Kipster’s ‘carbon-neutral’ eggs at Kroger paves the way for possible US franchise expansion
In 2022, Kipster entered into a five-year licensing and franchise agreement with Kroger, allowing the retailer to purchase eggs produced under the Kipster brand from US egg producer MPS Eggs' farms, as part of its Simple Truth line. Kipster retains a fee per egg produced using its patented, sustainable farming system, which emphasizes humane animal-welfare practices and a reduced carbon footprint. The system includes features such as a cage-free, daylit interior with outdoor roaming space, chicken feed made from upcycled pasta grains and rooftop solar panels, according to Kipster Co-founder Ruud Zanders.
Bearing the Simple Truth and Kipster logos, the 12-count cartons are available in Kroger stores and its banners, including City Market, Copps, Fred Meyer, Fry’s, Kings Soopes, Mariano’s, Metro Markets, Pick ‘n Save, QFC, Ralphs, Roundy’s and Smiths across 28 states.
A manual for the company’s proprietary system allows for replicability across the country, Zanders said. The manual accounts for how the chicken coups are constructed and ensuring that the birds live cage-free under natural conditions in a large indoor garden with windows for daylight.
Kipster’s market strategy is based on its cost-plus-pricing system to ensure consistent profitability, regardless of market conditions. This system allows Kipster to set a base price for its eggs based on production costs and adjust the price according to changes in feed prices, Zanders said.
Upcycled grains serve as carbon-neutral feed for birds
Animal welfare is the crux of Kipster’s egg production, which emphasizes nutrient-dense feed with minimal environmental impact, Zanders said. Depending on the country, Kipster develops feed from waste streams from the bakery industry..
“People in the US are eating different … if you compare that with people in northwest Europe or maybe in Asia, we have to look at which waste streams are available and can we make a good feed from it,” he said.
He continued, “It is actually all about grains and corn because most of the products, for example, bread and cookies, are made from grains. In the Netherlands, we have more bread and cookies in our feed. In the US, we have more pasta in our feed because there are more waste products from pasta, and that is actually a very good fit for these birds.”
Zanders emphasized the high carbon impact feed has on animal-based products, and Kipster’s feed results in approximately “a 60% lower carbon footprint per kilogram than traditional feed … so the feed is a very big step in making a carbon neutral system[EC1] .”
In addition to using upcycled feed, renewable energy sources and an efficient farm design, Kipster’s remaining greenhouse gas emissions are offset through credits from Climate Impact Partners. Most recently, the company contributed to efforts in Ghana aimed at reducing emissions from fuel use and preventing deforestation.
Opportunities for expansion
With its system operating in farms around the world, Zanders intends to expand Kipster’s carbon-neutral franchise to more areas in the US, with the potential to expand to other retailers.
“We prefer to grow with Kroger, and if that is not possible, we can have a look at other retailers,” he said.
To get the word out about Kipster’s system, the company partners with NGOs and attends conferences with particular emphasis on animal-welfare in its farms. Kipster’s social media engagement is built around connecting with consumers, Zanders said.
