http://www.foodpolis.kr

5 Forum Overview

11 Korea’s Food Market is Full of Potential Presenter:Jung-hoonMoon

15 Open Innovation, The Key to Global Food Challenges Presenter:RobertPeterson

21 The Latest in Food Innovations and Food Technology Presenter:RonaldW.Visschers

27 Food Packaging and Branding Strategies Presenter:HelenChun

33 Healthier Choices Are the Way of The Future Presenter:PatrickMannion

39 Panel Discussion

Contents

T i m e T o p i c

14:00-14:05 opening Address AgencyofKoreaNationalFoodCluster

14:05-14:10 congratulatory Address MinistryofFood,AgricultureandRuralAffairs

14:10-14:20 photo Time

14:20-14:30 promotional Video for FooDpoLiS

14:30-15:00 Time for the change in Food industry! innovation and creative challenge

15:00-15:30 creative examples of Food R&D That Are catching Worldwide Attention

15:30-15:50 coffee Break

15:50-16:20 Global marketing in Food industry and Strategies of Brand Differentiation

16:20-16:50 catch the potential Food consumers

16:50-17:50 panel Discussion

17:50-18:00 closing ceremony

18:30-20:00 Networking Dinner

program Summary

FOODPOLIS HOStS 4th InternatIOnaL FOOD CLuSter FOrum

3

Special Issue

Taking anoTher big sTep Toward The developmenT of a norTheasT asian food exporT powerhouse

LeeJu-myeung,DirectorGeneralattheMinistryofAgriculture,Food,andRuralAffairs,gottheballrollingatthepressconferencebyoutliningtheFOODPOLISvisionandstrategy,aswellastheinvestmentsuccessesto-date.DirectorGeneralLeeputthefocussquarelyonexports.“WeknowthatgrowthinthefoodindustryhereinAsiaand,indeed,aroundtheworld,isastronomical,andthatfuelsopportunity,”hesaid.

“Sowe’rebuildinganationalfoodclusterthatiscapableofservingasastrongexportplatformthatcanhelpourmembersreachtheworldwiththeirproductsandservices.LocatingyourbusinessinFOODPOLISisgoingtoputyourightinthemiddleoftheaction.”

Mr.LeewasfollowedbyChaHo-joon,SeniorInvestmentAdvisorfrom

theAgencyforKoreaNationalFoodCluster,wholeadsinvestmentpromotionforFOODPOLIS.HegaveadetailedpresentationontheFOODPOLISopportunity,includingdetailsontheinvestmentactivityto-date,andtheworkthegovernmentisdoingtopromoteitviaanexceptionallycompetitivesetofincentives.ThemorningsessionwasroundedoutbyadetailedlookatthefoodindustryandmarketopportunityinNortheastAsiabyProfessorJung-hoonMoonfromSeoulNationalUniversity’sFoodBusinessLab.

Investorinterestintheclusterhasbeenstrong.Intotal,FOODPOLIShasgarneredseriousattentionfromover100companiesandresearchinstitutes.Ninety-onecompaniesandtenresearchinstituteshavesignedinvestment

TheRegencyroomattheGrandHyattHotelinSeoulwaspackedwithfoodindustryleadersfromKoreaandaroundtheworldonNovember14th,asFOODPOLIShosteditsfourthinternationalfoodclusterforumandworkshop.ItwasanotherbigsteptowardabrightfutureforFOODPOLIS,astheplantobuildthefoodclusterinIksan,NorthJeollaProvincequicklygainsmomentum.

Withmorethan300peopleinattendance,includingrepresentativesfromfoodcompaniesandfoodresearchinstitutesinKoreaandaroundtheworld,theforumkickedoffwithaninternationalpressconferenceand4dynamickeynoteaddressesfromindustryexperts.ItwrappedupwithaspiritedpaneldiscussionledbySeoulNationalUniversity’sProfessorLeeSam-ock.

FOODPOLIS HOStS 4th InternatIOnaL FOOD CLuSter FOrum

4

Forum Overview

5

Special Issue

MOUs,comingfrommorethanadozencountries,makingitatrulyinternationalendeavor.Morethan2.2millionsquaremetersoflandhasbeenearmarkedfordevelopmentand$538millionpledgedforinvestment.

FOODPOLIS’ChaHo-joontalkedaboutwhysomanycompaniesandresearchinstituteshaveexpressedsuchstronginterestto-date.“Koreaisfacedwithatremendousopportunityforgrowth,”hesaid.“Ourproximitytomassivemarketsputsussquarelyinthemiddleofthemostdynamiceconomicregionintheworldforthenextcentury,andtheKoreanbrandplayswellinthosecountries.Weareintherightplaceattherighttime.”

Intheafternoonsession,fourinternationalexpertstalkedaboutthisopportunityfurtherandgavetheirprofessionalinsightsastowhatKoreaandFOODPOLISinvestorsneedtodotocapitalizeonit.RobertA.PetersonfromtheUniversityofTexasatAustin,ahighlyregardedexpertontheagrifoodindustryandwellsoughtoutspeaker,talkedabouttheimportanceofopeninnovationandcreativechallengestothefoodindustry.Hecalledforchangeoverall,

andforindustryplayerstothinkbigtosuccessfullygrasptheopportunitiesfacingthem.Hiscommentsandsuggestionswererepeatedlyreferredtobyotherspeakersandguestsduringthequestionandanswerpanelsessionthatclosedtheforum.

ProfessorPetersonwasfollowedbyDr.RonaldVisschers,fromTNOInnovationforLife,akeyfoodindustryresearchinstitutebasedoutoftheNetherlands.Hespokeabouttheimportanceoffoodandnutritionastrendsintheglobalfoodindustry.Inparticular,hegaveafascinatingtalkaboutthehowwecantacklethesodiumproblem,whilealsohighlightingalternativeinputsthatwemightneverthinkabout,likealgae,whichjusthappenstobeanincrediblesourceofavarietyofhighlyvaluednutrients.TNOiscurrentlyattheforefrontofglobalresearchaimedatharvestingalgae’sbounty.

ThethirdspeakerwasHelenChun,awell-knownfoodandbrandingexpertfromtheSchoolofHotelAdministrationatCornellUniversity.Thefocusofherspeechwasontheimportanceofpackaging,andtheneedtorecognizehowconsumersperceivefoodproducts.

6

Forum Overview

7

Special Issue

ProfessorLee,thepanelcomprisedthefourinternationalexperts,andProfessorLeeYoun-sukfromYonseiUniversity,ProfessorKwonOranfromEhwaWomansUniversity,ProfessorLeeJung-heefromChung-AngUniversity,andDirectorKimYang-woofromCheilJedang.

TheexpertsfocusedonwhatneedstobedonetomakeFOODPOLISasuccessfulglobalfoodhub.Thereweremanyquestionsfromthefloorsuchashowtoutilizeopeninnovationinthecluster,andwhatfieldsshouldhavefurtherresearch.ProfessorLeeYoun-sukpointedoutthatthefoodpackagingindustryhasthesamepotentialtogrowasthefoodindustry.“Foodpackagingplaysanimportantpartinthefoodindustry.Packagingitselfisasourceof

Shegavemanyinsightsastohowcompaniescanaltertheirfoodpackagingandbrandingstrategiestodrivepurchaseintent.

ProfessorChunwasfollowedbytheManagingDirectorandCEOofINNOVAMarketInsights,PatrickMannion,whospokeaboutthemajortrendshiscompanyhasidentifiedinthefoodandbeveragemarket.Inparticular,hehighlightedthefactthatconsumersareincreasinglychoosingfoodsthatarebothnaturalandhealthy.Healsopointedouttheeffortsbeingmadetotapintothatmarketbycompaniesbyreducingsugarcontentintheirproductingredients.

