-25% food waste intensity in own operations and in stores by 2025
50% of unsold food in internal operations redistributed by 2025
Our progress in 2022
Every year, as much as 1/3 of the food produced around the world is wasted, including 5 million tonnes in Poland. This is an environmental as well as an economic problem, driven by the increased use of resources and overproduction of waste.
To address the situation, in 2022 we set up a food-waste prevention programme, for which we agreed a strategic roadmap. We noticed the rising challenge of food waste that is impacted by the rapid growth of our chain. We have reviewed our own operations and reduced food waste intensity by 27%, and we have been testing new initiatives and will gradually implement them in the network. With a focus on customer satisfaction as well as waste optimisation, we are finalising a pilot phase for five initiatives across the whole product life-cycle, from supply planning right through storage, distribution and store implementation to sale or withdrawal.
In the first step, we have introduced a number of stock-management initiatives in our distribution centres, allowing us to increase delivery efficiency and flexibility. Thanks to the introduction of GS1 bar codes in recent years, our franchisees can now analyse inventory in their stores in real time. They now know when the best-before date of own brand products is approaching, meaning they can reduce their prices or change their display in store. As a result, the store reduces possible losses, and the customer can buy a high-quality product at an attractive discount.
Products with a short best-before date are donated to Caritas, to which they go directly from our logistics centres, and to the Federation of Polish Food Banks and the Camillian Social Welfare Mission. From the branches of these non-governmental organisations, food products are then delivered to local communities through various facilities and institutions, including canteens, social therapy centres and shelters for homeless people. These organisations also provide food as packages directly to their beneficiaries, including specific individuals and families. In 2022, the Żabka chain donated a total of close to 403.4 tonnes of food to public-benefit organisations in this way.
1.2 Food waste prevention
Food waste reduction in own operations
According to UN’s agenda, the amount of food wasted shall be reduced by half by 2030 (compared to 2014). As a dynamically growing chain with an annual growth rate with more than one thousand new stores, we face challenges connected with managing food waste. Therefore, we are actively seeking solutions that will enable us to reduce food waste in the whole value chain. In 2022 we looked closer at our own operations and implemented effective improvements, which led to 27% reduction of food waste intensity in our own operations. Having in mind goal of reduction -25% till 2025 we don’t stop and plan actions to reduce food waste further till 2030 to be able to reach UN Goal. We expanded our approach to food waste by testing new initiatives in areas with highest losses and now we tend to minimise the causes of waste at each stage of the process, from supply planning, through storage to distribution. We set a reporting process focused on food waste reduction, including daily reporting of reasons for food liquidation and products at risk of expiry. Moreover, thanks to a close cooperation with our suppliers we managed to optimise stock levels of fresh produce and implemented additional quality verification for fruits and vegetables with the possibility of longer release to franchisees without loss of quality.
1.2 Food waste prevention
We made the decision to end the pilot of the “Good Package” program at the end of July 2023. This was one of the elements of the comprehensive “WE DON’T WASTE” program, as part of which Żabka is testing various solutions to prevent food waste throughout the product life chain. We are currently noticing increased interest in the stationary sale with special “WE DON’T WASTE” tags for products with expiration dates.
Following the successful completion of the pilot launched at the end of 2021, in August 2022 we expanded the “Good Package” special service to reach more customers through additional stores in Poznań and Wrocław. It was available in more than 1,000 Żabka stores.
“The Simple Solution to Non-Waste” service allowed customers to purchase for half the price a package, consisting of two or three wholesome products, on their last day of shelf life. Interestingly, before purchasing, customers only knew the category of products included in the package and knew that the “surprise package” came in Vegan, Vege and Mix variants, so as to satisfy every consumer’s appetite. Since its launch, the popularity of the service has grown, which led us to decide to increase the number of outlets where it is available.
The benefits were not only to counter food waste. It is also lowering the cost of living and an opportunity for franchisees to increase sales and reduce the cost of disposing of food after its expiration date.