Case Study on Consumer Surplus

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CASE STUDY ON CONSUMER SURPLUS – NESTLE

Background

Nestlé is one of the world’s largest food and beverage manufacturer, employing around 250,000 people and operating in 180 countries.

In the UK we have been considering the disposal of waste from our 22 sites for some time. A significant concern for Nestlé in the past has been that surplus stock, perhaps near the end of its shelf life, once out of Nestlé’s control could re-enter the market. With environmental concerns a key part of Nestlé thinking, the secure route of 100% landfill is no longer an option. FareShare 1st is a solution that securely re-distributes food still fit for consumption and diverts the remaining waste from landfill.

How the issue was tackled:-

Alongside other food manufacturers and retailers, Nestlé have been working with the charity FareShare for some time to support them in redistributing surplus food to those in our communities who need it most. FareShare had for some time been looking at extending their operations to a full waste disposal service for companies as a means to fund their growing charitable operations. The principal being that they would re-distribute the food still able to be used to those who need it, and dispose of the remaining waste by the most environmentally sound means possible.

Nestlé worked with FareShare to develop a sound business model, covering all logistical details including distribution and storage to ensure the programme would be viable for large companies. As a result of this work the innovative waste management solution FareShare 1st was established. Benefits And Impacts:- FareShare and Nestle UK, by working together, have so far been able to:

* Reduce surplus food going to landfill from 100% in 2005 to less than 5% in 2006. * Redirect 388 tonnes of food from Nestlé in 2007, providing over 600,000 meals’ worth of food to those in need. * Be awarded the ‘Best Partnership’ award by leading recycling organisation...
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