Handoffs: Bills of Lading and the Cargo Custody Relay

Handoffs: Bills of Lading and the Cargo Custody Relay

We’re hearing more and more about high-tech ways to track and trace our food as it moves through the supply chain to our plates — from barcodes to blockchains. But the practice of tracking food shipments isn’t new. It has long been a way for shippers to make sure their cargo is safe and secure throughout its voyage.

At each step along the supply chain, anyone who handles a shipment has custody, a specific term that connotes legal responsibility. The chain of custody confirms the identity and quantity of the shipment (e.g., 400 bushels of Italian pears), declares that the pears were continuously controlled and transported by the carrier and identifies everyone who handled the pears throughout the shipment. Having a clear record of this chain makes it possible for the shipper to track any theft or contamination of the cargo on its way to the receiver.

The documentation that authenticates the movement of food between a shipper and a freight carrier is known as a bill of lading. It’s a receipt that confirms the transition of goods from one link in the chain to the next. This document notes the details of the cargo and its intended path to you, including the type and quantity of a shipment. It’s provided at the end of a shipment to verify delivery of the goods shipped and is the basis for payment for the goods at the receiving end of a shipment. Without these bills of lading, neither the farmer nor the exporter gets paid.

Going back to maritime practices — before planes, trains and automobiles got involved — the bill of lading would have been prepared by a merchant to indicate that the shipper was responsible for delivering the items consigned to him. These receipts were originally called “bills of loading” as far back as the Middle Ages, and they listed what a merchant actually loaded onto a ship. It was a sort of contract between a merchant and a shipper that confirmed the receipt and safe transport of a specific cargo list.

Since shippers often lost ships and their cargo at sea, the bills of lading helped account for losses and reparations. Like today’s tracking tools, bills of lading indicate a transfer of responsibility throughout the supply chain. They are legal documents that confirm ownership of the goods and, as such, are assets the shipper can use to secure credit against expenses.

As the bill of lading moves through the supply chain with a shipment of, say, bags of coffee beans on pallets, the legal notion of ownership and custody travels with the chain. But the cargo list and a receipt are only two tools that leave footprints along a supply chain. These days, we need much more data than these documents provide to effectively track food through our chain.

Newer tools include smart labels with barcodes that communicate harvest dates and times. Scans of smart tags indicate precisely when food passes through the supply chain, when a USDA inspector has certified a meat shipment or the temperature of the interior of a shipping container or a tractor trailer. All this data is being gathered as food travels to our plates.

These new tools go far beyond those old bills of lading, but the intention of those bills and the chain of custody remain the same.

Just wait until blockchain technology picks up where bills of lading and custody left off. Then you’ll be able to see the passage of ownership of your carrots all the way from the farmer’s plot to your pot, who handled your carrot and why, when, where and maybe even the weather outside when the carrots moved between buildings. Be prepared for some surprises.

Blockchain Explained

A blockchain is a distributed, digital ledger used to track shipments. Rather than a single document — the old bill of lading — traveling throughout a supply chain, the information contained in that one document exists in many computers in the network along the way. So every time a bushel of apples moves through its supply chain, information about its steps are recorded, including who moved it, when, why and what resulted from the movement. The data form blocks that leave unique “fingerprints” along the chain. Any attempt to change a fingerprint travels throughout the entire chain, alerting everyone that the integrity of the chain was compromised. If someone steals an apple, the blockchain will know where and when it disappeared. For the food industry, blockchain appears to be a way to prevent food fraud and ensure food safety. Real-time awareness of inconsistencies in the chain will enable faster and more precise responses to food-borne disease outbreaks. Consider the Romaine lettuce contamination in early 2018. Blockchains would have enabled investigators to track back all the way to rows of lettuce growing in the field. At least that’s the theory.

Route Optimization That Allows for Constant Change

Route Optimization That Allows for Constant Change

When Layla Shaikley began brainstorming with three classmates, it was to fulfill an assignment in a class on entrepreneurship at MIT. The professor had challenged them to devise a technology that could change a billion lives. Focused on developing countries, the foursome looked at how to use data from volatile zones to draw conclusions about crime and personal safety. They decided to target cell phone data and searched for partners outside the U.S.

But when they began asking around, they learned that companies of all sizes had a more pressing problem: navigating day-to-day deliveries. While routing solutions such as Roadnet® — one of the largest — do exist, these technologies planned routes the night before. They couldn’t make real-time adjustments if a snowstorm hit, traffic got snarled, loading docks filled up or the customer didn’t turn up to receive delivery.

Along with potential customers voicing their needs, MIT advisors noted the same challenge existed in the U.S. Using harvested data as a backbone, the team tackled the complex problem of route optimization for the shipping and logistics industry. Here was the answer to their assignment: a technology to offer nimble routing using big data, machine learning and cell phones.

The first thing they discovered was that most traditional delivery routing systems weren’t accounting for the volume of available open-source data that could reveal historical patterns such as traffic and weather. The team created several algorithms that take in passive data, including historical service times or traffic patterns as well as direct feedback from drivers using their prototype — a straightforward mobile app for drivers to follow, paired with a web-based tool for managers to review.

The students searched for companies willing to share data so they could test it. That part was easy.

“We would cold-call companies on LinkedIn and say, ‘MIT and big data,’” says Shaikley with a laugh. Apparently, that combination was enough to pique interest. To better understand drivers’ challenges, Shaikley rode along with them. “I’d hop in these giant trucks and watch them use our app,” she says. “It was like standing in front of a crowd naked. Drivers are sharp and they know what they’re doing.” And they had immediate feedback: Drivers were critical of the abundance of in-app messaging. How could they deal with a ton of pop-ups while on the road?

After two years of fine-tuning their proof of concept, the team made it official, incorporating the business and naming it Wise Systems. After graduation in 2014, they joined an MIT startup accelerator. When they wrapped that, they searched for paying clients.

Through an advisor at the MIT Center for Transportation and Logistics, they were introduced to Anheuser-Busch. They walked the beer giant through their process, explaining that by using data such as traffic, cancellations, late customers and weather, the Wise algorithms adjust drivers’ schedules on the fly. This means “they can make the most efficient decisions possible” about navigation and order of delivery, according to Chazz Sims, Wise Systems CEO and co-founder.

