digitalfoodlife2014 - The Hartman Group...2014/12/15  · “I’m open to all foods: sushi, Thai,...

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digitalfoodlife2014

Transcript of digitalfoodlife2014 - The Hartman Group...2014/12/15  · “I’m open to all foods: sushi, Thai,...

Page 1: digitalfoodlife2014 - The Hartman Group...2014/12/15  · “I’m open to all foods: sushi, Thai, Singaporean, African…Nothing crazy like monkey’s brain. I just don’t like to

digitalfoodlife2014

Page 2: digitalfoodlife2014 - The Hartman Group...2014/12/15  · “I’m open to all foods: sushi, Thai, Singaporean, African…Nothing crazy like monkey’s brain. I just don’t like to

Visualization of the various routes through a portion of the Internet on January 15, 2005 (https://en.wikipedia.org/wiki/Digital_Age#Digital_Age)

“I live fully in the present. I text to socialize and coordinate meet-ups. I’m doing a lot of things at same time, always looking for opportunities. I like to be involved, to find people with mutual interests.”

- Alex (19, Boston)

Digital life is more than social media, apps, or Google. It’s everything we think, say or do that is based on 1s and 0s

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Digital life has shifted the individual’s role from “consumer” to “player” in the World of Food

“The food industry limits growth because people don’t know how to cook. I want to be independent, make with own hands, do myself, figure things out and share with others.”

-Vincent (27, Seattle)

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Online survey fielded June 2014 to a nationally representative sample of 2,409 U.S. adult primary shoppers, aged 18-74, with sampling error of ±2.0 percentage points at 95% confidence level.

The sample includes a deliberate oversample of 2,117 adult smartphone users to support a more focused analysis of digital technology users.

Approximately 67% of the online adult population currently owns a smartphone.

We conducted in-person and virtual interviews with a diversity of consumers, and also engaged consumers in extensive homework exercises on the “digital life of a food trend” and the “story of your food life”. We also spoke with experts in the digital space — writers, developers, and entrepreneurs — to get an understanding of their perception of the evolution of digital technology and its impacts in food and beyond.

Quantitative and qualitative primary research methods

28% of smartphone users have recently tried a new digital service to help track exercise, weight or vital signs

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What does digital “disruption” look like in the U.S. food industry?

CONVENTIONAL WISDOM

Level of disruption = Low/moderate. Digital will affect marketing of food, but not fundamentally reshape consumer food culture and the sectors that serve it.

• The food industry meets a basic human need at a very large scale very well. Digitally-enabled innovation will layer on top of existing industry infrastructure.

Means of disruption = Address unmet/underserved consumer needs by reducing inefficiencies and reaching untapped consumer markets.

Key guardrails

• Structural: Food is not “content” – Food cannot be digitized. Digitally-enabled distribution still subject to same costs faced by brick-and-mortar.

• Cultural: “Fresh” is at odds with technology, is a barrier to consumer adoption of food e-comm

Key sites

• Leveraging frictionless transmission of data, unlimited shelf-space to flatten distribution: Geographies underserved by conventional brick-and-mortar

• Small and nimble innovations to align with changing needs: Quality (Fresh), Value, Convenience

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Digital Food Companies are reacting to a more diverse, dynamic and INTEGRATED eating environment

How we eat today:

• Occasion-based meals and snacks

Alone (47% of eating occasions)

50% meals/50% snacks

New occasions: pre-breakfast “snack”

• On-demand, planned spontaneity

63% of eating occasion food choices are decided within an hour of consumption

30% of the top 25 supermarket growth categories are in the chilled or perishable categories (fresh “fast” food)

• Variety and customization (by dietary concerns, cuisines)

55% of families cook multiple meals/dishes to cater to individual taste preferences

13% of all eating occasions include an emerging global food

• Cook less or cook more, depending on the occasion

77% of all eating occasion involve at least some prepared food

“My roommates and I, we don’t share food…we’ve had family meals together three times in the last six years that we’ve been rooming together.”

