Great article! I was wondering if a logistics player can extend the blockchain. They are a super critical player in the entire piece of the puzzle but will a manufacturer move to blockchain because UPS is? I am inclined to think that maybe not. On the other hand, if a manufacturer wants their logistics partner to have blockchain (which I feel can happen), then UPS will be a preferred partner because they are ahead of the curve. I feel its a great strategy and a recognition of how UPS is changing with the times. Waiting to see how things pan out!
I have a couple of questions though:
For the online customer, if you go direct to consumer rather than go through an online retailer, you would be able to get data on when typically a particular consumer runs out of product right? Could they start a subscription service to get consumer data?
The other is that do you think it will be okay with consumers that their say Alexa is capturing data and transferring it to companies? It is a very interesting idea, but I am not sure how much consumers will adopt it.
To find where exactly in the supply chain that an error occurred, I believe blockchain will solve the problem very soon. It is interesting how some food companies are trying to implement blockchain exactly for this reason.
I strongly believe that in order to make any progress on sustainability, it is critical that the actions that a brand takes also helps it to do business. You are absolutely right in the assessment that if they take a big leap and if the competition does not move with them, then they can get “priced out” fairly quickly – given the dairy industry is crowded and people are not too brand loyal. Working with the regulators is a good idea. Another thing that I was thinking was to use this as a marketing story as well. While some people might feel that it is taking advantage of a sincere issue, but it is only when the company starts seeing the benefit of their sustainability actions does it become the norm for the company. This move can also force competitors to take steps in the right direction which will be better for Danone and the world.
The question that I had as I was reading this was, that isn’t this true for all wine-growing areas? Considering that the weather conditions required for a good crop of wine are exceptionally specific, I thought even France would be facing similar issues. I was surprised when I came across this article: https://www.npr.org/sections/thesalt/2016/03/21/470872883/an-upside-to-climate-change-better-french-wine. This says that global warming is actually helping French wine. But, for how long? And once that happens, would wineries move from France?
I believe diversifying areas to grow wine grapes is a good idea for Sula. I am not sure if I would advise them to diversify its business itself. I do think that if they find the right areas to grow wines, it can be a promising business for India.
Very informative! Thank you for the article.
Oxford is one of the oldest universities in the world and they have existed through multiple generations and long before the concept of EU existed. I do think that this is nothing but a blip in its illustrious history of Oxford. The funding will come from institutions, alumni and/or companies, in my opinion.
I think isolationism comes from socio-economic divide in the society. While academia and professionals might advocate globalization, people without jobs and those who feel that they were marginalized because of people in other countries will definitely vote for isolationism. It becomes especially easy when “leaders” give somebody or something to blame for their circumstance (however, true or not it might be).
Wow, that is a lot of consumption of avocado in a year by an average person in the US! Great article!
To your question, I think there is merit in starting to think about China to hedge your bets. There will come a time when the demand for avocado will start to go down as price increases. If and when that happens, I am quite sure, that the US will find methods to artificially create conditions to produce avocado in a price efficient manner if that is possible.
Supplying to countries like China can be hard though. The supply chain issues that come with the distance and market dynamics can be challenging. How would Europe be for a market to target as those developed economies also turn to healthier foods? Would be easier to supply to them as well.
I think a company like ABinBev has the resources to invest in a solution for the long term. Something like working on the seed can be a solution, that can impact water consumption for barley production not just in ABinBev but potentially across the industry. The flip side to this though is that with so much consumer focus on things like non-GMO and “natural”, will such a move potentially go against the brand? I am not sure if ABinBev will do something for water conservation (the greater good) even though it might go against their brand.
I personally don’t foresee beer consumption going down because it uses water. A lot of agricultural products, including rice, use a lot of water. Does that mean that people will start migrating to other food grains as well? Might be possible as the shortage of potable water becomes acuter. However, I do believe that techniques to re-use and/or purify the water used in the process would be the key to sustainability.