnectionsforlifelongrelationshipswithconsumers.Suchaninitiativecanalsomobilizecommunityactiviststothefightagainstfoodwaste,increasethelevelofsupportfrompolicy-makersandmaximizeshareholderandmarketvalue.33

ConclusionReducingfoodwastemightlookliketoohugeaproblemforasinglecompanytotackle,butexperienceshowsthatthesmallesteffortscanhavebroadramificationsandinspireotherstojointhecause.Collaborationwithconsumersismorepossiblenowthaneverbefore,especiallysincebuyingfoodisnolongermerelyanecessity,butalsoanactofculturalexpressionthroughwhichconsumersrewardcompaniesthatreflecttheirownprinciples.Toincreasethechancesofsuccessfullyreducingfoodwaste,wemustrealizethatretailersarenolongersubjecttoanisolatedlinearbusinessstructure.Theyare,rather,anintegralpartofsocietyandofanetworkofindustriesinterconnectedthroughinformationtechnologies.Thesmartuseofinformationtechnologiesalongfoodsupplychainscreatesopportunitiestospurtheadoption

ofcommonstandards,supplychaintransparency,andreal-timeinformation-sharingpractices.Ifrealtimeisthenewstandardforbusinessinsights,nowisalsotherealtimetocutfoodlossesandwaste.

Foodwastereductionispartofalargerefforttoimprovethesustainabilityofourglobalfoodsystems.Eachofushassomethingtowin,eitherthrougheconomicprofitorenvironmentalandsocialbenefits.Severalinitiativestoreducefoodlossesandwastehaveprovenfinanciallysound,andeventhoughfoodwastebyretailersrepresentsonlyaboutfivepercent,theytoocanearnsignificantbenefits.Retailershavethetoolsandinsightstochangeconsumerknowledge,mind-set,andbehavior.Lessfoodlostandwastedwouldalleviatetheburdenontheenvironmentcausedbyagriculture,transport,andthedisposaloffoodthatnevergetseaten.Evenso,reducingfoodwasteisnotonlyaboutprofit,logistics,ortheenvironment.Itisalsoafundamentallymoralchoice.

Foodretailerscanhelpconsumersreducetheirfoodwasteby:

1. Understandingwhysomeofyourproductsarelandinginconsumers’dumpstersinsteadofontheirplates

2. Reducingthecognitivedistancebetweentheproductionandconsumptionoffoodproductsbyproactivelyinformingconsumershowtheseproductscametobe

3. Makingtheinformationaboutyourproductseasytounderstand

4. Applyinginformationtechnologiestohelpconsumersquantifytheamountoffoodwastedathome

5. Helpingconsumersbuildatailoredstrategytocutfoodwasteathome

Theuseof(information)technologytoaddressenvironmental,social,andbusinessissuesisnowubiquitousandcertainlyvaluable,butisnot,onitsown,the“goosethatlaysthegoldeneggs.”Sometimes,agreaterissueisbeingabletochangedeeplyentrenchedmindsetsandbeingwillingtochallengethestatusquo.

Eatingfoodisoneofthemostnaturalactsofhumanbeings.Whatwouldyousaywastingitwouldbe?

Food retailers can help consumers reduce their food waste by:

1. Understanding why some of your products are landing in consumers’ dumpsters instead of on their plates

2. Reducing the cognitive distance between the production and consumption of food products by proactively informing consumers how these products came to be

3. Making the information about your products easy to understand

4. Applying information technologies to help consumers quantify the amount of food wasted at home

5. Helping consumers build a tailored strategy to cut food waste at home

8

default-document-library/ROR/ror-state-of-the-retail-industry.pdf?sfvrsn=2

34.Ford(2014).YOUSAYTOMATO;WESAYTOM-AUTO:FORDANDHEINZCOLLABORATEONSUSTAINABLEMATERIALSFORVEHICLES.JUN10,2014|DEARBORN,MICH.https://media.ford.com/content/fordmedia/fna/us/en/news/2014/06/10/ford-and-heinz-collaborate-on-sustainable-materials-for-vehicles.html

35.FAO(2017).Keyfactsonfoodlossandwasteyoushouldknow!http://www.fao.org/save-food/resources/keyfindings/en/

36.FAO2017b.Foodlossandfoodwaste.http://www.fao.org/food-loss-and-food-waste/en/

37.Lipinski,B.,Hanson,C.,Lomax,J.,Kitinoja,L.,Waite,R.,&Searchinger,T.(2013,p.1).Reducingfoodlossandwaste.WorldResourcesInstituteWorkingPaper,June

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www.stopfoodwaste.ie/food-we-waste/how-much-we-waste/

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3. OZHarvest(n.d).“Foodwastefacts.”http://www.ozharvest.org/what-we-do/environment-facts/

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11. FAO(2013).Foodwastagefootprintimpactonnaturalresources.Summaryreporthttp://www.fao.org/docrep/018/i3347e/i3347e.pdf

12.Rijpkema,W.,Rossi,R.,&G.A.J.vanderVorst,J.(2014).“Effectivesourcingstrategiesforperishableproductsupplychains.”InternationalJournalofPhysicalDistribution&LogisticsManagement,44(6),494-510.

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14.Rutten,M.,P.Nowicki,M.J.Bogaardt&L.Aramyan(2013).ReducingfoodwastebyhouseholdsandinretailintheEU;Aprioritizationusingeconomic,landuseandfoodsecurityimpacts.

