Startup Spotlight: FENIK

Startup Spotlight: FENIK

Originally known as Evaptainers, Fenik started out as a student project at MIT. The team’s goal was to develop a low-cost method for preserving fruits and vegetables in remote areas. Five years and many prototypes later, Fenik recently wrapped up a successful Kickstarter campaign and launched production of its Yuma No-Ice Cooler.

While the new product will keep your camping supplies nice and cool, Fenik’s mission is to provide an inexpensive food-preservation solution for people in developing countries who lack access to electricity and refrigeration. We caught up with co-founder Spencer Taylor to hear Fenik’s latest news.

What’s your founding date?

September 2013.

How big is your team?

Five people.

What problem are you solving?

Last-mile food insecurity in arid developing nations.

What’s been the biggest surprise about running your business?

How few true-impact investors actually exist. They are often talked about, but you rarely meet one.

What was the big idea that got you started?

In an MIT class called Development Ventures, on the first day the professor said, “I want you to come up with a good or service that will change the lives of one billion people.”

Whom are you competing with?

Primitive evaporative coolers, such as the Zeer Pot, or draping wet cloth over food to help to preserve it.

The coolest food system innovation I’ve heard of is…

the sheer amount of innovation going on in the food space these days.

The scariest thing about today’s food system is…

the amount of waste that is endemic throughout the cold chain in both developed and developing markets.

What’s your latest big news?

We’re taking delivery of our first production units of the Yuma in January 2019.

Best advice you’ve received?

Hardware is hard.

What advice do you give to potential startup founders?

Start with a problem you have experienced, or one that you deeply understand through others. Assume nothing and validate your approach compulsively as you progress with your client base. Constant course corrections are not the product of inexperience; they are critical to success.

The Yuma No-Ice Cooler assembles easily and needs only water for evaporative cooling. The water is stored in the cooler’s walls and lowers the internal temperature 10-20 degrees — or more in drier environments.

Best Before… Who Knows?

Best Before… Who Knows?

Real food. It’s what everyone wants — farm fresh and chemical free. But real food spoils. In the field, on the truck, at the store and in your fridge. That’s why innovators and entrepreneurs are coming up with new and nifty ways to help prolong the life of food.

The next time you purchase perfectly heart-shaped strawberries on the East Coast, consider this: They were probably picked and packed into their plastic clamshells on a Central Valley farm in California between five and eight days ago.

They could have been harvested on a balmy 70-degree morning or in the 95-degree heat of mid-afternoon. Perhaps they sat in the field for one hour — or four. Maybe the pallets took five days to cross the country in a temperature-controlled trailer, or maybe the trailer refrigerator broke down halfway through the journey. Once at the store, the strawberries might have sat on the shelf for a day, or a few more. “Many things can impact shelf life,” says Kevin Payne, vice president of marketing at Zest Labs, a San Jose-based tech company trying to take the mystery out of produce shelf life. “But you can’t see those until the very end,” when 24 hours later, your picture-perfect ruby strawberries morph into camo-green fuzz balls.

Six dollars wasted. Dreams of strawberry shortcake vanished.

And now you can add that pound of trashed berries to the 400 pounds of food you personally waste each year. According to the Natural Resources Defense Council (NRDC), 40 percent of food produced for human consumption in the United States goes uneaten. Just one-third of that wasted food could feed the 48 million Americans living in food-insecure households.

Wasted food is bad for humanity, but experts believe it could be even worse for the earth. Food waste is responsible for 16 percent of our country’s methane emissions — the pollution equivalent of driving 37 million cars per year. Growing, processing, transporting and disposing of food uses roughly 10 percent of the U.S.’ energy budget, 50 percent of our land and 80 percent of our fresh water consumption. So, when you figure 40 percent of that goes unused, that’s a lot of unnecessary pollution accelerating climate change.

In the developing world, most food waste occurs in the field or in transit due to poor infrastructure or lack of refrigeration. But in the U.S. and the rest of the developed world, the majority of food is wasted on the farm, at the supermarket and at home.

