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The Spoon

Daily news and analysis about the food tech revolution

Grocery

SNAP Participants Can Now Use Benefits to Pay for Grocery Delivery with Instacart

Instacart announced today that it has partnered with grocery retailer ALDI to allow those on Supplemental Nutrition Assistance Program (SNAP) to use their Electronic Benefits Transfer card to pay for and get groceries delivered.

The pilot program is launching first in Georgia where, according to Instacart’s announcement, 12.5 percent of the population is impacted by food insecurity, disproportionately affecting communities of color. The program will begin with 60 ALDI stores in Georgia before a planned expansion to more than 570 stores across Illinois, California, Florida, Pennsylvania in the coming months.

SNAP participants will be able to shop from ALDI through Instacart’s website or mobile app. When creating a profile, they can enter their EBT card information and a payment method, which will cover the cost of SNAP-approved food items. Taxes, tips and fees cannot be paid for with the EBT, so a second form of payment will also be needed. Once all that is set up, SNAP participants can shop for items and schedule their grocery delivery.

Online grocery shopping took off during the pandemic, as people were concerned about venturing into public places like grocery stores. Those fears have subsided somewhat, but grocery e-commerce is still projected to hit $250 billion in sales by 2025.

Instacart’s partnership with ALDI is the latest effort to bring more equity to the online grocery world. Low income communities are often food desserts that lack access to fresh food. The ability to shop online and have groceries delivered is one way to help those impacted by food insecurity eat more healthily. For the past couple of years, the startup All_EBT has been using Facebook Messenger and virtual Visa cards to allow SNAP participants to shop online. And both Amazon and Walmart have expanded their EBT online grocery shopping to more states.

The only downside to Instacart’s program is that it still requires SNAP participants to pay for taxes, fees and tips. Those three items alone can add up and that seems like it might be a barrier to get more people to use the program. While the EBT card couldn’t be used to cover these costs, it’s a little disappointing that Instacart, which has raised $2.4 billion, isn’t doing more to supplement them for the end user. It seems like Instart’s gig workers who do the actual packing and delivery, might skip jobs that don’t offer a healthy tip, especially since the pandemic has yet to subside in this country.

Simbe Robotics Announces New Tally 3.0 Shelf-Scanning Robot

Simbe Robotics today announced the Tally 3.0, the company’s latest generation of inventory management robot that now features better optical capabilities and more computing power on the edge.

Simbe’s Tally is an autonomous robot that wanders grocery store aisles to monitor product levels and detect misplaced items. By automating this task with robots, Simbe says stores get a more accurate, closer-to-real time snapshot of on-shelf inventory to make more informed stocking decisions.

Improvements to the Tally include added Intel RealSense depth and RGB cameras to help the robot “see” more products on shelves and stacked in coolers. The new camera system can read data from up to 30 inches away, which, according to the press announcement, brings the robot’s recognition accuracy to almost 99 percent without needing to slow down.

The Tally 3.0 has also pushed its computer vision and AI algorithms to the device itself. By running this additional processing on the edge, the new Tally can capture and provide data to store managers more quickly without needing to send as much information to Simbe’s cloud platform. This can be especially helpful for stores that may not have a lot of internet bandwidth at their location.

Simbe claims that its Tally detects up to 10x more out-of-stock items than manual audits, and averages a 20 percent reduction in out-of-stock items at the store level.

Brad Bogolea, Simbe Robotics Co-Founder and CEO,told me by phone earlier this month that his company saw a massive uptick in interest around August and September, spurred in part by the COVID-19 pandemic and subsequent panic buying outages. As Bogolea explained to me during an interview in August, stores experienced those outages because of bad supply chain data. As we wrote then:

The bad supply chain data, according to Bogolea, is a result of the manual inventory checks that stores currently carry out. If robots are used, shelf inventory count is more accurate and up to the minute (basically) because the robots can run multiple shelf audits throughout the day. More accurate data means that stores can respond faster when there is a sudden run on particular products to speed up replenishment.

