Industry Snapshot: FoodTech
Second Course – M&A Takeaways

Hamburg, December 2022

•

Growing focus on new nutrition
patterns as the importance of foodfor health is increasingly understood.

•

Alternative protein startups attract
more and more investors in Europe.

•

The food industry is one of thebiggest contributors to food waste. Itis estimated that in Europe between
280 billion euros and 470 billion
euros can be saved annual throughadoption of more sustainable value
chain processes.

•

Digitalization is still a main dish.
Nowadays, it is possible to orderfood in restaurants through a
computer or smartphone.

•

More and more people prefervegetarian food for health reasons,but also due to a growing awarenessof the sustainability.

•

Worldwide smart kitchen appliancesindustry estimated at 13.18 billion
USD and expected to grow with a
CAGR of 18.6% until 2028.

•

Next to this, about 1 percent of the
population suffers from celiac
disease providing the opportunity for
new gluten free or vegan products.

•

Customization of products another
trend in which customers demand
the product to be manufactured totheir exact personal requirements.

•

Customizing also requires thedelivery of products and services
within much shorter periods.

•

New forms of food production
such as vertical farming, urban
gardening, aquafarming or the
production of artificial meat can be a
promising building block in securing
future food supply of an increasing
world population.

Next trends
in FoodTech- Key
takeaways
Facing uncertainty about thenear future, consumer priorities
in making consumption
decisions have changed.

FoodTech is still on the menue of German investors

FoodTech is still on the menue of German investors
2020 until 2022 will go down in history as a time period full of crises. Despite the pandemic and the war in Ukraine, many food startups have managed
to convince with their ideas and win investors. But to which startups did the money go to? And who decided to sell or exit the business even during apandemic and war times? We will give again an overview of selected transactions and some of the funding rounds that took place in the last months.

Germany’s FoodTech entrepreneurs convince investors the most
FoodTech is still a good investment: The enterprise value by valuation of
FoodTech companies increased from 1.2 tn. USD 2021 to 1.5 tn. USD in 2022.

Growing demand: Increasing awareness among the population is driving thedemand for healthier food. Technology being one of the major drivers for innovation,is on the rise.

More and more people in Germany are eating a vegetarian diet
Vegetarians
The number of vegetarians and vegans in Germany isincreasing. According to a survey, lead by the IfD Allensbach,
7.9 million people classify themselves as vegetarians in 2022(+1.6 million more than in 2018 or +25%).

VegansGermany - hungry for FoodTech: In the first nine months of 2022, 344 mEUR

The increase in absolute of vegans is lower than thoseof vegetarians. 1.6 millions avoided to eat any animal
products in 2022 (representing +600,000 compared to2018 or +65%)
Source: IfD Allensbach

were invested in German FoodTech companies. This shows that Germany is a good
address in terms of money invested in startups of the FoodTech industry.

Delivery leads the German FoodTech ecosystem

3,92 Mio.

Source: DigitalFoodLab•

Germany is home of more than 225 FoodTech
startups.

•

Berlin is not only the capital city of Germany but
also of the German FoodTech ecosystem.

•

More than 90% of the investments are made in
Berlin-based startups.

•

In terms of funding, delivery is leading Germany’s
FoodTech by a wide margin in 2021. In 2022
delivery is still leading Germany's FoodTech but
no longer with a wide margin.

A good barometer of the ecosystem
Median round sizes
across all stages havenot decreased and inEurope, median roundsizes are on par withdeals in the USA.
Europe: Blue
USA: Red
Source: Dealroom

Industry Snapshot: FoodTech

3Funding in German FoodTech

German FoodTech order several rounds of funding (1/2)
Selected financing rounds of German FoodTech startups
Date

Financinground

FinancingvolumeStart-up

Headquarter

Description

Investors

Category

Jul-22

Series A

5 mEUR

Bringoo GmbH Hamburg

Grocery delivery from supermarkets tohome within 45 minutes.

20 Scoops

DeliveryApr-22

Series B

102 mEUR

BerlinChoco
Communications GmbH

The app offers a messenger service torestaurateurs, supermarkets and canteens
to communicate with their suppliers, orderfood and request invoices.

G Squared, Insight Partners

DeliveryDec-21

Series B

750 mUSD

Flink Food

BerlinFlink Food, which means "quick" in German,
claims to deliver groceries from its own
network of fulfilment centers in less than 10
minutes.

DoorDash, Mubadala Capital
Ventures

DeliveryOct-21

Series C

1000 mUSD

GorillasTechnologies

BerlinDelivery of everyday products to customers'
doorsteps within ten minutes.

Lead investor Delivery Hero

DeliveryJun-22

Series A

11 mUSDcrop.zone
GmbH

Aachencrop.zone GmbH provides farmers withchemistry-free tools for weed control andharvest preparation.

