Combating Malnutrition through Sustainable Interventions Brussels, 8 November 2011 Marc Van Ameringen Executive Director
History • In 2002, the Gates Foundation, the UN system, the U.S. and Canadian Governments founded GAIN because they believed two things: • The world had the tools to end malnutrition but had not yet scaled investment to make it happen; and • That because people buy their food (even the poorest and most rural people buy all or some), business is a key player in order to achieve lasting access for entire populations • Thus, GAIN was created to stimulate business, government and civil society to take steps that would scale access to affordable and nutritious food. • Formal creation in 2002 during UN Special Session on Children and hosted in the UN system • Evolved into a International Organization and given this official Status by Swiss Government in 2010 • Headquarters in Geneva, Switzerland • Regional offices in Johannesburg (Africa), New Delhi (South Asia), Washington D.C. (Americas) and country offices in Egypt, Kenya, Nigeria, Bangladesh and Afghanistan
A multi-pronged approach to improving nutrition outcomes Reduced Malnutrition Social and economic development ... to improve key nutrition outcomes ... ... leading to improved outcomes By addressing the causes of malnutrition ... Food availability & access Optimal growth and physical development Food / nutrient intake Cognitive development Behavior / care practices Income poverty: employment, assets Social, economic & political context Lack of capital: financial, human, social, natural Resilience to disease Infection / disease Environment / health services Survival • Represented by key indicators • Micronutrient deficiencies • Stunting • Underweight Virtuous cycle of development
The world’s major nutrition alliance and PPP Platform Foundations Public sector Private sector International International Nutrition impact National National • GAIN taps the resources, experience and scale of business; • Assists developing country governments with developing nutrition policies, legislation and oversight structures; and • Taps relationships, networks and knowledge from donor governments and the UN. • With top engagement and access to all of the above, GAIN is the world’s proactive ‘broker’ to align partners for large scale and lasting impact.
Nutrition programs GAIN premix facility Population Based Nutrition Programs Targeted Nutrition Programs
Starting with improving food availability, access and adequacy: along the value chain
Premix facility (GPF) • Tackling the challenges that producers and buyers of fortified foods face in accessing high-quality premix blends of vitamins and minerals to add to their food products at competitive costs • Including four distinct functions: certification, procurement, credit and grants Key Achievements of the GPF • Sourced premix orders worth >US$ 10 million • Estimated to have reached 60 million consumers in developing countries • Delivered premix in 19 countries • Certified 15 blenders and 17 micronutrient suppliers Customer location
The Future Fortifiedcampaign Future Fortified is a global campaign to raise public and political will for nutrition, helping millions of women and children around the world access the essential nutrients needed to lead healthy, enriched lives. Improved nutrition for pregnant women, new mothers and young children is especially critical during the 1,000-day period from pregnancy to their second year of life. Future Fortified provides innovative and easy ways for individuals, businesses and organizations to get involved. Our goal is to provide access to improved nutrition for 50 million women and children in developing countries by 2015.
Projects worldwide Asia and Eastern Europe Africa South America interventions in over 30 countries, fortifying staple foods, condiments, and complementary foods with vitamins and minerals Salt Iodization National Food Fortification Infant and Young Child Nutrition
Reach 400M people (1/2 women and children)On track to 1 billion target Uzbekistan Kazakhstan Georgia China Dominican Republic Egypt Mali Pakistan Vietnam Cote d'Ivoire Uganda Ghana Nigeria Nigeria South Africa = 10M people
DIFFERENT PATHWAYS TO SUSTAINABILITY THROUGH UTILIZATION OF PUBLIC-PRIVATE-PARTNERSHIPS
GAIN’s core focus on market-based approaches • GAIN's approach is to make the market for nutrition food more effective, for example • by overcoming barriers, including funding, policy, regulatory, or other issues • by establishing delivery systems using the market • by ensuring incentives of market players are aligned • is unique among major nutrition organizations Example: Universal salt-iodization project Market-based approach GAIN identified key barriers in current market... ... and designed specific programs to address these barriers GAIN can also achieve significant leverage1 through public institutions2 supporting GAIN's approach
Working with the private sector to create ‘shared value’ “Shared value enhances the competitiveness of a company while simultaneously advancing social and economic conditions in the communities in which it operates.”1 • Creates economic value by creating societal value • What is good for the community is good for business • All profit is not equal. Profit involving shared value enables society to advance more rapidly and allows companies to grow faster • Incorporating societal issues into strategy and operations is the next major transformation in management thinking • Open new markets by serving unmet needs in underserved communities often requires redesigned products or different distribution methods • The pursuit of shared value represents the next evolution of capitalism 1Michael Porter & Mark Kramer. The Big Idea: Creating Shared Value. Harvard Business Review. Jan-Feb 2011
Transition from CSR to shared value Corporate Social Responsibility Creating Shared Value Value: economic and societal value relative to cost Joint company and community value creation Integral to competition Agenda is business specific Example:transforming procurement to increase quality and yield • Values: Doing Good • Good citizenship, philanthropy and sustainability • Discretionary • Agenda is externally determined • Example: Free Trade purchasing
Case study: Britannia Industries Company Overview • Founded in 1892 – Britannia grew from a small baker of biscuits to one of India’s biggest brands and market leading food companies. It is a leading innovator in both products and marketing – known for quality. In 1997, they launched a new corporate identity ‘Eat healthy, Think Better” Hindu meaning “Eat Healthy, bring your mind, body and spirit to life.” Addressing Malnutrition in India • India has 100 million children under five, and of these 47 per cent are malnourished, the largest single deficiency being of iron. Sixty per cent of school-age children in India are estimated to suffer from anemia. Aligning Business & Social Goals to Create Shared Value • In 2007, branded biscuits was a US $1.5bn business and 90% of the company’s annual revenue, reaching 90% of all urban and rural households. Biscuits were identified as a viable nutrition category. Under the leadership of Vinita Bali, CEO, she challenged the business to come up with profit improvement programmes every year that would finance the incremental cost of the micronutrients they add so that the consumer would not have to pay anything extra, citing “That is good for the consumer, good for the children, and good for the company too.”
