Close Menu
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing & Mental Health
  • Marketing
  • HR & Recruitment
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
X (Twitter) LinkedIn YouTube
Trending
  • Zen Internet celebrates 30 years – making it the longest standing independent ISP in the UK!
  • Is there a “right” time for staff to take holiday?
  • Tottenham’s Small Business Scene Doubles as Major Events Transform the Area
  • Transforming farming’s whiffy reputation – from manure to energy gold
  • ADHD Awareness Month: Supporting Neurodiverse Talent
  • Stockley’s Moves To New Purpose-Built Facility To Support Ambitious Expansionist Vision
  • BB7 joins CERTANIA to establish UK and Ireland Buildings & Infrastructure platform
  • Rebuilding productivity: How connected data can power British manufacturing
X (Twitter) LinkedIn YouTube
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing
  • Marketing
  • HR & Recruitment
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • Twitter
  • LinkedIn
  • YouTube
  • RSS
You are at:Home»Food and Drink»The importance of sustainability in food and drink supply chains for Hospitality businesses 
The importance of sustainability in food and drink supply chains for Hospitality businesses

The importance of sustainability in food and drink supply chains for Hospitality businesses 

0
Posted By sme-admin on February 6, 2024 Food and Drink

From the mass exodus of skilled staff during the Covid pandemic to more recent geopolitical challenges – which have seen availability of food & drink falter as prices skyrocket by 12.2%, according to the latest Consumer Price Index – 2023 was certainly a difficult year for hotels, cafes and restaurants alike. Nigel Draper, Founder and Managing Director of Sorsco, explores theNigel Draper, Founder and Managing Director of Sorsco, explores the importance of sustainability in food and drink supply chains, and provides insight on how to enhance sustainability within a supply chain.  importance of sustainability in food and drink supply chains, and provides insight on how to enhance sustainability within a supply chain. 

The ongoing cost-of-living crisis, which has seen many consumers reach for more budget-friendly options, has only added insult to injury for the many companies struggling for survival, with increased lead times, inventory management issues and production disruptions all having a part to play in widespread strife. In fact, 3gem research estimates that as many as 86% of UK hospitality operators will have to close within the next three years if they are unable to increase their current revenue, with half of these closures likely to happen within the next year.

“Inflation and rising food costs are affecting the entire supply chain, from suppliers, logistics companies, transportation, the front line such as restaurants, pubs and hotels, and wholesalers like us”, explains Phillip de Ternant, managing director at one of the nation’s largest wholesalers, Creed Foodservice, which is responsible for producing the April 2023 Plates to Profit report . “Combine this with consumers who are also having to review their expenditure – nearly half of operators told us that the number of bookings at their establishment have reduced – [and]the pressure mounts even more”.

Nigel Draper, Founder and Managing Director of Sorsco, experts in supply chain and procurement for the hospitality sector,  explores the importance of sustainability in food and drink supply chains, and provides insight on how to enhance sustainability within a supply chain.

 Sustainability as a resilience strategy

With such shocking statistics as food for thought, it’s clear that companies in the F&D industry must take drastic action if they are to survive and thrive in 2024 and beyond. One such strategy is to invest in a more sustainable supply chain, which will not only introduce significant cost savings through energy reductions and waste-limiting practices, but will also increase the potential for profits by boosting potential customer attraction and loyalty. Indeed, an independent study commissioned by SmartestEnergy recently revealed that 81% of people prefer to buy from sustainable brands, with 70% favouring companies that align with their values, according to World Economic Forum reports – so it literally pays to be green from your final output right down to your initial suppliers.

In fact, sustainability and decarbonisation are now firm priorities for all UK businesses, especially since the COP28 announced a worldwide commitment to transition away from fossil fuels. According to the EPA, over 90% of the greenhouse gasses produced by organisations can be attributed to supply chains, highlighting the need to tackle the problem from the ground up – with the F&D industry standing as no exception. In fact, in its 2015 Global Food System Emissions report, the EDGAR-FOOD database states that food-system emissions equate to 18 Gt of annual CO2 – that’s 34% of all global greenhouse gas emissions. Whilst agriculture and land use contributed the most, all other emissions were produced by supply-chain activities like retail, transport, consumption, fuel production, waste management, industrial processes and packing.