In 2016, Anheuser-Busch agreed to run a pilot using Wise Systems in two locations: Seattle and San Diego. The company still used Roadnet, its existing technology, for its route pre-planning, but it used Wise for day-of routing. Several months later, when Anheuser-Busch reviewed the metrics — driver satisfaction, shorter routes, quicker work time — they were impressed enough to roll the Wise launch out to every single U.S. wholesaler, plus two locations in Canada.

Wise’s success with the beer giant demonstrates the novelty of their solution — real-time route optimization.

“People think this is solved, but it’s not,” says Sims. Case in point: UPS spent billions to create its in-house system, called Orion. Initiated more than a decade ago, the system didn’t launch until 2016, with the help of 500 staffers working on the technology. In contrast, Wise has a staff of 15. While UPS has incredible numbers — handling 15.8 million packages on an average day — imagine how much technology has changed since Orion was initiated. A UPS spokesperson noted that real-time optimization, including real-time navigation and updates after each stop, won’t be fully deployed until 2019.

Wise’s app makes extensive use of third- party tools — including mapping, weather, traffic and navigation — and focuses solely on the algorithms that take in the data and create flexible day-of schedules.

“We pull real-time traffic, we look at history, we make projections of what the rest of the day will be like,” says Sims. Taking into account that specific route’s history, the software determines that if a driver continues with his or her current route, a delay is likely. At this point, the Wise app alerts the driver to a route change, which the driver can accept or reject based on his or her experience with the trip.

Shaikley calls drivers’ collective experience “tribal knowledge.” A driver who hits the same stop week after week knows some customers have good and bad times for deliveries. Maybe the Coke delivery guy will be there at the same time, maybe parking will be terrible, perhaps the customer is out for his daily coffee.

“They [drivers] can add their own knowledge and insight into the app, and we can take in the feedback,” says Sims, noting that future algorithms for a specific route would include those updates. Shaikley emphasizes their goal of being a driver-first solution.

With several new contracts on the horizon, Wise Systems is making progress expanding the business and plans to capture new market segments in 2018. They will have helped the delivery of 10 million packages by the end of this year by homing in on a single part of the puzzle: flexible routing. For a project that started as a grad school lark, Shaikley says they’re chipping away at the original goal of changing a billion lives by focusing on drivers. “Understanding what is in their heads is the most valuable.”

Wise Systems co-founder Layla Shaikley isn’t your run-of-the-mill MIT architecture grad. Yes, she co-created a tech startup that’s improving the way logistics companies optimize deliveries. But she also interned at NASA, co-founded TEDxBaghdad and co-produced a video featuring #mipsterz, aka Muslim hipsters. Creativity and impact are guiding themes for Layla and key pieces of a lesson her own Muslim parents instilled early on. “They had one rule for me growing up: Do whatever you want, just be the best at it.”

Keep up with the latest in logistics entrepreneurship and follow Layla Shaikley on Twitter @laylool.

The Evolution of How We Shop for Food

The Evolution of How We Shop for Food

In 1900, the “eat local” movement wasn’t a movement — it was harsh reality. Just over a century later, advances in technology — from shipping to inventory management — allow us not only to eat Japanese sushi so fresh it’s practically flapping, but also to restock our fridge with delivered groceries we ordered two hours before. How did our food get here?

Located in a gritty section of Manhattan called Hell’s Kitchen is a large grocery store stocked with everyday essentials — but it’s not open to the public. The building is leased by Fresh Direct, the largest online grocer in the northeast; it’s part of a new hybrid of on-demand shopping and is called a “dark store.” Products on the shelf of a dark store are picked and packed by employees and sent off in cars or on bicycles to fulfill same-day deliveries. In today’s grocery store parlance, same-day has ousted Fed-Ex priority overnight as the new gold standard.

For FreshDirect, creating a new sub-brand to serve consumers’ last-minute needs was vital to remaining competitive. The idea was tossed around in 2011, when the team did a market assessment of its conventional model. Online grocery stores offered a wide spectrum of where and when you get your food. But if you needed something the same day — maybe because you hadn’t thought about dinner or you didn’t know where you would be — well, you were high and dry. The resulting concept, named Foodkick, launched first in Brooklyn in November 2015 and then in Manhattan in 2017.

The private company won’t share numbers, but Jason Lepes, vice president of merchandising, says they’ll be expanding to a third location soon.

“The business is going really well,” he says. “Huge.” FreshDirect is not alone. A McKinsey & Company report on the state of parcel delivery notes: “The last mile is seeing disruption from new business models that address customer demand for ever-faster delivery.”

While speedy delivery is what everyone says they want, consumers are mostly interested in the cheapest option. What will bring down the cost of same-day delivery? Scale, automation and robots.

This is a grocery store. But the public isn’t allowed inside — only Foodkick’s personal shoppers, who gather provisions ordered online and send them via bike or car to customers. The so-called dark store enables same-day deliveries in Manhattan. (Click image to enlarge.)

The Roots of Food Shopping

How did we get here? While today’s passionate consumers debate the merits of local versus organic, in the early 1900s everything was local. Markets were small areas where carts, farmers, buyers and sellers gathered together to buy, sell and trade. In cities, if you couldn’t pick it up within a 10-minute walk from your home, it wasn’t in your bag. Markets were open six days a week, and notions like refrigeration were pure space-travel fantasy.

Eventually, these loose outdoor areas moved under roofs and inside buildings to create permanent spaces for vendors, which enabled more reliable sourcing and a greater selection of foods offered. Over time, improvements in transportation and shipping also increased selection.

Before cars overhauled our diet — allowing consumers the ability to drive longer distances to stores and buy more than one could carry home by hand — trains did. First, by moving commodities around the country, increasing selections and lowering prices at markets. And then, by incorporating refrigeration technology.

“The refrigerated rail car made meat affordable for average households by allowing companies to ship carcasses rather than live animals across the country,” writes Marc Levinson in “The Box,” his book about the shipping industry. Once refrigeration became an everyday reality, food products could be shipped farther from their origin. [Learn more about the importance of refrigeration in the food supply chain in our feature story, “Transcending Seasons: Following the Global Cold Chain.”]

But before shipping could become fully globalized, our food cargo had to transition from rails to trucks, a trend that began in the 1940s and firmly took hold in the 1950s.

