Crisp, a New York-based retail data company, has acquired Seattle-based startup Shelf Engine. Founded in 2016 by Stefan Kalb and Bede Jordan, Shelf Engine specializes in using machine learning to optimize ordering processes for perishable goods, with the goal of reducing costs and minimizing food waste. The platform is now in use across more than 7,000 stores. Terms of the acquisition were not disclosed.
Shelf Engine was one of the earliest adopters of AI technology in food retail aimed at reducing waste and optimizing fresh food ordering. Kalb, who launched a food distribution business at 23 and holds degrees in actuarial science and economics, developed the idea during a 2014 ski trip with his friend and engineer Bede Jordan, a former Microsoft HoloLens developer. The pair questioned why food industry processes and systems remained outdated:
“Could we create a platform that enables retailers to buy food and eliminate significant waste? Could we create a platform that eliminates redundant busywork between vendors and retailers? Could we create a more perfect marketplace?”
These questions led Kalb and Jordan to develop a product designed to drive the food industry towards greater efficiency through technology.
Kalb reflected on the deal on LinkedIn:
“What started as a side project with my good friend Bede turned into a platform that’s now in over 7,000 stores across the U.S., helping reduce millions of pounds of food waste. It’s been eight years of wild highs, humbling challenges, and so much growth.”
Crisp plans to integrate Shelf Engine’s advanced algorithms into its commerce platform. The company believes the integration will help its retailer customers optimize in-stock inventory, improve shelf management, and drive revenue in an increasingly margin-sensitive retail environment.
“Joining forces with Crisp allows us to scale our proven technology and deliver greater value to retailers and their supplier partners,” said Kalb. “Together, we will set a new standard in forecasting and inventory management, helping our customers thrive even in challenging market conditions.”
This news is yet another in a series of acquisition announcements for early pioneers who are building technology leveraging AI to optimize different parts of the food value chain. Earlier this month AI Palette was gobbled up by trend forecaster Global Data, and before that Spoonshot was acquired by Target. Like other buyers in these deals, Crisp provides predictive intelligence software and services and is buying Shelf Engine to improve their AI insights capabilities.
Unlike these previous deals, Crisp and Shelf Engine focus more on retail and supply chain commerce optimization, which is one of the areas that is seeing the greatest leaps forward in productivity and cost-reduction. My guess is Afresh, which is similar to Shelf Engine and remains independent following its $115 million in series B funding in 2022, may also be one of the next companies gobbled up as bigger software and supply chain players look to add AI capabilities to their products.
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