Saturday, September 30, 2017

WHAT IT’S REALLY LIKE TO BE AN INSTACART SHOPPER

I was an Instacart shopper for a day, and found out it’s nothing like Supermarket Sweep.
One of my biggest childhood dreams was to be on Supermarket Sweep. I’ve always loved grocery shopping—usually with one of those tiny carts that you now see dogs “shopping” with on Instagram—and the idea of running around a store grabbing items without having to actually pay for them was exhilarating. It’s a more high-stakes drama than Scandal! But now that Supermarket Sweep doesn’t exist, I had to do the next best thing: be an Instacart shopper.
Instacart is one of the bigger online grocery stores that allows you to order from shops in your neighborhood (usually at the same prices, including Costco). You place an order online, then someone shops for those items and delivers it to you the same day—usually in two hours or less. I grocery shop online when I don’t feel like schlepping essentials home or I’m buying a lot of ingredients for a party. My current go-to in Queens is Peapod because it’s cheapest, but I’ve also dabbled in Amazon Prime Now (yes, the one that delivers wine in an hour or less), Instacart, FreshDirect, and even TaskRabbit. When I was freelancing between jobs a few years ago, I even put in an application to work at Instacart, but ended up bailing when I thought about walking up six flights of stairs to deliver someone’s groceries. If I won’t do it for myself, why sign up to do it for a stranger?
I reached out to Instacart to see if I could try my hand at being a shopper for a day. I went through a basic questionnaire with a company representative, was “hired” for a single shift, and got ready to race through the aisles of Fairway Market in Manhattan.
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Not pictured: me grabbing this produce, running to a scale, and back again.
Photo by Alex Lau

Living La Instacart Loca

There is an extensive application process and background check to be an Instacart shopper, like any other retail job, but I was able to bypass this process as a one-off employee. An Instacart shopper app serves as the grocery list, with a messaging component to update customers on any changes or cancellations (if you sub lemons in place of Meyer lemons, etc). I put on my bright green Instacart shirt and lanyard with my name scribbled in Sharpie. Once I had my Instacart-branded MasterCard—the only way to pay for other people’s groceries—I was ready to hit the floor.
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Using toilet paper as barbells from now on.
Photo by Alex Lau
My manager, a nice French man named Jean, walked me through my first shop, which was a mere 10 ingredients. Pfft, easy, I buy more than that on an impulse grocery trip after work. Well, I WAS WRONG. First off, I didn’t know the layout of this store. Other Instacart employees literally ran circles around me as I searched for a very specific brand of almond milk. “Just pick another unsweetened vanilla,” Jean suggested, but as someone who also has brand loyalty to Califia Farms, I opted to shoot a quick message to the customer to approve a plain vanilla of the same brand instead. She approved a few minutes later, and I was onto the next one.

The Struggles Are Reaaaaal

I made it sound like substitutions were super easy, right? Not quite. If you can’t find an item, you have two options: find a replacement, scan it, and wait for the customer to approve it. You can also message them to try to find out if they have a preferred replacement, but if they’re not on their phone at the exact moment, you’ll be stuck waiting around. And time is money! That first shop took me 20 minutes, which is about two minutes per item. (You also have to scan every. single. item. to make sure you got the right thing and it’s the correct price and quantity.) In the app, there’s a clock ticking with how long you’ve been shopping and an estimate of how long it should take you. I had 10 minutes to spare in that first round, which ain’t too shabby for a newbie.
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This feels like…about…ten pounds?
Photo by Alex Lau
The worst part of shopping is dealing with produce. When you select a quantity of a fruit or vegetable, like one watermelon, the app converts it to an approximate weight and charges you accordingly. Since a watermelon doesn’t have a sticker with its weight on it—a lady never tells!—I had to pick them up one at a time and try to figure out which one was 15 lbs. And then to check if I was correct, I had to run across the store to the only scale in the produce department, hoist it almost above my head because I’m 5’1″, and pray I was accurate. I wasn’t. So I had to override the weight in the app, which actually charged the customer less than they paid. It’s like a tax refund in the middle of summer. You’re welcome, Katie! (Not her real name—don’t worry, Instacart lawyers.)
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Me and my watermelon, Simba.
Photo by Alex Lau
That was one time. Imagine doing that for 15 items of produce. I did that, and discovered that ¼ lb. of mushrooms is four mushrooms. I asked the woman who I was shopping for if that amount was correct. She messaged me back, “Yes, I don’t really like mushrooms but it’s for a recipe I want to try.” The more you know! I sent another message to a customer to ask if she liked her bananas more yellow or green and her avocados more ripe or hard. She wanted more green bananas and less ripe avocados, clearly planning for a week of eating. Smart.

