Dive Brief:
- Spoiler Alert, a startup aimed at reducing food waste and food insecurity, has closed a $2.5 million seed round led by Acre Venture Partners, according to a news release.
- The startup has developed Marketplace, an online portal, to connect companies and organizations with outlets for unsold and surplus food and organic waste. Marketplace facilitates transactions between businesses and nonprofits, such as food donations and discounted sales.
- Earlier this year, Spoiler Alert unveiled Enterprise, a subscription-based service that helps businesses capitalize on enhanced tax deductions available for food donations. The technology includes "item-level traceability and advanced reporting dashboards that offer greater visibility into businesses’ waste streams, potential tax shield, and community impact," according to the news release.
Dive Insight:
Manufacturers have been a part of the food waste reduction movement. In a recent Food Waste Reduction Alliance report , 100% of major companies surveyed claimed they were investing in four out of five areas involved with food waste. According to the report, manufacturers repurposed 94% of diverted food waste as animal feed or for land application last year.
It's likely that manufacturers will continue to primarily divert food waste this way due to the nature of the food waste manufacturers tend to create. But Spoiler Alert and similar platforms could offer manufacturers another way to more easily facilitate food donations when their potential food waste fits food donation requirements.
Spoiler Alert, particularly its Enterprise technology, also takes the motivation for food waste reduction one step further by adding a financial benefit to the equation: tax deductions. Many manufacturers engage in sustainability initiatives, such as reducing food waste, regardless of the effort's financial impact. But companies aren't likely to turn down the opportunity to reduce their tax burden and improve their bottom line while also performing a service to the environment, as well as to consumers in need of better food security.