Danone has reported a “solid” first half of the year, recording €14.17 billion in net sales, up 8.4% on a like-for-like (LFL) basis. Sales for the second quarter stood at €7.2 billion, up 6.4% on a LFL basis, with price up 8.7% and volume/mix down 2.3%. In Europe, Q2 saw a 6.5% sales increase driven by France, Poland and Spain. North America saw a 5% increase, led by the company’s Yogurt, Coffee Creations and Waters divisions, with its Oikos, International Delight, Stok and Evian brands growing at a double-digit rate. China, North Asia and Oceania saw a LFL increase of 9.6%, with Aptamil continuing to deliver solid growth in infant nutrition in China. In Waters, Mizone registered mid-teens growth, driven by volumes, with market share gains. In the company’s Essential Diary and Plant-Based Products (EDP) division, Japan delivered another quarter of double-digit growth. Meanwhile, Specialised Nutrition and EDP led a 10.8% sales increase in Latin America. Danone’s recurring operating income reached €1.7 billion in the first half of 2023. Recurring operating margin stood at 12.2%, up 14 basis points compared to last year. Reported earnings per share (EPS) increased by 48.3% to €1.70, while recurring EPS was up 7.6% to €1.76. The French dairy giant announced that it would deconsolidate its EDP Russia operations this month, triggering a €200 million cash impairment. This followed EDP Russia’s operations being placed under temporary external administration of the Russian Federal Agency for State Property Management on 16 July. Danone stated that while it no longer retains control over EDP Russia’s managements, it remains its legal owner. The multinational will remove EDP Russia from its LFL perimeter as of July 2023 and will exclude its contribution from its H2 2023 recurring performance reports. Antoine de Saint-Affrique, CEO of Danone, said that the company had made consistent progress on its strategic agenda and delivered solid growth despite a “volatile and challenging” environment. He commented: “As we navigate an unprecedented situation in Russia, my very first thoughts go to all our colleagues there”. “We remain, more than ever, focused on building further resilience into Danone, by further stepping up our execution, but also by leveraging increasingly more our Science, Operations and Investments”. “Importantly, the last 18 months’ efforts on restoring the fundamentals are starting to pay: our gross margin has expanded in the first half of the year, which allows us to significantly invest behind our brands – 99bps in the first half– while improving margins moderately and delivering healthy free cash flows. In short, we are progressing towards the business model we strive for.” De-Saint Affrique emphasised the company’s confidence in the future and expects that Danone will deliver LFL sales growth in the upper end of its 4-6% increase guidance.

Nestlé Cereals has expanded its Nesquik brand portfolio with the launch of non-HFSS Nesquik Choco Waves. The latest offering – which provides an alternative to the brand’s original chocolate balls – comes in a new ‘wave’ shape to “turn the milk chocolatey” and contains no artificial colours or flavours. The new high-fibre cereal is made with whole grain as the number one ingredient (35%) and is fortified with seven vitamins, as well as calcium and iron. Sarah Fordy, head of marketing at Cereal Partners UK – the makers of Nestlé Cereals in the UK – said: “We’re committed to making breakfast better, and the launch of Nesquik Choco Waves will help to provide families with a delicious and nutritious start to the day. This new addition to the well-loved family brand is non-HFSS, has whole grain as the number one ingredient and is a tasty option that will be a family favourite in no time!” Nesquik Choco Waves is currently available in Waitrose and Ocado stores and will be rolled out across all major UK supermarkets in the coming months. This week, Nestlé also announced it was relaunching its Shreddies Raspberry and White Chocolate flavour cereal for a limited time. The limited-edition cereal was previously launched in February 2021 and has since been reformulated – adding to the current Nestlé Cereals portfolio of products that are non-HFSS – and also uses whole grain as the number one ingredient. Nestlé Cereals says that the flavour was reintroduced after research found that “taste is the most important need for consumers when considering a breakfast option”. Like the Choco Waves, the reformulated Shreddies are high in fibre, contain iron and B vitamins and have no artificial colours or flavours. Sarah Fordy added: "We’re committed to making breakfast better, and the re-launch of our popular Shreddies White Chocolate and Raspberry cereal will not only bring a fan favourite flavour back to consumers’ tables but will provide families with a delicious start to the day and a great part of a balanced breakfast.” Shreddies White Chocolate and Raspberry cereal will be available in select retailers nationwide from July.

