Two Buck Chuck: What Makes it So Cheap?

Business Insider: “Trader Joe’s wine is remarkably cheap. A bottle of the grocery store’s most popular wine brand, Charles Shaw (aka Two Buck Chuck, made by Bronco Wine) sells for less than $3.” What makes it so inexpensive? #1: “Most of the company’s vineyards are located in California’s San Joaquin Valley, where the cost of land is much cheaper than the more prestigious Sonoma or Napa Valley … Higher average temperatures in San Joaquin Valley can over-ripen grapes, which is a main contributor to the price difference between the regions.”

#2: “The company ferments wine with oak chips, which are cheaper than barrels.” #3: “The company uses … a mold of cork pieces glued together with a ‘real cork veneer at the bottom’.” #4: “Making wine in huge quantities keeps production costs low … The company uses machines to harvest the grapes, which helps keep labor costs low, but also increases the chances that bad grapes end up in the wine … Critics argue that mass production is also how animal matter can end up in your wine glass. But to be fair, there’s a chance of that happening with most agricultural products.”

#5: “Bronco cuts shipping costs by using lightweight bottles and cheap cartons … The lighter glass reduces the weight of a case of wine by several pounds, meaning Bronco can ship more wine at a time. Bronco also lowered the cost of its shipping cartons by a few pennies by replacing the white paper it was using with a light brown paper.”

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Redbro Chickens: Slow Growth, Better Taste

The New York Times: “Perdue Farms, one of the country’s largest chicken producers, has been raising what are known as slow-growth chickens side by side with the breeds that have made the company so successful. The new birds, a variety known as Redbro, take 25 percent longer, on average, to mature than their conventional cousins, and so are more expensive to raise.”

“Perdue is trying to find just the right slow-growth breed, and it has a strong incentive: A fast-growing cohort of companies that buy vast quantities of poultry, including Whole Foods Market and Panera Bread, are demanding meat from slow-growth chickens, contending that giving birds more time to grow before slaughter will give them a healthier, happier life — and produce better-tasting meat.”

“Consumers would … have to accept some trade-offs: While the new chickens have a fuller flavor, their meat tends to be distributed differently over the body, with more generous thighs and smaller breasts than the chicken most Americans are used to … In marketing slow-growth chickens, Perdue and others will have to make consumers understand why they are paying a higher price … the suggested retail price of a Sonoma Red (from Perdue’s Petaluma Poultry) that weighs four pounds is $16.”

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IKEA Asks: Do You Speak Human?

The Verge: ‘If you put an AI in charge of your house — letting it control the lights, the alarms, the temperature, and so on — how would you want it to act? Should it be ‘autonomous and challenging’ or ‘obedient and assisting’? Would you prefer if it sounded male, female, or if it was gender neutral? Should it be religious? These are just some of the questions Ikea is asking its customers in a new survey titled: Do you speak human?”

“With this new survey, Ikea is focused on computer personality, looking to find out what sort of AI people would be happiest to interact with. This is a question that preoccupies the big tech companies, too — that’s why they’re hiring novelists and comedians to finesse the personality of their digital assistants.”

“Ikea is updating the results of the survey as it goes; so far it’s saying that 41 percent of people want their AI to be ‘obedient and assisting,’ 42 percent want it to be ‘gender neutral’ (as opposed to 35 percent for male, 24 percent for female), and 87 percent say they want their AI to ‘detect and react to emotions.’ There’s bound to be some self-selecting bias at work here, as the people who answer this survey are more likely to be interested in technology in general, but it’s still a very intriguing project.”

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Fresh Squeeze: Packaged Goods Retreat at Retail

Wall Street Journal: “ShopRite and other grocery-store chains around the country are building new stores that have less space for traditional packaged foods in the center aisles and more for in-store restaurants and fresh meals shoppers can take home … That means less space for traditional packaged-food brands, which are also facing increased competition from store brands and smaller upstarts.”

“The shift in shopper preferences started several years ago, but its impact on big food makers is intensifying now because of added pressure from retailers. That has exacerbated what has been a drumbeat of bad news for packaged-goods companies grappling with American consumers’ sustained move toward natural, organic foods. A long stretch of falling food prices, fueled by excess supplies of staples like meat and dairy, have also lowered costs for consumers at supermarkets, giving them more reason to choose fresh food over boxed meals.”

“Some brands are seeking ways to get their products into the fresh and prepared foods section of the store … (however) retailers such as Wal-Mart Stores Inc. are pressuring big brands to lower their prices as a way to attract customers. Companies like Hershey and PepsiCo Inc. said they are working with retailers to be creative.” PepsiCo CEO Indra Nooyi comments: “That’s a conversation we’ve been having with some of the retailers, to say ‘how can we help you rethink the center store so that we can bring growth back … Our hope is that with the rejuvenation of the center store, our categories will grow, too.”

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Little Damage: Almond Charcoal Ice Cream!

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April Lavalle: “Little Damage Ice Cream Shop in Los Angeles, California is flipping the bird at all those ‘unicorn’-inspired sweet treats by creating a frozen confection that will take you to the dark side.Their pitch-black, almond-charcoal flavored soft serve ice cream is taking Instagram by storm, and it will definitely inject a little Halloween into your favorite summer treat.”

