Ahold believes in sustainability in Europe, but not here?

Sustainability

Ahold believes in sustainability in Europe, but not here?

by David Alpert • March 16, 2009 1:41 pm

Lobbyists were prowling the halls of the Wilson Building last week, trying to derail the Anacostia River Cleanup and Protection Act. That bill will impose a small five-cent fee on carryout bags at grocery and liquor stores. The fee will create an incentive to use reusable bags, and the money collected will fund river cleanup and free bags for low income and elderly residents.

Opponents, however, are pushing a claim that the bill will harm minority communities. It won't. Many community and religious leaders from those communities endorsed the bill. Councilmembers Marion Barry, Yvette Alexander, and Harry Thomas, Jr. have all signed on, along with 9 of their colleagues. We dump trash into the river that flows through the poorest parts of our city. Cleaning up their water, while giving free bags to those in need, will improve the quality of life for everyone, especially our neighborhoods along the Anacostia.

GGW has obtained a letter opposing the bill from Barry Scher, Vice President of Public Affairs for Giant Food. It's strange that Giant is opposing this bill, since they already offer a five-cent credit for every bag a shopper brings in to reuse. That policy clearly pegs the value of each bag at five cents. This bill just codifies the same value. Meanwhile, other area supermarkets that don't give any discounts today aren't lobbying to kill the measure.

Does Giant's corporate parent know what they are doing? The chain is part of Royal Ahold, an international grocery company based in Amsterdam. They operate grocery stores in the US, Netherlands, Czech Republic, Slovakia, Sweden, Norway, and the Baltic states. And on their Web site, Ahold makes clear statements about their commitment to sustainability and corporate responsibility.

In fact, Royal Ahold posts a policy on plastic bags, stating, "All of our supermarket companies offer reusable shopping bags and numerous opportunities to recycle plastic bags. In many of our operations, we charge consumers a small sum for plastic bags to discourage their use." In the Netherlands, stores charge customers the equivalent of 25 cents for every single-use plastic bag. In Denmark, it's 35 cents.

20,000 tons of trash enter the Anacostia River each year, and plastic bags comprise 47% of the trash in the tributaries. Royal Ahold believes in sustainable operations and good relations with their communities. In Europe, Ahold's stores charge for every plastic bag. The company's corporate statements even support this practice. Why, then, is Ahold's U.S. operation lobbying against a similar bill here, but one that charges only a small fraction of what their stores endorse in Europe? Corporate responsibility doesn't stop at the Atlantic's edge. Ahold should tell their U.S. operation to get on board.

Image: From the Royal Ahold 2008 corporate responsibility report. Google translates this phrase as "This is an ordinary track [footprint?]. Your C0₂ footprint can be found in the eighth floor." At the headquarters of Czech grocer Albert-Hypernova, employees received handouts and watched a presentation about corporate responsibility initiatives (presumably on the eighth floor of their building). Anyone speak Czech who can explain the first sentence?

26 comments

Tags: bag fees, DC Council, Giant

Get plastic bags out of the Anacostia (Feb 12, 2009)
Reusable bag incentive begins in two days (Dec 30, 2009)
12 Councilmembers co-introduce 5-cent fee for disposable bags (Feb 17, 2009)
Alexander calls on all residents to protect the environment (Apr 6, 2009)
Anacostia bill passes committee markups (May 14, 2009)

David Alpert is the Founder and Editor-in-Chief of Greater Greater Washington and Greater Greater Education. He worked as a Product Manager for Google for six years and has lived in the Boston, San Francisco, and New York metro areas in addition to Washington, DC. He loves the area which is, in many ways, greater than those others, and wants to see it become even greater.

Comments
Add a comment »

Thank you David for finding this contradiction in corportate ploicy and local corpaorate behavior and publishing it.

Does that phrase translate to something about what we do today impacts the 7th generation of our descendants?

by Bianchi on Mar 16, 2009 1:50 pm • link • report

I updated with a translation at the bottom from Google. I think it really is saying there's something on the 8th floor, because they used this logo during a day where they made presentations at the corporate HQ. That was probably on the 8th floor.

by David Alpert on Mar 16, 2009 1:52 pm • link • report

Thanks for posting this! It is impressive how Scher's letter does not even admit the possibility that some of Giant's low-income customers might actually start using reusable bags at the store. No, instead they will all suffer great financial burdens, because people with low incomes are incapable of figuring out how to save money.

