hannaford supermarkets: sustainability strategy and innovation
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Hannaford Supermarkets: Sustainability Strategy and Innovation
presented by Megan Hellstedt
Sustainability In ActionFMI Sustainability SummitJune 18, 2008
• 165 stores in Northeast U.S. (ME, NH, VT, MA, NY)
• More than 26,000 employees
• Owned by Delhaize Group, Belgium
About Hannaford...
Our Approach
Hannaford has a strong history of working to enhance our communities and conserve natural resources while building a successful business model.
People Products Planet
CSR Strategy
Global to Local
Overall Delhaize Group Strategy and metrics
Banner-specific strategies tailored to geography and customer base
Many opportunities for sharing successes between banners - global synergy groups
Hannaford Strategy
Identified relevant issues
5-year strategy with position statements and goals
Metrics, aligned with Delhaize Group
Governed by Working Group and Steering Committee
Reasons for Success
Cross-departmental representation
Issue Sponsors (each Working Group member is the expert on at least 1 issue)
External advisors allow in-depth topic research when needed, keep us grounded
Support of Senior Officers and all department VPs
Program Examples
Building healthy communities: Guiding Stars
Innovative building design: LEED store
Why Guiding Stars?
Shoppers want an easy way to quickly identify and choose foods that support a healthy lifestyle.
Why?
Consumer confusion regarding nutrition information in media, advertisements, food packaging and nutrition facts panels.
Epidemic levels of obesity & related chronic illness; Hannaford wants to be part of the solution for our shoppers.
In-store, point-of-purchase guidance to support choices
Grounded in Sound Science
Hannaford formed a panel of nutrition experts to translate proven science into an algorithm for rating foods.
• Harvard University• Dartmouth Medical School• Tufts University• University of California, Davis
• Edmund S. Muskie School of Public Service at USM
• Food, Nutrition & Policy Consultants
Advisory panel drew from research conducted by leadingnational & international health organizations in developing labeling practices and determining beneficial nutrient levels.
U.S Food and Drug AdministrationUnited States Department of Agriculture
The Algorithm(patent pending)
The formula creditsa product’s score for:
vitamins minerals
dietary fiber whole grains
The formula debitsa product’s score for:
trans fat saturated fat cholesterol
added sodium added sugars
The resulting score represents a weighted total of a product’s nutrient content and presence of all elements considered.
Keeping it Simple
Hannaford created a four-tier rating system to identify foods that meet varying levels of nutrient content, per the formula.
No stars Only foods that score above 0 receive stars
Good Nutritional Value
Better Nutritional Value
Best Nutritional Value
Stars by Category
What percentage of foods received stars?
26% of foods receive at least one star (approximately 8,700 of 33,500+ rated products)
By category, stars are:100% of fruits & vegetables51% of cereals50% of seafood23% of meat22% of dairy7% of soups7% of bakery
Program Communication
Stars appear on:Unit Price Tags (shelf labels)Scale labels & signs
If the product has no stars, it means one of two things:
Product does not meet the nutritional criteria for a star.Product is not rated (< 5 kcal, multi-packs, alcohol, etc.)
Brochures, flyers, TV/radio adswww.hannaford.com‘Ask the Nutritionist’
Sales and Movement
Movement of items with stars are up over the same period a year ago, especially in Center Store
overall packaged goods: 2.5xstarred meats & poultry: 2.5xwhole milk -4%; fat-free milk +1%starred cereals: 3.5xstarred yogurts: 3.5xfrozen dinners/entrees: 4.5x
Adding new starred items; reformulating private brandLicensing announced in November
LEED Store
Augusta, Maine
LEED Retail Pilot
goal of Platinum LEED certification
opening 2009
Why build green?
living laboratory
push ourselves to design and apply new technologies
establish best green building techniques to apply to prototype stores
reduce long-term operating costs
better environment to work and shop in
hub for community education about building green
Cony H.S. fixtures (99% recycled)95% demolition recycling goal
Re-used site (brownfield)
Urban area
Sustainable site designlower heat island effect
lower light pollution
Recycled/renewable/local materials
About the Store
Green roof
Solar
Geothermal
Daylighting
New refrigeration design
Reduced water usage by approx. 30%
About the Store
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