US grocery giant Kroger states it will no longer source products from Asia Pulp & Paper

By James McLaren, Senior Editor, PPI Pulp & Paper Week, RISI

SAN FRANCISCO, Dec. 27, 2011 (RISI) - US grocery store giant Kroger in a brief, recent statement said it will discontinue sourcing products from Asia Pulp & Paper. It did not detail the specific products impacted or when the policy would be implemented.

"After an independent review, The Kroger Co. and its family of stores have decided to discontinue the sourcing of products from Asia Pulp & Paper. Kroger has informed APP of our concerns about the impact of their business operations on deforestation," the un-dated statement read.

The decision comes amidst an ongoing dispute between APP and Greenpeace over deforestation and habitat destruction in Indonesia. Kroger was earlier targeted by a new coalition in Virginia which is seeking to protect jobs created by APP subsidiary Mercury Paper in the state. The Coalition to Protect Virginia Jobs asked Kroger and Target to reject what it called a "smear campaign" against the company.

Greenpeace estimates that Kroger sold more than $15 million worth of APP tissue products in 2010 alone, according to a report by environmental science and conservation news site Mongabay.

Cincinnati-based Kroger is one of the largest US grocery retailers, with fiscal 2010 sales of $82.2 billion. Supermarket brands include Ralphs, Jay C Food Stores, Dillons, QuickStop and City Market.

Earlier this year, toy retailers Mattel and Hasbro responded to the Greenpeace campaign with new sustainability guidelines for its packaging without naming APP. Hasbro stated it was "requiring that no sources of Mixed Tropical Hardwood (MTH) virgin fiber be used in products, including packaging."

APP has vehemently denied the Greenpeace accusations over forest practices.