Kroger Unveils New Produce Supplier Biodiversity Goal

Rhea-AI Summary

Kroger Co. announces a new sustainability goal to advance its fresh produce supply chain by requiring all fresh produce suppliers to use Integrated Pest Management practices by 2028 or 2030, based on grower size. The goal aims to protect pollinators and biodiversity, reflecting Kroger's evolving approach to sustainability and resource conservation. The company worked with the Sustainable Food Group to develop the goal and consulted best practices to ensure it was impactful and achievable.

Insights

Environmental Sustainability Expert

Implementing Integrated Pest Management (IPM) practices signifies a strategic shift towards sustainable agriculture that could influence the entire fresh produce industry. IPM aims to reduce the reliance on chemical pesticides, which can have harmful effects on pollinators like bees and butterflies. Pollinators are critical for the pollination of many crops and their decline has been a growing concern. Kroger's initiative could set a precedent for other retailers, potentially leading to widespread adoption of more environmentally friendly farming practices.

For stakeholders, this move suggests a long-term vision that prioritizes environmental health alongside profitability. While this could lead to increased costs in the short-term due to the transition to certified sustainable practices, it may also result in a more resilient supply chain and improved brand image. In the long-term, consumers may benefit from healthier food options and a reduced environmental footprint of their purchases, which can strengthen customer loyalty and potentially increase market share for Kroger.

Supply Chain Analyst

From a supply chain perspective, Kroger's decision to require IPM practices from its suppliers could lead to significant operational changes for produce growers. Larger growers are given a shorter timeline to comply, which may put pressure on their operations and resources. Small growers have a longer timeframe, reflecting an understanding of their potential constraints and limited capacities. However, the staggered deadlines could create temporary disparities in the cost structures and competitive dynamics among suppliers.

Suppliers will need to achieve one of several sustainability certifications, which may necessitate investment in new technologies, training for staff and alterations to current farming practices. This could initially disrupt supply and affect pricing. However, if managed effectively, it could lead to a more efficient and resilient supply chain that is less susceptible to the risks associated with conventional farming practices, such as pesticide resistance and soil degradation.

Market Research Analyst

The consumer demand for sustainable and organic products has been on the rise and Kroger's initiative aligns with these market trends. By committing to sustainable practices, Kroger not only addresses the environmental impact but also taps into the growing segment of consumers who are willing to pay a premium for eco-friendly and ethically produced goods. This could enhance Kroger's competitive position in the market.

Furthermore, the initiative may influence consumer perception and brand reputation positively. As sustainability becomes a more significant factor in consumer decision-making, Kroger's proactive stance could lead to increased customer loyalty and attract new customers who prioritize environmental considerations in their purchasing decisions. The move may also inspire other companies to adopt similar practices, potentially leading to a shift in industry standards towards greater sustainability.

Change will protect more pollinators, create more sustainable produce supply chain

CINCINNATI, Jan. 26, 2024 /PRNewswire/ -- The Kroger Co. (NYSE: KR) today announced a new goal to advance sustainability in its fresh produce supply chain, further protecting pollinators and biodiversity. Kroger will require all of its fresh produce suppliers to use Integrated Pest Management practices for all products supplied to Kroger by 2028 or 2030, based on the grower's size. Medium- to large-sized growers will be expected to meet the goal by the end of 2028, and small-sized growers by 2030.

"We depend on a healthy and resilient agriculture supply chain to keep bringing fresh, affordable food to more of America," said Lisa Zwack, head of sustainability for Kroger. "This new goal reflects Kroger's evolving approach to sustainability and resource conservation, including setting clear expectations with growers to support the transition to more sustainable fresh food production."

Protecting biodiversity is an important part of Kroger's community impact strategy, Thriving Together. By encouraging growers to use less pesticides, the company is taking meaningful steps to improve pollinator health outcomes. This work builds on Kroger's existing focus on conserving natural resources in our supply chain, including through our seafood sustainability and no-deforestation commitments.

Kroger worked with the Sustainable Food Group, a branch of IPM Institute of North America, to develop the goal and roadmap to compliance. The company also consulted current best practices and interviewed suppliers to ensure the goal was both impactful and achievable.

"We are incredibly proud to have supported Kroger in the development of this policy, which will drive positive outcomes for biodiversity, including pollinator and broader agroecosystem health through adoption of robust Integrated Pest Management and other sustainable agriculture practices across fresh produce supply chains," said Ariel Larson, Senior Project Manager at Sustainable Food Group.

Suppliers can comply by achieving one of the following certifications:

• Bee Better
• Biodynamic
• Certified Sustainably Grown
• Equitable Food Initiative
• Fair Trade International
• Fair Trade USA
• GLOBAL G.A.P.
• LEAF MARQUE
• MPS-ABC
• Rainforest Alliance
• Regenerative Organic
• Sustainable Food Group Sustainability Standard
• USDA Organic, or international equivalents

Kroger will continue to expand its focus on sustainable agriculture, biodiversity and conservation. To take additional steps toward a more sustainable food system, the retailer will conduct a supply chain biodiversity risk assessment, pilot biodiversity metrics with row crop and specialty crop suppliers and conduct targeted climate risk assessments within its supply chain.

To learn more about Thriving Together, download Kroger's 2023 report.

About Kroger
At The Kroger Co. (NYSE: KR), we are dedicated to our Purpose: To Feed the Human Spirit™. We are, across our family of companies nearly half a million associates who serve over 11 million customers daily through a seamless digital shopping experience and retail food stores under a variety of banner names, serving America through food inspiration and uplift, and creating #ZeroHungerZeroWaste communities by 2025. To learn more about us, visit our newsroom and investor relations site.

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SOURCE The Kroger Co.

FAQ

What is Kroger's new sustainability goal for its fresh produce supply chain?

Kroger announced a new goal to require all fresh produce suppliers to use Integrated Pest Management practices by 2028 or 2030, based on grower size, to protect pollinators and biodiversity.

Who did Kroger work with to develop the sustainability goal?

Kroger worked with the Sustainable Food Group to develop the goal and consulted best practices to ensure it was impactful and achievable.

What are the certifications suppliers can achieve to comply with Kroger's new goal?

Suppliers can comply with Kroger's new goal by achieving certifications such as Bee Better, Biodynamic, Certified Sustainably Grown, and others.