Food waste is a major global problem. According to the Food and Agriculture Organization of the United Nations (FAO), approximately one-third of all food produced in the world is wasted annually. The growing awareness of food waste and the negative impacts it causes on the environment and society has led to the emergence of several innovative initiatives.
As an example of these initiatives, we have the food to save, food, B4 Waste, Too good to go, Super Oops and many others scattered throughout Brazil and the world. Each one has a particularity in its business model, but a similar objective: to reduce food waste and the cost of excess of companies in the segment.
To better illustrate how this is done, I selected the case of food to save, a Brazilian foodtech created in 2021. Food to Save connects food chains with surplus production and products with expiration dates close to expiring to consumers interested in purchasing products at more affordable prices. Everything works through an app, where the store makes a surprise bag of products available for sale (sweet, salty or mixed), the original total value of the products inside and the value of the bag after the discount.
Figure 1 – Examples of Food to Save offers. Source: Food to Save
With discounts of over 50%, customers can choose to pick up the product in the store or pay for delivery shipping, which is also informed in the app. Large chains have already joined this marketplace, such as Hortifruti, Natural da Terra, Starbucks, Rei do Mate, Vezpa and several other restaurants, pizzerias, cafes and pastry shops. So far, the service is available in 19 cities in São Paulo, in addition to the cities of Rio de Janeiro and Brasília.
In addition to the environmental and social solution, initiatives like this are also great alternatives for the logistics area. Setting the exact amount of SKUs that will be needed in each store is an extremely challenging task and mistakes are natural. As, in general, the cost of shortages is greater than the cost of excess, it is common to form safety stocks in order to absorb higher-than-average demands. When it comes to highly perishable products, as is the case with most of the items made available by these foodtechs, this becomes an issue, as in these cases the cost of excess is usually higher than that of a non-perishable product, since the item left over for a single day could mean the loss of the entire cost of production.
By selling products that are close to their expiration date, the initiative prevents these items from being discarded, saving time and resources. In addition, the sale of these products at lower prices helps to recover part of the invested amount, minimizing economic losses for the companies involved.
The surprise factor of the product, characterized by the fact that the customer does not know exactly what products are in there, also helps with logistics, as it allows the company to be able to sell less appealing products, taking advantage of the fact that they go together with other more popular ones. Because they are paying an amount well below the market price, many consumers even like the feeling of not knowing what is inside the bag, as if they were receiving a gift.
Figure 2 – Examples of surprise bags from Food to Save. Source: Food to Save
These are interesting alternatives for companies that suffer from the disposal of products, as they contribute to the efficiency of the supply chain, make food accessible to a wider audience, promote a change of mindset in relation to waste and, ultimately, help to preserve natural resources and reduce greenhouse gas emissions.
- https://www.foodtosave.com.br/
- https://economia.uol.com.br/noticias/redacao/2022/02/07/refood-aplicativo-desperdicio-de-alimentos.htm
- https://www.b4waste.com.br/
- https://www.toogoodtogo.com/pt
- https://forbes.com.br/forbes-money/2023/02/food-to-save-salva-mil-toneladas-de-comida-e-projeta-faturar-r-16-mi/
- https://www1.folha.uol.com.br/mpme/2021/09/aplicativos-vendem-produtos-perto-de-vencer-com-descontos-de-ate-80.shtml
- https://www.fao.org/americas/noticias/ver/pt/c/239394/
Fernanda Monteiro
More than 11 years of experience in training and consultancy projects, focusing on Logistics and Supply Chain. In consultancy, he carried out projects such as Transformational Logistics Plan, Diagnosis of logistics operations, Strategy and Calendarization of Transport Operations, Measuring the Cost of Serving, Market Study, Mapping of Inventory Reduction Opportunities, Review of the S&OP Process, Management Plan Training and Implementation of Commercial Processes in companies such as Nestlé, Raia Drogasil, Ipiranga, Lojas Americanas, B2W, Coca-Cola, Andina, Embraco, Martins Atacado, Loja do Mecânico, Santo Antônio Energia, Ecoporto and Silimed. She is currently one of the teachers of the Inventory Management Course taught every six months by ILOS. She worked on the development and management of Online Courses in Logistics and Supply Chain, Supply Processes, Demand Planning, Inventory Management and Industrial Management. Still in the training area, she was responsible for applying ILOS business games in companies such as Raia Drogasil, Fibria, NEC, Novartis and Moove.
