🤖 Food automation is booming

Published on February 23, 2022

Food automation is one of the five “mega trends” that emerged from DigitalFoodLab’s recent trend analysis of the FoodTech ecosystem (free 74-pages report here). For us, food automation basically means: getting food cooked and delivered at your door by robots, with the implication that upstream stores & warehouses would also be operated by robots.
In the last couple of weeks, more than 5 deals were announced in this space, which shows a growing appetite from investors, entrepreneurs and maybe more importantly from large corporations to experiment seriously with automation.

🧑‍🍳 ➕  🤖  Robotic cooking

  • White Castle, the US fast-food chain announced it will be installing 100 “Flippy 2” robots in 100 locations. Flippy is a robotic “fry station” (for french fries but also soon to be adapted for chicken restaurants)
  • Hyphen raised a $24M Series A for its automated assembly line. This device is quite interesting as it looks like a traditional assembly line. Humans can actually use it “normally” but beneath it, an automated assembly line can execute orders in parallel.
  • Bolk, a French startup raised €4M for its food canteen. Inspired by Chowbotics (acquired by DoorDash), it can cook hundreds of meals in a 2 square meter space inside an office building.

All of these companies are answers to the pressing challenge of finding qualified human resources. They also answer the need for fresh and quick orders (notably in the context of delivery which can disrupt a restaurant).

🚚  ➕  🤖  Robotic delivery
Kiwibot just raised $7.5M for its small sidewalk delivery robots. Among the investors, Sodexo, the canteen giant, announced an expansion of its contract with Kiwibot to expand its fleet to 1,200 delivery robots across 50 US college campuses.

🏪 ➕  🤖  Robotic store
Boxy raised €25M for its autonomous corner stores. Each has a small offering of 250 food products to enable fast restocks. Consumers have to download an app that allows them to open the store. Then, they pick the items they want and leave. They are charged automatically. Stores are located in underserved areas (notably around offices or factories). The French startup wants to build a network of a thousand stores by 2025.

Do you want to understand what food automation may imply for your business or your clients’?  DigitalFoodLab is here to help you navigate the food revolution waves and build your strategy to leverage long-term opportunities. We can provide you with information (workshops, FoodTech watch), insight and strategy consulting.

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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.