The interim results of Whitbread Plc, the restaurant and hotel group, included the announcement of plans to continue the expansion of Costa, a UK coffee chain. While the group has 1,121 outlets in the UK and overseas, a recent survey has identified more than 400 UK locations where Costa is not yet represented. Stores are opening in hospitals, cinemas, garden centres, supermarkets and council leisure facilities. By the end of the year, Costa plans to have the largest coffee shop presence on UK motorway service areas, with about 50 stores. Overall, Costa is set to open approximately 200 stores in the UK this financial year. Overseas, 72 stores were opened in the first half. These included 11 new, joint venture stores and 61 new, international franchise stores, bringing the total number of overseas stores to 346 in 22 countries. * Costa results* Total revenues for Costa are up by 25.6% at £123.2m (€158m) on last year and total profit up 10.6% at £7.3m (€9.3m). Costa reported like for like sales growth for the first half of 3.7%. Although June and July had strong comparatives, sales in August increased by 4.5% year on year. Costa has seen substantial cost increases in raw materials such as coffee, milk and wheat. However, in anticipation of this, management took action at the start of the year, taking steps to improve operational efficiencies, and a small price increase was introduced in January 2008. Costa's international business posted a first-half loss of £1.2m (€1.5m), similar to last year. *Green coffee * Costa has announced its intention to convert its entire coffee supply to sustainably grown coffee beans sourced from Rainforest Alliance Certified farms. With immediate effect, at least 30% of the beans of Costa's Mocha Italia blend will come from certified sources, equal to about 1,200 tons of green coffee over the course of a year.