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YamChops: Veggie Butchers Let it Bleed

The Wall Street Journal: Michael Abramson, “a 62-year-old vegan, is the proprietor of YamChops, a faux meat market where every patty, link, and fillet is made from edible plants. To entice “veg curious’ meat eaters as well as vegetarians, he takes great pains to make sure his substitutes look as much like the real thing as possible … So his ground beet burger—actually a medley of beets, carrots, turnips, and zucchini bonded with brown rice and mashed potatoes—doesn’t just resemble a beef burger. It oozes a reddish-pink juice, to appeal to those who like it when their burger ‘bleeds a little bit,’ he says.”

“Mr. Abramson is part of a small but growing community of ‘vegetable butchers’ opening shop from Northern California to Sydney to The Hague, hoping to wow discerning diners with substitute lox crafted from carrots and jerky fashioned from wheat gluten … Some staunch vegans and vegetarians say the word butcher should be verboten because it describes the killing of animals. Some traditional butchers and meat lovers meanwhile are rankled by the co-opting of a term they view as theirs. Many are just confused about the point of it all.”

Consultant Michael Whiteman comments: “Why do soldiers in the anti-meat brigade want food that looks like a hot dog and tastes like a hot dog and smells like a hot dog, but isn’t a hot dog? The answer is, of course, they like hot dogs!”

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Vegas Shuffle: Invasion of the Drink Bots

The Wall Street Journal: “As Las Vegas has transformed into one of the world’s most-visited tourist destinations, casino operators are re-examining the perks that historically lured gamblers. Over the past year, casinos have started charging for parking at resorts on the Strip … Now operators have started scrutinizing complimentary drinks, introducing new technology at bars that track how much someone has gambled—and rewards them accordingly with alcohol.”

“It’s a shift from decades of more-informal interplay between bartenders and gamblers … On a recent night at a bar inside the Paris Las Vegas casino, Jamie Balazs and her father were getting used to the new drink-monitoring system. They had just been instructed on how much they needed to put into the machine to allow booze to flow. A bartender told her to push the “max bet” button four times, she said. She said she understood the desire to weed out freeloaders who aren’t gambling but found the instructions off-putting.”

“Her father, Jim Fletcher, was in town with a group to celebrate his 70th birthday. As a top-tier member in Caesars Entertainment Corp.’s rewards program, he felt the new system was ‘insulting’ … Bartender James Tanner said the system has made his job easier because he can avoid awkward debates with customers who were lingering at machines but not really playing.”

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How To Kick Out Your Customers

The Wall Street Journal: “Letting guests linger as long they please could cost an extra $30,000 a year. Getting folks out is a tricky task for nearly every type of businesses. Jonathan Greenstein, owner of J. Greenstein & Co., a Cedarhurst, N.Y., auction house for antique Judaica, says some people linger past viewing hours at the pre-auction exhibition, but never appear at the auction itself … Still, it’s impossible to identify the big spenders, so he gives everyone the benefit of the doubt.”

“The bigger the venue, the more massive the operation, of course. At the Brooklyn Botanic Garden, an army of guards warn guests 45 minutes before closing, starting in the center of the 52-acre spread to ensure visitors farthest from the exits reach the gates in time. At Macy’s in Manhattan’s Herald Square, about 15 minutes before the posted closing time clerks fan through all 1.2 million square feet of retail space, offering help with final transactions and checking all 850 fitting rooms.”

“Of course, if patrons really want to stay, why not let them? The American Museum of Natural History in Manhattan, which warns guests of closing time in several different languages, gave in to demand a few years ago and started offering adult sleepovers. For $350, patrons can camp overnight under the famous blue whale. Such events have sold out within a day, the museum says.”

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Must to Avoid: Loser Experience Design

Matt LeMay: “Yes, in the short-term, people may engage with a product for an abstract reward such as ‘points’ or ‘coins.’ But watch what happens as your users see themselves fall to the bottom of that ‘leaderboard’ or fail to get any real value out of the time they’ve invested in earning those shiny trinkets. Competing for something only to realize that it’s worthless is embarrassing, frustrating, and makes you feel like a huge loser. Gratuitous ‘gamification’ is one of the most odious and lazy patterns of bad loser experience design — and in the long term, it doesn’t work.”

“While bad loser experience design can significantly harm a product, good loser experience design can help foster a broad, engaged, and self-sustaining user base … When platforms focus on shared interests and social bonds over ‘likes’ and ‘favorites,’ they help everybody find a place where they belong. Instagram has done a great job doing this with their discovery features, consistently surfacing people who are adjacent to your people, not people with the most likes or followers.”

“Finally … break out of the design and testing patterns that lead to equating ‘power users’ with ‘good users.’ Over-reliance on internal ‘dogfooding,’ where new products and features are tested primarily with a company’s own employees, is a one-way ticket to bad loser experience design. Dismissing user testing candidates who are not over the moon for your product is another surefire road to bad loser experience design. Think through the needs and behaviors of casual users as extensively as you think through those of power users — and ask yourself, ‘if I only use this product a few times a week, will it make me feel like a loser?'”

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