Skip to content

Posts from the ‘E360 Webinar’ Category

Trends Impacting the Supermarket Refrigeration Landscape

JasonBorn_Blog_Image Jason Born | Innovation Lead, The Helix
Emerson Commercial & Residential Solutions

During our E360 Forum last year in Houston, I led a Q&A panel discussion on the trends and market forces impacting the refrigeration landscape in food retail. Sharing their thoughts and insights were industry experts Derek Gosselin, director, technical product support, Hillphoenix; and Brad Thrasher, south central regional sales manager, Zero Zone. Below are some of their views on key trends; view the full E360 Forum presentation.

The Changing Face of Food Retail

Thirsty from wandering the aisles of your local grocery megamart? How about a craft beer break? Or maybe shopping for food just makes you hungry. Grocery shoppers today can virtually eat their way around the world as in-store food bazaars offer freshly prepared ethnic fare: Mexican “street food”, noodle bowls and wood-fired pizza. No time to shop? There’s always curbside pick-up of weekly grocery staples on your way home from work — just click and collect. And today, going small has never been bigger, with millennials and Generation Z flocking to urban areas and higher-density living. It’s no surprise that smaller-footprint grocery and food specialty stores are popping up in mixed-use buildings that were never intended to support things like complex refrigeration or HVAC systems.

Yes, the face of food retail is changing. And with this change comes a host of new opportunities (and challenges) for commercial refrigeration. I’ve summarized some of the key takeaways from this informative question and answer session.

On e-commerce, omnichannel and digital shopping

The first topic of discussion was the impact of the digital shopping trend. Today, more consumers are shopping for groceries online. I asked the panelists how brick-and-mortar retailers were responding.

Thrasher: I’ve seen some reports (FMI-Nielsen) that say that online grocery sales could grab up to 20 percent of the market. That seems pretty aggressive to me. But it’s definitely a rising trend. Traditional food retailers are responding by adding services like curbside pick-up. They are making home deliveries. You have to adapt to whatever direction the market is going.

Gosselin: For the retailers, it’s about what identifies them as different. Amazon is driving sales directly online. What can you offer to differentiate yourself, not only from online shopping, but the competition in your marketplace? Many stores have found success creating destination centers within their produce and other perimeter departments: food preparations, beer and wine tastings, restaurants, meals-to-go programs. That’s where the trends are going to be. And, of particular interest to everyone here: How do make sure you have appropriate refrigeration at these dynamic destination centers so that they can control your food quality and get it efficiently distributed?

On Click & Collect

Building on the idea of curbside service, I asked our panelists about the grocery pick-up lockers that are popping up everywhere and what that might mean for the future.

Gosselin: If you’re going to offer perishables as part of your curbside pick-up, you’re going to need to incorporate refrigeration. And it’s not just with in-store Click & Collect programs. I’ve also seen trends where retailers will place a portable refrigerated unit on your porch, so when they deliver fresh food or frozen items, they have a convenient and appropriately refrigerated location. Most consumers are probably not going to give you the key to their home.

Thrasher: Many stores are looking at self-contained or hybrid systems. Future refrigeration will need to be more flexible so that retailers can expand quickly and easily. If your curbside (pick-up) starts minimally but grows quickly, you’ll want a flexible, easy-to-implement solution so you can move quickly to serve customer demand.

Curbside pick-up is a relatively recent phenomenon. To add it as service, you have to dedicate and adapt more space in your store. But that doesn’t come without cost and questions. As we all know, for everything new you add in-store, something else will probably need to come out.

On the future

Before jumping into an audience Q&A, I asked the panelists how their retailers are dealing with change and some of the main factors driving their refrigeration decisions.

Thrasher: No one knows with certainty where the future will go. Some decisions will continue to be informed by technology and regulatory changes. And, certainly, costs always play a critical role. With refrigerants, for example, as regulations come, they may eliminate possibilities. It’s hard to go “all in” into a refrigerant when it could eventually be obsoleted, driving costs up for replacements. The same concept applies to system architectures.

Gosselin: How do you get in front of change? Do you go micro-distributed? Do you use natural refrigerants? What technologies will be developed in answer to changing rules?

For the end user, the challenge is not only what do they have to do to maintain their current fleet of stores, but what are they going to do for future stores so that they don’t add to the problems? And then how do they do that under a cost-effective and compliant refrigerant management program?

