FoodBev.com Features RSS Feedhttp://www.foodbev.com/Interviews, opinion and reports from the world of food and drink.en-gbSun, 19 May 2013 22:37:16 GMTFoodBev.com a finalist in Online Media Awards 2013http://www.foodbev.com/opinion/foodbevcom-nominated-in-online-media-awa

Just two years ago, FoodBev.com won best in category at the inaugural Online Media Awards in the UK. I'm pleased to announce that we've been nominated this year, too.

In 2011, when the site was barely three years old, we won 'Best Commercial Innovation'. Two years on and we find ourselves pitted against a strong list of contenders in the 'Best Use of Social Media' category. Our fellow nominees include Al Jazeera, Channel 4 News, Company, CNN, Sky News and The Times.

OK, we realise we may be a rank outsider, but stranger things have happened (Wigan won the FA Cup last week, for instance). And despite our efforts to be strong and competitive in our industry, we recognise that prizes are often the spoils of the familiar, and we wish our fellow nominees the best of luck in this regard.

Yet, we are strong and competitive, and we should embrace this as having been recognised by a respected judging panel. We are included on merit. Our efforts in social media have pushed us in the right direction, as we strive to make FoodBev.com a valuable resource for people working in the trade, and as an interesting insight into the food and beverage industry for those who are simply curious.

We're close to passing a million views on our Flickr channel, and have recently passed 300,000 views for our YouTube content. Our followers have increased steadily on Facebook, Pinterest, Twitter, Tumblr and Google+, and our FoodBev Network on LinkedIn is approaching a 12,000-strong membership.

We won't rest on our laurels, because we see great value in making things easy for our readers. You can expect to see even more social activity as our business grows and develops.

I take great pleasure in having been nominated in the Online Media Awards, because it demonstrates that even B2B platforms have their moment in the sun. Wish us luck!

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Fri, 17 May 2013 14:29:36 GMThttp://www.foodbev.com/opinion/foodbevcom-nominated-in-online-media-awa
Will the Morrisons-Ocado deal upset Waitrose?http://www.foodbev.com/opinion/will-the-morrisons-ocado-deal-upset-wait

On paper, the Morrisons deal looks like an excellent one for Ocado and a ringing endorsement of its platform and business model.

Morrisons is one of the 'big four' supermarket chains, but its lack of online service and local convenience stores has put it at a disadvantage to its rivals.

The terms of the 25-year agreement will offer Morrisons much more visibility in the marketplace and provides Ocado with the security it needs by generating a welcome chunk of funds for the firm to pay down debt.

Morrisons, which is strong in the north of England, also offers Ocado a counterbalance to its deal with Waitrose, which is much stronger in the south.

That said, Waitrose has made some ominous noises about a potential tie-up with Morrisons and its reaction to it. At best, it's likely to annoy Waitrose. At worst, it could result in legal action to try to prevent the Ocado-Morrisons tie-up happening before Ocado's contract with Waitrose comes to an end in 2017.

Sam Fuller is UK head of consumer and leisure at international investment bank Altium. This is a personal blog and views expressed are his own.

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Fri, 17 May 2013 12:15:51 GMThttp://www.foodbev.com/opinion/will-the-morrisons-ocado-deal-upset-wait
Yakult ban shows that health claims confusion still reignshttp://www.foodbev.com/opinion/yakult-ban-shows-that-health-claims-conf

In the UK, the Advertising Standards Authorities' (ASA) decision to ban the ad for Yakult's eponymous probiotic health shot adds further fuel to the fire of complexity surrounding the communication of health benefits in food.

The ad featured an animation of the Yakult bottle, which tied in with what was said in a voice-over. While the bottle was shown skipping, the voice-over said, 'At Yakult, we appreciate the importance of regular exercise routines'; while it was walking a tight-rope, the voice-over said, 'We know how important it is to keep life in balance'; and while it was pole vaulting, the voice-over said, 'to overcome life's obstacles. Just like Yakult's unique bacteria that are scientifically proven to reach the gut alive'.

The ASA considered that the references to sport, regular exercise and keeping a balanced life, both in the voice-over and the animation, together with the claim about the probiotic bacteria Lactobaillus casei Shirota (LcS) reaching the gut alive and the closing statement, Yakult. A bottle for you every day, formed a general impression that there was a health advantage to drinking Yakult.

Because we considered that the ad implied general benefits of Yakult to overall good health and the ad did not contain a relevant, authorised health claim, we concluded that it breached the Code, said the ASA in its report. The Ad has bas been banned.

So what now for food and beverage companies, even those, such as Yakult, armed with a battalion of supporting trials to substantiate the benefits of the product? This ruling highlights that if ingredients do not, like probiotics, have an approved health claim, they do not have an approved health claim! And, woe betide you imply that your product containing that ingredient contributes to good health.

