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 without work and more than half of the world is in a solitary position.
The coronavirus epidemic is the most disruptive global phenomenon ever since World War Two. The world we was familiar prior to the turn of the millennium 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 weather the storms that lie ahead today, more than ever before, future food investment is notable because of its importance and strength, as well as its opportunities , and the benefits it can bring.
Rewiring supply chains
The pandemic is awakening businesses and governments to the importance of food. This has not been a pleasant wake-up signal. The strength of supply chain food suppliers has been tested to the limit as whole models change from restaurant to retail or home delivery. Many retailers including the largest brand names were dire need of innovation prior to the financial crisis. They now require more than ever before, however, budgets are moved away from R&D to other , more immediate issues.
All of this opens up endless opportunities for cooler-headed speed mover. Intense sanitary needs and social distancing will continue to be the main requirements for warehouses and processing facilities. This will happen regardless is happening, and it could delay things or require new technologies to be developed that permit more from afar. Traditional systems have stifled some of these innovative ideas from being implemented in the past, however the current conservatism is no longer viable.
Automating and digitizing supply chain processes is a necessity and technology is rapidly evolving to tackle the challenges. Computer vision plays a part in remote quality monitoring that provides continuous control and analytics. New techniques for refrigeration are being developed as well as better bio-packaging and drone delivery options.
Consumers in the “new normal’
The elasticity of supply chains has been tested by the radical shift in consumers , too. There has been a lot written about the increasing sales of protein-based plant companies during the current crisis, which is the acceleration of an already existing 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 as well as other data sources, an entirely new standard is already forming within the population of the public. The interest for “immune system” has increased 66% from February, data from the firm’s analysis indicates. Interest in “stress relief” as a function-related benefit of food is up by 12 percent in the past year and is expected to rise over the next few months. For instance rosemary, which is widely believed to ease stress, has been rising 114% in conversations about stress relief in the past year.
In examining several other data that are contained in the Tastewise information the senior industry executive Dr Ellen De Brabander sees a increasing demand for traceability. It’s becoming clear that consumers and regulators are requesting greater traceability of ingredients and products. They can only be made possible through the rapid spread of digital technologies, be it they are RFID, QR codes satellite imagery, blockchain.
It’s worthwhile to think about whether any of these Tastewise fashions will become a new norm for the long term or something that will fade after the lockdown ends. It is impossible to predict whether certain trends that are taking place today, such as eating breakfast in your home, will end in the next year, but in some way, you’ll have to be able to respond rapidly, and not think that you’ve selected 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 also have to be prepared for the possibility of the virus as it spreads around the globe. The science community is as much than 18 months from having a vaccine, the research is focusing on the various ways to fight against the virus by staying in a healthier metabolic state. According to a leading Endocrinologist, and the Director of the Glandt Center for Diabetes Care Dr. Mariela Glandt, survival rate of Coronavirus will have an impact on what we eat and how we eat. More than 70 percent of US people suffer from a kind of insulin resistance which hinders the body’s ability in fighting the disease. This is the Metabolic Syndrome, where, due to insulin resistance the body is unable to handle its nutritional needs, causing crucial white cells become weak and ineffective leaving the body susceptible to illness and infection, and vulnerable to dangerous Coronavirus.
Within Europe and Asia in Asia and Europe, there is a Coronavirus mortality rate generally affects the elderly. In contrast, Dr. Glandt believes that a younger population being affected within the US in the United States, where a lot of people are suffering from Metabolic Syndrome. “Put in a simple way, we’ve been ill through the food we consume.” Dr Glandt explains. “Refined sugar and refined oils, as well as fats, and preservatives are causing us to be more susceptible to cancer, strokes and cardiovascular illnesses and are responsible for causing many of the life-threatening illnesses that are making the patients suffering from Coronavirus extremely sick.” Dr. Glandt is the co-founder of EatSane which is a Tel Aviv-based business that specializes in low-carb alternatives that lower the chance of developing Metabolic Syndrome. She believes that the coronavirus ring is an alarm signal for all people of the world to reset their diets and not only treat diabetes, which is at the root of many health issues, but to tackle the root of the issue: “Going cold turkey on carbs can be difficult to sustain, but cutting down on the amount of carbs you consume slowly is the most effective method to lower levels of insulin and their susceptibility for Metabolic Syndrome.”
