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Market transformation: Examining the disruptive technologies looking to take centre stage in the food revolution Bryan Hanley
Market transformation: Examining the
disruptive technologies looking to take centre stage
in the food revolution
Bryan Hanley
Content Disruptive Technologies – how do they work
Technology push or industry/consumer pull
The food revolution
Disruptive Technologies
• How many companies truly embrace disruption?
• How does it work for them?
• Why should companies be disruptive?
Importance of Innovation: Jumping the S curve
Importance of Innovation: Jumping the S curve
Company Original Business New Business
Nintendo Hand made playing cards Electronic games
Wrigley Soap powder Chewing gum
Nokia Paper mill Mobile phones
Hasbro Textiles Toys
Avon Books (door to door) Perfume
Xerox Photographic paper Ink, software, scanners,
printers
Monsanto Saccharine Pesticides
GE Light bulbs Gas engines, hybrid
locomotives, HD CT
scanners, ultra-sound
devices, chemical sensors
Fortune Brands Cigarettes (Lucky Strike) Hardware, home
furnishings, golf clubs,
cabinets
DuPont Black gunpowder Polymer adhesives,
insecticides, fire
extinguishers, food
ingredients
Company Original Business New Business
3M Sandpaper Scotch tape, duct tape,
Post-It notes, cleaning
products
Shell Import/Export Oil, petrochemicals
Wipro (India) Vegetable oil then
consumer goods
R&D and IT consulting
services
LG (Lak-Hui Chemical
Industrial Company)
Hygiene and cosmetics Electronics white goods
Gap Record store that also
sold jeans
Clothing
Starbucks Espresso makers and
coffee beans
Coffee
Suzuki Silk weaving loom
machines
Motorbikes
Tiffany Stationary Jewellery
Glaxo (New Zealand) Infant formula Pharmaceuticals
Distillers Company Scotch whiskey cartel Distillers Biochemicals
Mitsubishi Shipping line Multiple businesses (semi
or actually autonomous)
Companies that Have Changed their Business Model
Disruptive Technologies
• “A disruptor is often using an emerging technology delivering on a new or changing consumer need under a business model that has the potential to gain significant share of a category in the food industry, These emerging technologies are often the enabler for a disruption in the consumer marketplace.”
Olaf Greuss. Disruptive Technology Manager, General Mills
Disruptive Technologies
• Types of disruptor
– Emerging Technology
– New business model
– New or changing consumer need
Emerging Technology The Valley of Death
The Valley of Death
The Valley of Death
The Valley of Death
The Valley of Death
An Alternative View
Push or Pull
• Technology push across a valley. When it falls into the valley there is no way out. Permanently lost at TRL 7.
• Industry pull across an activation hill. If it fails then it falls back to its starting point (TRL 4,5) and can be reviewed and the process repeated using different conditions.
• KTN and Innovate UK lower the activation energy for effective technology deployment – may even be in a different industry.
Part 2 – The UK Industry
• Against our major competitors – France, Germany and the USA – we find we are more or less equally specialised in aerospace, chemicals and pharmaceuticals.
• The UK is more specialised in finance, business, communications and personal services while our leading competitors are more specialised in transport equipment, and precision instruments.
• We have a relative technological advantage in organic chemistry, biotechnology, pharmaceuticals, civil engineering, medical technology, biological analysis
UK Position
New Technology - Conclusion
• Find the need
• Business/consumer pull, not solely technology push
• New ideas and new models
New Technology - Consumer Pull
• “The global chewing gum market is forecasted to make sales amounting to 32.63 billion U.S. dollars in 2019. Based on sales per region, the largest market for chewing gum can be found in the Asia/Pacific region, followed by Western Europe. The North American market was ranked third, where the beloved chewy candy generated sales of 3.95 billion U.S. dollars in 2016” (Statista 2017)
New Technology - Consumer Pull • In 2014, an Associated Press report suggested that
gum was struggling to keep up in a growing candy market that gave people plenty of other options for fixing bad breath. And the AP pointed to some of the social stigmas around gum as well, such as being stuck in a conversation with someone who refuses to stop smacking away. Around the same time, Fast Company suggested another cause to the problem: Most gums don’t fit into shoppers’ current obsession with more natural products.
New Technology – Consumer Pull
• “The newest addition to your dentist’s grab bag of goodies might soon be gum.
European scientists describe the development of a chewing gum that detects oral
infections Tuesday in Nature Communications. The tech could prove particularly
useful for diseases that present with minimal to no symptoms.”