Learning (and Failing) on the Job

The first three orders were relatively easy. They were all 15 items or fewer, and one was only six boxes of coconut-almond milk and three bags of plastic cups. My party invitation must have gotten lost in the mail. Then I asked Jean for a real challenge, and he moved around some shopping assignments to get me the craziest one in the system: a 72-item list, most of it in the produce department. (This was the woman who doesn’t really like mushrooms, but happens to love bean sprouts. The bill clocked in around $170.) I found myself imagining what she was making for dinner, which sounds like what a suspect would say in an episode of Law & Order: SVU. But when I saw a few Thai curry pastes, sesame oil, soy sauce ,and rice noodles, it was easy to make assumptions. I’ll never get to eat dinner with these strangers, but part of the fun is writing fanfiction about where all these ingredients will end up.
Once I got a hang of where everything was in the store, it wasn’t too difficult a job—just tedious. And sometimes physically frustrating since I couldn’t reach a packet of seaweed snacks on the top shelf and had to use other items to try to push it to the edge and make it fall into my arms. The whole scanning-every-item was not only annoying, but it completely drained my phone battery. This particular Fairway is mostly underground, so I also had spotty service and faulty WiFi. This slowed down my response time to messages about substitutions. Still, that 72-item shop gave me two hours to complete, but I managed to get it done in a little over an hour. A full-time Instacart employee could do 16 shops in an 8-hour day if they wanted to—on average, I saw other shoppers doing a few per hour.
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The shopper behind me was much better at her job. I watched her do three shops in the time I did one!
Photo by Alex Lau
A veteran Instacarter named Mo noticed me struggling throughout my shift and offered a few tips: Don’t bag your produce until you’re at the register, weigh all your produce at the same time to avoid running back and forth, and multitask by parking your cart and grabbing a bunch of things at once. My biggest takeaway was to never bag produce. Ever. It’s a waste of plastic and time, even if four mushrooms rolling around the cart might drive me insane.
After shopping, I skipped the long lines and went straight to an Instacart-only check out. People gave me mean glares, but you gotta ignore the haters. The reason for the getting those weights for produce right on the mark is because the Instacart credit card is loaded with a very specific amount of money. If you go much over it, the transaction will be declined. The price of skipping the line is having to bag your own groceries, which you can do at the register or upstairs in the Instacart Lair. Once I got all the groceries upstairs, I printed labels for each bag and noted in the app exactly which shelf each bag was on so they could be picked up by a delivery guy (or gal).
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Grabbing labels to put on my bags in the Instagram Lair with my boss, Jean (right).
Photo by Alex Lau
Instacart gives you stats at the end of your shift, and all in all, my average was about 150 seconds per item. I blame that on things like waiting for a case of water jugs (something someone actually ordered, but being an Instacart shopper teaches you not to judge or question), there being about 40 flavors of energy bars to look through to find Health Warrior peanut butter-chocolate chia bars, and counting how many Brussels sprouts are in a pound. Perhaps I took too much time messaging back and forth with customers about their banana-ripeness preferences. I wonder if they knew that there were different people shopping and delivering their groceries (I didn’t, before I took this shift).
I wasn’t paid, but if I was an employee, contract shoppers get paid per order. According to Instacart, contractors’ wages includes a per-item commission and a per-order commission on each completed delivery, and rates vary depending on what city you’re in. Therefore, Mo, Fairway’s top shopper, would make more than a newbie like me. Other employees get paid hourly. There is a base rate (like minimum wage) for shoppers to start out, and then commissions are incentives to be faster and more accurate. If you’ve ordered on Instacart before, you may have noticed an optional 10 percent service fee. An Instacart representative explained that is not a tip given directly to a specific employee, but rather a way to help them guarantee high commissions to all shoppers. After a $12+ delivery fee, I’m guilty of not adding that surcharge to my own Instacart orders. This changed the way I’ll look at future grocery delivery orders—someone worked hard to make sure your kale isn’t wilted and your yogurt isn’t expired.
After almost four hours of shopping, you’d think I’d want to go home and order takeout immediately. Nope. I changed into regular clothes and zipped through the store to get my groceries for the week. I knew that avocados were on sale, where the best rotisserie chicken was, and that there was only one soy milk left in my favorite brand. Being an Instacart shopper wasn’t anything like being on Supermarket Sweep and my own groceries weren’t free, but I still skipped the long line. Perks of the job.

