🚀 The food revolution

Published on November 29, 2023

We often talk here about agtech and foodtech. These ecosystems are made of thousands of projects, startups, researchers, and partnerships with large companies. They often point in very different directions (indeed, we may wonder what is common between alternative proteins and agriculture robots), and it is hard to make sense of them.

Today, rather than looking forward, I want to look at both our past and our present to better understand where we are and why there is a need for a food revolution.

First, where do we come from?

In the history of food, we can identify two main food revolutions which paved our evolution from hunters & gatherers to farmers to city dwellers:

1 – The neolithic revolution when humans transitioned from hunting and gathering to agriculture and livestock domestication.

 Counterintuitively to what we may imagine, it negatively affected health. Farmers depended on a single cereal (varying from region to region), had a much less diverse diet (almost always lacking many nutrients), and often faced famines (while our nomad ancestors moved to another region when food was scarce, the farmer is tied to its land).

2 – The Green Revolution and food Industrialisation of the 20th century, when we moved from scarcity to over-abundance.

The prioritization of high-yield crops, breeding, the use of fertilizers, livestock optimisation… All these factors led to an unprecedented surge in productivity. And, as a large share of the population moved to cities, they became less connected to what they ate. It was reinforced by industrialisation, which created a new range of highly-processed tasty foods (often misleading our senses through flavouring).

And now, where are we?

Basically, the previous revolutions brought two benefits and two plagues. On the positive side, they enabled an ever growing population, and reduced the number of people needed to cultivate the food we need. On the negative side, both had a damaging impact on our environment and health (even if we should say the green revolution lifted billions of people out of poverty and starvation, so for all its wrongdoing, it was short of a miracle).

Today, the situation is quite bad, but as often when things get complicated, this is setting up the stage for a fast-paced evolution. At DigitalFoodLab, we even consider that we are now entering into a third food revolution due to four drivers:

  1. climate change: our food system (mostly livestock farming and intensive agriculture) is impacting the environment (up to a fourth of global emissions are linked to food) AND the evolution of climate is having an impact on agriculture yields (one of the most under appreciated aspects of climate change). This creates a need to build a more resilient and more sustainable food system.
  2. population change: if the challenge was limited to climate, we could go back to where we were previously and use less inputs, farm less and all would be great. But, we are planned to be 10 billion humans in a few decades. As billions are lifted out of poverty and reach the middle class, they also want to consume more, and notably more meat and dairy products.
  3. Also, and almost at the opposite end of the spectrum, in most developed economies, the population is ageing and shrinking. Global food companies will have to shift their business models, often based on the growth of the demand, to create value for these demanding consumers.
  4. health: the transition from scarcity to abundance (food is excessively cheap if you consider how much people should spend three or four generations ago just to avoid starvation) is making us fatter and less healthy. The rate of obesity, diabetes, and many other food-related conditions is skyrocketing worldwide, notably in developing economies, often crippling their growth prospect. Again, this creates the need for innovative solutions to better help us navigate our ancestral impulse of eating as much as we can when food is available.
  5. technologies: these are rather enablers than a driver in itself. A set of new technologies, often not primarily related to food (such as artificial intelligence) have huge applications all over the value chain, from farm to fork.

The third food revolution: toward the digital food era

All these elements create the conditions and the need for a third food revolution. We call it the “digital food revolution” (and indeed, that’s why we called ourselves DigitalFoodLab).

As its predecessors, this third revolution should make food even more accessible to all, but this time, using the many resources in our hands, it has to be different as it must make food better for us, humans.

And to complete the circle, now let’s come back to the starting point of this discussion: agtech and foodtech. Established companies are wonderful when incremental innovations and scaling production is concerned, not so much when it is about disruption. That’s where startups come up. From what has been created by researchers and others, entrepreneurs find ways to create value. With limited consequences, they can experiment with many different business models and technologies. When they succeed, either they have the ability to scale, or existing companies will be able to do it.

However, established companies are not following this path; they are far from it. We already observe great differences between those planning for the future and those focused on their day-to-day activities.

