AI-Driven Supply Chains: From Insight to Action

Announced at Cloud Next ’26, the partnership centers on leveraging Google Cloud’s Gemini Enterprise Agent Platform to help PepsiCo move “from insight to action more quickly and consistently at scale,” while strengthening its digital and multi-cloud foundations.

At the core of the collaboration is a push to modernize PepsiCo’s supply chain and go-to-market capabilities using AI.

“As market dynamics and customer expectations evolve, PepsiCo is re-examining how we bring products to market and how we make decisions at scale,” said Athina Kanioura, CEO, Latin America Foods, and Chief Strategy & Transformation Officer, PepsiCo.

She added: “Google Cloud’s deep expertise in AI and engineering strengthens our best-in-class supply chain and go-to-market capabilities — giving us unprecedented speed and precision to model scenarios that were previously impossible to run. The result is faster decisions, improved frontline experiences, and a step change in how we design and operate our business.”

The partnership enables PepsiCo to apply AI to complex challenges such as supply chain management and in-store execution—key priorities for global food and beverage operators navigating volatility and shifting demand.

Building a Resilient, AI-Powered Value Chain

PepsiCo will use Gemini Enterprise Agent Platform across three core areas:

• Scaling Global Intelligence

The company is expanding its data and analytics capabilities through an AI-driven digital platform built on Google Cloud’s global infrastructure, creating a more resilient foundation for operations and digital transformation.

• Optimizing the End-to-End Value Chain

AI capabilities will support faster, more informed decision-making—from long-term strategic planning to real-time execution in stores—helping drive productivity and cost efficiency.

• Empowering the Workforce

AI-enabled workflows will reduce manual effort and accelerate insight generation, allowing employees to focus on higher-value tasks while improving overall operational performance.

Multi-Cloud Strategy Strengthens Global Operations

A key component of the collaboration is PepsiCo’s continued investment in a flexible, multi-cloud environment.

By migrating to Google Cloud’s secure global infrastructure, the company aims to build new digital capabilities that support its worldwide supply chain network and enable it to “leverage the best available AI technology” across use cases.

This approach is designed to enhance agility across markets while ensuring consistent performance at scale.

AI at the Core of Food and Beverage Transformation

Thomas Kurian, CEO of Google Cloud, emphasized the role of AI in advancing supply chain resilience:

“PepsiCo has a long history of using data to understand consumer demand. With Gemini Enterprise, it is putting AI into the hands of its global workforce and empowering them with the tools to build a more resilient supply chain.”

Linking AI Strategy to Sustainability and Growth

The collaboration also aligns with PepsiCo’s broader transformation strategy, including its pep+ (PepsiCo Positive) framework, which places sustainability at the center of business growth.

By embedding AI across supply chain and operational workflows, PepsiCo is aiming to improve efficiency, reduce costs, and strengthen resilience—critical priorities for the global food and beverage sector.

The post How PepsiCo is Partnering with Google Cloud Use AI to Build a More Resilient Supply Chain appeared first on Food & Beverage Outlook.

MODERNISING FOR A LOWER-CARBON FUTURE

Cargill has taken a significant step forward in its sustainability journey with the successful modernisation of its Baupte site in Normandy, France.

Backed by an investment of approximately €25 million, the project has delivered a 45 percent reduction in total site CO2 emissions, marking a major milestone in improving operational efficiency whilst reducing environmental impact.

At the heart of the initiative is the transformation of one of the site’s most energy-intensive processes, demonstrating how targeted technological upgrades can unlock substantial emissions savings without compromising performance.

INNOVATION THROUGH ELECTRIFICATION

Central to the upgrade is the introduction of Mechanical Vapor Recompression (MVR) technology. This advanced system replaces traditional natural gas-based steam generation with an electrically driven solution that captures, recompresses, and reuses vapours generated during production.

By turning waste vapours into a primary heat source, the system significantly enhances energy efficiency, reducing reliance on fossil fuels while maintaining consistent production output. Operating since the end of 2025, the technology is expected to cut emissions by approximately 13,700 metric tons of CO2 annually.

The initiative also aligns with Cargill’s broader global ambition to reduce operational emissions by 25 percent by 2035, reinforcing the company’s commitment to more sustainable industrial practices.

STRENGTHENING INDUSTRIAL PERFORMANCE

Beyond environmental benefits, the modernisation reinforces the Baupte site’s role as a key industrial hub within Normandy and across Europe.

The facility produces carrageenan, biopolymers, and other texturizing solutions used in a wide range of applications, including dairy desserts, cocoa-based drinks, plant-based alternatives, confectionery, sauces, cosmetics, and pharmaceutical products.

By improving energy efficiency and operational resilience, the upgrade ensures the site can continue supporting food manufacturers in developing and reformulating products that meet evolving consumer expectations for texture, stability, and consistency.

SUPPORTING NATIONAL DECARBONISATION GOALS

The project also reflects France’s wider strategy to accelerate industrial decarbonisation through electrification.

Sébastien Martin, Minister Delegate for Industry, highlighted the initiative as a strong example of how competitiveness and sustainability can go hand in hand.

A LEGACY OF INNOVATION AND GLOBAL IMPACT

Established in 1941, the Baupte site employs around 275 people and exports more than 75 percent of its production worldwide, contributing significantly to both the regional economy and Europe’s food ingredient supply chain.

The facility also hosts a dairy-focused Food Innovation Center that supports product development and provides technical expertise for customers.

As part of Cargill’s global network, the site exemplifies how long-standing industrial operations can evolve through innovation, delivering tangible sustainability outcomes whilst continuing to meet the needs of a growing global market.

The post Cargill Drives Decarbonisation Gains appeared first on Food & Beverage Outlook.

GS1 QR CODES TRANSITION TO EVERYDAY USE  

Tesco has become the first UK supermarket to roll out QR codes powered by GS1 UK (GS1) across an entire product line, replacing traditional linear barcodes on its own-label core sausage range.  

