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How Dynamic Pricing Tech is Cutting Grocers’ Food Waste
<!DOCTYPE html><html lang="en"><head><meta charSet="utf-8"/><meta name="viewport" content="width=device-width,initial-scale=1"/><meta name="robots" content="max-image-preview:large"/><title>How Dynamic Pricing Tech is Cutting Grocers’ Food Waste</title><meta name="description" content="Dynamic pricing software like Wasteless uses AI to reduce food waste and boost grocery profits by automatically adjusting prices for perishables as they approach expiration, encouraging earlier purchases with smaller markdowns. Since its launch in 2017, the technology has helped grocers reduce waste by up to 80%, save millions, and increase revenue, particularly benefiting meat, poultry, and fish sales, while addressing sustainability and market challenges."/><meta property="og:title" content="How Dynamic Pricing Tech is Cutting Grocers’ Food Waste"/><meta property="og:description" content="Dynamic pricing software like Wasteless uses AI to reduce food waste and boost grocery profits by automatically adjusting prices for perishables as they approach expiration, encouraging earlier purchases with smaller markdowns. Since its launch in 2017, the technology has helped grocers reduce waste by up to 80%, save millions, and increase revenue, particularly benefiting meat, poultry, and fish sales, while addressing sustainability and market challenges."/><meta property="og:url" content="https://www.waste360.com/food-waste/how-dynamic-pricing-tech-is-cutting-grocers-food-waste"/><meta property="og:type" content="article"/><meta property="og:image" content="https://eu-images.contentstack.com/v3/assets/blt4a147f9e36f0754a/blt504d9ded2bf0c0bb/651ff88cac22389e4abffe20/grocery_20store_20waste_20MR1540.jpg?disable=upscale&width=1200&height=630&fit=crop"/><meta property="oc:keywords" content="Food Waste, Organic Waste"/><link rel="canonical" href="https://www.waste360.com/food-waste/how-dynamic-pricing-tech-is-cutting-grocers-food-waste"/><script type="application/ld+json">{"@context":"https://schema.org","@type":"Article","datePublished":"2024-10-15T02:46:24.000Z","dateModified":"2024-10-16T03:11:23.570Z","headline":"How Dynamic Pricing Tech is Cutting Grocers’ Food Waste","mainEntityOfPage":"https://www.waste360.com/food-waste/how-dynamic-pricing-tech-is-cutting-grocers-food-waste","image":{"@type":"ImageObject","url":"https://eu-images.contentstack.com/v3/assets/blt4a147f9e36f0754a/blt504d9ded2bf0c0bb/651ff88cac22389e4abffe20/grocery_20store_20waste_20MR1540.jpg","caption":"","creditText":"Jim West / Alamy Stock Photo"},"author":[{"@type":"Person","name":"Arlene Karidis","image":"https://eu-images.contentstack.com/v3/assets/blt4a147f9e36f0754a/blt03c475d40ab16e78/66ab7b7c75e867d151d741bc/20240721_150521.jpg","url":"https://www.waste360.com/author/arlene-karidis"}],"publisher":{"@type":["NewsMediaOrganization","Organization","OnlineBusiness"],"identifier":"https://www.waste360.com","name":"Waste360","url":"https://www.waste360.com","sameAs":["https://www.facebook.com/WasteExpo/","https://twitter.com/Waste360","https://www.linkedin.com/company/waste360/","https://www.youtube.com/channel/UC_L072N_d-bkq7RA3wGCUnQ","https://www.instagram.com/wasteexpo/"],"foundingDate":"2005","description":"Serving 90,000+ professionals worldwide, Waste360 is the leading information, event, commerce and education provider to the solid waste, recycling, organics and sustainable communities and plays a critical role in connecting industry professionals worldwide. 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style="mask-image:url(/build/_assets/Close-INMB7UB6.svg);-webkit-mask-image:url(/build/_assets/Close-INMB7UB6.svg);mask-repeat:no-repeat;-webkit-mask-repeat:no-repeat;-webkit-mask-position:center;-webkit-mask-size:contain"></span></button></div></div></div></div></nav><section class="Layout-Section"><div id="iiris-identity" data-testid="iris-identity" configid="69f3f2cefc63fb87c034aca74b403dc0"></div><div data-template="article"><div class="TwoColumnLayout"><div id="portal-root"></div><div class="TwoColumnLayout-Head"><div class="ArticleBase-Header"><ul class="ArticleBase-Topics" data-testid="article-topics"><li class="ArticleBase-Topic"><a data-component="keyword" class="Keyword Keyword_variant_category Keyword_title_foodWaste" data-discover="true" href="/organic-waste/food-waste">Food Waste</a></li><li class="ArticleBase-Topic"><a