Newsletter 16 January 2014

 
16 January 2014
 Your weekly food-drinks industry
news
and insights…
SmartStuff:    “Pour yourself a drink, put on some lipstick and pull yourself together.”  Elizabeth Taylor

PolyPET
 

Editor’s Stuff: Welcome to 2014, the year of … ?
 
Welcome to the first newsletter of 2014.

I don’t know how to finish the sentence in the headline above, and I suspect you don’t either.

Every food-beverage processor could probably give it multiple and different endings, but it’s a sure bet that one of the biggest issues facing all producers is the besieged and volatile Rand; and coping with the costing issues that come with it.

Aside from that, maybe there is a big project for 2014 at your company or your factory? An expansion or new plant, or perhaps a major new product is about to be launched? Maybe you’re aiming to secure a new food safety/quality certification? Or tackling a packaging revamp, or a revision of recipe formulations? Aiming to better your distribution?

We may be at the start of a brand new year, but 2014 appears to hold most of the same issues and concerns that 2013 held. That’s no surprise, really. But how will you respond?

Trust you are raring to take up the challenges of the new year – they are certain to be plentliful!

Enjoy this week’s read!
 
Brenda Neall: publisher & editor
 
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  Local News and Developments

New-shape Pioneer Foods looking ready for growth?
Many shareholders in Pioneer Foods may need to pluck up their courage to participate in the unbundling and separate listing of its poultry and egg business, Quantum Foods, later this year. The poultry industry is not having a good time. On the other hand, the recent merger of Pioneer’s consumer brands segments, Bokomo Foods and Ceres Beverages (CB), should fatten margins. 
 
Govt moves to cut chicken brining levels
The poultry industry has been given a year to adjust its brine levels to a maximum of 15 percent in individually quick frozen (IQF) chicken portions, down from the level of 30 percent currently allowed, following plans announced by the Department of Agriculture, Forestry and Fisheries to amend the regulations.

ADM subsidiary invests in SA peanut producer

Golden Peanut Company, a wholly owned subsidiary of the giant US group, Archer Daniels Midland Company (ADM) and the world’s second-largest private company after Cargill, has acquired an 80% percent ownership stake in the assets of P-Farm Agents, one of SA’s largest peanut processors, and 50% ownership of South African Pecans.  

Sales of immature avos prohibited
Thanks to new agriculture legislation, avocado growers have been warned to ensure that their fruit is properly matured before harvesting, as the sale of immature avocados is now prohibited. 

Premium SA wine producers set up new accreditation scheme
South Africa’s iconic winemakers have come together in a rare display of unity to create a new association intended to build South Africa’s reputation as a producer of world-class wines and promote the Cape’s unique wine heritage.
 

Label Summit Africa 2014 to address critical issues in labelling and packaging

The speakers and program for Label Summit Africa 2014 have been announced as the two-day conference and table-top exhibition prepares to return to the Cape Town International Convention Centre (CTICC) between 10-11 March.  

OBITUARY: SABMiller’s giant, Graham Mackay, passes away

Graham Mackay, the man credited for turning SABMiller into the world’s second-largest brewer, died on December 18, 2013, at the age of 64, after battling a brain tumour. 

In case you missed it: Pioneer opens new eco-friendly R0,5bn KZN bakery
Pioneer Food Group officially opened its new “green” R470m Sasko bakery at Shakaskraal, north of Durban, yesterday, 5 December 2013, giving it better access to the KwaZulu-Natal market.
Kerry Citrus
 
 

 International Developments

Beam deal propels Suntory into major league of global drinks firms
Japanese drinks maker Suntory has announced a $16bn deal to buy spirits group Beam, the maker of Laphroaig whisky, Jim Beam bourbon, Sauza tequila and Courvoisier cognac, to name a few of its tipples, and propelling it to number three in distilled spirits behind Diageo and Pernod Ricard. 
Global compaign takes aim at high sugar foods
With a media blaze of publicity in the UK, a campaign group, Action on Sugar, has been formed to reduce the amount of sugar added to food and soft drinks in an effort to tackle obesity and diabetes in the UK. 

US processors exceed calorie-cutting goal – early

Sixteen of America’s largest food and beverage processors in two years have exceeded their five-year goal of removing 1.5 trillion calories from American food. That translates into 78 fewer calories per person in the US each day. 

US: PepsiCo’s first premium water makes an appearance
 
Looking for ways to fill the gaps left by falling soda sales, PepsiCo has launched its first premium water in the US to compete with the likes of such trendy brands as Evian, Smartwater and Fiji. The new “Qua” water made its debut at last night’s Golden Globe awards.

Danone to sue Fonterra over botulism recalls

Danone has terminated its existing supply contract with Fonterra and plans to sue the dairy exporter over the whey protein concentrate Clostridium botulinum contamination scare that led to product recalls across Asia, Australasia and the Middle East.

 Trends, Marketing and NPD

12 Key Trends in Food, Nutrition & Health 2014

Every year, highly-regarded UK think-tank and research company, New Nutrition Business aims to entertain and inform its customers with its annual analysis of the Key Trends in the business of food, nutrition and health. It’s used by the smartest companies in the world – from global giants to two-person startups.  