Although shoppers are unlikely to notice any difference at checkout, the change represents a meaningful shift in how product information is handled behind the scenes. By moving beyond trial phases and applying next-generation barcodes to a live product range, Tesco is demonstrating how QR codes powered by GS1 can be integrated into everyday retail operations.  

“We hope this progress encourages others to follow Tesco’s lead so that consumers and businesses alike can benefit from richer, more trusted product information,” she adds.  

This development follows two years of industry testing led by GS1 UK in collaboration with retailers and brand partners. These trials explored how the technology could be used reliably and safely in real retail environments and were presented at the 2026 GS1 Global Forum.  

Tesco’s decision brings those findings into practice, marking a transition from experimentation to full implementation. 

BUILDING ON ESTABLISHED SYSTEMS  

For more than 50 years, linear barcodes have underpinned global retail, enabling consistent product identification, reliable checkout scanning, and efficient supply chain management. That role remains important and continues to function effectively.  

However, demands on product data have evolved. Expectations around transparency, accuracy, and responsiveness have increased, whilst physical packaging space has remained limited. Retailers are now required to manage significantly more detailed information, including expiry dates, batch data, sourcing details, and sustainability credentials.  

QR codes powered by GS1 have been identified as a solution to these challenges. Linked to GS1 identifiers such as Global Trade Item Numbers (GTINs), they enable access to trusted digital information that can be updated in real time whilst still functioning at the checkout.  

Rather than replacing existing barcodes outright, this approach allows the technology to develop in line with changing needs. 

STRENGTHENING OPERATIONAL CAPABILITIES 

The primary benefits of QR codes powered by GS1 lie in their operational impact. By improving the capture of batch and date information, retailers gain better visibility of products in store. This supports more accurate inventory management, improved stock rotation, and a reduction in food waste.  

In the case of product recalls, the technology enables more targeted action. Instead of removing entire product lines, retailers can isolate specific affected batches, reducing disruption whilst maintaining safety and availability.  

On top of these operational advantages, the technology also enhances access to product information for shoppers. As adoption increases, consumers will be able to use their smartphones to access more detailed, up-to-date information without any change to how they shop or pay.  

Over time, this may support the development of additional digital tools to help consumers make informed decisions and manage products more effectively at home. 

MOVING FROM TRIALS TO EVERYDAY USE 

Tesco’s rollout builds directly on insights gained during earlier pilot programmes. 

Over the past two years, GS1 UK has worked with its members to test the performance of QR codes powered by GS1 in real retail settings, ensuring they can be implemented in a way that is reliable, scalable, and interoperable.  

Whist earlier trials addressed questions around feasibility, Tesco’s adoption demonstrates how the technology can operate as part of standard retail processes.  

Speaking at the beginning of the trial, Isabela De Pedro, Supply Chain Development Director for Tesco, highlighted the initial impacts of the rollout that were already having tangible benefits.  

“While it’s still early days, we’re already seeing the benefits of connecting our products to dynamic digital information that will help customers to know more about the products on our shelves.  

“As well as improving the customer experience and unlocking new supply chain value, we are testing how QR codes can help Tesco with issues including traceability, compliance, sustainability, and shelf-edge communication.”   

This type of gradual, collaborative change reflects how developments are typically embedded within the retail sector through testing, validation, and eventual integration into everyday operations. 

IMPLICATIONS FOR THE WIDER INDUSTRY  

Tesco’s move serves as a practical example of how QR codes powered by GS1 can be introduced across a live product range using existing standards and infrastructure. It also reflects a broader industry direction towards improved data, transparency, and digital connectivity.  

For many businesses, the key challenge is not understanding the direction of travel but determining how to prepare effectively as expectations continue to evolve. 

The shift towards QR codes powered by GS1 forms part of a wider, industry-led transition that is already underway. GS1 continues to work with retailers and manufacturers to support adoption in a structured and collaborative way.  

Traditional barcodes will remain in use during this transition period. Tesco’s approach highlights how GS1 standards can adapt to new requirements while maintaining continuity where it is needed. 

The post “A Significant Step Forward for UK Retail”: GS1 UK CEO on Tesco’s Move to QR Codes appeared first on Food & Beverage Outlook.

Regional bottling deal strengthens beverage footprint

Under a new agreement, Carlsberg will become the PepsiCo bottler in Denmark, Finland, Latvia, Estonia and Lithuania from 1 January 2029, taking over production, sale and distribution of the PepsiCo portfolio in those markets.

The move builds on an existing relationship in which Carlsberg has been the PepsiCo bottler in Sweden and Norway for more than 25 years.

Full Nordic coverage and expanded Baltic presence

With the addition of five new markets, the partnership will cover all Nordic markets as well as the Baltic states.

Following the agreement, Carlsberg will have bottling appointments with PepsiCo in 14 markets across Europe, Central Asia and South-East Asia, namely the UK, Ireland, Denmark, Norway, Sweden, Finland, Estonia, Latvia, Lithuania, Switzerland, Kazakhstan, Kyrgyzstan, Cambodia and Laos.

Portfolio strategy and growth opportunities

Carlsberg said the expanded partnership creates new opportunities linked to combining beverage portfolios.

Jacob Aarup-Andersen, CEO of Carlsberg Group, said:

“We’re very pleased that we’ll become the sole PepsiCo bottler in the Nordics and the Baltics. This is an exciting move, solidifying our longstanding strategic partnership with PepsiCo. The growth prospects and value creation opportunities from a business model which combines the Carlsberg and PepsiCo beverage portfolios are truly significant.”

“Carlsberg and PepsiCo have built a strong partnership across multiple markets in Europe and Asia over many years. We’ll now be able to further leverage PepsiCo’s iconic beverage portfolio across markets and, naturally, explore how to further expand our partnership.”

Transition aligned with existing agreements

The new arrangement follows Carlsberg’s current bottling agreements with The Coca-Cola Company in Denmark and Finland, which will run until 31 December 2028.

PepsiCo said the expanded agreement strengthens its long-term partnership with Carlsberg.

