Rutgers Food Innovation Center Partners for Growth From Concept To Commercialization

1. Rutgers Food Innovation Center Partners for Growth From Concept To Commercialization Conference Field Trip - October 5, 2008

2. Agenda for Today • Presentation • Business Incubation Overview • CFSC – FoodBIN 2008 Conference Overview • Rutgers Food Innovation Center Overview • Introductions • Lunch and Networking • Rutgers Food Innovation Center Facility Tour • Regroup and Q&A

3. Business Incubation Overview • Business incubation is a business support process that accelerates the successful development of start-up and fledgling companies by providing entrepreneurs with an array of targeted resources and services. • Services are usually developed or orchestrated by incubator management and offered both in the business incubator and through its network of contacts. • A business incubator’s main goal is to produce successful firms that will leave the program financially viable and freestanding. These incubator graduates have the potential to create jobs, revitalize neighborhoods, commercialize new technologies, and strengthen local and national economies.

4. Business Incubation Overview • Incubators vary in the way they deliver their services, in their organizational structure and in the types of clients they serve. Highly adaptable, incubators have differing goals, including diversifying rural economies, providing employment for and increasing wealth of depressed inner cities, and transferring technology from universities and major corporations. • The earliest incubation programs focused on a variety of technology companies or on a combination of light industrial, technology and service firms – today referred to as mixed-use incubators. However, in more recent years, new incubators have emerged targeting industries such as food processing, medical technologies, space and ceramics technologies, defense, arts and crafts, and software development. Incubator sponsors have also targeted programs to support microenterprise creation, the needs of women and minorities, environmental endeavors and telecommunications.

5. Incubator Client Services Vary • Entrepreneurship Development & Networking • Business Planning, Milestone Tracking, Mentoring • Marketing, Product, Manufacturing Strategy • Access to Finance, Accounting, Capital • Access to Customers • Access to Academic Resources • Grant Training & Writing Support • Seed Funding/Cost Sharing • Navigation through Government Agencies • Access to R&D, Prototyping, Quality Assurance • Licensing, IP and Corporate Governance • Regulations and Compliance Support • Workforce Development &Training • Laboratory Space • Professional Business Environment • Office services & equipment • Conference rooms • Flexible, affordable leases

6. Business IncubationA Proven Model for Business Growth, Economic Development and Community Revitalization • 7,000 business incubators exist worldwide (NBIA), including over 1,400 in North America • Providing expertise, networks and tools that entrepreneurs need to make their ventures successful • Very few incubators focused on food industry • Rutgers FIC believed to be unique model worldwide • Contribute substantial ROI to their communities • Business incubators reduce the risk of small business failures. Historically, NBIA member incubators have reported that 87 percent of all firms that have graduated from their incubators are still in business. • NBIA members have reported that 84 percent of incubator graduates stay in their communities • Research has shown that for every $1 of estimated public operating subsidy provided the incubator, clients and graduates of NBIA member incubators generate approximately $30 in local tax revenue alone.

7. CFSC – FoodBIN 2008Conference Overview

8. FoodBIN 2008 – The 6th Annual Conference of the Food Business Incubation Network! • Rutgers FIC Organized First Conference on Food Business Incubation • 2002: Rutgers Food Innovation Center • 2003: Northeast Center for Food Entrepreneurship at Cornell • 2004: SUNY Morrisville • 2005: Oregon State University Food Innovation Center • 2007: Iowa State University • 2008: Rutgers Food Innovation Center, in partnership with Community Food Security Coalition • The FoodBIN conference has become the world's leading venue for advancing best practices in food business incubation, and identifying programs, services, funding sources, and partnerships that can maximize impacts to food and agribusinesses within regional economies

9. Food and Agribusiness Incubation – A Catalyst for Regional Economic DevelopmentMonday, October 6, 11:15am – 12:45pm • Presenters: • Lou Cooperhouse, Director, Rutgers Food Innovation Center • Ron Tanner, VP, National Association for the Specialty Food Trade • Description: • This session will identify best practices in food business incubation, goals and types of services that can be provided, and the unique needs for incubation programs that focus on the food and agricultural sectors. Examples of award-winning specialty food products will be identified, developed by entrepreneurs in communities across America, which serve to illustrate the keys for success in the food marketplace that must be met by industry startups.

