Latest / GrocerTalk / Fruitist’s Jim Trahanas on Applying AI Across the Entire Value Chain | Groceryshop 2026
Transcript
- 0:00Hello, everyone.
- 0:00This is omnitalk Retail.
- 0:02I am Ben Miller, host of grocertalk, and I'm coming to you live from Las Vegas from the Vuzion podcast booth.
- 0:09That's number 913 at grocery shop.
- 0:12And joining me now is Jim Trehanas.
- 0:15Jim is Chief Technology Officer, a futurist.
- 0:18Welcome to grocertalk, Jim.
- 0:19Thank you for having me, Ben.
- 0:20Okay, let's do a really quick intro.
- 0:22I'm sure that most of our listeners will know your blueberries, but they might not know the scale of the company and they certainly won't know what you do.
- 0:30So give us an intro.
- 0:31Great.
- 0:31So, Jim Trehanas, I'm the cto.
- 0:33As you mentioned, Frutus is a global provider of premium snacking in the form of berries and cherries.
- 0:40We grow our berries in seven countries.
- 0:42Globally, we distribute about 12,500 stores in the U.S.
- 0:47even bigger footprint if you include Europe, Middle east and Asia.
- 0:5012,500 stores.
- 0:53You're going to find us on the shelf 52 weeks a year in our retailers.
- 0:56We have distribution going nonstop.
- 0:59We have growers across the world, as I mentioned, which allows to cover it.
- 1:04And we see ourselves as changing the game and what snacking looks like for folks at home.
- 1:10So premium, healthy and nutritious snacking.
- 1:13Okay, that's really interesting, this whole changing the game thing, this is the thing we're going to dive into, because what many of our listeners might not know is that Fast Company has just named you as one of the
- 1:23world's most innovative companies, which, that's quite something and not necessarily what you would associate with primary production and food production.
- 1:31So I'm pretty sure as CTO you've had a big hand in this.
- 1:35So go on, tell me, what have you been doing?
- 1:37How have you been so successful?
- 1:39Yeah, yeah, good question.
- 1:40I mean, a question I often get alongside that is why is a.
- 1:43Why is a food, a CPG company have a CTO in this space in berry production?
- 1:49So everything for us starts with a forecast, right?
- 1:53Our ability to see what's going to happen in the future and predict our operations, et cetera, is a very important pillar in our execution.
- 2:02So we use data and advanced analytics and AI models to be able to predict outcomes in the future in the form of volumes and quality, so that we ensure that every berry you get at the grocery shelf, store
- 2:14or the grocery store on the shelf is of the same high caliber and high quality.
- 2:18Okay, let's start breaking that down.
- 2:22So tell me, what does that involve?
- 2:24So you say we Use AI.
- 2:25Okay, great.
- 2:26I think everybody has been through the booth so far this week said we use AI.
- 2:30So what do you actually do?
- 2:31What sort of AI are we talking ML?
- 2:33Talking LLMs?
- 2:34Like what are you doing and how does it help you to get that quality premium product onto the shelf?
- 2:40Yeah, yeah, so.
- 2:41So it starts at the bush level.
- 2:42It starts at data collection at the bush level.
- 2:44Okay.
- 2:45So we have massive farms, 2,500 hectares in Peru, and we have to be able to predict, as I said, to do that you need the data underpinning it.
- 2:52You'd have to have foresight and observations.
- 2:53In the field, we deploy computer vision models, we deploy advanced analytics, machine learning models for forecasting, using all the information and weather information that we collect from third parties to be able to understand how quality evolves with all
- 3:08of that information over time.
- 3:10So we have deployed remote sensing, meaning satellite imagery.
- 3:14We have computer vision in the field, we have optical sorting in the pack house.
- 3:18We have a variety of different types of ML models that are being used, from informing pick and harvest to just understanding how commercial allocation should go.
- 3:27It's absolutely.
- 3:28I mean, I'm trying to figure out.
- 3:30You say it like it's really easy.
- 3:33We apply computer vision to a 25,000 hectare farm in Peru.