**Bottled water company Canadian Springs is to start charging a $0.25 deposit on 16oz (50cl) bottles in January 2009. **While the deposit will be standard for commercial and residential customers that buy from Canadian Springs, the company said it will also work with retailers that want to participate in the programme. Canadian Springs is hoping its success with a deposit programme for its refillable, 4.7 gallon (18 litre) bottles will carry over to its smaller products. The company boasts a 99% return rate on its larger bottles, on which it charges a $10 deposit. "We are trying to lead the bottled water industry to be truly responsible and push the Ontario government to take action," said Canadian Springs President Richard Stephens. “This deposit programme is a model for environmentally responsible packaging management that will result in the return of almost all Canadian Springs 50cl bottles. "Mankind clearly has the intelligence to create the products that are damaging our environment. Let us hope that we also have the wisdom to use those products in a more environmentally sensible manner." Deposit programmes are just one of the schemes being used to deal with the billions of plastic bottles being produced every year. While most efforts have focused on expanding residential recycling capabilities or encouraging reduced use of plastic bottles, Canadian Springs is taking a different step along the line of extended producer responsibility. The company is trying to get the customers it works directly with to give back the bottles instead of directing them to dispose of them through a general recycling programme. There has been considerable debate within the industry as to how best to manage the waste issue, but it's clear that the most effective option is a deposit return system. One only has to look at the overwhelming success of the deposit return system used in the beer industry to see the merits of such a programme for single-serve bottles. "Quite frankly, I've grown very tired of hearing of global corporate 'green washing' recycling projects that have diversified beverage companies position themselves as responding to the water bottles that litter our public spaces, our parks, our beaches, even our sidewalks," Stephens said. "The bottled water providers need to create a reasonable financial incentive to encourage consumers to dispose of their bottles properly and sensibly. In jurisdictions that have introduced such a system, the litter problem has been virtually eliminated." Government inaction Stephens expressed his frustration with the provincial government's general inaction on this matter. "We have been working with the Ontario government for almost two years to encourage appropriate legislation to deal with the problems being created by the single-use 15 litre water cooler bottles that have recently been introduced to the market place." These bottles are so large that municipalities have called for their outright ban as they cannot be processed through their recycling facilities. Despite numerous requests from various municipalities and with the support of most industry players, the Ontario Government has failed to act. The Quebec government has been much more responsive on this matter, having passed legislation in 2007 to ban these types of bottles. This inaction is particularly puzzling and frustrating in light of the fact the previous Minister of the Environment, Laurel Broten, had issued a demand letter asking the industry to voluntarily discontinue the sale of the non returnable, non reusable 15 litre bottles or else face a strong response from government. Despite assurances from the current Minister's office, the MOE has failed to take any initiative on this matter. "This is a case where industry can voluntarily decide to do the right thing and we hope that the MOE will choose to follow the lead of Canadian Springs on this environmental initiative," said Stephens. Canadian Springs believes the $0.25 per bottle deposit is set at the right price point ensuring the deposit is valuable but not prohibitive. "The fully refunded deposit hasn't been an issue for our 18 litre bottle customers, as it ensures the bottles' return and hence, environmental protection. We think the 25 cent deposit will be accepted by single-serve bottle customers. This is the responsible thing for us to implement and we expect a positive response from today's environmentally conscious customers. "This programme will allow us to almost fully ensure the return and recycling of our water bottles to keep them out of the landfill or from littering our environment. We have an agreement with Smart Plastic Recycling who will be managing our returned bottles as a valuable resource to be used in the manufacture of other plastic products." *Laurentian 1882 * This past summer, the company has also launched another major environmentally oriented initiative with the introduction of its Laurentian 1882 brand of natural spring water. The water is packaged in 75cl glass bottles which are both returnable and refillable. The water is produced in still and sparkling formats. The name refers to Canada's oldest bottled water brand, Laurentian, which has been produced and sold in Quebec since 1882. Members of the McCall family who are fifth generation descendants of the founder are still shareholders of Aquaterra Corporation, the parent company of Canadian Springs. The Laurentian 1882 products which are sourced and bottled in Quebec are being marketed to compete with the premium priced imported waters such as Evian, Perrier and San Pellegrino. "It makes absolutely no environmental sense to purchase water imported from Europe that's packaged in single-use, non returnable bottles when a great-tasting, high-quality, locally produced alternative is available in a returnable, refillable bottle. The carbon footprint on imported waters is ridiculous," said Stephens. Laurentian 1882 will soon be available to commercial and residential customers in Quebec and is available at finer restaurants. About Canadian Springs Canadian Springs is the nation's leading direct delivery provider of fresh natural spring water. For over 100 years, Canadian Springs and its affiliates have been refreshing homes and offices across the country. Canadian Springs is leading the industry with state of the art facilities, superior quality standards and refreshing new products to meet business and home customers' hydration needs. With almost 800 employees across Canada, 42 distribution centres and seven state-of-the-art bottling facilities, it's committed to providing its customers with the best in service and quality. Canadian Springs invests in company wide actions to protect the environment, from ensuring its packaging is managed responsibly to industry leading forestry and source water protection programmes around its natural springs. Canadian Springs is an operating division of the Aquaterra Corporation which was was formed in mid 2006 when France's Groupe Danone sold itsDanone Waters of Canada business to the Toronto based investment firmBirch Hill Equity Partners.

