According to research by Forbes, 60% of consumers buy products and services from companies that are socially and/or environmentally responsible. This is a big deal as companies are finding out that if they are sustainable, they can attract more customers and increase their revenues.

In our last article for Chicagoland, we talked about the new type of consumers rising in the past few years: the conscious label-reader ones. They care about sustainability, where their food comes from and eating better. 

In this article, we are going to talk about the same subject, sustainability and traceability, but this time from a business perspective and regarding the production process. How green can your supply chain be? Do you know how to identify points of improvement and actually improve them? Keep up with us to check this out!

Sustainability and traceability

According to the United Nations Global Compact, traceability is: “The ability to identify and trace the history, distribution, location and application of products, parts and materials, to ensure the reliability of sustainability claims, in the areas of human rights, labour (including health and safety), the environment and anti-corruption.”

The value of traceability in regards to sustainability comes from a traceable system and the reliable information coming along with it. Third-party certifications are able to confirm any claims being made whenever material sources and production techniques are verifiable. 

Supply chains continue to expand their complexity, with almost all products requiring the collaboration of multiple businesses to complete the development of raw materials into final goods.

This article by Riverlogic shows us the importance of certifications across the supply chain: “Third-party certifications add trust to an otherwise opaque system from the consumer’s view. They allow businesses and their customers to unite behind common goals and values, which in turn can significantly increase brand value. These certifications can be used to verify claims relating to all four ‘pillars’ of sustainability. You may be familiar with some, like verified organic produce, sustainably harvested timber and fair trade practices, but there are hundreds of others.”

Is your supply chain green?

The answer to this question is different for every company and depends on many factors, such as the source of raw materials; what the chain of producers and suppliers looks like; how much energy is consumed in the production process; among other things. The supply chain is generally made up of raw material suppliers, manufacturers and retailers – but the risks and opportunities can extend well beyond this.

From a product point of view, when going through an analysis of the supply chain, some companies might think that theirs is too complex to have their sustainability claims verified. However, there are a few models to help you with that job:

• Product segregation: Using this model, all verified materials are separated from those that are not, never to be mixed again. A model like this is very important for industries like the food and beverages ones, where claims regarding organic, kosher, vegan, and halal products must be strictly enforced.

• Mass balance: The Mass Balance model focuses on the ratio of certified and uncertified materials, which can be mixed, as long as the final claims maintain the ratio/percentage of the inputs.

• Book and Claim: This model allows sustainability certificates to be earned and sold. It is used when supply chains are too complex to reasonably maintain product verification of any form.

By taking into account all key elements of a supply chain, businesses are able to assess their current level of performance and determine what needs to be done and when.

How can you push it forward to improvement?

Many brands are now adopting better managing strategies throughout their supply chain giving them transparency and traceability. Benefits of this strategy include:

• A quick and easy way to identify and assess your environmental risks;

• A framework for regular improvement and an easy way to benchmark other organizations in your sector. This also makes whether you are making good progress very clear 

• Improved efficiency in your supply chain – freeing up time for more important tasks;

• Reduced risk of regulatory sanctions or consumer boycotts over issues such as sourcing, workers’ rights, deforestation, etc. 

Quality management software

A software that helps you manage certificates and supplier documentation, by automating this work, can give your company time to bring improvements to production.

Otrafy is an AI-powered supplier management system that manages and optimizes supplier quality assurance processes. It provides actionable insights to mitigate vendor-associated supply chain risks. Otrafy also allows users to ditch other tools, such as Excel and email.

More than that, Otrafy helps you collect the data necessary to certify that your supply chain is green in a readable format with Otraforms. These added features mean fewer files, data centralization, and more convenience — all in a single interface. It’s the perfect tool for an environment with growing regulatory requirements and more demanding consumers.

Reach out to info@otrafy.com to know more about us and what we can do for your business.

Tables bring people together. Wonderful things happen at tables; ideas are exchanged, plans are made, mouths are fed. CFBN's sister organization, Bigger Table, founded in 2020, does this on a larger scale, bringing people and organizations together to help address issues in our larger community.

Bigger Table uncovers opportunities within our industry to deliver charitable and economic growth initiatives. With our thriving Chicagoland Food and Beverage industry and the dedicated work of community partners, we leverage a new kind of collaboration and get important things done.

