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- AI To Transform Produce Quality Control
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👉 In today's email:
U.S. Online Grocery Market Sees 8% Growth in June 2024
Understanding Consumer Potato Purchasing Patterns
Plenty & Mawarid Forge Alliance to Cultivate Fresh Produce
Clarifruit: From a Backyard Eureka to Transforming Produce Quality Control
Insights: 7 Benefits of AI in Efficient Produce Logistics
GROWTH
U.S. Online Grocery Market Sees 8% Growth in June 2024, Reaching $7.7 Billion in Sales
The U.S. online grocery market achieved $7.7 billion in sales in June 2024, reflecting an 8.0% increase compared to the previous year.
Delivery sales were particularly strong, rising 18% to $2.9 billion, driven by aggressive promotions from companies like Instacart and Walmart.
This surge allowed delivery to capture 38% of the eGrocery market share, gaining 325 basis points year-over-year.
David Bishop from Brick Meets Click attributed Delivery's performance to promotional offers that boosted monthly active users (MAUs) and order frequency.
Pickup sales remained steady at $3.5 billion, despite a moderate expansion in the MAU base and a slight decline in the average order value (AOV).
As a result, Pickup's market share fell by 352 basis points, settling at 45%, but it continued to lead in overall share.
Ship-to-Home sales increased nearly 10% to $1.3 billion, marking its fourth consecutive month of growth due to higher AOVs, even as its MAU base and order frequency slightly declined.
The overall eGrocery MAU base grew by almost 4% from June 2023, mainly due to the reactivation of lapsed users, with total households purchasing online increasing only marginally by 14 basis points.
Cross-shopping rates remained high, with nearly one-third of online Grocery customers also purchasing from Mass retailers, particularly Walmart, which saw a 150 basis point increase in orders from Grocery customers.
However, the repeat intent rate dropped by seven percentage points to 56.0%, with the most frequent users experiencing a ten-point decline.
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POTATOES
Understanding Consumer Potato Purchasing Patterns
A new study by Potatoes USA “Consumer Path to Purchase Potatoes” explores consumer behavior and purchasing patterns, revealing key factors influencing potato purchases and offering strategies for retailers.
Quality, price, and quantity are identified as the top three factors in purchasing decisions, with over 90% of potato purchases being pre-planned.
Freshness/quality ranks highest among purchase factors, emphasizing the importance of freshness in influencing consumer choices.
A notable 84% of consumers prefer transparent bags to assess potato freshness, suggesting that visually appealing displays can enhance sales.
In-store displays and inspirational signage are more influential than discounts and promotions, driving consumer loyalty even amid budget constraints.
Pre-store influences include promotions in circular flyers, recommendations, YouTube recipes, and ads in various media. Integrating potatoes into recipe suggestions can optimize their inclusion on grocery lists.
Point-of-purchase displays significantly impact in-store decisions, with 80% of respondents planning their potato type and 44% heading directly to their planned purchase.
Versatility is another key attribute, with 89% of consumers acknowledging potatoes' adaptability in various dishes.
Retailers can boost sales by integrating potatoes into meal planning, emphasizing quality, and enhancing visual appeal in stores.
VERTICAL FARMS
Plenty & Mawarid Forge Alliance To Cultivate Fresh Produce Across GCC
Plenty Unlimited Inc. and Mawarid Holding Investment have formed a strategic partnership to enhance local food production across the Gulf Cooperation Council (GCC) countries through indoor vertical farming.
The venture begins with over AED500 million (US$130 million) invested in an Abu Dhabi farm set to produce over 2 million kilograms of strawberries annually by late 2026.
This will be the first commercial-scale vertical strawberry farm outside North America, part of a plan to develop up to five farms within five years, with a total investment up to AED2.5 billion (US$680 million).
Driscoll’s, a global berry leader, will take the entire strawberry production, marking a significant step in their strategy to supply premium berries globally.
Mawarid’s CEO, Kashif Shamsi, highlighted the importance of advanced technology to improve the UAE's food security, emphasizing their collaboration with Plenty.
Plenty’s CEO, Arama Kukutai, noted their indoor farming platform's capability to meet year-round demand and enhance food security.
The initiative addresses the UAE's limited arable land, which is only 0.7%, and the broader GCC region's reliance on food imports, which exceeds 85%.
Plenty’s advanced technology allows for year-round cultivation with up to 350 times more yield per acre than traditional farms, preserving natural resources and enhancing sustainability.
