The Future Is Now: Delivery Robot Carts Hit the Streets for Erewhon Market
Photo: Pexels
This article originally appeared in Presence Marketing’s January 2022 Industry Newsletter
By Steve Hoffman
A robot-powered delivery service that launched in California in 2020 announced that it will begin grocery deliveries for Los Angeles-based natural products retail chain Erewhon Market with a bigger, more powerful version of its proprietary delivery robot, Winsight Grocery Business reported. The new robot model, COCO1, features longer battery life than the original model, allowing for a delivery radius of up to three miles, twice as far as the original model could travel. The bigger robot cart size allows for it to hold up to four grocery bags at the time, the robot’s maker, Coco, said. The cart’s cameras and sensors allow for remote pilots to plan efficient delivery routes and navigate walkways and streets, said the company, making COCO1 “the perfect vessel for metropolitan grocery delivery.” The robot was designed and built in partnership with Segway, Winsight Grocery Business reported. COCO1 delivery robots will be stationed at all seven Erewhon locations in the Los Angeles area, Coco said. The company also stated that its service boasts a 97% on-time delivery rate, and the robot maker recently completed a $36 million Series A funding round, which promises for more robots in the future.
The Growth of the Independents – Join Pat Sheridan, INFRA, on Compass Coffee Talk, October 13, 11:30am EDT
The Growth of the Independents: INFRA CEO Pat Sheridan on the Next Compass Coffee Talk
Pat Sheridan, President & CEO of Independent Natural Food Retailers Association (INFRA), to Share Key Insights Into the Role of Retailers in a Changing Market on the Next Compass Coffee Talk, Wednesday, October 13
Wednesday, October 13, 11:30 am – Noon EDT
Zoom, Admission is Free
Natural products retailers continue to see growth despite an unpredictable economic climate and a supply chain in flux, with independent retailers and small chains leading the pack with 6.5% growth in 2020, according to New Hope Network's 2021 Market Overview. On Wednesday, October 13, natural and organic retailing leader Pat Sheridan will join Compass Coffee TalkTM for a lively deep-dive conversation into this current and future retail landscape for naturals. Sheridan will offer unique insights into the opportunities and challenges for retailers and for organic products as we move into a yet-to-be-defined new normal.
Independent Natural Food Retailer Association (INFRA) is a purchasing and business services cooperative of independently owned natural food grocers. INFRA currently represents retailers operating over 400 stores in 45 states with combined annual sales of over $2 billion. With a mission of strengthening its members through collaboration to forge a sustainable future, INFRA focused on key transitions throughout 2020 under Sheridan's leadership. In addition, as Secretary of the Organic Trade Association's Retailer Council, Sheridan participates in the trade association's forum focusing on organic-specific retail issues.
About Pat Sheridan
Pat Sheridan is the President and CEO of Independent Natural Food Retailers Association (INFRA), a purchasing and business services cooperative of independently owned natural food grocers. INFRA currently represents 300 members and 17 associate retailers operating over 400 stores in 45 states with combined annual sales of over $2 billion. Pat joined INFRA in 2018 as its COO & CFO and led its transformation to better serve members by leveraging technology solutions to deliver promotional and consulting opportunities. Pat also serves as Secretary of the Organic Trade Association’s Retailer Council. Prior to joining INFRA, Pat held executive positions in diverse industries such as healthcare, organic milling, and product development.
About Compass Coffee Talk™
Take a 30-minute virtual coffee break with Compass Coffee Talk™. Hosted by natural industry veterans Bill Capsalis and Steve Hoffman, Coffee Talk features lively interactive conversations with industry leaders and experts designed to help guide entrepreneurs and businesses of any size succeed in the market for natural, organic, regenerative, hemp-derived and other eco-friendly products.
Compass Coffee Talk™ is produced by Compass Natural Marketing, a leading PR, branding and business development agency serving the natural and organic products industry. Learn more.
VIEW OUR PAST COMPASS COFFEE TALK EPISODES ON YOUTUBE
Whole Foods Market Expands Topical CBD Products to 359 Locations in 30 States
Photo: Pexels
Originally Appeared in Presence Marketing News, October 2019
By Steven Hoffman
Concerned in the past that it might present itself as a “high profile target” to regulators, Whole Foods Market has moved slowly in carrying natural products made with full spectrum hemp extract and CBD. However, as market demand explodes for these products, Whole Foods is taking the plunge by increasing its offerings of topical CBD products. The leading natural and organic products retailer announced in September it is expanding distribution of topical CBD products, making them available in 359 Whole Foods Market locations in 30 states across the country. Whole Foods also announced it is adding exclusive CBD bath items from Pacha Soap Co. “Our shoppers have expressed a growing interest in CBD products,” said Jennifer Coleman, Global Senior Category Merchant for Whole Foods Market in a press release. “We’re thrilled to roll out topical CBD products in even more stores and to share new, exclusive items from our longstanding supplier partner Pacha Soap Co.” As of September 2019, Whole Foods Market now carries topical CBD products in 30 states including: Alabama, Arkansas*, Arizona*, California*, Colorado, District of Columbia, Georgia*, Illinois, Indiana, Kansas*, Kentucky, Maine, Maryland, Massachusetts, Michigan*, Mississippi, Missouri*, Nevada*, New Hampshire, New Jersey, New Mexico, Oklahoma*, Oregon, Pennsylvania*, South Carolina*, Tennessee, Texas*, Utah, Virginia* and Wisconsin.
