Resolved clauseBE IT RESOLVED: Shareholders request that Dollar General disclose what percentage of its eggs come from cage-free hens, the specific steps the company has taken toward implementing its cage-free egg commitment, and what next steps the company will take to reach its goal of sourcing only cage-free eggs by 2025. This disclosure should be made within six months of the 2023 annual meeting at reasonable cost and omitting proprietary information
Supporting statementIn April 2016, Dollar General announced a goal of selling 100% cage-free eggs by 2025, assuring shareholders that it “will work with its suppliers to implement this change” while ensuring “fresh, affordable in-shell eggs continue to be readily available to Dollar General shoppers throughout the country.”
That pledge has remained on the company’s website ever since, yet the company has failed to give any indication of what progress it’s made.
Meanwhile, other major companies with similar commitments are providing their shareholders with these types of details. For example:
• Rite Aid, CVS, Walgreen’s and others recently announced plans to accelerate their conversion to 100% cage-free eggs and reach compliance by the end of 2022, several years ahead of their original timelines.
• Wawa has already achieved 100% cage-free compliance for all cartons of eggs it sells.
• Walmart, Kroger, Albertsons and other retailers are disclosing their percentage of cage-free eggs.
• Costco discloses this data for its global operating regions (and in the U.S., has achieved 94% cage-free eggs).
• Target has published a global “glidepath” benchmarking 75-80% cage-free egg compliance in 2022, 80-85% in 2023, 85-90% in 2024, and 100% in 2025.
• Other companies with similar glidepaths include IHOP, Denny’s, Brinker International, Bloomin Brands, Cracker Barrel, Marriott, Carnival Cruise Lines, Royal Caribbean, Norwegian Cruise Lines, Conagra Brands, and more.
• McDonald’s, which uses roughly 2 billion eggs each year in the U.S., has converted about 74% to cage-free.
• Nestle, Mondelez and other packaged food companies have reached 100% cage-free eggs in the U.S.
This is a prominent ESG issue within the food industry and amongst consumers. So significant is it, in fact, that many states have even outlawed the sale of eggs from caged hens.
But despite Dollar General’s longstanding commitment, it has never reported to shareholders as to progress it’s made toward its goal, what it’s “work with suppliers” on this transition has entailed since 2016, or what next steps it will take.
THEREFORE, BE IT RESOLVED: Shareholders request that Dollar General disclose what percentage of its eggs come from cage-free hens, the specific steps the company has taken toward implementing its cage-free egg commitment, and what next steps the company will take to reach its goal of sourcing only cage-free eggs by 2025. This disclosure should be made within six months of the 2023 annual meeting at reasonable cost and omitting proprietary information.