Once trucking became the de facto interstate transit (complementing trains but surpassing them in goods delivered), leaders in the industry began retrofitting the human side of delivery, tackling shipyards first. Trucking magnate Malcom McLean realized that quicker loading times could improve every stage of logistics. He helped create a streamlined container, leveraging what he knew of trucks and trains. This shipping container became the industry standard and rapidly made delivering goods by boat an affordable idea. In the 1960s, once mechanical cranes transformed how containers were loaded and unloaded, removing traditional dockworkers from the process almost completely, goods from every continent, such as kiwis from New Zealand, Italy or China, could reach the world.

Read our story about early NYC’s network of markets, located so people could access provisions as part of their daily routines.

Global Goods

Each year, 817 million tons of foods are shipped around the world, with distances increasing over the last 50 years to an average of 1,300 miles. More than $50 billion worth of goods is moved every day by cars and trucks, a journey that depends on shipping containers. We need look no farther than our morning cup of coffee for an illustration of those miles.

“By the time you enjoy the beans back in L.A., they had traveled more than 30,000 miles from field to exporter to port to factory to distribution center to store to my house — more than enough to circumnavigate the globe,” writes Edward Humes in “Door to Door.” “Thousands of man-hours and billions of dollars in technology and infrastructure — along with the efforts of countless unsung heroes who pack, lift, load and drive and track it all — combined to bring that cup of coffee to my lips.”

Fast Versus Instant

Ten years ago, the Natural Resources Defense Council reported that a “typical American-prepared meal contains ingredients from at least five countries outside the United States.” What’s in our refrigerator today represents an even bigger diversity, and the last mile these far-flung foods travel is being compressed into a sandwich of instantaneous desire.

While many companies and startups are focusing on speeding up the last mile, only a fraction of consumers are ready for it. In a survey of almost 5,000 people, McKinsey reported that only 23 percent wanted to pay for the same-day option. Despite that, “same-day and instant delivery will likely reach a combined share of 15 percent of the market by 2020,” McKinsey asserts.

Evidence of this burgeoning trend is everywhere: Amazon expanded its same-day delivery service to Prime members in 8,000 cities in early 2018. Around the same time, Target purchased Shipt, which has more than 20,000 personal shoppers, for $550 million. Instacart, which works with almost every major supermarket, has expanded to 69 regions across the U.S. and by the end of 2017 was serving 60 percent of American homes. Jet.com, owned by Walmart Inc., offers its same-day service for free, and soon, Walmart will pilot the same service in New York.

While everyone from big brands to startups attempts to tackle the challenges of same-day food logistics — a problem that involves route optimization, staffing, merchandising, scheduling and supply chain — the concept still relies on old-world delivery methods like trains, trucks and ships. Whoever dramatically changes that network — getting food delivered to our homes in game-changing ways — will also own that well-worn cliché: I reinvented the wheel.

HEB’s Curbside Pickup is only one of many examples of ways we’ve outsourced our shopping to others. Personal shoppers gather the items on your list and package it all together for your quick pickup in designated parking spaces. (Click image to enlarge.)

Will Trucks Ever Vanish? The Future of Transportation

Will Trucks Ever Vanish? The Future of Transportation

While trains, trucks and ships continue the global movement of our food in what is now a decades-old system, the evolution of that last mile to our front door is vaulting forward. Here are a few innovations that might become old hat within the next few years.

Foodie Robots

Don’t be surprised when you begin to notice your sidewalk cluttered with electronics instead of people. DoorDash, an on-demand food delivery service based in San Francisco, is testing out robots as an addition to its food-delivery workforce. [Read more about DoorDash in our story, “Smarter TV Dinners.”] With pilot programs that began in Redwood City in 2017, the self-driving robots deliver goods to customers within a two-mile radius. The futuristic helpers come from Starship Technologies and look like small refrigerators on wheels. The self-guided machines use nine cameras and sound waves to create an imaginary bubble around them, which allows them to go around objects or make a full stop. It’s not all rose-colored glasses, though, as cities like San Francisco attempt to enact restrictions limiting these pesky bots.

Edible Drones

The future of delivery, according to everyone, is drones. But that reality — drones dropping boxes out of the air — is a long way off, despite stunts pulled off by Google and Amazon. However, two designs are delivering food in meaningful ways. Windhorse Aerospace has developed a one-use drone, nicknamed Pouncer, to bring food and other supplies to disaster zones. The device, made of lightweight plywood that can be used for firewood post-delivery, incorporates meals wrapped in thin plastic that could be reused in disaster shelters once the meals are finished. According to founder Nigel Gifford (above), the drone will feed about 100 people for one day. Inedible components, such as the electronics, are being kept to a minimum. One day, Gifford’s crafty engineers could wrap those components in bouillon cubes. Sounds delicious, right?

Another forward-thinking drone test is happening in our national parks. The pilot program is aimed at rescuing prairie dogs. The cute rodents have been hit by a disease that, if left untreated, could spell disaster for their primary predator, the black-footed ferret, an animal on the brink of extinction. This is where the drones come in: They’re dropping peanut-butter pellets — the size of blueberries — laced with vaccine for the sick prairie dogs on the ground. The beauty of the drones in both examples is the distance they can cover and their ability to serve hard-to-reach spots.

Autonomous Pizza

For six weeks in late 2017, Ford partnered with Domino’s to deliver pizzas to randomly selected customers in Ann Arbor, Michigan, via its Ford Fusion Hybrid Autonomous Research Vehicle. Customers who agreed to be a part of the test could track their pizza on the Domino’s delivery app, receiving text messages as the car approached. When it arrived, customers received a text with a unique code to unlock the heating compartment inside the vehicle and retrieve their pizza. Ford’s test cars use lidar, a method for measuring distance to a target using pulsed laser light detected by both radar and camera sensors. While the test did include an engineer behind the wheel, the windows were blacked out so there was no interaction. Despite these depersonalization measures, the team found people wanted to interact with the car, even saying hello to it and waving goodbye. As the second-most-profitable pizza company in the world, behind Pizza Hut, Domino’s is paying close attention to what role self-driving vehicles may play in the future. While Ford won’t begin building its self-driving vehicles until 2021, you can already order a pie from Domino’s simply by tweeting the pizza emoji to your local franchise. [Read more about the self-driving Domino’s vehicles in MIT’s Technology Review.]

