Walmart announced it is partnering up with organic materials recycler Denali to address food waste in its stores.
Retail TouchPoints reported that the mega-chain will be using Denali's "de-packaging" technology to separate food destined for disposal from its packaging at both Walmart and Sam's Club locations. Normally, associates do this by hand, and the new system will result in a cleaner stream of organic material that can be converted into animal feed, compost, or even energy.
Each year, Americans throw out 92 billion pounds of food — equal to about 145 billion meals — according to Feeding America. This waste comes with an annual price tag of about $473 billion, the organization states.
The U.S. Environmental Protection Agency estimates that U.S. food loss and waste results in around 187 million tons of planet-heating gases each year — this is equal to the annual carbon pollution produced by 42 coal-fired power plants, according to the U.S. Department of Agriculture.
Retailers, which often throw out food that is expired, spoiled, or recalled, account for about 20% of this food waste, per The Food Institute. Walmart, which operates in 19 countries, is the leading retailer in the world in terms of revenue, so it has the potential to make a sizable impact.
Fortunately, given the scope of the problem, Walmart isn't the only retailer looking to tackle the food waste epidemic, either. Other brands are also implementing eco-friendly initiatives.
For instance, Aldi is transforming leftover grapes into a best-selling dessert that went viral on TikTok due to its crowd appeal. Meanwhile, Albertsons is taking steps to reduce food waste, including donating it to nonprofits and food banks, as well as turning it into compost or animal feed.
So far, Walmart's new de-packaging solution is live at stores in more than 16 markets, including Houston, Dallas, Philadelphia, Phoenix, and Washington, D.C., according to Retail TouchPoints. The company plans to continue with a nationwide rollout into 2025.
In a joint statement, Walmart and Denali stressed the potential of the partnership, including its implications for customer service and the environment.
"Denali's de-packaging technology can help enable us to turn millions of pounds of potential food waste into useful products each year while allowing our associates to devote more time to serving our customers," said RJ Zanes, Walmart's VP of Facility Services.
"Denali's de-packaging technology is revolutionizing the way in which food manufacturers, distributors, retailers — and the cities in which they operate — can reduce food waste," Ilia Kostov, Denali's chief revenue officer, added. "We are proud to work with the leading retailer — Walmart and Sam's Club — to help reduce food waste at scale while simultaneously enabling the circular economy."
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