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Daily news and analysis about the food tech revolution

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Is Personalized Nutrition Losing its Shine as Industry Star Grimmer Rides Off on a Harley?

Breaking news: In one of the craziest pivots of all time, Harley-Davidson announced today it would diversify from its core business of making iconic motorcycles to launch a product line of personalized beef and pork jerky products based on an individual’s microbiome.

Just kidding.

But I have to admit, when I read the headline that Neil Grimmer, the food industry star who sold his first startup to Campbell’s and became perhaps the most well-known face in the personalized nutrition space with his second in Habit, was leaving the food business to become the President of Harley-Davidson brand, I did a double take.

I mean, a hog business would make sense, but The Hog business?

From yesterday’s press release:

Harley-Davidson announced today that Neil Grimmer will join the company’s leadership team as President, Harley-Davidson Brand.

As Harley’s first-ever brand president, Grimmer will evolve the brand to support the company’s strategy to build the next generation of Harley-Davidson riders globally. As the company expands into new segments and new geographies and seeks to inspire diverse, new riders around the globe, he will be responsible for all aspects of the Harley-Davidson brand including product planning, marketing, retail, apparel and communications.

While the news is a surprise given Grimmer’s high profile in food and, more specifically, personalized food, it’s not surprising given the context of recent developments with Habit and Campbell Soup, Habit’s main shareholder.

In February, Campbell’s divested itself of Habit when it sold the company to Viome, a startup that uses AI to analyze a person’s microbiome.  While Habit’s at-home test-kit doesn’t currently analyze the microbiome, it looks like that’s part of the plan as the company is integrated with Viome.  Here’s a quote from Grimmer about the transaction:

“With the advent of big data and computational biology, I believe it’s possible to provide everyone in this country and around the world a personalized blueprint to achieve their health and wellness goals,” says Habit’s Founder and CEO, Neil Grimmer. “Viome analyzes the gut microbiome at a molecular level with advanced technology from the Los Alamos National Lab, which is a great competitive advantage and great foundation for creating the ultimate whole-body nutrition solution.”

So, is this move by Grimmer (and Campbell’s) a sign the once white hot personalized food space has lost its shine?

Not really. If anything, Grimmer’s departure seem more to do with Campbell’s struggles and changes at Habit than anything. Over the past year, the old-school soup brand got more old-school as it started to sell off its more experimental businesses in a retrenchment back to its core soup and snacks business. At the same time, Habit pulled back from its original push into creating and delivering personalized meals based on a person’s specific nutritional profile to simply creating personalized meal plans.

And with Campbell’s selling off Habit, it’s not that surprising a fast-riser like Grimmer would want to try something new. The biggest surprise it he’s leaving food since he’s spent the majority of his career there, but the reality is Grimmer’s built a name as an out-of-the-box thinker and charismatic leader, traits that he could no doubt transfer to a new industry.

Unless, of course, Harley really is planning on that new microbiome friendly jerky.

You can see Grimmer’s talk about the future of personalized nutrition in the consumer kitchen from the Smart Kitchen Summit here. 

Campbells Gets Into Shoppable Recipes

Campbell’s announced last week that it has added shoppable recipe functionality to its site, in another move that has the iconic soup brand playing a broadening role in our meal journey.

Available now, the shoppable recipes are created using Chicory’s AI technology. Once you pick a recipe on Campbell’s website, you can click the “Get Ingredients” button at the bottom, enter your zip code and select your preferred grocer for delivery. Right now, Campbell’s works with retailers including AmazonFresh, Peapod, Instacart, Meijer, Walmart, and Wakefern.

If there’s one big trend we’re following here at The Spoon this year, it’s the evolution of the recipe into a robust discovery and e-commerce platform. Online grocery shopping and same-day delivery mean that midday recipe inspiration can be turned into dinner that very night. Shoppable recipes are quickly becoming the industry standard as SideChef, Fexy Media and AllRecipes have launched shoppable recipe programs.

And now Campbell’s wants in on this action. With this move, Campbell’s doesn’t just want to be a part of your meal, it wants to be a vehicle that delivers your whole meal, and generate revenue along the way.

Prior to this, Campbell’s invested $10 million in meal kit company Chef’d, and then teamed up with them to form its own line of slow-cooker meal kits.

