A use-case for Cherripick based on ReFED analysis of potential solutions
Updated: Feb 4
If you are even remotely interested in how we as a society can reduce food waste and create opportunity at the same time, then you must become familiar with www.refed.org.
ReFED was, "...formed to build a different future, where food waste prevention is recognized as an untapped strategy that can save resources, create jobs, alleviate hunger, conserve water, and reduce greenhouse gas emissions — all while stimulating a new multi-billion dollar market opportunity." From their analysis of solutions to their breakdown on what we can do as stakeholders. The information they put out is indispensable.
As their research has shown, "The benefits of each of these solutions outweigh the costs."
Here's what we cover and why Cherripick is a viable use-case for enacting the change advocated by ReFED.
- Targets the areas of greatest impact as researched by ReFED
- Provides a first-of-its-kind Days Till Expiration insight
- Designed to target shrink reduction between 10-25%
- Rewards shoppers for being part of the solution
- Helps recover meals, right now, in stores across the country
Solutions For Greatest Impact
They define Consumer Education Campaigns as, " Conducting large-scale advocacy campaigns to raise awareness and educate consumers about ways to save money and prevent wasted food." Users of Cherripick become aware of the value of buying food nearing it's expiration because our app is designed to help them save money and prevent food waste because we encourage them to do so within three days of the printed date. In fact, 40% of the items claimed via Cherripick in November/December were purchased on the same day as their 'expiration', whether that was a 'sell by, 'best by' or 'use by' date. We are providing an industry first in terms of business intelligence - days till expiration.
Grocers, shoppers, and vendors, all benefit when a Cherripick user adopts our app, because this becomes a positively reinforcing mechanism that fosters behavior change.
ReFED defines Standardized Date Labeling as, " Standardizing food label dates, including eliminating visible “sell by” dates, to reduce consumer confusion." We champion this effort because our own research with shoppers reflects this type of confusion. And yet, even as manufacturers and grocers start to implement less confusing date labeling practices they will still deal with losses associated with food waste shrink.
Waste = Shrink
Reports suggests an average retailer's total shrink is 1% to 3%, where 60% or more is from food waste and the rest is theft. And ReFED estimates, "Confusion over the meaning of date labels is estimated to account for 20% of consumer waste of safe, edible food. This equates to approximately $29 billion of wasted consumer spending each year — 5% to 10% of this is expected to be impacted by standardized date labels." 5-10% of $29 billion is $1.45 billion to $2.9 billion. These figures include post-purchase discarding of food once the shopper is at home and going through their fridge.
Our projections show that Cherripick should have a low-end impact of 10% of total shrink and up to 25% of shrink, possibly more. If a grocer doing $30 million per location a year with 2% shrink ($600,000) fully adopts and engages their customers via Cherripick that translates to $60,000-$150,000 per location in recouped losses not including any vendor support which could impact the total value returned. If your chain does $10 billion in revenue at 2% average shrink that's $200 million and with Cherripick you could be recouping $20-50 million per year.
All it takes is a modest marketing budget to help spread awareness of Cherripick (shared costs with grocer) to create genuine impact and educate your shoppers while other systems, such as improved dating practices, work their way into the inventory stream.
Cherripick is designed purposefully to drive sales of short dated items. And if your team thinks your shrink numbers are good at 1-2% our response to that is, "Is it zero?" Because if it's not zero then there's ample room to improve it.
Shoppers: Your new shrink labor force
Engaging shoppers in ways that promote better outcomes for all involved is not a novel concept. Doing so for short-dated items may well be though. Recent research from IBM stated that, "purpose-driven shoppers are changing retail."
Among the data is a really interesting point, "Fifty-seven percent of them are even willing to change their purchasing habits to help reduce negative environmental impact." So retail is changing, because consumers are interested in their purchases going towards things that promote a more sustainable outcome, generally speaking.
Cherripick offers grocers the chance to facilitate this in an area where it matters the most - food which is likely to be wasted. We help shoppers and grocers work together in a mutually beneficial way that targets shrink/waste by offering a solution that is easy to adopt, can be deployed quickly, and can scale according to your size, geographic reach, and/or the mixed demographics of stores in different communities.
One of the key metrics ReFED's reporting targets is meals recovered. And while there are myriad benefits to not throwing away perfectly good food from reduction emissions, to jobs created, we felt that tracking meals recovered was the metric our users would respond best to.
That's why this critical metric is part our reporting on user activity within our app. Here's an example of that data from our first month of claims.
We'd gladly speak with your grocery management team about how Cherripick could help improve your bottom line and contribute to the greater impact of reducing food waste. Contact us at [email protected].