Global packaging giant Tetra Pak has signed a landmark agreement with the Middle East Paper Company (MEPCO) to recycle used food and beverage cartons in Saudi Arabia. The agreement was announced at the weekend following World Environment Day on Friday (5 June). The partnership between Tetra Pak and MEPCO will address the issue of recycling thousands of cartons that are discarded by households and business premises across Saudi Arabia every day. The agreement was signed after successful trials were conducted to demonstrate the recyclability of Tetra Pak cartons by MEPCO. “We strive to be an eco-friendly company committed to the principles of conservation and sustainability,” said MEPCO Managing Director Abdullah Al-Moammar. “MEPCO partnered with Tetra Pak Arabia as they are serious about addressing the environmental issues within their industry and their imprint on the Saudi society. “We are very pleased to announce this partnership, and look forward to recycling the cartons and raising consumer awareness about environmental issues.” MEPCO will collect, sort and recycle cartons for use as raw material in manufacturing paper. Beverage carton recycling will help reduce greenhouse gas emissions from landfill sites. An industry first Mohammed Angawi, Environment Manager of Tetra Pak Arabia, said: “We are excited about launching our recycling initiative, which is an industry first in the food and beverage carton segment, with the largest paper manufacturing company in the Middle East. “With MEPCO as our partner, we are confident that we can not only facilitate recycling, but also help drive environmental consciousness in the region. It gives Tetra Pak Arabia a great sense of pride to look after the community we operate in by bringing about positive environmental change.” Recycling and sustainability are key concerns for Tetra Pak, both worldwide and in the Middle East. The core ingredient of Tetra Pak’s packaging is wood fibre that comes from sustainable managed forests, a renewable resource. The Jeddah factory of Tetra Pak Arabia is ISO 14001 certified, and all factory waste is recycled. Globally, Tetra Pak recycles 21 billion cartons per year. MEPCO produces almost 340,000 tonnes of paper annually, and also collects and recycles more than 379,000 tonnes of waste paper. The company plans to add 275,000 tonnes to its existing production capacity by September next year, with the long-term aim of raising capacity to 1 million tonnes by 2013.

NSF International has announced that Radenska's Naturelle Water, one of the largest bottled water providers in the Balkan Region, has been certified by NSF's Beverage Quality Programme. Following NSF Certification, Radenska Naturelle was designated the official water of the current Slovenian Presidency of the European Union. Radenska Director Tomaž Blagotinšek commented: "When we launched our new non-carbonated natural mineral water Radenska Naturelle – the official water of the Slovenian Presidency of the EU – it was important for us to demonstrate our commitment to quality and safety by obtaining NSF Certification. Our ISO 9001 and ISO 14001 registrations further attest to this commitment.” As the 'official water', Radenska bottles are served by the host country at every official gathering, meeting and reception of the European Union, attended by ministers and officials of all European member states. Radenska plc. is a world-renown company with a long tradition of bottled water production, using its brand name Radenska perched on three red hearts. To become certified, Radenska's water, which is exported throughout Europe, Canada and Australia, was tested to ensure compliance with NSF Certification requirements and audited to ensure its facilities meet Good Manufacturing Practices (GMP) and Hazard Analysis and Critical Control Point (HACCP) requirements. To demonstrate certification, every bottle of Radenska's Naturelle Water will bear the NSF Certification Mark on its label. Ongoing testing and annual unannounced audits will ensure continued compliance and allow continuous use of the NSF Mark. NSF Vice President Nancy Culotta explained: "Radenska is setting the example for other bottlers in the Balkan Region and throughout Eastern Europe to follow. When consumers see the NSF Mark on Radenska's bottle, they can rest assured that Radenska's water has met the industry's highest quality and safety standards.” NSF's Beverage Quality Certification Program provides annual, unannounced plant inspections covering every aspect of a bottler's operation, from the source of the water, through the disinfection and treatment process, and including the container closure process. As part of the certification process, NSF also performs extensive product testing for over 160 chemicals, inorganic, radiological and microbiological contaminants. For more information, visit www.nsf.org