Marketing teams everywhere are likely to be rethinking many of their campaigns right now as a result of this decision, because it appears, in the UK at least, that very little leeway will be offered to those aspiring to build on their healthy image without a health claim, in future.

Claire Rowan is group technical editor, FoodBev Media.

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Thu, 16 May 2013 16:23:00 GMThttp://www.foodbev.com/opinion/yakult-ban-shows-that-health-claims-conf
Bubbling over at Caffè Culture 2013http://www.foodbev.com/opinion/bubbling-over-at-caff-culture-2013

The first thing to hit you when you arrive at the Caffè Culture show at London's Olympia is the delicious smell, from freshly brewed coffee to fruit smoothies, waffles and exotic teas.

The show, now in its eighth year, is always a treat for the senses. The 2013 event was a buzzy, vibrant affair with consumers and outlet owners packing out the aisles to see the latest innovations for the cafe and bar sector.

It seems that the on-trade and convenience food and beverage marketplace is showing no signs of slowing, in fact quite the opposite. With around 220 exhibitor stalls to get around, it was a busy day for us.

There were a host of new innovations on offer. Welsh organic milk company Daioni was showcasing the industry's first flavoured organic milk in chocolate, banana and strawberry flavours.

Zacely, which owns the Teaforia, Simplicitea and Wild Monk brands, launched its Monk Bubble Tea, Matcha powders and tea syrups. Bubble tea, for those not in the know, is a slightly strange combination of a milkshake-style drink with real fruit bubbles at the bottom, which you suck up through a straw. It is, literally, not my cup of tea, but is a trend that started in the Far East and is now taking western markets by storm.

Another interesting company, Bubblefroot, also launched its new all-natural bubble shakes in strawberry shortcake, mango and passionfruit flavours.

Bottled water brand One had a delicious new range of juice waters at the show, while Vita Coco launched a new coconut water with orange flavour. The classy branding of Folkington's juice is now available in Wild Elderflower and Mango, all direct from its East Sussex facility.

The show is a real benefit to independent coffee shop and bar owners. There were two stages, one offering business advice and the other taste sessions, which were very popular. I caught Paul Miekle-Janney from Coffee Community, giving a great talk on how to sell speciality drinks in outlets, with some excellent tips for those in the trade. He explained how new products can prevent menu fatigue, increase profits, take advantage of seasonal changes and react to new trends in the marketplace, such as chai tea and cocktail-style coffees. He then whipped up a 'Spicycino', Vanilla Shakerato (an iced espresso) and strawberries and cream milkshake, which we got to taste.

Overall, there is great confidence and innovation in this sector of the on-trade. The next show is already booked in at Olympia from 14-15 May 2014, and I'll be booking my tickets too.

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Thu, 16 May 2013 10:16:17 GMThttp://www.foodbev.com/opinion/bubbling-over-at-caff-culture-2013
Investing in fruithttp://www.foodbev.com/opinion/investing-in-fruit

The level of investment by multinationals in emerging markets is often measured in billions. Only rarely do I see billions being invested in one region of one country.

Coca-Cola has already invested $400m in Florida over the past five years. Now it has agreed to buy all the fruit produced by 25,000 acres of new orange trees for the next 20 years, representing a value of $2,000m.

That's a substantial pledge by any measure.

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Thu, 16 May 2013 08:24:36 GMThttp://www.foodbev.com/opinion/investing-in-fruit
Asset Italia – an inventive Italian spirithttp://www.foodbev.com/opinion/asset-italia-an-inventive-italian-spir

I recently had the pleasure of visiting water cooler manufacturer Asset Italia at its headquarters and production site near Genoa in Italy.

I have visited many water cooler manufacturers over the years and can safely say that Asset is one of the most vibrant and fast-paced companies I have seen.

There is an air of inventiveness, from the factory floor to the sales office, and a very hands-on management team in the form of managing director Andrea Simoncelli and chief project manager Paolo Tessi.

Both are former Kosmologik employees who left the company to set up Asset in 2004, to break into the Italian domestic marketplace with a range of new machines. They haven't looked back since and now have an array of point-of-use water coolers for the home, hotels, restaurant and catering sector, as well as tackling the office market.

The company will be launching some new machines at Avex 2013 in Birmingham this June, and sees a strong growth trajectory for mains-fed machines in Europe and further afield.

With emphasis on the quality of single components, most of which are designed and built in-house, this is a manufacturer really in control of its own destiny and thoroughly deserves its 'made in Italy' badge. It will be interesting to see where Asset heads in the future.

For more on this story, which will feature as the cover story for Cooler Innovation 45, please click here.

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Wed, 15 May 2013 15:46:50 GMThttp://www.foodbev.com/opinion/asset-italia-an-inventive-italian-spir
Being in the beverage industry for the long haulhttp://www.foodbev.com/opinion/being-in-the-beverage-industry-for-the-l

I have been talking with ingredients specialist Dr Stefan Siebrecht about the amount of innovation in food and beverages. He said: "Too many companies expect to make a fast buck and get out, and it really doesn't work like that. You have to be in it for the long haul."

