Nowadays, consumers are always on the run. Managing both their career, family and a healthy lifestyle. People are experienced more stress and anxiety than ever. Strong focus centers on dairy innovation that supports consumers who are managing careers, families and social lives while striving to maintain healthy lifestyles. Based on consumer’s lifestyle change and preference, dairy sees growing opportunities of providing the right bite for the different occasions and moments. The presentation will cover the following aspects:
- Consumer trends
- Drivers for dairy innovation for the right bite
a. Health: key claims
b. Convenience: format and packaging innovation
c. Enjoyment: flavor and texture innovation
- Key takeaways
Lu Ann Williams, Co-Founder and Director of Insights, Innova Market Insights
Why do we consume milk? Neither to kill thirsty nor to have fun. The most urgent need seems to be nutrition. In the fierce competition of ealthy dairy product, ultra-filtered milk surpasses others with its quality of being natural and containing rich protein, welcomed by consumers in North America. The upgoing development of Fairlife won itself an investment worth $200 million for production line from Coca-Cola. Organic Valley launches organic ultra-filtered milk; General Mills has the YQ yogurt with ultra-filtered milk as base.
- At present, there is a growing concern for health among Chinese consumers. Can the ultra-filtered milk from abroad become a hit in China?
- As a new category, is it possible for ultra-filtered milk to changes the layout of premium milk
- What expansion possibilities does it have?
Amid the feeding frenzy of plant-base, the charm and potentials of plants are gradually discovered. The viscous leftover water after cooking chickpeas can be made into butter; sprouted brown rice powder, cashew and potato can transform into cheese. The ingredient of the former butter dipping sauce can be replaced by coconut oil, tapioca flour, pea protein, and other raw materials. There are enough materials for creativity. With imagination, insights, and skills combined can make plant base magically transform.
Miyoko Schinner, CEO & Founder, Miyoko’s Kitchen
According to Euromonitor International, in 2018, the retail sales of China's infant formula grew only by 9 percent. In such adversity, the A2 Milk Company still reached a high level of the market share of over NZD 13 billion in early August of 2019. After A2 milk was transformed from a brand name to a product category, the pioneer of this segmented field is confronted with more and more competitors. Since 2017, SAN YUAN, New Hope, and Mengniu have launched A2 liquid milk; Nestlé and Wyeth also introduced A2 infant formula into the Chinese market. When the barrier of genetic test technology breaks and the patent term over A2 formula is reaching expiration date, it seems that opportunities and challenges are within reach. What will happen to the segment market of A2 milk in China? What kind of products can dairy manufacturers launch?
A bottle of milk before sleep and enjoy sound sleep all night. NightFood launched sleep-friendly ice-cream; Want Want produced Dream Dream Water. Consumers will have the issue of "what to drink before sleep" due to upcoming numerous products for sleep. How can the old friend of sleep, milk drinks, hold their position? Sleep Well helped out by adding valerian root to milk to guarantee sleep quality with natural ingredients.
Allan Watts, Co-Founder, Sleep Well Milk Limited
At the Qingdao Beer Festival 2019, a beer with milk cream showed up at Anchor's pop-up store. What a surprise! The delicious milk cream made by Anchor is nothing exotic for us. Fonterra has been engaged in products like dirty chocolate buns, cheese minced prawn and butter hotpot soup. The to B business of dairy companies can cover not only tea and drinks, baking, and catering, but also alcoholic products. Achor's experience may give us some inspirations:
- In the cross-field strategy, how can dairy companies play as an irreplaceable role?
- Is it a crucial step for more dairy products to enter into Chinese people's recipe?
Protein-rich sports drinks are very hot in the market. In the formula of hydrolyzed protein, some become bitter as the process of protein hydrolyzation goes. Which tastes modifier can be applied so that the bitterness of protein and other substances can be alleviated?
Reserved Topic for FrieslandCampina Ingredients
People with limited lunchtime need to keep stomachs full and get nutrition from healthy food. People of this era desire food with convenience, good taste and nutrition more than ever. To deal with such situation, here come meal replacements such as Mengniu Half Meal Life Light Food Milkshake and Danone Activia Grains French Yogurt. Classy.Kiss also launched Protein Protein Yogurt, with the protein content up to 8g to help consumers kill "hunger." Can't we further develop meal replacements? The existing products lead to the following aspects for exploration:
1. Apart from weight management, protein supply, abundant nutrition and satiety, what other functions, and nutrition can dairy meal replacement bring?
