In this episode of Shelf Confidence, we take a look at how dynamic pricing strategies can help food and beverage retailers analyze and increase their profit margins. Join us as we talk with Tanvi Surti, co-founder and CEO of Luca Software, an AI-powered dynamic pricing and promotional engine for grocers.
Tanvi will break down the technology behind dynamic pricing, discussing how data analytics, artificial intelligence, and machine learning are used to set optimal prices that benefit both retailers and consumers. We'll also examine the ethical considerations and potential challenges, such as price fairness and consumer perception. Episode Transcript
[Intro] Hello, and welcome to Shelf Confidence, a podcast brought to you by the Pennsylvania Food Merchants Association that focuses on trends and innovation in the food and beverage industry. I’m Larissa Newton, your host, and today I have the pleasure of welcoming Tanvi Surti, co-founder and CEO of Luca Software, an AI-powered dynamic pricing and promotional engine for grocers.
Luca was co-founded by Tanvi and Yonah Mann, who worked together on Uber’s dynamic pricing team. Using a retailer’s historical sales and inventory data, as well as competitor signals, Luca can forecast the sales performance of products at different price points. Consumers have become increasingly budget conscious, and we’ve seen a lot of headlines recently about retailers announcing reduced prices on thousands of items. Having worked closely with retailers on their pricing strategies, Tanvi offers a unique view on how businesses can ensure a balance between profitability and consumer satisfaction. [Larissa] Thanks so much for joining us today, Tanvi. [Tanvi] I’m excited to be here. [Larissa] So in your view, what are the key factors contributing to the increasing budget consciousness among consumers today? [Tanvi] That is a complicated macroeconomic question. I think for that we need to go back a few years, just around when Covid was starting and the impact it was having to supply chain. There was a very sharp increase in costs for both retailers, and grocers, in particular, were deeply impacted. As a result, grocers did what any business person would do, which is essentially proportionally pass those costs down to the end consumer, creating an across-the-board sharp price increase for consumers for essential goods. Particularly when it came to groceries. And during the pandemic year, with low interest rates, low travel spending, etc., consumers essentially shrugged their shoulders and said, OK, if this is what it takes to get my grocery cart filled, I’m going to do it. That, coupled with the fact that the government was subsidizing — especially in the U.S., so not so sure globally — especially in the U.S., the government was giving away money to end consumers, spending power overall just felt like it was a little bit higher. Now fast forward a few years — interest rates are up, the Fed is taking a very cautious approach on inflation, the government has stopped subsidizing peoples’ paychecks, spending overall has gone up with people back in the office and commute and travel. Consumer willingness to pay has just gone down. And that has been true across the board. You especially see that on luxury products. But when it comes to essentials like groceries, consumers have now become a lot more aware. And I would say that this is a phenomenon specific to the last 12 to 24 months. Consumers have become a lot more aware about what they’re putting in their shopping cart. That has created a shift towards like discount shopping, a shift towards looking for great deals and being a lot more conscious about how much your weekly shop is costing you. And I think it is just a little bit of a reversal of and unfortunate inflation and spending we saw during Covid. [Larissa] So you touched on this a bit, but how have these trends impacted the food and beverage retail industry specifically? [Tanvi] Yeah. I would say that it was a mixture of two things. One is for reasons outside of their control, the food and beverage industry had to increase prices to maintain their margins. Between 2020 and 2022, as we talked about, supply chain plus increasing logistics costs made it necessary for grocers to increase prices. [Larissa] And so what strategies should they be considering to balance that need for affordable prices for consumers with profitability for the business? [Tanvi] Yeah, this is a great question. So I’ll answer this question in two ways. One is what is the strategic approach a grocer needs to take? And secondly is how do you actually tactically execute that strategic approach and translate that strategy into prices on your shelves? On a strategic basis, prices don’t exist in isolation. As we’ve discussed in over the last five, 10 minutes, prices have to be taken in context of the larger economic environment, the consumer spending, and purchasing power. So, prices usually are a