Theforumconcludedwithanactivediscussionwithexpertsfromboththeacademicandindustrialfields.Ledby

marketingandcanraisetheproductbrandquality,”hesaid.

Mr.Mannionreiteratedakeypointfromhistalkthathadresonatedwiththeaudience.“YouneedtolookbeyondAsiatobesuccessfulwithalong-termvision,”hesaid,addingthat“collaboratingwithresearchinstitutesaroundtheworldcanmakeabigdifferenceinhowyousucceed.”ProfessorKwonOranalsoemphasizedtheneedtocooperatewithotherentities.“Thefoodindustry’snextbigstepistoworkwithtechnology,andtodothat,weneedtonetworkonaglobalscale.FOODPOLISneedstoplayanimportantroleofbuildingastrongnetworkdomesticallyandinternationallytoguaranteeinnovationinourfoodindustry.”

8

Forum Overview

ProfessorJung-hoon moon

Korea’s Food MarKet is Full oF Potential

Special Issue

9

nowafront-runner,theNortheastAsianmarkethasseenasteadygrowthinpackaged/processedfoodbetween2007and2012.Duringthesameperiodoftime,theEuropeanmarketandtheglobalmarkethascometoastandstill,whileotherpartsofAsiasawadecreaseintheirshareofthepackaged/processedfoodmarket.Accordingtomarketresearchresultsof2011,NortheastAsiaaloneaccountedforawhopping25%oftheglobalpackagedfoodmarket.

korea’s business potential

Koreahasglobalcompetitivenesswhenitcomestoprovidingagoodbusinessenvironment.Itranked26thamong144countriesinoverallglobalcompetitivenessin2014,andcamein22ndincorporateinnovationandR&D.TheWorldBankevenchoseKoreaasthe7thbestcountryoutof189countriesforits“EaseofDoingBusiness”analysis.

ProfessorMoonstressedthatthetimeisnowtoinvestinKorea’sfoodmarket.TheKoreanfoodindustry’sstrengthslieintraditional,healthyandfunctionalfood,whichcoincideswiththemajorglobalfoodtrendsrightnow.Consumersworldwideareturningtowardshealthierandfunctionalfoodduetothegrowingawarenessoftheagingpopulation.HequotedProfessorJimDatorofHawaiiResearch

The morning session of the 4th International Food Cluster Forum brought many international media and officials together for a global press conference, where Seoul National University Professor Jung-hoon Moon provided many rich insights regarding the competitiveness and market potential of Korea. Attendees were keen to hear his presentation, which looked closely at the growing trends of Korea’s dynamic food market.

global food market is changing

Hebeganwithoverallnumbersfortheglobalindustry,pointingoutthattheglobalfoodmarkethascomealongwaysince2006.Inthepast,EuropeandtheAsia-Pacificregionhadthebiggestfoodmarketshareof38.2%and31.2%respectively.TheAmericascameinthirdwith20.1%andtheMiddleEast&Africanregionaccountedfor10.5%oftheglobalfoodmarketshare.Butnowin2014,accordingtoDatamonitor,theAsia-Pacificregionoccupies44.2%ofmarketshare,astaggering13%increasecomparedtojusteightyearsago.WhileEuropeandtheMiddleEast&Africanregionsawdecreases,theAmericashavealsoexpandedtheirmarketshareby4.9%.

ProfessorMoonpointedoutthattheglobalfoodmarketischanging.NotonlyistheAsia-Pacificregion

10

Jung-hoon Moon

The global food market is shifting towards the asia-pacific region, and korea is located at the heart of it. korea has the global competiveness to ensure companies have a solid business environment to operate in, and the korean food industry has great potential for future growth. The time to invest is right now.

Market Share Changes

Global Food Market

Korea has the world’s 13th largest food market and has grown continuously(6.7% CAGR since 2001)

Korea’s Food Market

3100  3276  

3474  3700  

4064  

0  

500  

1000  

1500  

2000  

2500  

3000  

3500  

4000  

4500  

2000   2002   2004   2006   2009  

십억불

70.3  

83.9  89.9  

107.5  

131  

0%  

2000%  

4000%  

6000%  

8000%  

10000%  

12000%  

14000%  

2001   2003   2005   2007   2009  

제조  외식  식품산업  

CenterforFuturesStudies,sayingthat“naturalfood,healthfoodandslowfoodwillallbesettledintopeople’severydaylives.”

Thechangesindemographicssuchastheincreasingnumberofelderlyandsinglehouseholdsarealsoplayingmajorrolesinthefoodindustry.Morecompaniesaredevelopingproductsthatareconvenientandeasytoaccess.

Theglobalfoodmarkethasseenanaverage3.2%CAGRincreasesince2000.ProfessorMoonpointedoutthattheKoreanfoodmarkethasfuturepotentialtogrow.“Koreahasthe13thlargestfoodmarketintheworld.Ithasbeensteadilygrowingby6.7%CAGRsince2001,”hesaid.

food market trends in korea

Thelowunemploymentrateandriseindisposableincomesareleadingtoconsumersbuyingmorenon-essentialfoodandbeverages.Highvaluefoodproductshavealsobecomeagrowingdemandwiththeimprovedsupply-chainandtransportinfrastructure.“Koreanconsumershavemovedonfromquantitytoquality,andnow,qualitytovariety,”hesaid.

Koreahasaverywelldevelopedonlineshoppingindustrythatprovidesarichvarietyofproductsandfastdistribution.Thisiswhymoreconsumersarechoosingtobuytheirfoodonlineratherthanspendtimeingrocerystores.Comparedtothe4.9%ofUKconsumersbuyingfoodproductsonline,itisoverdoublethenumberwith10.2%ofKoreanconsumerspurchasingonline.

MiddleEast&Africa10.5%

MiddleEast&Africa10.5%

Americas20.1%

Americas20.1%AsiaPacific

31.2%

AsiaPacific31.2%

Europe38.2%

Europe38.2%

2006 2014Source: Datamonitor(2014)

11

Special Issue

a ready food market

TheprofessoremphasizedthatKoreaisareadymarket,andthatcompaniesthatarelookingintoinvestingwon’thavetospenddevelopmentcosts.“WehaveoneofthemostdevelopedfoodmarketsintheAsia-Pacificarea.Foodcompaniescanmoveinrightnowandgainaccesstowhattheyneedrightaway.”

Forcomparison,theCategoryDevelopmentIndex(CDI)ofthedairymarketintheAsia-Pacificregion,excludingChinaandJapan,is41.2,Korea’sdairymarketcomesinat597.1,whichisovertenfold.ThesoftdrinkmarketinKoreahasaCDIof302.2,whichagain,significantlyexceedstheAsia-Pacificregion’s43.7.

future growth in korea

FoodconsumptiongrowthinKoreahasbeensteadysince2011,andexpertsexpectasteadyincreaseinthefuture.“Ourfoodconsumptionpercapitahasbeencontinuouslyrisingsince2011.By2016,weexpecttoseeabiggerdemandinthefoodindustry,”saidProfessorMoon.Hetalkedofdifferentfoodcategoriesthatareshowingsteadygrowth.Forexample,thecannedfoodsalesgrowthhasgonefrom2.57%in2012to4.67%in2013.Itisexpectedtosteadilyincreaseupto15.13%by2016.ConfectionaryandcoffeesalesarealsoontheriseasKoreanconsumersareopentonewandimportedfoodproducts.

NortheastAsiaisapopularmarketforglobalfood

companies,andKoreaislocatedattheheartofit.ProfessorMoonstronglyemphasizedthatKoreaasawell-developedfoodmarkethasgreatpotentialtogrowasheconcludedhispresentationwiththekeymessage,“ItistherightplaceandtherighttimetoinvestinKorea.”

