Superfood : the Taste of Tomorrow RECIPES from MULTINATIONALS the Functional Food Boom the Success of Organic Products Investigating the Proteins Market

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FOXCONN Rise of the robots 15 ﬁrms under the magnifying ANALYSIS Is the Swiss watch glass industry in crisis ?

MATCH GROUP Getting to know the leader in DOSSIER online dating Superfood : the taste of tomorrow RECIPES FROM MULTINATIONALS The functional food boom The success of organic products Investigating the proteins market

DANONE PEPSICO KELLOGG’S YAKULT GENERAL MILLS NESTLÉ CAMPBELL’S TO BREAK THE RULES, YOU MUST FIRST MASTER THEM. THE VALLÉE DE JOUX. FOR MILLENNIA A HARSH, UNYIELDING ENVIRONMENT; AND SINCE 1875 THE HOME OF AUDEMARS PIGUET, IN THE VILLAGE OF LE BRASSUS. THE EARLY WATCHMAKERS WERE SHAPED HERE, IN AWE OF THE FORCE OF NATURE YET DRIVEN TO MASTER ITS MYSTERIES THROUGH THE COMPLEX MECHANICS OF THEIR CRAFT. STILL TODAY THIS PIONEERING SPIRIT INSPIRES US TO CONSTANTLY CHALLENGE THE CONVENTIONS OF FINE WATCHMAKING.

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EDITORIAL SWISSQUOTE MAY 2016

Superfoods are becoming super popular

Marc Bürki, CEO of Swissquote

onsumers today are more At the Nestlé Institute of Health health-conscious, and Sciences on the EPFL campus, the they’re willing to pay more company is developing products to Cfor foods that are better for them – prevent diabetes, cardiovascular or advertised as such. Food industry disease and muscle loss. giants are adapting to the trend. In addition to being very promising, You can find functional foods the health food market presents (‘high-tech’ foods with added another important advantage for vitamins and supplements) at the businesses : it’s a great time to get supermarket next to the organic, into e-commerce. Just look at China, gluten-free and lactose-free where the sector for foods stamped products. Functional foods have as “ healthy “ is growing 10% annually, seen incredible growth worldwide. and where online sales are booming. Nestlé’s sales jumped 25% last year, p. 28 As you’ll see in our dossier, all the and the company isn’t stopping there. big players in the sector are looking It recently forged a partnership with to gain market share in health foods Alibaba, China’s e-commerce giant. The p. 16 – including companies known for their deal will expand Nestlé’s distribution sugary and high-fat products. US capabilities and open up new horizons. soda giant Pepsico has branched out into cold-pressed juices, and General But the question remains : do these Mills has been talking up the nutri- foods taste good and are they enjoy- tional value of its cereals, which able to eat ? That’s a big challenge no longer contain food colouring for the industry, which is trying to or preservatives. meet it with clever marketing – and p. 48 it’s working. But the industry needs p. 40 Nestlé is positioning itself as a pio- to accept that no matter how so- neer of this health food movement. phisticated packaged foods might The Swiss company is investing be, they are no substitute for fresh heavily in research and development produce. After all, fresh produce isn’t and has spent the last few years just healthy – it tastes good too. buying up companies in the highly specialised medical nutrition sector. Enjoy !

3 SWISSQUOTE MAY 2016

DOSSIER 28 Superfood : the taste of tomorrow RECIPES FROM MULTINATIONALS 14

TRENDS FOXCONN

TABLE OF CONTENTS

3. EDITORIAL 18. FOXCONN 28. DOSSIER : SUPERFOOD : by Marc Bürki Rise of the robots THE TASTE OF TOMORROW 31. Infographic : 46. Functional foods 6. SCANS 22. INSIGHT Economic The popularity of The health food market for animals survey private justice 32. Interview with Julian 48. Functional food, 14. TRENDS 24. ANALYSIS Mellentin, director of the lies and marketing Personalities, The point of agency New Nutrition nations, innovations view of specialists Business 50. Interview with, Patrick Denoux, 16. THE MATCH 26. THE QUESTION 34. Spotlight on fifteen professor of Alibaba vs Is the Swiss watch big names psychology Amazon industry mired in a crisis ? 45. The healthy 52. Food of ingredient combo the future

4 TABLE OF CONTENTS SWISSQUOTE MAY 2016

MATCH GROUP TWO WHEELS PUBLISHER Swissquote Chemin de la Crétaux 33 1196 Gland - Suisse T. +41 44 825 88 88 www.swissquote.com [email protected] Manager Brigitta Cooper 60 70 EDITORIAL Editor-in-chief CORPORATE CULTURE Ludovic Chappex 66 Design director Caroline Fischer and Natalie Bindelli CANA atelier graphique Route de Jussy 29 - 1226 Thônex www.ateliercana.ch

Editorial staff Clément Bürge, Catherine Cochard, Benjamin Keller, Marie Maurisse, Sylvain Menétrey, Philipp Müller, Grégoire Nicolet, Jean-Christophe Piot, Gaëlle Sinnassamy, Gaëtan Vannay, Armelle Vincent, Julie Zaugg Layout Natalie Bindelli and Caroline Fischer 72 (CANA atelier graphique) Cover Photo : Michaël Ottenwaelter for Swissquote Magazine Photography Michaël Ottenwaelter, Lernert & Sander, R. Kiquo Johnson, AFP, Newscom, Reuters

Editing (English version) TRAVEL Lynne Corbett, Ose Ayewoh Translation Technicis Finance PRINTING, BINDING AND DISTRIBUTION Stämpfli Ltd. Wölflistrasse 1 - 3001 Berne 58. SWISSQUOTE 70. TWO WHEELS www.staempfli.com Two portfolios The motorcycle against uncertainty made easy ADVERTISING Mediensatellit Baslerstrasse 30 - 8048 Zurich 60. PORTRAIT 72. TRAVEL www.mediensatellit.ch Match Group The unspoilt heart WEMF cupid goes digital of the Canaries REMP 2015 : 49,471 ex. Print run : 60,000 ex.

66. CORPORATE CULTURE 80. PRIVATE ISSUES Swatch Group at Lorenzo Stoll, Head the cutting edge of Western Switzerland of architecture at Swiss International Air Lines ABONNEMENTSUBSCRIPTION 68. BOOKS AND APPS CHF 40.-40 FOR pour 6 6ISSUES numéros A monthly selection www.swissquote.ch/magazine/f/

to read and download GROUP - AFP / GUIZOU FRANCK NEWSCOM / ROLF VENNENBERND - AFP ALICE S. KIKUO JOHNSON SWATCH

5 SWISSQUOTE MAY 2016 SCANS

fashion SWATCH TO LAUNCH NEW LINE OF SUNGLASSES

“ We looked at China too much like a developing market as opposed to the most- discerning SWATCH

Swatch is rekindling an old flame. The the collection promises to feature co- market in watchmaker is set to launch a new line lourful frames with animal and gingham the world. ” of sunglasses this spring called ‘The motifs. Swatch already launched a line Eyes’. The company has teamed up with of sunglasses in the early 90s – ‘Swatch David Taylor, Italian eyewear maker Safilo, signing a Eyes’, with interchangeable frames. But P&G CEO about fall of its sales five-year collaboration agreement. Based they weren’t a big hit, and were soon in China because of its failure to on what the company has unveiled so far, discontinued. UHRN bring new products to market.

internet INTERNET USERS LOVE GIPHY

If we had published this article online, we could have spiced it up with a “ GIF ”. GIFs are short animated images—usually only a few seconds long—and they’re all the rage on the internet. To find one, +86% we’d just have to go to the Giphy website (like Google, but for GIFs), perform a The increase in profit generated keyword search and pick the one we like by Disney’s film division in the best. The US website has become a big first quarter 2016. The result hit since its 2013 launch. It raised was thanks in large part to the $55 million in February and is now success of Star Wars : The Force valued at $300 million. The company Awakens, which brought in has partnered with social networks $2 billion at the box office. DIS such as Facebook, Twitter and Tinder, but it has yet to turn a profit. DR

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cars RANKING ONE COMPANY IS PROFITING FROM THE VW SCANDAL THE 5 MOST OIL-DEPENDENT Plastic Omnium is one of the main ECONOMIES IN THE WORLD (export-to-GDP ratio in 2018) beneficiaries of the Volkswagen scandal in 2015. The French parts manufacturer 1. BRUNEI makes an urea-based catalyst (called 60.3% SCR) that reduces nitrogen dioxide emis- 2. KOWAIT sions. Last year the company saw its 46.5% sales jump 13% as its revenue rose 14%, to €6 billion. After selling 600,000 units 3. LIBYA $3.56 billion in 2015, the company expects sales to 43.8% 4. REPUBLIC OF THE CONGO The amount that Google reach 3 million units by 2019. The group 42.2% allocated in 2015 to ‘moonshot’ has 15% market share and counts 13 projects (visionary initiatives carmakers among its clients. It is one of 5. SAUDI ARABIA where immediate returns are the only companies besides Bosch and 32% not expected). Such projects Continental to sell the catalyst. POM include rockets, self-driving cars SourcesSource : : BloombergBloomberg and balloon-powered internet THE TOP 5 WEARABLE access. GOOG TECH BRANDS (unit sales in 2015)

1. FITBIT 21 MILLION 2. XIAOMI shale gas THINGS AREN’T LOOKING UP FOR SHALE PRODUCERS 12 MILLION 3. APPLE 11.6 MILLION A well owned by the company 4. GARMIN Quicksilver 3.3 MILLION Resources in 5. SAMSUNG Fort Worth, Texas. 3.1 MILLION

Source : IDC

THE TOP 5 GLOBAL SOFT DRINKS (according to their brand value in 2015)

1. COCA-COLA $70 BILLION 2. COCA-COLA LIGHT $13.8 BILLION 3. RED BULL $11.4 BILLION 4. PEPSI $10.8 BILLION NEWSCOM / M.L. GRAY / MCT NEWSCOM / M.L. GRAY 5. NESCAFÉ Oil prices peaked at $115 per barrel in companies Sabine Oil & Gas, Quicksilver $6.3 BILLION 2014. Since then, they have fallen 70%. Resources and Enbridge aren’t faring US shale oil producers have been hit much better and have seen a number of hardest by the lower prices, because shale their contracts cancelled. Oil field services Source : Millward Brown oil is particularly expensive to extract. company Halliburton recently announced Chesapeake Energy—a major player in 5,000 job cuts, after having already the sector—is on the verge of bankruptcy jettisoned over 25% of its workforce since after losing $14.9 billion in 2015. Pipeline 2014. CHK SOGCQ KWKAQ HAL

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SCANS The open-pit mine Collahuasi, in northern Chile. The operation is 44%-owned jointly by Glencore and Anglo American.

$61 billion The amount that Chinese companies paid in 2015 for foreign acquisitions (up 16% from 2014). The biggest acquisitions included the Legendary Entertainment film studio, tyre manufacturer Pirelli and the gay dating app Grindr. GLENCORE /ANDREW CRAIG

luxury LOUIS VUITTON BRANCHES OUT INTO BOOKSHOPS For luxury brands in China, the going is in Shanghai that serves Italian dishes ; getting tough. Sales have plummeted Bulgari plans to open two hotels in in the wake of a slowing economy and China in 2017 ; agnès b runs a chain of President Xi Jinping’s anti-corruption cafés and flower shops in Hong Kong campaign. Many are now trying to diver- and Taiwan ; and Armani has designed sify : Louis Vuitton opened a boutique in apartment interiors for a luxury Beijing featuring a bookshop, tea house residential project in the city of “ Hard to and art gallery ; Gucci has a restaurant Chengdu. LVMH KER accept that these The multi-purpose Louis Vuitton store in Beijing. imbeciles represent the people in our government. ” Valeant CEO Martin Shkreli, after being grilled by Congress about his company’s overpricing of certain medications. LOUIS VUITTON

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commodities TOUGH YEAR FOR GLENCORE KICKSTARTER

The five largest independent mining groups worldwide lost a combined $32 billion in 2015 as a result of falling commodities prices and sluggish demand from China. The value of copper alone dropped 25% last year. Swiss group Glencore was hit particularly hard. The company lost nearly $5 billion in 2015, one of the worst performances in its history. To reverse the trend, it has cut production at several coal, copper and zinc mines. The debt reduction plan also includes the transfer of a minor- ity stake in its agricultural products division and the sale of two copper mines in Australia and Chile. GLEN ROCKETBOOK WAVE

ROCKETBOOK WAVE Save your notes in the cloud The Rocketbook Wave is for everyone from students and artists to entrepreneurs. But this blue spiral internet notebook isn’t like other notebooks. FACEBOOK RUNS INTO HURDLES IN INDIA It lets you easily save notes and It seemed like the perfect strategy. Facebook had plans to sketches in the cloud. Just write launch a service called ‘Free Basics’ that would give smartphone or draw on its pages, then use a users in emerging countries free access to a series of plat- special app to scan the pages with forms, including its own. The idea was that once users became your smartphone – it only takes a accustomed to the service, they’d pay to keep using it. But Free second. Your notes are automatically Basics—already available in Kenya, Colombia, Indonesia, Iraq and uploaded to the web and filed right a dozen other countries—was dealt a blow by the Indian telecoms where you want them. There are regulator in February. The regulator banned Free Basics in India, seven icons on each page. Each icon arguing that the service would jeopardise internet neutrality by represents a place where you can giving an unfair advantage to some platforms over others. FB save your notes (such as Dropbox, Evernote, Google Docs or your email address). Select an icon and your notes will automatically be filed in the right place. Want to start fresh with a clean notebook ? If you use Protest against the Pilot Frixion pen that comes with Facebook’s the Rocketbook Wave, you can put Internet project the notebook in the microwave to in Bangalore on erase everything. 2 January 2016.

FUNDS RAISED AVAILABILITY $574,699 AUGUST 2016 AFP / BRENDAN MCDERMID AFP / BRENDAN

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SCANS tourism TOURISTS FLOCK TO CUBA, PASS ON PARIS The wave of terrorist attacks that swept through several countries in 2015 has changed the map of global tourism. Hotel occupancy in Paris was down 13.8% in December—following the November attacks—compared with the previous year. Tunisia, which suffered “ We build secure two attacks targeting tourists, lost products to 1.8 million holiday-makers over a one- year horizon in 2015. Meanwhile, Cuba keep your has seen a 17% increase in visitors as information frosty relations with the United States start to thaw. The biggest winners have safe. Forcing been operators such as US-based companies Carnival, which offers Caribbean cruises. On the other hand, Thomas Cook (UK) and to enable TUI (Germany) have seen reservations hacking could plummet for France and North Africa. compromise CCL TCG TUI users’ privacy. ” Sundar Pichai, The beach resort of Varadero, on Google CEO, on the fight between the northern Apple and the FBI on cracking an coast of Cuba. iPhone having belonged to one of the perpetrators of the San Bernardino attacks.

energy SWISS COMPANIES TEAM UP FOR BIG WIND FARM PROJECT

312,000,000

The number of champagne bottles sold worldwide in 2015 (for an estimated NEWSCOM / INGRAM PUBLISHING record-shattering Bern-based energy group BKW and electricity and heating for 170,000 €4.75 billion). The last Credit Suisse Energy Infrastructure homes. The Swiss companies will have vintage to achieve similar Partners have joined forces to form a 40% stake in the project, estimated results was 2007, the consortium Nordic Wind Power. at €1.1 billion. Norwegian state-owned when sales reached The consortium is investing in Europe’s electricity producer Statkraft will €4.56 billion. biggest wind farm, set to open in 2020 have a 52.1% stake, and local firm near Trondheim in central Norway. With TrønderEnergi will have a 7.9% stake. 278 turbines, the wind farm will provide CSGN

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+20%

The increase in the salary of ABB director Ulrich Spiesshofer in 2015. His remuneration, now 9.1 million Swiss francs, consists of part cash (5.33 million Swiss francs) and part shares (estimated at 3.77 million Swiss francs). ABB executives as a whole took home 45.5 million Swiss francs in 2015 (up 18%). ANGELO DOMINI

FLOP health TECH AND HEALTHCARE Bombardier CSeries IN CHINA

China’s healthcare market was worth The revolutionary new and they have cost the $511 billion in 2013, according to CSeries has generated company $4.9 billion – Economist Intelligence Unit. By 2018, it quite a buzz. Quieter and $2 billion more than ex- will be worth $892 billion. This trend is more fuel efficient with pected. Bombardier will due to the emergence of chronic diseas- big windows and spacious likely inject $2 billion more es (diabetes, cholesterol), the ageing seats, it will significant- into the project between of the population and the expansion of ly improve passenger now and the end of 2017. health insurance. And tech giants are comfort and boost airline The company is also strug- perfectly positioned to cash in on it. earnings. But the two gling to find clients, as Alibaba recently launched a service CSeries models designed demand is weak for mid- where users can order pills online and by Canada’s Bombardier sized passenger planes compare prices from different chem- have run into a number (100 to 160 seats). So far, ists. The company’s competitor Tencent of technical hurdles since only 243 orders have been added a tab to its WeChat messaging their 2008 launch. Their placed for CSeries planes. service that allows users to find a release on the market (in- The first production model doctor and schedule an appointment itially scheduled for 2013) will enter service with via smartphone. BABA 700 was delayed three years, Swiss by late June. BBD/B

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SCANS

transport QUIET SUPERSONIC JET

NASA’s concept supersonic passenger jet.

