Whole Foods to Turn In-Store Food Waste into a Resource with Mill Tech
Amazon-backed Mill will deploy AI-powered units in Whole Foods to convert food scraps into chicken feed, pioneering a new circular economy model in retail.
Whole Foods to Turn In-Store Food Waste into a Resource with Mill Tech
SEATTLE, WA and SAN BRUNO, CA β December 16, 2025 β In a move poised to redefine sustainability in the grocery sector, Whole Foods Market announced a groundbreaking collaboration with technology firm Mill Industries Inc. to transform in-store food waste into a valuable resource. Backed by an investment from Amazon's Climate Pledge Fund, the initiative will see the deployment of Mill's new commercial-scale recycling infrastructure, turning food scraps directly into a nutrient-rich chicken feed ingredient for the grocer's own suppliers.
Starting in 2027, Whole Foods Market will become the first retailer to deploy Mill Commercial, an automated, on-site system designed to process fruit and vegetable scraps generated in its back-of-house operations. This partnership marks the industry's first implementation of on-site food waste conversion technology, creating a closed-loop system that promises significant environmental and operational benefits.
A New Recipe for Retail: Closing the Loop on Food Waste
The initiative represents a major leap forward in the concept of a circular economy within a retail environment. Instead of being hauled away to landfills or composting facilities, food scraps will be processed where they are generated. The output, a dry, shelf-stable material called "Food Grounds," will then be supplied to farms that provide Whole Foods Market with its private-label eggs. This creates a direct, circular path from store waste back to the supply chain.
"We're excited to collaborate with Mill on its innovative commercial scale technology that will help us reduce food waste and operate more efficiently," said Jason Buechel, CEO of Whole Foods Market. "This first-of-its-kind collaboration enables us to minimize waste while building a more circular supply chain that benefits our customers, communities, and environment."
This effort is a cornerstone of the company's broader commitment to cut its food waste in half by 2030. By transforming what was once a costly waste stream into a productive input, the collaboration sets an ambitious new standard for how the grocery industry can tackle one of its most persistent environmental challenges. Food waste in landfills is a major source of methane, a greenhouse gas far more potent than carbon dioxide, and diverting it is a critical climate mitigation strategy.
The Technology Behind the Transformation
Mill Industries Inc., founded by former Nest executives Matt Rogers and Harry Tannenbaum, is extending the technology from its successful residential food recycler to the commercial sector. The Mill Commercial system uses an advanced dehydration and grinding process to reduce the volume and weight of food scraps by up to 80%. This not only creates a nutrient-dense, odorless output but also dramatically simplifies handling and storage logistics for store employees.
What sets Mill Commercial apart is its integration of artificial intelligence. The system's AI-native technology precisely measures and characterizes the food scraps being processed in real-time. This provides Whole Foods with unprecedented data and insights into its waste streams, enabling smarter inventory decisions and more optimized ordering patterns to prevent waste from occurring in the first place.
"Until now, there has been no advanced technology solution to tackle the problem of food waste at commercial scale," said Matt Rogers, Cofounder and CEO of Mill. "With Mill Commercial, we are combining our innovative hardware with data and insights powered by AI to make it easier to dramatically reduce food waste in the grocery sector and beyond, turning what was 'waste' into a resource we can use."
Crucially, Mill has already navigated significant regulatory hurdles to validate its end product. Earlier this year, the company gained a landmark approval from the Washington State Department of Agriculture to distribute its feed ingredient made from recovered household food. This followed a new ingredient definition approval from the Association of American Feed Control Officials (AAFCO), which provides a national standard and confirms the safety and viability of using processed food scraps as animal feed.
More Than Green: The Business Case for Smarter Waste Management
While the environmental benefits are clear, the partnership is underpinned by a strong business case. The projected 80% reduction in waste volume directly translates to lower transportation and disposal costs, a significant operational expense for any large grocer. By shrinking the volume of wet, heavy food scraps, the system reduces the frequency of waste hauling and the associated carbon emissions.
Furthermore, the AI-driven data analytics offer a powerful tool for operational efficiency. By identifying what is being discarded and when, store and corporate managers can fine-tune purchasing and preparation, reducing over-ordering and minimizing spoilage. This data-first approach to waste management moves beyond simple disposal to proactive prevention.
The creation of a "high-quality, cost-effective feed ingredient" also aims to bring stability to the supply chain. By providing its egg suppliers with a consistent and reliable feed source, Whole Foods can help buffer them from the price volatility often seen in the conventional animal feed market. This stability can ultimately benefit consumers by contributing to more predictable pricing for private-label eggs.
Amazon's Climate Playbook: Strategic Investment in a Circular Future
Amazon's role extends beyond its subsidiary, Whole Foods Market. The investment in Mill comes from its Climate Pledge Fund, a $2 billion venture capital fund dedicated to backing visionary companies whose products and services can help Amazon and other businesses meet the goals of The Climate Pledgeβa commitment to be net-zero carbon by 2040.
The investment in Mill aligns perfectly with the fund's strategy of supporting disruptive, decarbonizing technologies. By preventing food waste from reaching landfills, the Mill system helps avoid methane emissions, directly contributing to climate goals. The partnership also showcases how Amazon leverages its scale and operational footprint to pilot and accelerate the adoption of promising climate tech.
"Utilizing Mill's intelligent, connected, and distributed infrastructure helps customers reduce food waste, scale a more circular supply chain, and achieve greater operational efficiency," commented Thomas Selby, an investor at the Amazon Climate Pledge Fund. "We've been following Mill since inception and are thrilled to invest now to support the development and deployment of their commercial technology at Whole Foods Market and beyond."
This strategic backing provides Mill with the capital to scale its commercial offering while giving Amazon and Whole Foods a leading edge in retail sustainability. The collaboration serves as a powerful example of how corporate venture capital can be deployed not only for financial returns but also to solve complex operational challenges and drive meaningful environmental progress across an entire industry.
π This article is still being updated
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