Publix is expanding its meal kit pilot program

By  –  Senior Reporter, Tampa Bay Business Journal
 Updated 
Publix Super Markets Inc. is expanding its meal kit pilot, offering the kits at another store in the Tampa Bay region.
Publix rolled out the meal kits at its store in the Southgate Shopping Center in Lakeland on Friday, about five miles from its corporate headquarters.
It is only the third Publix store to sell the kits; the other stores are in Tampa and Orlando, which debuted the kits earlier this year. The kits are offered in three levels of complexity: simplest, which requires heating the food; simpler, which could mean up to four steps; and simple, a meal that takes up to six steps.
Initial sales are promising, Publix spokesman Brian West said, but the program is still very much in a test phase. He declined to say how much the grocer has invested in the pilot program.
Meal kits are a hot category for grocers. A Barclays analyst wrote recently that Kroger Co., one of Publix’s biggest competitors, should consider buying a third-party meal kit. In the Amazon.com era, meal kits are a way for grocers to offer the convenience of click-and-deliver shopping in a brick-and-mortar format.
On the surface, Publix’s kits are a simple undertaking: pre-cut, measured ingredients packaged in kraft paper shopping bags that are assembled in-store. But the logistics behind the kits — recipe development, nutritional informational and store placement — make them more complex than meets the eye.
“This is a ton of work,” Tracy Horton, the meals technical manager at Publix, said. “The nutritional panel, the ingredient statement — all that has to come together before you can get it in the store.”
Finding a space for the kits’ kiosk is among the most challenging parts of the project, West said. Grocers squeeze profits out of every available square foot, so bringing in a new case means something else has to be removed. With stores that range from 25,000 to 60,000 square feet, in urban centers and suburban subdivisions, there’s no one-size-fits-all solution, either.
Horton and several other corporate employees were at the Southgate store Friday to oversee the kits’ debut in Lakeland. Store employees were sampling the chicken bruschetta tortellini kit for customers, with plans to offer samples from the pancetta orange shrimp kit later in the afternoon.
The selection of the most-complicated kits changes weekly; the simplest and simpler selection changes every two weeks. Asiago chicken pasta is the best-selling meal kit so far, Horton said.
“This [the kits] came from customer feedback, which was ‘I don’t want to buy a big jar of spice if I just need a teaspoon,’” Horton said. “So that was part of it, as was the whole competitive nature of the meal kits.”
Wendy Harrison, who owns Strand Salon in Lakeland, said she was excited to try the meal kits on Friday. She’s tried a kit from Blue Apron, but said she didn’t care for the delivery format.
She placed a kit for caramelized meatballs in her cart.
“It’s nice to see it and pick it up right away,” she said, “rather than plan ahead.”

Friday, September 29, 2017

Alibaba: Investing For Future Growth?

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20 comments
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 About: Alibaba Group Holding Limited (BABA)Includes: BIDUJD

Summary

Alibaba is aggressively experimenting with physical stores as part of its New Retail strategy.
Offline stores still account for close to 85% of the total retail sales in China.
Building a strong physical presence through malls, supermarkets and convenience stores will help Alibaba increase customer loyalty for its ecosystem.
With the current strategy, Alibaba can deliver high levels of growth for the next few years which should allow the bullish momentum to continue for its stock.
Alibaba (NYSE:BABA) is trying to replicate its online success in the offline retail channel. The company started using the phrase “new retail” in the last few months to signify a blending of online and offline retail through better logistics and data processing. It is now building its own physical mall in Hangzhou. This shopping center, called “More Mall,” is near Alibaba’s headquarters. It will have new retail technologies and experiences including virtual fitting rooms and makeup-testing mirrors.

