Investing in Positive Impact - 2021 Report - The Kroger Co.

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Investing in Positive Impact - 2021 Report - The Kroger Co.
Investing
in Positive
Impact
2021 Report
Investing in Positive Impact - 2021 Report - The Kroger Co.
2           2021 Zero Hunger | Zero Waste Foundation Report

Letter from the President
In 2020, the COVID-19 pandemic shined a light on what some have cautioned for years: our
global food system and supply chain is fragile, disconnected and ripe for change. At The
Kroger Co. Zero Hunger | Zero Waste Foundation, our mission to help create communities free
of hunger and waste has never been more critical.

We believe we will solve these problems—              directed new grants to select portfolio        for others to join our journey. As we look
together. The national discourse and                  companies in our first cohort to help scale    forward, we will continue to leverage our
urgency to “build back better” is inspiring           much-needed solutions to provide more          collective passion and expertise to help
creative new solutions. We admire the                 food for people in need.                       create a more equitable and sustainable
strength of our national and local partners           Our goal is to help food produced today        food system.
and the can-do spirit of social entrepreneurs         fulfill its highest purpose: feeding people.
across the country who are driving change.            As a Foundation, we do this by enabling
In 2020, we were humbled to be able                   systems that transform surplus food into
to serve others through our Emergency                 healthy meals; increasing access to capital
COVID-19 Response Fund and other grants.              for innovators doing the same; convening       Denise Osterhues
We shifted our plans for the Innovation               thought leaders to advance equitable           President, The Kroger Co.
Fund’s second open call to 2021, and we               food access for all; and offering easy ways    Zero Hunger | Zero Waste Foundation

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Our Mission
Established in 2018, the Zero Hunger | Zero Waste            Our National Partners
Foundation is a non-profit public charity designed
to enable collective action, catalyze innovation
and create a more equitable food system for all.
We support organizations and innovators across
the country who share our vision of a world where            Feeding America                                       Foundation for Food & Agriculture
everyone has access to affordable, nutritious food and       We support the Feeding America network of             Research (FFAR)
                                                             food banks that help direct meals to families in
no surplus food is wasted.                                   need. During 2020, Feeding America distributed
                                                                                                                   The Foundation supports FFAR, which helps fill
                                                                                                                   critical research gaps and invests in the future
                                                             6.1 billion meals (7.3 billion pounds of food),       of science to support agriculture. By funding
                                                             achieving a 55% increase in the number of people      pioneering research, FFAR aims to increase
                                                             served. Of the total, 40% received charitable food    access to affordable and nutritious farm-grown
                                                             assistance for the first time.                        food by supporting public-private partnerships in
                                                                                                                   communities across the country.

                                                             Meals on Wheels America                               The Recycling Partnership
                                                             Meals on Wheels America wants all seniors to be       Launched in 2020, The Recycling Partnership’s
                                                             nourished with independence and dignity. Their        Polypropylene Recycling Coalition provides
                                                             mission is to empower local community programs        catalytic grants to advance polypropylene
                                                             to improve seniors’ health and quality of life so     recycling in the U.S. Polypropylene, sometimes
                                                             that no one is left hungry or isolated. In response   referred to as No. 5 plastic, is used in food and
                                                             to the COVID-19 pandemic, the Foundation’s            non-food packaging and is in strong demand
                                                             support provided grants to local Meals on             as a recycled material to be made into new
                                                             Wheels programs to feed and protect those             products such as consumer packaging and
                                                             most vulnerable.                                      automotive parts.

                                                             No Kid Hungry                                         World Wildlife Fund (WWF)
                                                             No Kid Hungry wants all children to have the          The Foundation supports WWF’s Wild Classroom
                                                             healthy food they need every day to thrive.           Food Waste Warriors program, which teaches
                                                             With the Foundation’s support, No Kid Hungry          students the connection between food production,
                                                             provides funds, training and hands-on technical       food waste and habitat conservation. To date,
                                                             assistance to high-need schools. During the           this program has reached 100 schools (including
                                                             COVID-19 pandemic, the campaign also provided         14 Title I and seven rural schools) and measured
                                                             technical support and grants to organizations         nearly 20,000 pounds of food waste. During
                                                             across three states to enable emergency feeding       the COVID-19 pandemic, the program shifted to
                                                             programs when schools closed.                         engage virtually and share at-home activities.

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How We Invested in Communities
In 2020, the Zero Hunger | Zero Waste Foundation focused on our communities’
most urgent challenge: improving access to nutritious food for individuals and
families struggling with the pandemic’s economic impacts. We also directed
grants to support innovation and positive change for people and our planet.

