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The Spoon

Daily news and analysis about the food tech revolution

Grocery

How a Materials Scientist Invented an Edible Way to Keep Your Avocados Ripe for Longer (Spoon Plus)

Apeel just raised $250 million from investors including celebrities like Oprah Winfrey and Katy Perry. I spoke with Rogers a few days before they announced the funding to learn more about how he, a materials scientist, got the idea to switch from creating solar panels to developing produce technology. We also got into bigger discussions around food waste, how tech is mitigating it, and the ways in which COVID is affecting our relationship with food (and waste).

The interview is an exclusive offering for Spoon Plus members. You can learn more about Spoon Plus here. 

Amazon Adds 11 More States Where SNAP Participants Can Buy Groceries Online

Amazon announced yesterday that it has expanded the number of states in which supplemental nutrition assistance program (SNAP) participants can buy groceries online through the retail giant. (h/t TechCrunch)

In a blog post yesterday, Amazon wrote:

Eleven states have been added the U.S. Department of Agriculture pilot enabling Amazon customers to use SNAP benefits to purchase groceries online (Colorado, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, Vermont, Virginia, West Virginia, and Wisconsin). We are committed to making food accessible through online shopping and we look forward to adding more states soon. Read about the program.

Amazon now offers SNAP purchasing in 25 states, plus the Washington DC area. Through the program, SNAP participants can pay for groceries online using their electronic benefits transfer (EBT) card. Other retailers in the program have included Walmart and ShopRite.

The ability for SNAP participants to purchase groceries online has always been an important issue. Many low-income families live in food deserts and are unable to access fresh, healthy food. The ability to have food delivered can not only lead to healthier lifestyles but also helps provide at least some equity when it comes to digital access to online grocery shopping.

The ability to shop for groceries online became more important these past couple of months as the COVID-19 pandemic made trips to the grocery store potentially deadly. People without access to delivery or curbside pickup are putting themselves at risk of contracting the disease.

Another startup looking to help SNAP participants get their groceries more safely online is All_EBT. That company uses a combination of virtual Visa cards and Facebook Messenger to allow people to purchase SNAP approved items from any online retailer.

There is still a lot of work left to be done when it comes to issues around food and digital equity, and expansion of services like Amazon’s are good first steps.

With $6.6B in Sales, Online Grocery Hit Another Record in May

The global pandemic and subsequent lockdowns around the country spurred another record month for online grocery shopping. According to a results from a new Brick Meets Click/Mercatus Grocery Survey released today, online grocery sales hit $6.6 billion in May, up 24 percent from April (which was a record month as well).

The online survey was conducted from May 20 – 22 with more than 1,700 US adults, and showed total online grocery orders grew 18 percent month-over-month to 73.5 million in May, up from 62.5 million in April. In the press announcement, Brick Meets Click said that this increase was driven by increased capacity as retailers added more time slots for fulfilling orders to keep up with demand.

The number of households ordering groceries online increased as well, with 33 percent (roughly 43 million customers) saying that they shopped for groceries online during the previous 30-day period, up slightly from 31 percent in April.

Households also increased the number of orders placed and their total spend per order in May. Households placed an average of 1.7 orders for either delivery or pickup, up 10 percent from 1.6 orders in April. And the average order was $90, up $5 from April. Brick Meets Click attributed the spend increase to higher consumer prices that started in April, improvements to product availability and customers getting more comfortable with online grocery shopping.

Despite all that growth and record setting, the question remains as to how permanent these new behaviors are. States are starting to ease their social distancing restrictions, allowing people to be out and about more freely. And Bloomberg reported on a McKinsey survey yesterday that showed 7 in 10 people still shopped at the grocery store during the pandemic. As Bloomberg noted, online grocery still suffers from clunky ordering processes, entrenched habits and the fact that people are fussy and like to pick their own produce.

Given the relaxations of lockdowns, it’s unlikely we’ll see another record month for June. Rather, we should anticipate a drop. How big of one, we’ll have to wait and see.

We Tried the Plant-based Chicken Nuggets from High Tech Startup Rebellyous

Even though I technically have more time to cook during quarantine, there are some days when my motivation to scrounge up a meal is exactly zero. On those days, I turn to my freezer — frozen burritos, pre-made meals, and ravioli are always ready to go when I need them. Now I have a new staple to add to my freezer: plant-based chicken nuggets from Rebellyous Foods.

