Feeding America: Together, We Will Solve Hunger January 17, 2014

Objectives • Present context on the issue of food waste in the US • Discuss Feeding America’s approach to recovering and distributing food waste to food insecure Americans • Share real life manufacturer and retailer examples • Discuss ways that you can participate

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Hunger in America • Today, more than 49 million Americans, 1 in 6, are facing hunger • More than 16 million are children facing hunger

• Food insecurity exists in every county in America

Food insecurity in the US remains at near record levels

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Feeding America’s mission

Our mission is to feed America’s hungry through a nationwide network of member food banks and engage the country in the fight to end hunger. Compared to four years prior, 1 MILLION MORE PEOPLE are seeking emergency food assistance from the Feeding America network each week 4

Feeding America’s impact 37 MILLION AMERICANS

9 MEALS supplied for each dollar donated

served annually, including 14 million children and 3 million seniors

3.2 BILLION MEALS

967 MILLION POUNDS

distributed annually

of fresh produce sourced by our network in FY13

203 FOOD BANKS

60,000 AGENCIES

in our network

distribute food from our food banks to their clients

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There are billions of potentially usable food waste pounds in the US food supply chain… >48B lbs of potential usable food loss pre-distribution…

…with >22B lbs. of additional opportunity in local markets

…and we must think innovatively about how to recover and make this waste usable for hunger relief

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Feeding America’s focus is to capture as much consumable food as possible US EPA Food Waste Hierarchy Source Reduction Reduce the volume of food waste generated

Feed Hungry People Donate extra food to food banks, soup kitchens and shelters

Feeding America’s network is the primary avenue for using food waste to feed people

Feed Animals Divert food scraps to animal feed

Industrial Uses Provide waste oils for rendering and fuel conversion; and food scraps for digestion to recover energy

Food Waste Diversion

Composting

FA wants to ensure that food fit for human consumption goes to people and not animals or compost

Create a nutrient-rich soil amendment

Landfill/ Incineration Last resort for disposal

Food Waste Disposal The portion of food waste that is sent to landfill or incineration

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Feeding America is a leading waste diversion partner across the food supply chain

2.2 billion pounds currently diverted from landfill = 1.9 billion meals to feed communities 1 Growers, packers, & shippers

Farming

Agri-processing

2 Manufacturing

Manufacturing

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Distributors

Retail

Food Retailers Food Service

Feeding America partners with top industry groups and companies in the retail, manufacturing, and produce spaces, among others 8

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Growers, packers, & shippers: FA rescued ~590M lbs. of produce from these sources in FY13 FA solutions

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Billions of pounds of edible produce are left in fields, culled for cosmetic reasons, and otherwise wasted during production and post-harvest FA works with growers, packers, and shippers in a variety of business models to recover produce Not only do donors receive tax benefits, clients get increased access to fresh fruits and vegetables

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Success story: Grower has donated ~2M lbs. of green beans as of fall 2013 Grower is major producer in the South

Produce sourcer worked with grower to capture supply of green beans suitable for donation •

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Crops grown include green beans, tomatoes, cucumbers, and peppers Has donated ~3.5M lbs. altogether of green beans and cucumbers

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Identified opportunity to divert off-spec green beans on production line Worked with engineers to separate and capture ~2M lbs. of edible produce from waste stream Prevented grower from dumping more beans, which makes soil too acidic for ideal growing conditions Arranged quick transport to food banks, often arriving less than 24 hrs. after harvest

Enabling grower to donate benefits both grower and the Feeding America network

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Manufacturers: FA’s longstanding manufacturing partnerships captured ~880M lbs. of food in FY13 FA solutions

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Feeding America was created largely to help manage waste partnerships with manufacturing donors FA captures out-of-spec, discontinued, and otherwise unsellable product that is perfectly edible Over the past five years, FA has rescued over 4B lbs. of food from manufacturers

