• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Skip to navigation
Close Ad

The Spoon

Daily news and analysis about the food tech revolution

  • Home
  • Podcasts
  • Events
  • Newsletter
  • Connect
    • Custom Events
    • Slack
    • RSS
    • Send us a Tip
  • Advertise
  • Consulting
  • About
The Spoon
  • Home
  • Podcasts
  • Newsletter
  • Events
  • Advertise
  • About

peapod

February 11, 2021

Founders of PeaPod Launch Sifter, a Grocery Site for People with Dietary Restrictions

The founders of one of the earliest online grocery sites, PeaPod, announced this week the launch of a new grocery platform called Sifter (hat tip: Grocery Dive). The new platform is essentially an online shopping cart that allows customers to put together grocery lists based on dietary preferences, allergens, and medical conditions, and send that list on to partner retailers for fulfillment.

On Sifter’s website, shoppers select different “SiftTags,” which allow them to select different dietary and allergen filters. If you are managing a health condition, like IBS or diabetes, for example, the site then populates items that are identified as acceptable for these conditions. The RecipeSifter feature on the site enables a customer to paste in the URL of different recipes, and the site will determine if the recipe is acceptable for your dietary preferences, allergens, medical conditions, etc. Sifter will then show all of the ingredients listed in the recipe, and allow you to add these items to your cart.

Once grocery items are selected on the Sifter’s site, the customer is then directed to the retailer’s site to complete the purchase. As of right now, Sifter has partnered with retailers like Stop & Shop, Giant Foods, Walmart, and Amazon to fulfill the grocery orders. Though, it should be noted, a single retailer might not be able to fulfill all of the items on a particular list.

Since the start of the pandemic in early 2020, the use of online grocery shopping has seen a spike, and it is predicted that by 2024 that online grocery shopping will be adopted by 55% of consumers in the US. Sifted is one of a crop of new companies looking to help people with dietary restrictions get their food. Through Dinner Daily, customers are offered personal meal planning and can shop for ingredients through stores like Kroger, Ralph’s, and Fred Meyers. eMeals partnered with Albertsons and Safeway to fulfill groceries needed for the meal recommendations it provides.

Sifter is available now throughout North America.

February 14, 2020

Peapod Shutting Down Online Grocery Shopping and Delivery in the Midwest

Ahold Delhaize USA announced this week that it is shutting down the Midwest division of its Peapod online grocery business. Starting Feb 18, customers in Illinois, Wisconsin and Indiana will no longer be able to place online grocery orders through Peapod.

As part of this move, Ahold said it will close distribution and food preparation facilities across Illinois which will cause the loss of 500 jobs. According to Milwaukee News and Events, 50,000 people use Peapod in the Midwest, placing 10,500 orders weekly. Ahold said that Peapod’s Midwest operation accounted for $97 million of the company’s overall $1.1 billion in revenue.

Selma Postma, President of Peapod, told Milwaukee News and Events that the issue for Peapod in the Midwest was that it was online only, so there was no network of physical stores for its supply chain or for customers to visit and get to know the brand.

Ahold’s Midwest contraction comes at a time when grocery retailers are aggressively expanding their online, delivery and pickup operations. Kroger is building out automated fulfillment warehouses. Alberstons is placing robotic micro-fulfillment centers in the backs of its stores. Walmart is rolling out its Delivery Unlimited service nationwide. And Amazon waived its grocery delivery fee for its Prime members (oh, and it’s building out its own chain of physical supermarkets).

Ahold said it closing down Peapod’s Midwest operations to focus on the East Coast, where it is actually trying out different e-commerce-forward store formats. Last year, Ahold subsidiary Giant Foods opened up a physical hub powered by Peapod that services delivery and pickup of e-commerce orders.

There’s a saying that vertical cuts are better than horizontal ones. So while we never applaud people losing their jobs, the decision to lop off the Midwest to strengthen Ahold’s position on the East Coast makes sense. Now Ahold will just need to keep innovating and pushing to keep up with the grocery delivery competition.

January 29, 2019

Giant Foods Opening a Physical Hub for Ecommerce Orders

GIANT Foods announced yesterday it will open a new physical hub in Pennsylvania that only services ecommerce orders. With this move, Giant joins the ranks of grocery stores architecting new experiences to accommodate the growth in online shopping.

