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How Will Sustainability Goals of Big Retailers Affect F&F?

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Walmart has updated its sustainability plan to promote locally grown, fresh foods and encouraging suppliers to use 100% recyclable packaging. The company intends to produce half of its energy from renewable sources by 2025 and will reduce its greenhouse gas emissions by 18% and one gigaton by suppliers in 2030.

So what does this mean for the flavor industry? As Walmart pushes for a more sustainable, supply chain (with a goal to be the most affordable and sustainable by 2025), the trend is likely to affect competing retailers, consumer packaged goods companies and flavor houses. In order to keep up with the sustainability trend, the F&F industry is challenged to improve its formulations to keep up with retailers' agendas.

However, as more consumers are concerned with natural products, the industry is faced with pressing regulatory issues on ingredient safety. The Federal Drug Administration (FDA) is continuing to narrow down its definition of what is "natural," while the industry, retailers and consumers continue to hold their breath. How can the industry communicate that natural does not necessarily equate safe? These bridges in understanding could certainly affect the sustainability agendas of both industry and retailers alike.

 

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