Food Processing Industry Roundtable - Ottawa Ontario (30 mei 2016)

www.wouterdeheij.nl @deheij +31.6.55765772GENERAL RELATIVITY THEORY (1915)

www.wouterdeheij.nl @deheij +31.6.55765772

"... any business enterprise has two - and only these two - basic functions:

marketing and innovation"

(Drucker 1954)


www.wouterdeheij.nl

@deheij





Ir. Wouter de Heij

TU-Delft Wageningen UR (ATO-DLO)

TOP b.v. & HFV b.v.board member GMV



Disclaimers


1. I’m a private parallel entrepreneur. I don’t work as employee for the government or at an university. I work both for large multinationals and SME’s.

2. Nobody can predict the future. Hence, don’t trust my talk about that subject Ask as many questions as you like. Let’s debate.

3. 50% of the group will dislike me; but I don’t mind. I will focus on the persons that I can inspire. If you dislike me, ask yourself : why?


1st World War

1914-1918

2e World War 1940-1945

Millennium peak 2000

First Wave (=steam)

ends

?


1st World War

1914-1918

2e World War 1940-1945

Crisis2035-2045

Millennium peak 2000

6th Wave peak 2030-

2035First Wave (=steam)

ends

Health (care) & VitalityFresh (convenience)Personal technology

Self medication & self-careDistributed & democretizedMicro and nanotechnology

Sustainable / EcologicCradle2Cradle

Environmental protection Nature & IT merged

EpigeneticsPersonal health monitoring

Tribe-centricLife sciences

Big-dataAbundancySmart cities3D printing

Technology assisting our lifePersonal diets & foods

Electricty based processingFocus on the senses and emotions


The penthouse of Maslow’s piramide

PenthousePenthouse



The Global Challanges


0 : 400 million people


1800 : 1.0 billion people
















• 16 M people, 400 People / km2 • Nr 2# food exporter (after USA) … but large feed-import• Nr 4# technology export (4B) … global market• 80-90% of vegetables and meat exported to EU (and Russia)• Fresh-cut (4 companies, 2500 growers): 1/3 of the market• Organic : 4-8% (but rising) • Animal Welfare system / NGO’s• FrieslandCampina (dairy, 12.000 farmers) : 10 B€• VION (5000 farmers) : 9 B€ 5 B€• R&D centres of Danone, Heinz, Unilever, FC, …• CRO’s : WUR, TNO, NIZO, TOP BV• EU 42 B€ subsidies for farmers ... ... • Do we want to feed the world? Or Europe?




Were does our foods come from?



phosphate flows

40%

10%

30%8

%

8%

2%

2%



Save Our Children - Tinkebell



2015


40% of the food produced is never eaten


1 billion people worldwide have malnutrition







Arabic spring : prices of food increased quickly. Middle class couldn’t feed there children sufficiently.



Food & Health


MILLIONS OF YEARS


40YEARS







I HAVE NO SPECIAL TALENT,

I’M ONLY PASSIONATELY CURIOUS.


Food & Technology Trends 1

(All-natural) convenience will be the future. Small(er) portions

More nutrition, less kcal (high nutrient density)Fresh minimally processed for the EU and USA

Proteins and Vegetables (#softpaleo)Carbs and sugar are ‘bad’, fat & oil are needed (a bit)

High-tech food-tech will determine the future

Tasteful health, convenience and sustainable


The Future of Food-Retail












The Future of Preservation





IVth gamma products






Pascalisation



Partners – CWP with PurePulse (PEF 2.0)

PurePulse


Naturalicious embraces today’s

health food rage by “being

prepared for the future now”

To us health is not alchemy,

health is a science : HI-TECH –

HEALTH



PureWave


www.wouterdeheij.nl @deheij +31.6.55765772PATS


Thermal sterilisationPATS



Physics not ChemistryChilled, Pressure & Electricity

Processing via the ‘power plug’Minimally heated (cold processing)Cans are out – PET and Glass ‘in’

Frozen foods will become popular again

Safe but maintaining the original taste and nutrition


The Future of Ingredients


Yeast extracts replacing the classical E-numbers, will consumers accept this?









The Future of Cities










Creating your own Future …. practical Innovation







Distributed technology, Smart GridsSmall is the next ”big”.

Internet of Things (Real + digital)We do it ourselves (and together with friends)

Information about food is everywhereI only trust my friends










Future?

