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The Spoon

Daily news and analysis about the food tech revolution

Chris Albrecht

Ahold Delhaize Buys Majority Stake in FreshDirect

Dutch grocer Ahold Delhaize announced yesterday that it has bought an 80 percent stake in New York-based online grocer FreshDirect. Private equity firm Centerbridge Partners bought the remaining 20 percent. Terms of the deal were not disclosed.

FreshDirect will continue to operate as an independent unit and under its own brand name. The company will join other Ahold Delhaize brands that include Stop & Shop and Giant Foods.

The purchase of FreshDirect comes on the heels of what has been a pandemic-induced record year for online grocery sales. New York City, one of FreshDirect’s main service areas, was hit particularly hard in the early stages of the pandemic, pushing the company’s delivery capacity to the brink. With the U.S. entering its third wave with the virus, having the massive infrastructure and resources of Ahold Delhaize could help FreshDirect weather any coming storm.

The combination of Fresh Direct and Ahold Delhaize also has a tech-forward angle. In addition to being an online-only grocer, FreshDirect also recently opened up a robot-powered fulfillment center in the Washington, D.C. area. For it’s part, Ahold Delhaize has experimented with automated micro-fulfillment centers, in-store robots, and small, cashierless nano-retail environments.

With the FreshDirect acquisition, Ahold Delhaize is also bolstering its capabilities to better fend off competition from the giant players in the grocery space. Walmart has made aggressive grocery delivery moves through its Walmart+ subscription service as well as a partnership with Instacart (and experimenting with self-driving delivery cars). And Amazon, which was once online only, has made moves into the physical space with its Go Grocery and Fresh stores.

With online grocery projected to become 21.5 percent of total grocery sales by 2025, expect these types of salvos between supermarkets to continue into the next year.

Are We Ready for Boozey Vending Machines?

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Did you ever have a fake ID growing up? I never did because I was too scared of getting caught. (I’m no McLovin.)

I was thinking about this illicit behavior because it looks like booze-dispensing vending machines could be on the verge of becoming a real thing. And where there is booze sitting in an unattended machine, there is a high schooler somewhere, figuring out some way to fool it.

Yesterday, we wrote a post about the Winecab Wine Wall, an automated wine storage, catalog and recommendation system. While the biggest version of Wine Wall clocks in at 15 feet and holds 600 bottles of vino, I was more intrigued by the much smaller, six-foot version that is “coming soon.”

This petite machine for your petite Syrahs looks a lot like a vending machine. And though the company only touts the Wine Wall for personal use (you know, for the people who can afford a $249,000 robotic wine sommelier), it’s really not hard to envision one of these machines in a hotel or grocery store or even small restaurant. Any place, basically, that wants to offer a curated wine experience without paying a human sommelier.

The problem, of course, would be preventing minors from getting their grubby mitts on the pinot grigio. How would a wine vending machine validate the age of the buyer?

The answer to that may lie in the far less high-falutin’ beer vending machine that PanPacific debuted last year. It did age verification through a combination of account registration and biometrics.

Would people want to hand over personal information like a fingerprint (or face, or finger-vein) data just so they could grab a Michelob Light anytime of day from a machine?

But boozey vending machines are becoming more of a reality, and this, in turn is creating very real new opportunities for alcohol retail. With their small footprints, unattended beer and wine (and more!) vending machines could sit, well, almost anywhere, selling booze around the clock. Whether or not this is a good thing for society is a different question altogether, but it’s one we’re going to have to grapple with, because it’s not something we’ll be able to fake our way through.

Beyond Meat Beefs Up its Offerings

Fake meat has become a very real business over the past couple of years. Plant-based burgers and sausages are better than ever and remarkably close to the “real” thing.

The two biggies in the plant-based meat game, Beyond Meat and Impossible Foods, have been locked in tit-for-tat battle over the past year, going back and forth with competing news announcements.

Over the last several months, both companies have announced new products, retail expansions, international expansions, and the launch of direct-to-consumer channels.