American rapper Snoop Dogg, in collaboration with consumer packaged goods company Happi Co, has launched a new line of ice cream pints. Dr. Bombay ice cream is available in seven flavours: Bonus Track Brownie, Cocoa Cream Cookie Dream, Iced Out Orange Cream, Rollin' In the Dough, S'more Vibes, Syrupy Waffle Sundaze and Tropical Sherbet Swizzle. The new ice cream brand is said to be the first product line launching under the parent company Bosslady Foods. Happi Co's CEO, Sam Rockwell, said: "As a company, we're always looking to develop products and partner with personalities and brands that embody authenticity. When Snoop approached us with the idea of starting a new company with a focus on frozen treats, it became obvious that we share core values, which is a key ingredient for a strong partnership." He added: "As a fast and nimble CPG company, we have been working side by side with Snoop to create Dr. Bombay Ice Cream as true partners, using our experience in the frozen space to execute his vision. Snoop & Happi Co share core values and brand vision, and the products we're creating fit perfectly within our expertise – it's a recipe for success." Dr. Bombay ice cream is available at Walmart stores nationwide.

Lactalis Australia has been fined AUD 950,000 (approx. $641,993) in penalties for breaching the dairy code of conduct by “failing to meet some of its obligations” in relation to the 2020/21 milk season. Following proceedings brought by the Australian Competition and Consumer Commission (ACCC), the court found in September last year that Lactalis had breached the code by “publishing and entering into agreements that allowed Lactalis to terminate an agreement in circumstances that didn’t involve a material breach”. Under the terms, Lactalis was permitted to unilaterally terminate the agreement when it viewed the farmer to have engaged in “public denigration” of processors, key customers or other stakeholders. The ACCC commenced proceedings against Lactalis for alleged breaches of the code for the first time in 2021. On Tuesday, 25 July, the court found clauses like these to have breached the code’s objective, and said it was possible it had “a chilling effect on the farmers who were subject to it”. “We took action because we considered Lactalis’ conduct would reduce transparency in the industry and served to perpetuate systemic bargaining power imbalances between processors and farmers,” ACCC deputy chair Mick Keogh said. The court also found Lactalis to have breached the code by not publishing its milk supply agreements on its website. Lactalis said it acknowledges the penalty imposed by the Federal Court in relation to the action brought by the ACCC and that no allegations were made in relation to subsequent years. In a statement, it said: “Lactalis maintains the breaches were not a deliberate attempt to gain any kind of advantage in our contractual milk supply arrangements with Australian dairy farmers...Lactalis fully supports the Dairy Code of Conduct as an important instrument to ensure fair and equitable commercial dealings between processors and Australia’s dairy farmers.” Keogh added: “The code was introduced to help dairy farmers make informed choices about where they sell their milk by ensuring there is transparency in pricing agreements and by allowing them to compare agreements from different processors in a timely fashion. “These were the first contested proceedings under the dairy code and the outcome is an ongoing reminder that processors who fail to comply with the code may face significant penalties”.

Melodea, a sustainable barrier coatings producer for packaging, has introduced a new high-performance barrier product engineered to enable recyclability of plastic food packaging. MelOx NGen is a water-based, plant-sourced coating designed to line the inside surface of various plastic food packaging forms including films, pouches, bags, lidding and blister packs. It is currently being rolled out to the global plastic industry and has been approved by the FDA and BfR as compatible for food contact. The barrier coating could help extend the shelf-life of foods such as snacks, confectionery and nutrition bars. The innovation is a new iteration of Melodea’s bio-based, renewable material MelOx for paper packaging, but designed specifically for use on plastic. It is used to line packaging as a transparent layer, aiming to offer a sustainable and cost-effective alternative to petroleum-based Ethyl Vinyl Alcohol copolymers (EVOH) which are widely used in packaging for food preservation properties as well as met-PET plastic materials commonly used to produce lids. Melodea believes that MelOx NGen could help expand the scope of plastic food packaging eligible for recycling and empower food packagers to align themselves with government regulations aimed at reducing single-use plastics. Cee Azerraf, VP of sales and marketing at Melodea, said: “The majority of plastic packaging available today cannot be recycled due to its multi-structure composition. EVOH, which is typically infused into the thin plastic films of the food packaging to serve as an oxygen barrier, is non-recyclable preventing the entire package from being recyclable.” “MelOx NGen presents an eco-friendly and cost-effective solution by being applicable to various forms of plastics, including monostructure plastics that possess exceptional performance properties and are recyclable. Our solution will also relieve the current bottleneck in the supply of EVOH.”

