Peeking Into The Future Kaleidoscope Foods

Build · Compete · Grow

Peeking Into The

FUTURE

KALEIDOSCOPEFOODSOct 11, 2017

Upscience Event

Build · Compete · Grow2 [email protected]

#Not_Fun_Food Borne Illnesses Facts


Hunger for #Naturalness

▪ Vietnamese’s moms prefer to hand pickthe ingredients themselves to cook.Cooking is an art and weighs heavily in theirperception more than a household chore:

✓ Prefer to buy daily meat andseafood

✓ Prefer to cook minimum amounteach time to preserve real taste,natural & flavorful aroma, andfreshness

▪ “Naturalness in Food” = Cleanliness and freshness▪ Color, smell and feel all contribute to the

consumers’ perception of the term “naturalness”

Fresh, green and crisp

Firm and juicy

Succulent, juicy and no blood leaking

Fresh, prefer live fish and seafood

Source: Ipsos UU


The Quest to Keep Looking For Food “Evidence”

The PAST

The FUTURE

CLEAR LABELED FOOD –

information about farming practice

CERTIFIED FOODS –

✓ GlobalGAP ✓ Organic – USDA, JAS, Naturland

Invisible EVIDENCE?

Blood leaking meat

Crispy and green vegetables

Going to wet markets daily to purchase food

CLEANLINESS of THE MARKET

USER-GENERATED CONTENT PLATFORM –

review and sharing information about

SAFE PLACES to buy food


Hunger for #Food Trust

Rampant FOOD FRAUD cases raise EXTREME CONCERNS for consumers

FAILURE IN FOOD SAFETY AND QUALITY MANAGEMENT - a challenging and unsolved problem of the food supply chain

“EVIDENCE OF QUALITY” is QUESTIONED

Source: VnExpress, Kantar World panel | Household Panel | Urban Vietnam 4 Key Cities

URBAN 4 cities RURAL

79% agree 73% agree

Among the TOP 3 THINGS CONCERN

Food Safety

Our FUTURE BITE?What Are TASTES Of

© 2016 Ipsos.


▪ GROWING health-consciousness

✓ More than 90% people care

about health in their mindset

▪ ADOPT healthier eating habits✓ Eat less in each meal✓ Eat more fruits that bring energy

and reduce consuming carbs

▪ Eat for beauty✓ Consume bird’s nest✓ Choose alternative ingredients

▪ WARY of dining-out & MORE eat-in✓ Home-cooked meals - more

control of the food preparationprocess and bring the sense oflove and care to family members– RECIPE for FAMILY HAPPINESS

Hunger for Fantastic 3 #Health #Beauty #Happiness

Source: Ipsos UU

What I Eat DEFINESWho I Am


From Convenience To Super Convenience

Time-Pressure Mothers: A desire to SAVE TIME on cooking!

49% 49%

50%

54%

2012 2013 2014 2020

% of Working Woman in Vietnam’s Total Population

Willing to pay for products that could SIMPLIFYTHEIR LIFE & BRING SUPERCONVENIENCE

When we have no time, we will buyinstant product to use. It saves moretime for us.

– moms, HCMC

Ready-to-cook meals

Seasoning packs

Instant products

Source: Ipsos UU, Kantar World panel | Household Panel | Urban Vietnam 4 Key Cities


Hunger for #Personalized Diets

My father-in-law also has diabetes; so I alsohave to care about his eating regime. Forexample, I have to avoid from foods withmuch sugar, increase to eat more vegetable.In general, we should learn more abouteating regime

– moms, Hanoi

My parents also have been high bloodpressure. We have to follow eatingregime as doctor’s advice

– moms, HCMC

BODY IN TUNE

Making

PERSONALIZED food choices to

suit their health!

My husband has fat in blood disease, sohave to limit eating eggs and poultryviscera. Grandmother has been diabetes;so she eat less rice and need morevegetable; and rice vermicelli or cassavavermicelli also”

– moms, Hanoi

Source: Ipsos UU


Bayer 16:9 Template 2010 • February 2016Page 10

From Absorbers to Empowered Consumers

By 2030, rice yields will have to rise by 30 percent – from the same area of arable land – to guarantee food security

- Bayer Group’s Annual Report -

+30%

© 2016 Ipsos.

Source: Ipsos UU

Food Security - A Pressing Concern

INGREDIENTS?What Are The

© 2016 Ipsos.


TREND 1 Urbanites have started growing their own vegetables at home to ENSURE SAFETY AND QUALITY CONTROL

What’s Hot #Homegrown trend

TREND 2 Urbanites rent farming spaces in Thanh Da, Hoc Mon, District 2 or hire labourers to grow their desired vegetables to AVOID PESTICIDE-CONTAMINATED fruits and vegetables

TREND 3 Consumers are seeking to purchase homegrown vegetables and fruits. Homegrown suppliers advertise their products via social media platforms

Source: Ipsos UU


“Organic” label provides consumers the sense of PROTECTION as it refers to applying chemical-free production methods and proven certification

Established supermarket chain – Saigon Co.op – has invested their own farm to produce organic products meeting ORGANIC certification from USDA (the U.S.), JAS (Japan), Naturland (EU)

