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2 minute read
Making the best out of food
from 2022 Sustainability Report
by Sigma
3-3: Ending food waste || 306-2
Committed to reducing food waste
We achieved a 16% reduction in food waste compared to 2018. In Mexico alone, there was a 50% reduction in the mom-and-pop stores and Convenience sales channels. This includes products that are close to reaching their expiration date on store shelves and waste from the production process. We also trained the members of our sales team to implement a culture of waste reduction and recovery. Our ambition for 2025 is to reduce food waste by one-third and prevent it from ending up in landfills.
We rely on information technologies to adjust production levels to demand projections. In the Convenience channel, we developed a commercial platform for cellphones, leveraging the product replenishment model to support day-to-day operations. The algorithm was designed to optimize product sales and reduce loss by cross-referencing data on waste volume. The generated information is used to make recommendations to the customer on inventory management and to increase their sales. We also work closely with customers and employees in Mexico to better understand and adapt to consumer purchasing patterns to place the right amount of food on the shelf.
Our understanding of supply and demand patterns, as well as the optimization of sales volume, is complemented by practical packaging solutions we implement to maintain food safety and protect its properties.
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Operating excellence
We operate our plants under the highest quality and efficiency standards to minimize waste in the production process. Our Product Development Policy is key to achieving our objectives.
Donations
We collaborate with associations and food banks to contribute to the community and prevent food waste. Between 2015 and 2022, we have donated more than 21,100 tons, equivalent to more than 175 million servings. This keeps us on track to reach our goal of donating at least 25,000 tons of food in a decade.
Our future waste reduction strategy
We will continue to reinforce our operations with the best and most innovative technologies to become more efficient. In addition, we will continue to implement projects in alliance with strategic customers to optimize product sales while we train our employees to attack new problems in a better way and with more tools.
2022 Case study
We continue to work closely with our customers and associates to get the most out of our food. In Mexico, we managed to reduce +6,000 tons of waste in our convenience and mom-and-pop channels compared to 2020. We extended our Optimal Ordering program with our self-service channel customers, achieving a 50% reduction in waste with the customers with whom we collaborate. In addition, we conducted pilot tests with our customers from specialized markets and small retail stores in the Western region, where we were able to reduce food waste by half, which could be scaled up in the following years.
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Reducing food waste has a positive impact on our entire value chain and leads us to use only the resources necessary to satisfy our customers.
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We create economic and social value through strategic practices and share them to stimulate development and strengthen our value chain.
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