I wonder what is at the root of Giant's opposition - will they lose money if this bill passes? Or is it just foot-dragging opposition to any kind of change?

by Erica on Mar 16, 2009 2:02 pm • link • report

Actually, it's a euro for every plastic bag in the Albert Heijn in the Netherlands. As it is in virtually every Dutch supermarket.

I would be surprised if Ahold is very interested in what happens in their US supermarkets. They burnt themselves badly with US Foodservice. Their CEO even got slapped with a €30k fine for fraud. [Note: this may seem pathetic in the US, but it was considered pretty severe in the NL]

Since then, they've been scaling back their international operations, and shelling of some of their US brands. It guess they're only holding on to Giant because it's a good cash-cow or because they can't find a good buyer who wants to pay an acceptable price.

by Jasper on Mar 16, 2009 2:16 pm • link • report

Thanks, David, for writing this. I must admit I always thought Giant was a locally run mom and pop.

Join me and take five to write an email:

Ahold Corporate Responsibility:

Roland Waardenburg, VP for Corporate Responsibility

Onno Franse, Program Director Healthy Living & Climate Action

Hugo Byrnes, Director Product Safety & Consumer Affairs

web.corporateresponsibility@ahold.com

by JTS on Mar 16, 2009 2:20 pm • link • report

At least three reasons I can think of for Giant to oppose this despite a policy of bag credits:

1) Their policy is voluntary and can be changed if the need arises. DC's tax will become entrenched and is difficult to change.

2) Their policy may provide a competitive advantage versus other supermarkets. They can have a "green" mantle with their current program, but if all other stores are forced to do the same, they lose that advantage.

3) They currently make 5c/bag when a customer doesn't bring in their own. Under the DC bill, that margin will decline to 2c (or 1c--whatever), since most of the money now goes to DC.

by ah on Mar 16, 2009 2:29 pm • link • report

You don't understand the difference between a voluntary corporate policy and a government mandate?

by Nathan on Mar 16, 2009 2:37 pm • link • report

ah: Re: point number 2.

Wouldn't this be negated if they are leading the charge against the bill? The advantage is based on public perception, and I doubt it will do much for their green image if they become the public face of opposition.

Not to mention, when I think of "green" grocery stores, Giant doesn't leap to mind. But I agree that could be their intent.

by Tim K on Mar 16, 2009 2:40 pm • link • report

You also seem to be confused by the difference between providing a five-cent credit for each relatively large reusable bag that is filled and a five-cent charge for each relatively small, plastic bag, that the customer needs. Given that sometimes it is necessary to double bag with the small plastic bags, the five-cent per bag charge for a set amount of groceries can be as much as four times what the five-cent per bag credit would be for the same groceries.

by Andy on Mar 16, 2009 2:45 pm • link • report

Did anyone else find his overuse of exclamation points to reduce his credibility?

by Erik on Mar 16, 2009 3:03 pm • link • report

If I had nickel for every exclamation point Scher uses in his letter...

Erica is quite right about Scher's patronizing attitude about the "most needy" being incapable of figuring out how to save 20 cents/shopping trip -

The most important omssion in his letter though is the aspect of the legisilation that allows for re-useable bags to be handed out for free to the "most needy".

As this battle gets going look for oppostition to omit this in every exclamation-rich plea against this incentive to reduce plastic bags.

It also really bugs me that Scher assumes the "most needy" don't care about the Anacostia river, the environment in general, and don't seek ways in their own lives to make a difference.

Furthermore for all those needy old ladies carrying bags of grociers: the wide cloth handle of a re-useable bag is much easier to carry then the thin plastic handle that cuts into your hands and fingers. Doesn't Scher care about the hands and fingers of the "most needy"?

by Bianchi on Mar 16, 2009 3:04 pm • link • report

Erik - yes-i wrote the above comment b4 i saw yours!!!!!!!!

by Bianchi on Mar 16, 2009 3:06 pm • link • report

@Tim K-- possibly, although I doubt they're going to be super-public about their opposition. Even if they are, their PR folks could pretty easily spin it as a private-leadership/no government mandates approach. Heck, even make a corporate pledge of $25k to fund cleanup efforts of local waterways.

Given all the financial scandals the DC government seems to get involved in, any half-decent PR flak could make some hay talking about how it's not productive to give the DC government still more tax money to lose/waste/have stolen.

by ah on Mar 16, 2009 3:32 pm • link • report

@ah : I doubt bashing the DC government (as deserved as it may be) would be a wise PR strategy to shift the DC Council's obvious desire to pass this legislation.

