Hunger Games
From farmers to manufacturers to grocers, many in the supply chain are coming together to combat food insecurity nationwide.
January 1, 2018
From farmers to manufacturers to grocers, many in the supply chain are coming together to combat food insecurity nationwide.
Any given week, at least five million people in America visit a food agency. Overall, more than 46 million people require food assistance over the course of one year. A closer look shows that every year one in seven people receive food assistance at some point from Feeding America—the nation’s network of food banks, pantries and meal programs.
Supporting the food bank network is an ongoing and widespread effort, and many members of the food industry are on board. In 2014, grocery retailers donated one billion meals to Feeding America, one-third of the 3.3 billion total meals sourced. Manufacturer donations were responsible for another 748 million meals.
Grocery retailers in particular are stepping up to the plate, with little fanfare. In most cases, it is not because they have to, but because they have the wherewithal to want to help out, feeling a sense of responsibility toward the cause. Feeding people is what they do best, after all, but retailers also have the knowledge and infrastructure in place for storing and transporting food safely.
“Almost every major retailer and food manufacturer contributes to the network on a national or local level with first-run product surplus and food that is nearing its sell date,” says Ross Fraser, director of media relations at Chicago-based Feeding America. “Many of our grocery and manufacturing partners also provide substanial financial contributions and organize company-wide volunteer events on a regular basis.”
To emphasize retailers’ impact, Food Share, a Ventura County, Calif. food bank outside the Feeding America network, receives 28% of its total food from its 200-plus grocery partners, according to Bonnie Weigel, president and CEO of Food Share, adding that six years ago that number was only 6%. “We would be lost without our grocer partners.”
Food Share takes a Triple P Bottom Line approach—people, planet, profit—something that resonates with retailers. Much of the effort toward hunger relief goes hand-in-hand with reducing food waste. By donating unsellable food from their shelves, retailers are not just helping people but avoiding landfills—and the fees that go along with that.
With a network of 200 food banks and 60,000 food pantries and meal programs, Feeding America is an easy organization for retailers to partner with, either to make donations or conduct in-store consumer marketing programs.
Such programs raise money that the food banks can then invest in the purchases of additional food, logistical resources or staff. More importantly, though, they provide an avenue for shoppers to give back to their community and create consumer awareness. And generating awareness, industry observers note, is a major obstacle for hunger relief programs.
“A lot of people do not believe that hunger is a problem in their community, but it exists in every community across the nation so it is important to educate the public,” says Nell Kolpin, manager of corporate partnerships for Feeding America.
For many retailers, supporting the cause is written into their mission as a business. Claire D’Amour-Daley, vice president of corporate communications for Big Y Foods, says the Springfield, Mass.-based grocery chain has always contributed in this way. “We are in the food business so we have access to the kinds of systems that help us to be effective, whether it be trucking or refrigeration,” she says.
The company has a long-standing relationship with the local food agencies that allows them to help each other out. One year the chain ended up with a lot of very close-coded fresh turkeys around Thanksgiving. Big Y Foods called the local agencies and arranged delivery the next day. “We know them and they know us. They have their own logistics to be concerned with but we work within their systems all the time. It’s a well-oiled machine,” says D’Amour-Daley.
The local touch
Establishing trust and understanding with local agencies is vital to maximizing the impact a grocery business can have in the community. This is traditionally more difficult for large grocery chains that span multiple states or regions than it is for independent banners that tend to have closer ties to the locality.
However, observers are seeing more store managers with the autonomy to take the reins when it comes to their community outreach and work one-on-one with local organizations. According to Weigel, the ability to act like a mom-and-pop grocery store in these situations is the tipping point.
One of the campaigns at Vons and Pavilions in Southern California enlists the stores’ employees to put together a bag of groceries for consumers to purchase for five dollars. It creates a direct connection, says Weigel. “The company is not only raising dollars for their foundation, they are engaging their employees in a way that is super meaningful to them, all because they are able to act hyper local.”
Another example is Newport Avenue Market, a family-owned single-store operator in Bend, Ore. The store capitalizes on its community connection with its Gleaner Program, which welcomes “claimers” to come in and collect bruised or ugly perishables that they then take to senior citizens in the community.
“A head of lettuce may be too foggy for us to sell, but these seniors are thrilled to see it,” says Lauren G. R. Johnson, COO of Newport Avenue Market. “It is pretty neat to make those items useful. It makes you feel good to know that your neighbors are eating.”
Following the course of consumer food preferences, local is on focus in the charity space as well. But that is the beauty of many national non-profit organizations, say observers. Beyond the nationally recognized name and support structure, they apply a local mentality in each community.
This is exactly how Meals on Wheels America describes itself: A national brand with a grassroots infrastructure. “We always say, if you have seen one Meals on Wheels location, you have seen just one Meals on Wheels location,” says Colleen Clark, director of national partnerships of the Alexandria, Va.-based non-profit.
