ITALIAN FOODTECH. HOW IS IT PERCEIVED ABROAD❓

Over the last few weeks, Italian foodtech has hit the global headlines, although not directly and probably in the wrong way. Something that surely the great Oscar Wilde would have loved.

HOT AND COLD

So how did Italian foodtech gain visibility? Thanks to a multimillion round closed by a startup of Belpaese? Not at all; the Italian agrifood-tech is still lagging behind with global investments, despite having great room for improvement. To know more about the Italian investments, please download our report “Agrifood-tech investments in Italy 2022” available here. So what? A new technology developed in Italy that could revolutionize the food system? 

You are freezing cold!

GENOME EDITING: ITALY AS FIRST

The first matter making Italy hit the foodtech headlines is the authorization given by Italian authorities to genome editing, the first case in Europe. The green light has been included in a framework related to combat drought and climate change. The measure has to be considered as a milestone in Italian agricultural history, as it puts an end to so many years of misunderstanding and misinformation, considering that so many people still treat in the same way the genome editing and the GMOs.

Kudos to Italy, in this case.

NO CELL-BASED, WE ARE ITALIANS

Lights, but also shadows for the Italian agrifood-tech, if we look at the Italian Government's initiative introduced at the end of March. What about it? Something that is defined as "The cultivated meat ban", that’s perfectly explained by Paul Kirby on BBC News. 

"Italy's right-wing government backed a bill banning laboratory-produced meat and other synthetic foods, highlighting Italian food heritage and health protection".

A draft law pushed for pure populistic reasons, that raised a lot of doubts. What a pity watching such a revolutionary matter that's staying exclusively in the corridors of politics, with no scientific debate.

DIVIDE AND RULE

Considering that even edible insects in Italy are in the middle of a storm, that initiatives could be easily classified under heading “demagogy” A principle with ancient roots that Philip II of Macedon in the third century BC defined as "Divide et Impera”. As would be predictable, such a measure wreaked havoc in the Italian ecosystem, driving some to paranoia, considering that the promoter of this bizarre law is the Italian farmers association which is so powerful and operates in a somewhat “Machiavellian-style”.

But let’s try to be optimistic, keeping in mind Oscar Wilde’s quote mentioned at the beginning of this article.

EXPATS AND EXPERTS

However, aside from this huge mess, what's the opinion of Italian foodtech abroad? To know it, we interviewed six investors and enablers to understand views from around the world. They are a bunch of very skilled expats and experts, able to picture how Italian food innovation is perceived outside Belpaese. Here are the 4 common questions:

1. What do you think of the Italian delay in food innovation?

2. Have you ever read of the “cultured meat ban”? What’s your opinion?

3. Do you think a strong tradition and food heritage could be limited from a social and political perspective?

1. Would you mind sharing some suggestions for boosting agrifood-tech in Italy?

DISCLAIMER: The opinions expressed are those of the authors. They do not purport to reflect the opinions or views of the companies they represent, nor they have to be interpreted as an acceptance of the ideas expressed by TheFoodCons.

1. What do you think of the Italian delay in food innovation?
   
   1. Italy is an amazing place with a very rich and diverse food culture. Italian cuisine, together with Asian, is the most spread out of the ethnic specialities worldwide. This represents a huge potential in terms of inspiration for food innovation. However, this may also limit the need for disruptive innovation. More generally, what are the data/KPIs showing this gap? How do we measure this delay?
2. Have you ever read of the “cultured meat ban”? What’s your opinion?
   1. In Europe and Italy, we have strong regulatory constraints that are usually in the interests of consumers. However, sometimes they can be too strict and heavy for business and the economy in general. I definitely don’t think that the government’s role is to influence people’s attitudes and ethics unless there is a clear objective to be achieved, such as people’s health. It is very difficult for me to understand the purpose of the cultured meat ban.
3. Do you think a strong tradition and food heritage could be limited from a social and political perspective?
   1. Definitively not, unless tradition and heritage are used for demagogic crusades.
4. Would you mind sharing some suggestions for boosting agrifood-tech in Italy?
   1. We need first of all a cultural change: Italy is a resource, not a boundary:
      1. Less bureaucracy and less “bureaucratic thinking”
      2. Learn from abroad (benchmark), decide from the very beginning, in the business plan, what will be the following steps in terms of new markets to be addressed and take your decisions accordingly
      3. Fundraising: be aware that you are competing not in Italy, but in Europe

