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Food Movers: Confessions of an Instacart Shopper

Food Movers: Confessions of an Instacart Shopper

by | Dec 5, 2018 | Food Movers, Issue 5, Stories

He’s standing near the fresh herbs, staring at a forest of tiny green bundles, scratching his head, looking up and down from his phone. I offer some help, and he asks, “Where’s the basil?” After I help him choose a perky bunch, he thanks me and mumbles, “I hate shopping for vegetarians.” He’s wearing a shirt emblazoned with the Instacart logo.

Twenty minutes later I’m back in the produce section, and the man is still staring at herbs, looking defeated. “She wants fresh sage, not dried sage. What is it with these vegetarians?” he grumbles. In his defense, none of the herbs are labeled. I point out the fresh sage and wish him luck.

Those increasingly ubiquitous personal grocery shoppers roaming the aisles at a supermarket near you are paid a per-order bonus in addition to the minimum wage they earn per hour. The more orders they can complete in an hour, the more money they can make. But when they can’t find the right fresh herbs, like the shopper I encountered, their slowed quest results in fewer completed orders that day: in other words, money left on the table.

“If you do enough orders in a day and you’re really fast, you can make a lot of money,” explains a different Instacart shopper nearby.

Personal food shopping services have grown by leaps and bounds in the last few years. In Austin alone, six companies offer a range of personal shopping and delivery services at more than 10 stores. Nielsen’s Food Marketing Institute predicts that by 2025, 70 percent of consumers will be purchasing consumer packaged goods online. According to One Click Retail, Amazon already holds 18 percent of all online grocery sales.

That said, grocery shopping can be deeply personal. Customers have habits, preferences and quirks that retailers must accommodate with their third-party hand-picking-produce abilities.

“Ask anyone at HEB if they’ve had to find tahini and they’ll tell you, yes, it’s the hardest thing to find, and everyone wants it.”

As one shopper explains, “The people at Whole Foods are, well, ‘Whole Foodsie,’ ordering $50 jars of honey” and giving picky instructions about their produce. Because of this fastidiousness, online grocers started out offering only consumer packaged goods — pantry items like rice, beverages and breakfast cereals. But lately, most businesses have developed strategies for also offering fresh produce.

Still, online grocery shopping has room to grow. Less than 10 percent of customers in North America buy their fresh groceries online, according to Nielsen. Companies like Instacart have developed technologies that enable customers and shoppers to communicate as the shopper moves through the store. It’s a handy way to reassure customers that they’re getting exactly what they want. But shoppers may find their flow disrupted by picky comments such as, “Can you make sure to get the salmon that’s fourth from the back with the horizontal grill marks?” Or more frustrating: “I’m allergic to that brand.” Customer demands can get extreme, and shoppers feel the need to be polite even as they try to round up everything on their list.

Each company operates slightly differently for shoppers, who tend to stick to one company and one unique store. One exception is Burpy, which operates like the Uber of grocery delivery. Burpy shoppers may fulfill one order with products from a variety of stores. Shoppers are also paid differently depending on the company, ranging from minimum wage with bonuses per order, to flat hourly rates, to tips only. Shoppers generally work flexible schedules, which makes it an attractive second job or a good fit for students.

Regardless of payment criteria, speed matters. Shoppers create efficient strategies for moving through stores. Texas regional grocer HEB even has a digital platform that sorts a customer’s order according to the store’s unique layout, creating a “perfect workflow.” But despite deep store experience and superior technology, some items are still elusive to shoppers.

“Tahini,” one shopper says. “I’ve worked at five HEBs, and every time it’s a wild goose chase. I think it likes to hide itself. Ask anyone at HEB if they’ve had to find tahini and they’ll tell you, yes, it’s the hardest thing to find, and everyone wants it.”

Even when shoppers find everything on the list, customers must still get the groceries home. Because customers see only an itemized list, they often don’t realize how large their order is — an especially risky scenario when it’s for a pickup service or orders from Costco. Sizable orders of bottled beverages pose serious challenges.

“They pull up, and we’re dragging out three carts of groceries, two of which are full of bottled water, and they pull up in a VW Bug,” complains an HEB Curbside shopper. Amazon Fresh shoppers experience the same problem: “People will order 40 boxes of La Croix seltzer, and it’s crazy! You need eight shopping carts and that’s a lot of work.”

