Food Service Competitive Landscape, Part 2

Part
01
of one
Part
01

Competitive Set Part 2, Executive Summary

The following is a summary of the findings on Stratas Foods, T. Marzetti, Bolthouse Farms, Heluva Good!, Kraft Heinz, Litehouse, Smucker's, and Unilever. The findings are organized by industry and by company.

Industry 1: Food Service

Stratas Foods

1. Overview of Sustainability Efforts

  • The company culture at Stratas Foods LLC embraces good stewardship of the environment through efforts at sustainability.
  • David Tillman, vice-president of sales and marketing stated in a 2019 article in Bake Magazine that the ingredients and technology used at Stratas are more sustainable for the global environment.
  • As a member of the Roundtable on Sustainable Palm Oil (RSPO), Stratus Foods promotes RSPO programs to its customers supporting the production of sustainable palm oil.
  • Stratas only sources palm oil from RSPO members, illustrating Stratas' vested interest in proliferating sustainable palm oil to the marketplace.
  • Stratas expects to be using 100% RSPO-certified sustainable palm oil and oil palm products from any supply chain by 2015 in its own brand products.
  • By 2030, Stratas expects to be using 100% RSPO-certified sustainable palm oil and oil palm products from physical supply chains in its own brand products.
  • Sustainability of palm oil is insured when a single certified source is identity preserved and segregated and/or mass balanced — that is, mixed or kept separate from ordinary palm oil.
  • Stratas seeks to do business with suppliers sharing their commitment to sustainable business practices.

2. Overview of CSR Efforts

  • Stratas Foods supports local communities where they do business through charitable giving and support of non-profits.
  • Through the establishment of policies and programs, Stratas supports local charitable organizations, provides safe and healthy work environments, encourages employees to live healthy lifestyles, and seeks to reduce their overall impact on the environment.
  • Habitat for Humanity is one of the organizations Stratas employees volunteer their time to serve their community.
  • Stratus Serves is the employee-led team actively seeking opportunities for volunteerism. The mission of Stratas Serves strives to establish strong community relationships to insure families do not go hungry, neighbors are safe and healthy, and children receive a good education.
  • Employees volunteer time and money to many causes, including Boys and Girls Club, Food Bank, Junior Achievement, and Ronald McDonald House of Memphis.
  • Stratas employees volunteer and sponsor Neighborhood Christian Centers, Inc., a Memphis nonprofit dedicated to guiding those in need toward stability and sustainability.

3. Analysis: Stratas' Focus on Embedding Purpose

  • Sustainability is front and center in Stratas Foods' Code of Conduct.
  • Stratas embeds its sustainability and CSR commitments and principles in its stated company vision and culture, as well as in its policies and programs.
  • The company embeds its dedication to community stewardship through its Stratas Serves team dedicated to charitable giving and volunteerism in the local communities.
  • For the third straight year, Stratas Foods received the Quality and Service Award by Dot Foods in 2018.​Dot Foods is the nation's largest food industry redistributor, and its award recognizes Stratas as its top-performing manufacturer partner for quality and service.

T. Marzetti

1. Mission

  • The company strives to discredit the fact that healthy eating amounts to sacrificing eating deliciously.

2. Purpose

  • T. Marzetti is a part of Lancaster Colony company and is a $1.2 billion food specialty company that deals with different food varieties for food service and retail markets.
  • The company's main purpose is to serve good food to its customers and, since its inception in 1896, it has focused on the same goal of delivering delicious snacks to its customers.

3. Vision

4. Overview of Sustainability Efforts

  • Marzetti has put a lot of work on sustainability focusing especially on waste reduction and recycling, increasing efficiency and conserving natural resources.
  • The company has invested in sustainability and environmental protection using new technology.

