Without the lockdown, traditional production methods and innovation could hardly have joined forces so quickly and so strategically so that we could have the food we want. Two Ukrainian girls, heirs to a family of traditional beekeepers from North Macedonia, and a group of Serbian scientists share how they face the challenges of this demanding and strictly regulated market – inside and outside the EU.
Why do they prefer Asian markets? What are effective marketing strategies for #footech niche products? CMYK, Floreo and B-FRESH Technologies share more.
Serbian spin-off fights food waste with harmless spray
Food waste worldwide results in a loss of approximately $1.2 billion per year, with fresh fruits and vegetables accounting for 40% of this amount.
In order to solve this problem, doctors Zorica Brankovic, Goran Brankovic and Jovana Cirkovic from the Multidisciplinary Research Institute of the University of Belgrade developed a spray for packaging products in stores and at home. The team launched their project in 2018, and in 2020 they created their company – Fresh technologies Ltd, so that they can commercialize the innovation. Their project is supported by the Innovation Fund of the Republic of Serbia.
Spray that extends the shelf life of food products
“B-FRESH products come in the form of a biopolymer emulsion which contains active components (essential oils and metal salts) with antimicrobial and antioxidant properties. The emulsion can be sprayed on any existing packaging material, such as paper, cardboard, plastic, wood, etc. and the formed film/coating can prevent fresh food from rotting and spoiling. So the shelf life of fresh food increases by 100%,” Zoritsa told Trending Topics SEE.
B-FRESH had just started contacting potential partners and investors when the COVID 19 crisis hit, causing a pause in their plans. 2021 started well but brought some marketing challenges. As the spray is very different from anything available on the market in their niche, they had to come up with a suitable marketing strategy. What they chose to do was contact their customers directly and distribute free samples to producers, processing companies and sellers.
Unlike his counterparts in North Macedonia, Zoritsa does not believe his company will have problems distributing its products in the EU, as Serbian laws are largely harmonized with those of the bloc. However, she admits that “it would be much easier for us if we were placed in an EU country. We would probably have a lot more funds available.”
The Ukrainian startup brings pharmful food to the masses – from Bulgaria
Ukrainian nationals Iryna Gavrylova and Ksenia Zashigina from CMYK Ingredients describe themselves as evangelists for eco-technology and functional foods. In 2020, they shifted their focus from gourmet food products to pharmaceutical food products, forming R&D partnerships with Bulgarian and international laboratories and universities. 2020 brought them the first systematic contracts and an evolving turnover.
“Our commercial sales started in February 2020, immediately after the team officially moved to Bulgaria due to visas based on Class A investment certificates. Instead of having a successful commercial lunch, we saw 9 /10 of our potential contracts suspended or canceled. We strive to focus entirely on pharmaceutical food – from functional gastronomy to preventive medicine: microbiome-friendly, functional, organic, clean label, free of allergens, GMOs and pesticides. Our “thing” is fermentation,” Irina told Trending Topics SEE.
Asian horizons
Irina sees huge potential in exporting the company’s healthy food expertise to Asia. “Our ambition is to sell in Asia not so much finished products, but unique ingredients and industrial recipes. For example, the Indian organic food market is worth almost $1 billion. The European organic market in 2019 grew by 8% to reach 45 billion euros. Considering the number of consumers, the comparable purchasing power in India is about half that in the EU,” she explained.
A generation of North Macedonian beekeepers goes digital
Floreo is one of the most popular brands of organic honey and bee products in North Macedonia. Aleksander Marinkovski’s grandfather kept bees as a hobby. In 2005, a pharmaceutical company offered the family to sell its honey in its pharmacies and Aleksander’s daughter founded the Zoralek company. The grandchildren took over the business in 2015, creating the Floreo brand and taking the company on the path of digital transformation, creating North Macedonia’s first honey online store.
In a bid to position its brand in international markets, the company has signed a franchise agreement to sell products in Saudi Arabia and is currently negotiating with several other countries, including Qatar, the United Arab Emirates and Kuwait.
A difficult road to the EU regarding compliance regulations
Floreo’s path to European markets, however, is a little more difficult. Their products are certified according to local laws, but the company requires a huge investment to ensure that each hive complies with European standards. “Even if we certify and obtain authorization for our honey to carry the EU organic product logo on the label, it will only be for our honey. If the buyer wants a larger quantity, we will have to purchase it from certified beekeepers. This is a tremendous investment and commitment, and in the end we will have an uncompetitive price and we will not be able to sell our products,” Alexander told Trending Topics SEE. Therefore, the company has focused on offering cosmetics and other honey-based food products developed as a result of its R&D projects.
+++Innovations in North Macedonia shed light on the consequences of the COVID-19 pandemic+++