SBC103 case

Crafting Delicious & Sustainable Jackfruit Plant-Based Delicacies for Health, Prosperity & the Planet

Abstract

This academic case study delves into the business model innovation and execution of Lemit Foods, a pioneering social enterprise dedicated to crafting sustainable and delectable plant-based delicacies from young jackfruit, seeds, and fibers. The case study concludes with actionable recommendations to augment Lemit Foods’ business model and amplify its positive influence in the burgeoning plant-based food market. Through this in-depth examination, Lemit Foods’ transformative journey towards health, prosperity, and environmental preservation comes to light, inspiring similar ventures to drive positive change in the global food industry.

The case study reveals that Lemit Foods’ value-added activities, from sourcing raw materials to innovative food processing technologies, showcase meticulous craftsmanship in mimicking the taste and texture of meat. By leveraging key resources and strategic partnerships, Lemit Foods has created a competitive advantage in the market, leading to increased attraction of customers, farmers, and stakeholders.

This section provides real-world examples and evidence of Lemit Foods’ business model execution in practice.

Introduction

The success of any business lies not only in its innovative ideas and value proposition but also in its ability to execute the business model effectively in the real world. Lemit Foods, a pioneering social enterprise, has set out on a mission to craft sustainable and delicious plant-based delicacies using young jackfruit, seeds, and fibers. This case study delves into Lemit Foods’ business model execution, examining its market traction, customer feedback, revenue generation, and the realization of its vision and mission.

In this section, we will explore how Lemit Foods has translated its unique value proposition into tangible economic and social values for its customers, farmers, and the broader society. By analyzing the company’s approach to risk management and learning from its experiences, we will uncover the strategies employed by Lemit Foods to overcome challenges and maximize its impact in the plant-based food market.

Lemit Foods has a multi-faceted social solution design with several intended impacts. The company aims to promote a healthy and sustainable plant-based diet by offering flavorful and textured alternatives to meat products. This can reduce health concerns related to excessive meat consumption. To achieve this, Lemit Foods plans to expand its diverse portfolio of plant-based products while showcasing Vietnamese cuisine arts and culture. It is committed to making its products affordable, accessible, and appealing to a wide range of consumers. In addition, Lemit Foods supports local farmers and communities by creating a new jackfruit meat industry, which contributes to the economic development of the region and promotes healthier and more sustainable food choices. Lastly, Lemit Foods focuses on sustainable sourcing and production methods, using young jackfruit and fiber for meat and cocoa powder alternatives, and adopting a circular model to minimize waste and support local farmers and communities while reducing its environmental impact.

Circular economy model

Proprietary methods and innovative food processing technology transform by-products such as young jackfruit, seeds and fiber into high-value plant-based meats.

From market risks and financial constraints to operational challenges and human resource management, we will delve into the obstacles faced by Lemit Foods and how the company has actively sought innovative solutions to overcome them. By demonstrating resilience and adaptability, Lemit Foods has transformed its business model into a reality that not only caters to the demands of its customers but also empowers local farmers and fosters sustainability.

We journey through the execution of Lemit Foods’ business model and witness the positive impacts it has generated on health, prosperity, and the environment.

Background

Lemit Foods is the pioneer in Vietnam, significantly contributing to research and development in jackfruit mimic meat products. The company aims to build an emerging jackfruit meat industry for Hau Giang province. The case study provides a contextual understanding of the social problems faced by each stakeholder, including farmers and local communities, and how Lemit Foods’ solutions create positive impacts.

Vision and Mission in relation to UN’s 17 SDGs:

• Lemit Foods’ vision and mission align with the United Nations’ Sustainable Development Goals (SDGs), particularly those related to zero hunger, responsible consumption and production, decent work and economic growth, and partnerships for the goals. The case study explores how Lemit Foods’ value proposition and business model contribute to these SDGs.
• Lemit Foods creates and delivers economic values for its payers by offering a diverse range of delicious and sustainable plant-based delicacies. The economic values that Lemit Foods provides to its buyers include:

Lemit Foods creates and delivers economic values for its payers by offering a diverse range of delicious and sustainable plant-based delicacies.

