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- Molson Coors invests CAD 10m in Canadian brewery
Molson Coors has announced a CAD 10 million (approx. $7.33 million) investment in its St. John’s brewery in Newfoundland, Canada, aiming to reduce water and electrical consumption and improve production efficiency. Since 2007, the St. John's brewery has benefited from over CAD 33 million in investments, including the installation of a new wet mill, bottle and can fillers and an ultramodern can packer that has eliminated the need for plastic packaging, among other upgrades to both the facility and its equipment. The brewery's most recent investment, a CAD 10 million upgrade for a bottle washer, has resulted in reduced water and electrical consumption. Over the past eight years, process changes such as waste segregation for enhanced recycling and a rejected bottle recovery line, have resulted in 69% less waste from the St John’s brewery being sent to landfill. Frederic Landtmeters, president of Molson Coors Canada, said: "Molson Coors has made strategic decisions over the past several years that reflect our unwavering commitment to maintaining a strong and vibrant presence in our brewery communities... We've invested not just in our business, but in the community that has supported us for decades. We have the utmost confidence in the future of this region, and we're excited to continue our journey together, raising a glass to a prosperous future." Sean Kennedy, general manager of operations for Atlantic Canada, added: "Our investments and process improvements have led to a remarkable transformation in our capacity, efficiency, and environmental impact. Our commitment to sustainability and innovation has not only reduced our carbon footprint but also increased our brewing and packaging capabilities."
- CMBC announces investment in brewery in Northampton, UK
Carlsberg Marston’s Brewing Company has announced plans to invest more than £10 million in its Carlsberg brewery in Northampton, UK. The funding will be used to upgrade equipment at the facility, further increasing capacity for producing its ‘Snap Pack’ packaging and reducing its water usage. The investments will see three upgrades, all set to go live in Q1 2024. A second-generation machine for packaging cans in Snap Pack is being installed, alongside a new laser can encoder and an improved can filler and seamer. First launched in 2018, Snap Pack is a beer multipack that holds Carlsberg cans together with glue instead of being wrapped in shrink wrapping or plastic rings. Developed by Carlsberg Group and global packaging solution provider KHS, Snap Pack uses glue dot technology and has been implemented into various beverages from the CMBC portfolio, including Carlsberg Danish Pilsner, San Miguel, Birrificio Angelo Poretti and Brooklyn Pilsner. By the end of 2022, Snap Pack was used for 65% of the four- and six-can multipacks produced at the brewery. The new second-generation machine will double the number of Snap Pack multipacks produced, with CMBC aiming to fully transition by the end of 2024. By eliminating plastic rings from packaging, it is estimated that Snap Pack will reduce CMBC’s plastic usage by up to 76%. The other upgrades – the replacement KHS can filler attached to a new seamer from Ferrum, and a Domino Laser Can Coder – will bring a number of improvements in efficiency and safety. Combined, these new machines are set to reduce around 10% of water usage, which is the equivalent of 18 million litres annually. Paul Davies, CEO of CMBC, said: “We take our responsibility as a brewer very seriously and ensuring we reduce our impact on the planet is a hugely important part of this. This major investment of more than £10 million in Northampton demonstrates our clear commitments to eliminating packaging waste, reducing water waste and improving efficiency at our breweries.” Edgar-George Petsche, EVP of market zone Europe/CIS at KHS, added: “Energy-efficient machinery and equipment as well as safe and environmentally friendly packaging solutions are central components of our KHS sustainability strategy. As a reliable partner of CMBC, we are proud to join forces on the path towards responsible climate protection.”
- Fonterra and Nestlé complete sale of DPA Brazil
Fonterra and Nestlé have completed the sale of their joint venture, Dairy Partners Americas (DPA) Brazil, to the French dairy company Lactalis. Fonterra held a 51% ownership in the DPA Brazil JV, while Nestlé held a 49% ownership stake. The sale was first announced in December last year, but it was subject to regulatory authority approvals. The JV was sold for BRL 700 million (approx. $133 million). According to Fonterra, "these proceeds offset debt related to that business, which means there will be little cash impact on Fonterra’s earnings". "There is a negative foreign currency translation reserve balance of approximately $70 million related to Fonterra’s ownership of the DPA Brazil asset, which will be reflected as a non-cash accounting reclassification in Fonterra’s profit and loss statement." Fonterra CEO Miles Hurrell said: “With our decision to focus on our New Zealand milk pool, the sale of DPA Brazil means we can prioritise our resources to the businesses that are core to our strategy”. Final transaction proceeds are still subject to customary post-completion adjustments.