- 3:37Like how, how a really specialized team that are interested in solving this problem, doctorates in environmental science, doctorates in computer vision, folks that are quite talented alongside best in class partners.
- 3:50Right.
- 3:50So it's not like we're building cameras from scratch on our own.
- 3:53We're finding the latest and greatest in industry and pulling that in to operate alongside us and really creating our technology on those two pillars.
- 4:02Jim, as well as the computer vision.
- 4:04You also mentioned satellite imagery.
- 4:06How are you using satellite imagery if you just.
- 4:09Yeah, remote.
- 4:10We call remote sensing with satellite imagery.
- 4:12So there's really two use cases for it.
- 4:14We use it for our own field intelligence and just kind of mapping what we call NDVI to monitor crop health and performance.
- 4:21But we're also looking at a broader application of satellite imagery alongside other data to be able to get a beat on where the market's going to understand movement for the country.
- 4:32Where are volumes going to be moving in the next 12 months.
- 4:36We do this by analyzing a lot of data coming from satellites, but looking at polygons across all of Peru and then being able to predict using other information when those volumes might be coming at what level.
- 4:49So we're working on this, we're piloting this year and we're seeing some really good results so far.
- 4:53So you're mapping an entire country's crop to help understand where the flow of product is going to come?
- 4:59Yes, yes.
- 4:59I got a dynamic duo team of this guy by the name of Brandon and Roberto.
- 5:03Fantastic gentleman, very bright, and they have built quite a capability for us.
- 5:08Fascinating.
- 5:09So talk to me about the building blocks you need.
- 5:10So you talked about the cameras, but obviously the data is a big part of that.
- 5:14How do you organize that?
- 5:15How do you build the building blocks that we need?
- 5:17Yeah.
- 5:18So to our founders credit and our CEOs credit, we're sitting on about 10 years, a decade's worth of information already that's been previously collected.
- 5:26There was a part of the DNA, I think, of the founding team that said we have to meticulously track everything that's happening at this company because we need to learn from it year over year.
- 5:34So that is really the gold pot.
- 5:37Right.
- 5:38That's the input into all of these models.
- 5:40Without that data sitting there and existing and being ready for us to analyze and run analytics against, the AI is a commodity.
- 5:48The data is really what's the moat for us, the special input.
- 5:52This sounds like a lot of investment.
- 5:54So how are you able as an organization?
- 5:57Where's the return come from?
- 6:01There isn't a huge margin in many, many fresh categories.
- 6:04So how do you justify what sounds like an incredible and complex organization?
- 6:09Yeah.
- 6:10So I mean, there's three pillars that were three levers that we're pulling.
- 6:13Right.
- 6:13It's an increase in yield, it's an increase in quality.
- 6:16Right.
- 6:16And ultimately the best possible relationship that we can have with our retailers because we're providing them the forecast that they need to be reliable for the consumers and that trickles into pricing.
- 6:27Okay.
- 6:27Because the forecast is at the very heart of everything.
- 6:29It's at the heart of everything.
- 6:31Okay.
- 6:31And so when you get these forecasts, is it.
- 6:33Are you directing the farmers to say what to pick, when to pick, how to pick, how, how does that connection run?
- 6:42Decisions start with our models.
- 6:44So our models are the starting point for making operational decisions in the field.
- 6:49So what we do is we say we're collecting all the information.
- 6:52Right.
- 6:53We're using our satellite imagery, we're using our computer vision of the field operating autonomous drones that are looking at Barry level information on our plants.
- 7:01We run all that through our models.
- 7:02Those models determine what's the optimal moment of pick for this particular field.
- 7:08And that's where we deploy labor and pick.
- 7:10Incredible.
- 7:11So it starts there.
- 7:12Do you want to talk about your customers?
- 7:14So that is the retailers that you work with, you talked about the sheer number of stores that you're in, but all the work you've done, all the investment that you've made to create this premium product, how does that
- 7:24relate to what you can do on shelf?
- 7:26What the merchandising and the value that you can bring to your customers and their shoppers?
- 7:31Yeah, look, in this category, I think customers, customers being the end consumer, the consumer really wants a consistent product.
- 7:38Right.