Biography

Jung-hoon Moon is an associate professor in the Department of Agricultural Economics & Rural Development at Seoul National University. He was awarded for best thesis of the year by AMCIS in 2006, and also has past experience at the Korea Advanced Institute of Science and Technology. Professor Moon has been quoted by major Korean media and has published many scholarly articles on food industry trends.

Food Business Lab

The Food Business Lab is a marketing and information management program within the Department of Agricultural Economics & Rural Development. It focuses on developing innovation and business research for the agrifood sector. The lab also researches the business aspects of the food industry.

Canned Food Sales Per Capita (USD)

31.68 32.29 33.62 35.94

40.68 46.63

17.78 19.26 20.91 22.26 22.72

25.94

71.25

172.82

142.34 144.51 145.57 146.53

2011 2012 2013 2014 2015 2016

Korea China Japan

Canned Food Sales Growth YoY (%)

13.06

2.57 4.67

7.42

13.73 15.13 14.21

9.03 9.2 9.14

7.19 7.79

18.48

0.86

-17.7

1.41 0.58 0.48

2011 2012 2013 2014 2015 2016

Korea China Japan

Source: Datamonitor(2014) Source: Business Monitor International

12

Jung-hoon Moon

Professorrobert Peterson

oPen innovation the Key to global Food challenges

13

Special Issue

planning and taking on the difficult task. In his talk, he emphasized two major global

food challenges. One is the increasing diversity of consumer preferences. The second is the pressing need to supply food to a global population that is estimated to swell to 9.6 billion by 2050. The two challenges show the different problems developing and developed countries face in food supply.

fragmentation and Customization TheincreasingdiversityinconsumerpreferencesisprimarilyfocusedondevelopedcountriessuchastheU.S.,Europe,andurbanizedpartsofLatinAmericaandAsia.Consumersindevelopedcountriestendtohavemoreresourcesandawiderselectionofchoicestomeettheirneeds.Theyalsohavedifferentfactorsthatlendtotheincreasingcomplexity,suchassocial

Professor Robert A. Peterson of UT Austin was one of the keynote speakers for 4th International Food Cluster Forum. His presentation “Time for Change in the Food Industry! Innovation and Creative Challenges” quickly garnered attention as it focused on the primary challenges our global food system faces, and how what he termed “open innovation” could help control them.

The traditional food value chain has become more and more complex as the supply chain continues to globalize. The traditional farm-to-fork value chain now goes through an intricate web of policies and regulations, manufacturing, processing, packaging, and distribution process.

Professor Peterson spoke in particularly of the incredible complexity of the agrifood business, suggesting that it might be the most complex in the world. He acknowledged that establishing a food cluster is very challenging, time-consuming and expensive. The professor praised FOODPOLIS for

14

Robert Peterson

There are many global food challenges we have to meet, and two of the key ones are consumer preference diversity and feeding the planet’s growing population. peterson suggests open innovation as one of the critical solutions to developing the food industry in the right direction. he also argues that clusters like foodpolis will need to work with entities outside the food value chain to co-innovate.

networking,anti-sugar,gluten-freefoods,convenience,fusionmeals,andmore.Thesefactorsreflectthefragmentationandcustomizationofthefoodmarket,andrangeinofofferingstomarketspacesandmarketsales.

Functionalfoodisaprimeexample.Itrepresentsaveryinterestingcollaborationhappeningworldwidebetweenfoodcompaniesandpharmaceuticalcompanies.Thishasledtothedevelopmentoffoodthatnotonlysolvesanutritionalproblem,butalsoamedicinalone.Functionalfoodshavetheabilitytopullthesetwotypesofcompaniestogethertocollaborateonmeetingincreasinglyidiosyncraticconsumerneeds.Andthefirstchallengerelatestohowweresearchanddevelopcustomizedoptionstosatisfythediversemarketneeds.Differentindustrieswill

needtoworktogethertofulfillthedemandsofthedifferentmarketspaces.

productivity, effectiveness, efficiencyRegardingthesecondglobalfoodchallenge,theprofessormentionedthatthismainlyaffects3rdworldcountriessuchasasignificantportionofAsia,sub-SaharanAfrica,andtheruralregionsofLatinAmerica.Unlikethefragmentationandcustomizationissueofdevelopedcountries,thischallengeisbasedonproductivity,effectivenessandefficiency.

Henamedsevenfactors(increasingpopulation,absenceofdistributionsystems,climatechange,

Food Value Chain

15

Special Issue

diversiTy in Consumer preferenCes

- sustainability

- social networking

- gluten-free foods

- fusion meals

- modern food trucks

faCTors To feeding 9.6 billion people

- increasing population

- absence of distribution

systems

- Climate change

- agricultural productivity

flattening

- reduction in arable land

- environmental concerns

- Capital requirements

agriculturalproductivityflattening,reductioninarableland,environmentalconcerns,capitalrequirements)thatrelatetofeedingtheanticipatedpopulationof2050.Climatechangeisbecomingamajorproblemforthepopulation.Accordingtorecentresearch,a1degreeincreaseintemperaturecanreducewheatproductionby5.5%.That1degreedifferencewouldaffectstaplessuchaswheat,grains,andriceallovertheworld.Environmentalconcernsandcapitalrequirementsthat3rdworldcountriesfacearedifferentfromtheproblemsbeingfacedin1stworldcountriesbutallthechallengesneedtobefaced.

“Thinkdifferently.Thinkoutofthebox.Thinkopeninnovation.”

Oneofthethemestakenupduringtheforumwasopeninnovation.ProfessorPetersonspokestronglyaboutit,arguingthatitisameaningfullong-termwayofsolvingthetwochallenges.Manyotherspeakersagreed,andmuchdiscussionaboutthepointensued.ProfessorOranKwonfromEwhaWomansUniversityagreed,suggestingfurtherthatopeninginnovationhadtobematchedwithconvergencesoastocapitalizeontheincreasinglyimportantroleoftechnologyinthefoodindustry.

Sowhatisopeninnovation?Openinnovationrequirescollaborationandnetworking,bothwithinandoutsidethefoodvaluechain.Theprofessor

emphasizedtheimportanceofgovernmentsanduniversitiesasthekeyelementstoworkwithinthecluster.Hesaidthetriplehelixcomprisedofprivatecompanies,thegovernment,anduniversitiesisessentialinmakingFOODPOLISasuccess.

HereferredtoclustersinMexicothathisinstituteworkswithasanexample.Thoseclustershaveuniversities,privateindustry,andgovernmentR&Dlabsthatworkverycloselyandsuccessfully.

“Youneedtobeglobal.Lookatthemarket30yearsfromtoday.”

FOODPOLISalsoneedstolookbeyondAsia.ProfessorPetersonsuggeststhatdoingotherwiselimitsgrowthpotential.Atrulyglobalclusterhastobetrulyglobalinscale.HealsoemphasizedthatFOODPOLISshouldnetworkandcollaboratewithotherfoodclustersaroundtheworldsuchasFoodValleyintheNetherlands,lookingatthefoodmarket

16

Robert Peterson

withalong-termvisionof30years,notthe2yearsthattheclusteriscurrentlyfocusedon.“Inordertobesuccessful,youneedtobeglobal,”saidtheprofessor.

“Youcan’tinnovatebyyourself.”ProfessorPeterson’smessagewas

straightforward—FOODPOLISneedsco-innovationtosucceed.Toinnovate,FOODPOLIShastoworktogetherwithentitiesoutsidethefoodvaluechaincollectivelyandcollaboratively.Thisisthekeytoasuccessfulopeninnovation.Andtobesuccessfulinthelongterm,itwillrequirethefusionofarangeoftechnologies.