Investment thesis

By moving into the physical retail space, Alibaba will significantly expand its total addressable market. It is important to note that Alibaba would still be following an asset-light approach in which it will leave the day-to-day management of stores to owners. Alibaba would instead focus on providing payment options, logistics support and big data analysis about customer buying preferences. It is estimated that total retail sales in China will be close to $7 trillion by 2020.
Alibaba’s rapid expansion in physical retail through a partnership with store owners should allow it to grow its GMV and revenue significantly. It also provides the company with a much longer runway for growth. Investors should not only focus on how long Alibaba can grow its online retail platform but also look at the growth potential of Alibaba’s services in physical retail stores. A back of the envelope calculation shows that if Alibaba's technology is used within 10% of physical retail sales by 2020 in China, it would add close to $600 billion in GMV. A similar commission to the online platform will provide additional revenue of close to $15 billion.
total retail sales chinaCurrently, only 15% of total retail sales in China take place on the online platforms. The remaining 85% is still done through traditional brick and mortar stores. Alibaba’s management has made it clear that instead of making only incremental growth in the online space, it would also like to be a part of the remaining 85% offline sales. The company is already expanding its Hema stores which allow customers to shop, dine and order groceries according to their convenience.
It has also entered into a strategic alliance with Bailian Group by acquiring 18% stake. This will allow access to 3,600 supermarkets and chain stores across the country. Through this alliance, Alibaba hopes to deliver big data analysis to retail stores.
The recent initiative to enter mall segment will allow the company to get hands-on experience into the evolving taste of customers. It will expand the addressable market for the company by attracting customers into its ecosystem who do not prefer online purchases. A strong physical retail presence is also necessary to build a good defense against other competitors.
Alibaba is in a race with rival Tencent to expand the presence of its payment platform. Alipay and Tencent’s WeChat Pay dominate the mobile payments market in China with over 90 percent market share. AliPay is one of the strongest and most promising segments of Alibaba’s businesses. Having physical stores where customers need to use Alipay instead of other options will improve long-term customer loyalty.
Core commerce still forms the backbone of Alibaba’s expanding business. The management needs to make sure that this segment has a long runway for growth and continues to deliver high revenue growth. For the current fiscal year, the management has forecasted revenue growth of 45% to 49%. A large part of this would come from its core commerce operations.
Eventually, Alibaba would like to leave the retailing business to retailers and concentrate on providing logistics, customer data, payment options, etc. This will allow the company to ramp up its presence among brick and mortar stores at a faster pace and would also be an asset-light approach. More Mall by Alibaba is slated to open in April 2018 and would provide an ideal prototype of how retailers can continue to attract customers in their physical stores.
In the last few months, Alibaba’s partners have started flexing their muscle. Alibaba manages its logistics through its affiliate Cainiao, which relies on a number of courier companies to deliver over 40 million parcels a day. One of the courier companies, SF Express - founded by China’s fourth richest man, Wang Wei – stopped providing Cainiao information about last mile delivery in May. Customer data is now one of the biggest assets for Alibaba and logistics companies.
Alibaba can use data about customer preferences to cross-sell a large variety of goods and services. If any courier company limits Alibaba’s access to customer data, it would have a huge negative impact on the company’s growth potential. A strong physical retail presence will prevent such a scenario as the retailers would need customer data from Alibaba to build their inventory and will, in turn, have to provide data about customer’s buying preferences.

Investor Takeaway

The only thing which can limit the bull run in Alibaba’s stock is investor concern about the company’s ability to grow at over 40% due to already high sales on its platform. As Alibaba moves into the physical space through its asset-light approach, it can get into partnership with retail chains to provide the payment gateway, logistic support, big data analysis and other technological support. This expands the addressable market for Alibaba significantly.

What Fuels Millennials' Love for H-E-B?

By Randy Hofbauer - 09/28/2017
Texas grocer H-E-B clearly is sacred to Millennial Texans, as the regional brand stuck out among the demographic's 10 favorite brands – two of them also food retailers – in a new Best Perceived Brands by Millennials list from market researcher YouGov BrandIndex. What made it shine so bright? Its designation as the only regional brand next to nine nationally available brands, yet its high placement on the list.
At No. 3 – tying with Walmart, at roughly 74 percent, and outranking Amazon.com by about five percentage points – the San Antonio-based grocer’s ranking came from “out of nowhere” and is “pretty fascinating,” London-based YouGov BrandIndex reported. It ranked based on word of mouth (which brands were discussed in the past two weeks in-person or online) and “buzz” (whether the word of mouth was positive or negative) from more than 300,000 U.S. Millennials.
“H-E-B is doing a good job generating positive word of mouth among Millennials who have heard something positive about the brand in its relatively small geographic footprint,” said YouGov BrandIndex CEO Ted Marzilli. “It is a top performer on a small stage.”
But what makes H-E-B so hot with Texas Millennials that it causes more positive buzz in that region than brands available across the nation? It could be because H-E-B started as an underdog – and Millennial Texans love a tale in which the little guy takes on a giant and wins.
“They appreciate that H-E-B is a proverbial David-versus-Goliath story,” said Burt P. Flickinger III, managing director of the New York-based Strategic Resource Group and a longtime observer of the grocery industry. “While H-E-B started as one store, most of the supermarket chains it started against have since filed for bankruptcy or liquidation, including Minyards, Carnival and Handy Andy.”
This year alone, H-E-B Chairman and CEO Charles Butt has donated $150 million for training public educators

