WBCSD: A Procurement Revolution in the Food & Drinks Sector
Procurement teams are amongst the most important people in the food and drinks sector, and they have a huge part to play in shaping food sustainability, meal satisfaction and public health.
The World Business Council for Sustainable Development (WBCSD) understands the significance of procurement in the sector, especially when it comes to improving the nutritional value of food and drinks.
In its latest report, Building an Inclusive Procurement Strategy: Best Practices for Advancing Nutrition through Food Service Procurement, the Council surveyed 10 food and drink experts, gathering their views on incorporating nutrition into procurement strategies and the decision-making processes along the food service value chain.
The findings suggest that food service procurement could spearhead positive changes by promoting industry collaboration and integrating clear nutritional policies while balancing cost considerations with health benefits.
“Aligning procurement with sustainability as well as nutrition goals isn’t just a nice-to-have – it’s a powerful lever for change," says Chavanne Hanson, Food Choice Architecture and Nutrition Manager at Google.
"When businesses prioritise health in their sourcing decisions, they have the ability to shift the entire food system toward better outcomes for people and the planet.”
How the food service sector is changing its approach to procurement
Food service procurement teams often have to confront conflicts between consumer demands, cost factors, regulatory frameworks and sustainability targets. Unfortunately, this often leaves nutritional considerations by the wayside.
According to the WBCSD, organisations that seamlessly integrate nutrition into their procurement decisions are in a prime position to support global sustainability objectives, mitigate climate-related impacts and craft healthier food environments, thereby causing a ripple effect across countless diets.
A 2023 study by the Food and Agriculture Organisation showed that diet-related health costs represent 70% of all hidden costs in the global food system.
A shift towards plant-rich, healthier dietary practices by 2050 could potentially reduce biodiversity loss by 40%, cut greenhouse gas emissions and water usage by a third each and economise about 150 million years of healthy, productive lives globally.
In short, sustainable procurement in the food and drinks sector can fundamentally change the world.
The obstacles ahead for food service procurement
The projections are nothing short of revolutionary, but there are several challenges that the industry must first overcome.
The WBCSD has identified multiple hurdles within the value chain that deter the integration of nutrition into food service procurement.
Naturally, cost is a primary concern of companies. The WBCSD finds that the majority of organisations remain inclined towards cost-effective procurement that emphasises affordability, driven by the misconception that healthier food options are invariably more costly.
Budget constraints in settings such as hospitals and educational institutions make advocating healthier choices more challenging still.
Furthermore, decentralised procurement systems can exacerbate the lack of cohesive effort between culinary, procurement, and nutrition teams, further contributing to the oversight of nutritional value in procurement choices.
And despite customers expressing their preference for healthy food and drinks options, consumer buying behaviours often skew towards convenience, taste preferences and price sensitivity.
Changing this dynamic necessitates a concerted shift in industry practices and mindsets.
How to promote good nutrition
Without strategic internal actions, food procurement decisions may inadvertently promote unhealthy diets.
The WBCSD's report offers several suggestions that could enhance the integration of nutrition within procurement strategies.
These include setting explicit nutritional goals and policies, utilising data analytics, strengthening supplier collaborations, fostering internal alignment, ensuring the presence of internal champions, encouraging culinary innovation and consumer-targeted marketing, and offering relevant training and educational programmes.
These strategies can help organisations align with both regulatory and investor expectations on health and ESG criteria, improving public health and well-being, and driving business value by catering to the growing consumer demand for healthier choices.
“If we want to see real change in food systems, we need to embed nutrition considerations into every stage of decision-making, including procurement," says Jackie Schulz, Senior Director of Global Nutrition at Griffith Foods.
"Equipping teams with the right knowledge helps ensure that nutrition isn’t an afterthought but a core part of how food is sourced and served.”
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