I knew that Coca Cola had researchers. But beyond scientist hunched over chemicals and Bunsen burners thinking up things like Coke Zero and New Coke, they research trends and marketing. Soda is big business. So big, in fact that Coca Cola has a Retail Research Council that recently organized a forum in Bejing. They chose the topic more thatn a year ago and it was “Responding to the Growing Concern for the Environment.” Two things came out of this forum: Environmental concerns are critical to retail; and retailers want to learn more about environmental concerns and share their best ideas. They have published their report on the forum. The executive summary states:
Consumers are increasingly concerned about their own environmental impacts, those of the products they buy, and those of the companies at which they shop. These concerns focus on physical impacts such as global warming and on broader social issues such as how their purchasing actions and choices affect the livelihoods of people in other countries. Food retailers have an opportunity to respind to some of these customer concerns, and in ao doing, generate trust and loyalty among consumers.
Good news to me. I guess that we are all starting to realize that we are in this together. The three main areas that were addresses were: Reducing waste, reducing carbon and developing sustainable agriculture.
We have all heard the mantra: Reduce, Reuse, Recycle. Few people realize, however, that those three items are in order of importance. First, we need to reduce the amount of stuff we create so it never enters the waste stream to begin with. Then reuse everything we can to reduce demand for new products. Lastly, we recycle the old into new. What the forum was addressing was the environmental and actual business cost of dealing with waste. By rethinking how we deal with waste, we can make an impact. We are beginning to see retailers work with suppliers to reduce packaging. Less packaging, less waste. Furthermore, less packaging means less weight; less weight less energy to transport. Recyclable packaging is becoming more and more important.
We are all concerned about energy. Unfortunately it is the rising cost of energy that has prompted this concern. Still, however we got here, this concern is now reaching all levels. Retailers are beginning to see how important it is to conserve and recapture energy. Refrigerated cases are becoming more efficient. Condensation is being recaptured for waste water. New energy efficient stores are becoming the norm, not the unusual. The rising cost of energy has ade it imperative to create shopping environments that are both pleasant and efficient. Who needs cases to be lit up all hours? Now all types of refrigerated and freezer cases can be lit up only when customers are in proximity. Restrooms don’t need to have lights on when not in use. These simple ideas are becoming more and more common place. Truck fleets are being upgraded and better maintained, and schedules are being rewritten to make use of efficiency-all steps that reduce the inherit carbon footprint of the things we buy.
Sustainable agriculture is an idea whose time has come. Organic no longer means spotty produce that can only be found in health food stores. Every major retailer I know is offering some type of organic produce. Many are adding entire health food and organic sections. Furthermore, we as consumers are beginning to demand it. This demand has spawned the collaboration between suppliers and retailers; between farmers and suppliers. Growers who are committed to more sustainable techniques that protect the fertility of the soil and conserve potable water are being recognized. The rise in third party certification for all types of goods is simple evidence of these facts: organic, shade grown, bird friendly, Fair Trade.
All of this is good news. Even better is the that this news is coming from the big boys. Not only was the entire conference a Coke project, there were many heavy hitters in attendance. Not only were there addresses by industry leaders and government officials, but corporate leaders were cited and citing examples of what they were doing about this issues. Say what you will about Wal-Mart, they are developing a way to make bails of shrink wrap so they can be recycled. They are recycling old Wal-Mart vests, reducing packaging, treating waste water in some countries and starting entire recycling programs in others. ASDA is working toward zero waste by 2010 and reducing consumer packaging as well. UKROP is composting organic waste, diverting millions of pounds of waste from the landfill. They are big on bag reduction and offer discounts for reuse. They also introduced a mesh bag that uses less material to create. Food Lion, Giant Eagle, Krogers, SuperValue, Sobeys…the list goes on and on. Everyone is getting on board one way or another.
My favorite quote came from Sir Terry Leahy of Tesco’s:
“Any retailer who cherishes growth must act now.”
Tags: Carbon, conservation, Energy, environment, Green and Sustainable Design, recycling
