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supply chain

December 21, 2021

Cream Cheese and Champagne Shortages? No Fear, Food Tech is Here to the Rescue

In the past few months, supply chain issues have been cited as a reason for major delays in everything from food to holidays gifts. Last week, USA Today published a piece detailing the food and beverages that are in demand for the holiday season but are experiencing shortages throughout the country. A Christmas meal without ham and a New Year’s Eve party without champagne might be a major bummer, but luckily, companies in the food technology space have alternative options for these popular commodities.

Cream Cheese

Cheesecake is a popular dessert option during the holiday season, and bagels with cream cheese are an easy breakfast option for visiting guests. However, according to the USA Today article, bagel shops throughout the country are experiencing shortages, and a cheesecake factory in New Jersey has had to cease production twice due to shortages. Mainstream brands like Philadelphia may be in low stock, but there are quite a few food tech companies that offer alternative cream cheese options. Nature’s Fynd uses fermentation and microbial proteins to create two flavors of cream cheese, while Miyoko’s Creamy uses cashews to craft several different varieties. Spero uses sunflower seeds to produce cream cheese flavors like pumpkin spice, herb, and blueberry.

Champagne

Popping bottles of bubbly is an iconic part of New Year’s Eve, but this year, you may find it more difficult to get your hands on champagne. According to Wine Enthusiast, we are at the beginning of a multi-year champagne shortage. You may want to start “dry January” early and try some alcohol-free sparkling wine options. A few companies that offer varieties of zero-proof champagne or sparkling wine are TÖST, Noughty, and Surely.

Chicken Tenders

With kids at home on holiday break, chicken tenders may be a favorite request for lunch. The price of chicken has been rising, and the meat industry has been experiencing labor shortages. If chicken is pricey or difficult to find, plant-based chicken is certainly one option. The plant-based space recently experienced a “chicken war” where companies were racing to get their alternative chicken products on the market quickly. As a result, Beyond and Impossible now offer chicken tenders and nuggets. Other companies like Daring, Rebellyous, Simulate, and Nowadays all offer plant-based chicken nuggets as well.

Cat and dog food

Our beloved furry family members are susceptible to food supply chain disruptions too. Owners have reported that it is more challenging to find certain wet food brands that they are used to buying. This could be the result of an aluminum shortage on top of delays within the supply chain. In the realm of food tech, Wild Earth offers plant-based pet food and is currently working on a cultivated meat pet food product.

October 22, 2021

With New Funding in Hand, TrusTrace Looks To Make Supply Chains More Sustainable

Supply chain is the buzz phrase filling daily news headlines related to empty supermarket shelves and this year’s hottest toys being in short supply. Specifically, one longer-term issue is the traceability of products—especially food and other perishables—as consumers become increasingly conscious of their health and the environment.

Companies such as Stockholm-based TrusTrace are among those who are applying a combination of technologies to empower suppliers and consumers in the flow of information from field or processing plant to table. To further its growth in this space, the company recently received a $6 million investment from Industrifonden and Fairpoint Capital. The funds will be used for product development, global expansion, and building out the company’s management team.


“TrusTrace enables product-level traceability and supply chain transparency to drive better, more sustainably-conscious and socially responsible sourcing decisions,” said Shameek Ghosh, CEO, and Co-Founder of TrusTrace said in an interview with The Spoon. “With this latest funding round, we will continue leveraging cutting-edge technology and the best minds in the industry to achieve positive, restorative change for people and the planet.”

Consumer interest in the details about the origins of their various foods is becoming more than just a nice-to-have. According to research by ADM, the trend had been growing for several years with the pandemic, and it’s the associated concerns about health and safety, acting as a catalyst for a greater understanding of what is in everything from farm-fresh tomatoes to canned string beans. Global supplier ADM discovered 58% of global consumers would be more concerned with locality claims because of COVID-19. In addition, ADM reports that 38% of global consumers will back their interest in sustainability with their wallets and pay more for verified products.

Among the details of sustainability, tracing include place of origin, ingredients, the use of chemicals, processing stops along the route, and other factors related to the environment.


