chewable probioticnatural red

frozen culture

Expectations for a KIC in the food innovation landscapeEsben Laulund, SVP Innovation, Chr. Hansen

Today’s key points

About Chr. Hansen

Expectations to a Food KIC

Moving forward

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A global supplier of bioscience based ingredients to the food, health, pharmaceutical and agricultural industries

Founded in 1874 in Copenhagen by Danish pharmacist Christian D.A. Hansen

Listed on NASDAQ OMX Copenhagen

2011/12 turnover EUR 699 million

Organic growth ambitions of 7-9% annually

Approx. 2,450 employees

Chr. Hansen in brief

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Customers in approx. 140 countries

Production facilities on five continents

Subsidiaries and representative offices in 30 countries

Chr. Hansen globally

NorthAmerica

Asia-pacific,Middle-East &Africa

Europe

South AmericaSouth America

Europe

Asia-pacific,Middle-East &Africa

North America

Number of employees1 2011/12 Revenue 2011/12

11%

14%

9%66%

24%

13%

17%

46%

frozen culture

Our businessCompany presentation

Natural Colors Division

Cultures & Enzymes Division

Health & Nutrition Division

We develop and produce cultures, enzymes and probiotics for the dairy industry in particular

… and for the food industry in general – e.g. for wine and meat

Our ingredients determine taste, appearance, nutritional value and health benefits

We are the global market leader in dairy ingredients

Actually… every other cheese in the world contains our enzymes

Cultures & Enzymes Division

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We develop and produce products for dietary supplements, pharmaceuticals, infant formula and animal feed

Our key offering is probiotic cultures with documented effect

For humans

For animals

We believe in strong research and documentation through clinical study program trials

Health & Nutrition Division

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We develop and produce natural colors for the food industry

We focus on natural colors in:

Beverages

Confectionery

Ice cream

Dairy and fruit preparations

Prepared foods

Our colors originate from natural sources like berries, roots and seeds

We are global frontrunners in encapsulation and stabilization techniques

Natural ColorsDivision

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pellet freezing

~7% of turnover is spent on R&D

14% of employees work in R&D

Major basic research facilities in Denmark

Development centers in Denmark, USA, France, Germany and Singapore

19 application centers worldwide

A company built on science

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Customer Driven Innovation:

Strong link between Business objectives and available R&D Competences & Technologies

Expectations to a Food KIC

Knowledge

Innovation

Community

Innovation is about value creation through solving problems.

Innovation = Creative capacity x Implementation capacity

Creative capacity = Systematic approach to solve a defined problem

Implementation capacity = Realization of solution & Commercialization

A Food KIC should stimulate an entrepreneurial environment through program activities

Facilitate establishment of models for financing of new innovations based on high risk projects

Innovation

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Focus on creating world-class research activities within relevant areas

Prepare catalogue over research strong points within involved partners

Input from industry to prepare university relevant research programs

Secure education of highly qualified scientists and personnel

Facilitate interchange of employees between Universities and Industry

Knowledge

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Establish unique research infra structures that will stimulate innovation activities

National, Regional and International structures to facilitate innovation

Integrate relevant existing research infra structures in Food KIC

Create a win-win environment among project partners from Universities and Industry

Fair IPR and royalty programs

Create platforms where Regulatory bodies become included in KIC activities

Current regulations may prevent innovation if not in accordance with latest scientific insights

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Community

To be innovative require the ability to seize the right business opportunities when they occur

This require competences based on both long term as well as short term research activities.

Industry will abandon projects if conditions for business opportunities changes

This calls for a flexible collaboration structure in the KIC projects

Collaboration structure

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Innovation is a prerequisite to survive in todays business environment

Innovation require dedicated and collaborative research structures to materialize

Establishment of the planned Food KIC will facilitate the creation of an unique environment for Innovation for the European food industry

Mowing forward

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