                                                                                                                                               Contributing to the
       Capacity-building
                                                                                                                                               Sustainable Development
       Improve charitable
                                                                                                                                               Goals (SDGs)
       food system distribution
                                                                                                       Food assistance
       at national and
                                                                                                       Provide food for a month
       local levels
                                                                                                       or more for vulnerable
       $4.4M
                                                                                                       individuals and communities
                                                                                                       $1.7M
                                              Improving Food
                                              Access for All
                                              $11.1M

                                                                                                                       Advocacy
                                                             2020                                                      Improving stakeholder
                                                         Total Impact     Advancing                                    awareness and
                                                                          Sustainable                                  engagement in
                                                             $16.5M                                                    waste reduction
                                                                          Food
                                                                                                                       $1.6M
                                                                          Systems
                                                                          $3.7M
                                                                                                                                               $14.8M
                                                                                                                                               in giving aligned with
                                                                                                                                               Zero Hunger | Zero Waste
                                                                 Other
                                                                                                           Innovation                          363
                                                                                                           Advancing food system               grants to organizations
                                                                                                           change through
                                                                                                           technology and innovation
                                                                                                           $2.1M                               $9M
       Pandemic relief                                                                                                                         in grants for national and local
       Support partners scaling                                                                                                                COVID-19 relief
       school- and community-based
                                                                         Other Giving
       feeding programs during
       stay-at-home restrictions
                                                                         Supporting disaster relief                                            $12M
                                                                         efforts and other nonprofit                                           in customer donations directed
       $5M                                                                                               M = million                           to our communities
                                                                         organizations
                                                                         $1.7M
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5          2021 Zero Hunger | Zero Waste Foundation Report

Lifting Local Communities
The Zero Hunger | Zero Waste Foundation supports a wide        Range
range of community-based non-profit organizations and social
                                                                 $501,000+   $201,000 to $500,000   Less than $200,000
entrepreneurs who align with our mission to build a better
food system that truly includes everyone.

We work with national and
local partners with big
dreams. People who know
their neighbors, love their
communities and provide
critical access to healthy
food and other essentials.

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6           2021 Zero Hunger | Zero Waste Foundation Report

Unlocking Critical Food Access
Because of COVID-19 and its widespread
economic impacts, more individuals and
families in the U.S. turned to the charitable
food system for help. The Foundation’s
support helped partners meet this need by
providing healthy meals in our communities.

Emergency COVID-19 Response Fund                                                            The Farmlink Project
In 2020, the Zero Hunger | Zero                   distribution models to protect health     As pandemic-related shutdowns affected
Waste Foundation directed a total of              and safety. We also directed follow-on    restaurants, travel and hospitality venues,
more than $9 million in grant funding             funding to members of the Foundation’s    the risk of on-farm food loss increased
for COVID-19 relief, helping national             Innovation Fund cohort with ideas to      dramatically. Fortunately, a group of
and local organizations feed millions             recover and distribute surplus food to    Stanford and Brown students created
struggling with hunger, including some            vulnerable populations (see p. 8).        The Farmlink Project, which used
who relied on the charitable food system          Throughout the year, we invited our       technology, logistics and a network of
for the first time in their lives.                customers to Round Up their purchase      volunteers to identify and redistribute
Recognizing the rapidly increasing need           to the nearest dollar—at Kroger-          surplus food on farms.
last spring, the Foundation established           operated store checklanes across the      The Foundation’s grant supported
an Emergency COVID-19 Response Fund               country—or donate online to support the   process automation and development
and directed $3 million to partners at            Zero Hunger | Zero Waste Foundation       of a new tool to streamline delivery
Feeding America and No Kid Hungry to              and, in turn, our local communities.      operations. The Farmlink Project
help provide critical meals as businesses         During the pandemic-related national      continues to help support COVID-19 relief
and schools closed.                               coin shortage, this was an easy way for   efforts today, delivering much-needed
The remaining $6 million in Foundation            Kroger’s associates and customers to      produce to those struggling with hunger.
grants was directed to support                    support our mission.                      The Farmlink Project’s goal is to
community food banks and agency                                                             put themselves out of business—
partners pivoting to new food                                                               democratizing access to local, fresh
                                                                                            food while reducing agricultural surplus.     For more information,
                                                                                            Since inception, The Farmlink Project has     please visit The Farmlink
                                                                                                                                          Project website
                                                                                            delivered more than 30 million pounds of
                                                                                            food across the country.

