The Swiss food company Nestlé S.A. has announced its intention to keep track of its products in the supply chain and to follow them with the help of blockchain technology. The news was published in a press release on July 2.
Blockchain helps with transparency.
The project is jointly pursued through a collaboration with OpenSC. OpenSC is an innovative blockchain platform with which consumers can immediately follow their food back to the farm.
Nestlé claims that – thanks to this pilot program – it will be the first “major food company, announcing it will be testing open blockchain technology in this way.” The collaboration is part of Nestlé’s journey to full transparency.
Founded through a collaboration between WWF-Australia and The Boston Consulting Group Digital Ventures, OpenSC has developed a blockchain platform that gives everyone everywhere access to independently verifiable sustainability and
supply chain data.
The first pilot program will follow milk from farms and producers in New Zealand to the factories and warehouses of the company in the Middle East. Later the technology will be tested with the help of palm oil from North and South America. Thanks to these tests, Nestlé can find out how scalable the system is.
Magdi Batato, Executive Vice President and Head of Operations at Nestlé, spoke about the transparency that Nestlé strives for:
“We want our consumers to make an informed decision about their product choice – to choose products that have been produced responsibly. Open blockchain technology can enable us to share reliable information with consumers in an accessible way.”
Nestlé has been testing blockchain technology since 2017, most prominently at IBM Food Trust. In April, it gave consumers access to blockchain data for the first time, via Mousline puree in France.
“With this open blockchain technology, everyone, anywhere in the world, can review our facts and figures about responsible sources,” said Benjamin Ware, Global Head of Responsible Sourcing at Nestlé S.A.
“We believe this is another important step towards full disclosure of our supply chains that Nestlé announced in February this year, raising the bar for transparency and responsible production worldwide,” Benjamin Ware added.