Food and Agribusiness Incubation

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• Food and Agribusiness Incubation
• A Catalyst for Regional Economic Development
• Lou Cooperhouse
• Director

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Business Incubation Overview7,000 business
incubators exist worldwide

• Business incubation is a business support process
  that accelerates the successful development of
  start-up and fledgling companies by providing
  entrepreneurs with an array of targeted resources
  and services.
• Services are usually developed or orchestrated by
  incubator management and offered both in the
  business incubator and through its network of
  contacts.
• A business incubators main goal is to produce
  successful firms that will leave the program
  financially viable and freestanding. These
  incubator graduates have the potential to create
  jobs, revitalize neighborhoods, commercialize new
  technologies, and strengthen local and national
  economies.

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Incubator Client Services Vary

• Entrepreneurship Development Networking
• Business Planning, Milestone Tracking, Mentoring
• Marketing, Product, Manufacturing Strategy
• Access to Finance, Accounting, Capital
• Access to Customers
• Access to Academic Resources
• Grant Training Writing Support
• Seed Funding/Cost Sharing
• Navigation through Government Agencies
• Access to RD, Prototyping, Quality Assurance
• Licensing, IP and Corporate Governance
• Regulations and Compliance Support
• Workforce Development Training
• Laboratory Space
• Professional Business Environment
• Office services equipment
• Conference rooms
• Flexible, affordable leases

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Business Incubation A Proven Model for Business
Growth, Economic Development and Community
Revitalization

• Meet a variety of needs
• Increasing employment in economically distressed
  communities
• Diversifying rural communities
• Transferring technology from universities
• Transferring innovations from major corporations
• Serving as investment vehicles
• Contribute substantial ROI to their communities
• Business incubators reduce the risk of small
  business failures. Historically, NBIA member
  incubators have reported that 87 percent of all
  firms that have graduated from their incubators
  are still in business.
• NBIA members have reported that 84 percent of
  incubator graduates stay in their communities
• Research has shown that for every 1 of estimated
  public operating subsidy provided the incubator,
  clients and graduates of NBIA member incubators
  generate approximately 30 in local tax revenue
  alone.

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FoodBIN 2008 The 6th Annual Conference of the
Food Business Incubation Network!

• Rutgers FIC Organized First Conference on Food
  Business Incubation
• 2002 Rutgers Food Innovation Center
• 2003 Northeast Center for Food Entrepreneurship
  at Cornell
• 2004 SUNY Morrisville
• 2005 Oregon State University Food Innovation
  Center
• 2007 Iowa State University
• 2008 Rutgers Food Innovation Center, in
  partnership with
• Community Food Security Coalition
• The FoodBIN conference has become the world's
  leading venue for advancing best practices in
  food business incubation, and identifying
  programs, services, funding sources, and
  partnerships that can maximize impacts to food
  and agribusinesses within regional economies

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• Mission
• To stimulate and support sustainable economic
  growth and prosperity to the food and
  agricultural industries in the New Jersey region
  by providing businesses with innovative research,
  customized practical solutions, resources for
  business incubation and a trusted source for
  information and guidance
• Vision
• To serve as the catalyst that will promote a
  viable and prosperous food processing and
  agriculture base in New Jersey, translating into
  considerable benefits for the region, that will
  become recognized as a global model for regional
  economic development

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Food and Agribusiness Industry Needs

• Need for information on business planning, market
  research, capital access, corporate governance,
  regulatory and permitting requirements, legal
  matters, product and process development,
  marketing and sales strategy
• Need for training and workforce development on
  best practices in quality assurance and food
  safety
• Need for assistance in development of value-added
  differentiated products, in order to compete in
  an increasingly complex retail and foodservice
  environment, which is undergoing significant
  industry consolidation
• Need to reduce startup expense associated with
  new product development, equipment costs, and
  market entry
• Need to safely and legally produce products in an
  FDA and USDA inspected facility

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Over 1,000 Companies Assisted to Date

• Farmers and Cooperatives desiring to create new
  businesses based on value-added agricultural
  products and/or developing new markets for their
  existing commodities
• Startup food companies coping with challenges
  such as financing, technology, regulations,
  market development, and infrastructure
  requirements
• Established food companies seeking to introduce
  new products and processes, access new
  technologies, upgrade quality assurance
  capabilities, enter new markets with branded or
  private-label products, and expand and improve
  their operations
• Retail and Food Service Establishments seeking to
  improve their operations and purchase local NJ
  products

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Food Innovation CenterServices Provided

• Business Development
• Marketing and Sales Support
• Product and Process Development
• Quality Assurance and Food Safety
• Regulations and Compliance
• Workforce Development and Training

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Service Network Utilized

• Rutgers Food Innovation Center Team with a broad
  array of food industry and entrepreneurial
  experiences
• An Internal Network of Resources throughout
  Rutgers University composed of a tremendously
  diverse array of departments and centers
• An External Resource Network composed of federal,
  state, and county agencies, other educational
  institutions, commodity and trade associations,
  service providers, etc.

