Search results: walmart

The Business Roundtable’s Statement (and see B Corporation Statement below)

The Business Roundtable, an organization of corporations, issued a statement last week—in a two-page advertisement with all the signatures in the Wall Street Journal, no less—that got this New York Times headline: Shareholder Value Is No Longer Everything, Top C.E.O.s Say.

What?  This is some kind of joke, right?

I’ve been arguing for years that the Shareholder Value Movement, which forced corporations to single-mindedly focus on maximizing profits at the expense of every other societal value—attention to the welfare of workers, farm animals, public health, environmental protection—is responsible for just about everything that is wrong with our food system.

Corporations are now saying that they are committing to change that?

The Business Roundtable’s press release says that it is redefining the purpose of corporations to promote an economy that serves all Americans—customers, employees, suppliers, communities, and shareholders.   Here is its website with all the commitment info.

Its statement, signed by nearly 200 corporations, commits them to [with my comments]:

• Delivering value to our customers [they aren’t already doing this?].
• Investing in our employees. This starts with compensating them fairly and providing important benefits [this would indeed be a groundbreaking improvement].
• Dealing fairly and ethically with our suppliers [they weren’t doing this either?].
• Supporting the communities in which we work [another excellent idea].
• Generating long-term value for shareholders [isn’t this what they’ve been doing to the detriment of everything else?]

This sounds good, but how do they plan to solve the central dilemma?  How do they intend to pay workers decent wages, improve the communities in which they operate, and stop damaging the environment—and still maximize benefits for shareholders?

No surprise, they don’t say.

Also, as the Times noted,

There was no mention at the Roundtable of curbing executive compensation, a lightning-rod topic when the highest-paid 100 chief executives make 254 times the salary of an employee receiving the median pay at their company. And hardly a week goes by without a major company getting drawn into a contentious political debate. As consumers and employees hold companies to higher ethical standards, big brands increasingly have to defend their positions on worker pay, guns, immigration, President Trump and more.

I looked for food corporations among the signers (sorry if I missed any):

• Aramark
• Bayer (it owns Monsanto)
• Coca-Cola
• Land O’Lakes
• PepsiCo
• Procter & Gamble
• Walmart

This is a small list.  Where, for example, are Mars, Nestlé, and Unilever?

I see this as flat out public relations, a response to increasing public distrust of corporate America and demands for corporate accountability.

If the signers mean business, let’s see them deal with workers’ wages right away.

Otherwise, I’m not holding my breath

The B Corporation Statement

And here’s more.  Sunday’s New York Times carried this advertisement from Certified B Corporations “meeting the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose.”

The ad is addressed to Business Rountable CEOs.

We are part of a community of Certified B Corporations who are walking the walk of stakeholder capitalism…We operate with a better model of corporate governance—benefit corporate governance—which gives us, and could give you, a way to combat short-termism and the freedom to make decisions to balance profit and purpose.

Among its food company signers are Ben & Jerry’s, Cabot Creamery Cooperative, Danone North America, King Arthur Flour, Sir Kensington’s, Stonyfield Organic, and Stumptown Coffee (there are others, as well).

I read this as a challenge: if the Business Rountable CEOs are serious about ensuring as B Corporations do, that “the purpose of capitalism is to work for everyone and for the long term,” why don’t they start by becoming B Corporations?

Until they do, the Business Roundtable statement is smoke and mirrors, to distract us from the damage the corporations are doing to our society and to our democratic institutions.

I recently received an email from a public relations representative of Soylent, the company that makes those powdered meal replacements.  My NYU department once conducted a Soylent tasting. Our conclusion: it may meet nutritional requirements, but it tastes like uncooked pancake batter.

Soylent is pushing hard to get its products into your hands.

Hence the PR announcement that Soylent was donating 100,000 meal replacement packages to New York City’s Island Harvest Food Bank and City Harvest, “as part of their #SoylentForGood initiative.”

Donating Soylent to Food Banks?

Food Banks accepting donations of Soylent?

I had trouble getting my head around this so I wrote the PR person to check whether the donations were Soylent products or real foods and meals.

Soylent, of course.

Making sure that hungry people get fed is unarguably a Good Thing, but needs consideration about choice, dignity, the kind of society we want to live in, and, not least, food quality.

Soylent as a means to feed the hungry?

The mind boggles.

