Beyond the Sustainability Trend

Welcome to my LinkedIn Newsletter to get your dose of entrepreneurial inspiration! I will share some intriguing facts, captivating stories, research insights, and ideas on entrepreneurship that I personally find fascinating and inspiring. Who knows, it may also spark your curiosity!

Our unsustainable reality

When I was a child, I lived in a circular economy without even knowing it. Every summer, I stayed with my grandparents in a village. They grew vegetables, fruits, and berries, and raised goats and chickens, relying on homemade food. There was no restaurant. When we went to the market, we brought our own containers to package the food we bought. There was no food delivery, we had to go there ourselves. All “food waste” – such as the peels of fruits or vegetables – was cooked and used to feed animals. Nothing was wasted.

Look around. Where do we stand now?

Estimating the impact of our food systems on our planet is a daunting task. The numbers vary widely, but they share a common warning: we are moving in the wrong direction and change is needed. Food typically symbolizes health, pleasure, joy, and culture, right? Good things! But the hidden costs of our complex food systems, which accounts for about 10% of global GDP, significantly impact the lives of our more than 8 billion population.

Experts highlight food waste as a significant problem.A glance at the numbers reveals the severity of the problem: China leads ?the way with 91 million tons of food waste, followed by India with 68 million tons, and the US with 19 million tons. While the high numbers in China and India may be due in part to their large populations, the situation in the US primarily reflects its status as the world’s largest food consumer.

Both, nature and The Nature alert us to the consequences of our (in)action. Our ancestors were unfamiliar with the concept of food waste; their concern was food scarcity, and they were meticulous about using every bit of food they had.

In recent decades, we have entered an era of overconsumption. For those fortunate enough to be born in developed countries, the issue of hunger is often known only through experiences with extreme diets. However, the reality of global hunger is staggering. Today, one in nine people on the planet goes to bed hungry, not knowing where their next meal will come from.

One question arise: Can we end hunger and malnutrition by 2030? With estimates indicating that one third of the world’s food is wasted or lost, it is clear that the challenge we face is systemic and complex.

If you’ve been following this Newsletter, you may be wondering why I chose to discuss this topic. My answer is simple: startups in the food sector are driving solutions to global challenges and contributing to the SDGs.

What startups do

Startups are unique entities, described by Steve Blank as “temporary organizations formed to search for a repeatable and scalable business model”. Their journey is not always rosy, with a fair share of challenges and not every day is sunny.

Remarkably, it is estimated that around 137,000 startups are launched every day around the world. Can you believe that? And, yes, as you might expect, a significant portion of these startups are born in the USA.

This influx of startups suggests that some of them are driven by necessity – such as a lack of other job options – or by seizing opportunities, or even both. Among these startups, there are individuals willing to tackle pressing global issues, and they are finding numerous solutions – potentially as many as 137,000 a day...

There are countless innovative startups out there, but I’d introduce a few interesting cases in the food sector.

AgroSustain

AgroSustain – a Swiss startup co-founded in 2018 by Olga and Sylvain Dubey. They develop natural solutions for protecting crops, fruits and vegetables, thereby reducing food waste and greenhouse gas emissions and extending the shelf life of these fruits and vegetables. Their primary focus is on B2B customers. Following pilot trials, they launched AgroSFruits – initially focusing on exotic fruits. Today, they also offer AgroSFlowers and are in the process of certifying their product AgroSVegetables.

This startup is a spinoff from the University of Lausanne. With 6 patents in the bag, they contribute to solving at least 6 SDGs: no poverty, zero hunger, good health and well-being, responsible consumption and production, climate action, and life on land. In addition, AgroSustain has been consistently ranked among the Top 100 Swiss startups from 2019 to the present.

Low Impact Food

Low Impact Food, launched in 2020 by Simon Meister and Camille Wold, Ucreate participants, aims to provide sustainable protein sources with high positive impact. The startup focuses on creating innovative, healthy, and locally sourced insect-based food products. The founders were motivated by the realization that our current consumption habits and food systems are unsustainable in the long term and that immediate action is critical. Starting with edible insect snacks, their vision extends far beyond. By recycling food waste to feed mealworms, which in turn serve as a source of protein for both animals and humans, they want to make a tangible contribution to the sustainable transition and circularity, ?getting back to our roots in a modern way.

ChobaChoba

Living in Switzerland almost guarantees that you are familiar with Swiss chocolate, especially well-known brands like Lindt or Cailler. But have you heard of ChobaChoba*? I discovered their inspiring story at the E4S event in May 2023. Co-founders Eric and Christoph were industry insiders who observed firsthand how large corporations dominated the market, setting prices that often left farmers underpaid and vulnerable to imbalances in the value chain, despite their critical role in chocolate production.

Motivated to change the industry, they left their well-paying jobs to create a better system. They began working directly with cocoa farmers, transforming them into true entrepreneurs by creating the first Swiss Chocolate brand co-owned by cocoa farmers. This approach aligns well with the global agenda and aims at seizing the opportunity to lead change with farmers, as emphasized by the World Economic Forum.

