Under the "friendly" and "earthy" facade, Trader Joe's hides unethical practices - The Wellesley News (2024)

Owned by the German retail company, Aldi Nord, Trader Joe’s is one of the most popular grocery chains in the United States, and it is often viewed with fondness, like a light-hearted, quirky neighborhood farmer that brings you interesting things to eat. But looking beyond that strategically nurtured image and focusing on the company’s impact on society and the planet, some chilling facts rise to the surface that beg us to think twice.

Trader Joe’s was created in the 60s after the founder (and original Trader Joe) Joe Coulombe saw the opportunity to bring exotic, specialty food to the masses. With his Stanford Business degree, he rewrote the recipe for running a successful grocery business. Coulombe’s recipe for success includes innovating products and store-style as well as competitive pricing.

In terms of product and store-style innovation, Trader Joe’s aims for a homey, lovable small business vibe unmatched by big grocery warehouses like Walmart or Sam’s, despite its 505 locations and billions of dollars in revenue. Every price tag at Trader Joes’s is hand-drawn by their artists, meaning there areover one million unique price tags all over the stores. You will find the name of the item and the price in big bubbly letters, but you will also get advice on how to consume it and/or a picture. Next to the products or on the packaging, you can also find words such as “organic,” “green” and “fresh.”

Trader Joe’s further avoids acting like a big corporate grocery conglomerate by creating zany names of the global products and categories — from Trader José (Mexican food) to Trader Jacque’s (French food), to Trader Joe-San (Japanese food), to Trader Ming’s (Chinese food), to Baker Josef’s (flour and bagels), the company doesn’t shy away from having fun with its labels. Trader Joe’s customer service contributes to its unique image, as it specifically hires down-to-earth, talkative and out-going workers who can always strike up a heartwarming conversation.

Surveying each Trader Joe’s store, one can see that most of the fresh fruit and vegetables are unnecessarily packaged into plastic bags or containers. The selection for organic produce is also small, and none of the signs or tags indicate the local farm linked to the product. Due to its lack of quality in the fresh produce section, Trader Joe’s attracts most of its customers with processed items like frozen dinners and snacks. The prevalence of processed food in any supermarket is usually linked to high carbon footprints, as excess packaging and commodity ingredients are often unethically sourced.

The public’s limited information on Trader Joe’s sourcing makes its environmental-friendliness even more dubious. The grocery chain is notoriously secretive about product sourcing. After some difficult digging, “The Eater” found three unethical product producers behind the Trader Joe’s eco-friendly curtains:

  • Bottled smoothies were made by Naked, owned by PepsiCo.
  • Hummus was made by Tribe Mediterranean Foods, owned by Nestlé.
  • Canned corn was supplied by ConAgra.

To put this information in context, a 2006 report by Ceres, a non-profit organization that works to address global climate change and other sustainability issues, entitled “Corporate Governance and Climate Change: Making the Connection,” measures how 100 leading global companies are responding to global warming. Companies in the report were evaluated on a 0 to 100 scale. Nestlé scored a jarring 29 points, PepsiCo a total of nine points, and ConAgra scored a total of four points, the lowest of any of the food companies rated.

Moreover, Trader Joe’s refrigeration is leaking super-pollutant gasses that accelerate the climate crisis. It received the lowest score on the Environmental Investigation Agency’s Climate-Friendly Supermarket Scorecard. In 2016, Trader Joe’s settled with the US EPA and DOJ for violating the Clean Air Act by leaking refrigerants. It is important to note that refrigerants are a major source of climate-damaging emissions. Refrigerant leaks from US supermarkets alone emit 45 million tons of greenhouse gasses every year — the equivalent of 9.5 million cars on the road. But, there’s still no sign that Trader Joe’s has made progress to reduce leak rates or adopt sustainable, climate-friendly refrigerants.

On the labor front, Trader Joe’s received one of the worst scores on Green America’s retailer chocolate scorecard; the company shares very little about what it’s doing to address child labor in its supply chains or rampant deforestation that is caused by the chocolate it profits off. According to Green America, there are over one million children in West Africa experiencing child labor in cocoa growing; 24% of child laborers are exposed to harmful pesticides that jeopardize their health and the environment; cocoa farmers make less than $1 per day.

It is unacceptable for any company profiting off chocolate, including Trader Joe’s, to not have a publicly available plan to end child labor and injustices in the chocolate supply chain. Clearly, Trader Joe’s extremely unethical production, sourcing, maintenance and labor practices are at odds with the company’s eco-friendly, neighborhood market image, encapsulated by cheerful uniforms of Hawaiian shirts.

The evidence above points to a much overlooked fact: Trader Joe’s is a perpetrator of greenwashing. Greenwashing is the practice of using deceptive marketing techniques to persuade consumers that an organization’s products and vision are environmentally-friendly. As an analogy, greenwashing is to corporations as tree hugging is to individuals who say they care about the environment – it’s a symbolic reference that has little actual outcomes.

