Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?

From an industry perspective, I have 14+ years of experience in International FMCG companies presenting next F&B Segments:

• Confectionary & Bakery – Mondelez, Mars
• General Food (ketchup, sauces, beanы, peas) – Kraft Heinz
• Meat & Poultry – Cherkizovo Group
• Baby Food – Kraft Heinz
• Alcoholic Beverages (wine, spirits) – Diageo

From a professional perspective, I have experience across the whole organization taking key roles in the next parts of the business:

Operations – Operation Shift Manager – responsible for Chocolate factory efficiency

R&D – R&D Innovation Project Manager, building and executing innovation pipeline

Supply Chain Development – launching new production sites, managing Innovation Pipeline Execution

Commercial Execution (Head of Commercial PMO) – building long-term Inno Pipeline Internationally

Strategy (Strategy Execution Manager) – development and Execution Corporate Strategy

Strategy (Head of Strategy PMO and Business Process Management)

Q2. Which F&B segments show the strongest growth potential despite inflationary pressures? And who are the key players in segments along with their market share?

• The organic food
• Halal food
• Poultry market
• Plant-based and sustainable food

Q3. How advanced is AI/ML integration in the operations of F&B companies, and how is it giving them a competitive edge in the market?

AI/ML integration in the operations of F&B is very advanced and has different directions and implementation priorities, we can propose the next split:

First priority will be:

• Genome editing (CAGR 2035 ……) – getting more resistant products
• AI (CAGR 2035…..) – will address the next challenges: Food security, ensuring nutrition and compliance, enhancing the consumer experience, and boosting innovations  
• IoT (CAGR 2035….)- vertical farming management, self-service grocery store (without cash desks)
• Robotization (CAGR 2035…..) – from harvesting in the agro cluster to order delivery to the final consumer
• Geoanalytics, Geomarketing (CAGR 2035…..) – from field managing (soil changes monitoring) in agro to making decisions about opening new grocery stores in certain locations
• Alternative Proteins (CAGR 2035 …..)
• Vertical Farming (CAGR 2035…..)

Second Priority:

• Plant-based proteins (soybeans, peas)
• Animal cell-based protein
• Microorganism-based proteins (algae, mushrooms) 
• Insects proteins
• 3D – printing

Q4. How fragmented is the F&B market, and what consolidation opportunities exist?

The F&B market is significantly fragmented. There are a lot of companies of different sizes operating in the market. Next activities could support consolidation:

• Communication between market players, including investors, traders, and regulators
• Investment and Technologies: common platforms and data systems for getting a seamless experience of exchanging knowledge and resourcing
• Strategic shared sourcing to get opportunities to optimize cost

Q5. How vulnerable is  the business to changing consumer preferences?

The F&B market is quite sensitive to changing consumer preferences and not a stable business environment. There are several trends that companies have to address if they want to keep competitive advantage:

• Cost remains the most significant factor for consumers. However, the variety of products has become more important
• Product availability and quality will be one of the critical success factors for winning the market, which means omnichannel strategy has to be considered a priority 
• Sustainability and Health continue to be important for consumers, but without readiness to pay extra money. Smart pricing strategy and streamlining the supply chain and procurement process will help to address this challenge

Q6. What regulatory changes could impact consumer profitability in the F&B sector?

• Changing nutritional requirements
• Food traceability recordkeeping requirements
• Food allergen enforcement

Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?

What are your company strategy choices and challenges?