Last Friday 29th of January ICEX started their webinar series off with a bang, with their latest virtual offering; “The Spanish foodtech sector – situation and opportunities for its 2021 internationalization” in which we had the pleasure to attend.

The virtual event was organized by ICEX Spain Export and Investments not only to present their annual foodtech report ,the first ever analysis of the country’s food ecosystem and highlighting the current state of the industry as well as new challenges facing it today, but also to look at the different tools that the Spanish agency can offer to companies to power their 2021 internationalization, promoting dialogue between various agri-food tech protagonists, accelerators and foodtech companies with the joint mission to drive innovative force and competitive advantage to position the country as an international reference in the sector.

The agreed consensus during the webinar elevated Spain as an emerging and solid Agrifood-tech powerhouse. As a world leader in agri-food production and boasting a solid gastronomic background the country has managed to combine the works and research of a number of different national food vehicles in order to propel new food innovations over the last few years, in turn enabling new emerging startups and the application of the highest form of cutting-edge technology.

In order to retain worldwide prestige the development and application of new, cutting-edge technologies to provide added efficiency, value and sustainability to the food value chain, and to arouse the interest of investors, is necessary, and not only at national level. Spain´s food system continues to not only embrace innovation and increase resilient food production, but to further the amalgamation of research centres, innovative startups, established companies, universities and of course, investment vehicles, to offer itself a clear cut vision for the future and its realization as the next foodtech nation, worldwide.

A number of important decision makers and industry experts joined the webinar, who all offered their opinions and insights into the keys behind investing in Spanish foodtech worldwide as well as the importance of promoting Spanish foodtech as a whole and its players and developments.

Present was Alberto Sanz, financing and investor relations director from Invest in Spain. As an expert in both national and international investment, he offered his insights into the importance of promoting national programs that help group ecosystems at sectoral level and to facilitate the overall contact that Spanish agents have with international investors. He also touched upon the services the country offers to foreign investors who wish to establish their business in Spain to help champion the reputation of the country as the foodtech nation to invest in. 

Maria Naranjo, director of Food, Wine and Gastronomy also joined us from ICEX itself, ready to introduce us to the new FoodTech portal from Food and Wine Spain asserting that it was a fundamental move in the sector´s international visibility. Also present from ICEX was Jorge Alvar, director of infrastructure, health and ICT who looked at a number of innovation and accompaniment programs to help the sector’s overall international growth.

Want to know more? You can download the exclusive report “Foodtech in Spain: fueling a more sustainable and efficient Food System” here and stay tuned for more important takeaways from ICEX´s webinar soon.

 

 

[button link=”https://www.foodswinesfromspain.com/spanishfoodwine/global/whats-new/news/new-detail/foodtech-in-spain.html” color=”black” newwindow=”yes”] ICEX REPORT[/button]

 

 

Investing in Agri-Food Tech: Building Resilient Food Systems

As the world begins to pick back up the pieces after Covid-19, investor mindsets are changing & the global business landscape is accelerating digital transformation and unlocking opportunities for innovators offering solutions to new challenges we now face in the food supply chain. One bright spot has been the increase in agri-tech investment due to the opportunities and power it offers to a now fragile food supply chain as we search for ways to adapt through recovery and growth.

Andy Ziolkowski, Managing Director of Cultivian Sandbox, which invests in innovative food and agriculture technology says that; “Given the disruptions in food supply due to the pandemic, we have been looking at areas including indoor farming, logistics, food safety and traceability. Software businesses in both  agtech  and  foodtech  are more attractive. In general, it seems these businesses are less disrupted by social distancing and changes in their business operations.” 

Without the effects of covid, farmtech has seen an uptick in investment; according to Agfunders 2020 Farm Tech Investment Report agtech funding is up 370% in the last 6 years but as COVID19 uncovers a fragile supply chain with food shortages, production halts and transport restrictions at the forefront new trends have been emerging to gain investor interest. Agtech startups are developing disruptive new solutions to redesign a more resilient food supply system for our future across the industry, including in robotics, blockchain and automation. 

 

 

Challenges & solutions in post-covid agtech

With agriculture renowned as being a more traditional sector, what challenges are startups currently facing in breaking into the industry? 

