® LOTUSAN BY STO
SYNAPSE.BIO | 1 by Biomimicry 3.8
TEXT PLACEHOLDER Cover Photo: Example of Sto Lotusan architectural coating at site in Germany
by Biomimicry 3.8
A BIOMIMICRY CASE STUDY
LOTUSAN ® BY STO
The commercialization story behind the architectural coating that mimics the lotus leaf in order to self-clean and conserve water.
Published by Synapse by Biomimicry 3.8 Written by Biomimicry Business Intelligence
© 2017 Biomimicry Advisory Services & Biomimicry 3.8. All rights reserved.
Photo © Sto Corp.
4 | SYNAPSE.BIO
BIOLOGY
DESIGN
The surface texture of the lotus leaf naturally self-cleans
Lotusan paint mimics the surface texture of the lotus leaf for a low maintenance finish
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Forward Biomimicry for Innovative Business Opportunities Biomimicry is not itself a product but a process, drawing on strategies observed in natural organisms and practices in order to spark innovation.
Biomimicry (from bios, meaning life, and mimesis, meaning to imitate) is a scientif ic design discipline that seeks sustainable solutions by emulating nature’s time-tested patterns and strategies. The core idea of Biomimicry is that nature,
08
CONTRIBUTORS & SUPPORTERS
06 13
EXECUTIVE SUMMARY
17
INDUSTRY OVERVIEW
23
COMPANY OVERVIEW
30
COMMERCIALIZATION PROCESS & STRATEGY
39
FINANCIAL STRATEGY
48
FORWARD
after 3.8 billion years of research and development, has already developed solutions to many of the problems facing industry, government and agriculture. Such problems include packaging, transportation, energy production, non-toxic chemistry, carbon sequestration, and crop production.
6 | SYNAPSE.BIO
CONCLUSION
SYNAPSE.BIO | 7
TEXT PLACEHOLDER
Contributors & Supporters RESEARCH AND EDITING Jacques Chirazi, Managing Director & Senior Editor, Biomimicry Advisory Services Constanza Jozami, Editor Gabriel Canale, Editor Mathias Einberger, Research Analyst Jeffrey Reinhold, Research Analyst Xinyi Wang, Research Analyst
ADVISORS Rosibel Ochoa, Executive Director, UC San Diego von Liebig Entrepreneurism Center Stuart Valentine, CEO, Centerpoint Investing Beth Rattner, Executive Director, The Biomimicry Institute Hazel Henderson, CEO, Ethical Markets Certified B Corp Katherine Collins, CEO HoneyBee Capital Jamie Brown Managing Partner, Biomimicry Switzerland Douglas Kot, Senior Sustainability Professional, DNV GL Beth Brummitt, CEO, Brummitt Energy Nicole Miller, Managing Director, Biomimicry 3.8
8 | SYNAPSE.BIO
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TEXT PLACEHOLDER
Executive Summary Sto Corp. is a multinational company, founded and headquartered in Germany, and a global player in the construction industry. Sto Corp. is its wholly owned subsidiary in the United States. Its three key markets in the U.S. are Exterior Insulation Finishing Systems (EIFS), stucco, and architectural coatings. While all three market segments are rather heavily tied to the health of the overall economy, EIFS and stucco can be seen as very mature markets that are expected to continue to grow at a very measured pace in the near future. Architectural coatings on the other hand constitute a relatively new key focus area of Sto Corp. where it hopes to achieve strong growth rates over the next few years through the roll-out of biomimetic innovations, such as Sto’s signature Biomimicry paint and coating product Lotusan.
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TEXT PLACEHOLDER
LOTUSAN ® Lotusan is a biomimetic paint
Twenty years elapsed
Sto’s commercialization of
increasingly capitalize on the
Sto seems to have learned
and coating product based on
between the initial discovery
Lotusan in Germany was a
innovative selling propositions
to slowly, but increasingly,
the Lotus-Effect®, discovered in
of the Lotus-Effect and its first
huge success and the brand
of this biomimetic innovation
embrace this innovative biomi-
the 1970s by German botanist
commercial application, the
today is widely known. In the
in its U.S. coating go-to-market
metic potential in growing its
Professor Wilhelm Barthlott.
first Lotusan paint, in the late
U.S. however, Sto Corp. has
strategy, Sto Germany has also
business not only stronger, but
By using the (at the time)
1990s. Initially, Prof. Barthlott
until recently only slowly been
been developing a new biomi-
also in a more sustainable way.
recently developed Scanning
was met with sheer disbelief,
rolling out Lotusan due to
metic successor product to
Electron Microscope (SEM)
suspicion, and outright hostility
a larger corporate focus on
Lotusan, based on the Namib
technology he systematically
both in the scientific and indus-
the EIFS and stucco market
beetle. The company currently
studied surface structures of
trial community. His biomimetic
segments. Together, these two
estimates a compounded
plants on a nanoscale for his
breakthrough was so radically
segments constitute roughly
annual growth rate for its
academic research. Thereby
different from the conven-
65% of the overall U.S. market,
super-hydrophobic coatings of
Prof. Barthlott discovered the
tional wisdom at a time, when
while architectural coating,
10-12%.
self-cleaning properties of
nanotechnology was not yet an
the category which includes
super-hydrophobic (highly
established concept, that no
Lotusan, currently makes up
The historic success story of
water repellent), hierarchically
one believed in the authenticity
only 17-18%. Due to substan-
the Lotus-Effect and Lotusan,
structured plant surfaces—a
and viability of this biomimetic
tially higher expected future
as well as the obstacles that
concept perfected in the
innovation. Both academic and
growth rates in coating, and
have been encountered
Nelumbo Nucifera, the Sacred
industrial interest eventually
fueled by a contract to repaint
in their commercialization
Lotus.
began to manifest itself
all Lowe’s hardware stores
along the way, illustrate both
strongly, after highly positive
nationwide with Lotusan, Sto
the tremendous innovation
press coverage and his devel-
Corp.’s focus has began to
potential and the unique
opment of a first prototype to
shift in recent years. Not only
problems associated with
proof the concept.
does the company plan to
biomimicry inspired products.
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Industry Overview EXTERIOR COATINGS MARKET
The paint and coating industry in the United States today is largely
mature and strongly correlated with Overall demand from 2014 to 2019
is expected to increase at an average annual rate of 3%.
16 | SYNAPSE.BIO
1
Sto Lotusan paint coating over stucco. Photo © Sto Corp.
the overall health of the economy.
