LUSEM Consulting: AeroFarms Future of Farming Strategy
LUSEM Consulting presents a comprehensive strategy for AeroFarms, focusing on key trends in agriculture, business models, and success factors. The team addresses challenges in the industry, highlighting the importance of vertical farming, scale, resource efficiency, and product diversity. The main issue tackled is how AeroFarm can raise awareness, enhance product variety, and drive industry-wide change through technology licensing.
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LUSEM Consulting AeroFarms The Future of Farming? LUSEM Consulting Team Akos Nagy, Gustaf Nordin, Johanna Sjobloem, Anna-Maria Ostermann Presenting to: Management Team
LUSEM Consulting Agenda Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting A good farmer farms for his children we farm for the world Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting Key Trends in the agricultural sector Urbanization Scarcity & Environment Consumer behavior Farming 4.0 A disrupted Industry Data & Analytics Trade Wars Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting AeroFarms Business Model for the Future Data Quality Scale Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting The key concepts your success is built on Vertical Farming Scale Resource efficiency Trust & Acceptance Products Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting Where are we today? High Impact Low Acceptance High Acceptance Traditional Farming Aero Farm Low Impact Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting Where we will be! High Impact Aero Farm Low Acceptance High Acceptance Traditional Farming Low Impact Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting Main Issue How can Aerofarm create awareness, ensure product variety and enable industry wide change? Recommendation Licensing the Aerofarm technology allows for faster scalability in a less capital intense manner and provides a global standard of infrastructure. Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting AeroFarms current sales channels Retailers ShopRite Whole Foods Seabra Foods Fresh Direct Restaurant - - - - AeroFarms Singapore Airlines Schools Corporate Dining Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting How does AeroFarms reach it s customers? End AeroFarm Intermediary Consumer Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting The AeroFarm Urban Customer What does the customer want? - Taste - Quality - Freshness - Local produce What does the customer care about? - Health - Safety - Price - Sustainability Who does the customer trust? - Government? - Media? - Institutions? - Researchers? - Chef Cooks? Where does the customer live? - Urban Cities Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting What happens if there is no understanding! Tangibles - White suits - Rubber gloves - Old factories Personality - Alien - Researchers Sustainably grown, tasty greens that are always fresh Relation - Weak - Long distance Culture - Lab rats Refection - Unhealthy - Unaware Self-Image - Artificial - Unhealthy - Non-Tasty Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting Awareness leads to understanding and acceptance! Tangibles - White suits - Rubber gloves - Old factories Personality - Alien - Researchers Sustainably grown, tasty greens that are always fresh Relation - Weak - Long distance Culture - Lab rats Refection - Unhealthy - Unaware Self-Image - Artificial - Unhealthy - Non-Tasty Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting Alternative Solutions DIY Develop small portable version that allows consumers to own their own miniature Aerofarm at home By licensing out Aerofarm data technology new farmers will be empowered to start their own vertical farm, while Aerofarms data knowledge is increased Licensing Spending more on R&D to create a wider product assortment allowing Aerofarms to be a sole provider for vegans covering all necessary nutriants Vegan Heaven Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting The right strategy to choose! Vegan Heaven DIY Licensing Enablers 1 Awareness & Acceptance 2 Product variety 3 Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting Implications of AeroFarm Licensing Scalable, less resource intensive business model Market leader in sustainable production of greens Increased Awareness and demand Shared Value Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting Main Issue How can Aerofarm create awareness, ensure product variety and enable industry wide change? Recommendation Licensing the Aerofarm technology allows for faster scalability in a less capital intense manner and provides a global standard of infrastructure. Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting The three building blocks to success! 1. Enable Growth 2. Create Awareness 3. Ensure Variety Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting Step 1: Ensure Growth 1. Enable Growth 2. Create Awareness 3. Ensure Variety $ ? - - - Asset light Fast growth Shared Value - Vertical Farming Traditional Farming Universities Governments - License data insights Supply technology Expert support - Opex: USD 210k / license Capex: USD 4 mn - Until 2022 - - - - - - 100 new licenses 18 new farms 3 new university partnerships Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting Step 2: Create Awareness 1. Enable Growth 2. Create Awareness 3. Ensure Variety $ ? - Demand for product & tech Supply of talent & innovation - Communication, technical and legal teams New channels - - - Hackathon Conventions Media presence Governmental lobby - Capex: USD 6 mn - Until 2022 - - - 400 new employees and own educational platform 5 times growth in yearly revenues Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting Step 3: Ensure variety 1. Enable Growth 2. Create Awareness 3. Ensure Variety $ ? - - Nutrients Loyalty - Internal and external parties - R&D partnerships Data insights from customers - Capex: USD 2 mn - Until 2021 and onwards - New technologies And new crops Complete set of nutrients Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting Timeline Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting Your (financial) world Traditional model License model Asset light Asset heavy High scalability Low scalability Cash flow positive Cash flow negative Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting Your (financial) world 7mUSD Revenue per facility (Year) 7mUSD Revenue per licencee (Year) 10% Revenue share -% Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting Your (financial) outcomes Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting Your (financial) impact Leafy greens provided to the market (thousand pounds) 250,000 200,000 150,000 100,000 50,000 0 2019 2020 2021 2022 2023 Direcly provided Indirectly provided Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting Your (financial) world Traditional model License model Asset light Asset heavy High scalability Low scalability Cash flow positive Cash flow negative Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting Risks and Mitigation Risks Likelihood Impact Mitigation 1 No acceptance in the market Medium High Marketing Retail contacts Education Scalability 2 Security breach & stolen intellectual property Medium/low High Co-creation Talent pipeline Innovation 3 LED lighting technology not developing as expected Low Medium Rich data insights Continuous improvement Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting A good farmer farms for his children we farm for the world Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
LUSEM Consulting Executive Summary How can Aerofarm create awareness, ensure product variety and enable industry wide change? Key Challenge Key Issues Scalability Resource efficiency Trust and awareness Key Success Factors Product Variety Enablers Awareness KPIs 11x increase in profit 10% ROI Cash Flow positive Licensing the Aerofarm technology allows for faster scalability in a less capital intense manner and provides a global standard of infrastructure. Recommendation Situation Analysis Alternatives Recommendation Implementation Financials Risk Conclusion