Vertical and Horizontal Resource Clusters Result
in Enhanced Impacts and Multi-Disciplinary
Approach to Clients
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Food Innovation CenterClient and Resource
Cluster Created For Food Industry Growth
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Statewide, National, International Recognition

• Awarded by NBIA as Incubator of the Year, in
  the services and manufacturing category, among
  incubators globally in 2007
• Awarded the winner of the USDA-CSREES Partnership
  Award for Innovative Program Models in 2007,
  among programs nationally, for achievement as a
  model for community and economic development and
  jobs creation
• Recognized by USDA as an Agricultural Innovation
  Center Demonstration Program, one of only ten
  such centers in US
• Recipient of the Rutgers Presidential Award for
  Research and Service to New Jersey in 2008

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23,000 s.f. Food Business Incubator
FacilityBridgeton, NJGrand Opening October 17,
2008
Enabling Product Design, Development, Analysis,
Commercialization, and Ongoing Manufacture of
Products for Sale to Retail and Foodservice
Markets
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Client Services Area

• Business Mentoring
• Product Development Research Kitchen
• Sensory Analysis Laboratory
• Microbiology and Analytical Laboratories
• Conference and Education Facilities, with Focus
  Group Observation Area
• Office and Administrative Support

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Shared-Use Processing Area

• Fresh-Cut Cold Processing
• Beverages and Hot Processing
• Bakery and Dry Processing
• Cold Assembly/Clean Room
• Blast Chilling and Freezing
• Storage Refrigerated, Frozen, Ambient

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Construction and Operations Funded by Federal,
State Community Partners

• Rutgers NJ Agricultural Experiment Station
• United States Department of Agriculture
• US Economic Development Administration
• State of New Jersey
• NJ Casino Reinvestment Development Authority
• NJ Commission on Science Technology
• NJ Department of Agriculture
• Cumberland Empowerment Zone
• City of Bridgeton

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Potential Incubation Services Corporate
Development

• Business Feasibility Review
• Market Research and Trends Assessment
• Marketing Strategy, Planning, and Positioning
• Market Assessments, Forecasts, and Competitive
  Intelligence
• Corporate Governance Assistance
• Advisory Board Development
• Corporate Organization Assessment
• Joint Venture and Strategic Partner Assessment
• Corporate Social Responsibility Program Design
  Support

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Potential Incubation Services Marketing and
Sales Services

• Qualitative consumer research focus groups,
  one-on one surveys, chef roundtables, etc.
• Quantitative consumer research home-use
  testing, product surveys, etc.
• Sensory Analysis
• Competitive Review
• Recipe/secondary usage development
• Product preparation directions
• Food Service procedure manuals
• Food photography
• Marketing materials label communication, sell
  sheets, etc.

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Potential Incubation Services Innovation and
Technology Development

• Innovation and Ideation
• Provide fresh insights and ideation to existing
  brands and products, ones in planning, and/or
  ones under development
• Discovery
• Functional Foods and Nutraceuticals Development
  targeting Obesity, Diabetes, and other health
  and nutrition targets
• Technology Assessment and Integration
• Creation and management of teams of researchers
  to validate compounds at discovery stage assess
  new packaging technologies evaluate new hurdles
  and barrier technologies resulting in quality
  and/or shelf-life extension etc.

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Potential Incubation Services Product and
Packaging Development

• Concept Generation and Prototype Development,
  including
• Functional Foods and Nutraceuticals
• Products meeting standards for Organic, Kosher,
  Halal, Gluten-Free
• Ingredient Sourcing and Evaluation
• Formula Optimization and Least Cost Product
  Development
• Packaging Selection for Cups, Trays, Pouches,
  Jars, etc.
• FDA and USDA Regulations Counseling
• Nutritional Analysis and Labeling Determination

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Potential Incubation Services Quality Assurance
and Operations

• Shelf Life Testing
• Analytical Standards Development
• Food Safety and Food Security Strategy
• Preparing for Third Party Audit
• Crisis Management Support
• Specification and Controls Support, including
  GAPs, GMPs, SOPs, SSOPs and HACCP
• Rapid Microbiological Methods Testing
• Cost and Quality Optimization
• Distribution and Logistics Systems
• New Process Testing

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Potential Incubation Services Technology
Commercialization

• Product Commercialization Testing
• Hurdle Technology Development and Shelf Life
  Extension
• New Process and Equipment Assessment
• Product and Package Sustainability and New
  Environmental Technologies
• Intellectual Property Assessment
• Technology Transfer

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Potential Incubation Services Manufacturing for
Sale to Retail and Foodservice Markets in
USDA/FDA inspected facility