In the U.S. market, Sto Corp.’s
the so-called Exterior Coating
core focus lies on Exterior
segment, which are products
Insulation Finishing Systems
aimed at keeping buildings
(EIFS) and on stucco, which
cleaner for a longer period of
together comprise 65% of the
time.2 Sto Corp. is expected
company’s total U.S. business.
to see substantial growth in
Coating currently constitutes
the North American market
only 17-18%, of which roughly
in this product category over
2 PRLog. (2010, June 11). The Exte-
40% in turn is due to its
the coming years, contrasted
rior Coating That Keeps Buildings
flagship biomimicry product
by relatively stagnant market
Cleaner, Longer.
Lotusan® based on the Lotus-
growth in its traditional core
Effect® (henceforth called
focus areas.
Lotusan). Lotusan belongs to
1 IHS. (2015, March). Paint and Coatings Industry Overview. Retrieved from the IHS website: https://www. ihs.com/products/paint-and-coatings-industry-chemical-economics-handbook.html
Retrieved from the PRLog website: http://www.prlog.org/10731454-stocoat-lotusan-the-exterior-coatingthat-keeps-buildings-cleaner-longer. html
SYNAPSE.BIO | 17
INDUSTRY OVERVIEW
MARKET POTENTIAL
For the period 2010-2015, the volume and the value construction market, to which
coating market is expected
coatings in the U.S. declined
the coating market is closely
to exhibit strong demand
from approximately 803 million
tied, is expected to recover
growth, following a period
gallons to 615 million gallons,
swiftly and strongly over the
of recovery from a severe
a decrease of 188 million
next few years. Thus, the
economic downturn. The
gallons or 23%.3 Recovering
coating market is likewise
economic recession after the
from this recession, the market
expected to exhibit strong
Global Financial Crisis of 2008
is expected to expand in both
growth rates in the years to
severely affected architectural
volume and value dimensions.
come.
coating demand in the United
With the economic distress
States. Between 2004 and
subsiding, the North American
of architectural coating and paint markets are forecast to grow at an annual rate of 2.9% and 6.1% respectively. This expected
$12,000
1100
$11,000
1000
$11,681
900 800
$8,674
million gallons of coating, valued at approximately $11.7 billion USD, by 2015.
$9,340 $9,800
$9,000
$10,500
$8,000
700
$7,000
600
growth corresponds with a projected demand of 744
$9,144
$10,000 VALUE
2010, demand for architectural
1200
(In Millions)
At present, the North American
VOLUME ( Gallons sold in Millions)
INDUSTRY OVERVIEW
644
649
668
688
2010
2011
2012
2013
744
712 2014
$6,000
2015
HISTORICAL VOLUME & VALUE OF US ARCHITECTURAL COATINGS INDUSTRY Source: ChemQuest Group, Inc. (2015). US Paint & Coating Industry Market Analysis 2010-2015.
900
Architectural paint prices are
MILLIONS OF GALLONS
850
predicted to grow at the rate of 800
3.1% annually, with a projected price of $15.70 USD per gallon
750
by 2015, up from $13.47 USD 700
per gallon in 2010.4 A generally recovering housing and real
650
$13.47
$14.09
$14.49
$14.89
$15.29
$15.70
estate market, and particularly 550
renewed home-building activity, are expected to further 1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
MARKET SIZE OF US ARCHITECTURAL COATINGS INDUSTRY Source: Department of Commerce, ACA 2013
18 | SYNAPSE.BIO
2012
2013
strengthen and reinforce demand for architectural coating products.
2010
2011
2012
2013
2014
2015
HISTORICAL PRICE OF ARCHITECTURAL COATINGS Source: ChemQuest Group, Inc. (2015). US Paint & Coating Industry Market Analysis 2010-2015.
SYNAPSE.BIO | 19
INDUSTRY OVERVIEW
INDUSTRY OVERVIEW
BUILDING WITH CONSCIENCE
COMPETITORS
Sustainable technologies can help reduce the
Sto is a member of the German Sustainable
One of Sto’s most important competitors in
scratch resistance. Rain-X is also hydrophobic,
energy and resource needs, as well as other
Building Council (DGNB) and has presented its
the coating market is the coating division of
surface-applied, and synthetic, typically used
environmental impacts, of the paint and coating
own environmental product declaration (EPD)
the BASF Group. Today BASF Wall Systems is
to cause water to bead on glass automobile
industry. In the context of increasing consumer
for mineral mortars. The EPD forms the basis of
a leader in the EIFS industry, providing EIFS,
surfaces.7 Rust-Oleum® NeverWet® is a two-step
awareness and environmental awareness, the
Sto’s vision for sustainable buildings. Sto seeks
stucco and other specialty fishes and coatings
product system designed to create a moisture
U.S. coating market will continue to be affected
to provide environmentally friendly products to
exhibiting hydrophobic properties, supplied
barrier on a variety of surfaces suitable for
by this trend towards greater sustainability. Sto
the market, such as StoTherm Lotusan NExT™
throughout North America under the Acrocrete,
use on metal, wood, aluminum and more.
Corp’s development is highly consistent with this
featuring Lotusan technology, which integrates
Finestone, Senergy, and SonoWall brands.
Although all these products also claim a (super)
principle and sustainability has been espoused
sustainability and durability to create a high-per-
There also exist a number of other substitutes or
hydrophobic effect similar to Lotusan’s, they
as one of the company’s key goals.
formance, energy-efficient wall cladding.
similarly targeted products competing with Sto’s
are not designed for broad wall architectural
Lotusan. HDP’s Water-Repellent Paint is one
application and therefore not directly competing
such product claiming to feature hydrophobic
with this particular application of the Lotus-Effect
properties. Scotchgard™ Protective Coatings is
Sto has developed.