Thrasher: The bottom line is that there’s simply no one solution for everyone. Every retailer has a different set of objectives and challenges, influenced by regulations, technology and costs, but ultimately driven by the evolving needs of the markets they serve.

To take a deeper dive into our discussion, be sure to watch the full E360 Forum session.

 

Beyond Saving: What’s Next in Supermarket Power Management?

JamesJackson_Blog_Image James Jackson | Business Development Manager
Emerson Commercial & Residential Solutions

Last fall, a gathering of food retailers, industry professionals and energy experts converged in Houston for our latest E360 Forum. This daylong event was packed with the latest news, views and best practices on hot-button industry issues: regulations, emerging technologies and more.

Matt Smith, project manager for San Diego Gas & Electric’s Emerging Technologies Group, and I explored fresh ideas on what the future holds for supermarket power management. What follows are just a few of our observations.

Future of lighting rebates dim

Utility incentive programs for food retailers, in all markets, are changing. Lighting upgrades and retrofits fueled by rebate incentives were once low-hanging fruit for commercial and industrial consumers alike. However, laborious rebate application processes have contributed to waning interest and participation — especially among food retailers. Policy and regulations have also had an impact. As CFL and LED technologies become standard, rebates are no longer seen as necessary to incentivize adoption and won’t help utilities reach their energy-savings targets. Now energy providers are looking for other more innovative and targeted ways to incentivize efficiency.

Collaboration key to more customer-centric incentives

Admittedly, supermarkets are an underserved market for utility companies. There are simply not a lot of programs designed with the distinct needs of grocery retailers in mind. However, Matt thinks this is changing.

“We’re moving toward a more vertical approach on how we run programs in the sense that we’re serving a customer segment rather than a [category] like refrigeration … That will lead to programs that are better suited for specific customer segments like supermarkets or convenience stores.”

Matt went on to say that utilities want to hear from food retailers. They welcome the opportunities to connect and collaborate — either directly or virtually. Many offer cooperative bodies, online forums and other ways to engage. In California, utilities and other energy professionals have created the Emerging Technologies Coordinating Council (www.etcc-ca.com) as way to collaborate, develop and facilitate new and emerging technologies. Other regions offer similar resources and channels.

Pay-for-performance programs offer opportunities for efficiency and innovation

Pay-for-performance programs are another relatively recent energy-efficiency trend — one that doesn’t rely on rebates or other incentive-based equipment purchases. It allows participants to identify various energy-saving measures. Payments are made over time and are based on actual energy savings measured at the meter.

The beauty of pay-for-performance programs is that they can offer an integrated, more holistic approach to energy efficiency. Savings can come from building retrofits and equipment upgrades as well as from behavioral or operational and maintenance activities. These programs also shift the responsibility for energy savings from the utilities to energy-efficiency project implementers — and can be real incubators for innovation, efficiency and new technologies. Less prescriptive and more proactive, they offer greater opportunity for collaboration and invention.

Power markets and effective demand management

Many utilities are incentivizing commercial and industrial customers to participate in demand management/demand response programs. These are developed to cut electric consumption during peak times of the day when electricity is in high demand. Effective demand management rewards customers who can conserve when the grid is taxed the most. While a proven practice in other industries and abroad, these programs are not commonly employed among food retailers in the U.S., even though the opportunities and technologies are available.

The high usage of electricity by supermarkets makes it very attractive to participate in these programs. However, reliability and flexibility in a supermarket’s HVACR and energy requirements are absolutely essential for success. Technologies like today’s smart refrigeration systems and thermal storage are ways to optimize thermal potential by shifting electricity usage at expensive times to lower-rate periods.

More grocery retailers of today are looking hard at current HVACR systems and exploring strategies and technologies to shift energy consumption without compromising food safety. We’re excited about the possibilities.

As I shared, “Demand management is becoming a really big deal using supermarkets. I use the term ‘virtual power plant’ pretty easily in this conversation. If you’ve got a flexible store and can provide thermal storage, you could actually use that store as a virtual asset for the utility. [It creates] a kind of push and pull with the power demand … All this stuff is extremely exciting, especially in this segment or business.”

Demand management programs and today’s power markets represent a real opportunity to generate revenue by using thermal capacity, transforming your energy-eating equipment into an energy asset.

To learn more about any of these programs and the emerging technologies that are driving them, watch the full E360 Forum presentation.