1. What do you think of the Italian delay in food innovation?
   
   1. I understand the delay. As a consumer, there is value in upholding traditions in culinary culture, and Italy’s culinary culture is world-famous. I understand the market resistance to innovation. In a world where there are many changes and where changes are taking place so quickly, we place value in traditions, and food is extremely personal and intimate for all of us. There’s a saying - if it’s not broken, there is no need to fix it. Similarly, maybe the saying can be modified to say, if it’s broken, fix it - so it’s for stakeholders within the Italian food industry to identify, if any, issues that need to be addressed, and the Italian way to fix those things.
2. Have you ever read of the “cultured meat ban”? What’s your opinion?
   1. I think cultured meat is one aspect of protein production. In the grand scheme of things, the ban doesn’t impact much. It just means other markets are going to be more advanced and faster at introducing cultured meat into their markets. But cultured meat, within the next 10 years, will still be at best a small part of protein production. I think what the EU decides for the entire region will be important for Italy in deciding whether it resists the growing tide or go with the flow.
3. Do you think a strong tradition and food heritage could be limited from a social and political perspective?
   1. I am a traditionalist, which seems antithetical to my job as a VC. I appreciate the value of traditions and heritage because those qualities define individualistic identities. And I think there is a lot of value in preserving many of them. That’s why people identify themselves as Romans, Milanese, Sicilians, etc.
4. Would you mind sharing some suggestions for boosting agrifood-tech in Italy?
   1. I recently attended a foodtech conference in Bilbao, Spain and there is so much food innovation from that region. The Basque Country is world-famous for gastronomy and it also has strong culinary traditions. Using that as an example, given the right conditions, traditions and innovation can co-exist and thrive. . I think there is value in investing in such global events, making them world-class, and attracting key stakeholders in the ecosystem to participate. Stakeholders include - startups, government agencies (regional and federal support are equally important), universities, research institutes, large food companies, agricultural companies, etc. I think international collaboration is great - pick at least one or a few countries with very strong innovation in agrifood-tech and showcase the countries (their startups, show what they do in their countries to stimulate the sector). Creating a sense of FOMO (Fear Of Missing Out)? I think some countries, like Singapore - are more sensitive to FOMO - I’m not sure if Italy has this kind of culture. Competition - this is also related to FOMO - again, in a country like Singapore - we always want to be the first and the best in many things. So we always try to learn what other markets are doing - and try to stay ahead, learning from the best, seeing what we can do better.  

1. What do you think of the Italian delay in food innovation?
   
   1. There are a few reasons why Italy is partially keeping the pace of innovation in the Food and Ag Tech space. On one side, Italian cuisine is renowned for its focus on quality ingredients, regional specialties, healthy diet, well rooted traditions with sustainable practices. Italy has a rich tradition of small-scale, family-owned agricultural practices, which can sometimes make it challenging for innovative technologies to gain traction. All the above can be a real hurdle in terms of consumers’ acceptance and adoption as well. On the other, there is the financial obstacle. Limited funding options and lack of venture capital can also slow down the progress and expansion of startups in the field. Not an ideal scenario for a country that could hide its richness in the right balance between gastronomical tradition and innovation becoming a beacon of inspiration and differentiation more than ever, finding ways to integrate technology while preserving the essence of Italian tradition.
2. Have you ever read of the “cultured meat ban”? What’s your opinion?
   1. This is a very shortsighted point of view dictated, in my opinion, by lack of knowledge on one side and misconception that this sector could phagocytize the local meat industry, one of the pillars of the Italian GDP. What I read so far is totally absurd: accusations of over pollution and danger for human health are the main arguments but while those vs health can be discussed and demonstrated in the mid-run (that’s why EFSA is there), hiding behind pollution and non-sustainability sounds like a joke. It is normal that politicians run a deep analysis on such a delicate topic, what I don’t find normal is banning something even before understanding this theme which is pretty complex and would deserve a deep study instead. European level EFSA is working on regulations and safety assessments before a single product is marketed in Europe. This would make the ban a local issue only, damaging Italy from various point of views (image, occupation, consumption, innovation) leaving other countries thrive on innovation.
3. Do you think a strong tradition and food heritage could be limited from a social and political perspective?
   1. Absolutely. Italy has deep roots when we talk about food heritage. Think how long it took to Howard Schultz to properly launch Starbucks in Italy. And when he finally made it, it was with the full American concept in its brand new luxury version, implemented with local food elements. He adapted for easier acceptance. In my opinion, politicians should leave the door open to innovation, because it could be a real boost for the great minds that too often leave the country, for investments and for the opening of new industries. Last but not least, leaving the choice to people when it comes to what they want to eat and how. As said earlier, the play for Italy could be leveraging technology to boost productivity embracing tradition and taking it to the next level. Merging the best of the two worlds could be the ideal ecosystem for living tradition under a new light. A play that few countries could afford in terms of variety of regional traditions, products and culinary heritage. Let’s not forget that Italy, despite its fame, is a small country. This means that the impact of innovation in terms of consumers’ shift from one world to the other would be a very small reality where offer would beat demand for sure. Still, an opportunity that Italy should not miss. Not because of consumers but because this would drag an important backstage of professional and economic opportunities that Italy can’t afford to miss.
4. Would you mind sharing some suggestions for boosting agrifood-tech in Italy?
   1. My suggestion is the one I can never repeat enough: information. We need to spread information and increase the level of thematic culture. Just imagine that every time I find myself in Italy or I speak to an Italian person, even CEO’s of important companies, when I try to explain what’s my job is they look at me with a surprised expression as they got no clue of what I’m talking about. The usual feedback after my explanation is: “ah yes, that thing of eating crickets…” I would suggest that these organisations and companies working on Ag/Food-Tech attend summits and conventions to open their minds, involve people, and spread the word to future potential consumers by helping them to know, understand, and taste. Explaining to youngsters in schools this is not a science fiction play, it is reality and it involves human’s health and the future of the planet.

