Supermarkets in Quito Ecuador

Navigating Food Loss, Waste, and Socio-Economic Dynamics

I. Executive Summary

The emergence and expansion of supermarkets have profoundly reshaped the food retail landscape in Quito, Ecuador, mirroring global trends towards efficiency and convenience. These large-scale retailers, dominated by key players like Corporación La Favorita (Supermaxi, Megamaxi, Akí) and Corporación El Rosado (Mi Comisariato), have centralized food distribution, introduced diverse product offerings, and adopted sophisticated pricing strategies. While contributing to economic development and offering benefits such as variety and streamlined shopping experiences, their growth also presents complex challenges related to market concentration, supplier relationships, and impacts on consumer welfare, particularly for the middle class.

A critical issue within this evolving system is food loss and waste. Ecuador annually loses or wastes approximately 900,000 tons of food, a stark figure given the country's high rates of food insecurity and chronic childhood malnutrition. Supermarkets, as significant nodes in the food supply chain, play a dual role: they are contributors to this waste but also increasingly active participants in its reduction through donations to food banks and nascent sustainability initiatives. The recent "Law to Prevent and Reduce Food Loss and Waste" provides a crucial regulatory framework, though its full implementation and effectiveness hinge on clearer guidelines and stronger incentives.

Furthermore, the concentration of supermarkets in middle-to-high income areas of Quito raises concerns about food access inequality, contributing to "food deserts" in less affluent communities. This disparity exacerbates nutritional challenges and highlights the need for integrated policy approaches that balance market-driven growth with social equity and environmental sustainability. Addressing these multifaceted issues requires collaborative efforts from supermarket chains, policymakers, and civil society organizations to foster a more resilient, equitable, and efficient food system in Quito.

II. The Genesis of Modern Grocery: Supermarkets' Global and Ecuadorian Journey

Global Origins and the Self-Service Revolution

The modern supermarket retail format, as it is known today, first emerged around 1930 in the United States, representing the culmination of nearly two decades of retail innovations in the grocery sector. Its global spread gained significant momentum following extensive worldwide publicity in 1956.¹ Prior to this revolution, food retail was largely characterized by peddlers marketing wares in the streets, transitioning to small corner grocery stores by the 1920s in the U.S. The prevailing business model involved clerks retrieving products from shelves behind a counter, with customers indicating their desired items. Prices were not posted, necessitating a process of haggling and bargaining, often influenced by the customer's social status.¹ This traditional system, established in Europe for millennia, was inherently slow, labor-intensive, and expensive, with an average urban family in the 1920s spending a substantial one-third of its budget on food. Shopping for groceries frequently involved trips to multiple specialty shops—such as a greengrocer, butcher, and bakery—in addition to a general store, reflecting a "long and tortuous food chain".¹

Early attempts to introduce larger, more inexpensive food markets based on economies of scale, like Vincent Astor's Astor Market in 1915, were ahead of their time and ultimately failed to attract a broad customer base.¹ However, the concept of chain grocery stores, exemplified by The Great Atlantic & Pacific Tea Company (A&P) established in 1859, began to rise significantly between 1914 and 1933. These chains rapidly overtook smaller, locally owned stores by emphasizing lower prices—approximately 10% less than neighborhood markets—and promoting a new sense of women's independence and autonomy in the kitchen, a notable shift during the era of women's suffrage.² These chains standardized distribution, streamlined supply chains, and set firm prices, thereby eliminating the traditional practice of haggling and the option of buying on credit. While initially focused on cost savings, these stores later evolved to prioritize service, specifically targeting middle- and upper-class women, to the extent that the terms "consumer" and "women" became synonymous.² Following World War II, larger supermarkets solidified their market dominance, benefiting from more efficient record-keeping, improved relationships with female consumers (who were increasingly entering the workforce), a wider array of goods at more competitive prices, and highly efficient, centralized management and distribution systems.²

The evolution of grocery retail in the United States, characterized by a shift towards efficiency, lower prices, and catering to changing consumer demographics, particularly women's increasing independence, provided a blueprint for global retail innovations. Ecuador's adoption of the self-service supermarket model in the late 1950s, roughly two to three decades after its initial emergence in the U.S., suggests a period of observation and adaptation before the model was localized. Once adopted, the emphasis on "self-service" in Ecuador's pioneering stores directly mirrored the efficiency gains sought in the U.S., indicating that the drivers of this retail transformation—namely, the demand for convenience and cost-effectiveness—were universally appealing. This transition also marked a significant departure from the traditional, socially interactive shopping experience to a more transactional and efficient one.

The Advent of Supermarkets in Ecuador: Pioneering Chains and Early Expansion in Quito

Ecuador's journey into modern grocery retail began with the establishment of its pioneering supermarket chains. Corporación Favorita traces its origins to 1952, starting as 'La Favorita' bodega in the heart of Quito, initially dealing in household items.³ A pivotal moment arrived in 1957 with the inauguration of Supermercados La Favorita in Quito, located at Amazonas and Robles. This marked the country's first self-service establishment, a significant step in transforming the traditional shopping experience.³ Shortly thereafter, in 1958, Corporación El Rosado was founded by Alfredo Czarninski in Guayaquil, opening "Supermercado El Rosado," which also served as a pioneering self-service store in Ecuador and subsequently evolved into the well-known Mi Comisariato chain.⁵

The expansion of Corporación Favorita beyond Quito began in 1979 with the opening of a new store in Policentro Guayaquil.³ A key rebranding occurred in 1983 when Supermercados La Favorita officially changed its commercial name to Supermaxi, a brand that remains highly prominent today.³ The group's strategic diversification in Quito also commenced early, with the launch of the first Maxipan bakery in 1980, followed by the inauguration of Mall El Jardín, its inaugural shopping center, in 1995.³ This expansion into various sectors illustrates that the supermarket business model, underpinned by centralized management and streamlined supply chains, provided a robust foundation for broader retail and urban development.