data-component="keyword" class="Keyword Keyword_variant_category Keyword_title_organicWaste" data-discover="true" href="/organic-waste">Organic Waste</a></li></ul><div><h1 class="ArticleBase-HeaderTitle"><noscript><span class="ArticleBase-LargeTitle">How Dynamic Pricing Tech is Cutting Grocers’ Food Waste</span></noscript><span class="ArticleBase-DefaultTitle" data-testid="article-default-title">How Dynamic Pricing Tech is Cutting Grocers’ Food Waste</span></h1><p class="ArticleBase-HeaderSummary" data-testid="article-summary">Dynamic pricing software like Wasteless uses AI to reduce food waste and boost grocery profits by automatically adjusting prices for perishables as they approach expiration, encouraging earlier purchases with smaller markdowns. Since its launch in 2017, the technology has helped grocers reduce waste by up to 80%, save millions, and increase revenue, particularly benefiting meat, poultry, and fish sales, while addressing sustainability and market challenges.</p></div></div></div><div class="TwoColumnLayout-Content"><div class="TwoColumnLayout-Body"><div class="ArticleBase-Body" data-testid="article-base-body"><div class="ArticleBase-Contributors" data-testid="article-base-contributors"><div class="Contributors Contributors_variant_normal Contributors_hasAvatar" data-component="contributors"><div class="Contributors-AvatarWrapper"><a class="Contributors-AvatarLink" aria-label="Arlene Karidis" data-discover="true" href="/author/arlene-karidis"><img aria-hidden="true" data-testid="contributor-avatar" data-component="image" class="Contributors-Avatar" data-src="https://eu-images.contentstack.com/v3/assets/blt4a147f9e36f0754a/blt03c475d40ab16e78/66ab7b7c75e867d151d741bc/20240721_150521.jpg?width=100&auto=webp&quality=80&disable=upscale" src="https://eu-images.contentstack.com/v3/assets/blt4a147f9e36f0754a/blt03c475d40ab16e78/66ab7b7c75e867d151d741bc/20240721_150521.jpg?width=100&auto=webp&quality=80&disable=upscale" loading="lazy" alt="Picture of Arlene Karidis" title="Picture of Arlene Karidis"/></a></div><div class="Contributors-InfoWrapper"><a class="Contributors-ContributorName" data-testid="contributor-name" data-discover="true" href="/author/arlene-karidis">Arlene Karidis</a><span class="Contributors-ContributorTitle" data-testid="contributor-title">, <!-- -->Freelance writer</span><p class="Contributors-Date" data-testid="contributors-date">October 15, 2024</p></div></div><div data-component="article-read-time" class="ArticleReadTime ArticleReadTime_size_normal"><span data-component="icon" data-name="Clock" class="ArticleReadTime-Icon" style="mask-image:url(/build/_assets/Clock-7T3J7LBX.svg);-webkit-mask-image:url(/build/_assets/Clock-7T3J7LBX.svg);mask-repeat:no-repeat;-webkit-mask-repeat:no-repeat;-webkit-mask-position:center;-webkit-mask-size:contain"></span><span>5 Min<!-- --> <!-- -->Read</span></div></div><div class="ArticleBase-FeaturedImageWrapper" data-testid="featured-image"><div data-component="captioned-content" class="CaptionedContent"><div class="CaptionedContent-Content"><img data-component="image" class="ArticleBase-FeaturedImage" data-src="https://eu-images.contentstack.com/v3/assets/blt4a147f9e36f0754a/blt504d9ded2bf0c0bb/651ff88cac22389e4abffe20/grocery_20store_20waste_20MR1540.jpg?width=1280&auto=webp&quality=95&format=jpg&disable=upscale" src="https://eu-images.contentstack.com/v3/assets/blt4a147f9e36f0754a/blt504d9ded2bf0c0bb/651ff88cac22389e4abffe20/grocery_20store_20waste_20MR1540.jpg?width=1280&auto=webp&quality=95&format=jpg&disable=upscale" loading="eager" alt="food waste" title="food waste"/></div><div class="CaptionedContent-Caption" data-testid="captioned-content-caption"><span class="CaptionedContent-CreditTo">Jim West / Alamy Stock Photo</span></div></div></div><div class="SocialShare"></div><div class="ArticleBase-BodyContent ArticleBase-BodyContent_Article" data-testid="article-base-body-content"><div data-module="content" class="ContentModule-Wrapper"><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">U.S. grocers generated 4.99 million tons of surplus food in 2022, and nearly 35 percent of it was landfilled or incinerated, taking a toll on the environment and on retailers’ bottom line. Food lost at the store level is worth, on average, double the profits from food sales, reports ReFED.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">But a process called dynamic pricing has potential to turn the tide. It’s a way to slash food waste and its associated costs by discounting items as they draw nearer to their expiration dates.