The economic values that Lemit Foods provides to its buyers include:

• Cost-Effective Plant-Based Alternatives: Lemit Foods’ plant-based meats, made from young jackfruit, seeds, and fibers, offer a cost-effective alternative to traditional meat products. Flexitarian and health-conscious consumers seeking nutritious and affordable options are attracted to Lemit Foods’ products.
• Versatility and Convenience: Lemit Foods’ product line includes jackfruit canned pate, burger patties, nuggets, sausages, meatballs, kimchi, jerky, canned cooked jackfruit meat, canned cooked jackfruit fish, jackfruit dried snacks, and jackfruit spring rolls. The versatility of these plant-based options allows buyers, such as restaurants and food service providers, to create diverse and appealing menu items with ease.
• Mimicking Taste and Texture: Lemit Foods’ proprietary methods and innovative food processing technologies ensure that their plant-based meats mimic the taste and texture of meat. This feature appeals to buyers and end-users seeking authentic and satisfying meat alternatives.
• Sustainable Sourcing: By using cheap and abundant raw materials like young jackfruit, fibers, and jackfruit seeds, Lemit Foods minimizes its environmental impact and production costs. Buyers looking to align their businesses with sustainable practices are drawn to Lemit Foods’ commitment to eco-friendly sourcing.

To assure buyers that Lemit Foods is capable of creating such economic values, key activities and steps include:

• Research & Development: Lemit Foods invests in extensive research and development to perfect the taste and texture of their plant-based meats. This ensures that the products meet the preferences and demands of their target customers.
• Sustainable Sourcing & Supply Chain Management: Lemit Foods establishes robust supply chains that focus on sourcing young jackfruit and other raw materials from local farmers and cooperatives. This creates a transparent and sustainable sourcing process, which resonates with buyers seeking ethical and environmentally friendly food products.
• Culinary Expertise: Lemit Foods employs skilled chefs and culinary experts who have the expertise to create delectable and appealing plant-based delicacies. This expertise assures buyers that they are receiving high-quality products.
• Quality Control and Assurance: Lemit Foods maintains strict quality control measures to ensure consistency in taste, texture, and nutritional value across all its products. This helps build trust and reliability among buyers.

Lemit Foods’ value proposition pitch revolves around crafting cost-effective, versatile, and sustainable plant-based meats that mimic the taste and texture of meat. Through their key activities and commitment to quality, Lemit Foods assures buyers that they will receive products that cater to their desires for healthy and delicious alternatives while contributing to a more sustainable future.

The social values that Lemit Foods provides include:

Lemit Foods creates and delivers social values for its target beneficiaries and society at large through its commitment to sustainability, community empowerment, and shared knowledge:

• Income Generation for Jackfruit Farmers and Cooperatives: Lemit Foods empowers local jackfruit farmers and cooperatives by providing them with a stable and fair market for their produce. This creates income-generating opportunities for farmers and supports their livelihoods.
• Job Creation: The growth of Lemit Foods’ business translates into job opportunities in the local community. As the demand for plant-based meats increases, Lemit Foods hires skilled workers for food processing, packaging, and distribution, contributing to employment growth in the region.
• Shared Knowledge and Skill Development: Lemit Foods actively shares knowledge and expertise with local farmers and cooperatives on sustainable farming practices and jackfruit cultivation. This helps enhance their agricultural skills and promotes the adoption of eco-friendly farming methods.
• Environmental Preservation: By promoting the use of young jackfruit, seeds, and fibers, Lemit Foods encourages sustainable agricultural practices. This contributes to environmental preservation and helps reduce the environmental impact of traditional meat production.
• Community Welfare: Lemit Foods reinvests a portion of its profits into community development projects, such as education and healthcare initiatives. This supports the overall welfare and well-being of the local community.

To ensure that Lemit Foods is capable of creating such social values, key activities and steps include:

• Collaborations with Farmers and Cooperatives: Lemit Foods establishes strong partnerships with local jackfruit farmers and cooperatives, ensuring a direct and fair supply chain. This fosters trust and commitment among farmers and encourages sustainable farming practices.
• Fair Trade Practices: Lemit Foods follows fair trade practices, ensuring that farmers and cooperatives receive fair prices for their produce. This empowers farmers economically and encourages them to adopt sustainable farming methods.
• Training and Capacity Building: Lemit Foods conducts training programs and workshops for farmers, providing them with the necessary knowledge and skills to improve jackfruit cultivation and post-harvest handling techniques. This ensures the quality and consistency of raw materials for the products.
• Environmental Responsibility: Lemit Foods adopts environmentally responsible practices in its operations, such as waste reduction and recycling. By being environmentally conscious, Lemit Foods sets an example for its beneficiaries and supporters.

Lemit Foods’ value proposition pitch focuses on creating income opportunities for farmers, job creation, environmental preservation, and community welfare. Through its key activities and commitment to social responsibility, Lemit Foods assures buyers that they are contributing to a sustainable and prosperous future for the local community and society at large. This compelling social impact attracts followers and supporters who resonate with the company’s vision and mission.

Value Proposition & Business Model

This section examines Lemit Foods’ value proposition, encompassing its offerings to customers, farmers, and stakeholders. It delves into how Lemit Foods leverages key resources and strategic partnerships to create a competitive advantage in the market.