"We have plans to make two or three acquisitions this year,” WBD Chairman David Yakobashvili told Reuters during the St Petersburg Economic Forum at the weekend. “We must show our investors we are actively involved in acquisitions. This is important." Yakobashvili would not reveal the businesses WBD has targeted, nor the countries in which they are based. The group currently operates in Russia, Ukraine, Kyrgyzstan and Uzbekistan, with almost 40 plants and a workforce of 19,000. WBD’s last significant acquisition was the purchase of dairy producer Georgian Foods in Tbilisi in October for an undisclosed sum. Georgian Foods is WBD’s first plant in the Caucasus region, and will serve the neighbouring markets of Armenia and Azerbaijan as well as Georgia. WBD is Russia’s biggest dairy company and third or fourth biggest producer of juice and nectar. Beverage sales include mineral water, and the group also has a growing baby food business. Key WBD investors include France’s Groupe Danone with an 18% stake. * ‘Solid’ start to 2008* On Friday, WBD reported it had made a “very solid” start to this year, with both sales and profits surging despite increased costs. Group revenue over the first quarter was 34.8% up at $731.9 million, with operating income up 23.2% to $63.4 million and net earnings rising 30.6% to $41.9 million. “We are pleased with the very solid performance we achieved this quarter, in particular our sales growth of 34.8% on a year-over-year basis,” said Chief Executive Tony Maher. “Our baby food business continued its impressive growth with sales increasing 67.1%, outpacing market growth and strengthening our leading market share position. “Our beverage business achieved 25.8% growth in sales, and our dairy business delivered 34.1% growth. Despite the challenging raw materials pricing environment that continued well into the first quarter, gross margin was relatively stable at 26.4% in comparison with 26.9% in the fourth quarter of 2007.”

Behind the scenes at PAS Grantham Ltd in the heart of Lincolnshire in the UK, Tim Wainwright is hard at work on the shop floor, as he has been for the last 32 years. In this fascinating insight into the potato products production line, Tim reveals the secrets behind the company's significant cost savings and increased reliability. The potato was first cultivated over 4,000 years ago in Peru. Today, thanks to companies like PAS Grantham Ltd (McCain), the potato is one of the world’s most widely eaten and enjoyed foods. For instance, it's said that the average American eats 140 pounds (63.5 kilograms) of potatoes a year, the average German eats more than 200 pounds (90.7 kilograms) a year, and the average person in the UK consumes 220 pounds (100 kilograms) of potatoes a year. PAS Grantham Ltd (McCain) produces a nutritious and delicious assortment of products, including oven chips, home fries, French fries, low-fat French fries, and have also entered into the mini pizza market. Its foods are made with quality in mind. Not only does it carefully select its ingredients, it also adheres to a strict manufacturing process. This manufacturing process helps the company increase equipment reliability and productivity, and decrease operating costs. Tim Wainwright, Mechanical Engineer at PAS Grantham Ltd (McCain) for the past 32 years, says that the greases it uses in its machinery play a big role in the manufacturing protocol, and in the company’s ability to increase productivity and decrease operating costs. PAS Grantham Ltd’s (McCain’s) Total Preventative Maintenance programme is a cornerstone of its business and Tim constantly searches for products that will enhance its capabilities to achieve quality improvement throughout the plant. *The lubricant trial * The production lines at PAS Grantham Ltd (McCain) run 24 hours a day, at least five days a week – sometimes even seven days a week. If a machine goes down, it can result in the entire line being shut down. “When the line goes down, it costs us £900 an hour – that’s the figure we use as our benchmark,” says Tim. “Productivity is everything, and proper lubrication plays an integral role. We're always looking for lubricants that will perform, protect and save us money by reducing downtime and increasing operational efficiencies.” Four years ago, Petro-Canada account manager James Ross suggested that PAS Grantham put “food safe” Purity FG Synthetic Grease to the test. In 2004, Tim ran a six-month trial using Petro-Canada’s Purity FG2 Synthetic Grease – an advanced food-grade grease specially formulated for the toughest food processing applications. He compared it to his existing product to see which grease provided better protection of gears, bearings and equipment. Tim also compared the difference in cost between the two products. The results and the switch “Lubrication improvements were noticeable. There was a decrease in actual volume used vs what we were using before, and our reliability was enhanced,” explains Tim. “Petro-Canada’s account manager James Ross ensured we achieved excellent efficiency results by ensuring that we had the right products for all of our applications.” “After this six-month trial of Purity FG2 Synthetic Grease, we quickly realised the benefits of the product. There wasn’t any need to do any further trials. We went ahead and switched to a full line of Purity products, including Purity FG2 Grease, Purity FG00 Grease and Purity FG AW Hydraulic Fluid 68.” Purity FG2 is now used on the company's standard conveyors, Purity FG2 Synthetic on its steam peelers and fryers, Purity FG AW Hydraulic Fluid 68 on its freezer chains, and Purity FG00 on the auto lube systems. Purity FG Gear and Hydraulic Fluids are also used throughout the PAS Grantham plants. *The products and savings * Purity FG Greases provide outstanding lubrication and pump-ability over a wide range of temperatures, exceptional equipment protection and resistance to water washout and water jet spray loss. Purity FG2 Synthetic Grease also maintains consistency and lubrication in the presence of demanding cleaning processes. Purity FG AW Hydraulic Fluid 68 is an advanced food-grade lubricant formulated to deliver enhanced, long-lasting protection. It resists oxidative breakdown better than leading speciality food-grade hydraulic fluids, and minimises the formation of sludge and varnish to ensure smooth and reliable operation. This can result in longer fluid life and reduced downtime. “Purity FG food-grade lubricants provide us with improved reliability and cost savings,” adds Tim Wainwright. Petro-Canada’s food-grade approvals are extensive, including, but not limited to, H1 registered by NSF International, certified by Star K for use in the preparation of kosher food, certified Halal by IFANCA. Selected products also fit perfectly in HACCP (Hazard Analysis and Critical Control Point) and GMP (Good Manufacturing Practice) plans.

