Edito – Change your diet and save the planet

Published on October 18, 2021

While it is essential to keep in mind that consumers who switch from animal products to alternatives do it for health reasons, it seems that is changing. The environment is a growing concern in consumers’ choices (as is animal wellbeing). However, consumers are not all educated about the potential benefits of alternatives and the impact of animal proteins on the environment. Many have tasked themselves with this. In the past month alone, we have observed at least two approaches (which are not mutually exclusive):

1- explaining how big food is bad

Agriculture is responsible for 34% of the world global greenhouse gas emissions, and animal-based food is the most significant component, with 19.4% of all the emissions (beef represents 8.5%). Put it otherwise, beef farming and consumption alone emits three times more than an industrialised country such as Japan.

Though compelling, this data seems not to be enough to convey the message to consumers. Hence, the new idea is to make things more relatable and associate big food companies with something that most hate: oil and finance. It can be observed in the latest Meat Atlas report (see for the picture below). More than talking with abstract figures, it points out several meat and dairy companies and shows that, combined, the top 5 meat and milk companies emit more than the biggest oil producers.

Plant-based analogues developed by startups (and food giants) are more and more criticised for their long list of ingredients (and hence are less seen as healthy). But, they are better for the environment (even if you follow the data, chocolate and coffee may be worse than many animal products). We can expect these shaming practices to increase, notably if they prove effective at making big players launch new products and adopt new practices.

2- promoting alternatives through investments

Telling others what to eat or showing off a perfectly balanced diet on Instagram is not enough for influencers and climate-concerned movie stars. Indeed, it seems that investing in the future of food is the new hottest thing in Hollywood. In the past couple of weeks, the trend appears to have been around cellular agriculture (or should we say cultivated meat?) startups :

Earlier this year, Oprah Winfrey invested in Oatly (plant-based milk) and Jay-Z in a plant-based cheese startup.

It is still hard to see if these startups do well (in terms of financing, at least for most of them, as they don’t have a product yet) due to people they have as investors or if they are good at promoting themselves and attract famous people. However, it is undoubtedly the case that these notable investors can use their clout to make brands popular (see how George Clooney’s tequila brand became acquired for $1B).

Next: pushing forward and asking for government intervention?

All this gives us a hint about what the future may look like with alternative protein companies (and well-financed lobbies behind them) insisting on how their products are better for the environment and the animals. We can wonder how all of this will evolve with potentially:

  • more shame put on companies (and hence farmers) using animal-based products. This could backfire if consumers are themselves shamed for the food they eat (notably when it is a key component of their culture and identity);
  • a call for a stronger intervention of governments to both support the alternatives and restrict the access to animal products (through taxation with a carbon-based meat tax). Again this could backfire. Farmers could use their strong political influence to make the life of alternatives harder.

In a word, change is ahead. We can’t really predict its speed. The only thing I would bet on would be the fact that it will not be linear but rather bumpy and then exponential. But, we know one thing, it will not be smooth. Players in the food industry should seriously start to understand where they are going, plan and act.

You're in a good company

Join the 60+ clients of Digital FoodLab: leading agrifood companies, retailers, banks, investors, startups, and public organisations.

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.