There’s never been a better time to give or get involved. All tax-deductible gifts made to Bigger Table today are matched by ADM, up to $100,000, thanks to the recent grant from ADM Cares! Join the effort, help us build a bigger table by making a gift today.

Learn more, here: https://www.biggertable.org/donate/

Ingredients that were once considered "waste," or too "low quality" to be useful, are now considered relevant and nutritious. An increasing population, economic pressure, and shifts in attitudes towards certain foods have paved the way for opportunities to upcycle food ingredients. Because of this growing trend, formulating health-driven, sustainable foods is more pertinent now than ever.

This webinar is a timely guide for food technologists and manufacturers to get creative with new sources of fiber and protein while keeping up with current consumer trends.

‍To access the webinar recording,  CLICK HERE.

Back in our March 2020 newsletter, I shared a quote from Pope Francis that I hoped would spur much-needed optimism.  However, as the world begins to re-opens, I find it especially appropriate to revisit:

“Tonight before falling asleep think about when we will return to the street. When we hug again, when all the shopping together will seem like a party. Let's think about when the coffees will return to the bar, the small talk, the photos close to each other. We think about when it will be all a memory but normality will seem an unexpected and beautiful gift. We will love everything that has so far seemed futile to us. Every second will be precious. Swims at the sea, the sun until late, sunsets, toasts, laughter. We will go back to laughing together. Strength and courage."

On this same theme, I’d also like to commend our CFBN member Mars Wrigley for their Extra Gum “When It’s Time” advertising that so perfectly captures the joy of reconnecting. If you haven’t seen it, please click and take a look at its humorous and poignant take.

In short, as Chicagoland, the country and the world opens, I hope that we can all take a moment to appreciate the important connections between us all, and to savor re-connecting with the people and the world around us. To assist with this, CFBN will begin returning to in-person events starting this September.  We truly can’t wait to see you all!  Stay tuned as we make the necessary updates and roll out the revised calendar of events through the end of this year and into 2022. 

As transitioning events will take some time, we will continue to keep the network connected and growing through high quality virtual events.  We hope that you’ll continue to join us – in fact, next week’s Innovation Series: Taste the Trends -- Rebuilding & Reinventing is a perfect way to celebrate what we have learned from the pandemic and chart a course forward into the future.  Click below for details and registration.  We hope you’ll join us – and we look forward to reconnecting in-person in the very near future.

Best Regards,

Alan Reed

CFBN Executive Director

The full re-opening of restaurants, cafes, and related foodservice businesses is at the heart of our cities and communities. Learn More, here. 

The food and beverage industry was directly impacted by the rapid and unexpected changes in restaurant and at-home consumption over the past year. Now, with Chicago fully re-opening and the beautiful summer weather here, people are eager to dine out and excited to try unique flavors and food trends. As our industry continues to recover and re-engage to meet consumer demands, it is more important than ever to stay connected and informed with the latest news and trends.

To provide you with the latest trends, we are excited to feature a lineup of industry experts at our upcoming Innovation Series event Taste the Trends: 2021 - Rebuilding & Reinventing. Join us to explore how evolving tastes, changing menus, and innovation across companies will help foodservice and the larger food industry rebuild in 2021 and beyond!

 * Reserve your tasting lunchbox highlighting the savory Farmer's Fridge Red Chile Braised Pork Bowl by Chef Rick Bayless and tasty chips and guacamole. Try these innovative menu items during our exclusive Fireside Taste and Chat with Farmer's Fridge CEO and Founder Luke Saunders. 

Restaurant workforce insight 

By Jodie Jacobs - Dining Out - Eating In

Now that states are opening up businesses to inside visits and dining, restauranteurs are concerned about sufficient staffing and some diners are saying they understand but service is not not the same as pre pandemic.

Restaurant Business’ Bottom Line newsletter spotlights data on the challenge and Chicagoland Food and Beverage Network’s Connection Series is addressing the issues in an upcoming virtual conference.

According to data in a recent Bottom Line, the restaurant business “accounts for one out of every 10 jobs in the U.S.” and  that federal data just released said “the industry added 186,000 jobs in May,”  adding up to “one out of every three jobs the economy.”