“ I’m a unifier. I know people will find this hard to believe. ”

NASA Donald Trump, businessman and Lockheed Martin won a research contract jet would be used for passenger flights, Republican presidential with NASA to design a supersonic jet that like the supersonic Concorde (decommis- candidate. is quiet, fast, cheap and fuel efficient. sioned in 2003). Lockheed Martin will The group will receive $20 million over work on the project with GE Aviation and 17 months for the preliminary work. Tri Models. Others have already invested The goal is to create a jet by 2020 that in this segment : US firm Aerion teamed produces a ‘soft thump’ as it breaks up with Airbus to design a jet that can the sound barrier – rather than the sonic transport a dozen passengers at boom produced by today’s jets. The new Mach 1.5 (1,836 km/h). LMT GE

IPO pharma NOVARTIS UNDER INVESTIGATION SHINING STAR IN IN SOUTH KOREA GENETICS GETS Novartis is under investigation in South NASDAQ’S ATTENTION Korea. Its Seoul headquarters was US start-up Editas Medicine is already raised $120 million raided by authorities in late February. about to cash in on a major sci- from several private investors, The authorities seized registers and entific breakthrough : the ability including a fund set up by Bill official documents. The Swiss company to change pieces of DNA by Gates. The company hopes to is accused of giving money and other simply copying and pasting, a use this new therapeutic tool to gifts to doctors to encourage them to technique called ‘CRISPR-Cas9’. cure certain genetic diseases by prescribe Novartis drugs over others – The Cambridge start-up went removing the gene that causes a form of bribery. The Swiss group was public in February. Its share them. Its first target is Leber’s allegedly trying to stymie competition on price, set at $16, soared to congenital amaurosis, a type the Korean market from cheaper generic $42 in a month. The capitali- of eye disease. The first clinical drugs. NOVN sation reaches the billion. In trials are scheduled to start August 2015, Editas Medicine in 2017. EDIT

12 Life is short – so start thinking ahead.

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For detailed information on the opportunities and risks, please refer to the most recent sales prospectus. e information contained in the sales prospectus, as well as in the current annual and semiannual reports form the sole legal basis. e Key Investor Information Document, the sales prospectuses and the reports can be obtained free of charge from the management company ETHENEA Independent Investors S.A., 16, rue Gabriel Lippmann, L5365 Munsbach or from the representative in Switzerland IPConcept (Schweiz) AG, In Gassen 6, CH8022 Zürich. Paying agent: DZ PRIVATBANK (Schweiz) AG, Münsterhof 12, Postfach, CH8022 Zürich. SWISSQUOTE MAY 2016 TRENDS WORLD ECONOMIC FORUM the country ETHIOPIA

The Horn of Africa awakens With a population of nearly 100 million, Ethiopia is the fastest growing country in Africa. Its economy grew by an average of 10.9% per year between 2004 and 2014. The country has an ultra-centralised government inspired by the Chinese development model. Lavish spending was signed off to the figure improve infrastructure, such as roads KASPER RORSTED and dams. Special economic zones have been set up to promote domestic A breath of fresh air at Adidas trade and tax incentives have been passed in certain key industries, such Adidas has a new CEO, and his name is Kasper Rorsted. as tourism, leather goods, textiles, This 54-year old Dane is set to take over at the sports- agro-processing and pharmaceuti- wear manufacturer in August. He will be moving on from cals. Furthermore, the country enjoys his current position at Henkel, the German consumer and political stability, and inflation has industrial goods giant, where the share price has tripled remained under control with the help since he was named CEO in 2008. This father of four and of a prudent monetary policy. Wages avid sports enthusiast gained his early experience in have stayed low, but a new middle the United States starting in 1995 at Oracle and Digital class has emerged. Equipment Corporation. He went on to join Compaq, then Hewlett Packard, where he served as Senior Vice Presi- These advantages have dent and General Manager from 2002 to 2004. attracted foreign groups, including Heineken, Kasper Rorsted is viewed as an atypical and modern GDP General Electric, Orange, leader, a sort of Mister Perfect in the exclusive uppermost per inhabitant Etur Textile, Diageo, SAB- circles of German executives. His role at Adidas will be $573.6 Miller and Starwood Hotels, to position the company as a serious which have all invested in contender against its ruthless U.S. Growth in 2014 Ethiopia in recent years. The competitors, which include the veter- 10.3% economy is still predomi- Position an Nike and newcomer Under Armour. nantly agriculture-based, CEO of Adidas He will also have to figure out what Main economic but its manufacturing to do with its struggling brands, such sectors sector – especially low Nationality as Reebok and the golf equipment agriculture, value-added products that Danish textiles, maker TaylorMade. On 18 January have become too expensive leather goods, Salary in 2015 2016, the day he was appointed CEO hydropower, to produce in Asia – has €6.4 million of Adidas, the share price jumped gold. grown rapidly, as have 12%. ADS flower and coffee exports.

14 TRENDS SWISSQUOTE MAY 2016 NEWSCOM / CB2 ZOB SUPPLIED BY WENN

the innovation SAFETY TRUCK Company Samsung

A see-through lorry to prevent accidents Launch 2016 Tens of thousands of people die a live video feed to a giant screen on roads every year. Accidents consisting of four monitors across Cost frequently occur when a car tries the back. Any driver behind the lorry not disclosed to overtake another vehicle in an can safely overtake the vehicle and oncoming traffic lane. The danger is see exactly what is ahead in the other even higher when overtaking a heavy lane. Developed in partnership with vehicle, the risk being an obstruction the advertising agency Leo Burnett, of the driver’s visibility. It’s this risk this anti-collision system is currently that motivated Samsung to develop being tested in Argentina, a country a technology called the Safety Truck. with a high number of single-lane roads, This intelligent lorry is equipped with but should soon be available globally. a camera in the front which sends 005930

15 THE MATCH SWISSQUOTE MAY 2016

THE MATCH ALIBABA VS AMAZON BY LUDOVIC CHAPPEX Alibaba and Amazon dominate the Washington Post newspaper in 2013 with interesting content peppered with global e-commerce market, followed for nearly the same amount. The two highly-targeted ads. But any similarities by eBay as a distant third. Founded in giants are each looking to combine the in these companies' models aside, there 1999, the Chinese group, led by Jack Ma, strengths of e-commerce and online is one major difference : unlike Amazon, appears to be copying the strategy of journalism in the creation of colossal Alibaba does not have its own storage or its US counterpart to the letter : Alibaba databases whereby, on one hand, they distribution centres, the entire logistical recently acquired the daily South China can determine exactly what consumers chain of which is left to its vendors. This Morning Post for $270 million ; similarly, want and which, on the other, serve arguably allows the company to grow Amazon founder Jeff Bezos bought The as outlets for attracting daily visitors much faster. BABA AMZN

Market cap Number of employees Revenue Annual revenue growth over 5 years

$195bn $275bn 36,465 230,000 $11.7bn $107bn 63% 26%

Operating margin Number of active customers

29% 2% $407M $244M

VS Revenue per employee Free cash flow

$43,200 $55,600 Jack Ma Jeff Bezos $4.1bn $7.5bn 51 years old, 52 years old, net worth : net worth : $22.3bn $49.8bn

Website ranking for Most expensive sale BrandZ brand Year founded number of visitors valuation ranking (world rank)

$52M th th $5M 10 9 A plot of land 13th 14th An 1880 edition 1999 in Kunshan of the Bible 1994 (Jiangsu)

Sources : Statista, Fortune, YCharts, DMR, New York Times, Forbes

16 17 PORTRAIT SWISSQUOTE MAY 2016

Invasion of the foxbots Taiwanese electronics giant Foxconn, which manufactures the bulk of Apple products, has begun replacing its workers with robots and is planning to automate a third of its workforce by 2020.

BY JULIE ZAUGG

NUMBERS 1.3M $136.4bn $4.6bn 21 The number of people The company’s Net profit The number of proven making up Foxconn’s vast revenues in 2015. in 2015. suicides at Foxconn in workforce, more than China between July 2009 400,000 of whom work and October 2010. in the city of Shenzhen.

18 PORTRAIT SWISSQUOTE MAY 2016

n army of turquoise-colour- for a wide range of consumer goods, ready, ” explains Alberto Moel, an an- ed articulated arms work including cars, furniture, tablets alyst at Sanford Bernstein. Too jerky side by side in a vast and smartphones. and insufficiently precise to work Ahanger on the outskirts of Shenzhen with the delicate parts that go into in southern China. With clockwork an iPhone or iPad, the first foxbots regularity, their mechanical screw- the group were only good for simple jobs such driver hands move swiftly and deftly assembles 40% as carrying or lifting. up and down. They are foxbots, an of the electronic industrial robot developed by the But the second generation of Taiwanese group Foxconn. This par- products sold machines can perform more than ticular contingent is making iPhones : worldwide 20 tasks. What’s more, they can be around 10,000 foxbots have been put quickly reprogrammed to take on into service to build Apple’s flagship With a client roster that includes ever shorter production cycles. “ In device. Each can produce about Apple, Dell, HP, Amazon, Xiaomi, Sony the last 18 months, these machines 100 iPhones every day. Modelled on and Nintendo, the group assembles have been rolled out on a large the assembly lines used in the auto approximately 40% of the electronic scale, ” says Moel, with Foxconn now industry, foxbot workforces also products sold worldwide. It has set using between 10,000 and 30,000 in make iPads, Xboxes and Kindles. itself the target of replacing one- its plants. Two production facilities third of its workers with machines in the Chinese province of Shanxi, “ Our robots can weld, polish, paint, by 2020, and plans to build a facility not far from Beijing, have been set mould, assemble, label, package and in Chengdu in central China that will aside to build 10,000 of these robots test parts, ” says a spokesperson for be entirely staffed by robot workers. a year. the company, which is part of the The new plant will operate around Hon Hai conglomerate. “ Some of our the clock, lights off. The firm solved outstanding issues assembly lines are fully automated. ” by consulting with robotics experts Foxconn is at the forefront of a rev- “ Foxconn’s first attempts at auto- such as ABB. The Swiss-Swedish olution that is putting robots at the mation back in 2007 didn’t amount to company supplied Foxconn with centre of the manufacturing process much because the technology wasn’t RobotStudio, a software package

19 PORTRAIT SWISSQUOTE MAY 2016

that can create a 3D model to sim- ANALYST OPINION ulate the manufacturing process, enabling bugs to be dealt with before “ NO ONE ELSE COULD MANUFACTURE 50,000 TABLETS ” they happen in a real-life situation. Foxconn’s chief strength lies Moel. Foxconn is also having “ This made it possible for us to in its ability to handle very to contend with the emergence shorten our production times, espe- large orders, which sets it apart of a Taiwanese competitor, cially when introducing new prod- on the electronic suppliers Pegatron. “ Pegatron has taken ucts, ” explains Yuan Xiao Yun, head market. “ No one else could some iPhone manufacturing of automation research at Foxconn. manufacture 50,000 tablets at operations, ” says Arthur Liao, that price within a reasonable an analyst at Fubon Securities. timeframe, ” says Alberto Moel, The company has also lost time The company is also harnessing the an analyst at Sanford Bern- and money in its attempts to opportunities offered by big data, stein. The automation drive of diversify. “ It made a few poor accumulating vast amounts of recent years has also enabled choices, such as buying 4G information on its assembly line to the firm to boost productivity licenses in Taiwan or trying enhance production processes. “ We and margins. “ Foxconn has to build solar panels, ” says have set up a system that uses video achieved substantial savings Moel. Late March, it bought for on payroll costs. ” $3.5 billion a two-thirds stake cameras to gather data automatical- in Sharp, a Japanese TV manu- ly, ” says the spokesperson. “ Com- However, the company is overly facturer. Liao still recommends puters constantly analyse the infor- reliant on about 15 or so clients. buying Foxconn shares. “ The mation to spot the slightest error “ Apple alone accounts for half firm’s valuation is extremely on the lines. Results are displayed of its revenues, ” points out low. It can only go up. ” on monitors and sent to managers’ smartphones. ” with IHS Technology, an economic in- Foxconn is betting heavily on robots Foxconn is additionally benefitting telligence agency. Guangdong province because it has to make up for a huge from the fact that most of its plants is set to spend 943 billion yuan (140 staffing shortage. “ In 2012, for the are located in the Pearl River Delta billion swiss francs) between now and first time, China’s labour force actu- in southern China. “ This region has 2018 to build up this sector. Its capital, ally shrank by several million people, ” become a global hub for the develop- Guangzhou, wants its factories to be says Zhang. “ This demographic shift ment of industrial robots, especially 80% automated by 2020. China recently is the result of an ageing population in electronics, ” notes Jan Zhang, an overtook Japan to become the world’s and the single-child policy. ” Another expert on the manufacturing sector largest market for industrial robots. reason for the push towards automation is that young people are turning away from unpleasant, poorly-paid jobs in the electronics sector.

MISTREATING EMPLOYEES

Foxconn was in the news are exposed to many toxic Guangzhou wants in 2010 as 21 of its workers substances, including copper, its factories to be killed themselves in the nickel and cyanide. More- 80% automated space of just over a year over, they are under con- because of poor wages and stant, paranoia-inducing by 2020 inhuman working condi- surveillance, especially those tions. One employee actually living on the firm’s huge committed suicide after Shenzhen campus. Foxconn The group, which has been heav- losing an iPhone 4 prototype. also regularly hires minors, ily criticised for failing to provide The crisis forced Foxconn counting them as interns decent working conditions (issues to hire thousands of psy- and paying them less than include long working hours, hygiene chologists and install nets minimum wage. In 2010, Chi- and restrictions placed on workers), beneath the windows of its nese researchers published factories to prevent people a study based on interviews and which employs hundreds of from throwing themselves with 1,800 workers : 13% said thousands of workers in its facili- out. The situation has not they had fainted at work, 28% ties, has therefore started replacing improved much. Foxconn said they had been insulted people with robots. employees often put in more and 16% claimed they had than 60 hours a week and been physically punished. This approach is also enabling Foxconn to reduce its wage bill

20 PORTRAIT SWISSQUOTESWISSQUOTE MAYMAI 2016 NEWSCOM / KYODO

The humanoid robot, “ Pepper ”, built by Foxconn provides information to customers at the Japanese bank Mizuho (Tokyo, July 17, 2015). and thus improve its margins. The alone. “ Foxconn has always man- firm is under twin pressures. On the aged to anticipate the latest elec- one hand, its corporate clients are tronics trends, ” says Arthur Liao, an constantly cutting the prices of their analyst at Fubon Securities. “ It was electronic devices to hold onto their the first to foresee the success of positions on a saturated market. On notebooks, the smartphone explosion the other, lies the issue of the labour and the decline of the PC. ” The firm market : “ Chinese wages have risen hopes to repeat this feat with person- considerably in the last few years, ” al robots. 2354 says Zhang. “ According to the latest data, a worker in the manufacturing sector earns $7,500 a year, compared with $3,800 in Vietnam. ” A FROM ATARI CONSOLES TO IPHONES foxbot, meanwhile, costs between $20,000 and $25,000. Foxconn was created in 1974. for thin margins. ” Foxconn Its founder, Terry Gou, start- now builds two-thirds of Apple’s Foxconn’s ambitions go further still. ed out manufacturing electric products, along with Kindles, parts for Atari 2600 consoles. BlackBerrys, PlayStations The company has teamed up with In 2001, Intel asked the firm and Xboxes. Chinese e-commerce giant Alibaba and to build its motherboards. Japan’s Softbank to invest $118 mil- Contracts with Nokia, Dell, lion in a joint venture called SoftBank HP and Compaq followed soon Robotics. The company is marketing after. In 2005, the group began a personal robot called Pepper, which manufacturing Apple products and went on to become the is produced by Foxconn. The little hu- firm’s largest supplier, then the manoid machine can sense emotions, world’s largest manufacturer of play games, speak several languages electronic products. “ Foxconn and dance. consolidated a highly fragment- ed market and seized a majority Available in Japan since last year, share with its rock-bottom pric- ing, ” explains Sanford Bern- Pepper is being used to welcome stein analyst Alberto Moel. “ The and guide customers in several large economies of scale achieved stores. It could one day be used as a through its high-volume orders companion for elderly people living allow the firm to compensate

21 INSIGHT SWISSQUOTE MAY 2016 The growing popularity of private justice An increasing number of companies are turning to arbitration to settle disputes out of court. And Switzerland dreams of leading this new global market.

BY MARIE MAURISSE

ast year, the general public witnessed seller hasn’t delivered merchandise on time, what the sports media dubbed the or not at all, ” says Caroline Ming, executive “ Sauber saga ”, named after the Swiss director of SCAI. “ Sometimes it’s a quality LFormula One racing team. The case started issue or the buyer hasn’t paid the bill. ” back in 2014, when Sauber ousted from its line-up In a globalised world, where the Dutch driver Giedo van business relations take place der Garde, who was under between parties separated contract at the time. Van by an ever greater physical der Garde immediately op- distance, the reasons for posed the decision and took disagreement are legion. his case to the Swiss Cham- And it affects all industries, bers’ Arbitration Institution particularly raw materials, (SCAI) based in Geneva. “ In most construction, aerospace and Two months later, the arbi- cases, the property. Sometimes a country trators ruled in his favour, seller hasn’t stops its oil deliveries because and the driver raced for the delivered it’s at war. Or a laboratory 2015 Formula One season. discontinues its research for merchandise a pharmaceutical group. All Conflict can arise in any re- on time, or sorts of scenarios are out lationship, between friends, not at all. ” there. That’s why arbitration between spouses and, quite proceedings are increasingly Caroline Ming, naturally, between business executive director common, and Switzerland is partners. And in settling of Swiss Chambers no exception. In 2015, SCAI disputes, the business world Arbitration Institution (SCAI) reviewed about a hundred can come up with more cases, pointing to an increase effective solutions than couples counselling. of about 40% over the past ten years. SCAI brings To resolve differences as quickly as possible together seven Swiss Chambers of Commerce and on the best terms, companies seek help and Industry, including Basel, Bern, Geneva, from professional arbitrators. The disputes are Lausanne, Lugano, Neuchâtel and Zurich. But generally straightforward. “ In most cases, the most cases come from Geneva and Zurich.

