23 minute read
Sustainability Innovations
Small Steps, Big Change
How bakeries are innovating ways to reduce their carbon footprint.
BY JORDAN WINTER
Climate change is at the forefront of the global conversation, especially coming off the heels of the COP26 summit, where citizens took to the streets, demanding change from those in power. But consumers aren’t the only ones working to make a difference.
Companies are looking inward and implementing measures to make their own operations more sustainable. And while some industries are trying to catch up, commercial bakeries are already leading the charge. Baked goods manufacturers large and small have innovated sustainable practices that create long-term value for their brands.
For bakeries simply focused on day-today operations, actually putting these steps into practice can get sidelined. But by understanding common strategies and starting small, bakeries can become empowered through sustainability … and the tangible benefits that come with it.
When it comes to energy, the Environmental Protection Agency (EPA)’s Energy Star certification is the gold standard. To promote this program, the American Bakers Association (ABA) teamed up with the federal agency for an Energy Star challenge.
Since 2016, this national call-to-action has recognized participating bakery facilities that improve energy efficiency by 10% or more within five years. The EPA’s general Energy Star certification program recognizes any manufacturing facility in the top 25% of energy-efficient US facilities.
ABA is known for helping members attain these certifications and supporting the companies in the process.
Rasma Zvaners, VP of technical and regulatory services at ABA, praised this Energy Star program as a game changer for the industry. And it’s one that keeps evolving.
“The Energy Star program has been a success for the bakers,” Zvaners said. “The EPA is even expanding tools available to the industry to assist with reducing climate impacts from business operations. I hope this trend continues to increase and more bakeries gain recognition for their achievements.”
ABA member facilities represented 44 of the 95 manufacturing plants that became Energy Star certified in 2020, which is the most recent round of recognitions. Every baking facility that was awarded certification was an ABA member.
“The baking industry has a powerful story to tell when it comes to sustainability. More ABA member facilities participated in this program than ever before,” Zvaners said. The brand has also shifted gears to find new areas of energy efficiency outside its plants. BBU expanded its electric vehicle fleet to 100 vehicles in 2021, after piloting just five of them in 2020. This expanded the company’s already robust fleet of 500 alternatively fueled vehicles, which use compressed natural gas and propane.
In addition to Energy Star certification, the EPA currently offers resources to help baking facilities identify areas for improvement in their operations, especially in the freezing and baking stages, which the agency lists as the most energy intensive. These resources include an interactive Energy Performance Indicator (EPI) tool that helps measure emissions output. The EPA’s newest tool, which should be available by the end of this year, will focus on corporate-level management practices to support decarbonization across an organization.
Horsham, PA-based Bimbo Bakeries USA (BBU) set a record for the Energy Star achievement earlier this year. The company, which is a sustainability standard-setter for the industry, received the 2021 Energy Star Partner of the Year — Sustained Excellence award from the EPA and US Department of Energy (DOE) for the fourth year in a row. The award recognizes the company’s commitment to energy management leadership and innovation.
“As the largest commercial bakery in the US, we understand how important it is to be a frontrunner in sustainability practices,” said Ramon Rivera, senior VP of supply chain, BBU. “We’re so honored to receive the Energy Star Partner of the Year Award once again.”
BBU is pushing energy efficiency to new heights, for not only the baking industry but also for manufacturing in general. In January, the company set the record for the most Energy Star-certified plants of any company in any industry, with 15 BBU facilities and one Grupo Bimbo facility across the country earning certification. Thomasville, GA-based Flowers Foods is another major player that has been focused on innovative energy practices for years.
The baking company is one of the largest and most outspoken advocates for sustainable food manufacturing, but it doesn’t just talk the talk. In 2017, Flowers exceeded its 2020 goal of reducing greenhouse gas emissions by 10% per
87%
of American consumers will make a purchase because a company advocated for an issue that they care about.
Source: Cone Communications metric ton of product. It is now pursuing a new goal of a 20% reduction by 2025.
Last year, 15 of Flowers’ 46 baking plants earned Energy Star certification. And earlier this year, its Lynchburg, VA, plant got a total energy makeover. It was a 2021 Better Project Award winner, recognized by the DOE for having been successfully converted into a state-of-the-art, efficient bakery that uses 22% less energy than the year before.
But that’s not because the product flow slowed. That plant produces Dave’s Killer Bread, the No. 1 organic bread brand in the US.
While these practices were first implemented for the purpose of cost savings, Margaret Ann Marsh, VP of environmental sustainability at Flowers Foods, said they quickly became embedded in the company’s strategy.