Value-Added Activities:

The value-added activities of Lemit Foods are meticulously analyzed, from the selection and sourcing of raw materials to the innovative food processing technologies used to craft plant-based meats. The case study highlights the meticulous craftsmanship that goes into mimicking the taste and texture of meat.

Cost Reductions & Increased Profits:

Lemit Foods’ business model innovation has led to cost reductions, increased efficiency, and improved profitability. The use of cheap and abundant raw materials contributes to minimizing environmental impact and reducing production costs.

Sustainable Value Chains:

The role of Lemit Foods in supporting the development of sustainable value chains in the jackfruit meat craft village of Hau Giang province is explored. The case study emphasizes Lemit Foods’ empowerment of local farmers and cooperatives, promotion of sustainability, and creation of economic opportunities.

Social & Environmental Impacts:

This section evaluates the social and environmental impacts of Lemit Foods on local communities, farmers, and the environment. The case study highlights the positive contributions Lemit Foods has made in terms of income generation, job creation, shared knowledge, and community welfare.

As for business model innovation, Lemit Foods focuses on upgrading value propositions based on key resources & strategic partners to increase attraction of customers, farmers & stakeholders, leading to value-added activities and creating competitive advantages, thereby reducing costs, increasing profits & social and environmental impacts on income, welfare, shared knowledge and jobs for the community, supporting the development of sustainable value chains for a sustainable & future jackfruit meat craft village for Hau Giang province

Business Model Execution in Reality

Risk management

Lemit Foods is aware of the potential risks, especially associated with the product launch scheduled for July 2023. These risks include market fluctuations due to economic difficulties, slow access to funding and VC investment funds affecting the market access process, slow capital mobilization impacting the progress of launching goods, recruiting personnel, and purchasing additional equipment, financial constraints related to patent registration and new product formulation, and difficulty in finding required management personnel in the locality.

Lemit Foods has proactively identified key risks that it may face in executing its business model, particularly in making an impact and generating profits. These risks include market risks, financial risks, operational risks, and human resources risks. However, the company has demonstrated an active and flexible approach to risk management, seeking viable solutions to overcome these challenges.

• Market Risks: Lemit Foods recognizes the potential of the vegetarian market and the increasing demand for plant-based diets, especially during the fasting season in July/23. However, economic difficulties and delayed financing may affect purchasing power and hinder product launch and market access. To mitigate these risks, Lemit Foods can focus on diversifying its product range and exploring online sales channels to reach a broader customer base. Collaboration and profit-sharing with distribution partners can also help expand market reach and reduce dependence on traditional sales channels.
• Financial Risks: Access to funding and VC investment funds has been behind schedule, posing a financial risk to the company’s operations and expansion plans. Lemit Foods has taken proactive steps to address this by exploring other sources of finance, sponsorship, and investment. Winning the 1st prize for starting a business in Hau Giang province has provided the company with preferential loan limits, which can be utilized to secure additional capital. Moreover, negotiating with new individual investors to join the company can provide the much-needed financial support for growth.
• Operational Risks: Slow capital mobilization can impact the progress of launching goods, recruiting personnel, and purchasing equipment. Additionally, financial constraints may pose challenges in patent registration and developing new product formulas. To manage operational risks, Lemit Foods can prioritize its spending on critical activities and focus on optimizing operational efficiency. Leveraging existing resources and partnerships can also help mitigate these risks and ensure the company’s progress in product development and market expansion.
• Human Resources Risks: Finding the required management personnel in the locality may be challenging. However, Lemit Foods can adopt a proactive approach to talent acquisition by exploring talent pools beyond the local area. The company can consider remote working arrangements or offer attractive incentives to attract skilled professionals to join the team.

To manage these risks, Lemit Foods is proactively seeking solutions, including distribution cooperation and profit sharing with distribution and sales partners. They are also exploring other sources of finance, sponsorships, and investments to support our growth plans. Lessons learned from our one-year experience in business include studying and R&D development, cataloging products on request, marketing and distribution/sales, and financial capital management. They actively identify success factors and related risk factors to establish corresponding learning paths to promptly overcome difficulties and maintain development motivation for our team.