Eugene Willemsen, CEO, PepsiCo International Beverages, said:

“We’re pleased to further strengthen our collaboration with Carlsberg by adding five markets in January 2029. The expanded Carlsberg partnership announced today will provide exciting new growth opportunities for both parties.”

The post Carlsberg Expands PepsiCo Bottling Partnership Across Nordics and Baltics appeared first on Food & Beverage Outlook.

Waitrose enters airport retail through Heathrow Terminal 2 partnership

The iconic retailer will launch its products in four RELAY stores in Heathrow Terminal 2, marking a new channel for the brand as it looks to grow beyond its core supermarket and online footprint. The first store is scheduled to open in May 2026, with all four locations due to be operational by the end of the year.

The partnership is with Lagardère Travel Retail, operator of the RELAY brand. Three of the stores will be located airside and one landside.

Targeting high-traffic food-to-go demand in travel retail

The move brings Waitrose into a high-traffic travel environment. Heathrow Terminal 2 serves around 20 million arriving and departing passengers a year, providing access to a large base of time-pressed consumers seeking convenient, ready-to-eat food options.

Each store will offer a range of Waitrose food-to-go products tailored to passengers, including items from the brand’s No. 1 range. The range will include sandwiches, wraps, salads, sushi, snack pots and fresh fruit. Breakfast options such as baked goods, granola, juices and smoothies will also be available, alongside Waitrose meal deals.

The first store, located airside on the upper level, will be open seven days a week from 5am to 10pm.

Supporting Waitrose’s multi-channel growth strategy

The airport expansion forms part of Waitrose’s broader strategy to grow through new locations and channels, alongside continued investment in its own shops and online business.

Charlotte Di Cello, Waitrose Chief Commercial Officer, said:

“Launching at Heathrow marks our first move into airport retail and an important step in growing our brand by bringing our offer to more customers in high-traffic locations. In partnership with Lagardère Travel Retail and RELAY, our food-to-go offer will launch in four stores in Terminal 2 by the end of the year, building on the progress we’re already making in travel retail, alongside continued investment in our own shops and online offer.”

Travel retail partnerships drive food-to-go strategy

For Lagardère Travel Retail, the partnership reflects a focus on enhancing food-to-go propositions within travel environments.

Nicholas Dunne, Commercial Director of Lagardère Travel Retail UK & Ireland, said:

“This partnership with Waitrose marks a significant step in our ambition to elevate the food-to-go experience within our blended Travel Essentials offer. By bringing one of the UK’s most trusted premium food brands to Relay at Heathrow Terminal 2, we are combining quality, convenience and strong brand recognition to better serve passengers in a fast-paced environment. The partnership demonstrates our ability to leverage our cross-business line expertise and partner with leading High Street brands to adapt their offer to the specific needs of travellers.”

Expanding brand reach through new retail formats

The Heathrow launch builds on Waitrose’s existing presence, which includes 320 shops and a strong online business, as well as agreements with brands like Welcome Break and Shell.

The move into airport retail represents a further step in extending the brand into high-footfall, convenience-led environments.

The post Inside Waitrose’s Travel Retail Strategy: Expanding Food-to-Go at Heathrow Airport appeared first on Food & Beverage Outlook.

TACKLING A GROWING WASTE CHALLENGE

The global airline industry is facing a mounting sustainability issue. Cabin and catering operations generate an estimated 3.6 million tonnes of waste annually – a figure projected to reach four million tonnes by the end of 2025.

Without intervention, this could double by 2040 as passenger numbers continue to rise.

A notable share of this waste – between 18 and 20 percent – consists of untouched food and beverages. Due to strict international regulations, much of it is either incinerated or sent to landfill, posing both environmental and operational challenges.

Recognizing the urgency, Airbus has identified in-flight food waste as a key area for improvement, aligning its efforts with the UN 2030 Agenda for Sustainable Development.

FROM CONCEPT TO CABIN

In 2025, Airbus brought its “Smart Catering” concept into real-world testing through a collaboration with Virgin Atlantic. The AI-driven solution was designed to provide a clearer understanding of onboard consumption by automatically capturing data on passenger meal choices and tracking unused items.

Initial trials took place at a ground-based cabin mock-up facility in the UK, where the system demonstrated its ability to operate seamlessly without adding to crew workload.

Following this success, the technology was deployed on live flights, including routes from London to New York on an A330 and London to Orlando on an A350.

These trials validated the system’s capability to deliver accurate, actionable insights under real operating conditions.

ENHANCING THE IN-FLIGHT EXPERIENCE

Beyond waste reduction, Smart Catering introduces tangible improvements to onboard service. Designed for the connected aircraft environment, the solution equips cabin crew with digital tools that streamline operations and elevate passenger engagement.

Features such as interactive galley search, live inventory tracking, and intuitive dietary information eliminate the need for manual reporting.

Crew members can instantly locate food and beverages, identify stock levels, and access nutritional or allergy details, all in real time.

By reducing administrative tasks, the system enables the crew to focus more on delivering a premium passenger experience.

HOW AI POWERS SMART CATERING

At the core of the solution is a camera-based AI recognition system integrated into existing crew devices, such as tablets or smartphones.

As crew members remove meal trays or beverages from trolleys, the device camera captures the action, automatically updating onboard inventory. This process occurs seamlessly within normal service routines, requiring no additional steps.

The system also functions as an intelligent assistant, providing real-time insights into stock availability, item location, and passenger dietary needs.

Crucially, all collected data feeds into a central ‘ground cloud’, enabling fleet-wide analysis. Airlines can then leverage route-specific insights to better match catering supply with actual passenger demand.

DATA-DRIVEN SUSTAINABILITY

The implications of Smart Catering extend beyond operational efficiency. By aligning catering loads more closely with real consumption patterns, airlines can significantly reduce unnecessary uplift.

This data-driven approach has the potential to deliver double-digit reductions in preventable waste, particularly in relation to excess food and beverage provisioning.

For airlines, this represents a dual benefit – lowering environmental impact while optimizing costs and logistics.