While Bogolea obviously has a horse in this particular race, we’ve definitely seen broader adoption of robots to help maintain retail inventories. Bossa Nova’s shelf-scanning robot is being deployed to 1,000 Walmart locations, and Badger Technologies’ robot is being used at Woodman’s Markets across the Midwest.

Schnucks Markets recently announced that it expanding the use of Simbe’s Tally to 62 of its locations, and Giant Eagle is trialing Tally as well. Simbe offers the Tally for a monthly subscription costing between $2,000 and $4,000 a month per store, depending on the number of stores. Though when I spoke to Bogolea this month, he said that through better sensor technology and improved manufacturing, the company is continuing to bring that cost down.

Albertsons Pilots Temperature-Controlled Lockers to Expand Pickup Options

Albertsons announced today that it will pilot temperature-controlled lockers as an added pickup option for its grocery customers.

The lockers, delivered by Bell and Howell, are modular, can be installed either inside or outside and feature dynamic temperature control to accommodate various items placed in them. Customers will see this new “PickUp” option from participating stores when they shop via Albertsons website or mobile app. Customers placing an order will receive a unique code they use to unlock the self-serve locker.

Grocery retailers could soon be facing a double whammy of demand, given the continued use of e-commerce, thanks to the pandemic (and flu season!) and the impeding holidays. During the early days of the pandemic, we saw the strain as retailers couldn’t keep up with demand for grocery delivery. Though those systems seem to have improved, grocers like Walmart and Target have vastly expanded curbside pickup options to provide more flexibility for customers. Adding self-serve lockers gives customers even more options for getting their food while relieving increased demand pressure placed on the grocers.

Delivery lockers like the ones Albertsons is installing are starting to become a trend. The winner of last week’s Smart Kitchen Summit Startup Showcase was Minnow Technologies, which makes IoT-enabled food delivery lockers for places like offices, residential buildings and restaurants.

Amazon pioneered the pickup locker, many of which were at grocery stores, ironically. Though those were for general Amazon packages, it wouldn’t be a surprise to see Amazon adding similar temperature-controlled pickup lockers at its new chain of Amazon Fresh and Go Grocery stores.

The first Albertsons PickUp lockers will be installed at select Jewel-Osco locations in Chicago, with more coming to San Francisco Bay Area Safeways later this year.

Alibaba Spends $3.6 Billion for Controlling Stake in Chinese Supermarket Sun Art

Alibaba announced yesterday that it is shelling out $3.6 billion for a controlling stake in Chinese grocery store chain Sun Art. The investment will increase Alibaba’s stake in Sun Art to 72 percent.

The deal ups Alibaba’s existing stake (from 36 percent), and reinforces how the grocery sector is hot around the globe. As TechCrunch reported:

All of Sun Art’s 484 physical retail locations in China are now integrated into Alibaba’s Taoxianda and Tmall Supermarket platforms for groceries, as well as Ele.me and Cainiao, its on-demand food demand delivery app and logistics businesses, respectively. For customers, this means faster deliveries and larger selections, while giving Alibaba more sources of data it can use to improve its supply chain and business operations.

As they are both online retail giants, Alibaba and Amazon are often compared with one another, and it appears that the comparisons won’t end with grocery. Amazon, which purchased Whole Foods back in 2017, is also rolling out its own branded markets packed with technology meant to speed up the grocery shopping process — and gather more data as you shop to make it even faster.

As noted, the grocery sector overall has garnered a ton of interest since the pandemic. Online grocery shopping is projected to continue to grow to hit $250 billion in sales by 20205. Grocery delivery service, Instacart, has raised a ton of money and swelled its grocery gig worker “Shopper” ranks. Shipt has grown its delivery worker ranks as well in anticipation of the coming holidays. And third party delivery services like DoorDash and Uber Eats are expanding from restaurants into the grocery category.

With coronavirus cases back on the rise both in the U.S. and in Europe, it’s a safe bet that the spotlight on grocery won’t be going out any time soon.

Trax Launches its Computer Vision-Based Inventory System in the U.S.