Also, back to the original point, for it to be a comparative advantage to for Giant then they must highlight it to consumers. I've seen no advertising on this point, and had to dig fairly deep in their website to even find their 5 cent bag return policy. So far their attempts to derail this proposal are as public as their bag policy.

And I'm no grocery store budgetary expert, but would this bag policy even end up costing Giant $25k? Not being snide, anyone have a guess?

by Tim K on Mar 16, 2009 4:50 pm • link • report

Won't Giant save money since they'll be buying fewer bags to give away?

i discovered Giants current policy by accident when I brought my own bags and the check-out clerk told me i saved 15 cents. Although really i saved more then 3 bags for Ginat since I brought 3 huge honkin' bags that would have required 9 or 10 plastic ones to hold the same volume.

by Bianchi on Mar 16, 2009 4:56 pm • link • report

I don't see how it would cost them anything. If they maintain their 5 cent refund policy, they get 2 cents per bag. That'd save them a lot of money on bags.

Would anyone shop in Maryland or Virginia instead? Maybe a few, but I doubt many. If a city store is already more convenient, then 20 cents on a trip won't suddenly make it too inconvenient. Besides, if they go to a suburban store, it's as likely as not to be another Giant.

by David Alpert on Mar 16, 2009 4:58 pm • link • report

$25k is 500k bags @ 5c each. That's about two shopping trips, the way plastic bags get used by the checkers. Yes, I'm looking at you Safeway.

As for the DC Council, while they may be falling all over themselves to pass this bill, they've done that before on various legislation that seems win-win in their minds, but then have second thoughts when others voice their views.

@ Bianchi -- I'd be tempted to let them bag in plastic next time, and then pull out a wad of 'em to recycle and ask for $2 back.

by ah on Mar 16, 2009 5:08 pm • link • report

Would anyone shop in Maryland or Virginia instead?

by David Alpert on Mar 16, 2009 4:58 pm

No.

by Jazzy on Mar 16, 2009 6:26 pm • link • report

actually, the "needy" comment is spot on.

You are confusing the 5 cents credit (for bringing a reusable bag) with the 5 cent charge PER plastic bag. A trip to grocery store could bring in a 25 cent charge.

Look, I bring a bag when I can. Sometimes I forget. Sometimes it gets filled up. Why do we nickle and dime the poor (i.e. 10% tax on MickyD, $1 ATM fees, etc). Sure, if you've middle class a quarter doesn't mean much. When you are scrounging around for every penny, that 25 cents really annoys.

My $5 resuable bags will never make my investment back. I bought them so they are easier to carry groceries. I don't see why we are penalizing poor people for plastic bags in anacostia. well, i guess rich people know better....

by charlie on Mar 16, 2009 6:49 pm • link • report

Somehow the Europeans, who sometimes live at US-like densities manage with this. Once it happens, it will turn out to be no big deal, esp. if one of the adjacent jurisdictions does it at the same time--Montgy County looks like a possibility.

by Rich on Mar 16, 2009 8:02 pm • link • report

FWIW, Giant is now owned by Stop & Shop, a New England company.

by TJ on Mar 16, 2009 8:07 pm • link • report

@TJ

http://www.ahold.com/en/brands

by JTS on Mar 16, 2009 8:19 pm • link • report

" don't see why we are penalizing poor people for plastic bags in anacostia."

If you want to make it local, it's also the river in Anacostia that stands to benefit.

by ah on Mar 16, 2009 8:58 pm • link • report

charlie-the bill includes funds to Give reuseable bags to some people. For this reason the financial burden argument is weakened a lot, if not completely. Besides plastic bags last forever (in human time). I'll bet there are tens of thousands of them in the households of DC right now. They can all be reused for many years.

by Bianchi on Mar 16, 2009 10:13 pm • link • report

Stop & Shop is part of Ahold. Giant is run as a division of Stop & Shop, a long with Giant of Carlisle, PA.

by Rich on Mar 16, 2009 10:49 pm • link • report

It's pretty obvious that Scher is just unhappy that the money will go to the district. Giant doesn't have any problem with charging users of disposable bags more (that can actually generate revenue for them), what they don't want is money from their customers being siphoned off by the city.

by David desJardins on Mar 17, 2009 12:56 am • link • report