LOOKING AHEAD

With successful trials completed, Airbus is now showcasing Smart Catering to the wider industry.

A working prototype will be available for demonstration at the Aircraft Interiors Expo (AIX) in Hamburg from April 14–16, offering airlines the opportunity to experience the solution firsthand.

As sustainability and efficiency become increasingly central to aviation, innovations such as Smart Catering highlight how AI and digital tools can transform even the most routine aspects of airline operations into smarter, more responsible systems.

The post Airbus and Virgin Atlantic : Smart Catering Takes Flight appeared first on Food & Beverage Outlook.

Focus on lower-carbon cocoa production

The two companies have announced a strategic collaboration running from 2025 to 2029 to accelerate climate-smart and regenerative agriculture practices across their shared cocoa supply chain in Ecuador, supporting both businesses’ ambitions to achieve net zero by 2050.

The programme is designed to help reduce the carbon footprint of cocoa production in Ecuador while increasing farm productivity and strengthening grower resilience.

In its first phase, the initiative is expected to support more than 960 farmers across the cocoa-growing regions of El Oro, Esmeraldas, Guayas, Los Ríos, Manabí and Santo Domingo.

Participating farms will implement regenerative agriculture practices across more than 9,000 hectares of farmland.

A central part of the strategy involves transitioning farms from full-sun monoculture to multistrata agroforestry, which Mars and ofi said can:

• Boost cocoa production
• Support microorganisms and pollinators
• Create natural barriers against pests and disease

Farmers will also receive tools and support to adopt:

• Low carbon fertilizers
• Improved crop residue management
• Biochar applications

These interventions are intended to improve soil health, reduce greenhouse gas emissions, increase CO₂ removals and enhance cocoa yields.

Supply chain resilience and farmer support

Mars and ofi said approximately 4,800 people in surrounding cocoa-growing communities are expected to benefit from the programme’s on-farm investments.

Benjamin Guilbert, Global Vice President, Cocoa at Mars, said: “Building on our long-standing collaboration in cocoa sourcing, this effort demonstrates our belief that when companies share common goals, they can deepen cooperation and drive more meaningful impact at scale.”

He added: “We value ofi’s ongoing commitment to helping Mars realize our vision of a more modern, inclusive, and sustainable cocoa ecosystem that can support farmers and the environment.”

Building more resilient livelihoods

Andrew Brooks, Head of Cocoa Sustainability at ofi, said: “Together with Mars, we’re scaling up regenerative practices like agroforestry and biochar in Ecuador aimed at cutting greenhouse-gas emissions and helping to secure the future supply of cocoa.”

He added: “By making these practices more accessible to farmers, we hope to reduce barriers for implementation and costly inputs, while opening new income opportunities that can make a real difference to building more resilient livelihoods.”

Net zero targets shape sourcing strategy

The collaboration builds on more than 15 years of joint sustainable cocoa sourcing globally between Mars and ofi, including 10 years working together in Ecuador.

Both companies said the initiative aligns with their Science Based Targets initiative (SBTi)-validated climate commitments and broader net zero roadmaps.

Pedro Amaral, Associate Director, Head of Cocoa Climate Sustainability at Mars, said: “True progress on climate requires shared ambition and mutually beneficial value.”

He added: “Having Net Zero ambitions validated by SBTi enables a bold framework for Mars and ofi to invest together in the long term in solutions that are good for cocoa farmers, good for the environment, and good for the future of our supply chain.”

Sustainability rises up food supply chain agenda

The announcement reflects growing pressure on food and beverage companies to decarbonise agricultural supply chains while protecting long-term ingredient availability.

The collaboration is intended to drive measurable reductions in greenhouse gas emissions in the cocoa supply chain, while helping secure the long-term future of cocoa production through more sustainable farming practices. https://youtu.be/lpm6RUtRLSU?si=Oge_7O5TvduMXijs

The post Mars and ofi Scale Cocoa Programme to Cut Emissions Across Ecuador Supply Chain appeared first on Food & Beverage Outlook.

Snacking Made Right progress report

The company’s latest Snacking Made Right progress report details how Mondelēz is scaling sustainable sourcing and climate initiatives while embedding sustainability deeper into long-term business resilience planning.

Mondelēz International says it has achieved approximately 100% cocoa volume sourcing for its chocolate business through Cocoa Life, marking a major milestone in the company’s sustainable ingredient sourcing strategy.

The update forms part of the company’s newly released 2025 sustainability progress report, Snacking Made Right, which outlines progress across cocoa sourcing, climate action and packaging innovation.

The Cocoa Life programme now works alongside more than 257,000 registered farmers, with the initiative focused on helping farmers build more profitable businesses and resilient communities while also supporting forest protection and restoration.

It is also a founding member of the TogetherCocoa Foundation, collaborating with governments and other businesses to help accelerate systemic change in the cocoa sector.

Mondelēz outlines future cocoa supply chain strategy

Alongside Cocoa Life’s expansion, Mondelēz is pursuing an enhanced enterprise-wide sourcing strategy for cocoa aimed at modernising the sector and strengthening long-term resilience.

Key priorities include:

• Diversification and innovation through geographic flexibility, large-scale farming and partnerships with food-tech start-ups developing ingredients such as lab-grown cocoa
• Predictive technology investments to improve crop forecasting and supply accuracy
• Modernised smallholder engagement programmes designed to align with changing regulations and consumer expectations
• Climate progress reaches 60% of 2030 emissions target

Mondelēz reported it has now achieved approximately 60% progress toward its 2030 greenhouse gas emissions reduction target, which aims to reduce end-to-end CO2e emissions by 35% against a 2018 baseline.

It exceeded its 2025 water target, achieving an approximately 18% reduction in absolute water usage at priority sites, surpassing its original goal of a 10% reduction.

Packaging innovation supports circular economy ambitions

On packaging, Mondelēz has reached approximately 75% progress toward its 2030 recycled plastic content target.

As part of that work, the company introduced recycled content packaging for Cadbury in Australia, which it said contributes to its commitment to building a more circular economy for plastic.

