Tag Archives: delivery

Mike Owen
Retail Food Safety Forum

The Changing Psychology of Grocery Shoppers

By Mike Owen
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Mike Owen

The grocery sector has always been the bedrock of traditional brick-and-mortar retail, and it is no surprise why. How many people have wanted to check first-hand the ripeness of a tomato or how fresh the lettuce looks? The up-front examination is everything.

However, the COVID-19 pandemic has accelerated a change in the psychology of grocery shoppers. Health guidelines that have encouraged lockdown and working from home have focused the mind of many people on health consciousness with a need to keep financial stability in the throes of unemployment or furlough. Purse strings are tightened, more home cooking and fewer luxuries mean there is no longer a need to buy specialty products when basic provisions can be met at home.

Home Is the HQ

Staying at home has meant larger purchase sizes, which has led to fewer trips to the supermarket, bigger basket/cart size when you get there and an increase in private label purchases. People have also become more conscious of what they are putting in their bodies.

Social distancing has made many consumers resort to online grocery shopping. As long as there is availability, at a right price and an efficient delivery time, consumers are prepared to forego their normal habits for the sake of convenience and time saving. There is also no denying the surge in online purchasing for groceries during the pandemic. Interestingly, the market has seen an exponential increase in conversion in the over-50 age group—a group that may have ordinarily resisted this activity.

Health Concerns Sway More People to Shop Online, Regardless of the Product

According to Accenture, there is expected to be a 160% increase in e-commerce purchases from new and low frequency users. The vast majority of consumers who have increased their use of digital and omnichannel services, such as home delivery, curb-side pickup or shopping via social media platforms, expect to sustain these activities into the future.

The Wunderman Thompson Future Shopper Report 2020 highlights that online shopping—and shopping on Amazon in particular—is a popular choice across most industry sectors (including health and pharmaceutical, entertainment and toys); 30% of those purchasing luxury products and 40% of those buying groceries would never buy these products online. But with lockdown measures still firmly in place for most countries, consumer resolve is likely to be tested, and loyalty to physical stores continues to wane.

Consumers are taking stock of their own concerns in terms of home cooking and shopping for local produce and the process for reducing food waste. They are also taking more time to decide what they will need for food or grocery items, and it is likely that many choices will be made before consumers enter the supermarket, as much of the research is done online for product information.

Research undertaken by Bazaarvoice revealed a 21% increase in online orders in March 2020 versus March 2019, with 41% of respondents stating that they were currently shopping online for things they would ordinarily shop for in-store. By April, they were spending more time and making more purchases online, which pushed groceries out of the number one essential category. This may have been due to people getting used to spending longer periods of time at home, moving past the essential necessity phase, and as a result, product shortages have eased, and different product categories are being prioritized.

Changing Expectations for Greater Online Grocery Shopping Experiences

Every generations’ lives and shopping behaviors are now intertwined with digital commerce. They are driven even more strongly by factors such as range, ease, speed and convenience. Online grocery shopping—both delivery and pickup—is cheaper, reducing the number of trips that keeps shoppers out of stores, where personnel are also at serious risk of infection.

And for retailers, inserting a row of fresh vegetables on websites such as Walmart Grocery or Amazon Fresh to the same grid style as they use to sell laptops or smartphone cases can look clinical and confusing to consumers. Food shoppers want to touch the tomatoes. Slicing the grocery store up into individual, pixelated goods doesn’t feel like grocery shopping anymore.

Relevant Accurate Product Information Is the Key

In an article in The Atlantic, Bryan Leach, CEO of shopping promotions company IBotta, predicts: “Shoppers won’t lose the ability to manipulate the avocados, pick something up on short notice, or just browse aimlessly for meal inspiration”. Retailers will have to up their game to provide improved customer experience in product presentation and selection.

Some online grocery retailers are already providing online menus and the ingredients to cook for specific meals. Internet-grocery fetchers might come to be seen more as the small shopkeepers of the turn of the century, or the community-supported agriculture services that deliver fresh, local goods or provide specialized groceries or services.

By serving optimal E-commerce sites that provide specialized product information either through chatbots, specialized product range and knowledgeable staff will further enhance the experience and value.

Some companies such as Fortuitas and Javelin Group are supporting retail brands to provide more accurate product information to their E-commerce websites with the help of product information management systems. The provision of consistent data in an omnichannel environment means that up-to-date product knowledge and availability can be accessible on an on-going basis leading to better trust and online sales.

