Post #22: “Technology is the best way to differentiate ourselves” - Heptagon Capital – Production

These were the words uttered by an executive whom we met when visiting businesses in Denmark last week. It is also a statement with which we wholeheartedly…

Post #22: “Technology is the best way to differentiate ourselves”

These were the words uttered by an executive whom we met when visiting businesses in Denmark last week. It is also a statement with which we wholeheartedly agree. To misquote Charles Darwin, it is neither the strongest nor the most intelligent of businesses that will survive in the long-term, but those that are most responsive to change. Below follow very brief highlights on how the three businesses we met are currently using technology to differentiate themselves – 

Christian Hansen is the largest producer of ‘good bacteria’ in the world, with its solutions used in the food & beverage and healthcare industries. Growing consumer demand is driving the need for innovation in areas such as the microbiome and plant nutrition (e.g. products such as Impossible Burgers). Even in somewhat more mundane categories such as cheese, its latest product (KY-MAX) can drive up to a 1.0% increase in yield, which is clearly attractive for dairy producers. Looking ahead, Hansen sees scope for its innovation to target market opportunities such as substitutes for antibiotics in farming. 

Novo Nordisk is the world’s leading manufacturer of insulin for the treatment of diabetes. There is a clear emphasis on growing research spend at present, particularly into areas where there are the biggest unmet needs, such as obesity (some 80% of diabetics are also obese). Much of the effort at Novo is also on considering other ‘adjacencies’ such as cardiovascular, kidney and liver issues, which also often impact diabetics. Within diabetes specifically, Novo sees further scope to differentiate itself through developing its oral franchise (i.e. moving away from having to inject insulin) and through extending product life (i.e. so patients need take doses less regularly). 

Vestas is the biggest player in the global wind turbine industry. Its scale has helped it recently to innovate ahead of its peers in the following key areas (1) hybrid solutions – Vestas is offering integrated software solutions that will allow customers to purchase combined wind, solar and storage packages. Hybrid solutions can help lift alternative energy penetration into the grid (2) the EnVentus platform (launched in January) represents a step-change in turbine production, shifting to a modular system which allows for improved turbine production and wind farm configuration (3) the recent Utopus acquisition is allowing Vestas to push into new areas regarding algorithms for turbine operators to optimise wind usage in different conditions.

Disclaimers

The document is provided for information purposes only and does not constitute investment advice or any recommendation to buy, or sell or otherwise transact in any investments. The document is not intended to be construed as investment research. The contents of this document are based upon sources of information which Heptagon Capital believes to be reliable. However, except to the extent required by applicable law or regulations, no guarantee, warranty or representation (express or implied) is given as to the accuracy or completeness of this document or its contents and, Heptagon Capital, its affiliate companies and its members, officers, employees, agents and advisors do not accept any liability or responsibility in respect of the information or any views expressed herein. Opinions expressed whether in general or in both on the performance of individual investments and in a wider economic context represent the views of the contributor at the time of preparation. Where this document provides forward-looking statements which are based on relevant reports, current opinions, expectations and projections, actual results could differ materially from those anticipated in such statements. All opinions and estimates included in the document are subject to change without notice and Heptagon Capital is under no obligation to update or revise information contained in the document. Furthermore, Heptagon Capital disclaims any liability for any loss, damage, costs or expenses (including direct, indirect, special and consequential) howsoever arising which any person may suffer or incur as a result of viewing or utilising any information included in this document. 

The document is protected by copyright. The use of any trademarks and logos displayed in the document without Heptagon Capital's prior written consent is strictly prohibited. Information in the document must not be published or redistributed without Heptagon Capital's prior written consent. 

Heptagon Capital LLP, 63 Brook Street, Mayfair, London W1K 4HS
tel +44 20 7070 1800
fax +44 20 7070 1881
email [email protected] 

Partnership No: OC307355 Registered in England and Wales Authorised & Regulated by the Financial Conduct Authority 

Related Insights

Featured Insights
Featured Insights08 April 2021

Season 3, Post 14: Fake steak and test-tube tomatoes

Next week marks the reopening of London’s restaurants – at least for outdoor dining – for the first time since December 2020. Menus will likely be full of the joys of spring; perhaps an asparagus starter followed by some young lamb. Needless to say, your author already has several reservations in his diary. While not […]

Learn more
Featured Insights
Featured Insights01 April 2021

Season 3, Post 13: Life on Mars

Plans are afoot to build the first human city on Mars. Yes, you did read that sentence correctly; it is not an April Fool’s Day spoof. Spanish design firm and think-tank ABIBOO released plans last week for a conceptual city on the red planet that would see construction commence in 2054 with the intention for […]

Learn more
Featured Insights
Featured Insights25 March 2021

Season 3, Post 12: At the nexus of innovation

Your author has spent his last two afternoons virtually in New York. It’s obviously nowhere near as exciting as being in the city itself, but the NEXUS:ISRAEL Dealmakers’ Summit was arguably the most interesting online event I have attended in the last year. Organised in conjunction by Landmark Ventures and the Hebrew University of Jerusalem, […]

Learn more

Get The Updates

Separated they live in Bookmarks right at the coast of the famous Semantics, large language ocean Separated they live in Bookmarks right