Value Creation through Biotech Innovation in the Sub-Saharan Africa Beer Market: An Illustrative Case of Novozymes

Magnus Mustafa Fazli & Alexander Wright Felman

Student thesis: Master thesis

Abstract

With increasing customer awareness and demand for high performance and sustainable products, firms in different industries will have to seek novel ways to create value on the markets they serve. Novozymes, the world leader in producing industrial enzymes, delivers and applies innovation to create value for customers by improving performance and reducing costs, and to drive the world toward sustainability by making better use of natural resources. Novozymes continuously looks for business opportunities to get more value out of its current portfolio of products for both customers and its shareholders, and sees a great potential in emerging markets across all its industries. However, emerging markets display different characteristics compared to the developed markets. Serving these markets requires a deep understanding of each market, including local customer needs, preferences and habits, political systems, and manufacturing value chains, then converting this into solutions that will create the most value to individual customers. Food & Beverages is Novozymes’ one of the most important industries in emerging markets. Considering high levels of traditional home-brewed alcoholic drinks and powdered beer consumption in Africa, this market represents a business opportunity for Novozymes. This thesis report analyses the powdered beer and traditional home-brewed beer market in the Sub-Saharan Africa (SSA), and assesses the viability of penetrating into this currently untapped market. While in the short term there appears to be the potential to have a market for enzymes for powdered beer, long term market trends show that this market is likely to decrease until it is a niche potentially as quickly as the next decade in most SSA countries. For a company of Novozymes size it is not likely to be a good use of resources if that are only starting now.

EducationsMSc in Business Administration and Bioentrepreneurship, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2017
Number of pages64
SupervisorsJens Geersbro