Corporación Favorita officially transformed into Corporación Favorita C.A. in 2008. Since then, it has significantly expanded its footprint, establishing a presence in six other South American countries. Its operations now encompass a vast network of 200 supermarkets, 300 other commercial outlets, 14 shopping centers, 16 industrial plants, and 10 distribution centers.³ This trajectory underscores that supermarket chains are not merely food retailers but substantial economic actors. Their growth has been deeply intertwined with infrastructure development, the creation of diverse employment opportunities, and the reshaping of urban landscapes through the concentration of commercial activity. This signifies a broader modernization and formalization of the retail sector, moving away from fragmented, specialized local shops towards integrated, large-scale commercial hubs.

III. Quito's Supermarket Landscape: Major Players and Market Influence

Dominant Chains

Ecuador's grocery retail sector is experiencing significant growth, with supermarket sales trending upwards due to their organized format and wider availability of imported products.⁷ Despite this, national statistics indicate that 48% of Ecuadorians continue to purchase their groceries from local stores, highlighting the enduring presence of traditional retail channels.⁷ The market is largely dominated by two major supermarket chains, Corporación La Favorita and Corporación El Rosado, which collectively account for a substantial 60% of total food sales in Ecuador.⁷ Corporación La Favorita operates well-known brands such as Supermaxi and Megamaxi, along with Akí, Gran Akí, and Súper Akí.⁸ Corporación El Rosado, on the other hand, operates Mi Comisariato and Hipermarket.⁸ Other growing chains in the Ecuadorian market include Tiendas Industriales Asociadas (TIA), Mega Santa Maria, and Supermercados Coral.⁷

Quito, as the capital, hosts a significant portion of the country's supermarket infrastructure. As of May 2012, 78 of Ecuador's 390 supermarkets were located in Quito.⁸ Corporación La Favorita maintains an extensive network within the city, with numerous Supermaxi and Megamaxi locations, including Supermaxi Multicentro, 12 de Octubre, América, Carcelén, El Bosque, Plaza Atahualpa, Plaza Norte, Quicentro Shopping, Real Audiencia, San Carlos, San Bartolo, and Granda Centeno, as well as Megamaxi 6 de Diciembre and Wayra.⁹ Gran Akí, another brand under Corporación La Favorita, also has a notable presence in Quito with locations such as Carapungo, Granados, Molineros, San Rafael, Solanda, and Tumbaco.¹² Corporación El Rosado has been expanding its "Mini Mi Comisariato" format, opening its first Mini stores in Quito and Manta in August 2021, and a new location in Quito's Historic Center in August 2023.¹³ However, some Mi Comisariato, Ferrisariato, and Rio Store locations within Quicentro Shopping in Quito were reported closed as of January 2022.¹⁵

Market Presence and Consumer Targeting in Quito

Supermarket chains in Ecuador primarily target middle to high-income consumers.⁷ The post-pandemic period has seen a notable shift in consumer preferences towards supermarkets and hypermarkets, driven by their offerings of convenience, variety, and ongoing promotions that appeal to price-sensitive shoppers.¹⁶ This shift is supported by increasing demand for efficient shopping experiences, facilitated by the expansion of diverse payment options, including credit cards and buy-now-pay-later services.¹⁶ Supermarkets are also increasingly adopting omnichannel strategies, investing in both physical and digital touchpoints to enhance the overall customer experience.¹⁶ Consumer purchase decisions are significantly influenced by the supermarket's image, familiarity with its private brands, the perceived quality of products, and price consciousness.¹⁷

Table 1: Key Supermarket Chains and Their Presence in Quito

Note: Specific location numbers for Quito for all chains are not exhaustively detailed in the provided data, but the presence of major brands is confirmed.

Market Power and Control Over Food Brands and Suppliers

The global supermarket sector has undergone significant expansion and consolidation, resulting in a concentration of market power in the hands of a few dominant retailers. This concentration, coupled with aggressive pricing strategies, has considerably strengthened their control over suppliers.¹⁸ Supermarkets now operate as "global sourcing companies," which has opened new avenues for labor-intensive and resource-intensive exports from lower-cost locations.¹⁸ However, this dynamic often places smallholder farmers at a disadvantage. These farmers frequently struggle to remain competitive due to the necessity of supplying larger volumes per client and transaction, their limited access to economies of scale, insufficient market knowledge, and the stringent private standards and aggressive business practices imposed by large supermarket chains.¹⁸

The substantial investments made by large supermarket chains in logistics and other advanced technologies create formidable barriers to entry for smaller operators who lack the capital to make such significant outlays.¹⁹ In Ecuador, the marketing of private brands has been a notable trend since approximately 2002. These brands serve a dual purpose: they aim to offer quality products at competitive prices, with reported savings ranging from 15% to 35% compared to leading national brands, thereby fostering customer loyalty and leveraging the established prestige of the supermarket chain.¹⁷

Retailers are increasingly asserting greater control over their valuable shelf space, ensuring that every item stocked contributes effectively to sales. This is particularly evident in their prioritization of private label products.²⁰ A discernible shift in consumer behavior is also occurring, with individuals increasingly valuing price and overall value over traditional brand loyalty. This is reflected in a diminished interest in established brands (excluding luxury goods) and a heightened interest in the retailers' own offerings.²⁰ This evolution signifies a notable shift in power dynamics within the consumer packaged goods (CPG) relationship, tilting control more towards the retailer.