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EVOLVING PARTNERSHIP MODEL

LEADERSHIP BACKING

VOLUNTEER AT FOOD BANKS

DISASTER RELIEF

CENTRALIZED PRODUCT DONATIONS

LOCAL PLANT PARTNERSHIP

SUPPLY CHAIN CHAMPION

AUTHENTIC PARTNERSHIP STORY

EMPLOYEES

COMMUNITY

CUSTOMERS

PARTNERS

INNOVATIVE PROGRAMS

Del Monte has donated over 47.6 million pounds of nutritious canned produce since 2000 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

3 truckloads of NEW 2012 Disaster Relief Supportcanned vegetables

for Hurricane Sandy relief

Field To Foodbank program delivered 15,000 cases to Wisconsin communities •

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Second Harvest FoodBank of Southern Wisconsin – Needed a steady supply of affordable shelf life food – Cost effective Number of Cases Produced – Long-term solution 40000 Del Monte Foods – Nine Del Monte Growers 30000 – Six Trucking Companies 20000 – One custom Harvest Company 10000 – Silgan can supplier Donations cut cost by 80% 0 2011 Carrots 2012 Carrots 2013 Green 2014 – Time and Corn Beans, Corn Estimated – Labor and Carrots – Product

Food Waste Reduction Initiative Food loss/waste occurs along all parts of food supply chain

Waste could be usable with some modification

Feeding America increases donation pool New "donatable" product

Production Post-Harvest Processing

lbs of waste produced before distribution in value chain from... • Out of specification or oversupplied crops in the field • Unused bulk ingredients • Out of specification materials in production process

Feeding America approaches growers and producers to capture upstream waste...

Collection

ReReprocessing packaging

lbs of waste could be re-processed by... • Freezing • Canning • Bottling • Re-packaging • By plants wanting to increase utilization

... matches waste to plants with excess capacity for processing...

Distribution of new product

...and distributes new product to food banks

The Grocery Purchasing Program acts as a non-profit broker 1. FA negotiates with vendors of core purchased items, enters pricing (with no markup) on Purchasing Portal – an intranet-based ordering tool

2. Food banks place orders via email or through the Portal, preferably in full truckload or shared FTL quantities to minimize delivery cost per case 3. FA sends orders to vendor in order to provide a single entity for billing, and invoices the food bank with net 30 payment terms o

Either Feeding America or the food bank arranges transportation

4. The vendor ships the item directly to the food bank(s)

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Partnership with Del Monte has generated over $6MM in sales since June 2010

Data source: Feeding America internal reports. Feeding America FY runs from 7/1-6/30. Sales numbers calculated on day order was processed (not delivered)

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Benefits of feeding the hungry vs. dumping

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Financial benefits / cost reduction – – –

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Heighten employee morale

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Price to toss vs. Price to sell to FA Non-cannibalizing secondary market sales

Capacity Considerations

Optimizing inputs to output; reduce waste Avoids potential negative PR for dumping edible food into landfill

Cost of raw material in Cost of byproducts out

Incremental Revenue Opportunity

Protects Corporate image –

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Environmental Stewardship –

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Best-in-class safe food handling procedures in place

Cost considerations – –

Safety & Security –

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Free pickup anywhere in the US within five days reducing freight and labor costs Save on landfill fees Positive financial return vs selling as animal feed

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Line throughput Packaging options – any downtime packaging options that are more cost effective

Sustainability considerations – – –

Healthy options Affordable and accessible food Offset landfill and hauling emissions

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Retail: Pounds from retail, the fastest-growing FA sourcing channel, reached ~1B in FY13 FA solutions

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>22B lbs. of food were lost in-store Feeding America and its network works with national, regional, and local retailers to collect as much of that waste as possible The Online Marketplace program is an initiative that connects agencies and food banks with foodservice, c-store, and other donors

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Q&A

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Contact us if you have further questions or want to continue the dialogue Name: Eric Davis Department: Retail Product Sourcing E-mail: [email protected] Phone: 312-641-6835 Name: Jerod Matthews Department: Manufacturer Product Sourcing E-mail: [email protected] Phone: 312-641-6533

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