Mondelēz also joined The 100+ Accelerator, an initiative providing access to eco-entrepreneurs to help scale environmental solutions.

Sustainability remains central to long-term growth strategy

Christine Montenegro McGrath, SVP Chief Impact & Sustainability Officer at Mondelēz International, said: “Focus, innovation and impact at scale have always been at the heart of our sustainability work.

Ever humble, but determined, we remain focused on contributing to the future of more sustainable snacking and delivering sustainable business growth.”

Dirk Van de Put, Chair and Chief Executive Officer of Mondelēz International, added: “Our path forward is grounded in long-term, sustainable business growth – shaping, creating, and accelerating the future of snacking for generations of consumers to come.

We remain focused on innovating with excellence, implementing long-term structural actions intended to enhance business resilience, embedding sustainability into our everyday work and delivering long-term value for our many stakeholders.”

The post Mondelēz Sustainability Strategy Advances as Cocoa Life Reaches Full Sourcing Coverage appeared first on Food & Beverage Outlook.

General Mills advances sustainability goals across food, climate and community impact

The report marks the company’s 56th year of reporting on environmental and social impact and highlights sustainability as part of the Standing for Good pillar of its Accelerate business strategy.

Jeff Harmening, Chairman and CEO of General Mills, said: “For 160 years, we’ve been making food the world loves while ensuring the ‘G’ in our logo stands for Good.”

He added: “Standing for Good is a key element of our enterprise strategy, which aims to drive sustainable growth and long-term value for our stakeholders.”

Regenerative agriculture programme surpasses 800,000 acres

General Mills said it has now engaged more than 800,000 acres in its regenerative agriculture programmes, representing more than three-quarters of the way toward its 2030 commitment.

Harmening said the company continues to invest in landscapes and ecosystems because: “As a food company, General Mills depends on the health and well-being of our planet, so we continue to invest in landscapes and ecosystems to build resilience for nature, climate and communities.”

Emissions reductions and zero waste milestone strengthen climate progress

The company reported a 14% reduction in total value chain greenhouse gas emissions through 2025, alongside a 55% reduction in Scope 1 and 2 emissions compared with its 2020 baseline.

General Mills also announced it has achieved its zero waste to landfill commitment, originally set in 2016, meaning all waste from wholly owned manufacturing facilities globally is now recycled, reused or recovered for energy.

Harmening said: “In 2025, we advanced progress on our planetary commitments, including regenerative agriculture, climate action and recyclable packaging. We also achieved zero-waste-to-landfill at our owned manufacturing facilities globally, further reducing environmental impact.”

Packaging recyclability reaches 95%

As part of its packaging sustainability efforts, General Mills said 95% of its packaging is now recyclable or reusable by weight.

It remains the largest producer of natural and organic packaged food in the U.S., with one in 10 North American products certified organic or made with organic ingredients.

Harmening said: “We proudly have the largest natural and organic food portfolio in the U.S. and are the leading provider of whole grains to Americans.”

The company also noted that 21% of its U.S. retail volume contained a good source of dietary fibre in fiscal 2025.

Food donations exceed $83m globally

Under its People commitments, General Mills said it contributed more than $83 million in food and charitable donations worldwide during fiscal 2025.

The business also said it enabled more than 7.9 billion meals through philanthropic partners.

Additionally, 86% of employees reported General Mills as a great place to work, while 82% said they feel a strong sense of belonging.

Transparency remains central to reporting strategy

Harmening said General Mills remains committed to open reporting on its progress and challenges.

He said: “In our 56th year of reporting social and environmental performance, we remain committed to disclosing our progress, as well as our challenges.”

He added: “I’m energized and inspired by what we have done and remain committed to the strategies in place to continue to provide families with food they love while standing for good.”

The post General Mills CEO Highlights Agriculture and Emissions Progress in 2026 Report appeared first on Food & Beverage Outlook.

MAINTAINING A LEADING EDGE  

Having worked in the UK for 11 years, with eight of those as Managing Director, Mr Hiroaki Yoshimura leaves a strong legacy in the UK and Ireland through an expanded product range, pan-European campaigns such as ‘My Yakult’, and increased consumer awareness of gut health.  

Mr Shinji Yamaguchi’s appointment builds on this momentum whilst bringing a fresh perspective and direction for the UK and Ireland business. 

Yamaguchi brings over three decades of experience within Yakult to his new role. Having begun his career in home deliveries, the bedrock of the company’s direct-to-consumer model, he has since held positions across markets and functions. This includes the US, where he contributed to building the initial Yakult business across sales, logistics, and operations.  

Most recently, he worked within Yakult’s International Business Division in Japan, leading market development plans as well as contributing to strengthening capabilities across the business globally.   

This breadth of experience across start-up environments, cross-functional teams, and international markets gives Yamaguchi the rare combination of frontline understanding and strategic perspective required to help maintain a leading edge in this highly competitive market. 

ENSURING CONTINUED GROWTH 

On his appointment, Yamaguchi says: “Having worked in a number of international markets, I’m excited to now lead the continued growth of Yakult across the UK and Ireland. These are mature markets with strong foundations where Yakult has earned a position of trust through its unmatched expertise in the field of probiotics.  

“My focus is to build on that by making clear, informed decisions that strengthen trust with consumers, customers, and the wider category. It’s particularly encouraging to see the strong awareness of gut health here, not only among consumers but also within the scientific and medical communities who already work closely with our European Research Centre for Microbiology and science team based in the UK.” 

Yamaguchi’s global experience brings the vital skill of linking corporate objectives with local priorities. His appointment comes at a pivotal time for the fast-expanding gut health category, as retailers in the UK and Ireland look to trusted, established brands to deliver long-term value to an increasingly gut-aware consumer base. 

The post Yakult Appoint Shinji Yamaguchi to Managing Director of Yakult UK & Ireland appeared first on Food & Beverage Outlook.

Wellness moves from trend to operational strategy

According to Accor, wellness has moved firmly into the mainstream, with healthiness overtaking affordability as the top eating-related value across generations, while the global health and wellness foods market—already valued at nearly $1 trillion—is projected to continue growing strongly through 2030.