Sally Keeble complained to the Portman Group about ShotPak drinks, which are imported from the US and sold in 50ml plastic pouches. The pre-mixed vodka drinks are produced in four flavours: Apple Sour, Lemon Drop, Purple Hooter and Kamikaze. There are also full-strength vodka, rum, tequila and whisky versions, which are primarily marketed as STR8UP but which feature ShotPak branding. The Independent Complaints Panel, which judges complaints under the Portman Group Code of Practice on the Naming, Packaging and Promotion of Alcoholic Drinks, decided that ShotPak sachets could be mistaken for soft drinks. The drinks also breach the Code for encouraging rapid drinking after the Panel decided that their packaging overall incited consumers to drink them in one go. Additionally, the Panel decided that the flavour names ‘Purple Hooter’ and ‘Lemon Drop’ would have particular appeal to under-18s and that ‘Kamikaze’ is associated with self-destruction which could incite excessive drinking. Following the Panel’s decisions, the Portman Group will be issuing a retailer alert bulletin instructing retailers to stop selling ShotPak and STR8UP. David Poley, Portman Group chief executive, said: “These drinks may be acceptable in the States but their marketing falls well short of the standards that UK producers have set themselves. “Some of their names will be particularly popular in the playground. ‘Kamikaze’ is a blatant breach of our Code for its association with bravado and danger. These drinks do not spell out their alcoholic content and the images of fruit add to the confusion over what is in them. They cannot be easily re-sealed and their soft packaging makes it hard to stand them up. That’s why the Panel decided that this packaging is encouraging consumers to drink rapidly. Sally Keeble’s complaint will prevent these imported drinks from getting a foothold in the market.” ShotPaks are produced by Florida-based Beverage Pouch Group and imported into the UK by Chilling Rocks Beverages Ltd. The Portman Group’s Code of Practice The Portman Group Code of Practice on the Naming, Packaging and Promotion of Alcoholic Drinks applies to pre-packaged alcoholic drinks and the promotional activities of drinks producers. The Code covers a drink’s name and packaging, press releases, websites, sponsorship, sampling, branded merchandise, advertorials and all other promotional material. It does not apply to alcohol advertising which is regulated by the Advertising Standards Authority. The Code prohibits the marketing of alcoholic drinks to under-18s; the alcohol content of a drink must be made absolutely clear; its alcoholic strength should not be dominant; it must not encourage rapid or down-in-one drinking; there must be no association with illegal drugs, bravado, aggression or anti-social behaviour and any suggestion that the drink will lead to sexual success or increased popularity is also banned. All complaints are heard by the Independent Complaints Panel which is chaired by Sir Richard Tilt, former Director General of the Prison Service.

**Mains-fed water cooler manufacturer, Tana Water (UK) Ltd, recently launched a new carbonated water model at the Total Workplace Management Show, Olympia, London. **The T5 Fizz features an energy saving mode and delivers up to 30 cups of freshly filtered sparkling water per hour. Tana Water machines take water directly from the mains and use an activated carbon filter to remove chlorine, limescale and rust, and an 11 Watt ultraviolet (UV) bulb to protect the water after dechlorination. The ultraviolet lamp within the cold water tank kills all germs and the T5 Fizz will automatically stop working if the UV bulb fails. To conserve energy overnight and at weekends, the Tana Water T5 Fizz includes a preset 'sleep' mode. This feature has been shown to reduce energy consumption by 40%. Explaining the launch of the T5 Fizz, Tana Water UK MD Nick Heane said: “Tana Water has established its reputation for providing hot and cold POU machines in the healthcare and manufacturing sectors. Now a growing number of conference facilities managers have recognised the labour and cost savings from filtering mains water on site. Our customers want to offer guests the choice of freshly filtered hot, chilled or sparkling water with the convenience of sourcing all of their machines and service from the same manufacturer.” Tana Water has been providing mains-fed water machines to private and public sector organisations in the UK for 10 years, and is the only Water Regulations Advisory Scheme (WRAS) approved manufacturer in the UK that sells and maintains its own machines. All Tana Water machines are sold with a mandatory service contract to ensure regular and safe maintenance of the carbon and UV filters. All installation, maintenance and sanitising is carried out by WRAS-approved Tana Water engineers.

Fonterra is setting up a multi-million dollar project to help pregnant Chinese women and mothers in response to the poisonous milk crisis. Sanlu, a Chinese dairy company 43% owned by Fonterra, is one of more than 20 firms caught up in the scandal, in which the industrial chemical melamine was added to watered-down milk to boost protein levels. Fonterra's CEO Andrew Ferrier said: "We're obviously shocked by the degree of tragedy and we think that this is one way we can make a gesture that will help over the long-term in infants and maternal mother health." Fonterra will donate $5m to the China Soong Ching Ling Foundation over five years for a cooperative charity project to provide medical care and advice to pregnant women and the mothers of infants in rural communities. * *