Despite the interconnected relationship between shopper and customer, an interesting disconnect remains. Shoppers frequently work in stores in which they do not personally shop, and often shoppers are asked to select items out of their comfort zone, like fresh herbs or fine wine. It begs the question: Can personal shoppers overcome these barriers to make this platform the future bread and butter of grocery shopping?

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Food Movers: Paper or Plastic

Food Movers: Paper or Plastic

by | Dec 5, 2018 | Food Movers, Issue 5, Stories

The plastic grocery bag as we know it today comes from Sweden. Working for a plastics company called Celloplast in 1965, engineer Sten Gustaf Thulin developed a technique for sealing a folded tube of plastic and punching out a hole to create sturdy handles.

The polyethylene bag was waterproof, less likely to tear than paper, cheap to make and light to ship — and so cheap that stores have been giving them away since Day 1. Alas, they are so light that they blow into trees, fences and waterways with ease.

These single-use bags that revolutionized the retail world have now polarized it.

As one of the more visible forms of litter, plastics bags have over the past decade become the target of environmentalists around the world who advocate banning them. Some of the bag bans passed in cities such as Austin have been challenged by lobbyists and lawmakers who argue that plastic bags are more useful than they are harmful to the environment.

Even though bag bans in places like China and California have led customers to reduce all bag use by upwards of 70 percent, critics cite numerous studies that have found that manufacturing and shipping paper bags is two to three times more harmful to the environment than making and moving single-use plastic bags.

For example, a single truck can transport two million plastic bags, but it takes seven trucks to transport the same number of paper bags. That works out to five to seven times more cargo weight on both sides of the chain — i.e., coming to stores as new bags and transported in the waste stream — as well as added greenhouse gas emissions.

Scientists use what is called a life-cycle assessment to determine the global warming potential and environmental impact of how different kinds of bags are made, transported, used and recycled. The United Kingdom’s Environment Agency compared different kinds of bags for a life-cycle assessment study in 2011 and found that you’d have to use a paper bag four times for it to be more environmentally friendly than a standard single-use plastic bag. And what’s more surprising? A cotton bag would have to be used at least 173 times. In other words, because of the intensive resources used to make and manufacture cotton bags, you’d have to use a cloth reusable bag 173 times to have the same environmental impact as a single-use bag.

But there are other factors to consider in that study: Plastic bags are more toxic in aquatic environments, and they break down into micropieces; however, paper bags require more water, energy and chemicals to produce, which can be toxic to the environment during the manufacturing process.

As is often the case, the solution may not be a simple binary choice between paper or plastic. For example, in some countries with bans, such as Morocco, you’ll find flimsy recycled paper fiber bags that feel like soft fabric and are biodegradable, while Canada is leading efforts to create a recycling stream for existing polyethylene bags.

Even if the bag bans don’t last, the effort to use more sustainable, reusable packaging to move our food will continue. That requires changing consumers’ and retailers’ behavior, no small feat in the grocery business.

A cotton bag requires more resources to make and transport than a plastic bag. So many more, in fact, that you’d have to use it 173 times for it to be more environmentally friendly than a plastic bag. But, plastic bags are much more toxic to aquatic environments.

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Food Movers: Keg Cycle

Food Movers: Keg Cycle

by | Dec 5, 2018 | Food Movers, Issue 5, Stories

Few pieces of hardware are as synonymous with a good time as a keg. And while other carbonated fluids are stored in these aluminum or stainless steel tanks, when we hear the word keg, we think of one beverage: beer.

Nationwide, breweries opened at a rate of nearly three per day during 2017 — 997 in total — and each brewery has its own fleet of kegs. Each one of these vessels has a salmon-like lifecycle in which it leaves its homeland full of life and returns home depleted. Unlike a spent salmon, an empty keg can jump back in for another round. But like all too many migrating fish, many kegs never make it home. Of those 997 breweries that opened in 2017, 165 went belly up. For a company that’s barely covering its costs, keg loss can make the difference between a red or green bottom line for the year.

When a keg is filled at a brewery, it is ready to go out into the world and do its job dispensing beer to the people. A distributor facilitates its journey, which may include a retail outlet such as a bar, restaurant or liquor store — the first stop before its destination at a party by the lake or other #goodtimes. If all goes well, and everyone keeps their word, the empty keg will eventually return to its home brewery. If not, and the keg never makes it home, the brewery that owns it foots the bill.