By Mike Ramey Russia’s biggest juice maker, Lebedyansky, made a loss in the first quarter of this year. The company, which is in the process of selling its juice business to PepsiCo and the Pepsi Bottling Group (PBG), said Q1 sales rose 17% to $245.3 million despite a 1% dip in juice volumes to 230.2 million litres. However, Lebedyansky finished with a net loss of $5.4 million under International Financial Reporting Standards (IFRS), compared with a profit of $24.2 million in the same period of 2007. Lebedyansky’s revenue growth was the result of higher selling prices coupled with strong volume increases in baby food and mineral water. But these gains were wiped out by higher costs for raw materials and packaging, as well operating expenses. Gross profit rose just 3% to $91.7 million – representing a margin of 37.4% compared with 42.3% in the first quarter of 2007 – while EBITDA plunged 62% to $15.9 million. Pepsi’s record purchase In March, PepsiCo and its major distributor PBG agreed to buy 75.5% of Lebedyansky for $1.4 billion, in a deal that excludes Lebedyansky’s mineral water and baby food operations. The price will make it PepsiCo’s biggest acquisition since the purchase of Quaker Oats and Gatorade for $14 billion in 2001, and its biggest ever outside the US. The deal is not expected to be completed until the third quarter of this year, and PepsiCo and PBG may then acquire the remaining 24.5% of Lebedyansky shares. PepsiCo is expanding strongly in Eastern Europe, and had been seeking for some time to secure a leading position in Russian juice. Lebedyansky is the world’s sixth biggest producer of juice and nectar, and heads the Russian market with a share of about 30%. Last year, the company’s juice sales topped $800 million, while its mineral water and baby food businesses added revenue of $18 million and $123.8 million respectively. European Coke bottler Coca-Cola Hellenic and The Coca-Cola Company already own Russia’s second biggest juice company, Multon, which has a market share of about 25%.