While access to marketplaces such as Google, Amazon Fresh and Ocado continues to grow for grocery products during the pandemic, some marketplaces have defined the following tactics to keep customers engaged through the use of product information.

1. Prevent Panic Buying With Product Badging

Brands can bring more responsibility to the shopping process on marketplaces like Amazon, Google and online retailer web catalogues by using product information to discourage panic buying through the addition of social cues. These can have a big impact on how customers view brands and products. Through this product badging, where, for example, you limit the purchase of essential products per user, consumers can shop more responsibly and feel more in touch with the brand as a ‘caring’ provider.

2. Promote Stay at Home

Offer a unique opportunity to improve customer experiences by promoting product categories that are most popular at a given time. Stay at home and work from home lifestyles are presenting new and unique requirements for users. There is a need to create relevant product categories designed for work from home and promote them on your website.

3. Back-in-Stock Notifications/Recommendations for Similar Products

Creating a landing page with relevant recommendations for similar products that other users have purchased can serve as a way to improve customer experience on your website.

There is no doubt that COVID-19 has changed the grocery purchasing mentality for purchasers, and it is likely to develop further during the pandemic. It is whether many of these habits are likely to remain post-COVID? What is certain is that increasing accuracy of product information will be key to a continued growth for sales both online and in-store.

Sudip Saha, Future Market Insights
FST Soapbox

Five Trends Defining the Food Industry Post-COVID

By Sudip Saha
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Sudip Saha, Future Market Insights

Food retailers and the entire food and beverage (F&B) industry are now operating very differently than they did some six months ago. The pandemic has brought immense shifts in supply chains, imposed new hazard controls, and—perhaps most importantly—turned consumer preferences upside down.

To accommodate these changes, food manufacturers, retailers, restaurants and others stepped up to innovate and secure the continuity of their services. But now, as many industries begin to drop the notion of ever going back to what once was, it’s time we started thinking about how many of the newly introduced processes will stick around for the long-term.

What will be the main trends defining the food industry as a whole post-COVID?

Learn more about COVID-19 in the food industry, technology and food safety culture during the 2020 Food Safety Consortium Virtual Conference Series  | Episodes run every Thursday through December 17Adopted Habits Aren’t Going Anywhere

The pandemic brought radical changes to our everyday lives, and it’s clear that many of the newly adopted behaviors won’t disappear overnight. Consumers will continue to rely on grocery retailers to keep them both fed and healthy while expecting minimum disruptions and a high respect for safety regulations—both in terms of handling and the state of delivered products.

Take-home grocery sales grew by 17% between April and July, breaking the record for the fastest period of growth since 1994. Online grocery shopping also gained popularity while managing to engage entirely new demographics. Some 10% of baby boomers now say they would buy more groceries online once the pandemic is over—compared to 34% of Gen Xs and 40% of millennials.

Due to consumer hyper-awareness of safety and sanitation, the whole food industry will continue to be defined by safety practices. Sanitizing common surfaces like keyboards, door handles, tables and chairs regularly will remain the norm. Beyond “manual” rules such as the mandatory use of facemasks, requirements such as regular health checks could boost the adoption of technology across the industry—transforming not only customer-facing interactions but also the processes behind the curtain.

Technology as an Enabler

Every crisis sparks innovation, and the food industry has certainly proved this thesis. Technology has become the ultimate aide, enabling interactions that would otherwise be impossible. These include contactless ordering, payments and pickup—processes that are likely to stick around even beyond COVID-19.

At the same time, the pandemic accelerated the usage of innovations that previously struggled to become mainstream. This includes virtual tipping jars or mobile order-and-pay, such as the options introduced by fast-food giants including McDonald’s, Subway, KFC, and Burger King.

There’s an obvious appetite for F&B companies to further incorporate technology. For example, the Coca-Cola Company is rolling out a touchless fountain experience that can be used with a smartphone for contactless pouring. Heineken, on the other hand, turned to virtual tech to launch a new product—a cardboard topper for multipack beer that will eliminate plastic from millions of cans. With travel restrictions hindering the mobility of engineers, the company leveraged virtual technology to install the new machinery needed at its Manchester-based factory.

But it’s not just solitary innovations; the market has already seen new AI-based technologies that help food businesses better manage risk in their workforce. Food manufacturing, distribution and provision require many different touchpoints; by predicting, monitoring and testing the health and safety of the workers involved in these processes, companies can ensure they keep their operations running, even if another wave of COVID-19 hits. Solutions like these will be crucial when looking to add another layer of safety that goes beyond mandatory governmental regulations.

