Hannaford Supermarkets: Sustainability Strategy and Innovation
Transcript of 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
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• 165 stores in Northeast U.S. (ME, NH, VT, MA, NY)
• More than 26,000 employees
• Owned by Delhaize Group, Belgium
About Hannaford...
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Our Approach
Hannaford has a strong history of working to enhance our communities and conserve natural resources while building a successful business model.
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People Products Planet
CSR Strategy
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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
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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
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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
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Program Examples
Building healthy communities: Guiding Stars
Innovative building design: LEED store
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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
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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
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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.
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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
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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
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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’
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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
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LEED Store
Augusta, Maine
LEED Retail Pilot
goal of Platinum LEED certification
opening 2009
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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
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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
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Green roof
Solar
Geothermal
Daylighting
New refrigeration design
Reduced water usage by approx. 30%
About the Store
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