Brian Bauer 03:00
Well, maybe I'll go back in history a little bit to provide a little context in our grammar because that will put a better context on what we're doing now. So basically, grandma came into existence in 2013. And it came into existence because the founder, Jose Manuel Mohler, he was studying economics in Business Administration. And he was living in a comfortable upper class woman, she lived with his parents, but he wanted to move out and live with some friends. So to do that, they had to move out their students, they didn't have a lot of income. They ended up living in a really marginalized community, which is a pretty typical community in much of Chile. And he was in charge he was he was in charge of buying the the staples, and for cooking and basic things for the house. And he quickly realized while he was studying economics and business, that there was kind of a market failure at play that was forcing him and all of his neighbors around him with limited and volatile incomes, to pay about 30 to 40% more for life's essentials, because they're buying in smaller format packaging. And he created a grammar to solve that problem. So Pain Pain more when you're buying smaller format packaging he termed the poverty tax. So the poverty tax occurs when you have limited volca incomes, you pay substantially more 3030 to 40% more on a per unit basis for your product. And you also you're buying in smaller format packaging, which is more likely to escape into the environment. So grandma came into existence to solve that problem. That kind of double problem the social problem of eroding disposable incomes of low income families in complex environmental problem of plastic leak into the environment. So that was the roots of L grandma. And we started doing that with reusable packaging. I've been with grandma for four years to a little context of my involvement with Graham. I've been here for years, I lead circular economy and alliances. And we started doing that with reusable packaging initially in 2015. The reuse rates on our packaging weren't that great they were around 10% and over the past over the past couple years, we've been able to get rates up over 80%. And that created a really interesting opportunity for us it caught the attention of Unilever civi we were at that point in time, up until then we were we basically saw them as a direct competitor, we're selling laundry detergent, they're selling laundry detergent, obviously, their orders of magnitude are more bigger than we are. And we saw them as a competition. But then we realized there was an opportunity to basically work with them and help them sell their detergent so that they could sell their detergent more sustainably without packaging waste. So that conversation started in 2013. It led to a pilot project starting in mid 2019. And then that pilot project was scaled up at the start of this year in 2020. And so what I'll grandma's doing now is we're taking all the lessons learned from from our reusable packaging systems, with algrim what we call 1.0, which is selling to a network of about 2200 family abroad stores in marginalized lower income area. of Santiago. And we're taking those lessons, we're developing technology distribution systems essentially focused on Internet of Things technology, and integrating that technology into the supply chains of brands like Unilever, Nestle, and we're in discussions with most other major brands, so that those brands can sell just the product and not the packaging waste, because for brands really, the packaging as an independent business, it's not it's not part of their business model, it actually just creates problems for them because they get, you know, NGOs or, or offer them for all the plastic that's ending up in the ocean and where it shouldn't be. And we're providing a solution for the brands so that we can sell just the pocket or just the product, not the packaging and for the lowest prices. So the technology we're using a distribution system we've created right now and tooling is enabling Unilever to sell their products for about 30 to 35% below business as usual costs that's over supermarket regular prices, and the customer can buy exactly how much they want in the context of COVID Really good for the customer because we do free at home rebills you're not deliveries, the refills because the consumer has the container. And from the point of view of technology, this is a technology podcast. So one thing that's really interesting, we have what we call packaging as a wallet technology. So what we're doing is we're we're typically using business as usual packaging from brands that we're working with Nestle and Unilever. But we take, we basically take an RFID chip, put it under the label, put the label over top of it, and then that creates a digital wallet, or enables a digital wallet that's connected to a cross brand cross product payment platform. And then the bottle or the packaging, it goes underneath the IoT connected vending machine, and the person can buy by the gram, oh, grandma actually means by the ground, it's a Spanish word. So they can buy the Crown by the leader by the ounce, whatever you want to use, per unit cost regardless of how much they buy. So if you're if you're saying you don't Big Family, you just want to buy a liter or two liters or smaller amounts, you can do that. And that's kind of a high level quick overview about grandma.