Diagnosing peri-implant disease using the tongue as a 24/7 detector
J. Ritzer, et al
Nature Communicationsvolume 8, Article number: 264 (2017)
Breath Freshening An Important Part of Product Portfolio
The Solutions
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The Problem • Oral malodor affects 50% of the general population.
• 90% of bad breath is caused by halitosis bacteria residing in oral cavity.
• The oral bacteria produce volatile sulfide compounds (VSC)
Changing Consumer Need
• Products that work better
• Products that are ‘planet friendly’
• At an affordable cost
Start at the End
• Food delivery
– Ready made meals
– Healthy ingredients
– Fast and convenient delivery times
– Better than ‘home made’
– But will need better, cheaper, more flexible food tech.
– This will spark a whole range of new technologies
Disruptive Technologies 3D Printing
• Homogenous food systems – chocolate, icing etc.
• Heterogenous food systems – complex materials.
– Layering – Foodini - 3D layered food systems But – still relatively simple – only 5 capsules and is more a mix of homogenous systems rather than a truly hetereogenous system. Costs $4000
– Biozoon – pureed food
– The market for 3D printed food is expected to reach $425 million by 2025.
Disruptive Technologies - Targets
• Health
• Protein supply
• Waste (e.g. plastics)
What are the Issues?
Two real global challenges in the Agri/Food space that are
clearly linked:
• Global overweight and chronic disease is increasing
• Population increases and the rise of the middle class in
Asia (and to a lesser extent, Africa) is putting pressure
on animal protein availability.
• There is an innovative opportunity/necessity and cross-
disciplinary nature of the joint challenge
What is Being Done –
Proteins • France has committed to a programme of investment
in proteins. Over the next five years there will be up to
€1 billion (US$1.1 billion) invested in the protein
program with financial support from the country’s public
investment bank and the Future Investment Program
• Dutch dietary guidelines focus on eating a less animal-
based and more plant-based diet by the advice to
consume not more than 500 grams of meat a week
• The EU and China have a joint plant breeding
programme to decrease the EU's and China's
dependency on protein imports (i.e. Soya) for human
and animal feed
What are the solutions?
Vision Statement
The identification and development of new protein
sources and products from them for the human and
animal food chain which will have the added benefit of
improving health and wellness, creating new
technologies and building on current expertise in
agriculture, food, industrial biotechnology, processing,
engineering, nutrition and consumer acceptability.
Innovation
A mixture of Challenges • There are clear innovation needs:
• New protein sources (including plant, animal, algal, marine and insects) need to be identified and
their production and utilisation optimised for human and animal/fish use (Agri food and IB
challenge)
• New sources need to be processed using advanced engineering including additive manufacturing
(Engineering challenge)
• Health benefits of increased non-animal protein diet need to be assessed using predictive and other
biomarkers and studies of the effect on the gut microbiome (Preventative health challenge)
• Consumers need to accept new sources of protein and products themselves need to be tasty,
palatable and free of any potential safety issues (Consumer acceptability and retailer challenge)
What is Being Done –
Health • Key issues – obesity, cognitive decline,
muscle and bone loss • Sugar (and salt) reduction – new
technologies still needed • Reformulation for healthier products (e.g.
higher protein for the elderly) • Blockchain – an opportunity or just more
wrapping paper. • Retention of nutrients – microwave assisted
thermal sterilisation – 915 Labs, novel packaging technology
What is Being Done –
Health • Key issues – obesity, cognitive decline,
muscle and bone loss • “At present, evidence of an association
between nutrition and cognitive outcomes is somehow stronger for healthy dietary patterns, such as the Mediterranean-type diet, than for individual nutrients and food groups, possibly because of the cumulative beneficial effects of the many ingredients in these diets” (Scarmeas et al Lancet 2018) – does this mean that dietary interventions are of no use? We have no smoking gun – or silver bullet
Conclusion 1 – Know what your customer wants
• “If some of your customers want hot tea, give them hot tea. If some want cold tea, give them cold tea. If you’re trying to split the difference by serving everyone warm tea, it’s time to rethink your strategy — because no one likes warm tea.”
• Denise Holloman - Principal & Chief Advisor at DAH Operations Advisors.
Conclusion 2 – Know where the need is
• “Around three quarters of adults in Scotland say their diet is healthy, while at the same time 65% of us are either overweight or obese.” FSA Scotland
• “60.5% of patients (68 of 114) aged 60 years or older presenting for vascular surgery had previously undiagnosed cognitive impairment.” Partridge et al 2014
• “There is no evidence that specific nutrients or food supplements affect the risk of cognitive impairment or dementia” SACN 2018
