WAKEFERN/SHOPRITE Supermarkets: Co-opting GREEN the RITE Way

Armed with Wakefern’s innovative sustainability platform, ShopRite members champion personal sustainability paths and team up to maximize winning strategies.

This year’s sixth annual retail sustainability award beckons a new and unique dimension. As the first cooperative to win the honor — this is not just any co-op — it’s the largest retailer owned co-op in the U.S. Capitalizing on inherent and rare dynamic structural attributes, corporate executives and independent members collectively breathe sustainability and jettison green across a wide and varied swath.

Wakefern Food Corporation, based in Keasbey, NJ, is ShopRite Supermarkets’ procurement and warehouse distribution arm. The company provides members with a host of services and resources, from common marketing and advertising programs to engineering systems, promising technologies, and food safety best practices, among others. The core pillar, though, is its cleverly collaborative sustainability platform and tactical implementation and measuring tools, such as its Retail Green Team Sustainability Tool Kit, which garnered a coveted Award of Publication Excellence [APEX] for Education.

Wakefern corporate executives modestly accepted the award, crediting the success to its members, and emphasized the importance of honoring the 50 multi-generational families, who independently own and operate some 250 ShopRite Supermarkets, as well as seven Fresh Grocers between them. Wakefern also has a group of 33 wholly owned ShopRite stores and 54 corporate-owned PriceRite stores.

The cooperative’s sustainability commitments strongly intersect with the produce department and its operations as well as procurement, critical touch points in the members’ individual accomplishments as well as their collective mission toward green, according to Derrick Jenkins, vice president produce and floral at Wakefern Food Corp. [See Q&A on page 30.]

ShopRite members/owners serve a wide spectrum of communities across the Northeast and neighboring regions, with stores in New Jersey, New York, Connecticut, Delaware, Maryland, and Pennsylvania.

Joining Forces

“Our structure is unique,” says Suzanne Forbes, Wakefern’s environmental affairs administrator. “Our members own Wakefern, which is different than many other cooperatives. All members share resources to help them compete with international firms,” she says.

“It’s a pretty tight family. We adopt policies as a group and do things through committees — Produce, Quality Assurance, Environmental, etc., which include both members and Wakefern staff. We identify initiatives, such as energy, waste and water use reduction we believe is worthwhile for our members to pursue, along with co-op goals, guidelines and tools to move forward,” she says, keen to point out, “Our members are all eager to become more sustainable organizations and at the same time get costs out of the system.”

The Sustainability Committee focuses on members, who help identify new opportunities, such as a Fair Trade initiative, sustainable packaging, or retail tool kit for measuring impacts. “We meet quarterly, and then subcommittees take action. In the past couple of years, we’ve experienced an influx of companies coming in with claims of products being eco-friendly or green,” says Forbes.

Realizing the need to discern these claims, Wakefern formed a new Category Management Training Committee to glean and disseminate basic knowledge on these products, as well as discover better ways to merchandise and promote them.

“We always believe we should begin the sustainability journey here at home before requiring such edicts from our suppliers,” says Forbes. At the same time, “We are looking to work with more sustainable companies and brands,” she says. “We will be partnering with suppliers on a fairly new initiative to start our own private label sustainable packaging.”

Wakefern runs a company-wide recycling program, where members collect all types of materials, including cardboard, wooden pallets, plastic bags, floral buckets, and food packaging across departments to funnel back to Wakefern, which manages the process.

“We’ve also helped members set up food waste recovery programs, connect with vendors and assist in negotiating contracts for more favorable rates,” says Forbes.

While Wakefern and its members are invariably bonded, members remain self-determining. “Members are independent, and we don’t mandate sustainability measures,” emphasizes Forbes. Still, they want to be on board, evidenced by the fact that members not only reach goals but also often far exceed them, according to Karen Meleta, vice president of consumer and corporate communications at Wakefern.

Store owners accumulated prestigious government and industry-based sustain-ability awards, she explains. These include Outstanding Achievement in Food Waste Prevention and Diversion from the Environmental Protection Agency (EPA), multiple EPA Gold Green Chill Award Certifications, in addition to state and local recognitions for establishing smart, sustainable workplace and community programs.

Dual Strategies And Definitions

In certain instances, separate corporate sustainability programs complement those of its individual members and vice versa. For example, Wakefern Food Corp. undertakes a far-reaching and impactful campaign to fight hunger.

