Optimising resources in food grocery value chains - WRAP Conference - Creating the Future: Rising to the Resource Challenge Judith Batchelar ...
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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
Decreasing
…
Global Fish
Stocks:
Agriecosystems: >85% over or
60% degraded fully exploited,
or in decline
Agricultural
land use
Resource
change:
availability
11% of global
GHG emissions
Land
availability:
50% of available
land mass used
to grow food
Severe
flooding:
will double in
Europe by 2050
Global Extreme
Stable & drought events
Food
predictable per 100 years
Reserves
climate will double
50 year low
(IPCC)
Global GHG
emissions:
24% from
agricultureA complex set of evolving challenges
Increasing
…
UK Food
Population: Poverty: Energy
10M more 4.7 million Demand: 50%
people in people by 2030 (IEA)
20 years in UK
Food waste: Ill Heath:
1.3 billion Demand for
circa 1bn
tonnes a year resources and
‘stuffed’ or
food
‘starved’
Middle
Global
class
population:
consumption
2-2.5 billion
3-4 billion
by 2050
by 2050
Competition Food Prices
for Water: (104%) & Price
30% by 2030 Volatility
IFPRI (>3-fold)
UK: Products
Food: 50% by £50 billion cost
& services =
2030 of poor diets to
75% of
UN FAO NHS by 2050
personal CFPA UK Retailer but a global business
£10Billion of Sainsbury’s Brand
products from 72 countries
SWEDEN Over 1,300 Stores
NORWAY
Over 160,000 Colleagues
USA
FINLAND Over 2,000 supplier sites
CANADA
10,000’s farmers
U
EIR
K
E EUROPE
USA PORTUGAL
SPAIN TURKEY
CHIN
MOROCCO A
PAKISTA SOUTH
DOMINICAN N KOREA
EGYPT
REPUBLIC INDI
MEXICO A
ST LUCIA SENEGA VIETNA
THAILAND
L M
MALAYSIA
PANAMA
COLUMBIA GHANA MALDIVES
KENYA
BRAZIL
PERU
BOLIVIA MADAGASCAR
NAMIBIA MAURITUS AUSTRALIA
NEW
CHILE ZEALAN
SOUTH D
AFRICAUnderpinning our work
An End to End Approach
Because we don’t work in isolation, we need to understand this for the entire value chain
Food and Drink
Agriculture and Supply Chain Retail
Soil Land Use
Manufacturing
and Logistics Operations
Consumers Landfill
and Processing
Progress going forward will rely on our ability to join up the
end to end value chain to create truly sustainable business modelsFit For the Future
Best people with the best information make the best decisions working with the Best
Suppliers to create shared value
Best
Suppliers
Best Best
People DataData…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 foresightProduct
Designing in Sustainability
Understanding & helping our customers
Structural change in the UK grocery sector
Grocery Market Channel Share, 2013-2022: % Take Home Market
Online
Convenience
Discount
Supermarket
2013 2022 ForecastThere is real structural change in channels –
fragmenting the customer shop
Market Value by Channel: £bn
Supermarkets 0% Discount
+12%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Convenience +4% Online
+10%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022I want a job running product The kids are sharing with
tests at Sainsbury’s Grandma in Australia that they
love Sainsbury’s new lasagne
I am 13 and I hate
supermarkets unless I’m taking I like Sainsbury’s
pictures of myself there
In Godalming
I’m currently drinking store we are
Taste The Difference Prosecco talking about
British Strawberries
Here is a vintage
picture of me
eating strawberries
4,000 customers are on a
Watch me as
permanent forum with chat
I review my
rooms and a weekly
shopping
feedback survey
I am a google employee who Here is a collection
likes electronic shelf edge of pictures and recipes
labelsCloser to customers
Helping customers reduce their household waste and
start saving money along the way
• Planning e.g. shopping planning not meal planning
PLANNING SHOPPING
• Shopping e.g. navigating multi-buys & till shock
• Cooking e.g. portion size
• Storing e.g. confusion over what to put, where
STORAGE COOKING
• Not using e.g. unopened products as well as leftovers
• Throwing out e.g. battling the bins & recycling
NOT USING THROWING
FOOD OUT FOODWaste 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 :
AD Plant
First store ever
to be powered
Sainsbury’s
off grid by food Cannock
wasteWhat does the future hold?
Sainsbury’s Brand - Research Portfolio 64 projects 30 research institutions 40 suppliers £3.5m per year Format: Farmer-Grower – Supplier-Academic-Sainsbury’s Duration: 6m – 4years
Fresher better quality products with better availability -
Container Tracking
Real time location data
Temperature and MAP
monitoring
Proof of concept funded
by the CatapultComplex agendas require an interdisciplinary approach
Data translated into Foresight,
Technology
information and Real time modelling replaces
enabled
insight hindsight
Managing
Trade offs
interdependenciesPartnership 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
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