5. Analysis: Embedding Purpose in Operations Versus Sustainability Initiatives

  • The company is committed to providing quality services and products through innovation and as its main purpose has opened an innovation center at Green Meadows, Ohio.
  • The innovation center is an asset to help in bringing together talents, resources and ideas to grow innovation.
  • The company outsourced a new agency, Cramer-Krassselt, for advertising, brand planning, social media and public relations.
  • Recently the company has introduced an improved ever-popular Veggie Dips recipe, which fits well with their aim of not compromising good food taste for healthy eating.
  • On the other hand the company is still committed to sustainability that include reducing energy consumption, reducing freight and resource conservation through utilization of cube, recycling physical waste and reducing pollution by managing fleet.
  • T. Marzetti has also worked on clean products and simple but delicious ingredients for its costumers.
  • The company, therefore, works on its purpose alongside sustainability in all its operations and processes (production to service delivery).

Industry 2: Retail

Bolthouse Farms

1. Mission

  • Bolthouse Farm's mission is to inspire a new revolution while changing the way people partake in healthy foods and drinks.

2. Purpose

  • Bolthouse Farm's purpose is the commitment to the production of healthy products and delivering this promise in its daily operations.

3. Vision

  • The company’s vision is to create a plant-powered food economy and focusing on how it can be a leader in that field.

4. Overview of Sustainability Efforts

  • Bolthouse is continuously driving for more sustainable practices by use of agricultural methods that prevent soil depletion. Over-farming land for a longer time will lower productivity. Bolthouse takes the responsibility to treat earth and ensure all of its products are grown, processed, and delivered most sustainable means.
  • To mitigate environmental impact, Bolthouse Farms is committed to responsible energy use by deploying clean, efficient, reliable, and sustainable energy by use of a biomass plant in a bid to offset carbon dioxide emitted into the environment.
  • In 2018, Bolthouse partnered with Danbury Conn, a company dealing with the provision of clean energy. The twenty-year partnership deal provides Bolthouse with FuelCell Energy to reduce energy use and bring down greenhouse gas emissions. FuelCell Energy converts natural gas into water, heat, and electricity by the use of electrochemical reactions.
  • In 2018, Bolthouse Farms unveiled its plan to partner with Case IH Company in using autonomous (driverless) tractor during farming. This technology will be beneficial in minimizing resources used in farming, increasing efficiency, and increase productivity.

5. Overview of CSR Efforts

  • The company has an integrated CSR approach to consumers, employees, environment, and the community.
  • The brand is a proud supporter of ReThink Food, a non-profit that works to obtain excess and ugly foods from restaurants, farms, grocery stores, events, and other food purveyors and transforms it into ready-to-eat meals that are then donated to people in need. They are committed to giving excess food a second purpose and help educate and change the conversation surrounding food waste.
  • Bolthouse has built relationships with nutritionists and universities like the University of Texas to learn how the body absorbs different forms of protein. And ultimately, it’s about providing consumers with more exciting products and better, healthier options and lifestyles.
  • Bolthouse Farms is in collaboration to fight world Hunger. For example, in 2018, they partnered with the soul food project, where it will donate towards the plan for the next two years. The campaign is aimed at providing healthier food options
  • Bolthouse continues to pump resources and money into its research and development center to meet the demand of consumer's desires. In 2017, Bolthouse Farms released the company's first line of refrigerated organic dressings, created with first-rate ingredients like Asiago, blue cheese, avocado, and raspberry juice. Accelerating innovation across fresh-refrigerated categories to meet evolving consumer preference for healthier options and increased demand for organic food.
  • Bolthouse Farms practices sustainable farming by making use of the entire carrot from tip to greens. Even the leftover carrot tops are used as fertilizer in the fields. They have a new logistics program, recyclable packaging, and transparency in the overall supply chain — a commitment to producing healthier food products.

Heluva Good!

1. Overview of Sustainability Efforts

  • The Heluva Good! brand does not appear to have sustainability standards outside of the overarching HP Hood LLC group.
  • HP Hood has a long-standing focus on environmental sustainability that has become more formalized over time.
  • The company established a Green Team to reduce resource wastage, raise awareness of sustainability internally and externally, and monitor sustainability efforts' progress. This team focuses its efforts on water usage, electric usage, truck payloads, fuel usage, and recycling.
  • The company has created guidelines to ensure that its vendors and suppliers engage in sound environmental practices.
  • HP Hood also reviews its marketing guidelines periodically and updates them to reflect new technologies and customer feedback.

