AI Empowers Supermarkets to Slash Food Waste with Smart Expiration Management

In pursuit of sustainability and profit, supermarkets are deploying cutting-edge technology from Too Good To Go (TGTG), a company pioneering the reduction of food waste through artificial intelligence. As supermarkets face the dual challenge of addressing food waste and making use of near-expired goods, TGTG's solution offers an innovative approach to an age-old problem, turning potential waste into revenue while contributing to environmental conservation.

Grocery stores are sitting on a precarious balance between ensuring products are sold and not contributing to the significant food waste problem. Traditional methods of identifying and discounting perishable goods nearing expiration require extensive manual labor and are fraught with inefficiencies. TGTG is changing the game by providing an AI-driven method that reduces the need for such laborious checks, enabling staff to focus on just 1% to 7% of products.

The major advancement brought forth by TGTG's technology lies in its ability to analyze customer behavior, seasonality, and other vital factors. This information informs the timely suggestion of discount rates tailored to the likelihood of a product's sale before reaching its expiration date. For example, cheese might be discounted differently in different regions and seasons, creating a dynamic pricing strategy that reflects consumer demands and regional preferences.

The approach has more than just environmental benefits; it is also fiscally advantageous for groceries. Supermarkets are commonly known for their low-profit margins, and the European Retail Institute has found that the cost of wasted food can take up around 1.6% of net sales. With TGTG’s solution, supermarkets could see an improvement in their bottom line by efficiently selling more of their perishable goods.

Furthermore, the TGTG app, operational in the US, Canada, and various European countries, continues to help customers purchase "surprise bags" from participating outlets — a strategy that reduces food waste and offers consumers discounted products.

This initiative comes at a time when the global community is increasingly aware of the environmental impact of food waste. With 30% of food produced for consumption being wasted worldwide, leading to 8% to 10% of global greenhouse gas emissions, solutions like TGTG’s AI software are seen as a key component in tackling both financial and environmental sustainability.

Critically, while this tool can minimize food waste at the retail level, consumer education remains paramount to addressing the larger issue. Due to confusion over expiry labeling — "best-before" for quality versus "use-by" for safety — consumers often contribute to waste by unnecessarily disposing of food. Here, supermarkets and regulators play a crucial role in communicating effectively and perhaps rethinking how food quality and safety are presented.

As supermarkets like SPAR begin to integrate TGTG's technological solutions into their operations, the possibility of significantly cutting down on food waste looks promising. With technology, environmental impact considerations, and financial incentives aligning, the future of sustainable grocery shopping is becoming an achievable reality, thanks in part to the innovative strategies employed by TGTG.