Woolworths & Coles $1.7B OVER ORDERING =
$1.7B PROFITS DUMPED AS FOOD WASTE in landfill

ZERO WASTE STOCK REPLENISHMENT Pty Ltd - 1300 712 232

The following table shows the impact of Food Waste to Landfill on Supermarket earnings.

	Woolworths	Coles
Current EBIT FOR 21/22	$2.42 billion	$1.9 billion

Total Estimate of Food Waste to Landfill - at least	$1 billion +	$730 m +

EBIT Adjusted for estimate of Food Waste to Landfill + Unknown values	$3.55billion++	$2.433 billion++
Estimated EBIT to Landfill:

Current strategies to reduce Food Waste going to Landfill
o Discounts to reduce food waste in store	$200m	$120m
o Food given to Food Rescue (1 million meals a month)	$50m.	$30m.
o Landfill charges for 1.7 million tonnes (@ $50 per tonne)	$50m	$35m
Estimated Total EBIT Giveaway	$470m	$265m
Other Costs of Food Waste going to Land fill
o Growing and harvesting labour costs of wasted food	$30m.	$20m.
o Freight & handling costs to supermarkets	$200m.	$140m.
o Freight & handling from supermarkets	$200m.	$140m.
o Rental space used	$10m	$7m.
o Electricity and refrigeration	$30m.	$21m.
o Handling cost of waste stock in the supermarket stores	$70m.	$40m
Estimated Total EBIT Giveaway	$540 m	$368m
Environmental Costs of Food Waste to Landfill
o Water used to grow food that ends up as Waste (Est 2600 Gigalitres @ $50 a gigalitre)	$130m.	$100m.
o Frees water for other uses	Unknown	Unknown
o Emissions from freight	Unknown	Unknown
o Emissions from landfill	Unknown	Unknown
Estimated Total EBIT Giveaway	$130m.++	$100m.++

Additional EBIT Benefits

Reduction in staffing requirement
Reduction in store management stress caused by demand surge and Waste
Price drop strategies made feasible and minimised
Customer satisfaction with reduced stockouts.
Increased shelf range capability through freeing up shelf space.
Facilitates highlighting revenue shrinkage through theft by identifying stockouts that can then be investigated

Environmental Benefits (estimated to be about $230million)

Emission reduction
- From refrigeration and electricity
- From landfill emissions (currently not requiring mandatory reporting)
- From freight.
2,600 gigalitres of agricultural water saved for other uses.
ZERO FOOD WASTE from Supermarkets to Landfill by 2025 becomes achievable.
Reduction in road congestion
Reduction in road maintenance

Supplementary Benefits:

Price reductions for Fresh Food
Satisfied customers with no stock outs on the shelf.
Mental Health of team members with the reduction of surge stress.
Currently when a supplier promotes and advertises a product, due to stockouts, customers buy the competitors’ product as an alternate.
Suppliers currently have to employ their own crew to stock shelves to avoid customers buying competitors’ products, and to prevent stockouts.