TRUE TO ITS ROOTS

Besides an underdog story, H-E-B has a number of reasons for its popularity among Millennial Texans, all dating back to the upbringing of the chain’s own chairman and CEO, Charles Butt, grandson of founder Florence Butt.
“Charles Butt and his mom, family and the company – professionally and personally – have donated more philanthropically than the Walton family of Walmart, than Bezos at Amazon, than Schultz at Starbucks and Zuckerberg at Facebook,” Flickinger said. “And in Texas and northeastern Mexico, where H-E-B operates, nothing is more important than philanthropy and spirituality on a nondenominational basis.”
Millennials in Texas grew up with H-E-B supporting their education and activity groups, from school libraries and reading programs to Brownies and Boy Scouts programs. This year alone, the grocer has donated $100 million to create a center for training and developing school district leaders in Texas, and pledged another $50 million over the next decade to help train teachers at Texas public schools. Millennials remember such support, as well as the contributions the grocer has made over the years to help support their schools’ athletic programs.
Prices also factor into Millennials’ high regard for H-E-B. Flickinger points to Whole Foods Market – whose Austin headquarters is a mere hour-and-a-half drive from H-E-B’s, and which shares Texas roots – and its omission from the list as demonstrating H-E-B’s popularity among Millennial Texans.
“Whole Foods has some of the highest sales per square foot of all 14 sectors of retail, has very high volume, very successful stores,” he said. “But Whole Foods also has the highest cost of goods of any retailer we’ve ever studied.”
Given that so many Millennials are students or young adults still recovering from the economic crisis that began in 2008, a large number can't pay the high prices that Whole Foods charges. Meanwhile, Charles Butt, who grew up with a single mother following his father’s death at an early age, worked hard to drive down prices, as he understood the value of every penny saved.
“With that, his lifelong mission was to make people’s lives better, and H-E-B’s current slogan – 'No store does more' – really epitomizes the success of Charles’ mission,” Flickinger points out.
For instance, at a time when Procter & Gamble (P&G) had 90 percent of the baby diaper market and was charging too much for diapers, H-E-B discontinued the entire P&G diaper portfolio and expanded its private label diapers while also negotiating a much lower price with Kimberly-Clark. This helped Texans save money at a time when their state was the fastest-growing in the United States in terms of the birth rate. Millennials remember such stories, Flickinger asserted.
“H-E-B constantly reinvested in price, they constantly invested to have better sourcing, better warehousing, better transportation, better IT, better software, more efficient stores, better cost of goods and lower prices than Walmart,” he said.
H-E-B served 8,000 meals to affected residents of Victoria, Texas, via its Mobile Kitchen

STRENGTH FOR THE WEAK

But possibly most noteworthy among the reasons that Millennials think so highly of H-E-B is the fact that when disaster strikes, they know that the grocer is there for them. From the massive hurricanes of the ‘90s up to Hurricane Harvey, which occurred just a month ago, H-E-B is the best multiformat retailer in the United States or Canada when it comes to “flexing its stores before and immediately after” a catastrophe occurs.
“Before Doug McMillon came to Walmart, the retailer spent 25 hours after such hurricanes as Katrina cutting labor and laying people off,” Flickinger said, adding that H-E-B, on the other hand, kept full- and part-time workers employed and continued philanthropy even if stores were destroyed.
Millennials knew that when Harvey was coming, for instance, an H-E-B store that gets one truck on a typical day will get five to 10 trucks per day in the time leading up to a hurricane, Flickinger said. Also, it will have full pallet positions throughout and flex inventory, so that a store in a given week can have 300 percent to 500 percent more goods. Further, the grocer immediately deployed its mobile kitchen to suffering towns and shipped truckloads of ice and bottled water following Harvey’s devastation.
“Millennials know that if they’re going to protect their families and loved ones, they can know that at H-E-B – whether it's grocery, pharmacy, convenience or gas – everything will be there all the time,” Flickinger said. “The worse the emergency, the better H-E-B is. It’s the best responder anywhere in North America.”