2. What scenarios and demands can we further explore?
When "sustainability" meets food industry, what occurs to you? Whey plays the role of a by-product from cheese and Greek yogurt production. The value of its nutrition cannot be underestimated. Supported by techniques and creativity, whey returns as the raw material of food and beverage. Ricotta cheese and protein powder are both made from whey. It can also be made into fruit-flavored drinks and vodka. The French company, Valbio, even use whey and a mix of bacteria to generate electricity. While exploring more possible materials and cut cost, companies can win consumers' favor by putting an end to "waste."
As the newborn population goes down, the food aimed at older babies may see opportunities. When purchasing for kids, the idea of "choose the best for your child" leads parents to healthy products. Ingenuity Brands unveiled Brainiac Kids yogurt with a blend of Omega-3 DHA and ALA as well as choline, aiming to support childhood brain development. Chobani also owns a product line for children. Its low-fat yogurt provides playful experience with different portable forms including bottles, bars, blocks, and pouches. Danimals promises no color or flavors from artificial sources. Most parents are willing to buy natural food and beverages abundant in nutrition for kids. With the concept of "choose the best for your child", how can health be combined with the materials suitable for children?
- How to design a better experience for children to enjoy yogurt?
- How to create the tastes babies like while adding less sugar?
- What other delights can be created with yogurt?
Chris Dammann, PHD, Co-Founder & CTO, BlueNalu, Inc.
Cell based/cultivated meat and seafood products are real meat made from cells. Various production processes have been developed by different companies but none of them requires the slaughter of animals. The production of cell based/cultivated meats and seafood will potentially use less energy and land compared to traditional production methods. Furthermore, the nutritional value of these products could be even higher than that of traditional products providing a health benefit for the consumers. At the same time, cell based/cultivated meats and seafood products will be free of contaminants such as PCB or mercury. Taken together, these are great potential benefits for consumers, animal welfare and the environment. But how can this new industry realize these benefits? What are the ways to optimize the positive impact? What are the options to make cell based/cultivated meats and seafood products available to a broad consumer base? What social problems can artificial meat solve? What new problems it will bring?
Note: Cell based/cultivated meats in this topic refers in particular to meat grown from animal cells.
Yuki Hanyu, CEO, IntegriCulture Inc.
Chris Dammann, PHD, Co-Founder & CTO, BlueNalu, Inc.
Cultured meat is a close mimic of natural meat in flavor, taste, texture and nutrition. Researchers at Harvard University have grown rabbit and cow muscle cells on edible gelatin scaffolds, which overcomes a great obstacle of cultured meat engineering. However, there are a number of technical challenges facing large-scale production, including cell source, culture media and bioreactor. Most stem cells passing can only be done in a limited number of times. Fetal bovine serum has rich nutrients for muscle and fat cell maturation but is expensive. Can we find a low-cost, serum-free and food-grade media? Bioreactor, generating a controlled environment suitable for in vitro management of the mammalian cells, needs to be upgraded for mass production. Is it possible to eat cultured meat products without raising and slaughtering animals?
Luke MacQueen, Research Associate, Harvard University
Kevin Pan, Founder, Multus Media
Lars Linnet, Global Senior Process Engineer, Alfa Laval
Barclays predicts that, with the emerging enterprises accounting for 10 percent of the $1.4 trillion meat market, the market share of "alternative meat" may creep up to $140 billion in 10 years. Tyson Foods, Beyond Meat, Impossible Foods, and other companies have launched plant-based "alternative meat". Are these products marketable in China? Are these substitutes for meat perfect in terms of texture, flavor, and nutrition? What are the differences between them and the simulated meat consumed in China? What are the challenges of production?
Pora Bernard, Director, Asia R&D Center, ROQUETTE
Beer yeast used to serve as animal fodder after brewing, which is of low-value. A Dutch startup company, FUMI Ingredients, has produced a natural vegetarian non-GMO protein substitute from yeast. This substitute can reduce carbon dioxide emission by 95%, compared with traditional protein. The technique also improves the utilization of beer waste and cut costs, enabling producers to cover up the flavors without much effort.