DLO +

=


From research to innovation 1/2

Development

Research

Innovation

Costs of input (hr)

Methods & procedures

Engineering

Design

Production(opex)

Sales

Market (perspective)

€



Development

Research

Innovation

Costs of input (hr)

Methods & procedures

Engineering

Design

Production(opex)

Sales


€x



Prototype

Ideas

Market

Creativity

Design /Engineering

Pilot facilities

Production(opex)

Sales / distribution channels


€Products



Innovation based on “latent” consumer needsExperienced business developers / entrepreneurs

Start-up mentality with start-up-teams“Search” instead of “research”

Innovation ecosystem “just do it”The knowledge is free, ideas and people never


Closed innovation Open innovation

All brilliant experts in our area do work in our companyNot all brilliant expert do work in our company. We have

to collaborate with other experts in and outside our company.

To have a profitable R&D department, we have to develop our knowledge ourselves. We also must develop new

technologies, products and sell these products ourselves.

External R&D might create added value. The interne R&D is nessecary to capture a part of this added value.

If we invent ourselfves, we may enter the market firstly. We will win if we enter the market first.

We don´t have to initiate research to have profit of this research. Having a optimal business model is more

important that entering the market first.

If our R&D investments increase, we will find the best and most ideas and we eventually become market leader.

We win if we optimally use ideas from our own organization and ideas from our outside our organization.

We must protect our intellectual property so that our competitors can´t profit from our ideas.

Others may use our IP if we can increase our business. We have to use the IP of others if this makes our business more

profitable.

Ref. Groen et.al, Innoveren, 2006


Valley of Death


Laboratory test Labscale system

Pilot scale0-serie

Production series

sales(R&D)

Sales of Innovative foodproducts (Industry)

15-50kE 40-200kE 100-750kE 300-3000kE 150-1500kE

Marketsurvey

Marketsurvey

1 gr - 1 kg 0.1 - 10 kg 1 - 100 kg 100 - 1000 kgSales of technology(Industry)

Product challenge testsLaboratory product

tests

Chicken and the egg problem

ResearchDevelopment

1 gr - 1 kg 10 kg - 100 kg

Food pro ducers

Equipm

e nt manu facturer s

Valley of Death #1


Fundamental

Applied Industrial

Demonstration

25-300 kE

200-800 kE

500-5000 kE

25%

40%

65%

90%

Funding/Subsidy

Costs

2000 kE

4000 kE

Research

Development

=

Risk

Valley of Death #2


WURNIZO TOP

TNO


Valley of Death #3

“1 : 7 : 70 rule”

seven hours of development is needed on every single creative hour. And ten-times more effort is needed to

become successful in business




Suggestions for (local) governments

Practical open-innovation (pilot) centresOpen innovation program (including subsidies).Adapt “WBSO-system” from the Netherlands.

Do not invest in classical R&D centres.Focus on the “Valley of Death” (e.g. investment funds/loans)

Universities should focus on education primarilyMore food processing instead of agri/farmers

Stimulate the founding of more processing coops.Don’t forget technology/equipment suppliers

Integrate the health policy with agri-food policy




Some suggestions for companies

Search i.s.o. researchPrototype launch as quick as possible

If R&D is (too) expensive, organise it togetherExperiment as much as possible with NT’s

Use the Food Technology trends mentioned in this presentationCannibalize yourself (“what would google do?”)

Understand the concept “Valley of Death”.



Edison

Picasso

Branson

Jobs Musk


The question thus is: who will be the next Einstein, the next Jobs or Brandson ?


The next Einstein is probably a network (tribe) of extraordinary, creative, innovative and smart people that will see ‘the weak signals’ of hope and solution for this ordinary but rapidly changing world.

These new Einsteins …


… will swarm together, quickly finding the best options and innovations that ...


… will turn lots of small (and larger) solutions ....



www.wouterdeheij.nl


Conclusions after the round table (general)

1.You should be proud to have al stakeholders present at the round table.

2.Focus on the issues at the valley-of-death. Invest in more research is not the way to proceed.

3.It is not agri versus food-manufacturing. It must be vertical integrated. The agri-sector provides ‘ingredients’ food-

manufactures create value.4.What about the consumer? Latent consumer needs will

drive everybody's business.5.Promote the ‘neu combinationen’ thought (Schumpeter). What will happen if BlackBerry meets food-manufacturing?


Conclusions after the round table (R&D)

1.10-25% of the research-budgets should be linked with Public-private projects guided by the industry.

2.10% of the budget should be allocated for business development, marketing and strategy.

3.The research institutes should transfor to service oriented organisations. Also with focus on the USA.

4.Promote the collaboration with (EU?) research institutes.5.Create a separate venture/start-up/early stage (but lean!) organisation close to the research instutures and in urban-

area’s.6.Start a Canadian research institute with specific focus on

novel technologies (including pilot’s) and focus on NPD.