The food industry had mostly resigned itself to these inefficiencies. “The approach has been that waste is the cost of doing business,” Payne says. “And the solutions have historically been reactive.”

That’s all starting to change thanks to a shift in food culture, environmental awareness, technological advances and a host of entrepreneurs shaking up the industry through food-shelf-life innovations.

Polluting the Planet

Wasted food is bad for humanity, but experts believe it could be even worse for the earth. Food waste is responsible for 16 percent of our country’s methane emissions — the pollution equivalent of driving 37 million cars per year. Growing, processing, transporting and disposing food uses roughly 10 percent of the U.S.’s energy budget, 50 percent of our land and 80 percent of our fresh water consumption. So when you figure 40 percent of that goes unused, that’s a lot of unnecessary pollution accelerating global warming and climate change.

Protective skin

Searching for ways to prolong a food’s shelf life is nothing new. Humans have been salting fish, meats and cheese for thousands of years. We’ve created techniques like smoking, pickling, waxing and, more recently, adding chemical preservatives or ozone, to prevent spoilage. Today, delicate greens are packaged in Modified Atmosphere Packaging (MAPs) to replace most of the oxygen in the bag with carbon dioxide (a gas that slows spoilage). What’s more, refrigeration technology, which many experts agree is the key to extending shelf life, continues to grow more efficient.

Yet some of the industry’s most impressive technologies — canning, freezing and pasteurization — were developed nearly 200 years ago. Fresh produce, which is wasted more than any category of edible food, is in higher demand now than ever. People want cleaner food — food that’s safe, with few ingredients and very little processing. Therefore, we need to find alternative ways to slow down the basic life process known as respiration. Food respires after it’s harvested, which means it consumes oxygen and gives off CO2, heat and water. If you slow a plant’s respiration rate, you can extend its shelf life. If you extend shelf life, you can reduce food waste.

Apeel’s product coats fruits and vegetables, slowing water loss and oxidation — two key factors in spoilage. The coating is made from edible plant materials and reinforces the protection provided by a fruit or vegetable’s natural skin. The diagram shows the microscopic layers of a strawberry’s skin. Image courtesy Apeel Sciences.

“Most solutions today have been focused on the transport period” of harvested produce, says James Rogers, founder and CEO of Apeel Sciences, a San Diego-based company that developed an imperceptible, tasteless and organically derived second-skin for produce. “We have controlled-atmosphere shipping, refrigeration, high-humidity storage — all of these are kind of solving the key things that cause produce to spoil, which are water loss and oxidation.”

Slowing food spoilage during transit is important, but Rogers wanted to protect produce through all stages of the supply chain, especially on the farm and at the grocery store.

“If you look at some of the most successful companies of our era, they’re using resources that were not being optimally utilized,” Rogers says, referring to Uber and Lyft for ride sharing and Airbnb for house sharing. “We can use technology to unlock some of that wasted value to improve efficiency.”

That’s what Rogers did when in 2012 he launched Apeel Sciences. The idea came to him while driving through California’s lush Central Valley, listening to a radio program about the one billion people who are hungry on this planet. He wondered why, when there was such an abundance of food growing around him, was one third of that food being wasted. With his knowledge of material sciences as a Ph.D. student and grants from the Bill & Melinda Gates Foundation and The Rockefeller Foundation, he began experimenting with ways to improve the shelf life of African cassavas, mangoes and bananas without using costly and environmentally unfriendly refrigeration.

To do this, he looked to organic materials left over on farms — grape skins, stems, leaves, etc. He and his team of scientists blended the matter up and extracted fats and specific food molecules. When these molecules are transformed into powder and combined with water, the resulting liquid can be rinsed over produce at wholesale produce-sorting facilities to create an undetectable “second skin.”

“We’re trying to use food waste to solve the food-waste problem,” Rogers says. The added “peel” acts to “physically slow down the rate at which water evaporates out of the produce and the rate at which oxygen gets into the produce,” he explains. “By doing that, we can dramatically extend the shelf life of most types of fruits and vegetables even without the use of refrigeration.” This science led to a Series B $33 million investment in the company, with big grocers like Kroger and Costco buying Apeel-treated produce to reduce their food waste.