Underground Delivery

In the distant future we may see the return of pneumatic tubes making their way back into the world as we know it. Several years ago, Amazon filed for a patent for a dedicated system of underground tunnels that could bring packages closer to home — a system that “may avoid congestion experienced by traditional transportation networks.” Late in 2016, the patent was awarded. Other companies are tinkering with similar ideas: Elon Musk is developing technology to bore tunnels below street level in Los Angeles, and Mole Solutions Ltd, an English company, has tested similar systems with government funding. But there’s another more obvious use for our underground spaces, and that’s for our salad bowl. So far, we’ve got greens growing inside giant warehouses, in shipping containers and on rooftops, and it won’t be long before we see hydroponic cells — microfarms, if you will — cropping up underground. When the lettuce is ready for harvest, it can be delivered quickly to surrounding areas, keeping the carbon footprint as tiny as a microgreen.

Investing in Tomorrow’s Food Chain: Walter Robb Moves Forward

Investing in Tomorrow’s Food Chain: Walter Robb Moves Forward

Former Whole Foods Market co-CEO Walter Robb acknowledges that during his 26 years with the company the grocery giant helped usher in a new way of thinking about food — from farming to grocery shopping. Today, as an investor and advisor to food system startups, Robb is poised to influence the conversation again.

Walter Robb is the first to admit that it was not pre-ordained that he would become one of the modern era’s gurus of good food. After graduating from Stanford, he planned to become a lawyer, but he only lasted a week at law school. Next he tried being a teacher, a soccer coach and a farmer. None was the right fit.

In 1978, he borrowed $10,000 to open a natural-food store in an old garage in Northern California. He later sold his second store in 1991 to Whole Foods Market. By 2010, Robb was co-CEO with John Mackey, the visionary founder of Whole Foods. Sam Kass, the former White House chef and policy director for Michelle Obama’s “Let’s Move” program, says Robb has done as much to change the food system as anyone in America.

With Amazon’s 2017 acquisition of Whole Foods, Robb, 64, is starting a new chapter. Through his firm, Stonewall Robb, he’s an investor and an advisor to innovative food startups. It’s a natural next step for him — after all, he got a $10 million payout when he left Whole Foods. But his acolytes will not find Robb a typical investor. He is thoughtful, rather than brash and obsessed with disruption. And unlike many technology investors, he is not searching for silver bullets. After 40 years in food, he understands the complexity of the food chain and knows that culture and conversation will be as powerful as technology in creating a more just food system. Robb talked to Food+City contributor Jane Black about what he looks for in a startup, the importance of creating a company culture, his hopes for the Amazon-Whole Foods deal and the future of grocery stores. Excerpts, condensed and edited for clarity, follow:

Jane Black: If you Google Walter Robb, the one thing you’re definitely going to learn is that your favorite food is lentils. Lentils?! Have you always been a healthy eater?

Walter Robb: No, I wouldn’t say. I grew up in a typical upper middle-class family. We had piggies in a blanket and we had Bird’s Eye frozen vegetables — stuff like that. It wasn’t really until I got to college that I opened my eyes to some of the healthier foods and started making my own bread and that kind of thing.

Black: College isn’t usually where kids start to eat healthy.

Robb: Well, in my sophomore year I started really reading [about food]. I read Wendell Berry’s book, “Culture and Agriculture, the Unsettling of America.” And that was pretty exciting for me. And I read Frances May Lappe’s “Diet for a Small Planet.” Frances was speaking in San Francisco at Food First on Mission Street, so I went to hear a couple of her lectures.

Then I also met Alan Chadwick (a pioneer of organic gardening in California). And I spent time apprenticing with him. Between all those things, my interests in healthy eating, the soil and healthy living overall sharpened up. It kind of started me down the path.

Culture is the sum total of the humanity of the company. It’s where the culture and values come alive with a presence. It’s: How does it feel around here? How do the customers feel? How do the team members feel? That’s what culture really is. It’s an alive thing.

Black: Jumping ahead, you joined Whole Foods in 1991 and rose through the ranks. In 2004, you were named co-president. In 2010, you were promoted to co-CEO. What do you think was your biggest contribution?

Robb: It’s always tricky to say stuff about yourself. But look, I think I was part of the core team that really helped Whole Foods change the conversation about food in America. So, I’m very proud of that. I think I’m a good retailer — at the craft of retailing. I love it. My number-one quote over the years was this: “We’re not so much retailers with a mission, as missionaries with retail.”

I think I’ve definitely helped to shape the retail and culture of Whole Foods, which, as you know, is one of innovation and experience.

Black: Which leads perfectly to my next question. As the food world shifts to be much more technology focused — Amazon’s purchase of Whole Foods is just one indication of the trend — how does the culture you created survive?

Robb: Well, I think you start by realizing that culture is a living, breathing thing. Culture is the sum total of the humanity of the company. It’s where the culture and values come alive with a presence. It’s: How does it feel around here? How do the customers feel? How do the team members feel? That’s what culture really is. It’s an alive thing. It continues to evolve in a way that’s malleable, and, at the same time, that it’s anchored in the values.

So now the great question is: Will two wonderful companies [with their own strong cultures] have the courage, the wisdom and the humility to learn from one another, to learn from one another’s cultures?

At Whole Foods, we acquired 19 companies under my tenure as co-CEO. It takes about two years for two companies to really come together. So the answer to your question is, it’ll happen over time. But it will require efforts on both sides to really be thoughtful about how it’s happening.

Black: What are the big issues you see coming up in food?

Robb: There’s a new set of issues up on the table. Like food waste, like imperfect produce, like farm worker health, like full transparency on product. This new generation is going to look for a more, if you will, whole foods system. In other words, one that is more fully transparent, more responsible, [with] more options.

One startup in which former Whole Foods Market co-CEO Walter Robb has invested is HeatGenie. Its innovative self-heating container safely warms the package’s liquid contents — coffee or soup — within a couple of minutes, right in a consumer’s hand.

Black: What are you working on to address these new issues?

Robb: I’ve picked some companies to invest in and serve as a director. Food Maven [a Colorado startup that sells excess food acquired from producers and distributors to restaurants and institutions at a discount] came through Grant Lundberg, the CEO of Lundberg Family Farms. He reached out to me and asked me to talk to his cousin Patrick Bultema, who’s the CEO in Colorado Springs. And I guess it was just meant to be.

