Transcript foodinnovation.rutgers.edu

Rutgers Food Innovation Center
Partners for Growth From Concept To Commercialization
Conference Field Trip - October 5, 2008
Agenda for Today
• Presentation
– Business Incubation Overview
– CFSC – FoodBIN 2008 Conference Overview
– Rutgers Food Innovation Center Overview
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Introductions
Lunch and Networking
Rutgers Food Innovation Center Facility Tour
Regroup and Q&A
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Business Incubation Overview
• 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 incubator’s 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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Business Incubation Overview
• Incubators vary in the way they deliver their services, in their
organizational structure and in the types of clients they serve.
Highly adaptable, incubators have differing goals, including
diversifying rural economies, providing employment for and
increasing wealth of depressed inner cities, and transferring
technology from universities and major corporations.
• The earliest incubation programs focused on a variety of
technology companies or on a combination of light industrial,
technology and service firms – today referred to as mixed-use
incubators. However, in more recent years, new incubators have
emerged targeting industries such as food processing, medical
technologies, space and ceramics technologies, defense, arts and
crafts, and software development. Incubator sponsors have also
targeted programs to support microenterprise creation, the needs
of women and minorities, environmental endeavors and
telecommunications.
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Incubator Client Services Vary
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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 R&D, 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
• 7,000 business incubators exist worldwide (NBIA),
including over 1,400 in North America
– Providing expertise, networks and tools that entrepreneurs need to make
their ventures successful
– Very few incubators focused on food industry
– Rutgers FIC believed to be unique model worldwide
• 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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CFSC – FoodBIN 2008
Conference Overview
FoodBIN 2008 – The 6th Annual Conference of the
Food Business Incubation Network!
• Rutgers FIC Organized First Conference on Food Business Incubation
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2002:
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2008:
Rutgers Food Innovation Center
Northeast Center for Food Entrepreneurship at Cornell
SUNY Morrisville
Oregon State University Food Innovation Center
Iowa State University
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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Food and Agribusiness Incubation –
A Catalyst for Regional Economic Development
Monday, October 6, 11:15am – 12:45pm
• Presenters:
– Lou Cooperhouse, Director, Rutgers Food Innovation Center
– Ron Tanner, VP, National Association for the Specialty Food Trade
• Description:
– This session will identify best practices in food business incubation,
goals and types of services that can be provided, and the unique needs
for incubation programs that focus on the food and agricultural sectors.
Examples of award-winning specialty food products will be identified,
developed by entrepreneurs in communities across America, which
serve to illustrate the keys for success in the food marketplace that
must be met by industry startups.
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Food Business Incubation –
One Size Does Not Fit All
Monday, October 6, 2:15pm – 3:45pm
• Presenters:
– Caleb Zigas, La Cocina Community Kitchen
– Jan Tusick, Mission Mountain Food Enterprise Center
– Larry Fisher, Appalachian Center for Enterprise Networks
– Ken Gossen, Alberta Agriculture and Rural Development
• Description:
– Food business incubation programs may have very different sponsoring
agencies, organizational structures, missions, clients, and types of
services that are offered to entrepreneurs in their communities. In this
panel, you will meet directors from very successful incubator programs
that differ widely in the location of the program itself, the geographies
that are served, the population base that is targeted, the organization
that provides support, types of funding that have been received, types
of fees that are charged, and the overall size and depth of the operation.
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State and Federal Programs for Funding Your
Incubator, Community, and Your Clients
Tuesday, October 7, 11am – 12:30pm
• Presenters:
– Andrew Law, New Jersey State Director, USDA Rural Development
– Dionne Toombs, National Program Leader, Competitive Programs,
USDA CSREES
– Elizabeth Tuckermanty, National Program Leader, Competitive
Programs, USDA CSREES
– Margaret Brennan, Director of Economic Development, Rutgers NJAES
• Description:
– A number of state and federal agencies provide funding assistance that
can directly support food business incubation programs, as well as
small farms and food industry entrepreneurs. Funding can include
grants, loans and loan guarantees, and can be used for a broad variety of
purposes. An overview of both federal and state funding programs will
be described in this seminar, which can provide great benefits to
incubator programs as well as to incubator clients.