• Bakery and Dry Processing
• Pies, Breads, Cookies, and Confectionery products
• Seasoning Blends, and Dehydrated Fruits,
  Vegetables, and herbs
• Fresh-Cut and Meats Processing
• Post harvest preparation, cleaning, peeling, size
  reduction, microbial reduction technologies, and
  packaging
• Beverages and Hot Processing
• Beverages, Soups, Sauces, Stews, Salsas, Jams and
  Jelly, Grilled and Roasted Vegetables, and
  Prepared Entrees
• Bottling line and cup/tray filling line will
  allow for automated production

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Potential Incubation Services Workforce
Development and Training

• Workforce Development and Training in New Methods
  in Sanitation, Quality Assurance, Rapid Microbial
  Testing, etc.
• Employee Internships
• Training Site for Quality Assurance, Sanitation
  Methods, New Equipment, etc.
• SQF Training
• GMPs, HACCP, and Food Safety Courses
• Ongoing Seminars in Business
• Ongoing Seminars in Technology
• Workforce Development

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Potential Incubation Services Ongoing New
Business Development

• Innovation
• Product Development from Discovery to
  Commercialization
• Speed-to-Market Product, Process and Package
  Development with Differentiated New Concepts
• Fully-equipped and professionally-staffed
  facility enables least cost option for new
  business development and test markets
• Graduation
• Existing Plant Process Flow Development and
  Commercialization
• New Plant Plant layout and design, and
  Equipment specification
• Copacker Copacker Identification and Audit,
  Scale-Up Assistance
• Ongoing Support
• Market Acceptance Testing and Validation
• Continual Innovation and Differentiation

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Research, Education and Extension Opportunities
Provided for Communities, Companies and
Classrooms

• In addition to the tremendous benefits provided
  to communities and companies, the incubator
  facility can also be an outstanding resource for
  students, who will be provided a unique
  opportunity to gain practical hands-on
  experiential learning through internships,
  cooperative education, class projects, etc. This
  may also lead to potential employment in the food
  industry.
• Student opportunities may exist in areas as
  diverse as business plan development, market
  research, economic analysis, food science,
  nutrition science, quality assurance, food safety
  and security, package engineering, industrial and
  process engineering, package design, law, public
  policy, etc.

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Incubator Operating Revenue SourcesObjective is
to enable financial self-sustainability!

1. Processing Space Equipment Rental, and
   Co-Packing Fees
2. Business Mentoring
3. Storage Rental
4. Office and Conference Room Rental and Associated
   Fees
5. Education Seminars
6. Training Revenue

1. Product, Process and Package Development
2. Consumer Research Focus Groups
3. Sensory Analysis
4. Nutrition Labeling
5. Microbiology Testing
6. Analytical Chemistry and Physical Testing

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Client Screening Processto Maximize Center Impact

• High Impact Initiative
• Number of Participants/beneficiaries
• Job Creation/Retention Potential
• Sales Revenue Potential
• Idea/Project Potential
• Market Demand
• Feasibility of Concept
• Ability to Finance
• Cash Availability of Client
• Access to Grant Funds
• Commitment
• Client Authority, Availability, Ability to
  Deliver
• Convincing, Passionate

• Capability
• Client Commands skill sets
• Experiences
• Resourcefulness
• Other Factors
• Center Revenue Potential
• Low Resource Requirement
• Economically Depressed Area
• Underserved Population
• Collaboration w/strategic partners

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A Taste of the Food Innovation Centers Clients
Products
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Long Term Impacts to Clients Community

• New Businesses Created
• Businesses Sustained in community, region, state
• Direct and Indirect Jobs Created/Retained
• Increased Client Revenue/Profits
• Venture and Private Equity Funding to Clients
• State/Federal Funding brought to Clients

• Domestic and International Companies that move to
  NJ
• Commercial Space taken in Community from
  Graduates
• Increased Community Wealth, and Rural/Urban
  Revitalization
• Educational Outreach to HS and College Students
• International Collaborations w/ Incubators and
  Universities Resulting in Knowledge Transfer and
  Regional Economic Dev.

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Best Practices in Business Incubation (NBIA)

• Obtain consensus on a mission
• Develop strategic plan with quantifiable
  objectives
• Structure for financial sustainability
• Recruit and appropriately compensate management
• Build an effective board of directors
• Develop stakeholder support, including a resource
  network
• Stress service that results in company success
  and wealth creation
• Integrate program into the fabric of the
  community and its broader economic development
  goals
• Conduct ongoing program evaluation

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For Further Information

• Lou Cooperhouse
• Rutgers Food Innovation Center
• 450 East Broad Street
• Bridgeton, NJ 08302
• www.foodinnovation.rutgers.edu
• Cooperhouse_at_njaes.rutgers.edu
• 856-459-1900, ext. 4516