I’ve been troubled as a grocer for a long time about the food that gets thrown away. About 40 percent of food grown is wasted. It’s produced, there’s too much supply and about one third of what goes to landfills is food. It’s time for that to be met with some sort of thoughtful solution. I realized, “Wow, this is something we haven’t really worked on.” Here’s an area [in which] we can make a real change. I was drawn to that. I like working on things that matter. I like working on things that have a purpose, and [working with Food Maven has been] a great opportunity to work with people I enjoyed and to try to work on something that I know needs to be done. So that was an easy one.

Heat Genie came through Danielle Pruitt, my other half. She knew Mark Turner, the CEO. It is a technology that allows a can to self-heat in about a minute and a half. Think about it. Not only do you create new products for customers [such as self-heating coffee, soup etc.], but … think about disaster situations where hot food is needed.

I liked it for that reason. I thought the company had a missionary aspect. It’s a leading-edge technology for something that hasn’t been done before, but with applications where it could make a real difference in people’s lives. Black: So it’s the fact that all of these companies has a mission that drew you to them? Robb: The criteria are a great young entrepreneur or CEO, a sense of mission or purpose in the company’s work and a commitment to building a culture that’s good for the people at the company. They need to understand and appreciate those things.

I think I look for something that’s a forward movement into the future, right? So we’re creating something that doesn’t yet exist and that is going to help shape the world. Not just something that’s been around forever that’s just kind of trodding along, but something that’s going to open new opportunities and new growth.

Black: What parts of the supply chain do you feel really need the most attention in food?

Robb: I think number one is transparency. Number two, I’d say, is quality. I’d say quality and standards so that the transparency leads us somewhere, that it’s not just an obfuscation exercise.

[Adaptation] to the digital world is also important so that it’s easy for customers to access that information and to inform their choices, and this will also help companies to evolve faster. The last big thing is the food waste.

Black: OK. The questions everyone wants answered: What is going to happen with the Amazon purchase of Whole Foods? What can Amazon do, given their position, to take good food to the next level?

Robb: Well, I’d love to see them continue to reach the full potential of Whole Foods. Whole Foods was built to endure, to be around for hundreds of years. Built to make a permanent shift in the food landscape. I’d love to see Amazon continue to honor that and accelerate it into the future. That may be self-serving because I was there so many years and it’s so much a part of me, but I’d love to see that happen.

The second thing would be to propel a more nuanced conversation about food. This often is a conversation about “Is it cheap enough?” But the reason food is not “cheap enough” is there are so many tradeoffs in the production of the food that folks don’t always know what they’re getting.

So how do we more, I don’t know, more articulately, more intelligently, more holistically approach this question about cost and quality? In the end, there always is a set of choices for people. How do we make organic food, more natural food, less expensive, but not so cheap that it loses the reason for being? How do we make people more aware of the costs that in cheap food are really not being reflected, and the costs that are happening as a result of having it? So how do we raise the quality of the conversation about that?

Telegraphing the High Price of Cheap Food

Walter Robb argues that consumers need help to make more responsible choices about what they eat. But how?

One idea: True Cost Accounting, an emerging method that tries to pin precise dollar figures on the social, environmental and public-health consequences of food production. It’s a way to price a steak to include the costs of raising and slaughtering the animal as well as, say, the cleanup costs of associated water pollution.

How to account for these “externalities” is tricky. In 2016, some 600 economists, farmers, policy makers and advocates gathered in San Francisco to discuss new ways to categorize, quantify and monetize the food system’s externalities – and, equally important, how to message it to consumers. “We need to provide the context behind stories without overwhelming our audiences with complexity,” said the Consumers Union’s Urvashi Rangan. “You give the bad news, but you also have to give people a message that empowers them and puts them in the driver’s seat.”

Black: What about all the drones and robots we hear about? Will there even be grocery stores?

Robb: Absolutely, because the need and desire for human connection is ever-present. What’s exciting about robotics is that they are already being used extensively in distribution and in physical stores as a partner to team members, doing things like checking store conditions and out-of-stocks. In Wake Fern, a grocery chain out of the southeast, you’ll see robots going up and down the aisles doing their work, increasing the productivity of the human workers. It’s already part of the grocery store. But there’s a tendency to overstate the high-tech narrative right now — that everything will be replaced.

Black: What will grocery stores of the future look like?

Robb: The world is tilting toward fresh and artisan and the true craft of food production. Soon, we’ll see [stores] in different forms and sizes. I think the big stores are in trouble; people don’t want to shop at them anymore. The whole way people get food is changing. We have so many options for food, whether it’s a meal kit, pickup or eating out. You don’t have to go to the store all the time. The grocery store is just one option. There will always be a market, but even more, it has to serve as the town square.

More broadly, the grocery store of the future will have no boundaries to it. Even though it’s a physical store, it will reach all the way into your home and even walk around with you. Imagine a Whole Foods refrigerator. You set it up on an app, pull it up on your phone, order what you want and have it there when you get home. There are also virtual reality technologies, like one from a company called Spacee, that allow you to project images of the store onto, say, a wall and enable delivery from that image.

Black: So much of this is about convenience and more personalized food. What needs to be done to create a better food system?

Robb: We need a true north. I believe in the quality of food and the transparency and the access of good-quality food, and an inclusive food system for workers and eaters. I don’t know if everyone would agree with that.

Customers are pushing hard for transparency and more information, more choices. But there are different sets of customers who can afford different things, and they are supported by commodity suppliers. These two [food systems are] running in parallel. They have different value systems.

History suggests from our experience at Whole Foods that change is possible. There are setbacks, of course. The current White House shelved a rule around animal welfare for organic that was in the works for three years. It’s two steps forward, one step back.

But directionally we aren’t going to go back. It’s a combination of things, over time, that will lead to change. But if there’s one thing we need to keep working on, it is these gaps of access and availability. We produce enough food, but it’s not finding its way to the people who need it. I would hope that the north star is an ever-increasing availability and accessibility of food that nurtures and sustains our bodies and our communities and our country. That’s what I’m going to keep working on.

Watch Walter Robb discuss business culture, a leader’s vision and how to find your passion in a Duke University video.