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Investing in Positive Impact - 2021 Report - The Kroger Co.
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Changing Communities for the Better, Together
It’s clear that we won’t end hunger
until we collectively stop wasting food.
We support non-profits and creative
thinkers who, like us, imagine a world
where all food produced serves its
highest purpose: feeding people.

ReFED                                                                                               Mid-Ohio Food Collective
The Zero Hunger | Zero Waste                                                                        For over 40 years, the Mid-Ohio Food
Foundation directed $2 million in seed                • Accelerate individual and collective       Collective (MOFC) has been feeding         The MOFC monitors progress regularly by
funding to ReFED, a national non-profit                  action among food businesses, policy-      more people than any other organization    tracking the total number of customers and
working to end food loss and waste in the                makers and solution providers; and         in central and eastern Ohio, serving       households served and the total pounds
U.S. by advancing data-driven solutions.              • Deploy a multi-faceted                     nearly half a million people annually.     of food distributed. They also monitor
ReFED’s vision is a sustainable, resilient               communications strategy to share           Our grant will improve local network       the number of individuals living at or
and inclusive food system that makes the                 key learnings.                             transportation and help expand their       below 200% of the Federal Poverty Level
best use of the food we grow.                                                                       existing data and analytics platform.      in each county to help inform allocation
                                                      The new ReFED Insights Engine—
                                                                                                    This system combines technology, data      of resources.
Our grant helped ReFED:                               available to the public—offers a food
                                                      waste monitor, solutions database, impact     collection and human-centered design
• Develop the country’s most
                                                      calculator and solution provider directory.   to improve services and health outcomes
   comprehensive data and solutions hub
                                                                                                    in local communities. Mid-Ohio has been    For more information, please visit
   for food waste;                                                                                                                             the Mid-Ohio Food Collective
                                                                                                    working tirelessly to develop FreshTrak,
                                                                                                    initially for use at the MOFC and funded
                                                      For more information, please visit            by the Zero Hunger | Zero Waste
                                                      the ReFED website
                                                                                                    Foundation. The FreshTrak platform
                                                                                                    will be acquired by Feeding America,
The Future of Food @SXSW                                                                            modernized for network-wide use, and
                                                                                                    then made available to interested food
                                                                                                    bank members in late 2021.

As part of the 2021 virtual South by Southwest (SXSW) festival, we presented The Future
of Food@SXSW event. Experts from ReFED and Colorado State University, plus other
thought leaders, innovators and investors, discussed ways to help improve food and
agricultural systems.

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The Innovation Fund
The Foundation’s Innovation Fund provides philanthropic
funding to social enterprises, entrepreneurs and creative
thinkers with solutions that align with our mission to
improve food security and prevent food waste.

In a typical year, about 35% of food produced in the U.S. is unsold or
uneaten. Much of this surplus food is left in growers’ fields or goes to
landfills from homes, retailers, restaurants and hospitality venues. The
Innovation Fund supports entrepreneurs developing new technologies
and creative solutions to help end food loss and waste.

Active Portfolio Companies in 2020
During the COVID-19 pandemic, the Foundation elected to postpone a planned Innovation Fund open call for proposals. Instead, we directed
a total of $400,000 in new grants to members of our first group of portfolio companies able to continue operating during the pandemic.
This funding was in addition to the $1 million the seven inaugural cohort members received collectively in 2019.

Food Forest                    Imperfect Foods                 Replate                          Ripe Revival                    Seal the Seasons
Cincinnati                     San Francisco                   Oakland, CA                      Greenville, NC                  Chapel Hill, NC
Funding supports Meals         The Foundation’s grant          Replate works with long-         During the COVID-19             This grant helped family
on Wheels online grocery       expanded access to grocery      time donor partners to           pandemic, Ripe Revival          farms in the Northeast and
delivery, a partnership        delivery through Imperfect      bring food directly to           piloted a food delivery         Pacific Northwest expand
between Food Forest and        Foods’ Reduced Cost Box         the homes of community           service and subscription-       the locally grown frozen
Produce Perks that provides    Program, which provides         members, prioritizing those      based seasonal product line     vegetable program that
free grocery delivery twice    low-income households           who are vulnerable or            sourced from local farmers.     aims to increase economic
weekly for food assistance-    with discounted groceries.      homebound. This funding          With this grant, Ripe Revival   opportunity for depressed
eligible recipients. Through   With the additional funding,    helped Replate expand its        added new product lines         rural communities, reduce
affordable delivery, the       Imperfect Foods was able        capacity to recover and          to its assortment, including    on-farm food loss, and
service gave vulnerable        to provide free delivery to     redistribute donated food in     shelf-stable pouches of         increase access to
seniors access to fresh,       low-income seniors in the       select markets for families      soups, sauces, smoothies        healthy food.                       Mobius and Winnow did not apply for 2020
nutritious food during the     program nationwide.             experiencing food insecurity.    and meals.                                                          COVID-19 relief support but are important
COVID-19 pandemic.                                                                                                                                                  members of our Innovation Fund portfolio.