AsFOODPOLIScontinueswithitsfutureplans,itneedstolookbeyondfoodrelatedcompanies,andexpanditsvisionoutsidetheregion.Themessageinparticularfocusedontechnology,withacallfortechnologicaleclecticismirrespectivegeography.

farm To fork

raw material

refined product

end-product

Consumer

fork To farm

Consumer

end-product

refined product

raw material

Open Innovation: Value Chain Approaches

Open Innovation: Convergence Required ICT

Nan

otec

h

Mat

eria

l sci

ence

logisticsrobotics

Food testing

Simulations

Smartpackaging Packaging

Preservation

Functional foods

Processing

food research

Eco-innovation

Blotech

17

Special Issue

open innovations for the changing food value chainThetraditionalfarm-to-forkvaluechainisgoingthroughculturalchanges.Thelatestapproachtothefoodvaluechainisfork-to-farm.Thisistheoppositeofthetraditionalmethod,andgoesfromconsumertoendproduct,refinedproduct,andbacktotherawmaterials.

Anexample,fromthetalkwasfoodtrucksinAustin,Texas,whichshowopeninnovationthatisrespondingtotheincreasingdiversityinconsumerpreferences.ThecityhasmorerestaurantspercapitathananycityintheU.S.,hesaid,andyetthereareover1,500foodtrailers.Thatwouldequalonefoodtrailerper456people,andtheyaredefinitelychangingthecity’sfoodculture.Foodtrailershavetheadvantagebecausetheycangowhereconsumersare,andtheyarerelativelyinexpensivewithadiversityofofferings.Theyalsotendtoclusterinawaythatcancomplementeachother’sbusiness.Anotherinterestingfactoristhatmanyrestaurantsinthecityactuallyworkwithfoodtrailerstopilottestnewmenusandproducts,ratherthantestitattheir

Biography

Robert A. Peterson is the Associate Dean for Research, and the John T. Stuart III Centennial Chair in Business Administration at the University of Texas at Austin. He is also Charles Hurwitz Fellow at the IC2 Institute. Professor Peterson is widely known for his expertise in marketing strategy and research methodology. He has authored nearly 150 books and articles and has articles published in over three dozen journals.

IC2 Institute

The IC2 Institute is a prestigious interdisciplinary research unit of The University of Texas at Austin. It strives for the advancement of theory and practice of entrepreneurial wealth creation. The institute is a business incubator and accelerator that has a global presence in many countries such as Brazil, Chile, Singapore, and Korea to help start-ups and SMEs build innovation.

restaurants.Regardingthesecondchallengeofopen

innovation,ProfessorPetersonpointedtoauniqueexample:theancientIncancivilization.TheIncanagriculturalterracesweresohighthattherewasatemperaturedifferencebetweenthetopandbottom.Theytookadvantagesofthevariedsoil,temperature,produce,andeventhetypesofrocks.Thecomplexdesignforplantsallowedthecivilizationtogrowavarietyofplants,including300kindsofpotatoes,oneachlevel.ProfessorPetersonindicatedthatwewouldneedtolearntoexperimentmoreintheagriculturalfieldinordertofindsolutionstofeedtherapidlygrowingpopulation.

Ashementionedinhistalk,OpenInnovationmaynotbenefitallandthat,infact,itmayleadtoconsequencesupanddownthelineofindustryandagriculture,asnewsectorsemergeandoldonescollapse.Butchangecanbepositiveandinnovationshouldbeembraced.

18

Robert Peterson

Dr.Ronald W. Visschers

the latest in Food innovations and Food technology

19

Special Issue

istomaintainthefunctionofsaltwithlesssodium,whichhasacomplexroleinthefoodindustry,impactingeverythingfromprocessingtoshelflife.Sodiumgivesmorethanjustasaltytaste,itregulatestheprocessingandproductqualityinfood.Forexample,itaffectsthephysicalpropertiesofproteins,andstrengthensgluten.Italsoinfluences

Dr. Ronald Visschers of TNO was our second speaker at the 4th International Food Cluster Forum. His presentation focused on the three latest food innovations and technologies he has been working on at TNO.

He said that his team has been targeting the development of a “toolbox to accelerate industrial product development, product introduction and product acceptation in order to make food production in 2020 healthy, appetizing, safe and robust.”

28% less sodium intake

OneofthesimilaritiesbetweenKoreaandtheNetherlandsisthegrowingelderlypopulation,andthefocusonfoodandhealth.Withmanyrecentstudiessuggestingthattheaveragepersonisconsumingexcessiveamountsofsodium,particularlyfromprocessedfoods,sodiumintakehasbecomeamajorhealthconcern.

OneofthenewpiecesoftechnologythatTNOhasdevelopedissomethingcalledSensoryContrastTechnology.Thechallengeindevelopingit Complex role of sodium

20

Ronald W. Visschers

Consumers are becoming increasingly health-conscious, and food researchers have started to take notice. dr. visschers’ research team is leading the food industry with its innovative work on salt reduction technology. his team has also developed exciting cutting-edge capabilities to extract valuable ingredients from alternative resources such as algae.

theprocessabilityofdough,whichresultsinbetterbreadquality.Asapreservativethatlengthensshelflife,sodiumisessentialinregulatingfermentationandchemicalleavening.

Dr.Visschersexplainedthatthesolutiontothischallengewastounderstandtheprocessoftaste,orinthiscase,saltcontrast.Humanperceptionismorealerttocontrastthancontinuouslysteadylevels.Putsimply,ifyoueatsaltregularly,youtasteitlessasweadapttoit.Pastresearchshowsthatpulseddeliveryofsaltsolutionsenhancethetasteintensity.Dr.Visschers’researchfurtherdevelopedthattheoryandfoundthatthebiggerthecontrastratiooflayersinhighandlowsodium,themorepeoplewouldexperiencesaltinessenhancement.

Experimentingwiththeirfindingsinsaltcontrast,Dr.Visschers’teamdevelopedawaytoreduceupto28%ofsaltintakeinbread.Dr.VisscherexplainedthatTNOiscurrentlyworkingonproductspecificsolutions.Initiallythetechnologywastomakelayersofdoughwithdifferentsaltcontent,butnowitisdeveloping“saltyspots”tobuildmorecontrastandboostsaltinessperception.

algae as an alternative resource

Dr.Visschersalsoemphasizedtheimportanceofsustainabilityofourfoodandresources,especiallywiththeexpectedpopulationsurgeto9.6billionby2050.Lookingforasustainablealternativeforresources,histeamatTNOturnedtoalgaeforinnovation.

Notonlyisalgaeproducibleinbothwaterandland,Dr.Visscherssaidthatthecommonalgaeishighinproteinandvaluableingredients.Currentlymanycompaniesandresearchinstitutesarefocusingonalgaeinnovationandproductionsystems,anduniversitiesintheNetherlandshavedevelopedanincubatingtechnologythatsignificantlyincreasesalgaeproduction.Allalgaeproductionbecomesbiomass,butwithoutthepropertechnologythebiomasswouldn’tbeusedtoitsfullpotential.Hepointedoutthattomakealgaeproductionsustainable,wewouldneedtogetmaximalvaluefromalltheingredientsinalgae.

Algaecontainsbulkchemicalssuchaslipids,proteins,andcarbohydrates.Italsohashigh-valuechemicalslikesterols,phycobiliproteins,astaxanthin,omega-3,andomega-6.Ifbrokendownproperly,algaecouldbeusedforvariouspurposessuchas

60

80

100

120

140

160

180

200

1:11 :2.2 1:3.11 :121 :115

Sal

tines

s en

hanc

emen

t (%

)

contrast ratio low NaCl : high NaCl bread layer

Saltiness enhancement increases with increasing contrast

Principle of sensory contrast

21

Special Issue

Current TNO contract research activities:product specific solutions (in progress)

Time Time

NaC

l (%

)

NaC

l (%

)

Dough layers with different salt content Salty “spots” to boost saltiness perception

Salt reduction in bread without loss of taste

22

Ronald W. Visschers

fermentation,food,foodfibers,andevenlivestockfeed.Thistechnologycouldhelpeasethedemandingsupplyofstaplessuchasgrainandrice,whicharesensitivetoclimatechange.