Nufarm Australia Limited,
MADAUS Capital Partners GmbH,
Demeter Partners

AgTechDec-21

Series A

20 mUSD

Stenon GmbH Potsdam

Stenon GmbH designs and manufactures
sensor technology equipment withsupporting software, which offers real-timesoil analysis solutions for the agricultureindustry.

Atlantic Labs Manager, Cherry
Ventures Management, Founders
Fund, The Production Board

AgTechDec-21

Series D

200 mUSD

InFarm Berlin
Indoor Urban
Farming GmbH

On-demand farming services provider that
manufactures devices that grow fresh
vegetables and herbs in supermarket andrestaurants.

Qatar Investment Authority,
Partners in Equity, Lightrock,Hanaco Venture Capital, Bonnier
Ventures, Atomico, AENUAgTech

Oct-21Angel< 1 mUSD

DeclaremeGmbH

Declareme GmbH designs and develops
HealthMe App, a digital shopping assistantthat recommends alternative food products
for people with allergies and intolerances.

Carsten Maschmeyer and Nils
GlagauConsumer
Tech

Source: crunchbase.com, GT research

Karlsruhe

Delivery:Startups developing services to order and deliver groceries
and meals• After a strong boom in times of corona, the demand fordelivery services has decreased. Meanwhile, the delivery
industry is also feeling impacts of the end of corona
restrictions, high inflation and the war in Ukraine.
• Accordingly, investors were significantly more cautious
than in the previous year. Hence investment volumes in
FoodTech companies are decreasing.
AgTech:Startups developing technology solutions to improve faming
output and quality• Urban farming startups have been reinforced by thegrowing desire for more sustainable and local foods.
• Infarm’s latest funding of 200 mUSD will be used todeepen the regional and local penetration of its global
farming network and complete development of its new
generation of vertical cloud-connected farms.
Consumer Tech:
Startups developing services to help the consumer cook andidentify the best foods for him• Investments are driven by a renewed focus on helping
consumers adopt healthier food habits.
Industry Snapshot: FoodTech

4Funding in German FoodTech

German FoodTech order several rounds of funding (2/2)
Selected financing rounds of German FoodTech startups
Date
Oct-22

Sep-22

Sep-22Financing
round
Angel

Seed

Unknown

Financingvolume100 kEUR

5 mEUR

3 mEUR

Start-up

Headquarter

Description

Investors

Category

TASTE LIKE The Süderlügum,Schleswig-Holsteintaste I likeGmbH

Taste Like produces animal-free meat, egg,
and dairy products.

Dagmar Wöhrl

Neggst Foods
GmbH

BerlinNaggst develops plant-based whole egg
alternative that consists of a white, yolk, anda biodegradable shell.

Green Generation Fund, BayWa,
Corecam Capital Partners

Food
Science

BlueFarm

BerlinBlue Farm offers vegan dairy alternatives for
maximum freshness and minimal waste.

Zintinus, HGDF, Übermorgen
Ventures

Food
Science

Food
ScienceMar-22

Series B

50mEUR

KoRo Handels Berlin
GmbH

KoRo primarily sells vegetarian and veganlong-life, natural and processed foods
through its own online shops and throughlistings with retail partners.

Partech, HV Capital, Five Seasons
Ventures

Food
Science

Sep-21

FinancingRound

40 mEUR

air up GmbH

MunichManufacturer of drinking bottle. Their bottle
system is equipped with ring-shaped scented
pod which gives water a scent flavor.

Five Seasons Ventures, PepsiCo

Food
Science

Sep-21

Series A

50 mUSD

Legen Dairy
Foods GmbH

BerlinArtificially cultivating the milk protein casein
and whey proteins as a basis for dairy
products.

Agronomics Limited, Elevat3
Capital, EQT Ventures, Good Seed
Ventures, Grazia Equity,
Happiness Capital, Lionheart
Ventures, Lowercarbon
Capital, Merck Ventures

Food
ScienceMar-22Seed

2,5 mEURGoodBytz
GmbH

Hamburg

GoodBytz GmbH develops robotic kitchen
assistants enable for chefs to amplify andreproduce their capabilities.

Oyster Bay Venture Capital

Food
ServiceApr-22Seed

1,7 mEUR

Freshflow
GmbHBerlinFreshflow GmbH develops and offers an
artificial intelligence-based platform forfood supply chain management.

