Juicing to Reduce Food Waste at ABC Supermarket
Junoh Lee
ENGL 301, JL
July 3rd, 2015
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Table of Contents
1. INTRODUCTION ……………………………………………………………………... 3
a. Description and Background ………………………………………………… 3
b. Purpose and Target Audience ………………………………………………. 3
c. Method of Research ………………………………………………………….. 3
d. Scope of Inquiry ………………………………………………………………. 4
e. Limitations of Study …………………………………………………………... 4
2. COLLECTED DATA ………………………………………………………………….. 4
a. Customer Perception of Food Waste ………………………………………. 5
b. Customer Perception of Acceptable Effort ………………………………… 5
c. Level of Interest in Fruit and Vegetable Juices ………………………….... 6
d. Potential Prices for the Juice ……………………………………………...... 6
3. DISCUSSION ……………………………………………………………………….... 7
a. Public Perception …………………………………………………………...... 7
b. Juicing Strategy ……………………………………………………………..... 7
c. Cost/Benefit Analysis ………………………………………………………… 7
i. Potential Revenue ……………………………………………………. 7
ii. Potential Costs ………………………………………………………... 8
4. CONCLUSION ………………………………………………………………………... 8
5. CITATIONS ……………………………………………………………………………. 9
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Introduction
Description and Background
In recent years, scientists have pointed out that the world has entered an era of “peak food”
production (Siegel, 2015). Wheat, eggs, vegetables, and produce are slowing down in their growth
and at the current rate, would be unable to sustain the rapidly growing population (Cavich, 2015).
Moreover, an increase in food production is associated with an increase in pollution, which only
exacerbates the situation (Cavich, 2015). In such a climate, it is important for individuals and small
businesses to reduce waste as much as possible.
This principle applies for ABC Supermarket as well. The market constantly tackles the challenge of
balancing food waste with maintaining inventory quality. Since customers always prefer the freshest
vegetables and the ripest fruits, large amounts of fresh foods are deemed unacceptable and thrown
out on a daily basis. Despite its less presentable appearance, the food is often perfectly edible. This
represents both a moral and financial strain on the business.
Purpose and Target Audience
This report is targeted towards for the owner and managers of ABC supermarket. It intends to
analyze the issue of food waste at the market and provide recommendations to alleviate the
problem. Specifically, this report investigates the idea of picking out fruits and vegetables that are
edible, but less presentable, and selling them by producing juices with the product.
Method of Research
Fifteen customers of ABC Supermarket responded to a short survey designed to analyze public
perception of food waste at ABC Supermarket as well as gauge interest in a potential juicing
solution. An analysis of potential costs and revenue was performed to determine the feasibility of
implementing such a product. In addition, interviews were conducted with three former employees of
the market to estimate the levels of food being thrown out at the market.
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Scope of Inquiry
The report addresses three major topics:
(a) What is the customer’s perception of food waste at the market?
(b) What is the customer’s level of interest in a juicing solution?
(b) What are the costs and benefits associated with the solution?
Limitations of the Study
The data collected in this report is limited by a small sample size (15) as well as sampling bias.
Specifically, the data over-represents the student population. Though the data samples do come
from real customers of the market, it may not accurately represent the entire customer base. In
addition, the cost/benefit study is an estimate and may require more in depth analysis.
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Collected Data
DOES IT BOTHER YOU WHEN FOOD IS
THROWN OUT AT SUPERMARKETS?
Not at all
7%
Not very much
6%
A great deal
20%
A great deal
A fair amount
A little
A little
27%
Not very much
Not at all
A fair amount
40%
Figure 1 – Customer perception of food waste at supermarkets.
HOW MUCH EFFORT SHOULD BE MADE
TO MINIMIZE FOOD WASTE?
Not very much
7%
Not at all
0%
A great deal
27%
A little
13%
A great deal
A fair amount
A little
Not very much
Not at all
A fair amount
53%
Figure 2 – Customer perception of acceptable effort.
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HOW INTERESTED WOULD YOU BE IN
FRUIT AND VEGETABLE JUICES MADE
AT ABC SUPERMARKET?
Not at all
7%
A great deal
20%
Not very much
13%
A great deal
A fair amount
A little
Not very much
A little
20%
Not at all
A fair amount
40%
Figure 3 – Level of interest in fruit and vegetable juices.
HOW MUCH WOULD YOU BE WILLING
TO PAY FOR A GLASS OF JUICE
(250ML)?
Not interested
13%
$0.50
7%
Over $1.00
7%
$0.50
$0.75
33%
$0.75
$1.00
Over $1.00
Not interested
$1.00
40%
Figure 4 – Potential prices for the juice.