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Microenterprise, Private-Sector and Foundation
Programs for Funding Your Incubator, Your
Community, and Your Clients
Tuesday, October 7, 2:15pm – 3:45pm
• Presenters:
– Jim Duffy, Partner in Charge, Food Industry Group, Wiss & Company
– Diane Holtaway, Associate Director Client Services, Rutgers Food
Innovation Center
– Carol Coren, Business Association Mentor, Rutgers Food Innovation
Center
• Description:
– In order to assure critically needed cash flow, and potentially create a
financially self-sustaining incubator program, it is critical that funding
streams be identified from both public and non-public sources. Food
business incubators are somewhat unique, in that a number of revenue
sources can exist for services that can be provided. In this seminar, both
traditional and non-traditional sources of funding will be described,
that can benefit your incubator program as well as your incubator
clients.
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FoodBIN 2009 and Beyond
Wednesday, October 8, 10:30am – 12:00pm
• Facilitators:
– Lou Cooperhouse, Director, Rutgers Food Innovation Center
– Margaret Brennan, Director Economic Development, Rutgers NJAES
• Description:
– There have now been six FoodBIN conferences, and the future of
FoodBIN will be discussed during this seminar. A business plan has
been developed for FoodBIN, which will be described, and this seminar
will provide an opportunity for attendees at this conference to
brainstorm how FoodBIN can potentially provide even greater benefits
to the food and agribusiness incubation community, and result in
potential partnerships and collaborations that leverage collective
resources and increase economic impacts.
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Rutgers Food Innovation Center
Overview
Rutgers University
Commitment to Food and Agriculture Industry
• 24 Undergraduate and 11
Graduate Programs
• 24 Centers and Institutes
• 21 Cooperative Extension
county offices
• Office of Continuing Professional
Education
• Extensive Range of Outreach,
Research and Community Projects
with focus on Food, Nutrition,
Health and the Environment
• Food Innovation Center is newest
program, and based in Bridgeton
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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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New Jersey Food Industry Sector
• The Agriculture and Food Industry is one of New Jersey’s
leading industries, rivaling the pharmaceutical industry in
size.
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$82 billion in direct sales (10% of state).
More than $7.65 billion in wages (6% of state).
More than 26,000 firms (12% of state).
More than 375,000 jobs (11% of state).
• Critical to South Jersey economy
• Contributes to economic stability for entire state
• The New Jersey region has the wealthiest, highest
population density, multi-ethnic consumer market in the
world….60 million consumers live within 6 hours driving time
from New Jersey
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Food Innovation Center Geographic Base
Bridgeton, Cumberland County
• Among 566 municipalities in NJ, Bridgeton’s
– Per Capita Income is 2nd lowest in state ($10,917 vs. $27,006 for
state),
– Poverty level is 6th highest in state, with >26% of population in
poverty (vs. 8.5% for state)
• Cumberland County has :
– Lowest per capita income in the state- $17,376 vs. NJ avg. of
$27,006 (and $21,587 US avg.)
– Highest percent of households below poverty level at 15%
• Southern NJ is hub of New Jersey’s food processing and
agricultural industry, yet its economy has significantly
worsened over past few decades
To create jobs in this region, a strong, viable food industry is
critically needed.
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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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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 Center
Services 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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Food Innovation Center
Client and Resource Cluster Created For Food Industry Growth
Farmers
&Coops
Rutgers
University
NJ BIN &
Incubator
Programs
Worldwide
Local,
State and
Federal
Agencies
Food
Startups
Comm.
Colleges
& Univ.
Worldwide
Food
Manuf.
Retail&
Foodsvc
Markets
Industry
Service
Providers
Consultant
Network
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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 Facility
Bridgeton, NJ
Grand 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
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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
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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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An array of technologies will be available…
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...Enabling great product capabilities
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For Further Information:
Rutgers Food Innovation Center
450 East Broad Street
Bridgeton, NJ 08302
www.foodinnovation.rutgers.edu
856-459-1900
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