“We def ine sustainability as the point at which the needs of social, environmental and economic factors intersect for a mutually benef icial outcome”.5
used as a base coating, which provides superior
5 Sto Corp. (2015). Sustainability. Retrieved from the Sto Corp
7 Rain-X Products. (2015). Products to help you outsmart the
website: http://www.stocorp.com/ sustainability
elements. Retrieved from the Rain-X website: https://rainx.com
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1970
1975
1980
1985
1990
1995
2000
2005
2010
2015
Environmental regulations and international competition slow Sto US growth (1990’s)
STO CORP IS A GLOBAL COMPANY WITH OPERATIONS IN 70 COUNTRIES AROUND
_____
Prof. Wilhem Barthlott discovers lotus effect (1972)
_____
First study fully describing lotus effect published, authored by Prof. Barthlott and Nesta Ehlers (1977)
_____
Sto Corp US is formed and first US plant opens in Rutland, VT (1979)
_____
Self-cleaning property of lotus first described as “Lotus-Effect”; Prof. Barthlott receives research grant (1992)
ispo GmbH is acquired by Sto Corp. and gains rights to Lotusan (2001)
Prof. Barthlott starts patent process for LotusEffect (1994)
_____
_____
Period of rapid growth for Sto Corp (1980s)
_____
Second Sto Corp US plant opens in Atlanta, GA (1989)
_____
_____ Prof. Barthlott receives patent for Lotus-Effect; Article published in Lufthansa’s board journal describing Lotus-Effect and begins to generate wide interest (1995)
_____
Prof. Barthlott and Christoph Neinhuis receive Philip-Morris award; Prof. Barthlott collaborates with German paint company ispo GmbH who subsequently launches the first Lotusan product (1999)
Company Overview
_____
Sto Corp. launches StoCoat Lotusan® (2005) Prof. Barthlott sells LotusEffect patent to Sto Corp. (2009)
_____
Sto Corp. US sales reach €35M (2012)
_____
Sto develops “second generation Lotusan” product called Dryonic that is inspired by the hydrophilic/hydrophobic properties of the Namib desert beetle (2014)
_____
THE WORLD AND A TOTAL OF APPROXIMATELY 16,000 EMPLOYEES. ITS CORPORATE HEADQUARTERS ARE LOCATED IN GERMANY. IT IS PRIVATELY OWNED AND WAS FOUNDED BY THE STOTMEISTER FAMILY AFTER THE SECOND WORLD WAR TO SATISFY THE ENORMOUS DEMAND FOR CHEAP BUILDING MATERIAL TO BE USED IN THE RECONSTRUCTION OF EUROPE AFTER THE WAR.
Sto Corp was formed in the
formed to sell insulating wall
plant opened in Rutland, VT in
United States in 1979 as a
systems in the U.S. market.
1979. The location was chosen
wholly owned subsidiary of
It started out in New York
because it was centrally
Sto Germany, but its setup and
as a mere sales company,
located in proximity to the large
operations have been kept
but Sto quickly realized that
population centers of Canada
largely independent, following
they could import not only
and the Eastern United States.
a strategy of legally insulating
products but also ideas from
the parent company from its
Germany on a larger scale.
international subsidiaries.
After successfully marketing
Initially, the U.S. operation was
them in the U.S., Sto’s first U.S.
_____
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COMPANY OVERVIEW
COMPANY OVERVIEW
STO CORP U.S. The U.S. subsidiary was first
was built in Atlanta, GA in 1989.
rate today. Sto Corp currently
In the United States, Sto’s
This realization was spurred
innovation will be based on
named Sto Energy Conser-
The EIFS and stucco business
has roughly 250 employees in
core business lies in EIFS
Lowe’s hardware stores’
the Namib Beetle, which has
vation, aimed at satisfying
continued to grow rapidly,
the United States. Within Sto,
and stucco, which together
nation-wide Lotusan repainting
the ability to collect water from
American demand with the
despite competition from
the coating division makes
account 65% of total sales.
campaign, which seems to
the air, using a hydrophilic
goal of reducing high energy
both the brick industry and
up about 18% of total sales. In
Coating constitutes only 17-18%
have catalyzed a growing focus
mechanism to condensate
costs that followed many
the paint industry throughout
2012, Sto’s coating sales in the
at present, 40% of which is
on the coating segment.
water for a self-cleaning effect.
years of turbulent oil prices
the 1980s and early 1990s
Americas reached €35 million
accounted for by Lotusan
and supply developments.
somewhat slowing down this
EUR.9
Exterior Coating. Its commer-
At present, Sto estimates the
Sto’s coating division
According to Sto’s President
growth. In the late 1990s, other
cialization in the United States
size of the architectural and
is forecast to grow at a
of the Americas, Dave Boivin,
challenges such as environ-
started in the late 1990s,
decorative paint and coating
compound annual growth rate
at Sto’s 35th Anniversary
mental regulation and inter-
when Lotusan was brought in
market for its U.S. subsidiary
(CAGR) of 6-7% in the U.S. over
Celebration, “Sto products
national competition arose,
from Germany. As a result of
at roughly $11.6 billion USD
the next 5-6 years. Assuming
were highly regarded from
but Sto was able to weather
the corporate focus on EIFS
in wholesale sales through a
their envisaged gains in market
the beginning for their quality
these struggles and continued
www. coatingspromag.com/indus-
and stucco, the commercial-
select channel of distributors
share will be realized, this
and the excellence of German
to grow strongly by strength-
try-news/2014/04/sto-corp-cele-
ization of Lotusan in the US
who carry EIFS and stucco,
figure will eventually reach
product engineering.”8
ening its distribution network,
brates-35th-anniversary-in-the-us
has been relatively slow to
and about $16 billion USD
15% according to Sto Corp.
date, in contrast to Germany
across campus sales in retail.
For Lotusan a CAGR of 10-12%
where the product has been
One of the largest prospective
is expected, which is slightly
a huge success for years.
growth areas for Sto lies in the
lower than the projected
The realization within Sto
innovative biomimetic Lotusan
overall growth for the coating
8 CoatingsPro. (2014). Sto Corp. Celebrates 35th Anniversary in the U.S. Retrieved from the CoatingsPro website: http://
improving its market position, 9 McCulloch, L. (2012, July). Top
Sto’s business in the U.S. grew
and diversifying into new
rapidly. Soon, they discovered
product areas. Sto survived the
an even larger growing market
economic recession following
potential in the Southeast. The
the global Financial crisis and is
Corp of the sizeable growth
coating product, and there
division, due potential cannibal-
second manufacturing plant
growing at a healthy and stable
opportunities for the coating
seems to be further interest in
ization between Lotusan and its
division in general and Lotusan
looking to nature for new R&D
successor.
in particular in the U.S. is a
breakthroughs as the company
relatively recent development.
is working on a successor
25 Paint Manufacturers in Europe. European Coatings Review, 38-48.
product to Lotusan. This new
24 | SYNAPSE.BIO
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COMPANY OVERVIEW
THE LOTUS EFFECT The concept today widely known as the Lotus-Effect®, patented in the 1990s in Germany, is the result of highly water repellent (super-
TEXT PLACEHOLDER
LOTUSAN EXTERIOR COATING
hydrophobic) surface structures at nano-scales. It is the basis for Lotusan’s unique self-cleaning properties, mimicking the texture of a lotus leaf, which causes raindrops to form perfect spheres that run off the surface, capturing and taking dirt particles with them in the process. Photo: Rendering of water behavior on the surface of lotus leaves due to texture Wikimedia.org | William Thielicke
KEY FEATURES
Super hydrophobic Unprecedented water repellency
In 2005, Sto launched
thereby greatly reducing
StoCoat Lotusan® as a revolu-
maintenance costs and
tionary new coating with the
increasing its longevity.10
these patented self-cleaning
Long-lasting curb appeal Reduced maintenance costs
properties mimicking nature’s
Available in a variety of
Pronounced self-cleaning
genius as embodied in the
textures and colors, Sto Corp
properties that washes off of
lotus leaf. By applying this
expects that Lotusan’s market
dirt particles water alone
technology in the coating
share will grow rapidly over
market, Sto’s Lotusan creates
the next years, at an estimated
Highly resistant to mold,
self-cleaning and long lasting
annual growth rate of roughly
mildew, and algae
finishes for exterior building
6% at the lower end and 15%
walls. Just like on the lotus
at the upper end of the confi-
leaf, the textured finish is
dence interval.