2. Overview of CSR Efforts

  • The Heluva Good! brand does not appear to engage in CSR efforts outside of the overarching HP Hood LLC group.
  • HP Hood LLC's community social responsibility efforts are focused on organizations that assist children or families in the areas of nutrition and health. The company proudly supports The United Way, The Red Sox Foundation, The Jimmy Fund, Ronald McDonald Houses, and Birthday Wishes. It also funds educational programs for families at the Boston Children's Museum and the Children's Museum of Maine.
  • The company supports local food banks through America's Second Harvest.
  • It provides product donations to community programs and events that educate families or children in the areas of health and nutrition.
  • HP Hood's marketing policy guidelines state that the company's communications should not undermine an active lifestyle or a healthy, balanced diet. The company will not condone or encourage excessive consumption of any food or beverage.
  • All communications must be directed to those over the age of 12 years. The company will not advertise in media that is primarily geared toward children under that age, and participation by minors in any promotion requires parental consent.
  • HP Hood has made efforts to eradicate slavery and human trafficking from its supply chains.
  • The company requires its dairy suppliers to treat animals humanely.

3. Analysis: Heluva Good! Focus Points

  • The Heluva Good! brand does not appear to have any explicit focus points in the areas of sustainability or CSR outside of the HP Hood brand family. It may have more of an operational focus.
  • HP Hood appears to focus almost equally on sustainability efforts and CSR efforts. Both areas show significant commitment, and HP Hood has crafted policies related to each. However, it seems that the company embeds its purpose somewhat more fully in CSR than in sustainability.
  • The company says it has been committed for 170 years to supporting the communities it conducts business in. This is longer than their formal sustainability efforts, though HP Hood claims that a culture of sustainability existed within the company prior to formalization.
  • HP Hood touts its dairy products as important in promoting health, and this view drives the company's CSR efforts. Sustainability, while affecting multiple levels of operations, is not as clearly enmeshed with the product the company produces.
  • HP Hood's CSR efforts have more diverse facets than its sustainability efforts. These CSR initiatives include community outreach, educational efforts, charitable donations, ethical supply lines, humane animal treatment, and responsible advertising.

Kraft Heinz

1. Mission

  • Kraft Heinz's mission is to provide "high quality, great taste and nutrition for all eating occasions whether at home, in restaurants or on the go."

2. Purpose

  • Kraft Heinz's purpose is to "provide high quality, great taste and nutrition for all eating occasions whether at home, in restaurants or on the go."

3. Vision

4. Overview of Sustainability Efforts

  • Kraft Heinz asserts on its website that it has "implemented a universal process to achieve our sustainability goals of reducing greenhouse gas emissions, energy consumption, solid landfill waste and water consumption." From its 2015 baseline, the company has pledged to achieve the following goals in its manufacturing facilities by 2020: (1) Reduce greenhouse gas emissions by 15%, (2) Reduce energy consumption by 15%, (3) Reduce water consumption by 15%, and (4) Reduce solid waste sent to landfill by 15%.
  • The company claims in its 2017 report to have reached the following goals: 100% gestation stall-free housing for pregnant sows, sourcing 100% of eggs from cage-free hens, 70% compliance with global nutrition guidelines, sourced 100% sustainable palm oil.
  • The company announced in 2018 a new goal to make 100% of its packaging recyclable, reusable or compostable by 2025.
  • In 2018, the company announced a goal to increase its use of recycled materials in its packaging.
  • The company pledged in 2018 to "set science-based emissions reduction targets" in its supply chain.
  • In 2018, the company announced that it had "exceeded its commitment to reduce the weight of its global packaging by 50,000 metric tonnes."
  • In its 2018 announcement of sustainability goals, the company included a long disclaimer with 16 factors that might prevent it from reaching its goals.
  • The company lists 25 brands on its website, each of which requires packaging in paper and/or plastic. Many of the products are single-use items, including Kool-Aid, Smart Ones, CapriSun, Lunchables, and some Kraft Mac & Cheese sizes.
  • A 2019 FoodDive article states that Kraft Heinz has over 200 brands.

