Main own plant-based brands
Wicked Kitchen range, Tesco (some plant-based products).
- As UK’s largest grocer, with a market share of over 25%, Tesco has significant exposure to animal proteins. 91% of Tesco’s revenues come from food, general merchandising and clothes sales (the company does not split food sales).
- Tesco demonstrates a proactive approach, both towards addressing the risks of animal protein sourcing (through an emissions target on agriculture and a commitment to undertake a scenario analysis on animal proteins as part of their TCFD analysis) as well as by leading the market in creating its own brand of plant-based ready meals. The company has also begun an interesting collaboration on diets with WWF.
- However, the company has not yet developed any strategic plans to transition to a low-carbon protein portfolio (through goals or metrics) despite acknowledging this as a material business issue. It cannot meet its climate targets without a corresponding dietary shift: 60% of its value chain emissions are linked to agriculture, and most of this is generated by livestock. Tesco’s approach remains piecemeal/ad-hoc rather than strategic in terms of ensuring that its exposure to animal proteins is in line with a low-carbon strategy.
- We would encourage the company to continue to broaden its sustainability focus and build a more strategic plan to transition its product portfolio (through, for example, category-based targets) to ensure any exposure to animal proteins is in line with a low-carbon strategy.
At our Capital Markets Day on 18th June we shared with investors the success of our Wicked Kitchen range and our plans to expand our range of plant based products
- Wicked Kitchen is a £26m brand which has sold 9m units
- We will be expanding the Wicked Kitchen range for 32 to 80 lines
- We announced the launch a new Plant Based Own Brand range called ‘Plant Chef’ in September 2019 which will take our range of plant based product to 300 lines and enable us to engage a wider group of customers with the shift to plant based proteins.
- We are also signatories of the Food Foundation’s Peas Please Pledge focused on making it easier for more people to eat more vegetables. Through this we have set out 5 commitments
- We are actively exploring alternative sources of feed to shift away from animal based proteins. For example, we have worked with some of our key Norwegian salmon suppliers to trial the use of fish feed which contains more sustainable ingredients like algal oil. It is estimated that one tonne of algal oil can displace 30-60 tonnes of wild caught fish, so we believe this innovation could be very significant in taking pressure off some stressed fisheries.
- We are also working to reduce the environmental impact of existing feeds. For example, our UK Zero Deforestation Soy Transition Plan sets out how by 2025 we will ensure that all soy used for animal feed for Tesco UK will come from verified zero deforestation areas by 2025. We are starting implementation in our whole chicken supply chain and in 2018 77% of the soy for this category was covered by zero deforestation soy credits.
- As part of our partnership with WWF we have committed to help customers eat more sustainable diets, this will include promoting plant based options https://sustainability.tescoplc.com/sustainability/sourcing/topics/tesco-and-wwf/.
- Information on this initiative can be found at:
- https://sustainability.tescoplc.com/media/476314/little-helps-plan-report-2019_final.pdf pg. 12
- https://www.tescoplc.com/media/754519/tesco-esg-day-26-june-2019.pdf pg. 89