A new initiative to connect the food trade and farmers across the Yorkshire and Humber regions in the UK has been launched in response to the current turmoil affecting the world's food industry. Farexchange has been created to understand the current and future needs of food manufacturers and consumers. Aimed at directors or executives of food and farming businesses, the scheme aims to develop sustainable value chains, linking manufacturers back to the region's farmers and growers to secure future supply. An initial three-year contract to deliver the 'not for profit' scheme has been won by the Farexchange Partnership, operationally led by the English Food and Farming Partnerships (EFFP) Ltd. Created specifically for collaboration projects, EFFP has the necessary skills to act as an interface between farmers, processors and food companies. This exciting venture was launched at a unique one-day event held in York and will be followed by a programme of conferences, seminars and individual business support meetings to offer practical advice and business experience on working with Yorkshire agriculture. The northern link Due to its diverse and productive agricultural sector, Yorkshire is probably one of the largest food producing regions within the UK. To ensure future growth, projects like Farexchange are vital to fill gaps in the infrastructure so that new businesses, joint ventures and partnerships may be formed. The project is the culmination of two years' work by Yorkshire Forward, whose commitment to delivering enhanced economic activity to benefit the region led to the establishment of this worthwhile scheme. It's believed to be the first of its kind in the UK and will be delivered in conjunction with the National Farmers Union, Country Land Association, Yorkshire & Humber Regional Food Group, EBLEX, BPEX, Yorkshire Agricultural Society, Bishop Burton College and Askham Bryan College. Yorkshire Forward's Food and Drink Sector Manager John Sorsby said: "The Farexchange scheme is an integral element of Yorkshire Forward's multimillion pound investment in supporting the Food and Drink industry in the region, and has a clear focus on innovation and supply chain development. It also delivers innovation by connecting the high quality produce the region has to offer with supply chain opportunities, linked to authenticity and trust, which have high importance as we continue to ride the economic turbulence."

*Food and beverage processors in the EU have until January 2010 to comply with new labelling requirements, according to DD Williamson. * Any food placed on the market before this deadline will be allowed to stay on the shelf until the sell-by date has been reached. The synthetic colourings are: Allura Red AC (E129 = Red 40), Tartrazine (E102 = Yellow 5), Sunset Yellow FCF or Orange Yellow S (E110 = Yellow 6), Quinoline Yellow (E104), Carmoisine or Azorubine (E122), and Ponceau 4R or Cochineal Red A (E124).

Yili, China’s leading ice cream manufacturer and an official sponsor of this year’s Olympic Games in Beijing, has developed an Olympic torch of its own in the form of a novelty ice cream. The Chinese company soon realised that some special efforts would be needed produce these special ice creams and be ready for the arrival of the Olympic torch in Beijing. So Yili turned to Tetra Pak to come up with a solution for high capacity, automated processing. Produced on a Tetra Hoyer Comet C filling machine, the automated version of the novelty ice cream is a remarkably close match to the original. Thanks to the machine’s servo ice cream doser and rotary device, Yili has achieved the required production capacity and reduced its dependence on manual labour considerably. The machine is one of four Tetra Hoyer Comet C fillers ordered by Yili in 2007. This year, the company upped its order to nine – overturning an earlier decision to buy five machines from a local competitor at half the price. The key factors in Yili’s revised decision were the proven stability of the Tetra Hoyer technology, flexibility in product changeovers and the consistent quality of the final products. Despite the higher price, Yili felt that the prospect of an excellent return on investment was sufficient reason to increase their investment budget. Ruby Fang, ice cream plant sales manager at Tetra Pak China, is highly satisfied with the increased Yili order: “When we first started talking to Yili about this project, they only wanted to buy four filling machines from us,” she said. “We spent a lot of time preparing documents for Yili’s management to illustrate the advantages of our machine. It was also important for us to have the right understanding of industry trends and our customer’s needs. That meant the discussion with the customer was focused upon the values.”