5. Overview of CSR Efforts

  • Kraft Heinz has committed "to establishing a sustainable supply chain and responsible farm-to-market ingredient and material sourcing policies." These efforts are part of its corporate social responsibility activities.
  • In 2019, Kraft Heinz Europe signed the European Chicken Commitment. It stated that by 2026, Kraft Heinz Europe "will require 100% of the fresh, frozen, and processed chicken in our European supply chain to meet ... [several] standards of the European Chicken Commitment," including improvements in lighting, density, perch space, and stunning procedures. The company "is committed to improving the welfare of chickens" among other animals.
  • The company acquired the assets of the Ethical Bean Coffee Company in 2018. Ethical Bean Coffee "is a leading roaster of 100% fair trade, certified organic coffee", and "is committed to social responsibility, global awareness and environmental accountability."
  • In its promotional materials, Kraft Heinz stated, "We believe quality coffee starts at the source, which involves responsible sourcing and supporting the hard-working dedicated farmers at origin. The acquisition of Ethical Bean Coffee reinforces our pledge to the sustainable health of our people, our planet and our Company," and is part of Kraft Heinz's corporate social responsibility activities.

6. Analysis: Apparent Contradictions of Sustainability Goals Seen in Kraft Heinz Marketing and Operations

  • The company has committed to reaching sustainability goals in its packaging, greenhouse gas emissions, energy consumption, water consumption, and solid waste sent to landfill. But at the same time as it commits to these goals, it introduces new products and marketing efforts that seem to ignore them. Four examples of Kraft Heinz actions that seem to contradict its sustainability goals are listed here.
  • (1) In 2019, Kraft Heinz brand Oscar Mayer agreed to a two-year partnership extension with Roush Fenway Racing and driver Ryan Newman for NASCAR sponsorship. NASCAR racing vehicles use an astonishing amount of fuel in each race, plus multiple sets of tires. "NASCAR's annual carbon footprint is in the area of 4 million pounds (1.8 million kilograms)." Supporting large-scale fossil fuel consumption does not seem congruent with company goals to reduce greenhouse gases and energy use.
  • (2) Kraft Heinz announced a January 2020 contest for football fans. "Starting Monday, January 20 at 8 p.m. EST, fans can visit www.Heinz57FlightChange.com to enter for a chance to have HEINZ cover the change fees to re-route your Miami-bound flight to a destination of your choice for just 57 cents*." Airplane trips are one of the most unsustainable forms of transportation. Offering this contest does not seem congruent with company goals for reducing greenhouse gases and energy use.
  • (3) In 2019, Kraft Heinz introduced P3 Portable Protein Pack® to its P3 product line. This new product is designed for athletes "to fuel their workouts". The product was designed "in partnership with UFC®, the world’s premier mixed martial arts organization" and packaged by Nu-Pak Inc. "The three-cavity clear tray is thermoformed of PET by Bemis. Flexible film heat-seal lidding from is said to be EVA". P3 is a single-use packaged product. "Single-use food packaging is taking a huge toll on our environment while also causing a variety of health problems." This example and others of disposable packaging does not seem congruent with company goals for reusable packaging and reducing solid waste.
  • (4) In 2020, Kraft Heinz will launch a new product in partnership with BAILEYS®, "the producers of the world's best-selling cream liqueur." Together, they will launch "non-alcoholic BAILEYS® Ready-to-drink Cold Brew in cans", "BAILEYS® Roast & Ground Coffee bags, and ... Baileys K-Cup pods." All three items are single-use packaged products. This example of a new product composed of disposable, single-use items does not seem congruent with company goals for reusable packaging and reducing solid waste.

Litehouse

1. Mission

  • Litehouse's mission is to "deliver a memorable eating experience, positively impact the communities we touch, and provide our employee owners opportunities to succeed."