Meanwhile, companies like Chicory and Whisk are taking advantage of the shoppable recipe boom by providing the back-end technology which enables food and recipe brands to enable immediate purchase via thousands of recipes. In addition to Campbell’s, Chicory also provides shoppable recipe tech for brands such as Betty Crocker and Time Inc.

Chef’d Partners with Campbell’s to (Slow) Cook Up a New Range of Meal Kits

What do you get when you take a meal kit marketplace, cover it with the contents of a can of Cream of Mushroom, and let the two simmer over low? Probably something like this new partnership between Chef’d and Campbell’s.

Chef’d, the self-described “online gourmet meal kit provider,” has teamed up with Campbell’s to offer customers a selection of slow-cooker recipes featuring the canned soup giant’s products. This announcement comes 9 months after Campbell’s invested $10 million in Chef’d, making Campbell’s their largest strategic partner. 

As of now, Chef’d offers 12 meal options with their “Campbell’s Kitchen” series. Recipes range from Slow Cooker Pulled Pork Sliders to Slow Cooker Short Ribs—certainly an upgrade from green bean casseroles of yore (no disrespect). The meal kits come packed with preportioned ingredients: fresh protein, produce, dairy, seasonings, and any necessary pantry goods. Basically all that the customer has to provide is salt, pepper, and maybe olive oil (sadly, the slow cooker not included). A few meals, like the Slow Cooker Chicken Tortilla Soup, do include a can of Campbell’s soup, while others require Campbell’s products like Prego tomato sauce or Swanson’s broth.

If speed is your aim, this is not the meal kit selection for you. Many of the recipes take quite a while to come together, some requiring an extensive 7 hour cook time. This, however, is made easy by the inclusion of the slow cooker: one of the strongest selling points of the Chef’d-Campbell’s partnership. Of the 12 recipes on offer, half of them are made in the much-beloved appliance. (I should note that the recipes not made with a slow cooker take only 30 minutes to make.)

Slow cooker chicken cacciatore from Chef’d + Campbell’s.

The emphasis on the slow cooker is, at least in my mind, is what makes this partnership intriguing; Campbell’s and Chef’d are trying to carve out a niche in the claustrophobically crowded meal kit delivery sector by capitalizing on the almost cult-like popularity of the Crock Pot and Instant Pot. Slow cookers make it possible for home cooks, even those with limited cooking skills, to produce complex, tender dishes on a tight schedule.

Surprisingly enough, Campbell’s and Chef’d are the first meal kit operation to fully capitalize on the slow cooker’s popularity. Other meal kit services have recipes that can be made in the appliance, but no line of products intended to be paired with a Crock Pot or the like. Speaking of Crock Pot, that company offers their own line of delivery meal kits, but requires the customer to buy any meat or dairy. This is markedly less convenient than a Chef’d meal kit, which includes fresh, pre-portioned ingredients so that the customer has to do little more than open, dump, and (slow)cook.

So will this partnership boost sales for Chef’d? It’s tough to say. Meal prices range from $27 to $30 for two servings up to $61 for six servings, which, when compared with other meal kits (such as Blue Apron, whose meals average $10 per serving), isn’t exactly a bargain. It’s also tough for vegetarians and vegans, with only one meatless recipe on offer: a Skillet Vegetable Lasagna with Herbed Cheese, which isn’t even made in the slow cooker.

If it is popular, however, it would probably say more about the ingrained popularity of Crock Pots (and the like) than about either Chef’d or Campbell’s. Success would indicate that slow cookers aren’t going anywhere—not quickly, anyway.

You can hear about Ched’d in our daily spoon podcast.  You can also subscribe in Apple podcasts or through our Amazon Alexa skill. 

Campbell’s Evaluating Augmented Reality and Other Tech As It Navigates Digital Transformation

While cans of Campbell’s Soup may not look much different today from when you or I grew up, don’t be fooled. Executives at the storied food brand are spending lots of time nowadays figuring out how to navigate a fast-changing market increasingly disrupted by e-commerce, IoT and other digital technologies.

So at last month’s Smart Kitchen Summit, we decided to ask Campbell’s Matt Pritchard about the company’s digital transformation. As Campbell’s VP of Digital Marketing, Pritchard is one of the executives responsible for charting the course of the company as it prepares for the future.

One thing the soup company exec made clear is that need for Campbell’s to stay close to the consumer no matter what the technology.