*The name "Choba Choba" stems from a peruvian proverb meaning “I help you, you help me”.

And more

Another example stands out for its innovative approach to processing. In 2020, a zero-waste, women-led startup set out to transform surplus food into artisanal ice creams and sorbets. The founder, a professional chef, was struck by the the scale of food waste and inspired to create new products from what others were throwing away. I see that numerous startups are reclaiming rejected food and offering it to those who appreciate it – using various business models. In pursuit of this mission, the chef partnered with producers to collect surplus goods, such as bananas, and crafted them into delicious treats like Bananitas – ?dehydrated banana pieces dipped in 70% cacao chocolate.

What sets this journey apart is not only the sustainable idea and business model but also the entrepreneurial strategy. To start her venture, she relied on bootstrapping and launched a Kickstarter campaign to purchase specialized equipment. This venture is an example of creativity and resourcefulness, that shows the beauty of entrepreneurship.

The beauty of entrepreneurship

The potential for innovative uses of food waste is truly amazing! One of my students came up with a brilliant idea: biodegradable coffee cups made of by-products of coffee beans. There is a startup turning organic waste – like fruit and vegetable peels, expiring flowers, and coffee grounds – into stylish furniture and home decorations, including tables or wall panels. It is nothing short of amazing. La Patisserie Numerique is a startup that blends technology with the culinary arts. They are pioneering desserts using patented 3D technology that repurposes food waste!

Foodtech startups are “a cellar of disruptive innovation”. They are revolutionizing agriculture with new technologies, creating novel ingredients and food products, reshaping the hospitality industry, and developing consumer services ranging from grocery delivery to devices and apps that enhance the dining experience and manage food.

The evolution of food technology is remarkable. In this landscape, food industry startups are not only innovating, they are creating new markets and making a global impact. Their products and services align with at least 8 of the 17 SDGs: no hunger (SDG 2), good health and well-being (SDG 3), clean water and sanitation (SDG 6), decent work and economic growth (SDG 8), industry, innovation and infrastructure (SDG 9), responsible consumption and production (SDG 12), life under water (SDG 14), and partnerships for goals (SDG 17).

Where are we going?

Far from being set in stone, the future of food is shaped by a variety of emerging trends. Fast Company in 2023 spotlighted a list of finalist – startups introducing innovations that could change the way we eat. These innovations include animal-free egg whites, cultivated meats, peanut-free spreads, and animal-free cheeses…

Some of these startups rise and shine, many fail. Some achieve insane valuations and join the ranks of unicorns. But in all case, to survive and succeed, startups must prove that their business model is viable, scalable, and they can evolve into a robust business.

In Switzerland, 18% of funding went to sustainability-related startups. Yes, as AI begins to dominate the stage, the initial buzz around sustainability-focused startups seems to be fading.

Despite this shift, sustainability should not been seen merely as a trend or a buzzword but as a fundamental norm that is seamlessly integrated into our lives. Behind the glitter and glamour of “doing good” lies an enormous amount of hard work to ensure that these startups are sustainable in terms of both impact and viability.

Remember Everett Roger’s concept of diffusion of innovations and Geoffrey Moore’s idea of “crossing the chasm”? Once the initial innovators bridge this gap and prove their sustainability in the broadest sense, numerous others are ready to safely adopt that “innovation”. The question is, which innovation will endure over time and become mainstream?

Change and transformation can also be initiated from the top down. The World Economic Forum has highlighted that countries are developing national pathways for food systems transformation. These will eventually evolve into detailed food systems strategies, investment plans and more, although we recognize the time this strategic process may require.

Getting started

Tina Seelig makes a compelling observation: our journey begins with imagination – to envision what doesn’t exist. We use our creativity to apply that imagination in solving problems. We innovate to shape those creative solutions into unique ideas, and then we “entrepreneur” (I use it as a verb) to leverage innovation to bring those ideas to life.

I couldn’t agree more with that cycle. Entrepreneurship is about taking action, and startups are launched by doers, not just dreamers (although dreaming has its place, too).

Whether they follow a well-trodden path, blaze a new trail to cross the chasm, or choose a completely different route, what ultimately matters is their contribution to positive change. And that potential for impact is in everyone, in every path, in every action – it is up to us.

Consider this: doing nothing for 365 days results in no progress, 1^365 =1. But even a modest effort can make a significant difference: 1.01^365 =37. 783434. And this year, which is a leap year, the potential for impact is even greater, as we have 366 days! It’s never too late to “entrepreneur”.

One of the primary reasons companies fail is due to a lack of market need, when consumers stop buying their products and services. Our daily choices dictate what lasts. ?Even a small positive shift in our habits – what food we buy and how we handle it – can significantly impact tomorrow and define who thrives and who fades away.

So, starting now, even the smallest steps toward what you wish to see tomorrow are worth taking.