Agency Retail Store Programs

Agency Retail Store Programs TFBN Food Resource, Operations & Agency Relations Conference Austin, TX - April 2014

Session Objectives Retail Store Donations Agency Partner Modeling Member Snapshot Northern Illinois Food Bank- Direct Connect Key Takeaways Open Discussion

Retail Store Donations

The Food Banking Model is Shifting Channel Meals by Channel 3.6 Billion* New Frontiers SNAP 3.2 Billion Purchased Federal Commodities Manufacturing Meals (MM) Retail Fresh Produce * Feeding America is currently revising our 2018 meal goals

How Much it Costs to Source Food 3.2 Billion Meals Sourced in 2013 Food Source Cost Per Meal % of FA Food Stream % Trend Federal Commodities* $0 21% Manufacturing $0.04 23% Produce $0.17 15% $0.24 27% Retail $0.73 14% Purchasing Cost per meal is the dollar equivalent of resource needed to source and distribute food *Rapid reduction in availability

Retail Partnerships Primary donation source for highly perishable items such as milk, bread, lean meats, fruits and vegetables that promote healthy living and well being Helps food banks secure food from local branches of major national and local retailers such as Walmart, Kroger, Target, Albertson’s Enhances relationships between food banks and local stores, leading to sustained donations and transportation efficiencies Through this program, Feeding America collected and distributed 888 million meals in 2013; by 2018 we will source 1.2 billion meals through this channel.

Retail Partnerships- Store Product Mix *2013 retail receipts from 105 food banks

Agency Partner Modeling

Agency Partnering Criteria Proximity to Store 30 minutes of less Days and Hours of Distribution Open at least once a week, recommend more Priority to same-day distribution Storage Capacity Adequate refrigeration and freezer storage Capability Adhere to retailer’s pickup requirements and partnership expectations Confidence in food and product handling at retail Ability to transport food safely Necessary manpower Reporting requirements Relationship Understand retailer’s mutual relationship with food bank and overall responsibilities Sign and renew partnership agreement with the food bank annually

Agency Partnering Benefits Higher product yield Fresh and nutritious product Less handling Faster inventory turns Stronger agency and food bank partnerships Localized donor relationships and better rapport More efficient, cost effective Long term enabling

Agency Partnering Challenges Food Safety Pick-up Transport Distribution Storage Time/ Temp Capacity Freezer, Cooler Access, Turn Commitment On-going Volunteers FB relationship Store Hard frozen (protein) Species separation Correct boxes Product off of the floor Donations clearly marked Donations accessible Education Turnover Product Mix Perishables Nutrition Non-Food

Agency Partnering Best Practices Food Safety- Top priority, accountable, transparent Commitment- Stability needed in partnership Resources- Time, treasure, talent considerations Understanding- Program, procedure, setting expectations Training- Get updated, be informed Management- Just like any relationship, the TLC is on-going Diversity- Individualistic, departmental, corporate, functional- recognize and understand tracking-accountable, reporting, benchmarking Customer service- drivers, agency, meetings, community perception Always provide professionalism, accountability and transparency!

Agency Partnering Best Practices (cont.) Additional best practices to note: Look for strategic partnering that best fits long term needs for service area and constituents. Look for partners that are open and convenient for the distribution of perishables to clients. Formalize Agency Partnership with a signed Agency Retail Partnership MOU or Agreement. Set expectations around donor relationship - including frequency of pickups, donor interaction, issue resolution, accountability, reporting, etc. Acknowledge and react to Food Bank responsibility for relationship management with both the donor and agency partner. Multiple departments are involved and transparent to relationships: Agency Relations, Product Sourcing, Inventory, Warehouse Ops., etc. Ongoing training, relationship updates and food safety practices are critical components.