Singapore-based Trax announced earlier this week that it has officially launched its Retail Watch computer vision-based inventory management system for grocers here in the U.S.

As we’ve covered previously, Trax retrofits stores with customized camera modules on ceilings and on shelves. These cameras snap a picture of the store’s inventory every hour and send those pics to Trax’s cloud, which uses machine learning to analyze each image to see which products are empty and if any products have been misplaced or mis-priced. A report is then sent to store management, who can then dispatch associates to re-stock and replace items.

According to this week’s U.S. announcement], the company has added autonomous robots to its tech stack, but didn’t specify their use or prominence in the overall offering.

A Trax rep told me last year that stores using its system saw a 1 percent bump in sales through improved item stocking. That 1 percent may not sound like much, but it adds up if used across multiple locations for a single retail chain. Plus, 1 percent promises to just come from better workflow of existing practices (inventory management), not adding new ones.

In addition to retailers, Trax’ also counts CPG companies among its customers. For CPG companies, Trax is more of an auditing tool to monitor shelf presence at stores to ensure they are getting what they paid for.

While keeping a close eye on store shelves may not sound sexy, it is becoming an increasingly competitive field. Walmart has developed its own computer vision-based inventory tool. And Bossa Nova, Simbe Robotics and Badger Technologies all make shelf-scanning robots.

For retailers, having more up-to-date inventory data can translate into more revenue. For consumers, it can mean fewer product outages should shocks to the system like pandemic panic buying occur again.

SKS 2020: Shipt CEO Says Company Not Interested in Robots

Shipt’s CEO, Kelly Caruso told audiences at the Smart Kitchen Summit today that her company is not interested in implementing robot or drone technology.

“Shipt will use technology in order drive efficiency,” Caruso said, “But that technology will be more in line with machine learning, AI and VR,” as opposed to something like drone.

Caruso continued by saying that Shipt, which is an independent unit of Target, was not going to replace their human shoppers (the gig workers who go into stores and make the deliveries). “They are critical to our success,” Caruso said.

That Shipt is focused on its human workforce is not that surprising, given that just last week the company announced it was adding an additional 100,000 shoppers to its ranks in time for the holidays. The additional headcount will bring the total number of Shipt Shoppers to 300,000.

It’s also not too surprising that Shipt will rely more on people than robots, at least for right now. While the pandemic has accelerated the desire for contactless technologies, autonomous delivery robots like those from Nuro and Starship are still in their infancy. There also remain a number of regulatory and technological hurdles that need to be overcome.

What we should keep an eye on is whether Shipt’s parent company, Target, adopts some sort of robot-powered automation to fulfill e-commerce orders. Target is a bit different from other grocery retailers because it sells so much more than foods. In other words, a micro-fulifllment center using totes and rails in the backroom of a Target can’t exactly grab a bunch of bananas and a patio furniture set.

Having said that, Shipt works with a number of different retailers, grocery and otherwise. As grocery e-commerce continues to grow into a projected $250 billion sector, both retailers and Shipt will adapt to serve customers’ evolving needs.

Tweet at Kroger’s Chefbot to Find Recipes for Ingredients You Have on Hand

The last day before you go back to the grocery store can be a difficult one when you’re trying to make a meal. What you have left in your pantry is often a random assortment of odds and ends that may or may not go together.

To help consumers avoid giving up and getting restaurant delivery, or, much worse, letting those random items go to waste, Kroger launched its new Chefbot today. Found @KrogerChefbot on Twitter, Kroger says this AI-powered tool will help you discover recipes that put those odds-and-ends foods to tasty use.

To use Chefbot, take a picture of three ingredients and tweet @krogerchefbot. The bot replies with what it thinks is in your picture. If it’s correct, it gives you a link to a page with recipes for your ingredients.

With the pandemic still keeping restaurants closed and winter being on its way, chances are good a lot of us will be eating at home a lot more in the coming months. So another easy meal discovery tool could be pretty useful.