“At the corporate level, we’ve had a dedicated partnership for many years with the main food bank here,” says Jenkins of the produce department’s strong commitment to food waste recovery and diversion. “This is a larger program, but members also have their own relationships with food banks in their communities,” he says, adding, “We don’t do composting here, but various members do.”

While Wakefern has its own direct relationships for local procurement, there are limitations. “Since Wakefern has responsibility for the overwhelming procurement of products, some farming operations are too small for us, but may have a relationship with an independent ShopRite member,” says Jenkins. It could be a local corn grower, a small orchard or a farm that doesn’t have enough product to accommodate the total chain, he says, emphasizing that food safety best practices and training are a critical underpinning of all programs.

“There are quite a few of these local operations, and we find more and more small family farms growing specialty mushrooms or peppers. Customers really appreciate when their neighborhood store brings these in,” says Forbes. “We would not necessarily define local solely from a sustainability point of view, but to that degree, it reduces travel, supports local businesses, and helps to build and sustain the community. Still, there’s lots more to it in terms of land management and other variables, says Forbes.

“We do Fair Trade flowers, and from the perspective of paying people fair wages and improving lives, this is truly a sustainability initiative, she explains, pointing out, “The organic produce area continues to grow, but we’re not necessarily saying organic equals sustainability. That’s a consumer perception.”

A Perfect Union

“Our advantage as a co-op of 50 separate operators is our power in product and services to compete with much larger chains, while maintaining autonomy for our associates and customers,” says Joseph Colalillo, chairman and chief executive of Wakefern Food Corp. since 2005 and member of its board of directors since 1988. He also is president of ShopRite of Hunterdon County, with three stores in New Jersey, and two more to open this year in Pennsylvania. “As members, we have certain rules and regulations we follow, but we remain local and independent,” he says.

“Joe Colalillo is definitely a champion of ours with sustainability and a very supportive ally,” says Forbes. “He was one of the first to do composting, grabbing the bull by the horns. As a store owner, he hears from his customers on a daily basis and knows what’s important to them.”
A long-tenured ShopRite member and sustainability advocate, Colalillo brings an informed perspective to the table. “As Wakefern chairman, I try to keep us focused, working hand in hand with corporate, members and customers. Our whole co-op is based on relationships. It’s all about making every member successful. It’s the fabric of who we are.”

Growing sustainably is a part of that. “Our sustainability program enables all of us, from the associate bagging groceries or cutting vegetables to the store manager, to have a purpose. I can do something bigger that my company believes in and make a difference,” he says. “We have a great foundation of associates that really believe in volunteerism. They want to make their stores and communities better.”

Green Teams

Green Teams are part of a company-wide collaborate strategy at both the retail and corporate levels, drawing in volunteers from all departments and job positions to seek out opportunities to bring to corporate, and generate thoughtful sustainability solutions.

“Green Teams (started at Wakefern within the past five years) are a cornerstone of Wakefern/ShopRite sustainability,” says Colalillo. They represent a philosophy. It’s no different than customers giving feed-back,” he says. “We can talk about recycling cardboard bales and larger programs that will be top-driven, but Green Teams are about those people throughout the company getting the ideas, and about how to capitalize on those ideas.”
Green Teams are a mechanism to encourage participation and empower employees, he continues, noting that Green Team members are all volunteers. The Environmental Affairs Department has tools for them to use.

(L-R) Melissa Kenny of Delaware Supermarkets and Suzanne Forbes of Wakefern speak at the Food Recovery Challenge Benefit. Wakefern offers a sustanability toolkit for its 250 plus stores to support the EPA Food Recovery Challenge and additional ways to reduce food waste.

Colalillo has hundreds of people working for him, and Green Teams provide a way for them to have a voice. “These associates work hard; it’s a labor- intensive business and not easy,” he says. “Green Teams are not just contributing to the welfare of the company and customers but also to the community and the Earth.”

A Sustainable Outcome, Naturally

This cooperative structure has been a critical asset in propelling its members’ sustainability efforts by creating an ideal balance. On one hand, members enjoy advantages that avail an independent family retailer — risk-taking agility and flexibility to change course on a dime. They also benefit from close ties with their communities and grassroots-savvy ability to adapt to their changing marketplace and tailor programs to the local customer base. Yet members can capitalize on the corporate advantages of joining forces, whether gaining efficiencies with buying power and economies of scale or participating in Wakefern’s Biennial Sustainability Summit. It is here, according to Meleta, where members present their findings on various sustainability projects, meet vendors, attend workshops with experts and swap brainpower on what worked and in some cases what didn’t.

