The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry
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- Nestle ups its growth forecast for 2008
Swiss food and beverage giant Nestlé delivered an early Easter gift to investors by issuing an unexpectedly upbeat forecast of its growth prospects in 2008. Nestlé said it expected to report “very strong organic growth” in the first quarter after a good start in January and February. Despite the increasingly gloomy economic climate, the company projects its growth over the full year to be close to the level of 2007, “and clearly above the long-term trend target of 5-6%". Nestlé said it had pushed through price rises for its products, partially offsetting the impact of higher raw material costs, and contributing to increased revenue. The company also boosted its real internal growth (RIG) in the first two months of 2008, to achieve an “outstanding” result that will be reflected when Nestlé reports its quarterly sales on 21 April. “The group’s organic growth is off to a very strong start in 2008,” said Peter Brabeck-Letmathe, Chairman and CEO of Nestlé. “This demonstrates the benefits of Nestlé’s strategic reorientation to nutrition, health and wellness reflected in the strong underlying momentum in our business, but also our strategy to respond immediately to exceptional cost evolutions in the commodity markets. “We expect our raw material cost pressures to abate somewhat in the course of the year, and foresee price increases to trend lower in the second half of 2008, resulting in a full-year organic growth rate close to the level reached in 2007, clearly above our long-term target.”
- Arla pledges to reduce emissions by 25%
Arla Foods says it aims to cut 25% of its current greenhouse gas emissions from its entire production and distribution cycle by 2020. Concerns over the environmental impacts of food and beverage manufacture from both governments and environmental groups, has led to processors having to reduce output of waste and green house gas emissions. Group CEO Peter Tuborgh said the company's plan, which will target a variety of areas of its operations from the farmyard through to distribution, was an ambitious long-term strategy."We don't have all the answers yet, but we're sending out a strong signal now to employees and business partners that, as a major company, we take our greenhouse gas emissions very seriously," he said. "We want to offer customers and consumers more climate friendly products and contribute to national and international climate targets." According to its own estimates, the company's present greenhouse gas emissions are about 1.5 million tons a year from its combined production, transportation and packaging operations. Arla Foods said that its position as a dairy cooperative therefore put it in a strong position to adapt emissions at all levels of the dairy value chain. As part of the sustainability drive, Tuborgh said the company will focus particularly on encouraging research in its three core markets within Europe. "As a Danish-Swedish cooperative, Arla is able to focus on the whole value chain from cow to consumer," he added. "To this end, Arla Foods intends to actively support and cooperate with organisations within the company's three home markets: Sweden, Denmark, and the UK."
- Hi-tech shopping trolley helps find items in store
Designed in conjunction with computer giant Microsoft, the latest supermarket trolley will not only guide you to the exact shelf for the item you want, it will also help you keep a check on your diet. It adds up your groceries as you shop, highlights special offers, and even suggests recipes using the items you've bought. And Texas-based manufacturer MediaCart says the trolley could be in UK stores by 2009. The MediaCart's personalised features, such as diet checks, recipe suggestions and remembering and downloading shopping lists, are activated when a shopper inserts a store loyalty card. The MediaCart uses Wi-Fi radio signals rather than GPS, and each trolley has an in-built locator device and plots its position on a 12in screen. It even uses voice-recognition technology to take instructions from shoppers.
