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F&B Tech News - Aug 2020

What's new in China, in Asia and in the rest of the World

for the Food and Restaurant tech businesses?

August 20, 2020

Every month, for now, we are sharing what we found interesting to know in terms of investments, trends, M&A, startups, tech in China, Asia, and in the rest of the World for everything related to Food, F&B and Restaurant Tech, because it's kind of the only thing we do at NextStepStudio.co.

This list is in no way exhaustive and the original purpose was for our team to remain on top of everything that is happening in our industry in link with our existing portfolio companies, and the area we are exploring for future projects.

We just decided to share it with anyone who could be interested.

What's new in China?

01 - China’s biggest food delivery platforms act after state-backed calls to stop food waste

On Friday the China Cuisine Association announced that it had teamed up with Ele.me, the Alibaba Group Holding-owned food delivery platform, to launch a “half-dish plan”, encouraging restaurants to provide customers with the option to order smaller portions. Alibaba is the owner of the South China Morning Post.

https://www.scmp.com/tech/apps-social/article/3097628/chinas-biggest-food-delivery-platforms-act-after-state-backed

02 - Hong Kong’s food e-commerce startup DayDayCook raises $20 million

This week, Hong Kong-based startup DayDayCook announced that it has raised $20 million to expand its multifunctional food platform, whose users mainly come from mainland China. The company founded by banker-turned food blogger and entrepreneur Norma Chu offers a bit of everything: an app featuring recipes and food videos, cooking classes in upscale malls, and a product line of its own branded food products sold online, which makes up 80% of its revenues.

https://techcrunch.com/2020/08/18/daydaycook-raises-20-million/

03 - China embraces plant-based protein as consumers look for alternatives to meat amid Covid-19

China’s vegan food market is forecast to be worth nearly US$12 billion by 2023, up from just under US$10 billion in 2018 [...]

With wet markets in China under the spotlight as potential hotspots for fresh coronavirus outbreaks, consumers are looking for alternative sources of protein in their diets. That shift is providing start-ups and their investors with an opportunity to profit from China’s fledgling food tech sector.

https://www.scmp.com/tech/start-ups/article/3096300/china-embraces-plant-based-protein-consumers-look-alternatives-meat

04 -The Pandemic Made Self-Heating Instant Food Hot in China

The pandemic has seen sales of self-heating foods in China surge. Between late January and early February 2020, [...], sales of self-heating foods experienced the second-highest growth of all categories, year over year, according to Taobao, China’s largest online retailer. Sales of self-heating rice alone grew by 257%. They have enabled consumers to enjoy fuss-free dishes/hotpots/meals while restaurants were closed.

https://thespoon.tech/the-pandemic-made-self-heating-instant-food-hot-in-china/

05 - 4 Trends Driving Foodtech Innovation In China

While it’s likely the following could change within months, here are four key trends driving innovation in China’s food industry today.

  • A Fragmented Consumer Market
  • The Data Grab
  • Hyperconnected Consumers Expect Hyperconvenience
  • Demand for a Safe Supply Chain

https://www.forbes.com/sites/louisaburwoodtaylor/2019/06/04/4-trends-driving-foodtech-innovation-in-china-in-2019/#3430ee1717db

What's new in Asia ?

01 - Coca-Cola invests in Indonesian start-up Wahyoo

Coca-Cola Amatil has announced its corporate venture capital platform Amatil X had completed a strategic investment in Indonesian startup Wahyoo as part of its USD$5m Series A capital raise. Wahyoo is focused on digitizing and improving the business operations of warung makan – traditional small-scale local eateries and restaurants dedicated to serving Indonesia’s burgeoning working-class population.

https://foodmag.com.au/coca-cola-invests-in-indonesian-start-up-wahyoo/

02 - Thai hotel market to grow by over 31,000 rooms

The Thai hotel pipeline for the coming years certainly shows no lack of ambition. Researchers have found that 123 properties with 31,163 rooms are slated to expand the country’s offering. [...] Yet even without counting openings that may have to be pushed back, 2021 will see 29 hotels open with a total of 7,077 rooms. Another 23 properties with 6,522 keys are on the books for 2022, while 30 more have been signed off for 2023 and beyond.