2. Purpose

3. Vision

  • Litehouse's vision is "to improve life... one community, one table, and one bite at a time."

4. Overview of Sustainability Efforts

5. Overview of CSR Efforts

  • In 2006, the founders of Litehouse decided to transfer 30% of the company to employees because they believed "the people who make Litehouse great deserve to benefit in its success." Later on in 2014, the founders transferred 100% of the company to the employees, making it fully employee-owned.
  • The transfer of full company ownership to employees is an example of a labor policy that is part of the company's CSR duty to its employees.
  • Through the Employee Owned Stock Ownership Program, Litehouse awards shares to employees as the company grows in size. The employees can then sell the shares they own back to the company upon retirement. This labor policy has resulted in an increase in employee morale and a decrease in turnover.
  • Today, Litehouse is a home-grown and home-sustained company that empowers all its stakeholders to spark the innovations and new ideas that will propel the company into the future.
  • Litehouse recognizes the importance of the people in the communities in which it operates. The company believes that these communities make it stronger.
  • Consequently, the company believes that giving back to society is its corporate duty.
  • Litehouse's CSR initiatives include contributions to a variety of non-profit organizations, schools, and youth activities. These contributions are in line with the company's guiding principles of faith, stewardship, integrity, excellence, and accountability.
  • The company believes that it has a responsibility to support the people that live within its communities through social initiatives that include clean water initiatives, eradicating hunger, education, among many other initiatives.

6. Analysis: Corporate Social Responsibility Versus Sustainability Initiatives

  • From the available information, Litehouse seems to focus more on CSR than sustainability initiatives. Examples of this follow below:
  • The company presented a $10,000 check to the Learning Center for Families during a ribbon-cutting ceremony for celebrating the expansions made to its Utah manufacturing facility. The Learning Center for Families is a local non-profit health, social service and school readiness agency. The center currently serves over 800 vulnerable families in Hurricane, Utah, and the surrounding areas.
  • Through a $6.2 million expansion of its Ella Avenue facility in Sandpoint, the company constructed a wastewater treatment facility. This facility will enable the company to treat the wastewater it produces before it affects the communities surrounding the facility.
  • By expanding its manufacturing operations in southern Utah, the company projected that it was going to create up to 165 local jobs over the next eight years. This can also be considered as giving back to society through an improvement of company labor policies.

Smucker's

1. Mission

  • Smucker's does not have an explicit mission statement. The company’s mission encompasses its purpose and vision. It is assumed that the mission of Smucker's is “to make a difference in the world… by making the foods people and pets love.”

2. Purpose

  • The purpose of Smucker's is "feeding connections that help us thrive — life tastes better together."

3. Vision

  • The vision of Smucker's is "engage, delight, and inspire consumers through trusted food and beverage brands that bring joy throughout their lives."

4. Overview of Sustainability Efforts

5. Overview of CSR Efforts

  • Smucker's offers a range of benefits in order to support the fair treatment and well-being of all Smucker's employees through their Total Rewards program. The program provides resources for employees' well-being such as health, dental, and vision care, disability benefits, financial assistance, and more. Smucker's is "committed to providing a flexible benefits program that helps all our employees be their best."
  • The company continually supports organizations that enhance the role of family in society and provide opportunities for children such as Feeding America, Habitat for Humanity, Reach Out & Read, Boys & Girls Club, and more. Smucker's believes in the importance of pets to individuals, family, and society, and supports organizations that help animals such as the Rachel Ray Foundation, Rescue Bank, and Canine Assistants. Lastly, smucker's partners with organizations that aim to help communities after natural disasters and other devastating events, such as the Red Cross and United Way.
  • Smucker's employs their Global Supplier Code of Conduct, which outlines all basic and minimal expectations that suppliers are expected to meet when they do business with Smucker's. Under the Code of Conduct, all suppliers must comply with all applicable laws, rules, regulations, and codes in their countries of business. This includes wage, nutritional labeling, and private data rules and laws at the local and federal level.
  • Suppliers should develop workers' safety policies, ensuring the workplace is free from any discrimination, unsafe or unhygienic conditions, and violent discipline. These policies should be regularly monitored and enforced. Child labor, forced or uncompensated labor, and human trafficking of any kind is absolutely forbidden by the Code of Conduct.
  • Workers must be allowed the right to associate, organize, or bargain for representation without penalty, in addition to being employed through the legal system of the country of business and provided written terms of employment.​
  • Suppliers are prohibited from bribing or excessively gifting to any business or employee. Suppliers must provide a non-retaliation policy for whistleblowers and cooperate with law enforcement should any investigation ever occur. Finally, all suppliers must enforce the Smucker's Code of Conduct within their facilities.

