How FreshDirect Lives Up To Its Name

The Wall Street Journal: “FreshDirect launched its online-only service in 2002 in New York. Its green and orange trucks now provide next-day delivery to customers across the New York-New Jersey, Philadelphia and Washington, D.C., metropolitan areas, with plans to expand into Boston next … Amazon, Target Corp. and other large companies have invested hundreds of millions of dollars to expand food delivery and build out their grocery e-commerce operations. Supermarket chain owner Koninklijke Ahold Delhaize NV’s Peapod unit, the longest-running online grocery service in the U.S., has expanded to 24 markets and is investing in technology to cut its handling and delivery costs.”

“The grocers are trying to solve one of the toughest problems in home delivery: Getting food to doorsteps in the same condition consumers would expect if they went to the store themselves … FreshDirect’s logistic hurdles start well before delivery. It must get products from its suppliers to the building, process the food, then pick, pack and ship orders before the quality degrades. That is why its new facility has 15 different temperature zones … Software determines the most efficient route for each order, and tells workers which items to pick … The site has shaved the time it takes to fulfill an order by 75%, according to FreshDirect, and doubled the number of items picked per hour, compared with the pace at its old facility in Long Island City, Queens.”

“The stakes in getting the technology right are high. FreshDirect is competing with grocery chains that often fill online orders through their stores, using a mix of staff and third-party services like Instacart Inc .. Online-only operations with centralized warehouses tend to be more efficient than logistics run out of stores, because they use fewer workers and can position goods for faster fulfillment, said Judah Frommer, a food retail analyst with Credit Suisse … FreshDirect says its relatively small scale also can be an advantage since it doesn’t have to be all things for all shoppers.” FreshDirect Chief Executive Jason Ackerman comments: “We focus on being the best local food, fresh food retailer. And a lot of the tech is to support that.”

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UK Grocer Intros ‘Quiet Hour’

Quartz: “One of Britain’s largest supermarket chains has introduced a weekly quiet hour for customers who struggle with the noise associated with grocery shopping, like those on the autism spectrum.”

“Every Saturday morning from 9 to 10, each of Morrisons’ nearly 500 stores will dim the lights and shut off music. They’ll also try and deaden the cacophony of sounds that pervade supermarkets across the world—checkout beeps and the clangs of carts and baskets will be minimized as much as possible, and public-address announcements will be eliminated.”

“Around 700,000 people are on the autism spectrum in the UK. Grocery behemoth Tesco has conducted a six-week quiet hour trial, and many businesses across the UK had a one-off awareness-raising quiet hour in October. Morrisons is the first chain to roll out a weekly initiative in all of its stores.”

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Bowl Food: Comfort in Troubled Times?

The Wall Street Journal: “A good rule for modern eating seems to be: When in doubt, put it in a bowl. Gone are the days when bowls were used only for soup or cereal. These days, we put all manner of things in bowls that once had no place there, from poached eggs to smoothies. Even Prince Harry and Megan Markle chose to offer breakfast food to guests at their wedding in bowls rather than on plates … Capacious bowls feel like the right container for the Asian-oriented dishes that many of us now prefer, not to mention pasta.”

“A ‘wellness bowl,’ also known as a Buddha bowl, reassures the eater that they have all their nutritional bases covered. The ingredients are all visible, one after another, like bullet points on a to-do list: tofu, green vegetables, quinoa, some kind of obscure seeds … Our abandonment of plates for bowls suggests that we are reverting to the simpler times of one-pot cookery, liberating ourselves once and for all from fork anxiety. Today, the thing that we are most short of in the kitchen is not necessarily money but time. Sales of bowls have climbed in tandem with the rise of the Instant Pot and the pressure cooker, time-saving gadgets that produce tasty dishes too sloppy for a plate.”

“Both bowls and spoons have always been associated with children; spoons are the most benign utensils, lacking the sharp edges of a knife or the spikes of a fork. It is from a bowl that most of us take our first gummy mouthfuls of solid food. The rise of the bowl in our lives suggests that many eaters are in a permanently fragile state, treating every meal as comfort food. In a world of alarming news, maybe we all need something to cradle.”

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America’s Most Exciting Bank

The Wall Street Journal: “To Michael Daly, who runs Berkshire Hills Bancorp Inc., BHLB -1.22% banking is too often blasé. So Mr. Daly has adapted an unconventional rulebook meant to energize and empower his 1,900 employees. Suits are not allowed. Rock music must be played at every meeting. And ziplines are an acceptable form of transportation: Mr. Daly once arrived at an employee town hall on one, slinging $100 bills to the crowd below … In an industry built on numbers, Mr. Daly believes in emotions and that employees who feel good will do good work. He started calling his company ‘America’s Most Exciting Bank’ years ago, because workers told him they wanted jobs they enjoyed.”