If you’re not familiar, Rebellyous is a plant-based meat company that’s reinventing manufacturing technology to make meat alternatives more scalable. After launching in 2017, the Seattle-based startup began selling its first product, a plant-based chicken nugget, to hospital and office cafeterias.

But with COVID-19 essentially closing down their marketplace, Rebellyous quickly pivoted to begin offering its nuggets on retail shelves. Last week the vegan nuggets hit the freezer sections of several small retailers in the Seattle area. A pack of 30 nuggets costs $5.99. The plant-based nuggets have a protein content comparable to regular chicken nuggets and are meant to be just as easy to prepare — whether in a corporate dining hall or a home kitchen.

A bag of Rebellyous plant-based nuggets. [Photo: Catherine Lamb]

This week I was able to put that assertion to the test when I received a sample of Rebellyous’ frozen nuggets. I reached for the nuggets when I was feeling especially hangry, hoping that they wouldn’t take forever to cook. The package suggests three cooking methods: Bake, Pan Fry, or Deep Fry. It explicitly notes not to consume the nuggets raw or microwave them, which I assume would be bad for their texture.

I decided to bake my nuggets. I preheated the oven to 425°F, shook out a some nuggets onto a bare baking sheet, and popped them into the oven. Eight minutes and one flip later, and the nuggets were ready. They did stick to the baking sheet a little bit, so next time I would line the pan with parchment paper.

I’ve tasted Rebellyous’ nuggets before, so I knew what to expect. But in the past they’ve always been prepared by an air fryer; I was skeptical that my oven would provide the same crunchy exterior.

Happily I was wrong. The nuggets had a crisp, crunchy coating and a juicy interior that almost exactly mimics the nuggets I grew up eating in my elementary school cafeteria. It’s almost uncanny. The nuggets were tasty enough that I didn’t even feel the need to use a dipping sauce, though a side of barbecue would have been delicious.

Rebellyous’ nuggets post-bake. [Photo: Catherine Lamb]

I just enjoyed one serving, which is six Rebellyous nuggets. One serving has 160 calories, 7 grams of fat and 14 grams of protein (Rebellyous uses wheat protein). The serving didn’t look like a whole lot on my plate, but they actually filled me up quite nicely. Since they have a relatively low calorie and fat count, you could double the serving size or just eat them as a snack.

Rebellyous is certainly heading to retail at an opportune time. Sales of plant-based meats have increased dramatically during the pandemic, as meat prices spike and people search for healthier foods. A handful of plant-based companies have also raised funding over the past few weeks, including Rebellyous itself.

Rebellyous is actually cashing in on three food trends right now: plant-based meat, comfort food, and frozen food. Consumers are looking for food that keeps well, prepares easily, and satisfies. Rebellyous ticks all of those boxes, and has the bonus that it’s kid-friendly (a boon for parents working from home).

I may not be a kid, but after trying them I’m a fan of Rebellyous’ nuggets. The fact that they cook in ten minutes, require no prep, taste satisfying and provide a hearty serving of protein means that they’ve definitely earned a spot in my freezer rotation.

Rebellyous’ nuggets are only available in the Seattle area for now. If you buy a pack, please leave us a comment and let us know what you thought!

Apeel Sciences Raises $250M to Extend Produce Shelf Life

Apeel, the startup that makes a natural coating to extend the shelf life of fruits and vegetables, announced today via a release emailed to The Spoon that it had raised $250 million in fresh financing. The round was led by GIC with participation from Viking Global Investors, Upfront Ventures, Tao Capital Partners and Rock Creek Group. Celebrities Oprah Winfrey and Katy Perry have also joined as minority, non-participatory investors.

Founded in 2015, Apeel is fighting the global fresh food waste problem by creating a foodsafe powder coating out of plant oils which, when applied to produce, can double or triple their lifespan. The “peel” functions as a barrier to keep water in and oxygen out, fighting the two main causes of produce rotting. Each fruit or vegetable has its own proprietary coating.

Currently, Apeel avocados are available in retailers in the U.S., including 1,110 Kroger stores. Last year the company launched its Apeel-treated avocados on store shelves in Denmark and Germany. In Germany it also offers coated mandarins and oranges.

