Infecting the industrial world in the manner of an Australian bushfire The Covid-19 virus has ravaged communities left behind. Stock markets have collapsed as do Arctic glaciers during July. Millions of people are without work More than half of the world is in a solitary position.
The coronavirus epidemic is the most disruptive global incident in the world since World War Two. The world we was familiar prior to the turn of the millennium will appear and act very different when it enters the new decade.
In a time when investors are looking for diversification to weather the storms that lie ahead and now more than ever before, FoodTech is notable because of its importance and strength, as well as its potential and the advantages it offers. We’re sure to say that We’re FoodTech VC however, below we’ve outlined some of the unique ways future food investment can navigate this storm.
Rewiring supply chains
The pandemic is awakening businesses and governments to the essential value of food. It hasn’t been a pleasant wake-up signal. The strength in food chain supply chains has been tested to the limit as whole models change from restaurant to retail as well as home deliveries. Many retailers including the most renowned names, had been in dire need of new ideas prior to the recession. Today, they require it more than everbefore, but budgets are being moved away from R&D to other , more immediate issues.
This opens up huge opportunities for cooler-headed speed mover. Intense sanitary needs and social distancing are likely to be the main requirements for warehouses and processing facilities. It’s inevitable regardless is happening, and it could delay things or require new technologies to be implemented that permit more remotely. The stale legacy systems that have been in place for a long time have prevented some of these innovations from the market in the past, however the current conservatism is no longer viable.
Automation and digitisation of supply chains will become a requirement and the technology is rapidly evolving to meet the demands. Computer vision could play a part in remote quality monitoring that provides live control and analytics. New techniques for refrigeration are emerging and so are improved bio-packaging options or drone delivery.
Consumers in the “new normal’
Elasticity of the supply chain has been tested by the radical shift in consumers , too. A lot of articles have been written about the increasing the sales of companies that produce protein from plants during the current crisis, which is and the acceleration of a long-standing trend toward flexetarianism or even veganism. However, there is also a growing need for food items that is healthier. According to data we’ve received from Tastewise which is a Peakbridge portfolio firm that gathers insights about food trends from social media activities along with other information sources, a brand new standard is beginning to emerge in the minds of the public. The interest for “immune system” has increased 66% from February, the company’s analysis illustrates. The interest in stress relief as a function-related benefit of food, for instance, has increased by 12 percent this year, and is expected to rise over the next few months. For instance rosemary, which is widely believed to ease stress, has been rising 114% in conversations regarding stress relief over the past year.
Reviewing several other information that are contained in the Tastewise information the senior industry executive Dr Ellen De Brabander sees a increasing demand for traceability. It is now evident that, according to her, consumers and regulators will be demanding greater traceability of food products and ingredients. They can only be made possible through the rapid spread of digital technologies, be it such as QR codes, RFID satellite imagery, blockchain.
It’s also important to consider whether some of these Tastewise trends will become a new norm for the long term or something which will go away when lockdown is over. It is impossible to predict whether certain trends that have been gaining momentum this moment, such as having breakfast in your home, will disappear in the next year, but in some way, you’ll have to be able react quickly. You can’t believe that you’ve picked the right scenario. The ability to react quickly to the changing situation is more crucial than ever before, and the companies that can do things that are going to be a big time.
Sugar reduction, healthier living
Food markets will also have to be prepared for the possibility of the virus when it is spreading around the globe. The science community is as much in the range of 18-months away from having a vaccine, much attention is being paid to the numerous ways of fighting against the virus by staying in a healthier metabolic state. According to a leading doctor of endocrinology and director of the Glandt Center for Diabetes Care Dr. Mariela Glandt, survival rate of Coronavirus will have much to do with what we eat and how we eat. About 70 percent of US people suffer from a type of insulin resistance that can hinder the body’s ability to fight disease. It is known as Metabolic Syndrome, where, due to insulin resistance the body is unable to handle its nutritional needs, causing crucial white cells become weak and ineffective and leaves the body vulnerable to disease and infection and vulnerable to the dangerous Coronavirus.
Within Europe and Asia In Asia and Europe, in Asia and Europe, the Coronavirus mortality rate is generally affecting the older generation. In contrast, Dr. Glandt believes that a younger population of people to suffer from the US in the United States, where a lot of people are suffering from Metabolic Syndrome. “Put in a simple way, we’ve been ill through the food we consume.” Dr Glandt explains. “Refined sugar and refined oils, as well as preservatives, and fats have contributed to our predisposition to cancer, strokes and cardiovascular illnesses and have caused many life-threatening underlying illnesses that are making patients with Coronavirus so seriously ill.” Dr. Glandt is the founder of EatSane the Tel Aviv-based company that specialises in low-carb options that lower the chance of developing Metabolic Syndrome. She believes that the coronavirus ring is an alarm signal for all people of the world to reset their diets and not only combat the diabetes that lies the cause of so many health issues, but to tackle the root of the issue: “Going cold turkey on carbs can be hard to sustain, but cutting down on your intake of carbohydrates slowly is the most effective method to decrease levels of insulin and their susceptibility towards Metabolic Syndrome.”