reflection of a dozen different parameters at any given time, which are interest rates, costs, competitor behavior, weather, socioeconomic factors — so if you are an end consumer like what are average salaries — availability of the product — so like supply chain health and how much produce and how much product is on the shelves. And essentially all of these parameters play a role in essentially what a consumer is willing to spend. Oh, and sorry, one I didn’t mention, which is the most important one, is elasticity. Like what is the customer sensitivity to a price increase or decrease for that particular SKU? So the right strategic approach for a grocer making pricing and promotion decision is multi-dimensional. You have to look at a dozen different parameters to create one piece of output, which is a price that goes on a price tag. Now, if that sounds complicated, it is complicated. And the best companies in the world — and I used to work at Uber, where I used to lead the pricing team — the best companies in the world like Uber, Amazon, Walmart, have armies of data scientists and economists and engineers that are building very complicated machine-learning models that enable these companies to take these dozen or so parameters and convert that to the right price, which is the right price for the consumer at the business. The average grocer or the average convenience store doesn’t have that capability. So how do you take this like strategic approach and convert it to tactical decision making? And that’s where companies like mine — I’m the co-founder and CEO of Luca, we are an AI-powered pricing engine — that’s where we come into play. We build custom machine-learning models that are informed by the work we’ve done at Uber that take all of these parameters for the grocers, train a machine-learning model and output a price at a SKU, category and store level that is the right price for the business’s objectives and what consumer appetite there is to pay for that specific product. What I would encourage grocers who are thinking about a strategic shift in pricing to do is step one, take a deep look at how you’re making pricing decisions today. If you’re doing cost plus margin type pricing in a spreadsheet, know that you are leaving a lot of money on the table and you’re making some serious mistakes. Take some time to strategically think about what other factors you need to be accounting for while making pricing decisions. And as step two, look at solution providers like ourselves that are able to automate and build these systems for you. Because, candidly, the grocers, the mid-sized grocers who are dealing with this problem today don’t have the technical resources to be able to execute. [Larissa] So can you discuss any success stories where personalized pricing has led to increased customer loyalty and satisfaction? [Tanvi] Yeah, absolutely. So, my company works with a myriad of grocery and CPG companies across the U.S. One of our customers is an online grocer in California called Good Eggs. They don’t have any physical presence. They do essentially online ordering, checkout and home deliveries for high-quality organic produce, snacks and meal kits in California. Prior to working with us, they took a very standard approach to pricing, which was a mixture of cost-based pricing with essentially a shifting cost profile across different suppliers they had. And they were making pretty manual decisions across the thousands of SKUs they were selling. In addition to all the value left on the table with over and under pricing, this was also very manually intensive for them. So they were spending tens of hours on a weekly basis, monthly basis, making pricing and promotional decisions where someone was literally sitting in a spreadsheet and deciding prices at a SKU level. When they started working with Luca and adopted our pricing engine, we did a couple of different things for them. (And this kind of maps the approach we take with any customer we work with.) We started with ingesting all of their data. So we looked at three to four years of historical sales history, promotions, consumer behavior. We looked at COGS, we looked at inventory. We looked at products they sell. We looked at what their competitors were selling similar or identical products at. And we built out a machine-learning model that ingested all of that data. We, as a result, were able to produce price plans that got them to specific revenue margin and profit targets that they needed and were able to automate it such that they were getting a price output out of our system on a weekly cadence. The impact of moving from static, spreadsheet-based pricing to this machine-learning powered, dynamic pricing approach that was a competitor and elasticity aware is massive improvement in margin profile for this business. I won’t share the exact numbers because it’s specific to their business, but essentially they were able to create very meaningful margin