Beyond seems to have saved what could be its biggest news for the end of the year. The company announced this week that it is updating it’s signature Beyond burger patty. There will be two new versions: a meatier, juicier patty, and a more nutritious patty.

I say it’s the biggest because the company is messing with its current cash cow. What if the improvements are the New Coke of plant-based meat? Just because you can make tweaks to your formula doesn’t mean you should.

We’re cautiously optimistic, but we’ll have to wait to find out. The new burgers don’t arrive until early 2021.

More Headlines

Mealhero Raises €2.5M for Its Frozen Meals-by-Mail Service – The Belgium-based company says it’s quadrupled its customer base and doubled the number of orders since the pandemic.

Terra Kaffe Raises $4 Million for It’s Pod-Free Grind and Brew Coffee Maker – The superautomatic coffee machine sells direct to consumer.

The Delivery Hero-Woowa Bros. Merger Faces Antitrust Hurdles – The merger would give Delivery Hero an 87 percent stake in Woowa, and the combined user bases of the two would make up 98.7 percent of the entire restaurant food delivery market in South Korea.

Brooklyn Dumpling Shop Adds Miso’s Flippy Robot to its Automat Concept – The restaurant is also looking to franchise up to 1,000 locations.

New Restaurant Restrictions Put the Value of Restaurant Tech to the Test – One difference this time around is that unlike in March, restaurants have more tools at their disposal when it comes to fulfilling off-premises orders.

Report: $8.37B Invested in Food Tech During First Three Quarters of 2020

Venture capital flowed into both ag tech and food tech investments during the first three quarters of this year, according to a new report out today from Finestere Ventures.

Created in collaboration with PitchBook, the report found that AgriFood tech startups raised a total of $11.6 billion as of the end of Q3 2020. AgTech investment totaled $3.07 billion during that time (up from $2.7 billion invested in all of 2019), and food tech investment totaled $8.37 billion through Q3 (up from $7 billion in all of 2019). Finestere said that the majority of capital invested in both sectors went to later stage deals, illustrating market maturation.

Like everything else in 2020, the COVID-19 pandemic was a big influence on where investments flowed. Finistere said in its report that indoor farming was a big beneficiary of funding as demand for fresh produce increased along with insecurities around food supply chains. On the food tech side, the pandemic spurred investment in startups in e-commerce delivery and meal kits.

Finestere’s analysis correlates with the more general back-of-the-envelope-style tracking we at The Spoon have been doing around food tech investment. Just between May and June we tracked more than $699 million in funding announcements from food and ag tech companies. More recently, we reported on nearly $1 billion in food tech funding just in the month of October.

“With more than $46B of venture capital flowing into ag and food advances over the past decade, AgriFood tech has become a focus of tremendous investor interest. As COVID shone a light on some of our food and agricultural production system fragilities that need strengthening, capital flowed in to support the trend to dine at home,” Arama Kukutai, co-founder and partner, Finistere Ventures said in the press announcement. “While substantial progress has been made, there is still a long way to go. The investment trend we are seeing is long overdue in a massive sector that has been under-invested, and there is a lot of room for further growth. Building a sustainable ag and food ecosystem is absolutely critical, and it will take a lot of time and more capital.”

PIX Moving Makes a Customizable Autonomous Chassis for Delivery

There are a variety of different autonomous vehicles of all shapes and sizes coming to market: From the cargo vans of Udelv, to the pod-like R2 from Nuro, all the way down to the cooler sized sidewalk robots from Starship.

Chinese company Pix Moving is taking a bit of a different approach to autonomous vehicles by removing most of the vehicle. The company is building a self-driving chassis platform on top of which its customers can build whatever they like.

So a big restaurant chain could create a mobile pod of lockers for meal delivery, or a grocery store could create a temperature-controlled store on wheels. A large warehouse-type store could just attach a flat base for moving inventory around.