22 INSIGHT SWISSQUOTE MAY 2016

Geneva’s predominance comes week to issue a ruling. We as no surprise, as the city had time to listen to the ar- is often described as the guments, witnesses and even birthplace of arbitration. The experts who explained the Alabama Room in its Town Hall technological challenges of is where the dispute between building ski lifts. It’s as sim- the United States and the Unit- “ The system ple as that. In a state court, ed Kingdom was settled during you can’t spend a whole week the American Civil War in the has proved on such a technical issue ”. 19th century. Switzerland’s useful, as Not to mention that once the reputation in arbitration comes it is fast, ruling is handed down, the from advantages that have his- only option for appeal is the torically played in the country’s inexpensive Federal Supreme Court. favour : discreet, neutral, prag- and matic in its laws and multilin- Caroline Ming and Vincent gual, with legislation available efficient. ” Subilia raise precisely these in English, German, French Vincent Subilia, arguments to boast Switzer- deputy director and Italian. Vincent Subilia, of the Geneva Chamber land’s arbitration services, deputy director of the Geneva of Commerce especially in other countries. Chamber of Commerce, makes The market is not yet very no secret about wanting to de- lucrative, but Vincent Subilia velop this sector to compete believes it has potential. “ It’s with London and Paris, already firmly estab- a gamble on the future, which also promotes lished in the international arbitration market. Switzerland’s role in big business. ” He refers to arbitration as “ private justice ” as it takes place behind closed doors. But in his view, there’s nothing opaque about it. “ The system has proved useful, as it is fast, inexpensive and efficient, while justice in courts of law can SMALL OUT-OF-COURT SETTLEMENTS be slow and potentially more costly. ” Most arbitration proceedings in the world take place in the utmost secrecy. But information can leak. Here are a few examples. Of course, the companies involved in a case have to advance litigation fees and pay arbi- UBS VS PUERTO RICAN CLIENT Glory Wealth. The dispute trators and lawyers, who can charge as much went on for years, but the as 500 Swiss francs an hour. But after all is Switzerland’s largest bank has final verdict has only recently said and done, experts say arbitration is still run into trouble not only in been announced. Flame less expensive. The Lausanne-based lawyer France and the United States. was ordered to pay nearly Boris Vittoz estimated in a 2014 report that for After being accused of giving $3 million to Glory Wealth poor investment advice to to offset its losses. a dispute amounting to 150,000 Swiss francs, a Puerto Rican client, UBS arbitration costs, under Swiss law, totalled opted to put its faith in a local IRAN VS TURKEY 68,400 Swiss francs, compared with 88,600 arbitration court rather than Swiss francs for a traditional trial in Geneva. stand before a judge. In Feb- Arbitration is not just for This option also means that arbitrators, who ruary 2016, the terms of the companies. Turkey, which are experts in the most technical fields and agreement awarded the client buys more than 10 billion a settlement amounting to are available immediately, can be brought in. cubic metres of gas from 1.43 million Swiss francs. Iran every year, filed its They can grasp complicated issues quickly, complaints of high prices such as gas prices. On average, arbitration FLAME VS GLORY WEALTH and distribution problems proceedings with SCAI only last nine months. with the International Court In 2011, the Swiss shipping of Arbitration. The ruling Jean-Paul Vulliéty, lawyer, arbitrator and and trading company Flame recently handed down de- professor from the University of Geneva, has failed to deliver all of the clared Ankara the winner, cargoes of coal stipulated in ordering Tehran either to recently worked on a case involving the con- its agreement with the Singa- deliver more gas or refund struction of ski lifts. He tells us, “ We had one pore-based shipping company some of the money paid.

23 SWISSQUOTESWISSQUOTE MAYMAI 2016 ANALYSIS THE POINT OF VIEW OF SPECIALISTS

INVESTOR INTERVIEW

“ Swiss pharmaceutical companies will benefit from the Trans-Pacific Partnership ” The Trans-Pacific Partnership (TPP), a deal bringing together twelve countries, is the most ambitious trade agreement ever signed. And Swiss companies stand to gain from it, says Michael Wan, an analyst at Credit Suisse. BY CLÉMENT BÜRGE

The Trans-Pacific Partnership (TPP), signed ceremoniously from one day to the next, will gain access to a vast on 4 February, 2016, covers 12 nations and 800 million international market including the United States, people, making it the largest regional deal of its kind. This Japan and even Latin American countries. Due to historic multilateral – free trade agreement has yet to be its geographical location, Vietnam represents the ratified by its participating members – the United States, ideal gateway into China for foreign investors. Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New They’ll be rushing to Ho Chi Minh City. Zealand, Canada, Mexico, Chile and Peru – but has already sparked controversy. Some view it as a means to boost How will the deal affect superpowers such as Japan growth and the global economy, while others believe the and the United States ? treaty will destroy thousands of jobs in some sectors. All The TPP will have a minimal impact on GDP that we know for now is that the companies operating in growth, about 2% over 10 years. But the United these countries will have to adapt to a new economic order. States engaged in these talks for more than just economic reasons. The treaty also holds Which nations will benefit the most from the geopolitical significance for Washington as it Trans-Pacific Partnership ? will improve the economy of the United States’ Vietnam will be the big winner in this deal. Our trade partners and bolster U.S. influence in research shows that the treaty will contribute these regions. nearly 10% to the country’s GDP growth over 10 years, based on the most optimistic scenario, Which economic sectors will the agreement or 5% under the most pessimistic assumptions. impact most ? Malaysia will also gain significantly, with its The first is manufacturing. In Vietnam, the GDP expected to climb 5%. agreement will mainly drive the textile and electronics industries, while in Malaysia electron- Why will Vietnam and Malaysia benefit more than ics and palm oil will benefit. Japanese and other countries ? American carmakers will also gain significantly, These countries are in a position of development but in the long term, as car tariffs will gradually enabling them to secure the biggest advantages be lifted over several years. And it’s worth noting from the TPP. They had signed very few free – that the TPP will also upset the businesses that trade agreements before this deal and now, work with governments.

24 ANALYSESANALYSIS SWISSQUOTESWISSQUOTE MAYMAI 2016

NUMBERS

million Number12 of member countries in the Trans-Pacific Partnership (TPP) : United The800 number of consumers States, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, covered by the agreement, Canada, Mexico, Chile and Peru. i.e. twice the population of the European Union.

The40% market share held by the 12 TPP member countries in the world economy.

The18,000 number of tariffs to be removed or reduced under the agreement.

Will the TPP have a negative impact on Will Swiss businesses also have better access these companies ? to government contracts ? The agreement will end the preferential treat- Definitely, as the TPP will do away with prefer- ment given to national companies in several ential treatment granted to firms that work member countries. All companies will eventually closely with governments. Swiss companies, have the same chances of winning a government such as SIKA and LafargeHolcim in construction, contract. Private construction companies in the will be able to sell their goods and services to United States will now fight on a level playing Asian governments for the first time without field with their Vietnamese counterparts, having to put up with unfair competition. state-owned or not. Construction and oil and gas companies, such as Petronas in Malaysia, Why is there so much controversy surrounding the deal ? will face tougher competition. Negotiations were handled with the utmost secrecy. Many parliaments, even in participating How will the agreement influence Swiss firms ? nations, had no idea about the advancement or Swiss companies such as Nestlé and Novartis terms of the deal. That naturally gave rise to will boost their investment in TPP member strong opposition. Furthermore, the TPP could countries to benefit from their fresh access even have a negative impact on some industries, to a vast multinational market. Nestlé could such as farming in Japan, Canada and New manufacture its products in Vietnam and send Zealand. But if the treaty is ratified, it’ll be them directly to Japan and the United States interesting to see which other Asian countries without having to pay any tariffs. Swiss will try to join it. Indonesia would be an appeal- pharmaceutical companies, which already ing candidate, as would South Korea and, of have extensive operations in the region, will course, China. enjoy enhanced intellectual property protection. They will also benefit from policy on generic drugs, with patent protection for the original products extended from five to Michael Wan eight years. This will drive up their revenue Analyst and TPP specialist, in these countries. Credit Suisse, Singapore

25 ANALYSIS SWISSQUOTE MAY 2016

THE QUESTION Is the Swiss watch industry mired in a crisis ?

Falling demand from Asia is taking a toll on Swiss watchmakers. As the industry undergoes profound changes, will the country's biggest watch manufacturers be able to innovate and stay afloat ? Some experts are more optimistic than others. BY MARIE MAURISSE

RENÉ WEBER XAVIER COMTESSE JIA XIAN SU Financial analyst Co-founder of the think Watch expert and journalist at Vontobel tank "Watch Thinking" based in Singapore

This luxury goods ana- This watch industry This expert says the lyst blames the disap- specialist says it's the market is becoming pointing performance beginning of the end saturated in Hong Kong of Swiss watchmakers for Swiss watchmakers, and Singapore, and that on the current economic who have failed to brands are no longer situation. innovate and are now able to make a profit on falling behind smart- their local investments. I wouldn't call it a crisis. After all, watches. 2015 was the third-best year on The luxury watch industry is clearly record for Swiss watch exports. Crisis ? Without a doubt ! And for mired in a crisis. Growth has slid But falling demand from Hong one simple reason : watchmakers from double digits to zero in just a “Kong—the biggest market for Swiss still insist on making mechanical few years, mainly because of lower watches, accounting for 15% of watches, even though in today's “demand from China and uncertain- exports—has dealt a blow to the “world you can have the time sent ty regarding the global economy. industry. The preferred travel to you electronically ! In the final But in my opinion, the problem destinations of Chinese tourists quarter of 2015, smartwatch sales has less to do with falling sales are also changing, and this has af- surpassed Swiss watch sales for and more to do with excessive fected sales, too. After the terrorist the first time ever. And it's just the investments, such as boutiques in attacks in Paris and the launch of beginning. Soon, we're going to see popular locations, factories teeming biometric passports in China, fewer new watches that feature artificial with workers and vast distribution Chinese consumers are coming intelligence. Eventually, the smart- networks. The excess is particu- here. We expect sales to decline watch will become like a personal larly flagrant in Hong Kong, where during the first half of 2016, but we assistant allowing users to tap into the watch industry is undergoing a are optimistic for the second half the cloud, big data and other smart marked contraction. Last year TAG of the year. All in all, Swiss watch objects to access information, Heuer, Jaeger-LeCoultre and Cartier exports should be stable in 2016. analyses and personalised advice… closed shops in Hong Kong's in addition to the time. The problem Causeway Bay district. What's is that this new smartwatch proba- more, mature luxury markets like ” bly won't be made in Switzerland... Singapore are becoming saturated. 26 ” ” Invest in the most sustainable Health Care Fund: The Ronald McDonald Kinderstiftung ™.

The Ronald McDonald Kinderstiftung is running seven parents’ houses in Switzerland. These houses are close to children’s hospitals: in Basel, Bern, Lucerne, St. Gallen, Bellinzona and Geneva. They provide a home away from home for parents so they can stay close to their seriously ill children, under the motto “Closeness helps healing”. To date over 14,200 families have spent a total of 116,000 nights in the Swiss Ronald McDonald Houses.

Help us with your donation. Thank you. www.ronaldmcdonald-house.ch

”

800_003_16_004_InsRMHC_Swissquote_200x260_e.indd 1 25.01.16 15:55 SUPERFOOD SWISSQUOTE MAY 2016

28 SUPERFOOD SWISSQUOTE MAY 2016

DOSSIER

Feature by Clément Bürge, Ludovic Chappex, Superfood : Catherine Cochard, Benjamin Keller, Grégoire Nicolet, Jean-Christophe Piot and Julie Zaugg the taste of tomorrow RECIPES FROM MULTINATIONALS

31 Infographic : Worldwide consumption of The health healthy foods is on the rise. food market Large companies are revamping 32 Interview with their product lines to take Julian Mellentin, advantage of the trend. director of the agency New BY LUDOVIC CHAPPEX Nutrition Business

34 Spotlight ith a market weighing in at more on fifteen than $700 billion a year, food big names W industry giants all want a piece of the health food pie. Organic, protein- and vita- 45 The healthy min-enriched, gluten-free or lactose-free, and ingredient combo the list goes on, the health food industry is now home to fierce global competition. 46 Functional foods for animals By shifting from traditional food manufacturing to health and wellness foods, multinationals 48 False advertising can not only generate higher margins but also, and empty and more importantly, meet the growing demand promises for more nutritional products. Studies show that more and more people in developed countries 51 Interview with, want to eat healthy food. Even more encouraging Patrick Denoux, is a Nielsen poll led in 60 countries which professor reported that 88% of those surveyed are pre- of psychology pared to pay more for healthier food. And that applies to all age groups. Consumers mainly 52 Food of want “ natural ” products, with a preference for additive-free food. CUBES © LERNERT AND SANDER / 2014 the future

29 SUPERFOOD SWISSQUOTE MAY 2016

But not everyone is fortunate enough to have Fédérale de Lausanne (EPFL) to develop solu- easy, regular access to fresh produce such tions at the crossroads between nutrition and as locally-grown fruit and vegetables. For pharmaceuticals. Research and clinical trials example, city dwellers want to eat as healthy have been conducted in areas ranging from as possible, but have limited access to fresh Alzheimer’s and other brain diseases to met- food. This presents large food manufacturers abolic and gastrointestinal disorders. Through with a golden opportunity. It therefore comes the Nestlé Institute of Health Sciences, the as no surprise that this market is currently Vevey-based firm has in recent years made a exploding in China, where sales will soon number of acquisitions specialised in medical exceed numbers observed in the United States. nutrition. In its latest major deal on 23 February The London-based market research firm Euro- 2016, Pronutria Biosciences was picked up monitor estimates that the “ health and well- for 42.3 million Swiss francs. The U.S. start- ness ” food and beverage market amounted up develops products that restore amino-acid to $117 billion in China in 2015 and will reach balance to treat muscle disorders. Nestlé $191 billion in 2020 – versus $168 billion in hopes its investments will pay off by zeroing the United States – suggesting average in on the ageing population and its associated annual growth upwards of 10%. ills, including diabetes, high cholesterol and heart conditions. The U.S. soft drink Other large food manufacturers are opting giant PepsiCo for a less medicalised approach to taking completely turned its advantage of the healthy-eating movement by focusing on wellness. For example, the U.S. strategy around by soft drink giant PepsiCo completely turned its adding a line of fruit strategy around by adding a line of fruit juice juice containing no containing no sugar or additives. sugar or additives And we mustn’t forget the current fixation on proteins, now available in all types and forms, This trend can be found on supermarket especially the “ healthy ” snacks popular with shelves with the influx of low-fat, low-sugar the 20 to 30 age group. “ That is without a and low-salt alternatives. Then there are the doubt the latest craze, ” says Chris Lee, direc- “ functional ” or “ fortified ” foods, lumped tor of the Vitafoods Europe Conference, one together in the “ medical nutrition ” segment, of the largest events focused on functional that have flooded the market. Large food food, set to take place in Geneva from 10 - groups such as Nestlé have announced that 12 May 2016. they aim to remove from their products any ingredients with a negative impact on health, “ The trend is biggest in the United States but starting with salt – public enemy No. 1 as the is also emerging in Europe and Asia, markets cause of cardiovascular diseases – and to add with huge growth potential, ” the expert says. ingredients that play a positive role (fortified Many of today’s consumers now view proteins foods, micronutrients such as vitamins, iron, – originally known for their use in dietary sup- zinc, etc.). When presenting Nestlé’s annual plements taken by athletes who want to build earnings on 18 February 2016, CEO Paul Bulcke muscle, such as the famous protein powders made a point of highlighting the efforts the firm for body builders – as healthy ingredients. has made – and will be making – in research Among the advantages offered by proteins is and development. their role in weight loss and weight management and in satisfying the body’s daily energy Nestlé is in fact leading that market. Shifting requirements. That’s very convenient, as its efforts into higher gear in its rivalry with insects, often seen as the food of the future, Danone in the functional food business, the are full of proteins (see p. 52). And a number Swiss group created the Nestlé Institute of of start-ups have already tapped into that Health Sciences in 2010, a research unit set market. So what’s up next ? The insect-filled up on the campus of the École Polytechnique Kit Kat ?

30 SUPERFOOD SWISSQUOTE MAY 2016 The health food market Retail sales worldwide (Packaged food and beverages)

Naturally healthy food Fortified / functional food

$271.4bn $337.6bn $258.4bn $329.4bn

Packaged food and beverages that have been Packaged food and actively “ enhanced ” beverages containing a during production by add- naturally occurring sub- ing ingredients to offer stance that offers health health benefits and that benefits. Examples : are marketed as such. high-fibre food, olive oil Example : orange juice or natural mineral water. fortified with Omega-3. 2015 2020 2015 2020

“ Better for you ” food Food intolerance

$149.6bn $156.4bn $12.3bn $16bn

Packaged food and beverages from which less healthy substances Packaged food and (fat, sugar, salt, car- beverages designed to bohydrates) have been look and taste like food actively reduced during that normally contains a production and that substance that can cause are marketed as such. intolerance or allergies. Example : sugar-free Examples : gluten-free soft drinks. bread or lactose-free milk. 2015 2020 2015 2020

“ Health and Wellness ” Organic food packaged food and beverages

$881.9bn $34.9bn $42.6bn $726.6bn

Packaged food and beverages that have been certified “ organic ”, i.e. produced without pesticides, fertilisers or Total retail GMOs, etc., and that are sales of each marketed as such. category 2015 2020 2015 2020

BY BENJAMIN KELLER | DESIGN : CAROLINE FISCHER Source : Euromonitor 31 SUPERFOOD SWISSQUOTE MAY 2016

“ PEOPLE HAVE BECOME REALLY OBSESSED WITH PROTEIN ”

Health food expert and director of the agency New Nutrition Business, Julian Mellentin analyses the latest trends in the nutrition industry.

