Swiss FoodTech company Selecta used the presentation of its first half (H1) 2022 results Wednesday (Aug. 3) to announce its new ESG targets, built around the four pillars of protecting the environment, creating healthy and sustainable products, maintaining a sustainable supply chain, and being a responsible employer.
The announcement came as the European unattended self-service retailer reported net sales of €574.9 million, a 16.7% increase compared to H1 2021, and pretax earnings of €98.3 million, up 19.7% year-over-year (YoY).
Besides a strong first half in terms of revenue growth, the company stated that it is on course to achieve a carbon-neutral coffee supply chain by the end of 2025 and reach net zero carbon emissions by 2030. The group also said it intends to have 100% recyclable coffee packaging by that same year.
Related: ‘Eco-Friendly’ Claims Under Fire as UK Launches Probe of 3 Retailers
The company also has a detailed roadmap for the electrification of its logistics fleet and the implementation of the efficiency-boosting technologies that it groups under the terms “telemetry” and “telematics.”
See more: Necessity Is the Mother of Innovation in UK’s Vending Machine Sector
Telemetry refers to remote data collection and monitoring, while telematics refers to route optimization and intelligent fleet management. As Group CEO Christian Schmitz explained on the recent earnings call, “more telemetry means smarter driving and better routing.”
Moreover, as a business that operates 304,000 vending machines across Europe, the ability to monitor each one and restock them in the most optimized and efficient manner is essential to reducing the number of delivery trips needed and hence the company’s total carbon emissions.
Related: EU FreightTech Platforms Boost Supply Chain Efficiency
As well as deploying technology to reduce the number of journeys vehicles need to make, Selecta is also pursuing an “electric-first” policy with its vehicle fleet and has already gone fully electric in the cities of Oslo and Amsterdam.
Efficiency optimizing technologies have the twofold benefit for Selecta that they reduce carbon emissions and help to mitigate against inflation. As Schmitz told investors, so far this year, the company has experienced a 120% average increase in fuel costs and a 105% average increase in energy costs on a per unit basis.
As further protection from inflation, Schmitz pointed to a 15% increase in productivity brought about by the company’s commitment to telemetry, where the strategy is focused on dynamic logistics planning and warehouse optimization.
After the Vending Machine: NextGen Autonomous FoodTech
Other technological innovations that Selecta highlighted in its earnings presentation include those in FoodTech, where Selecta is driving the industry forward and delivering a range of self-service and autonomous food retail technologies.
Referencing the “Foodies Shop and Go” unattended store at the Belgium technology park, Corda Campus, Schmitz explained that customers can “tap with a phone or credit card, then simply go in, grab whatever [they] want and leave.”
The Foodies Shop and Go store is similar in concept to the autonomous grocery stores being pioneered by Amazon and Carrefour, among others.
As PYMNTS reported this week, smart grocery stores use a network of cameras and sensors paired with an artificial intelligence (AI) model that tracks what shoppers pick up and automatically charges them without the need to scan items in their baskets.
Read on: AI-Powered Autonomous Stores Usher in Next-Gen Retail for European Shoppers
A related unattended retail solution being pursued by Selecta is “Foodies On-The-Go,” which this year opened up its second facility in Manchester Airport. The Foodies “smart fridge” solution also uses intelligent vending to allow people to browse, check ingredients and put a product back, but only get charged for what they finally take.
Across the board, Selecta is focused on enhancing the basic vending machine concept to offer a more dynamic user experience and enhanced product range.
As Schmitz told investors, “we’ve got to go beyond the classic distribution of chocolate bars and coke.”
For all PYMNTS EMEA coverage, subscribe to the daily EMEA Newsletter.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More