Walmart announced that it is partnering with organics recycling company Denali to address the problem of food waste in its stores.
Retail TouchPoints reported that the mega-chain will use Denali’s “unpacking” technology at both Walmart and Sam’s Club to separate food from packaging destined for disposal. Employees usually do this by hand, and the new system will create a cleaner stream of organic material that can be turned into animal feed, compost or even energy.
According to Feeding America, Americans throw away 92 billion pounds of food each year—the equivalent of about 145 billion meals. This waste comes at an annual cost of about $473 billion, according to the organization.
The U.S. Environmental Protection Agency estimates that food loss and waste in the United States releases about 187 million tons of greenhouse gases each year. According to the U.S. Department of Agriculture, that’s equivalent to the annual carbon emissions from 42 coal-fired power plants.
Retailers, who often throw away expired, spoiled or recalled food, are responsible for about 20% of this food waste, according to The Food Institute. Walmart, which operates in 19 countries, is the world’s leading retailer by sales and therefore has the potential to make a significant impact.
Fortunately, given the magnitude of the problem, Walmart isn’t the only retailer looking to tackle the food waste epidemic. Other brands are also implementing eco-friendly initiatives.
Aldi, for example, is turning leftover grapes into a dessert that has gained popularity on TikTok. Albertsons, meanwhile, is taking steps to reduce food waste, including donating to nonprofits and food banks and turning it into compost or animal feed.
According to Retail TouchPoints, Walmart’s new unpacking solution is currently in use in stores in more than 16 markets, including Houston, Dallas, Philadelphia, Phoenix and Washington, D.C. The company plans to roll out the solution nationwide by 2025.
In a joint statement, Walmart and Denali highlighted the potential of the partnership, including its impact on customer service and the environment.
“Denali’s unpackaging technology can help us transform millions of pounds of potential food waste each year into useful products while giving our associates more time to serve our customers,” said RJ Zanes, Walmart’s vice president of facility services.
“Denali’s unpacking technology is revolutionizing the way food manufacturers, distributors, retailers – and the cities they serve – can reduce food waste,” added Ilia Kostov, Denali’s Chief Revenue Officer. “We are proud to partner with leading retailers – Walmart and Sam’s Club – to reduce food waste at scale while enabling the circular economy.”
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