He was also a little scathing about the larger companies, who he feels are very divided: "They have NPD teams keen to work with functional ingredients, but on the other hand their marketing teams are wary of anything more than pretty basic refreshment, and so new ideas rarely get the go-ahead."

Dr Siebrecht is taking a place on our judging panel for The Beverage Innovation Awards @ Drinktec and we look forward to reading his comments in the showcase supplement showing all the entries.

What do you see as the next big thing in beverages? Either enter the awards or contact me as I'd love to hear your views.

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Wed, 15 May 2013 14:17:27 GMThttp://www.foodbev.com/opinion/being-in-the-beverage-industry-for-the-l
Claire Phoenix on new innovations at Vitafoods 2013http://www.foodbev.com/opinion/claire-phoenix-on-new-innovations-at-vit

There have been two big announcements at Vitafoods Europe 2013. First, the launch of Newtrition the new name for BASF and underlining its consumer-centric focus.

The stand had blackboard walls with 'Welcome to our kitchen' as the slogan, where we create Newtrition for better lives in food, beverages and dietary supplements. I tasted a granular ice green tea beverage here with a totally new mouthfeel that was a refreshing step up from the sweetness of bubble teas.

I also appreciated the work behind the launch of Osteum by Ingredia Nutritional, which combines a combination of micellular calcium that is easily absorbed by the body, natural vitamin D2 and vitamin K2, which activates a protein to bind calcium to the mineral matrix.

In the morning, a seminar on Mena Q7 by Dr Hogne Vik of Nattopharma saw the launch of natural vitamin K2 crystals and the results of the latest studies showing how it can delay the onset of osteoporosis by 20 years or more, and improve artery health at the same time. Definitely of interest to me and the rest of the baby boomer population.

And on the fun side? Well, vitamin sprays that have survived the US's Shark Tank (their Dragons' Den) and were drawing a crowd, and Zuccini's Functional Food Project range of 26 Superdrinks in stick format.

Holger Riemensperger, GM of the global business unit for health of Frutarom, best known as a flavour house, said he loves the content of our innovation magazines and website. Frutarom has already developed a green oat extract, Neuravena, to improve cognitive performance and an iron-rich drink for pregnant women that has no unpleasant taste thanks to the micro-encapsulation techniques used in production.

Holger said: "The market sectors that are most attractive right now are children and the elderly. We also see growing interest in vitamin K2.

The tasting area of Vitafoods is always fun, but I must admit that I've tried enough protein chocolate bars and slimming drinks for one day. They're not exactly the best combination!

Tomorrow morning, I'm interviewing Geoff Collins of Clasado on the difference between prebiotics and probiotics. The company has been working closely with Reading University on its Bimuno products, and 10 years down the line they have some results really worth celebrating. More on this success story tomorrow.

Last but not least, the World's Best Ashwaghanda used in the new drink Rebel Tea by the ex-Zico Beverages team said to aid in stress relief and sexual health.

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Wed, 15 May 2013 12:39:00 GMThttp://www.foodbev.com/opinion/claire-phoenix-on-new-innovations-at-vit
A few statistics about craft beer from Mintelhttp://www.foodbev.com/opinion/a-few-statistics-about-craft-beer-from-m

It's American Craft Beer Week, and to celebrate the occasion, Mintel has provided some insight into the craft beer sector.

  • Consumers who were of legal drinking age in 2012 are most likely to report increased consumption of beer (14%), which includes 7% of respondents who are drinking more craft beer in 2013 compared to 2012.
  • Discovery of new beers is popular with 93% of imported beer drinkers, 88% of domestic fans and 84% of craft beer consumers.
  • Craft beers have found a way to appeal to 49% of 'Millennials' and 40% of 'Gen Xers', but just 29% of 'Baby Boomers' and 22% of 'Swing Generation/World War II'.
  • Hispanic consumers also turn to craft beer, with 38% indicating that they consume craft beer at any time. But there's room to grow, since 58% of Hispanics aged 21+ report drinking domestic beer and 55% of Hispanics drink imported beer.
  • 84% of craft beer consumers like to choose their beer depending on the season.
  • Liquor or package stores are the preferred outlet for craft beer purchases.
  • 73% of craft beer drinkers say that they usually know what brand of beer they are going to buy before they go to the store.
  • A third of craft and imported beer consumers ask sales associates for advice and information when buying beer.
  • 45% of craft beer drinkers indicate that they would try more craft beers if they knew more about them.
  • Beer drinkers aged 36-47 are slightly less likely than consumers aged 21-35 to show a preference for the taste of craft beer. Members of Generation X are more likely than their younger counterparts to indicate that imported beer and craft beer are similar value.

Enjoy the week!

