Optimising resources in food grocery value chains WRAP Conference - - PowerPoint PPT Presentation

Optimising resources in food grocery value chains

WRAP Conference – Creating the Future: Rising to the Resource Challenge

Judith Batchelar Director Sainsbury’s Brand 5th November 2015

Agenda

Our context Underpinning our work Product – Designing in Sustainability Understanding & helping our customers Within our own operations What does the future hold

Our context

The global challenge

A complex set of evolving challenges

Agricultural land use change: 11% of global GHG emissions Severe flooding: will double in Europe by 2050 Land availability: 50% of available land mass used to grow food Global Fish Stocks: >85% over or fully exploited,

• r in decline

Resource availability Extreme drought events per 100 years will double (IPCC) Agriecosystems: 60% degraded Stable & predictable climate Global Food Reserves 50 year low Global GHG emissions: 24% from agriculture

Decreasing …

A complex set of evolving challenges

Food waste: 1.3 billion tonnes a year Demand for resources and food Middle class consumption 3-4 billion by 2050 Global population: 2-2.5 billion by 2050 Food: 50% by 2030 UN FAO Food Prices (104%) & Price Volatility (>3-fold) UK Population: 10M more people in 20 years UK: Products & services = 75% of personal CFP Food Poverty: 4.7 million people in UK Competition for Water: 30% by 2030 IFPRI £50 billion cost

• f poor diets to

NHS by 2050 Energy Demand: 50% by 2030 (IEA) Ill Heath: circa 1bn ‘stuffed’ or ‘starved’

Increasing …

A UK Retailer but a global business

£10Billion of Sainsbury’s Brand products from 72 countries Over 1,300 Stores Over 160,000 Colleagues Over 2,000 supplier sites 10,000’s farmers

CANADA USA USA MEXICO PANAMA DOMINICAN REPUBLIC ST LUCIA COLUMBIA BRAZIL PERU BOLIVIA CHILE EUROPE U K EIR E SPAIN SENEGA L NORWAY SWEDEN FINLAND TURKEY EGYPT PORTUGAL GHANA MOROCCO KENYA SOUTH AFRICA MADAGASCAR MAURITUS NAMIBIA MALDIVES INDI A CHIN A AUSTRALIA NEW ZEALAN D MALAYSIA SOUTH KOREA VIETNA M THAILAND PAKISTA N

Underpinning our work

An End to End Approach

Because we don’t work in isolation, we need to understand this for the entire value chain

Soil Landfill Progress going forward will rely on our ability to join up the end to end value chain to create truly sustainable business models

Food and Drink Manufacturing and Processing Agriculture and Land Use Retail Operations Supply Chain and Logistics Consumers

Best Suppliers Best People Best Data

Fit For the Future

Best people with the best information make the best decisions working with the Best Suppliers to create shared value

Data…benchmarking & best practice

• Sustainability standards
• Key raw materials
• Hotspot issues, (triple bottom line)
• Building on from and using existing standards
• Standard assessment & simultaneous data capture
• Supports benchmarking & continuous improvement.
• Improves transparency & traceability within our supply chains.
• Produces real time value chain data for all stakeholders… more than just certification
• Technology opportunities form remote sensing to big data generating foresight

Product

Designing in Sustainability

Understanding & helping

• ur customers

Structural change in the UK grocery sector

Grocery Market Channel Share, 2013-2022: % Take Home Market

2013 2022 Forecast Online Convenience Supermarket Discount

There is real structural change in channels – fragmenting the customer shop

Market Value by Channel: £bn

Supermarkets Discount Convenience Online

2015 2013 2014 2016 2021 2018 2017 2020 2019 2022

+10%

2015 2013 2014 2016 2021 2018 2017 2020 2019 2022

+4%

2015 2013 2014 2016 2021 2018 2017 2020 2019 2022

+12%

2015 2013 2014 2016 2021 2018 2017 2020 2019 2022

0%

I’m currently drinking Taste The Difference Prosecco I am 13 and I hate supermarkets unless I’m taking pictures of myself there The kids are sharing with Grandma in Australia that they love Sainsbury’s new lasagne I am a google employee who likes electronic shelf edge labels I want a job running product tests at Sainsbury’s Watch me as I review my shopping I like Sainsbury’s In Godalming store we are talking about British Strawberries Here is a vintage picture of me eating strawberries 4,000 customers are on a permanent forum with chat rooms and a weekly feedback survey Here is a collection

• f pictures and recipes

Closer to customers

Helping customers reduce their household waste and start saving money along the way

• Planning e.g. shopping planning not meal planning
• Shopping e.g. navigating multi-buys & till shock
• Cooking e.g. portion size
• Storing e.g. confusion over what to put, where
• Not using e.g. unopened products as well as leftovers
• Throwing out e.g. battling the bins & recycling

PLANNING SHOPPING COOKING STORAGE NOT USING FOOD THROWING OUT FOOD

Waste Less, Save More: Search for a town

Within our own operations

Everything you would expect and a lot more

Our Waste and Recycling Creating Renewable Energy :

First store ever to be powered

• ff grid by food

waste

AD Plant Sainsbury’s Cannock

What does the future hold?

Sainsbury’s Brand - Research Portfolio

Duration: 6m – 4years Format: Farmer-Grower – Supplier-Academic-Sainsbury’s £3.5m per year 64 projects 30 research institutions 40 suppliers

Fresher better quality products with better availability - Container Tracking

Real time location data Temperature and MAP monitoring Proof of concept funded by the Catapult

Technology enabled Managing interdependencies Trade offs Data translated into information and insight Real time Foresight, modelling replaces hindsight

Complex agendas require an interdisciplinary approach

Partnership and collaborations

Evolving our relationship with WRAP

• Working together for over 10 years
• Valued independent source of knowledge, data, benchmarking and insight
• Facilitating value chain and pre-competitive stakeholder activity
• Moving from a packaging focus, to food waste & packaging to resource efficiency

& resilience