Spicy Solution

Another entrepreneur using food to save food is Kavita Shukla, founder and CEO of The FreshGlow Co., which developed a natural paper infused with organic spices and active botanicals that when placed near produce can double — sometimes quadruple — its shelf life.

The idea came to Shukla when she was 12 years old, visiting her grandmother in Bhopal, India. Her mother had warned her not to drink the water, but she forgot while brushing her teeth. Her grandmother quickly mixed up a spice elixir for her to drink. Shukla never got sick. When she got home, she began experimenting to see if the same spices could clean dirty pond water. They did. Her tests soon turned into a winning science-fair project, which set the course for her professional life.

“For the most part, food-spoilage technologies involve toxic pads, refrigerated transport or a lot of plastic,” Shukla says. But “customers are really aware now. They are asking, ‘Hey, is that apple waxed? What is the wax?’”

To make FreshPaper, the company infuses a proprietary blend of bacteria-inhibiting spices into compostable, organic paper. The paper can be slipped into berry cartons, vegetable bins or bags of leafy greens. The exposure you get to the spices is similar to what you might get while walking through the spice aisle of a grocery store, Shukla explains.

Best of all, Shukla’s paper is inexpensive, compostable and safe for humans and the environment. “I had my grandmother in mind when I designed the technology,” Shukla says. “She never had a refrigerator.” The product is already sold in 180 countries.

For the FreshGlow Co., which has taken it slow and steady, scaling up is the goal: to bring its product to larger produce companies and food distributors around the world. “That was always my intention — to use the technology to reduce food waste across the supply chain,” Shukla says.

FreshPaper sheets are infused with organic spices and active botanicals. The FreshGlow Co. founder Kavita Shukla learned as a child that certain spices can inhibit bacteria growth. She turned her home remedy into a simple solution for prolonging the life of produce.

Data-driven Distribution

While entrepreneurs are recognizing the financial and humanitarian opportunities of extending food shelf life, Silicon Valley hasn’t really tapped into this huge revenue stream. Zest Labs in San Jose is trying to change that. The tech company is making the cold supply chain more efficient by accurately predicting the shelf life of produce as it moves around the country. It does this through the Internet of Things (IoT), the interconnection of computers and everyday objects through data sent and received via the Internet. These IoT sensors monitor the temperature of produce on each pallet, from field to the retail shelf.

Zest Labs uses pallet- by-pallet temperature data to help predict the rate of produce spoilage. “No other industry would accept one third of their production going to waste,” says Zest Labs CEO Peter Mehring in a video on the company’s website. Image courtesy Zest Labs.

“The largest impact on produce is temperature, harvesting conditions and variety of the product,” says Zest Labs’ Payne. “Pallets harvested first will vary from bottom to top,” he explains. “We can figure out that pallet A has this much shelf life, and pallet B has this much.” They do this by producing a Zest Intelligent Pallet Routing (ZIPR) code, which routes pallets with less freshness to the nearest location and those with a longer shelf life further afield.

Zest Labs has “removed the randomness of food distribution,” says Dr. Jean-Pierre Emond, a co-founder of The Illuminate Group and an expert on the cold chain. “For each pallet coming in, they now know exactly what to do with it.”

Zest Labs technology is enabling growers and retailers, who have never had this type of data, to profit more and waste less. They do this by reducing pre-harvest water, fertilizer and labor costs, as well as post-harvest costs for waste removal. Large companies like Costco have tapped into Zest Labs’ technology to help their growers, distributors and themselves.

“I never see anyone winning with food waste,” Emond says. The entire food supply chain stands to benefit from these new solutions.

To better understand the science behind Apeel’s product, check out this story from WIRED magazine.

Sell by? Use by? Why?

Food loss on the farm, in transit and at the retail store is significant. But the largest category is even closer: Nearly half of America’s food waste happens at home. A 2012 NRDC study found “the average American consumer wastes 10 times as much food as someone in Southeast Asia, up 50 percent from Americans in the 1970s.”

