Infecting the industrialized world like an Australian bushfire Covid-19 has ravaged communities that it has left behind. Stock markets have collapsed as do Arctic glaciers on July. Millions of people are unemployed More than half of the world’s population is in a solitary position.
The coronavirus epidemic is the most disruptive global incident in the world since World War Two. The world we was familiar when the millennium was twenty is expected to appear and behave in a different way as we enter an era of new decade.
In a time when investors are looking for diversification to withstand the challenges ahead today, more than ever before, FoodTech is notable because of its importance in terms of strength, strength, opportunities , and the benefits it can bring. We’re sure to say that We’re FoodTech VC however, below we’ve outlined some of the unique ways FoodTech can navigate this storm.
Rewiring supply chains
The pandemic is awakening corporations and governments to the importance of food. This has not been a positive wake-up signal. The strength of supply chain food suppliers has been tested to the limit as whole models shift from retail to restaurants as well as home deliveries. A lot of retailers including the largest names, had been in dire need of new ideas prior to the recession. Today, they require more than ever before, however, budgets are taken away from R&D to other , more immediate issues.
This opens up huge opportunities for cooler-headed speed mover. Increased sanitary requirements and social distancing are likely to be the main requirements for warehouses and processing facilities. It’s inevitable regardless of what happens the outcome, and it’s likely to delay things or require new technologies to be developed which allow for more remotely. The stale legacy systems that have been in place for a long time have prevented the innovations from the market in the past, however the current conservatism is no longer viable.
Automation and digitisation of supply chains is a necessity and technology is rapidly evolving to meet the demands. Computer vision plays a part in remote quality monitoring that provides live control and analytics. New techniques for refrigeration are being developed as well as better bio-packaging options or drone delivery.
Consumers in the “new normal’
Elasticity of the supply chain has been tested by radical changes in consumer behavior too. There has been a lot written about the increasing the sales of companies that produce protein from plants during the current crisis, which is and the acceleration of a long-standing trend towards flexetarianism, or veganism. There is also an increasing need for food items that is healthier. Based on data we’ve received from Tastewise the Peakbridge Portfolio company which collects information about food from social media along with other information sources, a brand new standard is beginning to emerge within the population of the public. The interest on “immune system” has increased 66% from February, data from the firm’s analysis illustrates. Interest in “stress relief” as a benefit of food has increased by 12 percent this year, and is expected to rise in the months ahead. For instance the herb rosemary, which is commonly believed as a stress-reducing herb, is rising 114% in conversations about stress relief in the past year.
In examining several other information that are contained in the Tastewise information the senior industry executive Dr Ellen De Brabander sees a increasing demand for traceability. It is now evident that, according to her, consumers and regulators alike are requesting greater traceability of ingredients and products. They can only be made possible through the rapid deployment of digital technologies, be it they are RFID, QR codes satellite imagery, blockchain.
It’s important to consider whether some of these Tastewise trends will be a permanent new normal or something that will fade after the lockdown ends. There is no way to know if certain trends that have been gaining momentum today, such as eating breakfast in your home, will end within a year. But it is essential to be able to respond rapidly, and not believe that you’ve picked the right scenario. This ability to swiftly react to the changing situation is going to be more crucial than ever before, and the companies that can do things that are going to be a big time.
Sugar reduction, healthier living
Food markets will also have to be prepared for the possibility of the virus as it spreads around the globe. The science community is as much in the range of 18-months away from having a vaccine, much attention is being paid to the various ways to fight against the virus by staying more energetic. According to a leading doctor of endocrinology and director of the Glandt Center for Diabetes Care Dr. Mariela Glandt, Coronavirus survival rate will be influenced by much to do with what we eat and how we eat. About 70 percent of US people suffer from a type of insulin resistance that can hinder the body’s ability in fighting the disease. It is known as Metabolic Syndrome, where, because of insulin resistance, the body can’t manage its food intake, which causes crucial white cells become weak and ineffective and leaves the body vulnerable to disease and infection and vulnerable to fatal Coronavirus.
Within Europe and Asia in Asia and Europe, there is a Coronavirus mortality rate is generally affecting the elderly. In contrast, Dr. Glandt believes that a younger population of people to suffer from the US which is where the majority of are suffering from Metabolic Syndrome. “Put in a simple way, we’ve developed illness due to our diets.” Dr. Glandt tells us. “Refined sugar along with refined oils, fats, and preservatives have contributed to our predisposition to cancer, strokes, and cardiovascular illnesses and have caused many of the life-threatening illnesses that have made patients with Coronavirus so seriously ill.” Dr. Glandt is the co-founder of EatSane the Tel Aviv-based business that specializes in low-carb alternatives which reduce the chance of developing Metabolic Syndrome. She believes that the coronavirus is an alarm for all people of the world to reset their diets and not only combat the diabetes that lies at the root of many health problems, but instead tackle the root of the issue: “Going cold turkey on carbs can be difficult to sustain, however reducing the amount of carbs you consume slowly is the most effective method to lower levels of insulin as well as their susceptibility for Metabolic Syndrome.”
