Modern consumers are demanding greater accountability from food manufacturers, particularly when it comes to environmental awareness. Since 2010, consumer demand for organic food products has increased steadily, reaching 28 million in 2012, up 11 percent from the previous year. Yet, many food producers are reluctant to adopt a sustainable business model lest it adversely impact their bottom line.
The move to sustainable business practices can be daunting, especially when companies face pressure from stockholders to deliver profits at any cost. However, innovative firms have proven time and again that strategic planning and careful implementation of a sustainable business model can decrease costs and increase market share.
Peerless Coffee and Tea, a small, family-owned business in Oakland, Calif., saved over $100,000 annually through recycling efforts alone, while yogurt manufacturer Stonyfield Farm has turned environmentalism into profits for over three decades.
Founded in 1983 as a way to raise money to teach organic growing techniques to local farmers, Stonyfield has grown from a small cottage industry to a $400 million enterprise while never deviating from its green roots. “We were founded on the idea that…you embed these environmental values into your business,” says Wood Turner, Stonyfield’s vice president of sustainability innovation, “but over time we've realized that focusing on impacts also reduces cost.” Turner estimates that the company saved roughly $18 million between 2006 and 2010 through its cross-functional Mission Action Program, which focuses on sustainable business initiatives in nine key areas: greenhouse gas emissions, water conservation, zero waste, production methods, packaging, transportation, milk, non-milk ingredients, and the Stonyfield “Walking Our Talk” program, which encourages employees to reduce their own carbon footprint.
Stonyfield’s example notwithstanding, going green need not be an extensive, company-wide initiative to have a positive impact on profits or consumer trust. Simple, easy-to-implement changes can move a company towards a sustainable business model in surprisingly little time. Turning off equipment when it’s not in use, installing proper insulation, fixing leaks and using energy-efficient lighting all add up to significant energy and cost savings over the long term.
Similarly, using water efficiently — especially in drought years — saves money and builds consumer trust. For example, North Carolina’s Equity Group, a chicken-nugget processing plant, cut water use by 30 percent and realized annual savings of over $100,000 by reviewing its water-use policy and implementing much-needed changes to its outdated production techniques.
Transporting goods in energy-efficient vehicles and using geoanalytic software to map driving routes is yet another strategy that effectively decreases costs and improves sustainability, especially if food and ingredients are locally or regionally sourced. According to a study from the Leopold Center for Sustainable Agriculture at Iowa State University, regional food systems are eight to 17 times more fuel efficient than national systems and four times more efficient than those that transport food from local growers to stores.
The move toward a sustainable business model can prove challenging to many businesses, but it has more than its share of rewards. A smaller environmental footprint is a proven way to gain consumer confidence, increase market share and simultaneously decrease costs. By almost any measure, going green is a good idea.
Photo courtesy of franky 242 at FreeDigitalPhotos.net
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