BY JULIE ZAUGG

What are the most successful What other companies are So there’s no market for pure and functional foods ? joining in ? simple functional foods ? Demand is highest for functional General Mills has done a very good There’s a niche market for this type food that contains natural ingredi- job of adapting its offer to match of medical food, for example people ents with scientifically proven health its customers’ desire to eat healthy with diabetes or high cholesterol. benefits, such as almonds, which are food, as have Pepsico and Mondelez. But it’s a high value-added market, good for the heart. Consumers aren’t There’s also a host of small com- typically with low volumes. looking for functional foods when panies that do exclusively organic they go to the supermarket. They or gluten-free food. Many of them What about the organic food just want to buy healthy products. have actually been picked up by large market ? Does it have potential ? groups. For example, General Mills The size of the market tends to be Which companies are profiting bought the organic brand Annie’s, over-estimated. It remains a niche the most from this trend ? and Campbell’s acquired the organic market for high-income customers. Dairy firms that sell probiotics are baby food line, Plum. On the opposite Only 3% to 4% of consumers buy definitely the leaders in this market. end of the spectrum are companies strictly organic. Others buy organic Danone, with its brands Actimel and like Unilever, which have failed to food occasionally because they Activia, and the Japanese group seize the opportunities presented like the packaging or the taste of Yakult have been selling these types by this new market because they’re a specific product. The only excep- of products for 20 years. These two too big and lack entrepreneurial drive. tion is baby food. Organic baby and brands alone generate $6 billion As for Nestlé, it is struggling with an toddler food brands, such as Annie’s, in sales per year with probiotics. excessive focus on the scientific and Happy Family and Plum, have grown Consumers are generally more at- medicinal aspects of its products, remarkably, driven by mothers who tracted to products that help solve a overlooking what consumers want, want to feed their child healthy food. recurring, day-to-day problem, such which is generally natural products. The phenomenon can be seen in both as poor digestion or susceptibility western countries and large cities to colds. They’re less interested in in China. products that promise long-term “ Large groups have benefits, such as foods that claim also learnt to create Can the desire to eat healthy be to reduce cancer risk or extend life the illusion that found around the world ? expectancy. That also explains the Definitely, it’s truly a global phenom- popularity of gluten-free products, their products are enon. Some countries, such as Ger- whose main draw is that they’re made using artisanal many, have gone as far as passing good for the stomach day to day. processes. ” stricter regulations on the health

32 SUPERFOOD SWISSQUOTE MAY 2016

only 30% to 40% of customers like small brands. The rest are quite happy with mass-produced products. Large groups have also learnt to create the illusion that their products are made using artisanal processes. Most have bought small brands and left them a great deal of independence. That’s how they retain the elements of craftsmanship that have made them a success. That’s the strategy taken by General Mills with Annie’s or Campbell’s with Plum. Having a vast portfolio made up of a multitude of small brands also gives consumers the chance to person- alise their food choices based on individual preferences. One person will choose to eat organic and gluten-free food, while another will only eat foods that contain no lactose ORACLE OF or trans fat. NUTRITION

Julian Mellentin heads the research “ Consumers firm that he founded in 1995, New Nutrition look things up Business. With online and offices in the United Kingdom, France, form their own New Zealand and opinion about the United States, his agency advises the benefits of companies that want to gain an edge in the a given food. ” nutrition industry.

Functional food has drawn a lot of criticism in recent years due to benefits promised by these products. weight. What has really taken off some of the exaggerated claims. This can have a negative impact on in recent years are plant proteins, Has that affected sales ? their sales. But that’s less common less expensive and perceived as People in some countries, such as since the Internet, as consumers no more eco-friendly. This sector has the Netherlands or Germany, have longer depend on the product label generated significant investment, been very receptive to this criticism. for information about its benefits. like the start-up Beyond Meat, which But consumers tend to ignore it else- produces fake chicken made from where. They look things up online What are the latest trends on the soy and pea protein with backing and form their own opinion about the functional food market ? from Bill Gates [read p. 52]. benefits of a given food. Companies People have become really obsessed have also learnt not to make claims with protein over the past five years, How are large industrial groups that they can’t prove. They now limit especially in the United States. And responding to consumers’ desire themselves to mentioning that a it’s not unfounded. A pan-European for fresh, locally-produced food ? food contains a certain ingredient study in 2010 called Diogenes Isn’t it a difficult challenge for with well-known health benefits, showed that a high-protein diet them to overcome ? rather than promising that their was the most effective way to lose You first have to understand that product can cure a given ill.

33 SUPERFOOD SWISSQUOTE MAY 2016 Spotlight on fifteen big names Competition is intensifying between multinationals in the health food industry. Here’s our selection of the key players, along with analysts’ recommendations.

BY CLÉMENT BÜRGE AND JULIE ZAUGG

Gluten-free, Organic food Fortified or lactose-free or “ functional ” food additive-free foods

CAMPBELL SOUP COMPANY The company decided to halve the The stubborn visionary salt content of its soups in 2009. That was another failure. People “ Campbell’s Soup II ” (1969) by the artist Meals for diabetics, salt-free didn’t like the taste, and the project Andy Warhol, an soup, ingredients free of col- was abandoned in 2011. Now ironic tribute to the ouring – Campbell’s has tried Campbell’s has taken a new, more U.S. firm’s soup cans (Dulwich Picture everything in the functional conventional initiative. “ The ingre- Gallery in London, food sector. dients have been simplified, the 19 June 2012). colourings and additives have been eliminated, and organic product MARKET CAPITALISATION : $19.84 Billion lines have been introduced, ” says REVENUE IN 2015 : $8 Billion Erin Lash, an analyst at Morningstar. EMPLOYEES : 18,600 WHOLE FOODS HEADQUARTERS : CAMDEN (NEW JERSEY) The company has also made sev- The delights of a natural FOUNDED : 1869 eral acquisitions. In 2012 it bought foods supermarket Bolthouse Farms, which makes fruit juices, bags of pre-cut carrots and This line of food stores sets n 1997, Campbell’s launched açaí berry-based products, and a itself apart from the competi- I a line of subscription-based year later it bought Plum Organics, tion through the quality of its home-delivered meals called In- which specialises in healthy food products. But its prices are telligent Quisine. Targeting people for children. “ These acquisitions al- too high. with diabetes and cardiovascular lowed Campbell’s to gain know-how problems, this range of products in the functional food sector, which MARKET CAPITALISATION : $10.34 Billion consisted of dishes designed to the company was able to apply to REVENUE IN 2015 : $15.39 Billion lower cholesterol and sugar lev- the rest of its product mix, ” says EMPLOYEES : 85,000 els. But the brand, too far ahead Lash. But she also points out that HEADQUARTERS : AUSTIN (TEXAS) of its time, was removed from sale the company’s shares are slightly FOUNDED : 1980 one year later. overvalued at the moment. CPB

34 SUPERFOOD SWISSQUOTE MAY 2016 REUTERS / LUKE MACGREGOR

hopping at Whole Foods is McMillanDoolittle. “ Each store competition, its prices are too high, S like going to an amusement is very well established within its which limits the number of con- park for adults. Mountains of local community. ” And the results sumers it can target, ” explains Phil fresh vegetables are piled along- are obvious : its sales per square foot Terpolilli, an analyst at Wedbush side cheeses from the world over amount to $990, the highest such Securities. To thwart the critics, in and a vast selection of meats figure amongst US supermarkets. 2016 the company will open a chain prepared by a local butcher. With of smaller stores, called 365, which this staging and the quality of its will charge lower prices. “ Histor- products, the company has suc- “ Whole Foods is ically, investors have had inflated ceeded in creating a long-lasting also trying to convey expectations of Whole Foods, ” says relationship with its customers environmentally Stern. “ The company’s changes to – which is relatively unique in the friendly values that become more accessible to a larger food distribution industry. “ Whole connect with consumers. ” number of customers are in full Foods is also trying to convey swing. It’ll take time, but I think the environmentally friendly values Despite this success, analysts company will successfully manage that connect with consumers, ” criticise the prices charged by this transformation. I recommend explains Neil Stern, an analyst at Whole Foods. “ Compared to the purchasing its shares. ” WFM

35 SUPERFOOD SWISSQUOTE MAY 2016 NEWSCOM / AGENCIA EL UNIVERSAL GDA PHOTO SERVICE NEWSCOM / AGENCIA EL UNIVERSAL GDA

Open house event on the digestive system, sponsored by Danone and its Activia brand. (Mexico City, July 2010)

DANONE no one had yet heard of probiotics. Danone’s Nutricia division has A pioneer in Today, it is one of the French launched food supplement drinks for functional foods company’s flagship products. people suffering from malnutrition “ Alone, it’s worth €2.5 billion, ” (FortiFit, Nutrison) and Alzheimer’s Danone’s little Actimel bottles says Jon Cox, an analyst at Kepler disease (Souvenaid), and for infants have been attracting consumers Cheuvreux. It has since been allergic to milk (Neocate). These for years. The company has renamed Activia and was joined in products have positioned the French expanded its product line to 1997 by Actimel, which contains group as a leader in the functional include products for people lactobacillus bacteria meant to foods market. “ The sector showing suffering from malnutrition strengthen the body’s natural de- the strongest potential in terms of and Alzheimer’s disease. fences. More recently, the line was revenue is infant nutrition, ” says expanded with Densia, a yoghurt Jon Cox. “ Danone has prestige as high in calcium that promotes bone a European brand, especially with MARKET CAPITALISATION : €41.6 Billion density, and Danacol, a dairy Chinese mothers who are looking for REVENUE IN 2015 : €22.4 Billion product that lowers cholesterol. top-quality powdered milk for their EMPLOYEES : 99,781 babies. ” The Aptamil and Nutrilon HEADQUARTERS : PARIS brands are enormously popular. FOUNDED : 1919 “ Danone Probiotics sales, however, have has prestige been languishing in recent years. “ By forbidding Danone in 2010 to hen Danone launched its Bio as a European promote the health benefits of these W product in 1987 – a little brand. ” products, the European Food Safety bottle of milk containing bifidus Jon Cox, an analyst at Kepler Cheuvreux Authority dealt them a blow, ” says (bacteria that facilitate digestion) – Cox. (For more, see p.48.) BN

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MEIJI HOLDINGS KELLOGG’S eggs, ” explains Warren Ackerman, A brand for seniors The new convert to an analyst at Societe Generale. This healthy breakfasts trend became more marked with Meiji probiotic yoghurts have the emergence of millennials, who conquered the Japanese mar- Americans are abandoning preferred healthy GMO-free foods ket thanks to their digestive their cereal bowls, forcing with whole grains, and the falling qualities. The company is now this US group to reinvent popularity of low-fat products looking to sell them worldwide. itself. such as Special K.

MARKET CAPITALISATION : ¥1429 Billion MARKET CAPITALISATION : $26.98 Billion REVENUE IN 2014 : ¥1161 Billion REVENUE IN 2015 : $13.5 Billion EMPLOYEES : 26,854 EMPLOYEES : 33,577 Kellogg’s HEADQUARTERS : TOKYO HEADQUARTERS : BATTLE CREEK (MICHIGAN) is now FOUNDED : 1906 FOUNDED : 1906 in full remission y 2025, one in three people in ellogg’s’ worries began in B Japan will be over the age of K 2008. “ American consumers 60. Meiji hopes to make the most gradually turned away from the of this demographic trend by tar- classic cereal-based breakfast, But the company took a new initia- geting seniors who are concerned preferring to consume protein in tive in mid-2015. “ Kellogg’s launched about their health and their budget. the form of yoghurt, bacon and the Origins product line, which has The company first launched two no artificial colours, flavours, or probiotic yoghurts – LG21 in 2000 added sugars, ” says Ackerman. “ The and R-1 in 2009 – promoting their group also transformed Special K role in facilitating digestion and into a brand associated with a strengthening the immune system. healthy lifestyle, adding varieties Last year, the century-old group with no gluten, lots of protein, and launched a new yoghurt variety, REUTERS / THOMAS PETER featuring popular grains such as PA-3, which contains bacteria that quinoa. Plus it improved the quality can metabolise purine. Purine is of its ingredients, for example by a nucleic acid found in red meat, increasing the number of berries per fatty foods and beer. It causes gout, box. ” At the same time, Kellogg’s a type of joint inflammation often expanded its offering of cereal bars, seen in the elderly. biscuits and shakes, which can be consumed on the go and throughout On the market since 1995, the Mei the day. As a result, the US compa- Balance line includes high-calo- ny is now in full remission. Its six rie jellies, mousses and juices for main cereal brands have seen 4% seniors suffering from malnutrition. growth in the last quarter of 2015. Meiji is a solid investment. In the “ We recently changed our recom- first nine months of the current mendation from ‘sell’ to ‘hold’, and financial year, the company turned we’re keeping our eye on Kellogg’s, ” a profit of ¥59.3 billion, up 38%. It says Ackerman. K has a dominant position on the Japanese probiotic yoghurt market and expects its sales in this sector to increase from ¥165.4 billion in 2015 to ¥180 billion in 2018. A little break for The company’s main challenge is Tony the Tiger, the conquering new markets. Its primary famous mascot for target is the United States, but Kellogg’s Frosties cereal (International its brands suffer from a lack of Green Week in Berlin, visibility there. 2269 18 January 2013).

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WHITEWAVE FOODS Nutchello drink that Silk recently As a result, ADM is now marketing The lactose-free introduced and that comes in a soy protein concentrate as well champion caramel or chocolate flavour, ” as seasonings that render beef and says the analyst. chicken more flavoursome and juicy. This US company’s soy milk-, The company has also developed an coconut milk- and cashew WhiteWave Foods also has two of additive, xanthan gum, which pre- milk-based margarines and the most popular organic brands in serves the texture of salad dressing yoghurts are all the rage. the United States – Horizon (milk) even when the fat has been elimi- Analysts say it’s an and Earthbound Farm (fruits and nated. And that’s only the beginning. excellent investment. vegetables) – as well as Vega, a line “ We are currently working on over of protein bars and drinks for ath- 700 projects, ” announced Vince letes. “ WhiteWave has an excellent Macciocchi, President of ADM’s Wild MARKET CAPITALISATION : $7.12 Billion brand portfolio with organic growth Flavors unit, to the press. We are REVENUE IN 2015 : $3.9 Billion of 7 to 9% and rising margins, ” says especially excited about the devel- EMPLOYEES : 3,800 Sean Naughton. “ It’s a very good opment of a fruit juice with natural HEADQUARTERS : DENVER (COLORADO) investment – especially since the colourings and flavourings which FOUNDED : 1977 share price is low. ” WWAV incorporates our protein solution Clarisoy for the first time. ” But these new products will only have a oconut, soy, almond and long-term impact on the company’s C cashew are just some of performance. Its revenue depends the ingredients used by the US ARCHER DANIELS MIDLAND more on corn processing, a sector group WhiteWave Foods to produce Giving flavour to whose profits are declining. ADM lactose-free milk, margarine and healthy products yoghurt. In the United States, these products are sold under This company develops fla- the Silk and So Delicious brands. vours to improve the taste of The brand name in Europe is Alpro. healthy foods whose flavours “ Plant-based dairy products are are altered by adding vita- a fast-growing category, ” says mins or eliminating fats. Sean Naughton, an analyst at Piper Jaffray. MARKET CAPITALISATION : $21.65 Billion REVENUE IN 2015 : $67.7 Billion

“ It’s a EMPLOYEES : 32,300 SPORT REUTERS / USA TODAY very good HEADQUARTERS : CHICAGO (ILLINOIS) investment – FOUNDED : 1902 especially or some time, Archer Daniels since the F Midland (ADM) confined itself to purchasing crops and transform- share price ing corn and other oil-producing is low. ” plants into biofuel, chemical prod- Sean Naughton, an analyst at Piper Jaffray ucts and animal feed. But in 2014, the company decided to change its “ Consumers are looking for sustain- trajectory, buying for the price of able products, and they feel better $3 billion the Swiss company Wild avoiding lactose. ” WhiteWave Foods Flavors, a firm based in Zug that The ritual celebratory brands are well–positioned in this develops flavours and seasonings. Gatorade shower for baseball player market. “ They are well-known to With this acquisition, ADM worked Danny Valencia of the buyers – you can find them easily in to improve the taste of healthy Oakland Athletics, both small shops and supermarkets foods, to which fibre, vitamins and after his team’s victory against the Houston – and they’re constantly innovating other nutrients are often added, Astros (Oakland, with new products, such as the which modifies them. 9 August 2015).