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Public Perception
Of the customers surveyed, only 7% did not care about food being thrown out at supermarkets (Fig
1). On the other hand, 87% of customers were bothered at least a little, whereas 60% of these
customers were bothered a fair amount or a great deal (Fig 1). In terms of taking action against this
issue, 80% of customers agreed that it is important to take action whereas 0% of those surveyed
thought that nothing should be done at all (Fig 2).
This illustrates the point that customers are bothered by food waste at the market and that they
believe that it’s the markets responsibility to alleviate the issue. I believe that food waste can make
customers uncomfortable and foster negative public perception of the market. As you know, public
perception among the customer base of the market is very important for business. In fact, this may
be an important reason why food is thrown out at the market in the first place. For this reason, I
recommend that the market treats this issue with considerable importance.
Juicing Strategy
One solution to the food waste issue is to produce juice from the vegetables that are considered unfit
for consumption due to appearance. This strategy is currently employed by Whole Foods, as well as
supermarket chains like Ekoplaza and Intermarche (Cliff, 2014). This strategy would improve the
market’s social responsibility and thus public perception, while potentially generating revenue.
Cost/Benefit Analysis
Interviews with former employees of ABC Supermarket suggested that between 30-50% of fresh
produce and vegetables are eventually thrown out at the market. With an estimate of 40% and an
average monthly inventory of $3000 and 600kg in fruits and vegetables, approximately $1200 and
240kg worth of items are being thrown out monthly.
(a) Potential Revenue
Monthly Inventory (Dollars and Weight)
$3000, 600kg
Amount of Food Thrown Out Monthly (30%)
$1200, 240kg
Potential Yield of Juice (10 oz. / lb)
620 glasses (250mL/glass)
Potential Juice Revenue ($0.80 / glass)
$496 / month
Table 1 – Potential revenue from juicing strategy.
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The juicing strategy would make use of these items that would otherwise be thrown out. Based on
customer surveys, $0.75 - $1.00 appear to be a fair price to charge customers per 250mL of juice
(Fig 4). Since “each pound of produce makes about 10 oz. of juice,” juice yield would be
approximately 620 glasses (Wettlaufer, 2015). With a conservative pricing of $0.80, the potential
juice revenue is $496 / month.
(b) Potential Costs
Juicer (Omega J8006)
$300
Cups and Lids
$30 / month
Table 2 – Potential costs from juicing strategy.
Keep in mind that I did not include the man hours that would be required to prepare the juices. This
is so because a tremendous amount of time is already spent on picking out fruits and juices and
preparing them for discarding (garbage bags, compost, bleaching). Juicing would approximately
replace those times. Moreover, preparing 17 glasses of juice per day (620 glass/month) is a fairly
trivial task with an efficient juicer, and should take around 1 hour/day.
To summarize, the juicing strategy would require an upfront cost of $300 for the juicer and would
potentially net profits of $466/month. In terms of demand, there appears to be interest from the
customers. From the surveys, 80% of customers were interested at least a little and only 7% did not
have any interest (Fig 3).
Conclusion
The findings of this report confirm that customers do indeed care about the issue of food waste at
ABC Supermarket and believe that it is the market’s responsibility to be socially responsible. The
juicing strategy is one such solution, the benefit of which is that that there is potential revenue as
well. Based on a preliminary analysis, the strategy seems feasible to implement with little upfront
costs or risks associated. It is also in line with a growing trend of healthy eating and ethical business
practices. As such, this strategy has the potential to improve the market’s reputation from a moral
perspective, which could further attract customers. That being said, I believe that the focus to this
strategy should be the benefits of minimizing waste rather than maximizing profits. Generating
revenue with products that would be thrown out otherwise can be a sensitive issue if not approached
as such. Customers could grow to have a cynical view of this strategy if profit margins are made a
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priority. If the reader of this report do not wish to pursue the juicing strategy, there is also the option
of organizing regular donations with local charities. Cob’s bread has implemented a similar program
that has cultivated good will among the community while reducing waste and donating tremendous
amounts of food.
Citation
Cavich, Cinda. "How to Solve the Food Waste Problem - Macleans.ca." Macleansca. 5 May 2015.
Web. 23 June 2015.
Cliff, Martha. "Forget the Ugli Fruit, Meet the Ugly Fruit Bowl! French Supermarket Introduces Lumpy
and Misshapen Fruit and Vegetables - Sold at a 30% Discount - to Combat Food Waste." Mail
Online. Associated Newspapers, 18 July 2014. Web. 5 July 2015.
Siegel, Rp. "Food Waste Is a Bigger Problem Than You Think." Triple Pundit People Planet Profit.
30 Oct. 2014. Web. 23 June 2015.
Wettlaufer, Charlie. "Calculating Food Costs for Cold Pressed Juice." Pomeroy Cold Pressed Juice
Equipment and Expertise. Web. 5 July 2015.
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