PIX’s chassis is electric and low-speed, which allows it to sidestep some of the more complex regulations associated with full-sized, full-speed autonomous vehicles. All four wheels of the PIX chassis are steerable, making it highly maneuverable. It’s also 3D printed, so its lightweight and there are fewer parts. And, like any autonomous vehicle, it is packed with an array of sensors and cameras to navigate and avoid obstacles.

I spoke with Chase Cao, PIX COO, by phone this week and he explained that his company is currently navigating the rules and regulations both in China and the U.S. to get its self-driving platform running on public roads. In the meantime, its chassis is being used on some private corporate campuses in both countries. Right now, PIX sells its chassis outright, though Cao said they may look at more of a leasing model in the future.

PIX is worth watching, especially as it relates to food delivery, because of the flexibility of its platform. By pushing the design of the compartments that carry the cargo to its customers (restaurants, grocers, etc.), those compartments can be tailored to a specific set of needs (size, temperature, etc.). This can then create more efficient delivery, and thereby generating even more demand for autonomous delivery.

In other words, there will be even more variety of self-driving vehicles coming to our roads.

Farmstead Raises $7.9M to Expand it Online Grocery Business

Online grocer Farmstead announced today that it has raised a $7.9 million Series A round of funding. The new financing was led by Aidenlair Capital with participation from Y Combinator, Gelt VC, Duro, Maple VC, Heron Rock, 19 York, Red Dog Capital and others. This brings the total amount raised by Farmstead to $14.5 million.

According to the press announcement, the new funding will go towards Farmstead’s national expansion. The San Francisco Bay Area-based company recently added its first service areas outside of California by expanding to Charlotte and Raleigh-Durham, North Carolina.

Farmstead is a pioneer in the so-called dark grocery store space, eschewing a physical store that customers shop in for a delivery-only experience. The company makes use of data and AI to create a just-enough inventory system. The company’s goal is to have the right amount of stock to avoid product outages, but not so much that they are left with unsold inventory.

To help other grocers transition to this type of e-commerce-forward model, Farmstead launched its Grocery OS in September of this year, which, the company says is already being used by a “top 3 U.S. grocer.” As we wrote at the time of that announcement:

Farmstead’s pitch is that Grocery OS can help traditional grocers migrate from physical stores to online, working up through dark stores and into warehouse-only formats. In doing so, Farmstead says Grocery OS will also provide more delivery capacity and get retailers more e-commerce revenue.

Farmstead’s expansion comes on the heels of record online grocery shopping, thanks to the pandemic. Grocery e-commerce is projected to be 21.5 percent of total grocery sales by 2025, hitting $250 billion. Farmstead has seen its own business increase dramatically this year. When we last checked in with the company in September, it had experienced 6x revenue growth over a four month period and grew its team by 3x, moving into a 17,000 sq. ft. warehouse facility.

Of course, Farmstead will need this bolstered warchest as established retail giants make their own moves to grab more grocery dollars. Amazon has opened up its own dark store as well as its own chain of supermarkets that will facilitate delivery, and also added an in-garage grocery delivery option in select cities. Grocery giant Walmart has added Instacart for delivery, launched its own Walmart+ subscription service which includes grocery delivery, and even started experimenting with grocery delivery by drone and autonomous car.

Swedish Vertical Farming Company Urban Oasis Raises $1.2 Million

Urban Oasis, an indoor vertical farming company based in Sweden, announced today that it has raised 10.5 million Swedish Krona (~$1.22M USD). Investors include Family Offices Pelarhuset, Anteeo, and Yobi Partners Ltd.

Founded in 2017, Urban Oasis built its first indoor vertical farm underneath an apartment complex in Stockholm. The company produces a variety of leafy greens, including kale, bok choi, and lettuce, which are sold at Swedish retailers including ICA, COOP, and online grocer MatHem.

With its new funding, Urban Oasis aims to build its first MegaFarm, which will expand its production capacity by 15 to 20 times, according to today’s press announcement. The new facility is controlled by Urban Oasis’ GreenOS automation software and will be operational by the end of this year for growing a variety of crops.

