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Kroger announces commitment to source sustainable palm oil

FBR Staff Writer Published 16 April 2013

American retailer The Kroger Co has announced its commitment to source sustainable palm oil by the end of 2015.

In a policy statement, the company said that Palm oil has become the leading oil crop in the world and currently accounts for over one-third of the global vegetable oil production. According to Kroger, which recognized the benefits of using sustainable palm oil in all of its Corporate Brand products, said that it is a developing issue for many of its suppliers.

The company is planning to work with the suppliers in order to improve sustainability in the palm oil production supply chain.

By the end of 2015, Kroger aims to purchase 100% of palm oil from suppliers certified by the Roundtable on Sustainable Palm Oil (RSPO). Kroger noted that it will disclose its progress toward this goal in its annual sustainability report, and continue to support public policy efforts for a moratorium on palm oil expansion in rainforests and peat lands.

Palm oil is widely used in the food industry as cooking oil, shortening, margarine, milk fat replacer, as well as a substitute for cocoa butter. However, it can contribute to deforestation in various parts of the world unless sourced responsibly.

Kroger has 2,424 supermarkets and multi-department stores in 31 states under several local banner names including Kroger, City Market, Dillons, Jay C, Food 4 Less, Fred Meyer , Fry's, King Soopers, QFC, Ralphs and Smith's. The company also operates 786 convenience stores, 328 fine jewelry stores, 1,169 supermarket fuel centers and 37 food processing plants in the US.