“Over the years, we’ve been able to implement incremental change by showing the value of the work we do and by having a strong company-wide commitment to operating efficiently and reducing waste,” Marsh said. “Of course, accountability is key, and we’ve set goals, partnered across industries and measured progress in our annual sustainability report.”
Marsh credits this success to Flowers’ people and partners. By working with those closest to the brand — including the team members in the operations every day — the company has created sustainability practices that stick.
“The best ideas for helping us operate sustainably come from our own team members. They are engaged and creative, and we wouldn’t be nearly as successful without their contributions,” Marsh said. “When it comes to the design or execution of projects, our suppliers and even local and state agencies help us find new or different ways to approach a problem with a sustainable solution.”
Progress like this doesn’t happen in a vacuum, and that’s why collaboration is critical for Flowers. According to Marsh, the company’s engineering and operations teams work closely with
vendors to meet ambitious timelines and make the result even better. This kind of external support can even come from organizations such as the DOE’s Better Plants Partner program or ABA’s Energy and Environment Committee, which help bakers keep up with best practices.
“Start small,” she said. “You might be surprised how much of an impact a relatively low-cost, small-scale project can have on your sustainability efforts. Plus, the successes add up and really help with raising awareness of what you’re trying to accomplish.”
If energy upgrades seem too hot to handle, cutting down on material waste — or transforming it — can serve as a low barrier to entry for sustainability.
The nonprofit organization Feeding America reports that 108 billion lbs. of food are wasted every year in the US. That equates to more than $161 billion worth of food thrown away each year, and 40% of all food in America.
Josh Allen, founder and owner of St. Louis-based Companion Baking, has made a dent in those numbers. He was named as this year’s “Sustainability Hero” by the Tiptree World Bread Awards for reducing his bakery’s trash by more than 1 million lbs. Allen and his team take a holistic approach to waste reduction, using tools such as flour reclamation on the bread lines and a composting and recycling program that cut the bakery’s landfill contribution by more than 75%.
Some bakeries are avoiding the landfill altogether. The Upcycled Food Association (UFA) encourages bakers to get creative and find new ways to repurpose their food waste … and even commercialize it.
HOW B CORP CERTIFICATION PROVIDES STRUCTURE FOR SUSTAINABILITY
Consumers are increasingly demanding sustainably made products, which is turning up the heat for food manufacturers to adopt more environmentally friendly practices. But starting can be the hardest part, especially considering what Harvard professor Geoffrey Jones calls “crippling vagueness” around sustainability.
The B Impact Assessment serves as a solution, by providing a way to quantitatively measure a business’ positive impact on the environment, the workers and community.
This free tool walks you through a series of questions to help you learn what it takes to build a better business. It then compares your answers to thousands of other businesses and creates a customized improvement plan with free best practice guides to help you implement new policies.
Companies that achieve a certain score may be eligible to certify as a B Corp, a new type of business that balances profit with purpose and has a legal standard of positively impacting its stakeholders.
This global community brands itself as a “movement of businesses as a force for good,” and it’s a breeding ground for innovation. Some of the innovations include the open hiring model at Yonkers, NY-based Greyston Bakery, which bypasses background checks and interviews to hire bakers, as well as the income advance program at Rhino Foods, which eases workers’ financial concerns by providing small, short-term emergency loans that can be repaid through payroll deductions.
“Chances are, you have something going to waste somewhere in your supply chain, and that’s costing you money,” said Turner Wyatt, co-founder and CEO of UFA. Instead, use it to create something new.” For example, CaPao, a Mondelez brand, formulates its Quinoa Squares with reclaimed cacao fruit, and the product recently became the first on the market to carry the UFA’s “Upcycled Certified” mark on its packaging.
This action is being driven in part by end-users. As people increasingly support businesses that positively impact the environment, companies are realizing that sustainability pays. Cone Communications’ latest corporate social responsibility study revealed that 87% of American consumers will make a purchase because a company advocated for an issue that they care about.
But this grassroots support for environmentally friendly manufacturing is creating a trickle-up effect.
Due to supply chain disruptions and increased focus on health, shoppers are aware — perhaps now more than ever— of a product’s full lifecycle. Consumers now know there are a lot of steps involved in creating commercially baked food … from the time a croissant or cookie is just ingredients in a commercial mixer until it’s a finished product ready to eat. They scrutinize not only how these products are being made, but also the impact that production has on the planet. for consumers and companies. Whole Foods has increased its preference for products that are certified by third-party organizations such as the Rainforest Alliance. It also strictly limits use of palm oil, a common ingredient in baked goods, to only products certified by the Roundtable on Sustainable Palm Oil.