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Digital Food Companies are reacting to a more diverse, dynamic and INTEGRATED food marketplace

How we shop today:

• More democratically within the household

Only 22% of primary shoppers are females with children in the household

Within households with children, children are becoming “co-shoppers”

47% of primary shoppers are men

• More democratically outside the household

More than 50% of grocery shopping “trips” involve going to 2+ stores

71% of consumers visit 5+ retail channels at least once a month for food

We utilize the roadside or online “pantry” rather than stocking up the home pantry

“My phone is an easy button. I can order food, get service, give feedback… because companies can track me. I can pay with my phone.”

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Today’s consumers are more food literate than ever before

With unprecedented access to and speed of information, consumers are becoming increasingly informed about their food and the companies that produce it.

Whether through deep engagement with food culture or passing encounters with information sources, consumers are increasingly aware of the social, environmental, and health consequences of the foods available to them.

Freer and faster flows of information mean there are more opportunities for (mis)information to spread

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Digital Food Life is shifting us to a fully realized Participatory Culture

CLEAR SOCIETAL ROLES

BELIEF IN RULES, HIERARCHY, SCIENCE

CLASS-BASED IDENTITY

FOCUS: BASIC NEEDS

DRIVERS: THRIFT, EFFICIENCY, PREDICTABILITY

SCALE: MASS

DIVERSITY + FRAGMENTATION

SELF-REFLEXIVE AND RELATIONAL

EVOLVING IDENTITIES

FOCUS: AUTHENTICITY + RECIPROCITY

DRIVERS: FUN, CUSTOMIZATION, TRANSPARENCY

SCALE: GLOBAL AND MICRO

Traditional Culture Utilitarian

Participatory Culture Transformative

F R E S H F O O D S

P A C K A G E D / P R O C E S S E D F O O D S

Consumer Culture Experiential

FAMILIES ARE DEMOCRACIES

STRIVING FOR QUALITY OF LIFE

LIFESTYLE-BASED IDENTITY

FOCUS: EXPERIENCE + DESIRES

DRIVERS: TRADING UP, HEALTH + WELLNESS

SCALE: MASS & NICHE

C O - C R E A T E D F O O D S

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Buying is no longer the primary way consumers participate in our food system

TRADITIONAL CULTURE CONSUMER CULTURE PARTICIPATORY CULTURE

Recent past Receding present Emerging

The scale of networks has become as or more important than scale of manufacturing

The “goods” are the sum of product + creativity + business model

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Digital disrupts traditional food relationships as four key platforms emerge

Direct to Consumer

Consumers are increasingly bypassing retailers and purchasing foods directly from manufacturers and many hyper-local and small niche players.

Digital Media

The diverse and dynamic terrain of food ideas stimulates discovery and sharing. Consumers are now experts. Information is evaluated and manipulated.

Consumer as Players Consumers discover, share, make and trade food recipes, food traditions, food ideas and food products. They see themselves as co-creators.

Disruptive Food Companies New services and products are emerging – many niche – to align with the cultural shifts in how consumers eat-shop-live.

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“Posting photos is how my family knows I’m ok.”

- Jon (29, NYC)

Consumers comfort level with Digital Food Life does have a generational component

1980 1984 1990 1993 1995 1997 1998 1999 2000 2001 2003

2004 2006 2007 2008 2010 2011 2012 2013 2014

Macintosh Computer

iPhone 3G

6.8 Billion Mobile Subscriptions

amazon.com

“A day without my phone is nerve-racking to not be able to communicate with a group of people simultaneously.”

- Alex (19, Boston)

2009 2005

“Technology is a shadow, dancing partner, time sink—

there is an addictive quality.”

- Jenni (42, NYC)

“We’re all addicted, on Facebook. I like the convenience. Everything on my phone: friends, food, appointments, directions. I wish I could lay off the phone, but I just can’t.”

- Anita (41, Oakland)

“Technology is distracting. I feel like I’m swimming to keep up with all the new technology coming out.”