The expansion of supermarkets, while undeniably modernizing retail and offering consumers benefits such as variety and convenience, simultaneously contributes to the marginalization of traditional retail channels and small-scale producers. The fact that nearly half of Ecuadorians still rely on local grocery stores ⁷ indicates the persistence of traditional markets, yet the upward trend in supermarket sales suggests a gradual shift. The detailed impact on smallholder farmers, who face challenges in meeting the scale and stringent standards of large chains ¹⁸, reveals a displacement effect. This situation creates a dichotomy where the efficiency gains for consumers might come at the expense of local market diversity and the livelihoods of smaller farmers, potentially leading to a less resilient local food system if not supported by appropriate policies.

Furthermore, the strategic leverage of private labels by supermarkets is a clear manifestation of their growing market power. The substantial savings offered by private labels ¹⁷ and consumers' increasing willingness to switch to them ²⁰ are not merely consumer benefits; they are deliberate strategic moves by supermarkets. By developing their own brands, supermarkets gain greater control over their shelf space and reduce their dependence on national brands, which are experiencing declining consumer interest.²⁰ This directly contributes to the "concentrated market power" observed in the sector.¹⁸ Private labels thus serve as a critical instrument for supermarkets to enhance profitability and control the retail environment. This also implies increased competition for traditional brands and potentially a less diverse range of products from external suppliers if private labels increasingly dominate shelf space, which could, in the long run, limit consumer choice despite initial price advantages.

IV. Supermarkets and the Quito Consumer: Shopping Habits and Economic Realities

Transformation of Food Shopping Experiences

Supermarkets have profoundly transformed the food shopping experience in Quito, offering a blend of enhanced convenience, an expansive variety of products, and continuous promotional activities.¹⁶ The retail sector in Ecuador is currently undergoing a significant transition towards omnichannel strategies, with major chains investing in both physical stores and digital platforms to improve the overall customer journey.¹⁶ This evolution is driven by a growing consumer demand for efficient shopping experiences, which is further supported by the increasing availability of diverse payment options, including credit cards and buy-now-pay-later services.¹⁶ Consumer purchasing decisions are heavily influenced by several factors, including the perceived image of the supermarket, their familiarity with the store's private brands, the perceived quality of the products offered, and their overall price consciousness.¹⁷

Pricing Strategies, Markups, and Publication of Deals

Supermarkets employ a sophisticated array of pricing strategies to attract and retain customers. These include the use of "loss leaders" – deeply discounted items designed to draw customers into the store and encourage larger purchases – and competitive pricing for "known value items" (KVIs), such as eggs or soda, which consumers frequently compare across different retailers.²¹ Pricing is also often structured by category rather than solely by individual item.²¹ For specialty and private-label products, supermarkets may implement premium pricing strategies. Other tactics include "price anchoring," where a higher-priced item is presented alongside a more affordable alternative to make the latter appear more attractive, and time-limited promotions designed to create a sense of urgency.²¹ Psychological pricing, such as setting prices to end in.99,.97, or.95, is also commonly used to create the perception of a deal or bargain.²¹

Furthermore, dynamic pricing is leveraged for seasonal or perishable goods, allowing for flexible adjustments based on supply and demand.²¹ Loyalty programs are a key component, offering targeted discounts and special deals to frequent shoppers.²¹ In Ecuador, private brands have demonstrated their appeal by offering substantial savings, typically ranging from 15% to 35% compared to leading national brands, which significantly appeals to price-conscious consumers.¹⁷ For staple items like potatoes, supermarkets in Ecuador have been found to offer lower prices than traditional retail outlets, even for higher-quality, pre-packaged versions. This is largely attributed to the supermarkets' ability to source large volumes in bulk.²² Many supermarkets in Latin American countries, including Ecuador, also feature specific "sales days," such as "Wednesday sales," where prices for certain items can be significantly reduced, sometimes by as much as 25% for staples like potatoes.²²

While inflation did rise to a review-period high in Ecuador in 2022, its impact was relatively moderate compared to neighboring markets, allowing consumers to maintain their spending momentum.¹⁶ However, concerns have been voiced regarding price speculation in Quito's grocery stores, particularly during periods of crisis, such as the COVID-19 pandemic.²³ For customers who are not enrolled in loyalty programs or do not possess affiliate cards, prices for certain items can be "much more costly," indicating a tiered pricing structure that explicitly rewards customer loyalty.²⁴

Challenges for Middle-Class Consumers: Price Sensitivity and Accessibility

Supermarket chains in Ecuador primarily direct their marketing and product offerings towards middle to high-income consumers.⁷ The rising global incomes are enabling consumers to purchase a greater quantity of high-value and imported foods, including fresh fruits, vegetables, meats, and packaged goods.²⁵ Within this demographic, middle-class consumers are particularly sensitive to price fluctuations and are actively drawn to the promotions and deals offered by supermarkets.¹⁶

An interesting observation from market research indicates that "Every Day Low Prices" (EDLP) strategies, characterized by consistently stable prices across a wide range of products, are often favored in low-income, racially diverse markets. In contrast, "Promotional" (PROMO) pricing strategies, which emphasize deep and frequent discounts on a smaller set of goods, tend to target wealthier consumers.²⁶ This distinction suggests a potential misalignment: if the price-sensitive middle class is predominantly exposed to PROMO strategies, they might not consistently benefit from the most significant or predictable savings. The observation that prices can be "much more costly" for non-affiliated customers ²⁴ further implies that loyalty programs, while offering discounts to enrolled members, simultaneously create a two-tiered pricing system. This system could inadvertently disadvantage segments of the middle class who are less engaged with supermarket loyalty schemes or who, for various reasons, do not participate in these programs. This raises questions about price transparency and equitable access to the best deals.