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Wed, 15 May 2013 08:40:56 GMThttp://www.foodbev.com/opinion/a-few-statistics-about-craft-beer-from-m
The importance of good timinghttp://www.foodbev.com/opinion/the-importance-of-good-timing

So many great product innovations fail because they are ahead of their time. Most aren't given a second chance. Maybe the time has come for mid-calorie carbonates after earlier false dawns.

Zenith International's UK Soft Drinks Industry Conference last week had its highest ever attendance, despite companies generally cutting back on events.

We had a tremendous programme, but were also extremely fortunate with our timing. The day coincided with important news from numerous speakers:

  • Coca-Cola's global commitment to new initiatives on tackling obesity.
  • The UK government's publication of evidence to support a soft drinks sustainability roadmap.
  • The British Soft Drinks Association's publication of its 2013 UK Soft Drinks Report.
  • Innocent founder Richard Reed's handover to a new team and offer to back other entrepreneurs through jamjar investments.
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Tue, 14 May 2013 10:01:49 GMThttp://www.foodbev.com/opinion/the-importance-of-good-timing
Remembering dairy journalist Geoff Platt who has passed awayhttp://www.foodbev.com/opinion/remembering-dairy-journalist-geoff-platt

Geoff Platt sadly passed away on 9 May 2013.

Geoff joined FoodBev Media in 2005 to help create and develop Dairy Innovation magazine. He was an experienced dairy industry journalist, having written for Milk Industry magazine for 17 years before becoming its editor in 1999.

Geoff's commitment to the dairy category was renowned, and he shared our obsession with innovation, a talent that was well applied in our Dairy Innovation Awards. His passion for the promotion of international school milk programmes was also legendary.

I first worked with Geoff in 1977, at The Scout Association in London, so I was delighted when we had the chance to work together again eight years ago.

Following a restructuring at FoodBev last year, Geoff became freelance and continued his unstinting support for the dairy industry with his dairy digest blog and regular discussions on various dairy groups on LinkedIn.

We have received so many messages of condolence to Charlotte, his wife of some 37 years, and to his son Charles, that I will compile a further piece in due course. To quote from one of them: "I looked up to and respected Geoff as a talented, kind, gentle, funny and always cheerful and positive chap. I will miss him greatly."

I have so many great memories of working with Geoff, on the magazine, at awards ceremonies and at trade events. He was kind, gentle, highly professional and could be relied upon to see the funny side of every situation.

I am sure he should be best remembered as a dairy journalist, so I will close this short tribute by encouraging you to see some of his work.

Blogs

Videos

Podcasts

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Mon, 13 May 2013 15:21:00 GMThttp://www.foodbev.com/opinion/remembering-dairy-journalist-geoff-platt
47 food and drink acquisitions in April 2013http://www.foodbev.com/opinion/47-food-and-drink-acquisitions-in-april

April was a busy month for food and drink mergers and acquisitions, with 47 appearing on the BevBlog database. Four featured values in excess of $1,000m.

  • $13,600m for Thermo Fisher Scientific to buy Life Technologies, both based in the US
  • €7,500m on Joh A Benckiser's purchase of DE Master Blenders 1753, formerly known as Douwe Egberts
  • $2,950m for Archer Daniels Midland to acquire Australia's GrainCorp
  • €2,300m sales for Refresco's European soft drinks merger with Gerber Emig.

The sectors covered were very diverse, with 11 transactions in alcohol, seven in soft drinks, six in dairy, four in meat and three each in hot drinks, ingredients and packaging.

23 took place within national borders and 24 were international. 26 countries were involved overall. As ever, the US featured in the most at 16, followed by France on eight, the UK on seven, the Netherlands on five and Germany on four.

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Thu, 09 May 2013 09:19:34 GMThttp://www.foodbev.com/opinion/47-food-and-drink-acquisitions-in-april
Useful facts about bottled water in Canadahttp://www.foodbev.com/opinion/useful-facts-about-bottled-water-in-cana

The Montreal Gazette recently contained some useful facts about bottled water in Canada.

  • 91% of bottled water consumers in Quebec drink tap water too. They have tap water at home and bottled water on-the-go.
  • Over 90% of Canada's bottled water is from deep springs rather than municipal water.
  • The average bottle travels 250 kilometres from source to shelf, compared to over 2,400 kilometres for fresh fruit and vegetables or most packaged consumer goods.
  • 70% of plastic beverage containers in Quebec are recycled.
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Tue, 07 May 2013 08:22:50 GMThttp://www.foodbev.com/opinion/useful-facts-about-bottled-water-in-cana
Mineral water to market countryhttp://www.foodbev.com/opinion/mineral-water-to-market-country

A mineral water is to market a country. So, which country is this? Its recent advertisement in the Financial Times promoted seven attributes.

Three were economic and social: easy access, low tax and good healthcare.

Four were about natural resources: mineral waters, mineral springs, spa tradition and excellent climate.

I don't suppose you guessed. It was Bulgaria.