For hospitality operators, that shift is turning wellness dining from a niche offering into a broader business strategy spanning guest experience, supply chain resilience and talent development.

Accor says hotel groups now have an opportunity to move beyond simple menu adjustments and instead integrate wellness more strategically across food and beverage operations.

“We are witnessing a strong evolution in food & beverage consumption worldwide, as people become more and more aware of their feeding patterns’ impact on their health,” said Fabrice Carré, Chief Strategy Officer of Premium, Midscale & Economy Division, Accor.

“To support our owners to embrace this growing and long term trend, our aim is to offer a more inclusive, delicious and healthy F&B offer in every hotel, at every mealtime, by developing No- & Low-alcohol options in our hotels bars and putting more plants at the centre of our plates to reduce animal protein.”

This shift is particularly being driven by Millennials and Gen Z, who increasingly view wellness as a daily personalised practice closely tied to nutrition.

Plant-forward menus become commercial priority

Flexitarian eating habits are helping drive demand for plant-forward menu innovation, with 30% of consumers saying they would switch restaurant brands to find plant-based alternatives to meat and operators are increasingly positioning plant-based and plant-forward dishes as mainstream menu items rather than specialist alternatives.

“Eating well should bring joy, not pressure. At Novotel, we make healthier choices delicious, generous and exciting,” said Jean-Yves Minet, Global Brand President, Novotel.

“Our plant-forward approach is not about restriction – it’s about giving guests food that tastes incredible and makes them feel good.”

Under its Longevity Everyday strategy, Novotel said it plans for at least 25% of menu options across all hotels to be plant-forward by the end of 2026, with 50% of hotels already having achieved that target.

Supply chain resilience linked to sourcing strategy

Beyond consumer demand, Accor said wellness-led food strategies are increasingly tied to procurement and supply chain resilience.

The company pointed to commodity volatility and ecosystem degradation as growing risks for hospitality sourcing teams, noting that cocoa and coffee prices doubled in 2024, rising 163% and 103% respectively due to extreme weather.

Accor argues that operators redesigning menus around plant-forward offerings and more resilient sourcing models are better positioned to manage supply disruption, stabilise costs and maintain trust.

“The evolution of dining habits towards healthier options both for consumers and for the planet clearly demonstrates that sustainability is not a standalone initiative, but an integral part of a robust business strategy,” said Coline Pont, Chief Sustainability Officer at Accor.

“By embedding ambitious commitments such as increasing plant-forward dishes and ensuring responsible sourcing across our F&B, we are not only meeting guest rising expectations, but also future proofing our menus against global challenges, securing supply, and optimising costs.”

Food and beverage’s sustainability footprint under scrutiny

Food and beverage remains one of the most environmentally significant parts of hospitality operations, accounting for:

• 17% of group carbon footprint
• 50% of group water impact
• 80% of group land footprint

To address this, the company’s Good Food Policy includes commitments through 2030 such as increasing plant-forward dishes, serving only responsibly sourced coffee and banning endangered seafood species.

Kitchens become talent and retention platforms

Wellness dining is emerging as a workforce strategy, helping hospitality businesses attract and retain culinary talent by linking kitchen roles to creativity, sustainability and purpose.

To support this shift, Novotel has partnered with the Culinary Institute of America to train chefs on plant-forward cooking techniques.

“Helping our chefs start thinking plant-first is more than just a menu shift – it’s a cultural transformation,” said Victoria Aubry, Global Director of Food & Beverage for Midscale & Economy brands at Accor.

“It represents a real investment in our people, fostering engagement and a sense of shared purpose.”

The post Accor: Why ‘Wellness Dining’ Is Reshaping Food and Beverage Strategy in Hospitality appeared first on Food & Beverage Outlook.

Focus on water security in high-risk regions

The partnership, which began in 2018, is entering its third phase and will run from 2026 to 2028, focusing on wetland restoration and water replenishment projects in China, Nepal and Laos.

Water remains a critical resource for Carlsberg’s production network and wider value chain, with the company positioning freshwater protection as a strategic sustainability priority amid mounting global water stress and biodiversity decline.

According to Carlsberg, nearly two billion people live in areas at risk of severe water scarcity, while 85% of the world’s freshwater species populations have been lost since 1970.

The expanded programme will focus on:

• Restoring degraded wetlands in Nepal
• Launching a new wetland restoration project in Ningxia in China’s Yellow River basin
• Maintaining and monitoring existing restoration projects in China and Laos

The initiative is guided by the WWF Water Risk Filter, an assessment tool used to evaluate water risks across production and supply chains.

Simon Boas Hoffmeyer, VP Sustainability & ESG at Carlsberg Group, said: “Water is one of our most critical resources – both for our production sites and for the communities we are part of.”

He added: “We are working to reduce our water use and, in partnership with WWF Denmark, actively replenish water resources in the areas where the need is greatest.”

Linking sustainability to operational resilience

The programme aims to help return clean water to nature through wetland restoration and nature-based solutions, while supporting local ecosystems and communities.

One indicator of success will be increased local wildlife populations, seen as a marker of healthier freshwater ecosystems.

Julie Hjort, Director of Partnerships at WWF Denmark, said: “Freshwater ecosystems are among the most threatened in the world, and therefore we are very pleased that the Carlsberg Group contributes to restoring unique wetlands in China, Nepal and Laos.”

She added: “The collaboration with Carlsberg Group demonstrates how companies can contribute to nature restoration while also creating value for local communities while at the same time addressing potential value chain challenges.”

Progress toward long-term replenishment targets

Carlsberg said the first two phases of the partnership have already delivered measurable results, including the creation and restoration of wetlands across seven locations near four breweries.

Together, the projects replenished 1.2 million cubic metres of water in 2025, equivalent to 2.4 billion half-litre bottles of water, according to the company.

The projects are now replenishing more than 100% of the water consumed at three Chinese breweries.