Beyond pricing, the widespread availability and convenience offered by supermarkets, particularly in processed and pre-packaged goods, appear to influence dietary patterns. Ecuador has witnessed a high consumption of processed foods that are calorie-dense and contain macronutrient and salt levels exceeding international dietary recommendations.²⁷ This suggests that while supermarkets improve shopping efficiency and offer diverse product ranges, their product assortment and marketing strategies, such as promotions on processed foods, might inadvertently contribute to less healthy dietary patterns, even with the availability of fresh produce. This highlights a tension between consumer convenience and public health outcomes, indicating a need for supermarkets to consider their broader role in promoting healthier food choices and potentially re-evaluating the balance of their product offerings and promotional strategies.

V. Food Loss and Waste: A Critical Challenge for Quito's Supermarkets

Scale of Food Loss and Waste in Ecuador: National Context and Implications

Ecuador faces a substantial challenge regarding food loss and waste, with an estimated 900,000 to 930,000 tons of food lost or wasted annually across its supply chain.²⁸ A significant portion of this discarded food remains perfectly safe for human consumption.²⁸ This high volume of waste is particularly concerning in a country where 32.7% of the population experienced moderate to severe food insecurity between 2018 and 2020, representing a nearly threefold increase from the period 2014-2016.²⁸ Furthermore, Ecuador grapples with the second-highest rate of chronic childhood malnutrition in Latin America, affecting 23% of children under five and approximately 27% of children under two.²⁸ Beyond its social implications, food waste is a considerable contributor to greenhouse gas emissions, thereby exacerbating climate change.³²

Sources of Waste within Supermarket Operations

Food waste is a systemic issue that occurs at every stage of the supply chain, from the initial harvest to the point where food reaches consumers.³² While specific, granular data on the waste of prepared ready-to-eat food or bakery items directly within Quito's supermarkets is not explicitly detailed in the available information, the general practice of organizations collecting "excess food from supermarkets and restaurants" for redistribution ³⁵ strongly implies that these categories constitute significant waste streams. Globally, digital platforms like "Too Good To Go" are specifically designed to rescue unsold snacks, takeaway meals, ingredients, baked goods, and whole foods from various retail outlets, highlighting these product types as common sources of food waste within the retail sector.³⁶ This global perspective suggests that similar patterns of waste are likely present in Quito's supermarket operations.

Supermarket Initiatives for Waste Reduction and Upcycling

Supermarket chains in Ecuador are increasingly engaging in waste reduction efforts. Corporación Favorita, for instance, reports that 63% of the waste generated by its supermarkets is recycled.¹¹ The company has also demonstrated a commitment to reducing its broader environmental footprint, achieving a 12% reduction in its carbon footprint between 2019 and 2020.¹¹ Corporación Favorita has set an ambitious target to reduce its emissions by 42% by 2030 and constructs sustainable, eco-efficient buildings that adhere to environmental regulations.¹¹

A significant development in Ecuador's approach to food waste is the "Law to Prevent and Reduce Food Loss and Waste and Reduce the Hunger of People in Vulnerable Situations" (FLW Law), enacted in May 2022. This legislation explicitly prohibits the destruction of food fit for human consumption and establishes a hierarchy of alternative uses, prioritizing donation to food banks, followed by feeding animals, producing renewable energy, and composting.²⁸ The FLW Law notably permits food to be donated past its "maximum consumption date" or "expiration date," which are typically indicators of food quality rather than safety.²⁸ However, further clarity on food safety requirements for such donations is recommended to encourage greater recovery efforts.²⁸

The Banco de Alimentos Quito (BAQ) offers a compelling model for potential supermarket "in-house pantries" or upcycling initiatives. BAQ actively engages in transforming excess products into new, pre-packaged grocery items like salsas and dressings to extend their shelf life.³² This demonstrates a practical approach to minimizing waste and maximizing the utility of surplus food.

Despite the progressive legislation, there remains a practical gap in fully leveraging food waste reduction. Ecuador faces a significant food waste problem alongside high food insecurity.²⁸ While the FLW Law bans the destruction of edible food ²⁸, its regulation was only issued in January 2024.⁴¹ Furthermore, while the law permits donations past quality-based expiration dates, recommendations still call for clearer food safety requirements and increased tax benefits for donations to significantly boost recovery efforts.²⁸ This indicates that while the legal framework is in place, its effective implementation and incentivization are still developing or require further refinement. Supermarkets may face logistical or regulatory hurdles in maximizing donations, particularly concerning liability or clear guidance on date labeling and food safety for donated items. This suggests a need for stronger collaboration between regulators, food banks, and supermarkets to operationalize the law's intent, potentially through pilot programs or clearer guidelines for compliance and incentives.

