The Business of Food Attracts Investments

Foodtech is a blanket term for food sciences that develop new and innovative solutions for food growth, processing, cultivation, production, and distribution. Throughout the years, the industry has moved from public skepticism to an industry with the potential to ensure a sustainable future. Resultantly, investors are abiding to the saying: put your money where your mouth is. According to CUBE, global investments increased by 58% between 2015 and 2016.

But how does the industry hold up for startups in Southern Sweden? We’ve spoken to two companies at different ends of the Foodtech-scale: Innoscentia and Local Food Nodes.

“One Day’s Extra Shelf Life Saved 140m SEK Per Year”

Innoscentia creates a bacteria-detecting sensor that accurately predicts the shelf life of produce. This startup was founded by Robin Thiberg and Erik Lindberg in 2015 and is a direct result of a fortunate research-hap by Martin A. Olsson, PhD graduate at Lund University, who discovered a special powder that detects the presence of volatile bacteria in food. Paired with NFC technology, the sensors collect data that indicate food degradation. Consequently, producers and retailers are able to process food effectively, save costs and increase food safety.

“Food safety is a highly-prioritized issue in the European Parliament, in The United States and in China. With real-time analysis of volatile food bacteria, you’re able to prevent foodborne outbreaks. In addition, unreliable and static methods of establishing a product’s shelf life results in food waste and economic loss”, says Robin Thiberg, CEO of Innoscentia.

He continues:

“We conducted a case study with a British company that specializes in fresh chicken filets, and they told us that one extra day’s shelf life saved them 140 million SEK each year. And that’s only within one single product category”, says Robin Thiberg, CEO of Innoscentia.

The Goal: To Make Food Local Again

Local Food Nodes, founded by Albin Ponnert, organizes the distribution of locally-sourced produce by creating a direct link between producer and consumer via a digital tool. Operating on the goal to make food local again, consumers are presented with a wide array of produce that they can book and pick up at designated destinations. As an effect, local and economic development is boosted.

“Local Food Nodes has its origin in my vision to eat what I grow. And as a solution-oriented person, I wanted to create a way for food producers to sell their produce directly to local consumers – without the middleman”, says Albin Ponnert, Founder of Local Food Nodes.

He continues:

“It started as an experiment carried out at Bygdens Saluhall in Röstånga. It created a lot of buzz and attracted national and international attention. So we created a digital tool that makes the concept available to a larger public. The amount of users is increasing steadily.”

Know Your Market – And Solve Its Problems

Even though Local Food Nodes and Innoscentia are at different ends of the Foodtech industry, they both emphasize the importance of knowing your market. Albin Ponnert developed the digital tool in coherence with the opinions expressed by producers and consumers. Robin Thiberg says that he and Erik developed their sensors by introducing their bacteria-detecting powder to retailers in the food industry who wanted to be able to detect food degradation digitally. To learn more about food production, you can go to Stanislaus Food Products.

A Region in the Nucleus of Food

As a hotspot of high-tech companies, research facilities and business competence, southern Sweden is a region in the nucleus of innovation and a fertile and flourishing ground for continuous advancements within the field of Foodtech. Albin Ponnert says that Southern Sweden has exquisite prerequisites with its impeccable agricultural landscape and great infrastructure. Robin Thiberg, CEO of Innoscentia, says that is was a no-brainer to establish their Foodtech business in Lund:

“Martin, Erik and I have ties to the region. But also, why move to Stockholm and increase your costs with 200% when everything we need is right here? Southern Sweden has strong food processing and packaging industry, it’s a cluster for life sciences and advanced technologies and has a strategic position close to Denmark, Germany and other international markets.”

So, what should you keep in mind when establishing a Foodtech company in Southern Sweden? Albin and Robin both agree that it all boils down to knowing your market. The key, they say, is to pinpoint a problem, listen to the market and create solutions that meet their needs!

More reading on the same subject: 5 Foodtech Startups You Need To Put On Your Radar

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Foodtech: A Conscious Industry On the Rise

Foodtech is a blanket term of food sciences that aim to effectivize and develop innovative solutions for food growth, cultivation, production, distribution, and processing. Since the industry’s infancy from Nicolas Appert’s food preservation process, Foodtech has grown with sustainability in mind and investments on the rise.

“We need to feed billions of people and the population is growing. So it’s important to invest in various aspects of Food Technology such as nutrition and food processing in order to create a sustainable future.” says Federico Gomez, Programme Director of the MSc in Food Technology and Nutrition at Lund University.

A Region of Innovation

With strong ties between academia, research and business: innovation runs through the veins of Southern Sweden. For the eighth year in a row, Sweden ranks as the number one innovation leader by the European Innovation Scoreboard, and Southern Sweden is highlighted as one of the most innovative regions in Europe.

“The Öresund region is a region of innovation with a high degree of industrialization and support from the State. Innovative ideas and new things are constantly coming out.” says Federico Gomez, Programme Director of the MSc in Food Technology and Nutrition at Lund University.

Considering that 26% of the country’s national agricultural revenues originates in Skåne, perhaps it doesn’t come as a surprise that Southern Sweden and the Öresund region are becoming a hub for Foodtech innovation. So, let’s convert regional innovation into five quantifiable examples of Foodtech startups based in Southern Sweden:

Oatly AB

With their mission to improve the wellbeing of individuals and the planet alike, Oatly AB produces oat-based products enriched with enzymes that turn Swedish oats into nutritious food. Sprung out of research conducted at Lund University by Professor Rickard Öste, Oatly production and development center in Landskrona and has expanded their products to over 20 countries around the world.

Innoscentia

Innoscentia AB reduces food waste through the production of a cheap bacteria sensor that analyzes a product’s shelf life. The accuracy is due to the sensor’s ability to detect the presence of volatile food components that indicate food degradation. Innoscentia was founded by Erik Lindberg and Robin Thiberg in 2015, and has since received funding from Vinnova and LU Innovation as well as won numerous awards such as the EAT-Forum Global Innovation Award in 2016.

Doktorhonung

At the crossroads between Foodtech and Biotech, you’ll find the producer of Swedish super honey: Doktorhonung. As the direct result of research carried out at Lund University by Tobias Olofsson and Alexandra Vásquez, Doktorhunung has unlocked the secret to keep  13 lactic acids bacteria, which previously couldn’t survive outside of the beehive, active in their Swedish raw honey. Their products, H13, has a plethora of health benefits that helps with digestion and to fight harmful bacteria. Doktorhonung is owned by the Swedish biotech company ConCellae AB.

Local Food Nodes

Local Food Nodes has a mission: to make food local again. As an extension of an experiment carried out by Bygdens Saluhall and a Vinnova-financed pre-study, Local Food Nodes promotes local agricultural and economic development by directly linking produce between customers and local food producers through a digital tool. With the help if the platform, customers are presented with an array of local food that they can book and later pick up at designated sites.

Sensefarm

The Lund-based company Sensefarm AB develops tech products which allows precision farming by measuring soil moisture, precipitation and temperature of produce and plants. It all started with the development of sensors to prevent sugar beets from freezing damage, and has since grown to encompass a plethora of crucial factors for the wellbeing of produce.

Honorable mentions:

Simris Alg: The company produces algae-based food supplements and is located in Southern Sweden, but didn’t make the list due to its status as a publicly listed company.

Näraffär / Wheelys: Originating from Höganäs, the Swedish digital self-service store Näraffär has recently been purchased by Lund founded Wheelys.

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