Vitiva, a Slovenia based nutraceuticals company, has launched a Ecocert certified versions of its all-natural rosemary preservatives, including its registered Inolens and Aquarox product lines. Products made with Vitiva’s Ecocert-certified Inolens and Aquarox rosemary protectors help processors attain organic labels while offering the same exemplary antioxidant and antimicrobial protection as conventional Inolens and Aquarox. Oil soluble Inolens offers protection against rancidity, taste change and colour alteration in meat and meat products, fish, ready to eat meals, bakery and confectionary products, nut and seed mixes, snacks and various savory applications. It also can be utilised in applications such as: fish meal, pet food and cosmetic formulations. Water soluble Aquarox is beneficial for protecting nutraceutical supplement and cosmetic formulations from oxidation that leads to product breakdown and development of off odours and colours. “The organic products market is growing rapidly due to increasing consumer demands for food, cosmetic and nutraceutical products that are not only allergen- and gmo-free, but also 100% natural and organic,” said Vitiva CEO Ohad Cohen. Ecocert-certified Inolens and Aquarox are non-GMO, kosher-certified and allergen-free.

The long-standing battle between Australia's independent grocers and supermarket giants Woolworths and Coles took another turn at a recent public hearing. The Melbourne grocery inquiry involved the Australian Competition and Consumer Commission (ACCC) which questioned whether the supplier of packaged goods for most independent grocers may be helping push up grocery prices. Together Woolworths and Coles account for around 80% of the country's food retail sector. The companies have been accused of avoiding competition with each other, of blocking new entrants to the industry through property agreements and of forcing smaller suppliers out of business. In 1999 a parliamentary inquiry into food retailing concluded that it was "heavily concentrated and oligopolistic in nature" but the market share of the two supermarkets has continued to expand. ACCC Chairman Graeme Samuel said at the hearing that he was at a loss to determine if there was competitive pressure on the two major supermarket chains, a recent report in the Australian newspaper The Age stated. He also said pressure was certainly not coming from smallershops, who matched, rather than competed with, prices at Coles and Woolworths (which operates as Safeway in Victoria.) "If you look at the lines on the (prices) chart between Coles and Woolworths, they're so close together it's barely discernible…" Samuel told the inquiry. "I'm at a loss to try and find where the competitive edge is coming from. It's certainly not coming from the independent sector, because the independent sector says we are really matching, on everyday items, the price of Coles and Woolworths." Samuel said evidence at a previous hearing suggested part of the reason independent retailers were matching prices was because they did not make much profit from packaged goods supplied by Metcash - the main supplier for independent IGA stores. Instead they made profits from other groceries, including fresh food. *National Association of Retail Grocers of Australia * According to The Age, John Cummings, the Head of the National Association of Retail Grocers of Australia (NARGA), which represents about 4500 independent grocery retailers, lashed out at the suggestion the independent supermarkets were not competitive because of small margins on packaged goods. He said Coles and Woolworths did not make much of a profit from the sale of dry good groceries either. Metcash Chief Executive Andrew Reitzer complained that the ACCC was not doing its job right saying that "because they haven't implemented the competition laws strictly and in the strongest possible ways, we now have one of the most concentrated markets in the world where Woolworths and Coles have 76% ." At the last public hearing (2 June), Reitzer agreed the independent retailers aimed to match the prices of the major chains but said there was competition in the form of promotions, which average 40% of sales. It was also revealed that NARGA is partly funded by Metcash, but Cummings said they were independent of Metcash in their opinions. The Australian Competition and Consumer Commission is currently undertaking a study of grocery prices in the country. The report is scheduled to be published in July.

