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GOURMET NEWS www.gourmetnews.com n JUNE 2017 n GOURMET NEWS 1 0 4 Natural Foods Companies Band Together to Combat Global Warming By Lorrie Baumann Natural food producers are mobilizing to take the lead in the fight to reverse climate change caused by human activity. It's just good business to reduce the potential risks of global catastrophe, they say. "Growing food is dependent on a climate that's con- ducive to growing food," said Sheila Ongie, Sustainability Specialist for the National Co-Op Grocers Association. "Our entire in- dustry in food is dependent on a stable and predictable climate." "It's important that we bring our philo- sophical understanding into the heart of commerce," added Gary Hirshberg, Chair- man and former Chief Executive Officer of organic dairy producer Stonyfield Farm. "Until November 8, we thought we were winning. This shows us how fragile it is." March 8 marked the official launch of a new Climate Collaborative, an association of natural food manufacturers, retailers, dis- tributors and suppliers from the natural foods industry who have banded together to take action on a problem that's already hav- ing negative impacts on their particular busi- nesses as well as on the planet in general. "You know that things are happening, and climate is changing," said Katherine DeMat- teo, the Executive Director of the Sustain- able Food Trade Association and a leader in the Climate Collaborative, which announced its initiative in Anaheim, California, during a conference day leading off the annual Nat- ural Products Expo West. "There's opportu- nities in there for us to take the initiative.... Our idea is to inspire and ignite." The Climate Collaborative is drawing its leadership from a range of natural products manufacturers, business and policy consult- ants and non-profit organizations already working on issues related to food sustain- ability and climate change. They found a ready audience among the Natural Products Expo West attendees, which include many companies that had already set themselves goals for energy conservation and reduction of their carbon footprints and who were eager to make their commitments with re- spect to climate change public in this forum. "We clearly have a consensus for action – maybe not a unanimous agreement," said Tobias Schultz, the Manager of Corporate Sustainability Services for SCS Global Services, which provides third-party certifi- cation and auditing for companies pursuing sustainability objectives. "If you think of tackling the climate change puzzle that has to be solved, we have begun to put together some of the pieces." Schultz noted that scientists across the globe agree that the Earth has been warming since the Industrial Revolution began around 1750, and that warming accelerated around the time of World War II, leaving us today with average temperatures shattering all records. They also have a strong consen- sus on what we can expect the Earth's cli- mate to do over the next few decades, he said. "We probably have five or 10 years at the most" to control greenhouse gas emis- sions before desperate measures would be required to stop the Earth from becoming unlivable, he suggested. The Climate Collaborative is urging companies to take action on climate change in nine areas: agriculture, energy effi- ciency, food waste, forestry practices and deforestation, packaging, engagement in climate policy, renewable energy, emis- sions of climate pollutants and transporta- tion. Each of those areas has been identified as an area in which natural prod- ucts business leaders can make decisions and take actions that have an impact on the future of climate change, according to the Collaborative. Schultz noted that globally, agriculture is responsible for about 35 per- cent of greenhouse gas emissions, freight transport accounts for about 6 percent of greenhouse gas emissions and food waste is estimated to create about 2 to 3 percent of greenhouse gases, mainly as methane re- sulting from food decomposition. SCS Global Services recommends a five- step process relative to climate change, start- ing with measuring a company's carbon footprint, Schultz said. Once a company has collected data and calculated the magnitude of its carbon footprint, it's in a position to set targets for reduction and to set policies to reduce emissions. SCS Global Services generally recommends that companies con- sider using carbon offsets to achieve carbon neutrality and then to verify neutrality and report that to the public as part of a corporate transparency initiative that can drive busi- ness value. "You have to be able to connect it to business values," Shultz said. "There's no reason you can't do that." Companies have three avenues for en- hancing their business value with public commitments to action on climate change, according to Schultz. They can use climate- friendly marketing to boost sales, they can use climate-friendly messages to enhance brand recognition, and they can anticipate and mitigate supply chain disruptions that result from climate change. Examples of companies using their greenhouse gas emis- sion planning to enhance their brand include Delta Airlines and Biogen, a pharmaceuti- cals manufacturer, while Guayaki, a pro- ducer of yerba mate, is gaining recognition for its commitment to restore 200,000 acres of rainforest by 2020, which will produce 1,000 new jobs in the areas of South Amer- ica in which its yerba mate is grown. Target issued responsible sourcing goals just last November that include a climate change plank, and the mass market retailer is cur- rently developing plans to align its global supply chain with that program, said Jen- nifer Silberman, Target's Vice President, Corporate Social Responsibility. Stonyfield Farm, Inc. has measured more than $40 mil- lion in savings due to investments in climate change, Hirshberg said. Those investments include redesigning product packaging to re- duce weight and measures to improve sup- ply chain security, he said. "It isn't just supply availability – it's price," he said. The savings also come from improved employee retention and recruitment, Hirsh- berg said, adding that data suggest that 70 percent to 80 percent of Millennials make their purchasing decisions based partly on issues like climate change. Those values are also reflected in their decisions about where they'll make a living, he said. "They want to work for companies that are part of the solution," Hirshberg said. "This is a very powerful retention tool." Tapping Into the Homebrew Market By Micah Cheek Home brewing kits are becoming a popular gift for hobbyists, but marketing and selling the kits poses some unique challenges. Patrick Bridges, Vice President of Sales and Market- ing at Cooper's DIY, notes that holiday sales for the Mr. Beer kit are reflecting strong inter- est in the hobby. "It was a tremendous re- sponse, we experienced better sell though this year than many past years. By really identify- ing with the craft beer movement, I think it re- ally resonated with consumers," says Bridges. "People do it because they can create new beers and share. Beer is made for special oc- casions, holidays and birthdays. Typically, the purchaser is the foodie, they're interested in cooking and natural ingredients." Part of the appeal of these kits is premixed ingredient sets that not only allow home brewers to make classic favorites like IPAs and stouts, but replicate award-winning and hard to find brews as well. "Many craft beers, they can't distribute outside of their state, with a commercial system that isn't al- ways able to bring beers to where you live," says Bridges. "We took a couple gold medal winners and cloned their beers. It's a collab- oration. If you can't get it, make it." Bringing home brewing to retail spaces has presented some unexpected insights. "We sell in liquor stores and they don't do very well. People are there for instant grati- fication. Any kind of kit doesn't do well at liquor stores," says Bridges. "Our kits are usually sold in the kitchen or housewares department. They're often in the top 10 sell- ing products during the holidays." But the brick and mortar space still presents some marketing issues. "It's a long process. You can't make the beer there, plus you can't serve it. It has unique challenges in that re- gard," says Bridges. "Where possible we have videos we can loop to show how easy it is. The way to get people interested is to taste the beer, but we're unable to execute that at retail for obvious reasons." With expanding home brewing interests, options other than beer are getting attention. "Last year we introduced Hacked Root Beer. Things like that and some of these hard sodas are trending now. Those seem to be really driving the trends rather than ciders," says Bridges. "The big trend now is barrel- aged beers. We add wood chips, so you don't have to put it in a barrel." 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