Funding for the controlled-environment agriculture, and vertical farming in particular, has been downright frothy this fall. Other players in the space getting investment include Plenty, Kalera, InFarm and Unfold. As my colleague, Jenn Marston explained last month:

Less than one year ago, the vertical farming sector was expanding, but a lot of questions remained around the scalability of the concept and how appealing it could be to investors. The nearly constant stream of funding and product announcements in 2020 has sped up that expansion. Part of this is due to, yep, you guessed it, the pandemic. Disruptions in the food supply chain due to COVID-19 have consumers more interested than ever in where their food comes from, and having it grown closer to home is an increasingly attractive option.

With the pandemic still going strong and a month in a half left in the year, Urban Oasis’ fundraise may not be the last of its kind in 2020.

Mealhero Raises €2.5M for Its Frozen Meals-by-Mail Service

Mealhero, a Belgium-based frozen meal kit delivery service, has raised €2.5 million (~$2.97M USD) in funding. Mealhero’s CEO, Jeroen Spitaels announced the fundraise via a Linkedin post today (though according to Crunchbase, the close date was November 1).

At the time of this writing, there wasn’t an English press release announcing the funding, so the following details are taken from a Google Translation of a Dutch article running in De Tijd:

The lead investor is Mealhero’s new round is Jan Haspeslagh, whose family is behind the European frozen meal giant Ardo. The founders of Deliverect and Bavet also participated, and this brings Mealhero’s current total funding to €3.5M (~$4.15M USD).

Mealhero is a little different from other players in the meal kit space. It ships frozen ingredients that can be mixed and matched to create different dishes. The frozen ingredients are “cooked” in a steaming device that people rent for €5 a month (~$6 USD).

The article in De Tijd had a number of interesting tidbits from Spitaels, including:

  • The company is shipping “tens of thousands” of meals every month
  • COVID-19 “turned on the turbo button” for the company. The number of orders during the pandemic has doubled, and the company’s customer base has quadrupled.
  • Mealhero is doubling its workforce to 60 employees.

The meal-by-mail space has experienced new life during the pandemic, largely due to the fact that restaurants have had to shut down dine-in operations. Meal kit pioneer Blue Apron said it added 20,000 new customers during the pandemic, while Nestlé recently acquired prepared meal-by-mail service Freshly in a bid to gain a direct-to-consumer distribution network.

Mealhero has expanded into the Netherlands, and has plans to expand to other countries across Europe.

Meet Bobacino, the Boba Tea Making Robot

Let’s just get this out of the way: “robo-boba” is fun (if slightly difficult) to say out loud. But it’s a phrase you could be saying it a lot more if Bobacino has its way. Today the company took the wraps off its eponymous boba tea-making robot kiosk and launched an equity crowdfunding campaign to help bring it to market.

Bobacino is currently in the prototype stage, and uses an articulating arm to mix one recipe of tea, sweetened milk, syrup and tapioca balls over ice to make its boba tea. Future versions of the machine will be able to create multiple recipes.

That’s where the equity crowdfunding campaign comes. Bobacino is looking to raise $3 million from everyday investors starting in January of 2021. Money raised will help the Santa Monica, CA-based company further develop its robo-boba and bring it to market in the second half of 2021.

Bobacino is backed by Wavemaker Partners and Embark Ventures. Sharp-eyed Spoon readers will recognize Wavemaker from its backing of Piestro, which makes a standalone robotic pizza vending machine. (For more on the future of vending machines, check out The Great Vending Reinvention: The Spoon’s Smart Vending Machine Market Report.)

Like Piestro, Bobacino has a two-pronged business model that involves both owning and operating its own machines as well as co-branding with existing boba tea brands.

In addition to the assist from Wavemaker, Bobacino has its own pedigree in automated drink vending. Bobacino Founder and CEO, Darian Ahler, previously co-founded and was head of operations at Truebird, the NYC-based robotic coffee kiosk company.