- Brecon Carreg dares to go bare
To encourage everyone in the UK to celebrate their own natural beauty with confidence, Brecon Carreg has created a national make-up free day. Welsh pop singer Cerys Matthews is supporting Brecon Carreg National Dare to Go Bare Day on Friday 18 April 2008 in aid of the British Skin Foundation, the UK's only charity dedicated to raising funds for skin disease research. Cerys Matthews commented: "Getting a group of friends or colleagues together and encouraging each other to go make-up free for a night on the town or a day in the office on Friday 18 April is an easy way to get involved and will provide that vital support for everyone wanting to take part but not wanting to 'go bare' alone." Brecon Carreg Marketing Manager Gill Bullock explained: "Dare to Go Bare Day is inspired by the natural beauty of the Brecon Beacons National Park where Brecon Carreg is created as it filters through the Black Mountain Hills. The national day is also a great way to encourage people to look after their skin properly and taking a break from wearing make-up is a great way to let your skin breath – even if it's just for one day." Over half of women say they drink lots of water as part of a routine to look after their skin yet less than one in ten drink the recommended eight glasses a day. Skin, the body's biggest organ, is a huge reservoir of water and if the body's water supplies are low, skin suffers. Drinking natural mineral water can help – it is required by law to be naturally wholesome, with nothing added to alter the natural characteristics of the water. For more useful tips on how to include drinking water into the daily routine and to get involved in Brecon Carreg National Dare to Go Bare Day on 18 April, register at <<1>">www.daretogobare.co.uk]<1> and download a sponsorship form. <1>: http://www.daretogobare.co.uk
- Provisional 2007 figures from Krones
*Beverage filling and packaging technology company Krones AG has achieved new records for all significant statistics for the 2007 business year, according to the provisional figures. * In comparison to the preceding year, sales were up by 12.8% at €2.1 billion, a steeper increase than originally anticipated. Order bookings rose by 16.9% to reach €2.3 billion and at €890.9 million (preceding year: €746.7 million), Krones possessed a substantial order backlog on 31 December 2007. The growth in 2007 (the 8th record year in succession) was driven primarily by the continuingly buoyant demand for packaging machinery. The company also benefits from being able to offer the entire range of products and services required for building bottling and canning facilities. Internationally operating beverage conglomerates who are building numerous new factories in regions like Eastern Europe, South America, Asia and Africa, are particularly prominent users of Krones’ full-service capabilities. * Net income for the year * Krones production operations investments initiatives bore fruit in 2007. The EBT margin, ie earnings before taxes in relation to sales, improved significantly from 5.7% to 7.1%. The company thus exceeded its targeted return for 2007. Pretax earnings rose by 40.1 % to reach €153.6 million. For profits after taxes, Krones exceeded €100 million for the first time in 2007. At €101.8 million, profits were up by 31.4 % on the preceding year’s level. The ROCE (Return on Capital Employed) improved in 2007 from 16.1% to 20.2% and was thus above the originally targeted figure of at least 20 %. * Further growth * The capital structure continues to exhibit a highly favourable ratio between equity and outside capital. On the balance sheet cutoff date, the equity capital was up by 12.6%, resulting in a capital-to-assets ratio of 42.0% (preceding year: 42.7%). In addition, on 31 December 2007 the company possessed liquid funds amounting to €53.8 million. *Outlook * As a long term target, Krones aims to increase its revenues each year within a corridor of 5 to 10%. The Executive Board expects the rise in sales during 2008 to reach the upper levels of the forecast corridor. Pretax earnings are set to increase at least in proportion to revenues. Since Krones is profiting from the reform of Germany’s Corporation Tax Act, earnings after taxes will in 2008 rise by a higher percentage than earnings before taxes.
- New look for Volvic Touch of Fruit
Danone Waters UK & Ireland has reinvigorated the Volvic Touch of Fruit range with a brand new label design in order to boost on-shelf appeal. The latest labelling, which will almost double in size, will roll out across all bottles within the range, from the 50cl bottles through to the 1.5 litre bottles. The relaunch will form part of the €4 million ($6.2 million) marketing campaign behind the brand in 2008. The campaign is set to include advertising within the grocery trade press as well as within the consumer press. Danone Waters UK Marketing Director, Patrick Kalotis, said: “We're really excited about this new design for Volvic Touch of Fruit, which drives product appeal by reenforcing on-pack the core brand proposition of tasty hydration. The larger labels increase shelf standout and drive range clarity, and we believe these labels will create a huge impact in-store. “To coincide with the label change, Danone will also be introducing coloured caps to the Volvic Touch of Fruit original range, to further reenforce both the range and flavour differentiation in-store: VToF Strawberry Original will now have a red cap and the VToF lemon & lime variant will have a yellow cap. The sugar-free range will remain in the iconic blue caps, as consumers buy this predominantly on the premise of tasty hydration with reduced calories." Originally launched in 2000, the company claims that Volvic's Touch of Fruit currently holds a 47% share of the flavoured still water category in the domestic market.