6. Analysis: The J.M. Smucker Company's Focus on Purpose in Operations

Unilever

1. Mission

  • Unilever does not have an explicit mission statement. The mission statements of Unilever’s Hive (foods innovation center) and Every U Does Good (sustainability program) are “to make food that tastes good, feels good, and is a force for good” and “to do good” respectively. It is assumed that Unilever’s mission is based on what its founder believed in, which was “doing well by doing good.”

2. Purpose

3. Vision

4. Overview of Sustainability Efforts

  • The Unilever Sustainable Living Plan (USLP) is built on three main goals, which not only advance environmental footprint, but also improve social well-being.
  • One of the goals under USLP is improving the health and well-being of more than 1 billion people in 2020. The goal is grounded in helping people take control of their hygiene and nutrition. As of 2018, Unilever had reached 1.24 billion people through various programs advocating for safe drinking water, proper sanitation, and hand washing.
  • Another essential sustainability effort played by Unilever is promoting nutritional values by encouraging consumption of healthier diets. In 2018, 48% of foods produced by Unilever met the highest nutritional standards as provided by global dietary guidelines.
  • The second goal stipulated under the USLP is to reduce environmental impact by advocating for public policies that mitigate climate change. The company encourages the sustainable use of natural resources as businesses grow. Unilever champions for the reduction of greenhouse gases, proper water use, eco-efficient manufacturing, sustainable land use, and proper waste disposal and recycling activities.
  • Another sustainable effort employed by Unilever is improving the livelihoods of millions. Unilever is committed to ensuring that human rights are protected in the workplace and creating a platform for business growth and positive social impact.
  • Unilever has helped in women empowerment by creating business opportunities for them and developing inclusive businesses for small-scale retailers. The ripple effect of these actions is that most individuals have sources of income, which has improved their livelihoods.​

5. Overview of CSR Efforts

  • Unilever joined forces with Global Fund to help improve health programs in key geographical areas of Africa and Asia. The objective of these synergies is to reduce infections and to strengthen HIV and malaria prevention programs. The two organizations are investing $5 million each to support these activities.
  • Unilever company creates value for communities around the world. For instance, in 2018, Unilever purchased goods and services worth €34 billion from locals. In the same year, the company invested 15.98% in business for future growth.
  • Unilever invested €77.9 million in 2018 in communities to support its agendas stipulated in the USLP. 56% of this amount went to community investment and, 6% was spent on charitable donations. The remaining 38% was spent on commercial initiatives in the community.
  • Unilever also supports small-scale farmers and retailers through training. The goal of this initiative is to create change and improve livelihoods.

6. Analysis: Embedding Purpose in Operations and CSR Versus Sustainability Initiatives

  • The Unilever Sustainable Living Plan guides Unilever's operations. The plan is built on three goals including improving health and well-being of people, reducing environmental impact, and improving the livelihoods of individuals.
  • The company is purpose-driven, where sustainability remains a core consideration for its activities. Unilever's employs an approach that aligns with the UN Sustainable Development Goals.
  • Unilever is widening the focus on consumers as well as developing innovative marketing strategies that promote positive life messages. Educational programs are also part of this focus, where the company educates societies on sustainable living.
  • The company is also promoting stakeholder engagement to meet its target. Stakeholder engagement is a vital consideration in Unilever's corporate social responsibility. Consumers are awarded the highest priority.
Sources
Sources