An American-made stainless-steel keg can cost a brewery more than $100, and the average annual keg loss nationwide is about 6 percent, says Tim Cognata, business development director of the beer services company Satellite Logistics Group (SLG). This transformation from stainless steel to statistic ends up costing a lot more than the $30 deposit normally collected when the brewery lets a keg go. For a small brewer, he says, replacement costs for kegs can add up quickly and take a big bite out of the profit margin.

SLG offers a service called KegID, introduced in 2012, which uses scannable barcodes to keep track of a keg’s movements, including timestamps at various stops in the keg cycle and notes about maintenance and contents.

If a keg is not returned, services like KegID provide concrete data for tax-loss purposes. Even though breweries may lose more than 5 percent of its fleet of kegs, Cognata says, most breweries are writing off a mere 1 to 2 percent drop in keg numbers because they don’t have the documentation to prove greater losses. If breweries had tracking data for each keg, they could claim all of those lost vessels without worrying about facing a penalty for overclaiming, in the event of an audit.

The same data that allow a brewery to prove its loss to the IRS can also serve as evidence with which to confront a distributor for losing kegs. Sometimes a retailer collects a larger deposit than the brewery charges the retailer, which can be especially bad for keg recovery. Regardless of the reason a keg is lost, and whether or not it’s found, breweries are happy to be armed with the data KegID provides, says Cognata.

“KegID has an invoice function where you can bill a distributor for the residual value of a keg, minus the deposit,” Cognata explains. “Most distribution contracts state that the distributor is responsible for any lost assets. We provide the concrete data so that conversation can happen: ‘We sent you X number of kegs, and Y came back.’”

Thanks to that hard evidence, Cognata says, when distributors know a brewery partner uses KegID, kegs start coming back.

Other technologies are being deployed toward similar goals. A handful of well-to-do breweries are welding GPS transmitters to their kegs to track their every move — but it’s extremely expensive (think satellite phone versus cell phone). In 2009, New Belgium Brewery began attaching Radio Frequency Identification Devices (RFID) to its 100,000 kegs. RFID is a different way to keep track of information similar to what KegID stores.

“(RFID) lends itself to keeping track of whole pallets of cargo rather than individual kegs,” Cognata says. New Belgium has since moved from RFID to SLG’s tracking technology.

The ability to closely track these mobile assets adds up to big cost savings for brewers. Today, more than 200 breweries use KegID, from well-known national micro brands like Sierra Nevada to well-named niche labels like Moustache Brewing Company.

When the container is worth almost as much as the contents it holds, it pays to keep track.

The ability to track a beer keg’s movements through its journey from full to empty helps brewers keep keg replacement costs down. Each steel keg costs around $100. Image courtesy Satellite Logistics Group.

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Food Movers: Rolling Refrigerators

Food Movers: Rolling Refrigerators

by | Jun 15, 2018 | Food Movers, Issue 4, Stories

Originally, “reefer” was nautical shorthand, referring either to the midshipmen typically responsible for trimming or reefing the sail, or to the thick, double-breasted coat worn by sailors. Today, it is old-fashioned slang for what my dictionary describes, even more quaintly, as “a marijuana cigarette.”

But since 1911, a reefer has meant only one thing in the food logistics business: a refrigerated container, capable of preserving perishables as they travel over land and sea.

“We can handle 800,000 reefers a week,” port officials brag, sounding for all the world like aging potheads. “Yeah, we’re reefer specialists,” industry insiders will say, without even so much as a wink.

In the 1850s, those reefers would have been boxcars, bringing California lettuce and Chicago-slaughtered pork by train to America’s hungry East Coast, cooled first by ice hand-harvested from frozen lakes and then by mechanical refrigeration units. A few decades later, the term might also have referred to the chilled holds of fast-moving refrigerated ships, painted white to reflect the heat, ferrying New Zealand lamb to London and Honduran bananas to New York. Today, reefers are most likely to be special shipping containers, distinguishable from their ubiquitous peers only by the built-in cooling unit at the rear.

 Nicola Twilley has long been interested in the cold chain. She curated
a 2013 exhibit called “Perishable: An Exploration of the Refrigerated
Landscape of America.”