The query specifically asks about "in-house pantries to up-cycle excess perishables" and "wastage of prepared ready to eat food, bakery items." While information indicates general food rescue from supermarkets ³⁵ and BAQ's upcycling efforts ³², and global apps address prepared food and bakery waste ³⁶, there is no explicit mention of Quito's supermarkets having dedicated in-house upcycling facilities or specific programs for prepared food waste. Corporación Favorita reports general recycling and carbon footprint reduction ³⁸, but not specific food upcycling initiatives within their stores. This points to a significant, largely untapped area where Quito's supermarkets could enhance their sustainability efforts beyond traditional recycling and donations. Implementing dedicated in-house programs for upcycling perishables into new products or systematically managing prepared food and bakery waste (e.g., through discounted sales via apps, or direct processing into new products) could unlock substantial environmental and economic benefits. Such initiatives would align with circular economy principles and could significantly differentiate leading supermarkets in their sustainability commitments.

VI. Corporate Responsibility: Food Donations and Community Engagement

Partnerships with Food Banks in Quito

Food banks play a pivotal role in addressing hunger and malnutrition by rescuing surplus food and distributing it to vulnerable populations. In Quito, the Banco de Alimentos Quito (BAQ) stands as a crucial organization in this effort, operating a certified management system that ensures the traceability of donated food.³⁰ BAQ's comprehensive food management system relies heavily on the involvement of various stakeholders, including private food and non-food companies, social organizations, educational institutions, international agencies, public companies, collectives, and dedicated volunteers. BAQ actively positions itself as a strategic ally for corporate social responsibility (CSR) initiatives, serving as "the bridge between food abundance and scarcity".³⁰

Major supermarket chains in Quito have established partnerships with BAQ. Corporación Favorita and Supermercados Santa María, for example, have been recognized as significant contributors to BAQ since 2003.¹¹ Other corporate partners mentioned include Pronaca and Parmalat.⁴⁴ Since its inception in 2003, BAQ has made a substantial impact, distributing over 555,552 kilograms of food and serving 161,962 meals as of 2024.³⁰ BAQ also runs a specific program, REAGROBAQ, which collaborates with smallholder farmers to prevent food waste at the production level, effectively connecting food that would otherwise be discarded with beneficiaries.³² While primarily based in Guayaquil, the Diakonia food bank also contributes to national food security efforts, distributing approximately 150 tons of food monthly to some 50,000 people through partnerships with 180 non-profit groups.⁴⁵ Another organization, Fundación Jonathan, operates a food bank in Quito, forming alliances with companies, supermarkets, and private donors. They report distributing over 8,000 food rations and 700 food and hygiene kits monthly, benefiting 700 families.⁴⁶

Impact of Food Recovery and Redistribution on Food Insecurity

The efforts of food banks and their supermarket partners in recovering and redistributing food have a profound dual impact. Firstly, they directly address the pressing issue of food insecurity by providing nutritious food to vulnerable populations. Secondly, this redirection of food from landfills significantly mitigates greenhouse gas emissions, with global estimates suggesting a reduction of approximately 12.39 billion kg of CO2-eq annually.³² Food banks are widely recognized for offering a "unique green solution" that tackles both hunger and environmental concerns.³² These food recovery efforts directly confront the paradox of substantial food waste coexisting with high rates of food insecurity and chronic childhood malnutrition in Ecuador.²⁸

Broader Community Support and Corporate Social Responsibility (CSR) Initiatives

Beyond food donations, major supermarket chains in Ecuador are increasingly engaging in broader corporate social responsibility initiatives. Corporación Favorita, for instance, established Fundación Favorita in 2021. This foundation is dedicated to leading activities in critical areas such as education, nutrition, entrepreneurship, equity, and environmental sustainability, building upon the Corporation's extensive 70 years of work.³ Corporación Favorita consistently emphasizes its commitment to sustainability, the well-being of its employees, fostering innovation, and contributing to the overall development of the country. The company regularly publishes comprehensive sustainability reports that detail its economic, social, and environmental performance, demonstrating a commitment to transparency.³⁹

Similarly, Corporación El Rosado has demonstrated a strong commitment to sustainability and climate resilience. Their initiatives include the adoption of renewable energy sources and the promotion of returnable packaging in their "Mini Mi Comisariato" stores. These efforts have earned them recognition for their sustainability performance.⁴⁹ The broader framework for CSR in Ecuador is supported by organizations like the Ecuadorian Corporation for Social Responsibility & Sustainability (CERES), which acknowledges companies for their social responsibility, as exemplified by the recognition awarded to Corporación Quiport.⁵²

The role of supermarkets has evolved significantly from purely commercial entities focused on efficiency and low prices to increasingly active social actors. This transformation, particularly evident in major chains like Corporación Favorita and El Rosado, involves establishing dedicated foundations, publishing detailed sustainability reports, and forming partnerships with food banks. This evolution suggests a growing recognition that their scale and reach confer a broader societal obligation, driven partly by external pressures, such as the FLW Law, and partly by internal corporate values. This shift signifies a strategic integration of social responsibility into their core business models, influencing their public image and potentially attracting consumers who prioritize socially conscious businesses.

Furthermore, a symbiotic relationship exists between supermarkets and food banks. Food banks like BAQ are essential for addressing the dual challenges of food waste and hunger.³⁰ The explicit recognition of supermarkets like Corporación Favorita and Supermercados Santa María as major contributors to BAQ ¹¹, coupled with the incentives provided by the FLW Law ²⁸, underscores a mutually beneficial arrangement. Supermarkets can ethically and legally manage their surplus food, reduce waste, and fulfill their CSR commitments, while food banks gain access to large volumes of edible food for distribution to vulnerable populations. The ability of food banks to upcycle donated food further enhances the value of this surplus.³² The success of food waste reduction and hunger mitigation efforts in Quito is thus heavily reliant on robust, well-regulated partnerships between the retail sector and these non-profit organizations. Any policy changes affecting food donation, such as adjustments to tax incentives or clarifications on food safety guidelines, would directly impact the effectiveness of both supermarket CSR initiatives and food bank operations, making sustained policy support vital for these collaborations.