 

 

 

 

 

From agriculture to agtech: farmers first

Although for many robotics and automation may seem like a futuristic concept, farmers have been powering technology for years. Even traditional farmers are used to working with machines. However, as technology becomes faster and more complex, the farmer must always be at the forefront of its implementation. Is it easy to understand & adopt? Does it really solve the problem at hand? Its for this reason that many larger companies are seeking collaborations with more agile-minded startups that always start with the farmer. VC Spero was impressed with agtech startup Tortuga, as they focus solely on working hand-in-hand with farmers and adapting to their feedback.

“The tech industry has not had much to offer farmers, frankly. Farmers are really good at what they are doing and it’s only recently that tech has gotten to the point that we can do very fancy machine vision stuff to help, whether it’s identifying disease via drones or finding perfectly ripe strawberries and picking them.” – Marc Tarpenning, co-founder of the renowned electric vehicle manufacturer Tesla & part of the board at Tortuga. 

 

 

Localized supply chains

Globalization will be challenged and this is pivoting thinking (and funding!) to a more localized supply and distribution system. The main trends supporting this shift are supply chain assurance, food security, and geopolitical reliance. 

The Agricultural Outlook report 2018-2027 published by the Food and Agriculture Organization (FAO) of the United Nations states that of the total land area of the MENA region only one-third is agricultural land (cropland and pastures), and only 5% is arable (cropland). The rest is either urban or dry desert. This means a strong dependency on import.Singapore is the second most populated country in the world yet relies almost solely on importation to feed its population. Southeast Asia food tech accelerator GROW recently announced the launch of a new program focused on food security. Branded Singapore Food Bowl, the program invites startups working to build a more decentralized agrifood ecosystem.

 

 

The digital revolution

With clients and farmers further away from each other than ever, there is an increasing need for more digital solutions across the industry. Startup Farmobile sells hardware to aggregate data coming from farm equipment and stores it for farmers to share with advisors or even sell it to third parties through its data store. In recent months the startup has seen a spike in demand and CEO Jason Tatge believes this is directly tied to Covid19, with farmers wanting to follow a digital strategy better positioned to deal with the long-term effects of the pandemic. 

“In times of social distancing, there are some aspects of technology that will be more suitable than others. For instance, our technology is very low-touch and built for virtual data collection and sharing between farmers and trusted advisors. It removes the need for an agronomist to go out in-person to get a jump drive,”  Tatge told AFN.

 

Fortifying a fragile food system

With food supply being stretched across the world, now is the time for agtech to have its moment. The need to do more with less has never been greater. With many restaurants and foodservice establishments closing amid covid, many farmers who relied on this supply chain were left in limbo, with tons of produce going to waste.

Startup Clean Crop technologies that aims to prevent crop loss and extend produce shelf life recently secured $2.75 million in seed funding. Their sustainable powered solution zaps the air around food after harvest with electricity to create ionized gases and after processing, the gases revert back to the air without leaving any harmful residues on produce.

The company is part of a collective of emerging startups raising funds in an effort to reduce food waste. Tropic Biosciences recently raised 10 mil to use its gene-editing technology including CRISPR to optimize coffee and banana crops.

 

 

Corporate input

It isn’t just startups making a B-line for agtech, increasingly more corporates are seeking to give back to the land with more sustainable practices as consumers care more about the environment than ever. The good news for agtech startups is that their target end-users provide an essential function: growing food. There will always be demand for food and now larger brands want to work with these startups to offer the added benefit of sustainability to their consumers. 

Multinational food manufacturer General Mills recently partnered with farmers and suppliers in an attempt to implement more sustainable practices on 1 million acres of soil, including for oats, dairy and wheat by 2030.  

“It’s a big deal for food companies because we make food that relies on agriculture. So when we think about what we need to be doing, and the fact that so much of the landscape is actually being degraded right now, it’s an opportunity to do it differently,”Shauna Sadowski, head of sustainability for natural and organics at General Mills.  And General Mills isn’t the only company promising to carry out more sustainable operations, a handful of big industry players such as Hormel Foods and Danone North America are promising their clients to focus more on practices that are nicer to our planet by investing more in regenerative agriculture. 

Danone recently partnered with food tech startup Brightseed for example to research the health potentials of some of its key plant-based ingredients, starting with soy. Brightseed is a biosciences and precision nutrition startup that’s looking into plant nutrients for human health using AI.

 

In our next webinar we will be delving into all things agtech, including the keys of investing in the space & the companies leading this change. We’ll be joined by industry experts Anne Greven, Global Head of F&A Innovation Startup Rabobank, John Friedman, Director of AgFunder Asia & our very own Jose Luis Cabañero CEO of Eatable Adventures. Secure your place this 2nd of July at 15.00 (CEST) 

SIGN UP HERE!!

 

 

 

 

 

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Accelerating the growth of the Food Industry: The power of open innovation

Open innovation is a formula that is gaining increasingly more strength and traction as a model for attracting talent, technology and disruptive business models. By embracing open innovation companies can tap into new powers to transform their organizations, reaching objectives that would otherwise be unattainable without the use of these methodologies.

One of these methodologies is what we call Corporate Venturing, the streamlining of innovation processes within larger corporations, through the introduction of agile startups in the development of new products. It offers larger teams the opportunity to closely understand the needs and demands of consumers and provide untouched know-how for a more flexible and efficient adaptation to said needs, in both production and distribution capacities.

We held our own webinar on Open Innovation with our partners Eatable Adventures, who invited some of the leading companies in the industry such as Mondelēz International and Sainsbury’s. In the insightful webinar episode Gil Horsky, Innovation Director of SnackFutures from Mondelēz International, and Milena Lazarevska, Head of Future Brands at Sainsbury’s explained the advantages of working with startups from their direct experience. Horsky acknowledged that “working with startups is very important,”adding that within the last few years it has been growing as a “top priority”. Lazarevska agreed, stating that establishing agreements with startups allows corps to gain a quicker turn around on product tweaks and consumer needs.

At Eatable Adventures we understand the importance of open innovation and would like to delve further into this topic to gain even more insight into the impact of corps working with startups and vice-versa. We have the pleasure of working with two of the largest corporations in the food sector: Alianza Team® and Calidad Pascual

 

Alianza Team® and their experience in the lipids sector

Alianza Team® a leading Colombian company in the food sector, is committed to the well-being and future of food and works to develop lipid-based food-tech products and solutions with high nutritional components for a range of food spaces like bakeries and restaurants.

Alianza Team® aims to nurture a better future and has established three business units: Team Foods, Team Solutions and Breden Master. Located in Colombia, Alianza Team® also boasts a significant presence in Chile and Mexico while working on developing ambitious expansion to wider markets. They are currently launching their next mission in a call for projects; Hack the Food System, which focuses on seeking the most disruptive foodtech startups across the lipids ecosystem which are capable of providing innovative responses to the new challenges we face in the food system, including new processes and technologies for nutrition improvements, food functionality and production sustainability.

Alianza Team® invests in startups through albora ™; its corporate private equity fund.

 

Calidad Pascual: building the future of food

Calidad Pascual aims to “Give their all for the future of food”. A company with a strong family essence, led by solid values and a certain sense of transcendence, which provides consumers with food products and services that help improve the well-being of society.

Pascual Innoventures is a Calidad Pascual open innovation vehicle to immerse yourself in the entrepreneurial ecosystem and create alliances with startups that share their philosophy; all while anticipating global food needs. For them, this philosophy is fundamental; a culture that begins with the premise of creating value wherever they can. Its about giving the consumer a memorable experience and, at the same time, contributing to the survival of our planet.

 

In Eatable Adventures next webinar “Accelerating the growth of the Food Industry: The power of open innovation”, which takes place next Thursday June 18th at 17:00 (MAD), 10:00(BOG), 11:00(SCL), we will be joined by Sejal Ravji, Open Innovation Director at Calidad Pascual; María Paula Ríos, Innovation & Strategy Director at Team Foods and José Luis Cabañero, CEO & Founder of Eatable Adventures, to share their companies experiences in open innovation.

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