Where Food Comes From, Inc. Acquires Upcycled Certified® Program as Reducing Food Waste Through Upcycling Becomes Fastest Growing Consumer Trend
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Insights
The acquisition of the Upcycled Certified® Program by Where Food Comes From, Inc. (WFCF) represents a strategic move in the food industry, particularly within the sustainable products segment. The significance of this acquisition lies in the growing consumer demand for sustainable and environmentally friendly products. The data indicating that 51% of consumers are more likely to buy Upcycled Certified products underscores a shift in consumer behavior towards sustainability, which can drive sales and potentially increase market share for WFCF in the long run.
Moreover, the integration of the Upcycled Certified® Program into WFCF's portfolio of certifications could enhance its brand reputation and provide a competitive edge. The ability to certify and verify upcycled products may attract new customers, including leading CPG companies and foster partnerships with retailers and foodservice operators. This could result in increased revenue streams and diversification of WFCF's business. The emphasis on cost-effective engagement with the standard also suggests potential operational efficiencies and scalability benefits for WFCF.
The acquisition of the Upcycled Certified® Program by WFCF is not only a business decision but also an environmentally impactful one. Upcycling, as a method to combat food waste, aligns with global sustainability goals and addresses critical issues such as food insecurity and resource conservation. The claim of diverting an average of 390,000 tons of food waste annually since the program's inception reflects a tangible environmental benefit. This progress contributes to the broader sustainability trends and can enhance WFCF's position as a leader in sustainable food practices.
From a sustainability standpoint, the expansion of the Upcycled Certified® Program could lead to a more significant reduction in greenhouse gas emissions and a decrease in the need for land and resources for food production, as highlighted by Project Drawdown. The potential for WFCF to influence the food industry's approach to waste can lead to systemic change, driving the industry towards a more circular economy model.
The acquisition of the Upcycled Certified® Program by WFCF has notable financial implications. The current valuation of the upcycled food industry at over $46 billion, coupled with the projected growth, indicates a substantial market opportunity for WFCF. The company's aim to make the Upcycled Certified standard ubiquitous and a meaningful component of its revenue mix suggests a strategic focus on tapping into a high-growth market segment.
However, investors should consider the costs associated with scaling the certification program and the integration into WFCF's existing operations. While the long-term revenue potential is promising, the short-term financial impact will depend on the effectiveness of the rollout and market adoption rates. It is also important to monitor the competitive landscape, as other players may enter the certification space, potentially diluting WFCF's first-mover advantage.
WFCF to Continue as Exclusive Certification Body for High Impact Solution to Food Waste with Plans to Accelerate Uptake
CASTLE ROCK, Colo., Dec. 27, 2023 (GLOBE NEWSWIRE) -- Where Food Comes From, Inc. (WFCF) (Nasdaq: WFCF), the most trusted resource for independent, third-party verification of food production practices in North America, today announced it has acquired the Upcycled Certified® Program from the Upcycled Food Association.
Upcycled Certified, the world’s first and largest provider of certification for upcycled food, has emerged as a dynamic force that is reshaping the way manufacturers valorize all parts of the food chain and avoid food waste. Upcycled Certified is now one of the fastest-growing certification seals in the food industry, providing consumers a tangible solution to shop sustainably. There are currently 93 companies with more than 480 products certified to the standard, including leading Consumer Packaged Goods (CPG) companies such as Del Monte and Kerry Ingredients. These products are responsible for diverting an average of 390,000 tons of food waste annually since the Program’s launch less than three years ago.
The acquisition comes at a time when upcycling is gaining in relevance and popularity. Over the last three years upcycling consistently tops food trends lists, including Food Tank, Kroger, Forbes and Whole Foods Market. Data from retail insights firm SPINs show that
“The upcycled food movement is closely aligned with broader sustainability trends in the United States and around the world,” said John Saunders, chairman and CEO of Where Food Comes From. “This acquisition enables Where Food Comes From to meet growing consumer demand for products that contain upcycled food ingredients. As the exclusive certification body for the standard since early 2021 – and as the most diverse food verification body in the country with more than 17,000 customers – we are ideally suited to take Upcycled Certified to the next level of growth. Our first order of business following the ownership transition will be to make it easier and more cost effective for brands, grocery retailers and foodservice operators to engage with the standard, ultimately expanding the offering of upcycled products and making it easier for consumers to eat well and be a part of the food waste solution. Our long-term objective is to make Upcycled Certified a ubiquitous standard and a meaningful component of our overall revenue mix.”