The biggest problem with plant proteins is the flavor. Pure Taste, developed by MycoTechnology, is a patented product of pea and rice protein fermented with mushroom mycelia to improve the flavor, functionality, bioavailability, and nutrition of protein mixture. PureTaste protein can be applied in a variety of products: bread, snacks, grain-based products, RTD beverages, cereal bars, plant-based ice cream, and plant-based meat. Besides, Clear Taste of MycoTechnology is the world's first organic flavor modulator.
As American consumers show more interests in plant-based meat, more people turn to jackfruit due to satiety concern. According to Google, jackfruit was the most searched food in 2016. Low in saturated fat, rich in fiber, minerals, and vitamins, jackfruit is also meaty and tasty. It is becoming a popular material for meat imitation products. Thanks to the rising popularity, the exports of jackfruits in India have doubled in the past two years.
Customization and personalization will be a new force driving the future development of the food and drink industry. With the increasing consumer consciousness of individual differences and demands, it is both an opportunity and challenge for enterprises to deal with in the near future. Taste, nutrition, packaging, service, experience, what are the different ways to offer consumers with personalized product solutions? Mintel senior analysts will zoom into these trends and bring you the latest insights and observations.
Daisy Li, Associate Director for Food & Drink Team, Mintel
Lemeng Wang, China Business Manager, Kerry Group
More consumers are looking for healthier foods than just satiety. Zion Market Research predicts that the global market of functional ingredients will hit around USD 100 million by 2025. China has become the largest snack market with the functional snack market booming. Under such circumstance, how to effectively meet the functional needs of consumers for snacks?
Edgar Gong, Product Portfolio Manager, Cargill China Grain & Oilseeds
"Healthy eating" has become a must when parents choose snacks for children. In China, the market scale of children's healthy snacks is projected to hit RMB 48 billion by 2020 and the demand is enormous. However, due to the local shortage of high-quality materials and restrictions as product quality supervision standards, there are not so many children snacks labeled with "healthy" and "organic."
- How can brands break the game facing a market segment with huge potential?
- In parents' mind, what are the ideal healthy snacks for children?
- How can brand owners innovate and meet consumers' demands?
- How to improve tastes?
Lulu Yan, Baby Food General Manager, Asia, H&H Group
This speech is about how to extract proteins and fibers from brewery spent grains (BSG), their characteristics and functions, as well as their applications in foods and beverages, such as bakery, snacks, alternative dairy and ready to drink beverages.
Cuie Yan, Global Director, Applications, AB-InBev
Adding alcohol flavors to snacks has become a trend of the sense of indulgence. Consumers can enjoy the flavor of liquor without the side effects of alcohol. Alcohol-flavored ice cream, liquor chocolate, and beer-flavored nuts, there is more room for creativity in alcoholic flavors and snacks. In this part, we shall explore how to create more alcoholic snacks to meet consumers' demands. And as a niche flavor, how can it break through the giant China's snack market worth RMB two trillion?
In terms of segmented bakery market, short shelf-life products have been gaining popularity in recent years and become the first choice for breakfast by many. Data shows that the breakfast market is expected to reach RMB 840 billion by 2021, 25% of which is likely to be covered by short shelf-life bread. There is great room for development. But the shelf is filled with homogenized products as steamed cake, pita bread, and sandwich toast. Nowadays, the renewal cycle of baking products becomes shorter. In the fierce competition, how can short shelf-life bakery brands make a fortune through product innovation?
Jinho Park, Chief Director of Marketing, China, SPC Group
Recently, a soft toast with new texture swept Japanese food industry. Although it shares a similar look with white bread and doesn't contain eggs, the inner part is surprisingly soft, including the "unpopular" crusts. What are the techniques behind this treasure-like toast? Will the soft toast also become a hit in China?
Aiming at consumers' demands toward "a combination of food and drink" and experience space, Bee+ upends the traditional bakeries and creates a super bakery with 12 experience scenes. Here, consumers will find "fish-flavored shredded pork bread," "preserved vegetable & braised pork bread" and other novel tastes. They can witness the whole baking process. Customers can try the "futuristic technology" - super transmission system and enjoy at the island of liquor, juice bar, theater, Bee market, and other scenes. Now, let's see how Bee+ defines bakery.
Derek Leng, VP, Bee+
In recent years, traditional dim sum has fallen into the dilemma of "aging brand" and "category stronger than product." Yuxiaoguo was born for dim sum revolution. They restored the model of Tang Dynasty ceramic mooncake made thousands of years ago by relic restoration technology and reproduced the classic tea of Qing Dynasty. The material and the technique are upgraded for developing delicate, healthy, portable, classic yet modern Chinese dim sum.