“What we got to figure out is how we deepen our consumer connection and how do we become more meaningful in their life.”

That connection, according to Pritchard comes across the entire meal journey, whether that’s during planning, shopping or making meals.

“Where we got to focus on is what is the desired consumer journey, where they are trying to get to, and how do we create integrated experiences to play after that.”

Some of the ways in which Campbell’s touches the consumer through digital are expected, such as recipe apps. But some ideas suggested by Pritchard hint at some interesting potential directions for the brand and CPG products more broadly.

“Some could be a communication challenge where we make clear we are in recipe collection apps. But it could quite easily be in the center store where we’ve got those rows and rows of cans of soup, how can we create an experience with augmented reality that brings the nutrition panel to life.”

We’ve seen a variety of retailers embrace augmented reality as of late as the technology matures, interest from the brands themselves could extend the reach of the technology from store shelves into the home and around the cooking experience.

And it’s in the kitchen where Campbell’s sees much of their future technology evolution.

“Being in the heart of the connected kitchen is the purpose of today and one of those things we need to figure out,” said Pritchard.

What would that look like? One possible way is through smarter inventory management and replenishment.

“A consumer goes home, put some of our products in the pantry, then they use those products,” said Pritchard. “We’ve got to figure out how do we know they used those products so we can help with a replenishment scenario. So, I’m looking at things like sensor companies because they can figure out when a product has been in a fridge or a pantry.”

So while the soup may stay the same, the company behind the red and white cans is busy figuring out how to stay connected with consumers as the food journey becomes increasingly digital.

You can watch the entire interview with Matt Pritchard below:

Coca-Cola Jumps On Meal Kit Bandwagon With Chef’d Beverage Pairing

Amazon entered the meal kit delivery game and Blue Apron’s stock doesn’t look great, but that hasn’t stopped other competitors from continuing to diversify their offerings and partner with big names. The newest brand to jump into the fray is Coca-Cola, partnering with self-described “online gourmet meal kit provider” Chef’d to send consumers meal kits that include pairings of Coke or another Coca-Cola owned product with the meal.

According to an interview with Beverage Daily, Coca-Cola has dipped its toes into the dinner space before but the partnership with Chef’d is the first official commercial activity. The meal kits, called “Daily Meal Inspirations” include meals like Beef Short Ribs paired with a bottle of Coke to roasted chicken with Dasani sparkling water. The meals range from $27-$42 for two people (not the cheapest meal kit offering out there) and can be ordered on the Chef’d site.

Given a number of meal kit companies trying to capture consumer mindshare, it’s not surprising to see brands like Coca-Cola try to capitalize. But this partnership isn’t the most robust in terms of delivering something truly unique – and do consumers want a can of soda sent with their meal for a premium price? Maybe. It seems like Coke and Chef’d are trying to recreate the convenience of a restaurant experience – a meal and a drink – but instead of being delivered, fully prepared and cooked, by a waiter, it’s being shipped in a box in ingredient form to your front door.

Chef’d’s big claim to meal kit fame is their lack of a subscription model, allowing consumers to choose from over 300 online recipes and have them shipped to their doorstep as soon as the next day. The meals come portioned for two or four people and the company has offerings from gluten-free to vegan.

They do offer a meal plan – aka a subscription service – for customers who want a regular box delivered, but the on-demand style gives people who don’t want the commitment but do like the convenience or variety a meal kit service offers. So the new Coke meals will be available to consumers without a subscription attached, which may be one of the reasons the brand chose Chef’d as its first meal kit partner.

Chef’d has attracted other name brands in Big Food, including receiving a recent Series B investment round from Campbell’s for $10 million. Their total funding raised to date is just over $27 million.

VCs and Big Food Sink Money into Future of Food Startups

A clear sign of maturation for the startup food-tech sector is reflected by the entry of new venture capital from tradition VC firms as well as big names in the food industry. Along with an array of global venture capitalists, Campbell’s, Tyson Foods and General Mills have established multimillion-dollar funds to support new companies in a myriad array of future of food entrepreneurs.

