The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry
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- Maple Leaf strives to recover from listeria scare
According to published reports, Maple Leaf invited journalists on Monday to tour the Bartor Road facility, which was the source of the contaminated product, and see renovations there as well as new food safety protocols. The company has also broadcasted TV ads in which President and CEO Michael McCain attempts to reassure consumers: "I promised you that Maple Leaf will always put food safety first, and we have," he said in one TV spot (see below). "The recall is over, and the problems that led to it have been fixed." A Maple Leaf spokeswoman said the ad campaign stems from a recent poll commissioned by the company. It showed that, although confidence in the brand had risen, many consumers still didn't know the recall was over. Source: Meatingplace.com
- Coca-Cola launches Capri-Sun ad campaign
Capri-Sun is now worth £78m in retail sales, having grown +14% in the last year, and is the number one ambient juice and juice drink brand by volume. Kenny Chisholm, trade communications manager at CCE, said: "Capri-Sun has had a fantastic year, and is now growing ahead of the juice and juice drinks sector at a rate of 30%. "We're confident that this is a great time to launch Capri-Sun back on to televisions to help increase brand awareness in January, a key back-to-school time of year, and in turn to further increase sales of the brand for retailers." Claire Phoenix, editor of Beverage Innovation magazine, recently interview Carsten Kaisig, CEO of Capri-Sonne. Click here to listen to the interview.
- Innocent appoints new marketing chief
*Innocent Drinks has appointed Thomas Delabriere, currently Marketing Director of Doritos, Sensations and Sunbites brands at Walkers Snacks, as its new Marketing Chief. * Delabriere, who has been with the PepsiCo-owned company for 13 months, replaces Gareth Helm, who left at the start of the year. The appointment follows news that Innocent MD Jamie Mitchell, who had been Marketing Director prior to Helm, is leaving the company to pursue other opportunities. He is planning to work with private equity investors looking to buy struggling brands. His departure has led to a major restructure of its management team, including the scrapping of the managing director role. Commercial Director Giles Brooks has been promoted to the board, as will Delabriere when he steps into his new role. However, a statement from PepsiCo says that Delabriere remains in discussions with the company, though it says he has "indicated that he is interested in pursuing career options outside of PepsiCo". Delabriere left Danone last year to take up his role with PepsiCo's Walkers business in October. At Danone, he was Marketing Manager for probiotic drink, Actimel. He had spent six years with the company in various roles in the UK and France. He has previously worked on Unilver's Cif and Persil brands in France. * *
- Milk Link first to use A3i Line technology
*The UK's Milk Link has completed a £1.5m investment programme at its Crediton long-life milk processing facility with the installation of an advanced A3i Line Tetra Square high speed filler. * Milk Link is the first business in the UK to have this new generation filling machine and is currently the only business in the world to use this technology in the dairy industry. The new A3i Line fills at a rate of 15,000 litres per hour, more than double the rate of older filling machines, enabling Milk Link to significantly improve efficiencies at Crediton. The new filler will deliver the new square pack format which, since its introduction by Milk Link, has played an important role in reinvigorating the long-life milk category. The square pack has now been extended to cover long-life milks being produced by Milk Link for customers such as Sainsbury’s and Morrisons as well as its growing moo brand. Brian Kerr, Head of Operations at Crediton, said: “The installation of the A3i filler is a further demonstration of our commitment to be at the forefront of cutting-edge dairy technology. It will allow us to be more efficient and deliver the next generation of products and packaging for our customers."