A check with restauranteurs in the Chicago area showed that they still had take out and delivery orders but more guests were returning for inside dining.

CFBN panel at previous conference. (Photo from CFBN archives)

To hear industry experts on the challenges of doing better than just surviving the changing economic and social aspects of eating in and dining out check the Chicagoland Food & Beverage Network’s The Workforce Shift , June 15. from 8  to 9:30 AM CT. The conference looks at new employee and consumer expectations.

Speakers include: 

Greg Benefield, Managing Director, National Food & Beverage Segment Leader, Marsh

Michael Fassnacht, Chief Marketing Officer, City of Chicago; President & CEO, World Business Chicago

Lisa Johnson, Managing Director, Kincannon & Reed

Babatu Short, Vice President of Human Resources, HARIBO of America, Inc.

Margaret Sofio, Chief People Officer, Blommer Chocolate Company

Followed by a choice of breakout sessions.

Recent ransomware attacks have underscored that cybersecurity is a business issue, not an IT one. Now is a good time to check that your organization is implementing the right security measures to avoid or mitigate these sophisticated attacks.

Read CohnReznick's list of steps that can help keep your systems, data, operations, and extended enterprise safe.

READ MORE, HERE. 

Contact: Bhavesh Vadhani, Principal, National Director, Cybersecurity, Technology Risk, and Privacy 

703.847.4418

There’s a new contender in the chicken sandwich wars but with a refreshing twist! Shake Shack introduced a Korean Style Fried Chick’n Sandwich, and in true #foodie form, the peeps at Dempsey Food went in face-first to investigate!

Since Dempsey Food supplies authentic gochujang, kimchi and other Korean ingredients to food manufacturers, they took it upon themselves to provide their professional opinion on the big question: How is it?!

Pretty interesting, huh?! Learn more, here.

Lisa Demme

Marketing Director – Thought Leadership FONA International,

Vice Chair, Bigger Table

For me, and I hope for you as well, this spring holds the promise of renewal and abundance.  I am honored to share a bit about the unique and valuable partnership that FONA International has with the Chicagoland Food and Beverage Network and Bigger Table.  Through these partnerships we have been able to connect in a deeper and more meaningful way with both our industry and local communities.

FONA’s founder, Joe Slawek, chartered our Cornerstone Membership with CFBN just before its launch 4 years ago.  CFBN’s mission of “driving inclusive food and beverage growth through industry collaboration” resonated with Joe from a business perspective.  CFBN’s inclusion of both large and small companies was a powerful concept because it’s rare to have the opportunity to positively impact and nurture entrepreneurial start-ups. This spoke to Joe’s own business story and success.

Last year, just before our worlds changed with the COVID-19 pandemic, CFBN’s charitable arm Bigger Table was born.  A core team met virtually and decided to focus on one philanthropic initiative that could deliver a BIG impact to our local communities.  Thirteen companies participated in the pilot and proved that industry members can join together for a greater cause to collectively have a tremendous impact on the community.  Through donations of ingredients, formulation expertise, packaging, manufacturing line time and general industry knowledge, high-quality nutritious products were manufactured and delivered to local food banks and pantries to help support Chicagoland neighbors during this especially challenging time.

No one in America should have to go hungry.  That’s why in 2021, Bigger Table has set sights on growing its reach and expanding food insecurity efforts.  We believe that by focusing on increasing our impact, we have the capacity to deliver at least 1.5 million servings in 2021 and up to six million servings in 2022, with delivery well beyond the Chicagoland area.  We are actively seeking companies and individuals that want to spread their generosity, support charitable efforts, and invest in a program that feeds both body and soul.

Bigger Table goes beyond generosity – at FONA, we would call it generative.  It’s not just about giving but about generating – about creating. Together with our colleagues we are creating goodwill, creating value for the community, and creating bonds and unity with one another. I encourage you to reach out to me or any member of CFBN or Bigger Table to talk about how you might join in this incredible organizational effort focused on strengthening our communities and helping eradicate food insecurity.

Like FONA and our partners at CFBN and Bigger Table, you can make a difference for your community, for our industry, and for families around Chicagoland. I invite you to join us.

Pivot Energy deployed solar energy solutions at 23 Whole Foods locations, including the Richmond CA distribution center shown above.

