Peanut Players Go All in on Sustainability

By: Lauren Highfill Williams

You know sustainability is more than a buzzword when businesses from large to small are investing heavily in it — even tying executive pay to results. Prioritizing sustainability is important for businesses because it can add brand value and a competitive advantage, meet consumer demands, increase efficiency, attract talent and create new opportunities, according to Forbes (1). Here is a snapshot of how major players in the peanut industry are incorporating sustainability into their activities.

J.M. Smucker Co.

Jif is a household name for peanut butter, and J.M. Smucker Co. also makes favorites like Uncrustables, Adam’s and Santa Cruz Organic peanut butter products. According to the Smucker 2021 Corporate Impact Report, the company diverted 96.2% of waste from going to landfills (2). Specific to peanut butter, in their Scottsville, Kentucky facility, the peanut butter delivery process moved to reusable plastic totes, resulting in more than 1.1 million fewer pounds going to landfill.

“The continued evolution of consumers’ eating preferences has created a tremendous opportunity for our brands,” said Rebecca Ott, director of sustainability at the J.M. Smucker Co. “In today's ever-busy world, consumers are gravitating toward options that offer convenience, low prep and added nutritional benefits; and one solution consumers have always turned to to meet those needs is peanut butter. So, for us as the largest purchaser of peanuts in the U.S., we also recognize the importance of the sustainability impact of the crop. We expect all of our ingredients to be sourced responsibly and also to focus on the environmental and social impacts. So, in that spirit, I'm excited about the peanut industry’s commitment to sustainability. The Sustainable U.S. Peanuts initiative offers a platform that supports transparency. It also leverages reliable aggregated data, while empowering those in the industry to strive for continuous improvement. We support its development not only to reflect the great progress of the industry but as a way to continue the regenerative agriculture journey. Ultimately, we want to demonstrate that sustainability is both value protection and value creation for all stakeholders, and that means a resilient future for the industry.”

Hormel Foods

Parent company of Skippy and Justin’s and new owner of Planters brands, Hormel Foods recognizes the critical role that sustainable agricultural practices play in meeting the world’s food demands while protecting natural resources. In 2020, the company reduced its water use by 119 million gallons, decreased product packaging by 533,000 pounds and reduced greenhouse gas emissions by 5,700 metric tons. In 2019, Hormel brand Applegate launched The New Food Collective, which is committed to sourcing from farmers and ranchers who use regenerative agricultural practices that are designed to improve soil, water retention and biodiversity (3).

Hershey Company

In addition to the iconic Reese’s, peanuts play a significant role in Hershey Company-owned brands of Mr. Goodbar, Payday and ONE. “Sustainability is definitely increasing in value for a number of our stakeholders, from consumers to retailers, investors, NGOs and even our employees,” said Mark Kline, senior manager of nut and energy sourcing at Hershey.

According to the company, Hershey’s has a goal to achieve a 50% absolute reduction in Scope 1 and 2 greenhouse gas emissions and a 25% absolute reduction in Scope 3 emissions by 2030. In addition, Hershey’s has committed to having 100% of plastic packaging be reusable, recyclable or compostable by 2030. The Hershey plant in Monterrey, Mexico has been sending sludge and peanut skins from its manufacturing processes to a composting processor, achieving a 97% recycling rate against waste generated (4).

Mars

Snickers and Peanut M&M’s maker Mars recently announced it was increasing its sustainability targets with a significant focus on helping its suppliers around the world switch to restorative farming practices. Barry Parkin, chief procurement and sustainability officer, also mentioned that the new sustainability targets are being incorporated into Mars’ governance and operations and will be linked to executive compensation at the same level as financial performance (5).

Hampton Farms

Hampton Farms is leaning into the sustainable attributes of inshell peanuts through a continuing promotion with the National Parks System. “Inshell peanuts are the perfect outdoor snack,” said Jeanne Cashman, Hampton Farms’ director of brand marketing. “They’re environmentally friendly and packed with protein to power any activity in nature — from hiking to rock climbing to whitewater rafting. As a fun, healthy and versatile snack, we’re excited to align our brand with the national parks’ active, health-conscious visitors.”

Not only are peanut shells biodegradable, but Hampton Farms was also part of a team in 2018 to launch the first-ever compostable bag of peanuts, partnering with BASF, Aramark and the Kansas City Chiefs. The bright red bag won a Gold Award for Sustainability by the Flexible Packaging Association (6).

1 Rafi, Tali. Why Corporate Strategies Should be Focused on Sustainability. Published Feb. 10, 2021. Accessed Feb. 4, 2022. https://www.forbes.com/sites/forbesbusinesscouncil/2021/02/10/whycorporate-strategies-should-be-focused-on-sustainability/?sh=5ca159b57e9f

2 The J.M. Smucker Co. Corporate Impact Report. Published 2021. Accessed Feb. 4, 2022. https://s3.us-east-2.amazonaws.com/jms-s3-com-jms-p-pmc6/assets/news-stories/corporatepublications/2021-corporate-impact-report.pdf

3 Hormel Foods Corporate Responsibility. 2020 CR Report. Published 2020. Accessed Feb. 4, 2022. https://www.hormelfoods.com/wp-content/uploads/Hormel-Foods-2020-CR-Report.pdf

4 The Hershey Company. Goodness in Action: 2020 Sustainability Report. Published 2021. Accessed Feb. 4, 2022. https://www.thehersheycompany.com/content/dam/hershey-corporate/documents/ pdf/hershey_2020_sustainability_report_.pdf

5 Ho, Karen K. and Ebony Flake. M&Ms iconic characters are getting an 'inclusive' new look, but beyond the candy-coated makeover, the company is ramping up sustainability goals to include more diverse suppliers and farmers. Insider. Published Jan. 21, 2022. Accessed Feb. 4, 2022. https://www.businessinsider.com/mars-incs-new-sustainability-goals-include-its-entire-businessmodel-2021-10

6 Spiewak, Anna. Helping Arrowhead Stadium become the first sports venue to sell the pre-packed bags. BASF. Published July 14, 2018. Accessed Feb. 4, 2022. https://insights.basf.com/home/article/ read/it-s-not-easy-going-green-nfl-team-debuts-compostable-peanut-bags