Mawarid's diverse portfolio and commitment to eco-friendly practices aim to address desertification, water stress, and food security in the region.
This collaboration promises significant benefits for local food production and sustainability in the GCC.
INDUSTRY SPOTLIGHT
Clarifruit: From a Backyard Eureka to Transforming Produce Quality Control
Clarifruit is an automatic fresh fruit and vegetable quality control platform founded by Avi Schwartzer.
While inspecting a bland clementine, he realized the fresh produce industry was ripe for innovation.
This eureka moment led to the creation of Clarifruit, an AI-powered quality control software that aims to revolutionize the produce supply chain.
Its mission is clear: transform the age-old, subjective methods of quality control into a streamlined, objective, and digital process, bringing the fresh produce industry into the digital age and setting a world standard for fresh produce evaluation.
Talia Zimmerman, Head of Global Marketing at Clarifruit, recently shared some insights with us about how Clarifruit is achieving this transformation.
“Clarifruit is an AI-powered quality control software for the fresh produce industry. We are helping stakeholders across the produce supply chain, from growers in the fields to wholesalers in the packing house, completely transform their QC processes, while reducing waste and increasing profits,” she mentioned.
This ambitious vision underscores Clarifruit’s commitment to addressing the inefficiencies that have long plagued the industry.
The produce quality control process has traditionally been manual, subjective, and inefficient. Clarifruit’s innovative solution leverages AI to automate and digitalize the entire Quality Control (QC) process.
This shift enhances accuracy and ensures consistency across the supply chain. The result is a significant waste reduction and improved profitability for all stakeholders.
Clarifruit’s technology stands out because it is the “only player in the industry utilizing AI to automate and digitalize the produce quality control process” entirely from an iPhone.
This unique approach simplifies the quality control process, making it more accessible and efficient.
The company’s recent innovations further highlight its impact on the industry.
“Clarifruit is utilizing AI to automatically detect defects. This is a huge game changer for the industry, as stakeholders across the supply chain will be able to completely remove all subjectivity from their quality control assessments.”
This development is indeed revolutionary, as it addresses one of the most significant challenges in fresh produce quality control: the subjectivity of human inspectors. By automating defect detection, Clarifruit ensures that quality assessments are objective, consistent, and reliable.
The Clarifruit app allows inspectors to automate sample-based quality control processes from any location, to standardize quality evaluation across the supply chain to reduce mismatches and waste.
Avi Schwartzer’s vision of developing an end-to-end quality control tool has materialized into a robust platform that is setting new standards in the industry.
Their AI-powered platform exemplifies the potential of technology to solve complex industry problems.
As Clarifruit forges ahead, its dedication to innovation and excellence sets it up to remain a trailblazer in advancing efficiency and sustainability in the industry.
TIP OF THE DAY
Launch a ‘Meet Your Farmer’ Series to Enhance Produce Connection
Connecting your customers with the people behind their food can significantly enhance their appreciation and trust in your products.
Launch a ‘Meet Your Farmer’ video series, where each episode features a different farmer who supplies your produce.
This series can get deeper into their farming practices, personal stories, and the challenges and rewards of their work.
Highlight the unique methods each farmer uses, such as organic farming techniques, water conservation efforts, or innovative technologies in agriculture.
Showcasing these details not only educates your customers but also strengthens the emotional connection they feel towards your products.
Incorporate customer interaction by allowing viewers to submit questions they’d like the farmers to answer in future episodes or suggestions for what they want to see more of.
This not only keeps the content relevant and engaging but also fosters a sense of community and involvement.
Promote the series across all your social media channels and include snippets in your newsletters to drive engagement and increase viewership.
This initiative will not only humanize your brand but also position you as a forward-thinking leader in promoting transparency and authenticity in the produce industry.
INSIGHTS
7 Benefits of AI in Efficient Produce Logistics
Artificial Intelligence (AI) is transforming industries on a global scale.
One area witnessing significant advancements is the logistics sector, particularly in produce logistics.
The integration of AI can reign in a new era of efficiency and productivity.
Through predictive analytics, automated processes and advanced tracking systems, AI is ushering in much-needed innovation.
This revolution brings forth not only improvements in daily operations but also a considerable reduction in waste.
Examining these changes and the potential for further growth, it becomes evident how instrumental AI can be.
Key Takeaways:
AI enhances inventory management with predictive analytics.
Optimized routes boost sustainability in logistics.
Automated data collection significantly minimizes human errors.
Demand forecasting, driven by AI, supports better planning.
Quality control is improved via AI-enabled visual inspections.
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