From the perspective of baking aesthetic, this topic will explore how to create a cake that is "pleasure to view and delicious to enjoy" in terms of color, shape, and texture.
With plant-based diets gaining popularity, plant-based protein is sweeping the world and products are emerging in an endless stream. More consumers choose to add plant-based milk in coffee, as oat milk, instead of dairy milk. Consumers do so not only for environmental protection but also out of the pursuit of healthy and light food. How can plant-based protein beverage companies reverse the declining trends of China's plant-based beverage market through collaboration with coffee brands? How to rejuvenate coffee? What other innovations may plant-based protein coffee bring?
Every revolution of coffee is closely associated with consumption behaviors. Nowadays, consumers have more diversified consumption habits and prefer to integrate different elements. After the three revolutions of instant coffee, quality improvement and aestheticization, will the forth be cross-field combination?
Richard Chang, VP of APAC Fruit & Vegetable BU Cluster, Doehler
Wave goodbye to lose leaf and floating tea bags. A single Tea Pop is enough to make tea. The brand, Tea Pop, cooperated with the University of Chester to develop tea extracts and made it into the forms of lollipops and flower-shaped pops. It could melt into water and here is your tea. Making tea can also become an easy task.
Rice wine is naturally suitable for drinking with simplicity. With the full-bodied texture and sweet taste, it is preferred by Chinese people than Western-style wine. Rice wine would be a good choice as a featured product in the low-alcohol wine market.
- Who are the targeted consumption group of modern rice wine?
- How to meet the market demands to innovate with the taste?
- It's very easy to develop a product with "ephemeral popularity" on the Internet. But if we want the product to be everlastingly popular, how can we make it?
Babe, an American company, fill a can with the wine which is conventionally enjoyed in high-end restaurants, making wine a leisure drink like Coke. Let's see how Babe developed the "wine with the highest exposure rate on Instagram!"
There is 44% of bread wasted in the world. Bob's Your Uncle from Canada recycles the "unwanted toast”. They put the toast together with germinated barley, hops and yeast, and thought of an idea of drinking bread. Bob's Your Uncle will share their story to you!
Bob Froese, CEO, Bob's Your Uncle
Chinese Producers of craft beer now pay equal attention to the package design and taste innovation. Many craft beer brands add flowers frequently seen in China including peach blossom, osmanthus, and jasmine, presenting Chinese taste to consumers. What is driving the rise of the flower-flavored beer? How will such a trend develop in the future?
Guanming Pan, Founder & Product Manager, Taste Room
Large breweries worldwide have been increasing investment in non-alcoholic beer. According to GlobalData, the growth of non-alcoholic beer has reached 4%, while the overall growth rate of the global beer industry is about 2%. It is a hit in markets abroad and now entering Chinese market. Suntory brought its bestselling low-alcoholic drink, Horoyoi, to China, getting the attention of young people. What is the targeted consumption group of low-alcoholic beverages? Will Chinese consumers embrace the non-alcoholic "beer?" How can we innovate? Let's take a sip!
After the online traffic soared, it is the supply chain that confronts the greatest challenge. Thanks to social e-commerce, companies can quickly receive consumers' feedback and analyze their demands. At such a fast pace, how can the supply chain react and iterate quickly? Faced with various features and difficulties of distinct channels, how to improve data tracking and reflux? How to use data of omnichannel and understand consumer more comprehensively and accurately?
While consumers are paying a premium for high-end brands, they are embracing high-quality products without a strong logo such as "MUJI". Brandless, an American e-commerce platform, sells products without brand names, focusing on product details as how much protein and whether it is organic or not. It is quite popular since people do not need to pay more because of any brand value. How important are brands to consumers' purchase decision making? How to make a balance between the brand image and what consumers truly care about?
The Internet of Things(loT) is changing every aspect of our life, starting a revolution in the retail industry. Smart home appliances and devices are emerging. Amazon and Walmart implement AI and loT to conduct big data monitoring and analyze consumers' buying habits to recommend intelligently and encourage purchasing certain foods to prevent expiring. When it comes to loT, what are the opportunities and challenges for retailers? What can brands do with loT to know more about consumers and launch targeted products?
More and more consumers expect enterprises to take actions as publicizing effectively to reduce food waste. Some European sci-tech innovation companies try to solve the food waste problem through APPs. They intend to help enterprises reduce waste and benefit people by dealing with social relief problems, a win-win solution.