- William Grant & Sons appoints Søren Hagh as CEO
UK-based spirits distiller William Grant & Sons has announced the appointment of Søren Hagh as its chief executive officer from 1 January 2024. Hagh will take on the responsibility for this role from Glenn Gordon, who will remain as non-executive director on the board. He will join William Grant & Sons from Heineken, where he is currently president for the European region, to be succeeded by the newly appointed Glenn Caton as reported by FoodBev last week. Previously at Heineken, before taking on the president of Europe role in March 2020, Hagh held roles as managing director of Italy and executive director, global marketing. Prior to Heineken, he worked with L’Oreal in marketing and in-market distribution roles. A spokesperson for William Grant & Sons welcomed Hagh’s appointment, commenting: “There is no doubt that Søren will provide strong leadership for the company, as he brings a tremendous wealth of relevant experience to the business from his many years working in the drinks sector and with his substantial commercial and marketing experience building global consumer brands in a number of sectors”. William Grant & Sons recently announced its 2022 financial results and has reported that it has maintained record levels of investment in its brands and distilleries, despite difficult market conditions. The company said it expects the business to be ‘well positioned for consistent growth in the long-term’ under Hagh’s leadership. The distiller’s portfolio includes well-known Scotch whisky brands including the single-malt Glenfiddich, as well as other renowned spirits brands such as Hendrick’s Gin and Sailor Jerry.
- Boursin launches truffle-flavoured cheese
Bel UK's Boursin brand has added a new truffle flavour to its cheese portfolio. Boursin Truffle is said to offer "an added touch of luxury", infused with the flavour of truffle. Holly Bennett, senior brand manager at Boursin, said: “We’re delighted to introduce Boursin Truffle to the range. With truffle already established with food enthusiasts and long associated with moments of luxury, it’s the perfect flavour for Boursin, appealing to this audience and cementing our positioning as the number one indulgence cheese brand." "...Now, with in-home cooking on the rise and consumers looking to elevate their everyday meals for a moment of indulgence, the new flavour is perfectly placed to cater to this appetite.” Boursin Truffle will first be available in limited-edition packaging and will then switch to the tradition Boursin packaging in the new year. Boursin Truffle will be available at Tesco stores from this month for £2.95 per 150g.
- Ukrainian anti-corruption agency labels Nestlé a sponsor of war
The Ukrainian National Agency on Corruption Prevention (NACP) has added Nestlé to an “international sponsors of war” register, a list of companies which still operate and potentially make profit in Russia. Nestlé's product portfolio includes more than 2,000 brands worldwide, including KitKat and Nescafé. The NACP has also accused the Russian branch of the company of covering up its taxes and profits for fear of international pressure, and of importing technical equipment into Russia under the guise of milk powder “as evidenced by the court proceedings of Moscow Arbitration Court”. Nestlé responded to being added to the register by referring to an online statement they released earlier this year: “Since the outbreak of the war in Ukraine, we have drastically reduced our portfolio in Russia and implemented the actions we announced in March 2022. We refocused our activities on delivering essential and basic foods to the local people and suspended the vast majority of SKUs from our pre-war portfolio in the country. We have halted non-essential imports and exports into and out of Russia.” The company also claims to have stopped advertising in Russia, suspended capital investment in the country and says that it is fully complying with all applicable international sanctions. Nestlé claims that “for the foreseeable future, these measures will apply as our operations in Russia remain focused on providing essential and basic foods to the local people.” Nestlé is not alone on the register with Mars and PepsiCo having been added in September this year and Bacardi in August 2023.
- Bimbo Bakeries USA debuts Entenmann’s doughnut cakes
Bimbo Bakeries USA, a subsidiary of Grupo Bimbo, has introduced Entenmann’s first-ever baked doughnut cakes. Available in cinnamon & sugar and double chocolate chip flavours, Entenmann’s doughnut cakes contain no high fructose corn syrup or artificial colours. Richard Link, senior director of marketing at Entenmann’s, said: "At Entenmann's, we are constantly exploring new ways our fans can enjoy our beloved baked goods. Our research shows that consumers are looking for indulgent, individually wrapped snacks for on-the-go snacking, so we wanted to deliver in the sweetest way." "Our latest innovation, Entenmann's doughnut cakes are truly the perfect blend of an old-fashioned doughnut with a modern twist, and we can't wait to hear what our fans think." Entenmann's doughnut cakes are packaged in a box containing six individually wrapped doughnut and can be found at select US retailers.