- Serbian juice maker Nectar expands with EBRD
It is a clear, bright October morning and Bosko Bosanac is delivering Nectar fruit juices to a mini-supermarket on the outskirts of Belgrade, the Serbian capital. By the end of the day, he will have driven his distinctive green and red Nectar van to 40 different shops, as he does every day (except on Sundays). Bosko, 30, is just one of Nectar’s growing team of delivery workers who regularly visit more than 10,000 stores throughout Serbia. The company’s products are also delivered to thousands of retailers across the border in Albania, Bosnia and Herzegovina, Croatia, FYR Macedonia and Montenegro. The scale of Nectar’s distribution exercise is testimony to how fast the company has developed in the last 10 years. From a modest start-up in the northern Serbian town of Backa-Palanka, the fruit juice maker has become the domestic industry leader. At the same time, it has established a strong presence in neighbouring countries where, until a few years ago, many shops were reluctant to even stock Serbian-made goods. And now, with the help of the EBRD, Nectar is planning to expand even further. “The Serbian market is small, so we have to expand abroad,” says Nectar’s MD, Bojan Radun. “We already have 50% of the market in juices and nectars in Serbia, and it is very expensive to grow market share more than this, so it's much more profitable to develop market share externally.” In 2007, the EBRD agreed to lend Nectar €10m as part of a €50m investment project aimed at further developing the company’s direct distribution network, strengthening its brand identity in Serbia and abroad and solidifying the business’s financial structure. The loan was disbursed in 2008. “The EBRD loan will strengthen areas where we are leaders: our distribution in Serbia and our marketing and branding in Serbia and in neighbouring countries,” says Radun, whose father Slobodan founded the company in 1998. “We also hope to use the EBRD finance to enter the Romanian market, and our ambition is to pursue an acquisition in Bulgaria.” As well as being good news for consumers, Nectar’s expansion plans will provide a boost to the local economy. Nectar sources 90% of its raw materials from local suppliers and only relies on imports for tropical fruits. With more than 100 collection stations, the juice maker provides Serbian farmers with a stable source of income which is likely to increase as sales at home and abroad rise. Nectar’s direct distribution network in Serbia, meanwhile, ensures that even the smallest village shops are able to stock Nectar’s high-quality juices, squashes, energy drinks and other fruit products. And supplying more of these retailers means the company will need to employ more delivery staff like Bosko, as well as other workers. Buying locally and distributing directly also make good business sense, said Miljan Zdrale, a principal banker in the EBRD’s Agribusiness team who is the operation leader for the Nectar deal. “Nectar’s long-term relations with farming cooperatives in Serbia – and increasingly in Montenegro and FYR Macedonia – enable the company to control costs and prices. This is especially important with the current financial crisis, as consumers are more likely to go for less expensive products,” Zdrale says. “Meanwhile, having its own distribution network in Serbia gives Nectar much more control over the way its products are sold in-store and over how the Nectar brand is promoted.” Nectar’s success also has other, less tangible benefits. “In Bosnia and Herzegovina, you have people of various backgrounds working for Nectar, which 10 years ago was unthinkable,” says Zdrale. “And I’m happy when I go to Skopje in FYR Macedonia and I can order Nectar juice. “The region shares the same language, the same mentality and used to be part of the same country, so it's natural for Nectar to establish a presence in these markets. These business links create far more inter-regional connection and have an influence on the political sphere, as leaders are keen to promote their mutual economic interests.” For a company that began life making apple vinegar on the site of a former swamp, Nectar has come a long way. It produces more than 110 million litres of fruit juice and other goods every year and boasts an annual turnover of €75m. It already ranks as the sector’s leading player in several countries in the Western Balkans – including Serbia – and has ambitions to start operations beyond south-eastern Europe. “Our success comes from the fact that we have a stronger commitment and a better focus than our competitors,” says Bojan Radun. “We try to strike a balance between branding, marketing, costs and vertical integration and our results come from that. “As we look to expand further afield, a loan from the EBRD is very good for the company’s image," he adds. "It's proof of Nectar’s stability in the eyes of the business community and of officials. You have more credibility if you're working with the EBRD.”