It can be agreed that Oreo is one of the 'best at marketing' companies in the food industry. From the DJ box to the Forbidden City built with biscuits, Oreo is also the first customizable biscuit on which your face can be printed. How does Oreo combine digitalization with the food industry? What is behind Oreo’s other marketing strategies? What kind of marketing campaign can increase sales conversion rate?
Otto He, E-Commerce Head, Mondelēz Greater China
Kellogg’s of Australia and Crayola of America have launched a black and white breakfast cereal box which users can paint with color. They can bring the pattern into reality through AR technology in the browser on phone with the chance of winning a Crayola gift packet. This creative activity brings family members together, making breakfast and snack time more fun.
– What innovative business models are reshaping distribution?
– How can start-ups learn from the CPG giants?
– How can we use a "innovate and test" model to change from an online product to a brand on the mainstream platform?
– How can start-ups move from online to bricks-and-mortar and what are the benefits of such an unconventional approach?
According to the Report on Consumption Trends in 2018, "Lazy Life Style" is one of the eight consumption styles of contemporary young people. The habit of "reach it by hand" has also spawned more new ways of retailing, among which a new one, known as "vehicle shelves," moves store shelves onto cars. Cargo of the U.S. cooperates with Uber. In-car stores are also emerging in China: "NE•BOX" of Guangdong, "Gogo Car Bar" creating in-car boutique stores and "Mobile Go" of Beijing. Is in-car retailing really a good business that meets the needs of consumers or just another gimmick in the new retail industry?
What is the secret sauce of packaged beverage company's successful marketing in the catering channel? We will analyze the key gene of a beverage brand operating in the catering terminals: Hongbaolai, a beverage enterprise in Siping, more than 50% of sales come from the catering channel.
Brands reduce the cost of customers' choice. However, the advantages of big brands are weakened under the wave of "recommendation" iterates "search". The sales of traditional consumer brands are being eroded. To reverse this situation, brands like Mengniu, Yili, Wahaha and Nestlé began to prudently tried new channels at the beginning of 2018. And it has been a year:
How do they regard social e-commerce (merely as a compensation channel)?
What else did they attempt to do and how was the result?
What new plight are they faced with? How do they solve the problems?
How to restrain and decommercialize recommendation to increase users' trust?
Lady Penguin, Founder & CEO, Lady Penguin
This topic will extensively elaborate on how brands create high-quality product matrix, construct excellent content production mechanisms, build efficient IT systems, record every effective contact to implement an efficient online marketing closed-loop system.
Visual language, through shape, material, colour, and images, can be more effective and more efficient than written communication. This is especially true for food packaging. "The Power of Visual Language"explores the advantages of visual languages with plenty of examples from around the globe, and tries to convince the audience of the importance and the Power of visual language.
Marc Pruijssers, Program Manager Food Innovation, Senior Lecturer and Researcher Food Innovation & Packaging Design, HAS University of Applied Sciences
There are not many alcohol brands that are welcomed by young consumers, let alone strong liquor. But hold on, Absolut Vodka is definitely an exception. The ever-changing bottle tricks served as the best entry point for the marketing campaign of the "Absolut City" poster series; the "Absolut Blanks" provided artists with bottle-shaped canvas, a free space to let their talents sparkle; there are even 40 years of history of voicing for the LGBTQ group with rainbow bottles. Selling alcohol? More than that, it is selling art, fashion, and culture.
High end does not always indicate a niche. Many boutique stores in the UK such as Harrods, Harvey Nichols, Fortnum & Mason have large areas for food, beverage, and wine sections. Their exquisite packaging details speak for British luxury. Even the skincare brand, crabtree & evelyn, sells beautifully-designed delicious biscuits and tea bags on display and these stores are frequently visited by many people. These goods, with fascinating design in every detail and good fashion taste, attract people like magic and bewitch them to have a closer look. Coupled with a reasonable price, these goods are often purchased by most people. By contrast, there does not seem to be a real high-end food brand with such wide coverage in China. Some cases of transforming the packaging into high-end positioning had little effect. What is the problem? What can we learn and improve from cases abroad?