By Mike Ramey Jones Soda Co is joining the US Presidential contest. The offbeat Seattle beverage maker – known for its imaginative labels and unusual flavours – is offering American consumers of all ages a chance to express their political sympathies by buying bottles of Campaign Cola bearing a photograph of one of the contenders. Each online purchase through <<1>">www.campaigncola.com]<1> will be counted as a vote for that candidate. Buyers are also being given a chance to express their views on the political situation and challenges facing the eventual winner, by participating in an open forum. Campaign Cola is a special limited edition of Jones Pure Cane Cola, one of the latest additions to the company’s wide range of flavours. Consumers can cast their virtual vote by ordering a pack of Barack Obama’s “Yes We Can Cola,” John McCain’s “Pure McCain Cola,” or Hillary Clinton’s “Capital Hillary Cola.” The campaign is particularly aimed at consumers who may be too young to vote in the real contest. * Political powerhouse* “Young voters are a political powerhouse in this election, and the candidates that communicate to these audiences will have a clear advantage come election time,” said Seth Godwin, Marketing Manager of Jones Soda. “The best way to engage interest from people is through a personal connection, which is what Jones Soda is all about. We want to provide an opportunity for people to become excited about the process, and what could be a better conversation starter than drinking from a soda that has your chosen candidate’s face for all to see?” Bottles of Campaign Cola are being offered to online buyers in six-packs priced at $14.99 and 12-packs priced at $23.99. Each order will count as a vote, with the results being updated every 15 minutes on the website, so all can follow the course of the race. The website will also provide election resources, so young voters can learn how to register and where to vote. “Jones Soda’s Campaign Cola will serve as an informational and interactive site for open dialogue, a medium that Jones’ core consumers are comfortable with,” said Stephen Jones, CEO of Jones Soda. “It also provides a unique platform to introduce Jones Pure Cane Cola through an innovative programme surrounding a nationally influential event.” <1>: http://www.campaigncola.com

Milk Link, one of the UK's leading integrated dairy businesses, has unveiled details of its environmentally friendly packaging initiative: Project Greenscape. The project, which has initially focused on working in partnership with British retail chain Marks & Spencer (M&S) on reducing the environmental impact of its cheese packaging, will during 2008 deliver on a cost-neutral basis: 23% reduction in the weight of primary packaging supplied, 39% of the total weight of the packaging will be suitable for recycling, 25% of the total weight of the packaging supplied will be from recycled raw material, while full pack functionality and benefits will be maintained. Milk Link has now started to roll out these developments to its other cheese retail customers with full conversion anticipated by early 2009. Milk Link Head of Innovation Matt Richards, said: "Project Greenscape is a tangible demonstration of Milk Link's commitment to meeting the needs of our customers in an environmentally sound and sustainable manner. Through working in partnership with M&S and our other major customers to develop innovative packaging solutions we have demonstrated that it is possible to both be 'green' whilst still delivering the highest levels of quality and functionality." Marks & Spencer Head of Food Packaging Helene Roberts, said: "Our ultimate aim is to reduce packaging where possible, and to use suitable materials where this is not possible. As part of our Plan A 100 point plan, we are committed to sending no waste to landfill from our operations by 2012. The work we are doing with Milk Link fits perfectly into this." Project Greenscape - background In the Autumn of 2006, Milk Link anticipated that it would see an increased focus from its major customers in the area of primary packaging and its perceived environmental impact. In particular, the contribution of primary packaging to landfill waste, its ability to be recycled and the use of recycled or renewable/sustainable raw materials in its manufacture. In response Milk Link initiated Project Greenscape, the objectives of which were: to develop solutions that provide an overall reduction in the weight of primary packaging to develop solutions that provide an overall increase in the percentage of packaging that can be recycled wherever possible, to develop solutions during the manufacturing stage that use raw materials from recycled or sustainable/renewable sources to maintain current pack functionality and benefits to develop cost neutral solutions which can be rolled-out across all our cheese products Development of the new packaging formats was carried out during 2007 focusing on barrier film, base webs, top webs, stand on trays and labels. The first Project Greenscape packaging innovations were successfully launched into the market in September 2007 in partnership with Marks & Spencer. Milk Link has now started to roll out these developments to its other retail customers with full conversion nticipated by early 2009.