output that they were then able to use to put back into their business. Now there is a short-term margin output that’s measurable, but there is a long-term consumer loyalty output that you asked about that will show up on a longer time horizon. And the way that shows up is your consumers are indexing very heavily on prices of certain products — bananas, eggs, bread, milk, for example. Our ML model is able to identify the role of each SKU in your product catalog and use the customers’ price sensitivity to that SKU to find the right price. So you never want to be overpriced on bananas, but you may have room to be overpriced on a meal kit, for example. That is a premium product on your platform, which is where you make the margin back that you gave up on bananas. So being able to do that kind of SKU level arbitrage has been deeply impactful, not from a margin perspective, but also from a consumer price perception perspective, which would have long-term customer loyalty benefits for this business. [Larissa] So earlier in the conversation, you talked about the different factors that go into creating a price. So what are those socioeconomic and ethical considerations that should be made when it comes to implementing dynamic pricing? [Tanvi] Yeah. That’s a great question. So, when we start working with the grocer at Luca, one of the first exercises we do is split up their business into price zones. Now, if it’s a medium-sized grocer with, let’s say, sub 20 stores in a specific region, usually you’re talking about one to five price zones. If it’s a larger national-size grocer, maybe you’re talking about hundreds of price zones. Each price zone is a cluster of stores which share the same price as the name suggests. And you’re giving yourself the flexibility for having different prices between different price zones. Now, the reason to carve out these price zones is you’re essentially making an estimate that all your consumers in that cluster of regions share a similar socioeconomic background or share similar spending behaviors. Another factor would be something like, oh, this cluster has a certain density of competing grocery stores or convenience stores. So just to give you a very simple kind of tried example like San Francisco downtown might be one price zone because it has a high density of grocery stores. But the suburbs of Fremont here in California might be a different price zone because there are fewer grocery stores around. Once you identify those price zones, our model looks at socioeconomic data within that geo. It looks at density of grocery stores. It looks at density of population. And it looks at like kind of age demographic. Like, is this a younger urban population, office goers, or is it an older retiree population? And we’re able to pull socioeconomic data like average salaries and so forth. All of that data gets put into our machine-learning model. And the reason I keep kind of falling back to the machine-learning model is there isn’t a formula in a spreadsheet somewhere which says, like, if average salary equals x, then do y. The power of machine learning is you can feed dozens, if not even hundreds, of different data points like socioeconomic data and age data and interest rate data and weather data, and train this model as if it’s a pricing brain which has knowledge of everything pricing related about your business. And that brain is able to create a probabilistic output of what is the right price to get you the best output for your business. So our job as like people training these machine-learning models is to find the right data sets and feed it into the system, and then the system is able to look at all these different considerations and make a pricing decision, which will vastly outperform any human with a spreadsheet spending hours and hours of it because the machine learning model is able to look at all of these different factors in combination, as opposed to looking at any of these data points in isolation. [Larissa] So that’s actually a really nice segue into my next question about the role of AI and, you know, how do you see it evolving in the grocery industry over the next five to 10 years? [Tanvi] Yeah, absolutely. So, this is, so it’s just a little bit of context on me before I answer that question. I’m a startup CEO in San Francisco with other AI companies that are springing up by the day in the dozens around me, building some really, really cool tech. And I’ve seen how powerful AI has been able to be in diverse industries, from like copywriting to marketing to legal to back office accounting processes. So I can tell you from what I am seeing in the tech companies that are building around me that AI is going to fundamentally change not just the grocery industry but how we operate in any kind of domain, both in the consumer and work setting. Having said that, I spend my time thinking about grocery and grocery problem spaces. And I’ve come to realize that in