Health & Wellness goes mainstream: living in a culture of well-being

Not so long ago, people just wanted more control over their health. At some point in the 2000s, The Hartman Group’s research shows, that desire broadened to include other quality-of-life markers such as celebration, fun and emotional and spiritual balance. Its new analysis, A Culture of Wellness, makes clear that the drive toward health and wellness is now fully ingrained in consumers’ daily lives. The goal of having a long, healthy, balanced life has become part of the culture rather than a lifestyle choice or an alternative movement. 
Mintel releases American consumer trends for 2014
Chicago-based market intelligence firm Mintel has released its key four consumer trends that it believes will impact consumers in 2014… 

Global demand strengthens for ancient grains

Global new product launches featuring quinoa grew nearly 50% in the year ended Sept 30, 2013, and have risen more than five-fold over a five-year period, according to Innova Market Insights. The increases reflect an overall interest by consumers in ancient grains and their nutritional properties, as well as the unique flavours that they can add to a wide range of food and drinks products.  

Ancient amaranth on the move

There’s a huge revival of interest in ancient grains… this article takes an in-depth look at one of them, amaranth, the highly nutritious broad-leafed plant native to Mexico, and cultivated in Mesoamerica for approximately 7,000 years.  

Will the stand-up pouch save packaged soup?

Metal food cans are considered a pack type from a bygone era. This is a problem facing metal food cans all the way down the canned food aisle, but it is particularly pertinent in relation to soup… Euromonitor research analyst, Daniel Grimsey, discusses this trend. 

Ten trends that will shape our world in 2014 and beyond

As the year winds down, December is an exciting time to look ahead. In its ninth annual forecast, JWTIntelligence shares ten key trends that will drive consumer mind-set and behaviour for 2014 and beyond.  
SC Products

 Food Science, Technology and Ingredients

Plant-based sweeteners continue to steal market share

Post EU approval, stevia has been quietly gaining traction with consumers, and alongside that, usurping the traditional pecking order of more established sweeteners. A new report from Mintel and Leatherhead Food Research highlights the opportunity for such plant-based sweeteners.  

Firmenich tips blackberry as “Flavour of 2014”

Firmenich predicts that blackberry, the subtly sophisticated berry, is the Flavour of the Year for 2014. According to the company, it has been gaining popularity as health and nutrition have become a top priority for consumers.

US: Evolution Fresh taking cold pressed juices to new heights

California juice company, Evolution Fresh, now owned by Starbucks, has recently invested $70-million in a new 24,500m2 production facility that’s likely to change the future of cold-pressed juice. 
Is ozone the next sanitation superstar?
As processors gain greater understanding of the efficacy and proper application of ozone for equipment cleaning and direct contact with food, this oxidative molecule’s use in food processing will soar.

ICYMI: PepsiCo and Coca-Cola creating the cola of the future
To reverse category sales slump, soft-srink marketers partner with biotech companies to find low-sugar drinks that also taste good. The next chapter in the cola-marketing wars could be influenced as much by science labs as TV commercials.

Aspartame safe at current levels, concludes EFSA, again

Aspartame poses no threat to consumers at current recommended levels of consumption, the outcome of a recent European Food Safety Authority (EFSA) risk assessment has concluded

 Health and Nutrition

Multivitamin researchers say “case is closed”

Questions about the health benefits of vitamin supplements have been percolating in the medical establishment for decades — even as the multivitamin industry has grown to a multi-billion powerhouse. In December, the respected journal the Annals of Internal Medicine put its well-heeled foot down

Moderate coffee consumption does not lead to dehydration

New research, published in PLOS ONE, has found no evidence for a link between moderate coffee consumption and dehydration. 
Study assesses how fibre prevents diabetes and obesity
Scientists have known for years that a fibre-rich diet protects the organism against obesity and diabetes but the mechanisms involved have so far eluded them. A French-Swedish team of researchers has succeeded in elucidating this mechanism, which involves the intestinal flora and the ability of the intestine to produce glucose between meals.

 Weird, Whacky and Wonderful Stuff

Here’s how close we are to real 3-D-printed food

US company, 3D Systems has unveiled its new line of ChefJet 3D sugar printers – just as the name implies, the ChefJet will allow any professional kitchen to incorporate “stunning edible prints” with minimal effort – that is, for foodies willing to fork out some serious dough.  

Smoking alcohol: A dangerous way to get drunk

To get drunk, people are getting strangely creative. But a new form of drinking, known as “smoking” alcohol, has doctors concerned.  

Food bites…2014: Where’s the pouched food aisle?

“THE prospect of stand-up pouches emerging as a key packaging format in other categories, where their combination of light weight, easy opening and eye-catching futurism is appealing, is strong.

   “Such opportunities particularly exist in stagnant or declining canned/preserved food categories, where the unenticing reputation of the metal food can as an old-fashioned pack type indicates the need for a major transformation in order to regain consumer interest.

   “It is uncertain at this early stage to what extent stand-up pouches will take over categories previously dominated by metal food cans, but it is possible that one day consumers will no longer walk down the canned food aisle in supermarkets, instead walking down the “pouched food aisle”.

Daniel Grimsey, Euromonitor Research Analyst, read more
 
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Brenda NeallPublished weekly as part of www.foodstuffsa.co.za and www.drinkstuff-sa.co.za, this newsletter is a cherry-picking, agglomerating service for all food and beverage industrialists. It aims to be topical, insightful, provocative, intelligent… fast, fresh and full of additives!
FOODStuff SA and DRINKStuff SA, websites with reams of pertinent and interesting stuff about FMCG food-beverage manufacture from farm gate to retail shelf, are published and edited by Brenda Neall. For editorial and advertising matters, contact her at: [email protected]