Food waste doesn’t have to be a waste for grocers, according to recent findings from ReFED.
In its Retail Food Waste Action Guide, the U.S.-based non-profit revealed that tackling food waste may actually represent an $18.2-billion profit opportunity for grocery retailers.
The guide, released in January, was designed to help retailers develop and implement strategies for food waste reduction.
“We’re seeing a major trend of retailers increasing focus on food waste,” says Chris Cochran, executive director of ReFED, in a press release. “What was once seen as a built-in cost of doing business is now viewed as a controllable expense and source of value. ReFED is partnering with retailers to put these waste solutions into action.”
ReFED works directly with food companies, innovators, foundations, investors and policymakers to implement solutions to address the problem of food waste. Its Retail Food Waste Action Guide was created with input from more than 30 contributors, including major retailers such as Target, Walmart and Whole Foods.
The value of wasted food in retail, on average, is equal to roughly double the profits from food sales, according to ReFED’s findings. And prevention solutions such as dynamic pricing and markdowns have the greatest profit potential.