TrusTrace hopes to expand beyond its current client base, including Coop, a Swedish retail chain. As Ghosh explains, one of TrusTrace’s signature advantages is that it fully integrates with a client’s ERP system using blockchain and its own proprietary technology. Being connected to Coop’s inventory management system allows TrusTrace to collect accurate information to document sustainability, which measures ten different parameters across 10,000 food products. In simple terms, TrusTrace creates a mapping of a product’s supply chain, which allows a customer to know essential details about a given product.


In the case of Coop, consumers can use an application that deploys a scanner to investigate the sustainability of a product and manifest that information in an easy-to-read diagram. The parameters used by Coop via its TrusTace implementation are based on an agreement by the county’s leading companies in conjunction with The World Wide Fund for Nature (WWF).


Ghosh hopes to bring TrusTrace to major retailers across Europe in the coming months and is even eyeing the United States as a potential target. At issue, he explains, is the need for national consensus on specific areas to measure to create a helpful mapping. The lack of a universal agreement in sustainability will be a hindrance to educating consumers worldwide.


TrusTrace is not alone in looking to cash in on this trend. Other companies in this space include Alpharetta, GA-based Aptean, IBM with its Food Trust product, and New York-based ripe.io

October 1, 2021

SIMPLi Uses Sensory Technology to Increase Transparency in the Supply Chain

Launched in 2019, SIMPLi is an ingredient company that works directly with farming communities worldwide to eliminate unnecessary middlemen, shorten and streamline supply chains, and reduce fraudulent activity. To achieve that aim, SIMPLi uses IoT technologies to help farmers in places like Greece and Peru who use regenerative farming techniques and helps them command an above-market premium for their crops. SIMPLi has helped 560 farmers transition to more sustainable farming techniques.

“Right now, our vision as a company is to have a seamless traceable platform that our clients, from a B2B perspective, and our consumers, can leverage directly to see the full international supply chain for each ingredient that they either consume or purchase from us,” said Matthew Cohen, SIMPLi cofounder told me recently.

SIMPLi’s data tracking starts at the farm, where it tracks soil and crop health. In processing facilities, the company’s sensors ensure that nothing is tampered with. Once loaded onto cargo ships, SIMPLi uses GPS tracking and sensors that track the temperature and other environmental metrics are implemented. Arriving at facilities in the U.S. is one of the last steps before reaching the client.

There is “a lot of different touchpoints where we’re using technology and there’s a lot of data along these touchpoints that we want to capture, which we’re already doing today,” said Cohen.

Murky supply chains can hide major issues like slave labor, animal welfare, food fraud, child labor, ingredient sourcing, and environmental pollution. With emerging reports of these issues, consumers are asking for better options. They’re rewarding companies that give it to them; A recent survey found that 94 percent of consumers are more likely to stay loyal to a completely transparent brand. Additionally, 55 percent of customers shared that social responsibility and sustainability were important factors when deciding what product to buy.

SIMPLi recently raised an undisclosed seed round and launched its regenerative organic red, white, and tri-colored quinoa in 49 Whole Foods locations on the East Coast. Its e-commerce site hosts products such as sustainability-grown olives, olive oil, and quinoa. If you’ve eaten food from Sweetgreen, Daily Harvest, or &pizza, there’s a good chance you may have already eaten SIMPLi’s quinoa, gigante beans, artichokes, or olive oil.

August 18, 2021

Apeel Raises $250 Million to Accelerate Its Fight Against Food Waste

Apeel, best known for its shelf-life-extension technology for produce, has raised a $250 million Series E round of funding led by Temasek.

Additional participants include Mirae Asset Global Investments, GIC, Viking Global Investors, Disruptive, Andreessen Horowitz, Tenere Capital, Sweetwater Private Equity, Tao Capital Partners, K3 Ventures, David Barber of Almanac Insights, Michael Ovitz of Creative Artists Agency, Anne Wojcicki of 23andMe, Susan Wojcicki of YouTube, and Katy Perry. The round brings Apeel’s total funding to date to over $635 million, according to a press release sent to The Spoon. 

