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Retail Store Donation Programs

Retail Store Donation Programs . TFBN Food Resource, Operations & Agency Relations Conference Austin, TX - April 2014. Today’s Agenda. The Landscape Retail Partnerships Dashboard Metrics HEB: Survey Snapshot Open Discussion. The Landscape. Channel Trending . Channel.

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Retail Store Donation Programs

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  1. Retail Store Donation Programs TFBN Food Resource, Operations & Agency Relations Conference Austin, TX - April 2014

  2. Today’s Agenda • The Landscape • Retail Partnerships • Dashboard Metrics • HEB: Survey Snapshot • Open Discussion

  3. The Landscape

  4. Channel Trending Channel Meals by Channel 3.6 Billion* New Frontiers SNAP 3.2 Billion Purchased Federal Commodities Manufacturing Meals (MM) Retail Fresh Produce * Feeding America is currently revising our 2018 meal goals

  5. Sourcing Costs 3.2 Billion Meals Sourced in 2013 Food Source Cost Per Meal % of FA Food Stream % Trend Federal Commodities* $0 21% Manufacturing $0.04 23% Produce $0.17 15% $0.24 27% Retail $0.73 14% Purchasing Cost per meal is the dollar equivalent of resource needed to source and distribute food *Rapid reduction in availability

  6. Retail SDP Positioning • Incremental financial benefit from donating rather than dumping product • Reduction in waste disposal costs • Increased employee satisfaction from throwing less product away • Enhanced brand value through association with donation program • Helps achieve sustainability commitments Our goal is to be a partner that creates a win-win opportunity Store Donation Program has grown to reach over 1B lbs. of edible, unmarketable product… …largely because it provides a variety of benefits to the donors. MM LBS 28% CAGR from FY’08 - FY’13

  7. Retail SDP Product Mix *2013 retail receipts from 105 food banks

  8. Retail Environmental Changes

  9. Retail Partnering Realities • Retailers are becoming more demanding in their partnering expectations, looking to us as a “business”, and as vendors • Retailers are looking for holistic relationships that provide the best value to their businesses • Retailers are concentrating more waste control and community impact, than financial tax incentives • Retailers are looking for unique models and products to capture additional consumer market share (focused ethnicity, wider selection, higher standards, non-traditional, etc.)

  10. Retail SDP Additional Points • Reporting is Critical • Corporate Retail is pushing for more, better metrics. • Consistency is needed for good analysis. • Agency partners need to be held accountable. • Agency Partnerships Continue to Grow • Estimated at 30% of all relationships. Higher yield assumptions. • FBs need to be diligent in monitoring and oversight. • Impact on larger relationships can be critical. • Strategic Review of Pickup Frequency is Needed • Assumption is that more pickups yield more pounds… to a point. • More frequency may not be needed for all stores. • Ask pressing questions- get deep in the review, get strategic.

  11. Retail Partnerships

  12. Nationally Coordinated Retail SDPs • Walmart (Walmart/Sam’s Club) • Kroger • Delhaize • Albertsons • Target • Supervalu • Publix • Winn Dixie • Safeway • BJ's Warehouse • C&S Grocery • UNFI Top 5 donors represent 82% of all retail donation volume in 2013 • Big Lots • Walgreens • CVS • Costco • SaveMart • Brookshire’s Grocery • A&P • Sprouts 14,000 Stores participating nationally (includes national, regional and local partners)

  13. Retail Partnerships (cont.) • Walmart- Updated playbook, rotisserie authorized, dry volume increasing. • Sam’s Club- Possibility of renewed discussions on additional categories. • Kroger- Produce continues to be rolled out slowly by market with varying results. Formal re-launch efforts slowed due to corporate travel cuts. Joe Maggard (Shrink) is corporate contact. • Albertson’s/ Safeway- Both companies are still separate- still should be treated as competitors.  Some encouraging work within some Albertson’s divisions, pilot discussions are continuing with Safeway and a CA food bank. • Target- Installation of new scanning program coming this year- should increase donations through less confusion at decision point. Working on program re-launch (tentative June/July) with emphasis on Target personnel visiting FBs for refresher and education.

  14. Retail Partnerships (cont.) • Supervalu (SAL)- Past Corporate contact is back, and renewed discussions around expansion of store program to Corporate SAL stores. • UNFI- Distributor for Whole Foods- Conducted recent food drive in stores covering TX, OK, LA, AR. Affected food banks will hear from UNFI to coordinate pickup of resulting allocated Whole Food product donations. • Big Lots- New Corporate contact, seems receptive, trying to schedule meeting. • Walgreens- DC and RC only, recent T2T call on partnership expansion. Network still struggles to move non-food. • CVS- For those with DCs or RCs, recommend on-site visits and opportunistic discussion. Network still struggles to move non-food.  

  15. Retail Partnerships (cont.) • Costco- Same, no change. • Brookshire’s Grocery- Same, no change. Need your TX help! • Sprouts- Gradual growth, with additional store focus in existing TX markets, i.e. new markets like El Paso. A good partner. • Future • Aldi-Initial discussions, FB feedback survey, Corporate to pilot in MI. • Family Dollar- Requested meeting this month with FA. • Fresh Market- NIFB is working to find right operational contact to engage. Local host FB had no contacts.

  16. Dashboard Metrics

  17. Dashboard Metrics Hungernet Network Activity Data Center Weblink: https://www.hungernet.org/planning/data/Pages/foodretail.aspx

  18. Dashboard Metrics (cont.) Through 1/31/14, by PU Date

  19. HEB: Survey Snapshot

  20. HEB: Survey Snapshot October 2013: 15 FB responses (including 2 FBs w/ no stores) • Who is your main point of contact at store level? • 7 FBs indicated all personnel at store level • Other FBs noted only 1 personal contact • 1 FB indicated Eddie • How many stores do you pick up from? • All FBs are picking up at some stores • 7 food banks indicate awareness of affiliated agencies picking up • 4 food banks indicate awareness of non-affiliated agency relationships picking up • What is the frequency of pickups at HEB? • A wide variation in pick up frequencies (1 to 5 days) • 7 FBs indicated they pick up 5+ days weekly at some, or all of stores • 4 FBs pick up 2-3 days weekly • 2 FBs pick up only 1 day a week • 1 FB mentioned the pick up of bread only, 7 days a week

  21. HEB: Survey Snapshot (cont.) • What HEB product categories are being received? • How satisfied are you with the HEB store donation program? • 6 FBs are very satisfied with the overall store program • 7 FBs are somewhat satisfied with the overall store program • What are the top opportunities that would help to better the store donation program? • Additional product authorization • Agency partner authorization for pickups • Corporate partnership endorsement and push support • Better communication and training Thoughts?

  22. Open Discussion

  23. THANK YOU! Kurt Welz Retail Product Sourcing Manager Feeding America

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