Hacking the supply chain: Pete Russell at TEDxAuckland

Summary

In 2008, the speaker, a successful entrepreneur in the food industry, attended the World Food Forum in Rome and realized the detrimental impact of large-scale food production on small farms and communities. This epiphany, coupled with the 2008 financial crisis, led to the creation of EB, an online platform that connects local food producers with consumers, cutting supply chain costs and making local food competitive with industrial alternatives. The model has proven successful in Auckland, with plans to expand globally, promoting a local food renaissance and the collective ownership of food commons.

Takeaways

• 🏡 The speaker lived in a multi-million dollar home on Waiheke Island in 2008, reflecting their entrepreneurial success.
• 🌐 They were involved in importing frozen pastries from a European multinational and selling them in Australian supermarkets.
• 📈 Their business achieved significant milestones, including ten million dollars in sales and their first million-dollar month.
• 🌾 Attending the World Food Forum in Rome made the speaker realize the negative impact of large-scale industrial food on small-scale farms and communities.
• 🔍 The 2008 global financial crisis led to a significant loss for their business due to currency fluctuations.
• 💡 The crisis prompted the idea of using technology to support local food systems, which could be more resilient and sustainable.
• 🛒 They founded EB, a business model akin to an online farmers market, to make local food as convenient and affordable as industrial food.
• 📊 The EB model streamlines the supply chain, allowing growers to receive half of the retail value, which is a significant improvement over traditional models.
• 🌱 EB has been successful, delivering over 25,000 boxes and proving that local food can be competitive with supermarket prices when delivered.
• 🌍 The business is expanding, with the first box delivered in Sydney and plans to explore new cities globally.
• 🌿 The speaker envisions a global food Renaissance, emphasizing the importance of local food systems for personal, familial, and global well-being.

Q & A

What was the speaker's initial business model before attending the World Food Forum?

The speaker's initial business model involved importing frozen pastries from a European multinational and selling them through supermarkets around Australia.

How did the World Food Forum change the speaker's perspective on their business?

Attending the World Food Forum made the speaker realize that large-scale industrial food was forcing small-scale family farms and artisan food producers out of the market, and they were part of the problem.

What major event occurred that forced the speaker to reconsider their business strategy?

The 2008 global financial crisis hit, causing the Australian dollar to plummet against the euro, which led to their business going from making profits to losses overnight.

What was the speaker's idea to address the issues faced by local food producers?

The speaker's idea was to use the technology and systems designed for complex long-distance supply chains and pair them with the short-distance advantage of local food to make local food viable again.

What is the name of the new business model the speaker started to support local food?

The new business model the speaker started is called EB, which is designed to revive local food.

How does the EB business model work?

EB operates like an online farmers market, allowing customers to buy from various local vendors, growers, and producers, and have them all delivered in a single box to their doorstep.

What is the hypothesis behind the EB business model?

The hypothesis is that by pairing high-tech supply chain solutions with the short-distance advantage of local food, they could make local food as affordable and convenient as industrial food.

How does the EB model's supply chain differ from traditional supply chains?

The EB model's supply chain is a same-day, direct link from the grower to the customer, which reduces costs and allows the grower to receive a larger share of the retail value.

What has been the outcome of the EB model in terms of pricing and delivery?

The EB model has been able to deliver products at prices on par with supermarket retail prices, and with the added benefit of delivery to the customer's doorstep.

How has the EB model impacted local growers and the community?

The EB model has allowed local growers to earn more and has provided a viable business model that supports the local food community, reducing waste and improving the livelihood of small-scale producers.

What is the future vision for the EB model and the global food Renaissance?

The future vision is to connect with local food leaders around the world to create a comprehensive grocery solution that makes local food the obvious choice for everyone, contributing to a global local food Renaissance.