SUPPORTING STATEMENT:

Dear fellow shareholders,

Gestation crates lock pregnant pigs into cages so restrictive that, for months on end, they can’t even turn around. Although this raises both ethical and material concerns, SpartanNash lacks any commitment on the issue. Moreover, despite having apparently already measured gestation crates’ prevalence in its supply chain, it’s keeping those findings secret.

We think this should change.

For context, gestation crates are so controversial, eleven states—including Michigan, SpartanNash’s home state—ban or restrict them (see, for example, CageFreeLaws.com). And other retailers are addressing these solitary confinement cages by moving to group-housed pork:

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Kroger’s on track for “100% of fresh pork from sows in group housing” by 2025.
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Costco announced group housing “beginning in calendar 2023 for all fresh pork and Kirkland Signature cooler items.”
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Amazon “committed to sourcing gestation crate-free pork by 2025 in our grocery Private Brands fresh pork products in North America.”
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Ahold Delhaize “committed to eliminate the use of gestation stalls by 2025” for U.S. brands.
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Target already ensures group housing for “the vast majority” of fresh pork.
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And Sprouts (with nearly 400 stores in 23 states) says that by 2025, all whole and processed meat department pork will be group housed.
Further, SpartanNash’s lack of commitment isn't just incongruous with other retailers, but also with its own animal welfare statements.

SpartanNash’s Animal Welfare Policy says, “We encourage our suppliers to incorporate the Five Freedoms of animal welfare in their supply chain.” But three of those are freedom from discomfort, freedom to express normal behaviors by providing sufficient space, and freedom from fear/distress—all of which are severely hindered by gestation crates.

Finally, consider SpartanNash’s reporting on the topic.
Responding to SASB’s metric about the percent of gestation crates in the supply chain, SpartanNash’s 2021 ESG Report said the data was “being reviewed and assessed for disclosure in the future. ”Then, its 2022 ESG Report said, “We do not disclose this information publicly.”

That secrecy raises additional concerns.

Consider, for example, new data from FMI—a trade group Vice-Chaired by SpartanNash CEO Tony Sarsam. As a 2023 FMI study found, transparency is “extremely important” to the vast majority of shoppers, with 74% of respondents saying that means providing “values-based information such as animal welfare.”

Similarly, a 2023 Merck study found that for 66% of consumers, both animal welfare itself and “transparency in animal proteins” are “extremely or very important.”

Accordingly, we think SpartanNash should disclose the prevalence of gestation crates in the supply chain and targets for moving away from them. And since doing so would align SpartanNash with industry peers that have published such targets, the development of related regulations, and SpartanNash’s own animal welfare statements, we believe shareholder support is clearly warranted.

Thank you.

Filed by the Accountability Board.