Whilst some greenwashing is unintentional and results from a lack of knowledge about what sustainability truly is, it is often intentionally carried out through a wide range of business and marketing efforts, as in the case of Trader Joe’s. The common denominator among all greenwashing is that it is not only misleading, but it’s also not helping to further sustainable design or circular economy initiatives. Thus, environmental problems stay the same or more likely, get even worse, as greenwashing often sucks up airtime and misdirects well-intentioned consumers down the wrong path. Wielding greenwashing,Trader Joe’s attracts sustainable-minded buyers, hoping to garner the feel-good mechanism by shopping at a seemingly local, earthy, friendly, environmentally conscious store. Yet, it is actively fooling its customers.

As sustainability-minded shoppers, it is crucial to become aware of Trader Joe’s greenwashed unethical practices, and take necessary action. Here is a list of easy-to-take actions:

Protecting our planet starts with you.

Under the "friendly" and "earthy" facade, Trader Joe's hides unethical practices - The Wellesley News (2024)

FAQs

Is Trader Joes unethical? ›

On the labor front, Trader Joe's received one of the worst scores on Green America's retailer chocolate scorecard; the company shares very little about what it's doing to address child labor in its supply chains or rampant deforestation that is caused by the chocolate it profits off.

Does China own Trader Joe's? ›

Trader Joe's was purchased in 1979 by a German conglomerate, is entirely managed in the US, and has never been resold.

What's bad about Trader Joe's? ›

The crowding at Trader Joe's is oftentimes too much for me

Plus, Trader Joe's is a popular store with fewer locations than many of its competitors — this also adds to a crowded atmosphere. For context, Trader Joe's also has about 560 US locations, and its fellow grocery chain Aldi has more than 2,300 US storefronts.

Is Trader Joe's bad for the environment? ›

In 2022, Climate-Friendly Supermarkets also ranked TJ's as one of the least sustainable stores, in part because the chain doesn't disclose how much pollutant-filled hydrofluorocarbons (HFCs) it produces — gases used to keep foods cold during refrigeration.

What is the controversy with Trader Joe's? ›

The United Food and Commercial Workers (UFCW) union has accused Trader Joe's of “union busting” since Pronto was opened in the company's former wine shop, which closed in 2022 and prompted complaints from the labor group.

What is hidden at Trader Joe's? ›

If you're like us, and you didn't know, Trader Joe's actually hides stuffed animals all around its stores. Once we let that news sink in, we were on a mission to figure out why.

Who owns Aldi and who owns Trader Joe's? ›

Theodor "Theo" Albrecht Jr.

(born 1950) is a German billionaire businessman, the owner of Trader Joe's and Aldi Nord, and the son of Aldi's co-founder. As of July 2021, Albrecht's net worth is estimated at US$20.6 billion.

Does China own Aldi? ›

Aldi (stylised as ALDI) is the common company brand name of two German multinational family-owned discount supermarket chains operating over 12,000 stores in 18 countries.

Who just bought Trader Joe's? ›

As for Aldi Nord (which runs the Aldi locations in countries such as Belgium, France, the Netherlands, Poland, and Spain), it most importantly is the company we can thank for Trader Joe's; Aldi Nord bought the grocer from the original, eponymous Trader Joe himself (Joe Coulombe) in 1979.

What is Trader Joe's being sued over? ›

The Trader Joe's case combined five lawsuits involving 17 law firms. It alleged undisclosed levels of lead, cadmium and arsenic, another heavy metal, in eight dark chocolate bars, citing the Consumer Reports study and "independent laboratory" testing.

Why are Trader Joe's only in rich neighborhoods? ›

Are Whole Foods and Trader Joe's in only upper class towns? No, but they choose their locations with income, population and other data stats. The Return on investment is higher in cities. The rural communities tend to be less open to unusual items.

Why are Trader Joe's employees so happy? ›

Their efforts are fairly compensated, causing employees to feel fulfilled by their hard work. They receive a 20% discount on all store items, access to health benefits, and satisfactory pay in accordance with the amount of time that they have worked at Trader Joe's.

Is Trader Joe's food made in China? ›

Trader Joe's will no longer carry foods imported from China in order to satisfy customer concerns about the quality and safety of the countryâ?? s products.

What does Trader Joe's do with unsold food? ›

Through our Neighborhood Shares program it's been our long-running policy to donate 100% of products that go unsold but are safe for consumption to local food banks & other non-profit food recovery partners.

Why does Trader Joe's have the worst parking lots? ›

But what does that have to do with the parking?' Matt then explained this because when a store is designed, you allocate parking spaces for the size of a store. So, because Trader Joe's stores tend to be relatively small, its parking spaces are limited, making it a nightmare for customers.

Are Trader Joe's employees trained to flirt with customers? ›

In a recent episode on the Inside Trader Joe's podcast, CEO Bryan Palbaum addressed the rumors that employees are trained to flirt with customers and said it's just that – a rumor.

Does Trader Joes treat their employees well? ›

Trader Joe's has an employee rating of 4.1 out of 5 stars, based on 8,677 company reviews on Glassdoor which indicates that most employees have an excellent working experience there.

Is Trader Joe's anti union? ›

While Trader Joe's management did not come out publicly against the Chicago effort, the popular grocery store chain is facing a list of charges alleging anti-union tactics at other locations that have voted to organize.

What is Trader Joe's reputation? ›

Per the intel, Trader Joe's scored a 64 percent popularity rating in the survey, which is actually a point higher than its popularity rating at the end of 2022. Popularity, as defined by YouGov in relation to this data, is the “percent of people who have a positive opinion of a grocery store.”

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