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PEPSICO themselves to snack from time to of a line of fresh-squeezed juices, ” The healthy beverage time, but drinking soda has become says Howard Telford, an analyst at challenge taboo. ” A Euromonitor study found Euromonitor. PepsiCo is also betting that consumers spent 49% of their heavily on Gatorade, which has Consumers are turning away soft drink budget on healthy drinks in dominated the sports drink sector from sodas, which they find too 2013. Water, ready-to-drink tea and for several years. The company unhealthy. PepsiCo is laying fruit juices will generate 65% of new announced that it will launch or- its bets on coconut water and sales by 2018. As a result, PepsiCo ganic Gatorade products in 2016. In fruit juices. has had to react quickly to seize addition, its coconut water brands, this new market and make up for the ONE and Kero-Coco, are selling very losses in its traditional brands. well in North and South America. MARKET CAPITALISATION : $148.34 Billion REVENUE IN 2015 : $63.06 Billion The company Although its revenue still depends EMPLOYEES : 263,000 announced that it greatly on unhealthy products, HEADQUARTERS : NEW YORK will launch organic PepsiCo’s efforts have been con- FOUNDED : 1965 Gatorade products vincing to analysts, who believe in 2016 that, over the long term, the company will overcome the challenges utrition and public health The US company has acquired and confronting the soda industry. “ It N experts all agree : soda is launched a complete line of drinks will continue its policy of acquir- the “ new tobacco ” and the public regarded as healthy. One of the ing products whilst polishing its enemy no. 1 that governments have most innovative lines is Naked traditional brands, working on their resolved to eliminate. “ Sugary drinks Juice, a range of fresh juices that marketing, ” says Telford. “ The are seen as even more unhealthy played an important part in making healthier drinks do generate higher than snacks, ” says Ali Dibadj, an bottled vegetable juices popular. profit margins, ” says Dibadj, who analyst at Bernstein Research. “ These drinks will gain even more recommends acquiring shares in “ People believe they can still allow popularity in 2016 with the launch the company. PEP

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NESTLÉ pharmaceutical group Baxter to several products that improve the A functional foods develop such products. This attempt health of its consumers, such as the leader folded in 1996 with the dissolu- probiotic yoghurt LC1, which helps to tion of the venture. But Nestlé did strengthen the immune system. The Nestlé is developing functional not throw in the towel, investing Swiss company has also reduced the foods that blur the line between several hundred million Swiss salt, sugar and fat content of several food and medicine. It’s a bet francs in start-ups specialising in of its foods. For example, it launched that has paid off. the food of the future. In 2007, the the ice cream line Skinny Cow, whose company shifted into high gear, products have 30% less fat than acquiring the medical nutrition divi- those of its competitors. Nestlé is MARKET CAPITALISATION : $230.84 Billion sion of Novartis for 3 billion Swiss also working on developing Fostrap REVENUE IN 2015 : CHF 88.8 Billion francs. In 2012, it announced the Gum, a chewing gum that helps fight EMPLOYEES : 335,000 opening of the Nestlé Institute of against kidney disease. More re- HEADQUARTERS : VEVEY Health Sciences (NIHS), a research cently, the company announced the FOUNDED : 1866 institute with its headquarters on development of a kind of “ functional the EPFL campus. With a 10-year food Nespresso machine ” that budget of €415 million, its objective will dispense a made-to-measure n 1986, Nestlé believed that is to “ invent foods that prevent the daily dose of vitamins and minerals I functional foods were the occurrence of disease, ” according to compensate for overeating or future of the food industry. At that to its director Emmanuel Baetge. nutritional deficiencies. time, the Swiss multinational had As it awaits the first concrete created a joint venture with the US results, Nestlé is counting on Nestlé invested several hundred million Swiss francs in start-ups specialising in the food of the future

To analysts, it makes sense to wa- ger on the Nestlé functional foods division. “ This family of products has seen growth that is faster than the rest of the food industry, showing better profit margins, ” says Jon Cox, an analyst at Kepler Cheuvreux. And the Swiss company seems bent on taking advantage of this fact : “ Nestlé is bound to withdraw from products that offer no added value to customers and which cannot command higher prices, ” said its CEO Peter Brabeck, who pointed out that all of the company’s pasta factories had been closed and that it would only retain one production site for its tomato sauce. NESN

A scientist at work in the labs of the Nestlé Institute of Health Sciences, at the Swiss Federal Institute of Technology in Lausanne

NESTLÉ (11 March 2013).

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UNITED NATURAL FOODS The luxury supplier NEWSCOM / KYODO This company supplies US organic supermarkets, offering them a wide range of natural products.

MARKET CAPITALISATION : $2.06 Billion REVENUE IN 2015 : $8.2 Billion EMPLOYEES : 8,700 HEADQUARTERS : PROVIDENCE (RHODE ISLAND) FOUNDED : 1996

A goat-shaped soap from the brand Yakult nited Natural Foods func- Honsha, available U tions as the “ lung ” of for sale from natural food supermarkets like autumn 2014 to Whole Foods and Trader Joe’s. autumn 2015, for the Chinese zodiac The company is the largest supplier year of the goat. of natural, organic and specialty foods in the United States. United Natural Foods consolidated this position last March through the YAKULT HONSHA other products. The company re- purchase of its competitor Haddon The inventor of cently filed a patent for a chemo- House Food Products for $217.5 probiotics therapeutic agent, Elplat, which will million. Haddon House is the larg- be used to treat gastric cancers. est private distributor of organic, The Japanese creator of pro- ethnic and kosher foods. biotic yoghurt with digestive qualities is also developing Yakult has “ Strategically, this acquisition cosmetics and medicine. successfully makes sense, ” Guggenheim Se- established curities writes in a report. United itself in China Natural Foods now has access MARKET CAPITALISATION : ¥912.98 Billion and Mexico to new customers, new networks REVENUE IN 2015 : $3.42 Billion and a new product mix that in- EMPLOYEES : 20,492 cludes exclusive brands such as HEADQUARTERS : TOKYO With a significant presence in Asian Gourmet and Bella Famiglia FOUNDED : 1935 Japan, the company went interna- (two lines of Asian and Mediterra- tional several years ago and has nean products adapted to the US successfully established itself in market). For 2016, United Natu- he Japanese company’s China and Mexico. This agenda will ral Foods has revised its growth T flagship product is a white continue in 2016, as Yakult Honsha objectives down to 2% compared liquid pumped into a small white plans to establish itself in the with 20% in 2015, which has bottle with a red cap. This probiotic Middle East and Myanmar, which weakened its share price. “ This yoghurt, called Yakult, was invented will improve its medium-term per- slowdown is not harmful over in 1935 by the Japanese scientist formance. In addition, the company the long term, ” says Joe Edelstein, Minoru Shirota to aid in digestion. continues to invest in research and an analyst for Stephens. “ We are Enormously successful in Japan, development. A scientific study confident that the company will Yakult Honsha has diversified its is currently underway to analyse recover. ” Guggenheim Securities offering of probiotic products by the effect of Yakult on the human believes that a purchase of United launching Joie fermented milk, body in space. The results will be Natural Foods shares “ will award cosmetics and medicine, among announced in four years. 2267 patient investors. ” UNFI

41 SUPERFOOD SWISSQUOTE MAY 2016 BASF BASF The omega-3 expert

This German group has put its expertise to use in the chemical industry to produce food supplements. It dominates the Vitamin A market.

MARKET CAPITALISATION : €60.34 Billion REVENUE IN 2015 : €70.45 Billion EMPLOYEES : 112,435 HEADQUARTERS : LUDWIGSHAFEN, GERMANY FOUNDED : 1865

ASF, the largest chemical prod- B uct manufacturer in the world, entered the nutrition market in 2012 with the launch of “ Newtrition ”, a unit that brings together all of its research and development efforts in the food sector. “ Since vitamins, carotene and enzymes are produced by chemical processes, BASF finds itself in a choice position for entering this market, ” says Markus Mayer, an analyst at Baader Bank.

BASF is predicting a drop in its sales and profits for 2016

Today, the company has become a heavyweight in the omega-3 fatty acid sector, thanks in part to its he owner of the Oreo biscuit acquisition of the company Equateq MONDELEZ T brand took its time develop- in 2012. It dominates the Vitamin A The breakfast ing healthier snacks. But once the market to such an extent that it revolution machine was put in motion, Mondelez was able to unilaterally order a showed unbounded creativity. Its 20% price increase for that prod- After a sluggish beginning, most successful brand, Belvita, is uct in February. “ The demand for Mondelez has succeeded in transforming breakfast as we know these types of compounds will only creating healthy and popu- it. Belvita is a whole-grain biscuit increase in the future due to the lar products, such as Belvita that replaces the first meal of ageing population, ” says Mayer. biscuits. the day. “ The brand benefits from However, the BASF nutrition division peoples’ desire to eat healthy, plus has too little of an influence within MARKET CAPITALISATION : $62.44 Billion the fact that they no longer have the group to have a real impact on REVENUE IN 2015 : $29.6 Billion time to eat breakfast at home, ” says its performance. After a bleak 2015, EMPLOYEES : 99,000 Alicia Forry, an analyst at Canaccord BASF is again predicting a drop in HEADQUARTERS : DEERFIELD (ILLINOIS) Genuity. Mondelez has also just ac- its sales and profits for 2016 due FOUNDED : 1923 quired Enjoy Life Foods, a producer to falling oil prices. BAS (SEPARATED FROM KRAFT FOODS IN 2012) of natural snacks (GMO-free,

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DSM From coal to vitamins

This Dutch company dominates the vitamin market. But Chinese competitors are ready and waiting to take over.

MARKET CAPITALISATION : €8.89 Billion REVENUE IN 2015 : €8.9 Billion EMPLOYEES : 20,750 HEADQUARTERS : HEERLEN, NETHERLANDS FOUNDED : 1902

SM was originally founded D to exploit coal mines in the Netherlands. But over time, the company diversified, developing chemical products. Then, in the 1990s, it decided to concentrate on biotechnology and foods, acquiring the nutrition division of Roche in 2003 and that of Cargill in 2012. Today, DSM is the world leader in the production of nutritional ingredients, such as vitamins, carotene and fatty acids (such as omega-3). The BASF plant conducts biotechnology Nevertheless, the Dutch company research at has seen some difficulties during the Research Triangle Park in the last few years due to the arrival North Carolina. on the market of Chinese producers of Vitamin C and E. “ These companies are prepared to cut gluten-free and with no artificial But it may not be enough. “ Mondelez prices and lose money in order to ingredients). The US brand has also has still got a long way to go, ” says gain market share, ” notes Mutlu made efforts to adapt its traditional Forry. “ Its portfolio is still very Gundogan, an analyst at ABN products, creating the reduced-fat exposed to the risk of sweetened AMRO. “ Currently, DSM is losing Oreo Thins, for example. products. ” The company has set a €15 to €20 million a quarter on goal to earn 50% of its sales from the Vitamin E market. ” healthy products by 2020. Despite “ Mondelez’s overall this, Forry still recommends the Fernand de Boer, an analyst at performance purchase of Mondelez shares : Petercam, is more optimistic. remains excellent, “ The company’s overall perfor- “ DSM has launched a cost-re- and its shares are mance remains excellent, and duction programme, ” he points its shares are selling at a price out. “ And it is planning to sell its selling at a price scarcely higher than that of its shares in the Canadian pharma- scarcely higher than competition. ” MDLZ ceutical company Patheon, which that of its could improve its profitability competition. ” considerably. ” He recommends Alicia Forry, an analyst at Canaccord Genuity purchasing DSM shares. DSM

43 SUPERFOOD SWISSQUOTE MAY 2016 REUTERS /BRENDAN MCDERMID REUTERS /BRENDAN

Environmental activists dressed as characters from General Mills food products, urging the U.S. firm to reduce its greenhouse gas emissions (New York, 8 July 2014).

GENERAL MILLS preservatives and antibiotics. ” In 2014, General Mills also Eliminating the artificial General Mills has even committed gained a gem of the organic and to ridding 90% of its cereals of gluten-free sector by acquiring This US giant is making an artificial ingredients by the end Annie’s, a California-based compa- effort to produce food with no of 2016, up from 60% in mid-2015. ny that makes pasta, biscuits and artificial flavours, chemical cereal. This purchase allowed it to colourings or gluten – and invest in a new market. “ Annie’s it’s working ! “ General Mills is develops organic products that successfully are very popular with children, ” says Brockman. Since it joined the MARKET CAPITALISATION : $37.3 Billion transitioning to fold of the large US company, the REVENUE IN 2015 : $17.63 Billion healthier foods. ” product line has developed even EMPLOYEES : 42,000 Jack Russo, an analyst at Edward Jones more quickly, especially in the HEADQUARTERS : MINNEAPOLIS (MINNESOTA) children’s organic soup sector. ” FOUNDED : 1866 The company has been especially Developing healthy products has innovative in the snack market, allowed General Mills to compen- he producer of Häagen-Dazs which it dominates with 26.5% of all sate for its other more tradition- T and Cheerios has been on US sales. Of note are its cereal bar al divisions – cake brand Betty a quest to create “ natural ” food brands Nature Valley and Larabar. Crocker saw its sales fall 10% for ten years now. “ General Mills “ General Mills has also internation- in 2015. “ The company is suc- arrived on this market more quickly alised the Fiber One brand, which cessfully transitioning to healthier than its competition, ” explains mainly sells cereal bars. It does very foods, ” says Jack Russo, an ana- Alexia Howard, an analyst at Bern- well in Mexico and has just been lyst at Edward Jones. “ Its portfolio stein Research. The company has launched in the United Kingdom, ” is overtaking the competition. ” He launched several lines of products explains Chris Brockman, an analyst recommends buying its shares. free of colours, artificial flavours, at Mintel. GIS

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THE HEALTHY INGREDIENT Overview of the top five favourite COMBO nutrients of consumers and brands.

BY GRÉGOIRE NICOLET

NATURAL SOURCES EFFECT ON HEALTH ON THE MARKET OMEGA-3 Fatty fish, seafood, algae, Reduces blood pressure, Dietary supplements canola and flaxseed oil, improves cardiovascular (capsules, pills), Omega-3 walnuts, certain geneti- health and cognitive enriched food (margarine, cally modified plants performance milk, bread, cookies)

PROTEIN Animal proteins (meat) Develops or maintains Dietary supplements, and plant proteins muscle mass, contributes protein powders, energy (legumes such as beans) to weight loss and drinks, “ healthy ” snacks management, controls appetite, satisfies daily energy needs

VITAMIN D Cod liver oil, salmon, Maintains healthy bones, Fortified dairy products mushrooms, eggs prevents osteoporosis, and grains prevents certain forms of diabetes and cancer, fights rickets in children

MAGNESIUM Cereal grains, seafood, Binds calcium, helps Dietary supplements, almonds muscles relax (sedative chocolate, unrefined effect), reduces stress, cereal grains (made with prevents memory loss, whole flour which contains and reduces allergic and more magnesium) inflammatory responses

MICRO-ALGAE About ten varieties Lowers cholesterol, Dietary supplement of algae, chlorella and is a source of protein, against malnutrition, tea, spirulina produced on antioxidants and trace beer, fruit juice, chocolate a large scale elements (iron, iodine, fluoride)

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Functional foods for animals The pet food market could grow to $98 billion by 2025. The therapeutic foods segment looks particularly promising.

BY CATHERINE COCHARD

et foods are becom- Functional pet foods offer the indus- ing just as specialised try endless possibilities for diversi- as human foods, with fication. Just like in the healthcare P gourmet, organic and industry for humans, you can create low-fat varieties. Supermarkets a product for just about any type of and veterinarians are offering more problem, from excess weight, dia- and more products for dogs and betes and allergies, to heart, teeth cats that promise to make their fur and skin problems. The main active shine brighter, clean their kidneys or substances in functional pet foods improve their general health. “ What’s are omega-3 fatty acids, proteins, really helping the industry grow is peptides, plant-based enzymes our desire to ‘humanise’ our pets, ” and antioxidants. says Debbie Phillips-Donaldson, editor-in-chief of the US magazine Petfood Industry. “ Pet food produc- Blue Buffalo ers are taking advantage of the close bond between us and our pets. If released its your veterinarian tells you your dog has digestive problems and you see figures, which biscuits at the shop that contain an were far better agent for improving digestion, what would you do ? ” than expected

Like baby food, pet food is unique in that the consumer does not buy the “ Food and cosmetics giants are now product. And that’s a major factor be- looking to develop their portfolio in hind the industry’s success : buyers this segment, and many are starting feel responsible – a bit like with their to buy up niche companies, ” says children. A study by US firm Mordor Snehika Vadlakonda, analyst at Mordor Intelligence says the pet food market Intelligence. There are plenty of A greyhound in is worth $68 billion and could reach examples. Mars is developing several top form at the $98 billion by 2025. The functional brands in pet health and well-being. annual AKC/ pet foods sector accounts for The company bought Eukanuba – a Eukanuba National Championship, the $2.3 billion, and that figure could brand specialising in functional dog largest dog show in reach $4.5 billion by 2025. and cat food – for $2.9 billion from the United States.

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Procter & Gamble in 2014. Mars also In October 2014, the company was hit with a class action lawsuit owns Buckeye Nutrition, a brand that launched Just Right, a personalised in the United States for “ false and produces therapeutic foods for horses. dog food product. Dog owners in the misleading ” labelling – the actual In addition, the group owns Banfield United States can go to a dedicated composition of certain foods sold Pet Hospital, a chain of veterinary website and enter their dog’s name, in 2008 did not correspond to what clinics in the United States, the breed, weight, level of activity, age, was written on the packaging – United Kingdom and Mexico. fur type, skin type and food prefer- and could be ordered to pay back ences (salmon, chicken, lamb, etc.). $32 million. A few days later, the customised Blue Buffalo product arrives at their doorstep. The firm did not appear to be rattled expects average and announced that its revenue annual growth Blue Buffalo – another company increased 12% in 2015 and that it in this line of business – floated expected average annual growth of of 10% for the on Nasdaq (BUFF) in July. The US 10% for the next three years. The next three years company released its quarterly fig- announcement restored investor ures on 9 March. And despite recent confidence. Blue Buffalo shares Nestlé Purina is the world’s sec- legal troubles, the results were far have soared since the company ond-biggest pet food producer. better than expected. The company released its results in March. ZACH MAHONE

47 SUPERFOOD SWISSQUOTE MAY 2016 Functional food, lies and marketing “ Treats erectile dysfunction. ” “ Improves eyesight. ” “ Helps digestion. ” Some functional food makers will promise you anything. But governments have begun to crack down on the food industry, especially in Europe.

