Vertical Proteins
Muenster Consulting is undergoing a transformation towards vertical proteins, addressing key issues with the current business model, analyzing the world's food challenges, and proposing solutions through a change in business focus to protein-rich products. The company aims to enhance nutritional benefits, cost efficiency, and sustainability awareness by focusing on planting vertical proteins and expanding education efforts in Asia.
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Presentation Transcript
Muenster Consulting Vertical Proteins Vertical Proteins is not just a business model change it s a system change.
Agenda Muenster Consulting Carolin 1 Management Summary Theresa 2 Analysis Basti 3 Implementation Robin 4 Finance Carolin 5 Conclusion Management Summary Analysis Implementation Finance Conclusion 2
Muenster Consulting Management Summary Carolin 3
The current business model has some key issues Muenster Consulting - Urgency + - Few nutritional benefits with current product choice Organic vegetables are not appreciated by consumers Cost intensive model + Importance Organic not appreciated Cost intensive Few nutritional benefits Analysis Implementation Finance Conclusion Management Summary 4
Key Question Muenster Consulting Can Aerofarm meaningfully solve the worlds food problem without cultivating high calorie-based proteins and grains? Analysis Implementation Finance Conclusion Management Summary 5
A change in the business focus is needed Muenster Consulting Change in focus to protein-rich products Increase of education offers Focus expansion efforts in Asia Strategy Outcome Increase of nutritional benefits Cost efficiency Sustainability awareness increases Planting vertical proteins Analysis Implementation Finance Conclusion Management Summary 6
Muenster Consulting Analysis Theresa 7
The world faces a lot of nutritional problems Muenster Consulting Increasing population Increasing demand Climate Change Loss of fresh water Food safety & food security endangered Trade Wars Urbanization Loss of arable land Management Summary Implementation Finance Conclusion Analysis 8
Vertical Farming as the solution for those nutritional problems Muenster Consulting Food safety & food security endangered Increasing population Increasing demand Climate Change Loss of fresh water Vertical Farming as sustainable solution! Trade Wars Urbanization Loss of arable land Management Summary Implementation Finance Conclusion Analysis 9
Vertical farming is the winner in the nutrition market Muenster Consulting Traditional Farming Vertical Farming Less production capacity Dependent on climate 95% less water usage 50% less fertilizer usage More timely Less transportation costs More sustainable! Management Summary Implementation Finance Conclusion Analysis 10
Broaden the product portfolio by protein-rich offerings Muenster Consulting Demand of protein-rich food Health Sustainability Offering a broad product portfolio Management Summary Implementation Finance Conclusion Analysis 11
Broaden the product portfolio by protein-rich offerings Muenster Consulting Demand of protein-rich food Health Step from a supplement offering to a core nutrition offering! Sustainability Offering a broad product portfolio Management Summary Implementation Finance Conclusion Analysis 12
Go to Asia Muenster Consulting Highest market value of vertical farming Human capital Cheaper R&D costs Less threat of regulations No national funding limitations Cost efficiency Management Summary Implementation Finance Conclusion Analysis 13
Growth problems can be mitigated Muenster Consulting Crop variety Protein-rich offerings needed for every meal The need of sustainability will ensure the efficiency and profitability of a product portfolio with protein-rich offerings. Subsidies Venture capital Debt financing based on sustainable business model Funding High energy consumption Increasing efficiency of 50% Talent acquisition IT knowledge in the emerging industries China & Singapore Management Summary Implementation Finance Conclusion Analysis 14
Alternatives Muenster Consulting Criteria Feasibility Sustainability Financial Impact Management Summary Implementation Finance Conclusion Analysis 15
Alternatives Muenster Consulting Criteria In-vito Meat Feasibility Sustainability Financial Impact Management Summary Implementation Finance Conclusion Analysis 16
Alternatives Muenster Consulting Criteria Focus on vegetables and greens In-vito Meat Feasibility Sustainability Financial Impact Management Summary Implementation Finance Conclusion Analysis 17
Alternatives Muenster Consulting Criteria Focus on vegetables and greens Vertical Proteins In-vito Meat Feasibility Sustainability Financial Impact Management Summary Implementation Finance Conclusion Analysis 18