With that mentality, the organization has the ability to partner with retailers large and small simultaneously. For example, last year Meals on Wheels partnered with BJ’s Wholesale Club for BJ’s Charity Championships.
Reaching consumers through their preferred medium—social media—the campaign aligned with the NCAA’s March Madness basketball tournament and created a competition for donation funds. “It provided a fun, interactive and convenient way for our members to direct BJ’s funding to organizations and missions that resonate with them,” says Kerry Carven, manager of community affairs for the Westborough, Mass.-based club store. “It also served as a friendly and collaborative way for our members to share in BJ’s giving support. Plus, every charity that participated received a donation.”
Meals on Wheels made it through to the finals last year and received a grant of $7,000, which will help the organization continue to serve one million meals each day—2.5 million seniors each year.
Food for health
Retail and food manufacturer initiatives have seemed to pick up speed in recent years. The onset of digital communication, social media and a shifting mindset that values volunteerism has helped spread awareness and inspired advocates to connect with the causes that are important to them.
Stores like Newport Avenue Market and Wegmans raised record-breaking amounts of money in their 2014 fall campaigns. Newport Avenue raised enough money through its Food for February campaign to supply the Family Kitchen with ingredients through the remainder of the year—the previous year’s campaign raised enough to get through September.
Programs that allow consumers to purchase a bag of groceries or make an easy dollar donation at the checkout are almost always successful because of their ease and seasonality, note observers. Wegmans raised a record $1.69 million during its fall 2014 Check out Hunger campaign, which allowed consumers to make a dollar-amount donation at the register.
Even with all the growth in food and cash donations from the industry, there is still far to go, say the experts.
One major area of focus is the healthfulness of food donations. The mindset most hunger organizations take is that “everyone deserves access to three healthy meals a day.” Feeding America, specifically, has a goal for its food banks to distribute “at least 70% nutritious food,” which includes proteins, produce and products low in fat or high in nutritional value.
Some food banks even go as far as to not accept or distribute soda, junk food or anything they do not consider to be nutritious.
Feeding America currently moves one billion pounds of produce a year. Some food banks, such as those in California’s produce regions, receive a lot from the surrounding agricultural community—Food Share receives 60% of its total resources that way—but other regions have a greater challenge obtaining fresh vegetables and fruits.
This concern is more widespread than most people realize, observers say. It is not just an issue for those relying on food agencies, but also those shopping the supermarket aisles on a tight budget or with SNAP benefits. According to Fraser, one in seven people in the U.S. live at or below the poverty line, which the government defines as a family of four living on $23,850.
“Many folks struggling with poverty do not even go to the produce aisle because it depresses them,” says Michel Nischan, CEO and founder of Wholesome Wave, based in Bridgeport Conn. “When a family of four has two-dollars to spend on dinner, and a quarter-head of broccoli costs $2, while an 8-pack of instant noodles cost is only $1.49—they do not even walk over there.”
There is opportunity here, says Nischan. One area that is under-explored is bundling vegetables with packaged goods or other specials to get the health message across, allowing consumers on a budget to try new things, he says, adding that then grocers could feature more fruits and vegetables throughout the grocery store aisles.
“These things take some investment, but the healthier your customers are, the longer they will live and the more they will eat,” says Nischan. “As a chef, I saw a difference in the gratuitousness and loyalty of my customers once I started demonstrating that I cared about their health and the environment. The loyalty to my brand grew when people felt that I genuinely cared about them.”
Waste less
Enlisting such programs will not only meet the demands of consumers on a budget but it will also address the issue of food waste. According to Mark Driscoll, head of food for London-based Forum for the Future (FFTF), the world currently produces 20% more calories in terms of food production than it actually needs to provide everyone with healthy, nutritious foods. Yet, one-third of all food grown globally is wasted.
He points to a handful of European grocery retailers for examples of tactics that address food waste. The French grocer Carrefour, for one, developed an innovative ad campaign to tackle the perception of ugly fruit and vegetables.
Grocers on this side of the Atlantic could look to their European counterparts for inspiration. Many are experimenting and prioritizing the key issue of hunger and how it will shape the retail sector in five, 10, 15, 20 years, says Driscoll.
That is one area of focus for FFTF. But just as retailers could look for inspiration in their industry, they should also share it. Some observers would like to see retailers take ownership of the role they play in addressing food insecurity.
“Retailers are so often humble about the good they do, which is a beautiful thing because they are doing it for the intention—not ego or brand share. But every time we share a story, someone is always inspired,” says Food Share’s Weigel.
Producing Awareness
Food producers are fundamental to the growth of food assistance programs, both individually and as a whole. While most companies support a number of programs, one is often founded in the company’s own backyard—or in some cases, in all their backyards.
Hormel Foods Corp., for instance, provides each plant location with a discretionary budget to allocate to hunger as the team sees fit. One plant manager was torn between donating the funds to Meals on Wheels or a local food bank so he volunteered at both to better understand each mission, says Julie Craven, vice president of corporate communications for the Austin, Minn.-based company. “When you are busy in the midst of your own job, sometimes you don’t have a clear perspective. All of our plant managers have been very engaged and hands on.”