When fully implemented, the projects in Nepal, China and Laos are expected to contribute around 40% of Carlsberg Group’s 2032 target of replenishing 100% of water consumption at breweries in high-risk areas.

Water stewardship moves up the business agenda

As climate change, pollution and overuse place increasing pressure on freshwater resources, water stewardship is becoming a more prominent issue for manufacturers with agricultural and industrial supply chains.

For Carlsberg, the latest expansion reflects how environmental restoration is increasingly being tied to operational continuity, resource security and long-term business resilience in sustainability planning.

The post Carlsberg and WWF Denmark Expand Partnership to Strengthen Resilience in Asian Supply Chains appeared first on Food & Beverage Outlook.

INVESTING IN CANADA’S INDUSTRIAL FUTURE

Mars Canada has completed a $180 million (CAD) investment program to modernize manufacturing, accelerate innovation, and strengthen operational resilience across its four Ontario-based facilities.

Spanning 2022 to 2026, the initiative reinforces the company’s enduring presence in Canada, where it has operated for more than a century.

It also brings Mars’ total investment in the country to nearly $400 million since 2015, underlining a sustained commitment to local industry, communities, and economic growth.

Distributed across its Snacking, Pet Nutrition, Food and Nutrition, and Royal Canin divisions, the investment focuses on upgrading infrastructure, improving sustainability performance, and futureproofing production capabilities in line with evolving consumer demand.

TRANSFORMING OPERATIONS AT SCALE

At the heart of the program is a major push towards packaging and production transformation. More than $100 million has been allocated to three large-scale packaging line upgrades designed to enhance efficiency, increase reliability, and unlock new product formats.

These upgrades are not only boosting throughput but also enabling Mars to respond more dynamically to shifting market preferences while maintaining the consistency and quality associated with its globally recognized brands.

Alongside production enhancements, Mars has introduced best-in-class safety systems and operational improvements across all sites, ensuring that workplace modernization remains central to its long-term strategy.

SITE-SPECIFIC IMPACT, NATIONWIDE VALUE

The investment delivers targeted benefits across Mars Canada’s Ontario footprint, with each facility playing a distinct role in driving performance and sustainability gains.

• Bolton – Mars Pet Nutrition: An $86 million investment has increased production capacity for TEMPTATIONS™ products by 50 percent, while reducing water usage by 15 percent and cutting gas and hydro consumption by 13 percent. The site also marks its 40th anniversary, highlighting decades of innovation and community impact.
• Newmarket – Mars Snacking: A $40 million upgrade to packaging lines has driven a 25 percent increase in production capacity. At the same time, electricity usage has been reduced by 40 percent and compressed air consumption by 75 percent, resulting in annual energy savings of approximately 440,487 kilowatt-hours.
• Bolton – Mars Food & Nutrition: With a $17 million investment, the facility has enhanced production lines for brands such as Ben’s Original™, increasing capacity by 8 percent and reducing daily energy usage. The site celebrates its 25th anniversary this year, reflecting a strong legacy of growth and innovation.
• Guelph – Royal Canin: A $39 million modernization program has improved safety and quality standards, while increasing production capacity by 12 percent. Energy efficiency gains include a 12 percent reduction in thermal energy use and an 11 percent reduction in electricity consumption.

Together, these upgrades demonstrate how targeted capital investment can deliver both operational and environmental returns at scale.

SUSTAINABILITY AND EFFICIENCY IN FOCUS

Beyond capacity expansion, the program reflects a clear emphasis on sustainability. Across all sites, Mars has embedded energy efficiency, resource conservation, and emissions reduction into its operational improvements.

From reduced electricity consumption in Newmarket to lower water usage in Bolton and improved thermal efficiency in Guelph, the investment illustrates how manufacturing modernization and environmental responsibility can go hand in hand.

This dual focus aligns with broader industry trends, where manufacturers are increasingly expected to deliver growth while minimizing environmental impact.

EMPOWERING PEOPLE AND COMMUNITIES

Central to Mars Canada’s strategy are its 1,800 Associates across Bolton, Newmarket, and Guelph. The investment not only enhances production capabilities but also creates safer, more advanced workplaces that support employee well-being and productivity.

By strengthening local manufacturing infrastructure, Mars is also contributing to the resilience of Canadian supply chains and supporting regional economic development.

The company’s continued investment reflects confidence in both its workforce and the broader Canadian market, positioning its operations for sustained growth in the years ahead.

A LONG-TERM VISION FOR GROWTH

Mars Canada’s $180 million investment represents more than a series of facility upgrades – it is a strategic commitment to the future of manufacturing in Canada.

By combining innovation, sustainability, and workplace modernization, the company is building a foundation for long-term competitiveness, while ensuring its products continue to meet the needs of consumers and pet owners alike.

As the manufacturing landscape evolves, Mars’ approach offers a clear blueprint: invest in people, embrace technology, and embed sustainability at every level of operations.

In doing so, the company is not only strengthening its own position but also contributing to a more resilient, efficient, and forward-looking manufacturing sector in Canada.

The post Mars Canada Powers Future Manufacturing appeared first on Food & Beverage Outlook.

Focus on labour rights in coffee sourcing

The project, titled “From fair recruitment to worker protection in coffee supply chains,” is designed to support more sustainable and resilient sourcing networks by addressing labour-related risks in three of the world’s key coffee-producing markets.

According to the ILO, the initiative will promote labour rights by identifying and addressing the drivers of decent work deficits across coffee supply chains, particularly among seasonal and migrant workers.

Building on its standard-setting role, the ILO will facilitate dialogue between governments, employers and workers’ organisations to assess labour challenges and help shape targeted country-level interventions.

These interventions will focus on promoting fair recruitment practices and worker protection, while also generating insights to support broader knowledge-sharing across the global coffee sector.

Supporting more sustainable supply chains

Dan Rees, Director of the ILO Priority Action Programme on Decent Work in Supply Chains, said the project aims to improve sustainability by tackling long-standing labour issues within coffee production.