Alternatives Muenster Consulting Criteria Focus on vegetables and greens Vertical Proteins In-vito Meat Feasibility Sustainability Financial Impact Management Summary Implementation Finance Conclusion Analysis 19
Recommendation Muenster Consulting Build up a new vertical farming structure in Asia by extending the product portfolio with protein-rich vegetables. Management Summary Implementation Finance Conclusion Analysis 20
Muenster Consulting Implementation Bastian 21
In order to gain know-how in Vertical Proteins R&D needs to be established Muenster Consulting What? Establish R&D hub for Vertical Proteins in India Why? How? No know-how in vertical proteins yet India is a good for finding qualified developers and scientists Danger of loss of intellectual capital in other countries Establish plant in India Hire scientists and developers Research in US until hub is ready Management Summary Analysis Finance Conclusion Implementation 22
Target countries for Vertical Proteins will be China and India Muenster Consulting What? Expansion to China and India Why? How? Establish plants in major Chinese and Indian cities Transfer knowledge from R&D hub to new plants Hire workforce Establish distribution channels High demand for plant based diet Large population Economies of scale by expansion Management Summary Analysis Finance Conclusion Implementation 23
In order to convince customers of Vertical Proteins they will be educated Muenster Consulting What? Introduce educational campaign Why? How? Show-rooming at POS and sales support Marketing education campaign Partnering with further airlines Partnering with retailers (from plant to plate within hours) AeroFarms is lacking organic label Consumers prefer organic food As a consequence consumer needs to be educated Management Summary Analysis Finance Conclusion Implementation 24
Timeline Muenster Consulting 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 R&D protein hub Expansion Asia Educational campaign Securing funding Management Summary Analysis Finance Conclusion Implementation 25
Muenster Consulting Finance Robin 26
Debt-financing needed for expansion Muenster Consulting Required total investment per farm 35M$ Number of plants by 2030 42 Total required funding capital 500M$ Total required debt capital 400M$ Revenue per farm per year by 2030 12.8M$ Total Free Cashflows in 2030 239M$ Operative costs per farm per year 4M$ Break-even in 2026 Management Summary Analysis Implementation Conclusion Finance 27
Break-even in 2026 Muenster Consulting In M$ 600 500 400 300 Break-even 200 100 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 -100 -200 -300 -400 Revenue Free Cashflows Management Summary Analysis Implementation Conclusion Finance 28
Potential risks are identified Muenster Consulting Impact Risks Mitigations Regulation Joint ventures and cooperation with large companies Funding Funding Switch expansion focus Regulation Probability Management Summary Analysis Implementation Conclusion Finance 29
Muenster Consulting Conclusion Carolin 30
The future is vertical Muenster Consulting Change in focus Increase of education offers Advanced and more intensive R&D Strategy Next steps Establish R&D hub Partner acquisition (e.g. cooperation and schools) Vertical Proteins is not just a business model change it s a system change. Management Summary Analysis Implementation Finance Conclusion 31
Muenster Consulting Muenster Consulting Thank you for your attention! 32
Muenster Consulting Appendix 33
Business plan Muenster Consulting Revenue 56 112 166 235 301 362 390 421 454 489 539 Cost of revenue 54 102 135 156 164 167 163 162 161 160 163 Gross profit 2 10 31 78 136 195 228 259 292 328 375 Investments Marketing, Education & Partnering 0 280 210 175 128 128 32 32 30 30 60 20 20 30 40 40 40 40 45 45 45 45 Protein R&D 30 25 25 20 20 10 5 5 5 5 5 Interest 0 20 50 40 30 30 30 30 30 30 30 Free Cashflows -48 -335 -284 -197 -82 -13 121 147 182 218 235 Management Summary Analysis Implementation Conclusion Finance 34
Assumptions Muenster Consulting Revenue 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Average revenue per farm Price & inflation-related increases 6.2 6.6 7.2 8.4 9.4 10.0 10.6 11.1 11.6 12.2 12.8 0% 3% 5% 8% 6% 3% 2% 2% 2% 2% 2% Output-related increases 0% 3% 5% 8% 6% 4% 3% 3% 3% 3% 3% Costs Average costs per farm per year 6.0 6.0 5.9 5.6 5.1 4.6 4.4 4.3 4.1 4.0 3.9 Efficiency improvements 0% 0% 2% 5% 8% 10% 5% 3% 3% 3% 3% Management Summary Analysis Implementation Conclusion Finance 35
Farm expansion plan Muenster Consulting 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Total number of farms 9 17 23 28 32 36 37 38 39 40 42 India 0 2 5 8 10 12 12 12 12 12 12 China 1 7 10 12 14 16 16 16 16 16 16 US 7 7 7 7 7 7 8 9 10 10 10 Others 1 1 1 1 1 1 1 1 1 2 4 Average total investment per farm 35 35 35 35 32 32 32 32 30 30 30 Management Summary Analysis Implementation Conclusion Finance 36