- Black Tower launches in a Rexam can
The black and silver aluminium can is 100% recyclable, lightweight and unbreakable. Black Tower Fizz is aimed at younger drinkers and anyone who wants to enjoy a fun and refreshing semi-sparkling wine that's characterised by its fresh and fruity liveliness. Wine in cans is growing in popularity among modern, young consumers. Rexam’s 200ml and 250ml wine cans are compact and easy to chill, and research has shown that the can keeps wine perfectly fresh, making it ideal for enjoying in clubs and bars or outdoors at picnics, barbecues, sports events and festivals. Nik Schritz, managing director of Black Tower brand owner, Reh Kendermann, said: “The quality of this semi-sparkling wine in the stylish can format reflects the fresh and vibrant image of Black Tower. Using the powerful Black Tower brand and the convenient can format, we expect to attract an ever increasing number of new, younger consumers to the brand.” Gote Nylin, market development director for Rexam Beverage Can Europe, added: “Putting wine in cans helps broaden the appeal of wine to more consumers who are looking for convenience without sacrificing quality. The design possibilities are endless with the 360-degree print area. And by using a wide variety of different textures, inks and varnishes, cans can create a bold statement and enhance shelf impact.” Rexam’s plant in Recklinghausen, Germany, is producing the cans, which are expected to be available throughout the UK from this summer.
- Supplements prove useful for vision
New findings suggest that supplementing diets with the nutrients lutein and zeaxanthin, can help decrease the risk of eye diseases such as age-related macular degeneration. The findings, published in Optometry and Vision Science on 1 February 2008 indicate that lutein and zeaxanthin play a wider role than was previously thought in improving human eyesight. Lutein and zeaxanthin are two dietary carotenoids which accumulate in the macula lutea of the retina, a small area responsible for central vision. Until recently, higher levels of these carotenoids in the retina were associated exclusively with a decreased risk of age related macular degeneration. However, the study suggests that they can also improve the vision of people with healthy eyes. The link is specifically with the effects of glare on the normal eye. There are many situations on an every day basis when people are exposed to glare – sitting in front of the computer for long period of times is just one such example. Many can probably recognise the temporary blindness that is experienced when the sun hits their eyes. The investigators – JM Stringham and BR Hammond of the Vision Science Laboratory at the University of Georgia in Athens, US – demonstrated that six months of supplementation with two carotenoids FloraGlo lutein and Optisharp zeaxanthin, formulated using a special Actilease technology to help improve the bioavailability, significantly reduced the effects of glare on a test group of people with normal eyesight. The researchers concluded that supplementation with FloraGlo lutein and Optisharp zeaxanthin may therefore have an important role to play in supporting the safety and well-being of people with healthy eyes as well as those with age related macular degeneration.
- Alcoa recycling website
Alcoa has launched a corporate recycling website detailing how aluminium recycling is part of the clean air solution. The website (link below this article) explains why it’s important to recycle and how recycling helps the environment and the economy. A video explains how the ultimate recyclable package – the aluminium beverage can – is recycled and brought back to the grocery shelf in 60 days or less as a brand new soda can. Recycled aluminium requires 95% less energy to produce and can be recycled many times, reducing carbon dioxide emissions. The site also provides tools to find recycling centres for consumers and businesses, links to recycling organisations, information on how to become an Alcoa-approved recycler, fun facts, an interactive recycling blog, and a selection of YouTube videos from recycling enthusiasts. Recycling history Alcoa pioneered the recycling of aluminium 30 years ago when it formed Alcoa Recycling Company, when the popularity of aluminium cans began to explode. Today, the US recycling rate is among the lowest in the world, even though Americans are the biggest users of aluminium beverage cans. “At that time, and today, our mission is the same: to help the public understand the importance of recycling," said Greg Wittbecker, Director, Alcoa Metal Recycling Strategy. "But today, recycling is even more critical, because recycling aluminium is a key element to slow and stop the growth of greenhouse gases caused by power generation. Recycling aluminium is the smart choice." Alcoa has also called upon aluminium industry leaders to raise the used beverage can recycling rate in North America to 75% by 2015 from its current level of 52%. In addition, with the goal of boosting recycling and energy savings, Alcoa upgraded its Tennessee Operations by installing environmental and fuel-efficient technologies to expand recycling capacity by nearly 50%. About Alcoa Alcoa is a world leader in the production and management of primary aluminium, fabricated aluminium and alumina combined, through its active and growing participation in all major aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production and other capabilities of Alcoa's businesses to customers.
