WHY WHAT

HOW

FOOD TECH IS EVERYWHEREACROSS THE PRODUCT VALUE CHAIN

Breeding for yield

Automated detection

Efficiency

Shelf-life

Consumer values

Taste

Functional

Freshness

Sustainability

Recipes

TexturesNutrition

Raw Materials Ingredients PackagingProcessing

Energy saving

Clean water

Waste water

Flexibility

infrastructure

Cost

TODAY MORE THAN EVER

TECHNOLOGY IS KEY

TO SUSTAINABLE

PERFORMANCE

• Volume to Value

• Pressure on margins

F&B VALUE CREATION WAS DRIVEN BY VOLUME

1960 1970 1980 1990 2000

4,000

3,000Food supply adjusted for

spoilage, cooking losses,

plate waste and other losses2

Calories from the US per capita food supply* increased 19% between 1983 and 2000

Total food supply

available for consumption1

2,000

*Adjusted for losses,

1. Rounded to the nearest hundred

2. Not calculated for years before 1970

Source: USDA's center for Nutrition Policy and promotion, USDA's economic research service

EDGE OF VOLUME

INCREASE ERA*

H&W AWARENESS

SUSTAINABILITY

RAW MATERIALS

REGULATION

THE EDGE OF VOLUME INCREASE

IS GETTING CLOSER

* in developed countries

PRESSURE ON MARGINS IS HERE TO STAY

Raw materials

Producers ConsumersRetailers

• Inflation

• High volatility

• Flow of information

• Organized consumer

• Organized trade

• PL

MACRO ENVIRONMENT

HIGH

MA

RG

IN

LOW HIGH

VALUE TO CONSUMERS

PL

Branded

MARKETS ARE BECOMING

MORE & MORE PERFECTED

PERIPHERY IS GROWING AT THE EXPENSE OF MAINSTREAM FOOD

MAINSTREAM F&BBasicValue

added

• Slow down

• PL

• Raw materials

inflation

• Discounters

• Naturally healthy

• Convenience

• Indulgence

• Experimenting

• Sustainability

• Aging population

• Food+

CHALLENGES OPPORTUNITIES

● Must be strong to

survive in mainstream

● Volume decline in

mainstream

● Pressure on margins

● Periphery grows at

both ends

● Emerging ‘new’ needs

● High margin, high

growth value added

PRODUCT EDGEPRODUCTIVITY

TECHNOLOGY IS BECOMING FUNDAMENTAL TO F&B

PRESSURE ON MARGINS

CONSUMER VALUE

•Enhance yield

•Lower defects

and returns

•Extend shelf-life

•Improve

extraction

efficiency

•Control raw

material properties

and quality

TECHNOLOGY •Develop / identify

smart Ingredients

•Increase product

freshness

•Improve nutrition

(functional food)

•Maintain the

natural form

ERA 4.5 – OPEN INNOVATION

CAN WE DEVELOP

THE FOOD TECH

COMMUNITY IN

ISRAEL?

IS IT A GOOD BASE FORE

FOODTECH?

THE ANSWER IS YES!!

(SCREEN SHOT OF R&D ECOSYSTEM RELATED

TO FOOD)

BUT THE DOTS ARE NOT YET CONNECTED

Venture Financing

Service

Providers

Entrepreneurs

Researchers

There is an opportunity to participate in & accelerate the development of the Food Tech industry in Israel

Academy

STRAUSS GROUP ADDS VALUE & BENEFITS FROM ISRAEL’S FOOD TECH VENTURE INDUSTRY

Entrepreneurs

Venture Financing

Researchers

Service Providers

Academy

Initiation Process:

ALPHA PROCESS: SEARCH & DEVELOP

Flow Screen RollDevelopEngage

R&D

Ecosystem

1Clarify & ShareOur needs

2 Identify Rich Tech sources

4FacilitateAll means for progress

3CreateCommunity

THE ALPHA STRAUSS JOURNEY

2012Community &flow creation

2014 - 2016 Impact

2013 Early wins

33

2011 Plan

Raw materials

Sustain Naturallyhealthy

Better nutrition

PackagingFunctional

LETS DEVELOP