- Nish (34, San Francisco)

“My phone is a lifeline for me. To the point that I have battery issues. My whole day

revolves around keeping my phone charged.”

- Hillarie (25, Seattle)

“My generation is instant. Someday Burger King will deliver hamburgers in drones.”

- Taylor (24, Seattle)

“In the future, technology will be in our heads.”

- Alexis (20, Seattle)

Square Order Buycott

“There is no more mystery left in life. Everything is just a Google away.”

- Eduardo (37, Chicago)

“My phone is a computer that fits in my hand”

- Andrea (36, Seattle)

“My phone is everything. Without it I’m lost.”

- Rachel (30, San Francisco)

“It’s unacceptable to not know something you’re curious about.”

- Mia (29, Seattle)

“I can’t go anywhere without my phone, because I feel like an emergency might happen, and I can’t text, check email, use my apps, access the Internet.”

- Charlene (37, San Francisco)

“I like working on an idea that has a socially minded start-up mentality. My work and life are intertwined.”

- Lisa (29, San Francisco)

“My phone is everything. I am attached to my phone. Every piece of my info is from digital sources.”

- Drew (30, Seattle)

“Anything is possible. I have a business plan for a better burger food truck with an automated Twitter cookie box that threw out a cookie when we got tweeted.”

- Vincent (27, Seattle)

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The World of Food identifies a consumer’s intensity of involvement with food

13% Core

Food is my life

60% Mid-level

Weekend foodie

27% Periphery

Eat to live

The World of Food describes how consumers orient to food, based upon the intensity of their involvement in our Modern Food Culture.

The World of Food Segmentation is primarily based on:

• Price sensitivity (Periphery)

• Aspiration to “eat better” (Mid-level)

• Passion and intellectual pursuit of all things food (Core)

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“I’m open to all foods: sushi, Thai, Singaporean, African…Nothing crazy like monkey’s brain. I just don’t like to eat the same foods every day.”

- Nish (34, San Francisco)

“I’m the cook in the family because I’m home first. I try to make food that’s healthy, simple, that we like. I know what I like and I like what I know,”

- Rachael (30, San Francisco)

“I want the unabridged version. I eat most anything. But if there’s a healthier version, I don’t want it. I’m eating to enjoy food, not to enjoy my health.”

- Jon (29, NYC)

Actively seeking new food experiences

Local, Seasonal, Global

Early adopters, trendsetters Highly food literate

Authenticity, Intellectual

Seek pleasure and sustenance

Price, Convenience, Taste

Core: Food is my life Mid-level: Weekend foodie Periphery: Eat to live

Differing segments have different needs and aspirations

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Digital Food Life has enabled the Mid-level to increase their participation in the World of Food

44%

36%

44%

27%

25%

25%

17%

45%

40%

37%

25%

26%

20%

14%

25%

21%

20%

20%

13%

13%

8%

Knowledgeable about food

Knowledgeable about health or nutrition

Passionate about food

Is 'in the know' about digital/onlinetechnology

Feeds/cooks for people other than familymembers

Is 'in the know' about culture, trends,fashion, and/or arts

Posts messages about food on socialnetworking sites or blogs/apps

Core

Mid-level

Periphery

Source: Digital Food Life 2014. And which of these phrases do you think other people would describe YOU? (Select all that apply). Smartphone users n=2117; n=484-Periphery; n=1263-Mid-level; n=262-Core

How I think others would describe me

Mid-level consumers display as much confidence in their knowledge of food, health and nutrition as Core consumers. However, they do not claim to be as passionate about food or as “In the know” about technology or trends.

If you’re in the business of food, you need to understand the Core to be able to speak to Mid-level/mainstream aspirations.