However, at least based on my first test this morning, I’m not sure Kroger’s Chefbot is that tool. To give it a spin, I took a pick of tofu, penne pasta and an avocado and tweeted that pic to Chefbot. Maybe it’s first-day jitters, but Chefbot could only identify one item — penne, and that could be because the box had a giant “penne” written on the side. Chefbot also guessed that I had salmon, which… I’m not sure where it got that one as you can see from the picture below.

I thought I had even cheated a little bit by including the barcode and the tofu label.

Since it didn’t recognize my items, I listed them for Chefbot in a follow up tweet. It then sent me to recipe page that said “Sorry, your search for “avocado penne tofu” did not return any results,” so it gave me a bunch of recipes for chicken dinner recipes.

Kroger’s Chefbot is a lot like Whisk’s Cook Magic, though that service uses texts instead of Twitter, and it doesn’t try to identify pictures (it also seems like it might work better).

We are all for tech tools that help people make better meals at home and reduce food waste. But it seems like Kroger’s Chefbot may need to go back to culinary school to make its AI a little smarter.

Food Tech News: Greenhouse Gas Straws, Improved Amazon Grocery Delivery

If you’re ready for a break from all those political memes, here’s your chance to catch up on some final pieces of food tech news from the past week. A few stories that stood out to us include foodware made from greenhouse gases, improved Amazon grocery delivery, PBR’s THC-infused seltzer, and a limited-edition plant-based tuna melt.

Straws made out of pollution

Newlight Technologies, a biotech company based in Southern California, launched commercial foodware and fashion lines made from pollution-eating microorganism secretions. In the company’s Huntington Beach facilities, ocean water conditions are recreated in vats, and then microorganisms are added. Then the vats are purposefully polluted with collected greenhouse gases. Microorganisms then gobble up greenhouse gases like carbon dioxide, and their excretions are gathered to be dried and formed into pellets. The substance that is molded into pellets in called AirCarbon, and it is then melted and molded to make things like straws, utensils, and wallets. The end products are actually carbon-negative since the gases did not end up in the environment.

Amazon adds feature to improve grocery delivery

If you tried ordering a grocery delivery through Amazon at the start of the pandemic, you might remember checking for available slots around 10 times a day with no luck. Or you might have been one of those people who woke up in the middle of the night to reserve a slot. Amazon just announced a new feature as a solution to this problem: if there are no available slots at the moment, a customer can sign up to wait for the next open delivery time. With the new feature, customers will be given an estimation of when the next available spot will be then notified when it opens. They will have two hours to place an order.

Photo from Npr

Pabst Blue Ribbon releases THC-infused seltzer

Last week Pabst Blue Ribbon announced the release of its 4.2 percent hard cold brew coffee. This week, the company’s new THC-infused seltzer hit shelves. The lemon-flavored seltzer contains no alcohol and has 5mg of THC. The new beverage is targeted at consumers who are curious about cannabis and would prefer eating or drinking it rather than smoking it. Apparently the product is already popular, with both the first and second productions selling out quickly. Priced at $24 each, four-packs of the seltzer are available at dispensaries and online.

Veggie Grill launches Good Catch tuna melt sandwich

Gathered Foods, makers of Good Catch plant-based tuna, partnered with vegan restaurant chain Veggie Grill to release a limited edition tuna melt sandwich. Good Catch makes a protein-rich plant-based tuna from a blend of six legumes: peas, chickpeas, lentils, soy, fava beans, and navy beans. This January, Good Catch raised a $32 million Series B funding round, and Veggie Grill is the first restaurant that Good Catch has partnered with. The tuna melt sandwich will be comprised of a tuna salad, American cheese, pickles, and tomato on griddled rye bread, and it will be available until the end of the year.

Shipt Adding 100,000 Shoppers in Time for the Holidays

Shipt, an independent unit of retail giant Target, announced this week that plans to add 100,000 Shoppers to its delivery force, bringing the total number of Shipt Shoppers to 300,000 in time for the holidays (hat tip to Supermarket News).

Shipt Shoppers are the gig workers who actually go into the store, choose the items on an order, and make the deliveries. Shipt now works with 120 of retail partners to deliver groceries and other household goods. Unlike other delivery services — Walmart+, Amazon Prime, etc. — Shipt doesn’t require a subscription commitment to use the service, instead allowing Shipt users to pay per delivery.