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Use case: project for a global F&B company looking to map its AgTech innovation ecosystem and the best startups to partner with

What we did:

  • Mapping of the AgTech ecosystem: startups, research regulators, and other leading companies.
  • Discussion to select areas to focus on.
  • Analysis of the information to reveal the trends and a model to analyse eventual partners.
  • A workshop to validate the opportunities based on our recommendations.
  • Scouting of relevant partners followed by introductions.

Results:

  • Mapping the different categories of innovations in AgTech that should be considered now to create long-term benefits for the business.
  • Identification of key partners (an incubator and a couple of startups).

Use case: project for a CPG company on the healthy ageing ecosystem

What we did:

  • Education of the board through a couple of workshops to define the perimeter
  • Identification of key opportunities and threats created by long-term evolutions (technologies, business models, behavioural changes).
  • Deep dives on each of the priority categories.
  • Co-construction of a vision on how the company should address these challenges.
  • Identification of partners (startups, incubators, funds) to move forward.

Results:

  • Creating a consensus on which categories to prioritise and how to address them.
  • Implementation of an open innovation strategy through the development of partnerships.

Use case: project for a global CPG company to develop a strategy on the healthy ageing ecosystem

What we do (ongoing mission on a subscription model):

  • Kick-off where we present an overview of the AgriFoodTech ecosystem to select with the client the categories to cover and for each, the level of information required.
  • Monthly newsletter: each month we send a newsletter with the articles that we have gathered ranked by relevance, their summaries, and a layer of analysis.
  • Database: we set up a personalised database that will be filled month after month with the information gathered on the companies identified for the watch.
  • Workshops: twice a year with the client’s innovation team and other “innovation curious” team members, we present an overview of the evolutions, key trends and a dashboard of the topics followed by the watch.

Results:

  • A clear, regular and evolutive tool to follow what is happening in terms of innovation on key topics.
  • A forum (through the workshops) to discuss innovation trends and new opportunities.

Use case: opportunity screening for an ingredient company

What we did:

  • Kick-off to define the perimeter of the ecosystem studied.
  • Mapping of the different trends shaping the innovation ecosystem of the client.
  • Analysis of the trends on DigitalFoodLab’s trend curve and other relevant frameworks.
  • Workshop to discuss DigitalFoodLab’s recommendations on key trends to prioritise

Results:

  • Shared view of the innovation ecosystem for the client with a view of the trends to prioritize.
  • Clear document (personalised trend curve) that can be easily shared internaly to explain the company’s innovation choices and which can be then updated each year.

Use case: scouting for an agriculture coop

What we did:

  • Kick-off to define the perimeter of the client, the goals of the scouting (partnerships) and the criteria on which startups should be evaluated.
  • Set-up scouting: we selected the first batch of 20+ key startups following the criteria of the client.
  • On-going scouting: then we set up a quarterly scouting of about ten startups.
  • For each scouted startup, we created an ID card with key information such as the business and technological maturity, funding, and corporate partnerships. We also added an explanation of why we selected this startup.

Results:

  • An ongoing and evolutive scouting are matching the client's criteria and its capabilities in terms of deal flow.

Use case: working on an acquisition process for a CPG company

What we did:

  • Kick-off to define what the client is seeking, notably in terms of maturity.
  • Workshop with the client based on a mapping of the different innovation ecosystems adjacent to its activities to select some priorities and discuss inspiring examples of startup acquisition stories.
  • Identification of 20+ targets.
  • Workshop to select the most relevant to engage with.
  • DigitalFoodLab worked as a sparing partner during the acquisition process, notably to help design how the acquired startup could be integrated into the overall company’s strategy.

Results:

  • Different results from traditional M&A processes with a focus on the client’s innovation strategy.
  • Identification of a good match for an acquisition.

Use case: market due diligence on sugar alternatives

What we did:

  • Kick-off with the client to discuss its interest on this category, its expectations and existing level of information (notably on the target company).
  • Mapping of the ecosystem to analyse the different existing alternatives and technologies to compare them.
  • Interview (calls) with relevant startups made by our internal biotechnology expert.
  • Recommendation on whether to invest or not.

Results:

  • Clear view of the ecosystem and of the reasons to believe (or not) in each sub-category.
  • Enforceable recommendations based on facts and expertise.