Serenity Kids: Paleo Baby Food

Quartz: Serenity Kids is “marketing a line of liquid baby food that has the highest meat content of any pouched baby food. It hit the market this month. Meals include liquified uncured bacon with organic kale and butternut squash, chicken with peas and carrots, even beef with kale and sweet potato. The product is sold in packs of six 4-ounce pouches for about $27.”

“As a concept, the diet is comprised of food that would have been available to Paleolithic humans‚ which includes non-processed foods that could be found by foraging or killing animals for meat. That means no dairy, no grains, and definitely no Little Debbie Oatmeal Creme Pies.”

“Designing such a diet for very young children hasn’t come without controversy … Health officials considered it a risk because there was fear children would miss out on important nutrients during a critical stage. Complications down the road could mean poor growth and a weaker immune system, among other things … As of early August, Serenity Kids pre-sold 1,800 pouches. As of now the company is selling the food online, and hopes to be in grocery stores within the next year.”

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LVMH: A Winner in Real-Life Retail

Axios: “LVMH, the French conglomerate and owner of brands Louis Vuitton and Sephora, had a 15% rise in first-half 2017 revenue, and that did not come by running fire sales — profit was up 23% … LVMH’s success is a reason for traditional retailers to despair as much as hope. The secret behind LVMH’s success is near total control of products from conception through manufacturing and sales, the opposite strategy of traditional mass-market retailers that largely act as middlemen and little more.”

“Next to Louis Vuitton, LVMH’s most important brand is Sephora, the beauty retailer that has been gobbling up market share in the $22-billion cosmetic retail industry. Customers interviewed by Axios raved foremost about the in-store experience, with freely accessible samples of any product absent any interaction with a salesperson. If shoppers want help, these customers say, Sephora’s staff is knowledgable and eager to find them the right look.”

“LVMH is demonstrating one formula for making a success of brick-and-mortar retail. That does not mean it can rest: Even high-flying luxury retailers like Louis Vuitton must constantly innovate as e-commerce matures and offers more products and more ways to buy them.”

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Digital Scale Cuts Ikea Food Waste

Fast Company: “By the end of August 2020, Ikea wants to cut its food waste at its stores–both in its restaurants and in its smaller bistros serving cinnamon buns, hot dogs, and soft serve–in half. At the heart of this plan is a digital scale. Whenever employees in Emeryville (CA) toss food waste from the kitchen into a bin, it now records the weight of the food. On a touchscreen mounted on the wall above the bin, employees quickly record what type of food was lost, and see feedback about the cost of that food and the carbon footprint. Over time, the patterns in the data will help the company make changes.”

“Ikea began piloting its new food waste system in 2015, and began rolling it out to stores in December 2016. By May 2017, it had launched in 20% of its stores, reducing nearly 80,000 pounds of food waste and saving the company more than $1 million. It’s now in the process of rolling it out to all of its 400 stores, which serve 650 million customers a year.”

Andrew Shakman, CEO of LeanPath, makers of the digital scale, comments: “The moment you start measuring with technology you begin to change awareness levels and you cause people to start to think differently. Whereas in the past they could just throw something in the garbage, now they have to stop and for a moment; they have to record something about it. In that moment, you’re not just collecting data, you’re communicating your values.”

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Kellogg Story: The Battle of Battle Creek

Bryan Burrough: “If by chance you are reading this over your morning cornflakes, be warned … it turns out that the turn-of-the-last-century origin and evolution of the cereal industry was a very nasty and unpleasant bit of business, as Howard Markel chronicles in The Kelloggs: The Battling Brothers of Battle Creek … Dr. Markel, a professor of medical history at the University of Michigan, tells the story not only of two titans of American commerce and medicine, the brothers John Harvey and William Keith Kellogg, but of the institutions they founded, John’s Battle Creek Sanitarium and Will’s Kellogg cereal colossus—not to mention their long-running feud, one of the more spectacular in the annals of business.”

