SAN LEANDRO, Calif. — Andronico’s Community Markets is taking on food waste. Up to 40% of food in the U.S. ends up in the trash, according to a recent report by the National Resources Defense Council.
One problem is that high-quality standards for fresh fruit and vegetables mean a lot of edible produce gets thrown away instead of sold and eaten.
Andronico’s has partnered with FoodStar, a local start-up, to address that issue by selling imperfect produce at a discount.
FoodStar works with farmers primarily in California to source fruits and vegetables that ordinarily wouldn’t make it to retail because they are too small or not an ideal color or shape. The company then alerts Andronico’s about the available produce before arranging a sale through the retailer’s usual produce distributor.
“So FoodStar acts as the intermediary,” said Jonathan Packman, Andronico’s executive director of marketing. “They source the surplus product from the growers and then they get it to us through our normal distribution channels.”
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Andronico’s has been running the FoodStar program for about three months. The retailer sells the imperfect produce in all five of its stores. Products change seasonally depending on what’s available.
“We started off with Pink Lady apples, and then we did Granny Smith apples. Right now we’re doing sweet potatoes. And they’re all really good price points so that we move through them very quickly,” said Packman.
Customers enjoy discounts of nearly a dollar or more per pound on these items. The Pink Lady apples were priced at 69 cents per pound instead of the usual $1.49 per pound, while sweet potatoes were sold for 39 cents per pound instead of $1.49 per pound.
The low price point has made the program popular, but customers also appreciate the message behind it. Packman said the community supports keeping the food from going into the garbage.
Andronico’s displays the FoodStar-sourced produce in large bins near the entrances of its stores. A sign explains where the product came from and why it is being sold at a discounted price, making it clear that it is different from the regular, full-price produce.
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The Andronico’s program is a pilot, but FoodStar co-founder Stuart Rudick said the company hopes to expand soon to other chains, particularly in low-income areas and food deserts where there is a need for affordable produce.
“Our goal is to be able to really make a significant impact. And the amount of supply that’s available is quite, quite large. So we can provide a significant quantity of food to much, much larger chains,” said Rudick.
This month, Andronico’s and FoodStar will launch a new program of produce flash sales using product culled from the retailer’s own shelves that does not meet its quality standards.
Such products will be sold at Andronico’s stores in FoodStar bags at a discount for a limited time. FoodStar will announce the flash sales through texts and emails. Customers will be able to opt in to receive notifications by phone or via the FoodStar website.
“So it’s normally, a head of lettuce would cost say, $2.49, and it weighs a pound. We’re going to be able to sell it for 50 cents. And for us it’s 50 cents [in] sales instead of wasted product. And for our customer that wants to take advantage of the deal, it’s a deal. It’s an opportunity,” said Packman.
About 10% of food waste happens at the retail level, according to the U.S. Department of Agriculture. Retailers lose $15 billion each year just on fruits and vegetables that are thrown away instead of sold.
Packman anticipates the flash sales will be very popular. The plan is to someday expand the program to other perishable departments in the store.
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