Cannes Lions

Turning waste into low prices

FAHRENHEIT DDB, Lima / PLAZA VEA / 2023

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Overview

Background

Plaza Vea is the largest chain in the country. Having 110 stores in the national territory and has the promise of providing the lowest prices to all of Peruvians every day.

But the unmeasurable rise in the cost of the crops, bringing the prices down was one of the most complicated tasks during the last year. Not only we had to find the way to lower the prices, but also, we had to help our suppliers find a solution without affecting them economically.

This is where the challenge begins, finding a solution 60% faster. 30% more economical and over all that maintained the quality standards keeping a circular system of 0 waste.

Idea

Turning waste into low prices, is a unique formula based on microorganisms that permits us to obtain a an accelerated fertilizer 73 time faster than the traditional, with more nutrients and without synthetic elements. Together with the Start-up of technological development Cirsys, we began a search of a formula that, based on our organic residues, had the same properties of nitrogen, phosphorous and potassium necessary or the growth of hundreds of agricultural products of the basic nutritional basket. The increased speed of the production of this resource we are getting our farmers to monthly reduce costs in an average of S/. 28,268.33 new soles, with a total of 403 sacs of fertilizer being delivered at the beginning of each month. Turning waste into low prices took an average of 11 months developing and complying with standard of the Production Ministry.

Strategy

The strategy was to generate an inter circular system, with the object of fighting the raise of costs during the harvest For this we took advantage of Plaza Vea’s “0 waste” strategy, that permitted us to have all the elements necessary to create a fertilizer with a high yielding nutritional value. For the development we took advantage of all the organic disposals that generateed each store and together with microoganisms produced by the soldier fly larvae, plus high temperatures, we obtained and accelerated

degradation, giving as a result, batches of fertilizers every 20 days. This circular system permitted us to deliver this fertilizer free to all our suppliers and in this way managed to stop the raise of cost and be able to have lower price for all Peruvian families.

Execution

Turning waste into low prices is a system which allows us to battle the rise of prices through an accelerated fertilizer formula as a main resource for the crops. To obtain it, we used microorganisms of the soldier fly larvae the accelerated the time of degradation in 73% providing the same properties of nitrogen, phosphorous and potassium necessary for the crops o hundreds of agricultural products of the basic family basket.

At present, with the acceleration in the production of this resource, we are achieving that our farmers can reduce their monthly costs in an average of S7.28,268.33 new soles, with a total of 403 batches of fertilizer delivered at the beginning of each month.

Outcome

Projected delivery of 725,00 kg of fertilizer in the first year.

$270 in fertilizer servings in the first year

implemented in 30 stores by 2025

And agreements with over 50% of our agricultural suppliers

Projected prices decrease: 166.80% on average

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