It led members to highly successful food waste recovery, composting and recycling programs, drastic reductions in energy use by revamping store refrigeration and lighting systems, while experimenting with hopeful technologies, such as solar and electric car charging stations. From Fair Trade to locally-grown to food bank partnerships and community outreach, sustainability envelops the cooperative with the produce department being an integral component.

Honoring Members

With members at varying stages in their sustainability journeys, PRODUCE BUSINESS elicited the help of Wakefern executives to select several storeowners to profile.

“These are members in the forefront of sustainability, taking the lead in piloting programs or doing something exceptional,” says Meleta.

On the following pages, PRODUCE BUSINESS set out to tell their personal stories of investing in sustainable alternatives based on needs and circumstances within their stores and communities; as well as the role Wake-fern plays in bringing their goals to fruition.

The Individuals Behind The Cooperative

PRODUCE BUSINESS profiles a range of ShopRite members that embody the core Wakefern principles, and embrace company-specific sustainablity initiatives.

Whether it be a Russian immigrant or fourth generation grocer, these individuals and their families have made huge strides in the Wakefern cooperative. The next series of profiles introduces the sustainability innovation and passionate creativity behind stores that range from mom-and-pop style grocers to mega stores within the Wakefern family tree. Over the years, owners formed special kinships with their clientele, and they discuss their philosophies to successful business practices.

RICK SAKER

vice president of operations, Saker ShopRites, Inc.

About Saker ShopRites, Inc.

Beginning with a small “mom and pop” store, which opened in 1916 in Freehold, NJ, the Saker family has operated grocery stores for almost 100 years. Saker ShopRites owns and operates 30 supermarkets in central New Jersey.

Composting

Rick Saker, vice president of operations, officially started at his family business, representing the fifth generation, when he was 15, and has worked in just about every department and aspect of the business, getting a masters degree in inter-national food marketing along the way.

There is one area of responsibility, however, which especially gets Saker excited. “Sustainability programs span my responsibilities, and we’ve been ramping up various sustainability efforts for many years.”

Composting has really evolved at Saker ShopRites during the past 10 years. Supply and demand drives some of these efforts, he explains. “Initially, that demand came from local farmers (pig farmers, specifically) coming to stores asking for our organic waste and paying for it. That’s how we began the process of segregating out waste.

“Things do change over time, and over the past five years, we only dealt with a couple of farmers in that way. Now we work with waste management companies and we actually have to pay for pickup and disposal,” he says.

Despite the extra cost on that side, “we still do it for a couple reasons. First, it’s the right thing to do, but it’s financially beneficial as well, if you look at landfill costs,” he says. “Companies come three times a week. For us, it costs $60 per ton, and we average 300 tons of compost a month; it’s substantial, for our 29 stores. Consider the price of throwing all of this into a compactor for the landfill,” he says.

“We pay landfill costs and a hauling fee. It costs $60 per ton for the waste management companies to take it away versus landfill costs of $113 per ton, plus a $200 hauling fee every time,” he says. “It’s about half the cost for us to do composting, acknowledging that economics drive these decisions. There is the philanthropic aspect, but we’re also a business, so it’s a win/win.

More innovation in this arena is likely on the way. “We’re currently experimenting with compost liquefiers in one of our newest stores. We put the organic waste in a large stainless steel liquefier bin, which turns and breaks down the product with woodchips and bio-microorganisms, producing a clear watery liquid safe to go down the drain so you don’t need a permit for it. We lease the unit, so it’s fully serviced and we don’t have to add the bio-microorganisms needed for the process to work.

“The advantage of that from our perspective is that it really works for higher volume stores, but the lease program for those units is too high for smaller volume stores. When economies work, it seams to be a good alternative. From a sanitary perspective, you don’t need composting bins outside your store, especially in warm weather, which can lead to various issues,” says Saker.

Part of the challenge of a good composting program is getting buy-in from store management down the line, according to Saker. “We separate the responsibilities within departments, and department managers take the lead. For example, the produce manager is responsible for bringing his composting product to the warehouse receiver. Segregated blue compost bins sit outside of the store, nice and clean, waiting for the waste management company to dump into their reciprocals,” he says.

“It also really helps our department managers and store managers from a category management standpoint. By going through everything that needs to be thrown out, they are able to analyze shrink and evaluate whether they ordered too many apples, and what they need to curtail or improve on,” he says.