The food-waste problem is partly cultural. In the U.S., food is relatively inexpensive compared to other parts of the world. Thanks to busy lifestyles, we over-buy and under-plan. And inconsistent shelf-life food labeling confuses consumers and retailers. What does “sell by” and “best if used by” mean? Are foods past those dates actually spoiled? Often, they are not.

In 2013 the NRDC reported that food expiration date codes contribute considerably to the estimated 160 billion pounds of food trashed each year in the United States, “making food waste the single largest contributor of solid waste in the nation’s landfills.” Food expiration date codes are not federally regulated. They vary by state and are often arbitrary, providing false confidence in a food’s freshness or spoilage.

“There isn’t a rhyme or reason to how food codes are set,” says Michael Malmberg, chief operating officer of Daily Table, a nonprofit Boston-based grocery store that sources nearly expired food from local farms, distributors, grocery stores, restaurants and bakeries, and resells that food at affordable prices. “It’s set by the manufacturer or packager and can be done for marketing reasons — if they want to turn a product over faster.”

Doug Rauch, a former president of Trader Joe’s — and Malmberg’s boss — saw an opportunity to change perceptions of shelf life at the retail level. Rauch was well aware of how much perfectly good food was wasted by grocery stores due to confusing food labels. While a fellow at Harvard University, he also learned that food malnourishment meant not just “a deficit in calories; it was a deficit in nutrition, and supply chain issues,” Malmberg says. “(Doug) realized there is a need not only for access to food, but access to healthy food that’s affordable.” Out of that came the concept for Daily Table, which opened its doors in June 2015.

Rauch likes to think of his two grocery stores, located in Roxbury and Dorchester, Massachusetts, as the T.J. Maxx or Marshalls of the food world — where you can shop for quality products at reduced prices without the stigma that comes with visiting a food bank. This model, backed by the PepsiCo Foundation, the Kendall Foundation and the Robert Wood Johnson Foundation, recognizes the flexibility in food expiration codes.

“It’s all well and good to have healthy produce,” says Malmberg. “But if people get home from work and don’t have dinner on the table, they’re in trouble.” So Daily Table also set up an on-site kitchen and hired chefs to turn ugly produce or products that are not moving off the shelves quickly enough into affordable, nutritious, ready-to-cook and grab-n-go meals that cost the same price or less than nearby fast food. Daily Table hopes to open more stores because “the concept will be more effective at scale,” says Malmberg. “We are currently covering 65 percent of our expenses. We think with a third or fourth store, we can break even.”

Breaking even, when it comes to food waste, would be a big step in the right direction.

Daily Table in Massachusetts takes in food rejected by other retail outlets for aesthetic reasons. For example, an entire pallet of organic cauliflower heads that were deemed “unmarketable” due to a few brown spots were saved before they ended up in a dumpster. The DT team sorted and repackaged them for sale as raw produce and as part of their prepared foods offerings. Image courtesy Daily Table.

Related Stories

Protecting Provisions

Protecting Provisions

Food packaging has been around as long as people have traded goods in markets. How else are you going to schlep that wine home across the desert? Given all that’s new in packaging and shelf-life technology, we’re taking a look back to some golden oldies, from skins and amphorae to the humble milk bottle.

Skins

Plants, animals and even humans have skins that inhibit the loss of water, so we will last longer. Food packaging performs the same function, inhibiting water loss and gain to extend freshness during transportation and storage. Too much water for any living creature causes cell death, so food scientists have been working for centuries to find the best way to provide a barrier between food and the environment.

Before the 17th century, that optimal barrier was literal skin. Leather bladders and other animal hides were convenient packaging materials beginning in prehistoric periods, and most “packages” for food were not removed during the cooking process. Animal bladders held meats and mixtures of vegetables and seasonings over the cooking fire. In a sense, haggis and natural sausage casings are modern-day versions of this ancient packaging.

Though we now have more options than our 17th-century ancestors did, we still protect many foods from spoilage by applying a protective skin.

