CASE STUDY
                 Albertsons, Inc
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        Based in Boise, Idaho, Albertsons, Inc. is part of one
        of the world's largest food and drug retailers.  The
        parent company Supervalu operates approximately
2,600 retail stores in 48 states. As a company, Albertsons
recycles more than 50 percent of its waste stream, includ-
ing over 300,000 tons of OCC (cardboard) and over 12 million
pounds of plastics in 2005. A portion of the cardboard recycled
by Albertsons includes boxes with alternative recyclable coatings.
Albertsons has been an industry leader in switching from traditional
non-recyclable wax-coated boxes to recyclable coated packaging options
for a variety of the commodities it purchases and sells. These commodities
include the majority of their produce, case-ready poultry and beef, and other deli
items like salmon, catfish, and chicken.

One of the commodities Albertsons receives in recyclable coated packaging is cut-up poultry.  The
cut-up poultry is received in recyclable packaging year-round and it arrives refrigerated. Albertsons
recently renegotiated its contracts with suppliers so that by the fall of 2006, 100 percent of their
cut-up poultry will be supplied in recyclable  coated boxes.

During the process of switching to recyclable coated boxes, Albertsons had to identify a source for
the recyclable packaging and then conduct a cost-benefit analysis. Initially, the new boxes were
more expensive than wax-coated boxes, but the reduction in waste hauling costs and increased recy-
cling revenue more than offset the additional cost. Trials were conducted to test the stacking, slide,
                 arrival condition, insulation, moisture retention,  storage, and product condition
                      properties of the packaging. Albertsons found the recyclable packaging
                          performed at a level that was comparable to, if not better than, that
                             of the traditional wax-coated boxes.

                                Finally, Albertsons trained its employees to handle the new pack-
                                 aging. Since the new packaging is recyclable, employees only
                                  had to  be trained to identify the new packaging and divert it
                               H  to the  recycling stream instead of the trash.
                                        According to Albertsons, the most difficult part of the transi-
                                        tion was finding a viable, nearly cost-neutral alternative and
                                        convincing the commodity suppliers to change the packag-
                                                                          recyclable coated boxes
                                  in
As more grocers have switched to


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CASE STUDY
Albertsons,  Inc
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                                 for their commodity shipments, the number of options has increased
                                  and the price of these recyclable boxes has decreased.  Now, having
                                  switched portions of their commodities to recyclable coated packag-
                                  ing, Albertsons recycles up to 75 percent of all the corrugated packag-
                                  ing it receives. The increased recycling revenue and decreased waste
                                 hauling fees have resulted in substantial cost savings for Albertsons.
                              If all retailers that receive poultry products switched to recyclable
                           coating packaging similar to that used by Albertsons, an estimated
                        615,000 tons of corrugated material could be recycled annually.
    Albertsons has received numerous awards and recognition for its leadership and innovation in the use of recyclable
    coated packaging, including:
    •  EPA Waste Wise Honorable Mention Award for the Very Large Business Category.
    •  The California Integrated Waste Management Board Waste Reduction Award Program (WRAP) award (seven times),
       WRAP of the Year winner in 2001.
    •  An America's Marketplace Recycles! Award from the International Council of Shopping Centers (ICSC) in partnership
       with the Environmental Protection Agency (EPA), November 2005.
    •  The National Recycling Coalition Innovative New Product or Material Award for 2000.
    •  The National Pollution Prevention Roundtable 2000 Most Valuable Pollution Prvention Award, Second Place.
        United States
        Environmental Protection
        Agency
        1200 Pennsylvania Avenue, NW (5306P)
        Washington, DC 20460

        EPA-530-F-06-031
        November 2006
        www.epa.gov/

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