rinsed clean with rainfall alone,
Permeable and allowing the substrate to breathe naturally, avoiding blisters caused by trapped water vapor UV resistant and excellent
10 Corp. StoTherm Lotusan NExT™: Energy Efficiency and Performance Built on Nature’s Best Ideas. Retrieved on
color retention
May 21, 2015 from: http://www.buildsite.com/pdf/stocorp/
Water-based, meaning it is
StoTherm-Lotusan-NExT-Product-Data-B26364.pdf
safe and easy to use with clean up in water Low VOC (volatile organic compound) content, safe for workers and the environment
26 | SYNAPSE.BIO
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COMPANY OVERVIEW
PRODUCTION AND R&D
COMPANY OVERVIEW
1
2
3
4
STOTHERM CI
STOGUARD
STOPOWERWALL
STOCOAT® LOTUSAN®
Sto Corp has developed
StoTherm ci, Sto’s Exterior
StoGuard is a breathable
StoPowerwall is Sto’s stucco
StoCoat® Lotusan® with Lotus-effect® technology is Sto Coatings’
and continues to grow four
Insulation and Finish Systems
house wrap that can be applied
product designed for light
specialty architectural coating product, and is the centerpiece one
core product lines:
(EIFS) product, provides the
through spray guns or paint
commercial and residential
of the company’s largest expected future growth areas. Despite its
construction industry with
rollers onto a building’s wall
construction. Sto has a large
already explained tremendous advantages, one of Lotusan’s main
freedom of design through
structure. Its primary function
range of products under and
disadvantages is that its microscopic surface structure makes it
a protective blanket of
is to provide a moisture
on top of its stucco product,
vulnerable to impacts. This lack of impact resistance is one of the
continuous insulation, which
and air barrier for the wall
which are expected to remain a
main driving forces behind Sto’s efforts to develop a successor
is required by new building
structure, while simultaneously
large key market over the next
product based on the Namib beetle, which is being designed with
hensive line of air
codes. The focus of the
allowing trapped water vapor
five to six years.12
a tighter film structure and improved impact properties.
and moisture barrier
product is not the building’s
to escape and bonding with
products and an
outer appearance, but to
the substrate to enhance the
With this integrated product mix, Sto has adopted a new strategic
important component
make sure it is well insulated
structural integrity of the wall.
focus on the restoration of existing buildings. “One-third of our
of StoTherm ci
in a cost-effective and lasting
It is an important component of
sales come from restoration,” said Sto’s President of the Americas,
way. Over the years Sto has
StoTherm ci systems.
Dave Boivin. “We’ll become a force in the restoration arena. We
1 StoTherm ci, namely Sto’s EIFS product
2 StoGuard, a compre-
3 StoPowerwall, Sto’s
built tremendous expertise in
have an array of products to help in restoring buildings and we will
stucco product
capitalizing on new building
grow our line substantially over the next five to six years.”
codes and updating its
4 StoCoat® Lotusan® with Lotus-Effect®
products to meet new building
Sto Corp’s products, virtually all of which are for exterior appli-
requirements.
cation, are sold primarily in the U.S., but also exported to Canada
technology, Sto
and a few other countries. Nevertheless, all Lotusan output desig-
Coatings’ biomimetic
nated for the U.S. market is currently manufactured within the U.S.
flagship product
Sto’s R&D department is now also working on a next generation
11
11 CoatingsPro. (2014). Sto Corp. Celebrates 35th Anniversary in the U.S.
28 | SYNAPSE.BIO
12 ibid.
Lotusan product and on the qualification of raw materials for a crossover from a German formula for a functional interior coating.
SYNAPSE.BIO | 29
THE DISCOVERY OF THE LOTUS EFFECT German botanist Prof. Wilhelm
levels of cleanliness. Because
would certainly already know
Barthlott, today one of the
the botanical garden of the
about such anti-adhesive
world’s leading experts in the
University of Heidelberg did
surface properties. Therefore,
field of bionics and a pioneer in
not possess any lotus flowers
the potential of what today is
PROF. WILHEM BARTHLOTT PICTURED WITH
analyzing biological surfaces,
at the time, it was not until
widely known as the Lotus-
SAMPLE SURFACE COATED WITH LOTUSAN
first observed the self-cleaning
much later that Prof. Barthlott
Effect was not realized at the
properties of certain hierar-
discovered that self-cleaning,
time of its discovery. Not even
chically structured botanical
super-hydrophobic surface
among the scientific community
surfaces during his research at
structures were optimized in
was Prof. Barthlott’s break-
the University of Heidelberg,
the Lotus leaves.
through acknowledged: his
Commercialization
Germany, in the 1970s. For his
initial publication was virtually
dissertation he systematically
In 1977, Wilhelm Barthlott and
ignored for more than a
studied the surface properties
his colleague Nesta Ehlers
decade before interest finally
of different plants using
published the first study fully
began to form in the 1990s.
scanning electron microscopes
describing the functionality
begins more than 40 years ago. From its initial discovery by German
(SEM), which had first become
and properties of self-cleaning,
botanist Prof. Wilhelm Barthlott in the 1970s, it took nearly 20 years until
commercially available in 1971.
super-hydrophobic plant
Examining the differences
surfaces.13 His own conviction at
his first attempts at commercializing the idea resulted in a fruitful industry
between different plants exhib-
the time was that his discovery
cooperation with Sto, leading to a global rollout, including in the U.S.
iting clean or dirty surfaces,
would be mainly relevant to the
market, of its first commercial application Lotusan in the late 1990s.
he discovered a connection
botanical research community
between their super-hydro-
in the natural sciences, and
der Literatur. Wiesbaden, Germany:
phobic surface properties and
that the industrial community
Franz Steiner Verlag.