- Filtered water for UK Council
*As councils throughout the UK react to calls from DEFRA to ban bottled water, Aylesbury Vale District Council has emerged as one of the leading lights in the campaign to lessen the environmental impact of providing palatable water at council meetings. * When the BBC’s Panorama team requested the spending figures for bottled water from November 2006 to October 2007, Aylesbury Vale District Council was able to state that it had spent a minimal amount. The council had made the switch to mains-fed water machines eight years previously under the guidance of a Tana Water employee who had outlined the benefits to the environment and the council’s budget from using machines that filter tap water at the point of use. In October 2007, the Panorama team contacted every council in England and Wales to find out how much they had spent on bottled water, using the powers of the Freedom of Information Act. Hampshire County Council topped the list of bottled water expenditure with a whopping £141,215 spent on bottled water in the 12 months to October 2007. Sunderland county council’s bill topped £100,000, resulting in the council replacing its bottle-fed water coolers with 24 mains-fed machines. The BBC’s report found that the UK councils’ total bill came to more than £5 million. “We like to think that we're spending our tax payers’ money as wisely as possible, as well as looking after our environment,” said Marion Nash, Buildings Manager, Aylesbury Vale District Council. “However, we do accept that, in this area, there's a high iron content in the water, and some members of staff dislike the taste of tap water. Therefore, we meet their needs by using Tana Water’s mains-fed machines, which filter out impurities such as iron, lead, limescale and chlorine to make the tap water taste better.” About Tana Water Tana Water UK Ltd is a wholly owned subsidiary of Tana Industries, one of the world’s leading developers and producers of mains-fed water dispensers.
- Online Flava from MRC
UK-based Manchester Rusk Company Ltd (MRC) is responding to the growth of internet shopping by launching a new online shop for its Flava-it brand of marinades and coaters. Customers wanting to add flavours to meat and vegetables can now log on to <<1>">www.flava-it.co.uk]<1> to buy a selection of marinades such as Chinese Style, Barbeque, Hot & Spicy, Garden Mint and Tikka Masala and Peppersteak Coater. To help customers make the most of the marinades, recipe ideas such as Sizzling Barbecue Beef with a Smoky Tomato Relish, Chinese Chicken Pitta Pockets and Spicy Bean Salad with Hot & Spicy Potato Wedges, can be downloaded for free. The site also carries product news and information on stockists of the Flava-it range as well as details about the development of new products. MRC hopes that the new initiative increase brand awareness both at home and overseas, while also attracting interest from internet shoppers and retailers. MRC Marketing Manager Julie Nyunt said: "It is vital we keep abreast of modern purchasing habits. More and more consumers are using the internet to buy goods and have them delivered to their homes, so we want to respond to that growing trend." She added: "The online shop also gives us access to a wider customer base, potentially attracting more orders from overseas clients as well as from those within the UK. And of course it makes it a very convenient way for our customers to keep stocked up." <1>: http://www.flava-it.co.uk
- Crussh Juice Bars teams up with Carbon Clear
The UK juice bar specialist Crussh has partnered with carbon management specialists Carbon Clear to eliminate its carbon footprint and help support two projects that not only benefit the environment but also local communities in India and Central America. Crussh is also finding ways to reduce the impact its packaging has on the environment; paper pulp from sustainable forests and environmentally friendly soya inks are now being used by Crussh for its promotional materials. It is also introducing a recycling scheme for all the Crussh juice bars and to encourage customers to recycle their rubbish, plus investigating a special new biodegradable cup made from cornstarch. "At Crussh, we've always been committed to our customer's health," said Crussh Managing Director Chris Fung. "Now we're able to help make our planet healthier too. These projects not only work to eliminate our carbon footprint but also help to fight poverty, advance education and improve health in developing countries." About the projects The first project Crussh is supporting is The International Small Group & Tree Planting Program (TIST) in Tamil, India. This project aims to combat the problems of deforestation and simultaneously provide education and health benefits to local farmers. Since 2002 the small groups funded by TIST have planted more than 500,000 trees in India. The second project is helping the brick-making industry in Nicaragua to reduce its carbon emissions by 25,000 tonnes over the next five years. Creating more efficient brick kilns will not only reduce CO2 levels but stop forests from shrinking and encourage local entrepreneurs.