Refrigerant Rulemaking in 2019

RajanRajendran2 Rajan Rajendran | V.P., System Innovation Center and Sustainability

Emerson Commercial & Residential Solutions

While the phase-down of hydrofluorocarbon (HFC) refrigerants is underway globally, federal regulatory uncertainty and state-level actions in the U.S. continue to raise many questions in our industry. Our latest E360 Webinar presented the latest developments in this dynamic area in hopes of clearing up some of the confusion. View the webinar in its entirety.

Along with my Emerson colleague, Jennifer Butsch, regulatory affairs manager of air conditioning, I recently presented the latest information on refrigerant regulations and rulemaking. The primary objective of these activities is to reduce the use of HFC refrigerants with high global warming potential (GWP), and at the same time, introduce lower-GWP alternatives. For those of us in the commercial refrigeration and AC industries, this transition impacts many of our most common applications.

Here’s a summary of our discussion.

Kigali Amendment takes effect

To put these matters into their proper context, it’s important first to understand the global regulatory driver of the HFC phase-down, the Kigali Amendment to the Montreal Protocol. This proposal was agreed upon at a meeting of 197 countries in 2016, and has since been ratified into law by more than 65 countries, including European members, Canada and Mexico.

While the U.S. has yet to ratify the Kigali Amendment, its phase-down guidelines went into effect for participating countries as of Jan. 1, 2019. However, this doesn’t necessarily mean its impacts are not being felt in the U.S., particularly in state-level initiatives to meet environmental targets.

California adopts SNAP rules, plans further reductions

While the Environmental Protection Agency (EPA) SNAP Rule 20 has been vacated and Rule 21 remains in litigation, California has adopted these rules into law. Effective Jan. 1, R-404A and R-507A are not allowable in many commercial refrigeration applications, including: supermarket central systems, remote condensing units and stand-alone systems. Essentially, this upholds previous SNAP 20 rulemaking and prevents operators in the state from using high-GWP HFCs. But this is just the first of many steps.

California is also adhering to the longer-term HFC phase-down schedule for commercial refrigeration and AC as outlined in SNAP Rules 20 and 21. In addition, the California Air Resources Board (CARB) has been tasked with reducing HFC emissions 40 percent by 2030 from the state’s 2013 baseline level — a target that’s very much in alignment with the Kigali Amendment’s HFC phase-down recommendations for the United States.

Achieving these levels will require new rulemaking in accordance with CARB’s short-lived climate pollutant (SLCP) reduction strategy. CARB is planning on releasing a final rule toward the end of this year. In the meantime, they will conduct a series of public meetings for both AC and commercial refrigeration stakeholders. Emerson strongly encourages you to participate in these meetings to make sure your questions and concerns are addressed.

Other states join the charge

While California appears to be taking the lead on domestic HFC phase-down efforts, there are also many other states making commitments to climate change initiatives, including the reduction of HFCs.

The U.S. Climate Alliance now includes 21 states; combined they make up 49 percent of the U.S. population and 50 percent of the gross domestic product (GDP). We believe that it is in our industry’s best interest for these states to follow a united course of action, rather than a patchwork of individual state mandates.

Other key webinar takeaways

Jennifer and I also discussed many other important developments pertaining to the use of lower-GWP alternatives, including:

  • Applications, availability and GWP ratings of A1, A2L, A3, B2L and natural alternatives
  • Update on refrigerant safety standards of A2L and A3 (flammable) refrigerants
  • How refrigerant standards affect equipment, applications, building codes and local codes
  • Lower-GWP refrigerant impacts on refrigeration architectures

To learn more about these topics, please view this webinar in its entirety.  

Connected Kitchens Require Clear Project Scoping and Definition

Paul_Hepperla Paul Hepperla | Vice President, Solutions Integration – Foodservice

Emerson Commercial & Residential Solutions

I recently presented an E360 Webinar that discussed “The Risks and Rewards of Connecting Commercial Kitchens;” this blog is a commentary on aspects of that discussion. Click here to view this session.

According to the Gartner Hype Cycle, the concept of the Internet of Things (IoT) is one that’s full of promise and currently resides in their “peak of inflated expectations” stage. By their estimations, there will be 20 billion connected devices by 2020, and IoT will achieve mainstream adoption nationwide within 5–10 years. Today, however, only 26 percent of U.S. companies are successful with their IoT initiatives; 60 percent believe that while IoT looks good on paper, implementing it is more complex than expected.