“Since he became chief executive in 2002, the bank has grown to $11.5 billion in assets as of the first quarter, from about $1 billion. During acquisitions and their accompanying job cuts, Mr. Daly hands out his cellphone number freely and encourages employees whose jobs are on the line to ‘come get in my face.’ The ones that do call often prove worth keeping. ‘You would be shocked at how many high performers we find through that,’ he says.”

“Mr. Daly often hires from outside the banking industry, valuing scrappiness over pedigree. He likes to tell the story of two customers that he struck up a conversation with at a branch in Albany, N.Y. He liked their energy, and hired them away from the clothing store where they worked to do customer service for the bank … For all his swagger, Mr. Daly also likes to play the part of a small-town banker. He said he sends a couple hundred handwritten notes to employees every month, and replies to just as many employee emails.”

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Slow Sizzle: Raising The Peak Steak

The Wall Street Journal: “There are cows that eat only grass and roam free. There are Kobe cattle, whose muscles are massaged for months to tenderize the meat they eventually produce. And then there are José Gordon’s oxen. An animal lucky enough to be part of the restaurateur/rancher’s herd in northwestern Spain gets to laze about in mountain pastures redolent of thyme and other fragrant herbs. It is stroked with metal brushes. It might even get a pedicure … the cattle in Mr. Gordon’s herd are allowed to live for years, sometimes close to their life spans of nearly two decades, before being turned into steaks for his restaurant.”

“Mr. Gordon, proprietor of Bodega El Capricho in Spain’s Castille-Leon region, believes he knows when an animal in his herd has finally reached its peak condition and is ready for the abattoir. He decides this by the look and feel of the animal. It’s a matter of instinct, Mr. Gordon says. A few weeks too long or too short can mean less-than-perfect meat … The current king of Mr. Gordon’s herd is 16-year-old Divino, a majestic animal of 3,700 pounds, nearly triple the weight at which most beef cattle go to market. Mr. Gordon has nicknamed him El gran jefe—the big boss—for his haughty manner.”

“Such care doesn’t come cheap. Mr. Gordon estimates each animal costs nearly $3,000 a year, in a combination of its feed, hoof care and vet bills, which is at least twice the cost of traditional ranching. A steer like Divino, who will probably go to slaughter this year, will have cost more than $30,000 to raise. Mr. Gordon says he breaks even on most animals, charging €120 a kilo (about $63.50 a pound) for a premium chuleta steak that he says is more delicate than regular beef … Mr. Gordon admits he loses money with some of the animals he keeps longest.” He comments: “I believe that what I do is mystical, magical. It goes beyond profitability. This is my work and my world. I would never change it.”

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Lucky’s: Like a Hardware Store for Groceries

The Wall Street Journal: “Lowes Foods, a chain in North and South Carolina, introduced gourmet sausage stations and “beer dens,” where customers can drink while they shop or get a half-gallon jug filled with a craft beer, in 14 locations four years ago. After they were launched, ‘there was an immediate, noticeable increase in the number of men shopping in our stores,’ says Heather George, senior vice president of brand strategy. The male-focused amenities are now featured in 61 stores.”

“Hy-Vee Inc., a Midwest chain of more than 240 supermarkets, revamped its store recipe magazines this year to include sports stars on covers and weightlifting spreads … Mega Meat sales, where customers earn gas discounts, are particularly popular, Hy-Vee says … At Alfalfa’s Market, a Boulder, Colo.-based grocery-store retailer, the percentage of men shopping has risen to 40% from 30% while the share of female customers has declined, says co-owner Tripp Wall. He is currently expanding the company to 10 stores from its current two, and working with architects to incorporate more of a male point of view into designs.”

“Based on his observations of customers, Mr. Wall says, men like when they can see the exit, even when they are deep in the middle of the store. … The meat department offers butchery classes. Stores have even had requests for more-masculine floral arrangements.” Jonathan Schoenberg, a 50-year-old dad who shops at Lucky’s in Boulder, Colorado, comments: “Most supermarkets are pastel colors and sell tons of flowers, and the language is merry-merry, happy-happy … Lucky’s feels like a hardware store with groceries.”

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Stout Sells Out: How Big Beer ‘Goosed’ Sales

The Wall Street Journal: “The popular image of the brewing industry is of a war between Craft and Big Beer. It’s small, independently owned breweries facing off against multi-billion-dollar corporations hawking bland-tasting beer with outsize control over the global market. These terms are useful for drawing battle lines in the beer world, but as Josh Noel explains in ‘Barrel-Aged Stout and Selling Out,’ the reality is slightly more complicated … Mr. Noel’s book recounts the rise of Chicago-based Goose Island Brewery, a vanguard name in craft brewing that was purchased in 2011 by Anheuser-Busch InBev, the biggest and baddest beer maker on the planet.”