The company’s food-safe powder coating was developed to cover pieces of produce, such as avocados, and act as a barrier against water and oxygen, which are major contributors to rot. Apeel will use the new funding in part to expand the availability of its coating product to additional parts of the U.S., U.K., and Europe. The company currently works with 40 retailers and 30 suppliers throughout eight different countries.

Earlier this year, Apeel acquired hyperspectral imaging company ImpactVision to add another layer of information about plant ripeness to its process. The advanced imaging technology can essentially look inside each piece of fruit and gather information about maturity, freshness, and phytonutrient content. With this information, suppliers and distributors can decide where each piece of produce can then go. For example, a more mature piece can go to a retailer closer by, so it can reach the store shelf sooner.

Apeel said today it will also use the new funds to advance such data and imaging capabilities and integrate those capabilities deeper into its system. The company suggested there could be more acquisitions in this area in the future. 

In the U.S. alone, 35 percent of all food produced goes to waste, equalling about $408 billion annually and 4 percent of all U.S. greenhouse gases. At the same time, more than 40 million Americans are considered food insecure. Recent data from Project Drawdown found reducing food waste to be first of 76 solutions meant to reverse climate change, ahead of plant-based diets and utility-scale solar projects. 

Apeel’s edible coating is one method of fighting food waste. Others include Hazel Technology’s sachet that extends produce shelf life and Ryp Labs (née StixFresh), which makes a sticker that does much the same thing.

“Suppliers have a clock that’s ticking,” Apeel CEO James Rogers explained last year at a Spoon event. At the end of the day, he said, “we have to make the most environmentally beneficially solution the cheapest, easiest solution.”

July 20, 2021

Collectiv Food Raises $16.3M for B2B Food Supply Distribution

Collectiv Food, a London-based B2B food marketplace, announced today that it has raised £12 million (~$16.3 million USD) in Series A funding. The round was led by VNV Global, along with VisVires New Protein, Octopus Ventures Norrsken VC, as well as existing investors Partech, Colle Capital and Mustard Seed. This brings the total amount of funding raised by Collectiv Food to £15.8 million (~$21.5 million USD).

Currently servicing Europe, Collectiv operates a network of thousands of food producers that supply items such as meat, seafood, plant-based proteins, dairy, beverages an more. Collectiv’s marketplace allows restaurants, hotels, caterers, meal kits companies, ghost kitchens and more buy food directly from the producers, cutting out the wholesaler middle man and their markup.

In addition to promising cheaper prices for food, Collectiv says it has developed a greener, more sustainable approach to last-mile delivery. Collectiv operates a number of “Points of Delivery” (PODS), which are like chilled shipping containers placed in underutilized parts of a city. Instead of big delivery trucks all coming from a centralized distribution center and driving long delivery routes through a city, Collectiv’s system intelligently routes smaller delivery vehicles from this network of PODS for last mile delivery. The company says this decentralized distribution results in 50 percent less CO2 emissions than traditional last mile shipping methods.

Collectiv is among a number of B2B startups looking to improve our food supply chain. Other players include IFoodDS, which offers a cloud based system that provides more transparency into fresh food supply chains, as well as Shelf Engine and Afresh, which help food buyers better predict inventory needs.

In a press announcement sent to The Spoon, Collectiv said it will use its new funding to further develop its delivery and sourcing models, hire out its team and continue its expansion across Europe.

May 6, 2021

Hwy Haul Raises $10M Series A to Modernize Produce Trucking

Hwy Haul, a cloud-based freight platform that connects produce shippers and carriers, announced today that it has raised a $10 million Series A round of funding. Eileses Capital and BluePointe Ventures co-led the round with participation from AgFunder, True Blue Partners, and other angel investors. This brings the total amount raised by Hwy Haul to $15.6 million.