Process & Strategy
The remarkable success story of the Lotus-Effects commercialization
30 | SYNAPSE.BIO
13 Barthlott, W., & Ehler, N. (1977). Raster-Elektronenmikroskopie der Epidermis-Oberflächen von Spermatophyten. Mainz, Germany: Akademie der Wissenschaften und
SYNAPSE.BIO | 31
COMMERCIALIZATION PROCESS & STRATEGY
COMMERCIALIZATION PROCESS & STRATEGY
FROM DISBELIEF TO BREAKTHROUGH
A vivid anecdote illustrating his struggles at the time tells the story of him at some point literally carrying Lotus leaves in a plastic bag to an unnamed research institute in order to demonstrate the Lotus-Effect,
The story of Professor Barth-
of Education and Research
In the subsequent years,
only to still be met with sheer
lott’s discovery vividly illus-
BMBF—Bundesministerium für
Wilhelm Barthlott visited
disbelief and accusations of
trates that a major innovative
Bildung und Forschung), which
numerous potential industry
fraud, because his discovery
breakthrough, especially in the
after a live demonstration
partners in the hope of
so completely contradicted
field of biomimicry, is initially
granted 450,000 DM (roughly
commercializing his Lotus-
the accepted scientific wisdom
often met with severe disbelief
$168,000 in current USD) in
Effect (first described as such
at the time. Concepts like
and suspicion, in his case both
research funding. The grant
in his 1992 publication Die
nano-technology and micro-
in the scientific and industrial
was classified as foundational
Selbstreinigung pflanzlicher
scopic surface properties were
community. Eventually, in the
research because no biomi-
Oberflächen in the Climate and
still largely unknown at the time
early 1990s, he tried to submit
metic prototype existed at
Environmental Report of the
and the techniques to examine
a research proposal to the DFG
the time. Since fields such as
University of Bonn14), but was
them had just become widely
(Deutsche Forschungsgemein-
nanotechnology or biomimicry
met with the same disbelief or
available a few years earlier,
schaft—German Research
were as yet unheard of in the
plain amusement over and over
through the introduction of
Association) but was declined
early 1990s, Prof. Barthlott
again. One company in the
because his idea contra-
was asked to also look into
adhesive industry reportedly
dicted the generally accepted
forest trees such as oaks and
claimed that if such a thing as
knowledge at the time. Yet he
spruces so that the grant could
the Lotus-Effect were techni-
spherical water droplet on a super-hydrophobic leaf. (e) An SEM micro-
was referred to the German
be classified as forest dieback
cally possible, they would know
graph of a droplet illustrating the low wettability of super-hydro-phobic
Federal Ministry of Research
research.
it. At the time, the chemical
microstructured surfaces. (f)-(h) The SEM micrographs show the Lotus
(today the Federal Ministry
SEMs.
Super-hydrophobic and self-cleaning surfaces (a) A flowering plant of Lotus (Nelumbo nucifera). (b) A Lotus leaf contaminated with clay and (c) removal of the adhering particles by water. (d) A
industry exhibited neither
leaf surface in different magnifications: (f) shows randomly distributed cell papilla, (g) shows a detail of the cell papilla and in (h) the epicuticular wax tubules on the cells are shown.
14 Barthlott, W. (1992). Die Selbstreinigungsfähigkeit pflanzlicher Oberflächen durch Epicuticularwachse. Rheinische Friedrich-Wilhelms-Universität Bonn (Ed.). Klima- und Umweltforschung an der Universität Bonn, 117-120.
32 | SYNAPSE.BIO
SYNAPSE.BIO | 33
COMMERCIALIZATION PROCESS & STRATEGY
COMMERCIALIZATION PROCESS & STRATEGY
THE BEGINNING OF STO In 1997, the year of the founda-
façade specialist ISPO, then
Although the marketing of
tional publication Purity
part of the renowned German
Lotusan in the U.S. initially
of the Sacred Lotus16, the
Dückerhoff group, a key
progressed much slower
German Karl Heinz Beckurts
player in the cement industry,
than in Germany, where it
Foundation bestowed the
developed the first coating
was already an established
prestigious Beckurts-award to
prototypes based on Prof.
brand name, Sto successfully
Prof. Barthlott for his accom-
Barthlott’s Lotus-Effect after
developed and improved
plishments. In 1999, he and his
only one year of collaboration
the product further. It in fact
co-author and most important
and development. Lotusan was
became so successful that
scientific partner between
brought to market in 1999, but
a host of copycat products,
1992 and 1999, Christoph
not without significant initial
claiming for the most part only
Neinhuis, together received
internal resistance within ISPO
dubious similar super-hydro-
the Philip-Morris award. Yet the
and against lawsuits from large
phobic properties, began to
initial dialogues with potential
competitors, claiming that the
emerge. A never-ending string
industry partners were still
product’s unheard of properties
of complex and protracted
difficult. The primary target
were fraudulent. In 2001, ISPO
legal battles and patent
groups were the automotive
was acquired by Sto, together
lawsuits eventually lead Prof.
and façade industries. While
with all the trademarks and
Barthlott to sell all remaining
talks with large key players
rights related to Lotusan, while
patents he held, including the
15 Barthlott, W. (2011). Der Geometri-
in the former proved to be
Prof. Barthlott continued to
Lotus-Effect itself, to Sto in
sierte Lotus – vierzig Jahre bota-
difficult, in the latter the quest
hold the patent for the under-
2009.
nische Forschung zur Biodiversität
for a willing partner did not
lying Lotus-Effect.
und Bionik. Lecture held at the
last long. The medium sized
The Lotus-Effect: Water collects debris as it rolls over the textured surface
interest nor acceptance of
of sheer frustration he himself
appearing in Lufthansa’s board
nano-surface based anti-ad-
filed a patent for his super-hy-
journal around 1995 was pivotal
hesive technologies, but rather
drophobic self-cleaning
in disseminating the innovative
relied on chemically based
surfaces in 1994, trademarking
biomimetic discovery to a
fluorinated polymers in their
the Lotus-Effect in 1995. He
broad audience.
processes. Both the industry
subsequently began to work on
and the scientific community
an initial prototype in his own
From that point on, Prof. Barth-
continued to disregard and
laboratory—a honey dipper that
lott’s “phone would not stop
doubt the viability and credi-
would allow honey to run off
ringing” as he recalls, and
bility of Prof. Barthlott’s break-
it without leaving behind any
eventually a consortium of
through. His now pivotal
residue.
roughly 10 different companies
scientific article Purity of the
The eventual breakthrough
was formed, united by an
Sacred Lotus was declined
for Prof. Barthlott and the
interest in commercializing the
by 5 different reviewers15 and
Lotus-Effect® came from an
Lotus-Effect.
his publication proposals to
unexpected direction. It was
renowned magazines such
neither publication in a major
as Nature and Science were
scientific magazine nor cooper-
continuously rejected, not to
ation with a prestigious indus-
be published until 1997. Out
trial firm: instead, an article
University of Bonn: July 1, 2011.