Apeel’s CEO James Rogers also told me in an interview last week that, in addition to citrus and avocados, the company also has coatings for asparagus and cucumbers in the works.

Extending the lifespan of fresh produce can not only cut down on food waste but can also equate to major savings for retailers. So it’s no surprise that Apeel isn’t the only company working to make your fruit stay fresh for longer. StixFresh has a sticker that can extend produce shelf life by two weeks, and Hazel Technologies makes packaging inserts for bulk fruit and vegetable harvest boxes to slow ripening. Perhaps most similar to Apeel, Italian company Sufresca also makes an edible coating which it claims can extend produce shelf life by several weeks.

According to Rogers, Apeel distinguishes itself by using only edible, natural elements to “copy the way that Nature does it.” They also develop different coatings for each fruit or vegetable to optimize its lifespan. “Every piece of produce is a living, breathing thing, [and] it needs its own optimized little microclimate in order to survive optimally,” said Rogers.

Food waste is one of the leading contributors to global warming, and fresh foods — like fruit and vegetables — are one of the most common foods to go to waste. Of course, wasting food is also bad news for a grocery store’s bottom line — and consumers, for that matter.

Thus far, both consumers and grocery stores seem to be on board by Apeel’s products. Rogers told me that when markets put signs indicating that their produce has been coated with Apeel, they see double-digit increases in sales. “That starts to make sense when you realize that a lot of people are pricing waste into their purchase decisions.”

Today’s raise brings Apeel’s total funding to $360.1 million. With its new capital, Apeel will continue to focus on expansion in U.S. and Europe, but it will also allocate funds to support its initiatives in Sub-Saharan Africa, Central and South America.

With Moscow Store-Within-a-Store, Zippin Shows New Solution for Grocers to Go Cashierless

Zippin announced today that it has opened its first cashierless store-within-a-store at a Azbuka Vkusa supermarket in Moscow. While this marks further international expansion for Zippin, the bigger story is that Azbuka Vkusa’s implementation could model a half-step into cashierless — and contactless — checkout for big grocery store chains.

Zippin is among the many startups making cashierless checkout for retail, which allow shoppers to walk into a store, grab what they want, and go, getting charged automatically as they exit. Zippin’s approach is similar to Amazon Go’s in that it uses a combination of both cameras and shelf sensors to monitor what people take. Last year, Zippin launched its pre-fab Cube, which has all the pieces and technology to make it easier for a store to open up a pop-up cashierless store-within-a-store.

But real estate in an urban environment like Moscow is at a premium, so rather than carving out floor space for a Zippin Cube, Azbuka Vkusa converted one of its existing aisles into a mini-store. The market cordoned off one end, installed cameras on the ceiling, retrofitted the existing shelves with sensors and installed a special QR code-scanning turnstile. Azbuka did all of the implementation with Zippin managing the process remotely.

What makes this interesting is that it’s a proof of concept for big grocery store chains looking to get into cashierless checkout. Grocery stores are like battleships; they can’t turn on a dime, and retrofitting an entire store takes a lot of time and resources, both of which are in short supply during this COVID-19 pandemic.

But the ability to carve out a small part of an existing store, retrofit existing shelves, and stock it with a mix of popular items people want to grab quickly could split the difference. This would allow bigger stores to start implementing cashierless without massive overhauls.

In addition to providing more convenience for shoppers, cashierless checkout is also contactless, an important word in the time of COVID-19. “Since [the] pandemic broke out, we’ve seen a clear increase in inbound inquiries,” Zippin CEO Krishna Motukri told me by phone this week, “The contactless aspect of it is a huge bonus, and probably the main driver of it now.”

Grocery stores are definitely investing in new ways to protect their frontline workers right now and a cashierless section could be an arrow in that particular quiver.

Zippin’s new Moscow location is the latest news in what has been a busy couple of weeks for the cashierless checkout space. Last week, Shopic raised $7.6 million for its tech solution, and this week, Standard Cognition acquired Italian startup, Checkout Technologies.

It’s a pretty safe bet that there is more news on the way as grocers and other retailers experiment and implement new ways of coaxing a nervous public back into their stores.