Opening Feb. 12 in Lancaster, PA, the new 38,000 sq. ft. hub will be called Giant Direct, Powered by Peapod (both Giant and Peapod are subsidiaries of Ahold Delhaize). It will be a fulfillment center for orders placed online via Giant or Peapod’s websites or apps, and will offer delivery as well as a dedicated pull-up area where groceries can be brought out directly to a customer’s car.

For customers without online access, there are also vestibules at the store where customers can walk up and place their orders via tablets.

The new hub was announced last June, and as Grocery Dive reports, is a re-model of a traditional retail location that closed in 2017. The new hub will be able to serve 40 percent more customers than its previous iteration, and because it only services online orders, can speed up fulfillment of order delivery to the neighborhoods it services.

Ahold Delhaize and retailers across the grocery spectrum are making big infrastructure changes in anticipation of big growth in ecommerce. According to KPMG more than half of U.S. consumers are expected to shop online for groceries this year.

Earlier this month, Ahold Delhaize tapped Robomart for (eventual) autonomous mobile commerce. The company has also partnered with Takeoff to build out micro robotic fulfillment centers in the back of some of its stores.

Kroger is building out the first of its planned twenty robotic “sheds” to speed up online order fulfillment, and is also piloting self driving delivery vehicles.

Walmart is retrofitting a store in New Hampshire with a mini-robotic fulfillment center for faster order processing and is also experimenting with self-driving delivery.

What I’m most curious about with the new Giant Direct store is if and how people will use the in-store tablets. How big will the average orders be, and how fast will they get fulfilled? Will people place an order, run errands and return, or will they wait in their cars?

If you’re in the Lancaster area and plan to shop at Giant Direct, we’d love to hear how your experience was. Leave a comment or drop us a line.

December 15, 2017

Peapod Hopes Its Chat-to-Cart Feature Boosts Its Bottom Line

The grocery delivery space is moving far beyond the task of bringing fresh kale and imported cheese to your doorstep. Merely offering the luxury and convenience of avoiding crowded grocery aisles is no longer enough to woo time-starved consumer, who now has myriad choices when it comes to selecting a personal supermarket shopper.

If it’s tech inspired bells and whistles you want, Peapod, a 28-year veteran of the grocery delivery wars, is attempting to boost its sagging growth by adding a new text-to-order tool. Dubbed “Chat to Cart,” consumers can create lists on their phone via text (not to mention voice-to-text or emojis) and send them over to Peapod for fulfillment. The new feature was developed by Chicago-based online shopping tools developer, StorePower.

To use the service, customers text the toll-free number, 1-833-TXT-PPOD and provide a list of products by name or by emoji symbol. The service includes an option to share the shopping list among family members who can add products to the order. After an initial order, or once the number is saved, orders can be placed via Siri or Google Assistant.

“At Peapod, we have always been committed to being the ultimate convenience for our customers,” said Cat De Merode, Peapod’s VP of product in a company release. “The Chat-to-Cart platform was designed for the busy shopper that relies on their mobile device whether at home or on the go. Now, instead of texting a family member to pick up an extra gallon of milk, you can text Peapod and let us do the work. The texting functionality complements the Peapod mobile app and desktop website for one seamless ordering process.”

While digitally based grocery shopping makes up only 3.8% of the grocery retailing market, researchers see a bright future.  Packaged Facts, based in Rockville, MD., believes online grocery sales will go grow from a CAGR of more than 27% over the next five years. By 2022, the company says online sales of grocery items may be worth as much as $42 billion annually.

Peapod’s owner, Dutch-based Ahold Delhaize would like the digital delivery service to contribute more to its overall bottom line. In its most recent quarter, Ahold’s ecommerce revenue was up 20% but Peapod grew in the single digits. Company officials claim its various supermarkets, such as Food Lion, have not successfully integrated Peapod into their services.

Putting aside specialty delivery services such as Farmstead, players in the online grocery/delivery market are running low on competitive factors. Advances such as Walmart’s partnering with Google Home to gain access to their voice-enabled assistants does precious little to create any distinction among the Peapods, Instacarts and Shipts of the world (not to mention store-branded delivery services). Blurring the lines even further is the growing overlap between grocery and restaurant delivery with such all-purpose digitally powered, food-to-home services as Postmates promising speedy grocery services in New York.

That $42 billion revenue figure for grocery delivery sounds like a hefty prize, but the question remains—how much will go to the one-two punch of Amazon/Whole Foods and how many remaining companies will be spending millions to grab minor slivers of market share.

