Algramo is representative as it proposes a new way of selling basic products in neighborhood stores by breaking the traditional logistics chain.
Algramo seeks to solve the “poverty tax” which occurs when families, due to liquidity problems, can not buy in large formats and buy in small formats which are up to 40% more expensive due to logistical inefficiencies, marketing and packaging.
This problem affects 70% of the population in Chile and up to 85% in Latin America. The system is making the poorest people pay more day to day for products of first necessity.
To achieve this disruption is that we co-create a unique dispensing machine for bulk food products for sale with reusable containers for neighborhood stores (Mom and Pop´s stores).
In this way today Algramo commercializes in more than 60 stores products such as rice, lentils, beans and chickpeas through dispensers and specially designed reusable containers.
On the other hand, this sales system seeks to modernize the traditional channel which, due to its low level of innovation and competitiveness, has been losing space in front of large supermarkets such as Walmart. The neighborhood stores are very important for the community because it is one of the few spaces that exist to build the social capital and it where the community bonds are force, and to keep them alive, they must be more competitive.
Finally, the new sales system has a very significant environmental impact since when working with reusable containers, the amount of plastic that is produced and thrown to the planet is diminished.
This is why we believe that the sales system designed by Algramo represents a disruption to the traditional selling system of basic products. We have co-design the machines and system with the shopkeepers in order to include all the insights that they have about the users habits. This explain a big part of the success of the proposal.
We start with food and we are ready to launch our dispensers of household cleaning products for detergent and dishwashers. Our plan is continue designing and disrupting the supply chain in order to eliminate the process that aggregate cost but not value to the consumer and help them to overcomer the poverty tax and supporting the local businesses.