10. Food Business Incubation – One Size Does Not Fit AllMonday, October 6, 2:15pm – 3:45pm • Presenters: • Caleb Zigas, La Cocina Community Kitchen • Jan Tusick, Mission Mountain Food Enterprise Center • Larry Fisher, Appalachian Center for Enterprise Networks • Ken Gossen, Alberta Agriculture and Rural Development • Description: • Food business incubation programs may have very different sponsoring agencies, organizational structures, missions, clients, and types of services that are offered to entrepreneurs in their communities. In this panel, you will meet directors from very successful incubator programs that differ widely in the location of the program itself, the geographies that are served, the population base that is targeted, the organization that provides support, types of funding that have been received, types of fees that are charged, and the overall size and depth of the operation.

11. State and Federal Programs for Funding Your Incubator, Community, and Your ClientsTuesday, October 7, 11am – 12:30pm • Presenters: • Andrew Law, New Jersey State Director, USDA Rural Development • Dionne Toombs, National Program Leader, Competitive Programs, USDA CSREES • Elizabeth Tuckermanty, National Program Leader, Competitive Programs, USDA CSREES • Margaret Brennan, Director of Economic Development, Rutgers NJAES • Description: • A number of state and federal agencies provide funding assistance that can directly support food business incubation programs, as well as small farms and food industry entrepreneurs. Funding can include grants, loans and loan guarantees, and can be used for a broad variety of purposes. An overview of both federal and state funding programs will be described in this seminar, which can provide great benefits to incubator programs as well as to incubator clients.

12. Microenterprise, Private-Sector and Foundation Programs for Funding Your Incubator, Your Community, and Your ClientsTuesday, October 7, 2:15pm – 3:45pm • Presenters: • Jim Duffy, Partner in Charge, Food Industry Group, Wiss & Company • Diane Holtaway, Associate Director Client Services, Rutgers Food Innovation Center • Carol Coren, Business Association Mentor, Rutgers Food Innovation Center • Description: • In order to assure critically needed cash flow, and potentially create a financially self-sustaining incubator program, it is critical that funding streams be identified from both public and non-public sources. Food business incubators are somewhat unique, in that a number of revenue sources can exist for services that can be provided. In this seminar, both traditional and non-traditional sources of funding will be described, that can benefit your incubator program as well as your incubator clients.

13. FoodBIN 2009 and Beyond Wednesday, October 8, 10:30am – 12:00pm • Facilitators: • Lou Cooperhouse, Director, Rutgers Food Innovation Center • Margaret Brennan, Director Economic Development, Rutgers NJAES • Description: • There have now been six FoodBIN conferences, and the future of FoodBIN will be discussed during this seminar. A business plan has been developed for FoodBIN, which will be described, and this seminar will provide an opportunity for attendees at this conference to brainstorm how FoodBIN can potentially provide even greater benefits to the food and agribusiness incubation community, and result in potential partnerships and collaborations that leverage collective resources and increase economic impacts.

14. Rutgers Food Innovation Center Overview

15. Rutgers UniversityCommitment to Food and Agriculture Industry • 24 Undergraduate and 11 Graduate Programs • 24 Centers and Institutes • 21 Cooperative Extension county offices • Office of Continuing Professional Education • Extensive Range of Outreach, Research and Community Projects with focus on Food, Nutrition, Health and the Environment • Food Innovation Center is newest program, and based in Bridgeton

16. Food and Agribusiness Industry Needs • Need forinformationon business planning, market research, capital access, corporate governance, regulatory and permitting requirements, legal matters, product and process development, marketing and sales strategy… • Need for training and workforce development on best practices in quality assurance and food safety • Need for assistance in development ofvalue-added differentiatedproducts, in order to compete in an increasingly complex retail and foodservice environment, which is undergoing significant industry consolidation • Need to reduce startup expense associated with new product development, equipment costs, and market entry • Need to safely and legally produce products in an FDA and USDA inspected facility