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">Software developer Wasteless offers an artificial intelligence-powered application to achieve those very goals. Its dynamic pricing software not only helps incentivize consumers to buy food that would otherwise become waste but does it in a way where retailers can make a profit.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">The company’s markdown software leverages deep learning to determine what foods to discount, how much to discount them, and when to do it. The smart tech monitors and analyzes data such as how much stock is onboarded to shelves, when it was put out, and expiration dates. Items are automatically priced according to their freshness. </span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">“We learned that to sell to retailers you must touch their pockets. So, we are selling money and value. Along with those benefits come massive food waste reduction,” says Wasteless founder and CEO Oded Omer.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">Launched in 2017, the company caters to 1,000 stores across 18 grocery chains in the U.S. and Europe. Customers realize at least 20 percent more revenue—sometimes up to 50 percent—leveraging this price optimization app.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">The tool has been a game changer for grocers who historically took what Omer calls a reactive approach to food waste rather than a preventive one. They would wait until a day or two before meats, poultry, and other perishables reached their expiration dates, then aggressively discount them.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">“We say do not wait until the last moment and knock down prices by 30 to 60 percent. Go with a much smaller discount earlier. Then we look at the outcome to determine if the lesser markdown was enough to move the stock and sell items. If the item was not picked up the AI technology deepens the markdown,” Omer says.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">In terms of dollars, some end users realize tens to hundreds of millions in savings, he says. At the same time, they typically cut their waste by 35 to 80 percent. That adds up, especially for large operations. He points to a 150-store chain that was able to prevent 2.2M pounds of meat from going to waste in one year.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">The fresher the items the greater the savings. Meat, poultry, and fish are where customers see the highest impact.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">Omer and co-founder Yossi Regev come from IT backgrounds, having developed dynamic pricing, big data, and IoT systems in past ventures. And they knew retail; they’d established three companies that focused on this sector.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">They sold the last of the three operations, a retail analytics company, to drink and brew mega giant AB InBev for $80 million. While their focus was not on salvaging food at the time, they were aware of the issues.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">“We thought what if we could harness the power of dynamic pricing to reduce food waste? We could have massive impact!”</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">For a fleeting moment he wondered if he would have to be insane to start all over again from the ground up.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">“But my career was inside startups where you wake up with an idea. You want to do something good that will bring meaningful change.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">“So, I said we know retail. We know investors and have other connections. Let’s fight food waste. That’s a good goal.”</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">In 2017, the year Omer and Regev launched Wasteless, they tested the American market but decided grocers there were not ready for what they had in mind. The entrepreneurs turned to Europe, establishing a subsidiary in the Netherlands where the industry was aware of and wanting to take on food waste. Today they work with what Omer calls four of Europe’s largest chains.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">The partners gave the U.S. another shot in 2019 setting up a demonstration project in Manhattan. Retailers’ understanding has been growing around the potential to generate more revenue while reducing their waste, and the tech company has grown alongside this trend.