Investing in Food Tech

NICCOLO MANZONI

23 NOVEMBER 2017

Headlines

INVESTING IN FOOD TECH– 23 NOVEMBER 2017 – NICCOLO MANZONI

Leonardo DiCaprio Invests In Beyond Meat Hampton Creek's Entire Board Leaves Except for CEO

HelloFresh aims for €1.5bn IPO valuation Blue Apron plunges more than 13% to an all-time low

Impossible Foods alone has raised $273.5m

Internet-Connected Tea Infuser Teforia Shuts Down

Squeezed out: widely mocked startup Juicero is shutting down

Global food demand and supply are misaligned…

INVESTING IN FOOD TECH– 23 NOVEMBER 2017 – NICCOLO MANZONI

Source: US Census Bureau, International Data Base, 2015, OECD data, UN - World Urbanization Prospects, 2000; Food & Agriculture Organization of the USA, ESA working paper; USDA World Agricultural Supply and Demand Estimates 2013; The World Bank, FAO fisheries and aquaculture report 2012, WWF stats, FAOSTAT; ‘Global food losses and food Waste’ FAO

Increase of 60-70% in demand of food by 2050 driven by

• +35% more people by 2050

• 60% of the world’s population will live in cities by 2030

• +3.1bn middle class people by 2030

• +76% more animal protein consumer by 2050

Demand Supplyvs

Current method of food production constrained by reducing resources

• -2/3 arable land per person between 1960 and 2050

• 85% of wild fish stock fully/over exploited

• 1/3 of all food for human consumption wasted annually

• Flat crop yield

…requiring a new wave of innovation in food production

INVESTING IN FOOD TECH – 23 NOVEMBER 2017 – NICCOLO MANZONI

Efficiency frontier = max theoretical yield

Why now?

INVESTING IN FOOD TECH – 23 NOVEMBER 2017 – NICCOLO MANZONI

Consumer preferences evolving towards better, more sustainable

(and cheaper) food options

Taste Text

IT’S BIGGER THAN YOU THINK

IT’S NOT WHO YOU THINK

IT’S MORE NUANCED THAN YOU THINK

Why now?

INVESTING IN FOOD TECH – 23 NOVEMBER 2017 – NICCOLO MANZONI

‘Big Food’ Manufacturers’ mixed success in game-

changing innovation

Why now? A unique convergence of ingredients makes innovation possible today

INVESTING IN FOOD TECH – 23 NOVEMBER 2017 – NICCOLO MANZONI

Consumer preferences evolving towards better, more sustainable

(and cheaper) food options

‘Big Food’ Manufacturers’ mixed success in game-

changing innovation

Cost and time-to-market are dropping quickly (e.g. direct to

consumer distribution)

Lower cost of scientific discovery –lower cost for lab space etc.

Increased price volatility for key food inputs

Why now? A case study

INVESTING IN FOOD TECH – 23 NOVEMBER 2017 – NICCOLO MANZONI

‘no brainer’ to purchase a mayonnaise that taste as good (or

better) and is cheaper

Unilever lawsuit and launch of eggless

mayonnaise

Quick scale up via agreements with large retailers and catering

companies

Predictive algorithm for discovery of candidate plant species for

replacement

2015 Avian flu pandemic

Summary

INVESTING IN FOOD TECH – 23 NOVEMBER 2017 – NICCOLO MANZONI

Global food demand and supply are misaligned……requiring a new wave of innovation in food production

A unique convergence of ingredients makes innovation possible today and Food Tech becomes an ‘investable’ space

Innovation is happening across 4 key themes - shift diets, reduce wasted calories, increase yield with existing footprint, increase quality, safety and traceability

ONE

TWO

THREE