As with all body care items sold at Whole Foods Market, the retailer says the new CBD products meet the grocer’s rigorous body care quality standards, which ban parabens, phthalates, triclosan and more than 100 other questionable ingredients used in conventional body care products. (* New distribution as of September 2019.)
Market Update: Organic and Plant-Based Food Sales
Originally Appeared in Presence Marketing News, August 2019
By Steven Hoffman
Rabobank: Organic Food Sales Growth Slows; Market to Hit $60 Billion by 2022
Between 2010 and 2016, organic food retail sales grew by an average of 10% per year, however, that growth has slowed to 5.9% for the past two years, says Rabobank. The international bank, known for its focus on food, predicts that organic food sales will reach $60 billion by 2022. While fruits and vegetables remain the top organic food category, representing 36% of all organic food purchases in 2018, even that category is showing signs of slowed growth, noted Rabobank Senior Analyst Roland Fumasi in a report by Food Navigator USA. “Organic produce availability has now become mainstream which means that the organic produce market will continue to more closely resemble the traditionally grown produce market,” Fumasi told Food Navigator USA. “Just a few short years ago, both organic produce prices and organic produce volumes were rising, indicating that demand expansion was occurring more rapidly than supply growth. However, there are indications that continued growth in the organic movement has partially been driven by lower prices for some of the top-selling organic product items.” Fumasi predicts that in a few years, demand for organic produce will see an increase in sales as millennials grow their income and start their own families.
Plant-based Food Sales Growing 5X Faster than Overall Food Sales
Plant-based food sales are growing like a weed, according to new research from the Plant Based Foods Association and the Good Food Institute. According to the research published in July 2019, U.S. retail sales of plant-based foods have grown 11% in the past year, bringing the total plant-based market value to $4.5 billion. Since April 2017, total plant-based food sales increased 31% according to the study. Additionally, plant-based foods unit sales are up 8.5%, compared to total U.S. food sales, which are flat, showing the overall health and momentum of the plant-based foods category. The data covers the total U.S. grocery marketplace and was commissioned from SPINS, a wellness-focused data technology company and retail analytics provider, says the Plant Based Foods Association (PBFA). According to PBFA, sales of the plant-based meat category alone is worth more than $800 million, with sales growth of 10% in the past year. Refrigerated plant-based meat is driving category growth with a 37% sales increase. Sales of plant-based milks, which grew 6% over the past year, now comprise 13% of the entire milk category, while cow’s milk sales have declined 3% over the same period. In addition, in the past year, plant-based yogurt has grown 39%, while conventional yogurt declined 3%; plant-based cheese has grown 19%, while conventional cheese is flat; and plant-based ice cream and frozen novelty has grown 27%, while conventional ice cream and frozen novelty has grown just 1%, according to the PBFA study.
Good Food Insights: Natural Continues to Set the Pace
Here’s some good news for natural products marketers, writes New Hope Network’s Bob Benenson: Natural product sales are growing five times faster than conventional product sales nationally—in the Multi-Outlet (MULO) channel, a.k.a. traditional grocery chains. Here’s the even better news: Natural product growth in this channel, where the vast majority of Americans get their groceries, outstrips conventional growth in all seven regions of the U.S., as defined by SPINS, the leading data market research firm for the natural, organic and specialty products industry. Along with FamilyFarmed’s Good Food Accelerator, Naturally Chicago and Esca Bona, SPINS is a collaborator in the Good Food Insights series. Based on the annual State of Good Food Report, derived from SPINS’ analysis of MULO market data for the 52 weeks ending May 19, 2019, while natural products comprise 9% of total sales in the MULO channel, sales in this category grew 5% over the study period, compared to 1% growth for conventional products. “Conventional retailers are recognizing that the rise of natural is an ongoing historic and generational shift, not a fad. And as they address consumer demand by adding more natural products to their shelves, they are jump-starting further growth in the sector,” writes Benenson. According to SPINS, California has the largest MULO market share of natural products at 14%, followed by the Northeast, with 12% MULO market share for natural products. The South-Central states recorded the lowest MULO market share, with only 6% of sales attributed to natural products. According to Andrew Henkel, SVP of Brand Growth Solutions at SPINS, the forerunner regions have the biggest consumer bases that are apt to adopt a “good food and natural products lifestyle.” “Parts of the country that have significant urban, progressive consumer bases are indicators of where the rest of the country is going to go,” Henkel told New Hope Network.