BY CLÉMENT BÜRGE

he food industry seems to but it’s still hard to prove the bene- The food industry has always exag- have a solution to all our fits of a product or substance for gerated the virtues of its products. T problems. Pom Wonderful the human body. ” In the late 19th century, Coca-Cola boasts the benefits of its pomegran- explained that its beverage could ate juice in addressing erectile dys- cure morphine addiction, dyspepsia, function, while Lipton extols the an- “ It’s still hard headaches and impotence. Until the tioxidant virtues of its tea to reduce beginning of the 1930s, Guinness cholesterol. Meanwhile, Kellogg’s to prove the asserted that a pint a day of its beer claims that its Frosted Mini-Wheats benefits of a strengthened the immune system cereal improves children’s attention and promoted digestion and sleep. In span by 20%. That’s wonderful news, product or the 1970s, Danone adverts featured but too good to be true. substance for people from Georgia, part of the Soviet Union at the time. The posters In 2015, American and European the human claimed that they lived to be older than regulatory agencies declared that body. ” 137 by eating a yoghurt-based diet. Pom Wonderful’s advertising claims Patrick Leconte, nutritionist were simply deceptive. In 2006, Misleading information has slipped Lipton was formally banned from past for so long because of the mentioning antioxidants in its future On that basis, “ at best, customers loopholes in food regulations. “ When marketing campaigns. A complaint waste their money on an expensive a pharmaceutical company releases filed in 2009 revealed that Kellogg’s product that has no real effect, ” a new drug on the market, it has to was basing its claims on compara- the expert says. But in the worst prove its efficacy with costly, rigorous tive studies between children who case, the functional food can give studies, ” says Yves Schutz, a profes- had eaten its cereal and children who people the false impression that sor with the Faculty of Medicine at had only had water for breakfast. they’re eating healthy and disrupt the University of Lausanne. “ Regu- a balanced diet. “ A person will eat lations are not as strict in the food That’s right. The functional food cereal enriched with vitamin C but industry, which means they can get industry has been sparking contro- stop eating apples or oranges, be- away with these overblown claims. ” versy for ages. Many nutritionists cause they believe their diet is bal- believe that these products have anced, ” says Patrick Leconte. “ Peo- The first rules were introduced in nothing to offer consumers. “ It’s ple also eat probiotics to strengthen the 1990s, when sales of functional a marketing strategy, ” says Patrick their immune system. But these foods took off. But it took until the Leconte, a well-known nutritionist microorganisms have the side effect 2000s before any real measures based in Geneva. “ Fibre or vitamins of promoting weight gain, which just were taken to regulate the industry can definitely be added to cereal, ends up weakening the body. ” and its constant dubious claims.

48 SUPERFOOD SWISSQUOTE MAY 2016 GUINESS

Vintage Guiness posters : until the 1930s, the Irish brewery company claimed that its beer strengthened the immune system.

49 SUPERFOOD SWISSQUOTE MAY 2016

“ The European Union came down matters. “ Today, we have a list ten new claims are submitted for hard in 2006, ” Schutz says. “ It of 200 general authorised health approval by the FSVO every year. asked the European Food Safety claims, such as ‘calcium is essential “ One or two products are accepted on Authority (EFSA) to examine all the for maintaining healthy bone struc- average, ” he says. The FSVO tries to health claims of products available ture’ and ‘plant stanols lower cho- align its practices as much as possi- on the European market. ” lesterol in the bloodstream,’ ” says ble with those of the European Union. Michael Beer, head of the Division of Food Safety at the FSVO. These regulatory efforts have significantly improved the situation, However, if product claims do not but some nutritionists are not entirely The food fall into one of these categories, the convinced. “ The food industry often manufacturer has to file an applica- manages to sidestep certain regula- industry tion with the federal government. tions by slightly altering the wording has always And the claims must be based on in adverts, ” says Patrick Leconte. scientific evidence. “ We want to see “ There are no miracle foods. The exaggerated clinical trials conducted on a group key to staying healthy is simply similar to the Swiss population, ” the to eat a balanced diet. The human the virtues of expert says. “ For example, they can’t body will take the nutrients it needs its products be carried out in Asia or on animals. ” from the diversity of the food we eat. ” But the nutritionist points out that But if these studies are submitted lactose-free, gluten-free and natural by the companies themselves, how products do make sense from a Overnight, nearly 44,000 claims can we be sure that they’re not nutritional standpoint. “ Science, were filed with the EFSA. Each biased ? “ We require the raw data especially genomics, has shown manufacturer had to demonstrate, used in this scientific research to that some individuals tolerate certain using scientific research, how its check the validity of their claims, ” ingredients better than others, ” the food products offered the benefit Beer says. “ An ethics committee expert says. “ Customising our diets can described on the packaging. The reviews each application. ” About have a positive impact on our health. ” substances under review ranged from Omega-3 to taurine to shark cartilage. Some cases were founded on the Bible or Wikipedia to justify the benefits of their products. History’s worst functional foods

What conclusions can be drawn RADITHOR, KINDER, MAGIC CHOCOLATE from this analysis ? “ It was a dis- THE RADIOACTIVE WATER For years, the sweet treat made aster. Fewer than 20% of the claims This radium-charged water was by Ferrero was sold under the were deemed credible, ” says Yves sold between 1918 and 1928. Its slogan, “ Kinder, the chocolate Schutz. None of the products were inventor, William J. A. Bailey, that helps to grow ”. The European taken off the market, but the claimed that his drink could Food Safety Authority prohibited treat more than 150 different Ferrero from using that wording European Union forced companies health problems. Radithor was in 2006. The company had never to adapt their advertising campaigns taken off the market when one conducted any studies on the for these products accordingly. Even of its most loyal customers, the impact of its chocolate on the highly respected firm Danone, American industrialist Eben children’s growth. which claimed that its Activia and Byers, lost his teeth and his Actimel yoghurt improved digestive jaw came off. Byers drank up VITAMINWATER, THE DRINK to three bottles of Radithor a PACKED WITH SUGAR health, had to back down. The French day for two years. The beverage launched in multinational adjusted its advertis- 2000 claimed to strengthen ing campaigns in 2010 based on its CORN FLAKES, THE the immune system and reduce own research showing that its two ANTI-MASTURBATION CEREAL the risk of eye disease. Since products affected intestinal transit The American doctor John then, several U.S. courts and time as much as a placebo. Harvey Kellogg, a fervent European health agencies evangelical, invented Corn have shown that a bottle of Flakes in 1878 to prevent Vitaminwater contained as In Switzerland, the Swiss Federal children from masturbating. much sugar as 2.5 doughnuts Food Safety and Veterinary Office He thought that flavourless food (33g) and brought no useful (FSVO) keeps close tabs on these would reduce sexual impulses. vitamin supplement.

50 SUPERFOOD SWISSQUOTE MAY 2016

INTERVIEW

“ We identify ourselves by what we don’t eat ”

Patrick Denoux, a professor of cross-cultural psychology at the University of Toulouse, studies the causes of our obsession with healthy food. BY JULIE ZAUGG

People are increasingly con- Does the current discourse What happens when the cerned about what they eat. about healthy eating contribute obsession with healthy eating Where does that come from ? to that ? becomes pathological ? After World War II, people let go The development of public nutrition The individual will gradually eliminate of their mistrust of food for the first campaigns, which recommend eating from their diet any foods perceived as time in human history. They delegated five fruits and vegetables a day, unhealthy. Allergens such as gluten the control over their diet to public cause anxiety and guilt by setting and lactose are often the first to go. health authorities and placed their unrealistic targets. At the same time, So is meat, which is considered harm- faith in the mass production practices more healthy food is now available, as ful in our society. Some start taking of major industrial groups. But that large food groups realised that there large doses of vitamins and supple- trust was violated in the 1980s in was a niche that could be exploited. ments. I saw someone take more than a spate of scandals, such as toxic 80 a day. In the most extreme cases cooking oil in Spain, mad cow of this disorder, called orthorexia, the disease and, more recently, horse- “ Public nutri- person only eats two or three types of meat in lasagna. These days, we’ve food, refuses to eat fruit picked more practically come back to that wide- tion campaigns than 15 minutes ago or chews each spread apprehension that was bite 50 times before swallowing. typical of traditional societies. cause anxiety and guilt. ” Those people must be in a Have we developed a complicated lot of pain… relationship with food ? Orthorexia is generally a sign of psy- There’s been a cultural breakdown. Isn’t it a good thing if food giants chological distress. These people don’t A few years ago, it would’ve been start selling food that’s not so feel well, so they think it must come unthinkable to tell your host that you bad for our health ? ? from something they’ve eaten. It’s don’t eat this food or that for health Basically, yes. But they sometimes a very old reflex, which comes from reasons, because that meant you were go too far. Some functional foods an ancient fear of being poisoned. accusing him of trying to poison you. make false claims, such as probiotic But as the causes of the condition Similarly, no one would dare refuse yoghurt which asserts that it can are psychological, excluding certain a meal offered to them in most tra- strengthen immune defences or that foods from their diet will not make ditional societies. That would be an sugar for seniors which is supposed them better. insult. But that’s become standard for to aid in digestion but is in fact one us. We identify ourselves by what we of the most difficult substances for don’t eat, by whatever food – sugar, our body to break down. These foods fat, meat, alcohol or gluten – we take are also much more expensive than out of our diet. “ normal ” products.

51 SUPERFOOD SWISSQUOTE MAY 2016

Edible larvae raised on organic carrots by the French company Micronutris.

52 SUPERFOOD SWISSQUOTE MAY 2016 MICRONUTRIS Food of the future Insect chocolate bars, in vitro hamburgers, algae drinks… To feed our planet in the future, high-tech companies are ramping up their creativity. Although several products can only be found in labs at the moment, others are already on the market. Here’s an overview.

BY JEAN-CHRISTOPHE PIOT

n exploding population, shrink- Deputy Scientific Director at the A ing land and water resources, Institut français de la recherche severe climate change and overex- agronomique (INRA) and editor of ploited oceans – the food equation the book Food System Sustainability. over the next thirty years will not be Even better : insects take up little an easy one to solve. One thing is for space and produce significantly less sure : the expanding human popula- greenhouse gas than livestock. A tion will need more food. Will we eat possible answer to food shortages : differently ? Probably. Will insects in 2014, the “ Toumou’Délice ” exper- be part of our diet ? Why not ? iment in Burkina Faso proved to be successful in addressing malnutri- “ Cultural resistance tion. People grew accustomed to the bags of fresh, precooked caterpillars is very strong in the which could be kept for more than West, and food habits 18 months. change very slowly. ” Catherine Esnouf, Deputy Scientific Director But there is a long way to go until we see cricket farms spread across Although crickets and other insects Europe, despite the encouragements are rarely found on Western dinner of the Food and Agriculture Organ- tables, they are regularly consumed ization of the United Nations (FAO) in Africa and Asia, where their good or the European Union. “ Cultural qualities are well-known. “ Insects resistance is very strong in the West, are rich in protein and calcium and and food habits change very slowly, ” low in fat, ” says Catherine Esnouf, says Esnouf. The same argument

53 SUPERFOOD SWISSQUOTE MAY 2016

Krill, the favourite food of whales, now subject to certification standards in Europe. REUTERS / CHAIWAT SUBPRASOM REUTERS / CHAIWAT NORKRILL

Chocolates topped with insects by French chocolatier Sylvain Musquar.

Schoolgirls pose after getting

packets of «HiSo» AFP/ J.C. VERHAEGEN snacks during a promotion event in central Bangkok (24 February 2015).

applies to krill, the marine equivalent aroons. The company has won over nical challenge might be completely of terrestrial insects : consumers restaurant industry professionals and transformed by Modern Meadow, a don’t necessarily share whales’ taste now believes that the market is ripe Brooklyn-based company that aspires for the diminutive shrimp, which have for turning towards retail distribution. to manufacture meat through 3D nevertheless been approved to be In 2015, it raised a total of €500,000 bioprinting. The idea is to harvest an sold on the European market as with the help of 300 shareholders as animal’s stem cells and store them in dietary supplements since 2011. well as a crowdfunding platform – a a printer cartridge. Once generated by good sign of public interest. a 3D bioprinter, the cells come togeth- To get past the psychological and er to form “ living ” tissue. cultural stumbling blocks, companies TOWARDS “ MEATLESS MEAT ” are developing products that are more Developed over the last fifteen years, Memphis Meats, a pleasing to the eye, such as pasta artificial meat is another major path and flour. The American start-up taken by researchers and start-ups. It start-up created a Exo is marketing energy bars made does have a somewhat scary aspect, true-to-life beef meat- with cricket flour, an environmentally as implied by its nickname “ Franken- ball in its bioreactor friendly flour made from powdered burger ”, which was associated with crickets. The two founders, Gabi Lewis the first synthetic hamburger pre- and Greg Sewitz, had the idea of first sented in August 2013 by Mark Post, Others claim that they are reinventing targeting the members of neighbouring a researcher at Maastricht University. the very concept of meat. Ethan Brown, sports clubs, playing on the healthy The Dutch scientist’s initiative is, CEO of the company Beyond Meat, says, aspect of their products. however, not an isolated one – “ Meat is simply a combination of well- many are trying to create their own known elements : water, amino acids, On the other side of the Atlantic, synthetic meat. Memphis Meats, a fats, carbohydrates, minerals… we the French company Micronutris, the start-up based in New York, recently can take these five elements and give European leader in insect-based food, created a true-to-life beef meatball them the same structure as meat. ” markets biscuits, chocolate and mac- in its bioreactor. However, this tech- In short, it’s a quasi-vegetarian option

54 SUPERFOOD SWISSQUOTE MAY 2016 that involves producing substitute per person in the last 25 years. There’s just one small detail to be plant protein-based chicken breasts One study by the Universities of Ox- worked out : the prohibitive produc- and steaks. This same principle can ford and Amsterdam, led by doctoral tion costs associated with synthetic be found in the almond milk-based candidate Hanna Tuomisto, shows meat. Examples include $300,000 for cheese made by Lyrical Foods in that in vitro meat would reduce the Frankenburger and $40,000 for California, or the French company greenhouse gases brought about the next-generation meatball. Mass Sotexpro’s pea protein-based “ meat ”. by livestock farming by 96%. “ The production of in vitro meat would environmental impact of artificial lead to prohibitive costs and would Whichever technology wins out, syn- meat could be much lower than that require huge quantities of growth thetic meat is being sold to the media of meat produced in the traditional hormones and antibiotics. But this with a hefty argument – its capacity way, ” says Tuomisto, who believes does not discourage Silicon Valley to provide new sources of protein with that artificial meat could be part of the investors. Beyond Meat is supported no environmental impact or animal solution to feeding a growing popula- by Obvious Corporation, the invest- suffering. Theoretically, it’s a solid tion. This fact lends Memphis Meats a ment fund launched by Twitter one : 70% of all agricultural land is great deal of optimism with regard to co-founder Evan Williams. And Mark used for livestock and its feed. And its meatballs : “ We hope to be able to Post’s synthetic hamburger was spon- meat consumption is increasing – its market our products four years from sored by Sergey Brin, the co-founder average has risen from 30 to 42 kilos now, ” says its CEO, Uma Valeti. of Google.

2050 : THE FOOD CHALLENGE IN FIGURES 10 billion The UN estimate of the world population AFP/ JPRESS ASSOCIATION / DAVID PARRY PARRY / DAVID AFP/ JPRESS ASSOCIATION in 2050. 70% The expected rise in food demand worldwide between 2000 and 2050 (for both human and animal consumption). 1.5 billion The number of overweight Mark Post, the Dutch people according to inventor of the world’s the WHO. most expensive burger : $300,000 for a piece of synthetic meat. 800 million The number of people currently suffering from undernutrition. 30% The percentage of lost or wasted food produced worldwide.

Sources : UN, WHO

55 SUPERFOOD SWISSQUOTE MAY 2016

The spirulina grower AFP / CHRISTINE POUJOULAT Vincent Rioux. This microscopic algae is gaining popularity for its nutritional virtues.

GMOS : ON THE ROAD TO REDEMPTION ? Though widely criticised, genetically modified organisms still offer some solutions to the environmental and health challenges to come.

“ We have approached the issue of GMOs the wrong way, ” says Catherine Esnouf, Scientific Director for Food at INRA. The agronomist feels that the general public’s current mistrust of GMOs stems in large part from the practices of multinationals like Monsanto, accused haphazardly of privatising living creatures, laying waste to biodiversity by replacing hundreds of varieties of rice, wheat and soya with just a few seed strains, and destabilising the UNDERWATER CULTIVATION largely rural economies of devel- The third major path that could free products. Algama, a new company oping countries. humanity from the use of agricultural headquartered in Paris, is developing land is the cultivation of microalgae. the spirulina-based drink Spring- This is just a partial view of the These simple single-celled organisms wave, centring its marketing on the situation according to Esnouf, who are capable of growing quickly and concepts of well-being and health invites us to consider the issue in terms of costs and benefits. “ Some in large quantities not only at sea as well as an image of technological of the first GMOs were doubtless but also in polluted waters, where modernity, which breaks with the tra- marketed without precautions, but traditional cultivation is not possible. ditional image of organic products. they are not good or bad on prin- According to a study led by Hanna ciple. They may allow us to reduce Tuomisto, “ Algae and microalgae Key industrial players are also the use of pesticides, improve crop could produce 15 to 30 times more interested in microalgae, such as yields and develop hypoallergenic varieties. ” And they can even ad- oil than corn and soya over an the French group Roquette, which dress the consequences of climate equivalent area. ” since 2014 has produced more than change, adds Jean-Louis Rastoin 5,000 tonnes of algae a year at its of Montpellier SupAgro. “ Finding Spirulina, a blue-green microalgae, historical site in the north of France. varieties that are capable of with- is one of the “ stars ” of this food And that’s only the beginning. The standing water shortages and soil group. Rich in vitamins, minerals and company is convinced that it can run salinisation is essential if we are trace elements, it is unusual in that to compensate for the rise in tem- a production chain capable of pro- peratures and curb the decline in it contains the eight amino acids viding nutritional solutions that are crop yields. ” This is especially the that are normally found only in meat essential for feeding the planet. case in the Middle East.

