Wal-Mart figured prominently in the food news last week. Most people read about the program to sell healthier food over an extended period of time. There was also a study that said people who live near a new Wal-Mart end up heavier.
The two stories are connected on one point: because of the chain's size, Wal-Mart sells a lot of food, and a lot of that food is unhealthy.
Wal-Mart brags about its "always low prices," so when it comes to food, cheap subsidized processed carbohydrates are often cheaper.
The chain is trying to use its power for good, so let's take a deeper look into this new program.
The goal for 2015 is to reduce sodium by 25% and sugar by 10% in products. But even with Wal-Mart's power, the impetus will be on the food companies to deliver, and no penalty if the goals aren't met — in four years.
The self-labeling for nutrition is a wash since the idea is to set a standard before the FDA can do the same, and likely set lamer standards in what will be more confusing to the consumer. And this synopsis is based on what I've already seen in other grocery stores.
Making healthier processed foods more affordable — this is a plus. But any grocery store would be better off making produce cheaper without sacrificing quality.
Increasing charitable support for nutrition programs — again a plus, but not in itself hugely significant.
The idea of putting more Wal-Marts into "food deserts" is the most intriguing one of all. On the surface, the strategy is self-serving in two respects: more Wal-Marts and more of them in major cities, where they haven't always been and are running into problems in establishing locations.
I can speak first-hand with Wal-Mart's efforts in Chicago; Wal-Mart has run into a number of problems getting locations in Chicago.
The Wal-Mart strategy lends itself to the middle of nowhere as opposed to a large city. Traditionally, Wal-Marts come into an area that has established stores, and tries to run those businesses out of town. Large cities have different dynamics, which is why Wal-Mart didn't try that hard to get there for so long.
The other issue with Wal-Marts in food deserts is that building huge spaces doesn't work well in large cities. Wal-Marts thrive on size. Building a 100,000 sq. ft. supercenter is easier to do where land is more plentiful and cheaper.
This program does have the support of First Lady Michelle Obama, who served two years on the board of a Wal-Mart food vendor between 2005 and 2007.
The main issue is that the biggest news would be if Wal-Mart could actually pressure food companies to change their ways. And there isn't any proof that this is true, or might be true. Perhaps in 2015, some of us will have egg on our face, hopefully egg at a lower price. But given Wal-Mart's track record, please don't hold your breath.
Imagine if Wal-Mart announced that it wouldn't carry any products that contained high-fructose corn syrup, and that in one year's time, no product with HFCS will be on their shelves. That would actually be progress.
But notice that there is no penalty behind the Wal-Mart efforts. No penalty even if it doesn't fix its own products.
Wal-Mart has power, but the power only works if there is a chance that the chain won't carry certain products. No stick, no incentive to create change.
We understand the desperation of Michelle Obama wanting to support a corporate effort to try and improve the food supply. But her past ties to Wal-Mart, the slow pace to try and achieve very little progress, the self-serving agenda from the chain, and the lack of penalties make the Wal-Mart program not that good.
The program might nullify the 1.5 pounds per person gained by residents who live near a new Wal-Mart, but not much else.