Episode 141: Brittain Ladd
Feb 17, 2021, Updated Jun 11, 2021
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Our former guest Brittain Ladd from Episode 41, one of our top 20 most downloaded episodes of all time, joins The Produce Moms again to talk aboutย 2021 grocery insights, the current state of retail, and the exciting innovations weโre seeing with micro fulfillment centers.
Brittain is one of the most well-loved leaders in the produce industry and his insight into what changes weโll see in the produce and grocery retail industries is phenomenal. A former US Marine, Brittain has traveled the world designing retail logistics and supply chain programs, strategies, theories and instigating innovations that are life changing. He was even the first person to recommend Amazon acquire Whole Foods, among many other accomplishments!
Before COVID-19 happened, online sales was only about 3% of a grocery retailerโs business. Brittain predicted this would jump to about 15-20% by 2025 and emphasized the important role companies like Instacart would play in this, but he wasnโt taken seriously. Fast forward to COVID-19 hitting and online sales, in some cases, turning into about 50% of a grocery retailerโs business. Now grocery stores are looking to micro fulfillment centers to help serve their customers closer and in a safe manner.
โMake no mistake. COVID-19 changed everything for the grocery industry.โ Brittain Ladd (5:51-5:55)
Micro what? If youโre having a hard time understanding what micro fulfillment is, Brittain gives a great example of a Rubik’s cube. Imagine a 22,000 square foot Rubik’s cube with each cube holding inventory. On top of the rubik’s cube are robots that can move forwards and backwards, left to right, with the ability to pull cubes in and out of their spots. Thatโs kind of how a micro fulfillment automation store operates.
Donโt worry, your fresh produce isnโt being handled by robots. Micro fulfillment centers hold products that require โambient airโ (aka no refrigeration or freezing) and are found in the center aisle of your grocery store. If a customer orders groceries from a retailer that uses micro fulfillment centers, the fulfillment center will provide any boxed or โcenter aisleโ products, while the grocery store will pick out the chilled or fresh products, which is about 15% of what a customer typically orders.
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On average, retailers lose $25 for every online grocery order which is why more and more of them are looking to create their own micro fulfillment centers directly on site rather than working with a third party. Brittain has a big vision for the future of grocery retail that allows micro fulfillment centers to be next to a store and retailersย can open up their store to allow for more fresh produce, meat, milk, eggs, dairy, better selections for cheeses and areas for cafes, seeing brick-and-mortar grocery retailers becoming a haven and playground for people who love fresh produce. This is something that Amazon is currently building with their new Amazon Fresh grocery stores.
What about Instacart? Brittain foresees Instacart opening about 100 more micro fulfillment centers by the end of 2022, and by 2025 making their own deliveries for their own customers with their own grocery brand. He also predicts convenient stores starting to provide more and more fresh produce, dairy and meat products because, again, with COVID-19, theyโre realizing they have customers looking to them to fulfill a need thatโs outside of soda and bags of chips.
โAny time you can fulfill faster and closer to customers, youโre keeping your fresh produce that much more fresh.โ – Brittain Ladd (25:30-25:37)
The incredible thing about Brittainโs insight and this episode is learning how technology, automation and robotics is helping companies come together to provide fresher produce to consumers. These innovations are helping farmers and the fresh produce industry we love, while creating fast, efficient, safe and healthy ways to provide consumers the freshest meat, dairy and produce possible.
How to get involved
- Join The Produce Moms Group on Facebook and continue the discussion every week!
- Reach out to us – weโd love to hear more about where you are in life and business! Find out more here.
If you liked this episode on 2021 Grocery Insights, be sure to subscribe and leave a quick review on iTunes. It would mean the world to hear your feedback and weโd love for you to help us spread the word!
Previous episodes you may enjoy
- Episode 140: Embracing Technology For Transparency In Produce With Karen Long, Digital Transformation Specialist and Senior Account Executive at iFoodDS
- Episode 139: Deploying Nutrition For Humanity With Derk Hendriksen, Co-CEO Of Treasure8
- Episode 138: Combining Passion And Produce With Stefanie Katzman, Executive Vice President at S. Katzman Produce
- Episode 137: The Magic Gold Of Potatoes With Kevin Stanger, President Of Wada Farms
- Episode 136: All Things Citrus And The Beauty Of MandaRosa With Kim Flores, Vice President Of Business Development And Marketing For Pro Citrus Network