As Syed Aman, cofounder and CEO of Hwy Haul explained to me last year, existing methods and workflows for getting fresh produce shipped from farms to stores around the country is still very manual and complex. It can require phone calls with truck brokers to find a carrier, multiple manual temperature checks to ensure food safety, and paying truckers can still take weeks after a haul is delivered. All of this complexity results in low transparency and food waste from loads not being kept at proper temperatures or being sent to the wrong destination.

Hwy Haul is looking to fix all that by automating the process associated with hiring truckers and shipping produce nationwide. The cloud-based system allows truckers to find instant quotes, book loads and reduce paperwork. Shippers (farms, wholesalers, etc.) can more easily hire carriers, monitor the temperature and humidity of loads, and optimize routes.

All of this, the company says, results in greater insights into shipments, reduced wait times and a more optimized supply chain. And if it’s one thing Aman knows, it’s the supply chain. Prior to co-founding Hwy Haul, Aman was Director of Supply Chain at Walmart, where he helped build Walmart’s online grocery platform.

We asked a couple weeks ago whether supply chains are sexy now as there are a raft of startups looking to transform how food is moved about the country. RipeLocker creates containers that adjust factors like oxygen levels and air pressure to extend the shelf life of produce. Varcode uses blockchain and IoT to ensure the items in the cold chain remain cold. And Gatik is creating self driving delivery trucks for the middle mile. And now with $10 million in fresh capital, Hwy Haul can keep these supply chains truckin’.

April 21, 2021

Misfits Market Raises $200M Series C, Will Expand into Proteins

Misfits Market, an online marketplace that sells imperfect foods at a discount, announced today that it has raised a $200 million Series C round of funding. According to a press release shared with The Spoon, the round was co-led by Accel and D1 Capital, with participation by existing investors including Valor Equity Partners, Greenoaks Capital, Sound Ventures, and Third Kind Ventures. This brings the total amount raised by Misfits to $301.5 million.

Misfits Market started out selling subscriptions to boxes of “ugly” produce back in 2018. This allowed customers to buy misshapen but perfectly edible fruits and vegetables at a discount while rescuing food from going to waste. Since then, Misfits has expanded to offer a wide range of other imperfect pantry and packaged items that might otherwise be discarded. These include products with misprinted labels and products that are shipped to the wrong location.

The global pandemic actually created a number of new opportunities for Misftits Market last year. With stadiums, schools, restaurants and more shut down, existing supply chains needed to re-direct their products to new customers. For example, with movie theaters closed, there was a glut of corn for popcorn that Misfits could purchase and sell at a discount to its customers.

Additionally, Misfits has benefited from the pandemic-induced boom in online grocery shopping as customers limited their trips to physical stores. Abhi Ramesh, Founder & CEO of Misfits Market told me by phone last week that his company grew 5x in scale last year.

With its new funding, Ramesh is hitting the gas to accelerate Misfits’ growth. The company opened a new 250,000 sq. ft. headquarters in New Jersey and was able to double its order capacity. And while Misfits is predominantly available in the Eastern U.S. right now, it will be expanding to the West Coast with a new facility in Utah. One in the Pacific Northwest will follow after that.

Misfits is also expanding its grocery categories with the addition of protein. Most customers might blanche at the thought of “imperfect meat,” but Ramesh explained to me that there is a lot of excess in the protein supply chain as well. With something like salmon, for instance, there are often 3 oz portions leftover from trimming fillets. Misfits can bundle those leftovers and sell them at a discount.

Misfits Market’s funding is also coming during a time of big investment in grocery related startups that are aiming to upend our traditional notions of food retail. A number of smaller, delivery-only grocery stores like Fridge no More and Gorillas are popping up around the world, making groceries something more akin to a utility. Online grocer Weee! is leading the way by focusing on selling Asian and Hispanic foods. And retail infrastructure startups like Shelf Engine and Trax are developing tech to re-invent how store inventory is managed.

Most relevant to Misfits, however, is its main rival, Imperfect Foods, which has also expanded from ugly produce to become more of a full online grocer that taps into existing supply chain deficiencies. Imperfect raised a $110 million Series D round in February, which means we can probably expect a marketing blitz from both companies this year.

