Branding The Brandless Brand

Business Insider: Brandless, “which sells food and consumable essentials all for $3 and pitched itself as the “Procter & Gamble for millennials,” first launched in July … The brand is now moving into the physical world with a pop-launching in May, called ‘Popup with a Purpose.’ It will be a ‘three-dimensional experience of the values of what Brandless is really about,’ according to CEO and co-founder Tina Sharkey. The Brandless brand will be on display, but no products will be for sale. Instead, the 3,500 square foot location on Melrose Avenue in Los Angeles will be offering samples, and opportunities to “live, learn, and love with intention,” according to a press release.”

“The pop-up will be interactive and there will be panels, workshops, and talks by experts in the fields associated with the areas of food and wellness that Brandless has staked out. Along with the pop-up, Brandless is also launching a lifestyle blog that will be focused on educating consumers of the claimed benefits of, for example, ‘tree-free toilet paper’.”

“Sharkey sees Brandless as filling gaps where the ease of shipping and low point of entry can allow people to try new things — like gluten-free baking mix — that would otherwise be either too expensive or just hard to find locally in some areas … The B.more membership program, which previously only lowered the free shipping order threshold to $48 dollars, now makes all orders ship free. The company has since started focusing on offering B.more to repeat Brandless customers.”

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Bingo Box: China Leads Robo-Retail Revolution

The New York Times: “A global race to automate stores is underway among several of the world’s top retailers and small tech start-ups, which are motivated to shave labor costs and minimize shoppers’ frustrations, like waiting for cashiers … Companies are testing robots that help keep shelves stocked, as well as apps that let shoppers ring up items with a smartphone … China, which has its own ambitious e-commerce companies, is emerging as an especially fertile place for these retail experiments.”

“One effort is a chain of more than 100 unmanned convenience shops from a start-up called Bingo Box, one of which sits in a business park in Shanghai. Shoppers scan a code on their phones to enter and, once inside, scan the items they want to buy. The store unlocks the exit door after they’ve paid through their phones … Not to be outdone, JD, another big internet retailer in China … put readable chips on items to automate the checkout process. At its huge campus south of Beijing, JD is testing a new store that relies on computer vision and sensors on the shelves to know when items have been taken.”

“While such technologies could improve the shopping experience, there may also be consequences that people find less desirable. Retailers like Amazon could compile reams of data about where customers spend time inside their doors, comparable to what internet companies already know about their online habits … In China, there is less public concern about data privacy issues. Many Chinese citizens have become accustomed to high levels of surveillance, including widespread security cameras and government monitoring of online communications.”

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Bravo: Homestyle Grocer to Latino Mets

The New York Times: “Cooks scurried in and out of the kitchen carrying containers of pork ribs, stewed beef, and rice and beans. Behind a display case of Latin American pastries, a worker hurried through coffee orders. The rapid-fire banter of Caribbean Spanish filled the air. It was the lunchtime rush at the cafeteria of the Bravo Supermarket here, but one loyal customer in particular — the Mets infielder Jose Reyes — caught the eye of the head chef, who hugged him as he took his place in line yet again, like so many Mets from Latin America hungry for home cooking.”

“Opened in 2005, the supermarket has done more than provide a dose of home comfort for players, essential as they find that. It has, at times, also offered free food for strapped athletes, occasional employment or even a cheap place to stay through Luis Merejo, an owner of the supermarket and a former baseball player himself.” Mets shortstop Amed Rosario comments: “It’s home. Every Dominican likes to eat their food, and this is the closest to my mother’s cooking. It makes me feel better. Sometimes you just want to eat your rice and beans, and Dominican-style meat.”

“Bravo is a supermarket chain with at least 60 stores in Florida and the Northeast, including the Bronx and New Jersey, in areas with a high concentration of Latinos. The Port St. Lucie location has perhaps fed the most professional baseball players … A large plate of Dominican-style rice and pigeon peas and fried plantains costs $4. Add meat for only a few more dollars. It’s a steal for minor leaguers who earn paychecks that pale in comparison to those that major leaguers receive.”

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Kochhaus: Grocery Store as Cookbook

Kochhaus: “Kochhaus is the first grocery store that is not sorted by product groups, but by creative recipes … As a walk-in recipe book, the Kochhaus offers a constantly changing range of 18 different recipes worldwide. At free-standing tables full of fresh ingredients you will find everything you need for a particular dish – for two, four or more people. At any time there is a selection of appetizers, salads and soups. With creative pasta, fish and meat dishes. And of course some tempting desserts.”

“The recipe tables with large colored plates show at a glance which ingredients are needed for a dish. With the step-by-step cooking instructions in pictures, the perfect dinner is guaranteed to succeed. Delicious delicacies and clever kitchen helpers complete the concept.”

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Supermarkets: A New Social Network?

The Wall Street Journal: “Supermarkets—those havens of the not-so-scintillating chore of scouring numbered aisles, pushing carts and perusing produce—are finding a new identity as a social hub in communities. Parents now bring their children here to play, retirees gather for Bingo, and singles find romance. Grocery stores are fulfilling the new role as traditional gathering spots, from shopping malls to social clubs like Lions Clubs and Rotary International, continue to shrink from decades-earlier peaks.”

“Market of Choice, an Oregon chain of 11 supermarkets, has reduced space for center-store aisles by 22% in recent years and devoted more room to couches, fireplaces with seating areas and restaurant-like services, says owner Rick Wright. Whole Foods says social space is the first thing to get worked into floor plans … Lowes Foods, a Winston-Salem, N.C.-based supermarket chain, has recently redesigned its stores into an animated ‘village concept’ of shops around the perimeter with giant birthday-candle lights, moving signs and employees who perform a chicken dance … At the heart of each store is a large rectangular communal table that can seat 10 to 15 people.”