16 https://link.springer.com/article/10.1007/s004250050096
34 | SYNAPSE.BIO
SYNAPSE.BIO | 35
COMMERCIALIZATION PROCESS & STRATEGY
COMMERCIALIZATION PROCESS & STRATEGY
GO-TO-MARKET STRATEGY IN THE U.S. The commercialization of
Traditionally Sto’s coating
actively expanded in the hope
constitute as much as 50% of
focused on the coating space,
primarily on their price-value
Lotusan in the United States
division has been highly reliant
of providing a new driving force
the overall $11.6 billion USD
the lack of resources in terms
ratio and readily compare even
began in the late 1990s, when
on the developments in the
for innovation and growth.
coating market.
of sales force and the limita-
premium products like Lotusan
the product was brought in
EIFS and stucco segments and
tions associated with finding
with other “regular” paints,
from Germany. Adoption of the
constituted a mere add-on to
Of the overall $11.6 billion
One of Sto’s obvious key
distribution partners makes
measuring their value by the
product in the U.S. has been
those core areas. Gradually
coating market in the U.S.,
assets in pushing new
such a strategy more efficient.
same standards. The same
relatively slow to date, as a
however, Sto’s current mature
the potential market size for
innovative products such as
Leveraging already existing
problem also applies to brick &
result of a larger corporate
market positioning in these
Lotusan—the exterior and archi-
Lotusan to market, are its
relationships through core
mortar stores, which makes it
focus within Sto on its core
core businesses, even with
tectural flat coating market—is
existing strong relationships
business connections and core
tough for Sto to compete with
markets in EIFS and stucco.
its existing strong distributor
estimated at around $2 billion
with customers and distributors
product brand recognition
larger players in their market.
Only in the past few years
network, is increasingly seen as
USD. After years of a relatively
through its core business and
can also play a vital role in
Sto’s strategy therefore lies in
has there has been a shift in
insufficient for the company’s
inconspicuous niche-exis-
its brand recognition. However,
overcoming these constraints.
targeting potential synergies
focus with the realization of
goals of continuing to provide
tence in the U.S., the company
the company also seeks to
the opportunities that Lotusan
sustained strong growth. With
now seeks to enter the mass
expand further and diversify
A key pillar of Sto’s growth
unique properties and selling
could bring the company.
only about 6-8% annual overall
market by targeting commercial
into new market spaces, such
strategy for the coating
proposition are envisaged to
Spurred by a repainting project
market growth, these sectors
and residential contractors,
as hospitality for example.
business is a focus on brick
allow brick & mortar stores
of all Lowe’s stores nationwide
are relatively stagnant overall
property owners, and brick
Large commercial structures
& mortar stores such as
to differentiate themselves,
with Lotusan, a new focus on
and exhibit limited potential for
and mortar stores, trying to
and high-rise markets will also
Sherwin-Williams. The fact that
while they can provide Sto with
the coating market began to
great innovations. Therefore,
also reach the as-yet untapped
constitute an important area
the paint market is essentially
access to the as-yet untapped
emerge.
over the past 2 years the
potential of DIY customers.
for Sto’s coating division. As
a “commodity” market means
potential of the DIY market.
coatings division has been
These are estimated to
only 5 employees are currently
that customers assess products
Furthermore, stores like
36 | SYNAPSE.BIO
between them—Lotusan’s
SYNAPSE.BIO | 37
COMMERCIALIZATION PROCESS & STRATEGY
Financial Strategy
Dunn-Edwards or Kelly Moore
Another important tactic
force will allow it to efficiently
have their own strong relation-
employed by Sto’s coating
target other Lowe’s-sized chain
ships with regional contractors
division has been the effort to
stores currently undergoing
and by offering them a way to
form a strategic partnership
expansion. By freeing up an
differentiate themselves, Sto
with Lowe’s, by having every
active strategic accounts team
FUNDING OF PROF.
can form beneficial strategic
one of its stores throughout
to not only focus on these large
BARTHLOTT’S
partnerships that allow it to
the country painted with
chain companies, but also and
BREAKTHROUGH
reach those smaller customers.
Lotusan. Sto hopes that its
especially on the mid-range
This strategy can help Sto to
overall strategy of leveraging
commercial building sector, it
cut down on sales expenses
its existing brand recognition
hopes to grow its market share
and expand its sales presence
and relationships instead of
strongly and efficiently.
at the same time.
investing into a large new sales
38 | SYNAPSE.BIO
In 1972, Prof. Barthlott
benefit from crucial resources
trademarks need to be regis-
discovered the Lotus-Effect and
provided by the University of
tered, especially international.
found himself in a position not
Heidelberg and later Bonn,
well suited to developing and
first and foremost SEMs.
In 1992, Prof. Barthlott was
financing possible usage appli-
Furthermore, in this initial
able to secure a substantial
cations. In the industrial and
phase his operational costs
grant from the German
scientific communities at the
were likely relatively low, as
Federal Ministry of Research
time, nano-technology was still
Prof. Barthlott already had his
and Technology. The granted
unheard of and Prof. Barthlott’s
own laboratory set-up at home
amount of 450,000 DM
discovery in particular directly
and costs for his research
(roughly €148,000 EUR /
contradicted everything the
facility, such as electricity, heat,
$168,000 USD in current
chemical industry knew at the
or water, most likely did not
values) likely enabled him
time. Therefore he had to do
exceed €4,000 EUR ($4,560
not only to pursue further
most of the necessary founda-
USD) per year. Significantly
research, but also to develop
tional research and devel-
higher costs are usually only
further usage applications
opment by himself and in his
generated when employees
and to build a first prototype,
own laboratory, although he did
are needed and/or patents and
the honey dipper. It is not
SYNAPSE.BIO | 39
FINANCIAL STRATEGY
COST ESTIMATIONS FOR THE PRE-COMMERCIALIZATION PHASE
clear however, whether the
Today the costs for trade-
The R&D costs for this time are
terms of the research grant
marks range between €500
estimated between €400,000
may have partially prohibited
EUR ($570 USD) at national
EUR ($456,000 USD) and
him from using the funds to
level and €4,000 EUR ($4,560
€600,000 EUR ($684,000
pursue commercial applica-
USD) on an international
USD), covering employee
tions. Two years later, in 1994,
level. Adjusting for inflation
wages, costs for patent appli-
Research grant
the patent application process
this amounts to roughly €675
cations, and general laboratory
(inflation
for self-cleaning biomimetic
($770) and €5,390 ($6,150)
costs. The estimate varies
adjusted)
surfaces had been started and
current EUR/USD, which could
because employees are usually
two basic patents were granted
have been covered by a private
the largest cost driver and their
2 basic patents
in Europe, the United States,
entrepreneur at that time.
numbers for this specific period
(estimated
and other countries. Today the
After completing his honey
and project are unknown.
range)
costs for international patents
dipper prototype and attracting
Costs for laboratory equipment
range from €30,000 EUR
significant positive press
and chemicals on the other
($34,000 USD) to €50,000
coverage that provided Prof.
hand should have played a
EUR ($57,000 USD), which
Barthlott with long overdue
smaller role, since Dyckerhoff
would have been €41,500 EUR
public attention, he was able
was already an active player in
($47,000 USD) and €69,000
to establish cooperation with
the coating sector and would
EUR ($78,000 USD) at the
industry players in 1999. ISPO
most likely already have had
time.17
and Dyckerhoff group, an
the relevant research facilities
important player in the German
at their disposal.