Packing manufacturer, Tetra Pak, has revealed that 24% of food and drink manufacturers, directors and business owners across the UK and Ireland are already on board, firmly believing that sustainability should remain a top priority. Nevertheless, 93% of senior-decision makers are planning to focus on other issues moving forward, highlighting an urgent need to take sustainability in the F&D supply chain more seriously.

Enhancing sustainability in your own food and drink supply chain

The steps to increased sustainability without decreased profit don’t need to be overwhelming. In fact, there are plenty of things hospitality businesses of all sizes can do to ensure their supply chain practices are more sustainable:

1. Consider supplier consolidation

By limiting the number of F&D suppliers you work with to a select few, you can easily reduce your carbon footprint by minimising the number of delivery journeys that need to be made.

Likewise, working with a smaller number of suppliers allows you to be more selective about partner ethics – something you can use to attract more customers in your ESG reporting – with better traceability and sustainability standards becoming possible when it comes to thinks like eco-friendly packaging, ethical production methods and sustainable sourcing. Remember, the more deliberate you can be about each stage in your supply-chain process, the more transparent you can be with your own customers, allowing you to foster a more sustainable future for the planet as you simultaneously stabilise your bottom line.

2.  Local, seasonal sourcing

When it comes to reducing your supply-chain carbon footprint, few actions come close to choosing local, seasonal products. Not only does this support the regional economies that you’re part of, but it also minimises the environmental impact of any long-distance transportation that would otherwise be made to obtain the materials you need.

By prioritising local farmers and produce, you can likewise contribute to a more resilient and sustainable food eco-system overall, allowing you to overcome any persistent problems currently plaguing global supply chains. Take corn, for example. According to a 2023 report titled “Commodity risk is no picnic: how food and beverage supply chains can eat risk for lunch” published by Garner, products like corn – among other common foods like wheat, vegetable oils and dairy – are in short supply due to low global crop yields caused by climate disruptions like drought. In fact, one-third of the world’s corn is currently grown in drought-prone zones across the US, China, South America and Europe, with Spain experiencing a drought emergency across 30% of its agricultural regions this year.

By encouraging more local production and local sourcing, however, you can reduce any disruptions to your own supply chain, stopping any temporary closures or disadvantageous menu changes in their tracks whilst also encouraging greater crop diversity worldwide.

In cases where local sourcing is simply not possible, nearshoring – or choosing the closest vendor country to your borders – may be the next best solution when it comes to reducing your food miles. You might also consider adapting your menus to make them more sustainable, not only in terms of the planet but also in terms of limiting any potential supply-chain disruptions caused by factors that are out of your hands. Working with suppliers via a specialist procurement company can really help with this forward planning.

3. Traceability technology

Consumers are now more conscious of where their food comes from, which means supply-chain transparency is paramount. By investing in technologies that allow you to track the products and partners you work with throughout your supply chain, you can increase your own green accountability, providing more valuable information to your eco-conscious clientele, as well. This not only builds trust but also positions your businesses as a responsible, sustainable player on the market.

When used via blockchain or the internet of things (IoT), for example, enterprise resource planning (ERP) software, transportation management systems (TMS) and warehouse management systems (WMS) can all help to decarbonise your F&D supply chain, as can predictive analytics and many other kinds of sensor-based technologies. Of course, tracking also allows you to anticipate potential disruptions in the supply chain, limiting any financial impact you might otherwise have suffered, as well.

4. Waste not, want not

The Institution of Mechanical Engineers recently issued a report, titled “Global Food: Waste Not, Want Not”, in which it estimates that 50% of all the food produced worldwide is thrown away. This equates to a staggering two billion tonnes of food each year, with the UK throwing away over 30% of its vegetable crops before they are even harvested, given that they fail to meet retailers’ overly exacting physical appearance standards. By making more of a conscious effort to prevent such needless food waste, UK companies could easily cut their supply-chain carbon emissions by more than half – saving themselves a significant amount of money in the process.

It’s not just about reducing natural food waste either. Companies can likewise focus on reducing energy expenditure, water consumption and packaging materials – opting for compostable or recyclable options wherever possible – thus making their current activities more sustainable in terms of both the planet and the economic future.