Capnamic Ventures
Management, WF World FundManagement

SupplyChain

Food Science:Startups developing new ingredient and food products• COVID-19 has boosted the already growing demand for
fresh, healthy, additive-free food with traceable origins as
people are becoming more health-conscious.
• One can expect more funding in the field of Food Science
compared to Food Delivery companies like Flink or Gorillas
due to the huge investment in the infrastructure.
Food Service:
Startups with focus on services for restaurants trying todigitize this sector• Biggest investments are made in startups that offer
foodservice robotics and foodservice management.
• Choco raised 58 mEUR to grow its wholesale digitalplatform for digitizing the relationship between restaurants
and their supplier.
Supply Chain:
Startups developing solutions for the food supply chain andfood retail industry• Rising investments in startups that are focusing on foodwaste management by using data to avoid food waste.
• FreshFlow raised 1,7 mEUR to grow its AI- based platform
for optimizing supermarket orders to increase
efficiency and to avoid food waste.

Source: crunchbase.com, GT research

Industry Snapshot: FoodTech

5

M&A activities in German FoodTech

M&A activities in FoodTech are on the rise
Selected transactions of German FoodTech startups

Source: S&P Capital IQ, GT research• We analyzed 12 transaction that occurred between
October 2022 and August 2021, involving German
FoodTech companies.
• The majority of these transactions involved companies in
the food science space, but the largest one was theacquisition of app smart GmbH from OrderYOYO A/S witha transaction value of 222 mEUR. The OrderYOYO andapp smart combination creates a leading European
restaurant liberator servicing more than 9,000 Restaurant
Partners. The merger is the first step towards the
combined company’s overall goal of liberating more than
25,000 Restaurant Partners by end of 2025.
• In line with the decreasing demand for food delivery, there
was just one significant transaction in this space.
• Another big deal is the acquisition of Just Spices GmbH by
The Kraft Heinz Company for 214 mEUR. Launched in2014, Just Spices generated around 60 mEUR of sales in
2021 with its 170-plus product portfolio of spice blends,
salad dressings, easy-to-prepare “In Minutes” blends, andorganic offerings. The Kraft Heinz Company is said tohave been attracted by Just Spices’ many Tik-TokFollowers and sees the opportunity to identify new trends
among younger consumers at an early stage.
• One more transaction that attracted attention is Nestle’s
acquisition of a majority stake in spices maker Ankerkraut.
The move will help Ankerkraut build on its ten-year journeyby leveraging Nestlé's expertise and sales network
whereas Nestlé will benefit from Ankerkraut’s agility,
entrepreneurial spirit and omnichannel presence.
Industry Snapshot: FoodTech

6Grant Thornton - Deal Advisory

Grant Thornton – Deal Advisory

Our international network with global M&A capacity
Our established captive and affiliate network as set out below, gives us the ability to open doors, initiate conversations and introduce international
opportunities.

Grant Thornton
M&A Network Partners

Development Bank of Japan (‘DBJ’) is
owned by the Japanese Government
and provides integrated investment andloan services to domestic andinternational clients. DBJ has over $15
billion of capital and $154 billion in total
assets. We have worked with DBJ on anumber of successful transactions.

Adviso Partners is a French based
corporate finance advisory firm, thatprovides advice to shareholders, private
equity firms, listed groups andinvestment funds. Adviso Partners has a
mid market focus on €10-200m deals.

Fifth Third excels in both M&A strategy
and execution, and has uniquely aligned
its services to the needs of middle
market and mid-cap companies.

Sumeet Abrol – India
Partner, M&A

Devin Wagner – Canada
Partner, Corporate FinanceMichael Neary – Ireland
Partner, Corporate Finance

Gilles Coudon– France
Partner, Adviso Partners

Jesper Vestergaard – Denmark
Partner, M&A

Hanno Hepke – Germany
Partner, M&A

William Tyson – USA
Co-head, Fifth Third
Capital Markets

Mats Öberg – Sweden
Partner, M&A

Andrew Morgan – UK
Managing Partner, M&A

Vincenzo Braiotta –Switzerland
Partner - Advisory

Toshiki Iino – Japan
Director, DBJ

Fernando Beltran – Spain
Partner, Corporate FinanceSante Majolica – Italy
Partner, M&A

Paul Gooley– Australia
Partner, M&A

Shlomi Bartov – Israel
Partner, M&A

Wu Jianyong– China
Partner, M&A

Industry Snapshot: FoodTech

8Grant Thornton – Deal Advisory

We support you until the transaction is brought to a successful end
Markets and competitive conditions are evolving rapidly. Established business models are suddenly outdated. In this context, transactions play animportant role in the continued development of companies. We are up to date with the new developments and are here to support you achieve yourtransactional goals.

Sell-side M&A

Buy-side M&A• To bring your transaction to a successful end, we support you with acomprehensive range of advisory services. We understand the value drivers andsector in which you operate.
• We support you in identifying your key business and strategy drivers and build aconsistent and value driving equity story.
• We take care of the entire coordination of the transaction process: beginning withbuilding the equity story and the indicative valuation, to developing the go-tomarket documents, the identification and approach of potential investors, up to thenegotiations and successful closing.

