FoodLoop

FoodLoop: FRISCO (Food Retail Industry Supply Chain Optimization)

Cologne, GermanyCologne, Germany
Year Founded:
2014
Organization type: 
for profit
Project Stage:
Start-Up
Budget: 
$250,000 - $500,000
Project Summary
Elevator Pitch

Concise Summary: Help us pitch this solution! Provide an explanation within 3-4 short sentences.

Nothing to cook for dinner? You are now able to consult the FoodLoop apps and find the best offers close to you. The FoodLoop platform is geared towards resource-efficiency, redefining the way we think, produce and consume, thus creating a positive environmental footprint with its activities.

WHAT IF - Inspiration: Write one sentence that describes a way that your project dares to ask, "WHAT IF?"

What if half of the billions of tons of avoidable food waste from grocery stores could be diverted from landfills, significantly lowering the carbon footprint of our generation by simply using a smartphone app?
About Project

Problem: What problem is this project trying to address?

Worldwide, there is about 1.3 billion tons of food wasted every year. More than 40% of food losses happen at the retail and consumer levels. Approximately 6% of perishable sales is lost, due to disposal, as they don’t get efficiently communicated through to the customer or due to the “Freshness policy” of a retailer disposing products already up to 11 days prior to their best before date (BBD).

Solution: What is the proposed solution? Please be specific!

FoodLoop offers the consumer a financial benefit to buy products close to their BBD. Using the FoodLoopApp the consumer gets the information of all products offered close to his location. The FoodLoop System is connected to the ERP of the retailer and promotes the groceries automatically and in real time. This is possible by using the technology of the new GS1 Databar that can save additional information like for example the BBD. Thanks to the FoodLoop System the retailers have the knowledge of all products and their BBD, can reduce their groceries and offer them to the consumer before they have to dispose them.

Awards

Winner of EU Smart Business & Industry Challenge 2014: Euro 75.000,-
Impact: How does it Work

Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.

A supermarket has a certain raspberry yogurt that will reach it’s BBD in 3 days. To sell it before the product expires and not to through it away the store manager uses the FoodLoop System and reduces all yogurts that have 3 or less days until its BBD by 30%. The FoodLoop System saves the information and sends it to the app user. The consumer can search in the FoodLoop App for a certain product, a product category or all products offered at his favorite supermarket. He finds the offer of the raspberry yogurt, goes to the supermarket, takes the product with the BBD that is announced in the app, buys it and gets the product directly 30% cheaper a The FoodLoop System automatically updated the information about the remaining stock levels.

Impact: What is the impact of the work to date? Also describe the projected future impact for the coming years.

As mentioned above approximately 6% of perishable sales are lost due to disposal. Selling perishable items generates half of the worlds’ biggest food retail chains’ revenue. Consequently they through away 3% of their sales. If FoodLoop can reduce food waste by 50 %, they would save groceries being worth 1.5% of their sales. The five major food retail chains of the world had a combined revenue in 2012 of 470.6 billion Euro. 1.5% of only these five would implement to save food being worth more than 7 billion Euros.

Spread Strategies: Moving forward, what are the main strategies for scaling impact?

In these days we are preparing the pilot phase with three bio supermarkets starting in September where we will show the proof of concept. This pilot will last for three months and will demonstrate the benefits for all related groups. After a successful pilot phase we will intensify our talks with the world leading food retailers. As the technology and the food waste problem is comparable in most industrialized countries we don’t expect high entry barriers to implement the FoodLoop System in different countries. Our target is to cut food waste on the retailer level by 50% until 2025.
Sustainability

Financial Sustainability Plan: What is this solution’s plan to ensure financial sustainability?

Financial sustainability will be guaranteed by licensing out the FoodLoop platform to retail chains by using the brand name of FoodLoop. Due to FoodLoop they can improve sales, profit as well as their image. Furthermore they save labor and disposal costs. For using the FoodLoop system they have to pay a low monthly fee for each store as well as a certain percentage of the additional sales they achieve by using the FoodLoop-system.

Marketplace: Who else is addressing the problem outlined here? How does the proposed project differ from these approaches?

EndGroceryWaste.com is a project in the USA, similar to the FoodLoop venture, and focuses on comparable values as FoodLoop, which is to reduce unnecessary food waste and help the consumer save money. However, they are lacking the specifics of putting such a plan into motion such as getting retailers on board, marketing and providing a working prototype. Zéro-Gâchis is a French Start-up, which again focuses on reducing food waste and saving money. However, it lacks the automation and the efficient use of technology, such as the GS1 „DataBars” and SAP-HANA Servers, which FoodLoop is offering.
Team

Founding Story

CEO and Founder, Christoph Müller-Dechent, came up with the business idea for FoodLoop in October 2012 as part of a Strategy and Venture Seminar. The task was to develop an idea or concept for a service or product within a company or a digital venture. The idea of inventing an application that informs customers about the products approaching their BBD came into existence due to his personal experience working at Starbucks in Los Angeles in 2009. He used this as inspiration for the Strategy and Venture Seminar, and the idea of FoodLoop was born.

Team

Christoph Müller-Dechent (CEO and founder; strategic alliances and fundamental corporate development; full-time) Tobias Müller Dechent (CMO; marketing and communication; full-time) Florian Ertel (Business Developer; market analysis; full-time) Mehrad Rafigh (CTO; IT issues, development of the backend and Android App; full-time) Fabian Zavodnik (Backend and IOS Developer; part-time) Marcel Schaeben (IOS Frontend Developer; part-time)
Background
Please confirm how you heard about the Unilever Awards:

Ashoka Reference

Please confirm your role in the initiative (eg Founder/co-Founder) and your organisational title:

Founder

Which of the 8 UN Global Goals (Sustainable Development Goals) pre-selected for this competition does your solution relate most closely to? [select all that apply]

Responsible Consumption and Production, Climate Action.

Leadership and the Unilever Awards
Please provide examples of any previous entrepreneurial initiatives you have pioneered.

Participating in the german Accelerator in 2015 for 6 months has been a tremendous experience on a personal level. I learnt how technology can change behavior and how I can contribute with a viable business model, while being able to change people's behavior. Learning the ropes of the sustainability and technology industry, enabled me to explore the vision of foodloop and also define the product and its services to be commercially successful.

Beyond your existing team, who else are you working with to achieve your objectives, eg partners, advisors, mentors?

SAP SE, Ben & Jerry's, 2 Supermarktet Owners, GS1 Standardizer, German Federal Ministry of Economics and Energy, European Commission, Avery Dennison.