VII. Addressing Food Access Inequality: Food Deserts in Quito

Defining Food Deserts and Their Relevance to Quito

The concept of "food deserts," characterized by a lack of access to affordable and nutritious food, particularly in less affluent communities, is highly relevant to Quito. Academic studies conducted in the city explicitly aim to "Determine the food accessibility and presence of food deserts in Quito as a contextual factor of child malnutrition".⁵⁴ This direct linkage confirms that food deserts are a recognized issue in Quito and are understood to have a direct bearing on critical public health outcomes, especially among children. These studies adopt a multi-faceted approach, investigating the "causal, contextual, and enabling factors in urban child malnutrition in Quito," highlighting the complex interplay of various socio-economic and environmental elements.⁵⁴

Analysis of Food Accessibility in Less Affluent Communities

The distribution and targeting strategies of supermarkets contribute to disparities in food access. Supermarket chains in Ecuador primarily target middle to high-income consumers.⁷ Research indicates that individuals from poorer backgrounds in Ecuador are less likely to be influenced by nutritional labeling, such as the Nutritional Traffic Light (NTL) system, when purchasing processed foods, compared to their non-poor counterparts.²⁷ This observation suggests that less affluent populations may exhibit different shopping behaviors, potentially due to limited access to supermarkets where such labels are prevalent, or because their purchasing decisions prioritize price over detailed nutritional information.

The fact that 48% of Ecuadorians still purchase groceries from local grocery stores ⁷ suggests a continued reliance on traditional, often smaller, retail formats in less affluent areas, where supermarkets may be scarce. The COVID-19 pandemic starkly exposed vulnerabilities in food access; during the pandemic, "only supermarkets were able to sell produce, whereas, before the pandemic hit, producers could sell their food at fairs and marketplaces".²⁹ This situation implies that disruptions to traditional markets could severely impact food access in communities not adequately served by supermarkets. Furthermore, studies on the contamination of street food in Ecuador, revealing that 8 out of 10 samples from major cities (including Quito) contained bacterial or heavy metal contamination ⁵⁶, indirectly point to a potential reliance on informal food sources in areas where formal, regulated retail options might be either scarce or unaffordable. While Ecuador's FLW Law prioritizes "rural zones with greater presence of people in situations of food vulnerability" for planning and coordination with recipient organizations ⁴², this also implicitly acknowledges that urban disparities in food vulnerability exist and require attention.

The socioeconomic divide in food access and its health implications are clearly evident in Quito. The direct mention of studies on "food deserts" linked to "child malnutrition" ⁵⁴, coupled with the observation that supermarkets primarily target middle-to-high income consumers ⁷ and that poorer individuals are less influenced by nutritional labeling ²⁷, paints a clear picture. Less affluent communities in Quito likely face poorer access to diverse and nutritious food options, potentially relying on informal markets or a limited selection of local stores. The potential contamination of street food ⁵⁶ further highlights the health risks associated with limited access to formal, regulated food retail. The uneven distribution of supermarkets, driven by their target demographic, thus contributes to the creation or perpetuation of food deserts in Quito. This has direct and severe public health consequences, particularly for vulnerable populations like children, leading to malnutrition and potential exposure to unsafe food. Addressing food deserts requires more than simply constructing new supermarkets; it necessitates a holistic approach to food system planning that considers affordability, variety, and safety in underserved areas, potentially through public-private partnerships or robust support for local, healthy food initiatives.

The COVID-19 pandemic served as a critical stress test for Quito's food system, revealing significant vulnerabilities in food access. The observation that "only supermarkets were able to sell produce" during the pandemic, while traditional markets were disrupted ²⁹, indicates that communities without easy access to supermarkets (i.e., those in food deserts) would have faced severe food shortages. This situation underscores a dangerous reliance on a single, formal retail channel during emergencies, a channel that is not universally accessible. The pandemic thus highlighted the need for diverse and resilient food access points, beyond just supermarkets, to ensure food security for all segments of the population, especially during times of crisis. Policy efforts should therefore focus on strengthening local food systems and supporting diverse retail formats in vulnerable areas.

Table 2: Food Insecurity and Malnutrition Statistics in Ecuador

VIII. Regulatory Framework: Government's Role in Food Systems

The Law to Prevent and Reduce Food Loss and Waste (FLW Law) in Ecuador

Ecuador has taken significant legislative steps to address food waste and insecurity. In May 2022, the country enacted the "Law to Prevent and Reduce Food Loss and Waste and Reduce the Hunger of People in Vulnerable Situations" (Ley Para Prevenir y Reducir la Pérdida y el Desperdicio de Alimentos y Mitigar el Hambre de las Personas en Situación de Vulnerabilidad Alimentaria).²⁸ A cornerstone of this law is the explicit prohibition of destroying food that is fit for human consumption.²⁸ To guide the handling of surplus food, the law establishes a clear hierarchy of alternative uses, prioritizing donation to food banks, followed by feeding animals, producing renewable energy, and composting.²⁸