Aluminum or steel sides protect a temperature range from -20° F to 70° F. Double full-swing doors open on one end.

Perfecting the Technology

Reefers cost six times as much as ordinary shipping containers, even before factoring in the electricity required to run them. They are correspondingly rare: despite the Chilean peaches and Argentinian steaks that fill our supermarket shelves, perishable food accounts for a surprisingly small proportion of global containerized trade. Although shipping companies are reluctant to share exact numbers, maritime industry analysts estimate that of the 25 million shipping containers in the world, only 1.5 million are reefers.

The first reefers with integrated cooling units arrived on the market in 1975, but they were slow to catch on. “Companies were moving these expensive, fragile commodities in lots of 40,000 pounds, and sometimes they would arrive OK, and sometimes they didn’t arrive OK,” explains Barbara Pratt, director of refrigerated services at Maersk, Inc. Pratt spent her 20s living inside a specially equipped reefer, trying to work out why melons from Mexico were rotting en route to Europe, and why General Food’s Dominican cocoa beans kept showing up in New Jersey covered in mildew.

Today, thanks to decades of research, Maersk offers high-tech reefers with powerful air handling systems capable of maintaining supersaturated humidity levels to prevent fruit from losing water weight as well as removing the excess carbon dioxide and ethylene gases that contribute to over-ripening. The company also issues detailed instructions about cooling cargo prior to “stuffing” the reefer, to prevent condensation.

In the past decade, reefer design has advanced to the point that specialized freezer reefers can keep sushi-grade tuna intact at minus 76 degrees F, even when the temperature outside is over 100 degrees. Meanwhile, onions and nuts, which prefer an extremely well-ventilated atmosphere, travel in their own bespoke reefers with double the rate of air circulation. Inside these finely tuned microenvironments, tomatoes remain pristine for a month or more. Maersk promises that even peaches can happily spend a couple of weeks at sea.

On a Reefer RoRo vessel, inside decks are convertible to reefer holds with 10 separate temperature zones, all gas tight. It was specifically designed for the large banana and pineapple trades across oceans. And it meets the newest environmental requirements for a ”green vessel,” with liquid natural gas as a fuel option for both propulsion and onboard refrigeration. It was collaboratively designed by Reefer Intel AG, Naval Architects Kn. E. Hansen A/S, Denmark, and Stena RoRo AB, Sweden.

Ocean-going Perishables

In response, more and more fresh food producers are choosing reefers instead of old-school refrigerated-hold ships or expensive air cargo. Container Management magazine recently speculated that specialized reefer ships might well go extinct sometime in the next few years, as the perishable sector finally undergoes the containerization revolution that transformed the rest of the logistics universe in the 1950s and ’60s.

But improved technology is only part of the reason why the seaborne perishable trade has grown so dramatically over the past decade — a trend that industry insiders expect to continue in the coming years. In the United States, for example, retailers have noticed increased sales of fresh fruit and vegetables, and a corresponding slump in the center aisles, as shoppers increasingly favor refrigerated produce over its canned or frozen equivalent. Meanwhile, in China, a booming middle class is eating more meat, much of which arrives in reefers from Brazil. Even millennial snacking trends have had an effect on global reefer movements, with Maersk launching a Mexico-to-Yokohama avocado route in 2016.

One fruit, however, remains a constant: the banana. Both Dole and Chiquita call at North America’s biggest banana port, Wilmington, Delaware, twice weekly, year-round, to supply tropical fruit to the 200 million people who live within 24 hours’ drive. Indeed, while any kind of cargo that is sensitive to atmospheric conditions can be found inside a reefer — French wine, high-tech Italian ski equipment, Japanese bonsai — Maersk estimates that every fifth reefer on the high seas is stuffed with bananas. They are cut and transported while green, hard and immature, their development delayed with cold storage until they are just a week away from delivery, when they are warmed up and gassed with plant hormones into artificial ripeness.

It is in the banana’s complicated journey from tropical treat to global commodity — with all its technological progress, economic impact, dietary shifts, agricultural diseases and Central American political instability — that we can see the story of the reefer most clearly, in all its time-and-space-distorting might.

Maersk estimates that every fifth reefer on the high seas is stuffed with bananas.