Transcending Seasons: Following the Global Cold Chain

Transcending Seasons: Following the Global Cold Chain

Prior to the late 19th century, families around the country ate only what they could grow or what nearby farmers had to offer. For people who lived where winters were frigid, that meant a limited winter diet consisting of food preserved in a root cellar. But that all changed when refrigerated rail cars enabled cross-country shipping of meats and produce from faraway farms. Access to a wider variety of foods year round changed the American diet permanently.

In 1927, the sociologists Robert and Helen Lynd published the first of their two classic studies of modernization in a midwestern community they called “Middletown.” Among the topics considered by the citizens of what was actually Muncie, Indiana, were recent changes to their diet. “In 1890 we had meat three times a day,” explained a Muncie grocery store owner. “Breakfast, pork chops or steak with fried potatoes, buckwheat cakes, and hot bread; lunch, a hot roast and potatoes; supper, same roast cold.” This would have been impossible even a decade earlier because the mass production of beef had only just become technologically viable.

What made the mass production of beef possible? Refrigerated rail cars, thanks to Gustavus Swift’s efforts in the 1880s. By 1890, steers and pigs slaughtered in Chicago stockyards arrived in cities and towns across the country, chilled by ice for the entire route.

“Steaks, roasts, macaroni, Irish potatoes, sweet potatoes, turnips, coleslaw, fried apples and stewed tomatoes.” This is how a Muncie housewife described her family’s “winter diet” to the Lynds before refrigeration arrived there during the late 1920s. No strawberries. No eggs. The winter diet was nothing but bland winter fare. Before fruits and vegetables were protected by similarly refrigerated rail cars, producers faced substantial spoilage and could never ship in winter because delays caused by freezing weather could doom whole shipments. (While some spoilage happened during warm months, too, ventilated rail cars allowed cooling breezes, mitigating damage.)

Consumers in Muncie faced what was known as “spring sickness” because they lacked access to the vitamins they needed for months on end every year. By contrast, with the advent of refrigeration, perishable produce could arrive from California all year or be kept in cold storage for winter use when those fruits or vegetables had been grown nearby.

The year-round availability of meats and green vegetables that we now take for granted requires an infrastructure. The turn of the 20th century brought the inception of this infrastructure, which changed the American diet forever.

“Everything from eggs to apples (apart from canned, pickled or dried versions) would be seasonally unavailable without cold storage.”

As refrigerated transportation became the norm, a new type of food chain was born — the cold chain. While a food chain requires no special technologies to store and transport foods of all kinds, cold chains require some form of refrigeration every step of the way because spoilage is ongoing. If one link in the chain fails, the product becomes inedible. What was true about cold chains during the early 20th century remains true today.

Lexicon Icon COLD CHAIN

A “cold chain” is a modern refrigerating engineering term that refers to the path of perishable foods from the point of production to the point of consumption. Unlike regular food chains, cold chains require refrigeration along the entire path to prevent spoilage.

COLD CHAINS AND THE AMERICAN DIET

Technology has always had a tremendous effect on what people eat. Some technologies have made it possible to overcome distance by making cold chains longer, while others have made it economical to get better-tasting perishables by making cold chains shorter. As cold chains (and the transportation systems associated with them) have improved, the perishable food we eat has become fresher as delivery has become faster. Cold chains even let consumers defy seasons, allowing us access to fruits and vegetables that the people of Muncie seldom saw at any time of year.

With so many cold chains for so many different foods now available, it seems much more accurate to describe our perishable-food provisioning system as an intricate cold web. The refrigerated strands of that web crisscross not just America but the whole world. Their size, their speed and, most importantly, their efficiency have an enormous impact on what we eat because they help determine how much every kind of perishable food costs, or whether that food is available at all.

EATING FARAWAY FOOD: MAKING THE COLD CHAIN LONGER

Meat was just about the most expensive food you could buy during the late 19th century. As such, it was the perfect guinea pig for testing cold chain technology — success would bring the greatest financial benefit to the pioneers. Meat producers tapped into a huge market of consumers who wanted to add more meat to their diets as both a status symbol and because of the superior nourishment meat provided, compared to their earlier diets. When technology brought down the price of meat, consumers responded quickly.

After the cold chain for meat came similar protections for fruits and vegetables, starting in the 1890s. Fast refrigerator cars full of produce grown in California could get melons or lettuce to the East Coast for consumption in about a week. Iceberg lettuce was bred specifically during this period because it could hold up to refrigeration better than the alternatives. Refrigerated shipping and cold storage made these products common all year round and ended “spring sickness” forever.

In his 2006 book “The Walmart Effect,” journalist Charles Fishman describes how lengthening the cold chain for salmon — all the way to South America — brought down the price so much that Americans can now eat that once-uncommon fish on a regular basis. While Atlantic Salmon are not native to Chile, they are now being farmed there and flown to the United States in huge quantities. As a result, writes Fishman, “[S]almon farming has transformed the economy of southern Chile, ushering in an industrial revolution that has turned thousands of Chileans from subsistence farmers and fishermen into hourly paid salmon processing-plant workers.”

Fishman stresses the importance of deboning machinery to making shipping cheap salmon economical — but that’s just because the low costs of refrigerating fish and transporting the product by air are so entrenched that they can be easily taken for granted. Thanks to advances in the cold chain that have made it possible to market fish of all kinds worldwide, Chilean salmon arrives in the continental United States faster than salmon from Alaska. Walmart has paid for preserving and marketing much of that Chilean salmon once it arrives.

Long cold chains for fish do not have to involve airplanes. Refrigerated packing crates and gigantic barges have made shipping costs so cheap that fish caught off Norway can be efficiently shipped to China for processing (taking advantage of low labor costs) and then shipped again across the Pacific to America for consumption. Cold chain shipping — by air or sea — has played a particularly important role in fish farming of all kinds, making it possible to market large amounts of fish produced in what would otherwise be isolated locations. In fact, whether there will still be enough fish in the seas to satisfy this new demand has become an open question.

HARVESTING, STORING AND PROCESSING: MAKING THE COLD CHAIN SHORTER

Orange juice is a good example of how cold chains can be physically shortened to preserve a fresher taste. “Fresh-frozen” orange juice from concentrate dates from 1952. Not-from-concentrate orange juice dates from the 1990s. Ironically, this apparently “fresh” product can be stored for up to a year before the necessary processing occurs. Once taken out of storage and pumped with flavor enhancements, fresh juice has a shorter shelf life than juice concentrate — one to two weeks. Since it bears a much closer resemblance to fresh-squeezed it can fetch a higher price than the frozen juice concentrate sold in cans.