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Thu, 02 May 2013 10:24:11 GMThttp://www.foodbev.com/opinion/mineral-water-to-market-country
The world economy in one charthttp://www.foodbev.com/opinion/the-world-economy-in-one-chart

I’ve waited a long time for this chart: 'World GDP – Percentage Change on a Year Earlier'. I've been checking each week and now it’s back; my favourite chart.

I like it because it summarises the state of the world in a single line. The line shows overall global economic growth.

It was steady at +4% in the run-up to 2007, then it fell to -3% in mid-2008, recovering remarkably quickly to +4% again by mid-2009.

Ever since, however, it has slipped progressively to just +2% by the end of 2012.

Here it is, with acknowledgement to The Economist magazine on 30 March 2013.

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Tue, 30 Apr 2013 09:14:00 GMThttp://www.foodbev.com/opinion/the-world-economy-in-one-chart
The power of juice at the London Coffee Festivalhttp://www.foodbev.com/opinion/the-power-of-juice-at-the-london-coffee

Two years have passed since The London Coffee Festival first opened its doors in a converted brewery in Shoreditch, London. This year, it's a lively, vibrant event that showcases some of the nicest people who work in the industry.

Has it changed much in the space of two years? I would say yes, in that there's a buzz about the place, and it's not all down to coffee.

In fact, in some corners of the venue, you won't find coffee at all. There are confectioners aplenty; juice producers, soup experts and even a German sausage kiosk. Yet, the beating heart of this event relies on a steady stream of caffeine, which can be found in the shape of distributors and brand owners, large and small.

Cimbali UK, in true Miracle on 34th Street fashion, have announced a coffee machine museum called Mumac, which showcases vintage coffee machines from lots of different manufacturers. It's based in Italy, but there were some items on show in London today, including an amazing contraption that dates back to the 1930s.

The big names in coffee, such as Starbucks and Costa, framed their brands with fun, summery stands (both with photo booths), while some of the smaller brands enjoyed the communal atmosphere of the shaded spaces, often finding themselves next to excellent chocolate producers and popular bakers.

I particularly enjoyed the juices at the Dr Oats stall, as well as the Natvia-infused iced drinks. And it was nice to see Naked Juice's Red Machine on show, which is a tough juice to find in our hometown of Bath.

And there lies the conclusion: that despite the coffee on show, it has fallen on the capable shoulders of the non-coffee brand owners to add a little spice and atmosphere to an already popular event in the food and drink calendar. And long may it continue.

Check out the event photos here.

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Thu, 25 Apr 2013 22:52:01 GMThttp://www.foodbev.com/opinion/the-power-of-juice-at-the-london-coffee
95% glass recycling possiblehttp://www.foodbev.com/opinion/95-glass-recycling-possible

95% glass recycling is possible. Belgium already does it, reaching 98.65% in 2011. Luxembourg, Norway, Sweden and Switzerland have all achieved rates above 90%. The European Union average has topped 70% for the first time.

This is really good news from the European Glass Container Federation, and the benefits are substantial:

  • More than seven million tonnes of CO2 saved, equal to taking four million cars off the road.
  • Over 11 million tonnes collected across Europe in 2011.
  • 80% of glass collected goes back into new glass bottles.

Unfortunately, some countries’ recycling figures are still rubbish. Cyprus has yet to beat 35%, Romania and Turkey are below 30% and Malta is reportedly under 10%.

Glass half full or glass half empty?

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Thu, 25 Apr 2013 10:00:00 GMThttp://www.foodbev.com/opinion/95-glass-recycling-possible
PepsiCo's Jeff Dahncke shares his thoughts on NPDhttp://www.foodbev.com/opinion/pepsicos-jeff-dahncke-shares-his-thought

PepsiCo CEO Indra Nooyi recently said the company is investing in research and development to 'reinvent the soft drink market in North America'. She mentioned natural sweeteners and flavourings as potential drivers of growth.

Having just spoken on New product innovation around the globe last week at the InnoBev Congress in Poland, I fired off a few questions to the PepsiCo press office.

Jeff Dahncke, senior director media bureau for PepsiCo and a company spokesperson, responded with refreshing detail:

How is PepsiCo planning to reinvent the soft drinks market?

Jeff Dahncke: We are keenly focused on innovation across our food and beverage portfolio. Consumers are clearly changing their habits, preferences and consumption patterns, and we have invested in R&D to help us develop more breakthrough innovation that allows us to capture new growth opportunities.

In fact, we opened three new R&D centres in 2012 alone (an Asia R&D centre in Shanghai, a fruit and vegetable centre in Hamburg and a baking centre in Mexico).

Looking specifically at beverages, one area we’re focused on is dialling up our support on zero-calorie products and offering reduced calorie carbonated soft drinks. We see continued progress here, as 49% of our US beverage volume comprised low- or zero-calorie beverages, sports drinks and juices.

Which recent launches that reflect this new image have been most successful?

