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Innovative mobile “continuous food mixer” to improve the sustainable use of raw materials and the quality of the products

Periodic Reporting for period 1 - SANSO V2.0 (Innovative mobile “continuous food mixer” to improve the sustainable use of raw materials and the quality of the products)

Reporting period: 2017-02-01 to 2017-05-31

The bakeries sector is a key food industry which is experiencing a steady growth, with a forecasted global market volume of €446 billion by 2020. Mixing is a key process in industrial baking since it largely determines the quality of the final products. Current industrial mixing systems are inefficient, requiring high ingredients, energy and labour inputs to obtain satisfactory results while generating substantial amounts of food waste.
HAPAB, an innovative Swedish company, has developed a novel mixing system that saves solid ingredients (an average of 4.2% compared to current technologies), energy (22.5 % less consumption) and labour costs (1€ per tonne approx.) while eliminating food waste and producing top quality end products: SANSO 2.0. By installing SANSO V2.0 industrial bakeries will substantially reduce their manufacturing costs (up to €500,000 per year) and environmental footprint (by reducing their ingredients and energy consumption and eliminating food waste from mixing operations).
SANSO V2.0 has reached TRL 7 and is protected by a patent. We have built a 0.5 tonne per hour capacity pilot line (SANSO V1.0) and extensively tested its performance in our facilities and in our end users’. The last development steps will be achieved through SANSO V2.0 project by scaling up the technology to industrial capabilities and validating it with the collaboration of leading European industrial bakeries.
SANSO V2.0 Feasibility Study has pointed out the unique business opportunity provided by SANSO V2.0 and its technical, commercial and economic viability. In addition we have identified the technical and commercial tasks that need to be developed in order to get SANSO V2.0 successfully into the market. Therefore we have decided to continue with the project. As the natural path after the Phase 1 project from the SME Instrument, HAPAB considers the Phase 2 funding opportunity as the best option.
We have performed a 4 months feasibility study on SANSO V2.0. The following key aspects of the project were assessed:
 Technical Plan: We further assessed SANSO V1.0 trials results. Results indicated 4.2% solid ingredients savings and 22.5% less energy consumption when compared with SoA technologies. We identified and described the industrial technical requirements of SANSO V2.0 (5 tonne per hour capacity) in the development steps. We identified SANSO V2.0 project development risks and proposed mitigation and contingency measures. We elaborated a complete Work Plan based on 3 technical packages and 2 commercial and management work packages. We estimated the personnel, time and budget requirements.
 Commercial Plan and FTO analysis: We developed a complete market analysis identifying our end users (industrial bakeries) and their needs, market size (€885 million) target markets, future trends, market barriers and competitors. We researched and identified relevant certifications and regulation. We developed our commercial and exploitation strategy in an updated Commercial Plan. We developed a Freedom to Operate (FTO) analysis that confirmed the possibility to commercialise SANSO V2.0 in our target countries and determined the best action plan in order to protect SANSO V2.0 related intellectual property (patent/trade secret).
 Financial Plan: We analysed the financial viability of the SANSO V2.0 project in order to predict the expected revenues (€40 million by 2024), profit (€26.67 million by 2024), personnel and economic requirements. We estimated a €2.4 million project budget in order to develop the project. We identified the SME Instrument Phase 2 as the best funding opportunity for SANSO V2.0.
The results of the study proved SANSO V2.0 to be technically, commercially and financially feasible and confirmed us on our decision to continue with the project and pursue the SME Instrument Phase 2 opportunity.
SANSO V2.0 is a complete game changer for the bakery industry. By installing SANSO V2.0 in their production lines, our end users will be able to produce top quality dough while cutting their solid ingredients requirements (up to a 4.2%) and energy expenses (up to a 22.5%), resulting in savings of around 12 € per each tonne of dough they produce (equivalent to €500,000 per year when working at full capacity). Moreover, SANSO V2.0 is a continuous, versatile and mobile solution suitable for the production of multiple end products that allows quick changeovers (less than 15 minutes), enabling our end users to easily adapt their production to the market demands at any given moment.
By implementing SANSO V2.0 the European bakery industry could save up to €570 million in solid ingredients (4.2% solid ingredients savings). Moreover SANSO V2.0 reduces the energy consumption of current mixing technologies in a 22.5% resulting in additional savings of 5kWh per tonne of dough (around 1€ per tonne at current energy prices), and also reduces labour costs in approximately 1€ per tonne of dough. Total energy and labour savings for the European bakery industry would reach over €80 million.
By reducing ingredients consumption in a 4.2%, SANSO V2.0 will have a significant impact along the supply chain: less ingredients mean less land use, less fertilisers and less energy invested in previous processes and transportation. In addition, by reducing the energy consumption of the mixing process in a 22.5%, industrial bakeries will substantially decrease their carbon footprint. Moreover, unlike other mixers, SANSO V2.0 does not generate food waste, eliminating the need to landfill or incinerate food waste and therefore preventing GHG emissions, land use, and air, water and soil pollution derived from these operations.
We expect HAPAB’s profit from SANSO V2.0 to be over €24 million by 2024 while the total turnover by that year is estimated to be more than €40 million.