Walmart and Denali Join Forces to Transform Food Waste into Animal Feed at Over 1,400 Locations
Key Highlights:
- Denali, an organics recycling firm, has formed a partnership with Walmart to collect organic waste from over 1,400 Walmart and Sam’s Club locations. This collaboration aims to enhance Walmart’s recovered organic materials by 60% and decrease its compactor trash by 12%, as stated in a recent announcement.
- The company has initiated the rollout of centralized depackaging facilities in Phoenix, with its new facility operational since 2023 and capable of handling 15 tons of waste per hour, according to city reports.
- This partnership will initially focus on more than 16 markets, including major cities like Houston, Dallas, Philadelphia, and Washington, D.C., with Denali estimating the capacity to produce approximately 500 million pounds of compost, fertilizer, and animal feed each year from the waste collected.
Insights:
While many organics recycling initiatives focus on post-consumer food waste, significant players in the sector regard pre-consumer waste as a valuable and scalable feedstock. Effectively processing and recovering these materials through depackaging is essential, especially as existing composting facilities face challenges with contamination.
In the ongoing quest to tackle food waste, grocery chains are increasingly collaborating with innovative companies like Denali. Competing food retailers are establishing coalitions such as the U.S. Food Waste Pact and the Pacific Coast Food Waste Commitment to share strategies. Walmart, alongside other retailers like Aldi and Whole Foods, is involved in both initiatives. A report released by the PCFWC in April indicated that participating organizations achieved nearly a 25% reduction in food waste tonnage over four years.
The partnership between Walmart and Denali was officially announced in 2023. Walmart aims to cut its food waste by 50% by 2030, aligning with a broader initiative organized by the U.S. EPA to diminish per capita food waste. As of 2022, Walmart reported a 12% reduction compared to its 2016 baseline, successfully diverting over 906 million pounds of food waste globally that year.
Denali’s depackaging process has the potential to divert approximately 200,000 pounds of food waste from landfills at each retail site, according to their reports. The company has collaborated with various grocery stores and food brands across the country, including during the 2023 Super Bowl at its Phoenix facility.
The workflow in Denali’s systems begins with mechanically shredding or crushing organic waste to separate food material from packaging made from diverse materials like cardboard and plastic. This mixture is then screened to isolate inorganic components. The remaining organic material undergoes processing in anaerobic digesters or composting facilities, producing biogas and soil enhancements, as outlined on Denali’s website.
Ilia Kostov, Denali’s Chief Revenue Officer, emphasized the transformative aspect of their depackaging technology, stating, “Denali’s innovative approach is changing how food manufacturers, distributors, retailers, and their communities address food waste reduction. We are thrilled to collaborate with leading retailers like Walmart and Sam’s Club to enact substantial food waste reductions while fostering a circular economy.”
Denali reports that its depackaging facilities can recover around 97% of organic content from waste streams, including expired products, recalled goods, food scraps, and other consumables in both dry and liquid forms.
Looking ahead, Denali anticipates the operation of “at least 40” depackaging facilities by the close of the year, with plans for further expansion throughout 2025.
Maria Sanchez completed her Bachelor’s degree in Plant Sciences from the University of California, Davis, in the USA. Her studies focused on plant genetics and biotechnology, with an emphasis on developing disease-resistant crop varieties. Maria has contributed to several research projects aimed at improving crop resilience to climate change and is now pursuing her Master’s degree in Plant Breeding.