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Food Movers: Can I Get That To Go?

Food Movers: Can I Get That To Go?

by | Jun 15, 2018 | Food Movers, Issue 4, Stories

The pressure on food to perform has never been higher. For decades, pizza boxes, Styrofoam clamshells and the paper pails used for Chinese takeout each filled a specific niche in the restaurant industry. But during the delivery gold rush of the past 10 years, restaurants, food packaging manufacturers and customers are demanding more.

The original delivery foods (pizza, Chinese food, deli sandwiches and burgers, which became delivery staples in the 1960s and 1970s) don’t suffer in quality from the half-hour they might spend en route to your house. In contrast, many dishes offered today at casual eateries or fine-dining restaurants weren’t designed to be served in the insulated boxes of past decades.

Lynn Dyer, president of the Food Packaging Institute in Washington D.C., notices small changes: the tabs that make the containers easier to open, the discreet vents that allow steam to escape, the perfectly clear plastic that enables you to see your food before you open it.

Dyer says the innovation we’re seeing for 21st century delivery demands rivals the changes we saw during the fast-food drive-through boom of the 1970s and 1980s. Years ago, her industry group worked with auto companies to determine how many cupholders a car needed and what size they should be. Those measurements were originally used to design drinking cups, but now French fries, chicken nuggets and salads are packaged in cupholder-friendly containers.

PACKAGING FOR VISUAL IMPACT

Modern food packaging containers aim to create a “wow” moment for customers when they unpack their food. That’s why we are seeing Instagram-friendly logos, shapes, colors and clear plastic lids to show off the food, Dyer says.

We eat first with our eyes, but for chefs like Austin’s Rebecca Meeker, food quality is the top consideration. In her fine-dining days, she sent leftovers home in compostable containers. But today, every single food item from her company Lucky Lime is delivered. She needs containers that won’t get soggy and that will hold temperature so that when the food finally arrives, the customer will enjoy their dining experience as much as if they were in a restaurant — the packaging and flavors having fulfilled the website’s promises.

Safety is a concern, too — particularly when your delivery driver may not have a working tie to the restaurant. Manufacturers are working on tamper-evident packaging, such as a takeout bag with a tear strip on the top so a customer can see if someone has opened the bag since it left the restaurant.

COOKING FOR THE ROAD

Few restaurants start out with a plan to meet a growing demand for takeout. But in an increasingly cutthroat industry, many restaurateurs have little choice. Delivery adds expense and opportunity for error, but if a restaurant doesn’t offer its food to go, potential customers will go elsewhere to get it. Dyer says many restaurants consider packaging a small price to pay to make additional sales from people who aren’t sitting in their dining room.

“Foodservice operators want consumers to have the same experience as if they are in the restaurant,” Dyer says. “If they get the food delivered and it looks like a big mess, you don’t get the same experience.”

DELIVERY, NOT DOGGIE BAG

At Lucky Lime, Chef Meeker designed every dish with delivery in mind. For her delivery-only venture, Meeker developed healthy Asian-influenced dishes — with a French flair — that she knew would hold up during a car ride.

She prefers containers with clear tops (so customers can see the food) that seal securely so spills aren’t a problem. These days, one spilled container could mean a customer doesn’t come back, or worse: leaves a negative review about a delivery company that can’t deliver. But finding the perfect packaging can be a challenge.

“You want to highlight the food, but it adds expense,” Meeker says. She says she spends about $1 per order on packaging, often more if the delivery includes a drink in a plastic bottle.

Meeker uses about eight different containers for her limited menu delivered cold once a week. If she wants to add a hot menu, that’ll require a new set of packaging. Grease- and moisture-resistant compostable packaging has been around for about a decade, but some businesses prefer recyclable plastic, which can hold heat longer.

Meeker can’t order the compostable, molded fiber containers with the clear plastic tops that she’d really like to use because her sales are too small to meet the required minimum purchase of $750 every other week. For now, the recyclable containers she’s already using will have to do.

Some Like It Hot

More than 60 percent of Mama Fu’s business is to-go or delivery. Customers of this fast-casual Asian chain expect their food to still be hot when it arrives, and they want it in a reheatable container, says Director of Marketing Josh Churnick. The company, with two dozen locations in Texas, Arkansas and Florida, skipped the traditional paper pail and opted for bright red trays that customers can wash and reuse at home. “I hear from customers on a regular basis who have cabinets full of red containers.”