Total food waste impact of                             Prevention                              Recovery                              Operating
the Innovation Fund portfolio
companies during 2020:                                 5.4M                                    1.3M                                  400                     160
                                                       pounds of food waste diverted           meals donated to feed                 volunteers engaged      jobs created
                                                       from landfills                          our communities
ZeroHungerZeroWasteFoundation.org
Investing in Positive Impact - 2021 Report - The Kroger Co.
9          2021 Zero Hunger | Zero Waste Foundation Report

2021 Innovation Fund Cohort
The Zero Hunger | Zero Waste Foundation launched the
Innovation Fund’s second open call earlier this year, inviting                              Agua Bonita                                          Grain4Grain
                                                                                            Hanford, CA                                          San Antonio, TX
eligible innovators to apply for business support and funding                               makes ready-to-drink aguas frescas from              uses patent-pending technology to upcycle
totaling $2.5 million in grants.                                                            upcycled produce, served in culturally inspired      brewers’ spent grain into a low-carb, high-protein
                                                                                            and recyclable cans.                                 and high-fiber flour.

Upcycled food is the next frontier in            Grantees also participated in a virtual
food waste prevention. Processors                workshop focused on investment             Husky Beverages                                      Journey Foods
recover food that may otherwise                  readiness, technical skill development     West Palm Beach, FL                                  Austin, TX

go to landfills, thereby encouraging             and networking with a community of         is an innovative brand featuring a sparkling         solves food science and supply chain
                                                                                            tea made from the “husk” of organic, upcycled        inefficiencies with software to help companies
the reintroduction and reuse of                  investors and mentors in and around
                                                                                            coffee fruit.                                        direct more surplus food to those who need it.
food items into the supply chain.                the food system. The innovators have
Applicants were invited to submit                exclusive access to the Foundation’s
proposals with a business model that             and Village Capital’s leaders and
requires sourcing surplus food or food           partners, as well as the option to apply
byproducts and manufacturing them                for follow-on funding.                     Matriark Foods                                       NETZRO
into new consumer-facing products.               Cohort members are each eligible for       Nyack, NY                                            Minneapolis
The Foundation—in collaboration with             an additional $100,000 grant from          upcycles farm surplus and fresh-cut remnants         is a food technology platform for recovering
                                                                                            into healthy affordable products for institutional   industrial byproducts at scale that would
Village Capital, the largest supporter           the Innovation Fund based on the
                                                                                            foodservice.                                         otherwise be wasted into new
of impact-driven, seed-stage startups            achievement of identified program                                                               upcycled ingredients.
in the world, and the Fund’s advisory            milestones. At the end of the six‑month
committee—selected 10 recipients.                milestone period, two startups will
Each startup received $100,000 in                be selected by their cohort peers for
upfront seed grant funding, totaling             an opportunity to receive an additional    reBLEND                                              Renewal Mill
an initial $1 million investment.                $250,000 in funding.                       Denver                                               Oakland, CA
                                                                                            is a line of frozen smoothie pops packed with        upcycles byproducts from food manufacturing
                                                                                            re-harvested produce + superfoods and a bold         into superfood ingredients and premium,
                                                                                            mission to tackle food waste.                        plant‑based pantry staples.

$2.5M                                                                                       Take Two
                                                                                            Portland, OR
                                                                                                                                                 The Spare Food Co.
                                                                                                                                                 New York
in grants                                                                                   is a plant-based food company that uses              is an upcycled food technology platform that
                                                                                            Rejuvenated Barley™—upcycled spent grain             creates foods and drinks using overlooked and
                                                                                            from beer production—in a line of nutritious         unused ingredients sourced from
                                                                                            barley milks and other products.                     growers and food processors.

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Investing in Positive Impact - 2021 Report - The Kroger Co.
Thank you
to our donors
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 ZeroWasteFoundation.org

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