• To support you in reaching your growth ambitions, we identify potential strategic
and financial investors based on pre-defined specific criteria.
• Together, we develop a search profile for your target company, followed by athorough profiling of selected companies and the approach of suitable candidates
directly by our team or via our international contact network.
• A tight and result-oriented project management as well as a coordinated andcustomized approach guarantee the success of your project.

Finance raisingTransaction support• Optimized financing structures are decisive for the success of a company.
• We have extensive experience with the preparation of business plans andcompany valuations as well as with the preparation and coordination of thestrategy and go-to-market documents. Moreover, we have both strong local andinternational knowledge and relationships with strategic and financial investors.
This makes us the best partner to support you in your journey to find the best
possible financing for your growth.

• We offer integrated due diligence services and transaction related advice. With
our financial, tax, legal, commercial and IT experts, we are able to provide thebasis for your decision from a single source.
• We build up on the findings from the tax due diligence and advise you on tax
structuring matters of the acquisition.
• Additionally, we support you during the sell-side process by creating fact books or
conducting a vendor due diligence. We anticipate information needs of potential
buyers and proactively identify red flags in order to optimize the transaction price.

Industry Snapshot: FoodTech

9Grant Thornton – Deal AdvisoryYour international M&A experts focused on the FoodTech market
Dear Sir or Madam,
Hanno Hepke
Partner/ Head of M&A
T +49 40 43218 6235
M +49 174 174 7079
E hanno.hepke@de.gt.com

We would like to introduce you to Grant Thornton and would be pleased if you would consider our transaction services foryour future investments. Of course, we are available for an introductory talk and welcome the opportunity to accompany you
in your next investment case.
Our approach is pragmatic and business oriented. A comprehensive understanding of the targeted strategy and the needs
you have as a potential entrepreneur or investor, serve as a basis of our approach. This is complemented by:• profound expertise in the FoodTech market,

Sabine Fahrenholtz
Senior Manager
T +49 40 43218 6218
M +49 152 5495 2402
E sabine.fahrenholtz@de.gt.com

Muneet Lal
Assistant Manager
T +49 69 90559 8775
M +49 152 01458 370
E muneet.lal@de.gt.com• fundamental experience in M&A transactions and finance raisings,• a partner-led approach that enables us to meet your expectations,• a special focus that enables us to deliver precise and timely results.
We have gained strong know-how through executing many transactions and supported owner managed businesses in M&A
and finance raising processes over the years. Moreover, we understand the value drivers and sector in which you operateand customize our services to your needs.
We look forward to hearing from you.
Kind regards,
Your M&A team

Industry Snapshot: FoodTech

10Selected References

Selected References – Food Credentials (1/2)

Confection by Design

Watch House Coffee Holdings Ltd

Sayers the Bakers Limited

Giles Foods Limited

Adviser to Confection By Design on
their sale to NIC Enterprises

Adviser to Watch House Coffee
Holdings on their equity fundraise

Advisor to Sayers The Bakers Limitedon their sale to Karen Wood

Adviser to Giles Foods on their sale toCountry Style Foods

Consumer Markets

Food & Beverage

Food & Beverage

Consumer Markets

Carrs Foods Limited

Orienta Partners

Five Seasons Ventures

K.M. Packaging Services Limited

Adviser to Carrs Foods on their sale to
BGF, the UK's most active investmentcompany, providing patient capital forsmall and medium-sized enterprises.

Adviser to Sodexo on their sale of
Tillery Valley Foods to Joubere Food
Group

Advisor to the French investor Five
Seasons Ventures on the Series A
financing round of vly, a Berlin-based
food tech

Adviser to K.M. Packaging Services
Limited on their sale to an Employee
Ownership Trust

Food & Beverage

Food & Beverage

FoodTechSupplier of flexible packaging

Industry Snapshot: FoodTech

11Selected References

Selected References – Food Credentials (2/2)

REWE DORTMUND Großhandel eG

VALENSINA GmbH

Aqua Vital

VR Equitypartner GmbHCompany Valuation, Extensive Tax
Transaction Consultancy Services

Tax Consultancy Services (Declaration,
Consulting regarding special questions),
Audit of annual financial statements

Transaction advisory services related
to the acquisition of GSB Group by
Dalmia Refractory Group

Financial, Legal and Tax Due Diligence
for the provision of mezzanine capitalfor the Wingert Food GmbH

Wholesale

Food & Beverage

Food & Beverage

Food

ArkoStiftung

Goldeck Süßwaren GmbH

Five Seasons Ventures

WholeyDisposal of shares to Waldersee
Treuhand- und Vermögensverwaltungsgesellschaft mbH & Co. KG

Corporate finance advisory services

Transaction advisory services related
to the financing rounds of air up

Corporate finance advisory services

Coffee and confectionery

Food

FoodTech

Food & Beverage

Industry Snapshot: FoodTech

12Berlin

Hamburg

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