Think of spoilage this way: Any perishable food ingredient, processed or unprocessed, breathes just like we do, taking in oxygen and releasing carbon dioxide. Bacteria grows faster if it exists in conditions that enable it to breathe, allowing it to break down the plant or animal cells. That’s why you frequently see cheeses and fruits covered with wax. The Chinese popularized this tactic during the 12th century, when they wrapped citrus fruits in wax to decrease the interior oxygen content and ensure the fruits made it to the emperor’s table. Different types of waxes (e.g., sugar cane and carnauba) are often applied by spraying or dipping fruits and vegetables to preserve or improve the appearance and protect the produce during storage.

Wax isn’t the only kind of protective skin: Victorians used lard to coat food, and M&Ms are covered with confectioner’s shellac, a substance made of an insect-derived coating that’s produced in India and called lac dye. Your french fries remain white and crispy because of a coating applied during processing to inhibit discoloration. Some other coatings aren’t so natural, including calcium acetate and calcium ascorbate. Even wheat gluten becomes a skin for some foods that are not grain-related at all.

Jars and Pottery

Three thousand clay jars of fermented fish sauce emerged gently from the sea in 2015. A team of archeologists led by Simon Luca Trigona celebrated their trove after two years of painstaking work around a Roman ship that was built sometime in the first or second century. These containters, called amphorae (singularly, amphora), have been around since the Neolithic Period (10,000 to 2,000 BCE). They were made of clay and often carried wine, oil or a fish sauce known as garum. The fish sauce, which resembled ketchup, was most likely from Spain and bound for Roman markets.

Fish sauce traveled in pottery vessels long before the sinking of the Roman ship. At the time, clay was also used as a sealant for baskets that carried grain. To eliminate the absorption of liquids by the vessel, clay, resin or pitch coated the interior surfaces. Manufacturers of amphorae applied a stamp to the outside that indicated its origin. In some cases, other information would be written or painted on to indicate weights, contents and market information.

Not often recycled, Greek and Roman amphorae were broken up after they reached their destinations. Rome’s Monte Testaccio is a mountain of these vessels, a Roman pottery garbage heap.

Clay amphorae

Glass, Crates and Cartons

Milk travels along the supply chain in bulk and consumer packaging, contained in glass, plastic and paper. A rusty milk jug worked its way up to the soil surface in our backyard last summer, with a metal label indicating it had belonged to the Turner Center Creamery in Auburn, Maine. The creamery, which operated in Auburn in 1893, manufactured the first commercial ice cream in New England. Customers would send jugs to dairies where the farmers would refill and deliver the milk back to the customer.

In more urban areas, metal milk jugs had been replaced with glass bottles topped with metal caps. Alexander Campbell introduced these bottles in 1878 in Brooklyn, New York, and by the early 1900s, fiber material and paraffin covered the metal caps. At first, customers resisted the glass bottles because glass was commonly used for medicines from the drug stores, and dairies worried about broken glass. But distributors preferred glass for sanitation and easy handling, so both dairies and consumers overcame their concerns, and glass replaced the metal jugs until paperboard appeared in the early 20th century.

In 1915, John Van Wormer patented a wax-sealed paper carton with a gable top that could be shipped flat for assembly at the dairy. Gallon and half-gallon plastic jugs became the preferred package for milk by 1970, but paper milk cartons have made a comeback since being fitted with screw tops in the 1990s.

Plastic jugs travel to stores in milk crates, which were once made of metal, but were replaced with plastic by the 1960s. Each crate carries four to six one-gallon plastic milk jugs. About 20 million crates go missing every year, stolen for shredding and reselling at a profit. The International Dairy Foods Association (IDFA) estimates that U.S. dairy companies spend 
between $80 and $100 million to replace stolen or missing plastic milk crates (read about another beverage container that often falls out of the supply chain).

Food Preservation: It’s in the Can

Food Preservation: It’s in the Can

Whether boxes, bags, or cans, food needs some sort of protection from the environment, and cans tell a story of multiple technologies, not all of which came together at the same time.