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">By now Wasteless has raised $15M, mainly through venture capital from U.S. and European firms. Some funds have come from innovation grants and some from industry-related investors, mostly meat manufacturers.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">A few dynamics that present unique challenges to grocers drive the uptick in new technologies for this sector—especially as food companies are pressued to do their part to help slow climate change. What those dynamics boil down to is that grocers live in a constantly changing world.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">There are supply chain fluctuations due to factors such as seasonal produce availability, weather conditions, and transportation delays. A sudden disruption in the delivery of fresh produce or other perishables can lead to a backup, then unexpected overstock, with waste happening when products expire before they are sold.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">Adding to these complexities, consumer preferences can shift, sometimes quickly, due to trends, diet fads, or local events. Trying to stay on top of these fluctuations can take some guesswork. It can mean more waste when unexpected demand spikes are not properly anticipated.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">Stores Consulting Group supports grocers in areas such as process improvement, shrink and profit recovery. The company brings Wasteless’ technology to its clients.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">“[The tool has generated] huge returns on investment and the ability for targeted markdowns based on movement and ownership, versus the traditional way of static markdown percentages,” says Rick Marino, managing director, The Stores Consulting Group.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">His clients</span><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text"><span class="ContentText-BodyTextChunk ContentText-BodyTextChunk_bold"> </span></span><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">are losing one-third less in markdown costs; they are selling more and landfilling less while offering clients what they look for: good deals, he says.Says Omer: “It’s about empowering supermarket chains to operate more profitably and efficiently, reduce waste and ultimately create a more sustainable future for the industry.”</span></p></div></div><div class="ArticleBase-More" data-testid="article-base-more"><p class="ArticleBase-MoreTitle">Read more about:</p><a data-component="keyword" class="Keyword Keyword_variant_category-2 Keyword_title_foodWaste ArticleBase-Keywords" data-discover="true" href="/keyword/food-waste">Food Waste</a><a data-component="keyword" class="Keyword Keyword_variant_category-2 Keyword_title_technology ArticleBase-Keywords" data-discover="true" href="/keyword/technology">Technology</a><a data-component="keyword" class="Keyword Keyword_variant_category-2 Keyword_title_artificialIntelligence ArticleBase-Keywords" data-discover="true" href="/keyword/artificial-intelligence">Artificial Intelligence</a></div><div class="SocialShare"></div><div class="ArticleBase-ContributorsWrapper"><h2 class="ArticleBase-ContributorsTitle">About the Author</h2><div class="ArticleBase-ContributorsSummary"><div data-component="contributor-summary" class="ContributorSummary ContributorSummary_variant_author"><div class="ContributorSummary-ImageWrapper ContributorSummary-ImageWrapper_variant_author"><a data-testid="contributor-summary-img-link" data-discover="true" href="/author/arlene-karidis"><img data-component="image" class="ContributorSummary-Image ContributorSummary-Image_variant_author" data-src="https://eu-images.contentstack.com/v3/assets/blt4a147f9e36f0754a/blt03c475d40ab16e78/66ab7b7c75e867d151d741bc/20240721_150521.jpg?width=400&auto=webp&quality=80&disable=upscale" src="https://eu-images.contentstack.com/v3/assets/blt4a147f9e36f0754a/blt03c475d40ab16e78/66ab7b7c75e867d151d741bc/20240721_150521.jpg?width=400&auto=webp&quality=80&disable=upscale" loading="lazy" alt="Arlene Karidis" title="Arlene Karidis"/></a></div><div class="ContributorSummary-InfoWrapper ContributorSummary-InfoWrapper_variant_author"><div class="ContributorSummary-TitleWrapper"><a