Agency Retail Store Programs

TFBN Food Resource, Operations & Agency Relations Conference

Austin, TX - April 2014

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Session Objectives

• Retail Store Donations

• Agency Partner Modeling

• Member Snapshot

Northern Illinois Food Bank- Direct Connect

• Key Takeaways

• Open Discussion

Retail Store Donations

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FY10 FY13 FY180

500

1000

1500

2000

2500

3000

3500

4000

380 489833

462

888

808+692

734

608+654

660

526+387

460

457+

101

188

342

250~+1 Billion 2010 – 2018

2.6 Billion

The Food Banking Model is Shifting Meals by Channel

New Frontiers

SNAP

Purchased

Fresh Produce

Retail

Manufacturing

Federal Commodities

Channel

Meals

(M

M)

3.2 Billion

3.6 Billion*

* Feeding America is currently revising our 2018 meal goals

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How Much it Costs to Source Food

3.2 Billion Meals Sourced in 2013

Food Source

Federal Commodities*

Manufacturing

Produce

Retail

Purchasing

Cost Per Meal

$0

$0.04

$0.17

$0.24

$0.73

% of FA Food Stream

21%

23%

15%

27%

14%Cost per meal is the dollar equivalent of resource needed to source and distribute food*Rapid reduction in availability

% Trend

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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.

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Retail Partnerships- Store Product Mix

*2013 retail receipts from 105 food banks

Agency Partner Modeling

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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

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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

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Agency Partnering Challenges• Store

o Hard frozen (protein)o Species separationo Correct boxeso Product off of the flooro Donations clearly markedo Donations accessibleo Educationo Turnover

• Product Mixo Perishableso Nutritiono Non-Food

• Food Safetyo Pick-upo Transporto Distributiono Storageo Time/ Temp

• Capacityo Freezer, Coolero Access, Turn

• Commitmento On-goingo Volunteerso FB relationship

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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!

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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.

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Agency Partnering AgreementsFood 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

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Agency Partnering Resources

Thermal Insulate Blanket

Thermal Pallet CoverIdentification

Badge

Commercial Scale

Infrared Thermometer

Report Format

Store Donation Agency Training DVD

Member Snapshot

Northern Illinois Food Bank- DIRECT CONNECT

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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

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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

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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

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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”

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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

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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?

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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

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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

Kurt WelzRetail Product Sourcing Manager

Feeding America

THANK YOU!