In a recent E360 Webinar titled, The Risks and Rewards of Connecting Commercial Kitchens, I explored the current state of IoT in the foodservice sector from both equipment manufacturer and end user perspectives. While many companies are participating in field trials to test the potential business applications of IoT, the majority of these efforts are taking place without a defined strategy or comprehensive understanding of how IoT may fundamentally change their respective business.

From my experience, I’ve found that this lack of direction is the culprit behind most unsuccessful IoT initiatives. Remedying this problem is often as easy as answering a simple question: “What problem are we trying to solve?” Selecting a relevant problem that’s negatively impacting the business or its key stakeholders is a logical start.

But seeking data without regard to what value it can bring is a problem shared by many early IoT efforts. While it’s tempting to let the availability of the technology completely dictate the solution, the result is what I refer to as “the internet of broken things.” So how do we avoid these pitfalls?

In the webinar, I discussed what constitutes a successful IoT strategy and introduced an approach that Emerson refers to as “smart systems.” Smart systems consider the interdependence and relationships between all aspects of a connected offering that includes technology while also factoring in user experiences, business models and the specific markets we’re serving. For example, in foodservice, we often reference the concept of a connected kitchen. Taking a smart system approach to a connected kitchen means understanding various factors:

  • How end users and operators interact and interface with the connected equipment
  • The decentralization of brand control with respect to how operators may interact with equipment, which can complicate data collection
  • The relationship between manufacturer and end user, including the potential for commercializing a service model
  • Manufacturer visibility into equipment performance to allow for continuous design improvements

You can see that even before entering into a discussion of specific technologies, IoT represents a significant transformation in the way foodservice operators conduct business. For manufacturers, it’s an opportunity to gain tremendous insights into their products. But until IoT addresses the most critical problems in the foodservice sector, the opportunities for widespread adoption will be limited. Emerson not only has the technologies to implement connected kitchen solutions, we have a deep understanding of what manufacturers and end users need to create successful IoT programs.

[New E360 Webinar] Regulatory Update: Learn the Latest Rulemaking on Refrigerants

RajanRajendran2 Rajan Rajendran | V.P., System Innovation Center and Sustainability

Emerson Commercial & Residential Solutions

Join us for our next E360 Webinar that will take a look at the latest refrigerant regulations impacting commercial refrigeration and AC applications on Tuesday, February 26 at 2 p.m. EST/11 a.m. PST for this informative update.

One of the greatest sources of uncertainty in today’s commercial refrigeration and AC industries is the topic of refrigerants. Regulations continue to evolve quickly, primarily aimed at phasing down the use of hydrofluorocarbon (HFC) refrigerants with higher global warming potentials (GWP), which are used in many applications. What’s particularly challenging is how these rules can differ from state to country to region, making it difficult to adopt a common standard.

Globally, these efforts are spearheaded by the Kigali Amendment to the Montreal Protocol, an international treaty in which participating countries are working toward a shared goal of HFC phase-down via mutually agreed upon timelines. In the U.S., the regulatory climate continues to be unpredictable, but states such as California are leading the charge on establishing regulatory standards.

With new updates taking place seemingly every month, it’s becoming increasingly difficult to stay informed. That’s why we’re dedicating our next E360 Webinar to clearing the confusion in this turbulent regulatory climate. This webinar will be hosted by Emerson’s leading experts on refrigerant regulations: Rajan Rajendran, vice president, systems innovation center and sustainability; and Jennifer Butsch, regulatory affairs manager, air conditioning. Jennifer will present the latest updates to the refrigerant rulemaking while Rajan will offer his extensive insights on how to prepare for what’s on the horizon.

Attendees will learn:

  • How recent rulings have changed the scope of the Environmental Protection Agency’s (EPA) Significant New Alternatives Policy (SNAP) program
  • How the California Air Resources Board (CARB) continues to leverage the original SNAP ruling as the foundation for its regional HFC refrigerant phase-down efforts
  • An update on the potential for U.S. ratification of the Kigali Amendment to the Montreal Protocol
  • Status of the standards governing charge limits and safe use of A2L and A3 refrigerants, including the potential impacts on building codes
  • How the vacating of SNAP Rule 20 potentially impacts Section 608 in terms of governing leak repair and maintenance requirements
  • Availability of new low-GWP refrigerants

Register now for this informative and free webinar.

%d bloggers like this: