Last Thursday, July 2nd we added another edition to our series of international webinars as we delved into the power of agtech investment to building a more resilient food system amid the covid crisis. In our latest offering Investing in Agri-Food Tech: Building Resilient Food Systems we were joined by some of the agtech industry´s biggest experts including Anne Greven, Global Head of F&A Startup Innovation at Rabobank, John Friedman, Director of AgFunder Asia & our very own José Luis Cabañero, CEO of Eatable Adventures, who offered their insights into the keys behind investing in agtech, the main drivers of change and which companies are currently leading this new agricultural revolution.

As the covid crisis affects every part of the food industry, investor and entrepreneur mindsets are changing and the pandemic has uncovered a fragile and overly traditional food supply chain that begs for change. Agtech offers new power and possibilities to leverage disruptive solutions. In 2019 startups raised approximately 20 billion worth of investment as they develop new solutions towards redesigning a more active supply system across the industry including in blockchain, automation and robotics.

Here are the key takeaways from the webinar in case you missed it:

What are the main drivers for agtech investment?

For John Friedman there has been a significant increase over the years, specifically compared to the year 2015 when agrifood made up only 5% of VC funding, which is miniscule if you consider the industry employs 40% of the world’s population. John stated that “we all rely on food and sustainability” and the lack of awareness and attention the sector has garnered is what motivated AgFunders founders to launch the initiative. He added that we are currently facing massive challenges as a food supply chain, including in population growth, climate change and changing consumption patterns.

This is something Eatable Adventures Jose Luis agrees on, adding that these factors were definitely the kickstarters to realising the need for quick actions towards producing a kinder way to make food for our planet. We´ve also seen a spike in agtech players enter the market. For example, when plant-based pioneers Beyond Meat announced they were going public people realised that agtech investment was accelerating and a space definitely worth investing in.

Another driver for investment has also been the outbreak of the covid crisis, as it uncovered a stressed-out supply chain begging for change. Anne Greven added that just now we are truly beginning to see more investors and entrepreneurs interested in the space, including governments and universities who are also recognising the need for change.

Singapore is a small country which relies on 90% of food imports to feed its population. With covid restricting everything from transportation to social distancing, importers were left with tonnes of food waste after supply and demand issues, which is another reason for creating a more nimble food system, and John Friedman believes agtech has the power to do so.

“Perhaps one of the silver linings from this experience is a sort of awaking around the fragilities of how we as a society live our lives and how we have taken so much for granted” – John Friedman.

How is agritech innovation adding value to the more traditional farming and agricultural practices?

“More and more is moving faster than we realise–more tech is being implemented” – Anne Greven.

The agtech space is definitely considered one of the more traditional spaces in the food industry. For Anne Greven one of the benefits of agritech innovation has been “creating greater efficiencies in the farms”. Technology offers more margins for farmers and those are the innovations poised to take off to help create a more sustainable food system.

It was agreed between our panelists that the main factor we are seeing, and that is securing the most support and funding, is low tech but high impact development and there are many corporations looking to help their farmers implement such technologies. John offered community farmer apps as a prime example, which help in a small way by “putting the power back in the farmers hands..and cutting out the middleman”.

How do they compare in terms of profitability, complexity and availability of quality deal flow to other areas in foodtech?

“It’s a complex space that requires some solid engineering” – John Friedman.

The agrifood space is implementing increasingly more technology making a bigger market year on year. Jose Luis believes that even more doors of opportunity are being opened and that the “return is similar if not better, we think, than other areas”. He assures that the technology implemented doesn’t need to be that strong; “you can make big things with very simple solutions”.

In Rabobank the volume of applications are growing each year, and many agtech startups are able to secure financing when other spaces haven’t. In fact, this years 300 alumni alone bagged 120 million in funding. People are recognising this is a growing area worth investing in, and the greater implementation of tech, the greater return for the investor. John adds that although AgFunder has always been typically focused on the upstream, he has started to recognise the commercial opportunity of downstream areas like CPG, alternative proteins and foodtech over the past few years and admits the investment landscape has shifted across the food system.

What are the most relevant and promising areas worth investing in?

For Anne, one of the most exciting emerging areas is that of carbon trading soil; “the farming and agritech impact (to) reduce carbon emissions..there will be a lot of people looking to invest there”. But she adds that anything offering greater efficiency for the farmer as a general goal will be an area worthy of investment. Since margins are razor thin for farmers across the world, there is a huge need to manage this and give back dollars to the people actually producing our food.

Predictive analytics was also an area of interest, since despite being present in the industry for some years now, data sources are always getting bigger and with more predictive measures now available there are more efficient ways to help farmers than ever before. This goes for artificial intelligence, too. Jose Luis states he’s seen a few companies already giving back to farmers, even a solution as simple as through a phone app where they can download real time data on crop performance and weather patterns. The CEO of Eatable Adventures also believes that products offering higher nutritional values are one to watch.

“We also believe that this industrialization approach is going to be a great area getting production closer to consumers”.

Missed this webinar? Check out the video 

On Thursday June 4th, we launched the latest edition of our series of international webinars on innovation in the food sector, with an aim to discuss the most relevant initiatives facing our food system today.

In the webinar “Riding the Plant-Based Wave: Leading the Food Revolution” we were joined by industry experts Nir Goldstein, Managing Director-Israel of The Good Food Institute; Elizabeth Gutschenritter, Managing Director, Alternative Protein at Cargill and José Luis Cabañero, CEO of Eatable Adventures, who shared their visions and insights into the present and future of alternative protein.

Nir Goldstein explained that one of the main goals of The Good Food Institute is to work on increasing the production of plant-based meat substitutes, to ensure they offer sustainable products that mimic the taste and texture of their animal protein counterparts. 

Elizabeth Gutschenritter stated that for Cargill an important objective is to offer clients and their customers food in a more sustainable and safer way. “We work throughout the supply chain to meet this need, and we have seen that protein consumption has increased worldwide for years,”.

Here are the key takeaways from the webinar in case you missed it:

Increased demand for plant-based products in recent years

For Nir Goldstein, there are four main reasons for this increase: economic, health, environmental and animal welfare awareness. According to his forecast by 2030, these products may occupy 10% of global meat market consumption. “This sector has attracted more investment this year than in all of last year,”.

Elizabeth Gutschenritter agreed and added that this increase resides in the interest of consumers demanding more sustainable and healthy products on shelves, although 93% still continue to eat meat.

Startups as an innovation engine

Innovation continues to be vital for corporations which increases the need to collaborate with startups, which offer more agile mindsets and increased ability to adapt faster and more efficiently to consumer demands, essential if wanting to achieve competitive advantages in an often crowded market.

For José Luis Cabañero, mutual support between corporations and startups is imperative to satisfy new consumer demands, adding that innovation and speed are the most important tools today to survive in the market.

Success stories of collaboration between startups and industry in plant-based

One of the collaborative success stories that stands out for José Luis Cabañero concerns the University of Berkeley, which launched alternative protein training programs along with incubation programs for startups in the sector

“There have been a lot of investments in the sector, especially in marketing and in the R&D departments in cell-based and plant-based. Our partners are helping us to bring the product closer to the market ”, acknowledged Elizabeth Gutschenritter.

For Nir Goldstein, the best success stories come from experience and learning that one internalizes when discovering how to move forward in the future. “There are a significant number of products that are in the initial phase of flavor texture adaptation, but are not developed on a large scale. Startups must move from pilot tests to more industrial developments to find out if they like their products on the market or not. ”

Effects of the pandemic on the plant-based boom

Nir Goldstein stated that despite the effects of the pandemic we are still seeing startups securing significant investments which represents a positive trend in terms of funding and growth. “For example, Impossible Food got a half-trillion dollar investment during Covid-19. We see growth in the food sector of 200% that is partly driven by the consumption of alternative protein products,”. 

Elizabeth Gutschenritter predicts that plant-based consumption will increase in the coming months. Why? Consumers are seeking healthier and more sustainable-driven food and this will remain post-covid. To keep up with the squeeze of new consumer behaviour, companies are developing and launching fast solutions, like KFC in China.

Missed this webinar? Check out the video 

We recently launched our series of international webinars where we delve into the main challenges facing our food system during the crisis and welcome some of the most disruptive companies in the foodtech space to offer their insights and solutions

This week we were joined by two companies at each end of the value chain; Mondelez International  as a manufacturer and Sainsbury’s as a retailer, in our latest webinar episode  “Accelerating Food Industry Growth: The power of Open Innovation“. We hosted Gil Horsky – Director of Innovation Snacks Futures at Mondelēz International and Milena Lazarevska – Head of Future Brands at Sainsbury’s who offered insights into the keys to collaboration between corporates and startups, as well as the plethora of benefits for both sides. 

At Eatable Adventures we believe that startups are one of the main agents leading the new food revolution, as the food system is changing so is consumer demand, and during the current crisis it seems to be happening at unprecedented rates. To properly embrace these new challenges and offer viable solutions powering open innovation between corporates and startups is an efficient way to whether the shifts appropriately.

For Gil Horsky working with startups is “very important” and has been “growing as the priority in the last few years”.

Here are the key takeaways from the webinar

How companies engage with startups

There are a number of ways that startups can engage with corporates across the food chain, including through technology advancement, investments and licencing agreements.

Sainsbury’s works with startups “across the business” relishing the search of more distinctive brands to add to their product portfolio. Being the second biggest retailer they offer one of the first opportunities for commercialisation and market traction to new companies through their Future Brands initiative which scouts and incubates new brands.

Positive outcomes from startup/corp collaborations

Collaborations are win-win as corps attract more customers while offering incremental sales for young companies.

While corps add value in the form of investment and R&D support, and just generally tapping into corporate knowledge, startups help address a consumer pain points. Just like Sainsbury’s, it can help establish you as a destination for more exclusive brands as they offer out-of-the-box thinking and refreshing new perspectives. Milena Lazarevska stated that the real benefit is how efficiently they react to consumer feedback and then “how quickly they turn around a new idea”. 

“Exclusive agreements with startups lead to benefits for the corps such as consumer attraction and rapid answer to consumer demands” – stated Milena Lazarevska.

Working with startups in a crisis

The key to working with startups during this time, as Milena Lazarevska stated is to “be a good partner” – be flexible where possible and offer more preferential payment terms, or just be there to help with in issue if you can. It’s important you show you are committed to your partnership and that you are a trustworthy brand that doesn’t run away when the going gets tough.

Gil Horsky said when working together ensure you “set up the relationship in the way you have a big chance of success” – be clear on your objectives, KPIs and future plans. Transparency is the biggest gift – be honest with the startup, if their idea isn’t viable, don’t waste their time. 

Covid has accelerated a shift in trends and companies now need to respond and adapt faster than ever. Trends currently making waves amid covid19 include immune boosting, e-commerce, well-being, food safety and traceability and digitisation across the supply chain. Solution? Find the relevant startups that can help you accelerate these trends in your company. 

Gil Horsky said it’s okay to ask for help in a crisis – reach out to the ecosystem and scope the startups already working on potential solutions. Mondelez recently launched a challenge scouting startups working on antimicrobial surfaces for their packaging as consumers look for safer to eat products.

Startup contributions

How do startups valuably contribute to corporations? Sustainability remains an important issue to be addressed across the spectrum as larger companies become increasingly more responsible, but in order to create a more efficient supply chain corporations must rely on the efforts of the smaller brands they work with for more sustainable operations and incremental improvements to help the planet. Sainsbury’s aims to go net zero by 2040 and as Milena  Lazarevska stated they require “the help of startups in this effort.”

As larger brands currently struggle from staff shortages and logistic constraints smaller companies hold access to an alternative supply base which has offered them a new wave of visibility. Consumers are now interacting more with new brands thanks to increased online presence and bigger in-store baskets. As Gil Horsky said the “inspirational” and “cultural” shift that smaller teams can contribute to corporations is often overlooked. Working with startups allow companies to experience a dose of motivation when they work with more agile minded entrepreneurs and see a product being created and marketed to a supermarket shelf in less than a year.

Missed this webinar? Check out the video