The fact that Bobacino exists shows how the robotic vending space is maturing and already becoming thinly sliced. Unlike previous robot beverage companies like Cafe X and Briggo (which was acquired by Costa Coffee) that made a wide variety of coffee and tea drinks, Bobacino is only making boba tea drinks. Add Blendid’s robot smoothie maker to the mix and it’s pretty easy to envision hospital lobbies, airports (you know, after the pandemic), and even grocery stores installing a variety of these machines to offer a bevvy of different beverages (which is also fun to say out loud).

Merlot-M-G! The WineCab Wine Wall is a Robot+AI Sommelier

What do you get for the person who has everything? How about an artificially intelligent robot sommelier that can securely store, manage and suggest wines from your collection?

The Winecab Wine Wall does all that (hat tip to Boss Hunting), acting kinda like a very expensive automated wine vending machine that you’d find in only the poshest 7-Eleven.

Wine Walls come in a variety of sizes, from the more modest Curio Classic model, which holds 130 bottles ($139,000) to the 15 ft. Wine Wall, which holds 600 bottles ($249,900). Each system features:

  • An articulating arm, calibrated with a gentle touch for handling delicate bottles of wine
  • A label scanner to automatically catalog bottles you add
  • An AI assistant to recommend wines and food pairings
  • Security features to gate access to certain bottles

OK. So the Wine Wall might be a bit of pricey overkill for your average oenophile. But, it’s possible to see the Wine Wall in a restaurant or hotel or even a grocery retailer that wants to add high-tech wine recommenation to their offerings without bringing on a full-time sommelier. (Though, admittedly, the interaction with a human sommelier is part of the fun of ordering fancy wine.) Winecab even has a smaller six-foot version of its wall “coming soon” that basically looks like a wine vending machine.

The idea of a vino vending machine isn’t that far fetched. Last year PanPacific unveiled a beer vending machine that could verify the buyer’s age before dispensing. Combine that type of technology with the higher end cuisine vending companies like Yo-Kai Express, Chowbotics and Piestro are trying to create and suddenly the idea of a robot wine sommelier doesn’t seem so silly.

Hmmmm… perhaps I’ll put one on my Christmas list for next year.

Brooklyn Dumpling Shop Adds Miso’s Flippy Robot to its Automat Concept

In addition to feeding you, the Brooklyn Dumpling Shop wants to create a “zero human interaction” experience. And as Restaurant Business reports today, the company is removing at least one human from its equation by bringing on Miso Robotics’ Flippy to work in its kitchen.

Brooklyn Dumpling Shop (BDS) co-founder Stratis Morfogen told Restaurant Business, “Miso is executing the full kitchen operation, which will be available in the third quarter 2021. Until then we will be using countertop portable versions in Q1 of 2021.”

What Morfogen seems to be referring to there is that eventually his company will install Flippy ROARs, which run on rails above the fry station. For now, his store will use the ground-based versions.

The Brooklyn Dumpling Shop, which is slated to open its first location in December (and, confusingly, in Manhattan), is bringing back the old Automat concept. Customers will order their meals via a kiosk or mobile app. Once ready, BDS stores each order in its own a temperature-controlled locker until the customer arrives to retrieve it.

The timing is certainly right when it come to having fewer humans involved in the preparation of your restaurant food. The COVID-19 pandemic is more widespread than ever and causing another round of restaurant dining room closures. Creating a restaurant where you don’t have to interact with another person helps reduce the vectors of human-to-human transmission of the virus.

Robots like Flippy are also finding accelerated interest from restaurants because they can work around the clock, don’t get sick and can create more social distance for employees inside a kitchen. White Castle recently announced it was adding ten more Flippys to its roster after an initial pilot earlier this year.

For BDS, the addition of Flippy plays into a bigger expansion plans for the company. As Restaurant Business wrote in today’s post, Brooklyn Dumpling Shop also signed a deal with Fransmart to franchise the brand with the possibility of adding 1,000 locations across North America.