*Beverage and vending machine manufacturer N&W have announced the winners of the 2008 N&W Distributor and Partner of the Year Awards. * Based in Bristol, UK, the Lyons Group were honoured with the Distributor of the Year Award, for the second year running, and 7 Day Catering took the Partner of the Year Award. All N&W customers were eligible to enter the awards, making it open to over 200 distributors. In addition to the two top awards, Cuppa Vending gained special recognition for their high quality entry and was honoured with a glass memento and a theatre break in London. N&W Managing Director Carl Bjorkstrand said: “Our awards are fiercely competitive and well subscribed to, and competition for the accolades is always tough and all entrants gave an excellent account of themselves - choosing the winners is always an incredibly difficult task. We were pleased to award Lyons Group and 7 Day Catering the top two awards, and their dedication and services to their customers serve as a source of inspiration for the entire industry. Their working practices and solutions leverage a keen understanding of specific customer needs with emerging technologies and developments to create new solutions that expand market opportunities for their clients as a whole.” Commenting on their award, General Manager Paul Hancock from Lyons Group remarked: “We’re thrilled to have had our efforts recognised for the second year running with this nationwide vending industry accolade, particularly as the market is extremely tough. However, our ethos is always focusing on quality in all aspects of our business, which ensures we remain at the forefront of the industry. The extensive range of equipment that N&W deploys has enabled us to achieve additional business this year.” Partner of the Year, Tamworth-based (UK) 7 Day Catering, is a national independent contract caterer which operates over 150 sites across the UK. Sales and Marketing Director Mark Johnson, commented: “It is a great honour to receive this award, we’re delighted. Our operation has grown significantly over recent years, and our rapid expansion and development of the Vending 4U brand has given us a real competitive edge. It is fantastic to have our work recognised in this way.” Both winners have received special trophies, a choice of prizes including a thrilling Palmersport race day and a celebratory dinner.

*Pilgrims Choice, the number two Cheddar brand now worth £58.8million, is launching four speciality cheese products for the retail market this summer.** The products are: Pilgrims Choice Wensleydale with Cranberries, Pilgrims Choice Smokey Cheddar, Pilgrims Choice Double Gloucester with Onion and Chives, and Pilgrims Choice White Stilton with Apricots. Mike Davies, Managing Director of North Downs Dairy, owners of the Pilgrims Choice brand, said: “Pilgrims Choice has developed these new lines in line with consumer demand for alternative variants in the cheese category. “2008 will see the Pilgrims Choice brand realise its biggest support programme to date, with TV and consumer and trade press advertising and PR, a new recipe booklet and massive sampling programme in stores across the UK. We believe the investment will see sales of Pilgrims Choice escalate. It will also ensure the popular Cheddar brand will continue to play a leading role in the Cheddar category.” Data source: * TNS 52 w/e 23.03.08 – value/volume

*BI Nutraceuticals, Californian based supplier of raw materials and custom blends for 30 years, announced that its President and CEO, George Pontiakos, has been invited to present, "An Overview of Asia's Organic and Herbal Ingredient Market: Sourcing Strategies in China," at Natural Products Expo Asia, running 26-28 June at the Hong Kong Convention and Exposition Centre. * Pontiakos will speak on Thursday, 26 June from 4:15 to 4:50pm about the changing climate of the Asian natural ingredient market, specifically the growing popularity of herbal and organic categories. He will also provide insight into organic farming and certification practices within the United States. "With production facilities in both the United States and China, BI has a unique dual-perspective on the most effective sourcing strategies, manufacturing processes and sterilization methods employed by suppliers on each end of the international supply chain," stated Pontiakos. As president and CEO of BI Nutraceuticals, Pontiakos oversees the company's worldwide operations. BI has manufacturing and processing facilities in Long Beach, Calif., Long Island, NY, Boonton, NJ and Suzhou and Shanghai, China. Pontiakos has held senior leadership positions at several leading consulting, medical services and technology companies including Monovasia, which he founded, Oluma, Lucent, Agere, Ortel, NetVantage and Timeplex. He has wide-ranging experience in scaling geographically dispersed global companies to maximize their ability to successfully compete in the marketplace. Pontiakos holds a bachelor's degree in Business Management from Farleigh Dickinson University, New Jersey.