Nicholas Appert, a self-taught chemist who was a cook, chef, and confiseur in Paris experimented in his shop while the citizens of his city marched on Versailles over the price of bread. Times were tough if you were hungry and not the aristocracy.

Access to food was a concern for more than just the Parisians during the Revolution. When Napoleon began his sweep across Europe, he was aware that his army traveled on its stomach. So Napoleon challenged the citizens of France to come up with a way to make food last longer while the navy was at sea and his armies were assembling his empire. Appert responded with a way to sterilize food in glass bottles. His idea, he said, was a response to the general concern about over-consumption of sugar, which was used as a preservative. He saw his technique as a way to lessen the amount of sugar in preserved food. (Yes, that was in 1810. Our current concern about eating too much sugar apparently has a history of about 200 years.)

“When Napoleon began his sweep across Europe, he was aware that his army traveled on its stomach.”

Appert won the cash prize but not the patent. Almost at the moment he published his work, several British engineers and entrepreneurs scooped up the idea and received a patent, soon turning Appert’s invention from glass to tin.

Tin Can

Bryan Donkin’s tin can, based on Appert’s sterilization technique

Though Appert would die poor (no patent, no money), his discovery of sterilization as a way to preserve food was a foundational innovation. Cans and can production technologies followed as inventors experimented with heat, metal, and machinery to process food for longer durations before consumption. Of course, it wasn’t until 50 years after the can appeared that it became openable. The can opener didn’t arrive on the scene until 1866.

“Of course, it wasn’t until 50 years after the can appeared that it became openable.”

The idea of preserving food in tin cans attracted the attention of entrepreneurs in Britain and the U.S. during the Civil War. Like France, both sides of the American conflict wanted to feed their armies so they could remain in the field. Experiments for condensing food, like milk and soup, emerged as a way to package food without the additional liquid weight.

Food technologies that not only preserve food but also lessen its weight must relate in some way to the cost of transport. The connection between lighter food and lower fuel costs may have been an incentive for these early inventors.

There’s a lot more to explore about canning and other food packaging technologies. It’s intriguing to note that when canned food appeared, it became mysterious. Consumers began to demand labels and certification that would verify the contents of the can. The loss of transparency in the food supply chain may have begun with the tin can.

Startup Spotlight: 2017 Prize Finalists Keep Sparking Change

Startup Spotlight: 2017 Prize Finalists Keep Sparking Change

Whether they were newly hatched companies or enterprises needing a little help getting to the next level, competitors in the 2017 Food+City Challenge Prize are still going strong. We checked in with several finalists to hear about their progress.

Evaptainers logo

Refrigeration is an invention of the supply chain. You can’t safely transport perishable food without it (unless you employ centuries-old preservation tactics like salt curing or pickling). But in the 100 years since refrigeration technology was invented, it hasn’t changed much, and it almost always requires electricity to work.

In many developing countries, electricity is not assured, and many people suffer from food insecurity because they can’t save or preserve enough food. Nearly half of the produce grown in Africa goes to waste before it reaches the consumer. Evaptainers, a Boston- and Morocco-based startup, has reimagined refrigeration technology and is bringing it to those who need it most.

Evaptainers’ refrigeration systems don’t run on electricity. Instead, they use sunlight and water. A collapsible box, small enough to sit on a countertop, cools food the same way humans cool themselves — through evapotranspiration. In other words, when water evaporates, cooling occurs.

This simple yet revolutionary technology has been garnering lots of attention and gaining traction. Following the capital infusion that came with winning the gold prize at the 2017 Food+City Challenge Prize, the company went on to win more awards: One award at the pitch competition Foodbytes! in San Francisco and a United Nations innovation award at the Seeds and Chips global summit in Milan. They have also been featured in Ag Funder News, The Boston Business Journal and TechCrunch. Their acceleration continues, with support from LAUNCH Food and funding from USAID, and they are finalizing the production of 400 prototypes slated for a field trial in Morocco this summer. A commercial launch is likely in 2018.

In addition to vital funding, a key result from their experience at Food+City’s Challenge Prize has been relationships with other startups.