Beyond Meat Launches Two New Versions of its Plant-Based Burger

Beyond Meat announced today two new iterations of its plant-based burger, with one version offering a more “meaty” experience and the other being a more nutritious version of it burger, according to the press release.

The new patties don’t have their own dedicated brand names, and in the press announcement are just described by their characteristics. One of the new patties, the juicier/meatier one, will have 35 percent less saturated fat than 80/20 beef. The other new burger, which is being billed as the Beyond’s most nutritious patty yet, will have 55 percent less saturated fat than 80/20 beef. Both new burgers will launch in “early 2021.”

Beyond hinted that this news was coming during its earnings report last week. On that call, Beyond CEO, Ethan Brown, said that its “Beyond Burger 3.0” would make the current version of Beyond “obsolete.”

As a quick aside, this use of “obsolete” is interesting. A little more than a year ago I wrote that as companies like Beyond and Impossible Foods continue to tweak their recipes, food was becoming more like software. From that piece:

The new version of Beyond Meat (and the sister product, Beyond Beef ground) is so much better than the first version. At least for meat eaters and flexitarians who were looking for something like meat, but less ethically and environmentally complicated. As Beyond and Impossible spend more on research and development, they will uncover new ingredients, new combinations and new manufacturing techniques to make their products even better and tastier.

The same can’t be said for traditional animal meat. Sure, there will be varying degrees of quality, but beef is going to always taste and feel like beef, chicken like chicken and pork like pork. The cow (or pig or chicken) is not going to become a different animal.

In other words, this new Beyond Burger 3.0 will one day too, become obsolete. And, there are chances that Beyond will develop the “New Coke” of burgers that people may not like as much. Something to keep an eye on, anyway.

Beyond has been on a product tear this year, debuting plant-based sausage patties, sausage links and meatballs. Oh, and it also helped McDonald’s create its new McPlant sandwich, though the exact details of that relationship remain cloudy.

The timing is certainly right for all these moves. Sales of plant-based meats are on the rise, and were pushed even higher thanks to the pandemic. As a result, both Beyond and Impossible have been in a bit of a back and forth throughout the year, releasing new products, launching D2C channels, vastly expanding at retail and growing internationally.

Given all the back-and-forth, will Impossible announce new iterations to its burgers? The year isn’t over yet…

Amazon to Start Delivering Groceries Direct to Your Garage

Amazon announced today that it will start delivering groceries directly to the inside of people’s garages as part of its expanding Key service.

Amazon’s Key In-Garage Delivery service allows Prime members with a myQ smart garage door opener to receive packages inside their garage when they aren’t at home. With grocery, that program will now include food in addition to packages.

The expansion of in-garage grocery delivery shouldn’t come as a surprise. Amazon has been making big moves into grocery over the past year. In October of 2019, the company made grocery delivery free for its Prime members. Then it opened two Go grocery stores in Seattle earlier this year before opening three Amazon Fresh supermarkets in Southern California.

Amazon is making all of these moves because online grocery is poised to become big business. The pandemic spurred record amounts of grocery e-commerce earlier this summer. More importantly, online grocery shopping is projected to be 21.5 percent of total grocery sales by 2025.

As such, giant retailers are all battling each other for your grocery buck. Walmart, for instance, has partnered with Instacart and launched its own Walmart+ service to rival Amazon Prime.

Both Amazon and Walmart had competing in-home delivery options at one point that allowed delivery drivers into your house while you’re out. But letting strangers into your garage when you’re away is probably more palatable than letting them into your kitchen. Placing groceries in your garage also means food won’t sit on your porch waiting to be either stolen or (less) damaged by the sun or other elements.

Starting today, Amazon’s in-garage grocery delivery is available to Prime members ordering from Whole Foods or Amazon Fresh in select areas of Chicago, Dallas, Los Angeles, San Francisco and Seattle.