Ethical economic model spells opportunity for food firms

This was the view shared by a panel of food players gathered for a round table at SIAL's ADICT conference in Paris on Tuesday.

"We must be sustainable to be present on the market in fifteen years time,"​ said panel participant Matthieu Lambeaux, a director at food manufacturer Findus.

Growing awareness among consumers about sustainability issues - ranging from recycling to fair wages for workers - are starting to shape consumer buying patterns. And while products from food and beverage firms are increasingly meeting this demand, the suggestion from panelists at the conference is that moves into sustainability are not purely in response to consumer demand but, when locked into an internal economic structure, can help companies thrive in the marketplace.

Claiming to be the leader in frozen foods in France, Findus is a particularly strong player in frozen fish. With European fish stocks suffering from overfishing, Lambeaux explained that several years ago the firm made the decision to change its economic model from "opportunist buying to responsible purchasing".​

Findus' new model sought to ensure that 100 per cent of their fish hailed from responsible fisheries, providing stability and "true value"​ to their clients. And clearly, a model that would also reassure Findus' shareholders over the long term prospects for the firm.

According to Lambeaux, the move to adapt Findus' economic model took five years, but today they have "strong margins which are also sustainable,"​ he said.

And on sustainability, he stressed it is the "choice of a company"​ and one that could engender "enormous opportunities" ​for business.

"Once the consumer makes the leap to spend more on sustainability, they stay. Forty per cent of consumers today in France are interested by sustainable fishing,"​ commented the Findus director.

Ethical economics​

Like Findus, coffee firm Malongo also made the internal decision to build a stronger sustainability structure into their economic model.

"We put in place a long term sustainability charter for the long term: it's ethical economics,"​ explained Raphael Dormoy at Malongo.

Tackling the issue head on, the firm set out to ensure their coffee bean supplies were fair trade, a challenge that threw up supply issues.

"Supplies and improving productivity with our producers were key constraints,"​ said Dormoy. But, he added, sustainability has now taken a central position in the daily workings of the firm.

Sourcing: a hurdle to sustainability​

Panel participant Fabienne Saligue from french organic firm Naturgie reiterated the observation from both Findus and Malongo that sourcing ingredients and packaging components is a major challenge for firms embracing sustainability.

For Naturgie, that makes a range of organic and health foods, the "real challenge is to find suppliers,​" said Saligue, marketing director of the french firm.

In terms of organic ingredients, demand exceeds supplies, resulting in a "tense" price for organic raw materials, she added.

Commenting on Naturgie's economic model, Saligue said the firm had voluntarily decided to slightly shave their margins in order to ensure that price was not a barrier to consumer purchases.

"We wanted to offer our products to the consumer at an accessible price,"​ she said.