“We met startups working on different aspects of food and food waste and have learned so much from our conversations with them about the arduous yet fruitful process of growing a small social impact business,” says chief strategy officer Serena Hollmeyer Taylor. Starting a company is often a struggle, as Prize competitors know. The opportunity to interact with others going through similar challenges, who can share knowledge and lessons learned, is a powerful outcome of Prize.

Evaptainers‘ electricity-free refrigeration device, made especially for use in developing countries where the electricity grid is unreliable. Using evapotranspiration, the box keeps produce and other products cool and prevents spoilage.

Nüwiel logo

The Last Mile is a supply chain concept ripe for innovation. It is often the most expensive and complicated leg of the supply chain journey for food products. Narrow roads, city traffic and generally limited space contribute to the challenge of this final stage in the supply chain. Large, cumbersome trucks have traditionally been the go-to mule — and scapegoat — for these deliveries.

Nüwiel, a startup in Hamburg, Germany, has taken on that challenge. The company created electric-powered bicycle trailers specifically for last-mile delivery in urban settings. Their technology knows exactly when to accelerate, decelerate and brake to make last-mile delivery via bicycle more efficient and realistic. In addition to improving delivery efficiency and reducing road traffic, the bike trailers don’t contribute to the pesky urban problems of noise and air pollution.

After winning the bronze prize at the 2017 Food+City Challenge Prize, Nüwiel used the attention to accelerate their development.

“The Prize has certainly helped us a lot. We received significant media attention, getting mentioned not only in Germany but also in the U.S., U.K., Austria and Italy,” says co-founder Natalia Tomiyama.

In the months since Prize, Nüwiel has been accepted to a second stage at the biggest trans-European accelerator, Climate KIC; they’ve scheduled pilot projects with four different partners; attended South By Southwest; updated the design of the trailer; built a prototype; and were selected as to pitch and exhibit at the CUBE Tech Fair in Berlin. Last summer, they got out of the building to bike across Europe — from Hamburg to Italy, passing through the Netherlands, Belgium, France and Spain — and test the durability of their trailer.

Nüwiel’s powered trailer for making urban food deliveries; hooked up behind a bike.

Phenix logo

The issue of food waste is under attack on multiple fronts. Entrepreneurs are coming up with new ways to use food waste, while public awareness campaigns aim to induce behavior change. Some progressive governments have even joined the battle. In France and Italy, laws ban food waste and remove barriers to food donation. This means that French supermarkets can’t throw out unsold produce. While well intentioned, the law leaves French groceries in a bind, with hundreds or thousands of pounds of food that can neither be sold nor thrown away.

Enter Phenix, a 2017 Food+City Challenge Prize finalist, which is addressing that logistical issue in their home country of France. Phenix’s digital platform connects grocery stores with nonprofit organizations whose mission is to feed the underprivileged and food insecure. They organize pick-ups and drop-offs and connect surplus supply with demand in real time, employing their fleet of vehicles to transport the food. Phenix is saving 20 tons of food before it hits landfills, while supplying their charity partners with 27,000 meals — every day.

Since Prize, Phenix was a finalist for the French American Entrepreneurship Award (FAEA). At its headquarters in Europe the company has continued to expand into new regions in France and by finding new segments of the market.

Phenix’s mission goes beyond food waste, which is why they have created a lab to incubate new projects around the circular economy, a system that challenges the more linear system of make-use-dispose by inventing ways of maximizing the value of a resource and regenerating it into another purpose when it reaches its functional end. So instead of trashing unused food, for instance, a circular economy maximizes value buy feeding it to people in need or, when that’s not possible, transform it into a different usable product such as nutrient-rich compost. A planned grocery store with shelves full of strictly unsold products will serve as an example of of this model.

Despite similarities in the ways France and the U.S. treat tax deductions for donations, operating in the U.S. can be difficult because of regulation around food expiration dates. “France has a very detailed and clear framework on what expiration dates mean and what can be donated,” says Sarah Lenoble, director of Phenix USA. “Whereas it is much less clear in the U.S., where there is no real regulation on expiration dates, and every state can have its own regulation.” Phenix is searching for the right partner to launch a pilot program in the U.S.