The question over both Misfits and Imperfect at this point however is what happens post-pandemic? Will people still want to order groceries online when they can just go to their local store? Ramesh said he isn’t too concerned about that. “Yes, there will be some sort of reversion to the mean,” Ramesh told me. But because his company is offering discounts and value on products people already buy, his customers will continue to shop with Misfits.

March 24, 2021

iFoodDS Raises $15 Million for Fresh Food Supply Chain Management

iFoodDs, a startup that provides fresh food supply chain management software, announced today that it has raised a $15 million Series A round of funding led by Insight Partners.

Based in Seattle, Washington, iFoodDS has developed a cloud-based system to give retailers, foodservice chains, processors, shippers, packers and growers more visibility into the fresh food supply chain. The iFoodDS platform helps supply chain constituents to better track food safety, traceability, quality management and transparency.

In May of last year, iFoodDS acquired HarvestMark and its food traceability and quality inspection solutions. Terms of that deal were not disclosed.

iFoodDS’s funding fits into a larger trend around improving supply chain management, and we’ve seen a number of startups tackling this issue from a different angles. Varcode uses temperature sensors and blockchain to validate food as it moves through the cold chain. Earlier this month, Shelf Engine raised $41 million to help retailers better forecast and order fresh food. And the non-profit, GS1 is working with companies like IBM Food Trust and Ripe.io to develop interoperable food traceability systems.

Shortcomings in the U.S. supply chain were laid bare last year as the COVID-19 pandemic and subsequent panic buying and hoarding left supermarket shelves empty across the country. Enabling better insights into the supply chain not only helps alleviate these types of product outages but can also help reduce food waste. By bringing enhanced management tools to the supply chain, food can be routed to destinations more efficiently, monitored throughout the process, all while ensuring authenticity and quality.

March 3, 2021

Demetria Raises $3M to Automate Coffee Bean Analysis

Demetria, a startup that promises to automate the analysis and grading of coffee beans, came out of stealth yesterday and announced that it has raised $3 million in seed funding. The round was led by Celeritas and a group of private investors including Mercantil Colpatria, the investment arm of Grupo Colpatria.

As coffee beans move through the supply chain, their quality has traditionally been judged by “cupping.” In this process, a human with proper certifications selects samples of beans and judges them based on factors like aroma, acidity and flavor. As you can imagine, this process is slow, wasteful, and because it’s done by experts, not globally available.

It also means that coffee bean quality and pricing is a subjective process, which can incorporate any number of human biases that can affect the prices paid to farmers and across the supply chain.

Demetria aims to automate this process by using near-infrared scanning and cloud-based artificial intelligence analysis to develop “digital fingerprints” of coffee beans. As green coffee beans move through the supply chain, they are analyzed with a near-infrared scanner to look for biochemical markers to match a bean’s profile with an industry standard set of quality metrics.

This means that bean quality can be quickly assessed with a handheld scanner and mobile phone. What’s more, beans do not have to be taken out of the supply chain to tested via cupping. Instead, they stay, reducing waste.

We’ve seen this type of AI-based scanning in the food supply chain elsewhere. Most recently, Driscoll’s announced that it was using Consumer Physics’ SCiO technology to scan berries for sweetness. Consumer Physics’ handheld scanner is one of the tools being used by Demetria.

Other companies in the space include AgShift and Intello Labs, both of which use computer vision and AI to assess food quality and bring objective grading to buyers and sellers.

In its press announcement yesterday, Demetria said it has successfully completed a pilot with Carcafe, the Colombian coffee division of agricultural commodity traders Volcafe/ED&F Man. Demetria said it is also working with Federación Nacional de Cafeteros (FNC), the Colombian National Federation for Coffee Growers, to develop apps that help farmers and their transaction points in the supply chain control and track bean quality, and price.

Technologies like Demetria’s can hopefully bring more fairness to the food supply chain by speeding up the process and standardizing the analysis so everyone gets paid a fair price.