Publix Restarts Curbside Pickup Test

09/28/2017
Publix Super Markets has unveiled plans to test curbside grocery pickup at two store locations in Florida – one in Wesley Chapel and another in Valrico – with further tests of the program slated for Atlanta-area stores by the end of the year. The grocer originally began testing Curbside in 2010 but ended up shuttering it in 2012.
To use the service, customers place their orders at publix.com/curbside and choose curbside pickup or delivery at checkout. Curbside orders are then shopped and carried to customers’ vehicles by Publix associates.
Progressive Grocer's sister brand Retail Leader visited the Wesley Chapel location, which had three parking spaces near the store's entrance dedicated for pick-up customers, with signs numbered 1, 2 and 3. Each sign has a phone number shoppers call to alert employees about their arrival, at which point the previously pulled order is gathered and brought to the car by a Publix team member. Signs inside and outside the store alert shoppers about the service, as do flyers handed out with receipts.
“We’ve had great success with Publix Delivery powered by Instacart, and the demand for online grocery services has continued to grow. So we’re excited to test Publix Curbside and learn more about how to best meet the evolving needs of our customers,” said Maria Brous, Publix director of media and community relations.
The grocer has been aggressively rolling out grocery delivery since July 2016. By the end of this year, Publix Delivery will be available from more than 90 percent of its stores, and it remains committed to making the service available company-wide.
The previous Curbside test, which took place in Florida and Atlanta, and delivered online grocery orders to shoppers' cars for a flat $7.99 fee, might not have been timed correctly, given that far fewer grocers had similar programs of their own in place at that time. With retailers, including giants such as Walmart and Kroger, jumping on board with click-and-collect, Publix may see the time as finally right for boosting operations in this space.
Based in Lakeland, Fla., Publix operates 1,155 stores in Florida, Georgia, Alabama, Tennessee, South Carolina, North Carolina and Virginia.

Ireland Tops U.S. as the Country
Best Able to Feed Its People

By Alan BjergaCindy Hoffman and Cedric Sam
The U.S. for the first time dropped from the top spot in a global ranking of how well countries can feed their own people, as concerns about agricultural research spending and government policy trends may make the world’s top food exporter a less-certain place to get a meal.
Ireland is the world’s most “food-secure” nation, improving its food affordability, availability, quality and safety while the U.S. has stagnated, according to a copy of the sixth annual Global Food Security Index compiled by the Economist Intelligence Unit scheduled for release Tuesday.
Worldwide, food security fell for the first time in five years, largely because of increases in the number of refugees, weather disasters and a decline in global political stability. The examination, commissioned by Dupont Co., this year added metrics based on climate and natural-resource risks. Adjusting for those factors, the U.S. fell to fourth place, with Austria and France moving ahead.

Top 20 Countries Before and After New Metrics

U.S., already down a notch, falls to fourth when climate's factored in
Overall ranking
Adjusted
Ireland
United States
United Kingdom
Singapore
Australia
Netherlands
Germany
France
Canada
Sweden
Austria
Switzerland
Norway
New Zealand
Finland
Denmark
Belgium
Japan
Israel
Portugal

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

28
Ireland
Austria
France
United States
Germany
Switzerland
United Kingdom
Canada
Denmark
Sweden
Netherlands
New Zealand
Finland
Australia
Norway
Belgium
Japan
Portugal
Singapore
Spain (rose from 21)

Israel (fell to 28)
“Food security is in reverse,” said Robert Powell, a senior consultant with the Economist Intelligence Unit in New York. “If we’re aiming for zero hunger, we’re going in the wrong direction.”
The number of people suffering from hunger rose by about 38 million to 815 million in 2016, the United Nations said last month. Climate change is seen as a driver of increasing weather volatility which is contributing to famines in developing nations. This year, adverse weather combined with conflict was tied to famine and severe food shortages in South Sudan, Nigeria, Somalia and Yemen.
Richer nations have fewer problems providing inexpensive, plentiful and safe food to their citizens. Still, risks remain, and some are increasing, according to the study.

Four Categories Make Up the Score

Natural resources and resilience were added this year
Quality
And Safety
Diet diversification
Nutritional standards
Micronutrient availability
Protein quality
Food safety
Affordability
Food consumption as share of household expenditure
Proportion of population under global poverty line
Gross domestic product per capita
Agricultural import tariffs
Presence of food safety net programs
Access to financing for farmers
Availability
Sufficiency of supply
Public expenditure on agricultural R&D
Agricultural infrastructure
Volatility of agricultural production
Political stability risk
Corruption
Urban absorption capacity
Food loss
Added in 2017:
Natural Resources And Resilience
Exposure
Water
Land
Oceans
Sensitivity
Adaptive capacity
Demographic stresses
Wealthier countries including the U.S. and Canada have highly productive food systems, but use more water than they need to, leaving them more vulnerable to increasingly severe droughts expected because of climate change. European nations, meanwhile, may see strains caused by an aging population that pays less in taxes and demands more social services.
Countries in sub-Saharan Africa clustered near the bottom of the rankings yet have opportunities to develop more sustainable food systems as late adapters to technology, the report said.
Meanwhile, some developed nations rose or fell dramatically in the rankings because of local circumstances. Austria has a relatively stable climate and very low soil erosion, aiding food production, sending its rating upward. Singapore, meanwhile, fell more than any other nation, given the threat it faces from rising sea levels, exposure to extreme weather and reliance on food imports.

