Dive Brief:
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Three major food manufacturers — General Mills, Tyson Foods and Perdue Farms — issued sustainability reports noting they're nearing goals, launching initiatives and/or making commitments to reduce their global environmental footprints. The announcements came ahead of Earth Day that was recognized on Sunday.
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General Mills reported that it's close to doubling organic acreage, has reduced by 17% the water used in manufacturing from 2016 to 2017, decreased greenhouse gas emissions by 11% from 2010 to 2017, put more than $6 million into pollinator research, and sustainably sourced 76% of its 10 priority ingredients last year, according to Food Business News.
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Tyson Foods said it will improve environmental practices on 2 million acres of corn by the end of 2020 and plans to reduce greenhouse gas emissions by 30% by 2030, according to the company's latest sustainability report covered by Convenience Store Decisions. Perdue Farms announced sustainability goals for 2022, including reducing greenhouse gas emissions by 30% and potable water use by 25%, according to Meatingplace. The company also said it plans to divert 90% of its solid waste from landfills.
Dive Insight:
Many food companies today are adopting environmentally friendly practices, and they're also trying to respond to consumer demand for transparency. Shoppers want to know where their food comes from and how it was grown and processed, and, increasingly, they expect manufacturers to share that information.
According to Nielsen, the more food makers show their commitment to these issues, the more likely consumers are to buy their products. And, if companies refuse to take sustainability actions, they're in danger of losing business to their competitors.
The rewards for stepping up can be substantial for food firms, research indicates. For more sustainable brands, 66% of consumers across the board are willing to pay more, Nielsen reported, with 73% of the influential millennial demographic and 72% of Generation Z taking that position. As a result, companies are not only doing this to be sustainable, but largely because it's helpful to their bottom line.
“Consumers increasingly demand food that reflects their values, from a company they trust. We believe that using our scale for good is good for them, good for our business and good for the planet we share,” Jeff Harmening, chairman and CEO of General Mills, said in a release.
Big Food companies are addressing different sustainability aspects, with General Mills focused on farmland because it's involved with cereals and other grain-based products. Tyson is looking at growing corn that's used to feed chickens, pigs and cattle. For Perdue, reductions in greenhouse gas, water and solid waste reductions are key for its poultry production and processing.
These actions may not be readily visible to consumers, but they're probably where the companies believe they can make the most impact in the shortest amount of time. Now that sustainability reports are becoming the norm, the public will be watching to see whether the stated commitments come to pass. With so many companies undertaking these initiatives, consumers may no longer be impressed that a business is simply doing them.
Companies will gain credibility — along with added brand loyalty — by making sure their rhetoric meets the reality. They have good reason to advertise their achievements, and the degree to which goals are being met, because consumers could make purchasing decisions based on what they see and hear.
But if food firms don't live up to their sustainability commitments, they had better be ready to explain why or their reputation could suffer much faster than it took to build up. In a crowded, competitive market, there are always plenty of other, possibly more sustainable brands, waiting to take their place.