Spanish ice cream company La Menorquina has partnered with Chupa Chups to bring a crunchy, pink ice cream cone. Inspired by the Chupa Chups strawberry-cream lollipop candy, it features a crunchy pink cone filled with Chupa Chups strawberry-cream flavoured ice cream, filled with a strawberry sauce, encased in a white chocolate coating and topped with caramel chips and rounded sprinkles. Marta Ballesteros, Perfetti Van Melle’s licensing area manager, commented: “Once again this launch exemplifies our joint commitment to innovation, seamlessly blending authentic brands with high-profile collaborations". Laura Pérez, La Menorquina's chief marketing officer, said: "The ability to develop new products with Chupa Chups and to keep surprising consumers through continuous innovation are key factors for the success of the products and the international growth of the brands". The new Chupa Chups ice cream is already available for purchase throughout the EU, as well as in the UK, Mexico, Philippines and Singapore.

Several multinational businesses within the food and beverage sector have this week announced new partnerships aiming to support regenerative agriculture practices in the US and Canada. PepsiCo has announced a seven-year collaboration with Walmart to pursue $120 million worth of investments focused on supporting US and Canadian farmers in improving soil health and water quality. By establishing and scaling financial, agronomic and social programmes, it aims to advance regenerative agriculture practices on more than two million acres of farmland and deliver approximately four million metric tons of greenhouse gas emission reductions and removals by 2030. Both companies have a supply chain stretching across North America that involves a large volume of critical crops including potatoes, oats, corn, wheat soybean and rice. In recognition that sustainability will look different depending on commodity, region and farm, the collaboration aims to offer a flexible approach that recognises the diversity of agriculture and that one size does not fit all. Jim Andrew, chief sustainability officer at PepsiCo, commented: “Farmers know their business better than anyone else, and what we hear from them is that for regenerative agriculture to make business sense, three things need to happen. They need economic support, social and cultural support, and agronomic support. This strategic collaboration with Walmart will advance our shared goal to have farmers' backs as they transform farming in a way that benefits the planet and people.” Nestlé has also announced a new partnership focusing on regenerative agriculture this week, collaborating with Grassroots Carbon, a company that specialises in carbon removals in US grasslands. The collaboration aims to support regenerative land management practices and remove carbon in Nestlé’s US supply shed, with a primary focus on enhancing soil health and reducing CO2 emissions. Grassroots Carbon works with ranchers to measure and certify carbon storage, and monitor and measure carbon levels in their soil. The partnership will measure and certify additional carbon sequestered over 15 years. Nestlé’s investment helps defray the expenses ranchers incur when implementing regenerative land practices. Such practices include rotational grazing, cover cropping and holistic range management. They have the potential to restore soil and system health, enhance biodiversity and sequester CO2 from the atmosphere. By integrating them into the beef supply chain, Grassroots Carbon and Nestlé aim to positively impact the environment while supporting the livelihoods of local land stewards. Henk Mooiweer, co-founder of Grassroots Carbon, said: “Building a sustainable future takes everyone. Partnerships with leaders in the sustainability movement like Nestlé are crucial to our shared mission of combating climate change. Through the investment into carbon removals, we can help ranchers across the US restore grasslands.”

Nestlé Lindahls, the high-protein dairy brand from Lactalis Nestlé, has continued the extension of its Pro+ protein range with the launch of its new Blueberry Muffin flavour. The new pots contain 18g of protein per serving and a “unique” half-and-half mix of whey and casein. They are low-sugar and fat-free, created with “avid gym-goers" in mind, as well as those looking for an indulgent taste without compromising on a balanced diet. The new flavour brings together the nutritional benefits of protein shakes in the form of 150g pots, which the brand says are “ideal for consumers to slot into their gym bag and tasty enough to enjoy as a high-protein snack throughout the day”. Paul Wiseman, marketing manager at Lactalis Nestlé Chilled Dairy, said: “We are excited to share that we are extending our Nestlé Lindahls Pro+ range in the UK to include another delicious flavour. We are always committed to providing great tasting, high protein snacks that mean consumers can continue to enjoy variety in a balanced way.” Lactalis Nestlé is a joint venture created between the Lactalis Groupe and Nestlé, covering nine European countries. Lactalis Nestlé Chilled Dairy was established in the UK in 2006 and is the manufacturer of Nestlé Lindahls. The new flavour has launched exclusively into Asda stores for an RRP of £1.10 per pot, with further rollout expected later in the year.