Food Safety Revamped

Even though COVID-19 is transmitted through airborne respiratory droplets, and the risk of contracting the virus through food is low, people around the world are concerned about the possibility. After all, 40% of people are more careful about washing unpackaged fruit and vegetables than before the pandemic.

The pandemic has already made societies rethink various established concepts, such as wet markets or the consumption of wild animals. The pandemic could, therefore, lead to changed behaviors, and newly imposed rules such as formalizing small and micro food enterprises, provisions for direct sales by farmers, leveraging technology to ensure safety, and investments in a more robust food infrastructure altogether.

Such changes could also irreversibly affect street food—a sector that is bound to feel the hit of COVID-19. Particularly in countries with diverse street food culture, one of the emerging trends will be the rise of gourmet street food brands that can provide both great taste and high hygiene standards.

Food Sustainability to the Forefront

2020 will be a year of reckoning for the world’s food systems. The pandemic exposed the flaws of the global food supply chain that continues to be highly centralized and operating on a just-in-time basis. This is why we have seen panic food runs, urgent supply shortages and high amounts of food waste as many businesses were shut down overnight. In developing countries, several agencies expect that a “hunger pandemic” and a doubling of people starving could happen unless serious action is taken.

As we rethink the underlying principles of the food industry such as safety and supply, other concepts such as transparency and visibility into product sourcing and manufacturing also come into the spotlight. Consumers across the globe are more likely to prioritize offerings that are healthy and locally sourced than they were before COVID-19.

Food produced with the overuse of chemicals in monoculture cropping systems and large-scale animal farming significantly impact the availability of natural resources and cause substantial greenhouse gas emissions. Added to that, practices like industrial animal farming that operate with large numbers of livestock in confined spaces are a breeding ground for viruses, and have been linked to prior outbreaks such as the outbreak of swine flu in 2009. They also enable the spread of antibiotic-resistant organisms due to the common overuse of antibiotics administered to prevent infections caused by cramped living conditions.

Consumers are increasingly aware of this: Nearly 25% of Americans are now eating more plant-based food. As we move forward, diverse food companies are likely to tap into this trend, resulting in great opportunities for plant-based, nutritious, local, and even healthy DIY meals and products. For example, an Australian food producer has recently announced the launch of a new proprietary product range that will offer the first vegan ready-to-drink protein shakes on the Australian market.

A New Way of Dining

The restaurant market has been one of the direct victims of the pandemic but has shown impressive elasticity in adapting to the new realities. Many businesses have introduced service extensions such as deliveries and take-outs, as well as pop-up grocery stores. Enjoying great popularity, some of these options will stick around far beyond the pandemic.

However, there’s a counterforce hindering significant expansion: The simple fact that many consumers discovered a new joy in cooking. A recent study notes that 54% of Americans are now cooking more than they were before the pandemic, with 35% saying that they “enjoy cooking more now than ever.” But at the same time, 33% of consumers say they’re getting more takeout than before the pandemic. This implies that the post-pandemic normal will likely see a shift toward eating at home more often, whether that means cooking or takeout and delivery.

Therefore, restaurants are likely to continue diversifying their services, experiment with food bundles and DIY meal kits, or even luxurious in-home chef visit experiences as an alternative to high-end restaurant dining.

The past crises have shown that economic uncertainty is directly linked to changes in demand for private-label and value brands. After the 2008 financial crisis, 60% of U.S. consumers were more interested in reasonably priced products with core features than in higher-priced, cutting-edge products. So while luxury dining is not completely disappearing, it could take on other aspects.

In Denmark, for example, a two-Michelin star restaurant is moving to serve burgers. In China, a country that many look to as the model for the post-COVID world, there has also been a clear push toward more affordable dining as well. Hot pot and barbecue venues have been thriving, particularly among customers in their 20s and 30s. Many fine dining restaurants, on the other hand, have started offering affordable lunch menus or have cut prices to correspond to the current value-conscious behaviors.

It’s clear that the future of food retail and the F&B industry will be significantly marked by the pandemic. Its prolonged nature will also cause the newly adopted habits to become further solidified—and many processes will adapt to match them. For example, while contactless deliveries were accelerated in the past months, businesses are working hard to make them as efficient as convenient as possible, making it unlikely that such investments would be erased overnight, once COVID-19 is no longer a threat.

