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The time has come for a new food retail system that is just and sustainable for all.

Daily Food Box: our challenge is creating a healthy, fair, totally new food retail system that is sustainable for all and benefits everyone.

Photo of Inna Tkach
8 5

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Lead Applicant Organization Name

Crown Food Group Ltd

Lead Applicant Organization Type

  • Small company (under 50 employees)

Website of Legally Registered Entity

https://dailyfoodbox.com/

How long have you / your team been working on this Vision?

  • 1-3 years

Lead Applicant: In what city or town are you located?

Hong Kong Special Administrative Region of the People's Republic of China (HKSAR).

Lead Applicant: In what country are you located?

Hong Kong Special Administrative Region of the People's Republic of China (HKSAR).

Your Selected Place: what’s the name of the Place you’re developing a Vision for?

Hong Kong Special Administrative Region of the People's Republic of China (HKSAR).

What country is your selected Place located in?

Hong Kong Special Administrative Region of the People's Republic of China (HKSAR).

Describe your relationship to the place you’ve selected.

Daily Food Box is a project of Crown Food Group LTD company (www.crownfoodgroup.com)

Crown Food Group has been working as a food distributor, importer, and manufacturer on Asia Market (Hong Kong and China). The company has been working on the Hong Kong market we keen to provide quality and affordable food products, but it has been a challenge for us due to a huge rent cost in Hong Kong.

Going through all the challenges related to the retail chain in Hong Kong to lead us to the creation of Daily Food Box, that is going to solve many issues for customers, manufacturers, and farmers.



Describe the People and Place: Provide information that would be helpful for an outsider who has never been there and may have no context about this Place to better understand the area.

Hong Kong is a vibrant city, a special administrative region of China a major gateway to Asia. Its climate is subtropical and monsoonal with cool dry winters and hot and wet summers. The main languages spoken there are Cantonese and English. 92% of the Hong Kong population is ethnic Chinese. The most common cuisines are different Chinese tastes and flavors or a mix of different Asian cuisines.

Although Hong Kong is one of the world's most densely populated cities, nearly all its 7 million people are clustered in crowded urban areas.

Hong Kong has a small agricultural sector, including fisheries, with very limited productivity and an insignificant role in the economy. It is a tiny contribution to GDP and the share of the workforce of Hong Kong.

In addition to being a dynamic market, Hong Kong is also a trading hub where buyers make purchasing decisions for a vast range of consumer-oriented products that are transshipped to China and other parts of Asia.

Due to limited, not enough to feed the Hong Kong population, arable land, around 95 percent of food in Hong Kong is imported. Hong Kong at large welcomes foods from around the world. The import regime is transparent. Food and beverage products are imported to Hong Kong without tax or duty but it doesn’t have much influence on produce retail prices because of the very high rent costs.

In 2017, imports of agricultural and related products reached US$27.6 billion. The land is limited and extremely expensive in Hong Kong. Therefore, the local food process sing sector is small. Imports of bulk and intermediate agricultural commodities were US$386 million and US$2.3 billion respectively, representing 1.4 percent and 7.4 percent of overall agricultural imports.

Hong Kong’s retail food sector sales rose 1.82 percent to US$12.28 billion. The Hong Kong food retail market is made up of supermarkets, convenience stores, and traditional markets. Supermarkets account for nearly 56 percent of retail food sales. There are more than 800 supermarkets, 1,300 convenience stores and over 100 traditional markets in Hong Kong.

Online food sales were US$118 million. This new form of shopping is expected to grow as rents continue to rise, more product varieties become available on e-commerce platforms, but still not so many options and the price level is not quite affordable.

Although the economy of Hong Kong is a highly developed free-market economy characterized by low taxation, almost free port trade and a well-established international financial market, most of the population doesn't have access to enough affordable healthy food. Most of the population budget is goes to rent of living.  Hong Kong has racked up the 10th year as the world’s least-affordable housing market, highlighting the inequality.

Due to the difficult access to healthy food in Hong Kong, many people, both overweight and malnutrition.

What is the approximate size of your Place, in square kilometers? (New question, not required)

2755

What is the estimated population (current 2020) in your Place?

7404207

Challenges: Describe the current (2020) and the future (2050) challenges that your food system faces.

One of the biggest challenges for the Hong Kong food system is to make accessible food that is affordable for all population. As the city doesn’t have enough source of growing enough local food, it’s necessary to find a solution on how to feed all the population. And it is a challenge not only of nation health being but national security for decades.

In the existing food retail world, the customers do not have a voice and rights for a conscious choice as well as producers, the clients can buy food what the retail chains offer them. For now, the last one is the decision leader. 

In order to succeed, the retails chain needs to cover enormous expenses such as; rent, salary to employees, logistics and so on. To get the product on the top shelf, food producers must to pay marketing charges in advance and provide products with payment deferment.

Food products with quality ingredients that are more expensive cannot compete in such a retail food model. Currently, producers can not produce food without ’ additives ’ due to the existing retail food chains require at least a 1-year shelf life.

The other challenge is recycling. Hong Kong cannot efficiently deal with food and plastic waste

Have you ever wondered how many spoiled foods retail chains throw away per day? From 10 000 tons per day and more.

How many items from no-recyclable plastics are selling in? About 6 000 SKU,

How many SKU'S with additives are prohibited for children? Approximately 3 000 SKU

Food quantity is not China’s only problem, food quality has also become a big issue. Over the last five years, Chinese consumers have had to contend with everything from tainted milk to expired meat, raising serious questions about whether food in China is safe for consumption.

Nowadays, consumers have never cared more, nor known less, how their food is produced and how will it combine in their diet.

The clients become a hostage to the retail chain; the customer can only choose the food products that are on the shelves. Reality is: not consumers and even not producers are willing to decide what kind of food we will consume.