data-testid="contributor-summary-title-link" data-discover="true" href="/author/arlene-karidis"><p class="ContributorSummary-Title ContributorSummary-Title_variant_author" data-testid="contributor-summary-title">Arlene Karidis</p></a></div><div class="ContributorSummary-SubTitleWrapper ContributorSummary-SubTitleWrapper_variant_author"><p class="ContributorSummary-SubTitle ContributorSummary-SubTitle_variant_author" data-testid="contributor-summary-subtitle">Freelance writer, Waste360</p></div><div class="ContributorSummary-ContentWrapper ContributorSummary-ContentWrapper_variant_author"><div class="ContributorSummary-Content ContributorSummary-Content_variant_author" data-testid="contributor-summary-content"><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNoneStyle" data-testid="content-text">Arlene Karidis has 30 years’ cumulative experience reporting on health and environmental topics for B2B and consumer publications of a global, national and/or regional reach, including Waste360, Washington Post, The Atlantic, Huffington Post, Baltimore Sun and lifestyle and parenting magazines. In between her assignments, Arlene does yoga, Pilates, takes long walks, and works her body in other ways that won’t bang up her somewhat challenged knees; drinks wine; hangs with her family and other good friends and on really slow weekends, entertains herself watching her cat get happy on catnip and play with new toys.</span></p></div></div></div><div class="ContributorSummary-SeeMore"><a data-component="button" class="Button Button_size_medium Button_variant_textLink" rel="" data-discover="true" href="/author/arlene-karidis"><span class="Button-ContentWrapper"><span class="ContributorSummary-SeeMoreText"><span>See more from <!-- -->Arlene Karidis</span><span data-component="icon" data-name="ChevronRight" class="ContributorSummary-SeeMoreIcon" style="mask-image:url(/build/_assets/ChevronRight-W5LPP5NG.svg);-webkit-mask-image:url(/build/_assets/ChevronRight-W5LPP5NG.svg);mask-repeat:no-repeat;-webkit-mask-repeat:no-repeat;-webkit-mask-position:center;-webkit-mask-size:contain"></span></span></span></a></div></div></div></div><div data-module="newsletter-signup-promo"><div class="SubscribeBannerTopicPage SubscribeBannerTopicPage_mode_dark SubscribeBannerTopicPage_variant_vertical ArticleBase-Newsletter"><div class="SubscribeBannerTopicPage-Content"><div class="SubscribeBannerTopicPage-Title" data-testid="subscribeBannerTopicPage_title">Stay in the Know - Subscribe to Our Newsletters</div><div class="SubscribeBannerTopicPage-Message" data-testid="subscribeBannerTopicPage_message">Join a network of more than 90,000 waste and recycling industry professionals. 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In between her assignments, Arlene does yoga, Pilates, takes long walks, and works her body in other ways that won’t bang up her somewhat challenged knees; drinks wine; hangs with her family and other good friends and on really slow weekends, entertains herself watching her cat get happy on catnip and play with new toys."}]}]}],"gatedWithExternalForm":false,"gatedWithSiteReg":false,"paidGating":false,"sponsorName":""},"template":{"breadcrumbs":[{"url":"/","title":"Home"},{"url":"/organic-waste/food-waste","title":"Food Waste"}],"topics":[{"__typename":"TopicSecondary","title":"Food Waste","url":"/organic-waste/food-waste","parentTopic":{"title":"Organic Waste"}},{"__typename":"TopicPrimary","title":"Organic Waste","url":"/organic-waste"}],"subBrand":null,"searchParams":{},"summary":"Dynamic pricing software like Wasteless uses AI to reduce food waste and boost grocery profits by automatically adjusting prices for perishables as they approach expiration, encouraging earlier purchases with smaller markdowns. Since its launch in 2017, the technology has helped grocers reduce waste by up to 80%, save millions, and increase revenue, particularly benefiting meat, poultry, and fish sales, while addressing sustainability and market challenges.","title":"How Dynamic Pricing Tech is Cutting Grocers’ Food Waste","mobileHeadline":"How Dynamic Pricing Tech is Cutting Grocers’ Food Waste","authoredBy":"","authoredOn":"","oldUrl":"","buyersJourney":"","contributors":[{"title":"Arlene Karidis","name":"Arlene Karidis","companyName":"Waste360","role":"Freelance writer","avatar":"https://eu-images.contentstack.com/v3/assets/blt4a147f9e36f0754a/blt03c475d40ab16e78/66ab7b7c75e867d151d741bc/20240721_150521.jpg","link":"/author/arlene-karidis","tagLine":"Freelance