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UNILEVER : Combatting

Global Food Waste

Presented by
Manish Pandey
We live in a world where a significant portion of the population is
starving, but nearly one-third of all food produced is wasted. This is
human disgrace, how can we say this is sustainable????

~Pier Luigi Sigismondi, chief supply chain officer


Unilever : The Brand

Formed in 1929 through merger of 2 Dutch companies


Since inception Unilever supported a broad social purpose
Their early emphasis was on soap
In 20th century they moved to food category
In 2012 company was named as leading company in DOW JONES
SUSTAINABILITY INDEX
49.8 billion pounds in 2013 with 1000 brands
Operates in 190 countries with 100,000 suppliers
Unilever Sustainable Living Plan
In 2010 company introduced Unilever Sustainable Agriculture Code
Mandatory , Must and Should for suppliers
Like MANDATORY requirement prohibited animal abuse, MUST keep
record of irrigation water quality test.
To be truly sustainable our policy should deliver triple bottom line value-
economic, environmental and social
Unilevers supply chain to sustainably source all agriculture products
Planned to work with 500,000 smallholders farmers
Global Food Waste
Food and Agriculture Organization described food loss as the decrease of edible
food mass available for human consumption throughout the different segments of
supply chain
One-third of the total food produced went unconsumed (1.3 billion metric tons)
waste
Picked before it ripened
Farm
Over production
21%
32% Handling and
storage Insufficient harvesting
12% Processing and
packaging
Perished before it was transported
12% 23%
Distribution Insufficient infrastructure
Consumer
household
Food waste at Unilever
27% of firms revenue and 41% operating profit is by food category
19% of firms revenue and 11% operating profit is by refreshment category
Both these together contribute 63% of Unilevers waste
Unilever is more efficient than most primarily because most of the foods are
processed so less perishable
Unilever has worked on building efficiencies on supply chain and by incentivizing and
supporting suppliers to reduce waste
Unilever decided to focus first on 3 major waste sources i.e.. Tomatoes, Sugar and Tea
They focused on improving their own operation and through R&D and new
technologies
Managing upstream Sources of food

Tomatoes
Worked with 15 suppliers who contributed 85% of its supply
Unilever purchase 3% of worlds tomato production
27% of their purchase goes waste
Waste 39% Fields not being harvested because of lack of demands or
bad weather
18% processing and packaging
26% 12% storage post harvest
39%
5%
5% during distribution
12% 26% end customers
18% Tomato grading and waste
Tomato and HUL
Sugar
By 2013 company was sustainably sourcing 49% of its sugar
Targeting for 100% sustainable sourcing by 2020

waste 45% during processing and packaging


26% consumers
16% farm
8% distribution
8% 5%
5% post harvest and storage
16% 45%
Use of molasses and bagasse in biofuel or cattle feed
26% Educating and training farmers
By making investment in efficient machinery
Tea
Owns several tea brans like Brookbond, lipton and PG tips
In total firm purchases or owned worlds 12% of tea production
Tata global beverages owns 3.1% and Associated British foods owns 2.5%

waste 41% weather damage and insufficient harvesting method


32% when consumers make more tea than they drink or
threw away before expiry date
6% 13% lost during distribution
8%
8% processing and packaging
13% 41%
6% storage and post harvest

32% Shallower bins for withering process


Two level storage in transportation
Managing downstream sources of food waste
Working with customers
Mainly in countries where global economic recession persisted
Compete on solution rather than just on price
Worked with food service customers such as restaurants and hotels
Unilever Food Solution launched an app in the UK name Wise up on Waste directed towards
professional chef
Working with consumers
More than 20% of food wastage is after retail
In UK alone value of food thrown out each year is 700 pounds, by a family with children
Encouraged consumers to use left over food using Unilevers food products like Knor soups
In a trial practice with 12 British and Irish family, Unilever was successful in reducing their waste by
25%-33%
Lunched Live Better Challenge in partnership with The Gaurdian, and saved 10metric ton food waste
was prevented by participants in a week
Making Internal Changes
Product left in packages
Developed easy to evacuate packaging
Packaging as per changing demographics

Impact of waste reduction on sales


Sales would fall down
This is an opportunity for brands to partner with consumers to live sustainably
It reduces wastes and increases revenue

Also worked with competitors to reduce waste


Broader Mandates
By 2014 company will become the first largest FMCG with zero waste to land fill
Encourage all stakeholders for zero waste value chain

Building on Impact
Despite of critics on overall revenue, Unilever CEO said we have to deliver rather
than responding to critic
Sigismondi said Food reduction will ultimately be driven by consumer demand
Unilevers supply chain became one of the best recognised in the word
Long term success ultimately relied on continue participation of all the members of
the value chain.
THANK YOU!!!!