The Supply Side: Crisp acquires Shelf Engine, plans to further reduce food waste

Retail data solutions provider Crisp has acquired Seattle-based Shelf Engine, an artificial intelligence (AI) provider for retailers and the fresh food supply chain. Terms of the deal were not disclosed.

Johnson-based Crisp uses AI to better access and exchange data between consumer packaged goods companies, retailers, and distributors. The goal is to give all parties more information so they can optimize sales and the supply chain infrastructure. Crisp works with more than 6,000 brands that represent $2.5 trillion in retail sales.

Dirk Herdes, a senior executive at Crisp, said Shelf Engine specializes in predicting accurate demand for perishable goods down to the item level to minimize spoilage and maximizing fill rates at stores. He said by integrating Shelf Engine data with Crisp, customers will have immediate access to real-time, actionable insights that enable them to make data-driven inventory decisions based on true demand.

“Joining forces with Crisp allows us to scale our proven technology and deliver greater value to retailers and their supplier partners,” said Stefan Kalb, CEO and co-founder of Shelf Engine. “Together, we will set a new standard in forecasting and inventory management, helping our customers thrive even in challenging market conditions.”

Herdes said Shelf Engine is a great fit because each company is focused on reducing food waste that costs grocery retailers an estimated $15 billion annually. The U.S. Department of Agriculture estimates about 31% of total food waste and spoilage occurs at retailers each year.

Herdes said Crisp has built the foundational technology platforms that, when married with Shelf Engine’s automatic reordering technology, allows suppliers and retailers to reduce perishable food waste.

Crisp CEO Are Trassdahl said retailers are going through a digital transformation and integrating Shelf Engine’s comprehensive demand data into Crisp’s platform will allow retailers to make real-time inventory decisions that directly impact their bottom line.

“In an era of tight margins and rising costs, precise data is the key to unlocking new revenue streams while reducing waste,” he added.

Shelf Engine reports its AI technology gave one regional grocery chain 31% gross margin expansion in its deli business. By applying technology to decrease store labor needed for ordering, workers had more time to serve customers and also reduced waste by 13.5%. Using the automated ordering systems, gross margins improved by 3.3% over eight weeks. After one year of using the Shelf Engine technology, the grocery chain increased deli sales by 5.6% and gross margins improved by 31%. The efficiency gains now allow the grocery chain to manage 34% more items in its deli operation, according to a case study provided on the company website.

Herdes said the Northwest Arkansas Crisp office has about 30 people, and Shelf Engine employees will remain in Seattle. He said the Northwest Arkansas office could be the home base for some Shelf Engine staff as the company grows.

Crisp raised $72 million in Series B equity late last year. Since inception the company has raised $97 million to further its collaborative commerce platforms and make acquisitions in the data sector.

Editor’s note: The Supply Side section of Talk Business & Politics focuses on the companies, organizations, issues and individuals engaged in providing products and services to retailers. The Supply Side is managed by Talk Business & Politics, and is sponsored by HRG.