Jeff Dahncke: Pepsi Next is a platform for cola innovation that has shown good results. In the US, Pepsi Next delivers real cola taste with 60% less sugar than Pepsi-Cola, and the brand achieved more than $100m in retail sales in less than 12 months on the market.

Pepsi Next also just launched a new campaign with actor William Levy.

How are consumers taking to drinks with natural sweeteners?

Jeff Dahncke: We have increased our investment behind natural sweeteners. Trop50 reduced-calorie orange juice, which is naturally sweetened with stevia, is a great example. The brand continues to have terrific success in the US, and also expanded earlier this year into the UK.

In which channels are drinks with natural flavours being sold?

Jeff Dahncke: We see demand from our retail customers across all channels.

Areas I noted in my recent presentation at InnoBev on product innovations around the world include:

  • Drinks for the Bro'/ Breakfast and occasion drinks/oat and grain drinks/ Cherry and berry drinks/bubble tea/ protein beverages, to name just six out of 20 categories.

Which categories do you see as having traction?

Jeff Dahncke: We are building from our positions of strength in four key platforms: Grains (Quaker), Fruits & Vegetables (Tropicana), Sports Nutrition (Gatorade), and Super-Premium Juices and Protein Smoothies (Naked Juice).

We are also working to unlock growth opportunities in new product categories, such as dairy with our business in Russia, our joint venture with Almarai in parts of the Middle East, and our Muller Quaker Dairy joint venture in the US; hummus and other fresh dips with Sabra and Obela; and baked grains with Stacy’s.

My thanks to Jeff Dahncke for his quick response to my questions. So, there’s plenty happening out there in terms of NPD in beverages, dairy and snacks.

There’s a full PepsiCo AMEA interview coming up soon in Beverage Innovation magazine.

By the way, we’ve been excited this week by some thought-provoking entries to the Dairy Innovation Awards. There’s still a few days to get yours in – closing date 30 April. Enter here!

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Wed, 24 Apr 2013 09:42:04 GMThttp://www.foodbev.com/opinion/pepsicos-jeff-dahncke-shares-his-thought
Australian dairy giant stirshttp://www.foodbev.com/opinion/australian-dairy-giant-stirs

I seem to recall, not all that long ago, when I was scouring the dairy websites of the world looking for news and product stories for an article I was writing, I always had a sense of frustration when I clicked on one Australian website in particular, that of Murray Goulburn.

This dairy cooperative, 100% owned by Aussie dairy farmers, was established in 1950. According to its website, it has over 2,000 employees, contributes over six billion Australian dollars to the national economy, processes 2.8 billion litres of milk annually – around one-third of Australia’s milk volume – into quality products for the overseas and export markets. And it has a number of important subsidiaries and joint ventures in its homeland and beyond.

But, as I recall, visits to the website left me with the impression that there was not much going on with the products in its domestic Devondale brand, and company news was low-key to say the least. It was something of a sleeping giant; they were keeping any activity under wraps.

Of course, that might be my memory playing tricks. I may be completely wrong. But whatever, the situation has certainly changed in recent months.

The co-op has just signed a 10-year deal with the supermarket group Coles – the group that has often been the target of fierce criticism from the dairy industry in Australia, accused of trying to destroy the industry with its $1/litre milk.

Not only that, Murray Goulburn believes the deal will not affect the business it does with rival supermarket group Woolworths. In fact, in an article in Dairy News Australia, the co-op managing director Gary Helou is reported to be planning to offer Woolworths something similar to the 10-year Coles deal.

The co-op recently announced a $19.1m investment in its Leongatha plant, lifting the site’s UHT manufacturing output by approximately 70 million litres of additional capacity each year. The upgrade is part of Murray Goulburn Co-operative’s planned $200m investment in leading-edge dairy food manufacturing facilities for UHT milk, butter/spreads and cheese announced by Helou last year.

It will help meet increased demand for UHT milk from Australia and Asia.

No current takeover intention

Murray Goulburn has also just acquired 1.2 million additional shares in Warrnambool Cheese and Butter Factory Company, lifting its shareholding to 14.5%. Industry commentators have suggested the move presages a takeover bid, something that Helou denies: 'This is a strategic investment and there is no current intention to make a takeover offer, nor do we currently intend to seek Board representation.'

Of course, that comment might be similar to the Premier League football club chairman who says the manager’s job is safe, and then sacks him three days later.

It confirmed its commitment to the Chinese market when it decided to increase its share in MG Qingdao, its China Infant Formula joint venture.

And last September, Devondale unveiled a contemporary new look designed to champion the 2,500 farming families that own the cooperative and the ingenuity at the heart of Australia’s largest dairy company.

The rebrand gets under way with the rollout of a contemporary new logo across the Devondale range, in addition to a raft of new products that celebrate the wonderful world of dairy foods.

The editorial column in the latest issue of Dairy New Australia says that MD Gary Helou has often said that there are too many processors servicing the Australian dairy industry. The column says it’s a safe bet that the 10-year deal with Coles will lead to further rationalisation.