Perhaps not surprisingly, the local food movement has revived somewhat the idea of shorter cold chains. But it may be a moot argument. Consider the pros and cons:

One reason people were supposed to buy more local food is that the energy expended on refrigeration contributes significantly to the warming of the planet. Yet, as Pierre Desrochers and Hiroko Shimzo have explained, one study found that “transporting a large volume of broccoli in a refrigerated container that had been moved around on a boat, a railroad car, and a truck to a distribution point required a lot less energy than a few thousand consumers bringing the same volume of broccoli back to their homes.”

Food miles have lately fallen out of favor as a unit of analysis because they oversimplify the environmental costs of eating perishable foods. Besides the efficiency of transport, another problem with food miles is that the energy expended to keep perishable food fresh also keeps that food from ending up in a landfill where it would give off the deadly greenhouse gas methane as it rots — a scenario in which the costs of refrigeration are less than the costs of spoilage. Similarly, the refrigeration costs associated with eating local beef may be lower, but what about the greenhouse gasses expended to raise the cow in the first place?

SPECIALIZING AND PERSONALIZING: MAKING THE COLD CHAIN FASTER

Nonetheless, some refrigerated indulgences should give any environmentally minded person pause. For example, the highly endangered bluefin tuna is an Atlantic and Mediterranean fish, yet it is regularly shipped as fast as possible to the Tsukiji fish market in Japan, where one specimen alone recently fetched $632,000. In this case, refrigeration has enabled the creation of a market that provides the perverse incentive to hunt a species to near extinction. Similarly, the Costa Di Mare restaurant inside the Wynn Hotel in Las Vegas daily flies in fish caught and frozen in Italy’s coastal waters.

One way to move faster is to travel long distances at higher speeds; another is to eliminate steps along the way. The freezer packs inside ready-to-eat meal kits allow people to enjoy their “Beef Medallions & Brown Butter Caper Sauce” and “Thai Curry Chicken with Carrots & Bok Choy” in pre-measured portions without ever having to go to a grocery store. Blue Apron, the most prominent of these ready-to-eat meal companies, sends out millions of six-pound ice packs filled with sodium polyacrylate, a powder that when mixed with water melts much more slowly than water alone. This created both a personalized cold chain and an environmental disaster, due to excess packaging.

The historian Jenny Leigh Smith has described the practices of the Soviet ice cream industry in similar terms. Unable to afford the creation of an elaborate cold chain based on mechanical refrigeration, Soviet vendors during the 1950s and 1960s simply put dry ice in their insulated pushcarts and used that to keep their product cold as they sold it on the streets. It’s a good reminder that effective refrigeration technologies are not always expensive — they just have to meet the particular needs of the situation at any point in the cold chain.

Another way to make the cold chain move faster is by using refrigeration to speed natural processes that need to occur before perishable products are sold. When the food and science writer Nicola Twilley visited one of New York City’s four main banana distributors, he told her that the energy coming off just a single box of ripening bananas “could heat a small apartment.” The firm’s ripening room was designed to control output by blowing cold air through the boxes. The ripening of some fruit is accelerated, while in other cases it gets slowed down. It all depends upon matching supply with market demand. [Read our story, “How the Bodega Gets the Banana,” for more about the long journey of this ubiquitous tropical fruit.]

TRANSCENDING SEASONALITY: MAKING THE COLD CHAIN SLOWER

When perishables are harvested in season but need to be distributed out of season, cold storage is required. The idea of cold storage dates to around the turn of the 20th century, when mechanical refrigeration was just becoming reliable enough for producers to entrust their livelihoods to these third parties along the cold chain. While new fast train lines could bring fresh-picked strawberries from Florida or melons from California to areas with harsher climates, the easiest way to defy seasonality was to store local produce in newly built refrigerated warehouses for perishable foods of all kinds.

The effects of these changes were noticeable immediately. “Twenty years ago,” explained a 
reporter for the New York Sun in 1894, “[p]ears which sell today two for five cents were 40 cents apiece, and black Hamburg grapes…were only to be had from hothouse growers and were worth $1 a pound. The luscious great cherries which were so plentiful a few weeks ago were unknown in our markets, prunes were known only as a dried fruit, and apricots and nectarines were rare enough to be but a tradition among the greater part of the people.” At that time, rare meant expensive, but not impossible to purchase for special occasions — for instance, buying oranges only at Christmastime.

Storage itself can be expensive even now because of the energy it requires, but it remains an essential component to using refrigeration to transcend seasonality. Everything from eggs to apples (apart from canned, pickled or dried versions) would be seasonally unavailable without cold storage.

The final link in the cold chain, the electric household refrigerator, is a kind of personal cold storage. When the first reliable, affordable, electric household refrigerator went on the market in 1927, it became an instant sensation. It meant that people no longer had to buy food quite so often as before. This was cold storage for your home. By 1960, there was a modern fridge in nearly every home in the country.

Refrigerators allow consumers to time their purchases far better than they would otherwise. In countries like France, where refrigerators are far smaller than they are in the United States, many consumers gladly visit local markets every day so that they can be assured the best flavor possible from their perishable products. By contrast, in the United States, grocery shopping only once a week is a common way to avoid the inconvenience of driving to the Walmart Supercenter and waiting in the checkout line more often. Stores like Costco, which sell huge packages of frozen goods, thrive on this American tendency to favor convenience over taste.

INCREASING FRESH ACCESS: MAKING THE COLD CHAIN MORE EFFICIENT

Future technological developments in our web of cold chains will likely occur in the parts that we don’t see. Bring the cost of storage and transport down, and producers can enter new markets or lower costs for consumers so that more people can afford to eat fresh. These changes will require increasing the scale of what travels through cold chains. Perishable products that are still too expensive for most consumers to buy regularly might become more accessible.

Dragon fruit (pitaya), for example, is well-known enough to be a flavor of VitaminWater, but just try buying an actual dragon fruit in the produce section at even a store like Whole Foods. Maybe it can be done in some places at certain times of the year, but it is far from easy. Grow the supply and cultivate the demand, and a cold chain could evolve to service it.