December 14, 2020

Connecting Demand to Supply: 2021 Food Supply Chain Tech Outlook

This is a guest post written by Seana Day and Brita Rosenheim, Partners at Culterra Capital, an advisory firm focused exclusively on tech-driven innovation across the food system. You can also find their 2020 Farm Tech and Food Tech Industry Landscapes and analysis at Culterra Capital.

We have been covering the Food Tech and AgTech sectors for the past decade, yet COVID-19 thrust the food supply chain into the spotlight as we could have never anticipated. Against the backdrop of the current pandemic, as well as nearly $500 billion in annual food waste occurring from food harvest to distribution and retail globally, it was time for a dive deep into the technology that will shape the food supply chain in 2021 and beyond. 

For those also following the tech-driven food sector it is no surprise that, to-date, most investment and innovation fanfare have been focused on the food system end-points of AgTech and Food Tech. However after our recent odyssey into the Food Supply Chain Tech category, it is quite clear to us that there is a tremendous, untapped opportunity for vertical-specific technology companies which are focused on serving the unique needs of the food supply chain.

It is with this sense of urgency and optimism about new frontiers of innovation, agility and investment that we launch Culterra Capital’s inaugural 2021 Food Supply Chain Tech Landscape:

Click image to enlarge.

For the purposes of this analysis we have highlighted a handful of predictions for the year to come, as well as emerging themes and key innovation trends that we believe will continue to impact the four supply chain pillars (Supply, Production, Logistics/Distribution, Demand).

While we cover a number of digitalization-driven opportunities for food system participants to strengthen their resilience, profitability and agility, we will reserve deeper dives into the sector-specific drivers and practical adoption obstacles in later reports. But first, a brief primer on navigating the landscape before we dig into our key takeaways below:

How to Navigate the 2021 Food Supply Chain Tech Landscape

  • “Food Supply Chain Tech” here generally refers to the technology enabling the processes and movement that occur between the farm gate and the loading dock/back door of the grocery retailer/food service provider. 
  • This is a heatmap, not a comprehensive catalog: While clearly not exhaustive, this map is meant to illustrate the layers and variety of technology solutions, early stage to mature, and primarily enterprise or B2B-focused. We have generally filtered the companies based on their food and ag customer base, and while mainly US-focused, have included a handful of global companies. Our FarmTech (inside the farm gate) and Food Tech (retail/food service/D2C) landscapes cover the other end points of the food system.  
  • IT-Driven Focus: The landscape focuses predominantly on digital technology-related companies, and although hardware is (mostly) unplugged from this landscape, there is a strong recognition that hardware is an essential part of the technology landscape, especially as it relates to key trends around Industry 4.0 and networked equipment.

In order for us to drive down and understand the many, extraordinarily complex functions involved in the food supply chain, we have organized the market around four key pillars of activity: 

  1. First Mile (Supply)
  2. Production / Food Processing (primary and secondary)
  3. Distribution and Logistics
  4. Retail / Food Service / D2C (Demand)

Across the bottom of the landscape, we included value chain players which integrate across multiple pillars.  

Is Data Automation Bringing Sexy Back?

The overall food and ag industries are among the lowest penetration of digitalization relative to every other sector of the global economy. And while it is well understood across the food industry that modernization and investment in data infrastructure represent a necessary and essential first step, the challenge of “going paperless” is still a real hurdle.

Yes, we understand that “going paperless” is less sexy than, perhaps, micro-fulfillment robotics. But increased workflow and data automation solutions in the food supply chain holds significant power to help the food supply chain leapfrog into digitalization.

Data automation leverages ML/AI to digitize and automate document processing and manual back office processes like managing vendors, suppliers, contracts, key communications, appointments, and so on. Because of the highly fragmented nature and sprawling ecosystems, data automation brings critical resource management, accuracy and most importantly, an underlying digital foundation to the food supply chain. 

Examples of workflow and data automation solutions focused on the food sector include Proagrica, Big Wheelbarrow, and Wholesail. 