1. What do you think of the Italian delay in food innovation?
   
   1. I don’t think there is a delay in food innovation in Italy, I rather believe the country’s food culture is so entrenched in the social tissue that people often meet for a coffee at the “bar” or discuss what they had for dinner the night before. Italian cuisine is appreciated and celebrated worldwide and it represents a great source of pride for the average Italian. Innovation is often a result of cause and effect: where there are inefficiencies a solution must be found. We must consider that access to good quality and low-cost food in Italy is very easily obtainable as local restaurants on average offer dishes rich in vegetables, grains, and legumes for very cheap. Food quality and healthy foods are not a luxury in Italy, they are quite normal, so why change that? To reinforce that I believe, on the contrary, Italy is quite open to food innovation. Italy versus other countries that have a strong attachment to their food culture displays many alternatives to protein meat and milk/cheese substitutes in retail food stores, things you’d never see in Lebanon for instance. What is food innovation then and what do we mean by that? If we think about innovation as pineapple on pizza it should always be prohibited. I believe food innovation in Italy is more necessary early on in the supply chain and at a later time: agricultural practices and ways of feeding livestock as well as waste and upcycling for instance are where real change needs to happen. Bio-stimulants, robotics, grazing trackers, and upcycling of husks are all ways to enable reversing climate change effects like droughts or extreme weather conditions like we’ve witnessed in Emilia Romagna recently, as well as reducing as much as possible waste and water consumption.
2. Have you ever read of the “cultured meat ban”? What’s your opinion?
   1. The recent ban on cultured meat is a double-edged sword. On the one hand, the country’s Agriculture and Food Sovereignty Minister suggested the so-called “synthetic” foods were a threat to small food producers, the environment, Italian food culture, and even human health. Lab food is not necessarily a synonym for quality or environmentally friendly, and there is no precise indication to date that lab-produced foods are safer and healthier, and more environmentally friendly than traditionally produced meats and fish. Such a solution may also be unnecessary altogether if fewer portions of meat were consumed and if production changed. Its application would be more suitable for mass consumption markets like the United States which already survives on highly processed foods. Yet in terms of pure scientific enhancements in stem biology, the ban could be detrimental to Italy’s scientific and commercial competitiveness. If the EU decides to approve the safety of cultured meat then it will be legally sellable in Italy too, essentially cutting out the opportunity and market share for Italian meat producers and distributors as well as setting back scientists from catching up with foreign innovation. Moreover, progressions in stem biology could also be applied to the medical field for the reproduction of organs.   The problems are several and are linked to food lobbies that are very strong in Italy, as well as the nomenclature of “synthetic foods” and “Frankenstein food”, which although it may seem banal, sets back legislators and the public to endorse cultured meat in Italy. Perhaps Italy is just not ready yet to accept cultured meat as a possible solution, maybe in a decade from now it will, and it might pay the price of its current stance.
3. Do you think a strong tradition and food heritage could be limited from a social and political perspective?
   1. A limit? No. Rather it should be exploited as a base for innovation. It is surely a huge barrier to entry for mass food and international brands, as it happened with Starbucks or Domino’s Pizza. If Starbucks were to monopolise the coffee retail industry in Italy it would cut out millions of bars and local owners. From a political standpoint, it would be very difficult for any government in power to go against meat and milk lobbyists as it would mean endangering the political party’s power and sovereignty. Food heritage is just an excuse in my opinion but it is still essential to respect farming and societal practices by supporting and incentivizing these customs, as well as protecting them from being endangered. And opposing politicians have this priority well set in mind.
4. Would you mind sharing some suggestions for boosting agrifood-tech in Italy?
   1. Although Italian funding in food tech is still under the median of European levels €324,755 compared to the €1,505,000 of the rest of Europe ( ForwardFooding, 2023), there are already a number of actors making steps to spur food innovation in Italy. CDP ventures for instance opened a food tech lab in Verona committed to endorse Italian food innovation. I believe food innovation in Italy must be fostered alongside traditional food producers in order to support tradition and push novelty. We must not forget that Italy has a long tradition of entrepreneurship so this mindset deeply radiated into Italian culture is a good place for incubating innovation. In food tech I believe it is fundamental in a country like Italy to be advertising alternative sources of protein and milk as vegan alternatives rather than “Just like milk or chicken” references in order to avoid confusion and target the right group of consumers. This clarity might help to better accept alternative products for daily consumption. When it comes to agriculture it is important to incentivise the change through financial grants, and protection of farmers willing to shift to more regenerative practices.