Apart from refrigeration itself, many important developments in cold chain history have involved improvements in transportation — airplanes or refrigerated containers for transoceanic shipping. With all the links in the chain fully refrigerated now, what might future technological improvements look like? Will your meal kits soon arrive via drone? That depends on whether it can be done efficiently and cost effectively. Improvements in the energy efficiency of refrigeration will also help increase the availability of foods to people at all economic levels if those savings are shared with consumers in a meaningful way.

Increased access to perishable foods of all kinds has been a sign of growth in our food provisioning system ever since the advent of ice refrigeration in the early 19th century. The web of cold chains this process has created stretches across the planet. Even countries that do not benefit from being the endpoint of a cold chain probably produce perishable products that could not be sold elsewhere without refrigeration technologies. While it is unlikely that the changes in diet promoted by future changes in technology can surprise middle-class Americans anymore, anything that can be done to bring the same food choices and relatively low prices to the rest of the world will benefit all of humanity.

Quick History of Consumer Ice

In the early 19th century, ice took long journeys across the globe. Cut from lakes around Boston and packed onto ships, it might be sold as far away as India. Today, anyone can get all the ice they need on demand at local convenience stores. The Ice Factory, developed in 1992, was the first of a new breed of automatic ice machines. It manufactures ice on demand and even bags it for you automatically. This eliminates both delivery and storage costs. It allows people to stock up on ice when they need it for parties and barbecues, yet still use their home freezers for their day-to-day needs the rest of the year. Prior to the Ice Factory, one ice manufacturing plant could pack enough bags to satisfy demand within a 100-mile radius.

Modern Times Cold Calling?

Expensive “smart” refrigerators, like the Internet of Things in general, are really just a way to convince consumers that they need to replace appliances that work perfectly well as-is with new ones hooked up to the World Wide Web so that they can impress their friends with how modern their home is. At this moment in time, the benefits of owning a networked refrigerator do not justify its cost. If you can send email from your computer or your phone, you have no need to send it from your fridge. Refrigerators have certainly gotten bigger since 1960. However, they don’t keep food any fresher.

History of the Cold Chain

From ice harvesting in New England to home refrigerators that can monitor their contents and send a text when you’re low on eggs, milestones along the cold chain have transformed how and what Americans eat. There was a time when pineapples and bananas were rare sites outside of tropical climates. And the idea of eating fish caught in Japanese waters yesterday while sitting in a Texas sushi restaurant today was unimaginable. No more. Check out some of the more memorable moments of the last two centuries of the refrigeration revolution.

1806

Frederick Tudor sends the first commercial shipment of ice by sea in world history from Boston to Martinique. Most of what survives the trip melts because the customers don’t know what to do with the product. Below, Tudor’s workers divide a pond into a chessboard pattern and cut ice into two-foot square blocks.

1851 

Florida doctor John Gorrie patents a commercial ice machine he developed while trying to invent what we now know as air-conditioning. It does not prove commercially viable.

1878

Meat-packing magnate Gustavas Swift hired engineer Andrew Chase to design an ice-cooled rail car that would enable the shipment of processed carcasses across long distances. The result was a well-insulated yet ventilated car, in which the meat was packed tightly at the bottom of the car, and ice was kept at the top, allowing the chilled air to flow naturally downward.

1880 & 1890

The first ice famine grips the Hudson Valley. The New York market turns to Maine for its ice, leading to vast growth in the infrastructure for providing ice there and the growth of ice for domestic consumption in the United States in general. A second ice famine grips the Hudson Valley. In response, ice equipment makers work hard to improve the efficiency of commercial ice machines and largely succeed by 1900.

1916

The total number of electric household refrigerators sold in the United States tops 1,000 for the first time.

1924 

Thomas B. Slate applies for the US patent on dry ice. A year later, the DryIce Corporation of America trademarked solid carbon dioxide, giving it a moniker that has lasted nearly 100 years. The company began marketing dry ice for deep refrigeration.

1925

Clarence Birdseye patents a better form of flash freezing, which will eventually make mass-marketed frozen foods possible.

1927

General Electric is responsible for bringing the cold chain into homes. In 1927, the “Monitor-Top” fridge cost around $520 — equivalent to $7,000 today — and helped lucky families keep leftovers fresh. Refrigerator design saw an update to the more familiar integrated box style in the 1940s.

Check out this amazing collection of antique iceboxes.

1940s 

Before the refrigerated rail car became a key part of the cold chain, leafy greens like lettuce were too delicate to survive a long journey packed in ice. The solution? Iceberg (or crisphead) lettuce, introduced for commercial production in the late 1940s to be hearty enough to reach salad bowls hundreds of miles away.

1950s–70s

Railroads gradually stop using ice for refrigerated shipping as mechanical refrigeration technology becomes cheap and small enough to install in individual railroad cars.

1958

Frigidaire introduces the first frost-proof refrigerator, eliminating the need for customers to defrost their appliances at all. “Frigi-Foam” insulation allowed for the first Frost-Proof refrigerator-freezer.

1982 

The Radio Cap Corporation introduced the Koozie™, a Styrofoam sleeve designed to insulate a chilled beverage from warming up due to conduction or heat radiation. Many a cold beverage will be kept cold.

1992 

Jim Stuart invents the ice factory, the first ice machine that produces and bags ice cubes on demand. This eliminated the need for centralized ice production in regular, larger ice factories.

1998

The introduction of the Internet-enabled or “smart” refrigerator. Not enough people have decided that refrigerators that tell you what should be on your shopping list are worth the added expense and potential problems of buying yet another Internet-enabled device.

2006

High-end cooler brand YETI was founded in Austin by brothers Roy and Ryan Seiders. Their new design for a heavy-duty cooler that could stand up to abuse during fishing trips and retain ice for hours started as gear for serious outdoors people and has evolved into a multi-product cult brand. And it keeps your beer cold for a long time.

2012

Blue Apron begins shipping meal kits, including meats and seafood items sandwiched between ice packs to ensure freshness past delivery.

2014

Internet-enabled refrigerators, which first appeared in 1998, now have cameras and the ability to text you with messages about what might be running low inside. In the same year, both Wired and Forbes magazines published stories lauding high-tech fridges and wondering if 2014 was the year they’d finally take hold.