A digital foundation is also a key enabler of business innovation for participants up and down the Food and Ag system, like data-driven demand prediction. For example, today our food system is fundamentally supply-driven. Crops or livestock are harvested at a point in the season, and the producer is a price taker. Producers have long sought to overcome this risk / reward imbalance by vertically integrating, and we continue to see that from all sides whether it is Kroger or Walmart integrating their dairy supply chain, or Driscoll and Naturipe branded berries.

Those players who have access to demand data from the retailers, consumers and foodservice outlets, and can control several steps in the supply chain, can better understand when and where to sell, as well as how to maximize their profit through demand insights. 

Similarly, with better demand data flowing into the distribution, logistics and production pillars, companies can better manage over / underproduction and reduce waste, while also improving the utilization of their own assets (equipment, labor, utilities, storage, etc.). 

MOM Knows Best?

Mostly overlooked by venture capital investors, there has been a dearth of significant outside investment in food production and manufacturing business tools, like Manufacturing Operations Management (MOM) software, which represents a collection of systems for managing end-to-end manufacturing processes and automation. The core MOM subsystems include: 

  • MRP (Material Requirements Planning):  packaging, raw material planning, procurement scheduling, etc.;
  • MES (Manufacturing Execution Systems): used to track and document the transformation of raw materials to finished goods; and
  • Other categories of Enterprise Asset Management which fall into this broader manufacturing tech category. 

Largely the domain of established and legacy software companies, vertical, food-focused MOM and Enterprise Resource Planning (ERP) systems are becoming increasingly recognized for their potential to supply foundational, batch-level data for AI/ML-driven analytics, more nimble food production processes, greater workflow automation, optimization of procurement, and so on.  

At the same time, the broader technology landscape is shifting from a traditional manufacturing automation stack (ERP/MOM) to a IIoT stack (Industrial Internet of Things) which leverages a combination of app development, platform cloud, connectivity, and hardware. This intelligent manufacturing stack will be central to unlocking the promise of a more agile, visible and collaborative food supply chain.  

In looking ahead, it is important for tech innovators to understand both the complexity and opportunity stemming from ERP/MOM/IIoT stacks, as the critical data captured in these subsystems has multiple beneficiaries and is also poised to enable business model innovation across the value chain, from ag producers, to manufacturers, distributors and beyond. 

As an example, it is generally a challenge for ag producers to track and trace raw materials once they hit the processor (both primary and secondary). In food value streams like protein (animal) processing, automation and batch processing are hard to achieve given the nature of tracking disassembly (“primary” – one carcass that turns in hundreds of cuts or many SKUs) vs. assembly (“secondary” – a dozen ingredients combined into one product or SKU). 

However, increasingly sophisticated and connected MOM systems are beginning to deliver batch-level tracking which makes verification of farming practices (regenerative, non-GMO, organic, etc), genetics / genealogy or origin claims easier to authenticate.  

This is one of many examples that reinforces our belief that domain-specific manufacturing software and systems for the food and beverage sector are essential. The level of tracking complexity and data integration can be dizzying, but there are a handful of innovative companies that are building solid, scalable businesses such as Dairy.com, ParityFactory, Wherefour, and Food ID, among others in the space. 

The Cold Chain is Heating Up

As noted in The Spoon’s coverage, the pandemic shifted a large number of people to online grocery shopping, and many of those new online shoppers will continue to shop online. Notably, this surge in digital grocery orders also included more online fresh / perishables purchases, both in retail environments as well as direct to consumer (D2C). This growth is expected to continue even as grocery shoppers migrate back to in-store shopping. For context, e-commerce grocery is now expected to account for at least 21.5% of US grocery sales by 2025, (up from a pre-Covid prediction of 13.5%). 

We believe this increased demand will catalyze cold chain suppliers and 3PLs to meaningfully bolster their digital infrastructure and investment in tech solutions, as we have seen with high flyers like Lineage Logistics. They will feel greater pressure to adapt to the dynamic demands of buyers, such as faster speed of delivery, decreased waste, real-time inventory visibility and traceability of products. 

These objectives are not possible without integration and interoperability solutions which create the linkages necessary to overcome the massive amounts of existing siloed data. These solutions layer on top of existing supply chain planning, execution and equipment control systems, integrating them to further optimize for analysis and real time planning / visibility across various parts of the supply chain. 