Dr.Visschersexplainedthatalgaehassmallcellwallsthataretoughanddifficulttobreakwithoutdamagingtheingredients.Basedonthenumerousmethodshisteamtested,theybegantofocusonmildtechnologiessuchasdynomill,homogenizerandsmallscaleultrasonicsoundwavestodevelopthetechnology.Byreducingtheenergyusedtobreakthealgae,theresearchteammanagedtofindawaytobreakdownthealgaeatamarketablepriceandreducingtheelectriccostbytenfoldto€0.06/kgdw.

TNOhassetupapilotmobilerefineryfacilitythatcanbetakenanywherealgaeisfound.Thefacilitytakesthealgaeandprocessesittoimproveingredients.Theseingredientsarethenmadeintovariousformsfrompowdertoliquidandoilstobeusedforapplicationtests.Accordingtotheresultsofthesetests,researcherscantakeimprovedspecificationstorefineanewtestusingthepilotmobilerefinery.Thiscyclewouldbethebeginningof

HIGH-VALUE CHEMICALS BULK CHEMICALS

Omega-3 & omega-6

Sterols

Lipids

Proteins

Carbohydrates

Phycobiliproteins

Astaxanthin

So what is in algae?

23

Special Issue

furtherdevelopmentinalgaeinnovation.Dr.VisschersagreedwithProfessorPeterson’s

commentabouttheneedofopeninnovationtocopewiththechangingvaluechain.Algaebiomassandtechnologywouldbemeaninglesswithoutcompaniesandindustriesthatneedthem.ThisiswhyTNOworkswithaconsortiumofcompaniestobuildanewvaluechain.Ithasbuiltanetworkbetweencompaniesthatgrowalgae,companiesthatproducetheingredientsfromalgae,andcompaniesthatusetheingredientsintheirproducts.Thisisaformofopeninnovationbybringingindustriesandresearchcenterstogethertocreateanemergingvaluechain.VALORIE,themobilebio-refinerypilotplant,wasbuilttohelpincreasethescaleofalgaeprocessinginindustries.

3d printing of food

Inthepastdecade,3Dprintershaveintroducedarangeoftechnologicalinnovationandtherearenowseveral3Dfoodprintersavailableonthemarket.Since2007,manyuniversitiesandfoodcompaniesalikehavebeentakingpartindeveloping3Dfoodprinting.

Thefoodmaterialmustbestickyenoughtostayintactwithmoreandmorelayersbeingaddedontop.Forexample,thelayerofpowderwouldneedasolvent,suchasoil,tofusetheingredientstogether.Foodprintersalsoallowtheuserstowritelettersorputinlogosusingthelasertechnology.

Dr.Visscherssaidoneofthebiggestadvantagesof3Dfoodprintingisthatyoucancookanddesignthefoodatthesametime.Theprintercanusedifferenttemperaturestocookfordifferentpartsoftheprintedfood.Likethealgaeinnovation,therearemanynewopportunitiesinthe3Dfoodprintingmarket.Youcoulddesignandsellinterestingshapes,orevencreateadigitalcookbook.And3Dfoodprintingwasnotdonealone.Foodcompanies,technologycompanies,andresearchinstitutesworkedcollaborativelytocreatethetechnology.Soon,morediversetechnologywillbemergingwiththefoodindustry.

AsDr.VisschersandProfessorPetersonpointedout,Koreaisafront-runnerintechnology.Withthecollaborationbetweenfoodcompaniesandtechnologyresearchinstitutes,FOODPOLIScoulddevelopthenextbigthinginfood.

Biography

Dr. Ronald Visschers is a research manager at TNO. He has dedicated his research in the food industry and has past experience working with the NIZO research center. Dr. Visschers has been focusing on developing new healthy innovation for the food industry, including his latest research projects on salt reduction and algae bio-processing.

TNO

TNO is an independent research organization whose expertise and research make an important contribution to the competitiveness of companies and organizations, to the economy and to the quality of society as a whole. The organization has a strong global network consisting of universities, research centers, and private companies.

24

Ronald W. Visschers

Professor Helen Chun

Food PacKaging and branding strategies

25

Special Issue

this can make the actual product inside something of an afterthought.

Professor Helen Chun from Cornell University gave her keynote address on this very topic, bringing to light many of the different ways that consumers perceive products through the packaging, and how carefully developed strategic branding can influence consumer behavior. Her presentation “Consumers’ Unconscious Responses to Food Packaging and Branding Strategies” focused on two points. The first dealt with how personalities impact consumer perceptions and choice. The second was on green packaging and how it affects consumption.

personality and choice of flavor

Ourpersonalitiessubconsciouslyinfluenceuseveninthosecaseswherewearemakingthesimplestdecisionsaboutthingsarebasicaswhatfoodwewillbuyandeat.ProfessorChunpointedtofive

Many people may not realize that when they pick up a product for the first time, they’ve done so because of the packaging more than the product itself. Product packaging could be the make-or-break point for food companies. It can play a critically important role in marketing the product and driving purchase intent, especially for a product that is new to the marketplace. According to a survey by an American packaging company, 41% of respondents said that packaging is an important product attribute. Over a third answered that they would try out a new product if the packaging intrigued them.

This puts many things into perspective. A great package design builds brand loyalty because it impacts shopping behavior and influences product satisfaction. It has become a vehicle that has the power to connect brands and consumers, which is why many innovative trends such as edible and sustainable packaging have started to gain popularity. People want something new, something different, something that piques their curiosity. All of

26

Helen Chun

why do we choose the products that we choose? according to the university of Cornell’s hellen Chun, our personalities subconsciously influence us in making even the simplest decisions. with deep insights into our most fundamental behaviors, we can develop strategic branding that can attract different consumer personalities and drive purchase intent. it can also explain how sustainable packaging can be a key element in branding strategy.

27

Special Issue

personalitytraitsthathaveanimpactonourbehaviorinthesesituations:openness,conscientiousness,extraversion,agreeableness,andneuroticism.

Opennessrelatestobeingcreative,imaginative,andcurious.Conscientiousnessisthorough,dependable,andhardworking.Extraversion,meanwhile,definesthetalkative,energetic,andenthusiasticpersonality.Agreeablenessisatraitdescribingthetypeofpeoplewhoarehelpful,kind,andconsiderate.Onadifferentlevel,peoplewhocanbedescribedasneurotictendtobeanxious,easilyupset,andmoody.

Withthatsetasthebackground,ProfessorChunreferencedasurveythatwastakenattheCornellDairyBartoseehowicecreamflavorchoicesvariedbypersonalitytraits.Thesurveycategorizedflavorslikevanillaandchocolateasstandard,andflavorssuchascoconutchipandblackraspberryasunique.Theresultsoftheexperimentwerefascinating,showingthatover70%ofconsumerswhocouldbedescribedwithopennessasapersonalitytraitchosetheuniqueflavorcategory,whilethemajorityofthepeoplewhocouldbedescribedasagreeableweremoreapttochoosestandardflavors.

Personalitytraitsalsodifferedwhenitcametochoosingbetweenhavingtheiricecreaminaconeorinacup.Themajorityoftheorganizedpeople,ortheconscientiousnesstrait,chosethecupovercone.“Outgoingpersonalitieslikeextraversionandopennesschosethecone.Also,65%oftheunique

flavorchooserspickedthecone,”saidProfessorChun.

package designs to target certain personalitiesOneofthestrongestthemesfromthepresentationwasthestrategybehindtargetingdifferentpersonalitytraitswithcarefullydesignedpackagingtypes.Usingwinebottledesignsasprimaryexamples,sheexplainedhowthesimplestoflabeldesignscanportrayintendedperceptions.