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16.TheGuardian(2017).“Supermarketsshouldbecuttingfoodwaste,notrelyingoncharities.”Authors:TristramStuart,DominikaJarosz,FounderandheadofcampaignsatFeedback.https://www.theguardian.com/sustainable-business/2017/feb/03/supermarkets-food-waste-charities-tesco-sainsburys-fairshare

17. Foodbankapp.coo.uk(2017).About.http://foodbankapp.co.uk/

18.Techworld.com(2015).Foodbank:Adonationappwithadifference—anappforsocialgoodhttp://www.techworld.com/apps/foodbank-donation-app-with-difference-3628912/

19.InternationalInstituteofRefrigeration(2008).RFIDtechnologiesforcoldchainapplication.September2008.http://www.iifiir.org/userfiles/file/publications/notes/notefood_04_en.pdf

20.Salin,V.,B.Lowe,andA.Krueger.1998.“ManagementandInformationatUSAgribusinesses:PerspectivesfromtheCattle-BeefSector”

21.WRAP(n.d).FoodWasteReduction:HowCanTechnologyHelp?Author:AndrewParry,ProjectManager,WRAPhttp://www.wrap.org.uk/sites/files/wrap/Andrew%20Parry.pdf

22.NPR(2015).FOODFORTHOUGHT.TossingOutFoodInTheTrash?InSeattle,You’llBeFinedForThat.http://www.npr.org/sections/thesalt/2015/01/26/381586856/tossing-out-food-in-the-trash-in-seattle-you-ll-be-fined-for-that

23.Urbiotica(2017).U-DumpM2Mwastemanagementsensor.http://www.urbiotica.com/en/product/u-dump-m2m-2/

24.Enevo(2017).Home.https://www.enevo.com/

25.Leanpath(2017).Home.http://www.leanpath.com/leanpath360/

26.Forbes(2015).“TheSmartLabelsThatWillPowerTheInternetOfThings.”https://www.forbes.com/sites/mikekavis/2015/02/17/the-smart-labels-that-will-power-the-internet-of-things/#5acc71b82ba6

27.ConsumerPhysics(2017).Home.http://www.consumerphysics.com/

28.Beaconstac(2015).4innovativeinternetofthingsexamplesinretail.https://blog.beaconstac.com/2015/10/4-innovative-internet-of-things-examples-in-retail/

29.Ellison,B&Lusk,J.L.(2016).ExaminingHouseholdFoodWasteDecisions:AVignetteApproach.

30.Timmermans,T(2017).PersonalinterviewMay11.

31.REFRESH(2017).Businessbehavioraltypologiesandinterrelationships.Implica-tionsforfoodwaste

32.TheEconomist,2014.“WholeFoodsMarket.Victimofsuccess.Apeddlerofpriceyorganicandnaturalfoodsfindsithascompetition.”http://www.economist.com/news/business/21610289-peddler-pricey-organic-and-natural-foods-finds-it-has-competition-victim-success

33.APCOworldwide(2010).Returnonreputationindicator.AResearchproductofAPCOworldwide.STATEOFTHERETAILINDUSTRY:EXECUTIVESUMMARYhttp://www.apcoworldwide.com/docs/default-source/

Author

Carolina Arias Bustoscarolina.arias-bustos@capgemini.com

10

default-document-library/ROR/ror-state-of-the-retail-industry.pdf?sfvrsn=2

34.Ford(2014).YOUSAYTOMATO;WESAYTOM-AUTO:FORDANDHEINZCOLLABORATEONSUSTAINABLEMATERIALSFORVEHICLES.JUN10,2014|DEARBORN,MICH.https://media.ford.com/content/fordmedia/fna/us/en/news/2014/06/10/ford-and-heinz-collaborate-on-sustainable-materials-for-vehicles.html

35.FAO(2017).Keyfactsonfoodlossandwasteyoushouldknow!http://www.fao.org/save-food/resources/keyfindings/en/

36.FAO2017b.Foodlossandfoodwaste.http://www.fao.org/food-loss-and-food-waste/en/

37.Lipinski,B.,Hanson,C.,Lomax,J.,Kitinoja,L.,Waite,R.,&Searchinger,T.(2013,p.1).Reducingfoodlossandwaste.WorldResourcesInstituteWorkingPaper,June

Sources 1. Stopfoodwaste.ie(n.d).“Howmuchfooddowewaste?”http://

www.stopfoodwaste.ie/food-we-waste/how-much-we-waste/

2. Independent(2015).News/World/Europe.“HowmuchfooddoestheEUwaste?TheUKisthemostwastefuloftheEU’s27memberstates,needlesslythrowingaway14.3milliontonsperyear.”http://www.independent.co.uk/news/world/europe/how-much-food-does-the-eu-waste-a6778351.html

3. OZHarvest(n.d).“Foodwastefacts.”http://www.ozharvest.org/what-we-do/environment-facts/

4. Simons,L.(2014).“Changingthefoodgame:markettransformationstrategiesforsustainableagriculture.”GreenleafPublishing.

5. EuropeanParliament.(2012).“ParliamentcallsforurgentmeasurestohalvefoodwastageintheEU.”PressReleaseReferenceNo:20120118IPR35648.

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Author

Carolina Arias Bustoscarolina.arias-bustos@capgemini.com

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For more details contact: Katja van Beaumont+31306895866katja.van.beaumont@capgemini.com

Kees Jacobs+31306890000kees.jacobs@capgemini.com

About CapgeminiWith more than 190,000 people, Capgemini is present in over 40 countries and celebrates its 50th Anniversary year in 2017. A global leader in consulting, technology and outsourcing services, the Group reported 2016 global revenues of EUR 12.5 billion. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model.

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