That Shipt is swelling its ranks isn’t that surprising. As noted, the holidays are approaching, and with the pandemic still going strong, many people will be eating at home instead of celebrating with nights out on the town. COVID-19 has spurred record amounts of online grocery shopping this year, and the whole grocery e-commerce sector is expected to grow to $250 billion by 2025.

As such, Shipt isn’t the only delivery service bulking up. Instacart, which increased its Shopper ranks to 750,000 to meet our pandemic grocery needs, also bolstered its warchest this week, raising another $200 million in funding. Add to that other retailers like Walmart and Amazon making aggressive same-day grocery delivery moves. Shipt needs to ensure it has a sizeable enough workforce to fulfill any influx of orders and keep people from looking elsewhere for delivery slots.

The grocery delivery battle was already cutthroat enough, but the holidays could intensify that situation even more. I’m sure it’s a topic we’ll be discussing with Shipt CEO, Kelly Caruso, as she joins us for a chat at next week’s virtual Smart Kitchen Summit. Get your ticket today and get a glimpse at the future of food delivery!

Instacart Raises Another $200M as Online Grocery Shopping Trends Upwards

Online grocery shopping service Instacart announced today that it has raised another $200 million as part of a new financing round led by existing investors Valiant Peregrine Fund and D1 Capital Partners. This brings the total amount raised by Instacart to roughly $2.3 billion, and the company says its valuation now sits at $17.7 billion.

This new funding comes just months after Instacart raised $225 million back in June . But it also arrives at a time when COVID-19 has accelerated and normalized online grocery shopping. While grocery e-commerce has leveled off from its record highs earlier this summer, online grocery sales are expected to hit $250 billion by 2025.

Throughout the pandemic, Instacart has made numerous moves to keep up with demand for grocery e-commerce, including scaling its gig Shopper ranks (the people who do the actual picking and delivery) to 750,000 (not without some controversy, it should be noted).

But Instacart hasn’t just spent the past six months raising money and scaling its workforce. The company has partnered with Walmart to provide grocery delivery, expanded into the convenience category through a deal with 7-Eleven, and filed an intellectual property lawsuit against Uber’s Cornershop.

In a corporate blog post today announcing the funding, Instacart wrote:

We expect to deploy the new capital in a number of ways, including: product development focused on introducing new features and tools to enhance the customer experience, continued investment in Instacart Enterprise to support retailers’ end-to-end ecommerce needs, and further investment in Instacart Ads to help connect Consumer Packaged Goods (CPG) brands of all sizes to customers shopping online from their favorite local retailers.

As noted, online grocery is on track to do big business over the next five years. However, even with its massive warchest, Instacart’s success isn’t guaranteed as there are a number of players both entrenched in and entering the grocery delivery space. Amazon is expanding its real world grocery store presence, Kroger is busy building out big automated delivery centers across the country, and both Uber and DoorDash are getting into grocery delivery.

This is all good news for consumers. As these big well-funded names duke it out, they will all be improving their infrastructure and systems to make delivery easier, faster and better.

Kroger Partners With ClusterTruck for In-Store Ghost Kitchens

Grocery mega-retailer Kroger announced today it is launching ghost kitchens at two of its Kroger retail stores. The kitchens will be done in partnership with delivery-only restaurant service ClusterTruck and provide Kroger customers prepared meals free of delivery fees, according to a press release sent to The Spoon.

Kroger and ClusterTruck have been piloting their partnership since 2019. Through it, ClusterTruck sells its restaurant-quality meals via the Kroger Delivery Kitchen website.

To be clear, the ClusterTruck platform is not a tool for selling meals from other restaurants. Rather, ClusterTruck handles the entire meal delivery process, from conceptualizing a menu to ordering the ingredients, cooking the food, and getting meals into customers’ hands. The company also uses its own proprietary tech stack to update menus and process orders and payments. ClusterTruck, which is headquartered in Indianapolis, Ind. and has a sizable presence around the Midwest, brings this end-to-end delivery concept to the Kroger ghost kitchens. The ClusterTruck menu will be available via the Kroger Kitchen Delivery site.