Lessons Learned

Actively identify success factors and related risk factors to establish a corresponding learning path to promptly overcome difficulties and maintain development motivation for the team. The experience of starting a business over the past 1 year has given us many good lessons, especially related to:

Issues	Success factors	Risk factors	Learning curve
On-going R&D development	Jackfruit meat has the same taste and texture as meat with new technology and special know-how	Meat-eating customers find it difficult to accept plant-based meat that doesn’t look like real meat	Find cooperation from University when starting a business (signed an agreement)
Products Porfolio on request	Diversity, meet various needs & usage occasions	Sales channel unaccept if there is only 1 product Does not meet the needs of regular consumers	Find cooperation from University when starting a business (signed an agreement)
Marketing & Sales	Quick access by online channel for quick capital turnover when launching 1st product	Inventory and run out of money if market access is slow Competition, product imitation	Cooperate & share profits with sales partners to limit costs, efficiency and fast coverage
Financial capital	Need capital to invest in equipment, new products, operations, marketing, inventory, personnel…	Financial constraints lead to a halt in all plans and activities	Actively looking for financial solutions: preferential loans, fundig from individuals & VC

 

Overall, Lemit Foods’ ability to learn from its experiences, experiment, and pivot when necessary has been instrumental in its success. By continuously improving its R&D efforts, diversifying its product portfolio, adopting innovative marketing and sales strategies, and actively seeking financial solutions, Lemit Foods has positioned itself as a leading player in the plant-based food industry.

Conclusion

As a new startup with over 1 year of experience, Lemit Foods has demonstrated a proactive approach to risk management and a willingness to learn and improve. The company has identified key risks in its business model execution and taken decisive actions to address them. By actively seeking solutions and exploring alternative sources of finance and distribution channels, Lemit Foods has shown resilience and adaptability in the face of challenges.

• Lemit Foods has demonstrated a flexible business model innovation in the plant-based food industry, which has transformed the way people perceive and consume plant-based delicacies. By crafting sustainable and delicious plant-based meats using young jackfruit, seeds, and fibers, Lemit Foods has addressed the needs and wants of flexitarian and health-conscious consumers, providing them with tasty and nutritious alternatives to traditional meat products.
• The unique value proposition of Lemit Foods, centered on nourishing the body, uplifting local farmers, and preserving the planet, has resonated with its target customers and beneficiaries. The company’s commitment to social values, such as empowering local farmers, promoting community welfare, and supporting sustainable value chains, has had a positive impact on the society at large.
• Through its strategic partnerships and key resources, Lemit Foods has created a competitive advantage in the market, attracting customers, farmers, and stakeholders. The value-added activities, such as innovative food processing technologies that mimic the taste and texture of meat, have set Lemit Foods apart as a pioneer in the jackfruit meat industry.
• One of the key lessons learned from its experience is the importance of diversifying its product range and exploring online sales channels to reach a broader customer base. By collaborating with distribution partners and leveraging social commerce platforms, Lemit Foods can effectively overcome market risks and tap into the growing demand for plant-based products.
• Additionally, the company has recognized the significance of financial management and the need to secure additional capital for expansion. By actively seeking investment from individual investors and exploring sponsorship opportunities, Lemit Foods can ensure sufficient funding for its growth plans.
• Furthermore, Lemit Foods has identified the critical role of talent acquisition in its success. By adopting a proactive approach to finding skilled management personnel beyond the local area, the company can build a strong team capable of driving its vision and mission forward.

The lessons learned from its first-year experience have provided valuable insights for Lemit Foods to enhance its performance in the next business model execution. By continuing to identify success factors and related risk factors, the company can establish a learning path that enables it to promptly overcome difficulties and maintain its development motivation. With a strong focus on innovation, customer-centricity, and sustainable practices, Lemit Foods is well-positioned to make a lasting impact in the plant-based food industry and contribute to a more prosperous and harmonious world.

Recommendations

The case study concludes with recommendations to further enhance Lemit Foods’ business model innovation and expand its impact in the plant-based food market. These recommendations include expanding product range, strengthening distribution channels, collaborating with influencers and chefs, focusing on sustainable packaging, educating and engaging consumers, strengthening partnerships with farmers, implementing impact measurement and reporting, and seeking certification and accreditation.

References

• Food for Thought: The Untapped Climate Opportunity in Alternative Proteins: https://www.bcg.com/publications/2022/combating-climate-crisis-with-alternative-protein
• The Rise of Plant-Based Foods in Southeast Asia — Jovel Chan: https://jovelchan.com/blog/rise-of-plant-based-foods-southeast-asia
• Plant-based diets can reduce our impact on the planet | World Economic Forum (weforum.org): https://www.weforum.org/agenda/2022/10/vegan-plant-based-diets-sustainable-food
• How to target flexitarian consumers with plant-based products (proveg.com): https://corporate.proveg.com/article/how-to-target-flexitarian-consumers-with-plant-based-products
• Consumer insights & research reports | Alternative proteins | GFI: https://gfi.org/resource/consumer-insights
• Lemitfoods’ Youtube Channel: https://www.youtube.com/@lemitfoods