In your perception, does packaging serve as only a part in a brand marketing campaign? In fact, it can play the leading role in a marketing campaign without any change made on products. Coca-Cola is the perfect example of such practice. In the "It's Mine" program, Coca Cola partnered with HP Inc. to leverage their innovative HP Indigo digital printing technology and made Diet Coke available in millions of unique package designs. Coca-Cola created a psychologically cognitive interaction with consumers Diet Coke fans, as they officially says that "no two are the same – just like the fans who enjoy Diet Coke." How does Coca-Cola integrate resources and maximize the power of packaging over a large time span?
Steven Llewellyn, Design Director, The Coca-Cola Company
Suggest that Chinese consumers hardly thought about over-packaging in the past, the implementation of garbage classification will change the situation, at least make residents in Shanghai and Beijing get sick of multi-layers of packaging, especially the sticky tape that has to be torn off.
Amazon, one of the world's largest e-commerce platforms, created "Frustration-Free Packaging Programs." They worked with the International Safe Transportation Association (ISTA) to establish auditing standards and help those large suppliers who are willing to ship in their original packaging run numerous tests. If the packages can maintain a good shape during long-distance transportation, it can get the certification and there is no need to superimpose Amazon's special outer box anymore. As a result, they can only use the original packaging for transportation, reduce terminal waste and improve consumer satisfaction. Considering the volume of the Chinese e-commerce market, this is undoubtedly a huge and elaborate project. How much can we learn from it?
Driving sustainable packaging through innovation means developing new ways to connect people to products -- packaging that enhances relationships between brands and their customers, and minimizes environmental impact in parallel. While sustainability is about reducing impact on the environment, we also think it’s about considering and accelerating transition to the circular economy which the UK-based NGO, the Ellen MacArthur Foundation, describes as a multifaceted approach with a focus on embracing sustainable design, using regenerative materials and collecting end-of-life products for continuous use in the economy. Consumer expectations for sustainability are driving pointed conversation about what is needed to ensure that product packaging is right-sized to eliminate waste, made from renewable resources, and recyclable for material re-use. We will share how we explore ways to advance the functionality and sustainability of fiber-based packaging, and highlight partnerships that prove we can accelerate sustainable packaging to serve brands, consumers and the environment — together.
Quentin Yan, Sr Manager/Director, Asia Pacific Market Development, Consumer Packaging, WestRock
The beverage industry produces 17 million tons of plastic every year merely for packaging. Plastics eventually travel to every corner of the world, damaging the environment and impacting on the ecosystem. Alternatives intending to replace plastics, but it is difficult to break through the bottleneck of large-scale production. The traditional method of four-pack or six-pack does not help. The plastic wrap is easily torn and thrown away, which consumers strongly criticize. Leo Burnett from Mexico offered Corona Beer a brilliant idea: why not make use of the inherent characteristic of the can and stack them together? They added a spiral to the lid and the bottom. Consumers could screw cans into one another and easily take them up to 10 at a time. The design significantly reduces the cost of beer packaging. Twisting before drinking, how brilliant!
Nicolas Rivollet, Global Director, Strategy and Marketing, Penn Color
A growing number of newcomers in the food industry are born with distinct design genes. Chobani, Halo Top, TAPPED Birch Water, LePur, Chicecream, Saturnbird, Smeal and many other outstanding start-up brands, which we don't know names, are emerging one after another and surprising us. If start-ups with limited resources and budget want to overawe others by design, how feasible and successful is it? There are internationally renowned design agencies who help start-up brands do the design. How do they view the relationship between brand development and design?
Brands that need to express their stories can harness the power of 3D Branding. 3D Branding merges the three-dimensional and graphic attributes of the package to the point of making them inseparable, which allows for an immediate emotional response from consumers. Seizing 2D and 3D design resources enhances the storytelling capacity of the packaging and creates lasting ties with consumers.
This speech includes a tour of design projects for global food, beverage, personal care and household brands. Stories, anecdotes, methodology and design process where the identity of the brand is communicated through 3D Branding, fruit of the synergy of structural and graphic design.
Hernán Braberman, Partner and Executive Design Director, Tridimage
With the rapid development of the FMCG industry in China, more F&B brands who are well aware of the importance of brand-building have embarked on finding design resources from abroad. Assuming you don't need to worry about the budget, does it concern to you that the language and the cultural gap could be barriers for international design collaboration?