- 7:38Like they want consistency and quality and they're after shelf life and acidity and sweetness and all these other quality characteristics that we measure and we forecast out using all our technology.
- 7:47Right.
- 7:48So if we're able to provide that level of service to our retailers in which they can feel confident putting our product on their shelves, they're going to, it's going to be gone as fast as possible.
- 7:57They're going to keep building a relationship with us.
- 7:59Right.
- 8:00So we're going to keep investing in the technology that's going to be able to build that level of trust and that, that flow, that pipeline of highest quality caliber product that you could put on your shelves.
- 8:11One of the big themes of the show so far this week has been around the growth of E Com, but particularly around same day delivery, rapid delivery kind of items.
- 8:24I'm guessing that kind of is a pro for you in a fresh category.
- 8:28Tell me how, what have you seen impacting your category on this?
- 8:32It is, I think we've all had the experience at this point.
- 8:35The majority of consumers have had the experience of ordering something online and it could be fresh produce and you're basically having to succumb to whoever's fulfilling that order via that platform, whatever their tastes and qualities or convenience is.
- 8:48And when they pick their produce or their products off of the shelves.
- 8:52Having a stable supply of high quality premium products for those executors to go pull from means that the roulette game of having a variety of types of tomatoes that might come to you or berries or fresh produce, that
- 9:06kind of gets erased.
- 9:07Right.
- 9:08Because you're always going to have a consistency no matter what they pick from the shelf.
- 9:11That's our products.
- 9:12By the time it gets to you, it's going to have the same quality regardless if you picked it from the store shelf or if somebody else did it for you.
- 9:18Yeah.
- 9:19Okay, so that's right then.
- 9:20So you need to drive the brand awareness to know that you get the consistency of that product.
- 9:23Correct.
- 9:24And how do you drive innovation from an end consumer perspective?
- 9:28Because I can understand all the input you put into the Back end.
- 9:33But a blueberries.
- 9:33A blueberry or isn't it?
- 9:35Go on.
- 9:36It is and it isn't.
- 9:37Right.
- 9:38It's not a commodity.
- 9:38We're not producing commodities.
- 9:39Okay, perfect.
- 9:40We're producing what we like to call healthy, nutritious snacks.
- 9:43And we're doing so in various formats as well.
- 9:45Right.
- 9:45So different consumers have different needs.
- 9:47We have types of products that we sell in different arenas and different markets.
- 9:51But we're really looking to cater to the experience that the consumer wants.
- 9:54Right.
- 9:54Some people want snack cups to be able to quickly grab a single portion or a couple portions on the go.
- 9:59They don't want large containers sitting in their fridge for long periods of time.
- 10:02So we're catering to those needs.
- 10:03And our marketing team and sales team are doing a wonderful job of working with our retailers and our operations teams to figure out what works best for consumers.
- 10:11So there's a question I've got to ask you.
- 10:13You mentioned your founders, but how does a kind of a very affordable through a primary production company become and maintain to be so innovative?
- 10:22Yeah.
- 10:23Give specialists really interesting problems to solve and they will come and do it for you.
- 10:29Those folks that we have built, we built a team of about 100 years of agriculture technology experience in the first 90 days of my tenure with the company in this seat.
- 10:39They have propelled us forward in such a way that is incredible.
- 10:42So over the last year, we moved from sitting on a foundation of 10 years of data to having advanced analytics.
- 10:48All these models that we mentioned really being part of the heartbeat of the company and driving decision making every week, every day.
- 10:57So it's really built on them.
- 10:58It's really built on them.
- 10:59Fantastic.
- 10:59Okay, Jim, we've had so many conversations and people often come by the booth and say it's great all this AI thing.
- 11:07Can you tell me how it's really working?
- 11:08So thank you for coming by and sharing an example of.
- 11:12Of rich data and a rich example of how it's actually happening.
- 11:15So really appreciate it.
- 11:16I'm never going to look at a blueberry in the same way again, so thank you.
- 11:19Hopefully you can taste the difference, I'm sure.
- 11:21Thanks to the team at Fusion and Grocery Shop for making this coverage possible.
- 11:25And stay tuned for more.