These certifications are just one component of the marketing benefits that sustainability can bring to brands … if they do it right. By maintaining an authentic and transparent commitment to having a sustainable operation, bakeries can improve their planet and profits at the same time. But soon, this may no longer be a choice. Local, state and federal governments are implementing stricter regulations on manufacturers’ greenhouse gas emissions in the fight against climate change.
This is why major retailers such as Whole Foods and Target are putting more pressure on their suppliers to meet sustainability specifications.
Target has committed to a 2040 goal of zero greenhouse gas emissions across its entire supply chain. This ambitious goal breaks down greenhouse gas emissions into three categories: Scope 1 relates to emissions generated from one’s facility, scope 2 relates to emissions from energy purchased to power one’s facility, and scope 3 relates to emissions generated from the entire supply chain.
By pursuing incremental change, this encourages bakery manufacturers to make necessary changes in ways that don’t disrupt productivity. Flowers Foods can vouch for this approach.
“Change is always challenging, so we try to integrate sustainability into the design of new lines or upgrades rather than a completely new project or process,” Marsh said. “And communication is key. It’s important to provide consistent and transparent messages to employees, consumers and stakeholders about what we’re doing, why we’re doing it and what progress we’re making toward our goals.”
Whole Foods underscores this kind of transparency with its rigorous quality standards and “Sourced for Good” program. Rather than simply expecting compliance with sustainability directives, this retailer sets the bar This is the power of small steps.
There are a million different ways to pursue sustainability, but it’s all united by one goal — to lessen our carbon footprint — which creates long-term value for companies as they adapt to increasing regulations.
Even the longest journey begins with one step in the right direction. But there’s also an urgency to get started now.
After all, a snowball effect should probably get rolling before the rest of the glaciers melt. CB
Knowledge is ‘Baked In’
The IBIE planning committee shares an in-depth discussion on how COVID and supply chain are impacting show planning and why the group’s industry experience gives it an edge.
What’s in store for the International Baking Industry Exposition (IBIE) 2022, the global grain-based food industry’s largest trade event in the Western Hemisphere, when it returns in-person Sept. 18-22 in Las Vegas? To find out, Commercial Baking collaborated with tradeshow industry journalist Danica Tormohlen to host an exclusive conversation with the IBIE planning committee.
IBIE, which takes place every three years, is owned by the American Bakers Association (ABA) and BEMA and is supported by the Retail Bakers of America (RBA). It drew nearly 22,000 baking professionals at the previous Expo in 2019, and Tormohlen got the inside scoop on what attendees can expect at the next show.
Joe Turano (left), IBIE 2019 chairman, and Dennis Gunnell, 2022 chairman, break bread at the 2019 opening .
MEET THE COMMITTEE
The IBIE Planning Committee is made up of five ABA members and five BEMA members. Eight committee members sat down to share their insights on what exhibitors and attendees can expect at IBIE 2022.
Dennis Gunnell, IBIE 2022 chair and president, Formost Fuji
Jorge Zárate, IBIE 2022 vice chair and global senior VP, operations and engineering, at Grupo Bimbo
Allen Wright, IBIE secretary and treasurer and VP of sales and marketing, Hansaloy
Michael Cornelis, IBIE past chair and VP, American Pan
Joseph Turano, IBIE past chair and president, Turano Baking Co.
David Watson, consultant at The Austin Co.
DJ Lecrone, CEO, LeMatic
Ken Newsome, CEO, Markel Food Group
Committee members not on the call include:
Jason Frye, senior VP, supply chain planning and performance, Flowers Foods
Kim Albers-Nisbet, president of sales, United States Bakery Danica Tormohlen: With registration and all exhibitor space open, how is the anticipation building for IBIE?
Dennis Gunnell: That’s an easy one. Our first indicator is that the show is nearly 80% sold out on exhibit space already. There is still good space available, but it shows that momentum is building, and we are still a year out.
There’s new space available at the West Hall, correct?
Gunnell: Yes, we have more usable space. We expect space to sell out in 2022 like we did in 2019. If some of the tradeshows we’ve attended and exhibited in recently are any indication, there’s clearly a need for people to get back together face-to-face.
IBIE will be the most signifcant international baking show to happen since 2019. Is there a heightened anticipation for people to get back together?
Ken Newsome: Yes, the fact that people have missed the cycle of the major shows like interpack heightens the interest in IBIE.