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28%

25%

19%

14%

18%

17%

11%

12%

12%

34%

26%

26%

20%

19%

16%

13%

11%

10%

19%

22%

19%

13%

9%

11%

8%

5%

4%

SEARCHED ONLINE RECIPES to figure out what Ineeded

CALLED OR TEXTED someone in my household toask about needed items

Built my grocery SHOPPING LIST using a website orsmartphone

Consulted a SHOPPING LIST I maintain online or onmy phone

Used a smartphone to find or consult a RECIPE

SEARCHED FOR A RETAILER that carried thefood/beverage item I wanted

Took a PHOTO of an item or display in the store

Got ideas about what to buy or where to go frommy FRIENDS online

Used a smartphone to help RESEARCH WHICHBRAND to buy

Core

Mid-level

Periphery

Digital Food Life allows Mid-level consumers to use a wide range of digitally enabled technologies for shopping

Source: Digital Food Life 2014. Which of these ways have you used a mobile phone, the Internet or any online tools during the PAST 3 MONTHS? (Select all that apply). Total Smartphone users n=2117; n=484-Periphery; n=1263-Mid-level; n=262-Core

Use of online tools for food/beverage shopping (past 3 months)

Core consumers typically take a more self-assured and self-directed approach to shopping.

Mid-level consumers rely on digital technology for in-the-moment support during their search for food experiences.

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In addition to recipe sites, visual and searchable digital food tools are becoming a part of the “shopping prep”

70% of smartphone users have recently used a recipe website or app (55% reporting monthly usage, 29% weekly or more)

Pinterest exemplifies and has facilitated a shift towards visual food inspiration

Food blogs present recipe ideas in narrative context, reinforcing authenticity and food intimacy

Food as content for general media and entertainment (e.g., Food Network) reinforces food as a cultural product

39%

26%

22%

20%

20%

15%

13%

11%

11%

11%

10%

9%

9%

8%

8%

7%

7%

6%

6%

5%

5%

4%

3%

3%

3%

3%

3%

3%

2%

2%

2%

2%

2%

1%

Allrecipes.com

Foodnetwork.com

Google search

Pinterest

Recipes.com

Bettycrocker.com

Food.com

Myrecipes.com

Pillsbury.com

Kraftrecipes.com

Cooks.com

About.com Food & Beverage

Epicurious

Simplyrecipes.com

Digital cookbook stored on device

RachaelRay.com

Alton Brown

Google image search

MarthaStewart.com

Food section/ blog, magazine

Food section/blog, food magazine

Weight Watchers Online

Other food blog

Meals.com (Nestle)

Chow.com

Food section/blog, newspaper

Food 52

Smitten Kitchen

Jenny Craig Online

Nutrisystem Online

Serious Eats

Popsugar

Rouxbe Cooking School

Food section/blog, radio

Sites and apps used for recipes or instruction

Source: Thinking about the past 12 months, on average, how frequently do you…? Use a recipe website or app. If used: Which specific resources have you USED FOR RECIPES OR COOKING INSTRUCTION during the PAST 3 MONTHS? (Select all that apply) Smartphone user n=2117.

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Digital services provide on-demand access from mass to specialty

13% of smartphone users have recently used an online service to order groceries for delivery or pick-up

Fresh-oriented specialty options – promoted as farm-to-consumer networks – have been rolled out exactly where offline farm-to-consumer channels are already abundant

5%

5%

3%

3%

2%

2%

1%

1%

Safeway.com

Walmart To Go

Peapod.com

AmazonFresh

FreshDirect

Instacart

Envoy

My local grocery store

3%

3%

2%

2%

2%

2%

1%

2%

1%

FarmersWeb

Farmigo

Good Egg

Full Circle Farm

Relay Foods

Spud.com

Harvest Geek

Another 'CSA' online

Another service

On

line

Gro

cery

Se

rvic

es

Farm

-Ori

ente

d O

nlin

e G

roce

ry

Serv

ice

s

9% of smartphone users have used an online service to order produce or other farm-sourced items in past 3 months

Source: Which, if any, of these have you used FOR FOOD during the PAST 3 MONTHS? “Other” option included in net totals. Smartphone user n=2117.