Communication is indeed a significant part, but how foreign designers deconstruct and reshape the cultural concepts and brand values that the local Chinese brands intend to convey is a very interesting topic worth the discussion. Mousegraphics from Greece made stunning visual works for many local Chinese brands such as Nongfu Spring (milking tea, vitamin water, fruity water, and 17.5°), Uni-President (Assam, Yaha, LangDuo) and Yili (YiRan). It surprises Chinese consumers aesthetically and cognitively with very modern and fashionable design. How? Before you brief foreign design agencies and discuss KIP, let's move to each other's perspective and try to understand how they perceive what you want to convey.
1. A good use of the waste from processing of the fisheries industry can be a solution for the future environmental-friendly food packages.
2. A thin “peel” of edible plant material on the surface can make the fruit live longer and reduce waste.
3. Compared with consideration with the wastes after production, can we control it from the very beginning?
After McDonald's renamed to "Jin Gong Men" which literally means "Golden Arches" in China, the name was once teased hardly among Chinese netizens. It is not until this fast-food chain with international reputation redesigned and integrated its brand image in various markets around the world that people gradually understand the concept of the "Men (means arch)". Also, the new brand request of the character M can be solely displayed has enlarged the room for the creativity from the "arch concept" to win.
The rise of the national tide has spread from the fashion and culture industries to the food industry. "Rediscover Chinese Music" limited edition of Mengniu Milk Deluxe, Beijing embroidery version of Mengniu Hi Milk, "Gold New Year gift box" from Laiyifen, "Taste of Royal Palace" gift box from Be&Cherry, "Palace Reserved Pure Milk" from Sanyuan, etc., all these cases use packaging to win popularity by leveraging the rise of Chinese fashion and the trend of Chinese style. However, how long can this trend last in the F&B industry? Food with Chinese fashion, how much does it appeal to the youth? And what kind of design is the proper way for the F&B industry? Let's brainstorm and share our thoughts!
Panelist: Sammi Kong, IP Business Director, Derivative Works
Money is pouring into the food and beverage market, with investors betting consumers fast-changing habits will unlock growth in new categories and features. Using CB Insights' proprietary platform, we will diagnose and explore the emerging global food and beverage trends that incumbents must plan against to avoid falling behind.
1.Interpretation of changes in the consumer market globally, best with some brand cases;
2.Forecast future trends.
Thomas Sineau, Senior Intelligence Analyst, CB Insights
According to Food+Tech Connect, AccelFoods, a top investment fund of the F&B industry, is one of the most active companies in the U.S. in 2018 and has participated in 22 investment transactions.
"Where small companies grow big." Harmless Harvest, an organic coconut water brand invested by AccelFoods, has become a popular brand in the U.S. and received a $30 million investment lead by Danone Venture Capital Fund. Aloe Gloe, an aloe water brand, invested by AccelFoods was acquired by Coca-Cola. Recently, AccelFoods invested some promising start-ups: plant-based protein drinks KOIA, vegetable rice producer RightRice, cultured meat brand Alpha Foods...
1. Interpretation of the trend of innovation and entrepreneurship of the F&B industry in the U.S.
2. The segment industries and investment strategies that AccelFoods focuses on.
3. What are the criteria of the "star of tomorrow?" Share some advice with start-ups.
Under the wave of consumption upgrading, the F&B industry, as a major component of essential consumer goods, attract attention from many investment institutions. However, the F&B industry also requires experience and accumulation, which involves multiple links and a relatively long investment cycle. As a result, investors need to study the industry thoroughly and make judgments with professional knowledge for the future. They also need to bring strategies and management to start-ups after the investment is completed. Only in this way can they grow together with start-ups.
1. In addition to providing funds, what resources do the investment institutions need to share
2. What are the key issues in the development process of startups? What are the classic problems? How can investors help?
3. How can investors improve their "capital" and "wisdom?"
Tim Xi, Chairman, New Hope Dairy; President, Grass Green Group
"Run for half a year, sold 50,000 pops in 40 minutes, Chicecream reached 4.6 million sales and won the champion of the frozen food category in the "Double Eleven" shopping festival in China"; "The new round of financing for HEYTEA is heatedly discussed and investors believe it's a good deal"; "Beyond Meat soared 163% on its first trading day and became the best IPO since financial crisis"... In the past year, many start-ups in the F&B industry achieved great success – you learnt that by the news headlines. The F&B industry is receiving attention and expectation from everyone. Excellent start-ups deserve favor from consumers and investors, and the market.