Climate and Resources: Nobody's Perfect

Singapore threat severe while every country faces challenges
Adjusted Food Security Score
Overall Food Security Score
70
80
90
Ireland
United States
United Kingdom
Singapore
Australia
Netherlands
Germany
France
Canada
Sweden
Austria
Switzerland
Norway
New Zealand
Finland
Denmark
Belgium
Japan
Israel
Portugal
The study places a high value on government support for agricultural research, which is important to keeping nutrition inexpensive and available as food needs increase, Powell said. This is where Ireland, a country where an 1840s famine led a half-million residents to migrate to America, has excelled while the U.S. has faltered, according to the report.
Ireland has outspent the U.S. in relative terms on public research and development on agriculture over the past five years, increasing farming’s share of gross domestic product even as its economy has grown, according to data from the Organization for Economic Cooperation & Development.

Climate and Resources Greatly Affect Stability

Low resources and resilience scores lowered every nation’s overall rating, adjusting scores downward
Ireland
United States
Austria
Singapore
90
90
90
90
80
80
80
80
70
70
70
70
60
60
60
60
50
50
50
50
Ireland has outspent the U.S. in public agricultural R&D, increasing farming’s share of GDP.
Austria did relatively better than other countries on climate. That pushed the country's ranking higher.
Rising sea levels and exposure to extreme weather caused Singapore to fall in the rankings more than any other nation.
The U.S. has highly productive food systems but uses more water than it needs and is vulnerable to drought.
U.S. funding as a share of GDP has declined over that same period. That, combined with concerns about U.S. governance—“the United States’ hostile policy towards immigration and trade has dampened the foreign policy outlook” the report said—allowed Ireland to take the top spot.
“Ireland has roared back marvelously from the banking crisis, and their agriculture research and development has increased,” Powell said. In the U.S., “we haven’t seen that level of public-sector investment.”
The study, first published in 2012, is used to guide corporate decisions on allocating resources, said Krysta Harden, a former U.S. Agriculture Department deputy secretary who’s now the chief sustainability officer and vice president for public policy for the agriculture division of DowDuPont Inc.
Its publication is meant to aid governments, nongovernmental organizations and businesses in understanding where food struggles are greatest and where more work needs to be done even in relatively more secure nations, she said.
“Hopefully it’s a wake-up call,” she said. “Agriculture is an ongoing investment that cannot end and cannot be diminished.”