Imperfect Foods Raises $72M to Expand Delivery of Ugly Produce and Pantry Goods

Imperfect Foods, the company that delivers surplus and “ugly” food directly to consumers, announced today that it had closed a $72 million Series C funding round. The round was led by Insight Partners with support from existing investors, including Norwest Venture Partners. This bumps the total amount raised by Imperfect up to $119.1 million.

You may have seen Imperfect Foods (formerly known as Imperfect Produce) boxes sitting on stoops around your neighborhood. Since 2015, the company has been delivering boxes of surplus and cosmetically imperfect produce — that is, fruits and vegetables that would normally go to waste — to consumers in curated boxes. The produce is discounted up to 30 percent compared to grocery store prices.

In an intriguing pivot, last year the company diversified into other grocery categories, like dairy, meat, and pantry items. Some of these were still “imperfect” products, like coffee beans that were too small or misshapen almonds, but others were not. Last year the company also launched a pilot program to pick up their delivery boxes for reuse.

With its new funds, Imperfect will continue to bring its grocery delivery to more areas across the country and add on to its fulfillment centers.

I received Imperfect boxes for a little over a year but discontinued them since, as a single person, I couldn’t use enough of my box to justify the cost. But ever since the pandemic has had me sheltering in place and dreading trips to the grocery store, I’ve missed my weekly boxes of produce and staples.

In fact, COVID-19 actually presents a valuable opportunity for Imperfect Foods. Surveys show that up to 60 percent of consumers are “fearful” of shopping inside grocery stores, while sales of online groceries are skyrocketing. Imperfect can provide the online grocery experience with a side of good conscience since you’re also cutting down on food waste.

Imperfect isn’t the only company to deliver ugly fruits and vegetables to consumers. Misfits Market also ships boxes of cosmetically flawed produce to consumers. Theirs is all organic, but the key difference is that you can’t choose what’s in your box, while Imperfect offers customization options.

In a time when consumers are relying on convenience and valuing their health perhaps more than ever, it’s a prime time for delivery services like Imperfect. Clearly investors feel the same way.

Ahold Delhaize Launches Cleaning Bot Challenge to Find a Robot Floor Scrubber

Ahold Delhaize is on the lookout for a floor scrubbing robot, and it wants your help. Well, it wants your help if you’re a small startup that already has an existing prototype or MVP of a floor cleaning robot.

The Dutch grocery giant’s AI for Retail (AIRLab) unit kicked off the Cleaning Bot Challenge today in an effort to automate the process of cleaning store floors. Ahold Delhaize described the problem in a post kicking off the challenge:

In supermarkets, floors are cleaned once a day before each store opens. It takes cleaning personnel an average of two hours every morning to sweep the floors for dirt, mop the hard-to-reach corners, and then go through the store with a ride-on floor scrubber. It is certainly both a time-consuming and labor-intensive activity. 

Ahold Delhaize’s AI for Retail (AIR) Lab is, thus, looking for a partner that can automate this process by creating an autonomous cleaning robot.

To be considered for the Cleaning Bot Challenge, participants must have a team of at least two co-founders and have an existing prototype of the robot. That robotic solution must be able to scale and the founders must be able to pitch their product in Dutch or English.

It’s not surprising that Ahold Delhaize is looking to automate cleaning its floors. Repetitive, manual tasks like floor scrubbing are perfect for robots. And in the age of COVID-19, cleaning is more important than ever, so you want to ensure the process is consistent and repeatable (two more robot attributes).

It’s also not surprising because Ahold Delhaize has basically gone all-in on robots. Last year the company’s GIANT/MARTIN’s and Stop & Shop stores ordered 500 aisle roaming robots to scan for messes on the floor. Ahold Delhaize has also partnered with Takeoff to build robotic micro-fulfillment centers at some of its retail locations. And Stop & Shop even installed a Breadbot at one of its locations.

What is a little surprising, is that given all of these robo-connections and experience, the company is holding a public contest to find a floor cleaning robot, especially since there are already floor scrubbing robots on the market. A year ago, Walmart announced it was deploying Brain Corp.’s autonomous floor scrubbing robots to 1,500 of its locations.

Were none of these solutions sufficient? What was lacking from existing robot partners that spurred a global hunt for something better? We reached out to Ahold Delhaize to find out more.

