You should lodge a complaint with the HQ of the company. I at one point worked for a large bread supplier (truck delivery) and for legal and commercial reasons we weren't allowed to distribute bread or pastries to friends, family or local charities. We had to throw it all out in large dumpsters. I knew 'piosneers' would do it anyway (which is how I got the job, because JW's are soooo trustworthy and honest). The fact was that JW piosneers would work happily overnight for minimal wage so they could preach during the day and thus they got hired (yours truly included).
Just imagine someone getting sick because the bread had molded or has vermin or insects in it. When I did the delivery I saw cockroaches, ants, wasps, mice would feast on bread and pastries left overnight in some supermarkets. Especially ants are horrible and infestations develop FAST (all it needs is a trail of sugary crums).
Also for tax reasons, companies can't just give away stuff for free (it's really hard to get rid of anything that has ANY value). My take is that they have a rogue delivery driver or a dishonest employee and the elder is talking out of his neck. Also, even if they are on the up-and-up with the company, the KH if they are distributing food as a charity may be required to conform to local health regulations (just as eg. soup kitchens).