David Watson: A lot of events over the past year tried to go virtual with somewhat limited success. There’s a lot of excitement now that we can finally get together as
an industry. Being able to talk to people while we see and touch the equipment ... that’s going to drive interest.
The IBIE planning committee consists of actual exhibitors and attendees. How does this insider perspective lead to a meaningful show experience?
Allen Wright: The design of the committee leads to a show that’s in touch with its customer base and allows it to maneuver and react to the needs of both sides — the bakers and the suppliers.
Supply chain disruption is impacting every industry … how is it affecting IBIE planning? How can your direct supply chain experience help navigate those current or potential disruptions?
Wright: We’re paying attention to it closely, but the impact has yet to hit home largely because the show is still a year away. A lot of the execution work is yet to be done. We are paying attention to it, with our partners, to see how that’s going to impact the show. It will be crucial to keep our eyes on it over the next 12 months to make sure the show can execute like it’s accustomed to.
Gunnell: We’ve been talking with Freeman and with our other partners to make sure we’re proactively doing everything we can. One thing that is new this time is the advance warehouse. Exhibitors can send equipment about a month before the show to make sure it’s onsite well in advance. It’s part of the exhibitor package that we negotiated with Freeman. That will give exhibitors a big advantage to get there in time and not have delays due to shipping or anything else that’s affected by COVID or the manpower shortage. It’s the same cost now; it used to be more expensive to send it to the advance warehouse.
Workforce shortages will likely continue in 2022. What are some ways the IBIEducate program (which starts on Sept. 17, the day before the show floor opens) and show exhibitors can help bakers find labor solutions?
Michael Cornelis: From the wholesale bakery perspective, IBIEducate will address the everchanging role of the bakery engineer. Because bakers are adding more automation and using less manpower, the bakery engineer has got to be an automation expert now. Or you need to have a few automation experts at every location as plants get more and more automated. That’s where IBIEducate can be a great resource through programming for our baker attendees.
Newsome: There was this big surge and change in demand in terms of more home-based eating vs. outside the home. A lot of people expected that to be a blip and to go away. What bakers are finding is that it’s not going away as they had expected. Demand has fundamentally changed. We want to help bakers figure out how to run their operations in a postCOVID world where it’s harder to get workers. It’s also riskier to have people standing near each other doing tasks. You’ll see a focus on that at the show.
Gunnell: As an exhibitor, we willl be focusing heavily on dealing with labor shortage through automation, equipment, the way we handle ingredients, the way product is handled after it’s made, and through trucking and logistics. What baking engineers are looking at has to be rethought around fewer people and more automation. It’s a fact of life that we all are dealing with in our businesses. That will be a big theme of this show, and we’ll address it in every aspect of the education and exhibits.
After all the change that’s occurred since IBIE 2019, are there any predictions on what capital expenditures will look like for 2022-23?
Joseph Turano: Companies are looking at capital expenditures on a two- or threeyear horizon now because the lead times are so long for most equipment. The show’s timing is great because most of our industry is looking at major projects two, three, even four years out. IBIE will be perfectly timed for the 20232024 installations.
Jorge Zarate: CapEx for most companies will continue to expand, and that’s because our markets are growing — first due to the pandemic, now due to the changes in consumer behaviors that are directly impacting the baking industry.
Watson: Agreed. CapEx is going to be up because of the labor shortages and automation. Virtually every project I’m working on seems to be associated with reduced labor, automation and produc-
KEY TAKEAWAYS AT-A-GLANCE
•IBIE is nearly 80% sold-out on exhibit space.
•After a number of major events have been canceled since the pandemic, IBIE will be the baking industry’s first major international in-person tradeshow when it returns to Las Vegas Sept. 18-22, 2022, with a day of IBIEducate starting on Sept. 17.
•New space is available in the West Hall, the brand new exhibition space at the Las Vegas Convention Center.
•IBIE will feature new pavilions: A Cannabis Pavilion will showcase this emerging business category, and the Sanitation Pavilion will spotlight the latest protocols and agents to help the industry improve food safety.
•In response to potential shipping delays that are predicted to continue into 2022, IBIE will offer advance warehouse shipping as part of the exhibitor package at no additional charge.
•Changes in consumer demand are expected to continue even as COVID wanes, and that will impact bakers’ operational needs.
•At this point, capital expenditures, automation, supply chain issues and labor shortages are expected to be the overarching themes in programming and on the show floor. tivity. Some customers have lowered their return requirements on major projects. Customers are doing a lot of the investment to reduce labor because they know that the labor shortage isn’t going to go away anytime soon. It could be a long-term challenge.