With Fonterra’s performance in Australia reported to be under some pressure in recent weeks, the future is going to be interesting. And there will be no time for dairy giants to be sleeping.

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Tue, 23 Apr 2013 21:47:36 GMThttp://www.foodbev.com/opinion/australian-dairy-giant-stirs
How much water does it really take to make a cup of coffee?http://www.foodbev.com/opinion/how-much-water-does-it-really-take-to-ma

It’s been a while since I wrote a blog about water footprints – the total amount of water needed for a product, including raw materials.

The comparisons are always staggering, even these in gallons from Loch Ness Water Gardens and Creative Commons via 2degrees. For reference, a full bathtub is deemed to be 50 gallons.

  • A cup of tea needs 8 gallons
  • A slice of wheat bread needs 10.6 gallons
  • An apple needs 18.5 gallons
  • A glass of beer needs 19.8 gallons
  • A 10-minute low-flow shower needs 25 gallons
  • A glass of wine needs 31.7 gallons
  • A washing machine load needs 40 gallons
  • A glass of orange juice needs 45 gallons
  • An egg needs 53 gallons
  • A glass of milk needs 62.5 gallons
  • A Sunday newspaper needs 80 gallons
  • 1lb of chicken needs 519 gallons
  • A cotton shirt needs 700 gallons
  • 1lb of beef needs 1,850 gallons
  • 1lb of coffee needs 2,500 gallons.

Apparently, if you replace a cup of coffee a day with tea, you could save 10,950 gallons a year; orange juice with water, 16,717 gallons; and milk with beer 15,582 gallons, though I doubt the realism or wisdom of that last example.

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Tue, 23 Apr 2013 09:11:48 GMThttp://www.foodbev.com/opinion/how-much-water-does-it-really-take-to-ma
How the beverage industry is helping to combat obesityhttp://www.foodbev.com/opinion/how-the-beverage-industry-is-helping-to

Congress speakers can be somewhat dry and vague, giving very little away. However, I was impressed by the amount of data given by keynote speaker and president of Unesda, Dominique Reiniche (also president of Coca-Cola Europe) on day two of the Global Beverages Congress in Warsaw.

Dominique was keen to show how the beverage sector is resilient and strong.

"The beverages sector has grown 1.2% over the past 10 years and through the economic recession," she said. She also underlined the contribution made to employment, with apparently 700,000 jobs created in Europe by The Coca-Cola Company, and revenue of €32bn.

“We need to tell this story more and spread these strong numbers about helping the EU economy and unemployment," she said. "Also, you are never so innovative as when in times of crisis, simply because you have to be."

Following on from the Sustainability Awards the night before, she added: “We know young people are very interested in recycling, and if each country got together and focused on one thing, it would be a stronger message.”

Dominique also commented on how the beverage industry needs to speak up on all that it's doing to combat obesity: "Every calorie counts and there is no miracle, but the big advantage we have is that thanks to ingredients such as the plant-based sweetener stevia, we can offer drinks with zero calories, and no other food group can do that.

"We have seen close to 10% growth on Coke Zero and by supplying the same great taste with fewer calories, we know that consumers are going for this.

“We are working in one of the most dynamic sectors in Europe. We cannot please everyone all of the time, but people respect courage and boldness."

She ended by showing new the Coca-Cola advert, which reveals that a can of regular coke has 139 calories, and for the body to use this up takes 10 minutes of dancing or 25 minutes of walking the dog. Courageous, bold and an impressive move in anti-obesity education.

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Thu, 18 Apr 2013 16:16:00 GMThttp://www.foodbev.com/opinion/how-the-beverage-industry-is-helping-to
When will the fitness industry show some consistency?http://www.foodbev.com/opinion/when-will-the-fitness-industry-show-some

Do you ever read something that’s obvious when you see it, but you’ve never seen it put so clearly before?

The March 2013 editorial of Health Club Management effectively says that people will never take enough exercise until the fitness industry shows some consistency.

It gives these strikingly different recent media headlines:

  • ‘Four workouts a week may be better than six’ – New York Times.
  • '10-minute workout’ – Huffington Post.
  • 'Get in shape with just two minutes of exercise a day' – Express.
  • 'Long periods of gentle exercise are more beneficial than a high-intensity workout' – Daily Mail.

As the editor says, “The fitness sector has, as yet, failed to cement a clear idea in people’s minds of how much and how often they should be exercising, and what sort of activity they should do.”

She does have a point.

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Thu, 18 Apr 2013 10:24:54 GMThttp://www.foodbev.com/opinion/when-will-the-fitness-industry-show-some
Banking is not like it used to behttp://www.foodbev.com/opinion/banking-is-not-like-it-used-to-be

I was sad to read, in the Bucks Herald, of the recent death of dairyman Ron Miller.