I keep saying that food companies are not social service or public health agencies and should not be viewed as such.  They are businesses, and everything they do must aim to promote sales and returns to investors.

BakeryandSnacks.com, an industry newsletter to which I subscribe, has collected several of its articles on the anti-hunger activities of its member companies.  Is this public health or public relations?  Read and decide.

• Editor’s Spotlight: The food companies committed to fighting world hunger: World hunger remains a persistent crisis, with approximately 842 million people going hungry every day. We look at the bakery and snack giants that are leading the fight against hunger and malnutrition. Read more
• Cereals on-demand: UN to pilot ‘game-changing’ Food ATMs for African refugees: The United Nation’s World Food Program (WFP) and World Vision International (WVI) are planning to pilot automated teller machines (ATMs) in refugee camps in East Africa, which dispense locally sourced foods like cereals; much like a banking ATM dispenses cash. Read more
• Consumer watchdogs call out Kellogg’s for allegedly slashing fortification in Mexican children’s breakfast cereals: Three consumer watchdogs contend that Kellogg’s has allegedly removed essential micronutrients in its breakfast cereals sold in Mexico, despite 1.6 million children in the country suffering from chronic malnutrition. Read more
• Researchers develop disease-resistant climate-smart grains to help eradicate poverty in Africa: The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) says it foresees rolling roll out new varieties of drought- and disease-resistant grains to African farmers next year to increase food security in the region. Read more
• Calling for entries: General Mills launches second Feeding Better Futures Scholars Program: General Mills is again calling on young innovators across North America for solutions on hunger relief, food waste and sustainable agriculture. Read more
• Call to action: FAO places nutrient-rich millets center stage to boost global innovation: The UN’s Food and Agriculture Organization (FAO) has approved India’s proposal to observe 2023 as the International Year of Millets. Read more
•  Kellogg’s partners with global food banks to get the most needed foods to people in need: Kellogg is collaborating with Feeding America and The Global FoodBanking Network to make it easier for people to fight hunger by donating the foods hungry families request most from food banks across the globe. Read more
• Cereal giants Kellogg, Post and General Mills partner with Walmart to #fighthunger: Kellogg Company, Post, PepsiCo, Unilever, General Mills and ConAgra Foods are some of the suppliers to have joined with Walmart in its ‘Fight Hunger. Spark Change’ program in the US and Puerto Rico. Read more

The USDA recently announced a new pilot program for New York State participants in the Supplemental Nutrition Assistance Program (SNAP).  They will now be able to use their Electronic Benefit Transfer cards to buy foods online.

At first glance, this seems like a terrific idea for solving problems of limited access to healthy foods (“food deserts”), and it gives SNAP participants more options and easier access.   Yes!

But participants will have to pay service or delivery charges with their own money.  For this and other rules, see the SNAP Online Purchasing pilot webpage.  Will they end up paying more or less for foods?  We will have to see how the pilot plays out to know.

At the moment, one clear conclusion is the benefit to Big Retail.  Amazon and ShopRite will run the program in New York City.  Walmart will run it upstate.

Amazon, for example, is promoting this pilot project with a video.

Nevin Cohen, writing in Civil Eats, has the best analysis of this program I’ve seen so far.

For those who have worked for decades to make healthful food available in low-income communities, the pilot has the potential to be a game-changer, enabling them to shift attention from physical access to supermarkets to the economic inequality at the root of food insecurity. But if the SNAP pilot will actually make people healthier, six questions demand attention [his article discusses these in detail]:

1. Does Online Shopping Mean Healthier Choices?

2. Will Shopping at Home Make People Less Active and More Lonely?

3. Will Local Food Retailers be Able to Compete?

4. Will it Be Bad for Worker Health?

5. Will it Increase Environmental Health Problems?

6. Will it Create a Digital Food Divide?

SNAP, Cohen points out

is moving online, whether we like it or not, and ignoring the fact that in a few years some 40 million people will change their grocery shopping habits would be a serious mistake. As the physical barriers to food fall away for SNAP participants, it will be up to policymakers and the public health community to ensure that the food retail sector—virtual as well as brick and mortar—supports healthy diets and true access for all.

