Walmart Poses a Sustainability Challenge
To downsize its footprint without raising prices, Walmart Brazil urges Cargill to update its successful Liza® cooking oil.
January 01, 2015
In 2008, Walmart Brazil funneled its energy into sustainability, establishing the End-to-End Project, an initiative designed to inspire its customers to rework their offerings in eco-conscious ways. The initiative challenged ten of Walmart Brazil’s top suppliers to integrate sustainable practices into their existing products, whether finessing operations, revamping packaging, replacing existing ingredients, or all of the above, but without raising the cost to consumers.
Building on its global commitment to responsible practices, Cargill accepted the initiative and evaluated its Liza cooking oils, a popular brand found in more than 30 million homes across Brazil.
The team first focused on reengineering the Liza plastic bottle packaging, careful to maintain the brand’s high-quality image—it was vital that the bottle not appear “flimsy.” The new design delivered, upholding the brand’s aesthetic with 10% less material.
To build sustainability in production, Cargill utilized its new soy processing plant in Mato Grosso, located northwest of Walmart Brazil’s São Paulo headquarters. Developed by Cargill specifically for resource conservation, the plant features a boiler fueled by wood-based biomass (instead of fossil fuels) and turbines directly powered by the boiler’s steam—a system that self-generates 60% of the operation’s needed electricity
After reassessing how its cooking oils are made, Cargill also changed how they are delivered, saving energy and cutting greenhouse gas emissions by revising its transportation logistics. The team located more efficient distribution routes and reduced its fleet of trucks, making better use of cargo space and back-hauling empty vehicles.
After 18 months, the team presented the results to Walmart, reporting a 26% reduction of water usage, 56% reduction of fossil fuel use, and a 40% reduction of greenhouse gas emissions.
With the success of its End-to-End Project in South America, Walmart is now considering a second launch for its US-based operations.