1. What do you think of the Italian delay in food innovation?
   1. First, let's not be too negative: It’s true that FoodTech is late to kick off in Italy. But, FoodTech is only a part of food innovation. Indeed, there are many large food companies in Italy that are considered as quite innovative in their processes and products. Then, there is a problem around FoodTech. For me the foundation of a solid ecosystem have never be created in Italy: 
      1. There is still no support ecosystem, both from public players (it can be a region or the state itself) and from large companies.
      2. There is still little access to capital for early stage companies
      3. This can be changed quite quickly. Look at what happened in Spain: a few years ago, the situation was comparable to Italy. Now, it has two growing hubs in Madrid and Barcelona. Both are supported by local governments, they have attracted funding, and large companies are taking part in this evolution.
2. Have you ever read of the “cultured meat ban”? What’s your opinion?
   1. Yes, that’s quite a shame. This technology is still quite far away in Europe as the European food safety agency has not yet given any timeline on if or when it could authorize companies to commercialize these products on the continent. So, it seems that the government has tried to kill something that wasn’t even existing. But what it succeeded to do is to give a « backwards » image of Italy. That’s very detrimental for innovation and FoodTech in Italy (and it may spread beyond to other biotech ecosystems).
3. Do you think a strong tradition and food heritage could be limited from a social and political perspective?
   1. I think it can indeed be an obstacle as it is one in France. The idea that « we know how to do food » doesn’t help. And some politicians transform FoodTech innovations into attacks against these traditions. Also, let’s say that all entrepreneurs have not been super clever in their way of presenting their innovations. Many have directly attacked the way farmers and large companies work, forgetting that millions buy and love their products. More broadly, I think that in countries with a strong food heritage, we lack a debate around the impact of our food system on nature. Then, we also should be talking more about how we see the place of our food industry in the future. By refusing long-term innovation, we may just be reducing the potential of the food industries that make us proud.
4. Would you mind sharing some suggestions for boosting agrifood-tech in Italy?
   1. As said above, I think Italy’s FoodTech just needs a spark. Currently, the best thing that could happen would be for a large food company to seriously create a food accelerator dedicated to a specific theme and develop it on the long term.

Last but not least we heard from Laura Hodgkiss, Head of Communications by HackCapital.

“Earlier this year, the Italian government made its opinion clear on food innovation by announcing a proposed ban on lab grown meat and on ‘meaty’ labels on plant-based products. Meanwhile other countries are opening their doors to alternative protein innovation: China's 5-Year Agricultural Plan includes a focus on cultivated meat and future food technologies, the Netherlands' national protein strategy includes incentives for alternative proteins and Denmark is investing $100M towards a plant-based future. Italy is one of the world’s most loved cuisines and has a golden opportunity to become a frontrunner in adopting new food technologies that are better for people and planet, by building on its culinary heritage. But instead it is (currently) hindering innovation and adoption that could transform our food systems. One way we’re fostering agrifoodtech in Italy here at FoodHack is by hosting local Meetups in Milan and Bologna. Hosted by local Ambassadors, they’re a chance for stakeholders across the industry to come together, share ideas, debate current topics and understand different points of view”.

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