Prospect of creating Social Business

for nutrition improvement through Public- Private- Partnership

October 2, 2014

WBCSD インクルーシブビジネスセミナー

Yasuhiko Toride, Ph.D.

Director of Nutrition Improvement Projects

Ajinomoto Co., Inc.

味の素㈱研究開発企画部

取出恭彦

2

“Social Business” New Approach for Social Contribution

by Private Companies

1. Conventional Approaches Philanthropy, Donation / CSR(Corporate Social Responsibility)

- Activities are not necessarily related to the core business of the companies

eg. Planting trees by automobile companies

- Activities may be affected by the profitability of the core business

2. Social Business

Social Contribution through the core business

→ Concept of CSV (Creating Shared Values)

→ Continuous efforts to achieve missions of

the core business of the company

3

Ajinomoto’s commitment to create

“Social Business” for Nutrition Improvement

“Eat Well, Live Well”

Food Science Amino Acid Nutrition

Social Business : Sustainable business

to solve social problems in developing countries, such as malnutrition

Development of Nutritional Supplement

“KOKO Plus” for Traditional Complementary

Food for Weaning Children

Traditional Complementary Food

“KOKO”

4

栄養不足による子供の成長遅延

0

10

20

30

40

50

6m 6-8m 9-11m

12-17m

18-23m

24-35m

35-47m

48-59m

（月齢）

（％） 低身長

低体重

Improving Nutrition of Children Aged 6 – 24 months

→ Window of Opportunity for Nutrition Improvement

Supplement containing Soybean, Lysine (Amino Acid)

Vitamin & Minerals

1 Sachet supplies 1 day requirement of a child

Growth Retardation due to Malnutrition

Age

Stunting

Under weight

Innovation & Partnership necessary for establishing

“Social Business”

• Product affordability

acceptability

• Delivery System

Partnership Innovation

JICA Japan International

Cooperation Agency

A New P-P-P scheme:

•“Preparatory

Survey for BOP

business promotion”

USAID US Agency for

International Development

•GDA (Global Development Alliances)

Public-Private-Partnership

- US-Japan Collaboration Scheme

Concluded USAID- JICA- Ajinomoto MOU in May 2012

Pilot Studies collaboration with various partners

Production in collaboration with local food manufacturer Yedent Agro Group of Companies Ltd.

Nutritional Efficacy study

1. Micronutrient only

2. Koko plus

3. Education only

- One group 301 children

- 6-18 months

- One year study

Delivery model Study- 1 Using Network of Women “Village Savings and Loan Association” Delivery Model Study-2 Using traditional market system with Social Marketing

Social Marketing for Demand Creation

Setting up Production Facility

in collaboration with local food producer

Local Partner

Yedent Agro Group

of Companies Ltd.

Production Facility

Co-Creation

& Technology Transfer

9

Partnership with Local Government

Ministry of Health, GHS (Ghana Health Service)

Concluded MOU among GHS, University of Ghana, INF and Ajinomoto in April 2011

to have collaboration in Pilot Studies

Nutrition Education in Rural Community

using methods developed by GHS:

Playing dramas to understand importance of Nutrition

10

Establishing Innovative Delivery Models

Door to Door sales

Factory

Hub

VBE VBE VBE VBE

Sales in the Communities

VBE: Village Based Entrepreneur

11

Demand Creation by Social Marketing

Performing Dramas in the Market, tasting and sales

Important to ask community leaders （Chief, Queen Mother)

to attend the events

12

Positive Impacts of “Social Business”

in Multinational Private Companies

1. Understanding real market needs through partnership eg. Emphasis on first 1000 days.

→ Grasping Business Opportunity

2. Accelerating Innovation through Partnership, Open Innovation → Innovative products, Innovative marketing

3. Motivation to employees Social contribution is one of the key interests of young people.

4. Enhancing corporate brand values

Better brand image leads to bigger business opportunities

13

Multi-WIN by Social Business

for Nutrition Improvement

Local People in

Developing

Countries

Better Nutrition

More employment

More income

Aid Agencies

More

effective

development

Multinational

Private

Companies

Business

Opportunities

International

NGO, NPOs

More

effective

development

Local

academia,

companies

Capacity

Building

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Challenges in Scaling up

“Social Business” for Nutrition Improvement

1. Can we quickly reach a scale to achieve

the sustainable business? → New partnership, collaboration necessary for the scaling up phase

2. Can we deliver the product at an affordable price

in the high poverty area? → A Hybrid system combining financial aid and market mechanism?

3. Further Innovation to achieve sustainability necessary eg. innovation for cost reduction,

innovative environmentally friendly package etc.

→ Seeking further “Open Innovation”

4. Securing local raw materials with competitive cost

while assuring quality

→ Improving Soybean Value Chain