“Coffee production sustains the livelihoods of approximately 20–25 million families worldwide, generating vital income and employment. However, decent work deficits in coffee supply chains persist, particularly among seasonal and migrant workers. Through this project, we aim to advance labour rights and promote decent work and contribute to more sustainable supply chains.”

Nestlé links labour standards to supply chain resilience

Nestlé says the partnership supports its broader sustainability goals for coffee sourcing and is intended to help build more resilient and inclusive coffee value chains.

Antje Shaw, Head of Sustainability for Coffee at Nestlé, said:

“Our partnership with the ILO represents a significant step to advancing and promoting human rights in coffee supply chains. By working together, we can progress faster in creating more resilient and inclusive coffee value chains, where workers are treated with dignity.”

Backed by wider sustainability initiatives

The programme is supported by the Nescafé Plan, Nestlé’s global sustainability programme for the brand.

It will also contribute to the ILO’s Fair Recruitment Initiative, which promotes fair recruitment principles globally, and the ILO’s Safety + Health for All flagship programme, including its Vision Zero Fund, which supports safe and healthy working environments in supply chains.

As sustainability expectations continue to rise across global food and beverage sourcing, the initiative highlights growing industry focus on labour rights as a key component of responsible and resilient supply chain management.

The post Nestlé and the ILO Work to Strengthen Labour Standards in Coffee Supply Chains appeared first on Food & Beverage Outlook.

Long term investment in supplier relationships

Sainsbury’s is expanding its long-term farming partnership model as part of a supply strategy that aims to provide farmers with greater certainty while strengthening resilience across its fresh food supply chain.

The UK retailer says its approach will represent £5 billion of committed investment into UK and Ireland agriculture, supporting more than 2,500 farms by 2027 through multi-year agreements covering fresh produce, dairy, meat and poultry.

Under the model, 3.1 million tonnes of Sainsbury’s own-brand fresh products will come from long-term agreements.

Why Sainsbury’s is investing in long-term supply agreements

Sainsbury’s says the strategy is intended to help address increasing volatility facing the agricultural sector, including climate pressures, rising operating costs and global instability.

Long-term agreements provide farmers with the confidence to invest in their operations, sustainability initiatives and innovation.

The company says that by the end of 2026, 60% of products across fresh produce, dairy, meat, fish and poultry will be covered by agreements lasting more than five years.

A model built over two decades

Sainsbury’s says its long-term partnership strategy has been developing for nearly 20 years.

It began introducing long-term agreements in 2007 with dairy farmers, at a time when rising labour and energy costs were creating pressure across the sector.

The dairy model includes paying farmers a cost-of-production price linked to real-world input costs such as fuel, feed and fertiliser.

Since then, the approach has expanded into eggs, chicken and other fresh food categories.

Long-term contracts now expanding into fresh produce

As part of the latest expansion, Sainsbury’s has extended its long-term partnership model to 62 British berry farms, signing five-year contracts with:

• Angus Soft Fruit
• Chambers
• Soft Fruits Direct
• J.O. Sims
• Dyson Farming

Soft fruit has traditionally relied on short-term seasonal agreements, making the move a significant shift for the category.

The longer-term model is intended to give growers greater security to invest in sustainability and innovation while helping secure the future of British berry production.

Supporting innovation through supplier certainty

Sainsbury’s says its partnership approach is already helping suppliers invest in innovation.

The retailer points to its agreement with Monaghan Mushrooms in the Republic of Ireland, signed in 2025, which enabled Sainsbury’s to become the first UK supermarket to offer conventional mushrooms grown without peat.

The example demonstrates how longer-term agreements can unlock innovation and improve outcomes for customers.

Leadership says certainty is critical for producers

Simon Roberts, Chief Executive of Sainsbury’s, said the retailer’s model is designed to balance affordability for consumers with security for suppliers.

“Good food is something people depend on every day. In uncertain times our focus is on keeping food great value for customers while giving farmers the reassurance and certainty they need to plan ahead.

“We’re proud to lead the way on long term farming partnerships and cost of production models – with some of the longest in UK retail, backed by billions of pounds of committed investment. When farmers know what we’ll buy, at what price and for how long, they can plan, invest and keep producing the great tasting, responsibly sourced British food our customers trust.

“By expanding these long-term agreements across more of our meat, dairy, fruit and veg, we’re backing British and Irish farming for the future and bringing more homegrown food to our customers. This is how we protect quality, value and provenance in an uncertain world and how we help secure the future of good food for all of us.”

Farmers say stability supports long-term resilience

Dairy farmer Charlie Burgoyne of Holmbush Farm, who has supplied Sainsbury’s milk for more than 15 years, said long-term contracts are increasingly important amid mounting industry challenges.

“These are incredibly challenging times for farmers, with the impacts of climate change, rising input costs and global instability creating real uncertainty across the sector. To keep our business resilient, we need the confidence to invest in our future. That’s why long-term partnerships, like the one we have had with Sainsbury’s for many years, are so important and vital to securing the future of the food system and British farming. Multi-year agreements, underpinned by a fair cost-of-production model, give us the stability and confidence we need to plan ahead, invest for the future and sustain our farm for generations to come.”

What Sainsbury’s supply model signals for the wider food industry

As food retailers and suppliers continue to navigate cost pressures, climate disruption and shifting consumer expectations, Sainsbury’s is positioning long-term supplier agreements as a strategic model for protecting food quality, supply chain resilience and domestic sourcing.

The retailer says its approach is aimed at securing “the future of good food” while supporting British and Irish farming through greater investment certainty.

“Long‑term investment in the British farming sector is vital to help secure more homegrown, high‑quality food for families, strengthen supply chains, and support the innovation and sustainability. All this is essential for the future of farming,” said Angela Eagle, Minister for Food Security and Rural Affairs.

“It is great to see Sainsbury’s match our commitment to work with the sector to give farmers the certainty and confidence they need to invest, grow and plan for the future.”

The post Sainsbury’s Long-Term Partnership Supply Model : Why it Matters for Food Producers appeared first on Food & Beverage Outlook.