Invested in the FVF organic farm in Nghe An to produce organic passionflower, pennywort, Momordica cochinchinensis rice products for exporting to the U.S. market

The Organic craze

Notables Organic Retail Stores

Ho Chi Minh

Hanoi

Local-branded Organic Foods

Source: Saigon Co-op, Baomoi.com


What’s Hot #Superfoods mania

Nutrient-rich – vitamins, minerals, antioxidants, omega-3s

Health & well-being beneficial✓ Protect immune system✓ Lower risk of heart disease and diabetes ✓ Anti-aging✓ Energy and vision boost

Superfoods consumption is a TREND and GOAL to achieve

FANTASTIC 3 #HEALTH #BEAUTY #HAPPINESS

✓ Green tea✓ Chia seeds✓ Gac juice

✓Mangosteen✓ Dragonfruit


Looking Forward to Traceability & Transparency

FEED FARM FOOD PROCESSORS RETAIL & FOOD OUTLETS

Day-to-day battles about the food contamination and poisoning scandals has raised an unmet need of

Setting an effective TRACEBILITY system with TRANSPARENT and QUALITY CONTROL value chain Collaborating among stakeholders of the entire value chain to instill complete TRUST and provideCLEAN & FRESH foods to consumers

TRACEABILITY


Rising Regulatory Standards Scrutiny


• Hazard analysis and critical control points (HACCP)

• ISO 9001:2000

• ISO 22000

• Good Manufacturing Practice (GMP)

• Global Good Agriculture Practice (GlobalGAP)

• TCVN 9964:2014 (p. Monodon), TCVN 10325:2014 ( P. Vannamei)

• VietGap

• GlobalGAP

• HACCP

• GMP

• Aquaculture Stewardship Council (ASC) for EU and Japan markets

• TCVN 8398:2012 (P. Monodon), TCVN10257:2014 (P.Vannamei)

• HACCP

• GMP

• ISO

• Sanitation Standard Operating Procedures (SSOP) aims to meet general requirements of GMP

• Safe quality food (SQF) requires compliance by food processors and distributors

• Marine Stewardship Council Chain of Custody (MSC CoC) for EU and Japan markets

Source: KOL, Feed Miller & Premixer, Farm Interviews, Ipsos Analysis



Feed Manufacturing Breeding & Animal Farming

Production of Processed & Ready-to-eat Food

Distribution Channels

Feed Fresh & Uncooked Meat Cooked & Ready-to-eat Meat

Food Retail Outlets, Restaurants & Food Courts

Trending in VN 3F Model - Integrated Value Chain

INTEGRATION


EngagementLevel

Early Adoption

Pilot Programs

No Developments

No Development Imaging Application Cloud DDS

Service Offering

Pioneers’ Commercial Drones Adoption

COOKING CHEFS?Who Are The

© 2016 Ipsos.


GOAL: 100 convenience stores in Bac Ninh

5 marts & supermarkets in Bac Ninh2

01

62

01

7

GOAL: 1,5 million tonnes of animal feed

Completed a feed mill in Ha NamConstructing new feed mill in Ha Tinh

6 animal and aquaculture feed mills

3F Model Wholly-Owned Business

20

16

20

16

GOAL: 45,000 sows150,000 – 200,000 hogs

30 million layer breeders

1 chicken processing line

20

17

20

19

20

18

20

15

Feed Farm Food Processors Retail & Food Outlets

Note: Wholly-owned


Feed Farm Food Processors Retail & Food Outlets

120,000 parent hens10,5 million DOCs

3 million broilers1 million breeders

Organic shrimps

TRACEPIG – De Heus’ modified G.A.P standards to ensure a “clean meat” supply chain

Partner and provide technical support to build modern slaughtering house

TRANGLINH

7 feed mills

Introducing

PartnershipNote: Wholly-owned

1,600 sows15,000 hogs

3F Model Partnership


6 feed mills

20

15

20

15

7 feed mills

3 slaughtering lines

2 slaughtering lines

Meat processing line – sausage, jambon, bacon

Processed food – egg roll, canned food, etc.

20

18

To COMPLETE 3F MODELbuild high-tech swine farm in Nghe An, producing 250,000 hogs per year in 2018

3F Model Acquisition


Notable Players, Working Towards A Sustainable And Safe Future

FUTURE OF FOOD

Val

ue

ch

ain

inte

grat

ion

Food Trust

HealthBeautyHappiness

SuperConvenience

Personalization

Homegrown

Organic

Superfood

Traceability

Rising Standards

Corporate Social Responsibility

?

Sustainable Practice

EmpoweredConsumers



RTD Tea – A Lemon Flavor brand

Liquid Milk – A Kid Nutrition brand

RTD Tea – A Green Tea Flavor brand

An EnergyDrink brand

May’09 Sep’09 Dec’14 May’16

6 Months After Scandal1 Months After Scandal

June’16 vs. May’16

32%Volume sales

Source: Kantar World panel | Household Panel | Urban Vietnam 4 Key Cities

8%Volume sales

61%Volume sales

16%Volume sales

Food Scandal Impacts on Brand

Date post:	24-Jan-2018
Category:	Food
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