Enjoy the podcast and make sure to subscribe in Apple podcasts if you haven’t already.

November 1, 2016

Interview With the Greats: Dave Arnold on Innovation in the Kitchen

Dave Arnold never stops. The fortysomething owner of Manhattan cocktail bar Booker & Dax is exactly the kind of madman inventor that we need to push the food world forward, and lucky for us, he’s always working on a cool project. Even luckier, he always wants to tell you all about it.

Arnold is also the director of the Museum of Food & Drink in New York City, the host of Heritage Radio Network show Cooking Issues, and the author of Liquid Intelligence: The Art & Science of the Perfect Cocktail. He’s inspired an entire generation of chefs to innovate with technology in their search for ever better food and drinks, with wacky inventions like the Searzall blow torch for your steaks and milk-washed spirits for your cocktails. (And he’s working on a centrifuge for restaurant and home use!)

We sat down with Arnold a few weeks ago to talk shop about the future of food and technology. Here’s an abbreviated version of our conversation.

TheSpoon: Do you see a difference between technology for professional kitchens versus for home kitchens?

Dave: One-hundred percent. It can go both ways. In a professional kitchen, if something’s accepted, people will learn how to use it, because they have to. People in professional kitchens put up with things that you’re not allowed to sell to people at home, things that are very hot or very large or take a lot of energy.

The problem with restaurants is that chefs are extraordinarily busy, and they don’t trust that every one of their employees is a rocket scientist. So stuff in a restaurant has to be fairly intuitive to use and bulletproof. It has to withstand intense abuse. That’s why if you take off the label that says Vitamix and put on one that says Vitaprep, the price goes way up and the warranty goes way down, because everyone knows that in a commercial establishment, people beat the heck out of things. Commercial equipment needs to have a level of robustness and intuitive use that is not necessary for home equipment.

But home equipment — it depends on who you’re shooting at. When you’re shooting at people who aren’t avid cooks or who don’t cook that much, it has to be intuitive at home in a different way. It has to have a lot more convenience and bells and whistles on it. It has to polish out nicely, to tell you when your breakfast is done. Also, most home equipment is built around maximizing kitchen space, which is super important commercially as well, but typically home people don’t have to put out as much product out of a particular square footage. You’re maximizing a different problem.

Where it can get interesting is, you can have something that home people can experiment with because maybe you can’t make that much of it, so it’s hard to do in service because the product takes too long or maybe it’s a little too complicated to train everyone on. So things that I can do at home better than in a commercial kitchen? Rotary evaporation. It’s illegal to do rotary evaporation in a commercial kitchen because you’re doing distillation. But at home you’re dealing with a tinkerer. Someone who sees themselves as a learner, a hobbyist. There’s a weird sweet spot there for home people to do interesting things that are difficult to do in most commercial restaurant environments. Because as much as commercial restaurant environments are creativity driven, it’s business, and it’s hard to justify the cost of building in super-high levels of creativity.

Molecular Cocktails from Booker & Dax with Kate Krader and Dave Arnold

Molecular cocktails from Booker & Dax with Kate Krader and Dave Arnold; photo courtesy Flickr user Meng He

TheSpoon: Let’s talk about that creativity.

Dave: In the wake of the popularity of the Spanish style at El Bullí, there were a bunch of people who had positions in higher-end restaurants as research chefs. Not the way Chipotle would have a research chef; it was specifically for fine dining. I don’t really know how that trend is doing now, but it’s hard: Customers’ interest in visibly creative stuff goes up and down. Everyone always wants something to be different and new, but sometimes they want it to be different and new in a way that doesn’t look like people have been hypercreative with it, and sometimes they want hypercreative.

Look at the mid 2000s , with WD50, Alinea, Moto: All over the country a lot of the new techniques were being used and pioneered by restaurants that weren’t advertising that that’s what they were going to do. Modernist Cuisine is fairly good at documenting where a lot of these recipes came from. You can treat it as a library of where these ideas came from.

Even Michael Laiskonis at Le Bernadin was using hydrocolloids a lot. Dominique Ansel at Daniel, Greg Brainin at Jean-Georges. All the cooks who went there were smart people interested in these new techniques because they knew it would allow them to achieve something different, new and good. None of those folks were using it in very obvious ways that said to the customer, “This is using a new technique.” That’s what I mean by the hypercreativity isn’t always obvious.