grocery AI can be an imprecise, and often right, but sometimes wrong, mode of interaction. And I’ve come to build the mantra that, like, our tech needs to be human-steered and AI-powered. And the human-steering part cannot go away and I don’t expect it to go away in the next five years, because at the end of the day, human operators are the ones interacting with consumers, having conversations with suppliers, getting to see the nuances of their business that AI, which is a probabilistic model, will never fully capture. So when it comes to my business and the platform I’m building, we are building a highly configurable system where humans can override any decision, but the AI will kind of do smart things in the background and produce recommendations with the human as the decision maker eventually. So how I see AI transforming grocery is the best companies will deploy AI to remove overhead to save time to do complicated processing. Like what we were just talking about with pricing, having to look at like 24 different signals to make a recommendation. But humans are not going to go away anytime soon because human operators at the end of the day will have nuanced context, which means they’re always going to have control of the steering wheel. So as I think about grocers, and I speak to a lot of grocers at conferences, etc., my advice to them, as they’re evaluating AI solutions, is one be skeptical. Don’t get overexcited by companies that are overpromising what automated AI can do and how they will be able to replace other human operators. And two, make sure that you’re being context specific. So, for example, AI is not going to be able to do stuff like, I don’t know, deciding what products you need to sell in your store. That is always going to be a human decision. But AI might be able to do dynamic pricing type optimization. So be context specific and think of AI as a supplementary tool and not as a replacement. [Larissa] Great. Well, thank you so much for sharing all these really valuable insights with us today. Before we wrap up, do you have any final thoughts or advice you’d like to share with our listeners? [Tanvi] Yeah. I think as I spend more and more time... Over the last two years, I’ve really gotten to know the grocery industry having no prior experience or knowledge in the space. And I have been really impressed with grocery CEOs and executives about how open they have been to adopting technology to create efficiencies in their system. Pricing, promotional decisions and vendor management discounts are a space that I feel that most grocers are underinvesting in. So my last thoughts, as I kind of go deeper into that space and like understand the grocery industry, is that there is a ton of margin and a ton of growth opportunity that is available like on the margin of like of how you are pricing your SKUs and your products. And like the 50 cent changes and the 25 cent changes and like small-value products can have meaningful, multiplicative output on your P&L. So my last thoughts, having like worked with all the grocers I’ve worked with, is don’t underinvest in your pricing decisions. There is a ton of margin hiding in there, and don’t think that it’s possible to manage this over spreadsheets by hiring people. You need smarter systems that are looking at more signal to be able to make the right decisions for you here. And it’s an area I feel like more grocers need to invest in. [Outro] If our members are interested in learning more about Luca Software, you can find their website at www.askluca.com. Thank you for tuning into Shelf Confidence. If you enjoyed today’s episode, please subscribe, share and review on Apple Podcasts, Spotify or wherever you get your podcasts. Until next time, I’m Larissa Newton and this is Shelf Confidence.
In this episode of Shelf Confidence, we delve into the intricacies of the Food Safety Modernization Act (FSMA) and its latest update, FSMA 204. Join us as we sit down with Sally Robinson, vice president of strategic initiatives at Upshop, who shares her invaluable insights on how food retailers can effectively prepare for the new requirements.
Robinson breaks down the critical components of FSMA 204, explaining its significance and the impact it will have on the food industry. We'll explore key changes introduced by this update, focusing on enhanced traceability requirements, record-keeping mandates, and new compliance deadlines. Join us as we help you prepare for FSMA 204 and ensure the safety and trust of your food supply chain. Episode Transcript
[Intro] Hello, and welcome to Shelf Confidence, a podcast brought to you by the Pennsylvania Food Merchants Association that focuses on trends and innovation in the food and beverage industry. I’m Larissa Newton, your host, and today I have the pleasure of welcoming Sally Robinson of Upshop to talk a bit about the Food Safety Modernization Act (or FSMA) and how retailers can prepare for enforcement deadlines.
