EU Deforestation Legislation: Why Retailers Should Be Paying Attention
ESM - European Supermarket Magazine
The industry magazine for C-suite executives and procurement managers working in the European grocery retail sector.
Final negotiations have begun between the European Council, Parliament and Commission on a regulation that will ban products from the EU market that result from deforestation. It will impact what is placed on supermarket shelves, and, importantly, retailers might be held accountable. The proposal focuses on coffee, cacao, cattle, palm oil, soy and wood products. Among these commodities, the palm oil sector is at the forefront of sustainability, reaching 93% uptake of certified sustainable palm oil in Europe, even before legislation. The core of the proposal requires that only products that are both legally produced and demonstrably free from deforestation should be allowed on the EU market.
Ahead of the Energy Council on 30 September,?EuroCommerce, which represents the retail and wholesale sectors in Europe, has called for urgent support as high and rising energy costs pose a threat for many businesses. EuroCommerce director general, Christel Delberghe stated, “Alarm bells are ringing across Europe over the massive impact of?energy?costs on the retail and wholesale sector, threatening the future of many businesses. "We call upon ministers meeting on 30 September and when implementing the regulation to recognise that our sector needs urgent help. Without such aid, circumstances will put into question our sector’s ability to effectively provide the essential service on which not only consumers, but the many ecosystems in our supply chains rely daily.”
Denmark's Salling Group is launching a new discount chain,?BASALT, which it says will offer cheaper prices than traditional discount stores. The chain will offer goods that are on average 15% cheaper than discount store rates, the retailer said, as the format relies on a smaller assortment and reduced opening hours to cut costs. A limited product assortment will enable?Salling Group?to reduce the number of weekly deliveries to the store. The goods will be presented on pallets in the store and packaged directly on the shelves, reducing handling costs, the retailer added. The chain will not offer refrigerated or?frozen food?items, thereby cutting half the energy costs. In a further attempt to save staff and?energy?costs, BASALT stores will remain closed in the evenings.
SPAR Austria has?expanded?its?‘Zucker-raus'?initiative, an industry-wide sugar reduction alliance, to now include 52 members. The initiative, aimed at reducing sugar consumption in the society, was launched by the retailer in April 2019, in collaboration with a number of food and beverage manufacturers, the?Austrian?Medical Council, doctors and medical associations. SPAR Austria?has already removed more than 2,500 tonnes of sugar from its own-brand products.As well as reducing the amount of sugar in food products, the partners in the initiative aim to provide targeted information about the risks and health consequences of excessive sugar consumption. Members who have joined recently include 3Bears, an innovative porridge maker, and?Mein Leben?magazine, which is aimed at people with diabetes.
The supervisory board of?Dutch?retailer Ahold Delhaize?has announced?that it plans to reappoint?Frans Muller?as president and chief executive at its forthcoming Annual General Meeting in April 2023. Announcing the board's decision, Peter Agnefj?ll, chair, said, “We are delighted that Frans will continue as President and?CEO?of?Ahold Delhaize, subject to shareholder approval. Since he started in this role [...], the company has continued to build on its strengths. Under Frans’ leadership the Leading Together strategy was introduced, which increased its ability to better serve its customers.”
UK retailer Tesco is?offering?branded?toothpastes?without boxes as part of a pilot project aimed at removing unnecessary packaging. The trial, launched on 21 September, includes nearly 30?Tesco?stores across the?UK?and will include brands such as?Colgate, Oral B, Sensodyne, Aquafresh and Corsadyl. Oral care buyer at Tesco, Felicity Bexton said, “We made a bold move to remove un-needed toothpaste boxes last November on our own brand and have had positive feedback from customers. Now we are working with the major toothpaste brands to join?us?on this journey.
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In the September/October 2022 issue of?ESM, we chat to Hani Weiss, chief executive of the multinational?Majid Al Futtaim Retail?business; catch up with outgoing?ICA?Sweden?CEO Anders Svensson; explore Europe’s most -chosen brands in the?Kantar Brand Footprint?report; and examine a recent INSEAD report about?buying alliances. We also feature our annual?World of Food and Drink?report, which this year incorporates a preview of?SIAL Paris, making a welcome return for the first time since 2018.
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