writer, Waste360","summary":[{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"Arlene Karidis has 30 years’ cumulative experience reporting on health and environmental topics for B2B and consumer publications of a global, national and/or regional reach, including Waste360, Washington Post, The Atlantic, Huffington Post, Baltimore Sun and lifestyle and parenting magazines. In between her assignments, Arlene does yoga, Pilates, takes long walks, and works her body in other ways that won’t bang up her somewhat challenged knees; drinks wine; hangs with her family and other good friends and on really slow weekends, entertains herself watching her cat get happy on catnip and play with new toys."}]}]}],"readTime":5,"newsletterSignUpPromo":{"title":"Stay in the Know - Subscribe to Our Newsletters","message":"Join a network of more than 90,000 waste and recycling industry professionals. Get the latest news and insights straight to your inbox. Free.","newsletterId":"blt977779e7be79b245","buttonText":"Sign Me Up","variant":"vertical","mode":"dark"},"socialShare":[],"publishedDate":"2024-10-15T02:46:24.000Z","keywords":[{"url":"/keyword/food-waste","title":"Food Waste"},{"url":"/keyword/technology","title":"Technology"},{"url":"/keyword/artificial-intelligence","title":"Artificial Intelligence"}],"atAGlance":[],"bodyJson":[{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"U.S. grocers generated 4.99 million tons of surplus food in 2022, and nearly 35 percent of it was landfilled or incinerated, taking a toll on the environment and on retailers’ bottom line. Food lost at the store level is worth, on average, double the profits from food sales, reports ReFED."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"But a process called dynamic pricing has potential to turn the tide. It’s a way to slash food waste and its associated costs by discounting items as they draw nearer to their expiration dates."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"Software developer Wasteless offers an artificial intelligence-powered application to achieve those very goals. Its dynamic pricing software not only helps incentivize consumers to buy food that would otherwise become waste but does it in a way where retailers can make a profit."}]},{"type":"ad","pos":"300_1v_article"},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"The company’s markdown software leverages deep learning to determine what foods to discount, how much to discount them, and when to do it. The smart tech monitors and analyzes data such as how much stock is onboarded to shelves, when it was put out, and expiration dates. Items are automatically priced according to their freshness. "}]},{"type":"ad","pos":"native_1v"},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"“We learned that to sell to retailers you must touch their pockets. So, we are selling money and value. Along with those benefits come massive food waste reduction,” says Wasteless founder and CEO Oded Omer."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"Launched in 2017, the company caters to 1,000 stores across 18 grocery chains in the U.S. and Europe. Customers realize at least 20 percent more revenue—sometimes up to 50 percent—leveraging this price optimization app."}]},{"type":"ad","pos":"video_v"},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"The tool has been a game changer for grocers who historically took what Omer calls a reactive approach to food waste rather than a preventive one. They would wait until a day or two before meats, poultry, and other perishables reached their expiration dates, then aggressively discount them."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"“We say do not wait until the last moment and knock down prices by 30 to 60 percent. Go with a much smaller discount earlier. Then we look at the outcome to determine if the lesser markdown was enough to move the stock and sell items. If the item was not picked up the AI technology deepens the markdown,” Omer says."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"In terms of dollars, some end users realize tens to hundreds of millions in savings, he says. At the same time, they typically cut their waste by 35 to 80 percent. That adds up, especially for large operations. He points to a 150-store chain that was able to prevent 2.2M pounds of meat from going to waste in one year."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"The fresher the items the greater the savings. Meat, poultry, and fish are where customers see the highest impact."