Ron set up Ron Miller Dairies in Aylesbury in April 1961 and ran it until 1999, according to the report.

I remembered going to visit him to write an article for Milk Industry magazine about the dairy, when it celebrated its Silver Jubilee. I seemed to recall that he had an interesting banking story to tell about the time he set up his dairy business. So, I had a rummage around the files of articles I wrote for Milk Industry and sure enough, there it was.

These days, we hear a lot about banks and bank managers and not much of it is particularly positive. Apart from all the fallout about ‘bankers’ bonuses’ and criticism surrounding reckless business decisions and corrupt selling practices, businesses complain that, despite supposed pressure from government to alter their ways, banks are not great at giving credit, offering loans or extending overdrafts, making it difficult for many smaller businesses to start up, to operate and to grow.

Ron Miller had a different experience.

He told me that when he set up his business – buying a depot that Express Dairies wanted to close – he had not had a bank account before and he had certainly never visited the bank before. But he was offered a sizeable overdraft facility 15 minutes after meeting the manager for the first time.

It was only when the forms had been signed that the manager asked him, “By the way, what’s the money for?”

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Thu, 18 Apr 2013 09:45:57 GMThttp://www.foodbev.com/opinion/banking-is-not-like-it-used-to-be
Is Suntory looking to buy Ribena and Lucozade?http://www.foodbev.com/opinion/is-suntory-looking-to-buy-ribena-and-luc

Early in February, we reported that pharmaceutical group GlaxoSmithKline was putting two of its biggest brands, Lucozade and Ribena, up for sale.

See original story here.

Now it seems that Japan’s Suntory Holdings will be the likely bidder. According to Sky News, Suntory has approached Morgan Stanley and Nomura about arranging the financing so that it can make an offer.

There are some obvious synergies for Suntory, which has declared intentions to increase its presence in western markets. In 2009 it bought the Orangina Schweppes Group for €2.6bn, and later that year it bought Frucor for €600m.

Through the previous deals with Orangina Schweppes and Frucor, Suntory Food & Beverage already fields brands including Gatorade, Schweppes, Orangina, Pampryl, Snapple, Trina, Sunny Delight and the energy drink V. Lucozade and Ribena would make a logical fit.

Source: Telegraph/Sky News

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Wed, 17 Apr 2013 14:02:10 GMThttp://www.foodbev.com/opinion/is-suntory-looking-to-buy-ribena-and-luc
The InnoBev Global Beverages Congress 2013, a reviewhttp://www.foodbev.com/opinion/the-innobev-global-beverages-congress-20

Industry experts and new industry members looking for a rapid introduction to the world of soft drinks descended on the Sheraton Hotel in Warsaw for the 9th Global Beverages Congress on 16 and 17 April 2013.

Following a plant tour to Coca-Cola HBC (Hellenic Bottling Company) at Radzymin with six filling lines (two aseptic) and a palletisation centre where Coca-Cola, Coca-Cola Light, Coca-Cola Zero, Cherry Coke, Fanta, Sprite, Kinley Tonic, Lift, Nestea, Cappy Juices , nectars and drinks, Powerade isotonic drink and Burn energy drink are produced, the event began with fact-packed market insight briefings.

First, Francoise Sonneville, senior beverage analyst for Rabobank International, spoke on Global Beverage Trends before Dr Nicola Turnill, market intelligence manager with Zenith International, outlined global consumer drivers.

These include health & well-being, age concerns and ageing populations, the time/energy conundrum, convenience and the search for 'natural'.

This was followed by my own presentation on latest product innovations around the world, from juice-bar-style beverages and super fruit smoothies, to pulpy drinks and bubble teas.

Low-calorie drinks sweetened with stevia are a growth sector, as are drinks specifically targeting men, women and children, with protein high on the agenda.

In ingredients, oats, grains, ginger, cherry, aloe vera, coffee, tea and coconut are all enjoying popularity. In packaging, retro-style, thermochromic inks, easy pour and dispensing closures and mini vitamin water enhancers are changing the way we drink.

Finally, led by salted caramel nuts and chocolate, you can now find salty beverages making inroads in Japan (often first to market) and a whole range of flavours, from hibiscus and clove to cardamon and nutmeg, being blended with still and sparkling juice drinks to give mainstream flavours a spicy kick.

The afternoon finished with Eric Melloul for Verlinvest Belgium talking on Identifying the next big thing.

Adomas Pranevicius, CEO of My Drink Beverages, spoke on Creating successful new beverage concepts, and Dominik Dolinski, CEO of Oshee Poland, spoke about The power of innovation for healthy solutions.

This was followed by the 2013 InnoBev Sustainability Awards in the Grand Ballroom, where Richard Hall, chairman of Zenith International, presented awards to those delivering the best of environmental sustainability in beverages.

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Tue, 16 Apr 2013 09:25:28 GMThttp://www.foodbev.com/opinion/the-innobev-global-beverages-congress-20