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The Challenges Energy Security Climate Change Population Growth Food Security
Food Security – Population Growth Demand Population 9 Billion 2050 (UN) Africa's population to more than double between 2000 and 2050 Percentage of the world's population living in cities: 3% (in 1800); 47% (in 2000); 67% (in 2025 – UN forecast) Source: Frost & Sullivan.
Global Food & Beverage Demand, 2002 through 2014 Food & Beverage Market: Retail Industry Revenues, in $ Billions (World), 2002-2014 Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan Small dip in global revenues due to lower feedstock prices and economic slowdown
The Need for Green Approaches Business-as-usual Scenario Source: WWF.
The Need for Green Approaches Sustainability Scenario Source: WWF.
Annual CEO Survey: Perceptions of Green Issues How do you primarily view the current high profile of environmental/green issues? Source: Frost & Sullivan.
Annual CEO Survey: Motivations for Green Investment There are many drivers which contribute to a company making environmental investments, what are the main reasons driving your decision to “go green”? 61% Note: Only top ten responses shown . Source: Frost & Sullivan.
Increased yield / quality / disease & pest control in a sustainable way
US & Argentina global leaders in GM soybean cultivation and production
Phenomenal growth of GM soybean cultivation within 10 yrs
Total Acreage 4% in 1997 to 92% in 2008
Assists growth of the bio-lubricants market
Not the case in EU
Cultivation Area in Million Hectares in US, 1997-2008 Source: GMO Compass Total soybean cultivation area GMO soybean cultivation area GM Soybean Ratio in US, 1997-2008 2008 Soybean Production in United States Reduced Biodiveristy? Source: Frost & Sullivan. Year Total Soybean GM Soybean GM Ratio 1997 25.66 3.6 4% 2008 30.10 27.7 92%
Energy Consumption Climate Change Growing Demand Competing Land Use Bio-fuels Renewable Energies Careful use of Raw Materials Carbon Offsetting Efficiency Savings Limited Oil Sources Rising CO 2 Emissions xxxxx Source: Frost & Sullivan.
Waste Reduction Biodegradable Packaging Recycling ‘ Just in time delivery’ Portion Control Reducing Food Wastage Alternative Raw Materials Source: Frost & Sullivan.
Eco-labelling - Consumer Awareness Raw Material Supplier Source: Frost & Sullivan Distributors and Retailers Final Consumers Finished Good Manufacturer Are We Green? Is this Green? Distributors and Retailers Final Consumers Finished Good Manufacturer Raw Material Supplier 3 rd Party Verified Without a clear industry icon… With a clear industry icon… Product Flow € and Feedback Flow We Are Still Green We Are Still Green We Are Still Green We Are Still Green We Are Still Green We Are Still Green
Sustainability and Financial Performance Index 1999=100 Source: Dow Jones Indexes and SAM DJSI World vs MSCI World (1999-2010)
Marks & Spencer – Plan A Climate Change Waste Natural Resources Fair Partnership Health & Wellbeing
PepsiCo – Performance with Purpose Environmental Sustainability Talent Sustainability Performance Human Sustainability Good for Society Good for Business =
Danisco – Ingredients for Sustainability Global Challenges Food Health Energy Chemicals People, Planet & Profit Becoming First Choice Comprehensive Approach Danisco’s Approach
Green Sourcing - Differences Across the Supply Chain Driver Sustainable Sourcing Cost / Pricing Restraint B-2-B Producer FMCG / Retail End User Cost Quality Continuous Supply Efficent Global Delivery Ethical Eco-Friendly Source: Frost & Sullivan. Customer Expectation New Market Product Innovation Feel Good Conscientious Social Responsibility Competitive Edge Growth Opportunity Confusing Message Inadequate Labelling Limited Budget Willingness to Pay Extra – 5 to 25% More? Marketing Message Increased Cost Pass onto Consumer? Marketing Message Increased Cost Smaller Profit Margin Implementation Cost Competing Priorities Lack of Knowledge Vendors not Green Implementation Cost No Industry Standard Vendors not Green
The Current Benchmarks to Increase Sustainability Source: Frost & Sullivan. Water Recycling & Conservation Energy Conservation Waste Management Reduce CO 2 Emissions Consolidating Transportation & Distribution Reduction & Recycling of Packaging Increased Sustainability
The Future Direction Open Mindedness to Scientific Advances Rigorous Monitoring & Constant Evaluation of Existing Strategies Global Legislative Enforcement Unification Across Companies & Even Countries Towards The Common Goal Increase Investment in R&D Continue to Build Consumer Awareness Source: Frost & Sullivan.
The Food & Beverage Industry Today and Tomorrow Mega Trend Climate Change & Energy Security Sustainability driven by increasing raw material costs Successful company sustainability strategies become economic not moral decision Peak oil extraction limit reached Consumer demand for sustainability sourced products & increased legislation Full industrialisation of developing countries Developments in energy efficiency & renewable energies Oil extraction volumes in terminal decline – Global vs Local Sustainability is here to stay Embrace it and create opportunities from it 2010 2020 2015 Population Growth & Food Security Increasing consolidation in food supply chain Increased utilisation of by-products as feedstocks Demands from bio-energy and growing population mean rising food prices Increasing urbanisation impacts demand for healthy & high quality F&B products beyond BRIC Continuous re-assessment of “safe” chemicals, technologies & materials for F&B & agricultural production Food safety driven by customer access to F&B processing information
For Additional Information Chiara Carella Head of Communications +44 (0) 2073438314 [email_address]