MacBlur: Apple Melds Laptops & iPhones

The Wall Street Journal: “Laptops, which haven’t been exciting for years, are about to get interesting again … Many manufacturers are already using mobile chips from smartphones in laptops running Google’s Chrome OS, and are starting to put them in laptops running Microsoft Windows. Apple Inc. already designs its own chips, which are arguably the fastest mobile processors in the world—will it use them in its own MacBooks? A shift in this direction would blur the line between laptops and mobile devices further, changing our expectations of computers large and small.”

“So imagine something that looks like a MacBook and works like a MacBook, but has the guts of an iPhone. In addition to things like facial recognition and AR capabilities, it could have longer battery life, built-in always-on connectivity to fast 5G networks, and more … The size of the circuitry on a microchip, known as a process node, determines its power consumption, performance and cost. The smaller the transistors on the chip, the wider the variety of stuff you can put on it, such as wireless modems, GPS receivers, image processors and the like. Each new silicon breakthrough is named after the ever-smaller distance between certain chip components, measured in nanometers.”

“Apple is also pushing capabilities such as on-device artificial intelligence, which could enable better voice recognition and other capabilities, and the company aims to support only its own graphics software in the future. Because Apple’s in-house chip designers only have one customer—Apple—they’re able to tune its silicon to run all these things as fast as possible.”

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How Ben & Jerry’s Creates Flavors

Fast Company: “Ben & Jerry’s tastemakers don’t just rely on their own judgment … After assembling a couple hundred ideas, the Gurus then turn to a surprisingly low-tech yet crucial source in order to whittle them down: email surveys. Close to 200 flavor possibilities enter the ‘reduction’ stage. Only about 15 make it through. The team sends out a short survey to a representative slice of its massive email list of ice cream enthusiasts. The survey is extremely straightforward; it consists of a one-sentence description of each of the 200 flavors, followed by the same two questions apiece: How likely are you to buy this flavor? How unique is this flavor?”

“Respondents are asked to rank their answers on a five-point scale. According to the Flavor Gurus, the goal is to zero in on flavors that are both familiar and novel.”

“The second question, ‘How unique is the flavor?’ helps Gurus ensure they’re maintaining enough novelty in the flavor pool. Based on the survey data, the team settles on the 15 flavors they believe have the ideal balance of novelty and familiarity. This is the reduction step, and it’s likewise a key part of many creative processes. To generate ideas that stick, you need to go from a wide-ranging list of plausible ideas to a data-driven subset of the ones that have the strongest likelihood of succeeding, based on whatever metrics for success you’ve outlined.”

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Meatless Meat Stampedes Grocery Stores

The Wall Street Journal: “For thousands of years, meat came from slaughtered animals, and milk was squeezed from cows. Tech-style disruptions are now upending supermarket meat cases and turning the stomach of cattle ranchers … dismayed to find the meat replacements sold next to the real thing. High-tech startups are building burgers from plant proteins and compounds that grill and taste more like the real thing than old-fashioned veggie burgers. Other firms are using cell-culture technology to grow animal muscle tissue—otherwise known as meat—in stainless steel bioreactor tanks, similar to the fermentors used to brew beer.”

“The U.S. Cattlemen’s Association has petitioned the Agriculture Department to bar plant-based products from bearing labels that say ‘beef’ or ‘meat,’ with similar restrictions on meat grown from animal cells … Stakes are high for the roughly $200 billion U.S. meat market. Sales of alternative meat products account for less than 1% of fresh meat sales in the U.S. but are growing at an annual rate of 24.5%, according to Nielsen Total Food View.”

“To get better exposure, Beyond Meat requires that retailers carry its products in the grocery meat section, rather than the frozen foods case—what Mr. Brown called the ‘penalty box.’ Alison Pham, 22, of Bokeelia, Fla., is a vegan who sees the realistic looking Beyond Meat patties as a way to get her father to try a plant-based diet. She reaches for the package in the same meat-filled cases she long avoided.”

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Reefer Madness: The New Meaning of ‘Fresh’

The Wall Street Journal: “Refrigerated containers known as “reefers” can keep food fresh for more than a month, allowing distributors to safely send everything from orange juice to lobsters around the world. In the past, those trips were mostly reserved for bananas because only major distributors like Chiquita Brands International Inc. could afford to hire cargo ships with large refrigerated spaces. Meanwhile, the growing affluence of the global population, especially in Asia, has boosted demand for more-expensive foods.”

“The main reefer trade is from the Southern Hemisphere to the north. Exporters in places like South America, South Africa, Australia and New Zealand move fresh produce to supplement demand in the north during the winter months. The U.S. and Canada are also exporters of vegetables, citrus and other fruit along with meat and seafood, mainly to Asia.”