In the meantime, if you have a cleaning bot up your sleeve, you have until July 7 to complete your application.

Would You Prefer to Stand in a Virtual Line When Going to the Grocery Store?

One of the ways grocery stores have dealt with the COVID-19 pandemic is to limit the number of shoppers that can physically go into the store at a given time. As a result, people are standing in a very long lines outside some supermarkets as they are spaced a socially distant six feet apart from each other.

Even with social distancing, you’re still surrounded by other people who may or may not be wearing a facemask, depending on where you live it could be hot (or cold), and everyone else in line is probably just as on-edge about the whole situation as you are. But what if you could just stay in the comfort of your own car while you wait your turn? That’s the idea behind Safe Queue, an app borne out of the IBM Call for Code Global Challenge.

Created by Los Angeles-based developer David Chura, Safe Queue is a mobile app that creates virtual lines to gain entrance into stores. Once downloaded, a user puts in the address of the store they want to go to when they are within 1,000 feet of the store, the app places them in a virtual line. A unique QR code is sent to the user along with updates about their place in line. When its (finally) their turn to go in, they present the code to store personnel who scan it for authenticity.

Having this virtual queue could be useful for people with disablities that make it difficult for them to stand for long periods of time, or for people with small children. Or for anyone who just wants grocery shopping to be a little less stressful.

At the same time, Safe Queue, and so many other things about this pandemic, highlights issues around equity and inequality. People with smart phones can wait in their cars, people without are stuck standing in line. And also, how would it work if you have a mix of people just standing in line without the app and people who do have the app. How is the place in line determined then?

Hopefully, these are issues that Chura is working on. There are plans to release Safe Queues as an open source project as well as through the Apple and Google app stores. An IBM spokesperson told me that if enough people downloaded the app, it could be used to create a grass roots-style call for businesses and governments to adopt the virtual line technology. But that seems like a bit of a stretch to me. I’m not sure how many people would download an app that wouldn’t work until enough people adopted it. It seems like something stores would have to embed into their native apps and offer to people (after working through the equity issues).

Having said that, I applaud Chura for his creative thinking in trying to solve a problem people face in this pandemic. Now we’ll just have to see if stores and consumers line up to try Safe Queue out.

Shopic Raises $7.6 Million Series A for its Cashierless Checkout Tech

Shopic, and Israel-based startup that creates cashierless checkout solutions for medium to large grocery stores, announced today that it has raised a $7.6 million Series A round of funding. The round was led by IBI Tech Fund, with participation from existing investor Entrée Capital, and brings the company’s total funding so far to $11 million.

Cashierless checkout systems use computer vision, shelf sensors and artificial intelligence to allow shoppers to walk in to a store, grab what they want and leave, getting charged automatically as they exit.

We weren’t familiar with Shopic before the company emailed us their announcement this morning. Based on Shopic’s website, it appears that unlike other cashierless checkout startups, Shopic’s system does not rely on retrofitting a store with banks of computer vision cameras to monitor what shoppers purchase. Instead, it looks like Shopic uses a shopper’s mobile phone, which they use to scan items as they shop, and there is a component that monitors the shopping cart itself to ensure that there is no shoplifting.

Shopic also allows stores to communicate back to the customer as they shop. So, based on what someone is buying, the store could offer enhanced product information or push customized sales and promotions in real time. Shopic also says its system can also help stores optimize shelf stocking and in-store behavior.

With its fresh round of capital, Shopic says that it will expand deployments of is platform to existing and new customers across Europe and North America, though it will be facing plenty of competition.

Amazon is big pioneer of cashierless checkout with its Go and Go Grocery stores. A host of startups also offer solutions to supermarkets around the world. Trigo, Grabango and Zippin all use Amazon-like systems of cameras and computer vision to keep track of what people are buying. But Shopic seems to be more of a blend between the mobile phone aspect of Swiftly and the cart monitoring of Caper.

Shopic’s fundraise has also come at a unique time. The COVID-19 global pandemic is re-shaping the grocery store experience as retailers attempt to reduce human-to-human contact. As such, preventative measures like facemasks are being worn by store employees and plexiglass shields are going up in front of cashiers.