Upshop has been pioneering store operations technology for over 30 years; delivering SaaS-based solutions which offer a simplified, smarter, more connected solution to retail store associates. They leveraged the technology of leading products FreshIQ®, ShopperKit, and Date Check Pro to synchronize one platform, providing retailers the visibility needed to increase sales, cut waste, and streamline labor efficiencies. Over 150 retail chain accounts trust Upshop’s software in more than 30,000 stores, nine countries and three continents. Sally Robinson serves as the vice president of strategic initiatives at Upshop, where she plays a pivotal role in driving the company’s strategic vision and initiatives. Robinson’s previous roles at Safeway and Albertsons involved leading remote teams and overseeing data governance initiatives across supply chain and procurement functions for nearly 20 years. She played a key role in implementing GDSN-based solutions for item data transfer and collaborated with third-party providers to align data and reporting standards. Throughout her career, Sally has demonstrated a strong commitment to driving results and delivering value to her organizations. She led cross-functional teams, developed systems for aligning data quality and analytics, and implemented programs to drive sales and compliance. Her efforts have resulted in significant cost savings, improved operational efficiency, and enhanced customer experiences. [Larissa] Hi, Sally. Thank you so much for joining us. [Sally] Hi, Larissa. Thanks for having me with you today. [Larissa] So as we near the FSMA regulation enforcement dates, we’re witnessing retailers set up taskforce teams to evaluate critical components that need massive rehaul in order to comply with the regulation. Which brings us to the question: Is complying with FSMA 204 really as daunting as it seems? What does it really entail? [Sally] That’s a great question. The Food Safety Modernization Act, which is known as FSMA, is a set of regulations that were implemented to combat against foodborne illness, really focusing on preventative measures throughout the supply chain, really with the end goal of helping to make sure our food supply is safe. For retailers, this has really brought new rules and regulations to the forefront. The Food Safety Modernization Act itself really focuses on, I would say, seven foundational rules that cross various areas, including produce safety, verification and certification programs, transportation requirements and preventative controls within food facilities. More recently, the FSMA 204 rule, which is also known as the FDA Food Traceability Rule, is the newest addition, and it requires companies that manufacture or process, pack or hold foods contained on the Food Traceability List, or commonly known as the FTL, to maintain records containing key data elements — which they call KDEs — associated to critical tracking events — which they call CTEs — with the key focal point being around lot level tracking. That’s really what we’re going after here, is the ability to track down to that lot level from a record keeping component, and supply chain understanding. So this FSMA 204 really impacts various areas of the supply chain. And for retailers, it will impact various cross-functional teams from supply chain distribution, including food safety, technology operations, just to name a few. So putting FSMA together, you’ve got to know where it’s coming from, how it’s being handled, stored, transformed, potentially, and transported. And it’s helping to ensure safety, ultimately for the customers. So FSMA 204, in the event of a foodborne illness event or recall, really drives the need to provide key data elements associated to the critical tracking events within the retailer processes within 24 to 48 hours. So if you step back and you can imagine how complex it would be to locate, as an example, specific lot codes around leafy greens or spinach across the various CTEs, spanning through varying retail locations or stores, distribution centers or centralized production environments, which is really what our retailer community has to deal with in terms of thinking through FSMA 204. When I think about it, high level, there’s really costs associated with storage and retention of data. There’s systems that need to talk and integrate with each other. All of this can really put an added strain on the retailer in terms of resources to advance food safety programs overall. So in a nutshell, those are the reasons why FSMA compliance for retailers is a large effort. It requires tight control and visibility across various areas of existing retailer processes — receiving, shipping and transformation. The actual compliance date is fast approaching. It’s January 20, 2026. But when you really think about that in terms of actual working days, it’s 398. So we really like to think and focus on, you know, the timeline for compliance. Retailers are actually at the back of that equation, so it really does put an added component of both time and resourcing against complying with FSMA 204. [Larissa] So can you talk to us a little about FTLs and what’s on those lists? How should retailers think about items on those lists? Given that those items are also subject to change, how should retailers evaluate software solution providers in lieu of future proofing for future regulation changes? [Sally] Yeah, that’s great. The FTL, or food traceability list as the FDA calls it, is really a key part of the FSMA 204 scope, designating the scope of the items and focusing on improving food traceability to quickly identify and address food safety issues. Items actually on that FTL are categorized by the FDA as high risk and are currently most prevalent in foodborne illness events. And that’s really where that list came from. So the FDA, put