1. Why are these companies worth investing? What is the logic behind the investment?
2. How to value the F&B industry? How is it different compared with other industries?
The traditional fee mechanism of the service provider is mainly service fees or monthly fees. Under the new cooperation mode, agents can exchange services for equity of start-ups or charge fees based on operation performance. For start-ups, this means they can trust their agents and conduct projects with a lower risk of cost. For agencies, they can directly connect with senior managers of Party A without pitching the giants, and they can enjoy the benefits of start-ups' business growth.
FBIF2020's special section - the venture capital Road Show: private chat rooms on the site for talks with top investment institutions. The entrepreneurial teams of the finalist will join one-on-one conversations with senior investors. The Road Show aims to bridge the dialogue between start-ups and investors, promoting the rise of innovation in the food and beverage industry.
The factors behind start-ups success are worth exploration:
1. For the supply chain: Does the self-built factory guarantee the quality of R&D and production capacity while controlling the efficiency, cost, and pricing? Or is it better to integrate existing resources and cooperate with partners?
2. For product and brand: How to create a delicious product and build an impressive brand?
3. For channels: In the era of diverse, complex and fragmented channels, how to promote products and marketing? How to maintain existing customers and attract more?
Xiaoxian Lin, Founder, Xiaoxiandun
In 2016, 11-year-old Chobani founded Chobani Incubator, hoping to leverage its entrepreneurial experience to help start-ups that intend to challenge the food industry, drive industrial development and provide better food for consumers. The selected project will receive a $25,000 nonequity investment from Chobani and participate in a four-month incubation program. Chobani will invite them to factories and offices, train with in-house executives and industry professionals, and offer a range of courses. Meanwhile, Chobani continues to optimize its main business and invest in the upstream supply chain. It is worth mentioning that the past five incubation projects hardly overlapped with Chobani's business lines and the projects are relatively dispersed and independent in terms of categories. Chobani mainly chooses projects with spirits of exploration and innovation. According to FoodNavigator, projects in the first 2 incubations experienced average revenue growth of 67% in the 2017-2018 fiscal year and accumulated more than $60 million in follow-up financing.
Chobani Incubator, carrying the wish of both the founder and Chobani, is promoting the development of Chobani's platform as well as the industry ecosystem.
1. The entrepreneurial story and experience of Chobani.
2. Why set up Chobani Incubator in 2016?
3. How does Chobani Incubator choose projects?
4. Incubation experience sharing, how does Chobani develop along with the projects?
5. What surprises will Chobani Incubator create in the future?
With the upgrading of traditional enterprises, the influx of capitals, the cross-border application of new technologies and the increasingly active entrepreneurial ecology are promoting the changes in the agriculture and food industry forward steadily from the field to the table.
According to Bits X Bites and Agfunder, in 2018, the number of VC investment events in the global agricultural and food technology industry reached 1,450, an increase of 10.5% over the previous year. The total amount of financing of Chinese agricultural and food start-ups reached $5.8 billion with 283 transactions. Compared with 2017, the financing amount increased by 222%, and the transaction volume increased by 60%. In 2018, upstream innovation also accelerated, which increased 800% with the investment of nearly $1 billion, much higher than the previous year's $106 million investment.
1. Interpret the latest report.
2. Analyze trends based on data.
3. Vision the direction of future development.
We are entering a new era of technology-driven ABCD (AI + Blockchain + Cloud + Data)+F&B.
The "traditional" food industry will integrate with the "Consumer Internet" and "Industry Internet" to connect, restructure and upgrade the entire industry chain. By leveraging the Internet and applying technologies such as big data, cloud computing, and artificial intelligence, we can better design products that meet consumer needs, organize production more effectively, and achieve product distribution and sales more effectively. Also, the upstream, midstream and downstream of the industrial chain will be connected; the industrial boundary will be broken; the barriers of interest division will be broken through to reconstruct the entire industrial chain and improve productivity. The digitalization of the F&B industry will optimize the organizational structure, improve efficiency, and accelerate the iterative upgrade.
1. Interpret ABCD+F&B.
2. How do investors participate in this change? What are the opportunities?
3. What is the logic behind the investment?
4. Suggestions for start-ups.
FBIF2020’s special section - the venture capital Road Show: private chat rooms on the site for talks with top investment institutions. The entrepreneurial teams of the finalist will join one-on-one conversations with senior investors. The Road Show aims to bridge the dialogue between start-ups and investors, promoting the rise of innovation in the food and beverage industry.