* Industry leaders and businesses were urged to scale up their engagement with Fairtrade to help tackle poverty in developing countries at the annual Commercial Conference (16 September) entitled 'Tipping the Balance', held by the Fairtrade Foundation in London. * 'Tipping the Balance' is also the name of the new five-year strategy launched in February aimed at achieving a fourfold expansion by 2012 to £2bn, and making Fairtrade the trade norm rather than the exception. “The scale and level of poverty worldwide demands that businesses and consumers urgently need to play their part to scale up Fairtrade," said Harriet Lamb, Executive Director of the Fairtrade Foundation. "And in these tough economic times, people in developing countries who typically spend over 50% of their income on food are the most severely affected. In Kenya recently, a farmer told me that a bag of maize had increased by 100%." The call to action comes in the run up to a high-level UN event on 25 September to renew government and business commitments to meet 2015 Millennium Development Goals (MDGs) at the halfway point. The Secretary of State for International Development, Douglas Alexander, said: "We congratulate all businesses who have helped put Fairtrade on the shelf, and call upon the business community to take Fairtrade to the next level, making it more mainstream still. The retail industry can open doors to more farmers in developing countries and play their part towards the MDGs by enabling shoppers to support Fairtrade every day." * Continued growth* Sales of Fairtrade products for April to June 2008 grew by 55% from an estimated retail value of £113m to £176m in the same period last year. Volume, the best indicator of the amount of Fairtrade premiums that go back to producer groups to spend on community development projects, such as classrooms and clinics, increased by 42% in food alone. Sugar (including retail, catering and composites) increased in volume by 467%, an increase in sales value from £10m to almost £24m. Tea grew in volume by 186%, an increase in sales value from just under £7m to almost £16m. According to recent TNS figures, Fairtrade certified foods have increased their market penetration 61% to 70% over the last year (from 15.2 million households to 17.5 million), meaning that an extra 2.3 million households now purchase Fairtrade certified food products. Major category switches by Tate & Lyle, the Co-operative and Sainsbury’s have largely contributed to this increase in Fairtrade sales, but sales generated by dedicated Fairtrade companies such as Cafédirect, Divine Chocolate, AgroFair fruit company and the new Fairtrade nut company Liberation have also made their mark. Core categories such as bananas and coffee continued to show a steady growth of 27% and 23% in the second quarter of 2008 respectively. Iain Ferguson, CBE, Chief Executive of Tate & Lyle plc, one of the keynote speakers, said: “We have had an excellent response from consumers to our switch to Fairtrade, and we've seen good volume growth in key customer accounts, somewhat ahead of our expectations.” Fairtrade Fortnight 2009 The theme for Fairtrade Fortnight 2009 (23 February – 8 March) 'Make it happen. Choose Fairtrade', was also unveiled to conference delegates. Companies were encouraged to build on last year’s success, which saw several all-important conversions to Fairtrade from major high street companies. Fairtrade Fortnight presents companies with a unique opportunity to market Fairtrade and is the perfect time for companies to improve visibility at point-of-sale, or even consider extending their range of Fairtrade certified products.

Shoppers are being given five reasons to go nutty this Saturday on World Fair Trade Day (May 10) and celebrate the day by buying the delicious range of cashew and peanut snacks from Liberation, the world's first 100% Fairtrade nut company. The company has given the following five reasons: 1. Liberation nuts are baked using just a drizzle of oil which makes them a healthier choice than nuts which have been roasted in oil. 2. Because they are high in protein, just a handful of nuts will fill you up and stop you reaching for the biscuit tin. 3. Peanuts are full of vitamin B6 which is well known as a stress-buster and the magnesium in cashews can help deal with mood swings, anxiety and irritability. Cashews also contain oleic acid which is known as a heart healthy fat. 4. More than 22,000 farmers from co-operatives in Africa, Asia and Latin America who supply Liberation co-own the company and benefit from its success. 5. Thanks to sales, the loved ones of hospital patients in Mchinji, Malawi, who have travelled miles to get family members and friends medical care, have somewhere to sleep and cook next to the hospital. A special shelter has been built using Fairtrade premium money to provide them with much-needed protection from the elements. People who buy from the delicious Liberation range of mixed cashews and peanuts can choose from four flavours - lemon and a hint of chilli, a hint of smoked flavour, lightly salted and natural (no added salt).