together that list based on, you know, those foods that have been historically most prevalent in foodborne illness events. The FDA did come forth and state that they would only adjust the FTL every five years, with two years to comply once new foods were approved. So really, just the mere fact of the timeline that they have put around adding or adjusting that list in itself really speaks to some of the complexity in terms of tracking at this level across the supply chain. From a retailer perspective, the FTL should really be reviewed for application within each individual retail retailer’s environment. I like to give the sushi example because fresh fin fish, as an example, is on the food traceability list and is considered a high-risk food to be tracked as part of FSMA 204. When you take the same fin fish and you add rice to create sushi, it’s still on that FTL. So it’s important to understand the foods on the FTL, and also any that are produced from foods on the FTL and as a result become included, even though that they might not be called out specifically on the list itself. So when I think about the FTL, I think about not only the item or foods that are directly identified, but also those that become part of the FTL just through either processing or further blending of ingredients that are included on the FTL. So decoding the FTL in itself is something that is really an exercise that you should do in conjunction with your suppliers in terms of which foods you will consider to be in scope for each retailer’s response to FSMA 204. I think also for retailers it’s crucial to think beyond just ticking the boxes for compliance. From a technology perspective, providers should offer comprehensive solutions that cover all components of the regulation, not just the immediate requirements. This means looking for providers that can adapt to future changes in the FTL, potentially key data elements and CTEs and advancement in technologies around data sharing and capture to ensure long-term compliance and efficiency. Really, the landscape around technology available in this space will continue to evolve and change as we need to have a greater level of capture of attributes that really matter when you’re exchanging data from different trading partners, supply chain partners or retailers within the space. Solutions that integrate seamlessly with existing systems and offer advanced analytics capabilities are also very valuable for FSMA 204. By choosing future-proof technology providers, retailers can stay ahead of regulatory changes and maintain a robust food safety system. And also leveraging additional benefits that technology advancements in the space will continue to offer, and will offer, as we move forward. So, those pieces are really important when you tie that back to the food traceability list. [Larissa] So could you elaborate a little more on some of the nuances of KDEs and CTEs when it comes to DSD receiving, shipping and transformation? What’s the overall impact to retailers and c-stores who run complex commissary operations? [Sally] Yeah, that’s an interesting question for FSMA 204. I think back to a slide that was presented by the FMI Tech Council, which put an estimate on the number of key data elements that need to be tracked across all of the CTEs. So this would be across the entire supply chain. It referenced a total of 117 key data elements that must be tracked for nine critical tracking events in the supply chain. This means when you look across the supply chain and through all the processes that impact high-risk foods — from the farm to harvesting, cooling, initial packing all the way to the retail or maybe in-store cafes in processing environments — the FDA’s estimated that the food industry as a whole will need to keep close to 3 billion records per year to support FSMA 204. That’s an extremely large number. It puts in context the need for technology solutions and automated compliance auditing to handle the magnitude of data that something like this and tracking at what level really is going to drive us towards. To speak specifically around commissary and centralized production. What this really means for commissary operations is that when retailers specifically use high-risk items like tomatoes ( I like to give that example) to prepare other products like fresh, ready-to-eat foods. So in the case of a tomato, if you put it in a sandwich or you add it to a salad, as an example, it makes the key data element web even more complex, because now each new product that you build using those high-risk foods must be linked to a new traceability lot code, and requires the tracking of new KDEs for that transformation, as well as the original use of the ingredients within the recipe. This means that retailers who use central kitchens or commissary today, or potentially one store producing from multiple stores, should be prepared to capture more data and should adopt systems that allow them to manage that data at scale within their operations. And it’s something that we really think about in terms of, you know, those particular use cases that speak directly to FSMA 204 and the requirements around central production. [Larissa] How should retailers check off basic compliance measures versus how they should futureproof themselves? Can you talk to us about why a one-size-fits-all approach does not work with FSMA 204, and why retailers need to go through a detailed assessment process and tailor the solution based on where they are already with respect to ensuring food safety? [Sally] Yeah, I think, overall, from our perspective, we’re working with retailers to understand and help them define and solve for their unique workflows. As we go through and map out key data elements and critical tracking events as it relates to the retailer, we understand that the difference in workflows