But at some point, for the people who aren’t too scared to go into the grocery stores themselves, a contactless cashierless checkout might be the best option. You don’t have to interact with a cashier or touch a credit card terminal that potentially hundreds of other people have touched that day.

For sure, there are still questions around equity and jobs that go along with widescale adoption of cashierless checkout. But as the virus continues its rampage and even resurges in some areas, grocery retailers could accelerate more contactless options like cashierless checkout to keep shoppers and workers safe.

An earlier version of this story said Shopic had raised a total of $8.45 million, based on data in Crunchbase. Shopic got in touch with us and provided the accurate dollar figure.

Rebellyous Launches Plant-based Chicken Nuggets in Seattle Grocers

Rebellyous Foods, the Seattle-based plant-based meat startup, announced today that it would begin selling its meatless chicken nuggets at Seattle retailers next week.

Since it was founded in 2017, Rebellyous has been selling its plant-based chicken wholesale to spots like corporate cafeterias, universities, and hospitals in the Pacific Northwest and Bay Area. Obviously, most of those were crowded gathering spaces, but are now shut down or severely limited due to social distancing and shelter-in-place orders.

As a result, Rebellyous has pivoted to move into CPG. Last month, as Rebellyous announced its $6 million Series A funding round, the company’s CEO Christie Lagally told me that they were accelerating their retail launch in response to COVID-19.

Next week, Rebellyous nuggets will make their retail debut in the freezer section at Leschi Market and Vegan Haven in Seattle. The nuggets will be sold in one-pound packs with 30 nuggets each and cost $5.99. The package includes instructions to bake, pan fry, or deep fry (it warns you not to microwave them).

Up next, the company will expand to other West Coast retailers and launch new products. Lagally told me last year that they have a plant-based chicken patty in the works. At the same time, Rebellyous is still working towards its overall goal; to improve plant-based meat manufacturing technology to make alternative protein more scalable and affordable.

If you’re in the Seattle area and try out Rebellyous’ nuggets for yourself, drop us a line and let us know what you think!

Survey: Spurred by COVID-19, Online Grocery to Grow by 40 Percent in 2020, Hit $38B in Sales

It seems obvious that mandated sheltering in place because of a global pandemic has been a big driver of online grocery sales. But thanks to a new survey from Coresight Research, we now have some numbers to back that obvious assertion up, and show how big grocery e-commerce is getting.

In its US Online Grocery Survey 2020 (subscription required), Coresight predicted that the online grocery sector will grow by roughly 40 percent this year. The report states “That would equate to almost $38 billion of online food and beverage sales in 2020, or around 3.5% of the total market.” That’s up from 2.6 percent in 2019.

As you can probably guess, the coronavirus has spurred this surge in e-commerce. Coresight’s survey found that 49 percent of respondents said they started buying or were buying more groceries online because of the outbreak. It should be noted that this survey was conducted in mid-March, relatively early on in the mandated shelter in place orders. Those numbers may have actually gone up in April as the virus continued to spread.

In addition to more people buying groceries online, people are buying more types of items (produce, meat, alcohol) online. Coresight found that people are buying across an average of five different grocery categories online, up from 4.4 categories last year. Coresight says this indicates people aren’t just buying one-offs, but doing full-basket shopping online.

And finally, it looks as though demand for online commerce could remain strong over the next year. Coresight found that while 52 percent of respondents said that they had bought online groceries in the past 12 months, 62.5 percent expect to do so in the next twelve months.

Coresight’s numbers add to a growing body of market research that illustrate just how online grocery shopping has accelerated during the COVID-19 pandemic. Earlier this month, Brick Meets Click reported that grocery e-commerce sales hit $5.3 billion in April. NPD Group found that third-party grocery delivery sales jumped nearly 300 percent in April alone. And last month, a C+R Research study found that 60 percent of US shoppers were “fearful” of physically going into the grocery store.

Grocery stores have been considered essential since the start of this pandemic, so they have remained open the entire time (thank you, grocery store workers!). But even though some states are relaxing their stay at home restrictions, grocery stores are implementing new measures to help curb the spread of the virus. Going forward, grocery shopping isn’t going to be what it was just a few months ago. Plexiglass shields at checkout, fewer people in the stores, masks worn by employees and customers. The in-store experience may just make shopping at home online more attractive.