IMPORTANCE OF INNOVATION TO FOOD

RETAILING

SIMON LUSHEY

HISTORY AND PROVENANCE

1980’s Unique Supply base - Competency,

Capability, Complexity. National Chilled Distribution

network. Growing market

2010’s Level playing field with respect to

supply base National chilled distribution the

norm Highly competitive market place

30 YEARS OF RECIPE DISHES

Recipe Raw Material Process

THREE ELEMENTS TO INNOVATION

Recipe

ProcessRaw Material

THE 2030 “PERFECT STORM” SCENARIOThe year is 2030 and the “perfect storm” forecast by John Beddington, England’s chiefscientific advisor, has arrived. These are the key developments:• Consistent with earlier demographic projections, global population has increasedfrom 6.8 billion to 8.3 billion.• Demand for food has grown by 40 percent, but supplies have not kept up withdemand. World grain reserves are empty. The FAO warns that bad harvests andgrain export embargoes are pushing 200 million people to “the brink ofstarvation.”• Demand for energy has grown by 45 percent, but supplies in recent years have notkept up, and the resulting scarcity has pushed energy prices to record highs.• Global demand for water has grown by close to 30 percent. Water conservationmeasures have helped, but close to four billion people are now living in an area ofhigh water stress.• Efforts to reduce greenhouse gas emissions have fallen far short of the pledgesmade in 2010. Climate change is more evident, and the concentration ofgreenhouse gas emissions is dangerously close to the 450 ppm level that couldtrigger the worst effects of climate change.• Shortages of food, energy and water are increasing the number of failed states and ratcheting up international tensions.

HEALTH OF THE NATION

2/3rds

MALNUTRITION ON THE INCREASE

4 MILLION

30%

60%<1in 3

3 MILLION

MARKET BACKDROP

FOOD WASTE

FOOD FRAUD, FOOD ADULTERATION

Adulterated food is impure, unsafe, or unwholesome food.

food fraud is most commonly referred to as the intentional defrauding of food and food ingredients for economic gain.

TECHNOLOGY AND PACKAGING INNOVATION

INCREMENTAL VS. RADICAL INNOVATION

WHAT IS INNOVATION?