Formulators seeking to reduce ingredients such as sugar, salt or fat can now using a patented Encapsulated Aroma Release technology from ScentSational Technologies. New research from INRA in Dijon, France, which investigated the interaction between aroma and saltiness, indicates that "when a consumer expects a certain flavour, the perception of saltiness is enhanced; and that change in taste perception comes through aroma". In addition, the researchers concluded that "aroma-induced taste enhancement could be used to compensate for the taste of fat and sugar content in foods formulated along healthier lines – for example, butter or cream aroma could enhance the perception of creaminess." ScentSational has long demonstrated these facts in its consumer research into the efficacy of its CompelAroma technology that encapsulates flavour molecules in plastic, which helps to keep them fresh and stable. “Once flavours are added directly to food and beverage ingredients, they mix chemically, resulting in loss of aroma profile and degradation due to oxidation and other atmospheric conditions,” said Steven M Landau, chief technology officer, ScentSational Technologies. “Encapsulated Aroma Release locks those flavours in the packaging material, which helps them stay stable significantly longer than when added directly to the contents.” ScentSational’s CompelAroma Encapsulated Aroma Release technology adds FDA-approved food grade flavours within the structure of rigid or flexible, plastic packaging components at the time of manufacturing, ready for release at point of purchase, package opening, product preparation or consumption.

Beverage Innovation magazine, in partnership with UNESDA – the Union of European Beverages Associations, has announced that the 2009 beverage innovation awards will be a feature event at drinktec in Munich in September 2009. The local partner for the event is WAFG – the German Alcohol-Free Drinks Association. Drinktec, held every four years at Neue Messe München, is the world’s largest beverage and liquid food technology trade fair. With a predicted 70,000 plus visitors in 2009, it represents a perfect fit for the beverage innovation awards, which are now in their fifth successful year. Categories and a call for entries will be announced on 1st September 2008, providing the event’s sponsors with the opportunity for a full 12 month promotional programme. The judging panel will include brand, nutrition and environment experts. There will be awards for best new juice, functional, energy, adult and dairy drinks; best newcomer brand or business; best new ingredient; best marketing campaign; best environmental, ethical, sustainability and health initiatives; as well as a wide range of packaging awards. Beverage Innovation Editor Claire Phoenix commented: “drinktec represents a unique opportunity for the whole non-alcoholic beverages industry to come together and celebrate innovation in product development. The Best Overall Concept winner at this year’s event in Moscow was a product which was completely on trend with a simple and natural offering, while other winners demonstrated the increasing importance of health and wellness ingredients, marketing, education, and environmental and ethical agendas. Major players and entrepreneurs all benefit from this acclaim.” drinktec: unique selling point “All parties see the benefit of this combination which will add value to the event,” said Exhibition Director Petra Westphal. “By representing the entire beverages industry, drinktec has a unique selling point as the world’s leading sector meeting place. It makes sense that the beverage industry should celebrate innovation in Munich.” “The non-alcoholic beverages industry is highly innovative, offering consumers a wide variety of choice. In the past three years there has been a strong focus on low and no calorie products as well as drinks with particular health profiles and ingredients,” commented UNESDA Secretary General Alain Beaumont. “We are delighted to partner with Beverage Innovation magazine in showcasing the wealth of innovation in the sector.” “One of drinktec’s strengths is that it is held only every four years,” added Zenith International Publishing Group Editorial Director Bill Bruce. “Visitors see a real step change in the way the industry is responding to the varying demands of the marketplace and setting new trends through innovation in packaging and ingredients. We are convinced that the awards will reflect the most exciting developments in the industry and we aim to ensure the gala dinner is the biggest ever held in the sector in Europe.” SPONSORSHIP For more information or to enquire about sponsorship opportunities, contact <1>. <1>: bill.bruce@zipublishing.com