Sustainability In Action FMI Sustainability Summit June 18, 2008 Hannaford Supermarkets: Sustainability Strategy and Innovation presented by Megan Hellstedt
About Hannaford... 165 stores in Northeast U.S. (ME, NH, VT, MA, NY) More than 26,000 employees Owned by Delhaize Group, Belgium
Our Approach Hannaford has a strong history of working to enhance our communities and conserve natural resources while building a successful business model.
CSR Strategy People Products Planet
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 leading national & international health organizations in developing labeling practices and determining beneficial nutrient levels. U.S Food and Drug Administration United States Department of Agriculture
The Algorithm (patent pending) The formula debits a product s score for: trans fat saturated fat cholesterol added sodium added sugars The formula credits a product s score for: vitamins minerals dietary fiber whole grains 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 & vegetables 51% of cereals 50% of seafood 23% of meat 22% of dairy 7% of soups 7% 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, multipacks, alcohol, etc.) Brochures, flyers, TV/radio ads www.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: 2.5x starred meats & poultry: 2.5x whole milk -4%; fat-free milk +1% starred cereals: 3.5x starred yogurts: 3.5x frozen dinners/entrees: 4.5x Adding new starred items; reformulating private brand Licensing 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
About the Store Cony H.S. fixtures (99% recycled) 95% demolition recycling goal Re-used site (brownfield) Urban area Sustainable site design lower 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%