17. New Jersey Food Industry Sector • The Agriculture and Food Industry is one of New Jersey’s leading industries, rivaling the pharmaceutical industry in size. • $82 billion in direct sales (10% of state). • More than $7.65 billion in wages (6% of state). • More than 26,000 firms (12% of state). • More than 375,000 jobs (11% of state). • Critical to South Jersey economy • Contributes to economic stability for entire state • The New Jersey region has the wealthiest, highest population density, multi-ethnic consumer market in the world….60 million consumers live within 6 hours driving time from New Jersey

18. Food Innovation Center Geographic Base Bridgeton, Cumberland County • Among 566 municipalities in NJ, Bridgeton’s • Per Capita Income is 2nd lowest in state ($10,917 vs. $27,006 for state), • Poverty level is 6th highest in state, with >26% of population in poverty (vs. 8.5% for state) • Cumberland County has : • Lowest per capita income in the state- $17,376 vs. NJ avg. of $27,006 (and $21,587 US avg.) • Highest percent of households below poverty level at 15% • Southern NJ is hub of New Jersey’s food processing and agricultural industry, yet its economy has significantly worsened over past few decades To create jobs in this region, a strong, viable food industry is critically needed.

19. Mission To stimulate and support sustainable economic growth and prosperity to the food and agricultural industries in the New Jersey region by providing businesses with innovative research, customized practical solutions, resources for business incubation and a trusted source for information and guidance Vision To serve as the catalyst that will promote a viable and prosperous food processing and agriculture base in New Jersey, translating into considerable benefits for the region, that will become recognized as a global model for regional economic development

20. Over 1,000 Companies Assisted to Date • Farmers and Cooperatives desiring to create new businesses based on value-added agricultural products and/or developing new markets for their existing commodities • Startup food companies coping with challenges such as financing, technology, regulations, market development, and infrastructure requirements • Established food companiesseeking to introduce new products and processes, access new technologies, upgrade quality assurance capabilities, enter new markets with branded or private-label products, and expand and improve their operations • Retail and Food Service Establishments seeking to improve their operations and purchase local NJ products

21. Food Innovation CenterServices Provided • Business Development • Marketing and Sales Support • Product and Process Development • Quality Assurance and Food Safety • Regulations and Compliance • Workforce Development and Training

22. Rutgers University Local, State and Federal Agencies Farmers &Coops NJ BIN & Incubator Programs Worldwide Industry Service Providers Food Startups Food Manuf. Comm. Colleges & Univ. Worldwide Consultant Network Retail& FoodsvcMarkets Food Innovation CenterClient and Resource Cluster Created For Food Industry Growth

23. Statewide, National, International Recognition • Awarded by NBIA as “Incubator of the Year,” in the services and manufacturing category, among incubators globally in 2007 • Awarded the winner of the USDA-CSREES Partnership Award for Innovative Program Models in 2007, among programs nationally, for “achievement as a model for community and economic development and jobs creation” • Recognized by USDA as an “Agricultural Innovation Center Demonstration Program,” one of only ten such centers in US • Recipient of the Rutgers Presidential Award for Research and Service to New Jersey in 2008

24. 23,000 s.f. Food Business Incubator FacilityBridgeton, NJGrand Opening October 17, 2008 Enabling Product Design, Development, Analysis, Commercialization, and Ongoing Manufacture of Products for Sale to Retail and Foodservice Markets

25. Client Services Area • Business Mentoring • Product Development Research Kitchen • Sensory Analysis Laboratory • Microbiology and Analytical Laboratories • Conference and Education Facilities, with Focus Group Observation Area • Office and Administrative Support

26. Shared-Use Processing Area • Fresh-Cut Cold Processing • Beverages and Hot Processing • Bakery and Dry Processing • Cold Assembly/Clean Room • Blast Chilling and Freezing • Storage – Refrigerated, Frozen, Ambient

27. An array of technologies will be available…

28. ...Enabling great product capabilities

29. For Further Information: Rutgers Food Innovation Center 450 East Broad Street Bridgeton, NJ 08302 www.foodinnovation.rutgers.edu 856-459-1900