Limited access to quality food also affects public health. A lot of the population overweight due to unhealthy nutrition habits and most of the population malnutrition of healthy food full of nutritious ingredients. In the coming years, this leads to serious examinations and treatment of a wide range of diseases.

Address the Challenges: Describe how your Vision will address the challenges described in the previous question.

Economics:

Daily Food Box will allow saving family budget and get access to affordable healthy food. By cooperating with local producers we will get a possibility to increase forecasting demand.
The price of Daily Food Box goods is lower from 30 to 60 percent than in retail traditional sales channels.

Saving money - at least 500$ can be saved by using our service per month and 6000$ per year.

Saving time (an average people spend at least 1 hour per day in a grocery store, 40 hours per month) with Daily Food Box shopping going to be more enjoyable and just took 1 click.

Diet:

By providing food sets and healthy recipes we will inspire to cook at home more healthy food. What to eat today and how to cook, which ingredients to buy and where, we already solved these issues, by cooking themselves, they also gain the benefit of knowing exactly what is in their food.

Culture:

Food choice when knowledge is power. Our mission is not only to provide affordable food but also to educate customers. Our service will provide an online app with all explanations about all ingredients.

Environment:

The right choice of what to eat in order to save our planet. One of the most powerful steps to save our planet is by reducing the consumption of meat, eggs, milk.

Daily Food Box will provide food in recycled packaging.

We'll provide balanced nutrition, specialized nutrition, national nutrition diets, our customers will know the exact quantity of food they need to consume daily, so it helps reduce food and package waste.

Policy:

Food Safety is the Top Priority for us. Each supplier undergoes an in-depth approval process which includes a multi-step. Audits of suppliers are performed to ensure ongoing quality and food safety ingredient compliance.


High Level Vision: With these challenges addressed, now provide a high level description of how the Place and the lives of its People will be different than they are now.

Environment: The local farmers will grow on demand more diverse vegetables, crops. It will minimize food waste and CO emission on the process of distribution of food.  The Daily Food Box will supply food in recycled packages. It will minimize waste for plastics packages and utilization of it.

Diet: The Daily Food Box will help support health trough constant sustainable food. Each month customers will get a set of different nutritious food from different countries that couldn't be sourced or grown in Hong Kong to support health, especially the children and elderly population.  

Economics:  Daily Food Box will cooperate with producers and farmers in Hong Kong to develop new products and forecast demand. It will increase production and will create additional jobs.
As rents in Hong Kong continue to rise as well as price on food in the retail chains, people of Hong Kong are needed a more affordable alternative as Daily Food Box.
Eating out in Hong Kong so expensive too, with Daily Food Box could save a significant amount if they cook at home.

Culture: Conscious consumption is on the rise. People are seeking out ways to make better decisions about what to buy to eat. According to Cone Communications’ 2013 Echo Global CSR Study, 91 percent of consumers worldwide are likely to switch brands to one associated with a good cause, given comparable price and quality. The new model of consumption will increase awareness about sustainable consumption and support local producers.

Technology: By Usage of achievements in the field of artificial intelligence, big data the Daily Food Box project will forecast better food sets by demand, flavor and cost preferences. By usage of logistics optimization and analytics will be efficiently forecast and monthly deliver optimal Daily Food Box.

Policy: We will cooperate with the local community together to increase awareness about sustainable nutrition and develop new standards for the control of food quality.




Full Vision: How do you describe your Vision for a regenerative and nourishing food future for your Place and People for 2050?

Our vision is that by 2050 Hong Kong food system are changing and creating positive impact for people health, environment and society:


Environment: By cooperating with local producers, farmers, and optimization of all logistics processes we are willing to gain:

- reduction of CO2 emissions by 25 percent due to optimization and targeted delivery;

- reduction of food waste by 45 percent due to targeted delivery and monitoring of consumption;

- reduction of carbon dioxide emissions from manufacturers due to planned production (produced what is consumed only);

- replacement packaging plastic with environmentally friendly.


Diet: Increasing the birth rate due to access to healthy affordable food. By Daily Food Box:

- improving the diet of disadvantaged segments of the population due to more affordable food prices;

- helping the elderly and control their nutrition;

- improving the life expectancy of the population due to the monitoring and optimization of the diet of the population;


Economics: Developing new food production and sustainable agriculture in Hong Kong. The local producers that couldn’t be presented on the shelves of supermarkets due to high marketing costs found new customers through Daily Food Box. The constant and increasing demand support local farmers and producers in developing new sustainable quality products and fair price for customers and creating new jobs.


Culture: Sustainable new food system for Hong Kong is wildly supporting by the local community and inspiring to create new cultural attitudes and forms of consumption and careful attitude to the environment.


Technology: Daily Food Box AI technologies are:

- improving the duration and quality of the population's life due to the monitoring and optimization of the diet of the population,

- helping for the elderly and control their nutrition,

- reduction of carbon dioxide emissions by at least 25 percent from manufacturers due to planned production (produced what is consumed only ),

- reducing government spending on providing the low-income population with food by 40 percent or expanding the program while maintaining the amount of several million people.


Policy: Changes in customer behavior will ultimately coalesce and move those levers in the global food economy as well. Our systematical cooperation with producers and farmers for developing new sustainable nutrition is creating new standards and uniting communities to find a solution to health and nutrition challenges.


How did you hear about the Food System Vision Prize?

  • LinkedIn

8 comments

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Spam
Photo of michael akande
Team

Hi Inna,
Your vision Idea is unique and could impact a lot of people in both rural and urban areas. Keep up the good work. Good luck.

Spam
Photo of Inna Tkach
Team

Hi Michael,
Thank you for your interest in our project and good words about it.

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