Angie Crone, CEO of the Upcycled Food Association (UFA), added, “UFA is thrilled that Upcycled Certified has become part of the Where Food Comes From family of certifications. Given the scale of the food waste crisis, growing demands on our natural resources, and increasing food insecurity, we need to work collaboratively and as quickly as possible to transform our food system into one where food is valued and never wasted. Due to its high profile in the food verification industry, we believe WFCF is the ideal partner to help further our mission to accelerate the upcycled food movement for impact at scale.”
The Upcycled Standard, developed by the Upcycled Food Association, is designed to reduce food waste by promoting the upcycled food economy. Upcycled products use ingredients that have full nutritional value and are safe but for various reasons would have gone to waste. Operators that grow, produce, manufacture, process, and trade in food, beverages and other food-related products are eligible to apply for Upcycled Certified. These operators must demonstrate that ingredients they handle have been procured and produced using verifiable supply chains.
According to Project Drawdown, decreasing food waste is the number one solution to reducing the need for land and resources used to produce food as well as the greenhouse gases released in the process. Yet, in the U.S. alone an estimated
Upcycled products in the US marketplace include food and beverages, dietary supplements, pet food, cosmetics, personal care products, and household cleaners. A Future Market Insights report estimates the value of the upcycled food industry to be more than
ABOUT WHERE FOOD COMES FROM, INC.
Where Food Comes From, Inc. is America’s trusted resource for third party verification of food production practices. Through proprietary technology and patented business processes, the Company estimates that it supports more than 17,500 farmers, ranchers, vineyards, wineries, processors, retailers, distributors, trade associations, consumer brands and restaurants with a wide variety of value-added services. Through its IMI Global, Validus Verification Services, SureHarvest, WFCF Organic, and Postelsia divisions, Where Food Comes From services verify food claims, optimize production practices and enable food supply chains with analytics and data driven insights.
About the Upcycled Food Association
The Upcycled Food Association is a nonprofit focused on reducing food waste by growing the upcycled food economy. Through research, standardization, and consumer education, the Upcycled Food Association is building a food system in which all food is elevated to its highest and best use. UFA’s member businesses represent the next generation of sustainable food. To learn more, visit www.upcycledfood.org
CAUTIONARY STATEMENT
This news release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, based on current expectations, estimates and projections that are subject to risk. Forward-looking statements are inherently uncertain, and actual events could differ materially from the Company’s predictions. Important factors that could cause actual events to vary from predictions include those discussed in our SEC filings. Specifically, statements in this news release about industry leadership and demand for, and impact and efficacy of, the Company’s products and services on the marketplace; expectations for growth and expansion of the Upcycled Certified program; expectations for continued consumer interest in upcycled products; plans to simplify and lower costs of compliance for Upcycled Certified; and plans to make Upcycled Certified a meaningful component of revenue mix are forward-looking statements that are subject to a variety of factors, including availability of capital, personnel and other resources; competition; governmental regulation of the agricultural industry; the market for beef and other commodities; and other factors. Readers should not place undue reliance on these forward-looking statements. The Company assumes no obligation to update forward-looking statements to reflect new information or developments. For a more extensive discussion of the Company’s business, please refer to the Company’s SEC filings at www.sec.gov.
Company Contacts:
Jennifer Moore
Marketing Manager
jmoore@wherefoodcomesfrom.com
Phone: 720-893-7324
Toll-free: 866-395-5883
www.wherefoodcomesfrom.com
Investor Contact:
Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
jay@pfeifferhigh.com
Direct: 303-880-9000
FAQ
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