Phenix workers and partners pick up and recycle or reuse uneaten foods in France.

A worker from Phenix organizes supplies for reuse.

Rise Products logo

There’s a movement brewing that includes turning surplus bread into beer, aquafaba — aka chickpea cooking liquid — into vegan mayonnaise and food waste into new packaging and products. With all the attention food waste is getting, it makes sense that “upcycling,” the process of using a discarded material and creating a valuable product with it, is quickly gaining traction in the marketplace.

Rise Products takes unspent barley from microbreweries in Brooklyn and uses a proprietary process to turn it into flour, which can be used to make the same products as traditional wheat flour. And they’re working with well-known Brooklyn bakery Runner and Stone to develop recipes for all kinds of carby treats. The flavor of the flour Rise produces varies based on what type of beer was produced from the grain — flour from ales tastes nutty and light, while porters create a dark and rich flour that smells like chocolate.

By participating in events like the Zero Waste Food conference and the Make It in Brooklyn Pitch Contest, in which it was selected as a top-five finalist, Rise has firmly entrenched itself in the upcyling-to-beat-food-waste movement.

Since winning a silver award at the 2017 Food+City Challenge Prize, Rise has continued to gain momentum. They completed their time at the Food-X accelerator, gaining valuable mentorship and connections, and came away with a prototype for a production facility. From their spot in the Brooklyn Navy Yard as part of the 1776 Accelerator, Rise is working with the New York Economic Development Board to develop their own production plant.

Making the most of the Prize experience, they have stayed in touch with other startups from the competition, as well as their mentor, Ashley Shaffer of IDEO.

“Participating was an awesome experience for us, especially since we met our mentor, Ashley. We’ve kept in touch with her and with the other participants since then, even meeting some of them recently in Milan during the Seeds & Chips conference,” says COO Ashwin Goutham Gopi.

Bags of ready-to-use Rise Flour, made from spent brewery grains.

Smallhold logo

Some say the future of agriculture is in cities. As the world’s urban population continues to expand, it is easy to imagine how growing food in nontraditional areas, like skyscrapers and downtown warehouses, will benefit the food system. But while vertical farms, urban and rooftop gardens, and shipping container farms are all making progress in the area of urban farming, none has a foothold quite yet.

Distributed farming is the latest idea in this sector. The process enables a business or restaurant to re-route the last food mile and finish growing a product in the location where it will be consumed.

Brooklyn-based Smallhold is leading the charge for distributed farming. At the 2017 Food+City Challenge Prize, co-founders Andrew Carter and Adam Demartino pitched the idea of distributed farming through restaurant mini-farms that produce mushrooms. Today they’re cultivating several unusual varieties of mushrooms, from lion’s mane to yellow and pink oyster, and they plan to expand into other products like leafy greens soon. Top chefs and restaurants in New York are taking notice and endorsing the products.

Since Prize, three new restaurants have come become clients, welcoming Smallhold farms into their kitchens. Smallhold also sells their products directly to grocery stores and intends to use connections from Prize to pursue expansion in major retail stores.

“Food+City introduced us to some amazing stakeholders and thought leaders from places like Whole Food and Walmart, and we are extremely happy we attended,” Carter says. The company is gaining momentum in the tech circles as well. The team benefited from the mentorship and guidance of the TechStars Boston program, which wrapped up in May 2017. They have also seen their team grow 100 percent since Prize and have expanded their farm with a custom-built shipping container to grow more mushrooms.

Mushrooms grown by Smallhold.

FOOD + CITY CHALLENGE PRIZE

Innovation in food takes all forms, from making improvements to pallets to creating new avenues for delivering food or designing packaging that increases the shelf life of a food. Since 2015, we’ve hosted a challenge prize for startups in the food space that are challenging our notions of how the supply chain works. The 2018 Challenge Prize will be awarded on March 13, 2018. Be sure to visit foodandcity.org/prize to watch this year’s entrants become finalists and compete at SXSW Interactive 2018.