GREG BALESTRIER, Green Rabbit
Retail Food Safety Forum

Solving Food Safety Challenges in Today’s eCommerce Driven World

By Greg Balestrieri
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GREG BALESTRIER, Green Rabbit

Think about this number for a second: Consumers spent more than $19 billion on online grocery in 2019. While this is still a small segment of the overall $800 billion U.S. grocery market, more consumers than ever before are turning to eCommerce for the fulfillment and delivery of perishable goods, positioning the grocery delivery market to grow dramatically, especially as companies like Amazon continue to innovate in this area.

Adding to this, a recent survey found that 68% of consumers feel the freshness of perishable items is the number one quality they look for in online grocery retail. This is where things become complicated, as shipping perishables introduces an entirely new set of quality challenges for eCommerce brands. This is hindering the market from reaching its full potential until the biggest problem is solved: Ensuring food safety and freshness in every order.

This is a double-edged sword for retailers, grocers and CPGs: Interest in their service is taking off, but it takes just one package of spoiled meat or wilted vegetables to potentially lose a customer to a competitor—or even worse, get someone sick.

Today, spoilage and food safety issues are primarily driven by breakdowns in the cold chain, and it only takes one mishap to affect the quality of food throughout the rest of the delivery lifecycle. To achieve optimal freshness and keep customers happy, grocers, retailers and their trusted partners need to focus on three primary food freshness factors: Temperature, storage and packaging.

Controlling each of these issues starts at the warehouse.

Freshness Starts at the Warehouse

For most parcels, such as clothing, books and other commonly ordered goods, temperature control is rarely an issue. However, facilities that store perishable foods have a constant component to manage—temperature fluctuation.

According to the NRDC, cooling and refrigeration inconsistency is one of the biggest contributors to food spoilage and waste. This is because every food item has a definable maximum shelf life, and storing them at less than optimal or constantly changing temperatures can exacerbate and drastically shorten its timeline.

Mistakes with heightened temperatures on items like meat and poultry can also lead to bacteria growth and foodborne illnesses. In fact, the CDC estimates that 48 million people get sick, 128,000 are hospitalized and 3,000 die from foodborne diseases each year in the United States, putting a spotlight on how seriously food safety issues need to be taken.

The Need for Proper Rotation Processes

First expiration, first out (FEFO) is a motto all organizations should live by when stocking inventory. In addition, it is a critical process when working to avoid the food spoilage crisis. It may come as a surprise, but not all distribution centers have this type of rotation system in place. This means organizations could send spoiled food to consumers because an item was pushed to the back of a refrigerator during the re-stocking process and unknowingly shipped passed its expiration date. Not only does this create massive amounts of food waste, tarnish a brand and eat into a company’s profits by replacing low margin products, but consuming a spoiled food item can also be detrimental to one’s health.

While it helps to keep these types of costly errors in mind, as warehouse operations grow, there’s no possible way to manually scale this system.

Luckily, breakthroughs in cold chain technology have produced automated solutions that help organizations track everything from expiration dates to potential recalls. These types of technology support the entire cold chain lifecycle and ensure that warehouses and their grocery partners have the visibility they need to ensure freshness from fulfillment to the customer’s doorstep.

However, when the product is ready to leave the warehouse, it’s arguably about to enter the hardest portion of the cold chain lifecycle: Delivery.

Key Considerations for Packaging

For fragile items, packaging is all about keeping the item protected from drops and damage, but for food the focus should be on keeping the item fresh and at optimum temperatures throughout the duration of transit.

Given many grocers outsource delivery, they have little interest in whether food spoils, mainly because they are unaware of the package contents and are more focused on getting the item to the right location fast and effectively.

Yet there are many obstacles that need to be addressed during the last leg of delivery. What is the temperature in the delivery vehicle? If no one is home or at the office, will the package spoil outside in the heat?

For perishables, it is imperative that spoilage rates, delays in shipping schedules and unattended delivery scenarios are important factors in determining the amount of cold pack and protective stuffing that goes into the package. If these factors are not considered, customers could return to spoiled, melted or even crushed perishables.

Getting Food Fast and Fresh

Today, grocers and retailers are bullish on building out omnichannel food initiatives. However, balancing brick and mortar locations while developing profitable and efficient online delivery systems is often more than one organization can take on. While there are trusted partners designed to support eCommerce fulfillment and delivery, few are purpose-built to handle perishable foods.

Either way, in order to see wide-scale adoption of online grocery initiatives, grocers, retailers and ecosystem partners need to start prioritizing the key temperature, storage and packaging considerations and challenges associated shipping perishable foods. Acknowledging these challenges and implementing solutions for them will not only keep your products and deliveries fresh, but they will also keep customers coming back for more.