Second generation e-grocers are delivery services that source from multiple retailers and/or from retailers that do not have delivery services

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Digital Technology & Participatory Culture enable consumers AND companies to engage in new modes of exchange and co-creation

Participatory culture is about consumers doing it themselves.

There is plenty of room in the sandbox for companies selling goods and services, but it works best if you are invited and play by their rules.

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Food is a cultural product to be Discovered by a digital imagination

Technology has given consumers a sense of empowerment and ownership of the contents of our digital lives.

Trends represent the essence of discovery in the digital age.

88% of smartphone users say technology has improved their quality of life in past 10 years

82% of smartphone users say technology has improved how well they eat in past 10 years

Source: How would you say that technology has helped to improve or caused a decline in each of these areas in past 10 years? Smartphone user n=2117.

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Digital Discovery: Expanding possibilities

List-Collect

• Time marked by checklists, calendars

• Workflow organized by apps

• Past & future project/selves archived by apps

(Re)Search

• Instant access to all human knowledge & endeavors

• Permanent curiosity

• Information is evaluated, subjective, dynamic, manipulated

Track-Trend

• Convenient self-monitoring, self-regulation, self-diagnosis

• Real-time data-collecting

• Visualization of behavior

• Awareness of self/collective

• Validation

Learn

• We are becoming life-long learners

• Democratization & rapid dissemination of skills

• Immersive learning via self-assessment, role play

• Increased food literacy

Navigate

• Orienting self in relation to networks, cities, cultures, “The World”

• Increased self-reflexivity

• Seeking new, unique, different

DISCOVERY

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Food provides Sharable content – it’s visual, universal and relatable

Many consumers (and experts) believe food has driven Pinterest’s success

Source: Which specific resources have you USED FOR RECIPES OR COOKING INSTRUCTION during the PAST 3 MONTHS? (Select all that apply) Smartphone user n=2117.

“Looking at food online makes you hungry. Food content is relatable, easy to share, easy to like.”

- Taylor (24, Seattle)

“Fruits and veggies look delicious on Pinterest. I get inspired.”

- Hillarie (25, Seattle)

20% of smartphone users have recently used Pinterest for recipes or cooking instruction

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Connect

• Ease of finding people or instigating meetup

• Strengthening networks

• Universality of food, esp. food photography, tends to create positive connection

Socialize

• Easy circulation of ideas & goods through networks allows big & small to broadcast

• Strength of ideas, design, products, services are more important than size/history of brand

Collaborate

• Opens up a sharing economy based on passion, skills, ideas, not just capital investment

• Opens up knowledge production beyond institutions

Coordinate

• Locating & targeting ever more fragmented marketplace enables strength of networks to replace scale of production

• Enables delayed decision making & planned spontaneity

Blog

• Everyone has a story, passion, skill, experience to “get out there”

• Diversifies content

• Democratizes content creation

• Broadens the creative class

SHARE

Digital Share: Interacting with many

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Cook-DIY-Makers

• Access to cooking skills beyond family recipes

• Food communities based on handmade experiences

• Elevation of cooking from mundane everyday to a project, hobby, passion

Curate

• Influencers now can be outside of traditional media & retail channels

• Digital curation extends reach of geography-bound experiences to a global audience

Co-create

• Belief that current products & services will evolve through dialogue with users (feedback, reviews, forums)

• Integration of work & life

• Possibility of turning a food passion into a food business

Customize

• Expectation for variety, relevant choices and just-in-time production (fresh prepared foods)