Uniqueshapedwinebottles,suchastheANOTHER!@#%MERLOT!,givestheperceptionofexcitement,comparedtotheboringBIERZOwinebottle.Theslantedbottleshape,label,andtheshapeofthecorkseemoutofplaceyetdaringandimaginative.Thisgivesustheimpressionthatthewineissomehowdifferentthanwineinregularshapedbottles,suggestingthatthewinewillbeunique.Forsomepeople,thiscanbeanincrediblyattractivesellingpoint.

Anotherimportantaspectinpackagedesigniswhetherornotthelabelismemorable.Inthiscontext,therearefourfactorsthatdesignersshouldconsider:Useofimages,uniqueness,concretewording,andhoweasyitistoprocess.

Accordingtotheprofessor,examplesofwinelabelsthatdidnottriggermemorablefeelingswere

28

Helen Chun

lackingimagerytohelptheirbottlesstandout.Inothercases,andsomewereinaforeignlanguagethatmostpeopleprobablycouldn’tpronounce.ThebestexamplesformemorablepackagingwerelabelsforproductssuchasYellowTail,TheLittlePenguin,andBarefoot.“Theuseofbrightcolorssuchasyellowandred,andfamiliarimageryleavesamemorableimpactforconsumers,”sheexplained.

numbers and shapes influence sensory expectationsInadditiontoso-calledcritterwineswithfunnyanimalpicturesonthelabels,youmayalsohaveseenwinebottlelabelswithbignumbers.Haveyoueverpaidattentiontotheshapeofyourfavoritewinebottlelabel?ProfessorChunconductedastudyshowingpeopletwobottlesofwine,onewiththenumber3,andtheotherwiththenumber8.Whenaskedwhichbottleseemedmorefull-bodied,themajorityanswerednumber8.“Thisisbecausethenumber3seemslikeanincompleteformofthenumber8,”shesaid.Whenbothbottlesofwinehadthenumberswritteninwordform,peopletypicallydidnotfeelamajordifferencebetweenthetwo.

29

Special Issue

aconsumerusessustainablepackaging,theyunconsciouslyassociatethemselveswithpositiveresponsibilitysuchaseatingright,workinghard,andexercising.Inotherwords,choosingpackagingthatissustainablegivesthempositivefeelingsaboutthechoicestheyaremakinginlife.

Theprofessoralsoreferencedastudythatlookedathowpeopleeatwhentheyareusingutensilsthataremadewithsustainablematerials.Whengivensustainablekitchenware,thegroupofstudyparticipantstendedtoeatlessmeat-basedsoup.Thestudyalsofoundthattheconsumptionofvegetablesoupwasthesameforbothkitchenwaretypes.Thebehaviorwasexplainedfromtheperspectiveofresponsibility.ProfessorChunpointedoutthatconsumerssubconsciouslyfeelahighersenseofresponsibilitytoeathealthieroptionswhenthepackagesaresustainable.

Finishingupherpresentation,ProfessorChunsuggestedthatsustainabilityhastobeutilizedasakeyelementinbrandingstrategy.Sheemphasizedthatusingeco-friendlypackagingcanbemostbeneficialwhenitisusedforpackaginghealthyfoodasitwouldencouragepeoplewhoarehealth-conscioustopurchaseit.

Theshapesinthewinelabelsalsoaffectwhatconsumersexpectfromthetasteofthewine.Squareshapesgiveofftheperceptionoffull-bodied,dryandoakytaste.Triangularshapespredictamoreacidicandcrisptaste.Circlestendtoleavetheimpressionthatthewinewillbevelvety,silkyandsoft.

sustainable packaging for positive brandingAnotheraspectthatProfessorChunspokeaboutistheincreasingimportanceofeco-friendlyandsustainablepackaging.Thegrowingtrendis,perhaps,notsurprising.AccordingtoasurveybyConeCommunications,67%ofconsumersintheUnitedStatesconsidersustainablepackagingapriorityissuewhentheyareinthegrocerystorebuyingfood.

ProfessorChunpointedoutthatgreenpackagingisnowclearlybeingusedasabrandelement.“Greenbrandingevokesresponsibilityinthemindofconsumers,”sheexplained,addingthatwhen

Biography

Helen Chun is an assistant professor in Services Marketing at the Cornell University School of Hotel Administration. She has developed expertise in the fields of consumer experience management in the service context, focusing on the role of consumer response and sensory marketing. She has received the Teacher of the Year Award, and Ted Teng ’79 Dean’s Teaching Excellence Award.

Cornell University School of Hotel Administration

Cornell University School of Hotel Administration was the first collegiate program in hospitality management in the U.S. The prestigious institute is now a global leader in its field. It also showcases its famous Statler Hotel and J. Willard Marriott Executive Education Center.

30

Helen Chun

CEO Patrick mannion

healthier choices are the way oF the Future

31

Special Issue

of these products may even have 50% sweetener.Sugar free is the most popular form of sugar

reduction in the global confectionary market, but Mr. Mannion pointed out that the ”no added sugar” category is showing impressive growth. Products with no added sugar refers to natural ingredients. For example, fruit flavored chewing gum with natural occurring sugar from actual fruit. These natural flavor products mostly feature no added sugar or sweeteners.

It is still an ongoing debate whether sugar or sweeteners are better for your health, and many consumers readily prefer products that advertise real sugar. This is because they feel that sugar is a natural ingredient, while sweeteners are considered an unnatural additive.

The rise of “natural” clean labels

AnothertrendpointedtoinMr.Mannion’skeynotewasthatconsumersareoptingfornaturalalternativesandarewillingtopaymoreforthem.Thisisleadingcompaniestoprovidecleanlabelsfortheirproducts.

“Sugar reduction is relevant for everyone.” That was the first key message delivered by

Innova Market Insights CEO, Patrick Mannion. Facing the growing abundance of food selections, more and more people are making health conscious decisions, and one of the primary ways to eat healthier is to reduce sugar intake. That is critical for children, people who want to manage their weight, and the elderly for healthy aging.

Sugar is often linked to obesity and diabetes, a primary reason why food companies are racing to reduce it. Market research from Innova shows that in 2013, 22% of soft drinks launches tracked had reduced sugar content, while 12% of cereal launches also displayed sugar reduction. Even the confectionary industry, which is most dependent on sugar, was able to reduce sugar in 8.6% of its newly introduced products.

Sugar is not the only ingredient used to give sweet taste. Asian confectionaries are known to use sweeteners and, in 2013, the share of product launches in the confectionary market that depended on sweeteners was 40%. For example, candy and chewing gum are labeled as “sugar free,” and some

32

Patrick Mannion

global food trends are becoming healthy. with the growing awareness of the aging population, the food industry is turning to healthier food trends. from natural flavors to stevia, consumers are paying more attention to the food they eat. innova market insight’s patrick mannion stresses that food companies need to identify the next big consumer group.

Soft drinks biggest category for reduced sugar claims

No slowing down of sweeteners in confectionery

No-added-sugar gaining momentum

Clean label claims still on trend

What does “natural” mean to US consumers? Source: HFI

Sweeteners

40%

Sweeteners40%

100%

65%

146%

187%

0% 20% 40% 60% 80%

100% 120% 140% 160% 180% 200%

2010 2011 2012 2013

0%

50%

100%

150%

200%

250%

300%

2010 2011 2012 2013

GMO Free Natural No Additives/Preservatives Organic

263%

167% 167% 140%

20.6%

11.5%

8.4% 9.5%

6.6%

22.0%

12.0%

8.6% 8.6% 6.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Soft Drinks Cereals Spreads Confectionery Desserts & Ice Cream

Pene

trat

ion

amon

g m

arke

t lau

nche

s Top 5 markets for reduced sugar claims

2012 2013

33

Special Issue

AccordingtoasurveyofwhatUSconsumersthink“natural”infoodproductsmeans,themajority,or49%,answeredasnotincludinganypreservatives.Fully47%answered“noartificialflavors,”while39%said“noartificialcolors.”Alittleoverathirdofthesurveyorsalsosaidthatnaturalmeansitisinitsnaturalstate,whetheritismeatorvegetables.