Case study: Britannia Industries Decision to Fortify • Two things informed their decision – it had to be sustainable and it would be an integral part of the companies nutrition efforts “This is not about CSR…this is the other side of the business coin for us…we are a publically listed company, a sustainable effort is the only way we can make an impact” Improving Lives and Profits • The pilot was validated, and now 10 million packs of Britannia fortified biscuits and bread are sold across India every day. Since Vinita Bali took over, Britannia has delivered its highest ever growth rate (CAGR > 20 per cent), and been rated as India’s favorite food brand reaching more than 50 per cent of Indian homes. • Going one step further – Britannia is the only biscuit company in India to have removed transfats from all their formulations and recipes. In 2011, 50% by volume of everything they sell is now fortified with micronutrients. Both these ranges and the more ‘indulgent’ foods like chocolate biscuits and filled snacks are growing at a double digit rate.
Case study: Renata Limited Company Overview • The Company started its operations as Pfizer (Bangladesh) Limited in 1972. For the next two decades it continued as a highly successful subsidiary of Pfizer Corporation. In 1993 Pfizer transferred the ownership of its Bangladesh operations to local shareholders, and the name of the company was changed to Renata Limited. Renata has more than 3,500 employees, US$ 74 million in annual turnover and a US$ 350 million valuation on the Dhaka stock exchange. Addressing Malnutrition in Bangladesh • Malnutrition in Bangladesh are amongst the highest in the world, and this is a major cause of death and disease in children and women. Bangladeshi children also suffer from high rates of micronutrient deficiencies, particularly vitamin A, iron, iodine and zinc deficiency – more than 80% of infants 6-12 months of age are anemic. Aligning Business &Social Goals to Create Shared Value • Entering into a partnership with GAIN and BRAC, the world’s largest NGO, Renata is manufacturing low-cost single serving packets micronutrient powders that can be added to an infants (over 6 months of age) or young child’s food to reduce micronutrient deficiencies. Renata Limited also sells the packets through their pharmacy and physician networks to higher end consumer groups.
Case study: Renata Limited Innovative BOP Business Model • By partnering with GAIN and BRAC, Renata was able to create an initial market for their new product. Investments by GAIN went towards demand creation among BOP consumers in partnership with BRAC, and business model innovation (revolving fund for BRAC distributors). BRAC supports more than 80,000 community health workers in 84,000 villages across Bangladesh, reaching three quarters of the entire population with an integrated package of services for rural and urban communities. The community health worker sells the micronutrient packets to families, and earns a portion of the proceeds from the basket of products she sells. The model is projected to break even and eventually become profitable in 3-5 years based on total volume of sales in the BOP and pharmacy marketplace. Renata Limited’s Long Term Business Goal • Micronutrient powders are a rapidly growing innovation that is being deployed to fortify meals prepared in low-income homes to reduce micronutrient deficiencies – with the largest public health gains achieved among infants and young children. Renata recognizes the potential of this market globally, and has business objectives to become an exporter of this product across Asia and Africa. GAIN is working with Renata to identify new markets for export and is building the evidence base on the effectiveness of these products at reducing micronutrient deficiencies among vulnerable women and children.
Additional Innovative Business Models Grameen Danone established to promote nutrition in Bangladesh PLK promoted complementaryfood in Ivory Coast • Joint venture between Grameen & Danone launched in 2006 to provide nutritious food to low-income children in Bangladesh 50 plants set up till 2016 to produce MN fortified yoghurts; plants to be spread around Bangladesh to foster local economies Social business model where profit not appropriated by investing partners; goes to welfare & employment opportunities of locals Grameen has since founded 6 additional "social business" joint ventures with multinationals and Grameen companies PKL founded to provide affordable and accessible cereal-based complementary foods to the base of the pyramid; PKL works only with local producers Main product targets infant 6-24 months to complement breastfeeding; PKL to lead awareness campaigns on breastfeeding GAIN IYCN program invested in PKL in 2009 to support repackaging, marketing and distributing of products to reach low-income families; GAIN-PKL now cooperating on product quality control too
NEW TYPES OF PARTNERSHIPS INVOLVING BILATERAL DEVELOPMENT AGENCIES
Amsterdam Initiative Against Malnutrition - AIM Public Private Partnership • The Amsterdam Initiative against Malnutrition (AIM) is a joint initiative of the Ministry of Foreign Affairs of the Government of the Netherlands, Unilever, DSM, AkzoNobel, Wageningen University and ICCO • Focus: East Africa and Ghana • AIM partners combine the know-how of major players in the food and nutrition industry in six countries: Kenya, Tanzania, South Africa, Ethiopia, Ghana and Mozambique. • Objectives • Eliminate malnutrition for 100 million people in Africa by 2015. • Reduce vitamin and mineral deficiencies by 20% • Target vulnerable populations, especially children and mothers. Approach • Truly understand the “wants” of the BoP consumer (women in reproductive age, WRA, and children under 5) • Use market insights to develop and market affordable and aspirational nutritious food solutions through accessible channels – matching the “wants” with the “needs” • Look for nutrition impact throughout the agriculture value chain