In 1995, Wilhelm Barthlott was
cement and face industry,
very likely able to cover the
developed the first coating
costs for a first trademark of the
prototype over a time frame of
Lotus-Effect out-of-pocket.
one year.
17 Numbers are inflation adjusted and based on the author’s’ estimations, actual costs may be different depending on the exchange rates and other factors applied.
40 | SYNAPSE.BIO
DESCRIPTION
Lotus-Effect Trademark (domestic/int’l)
COSTS
SOURCE
YEAR
German Federal €148,000 EUR
Ministry of
(168,000 USD)
Research and
1992
Development
€41,500–€69,000 EUR
€675/€4,000 EUR ($770/$4,560 USD)
R&D costs for
€400,000–€600,000 EUR
Lotusan
($456,000–$684,000 USD)
Lotusan patent
AMOUNT GRANTED
€40,000–€63,000 EUR ($46,000–$72,000 USD)
Unknown
1994
Wilhelm Barthlott, Walter R. Erdelen,
1995
M. Daud Rafiqpoor Dyckerhoff/ISPO
1999
Dyckerhoff/ISPO
1999
FINANCIAL STRATEGY
(In Millions)
inspiration for Sto’s innovative
USD, together accounting for
of all rights and patents
drive and R&D.
71% of the whole market. Sto’s
connected to Lotusan, and
estimated 2014 sales revenue
$25,000
1,330
$23,000
1,210
$21,000
1000
$19,000
970
$17,000
since 2009 also of the under-
In 2010, the U.S. paint and
in the U.S. would likely place
lying Lotus-Effect itself. While
coating market was worth $18.2
it the group of the next ten
Lotusan was already brought
billion USD or 21% of the global
companies, ranging from $100
into the U.S. in the late 1990s,
coating market.18 The overall
million to $700 million USD in
TEN-YEAR DEVELOPMENT OF THE US PAINT AND COATING MARKET
a significant focus was placed
U.S. market is divided into
annual sales.19 Since Sto gives
This figure shows that the general U.S. paint and coating market development has been positive since
on the product by Sto Corp
three major segments: archi-
only a combined figure for its
2009 in both value and volume. After a prolonged growth period peaking around 2005/2006, the market
only very recently. In their
tectural, original equipment
Asian and American markets
marketing strategy, the genius
manufacturer (OEM), and
in the annual report, the exact
of nature and the fascinating
special purpose coatings.
number for only the U.S. market
story of the lotus flower play
Each segment includes several
is difficult to estimate. However,
only a minor role. It is primarily
sub-markets—Sto’s key market
with around €142 million EUR
the self-cleaning property of
of architectural coatings for
in Asia and America together,
the product, along with the
example is comprised by
Sto clearly belongs to one of
associated high performance
professional painters and the
the smaller companies within
and longevity, that acts as the
Do-It-Yourself (DIY) market.
this second-tier group of
most crucial selling point for
The 10 biggest companies
companies in the U.S., which
potential customers. Nature
in the U.S. market exhibited
constituted a combined 11% of
and the field of biomimicry
sales revenues ranging from
the 2010 U.S. paint and coating
have become a major source of
$700 million USD to $3 billion
market.20
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
took a severe hit during the deflation of the U.S. housing bubble after 2006/2007, but has rebounded since mid-2009. Source: ChemQuest Group, Inc. (2015). US Paint & Coating Industry Market Analysis 2010-2015
A comparison of the three
Over the same time frame, the
and 2009, which amounts to a
different market segments
smaller OEM market suffered
decrease of $747 million USD.
shows that the architectural
the highest losses of $1,609
All three markets are now in
market remained relatively
million USD, which amounts
the process of recovering,
robust in value terms during
to as much as 26% of its total
although by 2010 all three had
the global financial crisis.
value. The special purpose
yet to recover to their pre-crisis
From 2006 to 2009 losses
value market, which is the
levels.
amounted to 7% of the market
smallest of the three, lost 17%
value or $647 million USD.
in market value between 2007
18 ChemQuest Group. (2015). US Paint & Coating Industry Market Analysis 2010-2015. 19 ibid. 20 Sto SE & Co. KGaA. (2014). Sto SE & Co. KGaA: Geschäftsbericht 2014. Stühlingen: Sto SE & Co. KGaA.
42 | SYNAPSE.BIO
SYNAPSE.BIO | 43
VALUE
Today Sto is the sole proprietor
1,450
(In Millions)
STO’S MARKET DATA
GALLONS SOLD
FINANCIAL STRATEGY
FINANCIAL STRATEGY
FINANCIAL STRATEGY
$9,000
$8,000
STRATEGY, CAPABILITIES, & OUTLOOK
(In Millions)
GALLONS SOLD
$7,000
From 2013 to 2014, Sto grew
research facilities are located in
than Lotusan. Sto expects
its combined American and
Germany.
Dryonic to replace Lotusan in
Asian sales revenues by 7.6%,
the long-term and to exhibit
$6,000
$5,000
$4,000
$3,000
from roughly €132 million to
Sto Germany is currently
even higher growth potential
almost €143 million EUR, and
developing a “second gener-
than its predecessor. Given
it increased its net assets from
ation Lotusan” product, which
the apparent ease with which
HISTORICAL VALUE OF THE THREE MAJOR COATINGS SEGMENTS
about €95 million to just shy
is based on the hydrophilic
Sto has been able to internally
of €105 million EUR over the
and hydrophobic character-
finance the development and
Source: ChemQuest Group, Inc. (2015). US Paint & Coating Industry Market Analysis 2010-2015.
same time period. It is evident
istics of the Namib beetle. A
rollout of Lotusan, this new
that the company is in a very
patent application is currently
product, if as successful as
negative in volume terms at
niche products and unique
growing at a rate of 5.5% a
healthy and strong financial
pending. In 2014, a fast drying
expected, is expected to be
-0.4% and slightly positive in
technologies can indeed be
year, the estimated current
situation, enabling it to fund
paint inspired by this very
commercialized with even
value terms at 2.4%. Although
very successful in this highly
market growth for the coating
all R&D, patent, and expansion
effect has been developed: it
greater financial freedom. Due
these low growth rates are
competitive market.
