2. My background
โข Economist, PhD in food innovation
โข Business developer and advisor
o Seafood advisor
o Strategy and innovation advisor in various industries, including food
โข Seed venture capital
o Invested in approx. 100 new companies, ITC, food technology etc.
โข Startup GEMBA Innovation in 2003 with Sรธren Kielgast
o Innovation, innovation management, business development, strategy
o Sector focus: Food, construction, financial services, public-private etc.
o www.gemba.dk
โข Startup GEMBA Seafood Consulting in 2007 with Sรธren Kielgast and Jens Mรธller
o Specialized in seafood โ market analysis, innovation, strategy
o www.gembaseafood.dk
โข Startup 8ideas in 2012 with Sรธren Kielgast and Maximilliano Stern Dahl
o Software company developing/selling idea management tools
o www.8ideas.dk
3. GEMBA Team & Focus
Innovation management, idea and concept development
โข Ideation workshops
โข Development of innovative models and business processes
โข Project management, implementation, training
Strategy and Business Development
โข Development of vision, goals, strategy and values
Market Research and Analysis Projects
โข Quantitative analysis, statistics, etc..
โข Qualitative analysis, lead-user studies, interviews, focus groups,
observation studies
User-Driven Innovation
โข Lead-user analysis
โข Observation Studies
โข Workshops with involvement of customers, users, experts
Sector core competencies
โข Food industry
โข Maritime sector
โข Building/construction industry
โข Retail, finance
5. But the growth will mainly be in new markets
โข A 70 percent increase in food production is needed to meet population growth โ
mainly in Africa, BRIC (ex Russia), SE Asia, Mexico
6. World food production
OECD-FAO Report (2013):
โข Growth in global production towards 2022, but at a lower level than the previous decade. Most of production
gains due to (low) productivity
โข Robust demand and low productivity keep commodity prices at current high level
โข China will influence the food market, remain self-sufficient in main food crops while increasing trade in
selected commodities
โข Poultry leads meat consumption growth, growth in fish production is from aquaculture
โข Developing countries lead growth in global milk production; developed countries dominate exports
Source: OECD & FAO 2013
7. Matured industries and markets
โข Take a look at the age of many of the dominating brands โ
they are old!
โข Cooperatives (from the 19th century) still dominate dairy,
grain and meat
โข In seafood two handfull of companies dominates world
production
โข Retail chains are created during the intro and growth of
supermarkets (1950s-60s)
The last decade:
โข I see the food sector as much more mature than many other
sectors โ such as telecom, ITC, pharma, industrial goods etc.
โข Sector has in many years lacked start-ups in the โtraditionalโ
value creating parts
Est. 1903
Est. 1892
Est. 1847
Est. 1866 Est. 1869
Est. 1906
Est. 1930
Est. 1919
Est. 1868
Est. 1837
Est. 1911
8. Powerful retail chains continue to grow and dominate the food market
โข The largest retail chains are among the worlds biggest companies
โข Retailers cooperate in purchasing networks to lower prices further
โข A few trends:
o Discount has won in the last decade
o Stable premium market (ie polarization)
o More private labels (retailers own labels)
o Cost-cutting, promotion
o Cross-channel, technology
โข Its a needles eye to come through โ look for other channels if you can!
9. Regulation plays a big role in food
โข Food safety and traceability
โข Declarations and claims
โข Trade tariffs
โข Animal welfare
โข Production quotas and subsidies
12. Entrepreneurs and capital are flowing into food driven by technology
What sucks in food
Growing population
Unmet consumer demands
Food waste
Food safety
Distribution of fresh food
Productivity and innovation pressure
(competition)
Do cool shit opportunities
New and active ingredients
Technologies for analysing and
extracting active compounds
New production processes
Web/IT solutions
Smartphones/tablets penetration
New consumer preferences
13.
14. Different types of food start-ups ๏ Different roadmaps to success
New start-up in the food sector
- What is your uniqueness?
Product innovation
Technology/process
innovation
Business model
innovation
Science-based
Often life-science, long
time to market, IPR,
food-regulation, capital
requirement, โpharma-
likeโ
Market-based
Fast to market,
uniqueness, scalability,
ongoing innovation,
brand, business model,
user-driven
Making production at
faster/lower cost and
with better quality
Potential big gains due
to scalability
Not trivial to implement
Web-enabled,
combining IT and food
Matching users and
producers
Solving challenges of
transport and logistics
16. Case market-based product innovation: RAW BITEโข
RAWBITE REACHES THE TOP
Reaching the top of Mera Peak, Nepal (6,476
metres), mountain climber and adventurer
Kenneth Lagstrรธm
Rawbite was founded in Denmark by three entrepreneurs who seeked a natural energy bar with no additives and a good
taste. The idea behind Rawbite was to create a simple, honest and healthy product easy to bring along and enjoy anywhere.
This idea resulted in the organic fruit and nutbite, Rawbite โ and with considerable succes since. www.rawbite.dk
18. Case science-based technology/process innovation : Dacofi
A new faster, cheaper and more compact filtration process to be used in beer brewing, potato-powder
production etc. Developed by researchers at DTU Food, spin-out with patent, many years underway.
www.dacofi.dk
19. Case business model innovation: The Food Assembly
New extremely successfull business concept for matching local food producers with local customers based
on lokal networks, social media and a comprehensive web-platform. New, innovative business model where
revenue is shared among local hosts and the mother compant The Food Assembly. Click picture for video
www.thefoodassembly.com
20. What sucks?
Science-based Product
Innovation
Business Model
Innovation
New technology โ But
what problem can we
solve ๏ Business idea
Put it out and iterate Ramp-up
Get the best people
- and money
How do we solve the
problem with technology
๏ Business idea
IPR
R&D + Business team NPD and learn ๏
Testing with
industry partner etc.
Venture
capital
Different roadmaps to success โ two examples
What does food
regulation say?
Value
proposition
Building B2B
sales channels /
partnerships
Serial entrepreneur
+ IT (+industry) Business
angel
(industry)
Building B2C
sales channels
Scalability
Business
Plan
Sell and learn
Commercialize
Commercialize
21. Understand the food value chain
As in any business: Its deadly important to understand YOUR value chain
Some key questions you should ask yourself:
โข Where in the value chain are your idea?
โข Which value to your offer the value chain โ and to whom?
โข Are you playing with or against the players in the value chain?
โข What will the reaction from the others in the value chain be, if your idea is realized?
22. Example Dairy
โข If I suggest a new enzyme for
making a nutricius and
healthy energy yoghurt โ how
would that influence the
value chain?
โข On the surface โ not much โ
but what if it requires:
o New processing equipment
from another supplier
o Different packaging
o A new sales channel to for
example fitness centres,
which imply new distribution
partners
โข Then I dramatically need to
change the value chain
Enzymes/s
tart-up
New supplier of
equipment
New packaging
partner
New distribution
partner
New sales
channel
New
consumer
group
23. Now we should be cautious about too many food ventures!
Dont forget!
โข A compelling value
proposition
โข Uniqueness
โข Solve users jobs-to-be-
done
โข Scalability
โข Competencies/team
โข Realistic budget and
roadmap