could range all the way from having, you know, some having large commissary production to others having centralized kitchens with one store supplying other stores downstream or receiving potentially from local growers for local program focuses that exist within our retail customers. A retailer solution needs to consider, I would say, retailer workflows and and how it relates to them and take the complexity out of the processes. Data needs to be captured in as natural of a workflow as possible within solutions that already drive benefits. So as an example, for us, layering the FSMA process within our existing production planning module, recipe and DSD workflows, and not having store users do unnecessary data capture tasks in a standalone environment. This is really a critical step to go through a detailed assessment process around the retailers individual workflows. Layer the solution on top of it versus building in a vacuum. And really understand those workflows or use cases and what they specifically mean or how they live within each retailer’s environment to make sure that we’re solving for the right things in the right ways. [Larissa] FSMA 204 requires retailers to provide data and act within 24 hours when it comes to recall. Which brings us to talk about training needs. What type of training does the grocer need to provide the store associates with so they are well equipped to handle and respond to recall events? [Sally] That’s a great question. Overall, the top priority is having visibility across all of the critical tracking events that exist for a retailer. So examples would include distribution centers, maybe third-party retail locations, centralized production, as examples of where those critical tracking events might need to be considered. And when you think about the critical tracking events that sit within those windows, it’s really, it’s the shipments, it’s the receivings, it’s the production or transformation. So those those can be in different ways across different retailers and so it’s really important to understand those. Having detailed data visibility through the supply chain during a recall is crucial. So the FDA requires action within 24 to 48 hours of of their request. And so centralized reporting is key for communicating to store teams to expedite removal of potentially impacted items. Training as it relates to FSMA 204 compliance is a larger discussion. Ultimately, the FSMA 204 data being exchanged and stored should be automated, and not rely on the user to capture. It should be transparent unless it directly impacts a process or requires a specific retail capture. Many of these pieces of data are not human readable, and manual capture would be extremely challenging in our environments that we work in from a retailer perspective. So it’s important to understand and consider where the true training need is, and limit the amount of impact to retail associates to minimize the overall labor impact where possible. Training on systems that support actual recall processes is essential for both corporate and retail team members. If you incorporate training, including mock recalls, into the change management process around FSMA 204, it can help gauge and improve response times during recalls. And equipping associates with an easy-to-use application to promptly view recall requests and actions is one of the starting points to expedite removal of products from the retail locations. And this should also consider items that have been produced or transformed within the retailer. So overall, I think, you know, training, although it’s part of the conversation, we really need to also consider which parts can be done in a more automated and transparent capture, as opposed to relying on individuals to help comply with the law. And only do that in the cases where it’s absolutely necessary to help with our recall processes or making sure that we’re capturing those things that need to be captured behind the scenes. [Larissa] Well, this has been so very informative, Sally. Thank you so much for sharing all of your knowledge on FSMA. It sounds like a very complex topic, and, I’m sure this is going to be a great resource for all of our members. [Sally] Great. Thank you so much for your time, Larissa. I really appreciate it. [Outro] If you are interested in learning more about Upshop and FSMA 204 readiness, visit www.upshop.com/fsma204 Please stay tuned for more Shelf Confidence episodes coming this season. If you liked this episode, please subscribe and share. The Pennsylvania Food Merchants Association (PFMA) which advocates the views of the Commonwealth’s food and beverage industries, today issued a statement regarding the passage of Senate Bill 688, which amends the state Liquor Code to allow retailers such as grocery and convenience stores to sell ready-to-drink (RTD) beverages or canned cocktails.
"We are thrilled with the passage of Senate Bill 688, which marks a significant step forward for consumer convenience and choice,” said Alex Baloga, president and CEO of PFMA. “Allowing the sale of ready-to-drink beverages not only supports our local businesses but also caters to the evolving preferences of our community. This legislation is a win for both consumers and the economy, paving the way for a more dynamic and responsive marketplace." Under current law, these products are restricted to state-run liquor stores because the base alcohol is liquor. A 2021 Public Opinion Strategies study (PDF) on the issue of RTDs found that 86 percent of both consumers and non-consumers of RTD beverages believe they should be sold alongside other options like beer and wine. “On behalf of Pennsylvania’s grocers and convenience stores, we urge the Pennsylvania House of Representatives to take swift action on this important legislation,” Baloga said. |
CategoriesArchives
July 2024
|