“Bo Sharon, owner of Boulder, Colo.-based Lucky’s Markets, says about 25% of his stores are devoted to nonretail space, whether that’s tables in a cafe, performance areas for local musicians, or a designated community room where neighborhood groups meet. Fostering a sense of community, he says, ultimately helps drive traffic.”

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Wasted Food Eats Retailer Profits

The Wall Street Journal: “Grocers, restaurants and food-service companies waste food worth $55 billion a year, according to ReFED, a nonprofit working on food-waste reduction. Food retailers are responsible for food waste worth some $18 billion a year, roughly double the sector’s profit from food sales.”

“More investors are pushing companies to change food-waste and packaging practices that they see as a potential drag on profits in a low-margin business. Many companies are responding. Hilton Worldwide Holdings Inc., Walmart Inc. and other food retailers are working with shareholders who have raised such concerns. Costco Wholesale Corp., Target Corp. and Chipotle Mexican Grill , Inc. have acknowledged similar investor requests.”

“Amazon has struggled for years to profitably deliver groceries in part due to the logistical complexities of shipping perishable items and low customer density outside big cities. Last year, the company eliminated delivery to some ZIP Codes as it also acquired the urban-focused Whole Foods Market chain.”

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Supermarket Future? Not Plastics!

The New York Times: “A supermarket in the Netherlands wants to make it easier on the planet and easier for its customers to avoid adding to the mountains of plastic waste generated every day … the supermarket, Ekoplaza, an upmarket chain, introduced what it billed as the world’s first plastic-free aisle in a store in Amsterdam. There, shoppers found groceries, snacks and other sundries — but not an ounce of plastic. The items are packaged in compostable materials or in glass, metal or cardboard.”

“Sian Sutherland, co-founder of A Plastic Planet, an advocacy group that has pushed the concept, said the initiative was ‘a landmark moment for the global fight against plastic pollution.’ The plastic-free aisle contains about 700 items, including meats, sauces, cereals, yogurt and chocolate. The opening of the supermarket aisle comes as the idea of banning plastic, or at least making more of it recyclable, gains supporters around the world.”

“In the Netherlands, free plastic bags were banned two years ago, after a European Union directive was passed in 2015 to phase them out. At the time, the country of about 17 million used around three billion bags each year, most of which ended up in the trash. Ekoplaza has promised to expand the plastic-free idea to all of its 74 stores by the end of the year.” Ms. Sutherland comments: “There is absolutely no logic in wrapping something as fleeting as food in something as indestructible as plastic.”

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Alexa Challenges Brand Loyalty

The Wall Street Journal: “For decades, the makers of packaged-food, personal and home-care brands have bought shelf space at retailers like Walmart Inc. and Costco Wholesale Corp. that guarantee them nationwide exposure. They have poured billions into branding to make their products instantly recognizable. Selling on websites offers some of those same advantages: Brands can pay for placement on a webpage and display their packaging and logos. Voice shopping, which currently offers customers just one or two product options, could chip away at that tried-and-tested model.”

“In a test conducted in October, Bain & Co. found that for customers making a first-time purchase without specifying a brand, over half of the time Alexa’s first recommendation was a product from the ‘Amazon’s Choice’ algorithm, which implies a well-rated, well-priced item that ships with Prime. Bain also found that in categories in which Amazon has a private brand, 17% of the time Alexa recommends the private-label product first even though such products make up just 2% of volume sold.”

“For now, brands can’t pay Amazon to offer their products to customers in response to a generic request for a product, like detergent or paper towels …Without that paid-search option, P&G has been tinkering with ways to get noticed by shoppers using voice assistants, such as a Tide-branded Alexa app that doles out advice on how to clean over 200 stains but doesn’t suggest Tide products … Unilever, owner of Hellmann’s mayonnaise and Domestos toilet cleaner, has developed Alexa apps that give free recipes and cleaning tips that may or may not incorporate Unilever brands. Unilever sees the apps as a way to market its products by offering customers useful information when they need it most.”

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Efficiency Is No Cure for Phony Baloney

The Wall Street Journal: “Over the past 2½ years, thousands of workers lost their jobs, and iconic Kraft buildings, including the original Oscar Mayer headquarters in Madison, Wis., have been shuttered and sold. The cost-cutting project is now wrapping up, giving Kraft Heinz Co. the highest operating profit margin among its peers in the U.S. food industry.”

Troy Shannan, Kraft Heinz’s head of North America supply chain, comments: “We look at pretty much any opportunity we have to drive efficiency. And we use the savings from those efficiencies to reinvest in our brands and our businesses and back into our supply chain.”

“Still, Kraft Heinz is grappling with a problem that can’t be solved by increasing efficiency: U.S. sales of cold cuts and other processed meats slipped to $21.3 billion last year, from $21.9 billion in 2015. Oscar Mayer’s market share dropped to 17.5% from 18% five years ago, according to Euromonitor. Natural and organic brands, as well as small labels buying from local farms, have nibbled away at sales. ‘Consumers are looking for something they think is handmade or looks handmade,’ said Chris Fuller, a consultant to meat processors.”

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Retail Theater: The Shellfish Spa

Supermarket News: “Retailers say making the shopping trip an experience is one way they can drive traffic into their stores. And a little theater in the seafood department is actually helping to drive sales, according to one Northeast retailer, Shoprite, which has added the Shellfish Spa. The device preserves live product such as clams, oysters, mussels, steamers and cockles while presenting them in an eye-catching display. The container bathes shellfish in a continuous stream of saltwater and maintains an ocean-like environment for peak freshness.”

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