While the law was passed in 2022, its operational framework was solidified with the issuance of its regulation via Executive Decree No. 120 by the President in January 2024, nearly two years after the law's enactment.⁴¹ The FLW Law includes provisions that facilitate donations, such as permitting food to be donated past its "maximum consumption date" or "expiration date," which are typically indicators of food quality rather than safety.²⁸ For donated products, the law allows for the suppression of brand marks by prior agreement between parties, provided that the label clearly retains information on ingredients, expiration date, and manufacturer.⁴² Additionally, recipient organizations are exceptionally permitted to commercialize donated perishable or processed products for self-sustenance purposes.⁴² Critically, the law empowers local autonomous decentralized governments (GADs) to create tax incentives for recipient organizations, facilitators, and donors, within their respective competencies.⁴² It also mandates the prioritization of rural zones with a higher presence of food-vulnerable individuals for planning and coordination with recipient organizations.⁴²

Consumer Protection Regulations and Market Oversight

Beyond food waste, Ecuador maintains a regulatory framework for consumer protection. The Organic Law for Consumer Defense (Ley Orgánica de Defensa del Consumidor), published in July 2000, serves as a foundational piece of legislation.¹¹ This law's primary objective is to govern the relationship between providers and consumers, promoting consumer rights and ensuring equity and legal security in these interactions.⁵⁷ It explicitly prohibits all forms of misleading or abusive advertising that could deceive consumers or otherwise negatively affect their interests.⁵⁸ Providers are legally obligated to furnish consumers with "truthful, sufficient, clear, complete and timely information" about the goods or services offered, thereby enabling informed purchasing decisions.⁵⁸

The State, as per constitutional mandate, is tasked with establishing quality control mechanisms, consumer defense procedures, and provisions for compensation or indemnification for product deficiencies, damages, or poor quality. It is also responsible for sanctioning fraudulent information, deceptive advertising, product adulteration, alteration of weights and measures, and non-compliance with quality standards.⁵⁸ Historically, the regulation of grocery stores was primarily a municipal function until the 1930s, when the introduction of sales taxes led to greater oversight by the state, signaling a shift towards more centralized control.²

Policy Gaps and Opportunities for Enhanced Regulation

Despite the enactment of the FLW Law, certain areas require further refinement to maximize its impact. There is a recognized need for dual date labeling schemes—distinguishing "best by" dates (related to quality) from "use by" dates (related to safety)—to provide clearer guidance for both consumers and businesses, thereby facilitating more donations.²⁸ Further clarification of food safety requirements specifically for food donations is also needed to encourage greater participation from businesses, mitigating concerns about liability.²⁸ Increasing tax benefits for food donations is identified as a measure that could significantly boost the volume of recovered food, providing a stronger incentive for corporate participation.²⁸ The "New Urban Agenda," adopted in Quito during Habitat III in October 2016, provides a broader policy context for sustainable urban development, including goals related to addressing food waste and strengthening urban-rural linkages in food systems.⁵⁹

Ecuador's regulatory framework for food retail has evolved from basic consumer protection to a more comprehensive approach to food system governance. The Consumer Defense Law established fundamental consumer rights, while the more recent FLW Law represents a proactive, systemic effort to address food waste and security, moving beyond mere consumer protection to tackle supply chain inefficiencies and social welfare. The delay in the FLW Law's regulation and the identified needs for further clarity on date labeling and tax incentives indicate that while the legislative intent is progressive, practical implementation requires ongoing refinement and sustained political will. This evolution mirrors a global trend towards more holistic food system governance, signaling a move towards holding retailers more accountable for their societal impact, not just their commercial practices. However, the effectiveness of these laws ultimately depends on clear, actionable regulations, consistent enforcement, and the willingness of businesses to adapt and collaborate. The gap between law enactment and regulation highlights potential bureaucratic hurdles or competing priorities that need to be addressed.

The provision within the FLW Law that explicitly allows local governments (GADs) to create tax incentives for food donation ⁴² presents a significant opportunity for the municipality of Quito to actively promote food waste reduction and donations. Given Quito's status as a major urban center with a substantial supermarket presence, the local government possesses the legal authority to implement such incentives. This decentralized power can effectively complement national legislation by tailoring incentives to specific urban needs and fostering direct engagement with local businesses and food banks. By offering tax breaks or other benefits, the Quito municipality can directly influence supermarket behavior, fostering a more sustainable and equitable food system within the city. This also underscores the importance of local policy initiatives in complementing national legislation, potentially leading to more responsive and effective solutions tailored to Quito's unique context.

IX. Conclusion and Recommendations

Synthesized Insights on Supermarkets' Role in Quito's Food System

Supermarkets in Quito have fundamentally transformed the city's food system, evolving from mere points of sale into complex economic and social actors. Their global origins in the pursuit of efficiency and lower prices have been successfully replicated in Ecuador, with pioneering chains like Corporación La Favorita and Corporación El Rosado not only dominating food retail but also catalyzing broader urban and commercial development. These large retailers offer unparalleled convenience, variety, and competitive pricing, particularly through private labels, which have become a strategic tool to exert market power and influence consumer choices.

However, this modernization comes with inherent challenges. The market power wielded by these chains can disadvantage smallholder farmers and traditional retail channels, potentially reducing local food system diversity. Furthermore, while supermarkets offer deals, their complex pricing strategies, including loyalty programs, might not always uniformly benefit all segments of the middle class, and concerns about price speculation persist. The prevalence of processed foods within these convenient retail environments also raises questions about their indirect contribution to public health challenges related to nutrition.