We are witnessing more FoodTech companies similar to this. Each one is exploring in its unique way ways to still enjoy our food and still be healthy. As the consequences of the most deadly pandemic that will strike the modern world emerge, sugar-reducing solutions such as low carb bread and low-carb chocolate are the solution that are desperately needed by the world as it prepares to face the Coronavirus in its strongest healthiest metabolic state. They are also welcomed allies to the wasteline for those who remain in their homes.
However, these companies may be disappointed in a sluggish financial environment. The current financial climate is a reminder to an experienced entrepreneur as well as PeakBridger Rick Borenstein of the 2008 financial crisis and its aftereffects. “The most obvious resemblance is the challenging fund-raising environment venture-backed businesses are confronted with,” he tells us. “Capital preservation was the prevailing theme in 2008 and it remains exactly the same as it is today. I launched an investment fund in the month of March 2009 and was immediately awed by the target-rich atmosphere it was at the time. Any company, regardless of how thrilling, needed funds. I turned these circumstances 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. He believes that the Coronavirus will make people better aware of potential positive roles that their investments could be playing in a world that is set to re-enter the fray: “I expect investors to be more interested in the social implications of the investments they make in, and this could result in a significant boost to those in the FoodTech as well as Agtech industries.”
Food that is delicious and never going away
Food, in fact is one of the most stable industries. Contrary to the terribly hit entertainment and tourism industries during times of recessions or even pandemics, people have to provide food for the table, and plenty of it.
It’s the reason it’s one of the sectors that must press to the limit in the face the threat of a new virus. As unemployment rises in the food industry, it is currently on a massive hiring rampage. PepsiCo has announced that they would be employing 6000 additional employees to meet the soaring demand caused by the current crisis. Similar news is reported from Papa John’s, Mondelez, Dominos, Kelloggs and other giants in the food industry — all of which have announced the creation of thousands of jobs as they attempt to satisfy an already hungry, anxious, and overstocked customer base. General Mills recently said it has increased its 2020 forecast because customers are stocking up on its snacks and cereals. The the demand for food increased but it has not slowed down however, it has grown exponentially.
The Food and Beverage sector has dramatically exceeded the S&P 500 from the middle of February (see figure C) similar to what it experienced in the US as well as Europe in the years after the 2008 financial crisis.
The awakening of the environment
The Coronavirus has brought the world down in its ways in a way that other threats to our existence could only dream of. In the end, it is an opportunity to think 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 they thought they were shielded against, our thoughts are beginning to develop towards a reboot towards a more green and cleaner world beyond 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 ecological fabric and you can’t be saved? Consider Ebola The virus was in existence for about over a decade, people were aware about it, but we ripped enough of of the ecology within the region where it was able to get away. The current situation with Coronavirus is similar. The ecology has been impacted to the point where it’s not able to heal. We’ve lost our buffers.”
All in all, Shapiro believes we are living in opportune and unique times for agriculture and food: “For the first time in human history, we can have a united view of food and agriculture. We know the food we eat on a molecular level and what it does in our bodies, and why every single food ingredient is crucial to our well-being, health or growth. The awareness of this isn’t on its own, but in tandem across the whole field. We are beginning to learn the best ways to approach things.”
Shapiro says that, since the markets fell and he has heard nothing but on his business news channel is the incredible worth in Apple or Google stock. However, he believes the real worth lies in the companies who understand what food is, and possess the tools and knowledge to create something unique. “What If you handed Machine Learning the rules for food? What kind of tomato could it come up with?”, he speculates with excitement. “Fast shifting food businesses who understand science will be able to transform the way we think about the food industry in the next decade.
After having spoken with those who are thinking in our network, it’s time to sit down and reflect. When thoughts turn to the next day we’ll be looking at the following future investments:
Their importance to the current issues and ‘pains’ we confront
The safety of the industry
Their revolutionary innovation
The role they’ll have in shaping our world
Their value on the market
FoodTech in 2022 checks several, if not all the 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 be spending our days at home.