- Nestlé Waters inks major long-term investment deal
* Nestlé Waters has acquired São Paulo-based Santa Bárbara Mineral Springs, and reportedly plans to invest $42m (€32m) over the next five years on the business. This will include the value of the purchase, expansion and improvement of the production and packaging lines. * The move confirms that Brazil is one of Nestlé’s priority markets, and the belief from the company that it can reap swift rewards from such an investment. With this new business acquisition, Nestlé Waters will gain significant production capability in São Paulo, Brazil’s most populous state. With nearly 10% market share in the southeast, Nestlé Waters Brazil believes that it can significantly develop market penetration further in this densely populated area, which represents close to 60% of the total domestic market for bottled water. The Santa Bárbara brand has a strong presence in the state of São Paulo and is distributed in more than 180 Brazilian cities in plastic cups, small bottles and 20-litre bottles. Across Brazil, Nestlé Waters markets the brands Nestlé Aquarel, Petrópolis, São Lourenço, Perrier, S Pellegrino and Acqua Panna, with the first three produced locally and the latter three imported.
- DSM plans to cut 1,000 jobs
*Ingredients company DSM has announced plans to reduce its workforce "by about 5% or 1,000 positions" in addition to further measures to cut costs and stabilise its financial position in the face of the challenging world economy. * Steps include a reduction in hiring temporary contract workers, project postponement, and stronger focus on purchasing prices. In a statement, DSM noted its Life Sciences businesses, especially Nutrition, have been unaffected by the current economic situation. However, end markets for DSM’s Materials Sciences businesses, such as automotive, construction and electronics, are seeing steep drops in sales. “It's clear that the turmoil which began in the financial sector is seriously eroding business and consumer confidence in the wider economy," said Feike Sijbesma, Chairman of the DSM Managing Board. "Although our Life Sciences businesses are continuing to perform well, most of our Materials Sciences businesses have increasingly been affected by the economic downturn. We are swiftly taking the necessary actions to maximise our cash flow and preserve profitability by reducing working capital and costs, while at the same time further strengthening our competitive position.”
- Associated British Foods acquires Azucarera Ebro
**Associated British Foods plc (ABF), the international food, ingredients and retail group, has reached an agreement with Ebro Puleva SA to acquire its Spanish sugar business, Azucarera Ebro SL, for a value of €385m. **Completion of the transaction is subject to regulatory approval and is likely to occur in early 2009. Azucarera Ebro had revenue of €586m and operating profit of €44m for the year ended 31 December 2007. It is the leading sugar producer in Iberia, supplying 50% of the 1.6 million tons of sugar consumed. British Sugar is the second largest sugar producer in the world, with production last year of 3.9 million tons. It has extensive operations in the UK, Poland, China and Southern Africa. It also has proven expertise in improving agricultural productivity and processing efficiencies, and in the development of sugar products for the industrial and retail sectors, and valuable co-products. It is expected that Azucarera Ebro will benefit from British Sugar’s expertise in improving processing efficiencies and the development of co-products.
- Hambleden launches herbal tea with Liquorice
The new teas reflect the public interest in green teas and tea combinations, and the changing tea drinking habits we’ve seen developing over the past few years, Flavours include: Chamomile and Peppermint Lemon Grass and Ginger Green Tea and Jasmine Green Tea and Ginger Rooibos Rooibus and Liquorice.
