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1
Delhaize & Bio packaging
Belgian BioPackaging ConferenceDecember 2007
Philippe GendebienEuropean Indirect Buyer
Delhaize Group
2
Agenda
• Delhaize Group overview & strategy• Environmental Initiatives• BioPackaging at Delhaize
– Why do we use BioPackaging?– Current situation– How to communicate?
• Delhaize expectations from Industry / Authority• Conclusion & Future Plans
3
Delhaize Group at a glance
• Large food retailer headquartered in Belgium• Founded in 1867• Operational in 7 countries (North-America,
Europe & South-east Asia)• Sales network of 2,713 stores• 144,000 employees• Sales 2006: 18.6 billion euro
4
Strategy Delhaize Belgium
What do our customers want?
• Have the choice• Find what they are looking for• Pay a fair price• Feel good with us• Take care of their health
The quality makes the difference
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Strategy Delhaize Belgium
- Environmental initiatives (Green Energy & BioPackaging)
- Development of Fair Trade and Organic assortment
- Long-term, sustainable relations with suppliers
Focuses on Corporate Social Responsibility
6
Bio packaging – Why?
Background 2005:• Climate change &
Increased focus on environment (NGO, press, custommers)
• DLL strategy : Self-service and convenience
Big use of packaging
Solution 2006: Focus on eco friendly
packaging for fresh products:– Deli & Bakery– Meat & Fish– Fruit & vegetables
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Bio packaging – Current situation
• 20 millions of Biopackaging since start! 200 tons– PLA bowls for fresh green salads Deli dpt (apr/06)– PLA window for paper bread bags (nov/06)– PLA bags for prepared sandwich Deli dpt (dec/06)– PLA bowls for 15 bakery Gaelens (feb/07)– PLA sealable lid for pasta salad Deli dpt (april/07)– Sugarcane & PLA packaging for tomato (may/07)– Materbi & Biotech shopping bags (july/07)
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Bio packaging : Delhaize & PLA
Mostly PLA solutions – Why this choice?
1/ Environmental argument• 100% based on corn - Renewable Ressource• Replaces petroleum-based plastic• 100% compostable in industrial installations
2/ Technical & economic argument
• Transparency - Food safety – Manual handling
• Small difference in price
But NEW issues are raised: Food shortage / Price / Supply / OGM / Technical constraints / No end of life solution No easy communication
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Communication
Test August 2005 : Biodegradability…
Launch April 2006 :
Renewable Resources
Today Dec 2007 : Detailed
info on Renewable
Resources & Industrial
Compost
Evolution
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Expectations : Industry & Authority
1/ Difficult to compare environmental
benefits :
Weight – Product safety – Raw material – Transportation – composting - Energy use – CO² - Recycle collection – etc…
Solution :
- Life Cycle Analysis ?
- Good communication from industry (% Ren. Resources / CO²)
- Certification ?
Trays for 6 apples
Weight / pc
Expanded Polystyrene (GE)
6 gram
Sugarcane (CH) 16 gram
Pulp (NL) 19,8 gram
Expanded PLA (IT)
18 gram
Printed carton (FR)
22,5 gram
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Expectations : Industry & Authority
2/ No concrete added value for custommer
Most Bio packaging are compostable (Home & Industrial)
• No selective collection in place
• Discussions at sector level (Fost Plus & Fedis)
OBJECTIVE:
Define what is best end of life solution
Check feasability of selective collection & ind. composting
12
Delhaize - Future plans
• Objective 1000 tons Bio packaging in 2010
• Enlarge scope to different types of Bio Packaging
• Develop packaging from recycled material
• Create coherent communication valid for all eco friendly packaging
• Further lobbying with Fost+ and Fedis to create added value for custommers