Gunnell: A lot of the projects we’re working on … people want installations right away, but they’ve come to realize ‘right away’ is not going to happen these days. It’s six, nine or even 12 months for a project that used to take three-tofive months. That’s the reality. But in the past where they might have said, ‘We’re not doing it if it’s a year out,’ now they’re saying, ‘We better get in line, or it’s going to be 18 months.’
Are supply chain bottlenecks and shipping issues the reason that projects are not able to ramp up as quickly?
Turano: Yes. Plus, the fact that most companies on the manufacturing side and fabrication side seem to be backlogged because of the COVID year and the lack of time spent at their businesses. The industry is a little bit fragmented right now. On the baking side, at least domestically, you have several companies who are in aggressive growth mode and looking to make the expansions and capital investments. Then there are many companies in our industry still recovering from the COVID crisis. The next year — from now until the show — will be very telling to see how the industry shakes out. Hopefully it will be healthy and solid moving forward; the timing of the show should be very beneficial.
Any thoughts on what will be the most sought-after technologies at IBIE 2022? What will be the overarching exhibitor themes?
Zarate: Baking companies in general will search for updated technology, automation through robotics, IIoT, equipment sanitary designs to enhance COVID-19 protocols, and equipment with sustainable designs and minimized carbon footprint. Exhibitors will be matching these needs.
Turano: The two main ones that will be prevalent and most sought-after will be packaging automation due to the labor challenges, and on the ingredients side, it will be the movement toward non-GMO.
Gunnell: We’re going to have two new pavilions, one focused on cannabis in bakery and the other on food sanitation. But we also need to look outside of our industry and toward others for solutions.
I know retail is a growing sector for bakers. What can they look forward to seeing next year? “Baking companies in general will search for updated technology, automation through robotics, IIoT, equipment sanitary designs to enhance COVID-19 protocols, and equipment with sustainable designs and minimized carbon footprint. Exhibitors will be matching these needs.”
Jorge Zarate | IBIE 2022 vice chair | global senior VP, operations, Grupo Bimbo
Cornelis: There’s going to be a lot to offer artisan and retail bakers. They’re also excited to get back out, go to the demos and see the celebrity bakers. We’ve got a great slate of speakers, which I can’t tell you about just yet. But I can say it’s going to be one of our best shows ever.
While there has been a limited number of tradeshows since COVID, live events are ramping up at a much faster pace, particularly in Q4 2021 and Q1 2022. If you’ve attended or exhibited at a show in recent months, what did you learn, and how will that impact IBIE planning?
Turano: Our company has been to shows, but I personally have not. Our focus needs to be on providing a comfortable show for our attendees and exhibitors — one with new COVID
protocols in place. That’s something that will be a long-term change: a new level of awareness and focus on the show environment will be very important to make sure attendees want to attend and come back for years to come.
Cornelis: Our company exhibited at a show in the Middle East in November, and what I’ve learned is you can’t really trust the shipping container crisis right now. We air-shipped our materials into that show. Experts are saying the crisis will continue well into 2022, so international exhibitors need to anticipate how they’re going to get their equipment into Las Vegas well beforehand. Some freight will need to leave much sooner than in the past. That’s going to be a big change and a challenge for international exhibitors.
Gunnell: We were an exhibitor at Pack Expo — held in October at the Las Vegas Convention Center — and had a good booth and had a very good show. The people who were there were actively looking for solutions; it was a great demonstration that people wanted to come together. The collaborative energy, seeing people talking about new projects … it’s a better way to do business to learn from one another. Face-to-face has proven time and again it’s the best way to do business, and the reality of it was that people were ready to go to shows. It was a big success.
Watson: We also had a booth at Pack Expo, and the feedback I heard from our team was similar. Those who came to the booth were actively looking to do projects and glad to be back in person again. That’s a good indicator for IBIE.
Registration is now open for IBIE, and booth space is still available. Attendees can visit www.bakingexpo.com for more details and information. CB
“Companies are looking at capital expenditures on a two- or three-year horizon now because the lead times are so long now for most equipment. The show’s timing is great because most of our industry is looking at major projects two, three, even four years out. IBIE will be perfectly timed for the 2023-2024 installations.”
Joseph Turano | IBIE immediate past chair | president, Turano Baking Co.
— Danica Tormohlen is an awardwinning journalist who has covered the convention and tradeshow industry since 1994. Follow her on Twitter: @DanicaTormohlen.