“Many of John’s patients struggled with the age’s great scourge, ‘dyspepsia,’ a medley of gas, diarrhea, heartburn and upset stomach. An American diet long on animal fat, salt and sugar produced what one historian called ‘the great American stomach ache’ … The Kelloggs (and others) thought that an easily digestible corn cereal might solve all the problems.” However, John “refused to aggressively sell the Kellogg cereal because he thought it unseemly for a medical doctor, and his increasingly famous sanitarium (“the San”), to sell a commercial product.”

Will “made a deal with John to leave the San and start a cereal company of his own, which in time became a global conglomerate. Litigation between the two brothers began almost before the first Corn Flakes box could be shipped from Will’s factory. John sued. Will countersued when John finally sold a cereal of his own. The litigation went on for years, finally ending only in 1920, by which point the damage was irreparable … In the end, the Kellogg brothers’ fortunes reversed. Will, dour and lonely, became one of the country’s wealthiest men … John, though internationally famous well into the 1930s, slowly lost many of his holdings, including, in 1920, the sanitarium itself.”

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Is Starbucks Ubiquity Hurting Its Sales?

Quartz: A Montreal-based investment bank says Starbucks “has saturated the American market so much that it’s now losing sales competing with itself.”

“On average, for every one Starbucks location in the US, there are now about four others within a one-mile radius to compete against … Over all in 2017, more than 62% of Starbucks now compete with at least one other Starbucks coffeeshop … the number of Starbucks alternatives within a mile of a Starbucks location in the company’s busiest regions have increased from three to five since 2012.”

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Brands Go Local To Beat Amazon

The Wall Street Journal: “As Amazon.com Inc.tightens its grip on retail sales, a growing number of brands are pushing back by championing local retailers. Some manufacturers are enforcing minimum advertised prices to make it harder for online sellers to undercut local merchants, while others give local stores first dibs on new products or funnel customers from their own websites to local outlets.” For example: “Luxottica Group SpA last year launched a minimum advertised pricing program that restricts the price at which its Ray-Ban and Oakley sunglasses can be advertised … The average discount on Ray-Ban sunglasses on Amazon has shrunk to about 3% as of this month from 37% in April 2016, according to Luxottica.”

“Free stroller tuneups are one way UPPAbaby, a Hingham, Mass.-based maker of baby strollers and car seats, draws customers back to local retailers carrying its products after they buy one of its strollers, which cost up to $900 … Running gear maker Brooks is testing a new app that uses an iPad connected to a treadmill to help local retailers determine which Brooks shoe best suits a runner’s biomechanics … Orb has a program designed to encourage local retailers to try out new products without worrying they might be saddled with excess inventory. At the end of each quarter, local stores can donate slow-selling items to a favorite charity. Orb then replaces the donated goods with new items selected by the retailer at no extra charge.”

“Arc’teryx salespeople use e-commerce sales data to help merchants determine which styles of clothing, shoes and backpacks are best sellers in their local market … If Simms Fishing Products had its way, the company’s waders and other fishing gear would never show up on Amazon’s website. The Bozeman, Mont., company doesn’t sell directly to Amazon, and its dealer policy specifically prohibits sales on third-party platforms … Simms employees visit local independent retailers and use computer-assisted design software to create customized Simms shops within each store.”

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Walmart ‘Academy’ Trains Workers

The New York Times: “Walmart has spent $2.7 billion on training and raising wages for 1.2 million of its store workers over the past two years — an investment that reflects the pressures the company faces in the retail industry. Fighting Amazon for sales, Walmart is trying to make its stores more pleasant places to shop. That requires a well-trained work force with a sense of purpose and self-worth, qualities that can be difficult to nurture in lower-wage workers.”

“Working in classrooms set up in 150 Walmarts around the country, employees learn how to calculate profit and loss statements and how to run their department like a small business. Managers are also taught to get to know their employees and understand their home life … The company says its training programs are intended to help employees advance into higher-paying jobs at Walmart or in other industries.”