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Food Movers: Bots in the Cold Chain

Food Movers: Bots in the Cold Chain

by | Jun 15, 2018 | Food Movers, Issue 4, Stories

The second installment in our series about food bots focuses on tech in use in the cold chain. (Check out Part 1.) It’s not hard to see why robots would be ideal workers within these climate-controlled facilities, where temps often hover just above freezing for most perishable goods. Unlike humans, robots don’t get cold — at least, not yet.

Grocery Getter Bots

Some of the newest bot tech involves what are sometimes called swarms and the hive mind — as in dozens of robots working together (the swarm) to complete complex tasks, wirelessly sharing information in real time (the hive mind). Such is the case with Ocado Smart Platform robots, created by Ocado, a British online grocery retailer that’s working on making their delivery-only business as automated as possible.

Ocado’s squat, square, battery-operated bots zip about on an elevated grid over room-temp or refrigerated crates stacked several levels high. Each crate is filled with one specific type of grocery, such as eggs, organic apple juice or cheddar cheese. The robots work as a team to deliver the crates to “personal shoppers” — mainly humans, though another kind of robot could also do the job — that put together customer orders. If the hive mind sees one shopper needs cheddar, but it’s in a crate beneath the eggs and the apple juice, one robot zips by to move the egg crate, a second moves the juice and a third grabs the cheese and takes it to the proper shopper…all in a matter of seconds.

Thanks to the hive mind, every robot knows where every product is at all times; the robots are also tasked with refilling the tower of crates — aka “the storage hive” — as crates empty. Plus, when the bots themselves are low on charge, they ferry themselves off to a charging bay before rejoining their swarm.

Ocado’s bots zip around a grid built over crates and crates of groceries. They pick their orders and deliver them to humans, who do the final packing.

The bots work together, like a hive mind, to uncover buried crates and access items on lower levels. Their real-time communication also indicates which crates need to be refilled.

The system of robots — which can travel 13 feet per second — can fulfill a 50-item order in less than five minutes.

The stacked grid concept came from the shipping industry, where cranes move containers from place to place.

See these bots in action:

Super PaQ Bots

Palletizing robots might not sound revolutionary — palletizing being the unsexy term for the unsexy process of loading and unloading boxes on and off a pallet — unless you’ve worked in a frigid warehouse. Supplies come in on pallets, and products go out on them, and not always neatly: If a mini-mart orders four cases of sliced turkey, a case of chips and two dozen packs of hot dogs from its supplier, somebody or something there has to put all those boxes together.

Palletizing robots are generally “articulated arm” robots, which means they have a stationary base attached to a robotic arm that can bend and swivel. Hand-like tools attached to the end perform specific tasks — in this case, lifting and moving boxes from one place to another.

A company called Swisslog — they design fully automated warehouses and distribution systems — even makes a palletizing robot called RowPaq that can build a perfect pallet of mismatched boxes in minutes. It’s fitted with a set of giant hand-like grippers that can pick up four different sized boxes at the same time and set them down in a perfect row because it already “knows” how tall, wide and long each box is before it arrives.

Whether in a hot warehouse or a cold refrigerated facility, RowPaq can mix and match cartons, shrink-wrapped or foil-wrapped packages onto a single, stable pallet — up to 1,000 units per hour. It’s the ultimate Jenga player.

See RowPaq in action:

The Well-Below-Zero Bots

Think of the freezer as the final frontier for robotic solutions in the cold chain. Super-cold, sub-zero conditions — as in minus 18 degrees Fahrenheit — are just as hard on the moving parts and lubricants inside robots as they are on people.

The easiest solution is to put your robot in a protective suit, which is why when you do see the rare robot in a freezer, it’s usually sheathed in puffy white sleeves that look like a cross between a wind sock and a lab coat.

Most robots used in freezer conditions are large, sturdy palletizing machines with fewer small moving parts, such as bots used to stack table-sized slabs of frozen fish on a pallet. Other companies use spider-like “pick and place” robots to pack things including frozen meat patties and fish sticks into the proper plastic packaging. These bots are usually mounted over a conveyor belt, and the entire process takes place within a sealed, protective, temperature-controlled enclosure.

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