56 SUPERFOOD SWISSQUOTE MAY 2016

INTERVIEW

“ In rich countries, the average daily intake is 4,000 calories ”

The food challenge is not only macroeconomic, but sociological and cultural as well, explains Jean-Louis Rastoin, a researcher at the Institut national d’études supérieures agronomiques in Montpellier (Montpellier SupAgro) and director of its UNESCO Chair. BY JEAN-CHRISTOPHE PIOT

The earth’s population will rise because it broadens the issue of return to short supply chains and to 10 billion by 2050. Will we undernutrition to include malnutri- fewer artificial methods of produc- be able to feed everyone ? tion, which affects all continents. tion, such as organics. Thousands On a global scale, there are enough Too much sugar, salt, and satu- of start-ups are innovating by resources available to respond rated fat. If we take excesses into exploring the possibilities of using to population growth. However, account as well, half of the planet insects, krill and microalgae for humanity is being confronted with is not eating properly. All of this is food. But we should keep in mind the dual problem of food distri- evident in the explosion of chronic that for the moment, these are bution and quality. The former is illnesses such as obesity, diabetes just micromarkets. more visible : in rich countries, the and cardiovascular problems. average daily intake is nearly 4,000 Why is that ? calories, which is well beyond the Faced with this dual chal- All too often, food is still seen amount necessary (editor’s note : lenge, how does the research by the business world as a con- about 2,500 calories for an adult coordinate with global food venience good that can be indus- man). At the same time, the Food production ? trialised easily. This is false. You and Agriculture Organization of the Multinationals try to compensate can’t force a certain product on United Nations (FAO) estimates for the defects and deficiencies of people on the sole basis that its that 800 million people do not their products by fortifying them production is more environmen- have enough to eat. with the nutrients they lack. But tally friendly. Anthropologists and the agroindustrial sector, which sociologists have shown that food “ The planet will not is centred on high productivity, is does not work on the same terms be able to sustain facing restraints that are becom- as other consumer goods. Eating itself if everyone eats ing more and more pressing on the is a necessity, but also a social like a Westerner. ” environmental, climatic and social and cultural practice. Gastro- fronts : quite simply, the planet nomical and cultural traditions will not be able to sustain itself are essential : eating insects is The second challenge, which has if everyone eats like a Westerner. a tradition in Asia and Africa, but to do with the quality of nutrition- Hence the development of new in the West it is not. There is no al intake, is even more worrying approaches to food – like the magic solution.

57 SWISSQUOTE SWISSQUOTE MAY 2016

THEMES TRADING Investing in healthy Peter Rosenstreich Head of Market Strategy foods

Theme of the month : What is healthy foods Themes Trading ?

Not only are healthy foods good for you, they’re also a major Themes Trading is a tool business opportunity for companies. Driven by strong demand, developed by Swissquote that the health-food sector generates over 700 billion in annual empowers less experienced revenue – and that’s just for packaged food and beverages. investors to trade according to their interests, their knowledge That number will likely hit 900 billion by 2020. As more seasoned and instinct, while benefitting food companies revamp their older product lines, new companies from the expert analysis of starting out in this market are actively taking advantage of growth professional market analysts. opportunities. The companies mentioned in this issue were taken Whether you’re into clean energy, into account for this month’s investment theme. robotics, coffee or video games, there’s something for everyone.

How does Themes Trading work ?

Swissquote’s They draw up a list The most promi- Swissquote clients Customers can experts1 choose of companies2 that sing companies3 are can browse4 the then 5add shares a theme based on are exposed to the weighted according themes on the in their favourite the latest trends theme and offer to their risk value Swissquote companies to their in science, lifestyle attractive value and and added to a platform and easily portfolio, at the or the global growth potential. theme-based access financial click of a mouse. economy. portfolio. information about each theme and company.

For more information, go to www.swissquote.ch/themes-trading Share your experience using the hashtag #ThemesTrading

58 Manchester United Foundation

We use the power of football to engage and inspire young people to build a better life for themselves and unite the communities in which they live.

mufoundation.org facebook.com/manchesterunitedfoundation @MU_Foundation PORTRAIT SWISSQUOTE MAY 2016

Match Group cupid goes digital The US firm is the industry leader for online dating sites and apps, a market worth an estimated $2.3 billion. Here’s a closer look.

BY CLÉMENT BÜRGE

60 PORTRAIT SWISSQUOTE MAY 2016

t wasn’t until he settled in The firm split with its parent analyst for Benchmark Company. The Boston, in September 2011, company, InterActiveCorp (IAC), in businessman entrusted his latest that James* started look- November 2015 and went public. IAC online treasure to Greg Blatt, who ing for romance online. With still decided to retain control of the has managed IAC’s online dating Ijust a few clicks, the 28-year-old company with an 80% stake in its businesses since 2013. student created an account on the shares. Today, business is booming. dating site OkCupid. The tall young Match Group businesses raked in LOVE IS AN ALGORITHM man with floppy dark hair started $1.02 billion in 2015, a 15% increase A few years later, we find James chatting with two girls at once. One compared to 2014. in New York. One evening, on one was a plump 24-year-old blond with of his dates, he meets Sophie. The a taste for travel and all things Latin charming brunette fascinates James. American. The other was a 31-year- Match Group For their first date they spend the old divorcée with brown locks and evening wandering the streets of tattoos. “ I had something in common owns 22% of the Manhattan. It’s love at first sight. with both of them, despite their online romance They continue dating, more frequently. differences, ” recalls James. market James falls in love with Sophie’s “ I met them a couple of times and books, her apartment, her scent, her then they vanished from my life. ” The firm was founded by Barry Diller, cat. “ I swore I would never commit a balding businessman with chiselled to someone, ” he recalls. “ But this Since then James has become ad- features whose personal fortune is time was different. ” dicted to online dating. “ These sites estimated at $2.3 billion according are perfect for starting a relationship to Forbes. His wife is the fashion Like most online dating sites, that isn’t too serious, ” he explains. designer Diane von Fürstenberg. OkCupid uses algorithms to analyse “ At the moment, my career comes Barry Diller is behind all of IAC’s user compatibility. They do this by first and I’m not interested in a long- biggest deals and is at the heart of asking questions such as “ Do you like term commitment. ” In addition to the New York firm’s online romance horror films ? The smell of cigarettes ? OkCupid, James uses the Tinder app strategy. CEO of IAC from 1995 to Do you want to have children with your and occasionally browses on Hinge. 2010, he now chairs the board of new partner ? ” The website creates an directors. “ He’s an outstanding ideal compatibility profile for each user What James doesn’t know is that his manager, who has successfully and indicates which ones he or she love life is managed by a single firm : invested in many different online should never meet. James and Sophie Match Group. The firm owns OkCupid businesses, ” says Daniel Kurnos, were 98% compatible. and 44 other dating apps and sites, like Match.com, Meetic, HowAboutWe, Speeddate.com and even the ubiqui- tous Tinder. According to Bloomberg THE MAJOR BRANDS OF MATCH GROUP Business, Match Group owns 22% of BlackPeopleMeet HowAboutWe People Media the online romance market, which Chemistry Match (Meetic) PlentyOfFish is estimated at $2.3 billion. Delightful OKCupid Tinder FriendScout24 OurTime Twoo

*Name changed by the editor 61 PORTRAIT SWISSQUOTE MAY 2016

OkCupid algorithms are based on says Paul Oyer, Stanford economist using basic functions is free, but a programme invented by three and specialist in online dating sites. additional functions come at a price. Harvard undergraduates in 1965. Barry Diller’s goal was clear : domi- This is the model that French app They created a system to enter data nate the online romance market and Happn has chosen. “ Only men pay about friends in a computer that eventually create a single firm that to contact women or say they’re weighed five tonnes and find out could ride this wave, which he has available, ” explains Didier Rappaport, who would get along best together. done by floating Match on the CEO of Happn. The freemium model The concept operates on the prin- stock market. leaves some analysts sceptical. ciple that an algorithm will be more “ It can attract more users, but effective in determining whether A PROFITABLE ECOSYSTEM doesn’t necessarily generate more two people are made for each other These acquisitions have allowed IAC earnings, ” says Mark Brooks. “ It’s than chance encounters. to rule the online romance industry : like video games. The app depends “ The group has created an online exclusively on a small number of The first real dating sites were dating ecosystem, ” says Mark users who are big consumers. ” created in the 1990s with Kiss.com, Brooks, an independent analyst. Classmates.com and Match.com, Network users rarely stick with a along with the emergence of the single site or app. They switch from The OkCupid site web and digital photography. But one platform to another, sometimes creates an ideal the number of users really explod- within minutes, a bit like someone ed in the 2000s when Internet use going from bar to bar in order to compatibility became more widespread. increase their chances of meeting profile for a partner. ” And each visit is an each user and Aware of the industry’s potential, opportunity for IAC to make money. IAC started investing and acquiring indicates which start-ups as fast as it could. In 1998, “ There are two ways of making ones he or she the firm bought out Match.com for money on these platforms, ” says the should never $50 million, followed by Chemistry. expert. “ First, a dating site can bill meet com, Meetic and HowAboutWe. In July visitors for monthly subscriptions, 2015, the firm also took over Plenty- which is the case for eHarmony and OfFish, its main online competitor, for Match.com (editor’s note : from $10 Six months after meeting Sophie, $575 million. The firm also acquired to $60 per month). That’s the best James can’t stand their relationship. several sites active on niche markets way to make money because earn- He feels like he has become his like OurTime, for people over 50, and ings are higher and steadier. ” girlfriend’s plaything. One evening he BlackPeopleMeet, for African Ameri- decides to tell her how he feels. Three cans. “ It’s among minorities that we The second way is inspired by the days later she sends him an email : she find the most active users, who are freemium model in the world of doesn’t want to see him again. “ I was ready to pay for these services, ” gaming. Downloading the app and sad, but it didn’t affect me that much, ” he says. “ When I meet someone on the web, I expect the relationship to be ANALYST OPINION less serious and eventually fall apart. ”

“ MATCH GROUP CAN GENERATE ECONOMIES OF SCALE ” In keeping with this reality, which is the norm for most users, Match Group Match Group’s decision to part mies of scale and use all their unveiled a revolutionary app in 2012 ways with its parent company, knowledge to make the most of that would turn online dating into a InterActiveCorp (IAC), was a each platform. ” real life role-play game : Tinder. The wise one according to Bench- geolocalised dating platform, available mark Company analyst Daniel Another interesting aspect of as a mobile app, allows users to scroll Kurnos : “ Match Group was the firm is that “ it includes a through photos of singles available in always the most interesting certain number of sites that division of IAC. More value have nothing to do with dating a given perimeter and to ‘like’ or ‘reject’ is created for investors. ” The like Princeton Review, a col- them with a swipe of the thumb. “ This analyst believes the firm’s lege admissions test system, ” app has won over millennials who felt greatest advantage is the pos- says Daniel Kurnos. “ And if that dating sites were for old folks, ” sibility of creating synergies business is bad in the sector, says Mark Brooks. “ And it allowed between its different brands. that could help them offset Match Group to conquer the dating “ They can generate econo- their losses. ” apps market. ”

62 PORTRAIT SWISSQUOTE MAY 2016 KIKUO JOHNSON

63 PORTRAIT SWISSQUOTE MAY 2016

THE TOP 5 DATING SITES THE TOP 5 DATING APPS

MATCH.COM THE GIANT TINDER THE KING OF APPS

The jewel in IAC’s crown, Match.com, is one of Since its launch in 2012, Tinder has dominated the oldest online dating systems. It’s also the the world of dating apps for millennials seeking one that earns the most from its services, with romance online. Users can scroll through profiles customers spending an average of $240 per year. of people located nearby. If two people are mutual- The leader on the American market is mostly ly interested, they can contact each other. used by people in their 30s. Number of users : 50 million (estimate), 26 million Number of users : 59 million active users per month, “ matches ” per day in 140 countries including 4.7 million paying users Price : free, with premium functions starting at $10 Price : $30 per month

COFFEE MEETS BAGEL DATING A FRIEND MEETIC THE EUROPEAN DATING MACHINE OF A FRIEND

The most popular platform in Europe was The app uses Facebook accounts to put users in acquired by IAC in 2013. It is the European touch with their contacts’ friends. “ We analyse equivalent of Match.com. The site has different profiles and only suggest one potential partner a names in different countries. It is called Neu in day, ” says Arun Kang, CEO of Coffee Meets Bagel. Germany and Lexa in the Netherlands. “ We favour quality over quantity. ” Number of users : 42 million Number of users : 21 million Price : from €15 per month Price : free, with premium functions starting at $2

EHARMONY LOVE IS AN ALGORITHM HAPPN GEOLOCALISED ROMANCE

eHarmony is IAC’s main competitor, with 13.8% Happn detects other Happn users one may have market share. The website boasts that it has the walked by during the course of a day. It indicates best algorithms for finding the right partner for a user’s interest for a person he/she has crossed each profile. eHarmony focuses on long-term paths with. “ We try to make the online encounter relationships. as realistic as possible, ” says Didier Rappaport, Number of users : 66 million users since its creation, CEO of Happn. with 780,000 paying members Number of users : 10 million Price : from $20 to $60 per month, and a personal coach Price : free, with premium functions starting at €2 (matchmaker) starting at $5,000 per year

HOWABOUTWE LET’S GO FLY A KITE ! PLENTYOFFISH THE FREE OPTION HowAboutWe was acquired by IAC in 2014 and PlentyOfFish (POF) is the perfect dating site for stands out in the world of dating apps. It allows newcomers to online romance. POF is free and you to organise a date from A to Z and offers activ- only asks users a few questions about whether ities ranging from sailing or kayaking to visiting they are interested in starting a family. an animal shelter to taking a cooking class. Number of users : 100 million since its creation, Number of users : 2.3 million (estimate) 3 million active users per day Price : free download, then starting at $8 per month Price : free, with premium functions from $7 to $13 per month GRINDR THE FIRST GAY APP OF ITS KIND

OKCUPID FOR THE YOUNG AND ‘IN’ CROWD A pioneer in dating apps, Grindr has become a cult platform among gay men. Dattch is its OkCupid is very popular and asks users over lesbian equivalent. 100 questions in order to suggest potential Number of users : 2 million active users per day partners that would be a good fit. Very trendy Price : free, with premium functions starting at and accessible. €2.39 per month Number of users : 10 million since its creation, 1 million active users Price : free, with premium functions from $10 to $20 per month

64 PORTRAIT SWISSQUOTE MAY 2016

Thanks to this aggressive strategy be spending more time with just Dan Slater’s 2013 book Love in the (developing new apps and buying up one person, ” he asks, feeling a Time of Algorithms : “ [The industry is] successful sites), Match Group has bit confused. thinking ‘Let’s keep this f-cker coming crushed the competition. In Europe back to the site as often as we can, alone, there are more than 5,000 and let’s not worry about whether such services. But very few are he’s successful’. There’s this mas- as profitable as those run by IAC, “ Sometimes sive tension between what would or profitable at all. actually work for you, the user, and I feel a little what works for us the shareholders. KEEP THEM COMING BACK lost and wonder It’s amazing, when you think about FOR MORE if I shouldn’t it. In what other industry is a happy Since he broke up with Sophie, customer bad for business ? ” James has gone back online look- be spending ing for thrills. He appreciates the more time But firms can use this for market- variety of profiles. “ I meet girls ing purposes. “ Each user who finds that I would never have known with just true love on our platform becomes an because we come from such dif- one person. ” ambassador for our app among his ferent worlds, ” he says. “ It’s very friends and contacts, ” asserts Arum exciting. ” But sometimes having so Kang, CEO of Coffee Meets Bagel, many choices makes his head spin. This paradox is a great advantage for another dating app. Recently James met a lovely mixed- the dating app and website industry. race girl for a date “ that lasted These companies must prevent their James is very excited. The weekend 24 hours, ” he says with a goofy customers from finding true love after our interview he went on his grin on his face. A few days later, at all costs...because a user who first date with a girl from Argentina he went out with a researcher in settles down is a customer that’s after chatting with her online for neuroscience. “ Sometimes I feel a lost forever. Justin Parfitt, a British several weeks. He really is the ideal little lost and wonder if I shouldn’t entrepreneur, explains this logic in customer for dating sites. MTCH

“Focus on your objectives and you will succeed.” Anthony Martial, Striker

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SQ_Magazine_2016_200x130_EN.indd 1 22.03.16 16:49 CORPORATE CULTURE SWISSQUOTE MAY 2016

In each issue, Swissquote Magazine looks at the image of a listed company through an aspect of its communication or identity. After examining the logo of LafargeHolcim, we now turn to the future headquarters of Swatch and Omega in Biel/Bienne – a tower designed by Japanese architect Shigeru Ban. Swatch Group at the cutting edge of architecture BY SYLVAIN MENÉTREY

n just a few weeks, the The future new production centre headquarters SWATCH for Swiss watchmaker of Swatch IOmega will open in Biel / in Biel/Bienne will be complete Bienne. Two other buildings in 2018. will open at the same site in 2017 and 2018. The first one, built on stilts, will be used as museum space for Swatch, Omega and Swatchmobile. The second – Swatch’s headquarters – has a dramatic design and will resemble a reptile biting into the roof of the neighbouring building.