The Food and Beverage industry leads on sustainability. From regenerative agriculture practices to the industry's increased transparency at the grocery aisle, Food and Beverage companies understand that sustainability isn't just good for brand perception; it is a competitive advantage. However, one critical component doesn't align with Food and Beverage companies' sustainability plans: the fossil fuels powering their facilities. With consumer demand for green products and corporate leadership, Food and Beverage companies need to think beyond the shelves to stand out.

The Business Case for Sustainability

Numerous consumer studies cite the rising preference among purchasers for responsibly-sourced products and their positive impact on corporate profits. A recent report from the Capgemini Research Institute notes that “79% of consumers are changing their spending habits based on social responsibility, inclusiveness, or environmental impact.” A IBM and the National Retail Federation found survey found nearly 6 in 10 consumers surveyed were willing to change their shopping habits to reduce environmental impact. Additionally, companies with sustainability offerings see accelerated growth, as noted by the Harvard Business Review.

As proven by these studies and many others, it is evident that more and more consumers care about where and what they are spending their money on, including paying a premium for brands who deliver on environmental stewardship. With this in mind, it is important to take a holistic approach when incorporating sustainability in your brand, including the very source of energy that powers your company’s facilities.

The Movement Towards “Green” Business Operations

Food industry giants such as Danone, General Mills, and Nestle are taking critical steps to reduce greenhouse gas (GHG) emissions from food production, which by some estimates, accounts for roughly a third of global GHG emissions. The COVID-19 pandemic hasn't slowed the green pledges, with new commitments announced by AMD, ConAgra, Cargill, and more within the last year.

Emission reduction efforts not only make for a differentiator in the grocery aisle, i.e., "this product was made in a facility powered 100% by clean energy," but companies can also achieve strong returns on investment for energy efficiency and renewable energy upgrades. This reality has been touted by many in the industry, from Environmental Social Governance (ESG) reports and investor updates. Just as brands are investing in resiliency in the supply chain, energy upgrades build resiliency into business operations.

Why Solar

Solar Energy is a powerful solution for Food and Beverage companies seeking to market their sustainability initiatives to consumers while reducing operating costs for their facilities or offices.

Investing in solar energy allows companies to take greater control of their bottom line and turn an electric expense into an asset. Every kilowatt-hour of energy produced by a solar array equates to one less unit of energy purchased from the utility, which is heavily reliant on carbon-intensive fuel sources. In addition, solar energy procurement is eligible for federal tax credits and incentives (location dependent) which accelerates project breakeven and increases returns. System owners benefit from the 26% Federal Investment Tax Credit (ITC), which equates to a 1:1 reduction in corporate tax liability. Add to this Bonus Accelerated Bonus Depreciation, these two tax vehicles alone equate to almost half of project costs recouped via tax vehicles. Additionally, many states and utilities offer incentive income atop of these benefits. These benefits make solar more accessible and are worth exploring now before some phase down.

There has never been a better time to explore solar energy for your facility. In addition to operating cost savings and incentives, the drastic drop in system costs has largely plateaued. Meaning any additional brands stay on the sidelines waiting to invest, risk losing out on valuable financial benefits while continuing to pay increasingly expensive electric bills. Additionally, if a capital outlay is not feasible, third-party ownership structures like a Power Purchase Agreement (in which a financier receives all the incentive benefits and provides a Day 1 utility rate lower than the current utility rate) make solar more accessible. There are even options for offsite solar subscriptions if a facility is not suitable for onsite solar.

Solar Energy offers a compelling investment and it is certainly the sort of company evolution worth sharing with your customers and employees. From packaging promotion to internal messaging, today’s solar energy procurers are proud to share they have made the switch to clean energy.

Getting Started with Pivot Energy

Pivot Energy is a turnkey solar developer with over 500 commercial and industrial projects nationwide. Connecting with a qualified developer like Pivot Energy ensures you have the expertise needed to properly understand your unique energy needs and effectively navigate your portfolio. Pivot is an experienced partner of the Food & Beverage industry, helping clients unlock the many benefits of solar energy. Reach out to our team today to get started with a free consultation to see how much you can save with solar!

Author: Gerald Espinosa

Contact: gespinosa@pivotenergy.net, 888.734.3033 x 709