Glacier Fresh, a manufacturer of water filtration solutions, has introduced two soda makers to its portfolio: Sparkin Cold and Sodaology. The Sparkin Cold soda maker is said to be the first soda maker capable of generating cold soda. The machine delivers a “refreshing sensation” of chilled sparkling water with a simple touch of a button, achieving the perfect balance of carbonation and coolness. It also serves as a water cooler dispenser, providing options for sparkling and chilled water to cater to individual preferences. In addition, the Sparkin Cold machine also features a comprehensive safety protection system that includes a carbonation degree alarm and an automatic pressure relief design. Meanwhile, the Sodaology soda maker introduces a carbonation method that infuses CO₂ from the bottom, leading to increased dissolution and larger bubbles. According to Glacier, the unit elevates the drinking experience by enriching the “flavour and effervescence” of carbonated beverages. Furthermore, Sodaology’s wide-mouth bottles enable effortless carbonation of various drinks, including those containing solid ingredients like fruit slices. Designed with a detachable structure, Sodaology ensures effortless cleaning and maintenance.

FoodBev's marketing manager Dan Bunt caught up with Yili's managing director Gerrit Smit at Zenith's 16th Global Dairy Congress, to discuss the latest trends in the dairy industry and Yili's reputation for driving sustainability.

US agtech company AppHarvest has filed for Chapter 11 bankruptcy protection in pursuit of a "financial and operational transition" in order to reduce its outstanding liabilities. The company made various voluntary petitions for protection under Chapter 11 in the US Bankruptcy Court for the Southern District of Texas. As part of its Chapter 11 process, the AppHarvest secured a commitment from its largest secured creditor, Equilibrium, to provide approximately $30 million in debtor-in-possession (DIP) financing. The financial support is crucial in ensuring the necessary liquidity to support operations at AppHarvest Morehead, AppHarvest Richmond and AppHarvest Somerset farms in Kentucky, US, during this period. The DIP financing is subject to court approval. AppHarvest said that business operations will continue at the farms, including shipping product to top national grocery store chains, restaurants and foodservice outlets. In addition, AppHarvest is seeking to transition back its farm in Berea to its distribution partner, Mastronardi Produce, or one of its affiliates, for approximately $3.75 million. Mastronardi already owns the Berea farm, and, in a letter released earlier this month, the business told AppHarvest that the lease would be terminated. AppHarvest CEO Tony Martin said: “The AppHarvest board of directors and executive leadership evaluated several strategic alternatives to maximise value for all stakeholders prior to the Chapter 11 filing. The Chapter 11 filing provides protection while we work to transition operation of our strategic plan, Project New Leaf, which has shown strong progress toward operational efficiencies resulting in higher sales, cost savings and product quality.”

Royal Unibrew has signed an agreement to acquire Birra Castello's production facility in San Giorgio di Nogaro, Italy. The acquisition is expected to bolster Royal Unibrew's expanding operations in Italy and international markets, while simultaneously reducing its periodic capacity constraints. The deal will "significantly enhance" Royal Unibrew's manufacturing and packaging capabilities for cans and glass bottles in Italy, as the production facility brings an estimated potential beer production capacity of up to 1 million hectolitres per year. With two filling lines, the facility will enable Royal Unibrew to expand its footprint in the country, effectively meeting the growing demand for its products both in the domestic market and its international business segment. Royal Unibrew's investment in an additional production facility in Italy complements its previous acquisition of Terme di Crodo in 2018. The Terme di Crodo facility, which was acquired from Campari, is responsible for producing Royal Unibrew's local soft drinks, such as Lemonsoda and Lemonsoda Energy Activator. According to the company, the integration of the new facility will be overseen by Royal Unibrew's Italian organisation, and "is expected to be a smooth and relatively uncomplicated process". Jan Ankersen, Royal Unibrew's SVP of south of Europe and GM Italy, said: "We are pleased to announce our acquisition of the production facility from Birra Castello. This milestone is of great significance for the continued growth of our Italian business, improving our position to fulfill the rising demand for our beverages. This acquisition also relieves capacity constraints elsewhere in the group." The expansion enables Royal Unibrew to meet the increasing demand for its beverages while overcoming production limitations within the group. The improved production setup is said to bring about more flexibility, quicker response times and better supply chain management. Through the expansion of production capacity in Italy, Royal Unibrew aims to create additional job opportunities. In addition, Royal Unibrew's Italian business will have the means to explore new partnerships and collaborations. Later this year, Royal Unibrew will take ownership of the assets after completing certain transaction-related processes. Terms of the transaction were not disclosed.