https://tophotel.news/country-overview-thai-hotel-market-to-grow-by-over-31000-rooms-infographic/

03 - Food delivery overtakes ride hailing as Grab's biggest business

As coronavirus measures put the region of 650 million people under lockdown, Grab saw demand eroding for its transport business, but then nearly 150,000 of its drivers switched to becoming delivery men for homebound customers.

https://www.straitstimes.com/business/companies-markets/food-delivery-overtakes-ride-hailing-as-grabs-biggest-business

04 - Vegan bakeries are on the rise in Tokyo

As the number of vegans and people adopting more heavily plant-based diets is undoubtedly on the rise. According to a report by GlobalData, the number of U.S. consumers that identify as vegan grew by 600 percent between 2014 and 2017. While concrete numbers for the Japanese market are not available, a limited study [...] suggests the number of vegans doubled from 1 percent in 2017 to 2.1 percent in 2019.

https://www.japantimes.co.jp/life/2020/07/25/food/vegan-bakeries-tokyo/#.Xzz0NJMzZ24

05 - Singapore Property Tycoon to Open 1,000 Cloud Kitchens Across Asia

Panda Selected dominates in China, Deliveroo plans to expand its ‘Editions’ dark-kitchen concept in Europe, while Zuul Inc. and Kitchen United Inc. are major players in the U.S. Uber Technologies Co.’s former CEO Travis Kalanick has funded City Storage Systems LLC, which runs dark kitchens and last year reached a $5 billion valuation.

https://www.bloomberg.com/news/articles/2020-07-20/property-heir-plans-1-000-cloud-kitchens-to-tap-home-dining-boom

What's new in the Rest of the World?

01 - How Hotel F&B Pivoted in Response to COVID-19, and What the Future Holds

Since nothing inspires innovation as well as necessity, hotels globally have pivoted to embrace new ways of providing service for guests. These include contactless methods of booking and payment, ordering meals ahead of arrival, outdoor dining spaces and others.

https://www.hospitalitynet.org/opinion/4100144.html

02 - Nine F&B companies in UAE, Saudi Arabia restrict marketing to children

The Responsible Food and Beverage Marketing to Children Pledge, was initially adopted in the GCC in 2010, is a voluntary commitment by the signatory companies to conduct responsible food and beverage marketing to children.

https://gulfnews.com/uae/health/nine-fb-companies-in-uae-saudi-arabia-restrict-marketing-to-children-1.1597139293085

03 - Delivery drives foodtech growth in Q2

Venture investors poured $3.7 billion into foodtech startups in Q2, an increase of roughly 28% year-over-year at a time when dealmaking has sharply dropped elsewhere. Foodtech is one of the sectors most profoundly affected by the pandemic, which has revealed the weaknesses in the traditional supply chain and accelerated adoption timelines for new technologies.

https://pitchbook.com/newsletter/delivery-drives-foodtech-growth-in-q2-sJm

04 - 7 fastest-growing food tech startups in France you need to know about in 2020

Of late, the food tech industry in France secured record funding of over €240 million, which makes the country lead the global food tech ecosystem. Having said that, we at Silicon Canals have listed the fast-growing innovative food tech startups to know about right now as sourced from Dealroom.

https://siliconcanals.com/news/fastest-growing-food-tech-startups-in-france/

05 - 7 Digital Trends That Will Reshape the Restaurant Industry

Technology has been uncovering some of the blind spots in the restaurant sector, an industry that had annual sales of nearly $800 billion worldwide until the pandemic hit. As per reports, the industry has already lost $120 billion business due to the crisis. The faster technologies are adopted, the better it is for the quick-service industry. Online and mobile commerce is consolidating worldwide, while personalized marketing is the way to go. Geo-location, real-time business intelligence, digital kiosks, contactless delivery, and labor and inventory management are going to transform the field.

https://www.qsrmagazine.com/outside-insights/7-digital-trends-will-reshape-restaurant-industry

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