A large quantity of compost is coming from produce. Depending on the store and operation, other departments contribute as well but produce accounts for the greatest percentage, according to Saker.

Initially, it’s jumping over the hurdle of teaching and training associates, getting store management all the way down to the line clerks to understand sustainability from the philanthropic benefits to the efficiencies, and to abide by a system of segregating waste; working with security receivers, ensuring it’s properly handled and recorded. Once they see it is part of a worthy cause, they want to be involved,” he explains.

“We’re also experimenting with food donation programs, collaborating with local food banks for pickups three days a week,” he says. Saker says any type of organic waste, perishable items in the perimeter of the store, various produce and bakery items, foodservice prepared foods, deli, dairy, seafood items, and frozen foods, as they expire and come out of the container, are all part of the pickups.

“It’s good for us as a company. From a financial perspective there’s labor savings and reducing composting expense, and we can be environmentally and socially responsible,” asserts Saker.

“From my own personal experiences when I was still working the produce departments culling the aisle and making sure there was no bruised product, it was always of concern and alarming to me the amount of perfectly edible product with a slight blemish that came off the shelves. There’s tremendous waste filling up landfills. We have a responsibility to really delve into as many sustainability efforts as possible; not only because it’s philanthropic, but also because it’s smart business. Sustainability is part of this generation’s consciousness,” he says.

DAVID DEETS

director of store development and sustainability, Brown’s Super Stores

About Brown’s Super Stores, Inc.

Brown’s Super Stores, Inc. operates 11 ShopRite supermarkets in the Delaware Valley. Jeff Brown, a fourth generation Philadelphia grocer, is the founder, president and chief executive of the company, which employs more than 2,300 associates. Brown and his wife Sandy have been with Wakefern since 1988.

Food Waste Diversion

Brown’s Super Stores is making its mark on sustainability at Wakefern, according to Suzanne Forbes, environmental affairs administrator at Wakefern Food Corp. David Deets, director of store development and sustainability, has been with Wakefern ShopRite for 25 years, and with Brown’s for 15 years. However, it was just about two years ago he embraced his role to drive sustainability at Brown’s.

“It was an interesting transition, because until I took this job, I was just recycling my cans at home. It’s been quite a learning curve,” he says. “I didn’t know much about sustainability, but it’s gone very well, and we’ve done a lot of good things at Brown’s.”

Deets’ conquered his learning curve rather quickly. Brown’s received a 2013 U.S. Environmental Protection Agency Award for Outstanding Achievement in Food Waste Prevention and Diversion. President Obama recognized owner Jeff Brown for his work in abating supermarket deserts and bringing fresh, nutritious food to impoverished areas.

“About two years ago, our owner said he wanted to take sustainability to the next level,” says Deets. “Produce is a big part of our food waste program. For many years most of our produce waste ended up in the trash and landfills. In 2012, we started an aggressive program of organic waste division in Maryland. We partner with companies to handle all our organic mate-rials. We’re now at an 83 percent diversion rate. Our goal is to get to zero waste as a company,” he says.

“We made a decision not to sell produce with defects at a marked down price because of our image. Now, instead of throwing it away, we train foodservice staff on how to use it, or it’s donated.”

Brown’s has a training program established for associates in produce, meat, and bakery. “In produce, we used to cull product and throw it in the trash. Now we cull with two boxes in the morning; one is for rotten, non-edible trash, the other is for distressed items that are fine to eat, but not suitable for sale, which are put aside for donations, and picked up by local organizations.

“The program has had a tremendous effect on our trash costs. In 2013 we diverted 171 tons of products to local food banks. If you got everyone in the country to do something similar, imagine the impact,” he says.

“We have zero tolerance for stores not following the program, but it has been an easier sell than I thought. When we do orientations and training programs, people appreciate that they’re not just saving Brown’s money, but helping someone in the neighborhood that’s hungry,” he says. “In our urban stores, particularly, everyone knows people who are hungry. If a bag of apples is bruised, they want to give it to a child in need.”

“Brown’s has been at the forefront of bringing affordable and healthy food to underserved communities, creating stores in food deserts, as well as through donations,” says Deets, noting that Jeff Brown was recognized for these efforts as a guest of honor in Michelle Obama’s box at President Obama’s State of the Union address.

SHAWN RAVITZ

vice president of administration, Supermarkets of Cherry Hill, Inc.