July 2, 2020

By Lynda Kiernan, Global AgInvesting Media

China Food Tech Hub – a new consortium model organized by Bits x Bites to foster cooperation between startups and global leaders – continues to grow with the addition of three high-profile members: Nestle, Ajinomoto, and Italian pasta giant Barilla’s Blu1877,  a hybrid venture capital fund and innovation hub.

Bits x Bites, the first food-focused Vc fund and accelerator established in China, launched the China Food Tech Hub last year with partnerships with ag, biotech, processor, and food giants including an initial roster of General Mills, Coca-Cola, PepsiCo, Danone, Louis Dreyfus Company, Givaudan, Griffith Foods, Novozymes, Nutreco, and Puratos. In addition to the newest three members, the hub now also includes Ferrero, Mars Wrigley, and Sumitomo.

“Like most parts of the world outside of the EU and US, food tech is still in its infancy in China and there hasn’t been a strong ecosystem to support startups in this space,” said Matilda Ho, founder and managing director of Bits x Bites, in May 2019. “As China’s first food tech VC, we see an opportunity to bridge and strengthen these partnerships and hopefully make it easier for startups and corporations to share insights and work together.”

Since its launch, the hub has continued to bring together corporate heads of R&D, food innovation teams, and business leaders with Chinese and international startups, and has expanded to 15 member corporations from all points along the supply chain, and representing various verticals from consumer foods to animal feed, agricultural processing, and flavors and ingredients.

Today, amid the uncertainties of COVID-19, these connections have only grown in importance and the China Food Tech Hub is serving a critical purpose as opportunities grow but travel restrictions remain in place, by recently virtually convening its members with startup founders who are addressing new challenges along the supply chain through technologies such as AI, automation, and synthetic biology.

“Over the past decade, China has had its foot on the gas pedal to accelerate science and technology development,” said Ho. “Just this April China became the world’s biggest source of applications for international patents. In food and agriculture, Chinese scientists are also some of the most prolific producers of scientific research patents and papers.”

“Converting research into commercial successes will take time and a supportive network in the background,” continued Ho. “As an agrifood investor focused on the China market, we are thrilled to be working here on the ground with a growing community of corporations to support quality founders as they drive toward commercialization and scale.”

For Barilla’s venture firm Blu1877, membership in the China Food Tech Hub will help the advancement of its newly launched Good Food Makers Program, a flexible eight-week program for startups to work with Barilla toward the commercialization of more sustainable food products.

“By joining the China Food Tech Hub, we want to enlarge Blu1877‘s network and reach out to visionary teams and find new opportunities for innovation and collaboration for Barilla, particularly in plant-based, sustainability, well-being, and convenience trends,” said Michela Petronio, VP of Barilla’s Blu1877.

Another draw of the China Food Tech Hub is the access and connections it offers to the massive and dynamic Chinese market. 

“China is undoubtedly a key high growth market for Givaudan now and in the near future,” said Alexandre Bastos, global director of innovation, Givaudan. “We have seen an emerging food tech ecosystem and we believe these innovators will play a key role in accelerating and customizing key global trends such as alternative protein, cell culture, farming of the future to regional consumers.”

Meanwhile, Nestlé’s joining the hub aligns with its concurrent investment of 100 million Swiss francs (US$103.58 million) to expand its manufacturing activities in China, including its first plant-based food facility in Asia planned for the Tianjin Economic-Technological Development Area (TEDA), and broader production lines at its premium pet food and biscuit wafer plants in the country.

For legacy food companies this can mean working to develop new ingredients and products, or the fleshing-out of new business models, while connecting with small startups that are highly plugged in to shifting consumer trends.

“The China Food Tech Hub bridges two extremes in China’s food innovation: multinationals and disruptive startups,” said Daniel Deng, product development director, G&M/FC, Mars Wrigley China. “Together we trade industry and technology insights and explore synergistic opportunities. Mars is so happy to be part of this ecosystem and to collaboratively find breakthroughs in food technology and new product experiences.”

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.