Two areas within the food technology sector that are the focus for investment are meal delivery and grocery delivery. According to VC tracker, CB Insights, in its November 2016 report, the market shifted in Q3 2016 when 30 deals related to meal delivery surpassed the 27 in the grocery delivery sector. The individual investments for the meal delivery marketplace appear to be smaller than grocery delivery, as the total for grocery delivery was higher at $406 million, compared with $376 million for meal delivery. In addition, one deal for a meal-delivery startup, London-based Deliveroo, was for $275 million –accounting for 70% of that area’s Q3 dollars.

Others food-tech firms receiving large Q3 VC investments were Fresh Direct with $189 million and meal service Home Chef with $40 million.

Between the meal delivery and grocery delivery space lives another emerging space receiving more than its share of funding. Companies such as Blue Apron, which offer meal-kit subscriptions, sell pre-packaged groceries that align to specific step-by-step recipes. Satisfying the grocery and meal delivery crowds, meal kits offer the convenience of skipping the supermarket combined with the joy of simple cooking. Blue Apron has received more than $500 million in VC funding today, including money from Bessemer and First Round Capital. The company is reported to have more than a $1 billion valuation.

Not to be left behind, major food brands have set up venture funds which serve the dual purpose of protection against future market trends as well as smart capital management. Tyson Foods launched Tyson New Ventures in December 2016 to expand beyond its 5% interest in plant-based protein startup Beyond Meat. The Tyson fund will be managed by Mary Kay James, a former managing partner in DuPont Ventures. Her previous interest was in biotech and specialty food products. In the case of Tyson, a leading producer of poultry and meat, investing in new forms of proteins protects, and simultaneously positions, the company against major consumer shifts in eating habits.

In February 2016, New Jersey-based Campbell’s Soup Company launched Acre Venture Partners with initial fund totaling $125 million. To date Acre has invested in food safety startup, Sample6; agricultural data provider, Farmers Business Network; urban farming’s Back to the Roots and home juicing manufacturer Juicero. As with other food companies investing in startups, this lineup provides Campbell’s access to either distribution opportunities, new channels or expanded uses for its existing products.

In October 2105, General Mills launched 301 Inc, a business development and funding arm focused on early-stage food companies. To date, 301 Inc has invested in Beyond Meat, Kite Hill (vegan non-dairy products), and Tio Gazpacho, a bottled-soup manufacturer.

Campbell’s Soup Co Invests In Food Tech Startup Aimed At Nutrition And Wellness

Campbell’s Soup Co. is arguably one of the most forward-thinking food giants in the industry today, at least when it comes to food tech investment. Earlier this year, Campbell’s announced the creation of Acre Venture Partners, the VC arm it plans to use to “aggressively participate in the disruption in food trends.” The fund includes $125 million to invest in startups that are looking at new approaches to food growth and development and using technology and innovation to change the food industry.

This week, Campbell’s announced its investment in Silicon Valley-based tech startup Habit. Habit is a newly launched company that will deliver a “complete personalized nutrition solution” based on factors like someone’s biological makeup and metabolism. The CEO of Habit, Neil Grimmer, is also the founder of Plum Organics, a company that he sold to Campbell’s back in 2013. Despite having the VC fund, Campbell’s invested directly in Habit and is the startup’s sole funder, according to a Habit spokesperson.

The company will deliver a testing kit to users and together with the app, users are instructed to gather DNA samples to ship to their certified testing lab. The data collected is combined with the user’s reported lifestyle and personal goals and thrown into their priority algorithm known as the Nutrition Intelligence Engine. The algorithm spits out recommendations for what to eat from registered dieticians and a wellness guide along with fitness goals.

But the company doesn’t just stop at recommendations – they’ll also ship you a Habit meal kit, based on your personal nutrition blueprint and give you access to certified wellness coaches to help you meet your goals.

“The entire food industry is being transformed by the fusion of food, well-being and technology,” said Denise Morrison, Campbell’s President and Chief Executive Officer. “Habit is well positioned in this wired for well-being space and poised to lead the personalized nutrition category.”

Meal delivery is a crowded space within food tech, but the areas of food data, transparency and nutrition are growing, and the combination of the two is a unique model. There are a lot of questions about how Habit – and perhaps Campbell’s, as its major investor – might use that data and how willing consumers are going to be to give it up so freely. But having deep, biological insight into what types of foods your body needs to be healthy is a pretty compelling message. Habit is currently collecting interest via a waiting list, and promises to start shipping in beta in January 2017.

Read more about Habit and Campbell’s investment.