I think this collection of articles from FoodNavigator on the dairy industry is especially clear in revealing three notable trends: (1) the ongoing decline in milk consumption, (2) a more recent decline in yogurt consumption, and (3) an increase in production, availability, and marketing of dairy products high in fat.  Take a look:

 Special Edition: Dairy innovation

It’s been a challenging year for many dairy brands, with continued weakness in fluid milk and yogurt categories and growing competition from dairy-free alternatives. But there has been no shortage of innovation, spanning everything from ‘intentionally less sweet’ high protein yogurt launches to  whole milk and even ‘triple cream’ offerings as fat roars back in some parts of the category.

• Retail sales of French-style yogurt Oui have topped $100m, says General Mills: US retail sales of yogurt have tailed off in the past two years as Greek has lost its luster. But this is just a temporary blip, predicts the president of General Mills’ US yogurt business, who is confident the overall category will return to growth… Read
• Peak Yogurt taps into keto trend with 17% milk fat ‘triple cream’ yogurts: ‘Milk fat is one of nature’s original superfoods’:  Fat is back in the dairy aisles, if the recent proliferation of products touting their whole milk (c. 3.5% milk fat) credentials is anything to go by. But San Francisco-based start-up Peak Yogurt is taking the trend one step further in a bid to carve a niche in the market with ‘triple cream’ yogurts boasting 15-17% milk fat with low or no added sugar that tap into the keto trend… Read
• Tillamook CEO talks dairy innovation and ambitions of reaching $1bn in sales:  Tillamook County Creamery Association has had a loyal regional following in the Pacific Northwest for more than 100 years (founded in 1909), but in order to secure its next 100 years the dairy co-operative needed to execute a national growth strategy set forth by CEO Patrick G. Criteser who has ambitions of hitting $1bn in annual sales… Read
• Whole-fat and convenient merchandising drive dairy sales moving forward, IRI:  Fat has not only become more accepted among consumers but also the focal point of many popular diets such as keto and paleo. As a result, sales of some, not all, whole-fat dairy products are reaping the benefits of a renewed interest in fat influenced by convenient merchandising at retail, according to IRI… Read
• Full fat and Icelandic pockets of growth in lackluster US yogurt market; while flavored milk and lactose-free help offset declines in fluid milk:  US retail sales of yogurt have continued to fall over the past year, although there have been pockets of growth in Icelandic style and full fat products, according to data from Nielsen and SPINS… Read
• American cheesemakers must balance innovation & cost with consumer education to thrive:  Free from the constraints of the appellation d’origine contrôlée that dictate how cheese in Europe is made, American cheese makers are able to add innovative twists to traditional methods to create unique products that meet evolving consumer demand, according to leadership at the American Cheese Society… Read
• Siggi’s launches whole milk Simple Sides, says top line grew 36% in latest 52 weeks:  Icelandic skyr brand siggi’s aims to expand its share of the US yogurt market with a move into the ‘mix-ins’ category via the launch of Simple Sides, a new line of whole milk skyr with a side of dried fruits and nuts containing no added sugar… Read
• Chobani gears up for national rollout of low sugar, high protein, Hint Of yogurts:  Chobani is rolling out its Hint Of… low sugar, high protein, Greek yogurts nationwide in August following a successful debut in the Pacific, Northeast and Florida markets, with ‘new formats’ of the brand hitting stores in January 2019… Read
• Arla introduces skyr cream cheese line: ‘We’re trying to get in early on that adoption curve…’:  It’s not as big as Greek just yet, but the explosive growth of Icelandic skyr in the yogurt aisle could inspire a flurry of skyr-infused spin-offs in other parts of the store, predicts Arla Foods Inc, which has recently launched a skyr cream cheese in the US market with three times the protein and just over half the calories of regular cream cheese… Read
• General Mills unveils ‘intentionally less sweet’ YQ by Yoplait: ‘It’s unlike anything that exists in the yogurt aisle today’:  Following on from the success of its French-style yogurt Oui, General Mills has unveiled YQ by Yoplait, a 99% lactose-free yogurt made with ultra-filtered milk (milk filtered to concentrate the protein and reduce the lactose/milk sugar) that “delivers big on protein with an intentionally less sweet taste.”.. Read
• Ample Hills Creamery hopes square pints will build brand awareness, loyalty and community:  By thinking inside the box, the husband and wife duo behind Brooklyn-based ice cream company Ample Hills Creamery hopes to better connect consumers to each other and the brand with the launch of unique square-shaped pints at retail… Read
• Got milk? Yes, but not as we used to know it, Jim:  While sales of plain dairy milk have been declining for years, and US yogurt production has dropped off after peaking in 2014, new data shows the continued growth of cheese, butter, and ready-to-drink coffee, yogurt drinks and protein beverages featuring dairy milk, suggesting that the growing interest in all things plant-based has not prompted a mass consumer exodus away from dairy, but that consumption habits are changing… Read
• Plant-based and dairy drive growth in yogurt side-by-side, Danone exec says:  While still growing at a healthy clip, the yogurt category is slowing slightly – but Danone North America still sees significant potential for the segment, especially related to options that are plant-based, lower in sugar, packed with science-back probiotic strains and dairy-based, according to a top company executive… Read
• Children are drinking less milk and juice as they get older… But what are they drinking instead?  New government data* shows that water accounted for 43.7% of beverage consumption among US kids aged 2-19 in the period 2013-2016, followed by milk (21.5%), soft drinks (19.9%), and 100% juice (7.3%)… Read
• a2 Milk rolls out at Walmart: ‘It’s a real validation of our business proposition’:  Tummy-friendly brand a2 Milk is now in more than 6,000 stores in the US, including Walmart. However, the reception from the wider dairy industry has been “lukewarm at best,” claims its US CEO Blake Waltrip: ‘There’s an irrational fear that this is somehow going to vilify milk, when in fact it’s going to bring consumers back to milk.”.. Read