Agency Partnering Agreements Food Bank- Agency Application Agreement for Retail Store Donations Our agency understands that retail stores will be made available for pickup of donations based on the direction and needs of the Feeding America Food Bank member assigned to a particular service area. As a local partner, our organization is applying to be a designated agency for pickup and utilization of such retail store donations. Agency Name _______________________________________ Food Bank ID# ________ Agency Physical Address _____________________________ City and Zip Code _____ Agency Director or Pastor _____________________________ Telephone #s: _________ Agency Contact Person (for Pickups) ___________________ Telephone #s: _________ Type of trucks and trailers to be used for pickups_______________________________ Describe refrigeration at agency_______________________________________________ Describe freezer space at agency______________________________________________ Agency Agrees to: Pick up food at designated location during set times agreed upon with the local store and the Food Bank. If active refrigeration is not available, provide coverage of refrigerated or frozen food during transport with a freezer blanket or pallet cover as directed. Weigh donated product by designated categories after each pickup. Report pounds of food received in each category to the Food Bank within 24 hours of receipt. Where appropriate return equipment or supplies back to the store s. Distribute all donated products in accordance with our Food Bank Distribution Agreement We understand that failure to comply with this agreement can be cause for termination of our participation in retail partnerships. Agency Director or Pastor Signature___________________________________________ Date of signature____________________________________________________________ Example

Agency Partnering Resources Infrared Thermometer Thermal Pallet Cover Thermal Insulate Blanket Identification Badge Report Format Commercial Scale Store Donation Agency Training DVD

Member Snapshot Northern Illinois Food Bank- DIRECT CONNECT

Northern Illinois Food Bank- Fall 2013 237 Stores 20 Retailer banners 10 Daily Food Bank Routes 112 Network Partners on “Direct Connect” 222 store connections 116 joint partnerships (with Food Bank) Store Donations- 19.6 M pounds 46.0% picked up by Network Partners 5.2 M pounds of Produce 4.3 M pounds of Meat 2.6 M pounds of Refrigerated

Northern Illinois Food Bank- Fall 2013 (cont.) Transport All refrigerated trucks Storage & Handling Meat frozen for 48 hours before “processing” All meat is individually inspected and labeled Fresh Rescue Drops (37 weekly) Helps get food to sites and guests fresher and faster “Spreads the wealth” Drivers Working to certify all in Safe Food Handling Equipped with thermometers Monthly Meetings Keep each other abreast of changes and challenges

DIRECT CONNECT- Partner Qualifying Proximity to Store 30 minutes of less Days and Hours of Distribution Open at least once weekly, at least 2 hours Priority to same-day distribution Client Choice Storage Capacity Adequate refrigeration and freezer storage Capability Meet store pickup requirements Ability to transport food safely, with approved devices Necessary manpower Agreement Signed and renewed annually

DIRECT CONNECT- Partner Training In-store Meeting to Review: Feeding America and Food Bank’s food handling guidelines Donor’s specific donation process and requirements Annual Basic Food Safety Training In conjunction with Extension Service Annual Direct Connect Training Includes Feeding America staff Key Food Safety practices reinforced “Field” situations discussed Donor-specific Training for Connected Store Partners Includes representatives from featured retailer Make Available Training for Volunteer “Harvesters”

DIRECT CONNECT- Partner Equipping Equipment Essentials provided: Freezer blankets/pallet covers Other passive devices available as requested e.g., coolers, ice packs, ice blankets, etc. Thermometers and temperature logs Food grade markers For marking through bar codes (donor protection) Donation record forms

DIRECT CONNECT- Partner Monitoring Part of Annual Agency Site Monitors Quarterly Store Survey Is the Food Bank and/or Partner practicing food safety? Is the Food Bank and/or Partner picking up when expected? Is the Food Bank and/or Partner courteous and professional? Is the Food Bank and/or Partner leaving a signed and dated donation record? Is the Food Bank and/or Partner communicating changes and challenges?

DIRECT CONNECT- Partner Communication Monthly Retail Newsletter Update changes Customer service tips Food safety reminders Reinforce the value of our retailers Monthly Conference Calls Two per month Voluntary No agenda (open communication)

Key Takeaways

Key Takeaways FBs should evaluate potential agency partners based on strength, capacity & store proximity. A larger agency partner picking up multiple stores may be better than a single agency picking up one store. ROI pros and cons need to be weighed holistically. Direct pick-up expense, shared maintenance, agency oversight, administrative costs, local community impact and support are all weight factors. Donors love this model as it localizes community engagement for employees. BUT… Donor also expects service, accountability and compliance that is comparable to other business partners and vendors. Ultimately, relationships need to be mutually beneficial for all parties, as well as sustainable for the long term, in order to minimize disruption for our donors.

Open Discussion

THANK YOU!
Kurt Welz
Retail Product Sourcing Manager Feeding America

Agency Retail Store Programs

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Kurt Welz