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Depackaging lifts grocery food diversion by 70% on average, Denali reports

Grocery stores that adopted Denali’s depackaging technology diverted an average of 70% more food from landfill, according to the company’s 2025 Sustainability Report, which also reports 1.35 billion pounds of uneaten food managed across its operations last year.
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Grocery stores that move from manual food separation to Denali’s depackaging technology increase the volume of food diverted from landfill disposal to recycling, according to the company. Denali reports an average increase of 70%, based on data from more than 3,300 U.S. stores in its 2025 Sustainability Report.

Denali, which describes itself as the nation’s largest recycler of food and organics, says its depack programme mechanically separates unsellable food from its packaging. The company says this reduces the need for manual labour and makes food diversion more practical at scale.

“Businesses need a practical and cost-effective way to keep unused food out of landfills and know with confidence what happens after it’s collected,” said Denali CEO Todd Mathes. “Our nationwide direct service capabilities, owned recycling operations and diverse partner network maximize landfill diversion and deliver value to our customers.”

Across its operations, Denali managed 14.8 billion pounds of organic materials in 2025, including 1.35 billion pounds of uneaten food. The company says it served more than 13,000 customer locations across 48 states and Puerto Rico in 2025, recycling 97% of all organics it collected.

From Food to Feed, Fertiliser and Fuel

Denali repurposes high-starch byproducts from food manufacturers, distribution centres, bakeries and grocery stores into nutrient-rich animal feed. In some cases, it collects and transports food directly to farms to feed livestock. The company says it created 479 million pounds of feed last year.

The company also provided more than 15 million pounds of nitrogen to over 500 farmers through its natural fertiliser programme, which it says saved farming partners an estimated $9 million compared with traditional fertilisers in 2025. In addition, Denali converted used cooking oil and grease from restaurants and food service businesses into approximately 12.1 million gallons of biodiesel in 2025.

Denali’s ReCirculate compost is made from unsold food collected from grocery partners and sold on store shelves. Launched in January 2025 in partnership with Walmart, it is now available at 1,000 stores across the U.S., according to the report. Denali estimates that ReCirculate sales over the past year were equivalent to enriching 10,000 home gardens.

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