- Pernod Ricard launches new Greasy Fingers wine range
Pernod Ricard UK has launched a brand-new wine range, Greasy Fingers, designed to be paired with ‘deliciously greasy’ food such as gourmet burgers. The wine and spirits giant said its new brand aims to ‘challenge traditional boundaries of wine and food pairings by ripping up the rule book’, delivering two wines that have been crafted to provide an ideal pairing for gourmet fast food offerings. Greasy Fingers is launching with two varieties within its range. Greasy Fingers Luscious Red 2022 is described as a medium-bodied, fruit-forward blend of Shiraz and Grenache with flavours of cherry and strawberry as well as ‘soft, approachable’ tannins. Launching alongside this is the Greasy Fingers Big Buttery Chardonnay 2022, offering refreshing flavours of peach, vanilla and cinnamon spice with a buttery mouthfeel. The brand will be launching in Sainsbury’s, Morrisons and Asda from this month with a £10 RRP. It will also go live on Amazon and Ocado later this year. Pernod Ricard said that its target audience for Greasy Fingers is 25-44 year-olds who are sociable and seek out new experiences and cultures, with a preference for wine and craft beer, drinking mostly at home where they have a high frequency of ordering gourmet fast food and expect the same convenience from their wine choices. Lucy Bearman, wine and champagne portfolio director at Pernod Ricard UK, said: “The wine category is ripe for disruption and Greasy Fingers goes back to the heartland of wine by pairing it with food in a way that breaks the traditional conventions of the category”. She added: “We believe passionately in a wine and food match made in heaven, but it doesn’t need to come with a white tablecloth and a qualification. This simple yet hugely effective pairing is about whipping up some burgers for friends to eat together at the weekend or indulging in a mid-week takeaway and putting your feet up, whilst enjoying a bold and unpretentious glass of wine.”
- JBS outlines BRL 15bn investment plan in Brazil
JBS has announced plans to invest BRL 15 billion (approx. $3 billion) in Brazil by 2026 as it expands its operations within the country. The investment is part of a wider programme by JBS’ parent company, J&F Group, and its investment vehicle, J&F Investimentos. JBS’ global CEO Gilberto Tomazoni said: “The J&F Group announced an investment of BRL 38 billion (approx. $7.7 billion) by 2026. I want to say that we at JBS have a dual listing project. If this project is successful, this investment will not be BRL 38 billion, but BRL 50 billion (approx. $10 billion) in Brazil by 2026. Furthermore, there will be 50,000 additional jobs by 2026.” Of this total of new jobs, there will be 20,000 at JBS. This means that the BRL 38 billion investment, which was initially slated across all of its separate business areas, will now rise to BRL 50 billion if JBS completes a dual listing in the US. The announcement was made at the opening of two new value-added product factories in Rolândia, northern Paraná, Brazil. The plants are set on a 257,000-square-metre plot, employing 4,500 staff, and are designed to enable the JBS Seara brand to advance its expansion strategy in value-added products targeting the breaded chicken and sausage markets in particular. Tomazoni continued: "The delivery of the expansion of this complex is very significant for JBS and Seara's businesses in Brazil and worldwide. Not only because it has become one of our most modern production plants, but because it represents another step in the right long-term investment strategy in our multi-protein platform, which is very focused on high-value-added foods. Whatever the product, we want to offer innovation and quality to win over consumer preference." João Campos, CEO of Seara, added: "We are going to expand our sausage production capacity, highlighting the innovation, quality and flavour which sets our products apart. In the long term, we will increase our portfolio and challenge the market to grow with us in this segment as well, as we are already doing with breaded chicken. All of this is thanks to the advanced technology embedded in this plant." With the latest expansion, three production lines are already in operation, two for breaded products and one for sausages, adding 700 new jobs. The plant has the capacity to expand further with seven more breaded product lines and three sausage lines. JBS says this expansion will be rolled out in line with the growth of the business and market demand, and when it occurs, the unit will reach 6,000 employees. The new plant is Seara's most automated in Brazil and one of the most modern JBS plants in the world, compatible with global health and safety standards. The site has the “second largest sausage cooking and smoking oven in the world” and uses robots for production and packaging conveyors, while being equipped for the use of artificial intelligence and cloud data storage. The site was also developed with sustainability in mind, with protocols including rainwater harvesting, use of electric vehicles for internal traffic, generation of solar energy in the parking area and reuse of cellulose waste from the industrial process for transformation into fuel or composting, among other solutions. You may also like to read: JBS begins work on Brazil’s first cultivated protein research centre JBS’ Rivalea invests over AUD 20m in Australian pork facility Swift Prepared Foods opens $200m Italian meats and charcuterie production facility
