The partnership between Ahold Delhaize USA, a major retail conglomerate, and General Mills, a leading consumer packaged goods (CPG) company, signals a bold step towards sustainable practices in the food industry. Their collaboration aims to mitigate scope 3 greenhouse-gas emissions through focused investments in priority supply sheds—specifically, the geographic regions from which they source critical ingredients.
This innovative initiative is set to support farmers in adopting regenerative agricultural practices. By leveraging insights from the Ecosystem Services Market Consortium (ESMC), farmers will gain access to vital technical and financial assistance. This support will facilitate the implementation of practices like cover cropping and ecosystem-friendly nutrient management, which are pivotal for enhancing soil health and reducing emissions.
Marc Stolzman, Chief Sustainability Officer of Ahold Delhaize USA, emphasized the importance of strategic collaboration, stating, “This relationship emphasizes how strategic collaboration is essential for addressing climate impacts and creating positive environmental outcomes.” The company anticipates that the results from this initiative will not only benefit individual farmers but will also drive substantial progress throughout the broader supply chain.
By the close of next year, over 70,000 acres across Kansas and Saskatchewan will experience improved regenerative agriculture management through this collaboration. This large-scale effort aligns with the acreage that General Mills uses to source key ingredients like wheat and oats for products sold under Ahold Delhaize USA banners. This strategic move is part of a larger objective aimed at fostering a sustainable food system.
General Mills’ commitment to regenerative agriculture dates back to 2019, making it one of the first companies to prioritize this shift. Mary Jane Melendez, Chief Sustainability and Global Impact Officer at General Mills, highlighted the company’s farmer-centered approach. “We champion a farmer-centered approach across key regions where the ingredients we source are grown, aiming to produce positive environmental, social, and economic outcomes,” she noted. This commitment positions Ahold Delhaize USA as a fitting partner due to their mutual goals toward enhancing food system resilience.
To further compartmentalize this approach, ESMC will oversee impact assessment and verification processes. Working with an independent third-party organization will lend credibility to the metrics around greenhouse-gas reductions and soil carbon sequestration. This emphasis on transparency is crucial for stakeholders invested in environmental accountability.
The collaboration with ESMC builds upon an existing partnership that began in 2020, characterized by rewarding farmers for environmental progress resulting from regenerative practices. Debbie Reed, Executive Director of ESMC, underlined the reciprocal advantages: “By creating opportunities for co-investing in regenerative agricultural solutions, producers win, corporations win, and consumers win.” This cyclical benefit is transformative as it fosters resilience across the entire agricultural supply chain.
Ahold Delhaize USA is no stranger to sustainability initiatives. Earlier this year, the retailer launched its second farmland-focused scope 3 pilot program in partnership with food company Kellanova and agribusiness Bartlett. This program aims to decrease greenhouse-gas emissions from wheat farming throughout the value chain while simultaneously enhancing resilience for farmers and suppliers.
In June 2024, financial commitments from these companies began supporting North Carolina wheat farmers as they transition toward regenerative practices. The harvested wheat will later be combined with conventional wheat to produce well-known snacks like Kellanova’s Cheez-It and Club crackers, slated for sale under Ahold Delhaize USA’s brands in 2025.
Ahold Delhaize USA, a division of the Netherlands-based Ahold Delhaize, ranks as No. 11 on Progressive Grocer’s 2024 PG 100 list of the top food and consumables retailers in North America. Additionally, it has attained recognition as one of the “Retailers of the Century” and among the “10 Most Sustainable Grocers.”
The ongoing initiatives underscore a vital industry trend: sustainable practices are not just emerging novelties but rather essential frameworks for future growth and competitive advantage. As consumer awareness and regulations around sustainability increase, collaborations like those between Ahold Delhaize USA and General Mills are likely to become increasingly common.
Indeed, this partnership exemplifies a proactive approach that addresses the pressing challenges of climate change while simultaneously fostering economic opportunities for farmers and creating an environmentally responsible supply chain.