Why waste. Startup that reduces flap food waste by 75% enters Portugal
It is estimated that millions of tons of food are affected every year in the inflation phase due to the rudimentary methods of monitoring product validity – and the consequences are vast, ranging from huge economic losses to incalculable damage to the planet. But, for the common good, times are changing and there are those who have already removed the old notebook to make way for Artificial Intelligence (AI) and the big data, in order to reduce food waste in supermarkets by up to 75%. We are talking about the Brazilian WhyWaste, a startup that won the technological solutions category of the Banco Montepio Acredita Portugal Program which, in 2022, avoided the waste of more than two tons of food and which is now preparing to help Portuguese supermarkets to be more and to eliminate losses with expired items.
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Present in 19 countries, in large flap companies such as the German Makro, the Spanish Dia and the British Co-Op, the startup offers a digital solution that follows the lifespan of the products, through the combination of a database, in the which are entered as expiration date for all foods and an AI system, which identify when a product is on a critical date, taking into account indicators such as demand and seasonality. “The objective is to evaluate these variables and adjust the price, solving two challenges: convincing the customer that that is a good price, without destroying the margin or the retailer’s image”, explains Ricardo Salazar, country general manager of WhyWaste, in an interview with Dinheiro Vivo.
Despite being “continuous work” and having a “great learning curve”, the results are almost immediate, guaranteed. “With the right information, understand which products generate the most benefits and, for example, adjust production recipes.” The integration of the startup’s technology in supermarket chains initially goes through a test period of two to three months, so that it is possible to apply some measures and understand consumer behavior. After this phase, administrators do an impact assessment and decide whether or not it makes sense to continue with the WhyWaste service. The guarantee left by the manager is a reduction of 40% to 60% of the loss of product due to expiration and 90% of the time of employees dedicated to this function. 🇧🇷
“In Portugal, most of the food regulation networks use static digital systems, that is, programs that monitor the quantity of product, but that do not learn or adjust their behavior and the reduction prices using data”, says the person responsible for the business, noting that this tool also responds to the fact that companies are increasingly turning to ESG (environment, social and corporate governance) policies, as it “has a positive impact on the environment, reduces waste and generates more revenue with less product”.
Currently in conversations with national chains, WhyWaste considers that the interference program of Unlimit (formerly Associação Acredita Portugal), as well as all the interaction with the Portuguese entrepreneurial system, will contribute to a faster expansion in the country, this being one of the great goals for 2023.
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For Portuguese lands, the company also intends to hire a “solid structure” and open an office in Lisbon to support the future team and customers. The plans dictate that the base in the capital will serve as a starting point for the Portuguese Speaking African Countries (PALOP). Altogether, there are 40 professionals, spread over offices in four countries, who started with the daily growth of the startup.