- Primo Water to sell significant portion of its international businesses for $575m
Primo Water has entered into a definitive agreement with Culligan International which will acquire a significant portion of Primo's international businesses in a $575 million cash transaction. Primo, a provider of sustainable drinking water solutions in North America and Europe, said it will follow a more simplified operation with a greater focus on its North American water business following the transaction. The transaction excludes the Aimia Foods, United Kingdom, Portugal, and Israel businesses, but each of these will be sold across 2024. Primo will also accelerate the achievement of several previously announced 2024 targets, including improvements in adjusted gross margins, and earnings before tax adjustments. The company also claims that the transaction will allow it the financial flexibility to pursue organic growth and engage in "strategic opportunities complementary and adjacent to its core North American water business". The deal would also allow the company to retain a diversified business mix across Water Dispensers, Water Direct, Water Exchange, Water Refill, and Water Filtration, as well as a balanced mix of residential and commercial customers. Tom Harrington, CEO of Primo Water, said: "We are pleased to have reached an agreement that we believe unlocks significant value for Primo Water shareowners. The transaction simplifies and focuses Primo Water on our core North American water business. Looking ahead, we will be laser-focused on growing the North American business, increasing our profitability and margins, enhancing our balance sheet strength, and returning capital to shareowners." The transaction is expected to close by the end of December 2023, subject to the receipt of regulatory approvals and the satisfaction of other customary closing conditions. The closing transaction is not subject to any financing conditions.
- Saputo to permanently close another US facility
Dairy giant Saputo has announced the permanent closure of its Lancaster manufacturing facility in Wisconsin, US. The closure of the facility is expected to result in costs of roughly CAD 6 million (approx. $4.35 million) after taxes, including a non-cash fixed assets write-down of around CAD 4 million (approx. $2.89 million) after taxes. Around 100 staff will be affected by the closure. According to the company, employees will have the option to relocate to other Saputo facilities. However, if suitable positions are not available, they will receive severance and outplacement support. The decision follows Saputo's announcement last year regarding the closure of its Belmont, Wisconsin, facility. The company plans to shift its production operations from the Lancaster and Belmont facilities to its recently converted goat cheese manufacturing facility in Reedsburg, Wisconsin. Lino Saputo, chair of the board, president and CEO, said: “In line with our global strategic plan, the network optimisation initiatives announced today will increase operational efficiency and capacity utilisation in our US sector, while further improving our cost structure. The start-up of our Reedsburg facility marks another milestone on our journey to strengthen the competitiveness and the long-term performance of our US cheese network.” Both Lancaster and Belmont facilities are slated for closure in the fourth quarter of fiscal year 2024. You may also like to read: Saputo sells two milk processing facilities to Coles in AUD 105m deal Saputo permanently closes three US facilities amid structural changes Saputo to close Australian facility, scales down two others
- Musim Mas reveals new palm oil seed with increased yield
Palm oil corporation Musim Mas has released four new palm oil varieties with potential yields of more than ten tons of total oil per hectare. This yield is said to be “nearly three times higher than the industry average,” which stands at 3.25 tons of oil per hectare. The result of eleven years of non-GMO genetic research, the new seed varieties can potentially yield fruiting palms within 25 months, contrasting to the industry average of 30 months. Musim Mas invests in genetic and agronomic research to improve yields without increasing planted areas. To help smallholder farmers improve and achieve better yields and livelihoods, Musim Mas will also provide these new seed varieties to smallholder farmers it supports through the ‘Kredit Koperasi Primer Anggota’ (KKPA) programme. The new seeds (GS1, GS2, GS3 and GS4) are of the dura x pisifera (DxP) variety and have been approved by the Indonesian government's assessment body for plantation varieties. Musim Mas says that the seeds were developed four years faster than typical breeding programmes. Musim Mas’ director of strategy and planning, TK Lim, said: "At Musim Mas, our strategy is to increase our production through improved yields and not land expansion. This ideology is a key part of how we see our role as a responsible palm oil producer. With the world's population expected to cross 9 billion by 2050, we hope the Musim Mas GS series will play a valuable role towards improved yields in the long term." The GS Series has the potential to yield oil palms with longer stalks, making harvesting easier as well as yielding bigger fruitlets and providing “excellent” palm oil extraction rates of 30%.