It’s a big project that will completely remodel using renewable materials at Richemont Group. “ They his signature arched light the site where Omega’s in big buildings, just as he need an attractive, cut- paper structures, and it will austere-looking factory did when he started out de- ting-edge building to show- surely stand as an impres- has stood for years. The signing emergency housing. case their luxury products. ” sive urban object. “ The architect behind the project goal here is not to blend in is Shigeru Ban, winner of the The first two buildings he Other companies in the with Biel /Bienne’s urban 2014 Pritzker Architecture will deliver to Swatch Group industry have also sought history, ” says Eric Maria. Prize. He rose to fame in the will likewise boast wooden to promote themselves “ The building would also 1990s building houses made constructions. The Swatch as stylish, modern and fit in New York, London and of cardboard and reinforced headquarters will be a long, powerful by way of archi- Tokyo. ” By choosing to work paper for war refugees and arched serpentine struc- tectural forays. Just look with Shigeru Ban, Swatch natural-disaster victims. ture with intertwined wood at the wave of innovative, Group has also shown that His philanthropic endeav- motifs and will be the sym- new buildings designed it cares about the ethical ours gave him ‘starchitect’ bol of the new complex. Its for watch companies by values associated with min- status, and he now de- design is a testament to re- big-name master builders, imalist construction, which signs museums and other cent changes in the watch including Cartier’s new may not have been part of its prestigious buildings all industry, where production factory in St-Imier (JU) original corporate message. over the world. In 2013 he sites are playing a greater designed by Jean Nouvel, Eric Maria links this change realised the Zurich offices role in brand communica- and Vacheron Constantin’s in direction to the passing of Swiss publisher Tamedia. tion. “ Brands are inviting new headquarters de- of Nicolas Hayek, the former The seven-storey is unique more and more customers signed by Bernard Tschumi CEO of Swatch. “ The new in that it is entirely made of to visit their production in Plan-les-Ouates (GE). building will certainly be wood – an engineering feat sites, ” says Geneva Ban’s wooden serpent is in used a lot in images to show for a building of its size. Ban architect Eric Maria, who some way, a significantly that the company is commit- continues to experiment worked with Jean Nouvel more substantial version of ted to renewing itself. ”

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68 69 SWISSQUOTE MAY 2016

TWO WHEELS Not only can riders now adjust their suspension settings manually, a number of manufacturers offer damp- THE MOTORCYCLE ing systems that adapt immediately as soon as the throttle is opened based on the motorcycle’s braking MADE EASY force or load. “ Active suspension is Traction control, ABS, LED lights and active a real advantage because it always guarantees the best balance for the suspension are making motorcycles safer. motorcycle, ” Grégory Junod says. Here we present an overview of the latest These systems are primarily available driver-assist features. on big trail bikes – both powerful and BY PHILIPP MÜLLER by definition dual-sport – and feature mostly on European models, such as the BMW 1200 R GS, Ducati Multist- rada 1200, KTM 1190 Adventure and ower is nothing without control. This was the Aprilia Caponord 1200. The Japanese slogan of the tyre maker Pirelli from the early manufacturer Yamaha has also added 2000s and it is still relevant. Perhaps more active suspension to its sport touring Pthan ever for motorcycles. These days, a number of model, the FJR1300. production motorcycles pack in excess of 200 horse- power. As engine performance continues to develop, ABS, another feature useful for the the contact surface of tyres on the road – about the safety of the average biker, is nothing size of a credit card – almost never changes. Howev- new. It first appeared on the BMW K1 er, for riders to be able to maintain control of their in 1988. Nearly thirty years later, the bikes, motorcycle builders are forced to develop more system continues to be developed and efficient driver-assist technology. Grégory Junod, enhanced for an ever better response a motorcycle racer in the Endurance World Cham- time. In a partnership with Bosch, pionship and instructor at the Touring Club Suisse, the Austrian manufacturer, KTM, has analyses the benefits of these new systems. recently integrated a stability control system on its 1190 Adventure, which includes the ABS function in curve braking. “ When racing, we’re used to pushing the limits and are even more effective without ABS. But only in dry conditions, ” Junod says. On roads, it has proven effective. “ As long as you know how to use it, ” the instructor points out. “ You have to learn how to pull hard on the brake lever ! ”

BMW 1200 R GS From CHF 15,900.-

70 TWO WHEELS SWISSQUOTE MAY 2016

Other technological innovations bring more subtle advantages. For example LED (on the BMW K 1600 GTL) or Xenon lights to improve night vision, or the automatic dual clutch transmission prominent at Honda (Honda CRF1000L Africa Twin). “ The automatic transmission mainly offers comfort but also simplifies things for riders when it comes to emergency braking, as they don’t have to down- shift, ” the expert says.

In direct correlation with the increase in power, multi-map technology (Aprilia RSV4 RF) changes engine behaviour. But, as with the anti-lock traction control system (Kawasaki Honda CRF 1000L Africa Twin From CHF 15,570.- Ninja H2), Junod is not overly enthu- siastic about this technology. “ These systems are useful in racing, but for your average rider who can control also be overwhelming or even lead on the Yamaha R1, used to change his bike, they’re not really useful, to over confidence. gears without using the clutch, or, except maybe when it’s raining. ” among the various gadgets availa- Our trusted instructor also points Some new functions efficient in ble, the Data Analyser on the Ducati out that the increase in driver-as- racing may seem almost superfluous 1299 Panigale, which recovers data sisted functions and options could on roads, such as the Quick Shifter to gauge your performance.

Kawasaki Ninja H2 From CHF 26,500.-

71 SWISSQUOTE MAY 2016

TRAVEL The unspoilt heart of the Canaries

The Spanish archipelago is mainly known for its beaches. But the greenest of its islands boasts unspoilt nature and contrasting landscapes that can be explored from its amazing walking trails. Discover La Palma and taste its Malvasia.

BY GAËTAN VANNAY

Caldera de Taburiente National Park

72 LA PALMA EL HIERRO R the Teneguia andSanAntoniovol grapes. Asyouclimbhighertowards that sogenerouslysweetensMalvasia themselves tothesamebrightsun El Puertito,or“ the aridslopefromnowdefunct work theirwayupawindingtrailalong To reachthesevineyards,visitorscan Malvasia wines. capital, sippingoneoftheirdelicious on aterraceinSantaCruz,LaPalma’s evening afteralongtrek,youcanrelax painstaking workpaysoffwhen,come winemakers ofFuencaliente.Their volcanic stones,hand-builtbythe is protectedbyalow, curvedwallof into fragmentsoflava. Teneguia last canoes, yourfeetsinkmoredeeply earth. Eachvineshoot creep alongtheblack by theoceanwinds, ows ofvines,blownover TENERIFE little port TRAVEL CANARY ISLANDS GRAN CANARIA ”, exposing ”, exposing - ago bytheisland’s ancient over theoldfootpathscarvedlong government mappedouthikingtrails When tourismbegantodevelop,the This topologywasformedlongago. or perchedonthemountainside. of themanyvillagesalongcoast You canwanderoffthepathintoone chos, atanelevationof2,426metres. its highestpoint,RoquedelosMucha Europe, overlookingtheislandfrom oldest andlargestvolcanoesin Taburiente. Thiscraterisoneofthe lead uptothecrestofCalderade ning alongsidethechainofvolcanoes Perfectly markedoutfootpathsrun venture intotheheartofLaPalma. of theislandanditsvines,youcan Starting fromthesouthernmosttip were rapidlycoveredwithmorevines. the landbyseveralhectareswhich erupted inOctober1971,stretching FUERTEVENTURA LANZAROTE SWISSQUOTE MAYSWISSQUOTE 2016

AGADIR - -

NEWSCOM / INGRAM PUBLISHING 73 74

NEWSCOM / MARTIN SIEPMANN are advised to dress appropriately are advisedtodressappropriately reaching thearidsummitzone.Hikers pine treescanthenbefoundbefore variegated vegetation.Forestsand humid zonesareabundantwithlush, features scantgreenery,whilethe journeys inone.Thedry,coastalzone as thoughtheyhave madeseveral unusually diversethatwanderersfeel in adayofhiking.Thesceneryisso zones thatcanalmostbecovered La Palma isdividedintofivebioclimatic starting point. that takesexplorersbacktotheir be inalineratherthanformloop That’swhytheytendto populations. FIVE BIOCLIMATIC ZONES San Juan. thevolcanoof facing Volcanoes ”, here of the the “ Route A along hikerpauses wards to reach summit on the Route wards toreachsummitontheRoute metres andcontinuingtoclimbup altitudes ofbetween1,000and1,300 island horizontally,windingthrough taking thepathsthatcriss-cross they givehikersachoicebetween growing athigherelevations.Today, ers usedtotakereachtheircrops are thepathsthatisland’svillag straight line,oftenalongacrest.These to themountaintopsvirtuallyina Many ofthetrailsleadfromcoast off layersofclothing. stantly beaddingandpeeling summit –andshouldexpecttocon on theisland–rangingfromcoastto depending ontheirpreciselocation TRAVEL - - - but iswidelyavailable andcanserve private homes (Airbnb) maybesmall eter oftheisland.Accommodation in of townslocatedallalongthe perim Trails leave fromanyoneofanumber be longinsomestretches–andsteep. er excessivelyhigh,butthewalkscan The degreeoftechnicaldifficultyisnev tourists andareverywellmaintained. all thesetrailshave beenrecycledfor kilometres atlowerelevations.Today, so toavoid detoursofseveralextra tortured byoldvolcaniceruptions these steeppathsthroughlands to travel betweenvillages,preferring ers wouldtakethemountaintoproutes of theVolcanoes. Longago,thevillag TAPAS ANDAREPAS the gemofLaPalma historical capital,isstill Santa Cruz,theisland’s from alongday’sfrom hike. way the ideal torecover It’ssquare inSantaCruz. Alameda ofLa cobblestones ironchaironthewrought sitonawobblyas you savoured aretobe Arepas orchicken. with cheese like asandwich andfilled a maizepattysplitintwo theirhomecountry,from classicbrought culinary Venezuelans explainsthis island’s of large population arepas.discovering The of have theopportunity tapas, butyou’ll also enjoysucculentcourse Palma, canof you On La SWISSQUOTE MAYSWISSQUOTE 2016 - - - NEWSCOM / INGRAM PUBLISHING volcanic slopes ontheother. on onesideand greenhillsidesand fering splendidviewswiththe ocean the sunbutwithrooftopterraces of lead tosmallapartmentshidden from Islands. Well-weathered staircases full ofhomestypicaltheCanary lonial stylearchitectureandold town past subsistinitsmanypalaces,co stop atitsport.Afewremnantsof ing withtheAmericaswasrequiredto ry days,whenanySpanishshiptrad- pace hasslowedsinceitsformerglo capital, isalsoworthavisit.Thecity’s and itshistoricaladministrative Santa Cruz,stillthegemofLaPalma long hike. as astartingpointfortackling de La Palma de La lane inSantaCruz A stone colorful - - - TRAVEL for travel between towns.for travel between isavailable eicient busservice there. toget areas An developed orcompletely partially through andavoideasily long walks more forhikes points departure the isacartoreach option best To theisland, around get morning. inthe early with thereturn toSantaCruz, Gomera via La ife, leaving lateintheevening, Tener from service ofer aferry achs, companies twoshipping For stom withstronger those Canaria. Gran Palma withTenerife andLa lightsadayseveral linking with expanded, was recently Palmaalso available. Airport La are hireservices Car transport. publicwhich ofers extensive the island’s capital,SantaCruz, from kilometres seven located is airport fortheplane. The opt should toseasickness susceptible byplaneorferry.reached Anyone Islands, canbe land oftheCanary is Palma, westerly themost La GETTING TOLAPALMA SWISSQUOTE MAYSWISSQUOTE 2016 (8 February 2016). (8 February “ Los Indianos ”,“ Los The carnivalof The Santa Cruz de Santa Cruz La Palma La

- -

AFP / DESIREE MARTIN 75 SWISSQUOTE MAY 2016

BOUTIQUE

CYCLE ECOLOGY

The bicycles produced by Bamboo Bikes Barcelona, Spain, are handmade in bamboo wood, and every component – including the fork, wheels, saddle and gears – can be fully customised. Sturdy and manoeuvrable, a bamboo bike uses only 10 percent of the natural resources needed to make its conventional counterpart. www.bamboobikesbarcelona.com From $1,370.-

DIGITAL DOODLE

The Slate is a smart drawing pad that allows users to directly digitise notes, sketches or drawings done on real paper. Developed by researchers from Iskn, a startup based in Greno- ble, France, the pad is equipped with 32 sensors that track the exact position of any pen or pencil equipped with Slate’s special magnetic ring. The sensors track the ring and infer the position of the writing instrument. www.iskn.co About $180.- SNIFTER STYLE

Puiforcat commissioned Léo Dubreil, a talented young graduate from the Paris-based arts-and-crafts school Ecole Boule, to redesign one of its iconic creations : the cognac snifter. Shaped like a spinning top, the ultra-modern snifter comes with a lid which, once removed, can be used as a base to stabilise the rounded bottom. The snifter’s golden red- finished interior echoes the colour of the cognac. www.puiforcat.com About $2,150.-

76 BOUTIQUE SWISSQUOTE MAY 2016

SCREEN ART

Samsung has joined forces with French designers Ronan & Erwan Bouroullec to create Serif, a TV that could double as a work of art ! The set has a single monochrome wooden frame whose profile is designed to look like a capital “ I ”. The ports and connectors are concealed behind a fabric panel and the screen sits on a moveable stand that resembles an easel. The Serif collection is available in ivory white, dark blue or red. www.samsung.com From $790.-

GO DEEP

To delight extreme aquatic sports enthusiasts, Removu has launched R1+, a waterproof and weara- MOST ILLUMINATING ble version of its wildly popular live-viewer that can be used to Working with Ilonna Vautrin, display underwater action filmed a creative designer from Brittany, with a GoPro camera. Usable to the French design brand Lexon a depth of one metre, the R1+ has created Clover Garden, an LED comes with a screen for adjusting light that brings vibrant colour and focusing the GoPro remotely. to terraces and outdoor spaces. www.removu.com Weather-proof and rechargeable via a solar cell, Clover Garden is a About $100.- stylish and eco-friendly way to light up the spring evenings that are just round the corner. www.lexon-design.com About $44.-

ROBO VAC

Neato Robotics is a California-based company that designs autonomous vacuums. The vacuums navigate using a laser and can go deep into corners thanks to their D-shaped design. You can control them via Wi-Fi, and the latest model can clean up to 450 m². www.neatorobotics.com About $850.-

77 SWISSQUOTE MAY 2016

BOUTIQUElogerie WATCHLIST

FLIGHT TIME

The Breitling Exospace B55 is a connected chronograph with a suite of functions designed especially for pilots. Features include a flight timer, an electronic tachymeter, a chronograph that can record up to 50 split time events, a digital per- petual calendar and a countdown / countup clock. www.breitling.com About $8,830.-

A KEEPER WORLD VIEW

Six months after launching the Patek Philippe’s 5930 brings together Carrera Heuer-01, the backbone of a two of the features the watchmaker new collection of chronographs, TAG is most famous for : world time and Heuer has unveiled the automatic the chronograph. The new model is COSC-certified Carrera Heuer-02T, graced with a blue and silver dial and with a carbon and titanium flying round case in 18-carat grey gold. The tourbillon and a power reserve of 5930 combines the minimalist design more than 65 hours. The new model of the Bauhaus-inspired Calatrava costs less than 15,000 Swiss francs, 96 introduced in 1932 and “ winglet ” making it a price leader in the Swiss strap lugs typical of the world time watchmaking industry for its level watches of the 1940s and 1950s. of finish. www.patek.com www.tagheuer.com About $67,620.- About $15,500.-

AS YOU LIKE IT

Zurich-based Brüggler is offering clients the opportunity to create their own personalised Swiss-made chronograph online. A web-based Watch Creator tool is used to custom- ise every detail of the timepiece – including the dial, bezel, second and minute hands, strap and case – from among one billion possible configurations. Once the design is complete, a cost estimate is sent to the client and the watch can be delivered to the door within six weeks. www.bruggler.com From $4,470.-

78 Bernasconi Entreprise Générale SA

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When Lorenzo Stoll was appointed SWISS’s Head of Western LORENZO STOLL Switzerland in 2013 he had no HEAD OF WESTERN SWITZERLAND AT professional experience in civil SWISS INTERNATIONAL AIR LINES aviation. This graduate of the BORN ON 2 OCTOBER 1971 IN ZURICH Lausanne Hotel School began his career at Montreux-Vevey Tourisme before moving on to spend nearly 12 years at Nestlé. It is in fact his background and expertise in customer relations and service that are warmly welcomed at Cointrin Airport, where competition between low-cost airlines is high.

By pampering its customers both on the ground and in the air, SWISS hopes to stand out from CHURCHILL, its discount competitors, which put sole focus on getting pas- MONTE CRISTO sengers from point A to point B.

AND PADDINGTON DR

A KEY EVENT FROM YOUR CHILDHOOD ? SOMETHING CRAZY YOU DID RECENTLY ? When we moved from Winterthur to La-Tour- I treated myself to five photographs from de-Peilz. I was 10 years old and it felt as though the Paper Planes series by Sjoerd Knibbeler we were going to the other side of the world. (www.sjoerdknibbeler.com).

THE PROFESSION YOU WOULD HAVE LIKED TO DO ? THE FILM THAT YOU WOULD’VE LIKED TO EXPERIENCE ? Lawyer. But I was put off by the studies which The Good, the Bad and the Ugly (Sergio Leone, 1966). seemed, at the time, too theoretical. So I went to the Lausanne Hotel School, where I discovered THE IDEAL WOMAN ? the enjoyment and satisfaction of serving guests. My wife.

YOUR SECRET HOBBY ? THE IDEAL MAN ? I collect comic books. Winston Churchill. He’s determined, engaged, eloquent and mischievous. SOMETHING THAT INSPIRED YOU RECENTLY ? The American astronaut Buzz Aldrin, the lunar THE IDEAL ANIMAL ? module pilot from Apollo 11, shaking hands Bears, for all the imagery they bring to mind, from the with the Russian cosmonaut Alexei Leonov, wild grizzly bear to the teddy bear Paddington Bear. the first man to walk in space, at a conference in Lausanne. Two men who made history. YOU WIN 5,000 SWISS FRANCS ON THE STOCK EXCHANGE. WHAT DO YOU DO WITH THE MONEY ? A SONG THAT SUMS YOU UP ? I buy a work of art. A painting, a sculpture, Shine on you crazy diamond by Pink Floyd. a drawing or a photograph, whatever, as long as it speaks to me. A PLACE THAT MADE AN IMPACT ON YOU – AND WHY ? Cimalmotto, a small village nestled deep in a Ticino A BOOK THAT YOU RECOMMEND ? valley. Growing up, we would spend our summer The Count of Monte Cristo by Alexandre Dumas. holidays there. It was total freedom. We’d come up with new adventures every day. YOUR FAVOURITE WORD AND YOUR FAVOURITE SWEAR WORD ? Fantastic ! and Load of...

80 New Retro

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DG_SWISSQUOTE-Mag_janv2016.indd 1 13.01.16 10:38 Themes Trading turns trends into investments.

Discover more than 50 trends on www.swissquote.ch/themes-trading

Clean Energy Environment • Technology • Nature

MID LONG TERM RISK