We are witnessing more FoodTech companies similar to this. Each company is looking for their unique way ways to still enjoy our food yet remain healthy. As the consequences of the most deadly pandemic that will befall the world of today emerge, sugar-reducing solutions like low-carb bread and chocolate that is low in carbs are the solution that are desperately needed by the world as it prepares to face the Coronavirus in its strongest condition of its metabolic health. These technologies are also welcome allies to the wasteline for people who are stuck in their homes.
Yet, such companies may be disappointed in a sluggish financial environment. The current state of the market is a reminder to an entrepreneur who has been in the business for a long time as well as PeakBridger Rick Borenstein of the 2008 financial crisis and its aftereffects. “The most obvious connection is the challenging fund-raising environment venture-backed companies face,” he tells us. “Capital preservation was the norm in 2008 and it remains exactly the same as it is today. I set up the seed fund in the month of March 2009 and was immediately amazed by the target-rich environment was in place at the time. Every business, no matter how thrilling, needed funds. I used the situation in my favour. My money, however small it was in the moment was accepted to the best deals.”
Borenstein believes that while the economic effects of the virus may be long-lasting, certain sectors are solid and are expected to rebound. The Coronavirus could make people better aware of potential positive role their investments could be playing in a world that is set to re-enter the fray: “I expect investors to become more aware in the social implications of the investments they make in, which could mean a major increase in sectors like the FoodTech as well as Agtech industries.”
Food that is delicious and never going away
Food, in fact is among the industries that are least affected by cyclicality. In contrast to the heavily impacted entertainment and tourism industries during times of recessions or downturns, and even pandemics, we still have to provide food for the table, and plenty of it.
This is why it’s one of the sectors that must press forward in the face of the threat of a new virus. As unemployment rises in the food industry, it is currently on a hiring rampage. PepsiCo recently announced that they would be hiring 6000 workers to cope with the soaring demand caused by the current crisis. Similar news is reported from Papa John’s, Mondelez, Dominos, Kelloggs and other giants of the food industry — all of which have announced that they will create thousands of jobs while they try to feed an eager, hungry, and customers who are stockpiling. General Mills recently said it has increased its forecast for 2020 in the wake of customers stocking up on snacks and cereals. The the need for food not decreased however, it has grown exponentially.
The Food and Beverage sector has substantially over-performed S&P 500 from the middle of February (see the figure below) like it did in the US as well as Europe in the years after the 2008 financial crisis.
Rewakening the environmental
The Coronavirus has caused the world to stop in its track in a way that other existential threats would only dream of. In the end, it is a time to consider something about more than hygiene and personal health. It is the time to consider the impact that our species is having on. As we humans scream in the environment that they believed they were protected from, thoughts are starting to develop towards a reboot towards a more green more hygienic, healthier, and fairer planet that is not surrounded by our bubbles. This is a problem that the FoodTech industry has the potential to take on.
When we discussed the issue with a long-serving chief agriculture officer at Mars and our friend Peakbridger Dr Howard-Yana’s ShapiroDr Howard-Yana Shapiro emphasized the extent of an environmental hazard this is. “How many times do you damage the ecosystem’s fabric and it can’t be saved? Consider Ebola The virus was around for since the 1980s, and people were aware about it, but we ripped enough of of the ecosystem in the region where it was able to get away. The current situation with Coronavirus is similar. We’ve ruined the ecology to the point where it is unable to heal. We’ve lost our buffers.”
In all, Shapiro believes we are living in opportune and unique time for agriculture and food: “For the first time in our history, we have a common understanding of food and agriculture. We now know the food we eat on a molecular level and the role it plays within our bodies and the reasons why each ingredient is crucial to our well-being, health or growth. The awareness of this isn’t in isolation, but is happening simultaneously across the whole field. We are now beginning to comprehend what we can do.”
Shapiro says that, since the market crashed and he has heard nothing but on his business news channel is the incredible price that is Apple or Google stock. However, he believes the real value is in companies that know what food is, and possess the science-based tools to make something different. “What If you handed Machine Learning the rules for food? What type of tomato could it come up with?”, he speculates enthusiastically. “Fast changing food companies who understand science will be able to alter the perception of the food industry in the next decade.
After contacting those who are thinking in our network, it’s time to reflect on our own home. When thoughts turn to the next day we’ll be looking at future food investment in the following manner:
Their importance to the current issues and ‘pains’ that we currently confront
The security of the business
Their revolutionary innovation
The important role they can have in shaping our world
Their value on the market
FoodTech in 2022 is a good fit for several, if not all one or more of the following boxes. FoodTech investment offers the chance to reap significant rewards and the chance to take positively in a world changing its course. That’s how we’ll spend our time at home.
The Role of Alcohol Rehab Johannesburg in Helping Individuals Rebuild Their Lives
Professional intervention is crucial for anyone suffering with alcohol addiction since it profoundly affects people, families, and communities. Attaching treatment...
