Solving the $160 billion food waste problem: Meet Stefan Kalb of Shelf Engine | Summary and Q&A

TL;DR

Shelf Engine is a company that provides demand forecasting and guarantees sales for perishable grocery items, aiming to reduce food waste, increase profitability for grocers, and lower the cost of food for consumers.

Key Insights

• 😋 Food waste is a major problem, with 30% of perishable food being wasted and causing significant environmental and financial consequences.
• 😋 Shelf Engine's unique business model of demand forecasting and sales guarantees for groceries aims to reduce food waste and increase profitability for grocers.
• 🌥️ The company has partnered with major grocers like Kroger, Whole Foods, Target, and Walmart, showcasing the potential for large-scale impact.
• 😋 Immersion in the food industry and learning from experienced leaders contribute to Shelf Engine's success in scaling their operations.
• 🎟️ Their mission of transforming the grocery industry aligns with capitalism by combining financial benefits for grocers with positive environmental impact.

Transcript

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Questions & Answers

Q: How does Shelf Engine guarantee sales for groceries?

Shelf Engine submits orders to vendors based on demand forecasts and only charges grocers for the items that are sold. This unique business model allows Shelf Engine to take on the risk of managing inventory and reduce waste for grocers.

Q: What are the environmental and financial impacts of food waste in the grocery industry?

Food waste contributes to significant environmental issues, including increased carbon emissions from the production and transportation of wasted food. Financially, food waste represents billions of dollars in lost revenue for grocers and higher costs for consumers.

Q: How does Shelf Engine address the challenges of scaling in the grocery industry?

Shelf Engine immerses new team members in the food industry to understand the challenges and processes involved. They also have experienced leaders from the grocery industry who contribute valuable insights. Additionally, they focus on product development and building a highly skilled team to navigate rapid growth.

Q: How does Shelf Engine align its mission with capitalism?

Shelf Engine's mission is to reduce food waste and transform the grocery industry. By aligning their impact on the environment with significant financial benefits for grocers, they demonstrate how mission-driven entrepreneurship can generate profits and create positive change.

Q: How does Shelf Engine guarantee sales for groceries?

Shelf Engine submits orders to vendors based on demand forecasts and only charges grocers for the items that are sold. This unique business model allows Shelf Engine to take on the risk of managing inventory and reduce waste for grocers.

More Insights

• Food waste is a major problem, with 30% of perishable food being wasted and causing significant environmental and financial consequences.

• Shelf Engine's unique business model of demand forecasting and sales guarantees for groceries aims to reduce food waste and increase profitability for grocers.

• The company has partnered with major grocers like Kroger, Whole Foods, Target, and Walmart, showcasing the potential for large-scale impact.

• Immersion in the food industry and learning from experienced leaders contribute to Shelf Engine's success in scaling their operations.

• Their mission of transforming the grocery industry aligns with capitalism by combining financial benefits for grocers with positive environmental impact.

• Scalability and the ability to build a highly skilled team are essential for Shelf Engine's growth and achieving their long-term goals in reducing food waste.

Summary

Shelf Engine is a company that focuses on reducing food waste in the grocery industry by providing demand forecasting and guaranteed sales for perishable items. The company aims to not only prevent waste but also increase profits and lower the cost of food for consumers. In this video, Stefan Kalb, the co-founder of Shelf Engine, discusses how the company got started, the challenges they faced, and their mission to transform the industry.

Questions & Answers

Q: What does Shelf Engine do?

Shelf Engine provides demand forecasting for highly perishable items in the grocery store, such as deli, bakery, and produce. They also guarantee sales for groceries by submitting orders to vendors and only charging grocers for what sells.

Q: How did Shelf Engine come up with its unique business model?

The co-founder of Shelf Engine, Stefan Kalb, previously ran a food company and experienced firsthand the challenges of ordering perishable items in the grocery industry. He realized that waste was a major problem, with approximately 30% of perishable food ending up in the garbage. This led him to come up with the idea of guaranteeing sales for groceries as a way to reduce waste and improve profitability.

Q: What is the extent of food waste in the grocery industry?

According to Stefan Kalb, approximately 1 in 3 perishable items in a grocery store is thrown away without being consumed. This leads to significant environmental and financial waste. Many grocery stores underreport their waste numbers, but Shelf Engine provides accurate data to help address the problem.

Q: What is the market opportunity for Shelf Engine?

The grocery industry is a large commodity market with low margins. Shelf Engine's unique solution to reduce food waste and improve profitability presents a significant market opportunity. Their clients include major grocers like Kroger, Whole Foods, Target, and Walmart.

Q: How did Stefan Kalb and his co-founder, Bede Jordan, come up with the idea of Shelf Engine?

Stefan previously ran a food company and shared his experiences with Bede, who was an engineer at Microsoft. They realized the potential to address the food waste problem through technology and decided to start Shelf Engine. They initially tested their product at Stefan's food company before launching it as a separate entity.

Q: What challenges did Shelf Engine face in the early stages?

Shelf Engine initially tried to sell their software as a service, but they found that it was difficult to get grocers onboarded and engaged with the product. They shifted their business model to guarantee sales for groceries, which proved to be a more successful approach. This evolution required navigating product-market fit and finding a solution that aligned with both their mission and the practical needs of the industry.

Q: How has Shelf Engine grown since its early stages?

Shelf Engine has grown to a team of nearly 50 people and secured a Series A funding round. They have partnered with major grocers and are expanding rapidly across the country. The company is focused on scaling its team, building its product, and making a significant impact on reducing food waste in the industry.

Q: What is it like to work at Shelf Engine?

Employees at Shelf Engine are immersed in the food industry and gain firsthand experience by visiting stores, warehouses, and production facilities. The company emphasizes learning and growth within specific disciplines and provides the opportunity to work with experienced industry professionals. The team is focused on addressing the challenges of scaling quickly and making a meaningful impact.

Q: What is the potential impact of Shelf Engine's work?

By reducing food waste and improving profitability for grocers, Shelf Engine aims to transform the industry and make a significant environmental and financial impact. The company's ultimate goal is to see government reports on the positive outcomes of their work and to contribute to the future of grocery.

Q: What advice does Stefan have for aspiring entrepreneurs?

Stefan advises that taking action and being quick to make moves is essential. He believes that many opportunities are overlooked because people doubt themselves or hesitate to take action. He encourages entrepreneurs to act quickly and pursue their ideas with determination.

Takeaways (in one paragraph)

Shelf Engine is tackling the problem of food waste in the grocery industry with its unique approach of demand forecasting and guaranteed sales. By working with major grocers, the company aims to reduce waste, increase profitability, and lower the cost of food for consumers. The team at Shelf Engine is focused on immersing themselves in the industry and learning from experienced professionals while scaling rapidly to make a meaningful impact. Their vision is to transform the industry and create a more sustainable future for the food supply chain.

Summary & Key Takeaways

• Shelf Engine offers demand forecasting for highly perishable grocery items, such as deli, bakery, and produce. They also guarantee sales for these items, allowing grocers to only pay for what sells.

• Food waste is a significant issue, with 30% of all perishable food being wasted, equating to over $160B in the United States alone.

• Shelf Engine's unique business model aims to transform the industry by reducing food waste, lowering the carbon footprint of the food supply chain, and improving profitability for grocers.