“Walmart has been working with the National Retail Federation, a trade association, to help devise standards for a certificate that retail workers could earn for gaining certain interpersonal skills like how to deal with angry customers. The hope is that certificate holders will have an easier time finding a job or getting promoted.”

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Impossible Burgers: Food is not an App

The New York Times: “One of the chief selling points of the Impossible Burger, a much ballyhooed plant-based burger patty, is its resemblance to meat, right down to the taste and beeflike ‘blood’ …. Now, its secret sauce — soy leghemoglobin, a substance found in nature in the roots of soybean plants that the company makes in its laboratory — has raised regulatory questions. Impossible Foods wants the Food and Drug Administration to confirm that the ingredient is safe to eat. But the agency has expressed concern that it has never been consumed by humans and may be an allergen.”

“Impossible Foods can still sell its burger despite the F.D.A. findings, which did not conclude that soy leghemoglobin was unsafe. The company plans to resubmit its petition to the agency.” Rachel Konrad, a spokeswoman for Impossible Foods, states: “The Impossible Burger is safe. A key ingredient of the Impossible Burger — heme — is an ancient molecule found in every living organism.”

“Impossible Foods is finding out what happens when a fast-moving venture capital business runs headlong into the staid world of government regulation. Investors like Bill Gates and Khosla Ventures have poured money into a variety of so-called alt meat companies. Silicon Valley has noble goals, applying technological solutions to address major issues like climate change, farm animal welfare and food security. But food is not an app. It is far more heavily regulated by governments and much more heavily freighted with cultural and emotional baggage.”

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Makeup Alert: The Danger is not Cosmetic

Jane E. Brody: “When you wash your hair, clean or moisturize your skin, polish your nails, or put on makeup, deodorant or sunscreen, do you ever think about whether the product you’re using may do more harm than good? Maybe you should. Thanks to a lack of federal regulations, the watchword for consumers of cosmetics and personal care products should be caveat emptor: Let the buyer beware.”

“A current case is a classic example … When in 2013 the agency received 127 reports of adverse effects from a single line of hair-care products called WEN, it discovered that the manufacturer, Chaz Dean, Inc., had been sitting on more than 21,000 complaints of hair loss and scalp damage associated with the products’ use. A class-action lawsuit filed by more than 200 women against the company and its infomercial producer Guthy-Renker was settled last year for $26.3 million. Yet the company claims that WEN hair care products are ‘totally safe’ and continues to sell them.”

“Unlike drugs, cosmetics can be sold based solely on manufacturers’ tests (or no tests at all) and claims for effectiveness and safety. Even the ingredients don’t have to be filed with the government. (Only color additives require premarket approval.).” Former FDA Chief Dr. Robert M. Califf comments: “It’s not known how much of these chemicals is absorbed through the skin and what effect they may have over a lifetime of use. The right studies of health effects have not been done.”

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Amazon’s Buzz: A Drone Beehive?

Business Insider: “Amazon is heavily investing in drones, and one day hopes to use the unmanned aerial vehicles (UAVs) to revolutionise deliveries. Right now, it’s all still early stages — but public patent filings can offer us tantalising glimpses of what Amazon’s engineers are thinking about and experimenting as they develop the tech. For example, a key problem facing any drone deliveries is batteries and maintenance. When your drones are in the shop getting fixed, they’re not helping you make any money — so how do you keep them charged and in the air for as long as possible?”

“Amazon is exploring the idea of building special facilities that can store, repair, and deploy drones, and pre-emptively moving products and drones to areas of anticipated demand (based on seasonal trends, say, or a special event in the area) before launching them … the patent — and others like it — offers us a window into the kind of problems Amazon’s employees are grappling with, and how they might ultimately hope to solve them.”

“For example, Amazon has previously filed for a patent for a beehive-like tower for storing its fleets of drones — or as it calls it, a ‘multi-level fulfillment center for unmanned aerial vehicles’ … Amazon is also thinking about using its drones to scan your house while carrying out deliveries in order to try and sell you more stuff. If it spots one of your trees is dying, it might recommend some fertiliser to you with an advert on its website, for example.”

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