Open-source

• De-privatization of information or skill for common good

• Transparency of relationships

• Holistic assessment of “real cost” of goods & services

• Future of food is at stake

MAKE

Digital Make: building ideas, goods, community, companies

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Shop

• Recalibrates “lowest” price by digital search

• Outsources mundane trips

• Multi-channel concierge

• Enlists friends to try

• Shop by recipe

• Real-time feedback w/shopper

Pay

• Removes depersonalizing & awkward aspect of exchange

• Refocuses experience on service, brand & loyalty

Fund • Creates micro-

venture capital for start-ups with a good idea or shared vision

Order-Subscribe-Rent

• On-demand access to higher-quality food experiences

• Offers customization and transparency as part of user design

• Subscription-service meals & snack kits

Sell • Lessens distance

between local/small producers by aggregating orders & potential consumers

• Connects consumers and producers with shared values and tastes

TRADE

Digital Trade: simplifying transactions

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Consumer experience of the Digital Food Landscape maps along a spectrum of cooking to eating, thus integrating retailer, food service and e-commerce

Retail Delivery

Cooking Eating

Occasion-Based Prepped Ingredients

Occasion-Based Prepared Meal

Chef-Cooked Meals

Restaurant Navigator

Restaurant Navigator & Delivery

Lifestyle-Based Store

Occasion-Based Snack Subscription

Cooking Schools

Consumers consider how much “shopping prep” & “cooking prep” they want to put into their next eating occasion, and because of the overabundance of choices, this decision is getting delayed until it’s nearly time to eat

“I use Bite Squad when I’m hungry but I don’t want to think about what I want…and I want good food…I don’t want ramen or a frozen meal.”

-Alexis (20, Seattle)

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Digital disruption in the U.S. food industry promises to be more profound than conventionally assumed

CONVENTIONAL WISDOM

Level of disruption = Low/moderate. Digital will affect marketing of food, but not fundamentally reshape consumer food culture and the sectors that serve it.

• The food industry meets a basic human need at a very large scale very well. Digitally-enabled innovation will layer on top of existing industry infrastructure.

Means of disruption = Address unmet/underserved consumer needs by reducing inefficiencies and reaching untapped consumer markets.

Key guardrails

• Structural: Food is not “content” – Food cannot be digitized. Digitally-enabled distribution still subject to same costs faced by brick-and-mortar.

• Cultural: “Fresh” is at odds with technology, is a barrier to consumer adoption of food e-comm

Key sites

• Leveraging frictionless transmission of data, unlimited shelf-space to flatten distribution: Geographies underserved by conventional brick-and-mortar

• Small and nimble innovations to align with changing needs: Quality (Fresh), Value, Convenience

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Signs of deeper changes in a food culture in the midst of disruption by digital technologies

Rituals around food

Reasons and Requirements for engaging with food

Roles and Relationships around food

Enabled

By new options better aligned with occasions

Transformed:

Food is content

Transformed:

Participatory culture recasts “consumer” role

Retailers and restaurants understood and used differently with less relevant identities

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Key Takeaways: Consumers seek an integrated foodscape that is diverse and dynamic

• Digital access has enabled mainstream consumers to participate in experiences formerly confined to the Core of the World of Food.

• Participation in today’s modern foodscape is not perceived as work but as play, which includes discovering, sharing, making and trading.

• The Mid Level Consumer is actively seeking new food experiences, from local and indulgent to global and fresher, and is excited to share with their social networks.

• Consumers are spending less time in the actual planning and preparing of meals, but have greater expectations for fresh and high quality from manufacturers and food service delivery options.

• Digitally savvy consumers are finding new ways to “get food” along a full spectrum of cooking to eating options – many that fall outside the walls of traditional retailer and food service.

• Consumers want to discover, share, review, curate, remix and co-create their own food content.

“Technology vastly broadens my palate, introduces me to new foods and flavors and makes it easy to find stores that carry ingredients as well as new restaurants!”

- Andrea (36, Seattle)

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Laurie Demeritt, CEO

[email protected]

THE HARTMAN GROUP, INC

3150 RICHARDS ROAD, STE 200 BELLEVUE, WA 98005

TEL (425) 452 0818 FAX (425) 452 9092

ABOUT THE HARTMAN GROUP

The Hartman Group, located in Bellevue, Washington, blends leading-edge

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sharply focused on how consumers live, shop and use brands and products

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