The Global Index

Sort by Overall Score, Resources and Resilience, and Adjusted Score
Country
Overall Food Security Score
Natural Resources and Resilience
Adjusted Overall Food Security
Adjustment
Ireland
85.6
73.4
79.9
−5.7
Austria
81.6
80.3
77.6
−4.0
France
82.3
76.5
77.5
−4.8
United States
84.6
65.8
77.4
−7.2
Germany
82.5
74.9
77.3
−5.2
Switzerland
81.6
79.0
77.3
−4.3
United Kingdom
84.2
67.0
77.3
−6.9
Canada
82.2
74.0
76.9
−5.3
Denmark
80.3
82.1
76.7
−3.6
Sweden
81.7
74.8
76.6
−5.1
Netherlands
82.8
68.6
76.3
−6.5
New Zealand
81.0
72.3
75.4
−5.6
Finland
81.0
71.5
75.2
−5.8
Australia
83.3
60.1
75.0
−8.3
Norway
81.4
66.6
74.6
−6.8
Belgium
79.8
69.5
73.7
−6.1
Japan
79.5
70.4
73.6
−5.9
Portugal
79.0
71.6
73.4
−5.6
Singapore
84.0
49.2
73.3
−10.7
Spain
78.1
72.5
72.7
−5.4
Czech Republic
75.8
80.3
72.1
−3.7
Italy
75.9
72.9
70.8
−5.1
Poland
74.1
78.8
70.2
−3.9
Israel
79.2
51.3
69.6
−9.6
Hungary
72.2
79.0
68.4
−3.8
Chile
74.7
62.6
67.7
−7.0
Greece
71.9
74.4
67.3
−4.6
Slovakia
70.0
81.1
66.7
−3.3
South Korea
74.7
53.9
66.1
−8.6
Kuwait
74.6
51.1
65.5
−9.1
Uruguay
69.7
75.9
65.5
−4.2
Oman
73.9
49.2
64.5
−9.4
Qatar
73.3
49.9
64.1
−9.2
Romania
67.7
75.2
63.5
−4.2
Costa Rica
69.3
58.5
62.1
−7.2
Saudi Arabia
71.0
46.3
61.5
−9.5
Russia
66.2
71.0
61.4
−4.8
Argentina
67.3
64.2
61.3
−6.0
Brazil
67.7
60.6
61.0
−6.7
Bahrain
68.6
53.0
60.5
−8.1
United Arab Emirates
70.9
40.0
60.3
−10.6
Bulgaria
62.9
75.1
59.0
−3.9
Malaysia
66.2
52.1
58.3
−7.9
Mexico
65.8
54.4
58.3
−7.5
China
63.7
60.1
57.3
−6.4
South Africa
64.0
57.7
57.2
−6.8
Belarus
63.0
62.6
57.1
−5.9
Turkey
61.1
67.0
56.1
−5.0
Serbia
60.6
69.0
55.9
−4.7
Panama
62.5
54.1
55.3
−7.2
Botswana
59.4
62.6
53.8
−5.6
Colombia
60.1
53.8
53.2
−6.9
Thailand
58.3
64.3
53.1
−5.2
Jordan
58.3
62.8
52.9
−5.4
Tunisia
58.8
56.6
52.4
−6.4
Azerbaijan
57.8
59.8
52.0
−5.8
Paraguay
56.5
66.7
51.8
−4.7
Kazakhstan
56.0
67.7
51.5
−4.5
Peru
59.2
45.4
51.1
−8.1
Egypt
56.6
57.0
50.5
−6.1
Ecuador
55.2
52.4
48.6
−6.6
Dominican Republic
54.8
53.6
48.4
−6.4
Ukraine
54.1
58.2
48.4
−5.7
Vietnam
54.0
58.1
48.3
−5.7
El Salvador
53.1
58.4
47.6
−5.5
Sri Lanka
53.0
58.4
47.5
−5.5
Morocco
52.8
55.1
46.9
−5.9
Bolivia
51.3
62.1
46.4
−4.9
Algeria
51.5
53.5
45.5
−6.0
Venezuela
50.2
60.6
45.3
−4.9
Nicaragua
50.0
61.8
45.2
−4.8
Guatemala
49.6
61.8
44.9
−4.7
Indonesia
51.3
46.5
44.4
−6.9
Honduras
48.6
62.7
44.1
−4.5
Pakistan
47.8
62.5
43.3
−4.5
India
48.9
53.7
43.2
−5.7
Ghana
47.9
57.4
42.8
−5.1
Uzbekistan
47.5
54.7
42.1
−5.4
Philippines
47.3
52.0
41.6
−5.7
Myanmar
44.8
69.5
41.4
−3.4
Uganda
43.3
71.3
40.2
−3.1
Senegal
44.2
61.8
40.0
−4.2
Nepal
44.5
58.5
39.9
−4.6
Cambodia
43.3
63.1
39.3
−4.0
Cote d’Ivoire
42.5
69.9
39.3
−3.2
Kenya
42.2
63.7
38.4
−3.8
Cameroon
41.6
57.3
37.2
−4.4
Rwanda
39.8
68.4
36.7
−3.1
Mali
39.4
63.8
35.8
−3.6
Bangladesh
39.7
56.2
35.4
−4.3
Benin
39.6
56.5
35.3
−4.3
Nigeria
38.4
60.7
34.6
−3.8
Togo
37.2
60.5
33.5
−3.7
Tanzania
35.4
67.5
32.5
−2.9
Tajikistan
35.9
53.7
31.7
−4.2
Sudan
34.8
57.0
31.1
−3.7
Burkina Faso
33.1
69.5
30.6
−2.5
Laos
33.1
68.7
30.5
−2.6
Guinea
34.0
56.0
30.3
−3.7
Ethiopia
33.3
61.1
30.1
−3.2
Mozambique
33.7
54.3
29.8
−3.9
Zambia
32.4
67.3
29.8
−2.6
Angola
33.2
56.8
29.6
−3.6
Syria
33.3
50.7
29.2
−4.1
Malawi
31.3
70.1
29.0
−2.3
Niger
29.5
67.0
27.1
−2.4
Haiti
29.1
60.4
26.2
−2.9
Sierra Leone
28.7
57.5
25.7
−3.0
Chad
28.3
59.0
25.4
−2.9
Yemen
28.8
47.5
25.0
−3.8
Madagascar
27.2
66.2
24.9
−2.3
Burundi
25.1
68.8
23.1
−2.0
Congo (Dem. Rep.)
25.5
46.3
22.1
−3.4