Consumersarebecomingmoreconcernedandpickyaboutwhattheyeat.Moreandmorepeoplecheckfoodlabelstounderstandwhattheyarebuyingtofeedfamilies.Thishasbroughtalongatrendamongfoodcompaniestoaddincleanlabelsontheirproductlabels.Forexample,“natural”and“noadditives/preservatives”labelshaveincreasedsignificantlybetween2010and2013.FoodcompanieschoosingtousecleanlabelstoattracthealthconsciousconsumersarealsoincreasinginAsia.Comparedtonewproductlauncheswithcleanlabelclaimsin2010,“organic”labelsincreasedby252%in2013.

Australiaranksatthetopwiththehighestamountofcleanlabelclaimsin2013at45%,withtheU.S.cominginsecondwith31%.TheadditionofcleanlabelsisstillagrowingtrendinAsia,as13%ofproductslaunchedhadcleanlabels.Mr.MannionsuggestedthatAsianfoodpackagingcompaniescould

learnandbeinspiredfromthemorematuremarketsofAustraliaandtheU.S.

Clear trend: consumers want more natural, less artificial

Themoretheconsumersknowaboutsomething,themoretheyaregoingtoconcentratetheirfocusonit.Consumerswanttounderstandtheingredientlist,andtheydon’tliketoseewhatMr.Mannionreferredtoase-numbers,whicharecodesforsubstanceswhichcanbeusedasfoodadditives.Theyareclearlyartificial,andfoodcompaniesarefinallyunderstandingthatconsumersfeelnegativetowardsthesebecausetheyappearnon-transparent.Morecompaniesarechoosingtoavoidprintinge-numbersontheingredientlist,andhavestartedusingthefullingredientnames.In2006,18.9%shareofnewproductslaunchedhade-numbersintheingredientlist.Butin2013,therewasa4.9%decreaseinproductswithprintede-numbers.

Makingcleanlabelclaimsutilizingwhatisfamiliartotheconsumers,suchasemphasizingtheuseofnaturalingredients,willhelpgivetheproductapositivebrandimage.Companiesarecomingupwithnewways

Consumers want to understand ingredient lists

(L)PatrickMannion,CEOofInnovaMarketInsights

(R)Jeong-kwanChoi,GeneralManagerofInnovaMarketInsightsKorea

34

Patrick Mannion

sweeteners.Steviafitsanichemarketasanaturalingredientthatalsocanplaytheroleofanartificialsweetener.Steviahassteadilyincreaseditsshareintheconfectionaryindustryby13%inthepastfouryears.TheuseofotherartificialsweetenerssuchasAcesulfameK,Aspartame,andSaccharinhasbeendecreasingovertheyears.AccordingtoInnova’smarket

ofmakingcleanlabelclaimslike“99%realfruit,”“100%coldpressedorganicjuice,”and“fruit,absolutelynothingelse.”

Althoughsugarisanaturalingredient,manyconsumersstillexpresshealthconcerns.ThisiswhyStevia,anaturallowcaloriesweetener,isboomingintheconfectionaryindustrycomparedtootherartificial

Success of Stevia

The ignored age group is significant and growing

Natural preferred over artificial colorings

68% 71% 72%

76% 75%

48% 46% 47%

41% 42%

40%

45%

50%

55%

60%

65%

70%

75%

80%

2010 2011 2012 2013 2014

NPL

s w

ith c

onfe

ctio

nery

co

lorin

g in

gred

ient

s

natural colorings artificial colorings

Total per year >100% because products can contain both natural

and artificial colorings.

0% 10% 20% 30% 40% 50% 60% 70% 80%

2010 2011 2012 2013 2014

conf

ectio

nery

with

no

n-nu

triti

ve-s

wee

tene

rs Acesulfame K Aspartame Saccharin Sucralose Stevia

+13%

35

Special Issue

choosingtofocusontheyoungergenerationasthemajorconsumersofthefuture.

ButInnovasuggeststhemarketresearchshowdifferentresults.Theseniorpopulationwillexceedtheyoungerpopulationinthenearfuture,meaningthatthefocushastoshift.Thiscouldbeabigopportunityforcompaniesiftheydevelopproductsthatmeettheneedsofthisnewlyimportantgroup.Mr.Mannionexplainedthattherearethreekeyattributesthatwouldappealtotheseniorconsumergroup:convenience,health,andtaste.

Foodcompanies,pharmaceuticalcompaniesandthepackagingindustrymustworktogetherthroughopeninnovationtoprovidetheseattributes.Packagingcompaniesneedtodeveloplightweightandeasytoopenpackages,andhaveeasytoreadlabels.Pharmaceuticalsshouldworkwithfoodcompaniestocreatestrongflavored,easytoswallowfoodthatisalsobeneficialfortheseniorconsumers’health.

research,22%ofnewproductslaunchedwithSteviahadacleanlabelpositioningsuchas“fewercalories,”“noaddedsugar,”and“nosugars.”

Sweetenersarenottheonlyfactorsconsumersprefernatural.Naturalcoloradditiveshavebeentakinguptoa75%shareinnewlylaunchedconfectionaryproductsworldwide.Morecompaniesareputting“noartificialcolorsorflavors”intheirproductlabelstoattracthealthconsciousconsumers.

senior consumers form an increasingly important target market

AnimportantfactorMr.Mannionpointedoutisthattheworld’sgrowingpopulationsofseniorcitizensisnolongeranichemarket.Rather,itisthenextbigconsumergroup.ThisisespeciallytrueinAsiancountriessuchasKorea,JapanandChina.Andyet,the40-59agegroupisoftenunderestimatedasatargetfornewproductdevelopment,withmostcompanies

Biography

Patrick Mannion is the CEO of Innova Market Insights. He has dedicated his working life to food industry intelligence and knowledge for professionals. He co-founded Innova Market Insights and The Innova Database to develop a professional network for international market intelligence. Mannion has published many articles on future food trends and regularly shares his expertise at major food forums worldwide.

Innova Market Insights

The Innova Database is the world’s largest food and beverage database. Led by a team of experts, the online database has product data from more than 70 countries. The company also offers solutions for food companies and researchers. Many global companies rely closely on the Innova Database to create new marketing strategies and to keep track of new technologies.

Natural preferred over artificial colorings

36

Patrick Mannion

FoodPolis and changes in the food industry

Panel Discussion

37

Special Issue

The panel discussion topic was about the changes in the food industry and the role FOODPOLIS plays in it. There was an active discussion on what needs to be done to make FOODPOLIS a successful Asian food hub. This is a summary article covering some of the important points that were discussed.

In addition to the four keynote speakers from the forum, Professor Robert A. Peterson, Dr. Ronaldo Visschers, Professor Helen Chun, and Mr. Patrick Mannion, the panel included several academic leaders and representatives from business. Honorary Professor Sam-ock Lee of Seoul National University hosted the panel discussion, with Professor Younsuk Lee from Yonsei University, Professor Oran Kwon from Ehwa Womans University, Professor Junghee Lee from Chung-Ang University, and Director Yangwoo Kim of CheilJedang participating.