We are witnessing more FoodTech companies similar to this. Each company is looking for their unique way ways to still enjoy food and still be healthy. As the consequences of the most devastating pandemic to strike the modern world are becoming apparent, sugar-lowering innovations like low-carb bread and low-carb chocolate are the solution that the world desperately needs in order to stand the Coronavirus in its strongest condition of its metabolic health. These technologies are also welcome allies to the wasteline for those who remain in their homes.
However, these companies might be shattered in a downturn in funding. The current financial climate recalls an entrepreneur who has been in the business for a long time as well as PeakBridger Rick Borenstein of the 2008 financial crisis and its consequences. “The most obvious connection is the difficult environment for fund-raising that venture-backed businesses are confronted with,” he tells us. “Capital preservation was the prevailing theme in 2008 and it remains exactly the same in the present. I launched the seed fund in March of 2009 and was immediately amazed by the target-rich atmosphere it was at the time. Every business, no matter how innovative, required money. I turned these circumstances into my favor. My money, however small it was in the moment was embraced to the best deals.”
Borenstein believes that, while the economic effects of the virus may be long-lasting, certain sectors are solid and are expected to rebound. He believes that the Coronavirus will make people better aware of positive roles that their investments could be playing in a global economy that is about to re-enter the fray: “I expect investors to become more aware in the social consequences of the investments they make in, and this could result in a significant increase in sectors like the FoodTech as well as Agtech sector.”
The most delicious food is not going anywhere.
Food, in fact is among the industries that are least affected by cyclicality. Contrary to the terribly hit entertainment and tourism sectors when there are depressions or even pandemics, people require food on the table, and plenty of it.
This is why it’s one of the most vital sectors that must press forward in the face of an imminent virus. As unemployment rises in the food industry, it is currently on a hiring rampage. PepsiCo has announced that they would be hiring 6000 employees to meet the massive demand created by the crisis. Similar news was reported from Papa John’s, Mondelez, Dominos, Kelloggs and other giants in the food industry — all of which have announced the creation of thousands of jobs while they try to feed an already hungry, anxious, and overstocked customer base. General Mills recently said it has increased its forecast for 2020 because customers are stocking up on its snacks and cereals. The the demand for food increased but it has not slowed down but it has increased.
The Food and Beverage sector has substantially over-performed S&P 500 from the middle of February (see the figure below) like it did in the US as well as Europe during the time following the 2008 economic crisis.
Rewakening the environmental
The Coronavirus has brought the world down in its track in a way that other existential threats would only dream of. On reflection, this is a time to consider something more than personal hygiene and health. It is the time to contemplate the impact that our species is having on. While we cower in reality that they believed they were protected against, our thoughts are beginning to develop towards a reboot and a more sustainable more hygienic, healthier, and fairer planet that is not surrounded by our bubbles. This is the challenge the FoodTech industry has the potential to be a part of.
When we discussed this matter with a long-serving chief agriculture officer at Mars — a fellow Peakbridger Dr Howard-Yana’s ShapiroDr Howard-Yana Shapiro emphasized the extent of an environmental alert this is. “How many times do you damage the ecological fabric and you can’t be saved? Consider Ebola The virus was around for since the 1980s, and people were aware about it, but we ripped enough of of the ecology within the region where it was able to get away. The current situation with Coronavirus is similar. The ecology has been impacted to the point where it’s not able to heal. We’ve lost our buffers.”
In all, Shapiro believes we are living in opportune and unique time for agriculture and food: “For the first time in our history, we have a common understanding of food and agriculture. We know the components of food on a molecular level and what it does within our bodies and the reasons why each ingredient is essential to our well-being, health or growth. The awareness of this isn’t on its own, but in tandem across the entire field. We are beginning to learn what we can do.”
Shapiro says that, since the market crashed and he has heard nothing but on his business newscast is the extraordinary worth that is Apple as well as Google stock. However, he believes the real value is in companies that know what food is, and also have the tools and knowledge to create something unique. “What would happen if you hand Machine Learning the rules for food? What type of tomato would it produce?”, he speculates enthusiastically. “Fast changing food companies that are aware of science will be able to transform the way we think about the food industry in the coming years.
After contacting those who are thinking in our community, it’s time to reflect on our own home. When we think about the next day we’ll be looking at the following future investments:
Their importance to the current issues and ‘pains’ we confront
The security of the business
Their revolutionary innovation
The important role they can have in shaping our world
Their worth in the market
FoodTech in 2022 is a good fit for several, if not all one or more of the following boxes. FoodTech investment offers the chance to reap significant rewards and the chance to take positively in a world shifting around its axis. This is the way we’ll be spending our days at home.
Copyright Reseau Actu.