department lies somewhere
costs from its own resources.
is called StoColor Dryonic.
to new, advanced distribution
partly attributable to the
Sto Corp reinvests roughly 2%
The paint is designed to collect
possibilities, Sto expects a
financial crisis, even prior to the
Sto has been growing strongly
With new major initiatives being
of its U.S. sales revenue into
condensed water and clean
compounded annual growth
crisis the market overall grew
over the past few years, even
played out and entering the
its own R&D department. The
itself through this hydrophilic
rate in super-hydrophobic
at rates comparable to Sto’s
without the new technology
mix, Sto Corp’s coating division
main purpose of its laboratories
feature. Dryonic, or a more
coating between 10% and 12%.
current targets only in 2002
just introduced. About half
hopes to reach growth rates
however is to merely adjust
advanced version of it, could
By contrast, between 2000 and
and 2003 (at 11%). Therefore,
of the revenue is generated
as high as 15% by expanding
the German original to the
be the next big biomimetic hit
2010 the compounded annual
if Sto manages to reach its
in Germany, the other half in
and improving its distribution
American market and local raw
in Sto’s repertoire and become
growth rate of the architec-
ambitious goal it would show
the rest of the world. While
network.
materials, while all the major
just as or even more successful
tural coating market has been
that small companies with
the U.S. market overall is
21
22
21 Sto SE & Co. KGaA. (2014). Sto SE & Co. KGaA: Geschäftsbericht 2014. Stühlingen: Sto SE & Co. KGaA.
2001
2002
2003
2004
2005
2006
2007
23
2008
2009
2010
between 6% and 7% annually.
23 ibid.
22 ibid.
44 | SYNAPSE.BIO
SYNAPSE.BIO | 45
FINANCIAL STRATEGY
TEXT PLACEHOLDER
STO MARKET DEVELOPMENT In order to continue to develop
increase customer awareness
Lotusan successor StoColor
the highly important paint store
without having to bear huge
Dryonic. Since R&D costs, as
distribution channel, in which
expenses for marketing costs.
has been mentioned before,
mere availability of the product
With its local distribution
are mostly driven by the size
constitutes the most important
strategy in cooperation with
of the research team, the
purchase decision driver, Sto
brick & mortar stores, Sto Corp
estimated costs of such a
Corp is focusing on two major
is further able to increase
project, assuming a five-person
strategies to win in this highly
its products’ availability
research team comprised of
competitive market and tap
and directly reach its local
highly trained and qualified
its growth potential: brand
customers.
people, would amount to
building (and exploitation)
roughly $600,000 to $700,000
and relationship building with
Sto’s annual report shows that
USD per year. Laboratory and
contractors. Brand loyalty
the company has Sto’s annual
patent costs should play a
among the major regional
report shows that the company
comparatively minor role for
brands is very strong and
has traditionally invested vast
a company of Sto’s size and
continues to be a major factor
sums in new technologies
capabilities.
in the success of a product.24
and facilities. The invest-
Strategic partnerships, such as
ments have been increasing,
the ongoing one with Lowe’s
almost doubling from €20.3
or an envisaged one with
million EUR in 2009 to €39.1
Marriot International, provide
million EUR in 2014. One of
substantive opportunities to
the larger new projects is the
46 | SYNAPSE.BIO
TURNOVER (IN MIO EUR)
2009
2010
2011
2012
2013
2014
TOTAL
924.6
986
1106.8
1141.7
1166
1208.7
GERMANY
450.6
489.2
529.4
524.7
534.7
549.2
ABROAD
474
496.8
577.4
617
631.3
659.5
20.3
18.2
27.6
36.3
32.4
39.1
INVESTMENT (without financial assets)
24 ChemQuest Group. (2015): US Paint & Coating Industry Market Analysis 2010-2015.
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Conclusion
Professor Barthlott’s initial severe and prolonged difficulties in commercializing his discovery of the Lotus-Effect vividly illustrate the struggles of the pioneer that are often faced by biomimetic innovators. In the absence of acceptance from either the scientific or industrial community, his securing of a government research grant seems to have been crucial in further advancing his discovery to the stage of a viable proof of concept through a first prototype. Positive and extensive media coverage was a key factor in making the Lotus-Effect widely known to a broad audience – many of which were potential investors and future business partners. While major corporations across various industries at the time were initially difficult to work with, it was the small to medium sized company ISPO that originally developed the first iteration of Lotusan before it was acquired by Sto. Ever since, Sto has very successfully developed, and especially in Germany the company marketed a number of Lotusan-related products, such as StoCoat Lotusan Exterior Coating for example. These products, together with an increasing corporate focus on biomimicry that is evident from the development of the Lotusan successor product Dryonic, based on the Namib beetle, will help Sto to grow continuously and sustainably. For years Sto Corp’s focus in the U.S. market was primarily concentrated on its EIFS and stucco segments. By accelerating Lotusan’s rollout in the U.S. however, the company seems to have responded to stagnating growth in its traditional core-focus areas, which furthermore have suffered most from the economic recession following the global financial crisis. By increasingly building strength and capacity in sustainable and innovative biomimicry-inspired products, the company is therefore on a good track to live up to its ambitious growth targets in the U.S. and worldwide, while doing so in a sustainable and responsible manner, in keeping with its strategic vision.
Lessons Learned
RESEARCH GRANTS CAN HELP GET THE BALL ROLLING FOR SMALL COMPANIES AND ENTREPRENEURS
In order to fund such risky projects, in the absence of promotion or even acceptance from industry or academia, government support in form of research and startup grants will be of prime importance. Although small- to medium-sized companies often are the most innovative when trying out and adopting radical new approaches such as the commercialization of biomimetic innovations, large corporations with their sizable resources can impressively implement and perfect these concepts, once their potential has been realized. MEDIA COVERAGE AND FUNCTIONAL PROTOTYPES CATALYZE UPTAKE
The media can play a crucial role in disseminating the potential promise of biomimetic innovations, mainly by simply reaching a large number of potential investors and making the discovery better known to the broader public. For the initial proof of concept of biomimetic ideas, the ability to practically demonstrate its viability through a working prototype and ideally a live demonstration seems to be vital. SOLUTION ACCEPTANCE CAN BE DIFFICULT AT LEADING EDGE OF INNOVATION
Biomimetic breakthrough innovations sometimes differ so radically from the accepted conventional wisdom of their time, that it can take tremendous time and effort to convince potential investors of their viability. Surprisingly, not only the industrial but even the scientific community can be extremely unaccepting of new biomimetic concepts, if the innovation introduced is large and radical enough.
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