Susan L. Marquis.  I Am Not a Tractor!  How Florida Farmworkers Took on the Fast Food Giants and Won.  ILR Press, 2017.

Susan Marquis is the Dean of the Pardee RAND Graduate School and an unlikely person to be writing this book.  Her background is in military defense, which she describes as “guns and bombs” (her previous book was Unconventional Warfare: Rebuilding US Special Operations Forces).

As she explains, it was inspired by Barry Estabrook’s article in Gourmet about the harsh treatment of tomato pickers in Florida, later incorporated into his superb book, Tomatoland.  Estabrook blurbs her book (“detailed, academically rigorous, and impossible to put down”).  I agree.

The book tells the story of how the Coalition of Immokalee Workers fought for higher pay and, after much struggle, got it.  Here’s how to find out what it took to get retailers like Walmart and Ahold to agree to pay one cent more per pound—and what a difference that made.

Marquis’ take home lessons:

• Real change has to come from the workers’ themselves (it can’t be led or forced from the outside)
• To change systems, you need to understand them
• To gain allies, you must have a cohesive, consistent, compelling story
• Leaders must have courage, objectivity, creativity, and persistence

Forbes has published a ranking of the top 2000 global companies (all kinds, not just food) by a composite score of revenue, profit, assets, and market value.

Forbes summarizes some of the information for food processing companies.  By its measure, Anheuser Busch, Nestlé, and PepsiCo are the top three.

Coca-Cola, however, ranks #209, a big drop from last year’s #86.  It did not have a good year last year.

You can sort the list by name or category.  I did that for four categories: Beverage, Food processing, Food retail, and Restaurants.

Walmart does not show up as a food retailer; Forbes considers it a Discount Store, even though food accounts for nearly half of Walmart’s revenues, nearly $200 billion a year.

Here are the food, beverage, retail, and restaurants that show up as among the top 250 companies, worldwide.  I only included sales and profits in this  table; you would have to add in assets and market value to understand the ranking system.

Food, beverage, retail, and restaurant companies among the biggest 250 companies worldwide.

*About 40% of sales are from food.

This is why Walmart is the elephant in the food-business room.

The New York Times describes the enormous gap between the pay of company chief executives and their employees.

Its two printed pages of lists compare CEO total annual compensation (in millions of dollars) to the median pay of employees (in $ thousands).  

Median means half the employees get that amount or more, but the other half gets that amount or less.

I looked for the data on companies that produce, food, beverage, or agricultural products.  I could not find many (where is Coca-Cola?).  Several of the companies of interest—Monsanto, Sysco, and Procter & Gamble, for example—list the pay of the CEOs, but not employees.

Even so, the comparison is striking.  Repeat: CEO pay is in $ millions; worker pay is in $ thousands.

The Times interactive lists provide calculations of the ratios (and its account explains the limitations of these data—part-time work, etc).

If you need quantifiable evidence for income inequality, here it is.