TerraCycle Collection Program Reduces Manufacturers' Waste

TerraCycle was founded in 2001 with the goal of eliminating waste. The process starts by offering national collect programs (called brigades) to collect non-recyclable or hard to recycle waste and then convert the collected waste into a wide range of products and materials. There are currently about 33 brigades available that range from drink pouches to energy bars to tortilla bags. Most of the brigades are free to participate in because TerraCycle and partnering companies pay the shipping costs when you send your collection back. As an added incentive to collect, for every unit of waste you send to TerraCycle, you will receive at least $0.02 to a charity or school of your choice.

Manufacturers like Kraft Foods are continuing to expand their involvement in the TerraCycle program. Kraft Foods previously offered programs for its Capri Sun, Nabisco and Lunchables products, and has recently added cheese packaging. The cheese packaging the program accepts includes Kraft Naturals, Philadelphia, Philly, Athenos, Kraft Singles, macaroni and cheese, Easy Mac, Cracker Barrel, Polly-O, Breakstone, Velveeta and Knudsen.

This program seems to recognize that manufacturers will have restrictions when it comes to packaging due to food safety, cost, consumer and storage needs, and more. Thankfully, TerraCycle has developed a unique program that allows those manufacturers to reduce their negative environmental impact.

Supermarkets Preferred Over Quick-Service Restaurants

A recent qsrmagazine.com article, Competition on Aisle Five, discusses the competition quick-serve restaurants (QSRs) are facing with grocery store prepared and ready-to-eat foods. Packaged Facts—a leading publisher of market research in the food, beverage and consumer packaged goods demographic sector—recently generated a new report titled “Prepared Foods and Ready-to-Eat Foods at Retail: The New Competition to Foodservice.” According to the report, consumers are searching for two things—value and one-stop-shop convenience. Supermarket-prepared foods are expected to grow 7 percent from 2010 to 2011. This definitely presents an opportunity for food ingredient suppliers. Because, while consumers want value and convenience, the doors for innovation opportunities within the supermarkets are wide open. Consumers are already making the trip to the store more often than QSRs, so take advantage and find a way to get your ingredients in the supermarket.

Communicating Sustainability

In a previous blog post, we wrote about the growing activity inside food ingredient companies to communicate their various efforts at establishing viable and credible sustainability programs. Industry marcom execs have been challenged to expand their communications to a wider variety of internal and external audiences. Several food ingredient companies have implemented comprehensive communications plans that integrate multiple tactics to promote their sustainability programs, including trade news coverage, advertising, social networks, e-mail marketing and more.

One tactic that appears to be having a lot of success is the idea of forming partnerships between food marketers, the cause-related non-profits and non-governmental organizations that are involved in relevant sustainability programs. One recent example that caught our attention was the partnership announced between Nestlé and The Forest Trust. The two are partnering to develop more responsible practices for palm oil sourcing and for procurement of the pulp and paper that Nestlé uses.

According to Food Business News, Nestlé and The Forest Trust have defined responsible sourcing guidelines—a set of requirements to guide the Nestlé procurement process and to ensure compliance with the Nestlé supplier code. Nestlé will seek to identify and exclude companies owning, or managing, high-risk plantations or farms linked to deforestation.

The partnership with The Forest Trust gives credibility to Nestlé’s sustainability program. The tactic also gains wider exposure through the joint promotion efforts of the two partners. Expect to see more food ingredient companies announcing eco-friendly partnerships in the months to come.

Communications for Sustainability Programs

Sustainability programs and eco-friendly initiatives are gaining traction at many major food ingredient companies. The reason for the growing attention can be traced to the success of high-profile programs like Wal-Mart’s “Sustainability 360” program that reduced packaging and shipping costs $2.4 million last year; or Nestle Waters Arrowhead and Poland Springs bottled-water brands that reduced plastic use by 15%, while reducing manufacturing and shipping costs.

Several food ingredient companies have told me that they have started cross-functional, multidisciplinary teams to develop sustainability initiatives. Marketing communication managers at Monsanto, and at sister company Solae, were recently assigned senior roles on their company’s sustainability teams and were tasked with communicating new programs to various stakeholder and customer audiences.

ADM recently published its first corporate responsibility report including an overview of the “Doing It Right” sustainability initiative. A press release on the report got coverage in the food ingredient trade magazines and offered a direct link to the complete report on-line.

I fully expect that the food ingredient channel will see a sharp increase over the first half of 2010 in communications campaigns supporting new sustainability programs. Industry marcom execs will be challenged to expand their communications to a wider variety of internal and external audiences including stakeholders, customers and consumers. Food ingredient companies will need to consider more comprehensive communications plans that integrate multiple tactics including trade news coverage, advertising, social networks, e-mail marketing, partnerships and more.

For additional information on corporate sustainability initiatives, check out the white paper from Korn/Ferry International.