Goose Island was founded in 1988 by John Hall, a box-company executive with a taste for European beers … Big Beer could not afford to ignore upstarts like Goose. Anheuser responded to the craft-beer boom by developing its own artisanal styles and buying stakes in a number of small breweries. But the threat to Big Beer seemingly abated when craft’s swift advance suddenly skidded to a halt … That downturn was one factor that led it to agree, in 2006, to the sale of a large minority stake—to a brewing company partially owned by Anheuser.”

“Goose sales spiked 60% within a year. In 2004 Goose had produced 50,000 barrels of beer; in 2011 that number had tripled. But its success became its own obstacle: Goose couldn’t brew enough beer to meet insatiable demand. So it ‘sold out’—agreeing in March 2011 to a 100% sale to Anheuser for $38.8 million … There’s a contradiction at play in the relationship between craft beer and big business. On the one hand, as Mr. Noel spells out, craft won the war by forcing the world’s largest brewer to change. On the other, it lost by being commandeered by that very same company.”

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Walmart Engages in Retail Politics

The Wall Street Journal: “Political divide in the country is creating a new landscape for business, in which fierce debates often lead consumers and employees to demand that corporations and chief executives take positions on big issues. That is increasingly pulling Walmart, the world’s largest retailer and largest private employer, into weighing in on issues such as immigration, the Confederate flag and gay rights—generally after other companies or politicians have done the same.”

“Under its 51-year-old chief executive, Doug McMillon, Walmart has often taken a more liberal stance on issues in recent years—a gamble for a company based in Red State Arkansas. But executives see its approach as part of its mission to let potential shoppers and employees know the company aims to be socially engaged. It’s a big change for a company that built itself as a ruthlessly efficient business focused on affordable shopping and that generally avoided taking a stand on political issues.”

“Today, around 72% of Walmart shoppers want the company to ‘take a stand on important social issues’ and 85% want the retailer to ‘make it clear what values you stand for,’ said Walmart’s chief marketing officer, Tony Rogers, in a June presentation to reporters, citing a survey by research firm Kantar. Increasingly, the perception of a company’s views and deeds are linked to its brand, he said … Yet with its political stances, Walmart, with 2.3 million workers, especially risks alienating its core customers, who often live in more conservative-leaning rural and suburban communities.”

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Alibaba Puts Tech in ‘FashionAI’ Boutique

Axios: “Everything is automated and powered by artificial intelligence — or soon will be — in a new fashion shop opening tomorrow in Hong Kong. From the time you enter, using an app to open an electronically locked sliding glass door, to the time you leave, you may never see another human apart from other shoppers …the objective is to merge e-commerce and brick-and-mortar retail — to make shoppers see them as one organism.”

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Cottage Cheese: Not Just for Punishment Anymore

The New York Times: “American companies like Dean Foods, the nation’s largest dairy company, have given their cottage cheeses makeovers, packing them into smaller, sexier packages and asking retailers to move them away from the sour cream and closer to the yogurt. New lines have interesting mixes of fruit and nuts, and some producers are experimenting with millennial-friendly additions like probiotics and chia seeds. Flavors are expanding beyond dusty stalwarts like pineapple to include kalamata olive, habanero chile or cumin. The goal, according to industry analysts, is to ‘uncottage’ cottage cheese — or, as one dairy executive put it, Chobani it’.”

“That’s where cheese makers like Sue Conley and Peggy Smith, the founders of Cowgirl Creamery in Marin County, Calif., come in. The key is very fresh skim milk from a well-run local dairy … Overnight, luscious, tender curds slowly form. In the morning, cheese makers cut them into pieces no bigger than peas. They cook and stir the curds … to release some of their acidity. Then the cheese makers drain the whey and wash the curds three times. The last step is the dressing … Cowgirl Creamery uses crème fraîche, and calls its pleasantly tart product clabbered cottage cheese … ​It’s not inexpensive. A 5.3-ounce container will cost a little less than $3.”

“Rekindling the love affair may be wishful thinking. There are a lot people who just are never going to like cottage cheese … Even Ed Townley, the chief executive officer of Cabot, isn’t convinced that cottage cheese is poised for a comeback, even though his company makes about five million pounds a year … Perhaps cottage cheese could be whipped to smooth it out, or made more spreadable, like ricotta cheese, he said. And then there is the name.” Mr. Townley comments: “It conjures up this old-fashioned image where you think of a cottage. Bottom line, it’s not sexy. A very clever Turkish name or something would go along way.”

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