“One of the smaller customers, Peru’s Sun Fruits Packs SA, last year shipped 700 reefers of grapes to Philadelphia and 220 containers of avocados to Spain and the Netherlands … It takes as long as 18 days to ship grapes from Peru to Philadelphia. The fruit “is put to sleep” in a controlled atmosphere that delays the ripening process before it’s distributed to supermarkets across the East Coast.”

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H&M Stores Buy Into Big Data

The Wall Street Journal: “H&M, like most retailers, relies on a team of designers to figure out what shoppers want to buy. Now, it’s using algorithms to analyze store receipts, returns and loyalty-card data to better align supply and demand, with the goal of reducing markdowns. As a result, some stores have started carrying more fashion and fewer basics such as T-shirts and leggings … H&M’s strategy of using granular data to tailor merchandise in each store to local tastes, rather than take a cookie-cutter approach that groups stores by location or size, is largely untested in the retail industry, consultants say.”

“The H&M store in Stockholm’s swanky residential Östermalm neighborhood hints at how data can help. The store used to focus on basics for men, women and children, with managers assuming that was what local customers wanted. But by analyzing purchases and returns in a more granular way, H&M found most of the store’s customers were women, and fashion-focused items like floral skirts in pastel colors for spring, along with higher-priced items, sold unexpectedly well.”

“With the help of about 200 data scientists, analysts and engineers—internal staff and external contractors—H&M also is using analytics to look back on purchasing patterns for every item in each of its stores. The data pool includes information collected from five billion visits last year to its stores and websites, along with what it buys or scrapes from external sources … The chain uses algorithms to take into account factors such as currency fluctuations and the cost of raw materials, to ensure goods are priced right when they arrive in stores.” Nils Vinge of H&M comments: “The algorithms work around the clock and adjust continuously to the customers’ ever-changing behavior and expectations.”

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The Costco Pizza Sauce Robot

Reader’s Digest: “Costco works hard to make sure their pizza is practically perfect every time, and it’s all thanks to a secret pizza robot. This magical machine evenly distributes their sauce on the pizza dough… The gourmet gadget is actually pretty mesmerizing to watch in action.”

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The New ‘Choice’ in Convenience Stores

The Wall Street Journal: “In 2,700 square feet, about the size of a Chipotle, Choice is open 24 hours a day and sells staples like pasta, milk and yogurt, specialty items like quinoa, and an array of fruits and vegetables. You’ll also find beer and kombucha on tap, and snacks that skew toward multigrain chips and seaweed but also include Doritos. The interior sports white subway tile, reclaimed wood and other design codes that telegraph hip sustainability. What is Choice? A restaurant? A grocery store? Neither, said founder Mike Fogarty. It’s a convenience store.”

“Choice Market, Green Zebra Grocery in Portland, Ore., Foxtrot in Chicago, the Goods Mart in Los Angeles and Amazon Go in Seattle are open long hours (if not 24) and use the same small spaces to offer a wider range of options. You could meet a friend for coffee, pick up a few reasonably wholesome items for dinner or even fill up a growler of beer … Traditional players, too, are adding hardwood floors and more attractive lighting. Wawa, the mid-Atlantic chain famous for its hoagies, is rolling out customizable salads across their 790 stores and testing delivery.”

Lisa Sedlar, the founder of Green Zebra Grocery, comments: “People will come in and say this isn’t a convenience store, And I say, ‘Of course it is.’ We are redefining what it means to be a convenience store in America.”

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Ocean Medallion: Smooth Cruising on a ‘Smart’ Ship

Quartz: John Padgett, chief experience and innovation officer of Carnival Cruises, “previously worked for Disney, where he was instrumental in the creation of the MagicBand, a wristband meant to help reduce the aggravations of the typical Disney vacation … At Carnival, Padgett and his team quickly set out to create Carnival’s own version of the Disney MagicBand, called the Ocean Medallion. It uses AI to take the MagicBand technology to another level. Instead of just alleviating the ‘friction’ of typical travel experiences (lines, room keys, paying for things) it will use data to anticipate what you want to do, eat, and see.”

“The Medallion, offered first on Carnival’s Princess cruise line, is about the size of a quarter … It facilitates boarding and cuts down on wait times. It can be used to pay for things on the cruise, it unlocks the door to your room as you approach, and can be used on the ship-wide gambling platform. Carrying the Medallion means the staff knows your name and where you are. If you order a drink, they can come find you to deliver it. If you go to another bar on board, the staff already knows what you like. The Medallion also updates your information, keeping track of your likes and dislikes, what activities you enjoy, and what you consume. It anticipates other activities you’ll enjoy and the side trips you’ll want to take.”

“In many ways the Medallion is a beta launch of the first fully wired smart city. What it takes to make it work could one day be used on land. Padgett says the technology is innovative because the preferences you reveal are updated in real time. You order a Martini and every crew member on the ship instantly knows more information about you, and is that much closer to determining whether you might enjoy trying scuba diving—or just kicking back in your stateroom with an old episode of The Love Boat.”

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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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