According to today’s press release, the new concept repurposes roughly 1,000 square feet at each store (a typical Kroger store is about 160,000 square feet). This repurposed space will be dedicated to ClusterTruck staff, who will prepare meals for delivery and in-store pickup.

In theory, at least, that means Kroger would not have to rely on third-party delivery services like DoorDash and Postmates for any part of the delivery process for these ghost kitchens. Interestingly, this comes at a time when some of those third-party delivery services are trying to diversify their platform by offering grocery delivery.  

For Kroger’s two new in-store ghost kitchens, one will be located in Indianapolis and the other in Columbus, Ohio. These will follow an on-premises ghost kitchen already open in Fishers, Ind., and one in Dublin, Ohio, which is set to open later this year.

Today’s news is also another piece of evidence that the lines between grocery store and restaurant are overlapping. In addition to the aforementioned third-party delivery services shuttling some grocery orders to customers, Texas-based chain H-E-B recently opened a food hall that delivers restaurant meals, and grocery service Cheetah added restaurant meals to its available offerings. And though the blurring of the lines between restaurants and groceries is a direct result of the pandemic’s closing restaurants and keeping people at home, the trend is unlikely to reverse, even when restaurants can operate at full capacity once more.

One reason for the continued merging of grocery stores and restaurants is the surging popularity of ghost kitchens. Euromonitor recently predicted that the ghost kitchen market will be worth $1 trillion by 2030. That number factors in not just ghost kitchens for restaurants but also spaces for food producers and retailers. The $1 trillion figure may seem a little absurd now, but if more partnerships like the Kroger-ClusterTruck deal emerge, it may soon seem a less outlandish number and more a reality for both the restaurant and grocery industries.

SideChef Now Offers Shoppable Recipes Through Walmart

Smart kitchen platform SideChef revealed to The Spoon this week that it is now offering shoppable recipe fulfillment through Walmart.

Consumers using SideChef’s app and website can now buy all the ingredients for a recipe with one click and choose from more than 3,300 Walmart stores across the U.S. for curbside pickup or delivery.

Right now, there are 150 shoppable recipes available on SideChef, but that number will bloom to more than 10,000 recipes later this month and in time for the holidays. In addition to shopping directly for recipe ingredients, customers will be able to adjust serving sizes, swap brands, and convert cooking units, as well as see the percentage of each product used so they know what leftovers they will have.

After being dormant for a while, the shoppable recipe space is suddenly seeing a flurry of activity. In July Thermomix launched shoppable recipes through its Cookidoo platform. In August, Swedish shoppable recipe company Northfork (which also works with Walmart) raised $1.1 million. And just last month, Fexy Media sold off its Serious Eats and Simply Recipes to DotDash in order to focus more on its shoppable recipe platform.

Why are shoppable recipes suddenly so hot? Could be because that most of us are still stuck at home, thanks to the global pandemic. Online grocery shopping has shot through the roof, thanks to COVID and improved fulfillment systems from grocery retailers. In fact, the grocery e-commerce sector is expected to hit $250 billion in sales by 2025, so there is plenty of opportunity for shoppable recipe providers like SideChef to get in on the ground floor, as it were, to capitalize on this long-term growth.

Partnering with Walmart, and it’s massive retail footprint, could help push shoppable recipes more into the mainstream. With winter coming and more people stuck at home, there could be a greater need for recipe discovery to mix up any meal monotony that might have set in. Nearly 90 percent of U.S. population lives within 10 miles of a Walmart, so shoppable recipes is sitting right in the middle of a Venn diagram of audience and immediate action.

For it’s part, SideChef hasn’t been a slouch itself over this past year. The company’s app landed on Facebook’s Portal smart assistant, and launched a premiums subscription service. To learn more about SideChef and shoppable recipes, check out this deep dive interview with the company’s founder, Kevin Yu, over at Spoon Plus (subscription required).