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"Omer and co-founder Yossi Regev come from IT backgrounds, having developed dynamic pricing, big data, and IoT systems in past ventures. And they knew retail; they’d established three companies that focused on this sector."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"They sold the last of the three operations, a retail analytics company, to drink and brew mega giant AB InBev for $80 million. While their focus was not on salvaging food at the time, they were aware of the issues."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"“We thought what if we could harness the power of dynamic pricing to reduce food waste? We could have massive impact!”"}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"For a fleeting moment he wondered if he would have to be insane to start all over again from the ground up."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"“But my career was inside startups where you wake up with an idea. You want to do something good that will bring meaningful change."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"“So, I said we know retail. We know investors and have other connections. Let’s fight food waste. That’s a good goal.”"}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"In 2017, the year Omer and Regev launched Wasteless, they tested the American market but decided grocers there were not ready for what they had in mind. The entrepreneurs turned to Europe, establishing a subsidiary in the Netherlands where the industry was aware of and wanting to take on food waste. Today they work with what Omer calls four of Europe’s largest chains."}]},{"type":"ad","pos":"native_2v"},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"The partners gave the U.S. another shot in 2019 setting up a demonstration project in Manhattan. Retailers’ understanding has been growing around the potential to generate more revenue while reducing their waste, and the tech company has grown alongside this trend."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"By now Wasteless has raised $15M, mainly through venture capital from U.S. and European firms. Some funds have come from innovation grants and some from industry-related investors, mostly meat manufacturers."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"A few dynamics that present unique challenges to grocers drive the uptick in new technologies for this sector—especially as food companies are pressued to do their part to help slow climate change. What those dynamics boil down to is that grocers live in a constantly changing world."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"There are supply chain fluctuations due to factors such as seasonal produce availability, weather conditions, and transportation delays. A sudden disruption in the delivery of fresh produce or other perishables can lead to a backup, then unexpected overstock, with waste happening when products expire before they are sold."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"Adding to these complexities, consumer preferences can shift, sometimes quickly, due to trends, diet fads, or local events. Trying to stay on top of these fluctuations can take some guesswork. It can mean more waste when unexpected demand spikes are not properly anticipated."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"Stores Consulting Group supports grocers in areas such as process improvement, shrink and profit recovery. The company brings Wasteless’ technology to its clients."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"“[The tool has generated] huge returns on investment and the ability for targeted markdowns based on movement and ownership, versus the traditional way of static markdown percentages,” says Rick Marino, managing director, The Stores Consulting Group."}]},{"type":"ad","pos":"300_2v_article"},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"His clients"},{"type":"text","marks":[{"type":"bold"}],"text":" "},{"type":"text","text":"are losing one-third less in markdown costs; they are selling more and landfilling less while offering clients what they look for: good deals, he says.Says Omer: “It’s about empowering supermarket chains to operate more profitably and efficiently, reduce waste and ultimately create a more sustainable future for the 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