The biggesT Trend in food“Youneedtogiveincentivesforhealthytrends,”saidDr.Visschers.Anincreasingnumberofconsumersarebecomingmorehealthconscious,andthefoodindustryisshiftingtomeettheconsumerdemand.Manyresearchinstitutesareworkingonfindinghealthierwaystomakefood,andevenDr.Visschers’researchteamhasspentyearsworkingonthesaltreductiontechnologytohelpfoodcompaniesreducetheuseofsodiuminprocessedfoods.ProfessorPetersonandMr.Mannionstronglyagreed,withMr.Mannionpointingoutthatthebiggestconsumergroupistheelderlypopulation,anditwillcontinuetogrow.

idenTify The growing Consumer group“Weneedtoidentifytheneedsoftheelderlyconsumersasabigopportunity,”

emphasizedMr.Mannion.OneinterestingaspectsharedbyKoreaandtheNetherlandsisthatbothhavequicklygrowingelderlypopulations.Headdedthatpackaging,food,andpharmaceuticalindustriescouldstronglybenefitfromthisconsumergroupiftheyworkedtogether.ProfessorPetersonalsocommentedthatpeopletendtolosetheirsenseoftastewithage,whichmeansproductsneedtobedevelopeddifferentlytotakeadvantage.

open innovaTion and ConvergenCeProfessorPetersoncamebacktohisthemeofopeninnovation,suggestingthatfindingasolutionthattargetsseniorconsumerscouldbeagreatchanceforopeninnovationtobemeaningful.Foodcompaniesneedtofindwaysofmakingstrongerflavorswhilekeeping

38

Panel Discussion

several academic leaders and representatives from business gathered to discuss the major changes being observed in the global food industry. The lively discussion ranged from the big trends to open innovation, and what foodpolis needs to do to succeed. experts showed high hopes for foodpolis and strongly suggested the importance of the building a global network.

ithealthy.Thisiswheretheycanworkwithpharmaceuticalcompaniestomakefunctionalfoodsthatwouldbenefittheconsumerwithtasteandhealth.Foodpackagingcompaniescantieeverythingtogetherwitheasy-to-readlabelsandconvenientpackaging.

“Convergenceisessential,”saidProfessorKwon,addingthat“thetwokeywordsweneedtofocusonareconsumerandtechnology.”Shewasspecificallyreferringtothecriticalnexusofactivitybetweenindustriesandresearchinstitutesandhowitneedstobealignedtowardsfiguringouthowtoutilizetechnologytomeetconsumerneeds.She

opinedthatFOODPOLIScanplaytheimportantroleofbuildinganetworkthatbringstogethercompanies,governmentsanduniversities.

The $500 billion paCkaging indusTryProfessorYounsukLeearguedthatthegreatpotentialofthepackagingindustrycouldalsobenefitfromopeninnovationinFOODPOLIS.“Thefoodpackageisthesilentsalesman,withfoodpackagingaccountingfor70%ofthe$500billionglobalpackagingindustry,”hesaid.

ProfessorJungheeLeeadded

thatfoodmarketingthatmakesfoodpackagingworkinconcertwithsocialmediahasthepowertoopennewsdoorstoconsumers.Healsoemphasizedthatinordertobuildourfoodindustry’sglobalcompetitiveness,moreresearchmustbedoneconcerningthesafetyoffoodpackaging.

Givinginsightfromthefoodindustry,DirectorKimsaidsomeofthebiggestconcernsfoodcompanieshavearethepossiblesocialandfoodproblemsledbytheagingpopulation.Hepointedoutthatinternationalcompaniesareconstantlyworkingondevelopingsafer,morefunctionalpackagingtechnologiesthatcananticipateconsumerdemandinthefuture.HestronglybelievesthatKoreanfoodcompaniesalsoneedtounderstandthattheseniorconsumergroupisgrowingandthattheyshouldadjusttheirpackagingstrategiesaccordingly.

The imporTanT faCTors for food produCT paCkagingOfthemanyquestionsfromthefloor,therewasonequestionthatstoodout:“Asafoodcompany,whatisthefirstfactortoconsiderinmakinganewfoodproductpackaging?”

“Packagingdesignneedsexperiencewithsensoryexpectationsandfunctionality,”repliedProfessorChun.Shealsoaddedthatsustainabilityandfunctionalitymustworktogethertobe

39

Special Issue

successfulingivingapositiveimagetotheconsumer.Aprimeexamplegivenwashowonecompanywantedtomakeaneco-friendlypackageandcompromisedonfunctionality,whichresultedinthebagmakingaveryloudpoppingsoundwhenbeingopened.Theprofessorsaysfunctionalyetsustainablepackagingcouldbetheabstractgoaltohelppeoplemakehealthierandenvironmentallyfriendlydecisions.

what is the first step for foodpolis?Thelastquestionofthenightwasprobablywhatmosteveryoneinthefloorwaswondering:“In2016,FOODPOLISwillbeginoperation.WhatisthefirststepforFOODPOLIStosucceedandfosteropeninnovation?”

ProfessorPetersonstartedtheanswerwiththecommentthat“youneedaveryspecificandstrategicplanforthefoodculture.Planforthevariouskindsofentitiesandinstitutions.Makesuretheysupplementeachother.”HealsoemphasizedthatFOODPOLISiscurrentlyfocusingtoomuchonAsia,andthatitneedstolookbeyondtotheglobalmarkettobesuccessfulwithalong-termplan.“BylimitingthevisiontojustAsia,FOODPOLIScouldbemissingeverything.”

Mr.Mannionstronglyagreedwiththeprofessor,andpointedoutthatFOODPOLISshouldworkwithotherclusterssuchasFoodValleyfromtheNetherlandstobuildnetworksandinnovation.Otherfoodclustershavegrownorganicallyandhavetheexperiencethatcouldhelptheindustrialfoodcomplexoperateefficiently.

“Youwillneedexcellentprofessorsandresearchers.FOODPOLISneedsincentivesforuniversitiestocomeinanddeveloptheindustry,”saidDr.Visschers.HealsopointedoutthatKoreahasacompetitiveadvantagewithtraditionalhealthyfood,andrecommendeditasoneofthefieldsoffurtherresearch.

OnhearingDr.Visschers’suggestions,ProfessorPetersonalsoencouragedFOODPOLIStolookintothestrengthsofthefoodandtechnologyinthecluster,emphasizingtheneedofastrongcommunityofscientistsandresearchers.“Ifyoucannotgetthemhere,networkwithinstitutesworldwide.”Theprofessorsaysthefoodindustrykeepsevolving,andthateventheyoungergenerationissettingtheirsightsonthemarket.AccordingtoasurveyonmillennialsnationwideintheU.S.,thelargestnumberofpeoplewhoansweredtheywanttobeentrepreneurssaidthey

wouldbeinthefoodindustry.“Technologyisthemostimportant

factorinthefoodindustry,”addedProfessorOran.SheimpliedthatthereareavarietyoftechnologiesthatcouldbeopportunitiesforFOODPOLISiftheybuildastrongnetwork.

Wrappingupthepaneldiscussion,thetwomainmessagesthatstoodoutwereopeninnovationandglobalnetworking.FOODPOLISistobeginfullyoperatingin2016,andexpertssaythekeytosuccessistobuildastrongglobalnetworkbeyondAsiatofullypursueopeninnovation.Ratherthanlookingatashort-termgoalof2016,FOODPOLISwillneedtolookat30yearsasalong-termgoaltoestablishitselfasaglobalfoodhub.

40

Panel Discussion

credits

publisherFOODPOLIS

KOREANATIONALFOODCLUSTER

TaeyangB/D4F40-9,Jungang-dong,

Gwacheon-si,Gyeonggi-do,

Korea427-806

Tel.+82-1688-8782

http://eng.foodpolis.kr

content DevelopmentTowerCommunications,Inc.

Tel.+82237896244|www.towercom.kr

ChiefEditor:MikeWeisbart

Writer:AliciaBaik

Design & printing AgencyA1LAB

Tel.+8223364089|www.all-1.com

Director:KimBoil

Manager:ChoiJi-hoon

Sr.Designer:JangDay-one

Photographer:LeeByoung-sam

FOODPOLIS whereInnovation meets taste