A critical paradox in Ecuador is the coexistence of significant food loss and waste with high rates of food insecurity and childhood malnutrition. Supermarkets are both part of this problem and a key part of the solution. While they contribute to waste streams, they are increasingly engaging in corporate social responsibility initiatives, notably through partnerships with food banks. The recent FLW Law provides a robust legal framework to curb food waste, yet its full operationalization requires clearer guidelines and stronger incentives. The uneven geographical distribution of supermarkets, primarily targeting affluent areas, exacerbates food access inequality, contributing to "food deserts" in less privileged communities and highlighting a critical gap in equitable food provision.

Recommendations for Supermarket Chains

1. Enhance Food Waste Reduction and Upcycling Initiatives:
   • Implement dedicated in-house upcycling programs: Beyond general recycling, invest in facilities or partnerships to transform excess perishables (e.g., fruits, vegetables) and prepared foods (e.g., bakery items) into new products (e.g., salsas, soups, dried goods). This would reduce waste, create new revenue streams, and align with circular economy principles.
   • Optimize inventory management systems: Leverage advanced analytics to predict demand more accurately, minimizing overstocking of prepared foods and bakery items.
   • Expand discounted sales for nearing-expiry items: Utilize apps or in-store programs (similar to global models) to offer significant discounts on items nearing their "best by" or "expiration" dates, ensuring they are consumed rather than wasted.
2. Promote Equitable Pricing and Accessibility:
   • Review pricing strategies for middle-class consumers: Analyze whether promotional strategies disproportionately benefit wealthier consumers and consider implementing more transparent "Every Day Low Price" (EDLP) approaches on staple goods that are genuinely accessible to a broader middle-class demographic.
   • Increase transparency of loyalty program benefits: Clearly communicate the value proposition of loyalty programs and explore ways to make discounts more accessible to all customers, potentially through simplified enrollment or a tiered system that rewards even infrequent shoppers.
   • Explore expansion into underserved areas: Conduct feasibility studies for opening smaller-format stores or collaborating with local initiatives in identified food deserts within Quito, offering a curated selection of affordable, nutritious foods.
3. Strengthen Supplier Relationships and Local Sourcing:
   • Develop supportive programs for smallholder farmers: Implement fair purchasing practices, provide technical assistance, and offer flexible volume requirements to integrate local smallholder farmers into supermarket supply chains, fostering a more resilient and equitable food system.
   • Increase procurement of local and seasonal produce: Prioritize sourcing from Ecuadorian producers to reduce import reliance, support the local economy, and offer fresher products to consumers.
4. Deepen Corporate Social Responsibility (CSR):
   • Expand partnerships with food banks: Proactively engage with organizations like Banco de Alimentos Quito, streamlining donation processes and providing logistical support to maximize the volume of rescued food.
   • Invest in community-based nutrition education: Partner with local NGOs to offer educational programs that promote healthy eating habits, particularly in communities with high consumption of processed foods.

Recommendations for Policymakers and NGOs

1. Strengthen Regulatory Implementation and Incentives:
   • Issue clear guidelines for FLW Law implementation: Provide detailed, practical guidelines for businesses on food safety requirements for donations, particularly concerning "best by" and "expiration" dates, to reduce confusion and encourage greater participation.
   • Introduce robust tax incentives for food donations: Implement significant tax benefits for supermarkets and other food businesses that donate edible surplus food, making donation a financially attractive option compared to disposal.
   • Mandate dual date labeling: Require food manufacturers to clearly distinguish between "best by" (quality) and "use by" (safety) dates on food products to reduce consumer confusion and prevent premature disposal of edible food.
2. Address Food Deserts and Access Inequality:
   • Conduct comprehensive food desert mapping in Quito: Systematically identify and map food deserts within the city, considering factors such as income levels, transportation access, and availability of nutritious food outlets.
   • Develop targeted interventions for food deserts: Implement policies that incentivize the establishment of healthy food retailers (including smaller format supermarkets or fresh produce markets) in underserved areas. This could include zoning adjustments, financial subsidies, or public-private partnerships.
   • Support diverse food distribution channels: Invest in and promote local farmers' markets, community-supported agriculture (CSA) programs, and mobile food markets in food deserts to diversify access to fresh produce and reduce reliance on single retail formats, especially during crises.
3. Enhance Consumer Protection and Education:
   • Strengthen oversight of pricing practices: Monitor supermarket pricing, particularly during periods of economic instability, to prevent speculation and ensure fair pricing for essential goods.
   • Launch public awareness campaigns on healthy eating: Educate consumers about the nutritional content of processed versus fresh foods and promote healthier dietary choices.
   • Promote consumer literacy on loyalty programs: Provide information to consumers on how to effectively use loyalty programs and understand tiered pricing structures to maximize their benefits.

Future Outlook for Sustainable Food Systems in Quito

The future of Quito's food system hinges on a collaborative and integrated approach that recognizes the multifaceted role of supermarkets. While they will continue to be central to urban food supply, their evolution must prioritize not only commercial success but also social equity and environmental stewardship. The existing regulatory framework, particularly the FLW Law, provides a strong foundation for addressing food waste, but its full potential will only be realized through concerted efforts to clarify implementation, provide meaningful incentives, and foster strong partnerships between government, businesses, and civil society. Addressing food access inequality and mitigating the impact of food deserts will require innovative policy interventions and a willingness from retailers to expand their reach responsibly. Ultimately, a truly sustainable food system in Quito will be one that ensures equitable access to nutritious food for all its citizens, minimizes waste, and supports a resilient and diverse network of producers and distributors.