- The science behind Embodi
You might expect a product that claims to have red wine health benefits to be the result of decades of work performed in the California wine country. However, this particular beverage was conceived in a natural food science laboratory in a technology park near Chicago, more than 1,000 miles from the grape vines and fertile soils of Napa Valley. Two years ago, Ravi Randhava read an article in the scientific journal Nature that made his heart skip. A study in mice revealed that a compound called resveratrol, found in red wine, could actually prolong life. To Dr Randhava and many others in the scientific community, the findings bordered on spectacular. Yet, at that time, the primary way to benefit from resveratrol was to drink red wine, and 38% of Americans abstain from drinking alcohol, including Dr Randhava himself! Dr Randhava and his brother, Sujit, are the owners and lead scientists of Unitel Technologies, a family-owned chemical engineering company that specialises in extracting compounds from large streams of material. They had already enjoyed success with proprietary methods of extracting compounds (very gently and non-toxically), such as lycopene, from tomato skins. They believed that similar techniques could be applied to red wine grapes. “The findings of this study were almost unbelievable – to uncover this natural compound that extends life," says Alex Randhava, partner at Unitel Technologies, and Ravi's son. "We saw this incredible opportunity to extract the antioxidant compound from red wine grapes and offer it in a non-alcoholic form." From tomatoes to wine This family of scientists leapt into the world of wine – learning about winemaking, process and the rich fruit materials that are wasted after pressing the grapes. Because red wine grapes can run $2,000 a tonne, it would be too costly to purchase grapes from the vine. Consumers would be interested in this fountain of youth compound but only if it was affordable. So, they focused on the valuable leftover skins, stems and seeds, where red wine grape’s healthiest antioxidants reside. Could they extract the identical antioxidant compound from the pressed grapes that would otherwise be discarded? They went to work with Dr Leroy Creasey at Cornell University’s School of Viticulture. Their goal was to identically represent the spectrum of compounds that are found in red wine. Not to refine or isolate that compound, but to duplicate it exactly. And after grants from the USDA, patents and extensive testing, they were able to do just that. But how to offer this finding to the public? They enlisted the expertise of Dan Waters, a veteran marketer and manager who had years of experience leading brand efforts for highly recognised consumer companies such as Barilla America Pasta, The Clorox Company, Colgate-Palmolive and The Gap. “We had leading scientists who recognised the valuable nutritional discovery that was presenting itself,” says Dan Waters, Embodi president. “The challenge was in how to deliver this to the public in a product that was compelling.” Not wanting to get lost in the shuffle of nutriceuticals or supplements, Waters went to task leading the development of a nutritional beverage. Understanding the benefits The timing was ripe for a functional drink for a few reasons. First, the organic industry was and continues to grow rapidly. Second, the functional food and beverage markets were expanding and becoming more mainstream. Goliath beverage companies such as Tropicana and Minute Maid were introducing juice drinks with health benefits. So, consumers weren’t intimidated by terminology and had a genuine and increasing interest in nutritional benefits found in foods and beverages. Waters believed that developing a delicious, non-alcoholic beverage that offered the benefits of red wine made perfect sense. He evaluated the market and saw that most nutritional beverages being introduced required education on the benefits. “People don’t inherently understand the benefits of Açai or Goji berry,” explains Waters. “The good news for us is that 85% of adult Americans understand the health benefits of red wine.” And because there's a large percentage of the population that doesn’t drink wine, Waters recognised the market opportunity. In July 2008, Embodi became the first beverage to offer the health benefits of red wine without the alcohol. The benefits of red wine have been scientifically supported for decades, and new studies reveal exciting news regularly. In October 2008, a study showed evidence that drinking red wine may ward off lung cancer. Still, the reality is that most Americans aren’t drinking red wine – 11% of the American population consumes more than 80% of the wine purchased in this country. Embodi is the first non-alcoholic beverage to offer people the full spectrum of antioxidants found in red wine. They extract the identical compound from red wine grape skins, stems and seeds and deliver it to you in a crisp, refreshing functional beverage.
- Chris Hoy to promote Kellogg's Bran Flakes
The gold medallist will feature on Bran Flakes packaging and in TV ads from January. Kellogg's believes Bran Flakes can become the 'Special K for men' thanks to its great taste and whole body health benefits.
- New Dulcet Cuisine sauces imported to UK
The Amazing Food Company is set to introduce Dulcet Cuisine’s new range of exotic ketchups – Peppery Moroccan Ketchup, Mild Indian Curry Ketchup and Orange Chili Ketchup – to the UK market. A range of gourmet dressings and dipping sauces will also be imported from the US, including Asian Dressing & Sauce and Balsamic Dressing & Dipping Sauce. Dulcet Cuisine was created in Oregon, USA in 2004 by Pam Kraemer whose Madras Curry Mustard won the 2006 Grand Champion award at the Napa Valley Mustard Festival Worldwide Mustard Competition.