When it is obvious, and people are actively trying creativity that way, there tends to be acceleration of what happens. People push the boundary faster and harder, make more mistakes frankly, so you try 10 things that suck and come up with 1 good thing. If you can do that you’re super winning.

TheSpoon: Right now with connected kitchen appliances it seems like everyone is trying way more than 10 things. How do we move away from gimmicks into useful technology?

Dave: I have a particular opinion on this. Ninety-nine percent of the applications that people are positing today will be the future, are not the future. If they are the future, God help us. It’s so dystopic that would someone would print your meal out. It’s a horror show. Luckily I don’t anticipate you ever pushing a button and it printing whatever paste it has, applying food coloring to it to make it look like a hamburger, and then you eat it.

The current printing technology is either working with liquids (in that case it sucks because you need your viscosity to be right), or you’re dealing with paste that has to be extruded through a very fine nozzle. There’s only so much you can do with current technology.

True, that technology will change and get better. Let’s say someday you could find what you think is going to be the best-tasting pig and then recreate it a million times with a transporter beam where you store the information and keep recreating it over and over again. Or maybe it’s the best meal ever. It would be like a CD player of meals: You could have your favorite chef create it, scan it, and then whenever you want, you could just have it. When you get to that level, sure, print me some food.

The issue isn’t that the current technology sucks (which it does) or that the way people are using the current technology is wrong and bad (which it most certainly is). All that’s important is that you push the technology. Someone will find a good use.

Look at the development of almost anything: Steam engines sucked for a while until someone got one that worked right. You need to have the person who has no idea what’s going to happen in the future just work. They need to work and make stuff and throw stuff against the wall and see what happens: Push technology, create. Eventually someone will do something amazing.

Searzall_FlickrArnoldGatilao

The Searzall in action; photo courtesy Flickr user Arnold Gatilao

We all have to play this game. Well, I don’t tend to play it, but most of us play it, where we pretend that the gimmick idea is reasonable when we all know it’s not. Of course it’s not reasonable!

Remember when they had the first car phones? If you had said, “That’s dopey, who the heck is going to use that?” we’d never have what we have today. Or as I said when I was a teenager in the 80s and somebody showed me email and I was like, “That’s not ever going to go anywhere.” Who knows? That person was wrong about why it was going to be great. The person who showed me had no understanding of how the technology was actually going to change the world, but they just kept at it.

TheSpoon: Are there certain food-tech trends that you’re excited about?

Dave: There’s stuff that I thought was going to have a lot of potential for a long time and never has. If you’d asked me over 10 years ago, I’d say by now almost everything would be completely traceable, RFID and that safety would be on lockdown and that we wouldn’t have recalls and all of this other nonsense. Once everything is traceable that way, I’d assumed we’d already be in a situation where — and we’re getting there — your grocery list would be more integrated with what you’re doing.

I didn’t expect FreshDirect and Peapod and all that to make as big a dent as it did, in the same way that I didn’t understand how the whole retail world was going to get flipped by Amazon the way it did 10 years ago.

Especially because in the late 90s, there was Urbanfetch. I was like, “Oh yeah, this is never going to work. You’re going to be connected on your computer and someone’s going to go show up in half an hour with your ice cream.” I used to mess with them. You weren’t allowed to tip them and they had no minimum order. So I was like, “It’s 4 AM. I’m going to hit this button, and you’re going to deliver me a pack of gum in half an hour?” The guy’s like, “Yes.” And they showed up with the gum and I’m like, “And I’m not allowed to tip you?” He’s like, “Nope.” And every time they were late they’d give you a free pint of ice cream. It’s a crazy business model. They were losing money, but that was back when people thought it was okay to lose money as long as you lost it in very large quantities. That was a sign that wasn’t going to work. That means someone comes along and does it right, like FreshDirect.

Here’s another situation where I was totally wrong. Who’s going to order vegetables off of a website? Turns out everybody, except me.

Most of the time, on these kinds of predictions, I’ve been wrong.

The only time I’ve been right — I predicted low-temperature sous vide cooking is going to grow and it’s here to stay. And that people will be interested in the why of cooking. It’s not a fad. The general trend is toward deliciousness. I think I’ve been proved right on that.

Primary Sidebar

Footer

  • About
  • Sponsor the Spoon
  • The Spoon Events
  • Spoon Plus

© 2016–2025 The Spoon. All rights reserved.

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube
 

Loading Comments...