Developing a meaningful approach or angle can inspire and set an example for other players. Here are some key programs that food producers have put their hearts and souls into with the goal of tackling hunger.
Just Peachy: To meet the Local Food Bank of South Jersey’s need for a sustainable revenue stream, and to keep 800,000 pounds of peaches out of landfill, The Campbell Soup Co., based in Camden, N.J., created a peach recipe to sell at New Jersey retailers. The proceeds support the local food bank program—$100,000 annually for the past three years—and the program captured the attention of Feeding America.
Outnumber Hunger: The General Mills Foundation’s program allows consumers to contribute up to five meals to their local community through Feeding America. It is as simple as entering a location-specific code (tied to ZIP code) found on select product packages, such as cereal. Consumers love the idea of giving back to their neighbors, say officials for the Minneapolis-based company.
On Our Way to Ending Hunger: The hunger relief strategy at Hormel Foods incorporates a wide-range of initiatives that go beyond donations. Recognizing the need for conversation on policy, awareness and coordination issues, among others, the company hosted two hunger summits bringing passionate industry players together from food banks to doctors to legislators. Now, the company collaborates with a number of programs nationwide.
Makers Garden: The Kraft Foods Group Foundation is fighting hunger in its backyard—literally. Located at the company’s Northfield, Ill. headquarters, Kraftown, the 8,000-square-foot Makers Garden has harvested 37,000 pounds of fresh, sustainably grown fruits, vegetables and herbs. All have been donated to local hunger-relief agencies, including food pantries and WIC (Women, Infants and Children) centers.
Breakfast for Better Days: The Kellogg Co. has tapped into its specialty—breakfast. The goal of the program is to provide one billion servings of cereals and snacks, of which more than half are breakfasts, by the end of 2016 in support of hunger relief. One way the Battle Creek, Mich.-based company is doing this is through its Give a Child Breakfast campaign in March, when consumers can support the cause by buying specially marked boxes of Kellogg’s cereal.
Strike Out Hunger: By sponsoring the South Atlantic Baseball League All-Star Game, Perdue Farms, based in Salisbury, Md., mobilized a community to support its local food banks. Combined with a league-wide All-Star Challenge, the programs generated more than 250,000 meals, as well as provided $30,000 in grants and donations to a number of food banks in the area.
Produce's growing reach
“Produce should not be a luxury.”
That is the idea behind the recently launched Growing Forward with Feeding America program. Developed by the produce marketing agency McDill Associates, Growing Forward was developed with the mission of getting more fruits and vegetables onto the plates of those who are food insecure via promotions, donations and other initiatives conducted by its produce company partners.
“What is unique about the program is that it takes a product-based approach, versus the more common finance-based initiatives,” says Lisa Hansen, director of business development for the Soquel, Calif.-based marketing agency. “We are based in the salad bowl of America and the food banks we support here receive an abundance of produce. That is fantastic, but there are so many communities nationwide that do not have that luxury due to issues of perishability and transportation and logistics.”
The inspiration came from the success of a promotional partnership McDill conducted with Feeding America for the launch of the Cloudy with a Chance of Meatballs 2 movie. Through partnerships with a number of companies—such as National Watermelon Promotion Board, Grimmway Farms, Duda Farm Fresh Foods and California Giant Berry Farms to name a few—thousands of pounds of fresh produce were donated to food banks across the country.
“It was a huge success, and as soon as it wrapped up we were brainstorming new opportunities for produce companies to connect with the Feeding America network on a national scale,” says Hansen. Since its launch in late 2014 Growing Forward has attracted partners like RPE Produce and IFCO North America.
RPE Produce’s Lock Out Hunger campaign—the Bancroft, Wis.-based grower is donating 10 pounds of potatoes (up to 40,000 pounds) each time a consumer enters the code found on the marked Kwik Lok tags on its Old Oak Brand of product—has received several hundred entries, as well as consumer emails and letters thanking the company for its efforts and stating they are excited to contribute.
“RPE has a long history of sponsoring programs aimed at fighting hunger, as well as donating time and fresh produce to local food banks, and we wanted to take our commitment to the next level,” says Randy Shell, vice president of marketing and new business development. “This gives us another platform to educate consumers on what the produce industry can and is doing to ensure more product is available to Feeding America food banks nationwide.”
McDill is also excited about IFCO’s partnership. The Tampa, Fla.-based company will be donating RPCs (reusable plastic containers) to specific food banks allowing the locations to get produce into people’s hands quicker without compromising the quality.
According to Daniel Walsh, president of IFCO North America, “the campaign offers us an opportunity to centralize and enhance our efforts to eliminate food waste and get more fresh food to those that need it.”
Growing Forward is currently in talks with additional partners about potential future initiatives.
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