Fieldfisher was delighted to sponsor the Future Food Tech Conference which took place in London last week. The two-day event was extremely well attended by new and established companies engaged at all stages of the food supply chain.
Having spoken to most of the companies in attendance, here are our views on the challenges and opportunities which present themselves in the Food-Tech industry:
1. The last couple of years have been pretty tough for
alternative protein business, from a revenue perspective. Global
economic headwinds and the Cost of Living Crisis have had a
significant impact on sales. Alternative protein products are
generally more expensive than the meat offerings they seek to
replace. When finances get tight then lifestyle choices will be the
first to be cut from the household budget. Most companies selling
products will have endured stagnating growth and possibly evening
declining revenues as a result.
2. However, a challenging period like this has not deterred
substantial interest and investment from gravitating towards the
sector. This was reflected by the significant number of Banks,
Analysts, and Investment Funds in attendance at the conference.
Bloomberg, JP Morgan, Rabobank, and McKinsey (to name a few) were
all there and were taking a keen interest in the proceedings.
Fundraising in this sector appears to have been less challenging
than others in recent years.
3. Then there were the Conglomerates - Google, Unilever, Siemens,
Danone, Nestle, Tate & Lyle – all were present and fully
engaged in identifying their place and position in this growth
sector. Whether it be the brands and products themselves, or the
ancillary applications such as Generative AI, Automation, or
Patentable Tech... there was a huge amount of interest from a
number of big corporations.
4. The panel events in the main auditorium were engaging, but the
real entertainment was found in the smaller room where the Start-Up
pitch event was taking place. It was standing room only as
delegates crowded in to hear a number of companies make their case
for investment. The quality of the pitches varied, but there was no
doubting the intrigue generated by the novel products that were on
offer.
5. For the cellular agriculture companies (lab-grown meat, etc..)
the regulatory burden is a heavy one, and threatens to stifle
progress in the sector. With the event being held in London, there
was a great deal of interest in the UK's newfound ability to
diverge from the rigid approach taken by the European Commission in
respect of Novel Food compliance. The Food Standards Agency were in
attendance, eager to portray the UK as a welcoming jurisdiction for
businesses of this nature. You can read more about the FSA's
efforts for reform the UK Novel Food regime in our article here.
6. Most interestingly, there was an urgency for collaboration in
the air. On delegate suggested that perhaps the perfect alternative
protein product would in fact be a combination of plant-based
product with added meat/fat cells to provide the right taste and
texture. Just last week, two companies in attendance at the
conference announced a partnership. Nosh.bio, a Berlin startup
developing ingredients from fungal biomass for animal-free food
products, will work with Ginkgo Bioworks. The partnership aims to deliver sustainable
products that taste closer to real meat than ever before.
The Food-Tech industry has a clear understanding of the key
challenges to be addressed. The consensus is that these challenges
must and will be overcome. Food security for future generations
depends on it, and it will be innovative companies like those
attending this event that will lead the way.
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