Without harmonized data, the cold chain can’t truly unlock efficiency or capacity, nor adequately respond to supply-demand volatility. Tightly linked systems to share this data can have a significant impact on the shelf life of perishable products (reducing waste), the assurance of quality (product, producer or marketplace differentiation), and support agility in demand-driven forecasting. Examples of startups focused on providing innovative solutions in this sector include AgroFresh’s Fresh Cloud, Backbone AI, and Afresh.

Looking Ahead to 2021 

The food supply chain differs in some respects from our traditional understanding of Food Tech and AgTech because it encompasses industries with relatively well-established players and technologies, many of which are horizontal software (with a multi-industry offering) and logistics companies. Due to this, as well as the highly-regulated and labor intensive nature of the supply chain, historically it has been a more difficult industry for nimble start-ups to penetrate. 

Today, we see the majority of participants across the food supply chain setting the table with foundational data and digitizing basic workflows. This is the essential first step. Basic digitalization, strengthening collaboration tools, automating some data sharing, and looking for ways to streamline labor will be key themes in 2021.

To be sure, COVID-19 revealed accelerating demand for tech ready to scale (vs. new innovation). Yet that is not the end of the story. We see most of the exciting food supply tech innovation springing up around the perimeters of the landscape, particularly from analytics and strategy plays within First Mile (Supply) and Retail / Food Service / D2C (Demand).

For start-ups, those that can differentiate themselves with proprietary, unique data cleansing tools have an important edge. As we know from AgTech and Food Tech, this is one of the principal activities that many innovative companies spend vast amounts of time working on. The same holds here in the Food Supply Chain.

———-

Seana Day and Brita Rosenheim are Partners at Culterra Capital, and Venture Partners at Better Food Ventures, each with 20+ years of investment, M&A, and strategy experience within the food, ag and tech verticals. Their analysis on the Agtech and Food Tech sectors are regularly used by participants in the space to understand the quickly evolving landscape.

October 22, 2020

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.

October 22, 2020

TeleSense Raises $10.2M for its IoT Crop Spoilage Prediction Platform

TeleSense, which uses IoT-enabled sensors to detect and predict crop spoilage, announced today that it has closed a $10.2 million Series B round of funding. The round was led by existing investor, Finistere Ventures with participation from Fulcrum Global Capital, UPL Ltd, Artesian and Mindset Ventures. This brings TeleSense’s total amount of funding to $17.5 million.

When we first wrote about TeleSense in 2018, it was focused on grain spoilage detection. Connected sensors placed in grain stores would monitor conditions like humidity and temperature to help farmers prevent spoilage.

But since then, the company acquired Dutch sensor company Webstech, and expanded TeleSense’s use case from just detection and more into prediction. TeleSense now combines it detection data with machine learning and AI to help maintain grain quality and optimize its path through the supply chain.

“Sensing temperature and humidity is nice, but that’s only part of the value,” Telesense CEO Naeem Zafar told my by phone earlier this month. “It’s beyond spoilage and more [about] operational efficiencies.”

To that end, TeleSense has also shifted its target customer. Initially, the company was going after farmers, but it has since shifted to focus more on large grain trading companies and co-ops. With its sensing and analysis technology, TeleSense can help predict how long to store grain and the optimal time to sell.

The company is also expanding into grain transportation. According to Zafar, dozens of grain barges catch fire because grains overheat. With its temperature monitoring, TeleSense sensors can help prevent this type of crop loss during transport.

In addition to prediction, Zafar said that TeleSense is also moving beyond grains and applying its technology to potatoes and other perishable commodities.

TeleSense is among a new crop of companies fighting food waste along the supply chain. Other players include companies like HWY Haul helps automate the trucking of produce, Silo aims to automate supply chain operations, and Strella Biotech, which uses IoT sensors on shipping palates to track produce freshness as it travels from farm to fork.

Headquartered in California, TeleSense also has offices in Australia and Europe.

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