5. A circular economy

This brings us to our final point: aiming to create a circular economy – whereby as many of the products, materials and resources you use come back to you or your chosen vendors in some way, in order to be reused or recycled. This helps to reduce landfill waste more significantly than any other action and is something that 49% of all CEOs are already looking into, according to Accenture research – highlighting the need to adopt similar practices if you are to keep up with the competition.

A recipe for resilience

Sustainability is the strategic answer to both global warming and the imminent threat of hospitality closures. From supplier consolidation to local sourcing and a circular economy, there are plenty of practices you can adopt to reduce the environmental impact of your F&D supply chain as you simultaneously strengthen your own financial resilience. You might even consider working with intelligent procurement services like Sorsco to help you make more sustainable sourcing and supply-chain decisions, ensuring that the future remains bright for your company, the planet and the people you serve.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Stockley’s Moves To New Purpose-Built Facility To Support Ambitious Expansionist Vision

Leading Allergy Campaigner Supports Call For New Food Allergens To Be Added To Uk’s ‘Top 14’ List

Small Teams, Strong Breaks: The SME Guide to a Better Coffee Point

Comments are closed.

Follow SME Today on Linkedin and share all the topics you find interesting
ISO/IEC 27001 roadmap: A practical guide for UK SMEs
ISO/IEC 27001 roadmap: A practical guide for UK SMEs
Are you a Company Director?
Are you a Company Director - Verify your identity
Personal Pension offer
Events Calendar
    • Marketing
    October 14, 2025

    Do You Need To Look Through ‘The Business Lens’?

    October 10, 2025

    What Does Whatsapp’s Ad Rollout Signal For Social Media And Messaging?

    • Finance
    October 14, 2025

    New energy service aims to lessen strain on SME budgets

    October 8, 2025

    An Online Test For Trying Out An Employee-Ownership Trust

    • People
    October 13, 2025

    Dr. Karim Bahou appointed Head of Innovation at Sister, Manchester’s £1.7bn innovation district

    September 30, 2025

    Allergen Free For The Win: Ceo Of Inclusive Food Brand Announced As Best Business Woman

    • Health & Safety
    September 18, 2025

    Lessons From Grenfell Are Still Being Learned

    September 2, 2025

    1 in 3 employees anxious about lack of first aiders at work

    • Events
    October 10, 2025

    Nominations Now Open for UK’s Top 100 Businesses – EB100 2026

    October 8, 2025

    The Solopreneur Awards 2025: The Audacity Era

    • Community
    September 18, 2025

    ClearCourse appoints new Chair of the Board, Simon Black

    September 18, 2025

    Raising Money Where It’s Needed: Westspring Pledges To Raise £50,000 For Charity

    • Food & Drink
    October 15, 2025

    Stockley’s Moves To New Purpose-Built Facility To Support Ambitious Expansionist Vision

    October 9, 2025

    Leading Allergy Campaigner Supports Call For New Food Allergens To Be Added To Uk’s ‘Top 14’ List

    • Books
    September 3, 2025

    New book on conquering fear of public speaking

    August 7, 2025

    Learning to Leave a Legacy in Business

    The Newsletter

    Join our mailing list for the best SME stories, handpicked and delivered direct to your inbox every two weeks!

    Sign Up
    About

    SME Today is published by the same team who deliver The Great British Expos’. We have been organising various corporate events for the last 10 years, with a strong track record of producing well managed and attended business events across the UK.

    Join Our Mailing List

    Receive the latest news and updates from SMEToday.
    Read our Latest Newsletter:


    Sign Up
    X (Twitter) YouTube LinkedIn
    Categories
    • Books
    • Community & Charity
    • Education and Training
    • Environment
    • Events
    • Features
    • Finance
    • Food and Drink
    • Health & Safety
    • HR & Recruitment
    • In Profile
    • Legal
    • Marketing
    • News
    • People
    • Property & Development
    • Sponsored Content
    • Technology
    • Transport & Tourism
    • Wellbeing & Mental Health
    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Editorial Submission Guidelines
    • Privacy
    • Contact
    Copyright © 2025 SME Today.
    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Editorial Submission Guidelines
    • Privacy
    • Contact

    Type above and press Enter to search. Press Esc to cancel.