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Oil & Food Journal Vol. 08, Issue 08, June 2013

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Oil & Food Journal Vol. 08, Issue 08, June 2013

Food Processing & Packaging Systems

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Oil & Food Journal Vol. 08, Issue 08, June 2013

Vol 8 Issue 8 June 2013

My love for ice cream emerged at an early age - and has never left! And summers are synonymous with ice-creams.

he formidable Indian summer is attracting a host of international ice cream brands. Magnum, Unilever’s biggest ice cream brand globally, entered India a few weeks ago. It was followed by the U.S.-based Mini Melts. Ben & Jerry, a wholly-owned subsidiary of Unilever, is also expected to enter India soon. Other international premium brands such as Baskin-Robbins, Haagen-Dazs, London Dairy, and Movenpick are already present in the country and vying for a share of the ice cream segment. According to New Delhi-based research and consultancy firm Technopak Advisors, India’s frozen desserts market is expected to cross $900 million by 2014-2015. India’s tropical climate makes it a dream destination for frozen desserts. Moreover, frozen desserts and ice cream is trending into an all-season product, hence enhancing the nation’s consumption potential. At present, the per capita annual ice cream consumption in India is a mere 0.1 liter. In New Zealand it is 28.1 liters, and in the U.S., it is 20.8 liters. Traditionally, the Indian market has focused on ‘out of home’ products, but improved cold chain distribution, increasing affluence plus greater availability of domestic cold storage is influencing behavior. Penetration of refrigerators in urban India rose to 41% in 2012 from 32.9% in 2009 while in-home consumption of frozen desserts has been rising 25-30% year-on-year compared with 20% for out-of-home varieties. Devyani Food Industries, the New Delhi-based manufacturer which owns the Cream Bell brand, says its in-home share has risen 16% from 10% four years ago and expects consumption of larger pack sizes to grow over the next decade. Meanwhile, the Amul brand, made by the Gujarat Cooperative Milk Marketing Federation, has seen sales of its takehome packs increase to 50% from 30% a few years ago and has launched a dozen new products in family pack sizes. International brands have not been slow to boost their presence in the growing market. Magnum, Unilever’s biggest ice cream brand, entered the market a few weeks ago while Ben & Jerry – another Unilever brand – is expected to enter soon. Growing involvement by international brands is also influencing their domestic competitors, which recognize the appeal of the premium market. Well next on agenda is the war between ice cream and frozen dessert. FM channels this summer are full of ads eulogizing the virtues of ‘real’ milk ice creams over frozen desserts, which are made primarily from vegetable oil. The message from India’s largest ice cream player was loud and clear: Go for Amul and not frozen desserts, offered by Kwality Walls and Vadilal. It is for the first time since Amul entered the ice cream business 17 years ago that the dairy giant is going all out to defend its milk-based ice creams from the onslaught of frozen desserts over a mass medium. And it is not without reason: Frozen desserts have grabbed nearly 50 per cent share of the Rs 1,500-crore organised ice cream-plus-frozen desserts market in India. In fact, Amul and HUL sparred over the category last year and it was upon Amul’s complaint to the Advertising Standards Council of India that Hindustan Unilever was forced to begin referring to its wares as frozen dessert and not ice cream. Even in terms of value (revenue) market share, frozen desserts are giving milk-based ice cream makers such as Amul and Mother Dairy a tough fight. While Gujarat Co-operative Milk Marketing Federation (GCMMF) is expected to lead value sales in ice cream with a share of 31 per cent in 2012, Kwality Walls has strengthened its position with a 20 per cent share in 2012, according to research firm Euromonitor International. Frozen desserts are masquerading as ice creams. With the low cost of ingredients, they must be priced at 30 per cent less, but that is not the case. Amul’s anti-frozen dessert campaign is trying to make consumers aware of the difference. Milk-based ice cream makers are going all out to establish their products as the real thing, consumers are not likely to give up on frozen desserts anytime soon. But with the backing of big brands, the growth of frozen desserts is unlikely to slow down. The only way for ice cream makers to stay ahead is through product innovation and introduction of newer flavors. Equally relished by the Indians is the age old kulfi, a delightful candy made with thick milk to which dry fruits and saffron have been added. It is traditionally made and sold by the vendors who park themselves at crowded areas. Without any aid from fancy marketing tools, it is the unique taste of the kulfi home churned by these vendors which becomes their brand. Making kulfi is a long drawn, painstaking task which requires lot of hard work. The prices too have to be competitive as ice-creams cost as low as Rs 25 for a scoop. But the true connoisseurs of taste still prefer the subtle flavors of thick frozen seasoned milk over the artificially flavored and coloured ice-creams. Mother Dairy entered the Mumbai market around four years ago and is now poised to figure among the top three ice cream players this year. But with the Mumbai market captured, the subsidiary of National Dairy Development Board (NDDB) is now on a national expansion drive. The company is planning to cater to the top 25 cities in the country which account for 80% of the country’s Rs 1800 crore ice cream market. A key challenge for the company would be to topple the local players in different states across the country. For example, Gujarat and New Delhi together account for one third of the country’s Rs 1800 crore (approx) ice cream market and in the former state Vadilal is one of the prominent players. In Mumbai, Vadilal, Amul and Kwality Walls are the players leading the race and Mother Dairy is very near to break into that club soon, according to the company’s own market research.

Oil & Food Journal Vol. 08, Issue 08, June 2013

Contents Does the availability of snack foods in supermarkets vary internationally?

Introducing KAMANI FOODLITE Premium Culinary Oil

Laws Governing The Food Industry In India – Revisited

Natural Colors in Confectionery Applications

The Food Safety Challenge of the Global Food Supply Chain

How does the organic industry regulate processing aids?

News Edible Oil News Cargill eyes larger food play in India in edible oil business Edible oil Industry pushes rice bran oil as an alternative to olive oil Majority preference now for branded edible oil Imports of edible oils, pulses also rise India issues tenders for 12,000 tonnes of palmolein from Malaysia, Indonesia Rice bran oil market likely to grow by 15 per cent this year: SEA Soybean Crop in India Seen at Record as Rally Spurs Planting Ruchi Soya announces Joint Venture with J Oil Mills and Toyota Tsusho Corporation International Organization for Rice Bran Oil to Be Formed Indian Oil Corporation Develops Technology to Make Jatpha Oil Biodiesel Dairy News J K Group to foray into flavoured milk business Amul Dairy plots US production Benefits under new dairy equipment scheme After white revolution, dairy cooperatives aim for green cover Confectionery News: DS Group expects confectionery business turnover to double in FY14 Varun Berry to head Britannia India biz, Vinita Bali to look abroad UK Supermarkets Have Longest Confectionery Aisles Health : the new black in the confectionery industry Mars launches eggless snickers for veggies Ice-Cream News How Mother Dairy is planning to serve its ice creams nationally ‘Connoisseurs still prefer age old kulfi over ice cream’ Global Ice Cream Brands Home in on India’s Growing Affluent Class Beverages News A leap of faith for the beverage industry Tea Board moots mapping of tea factories At Naturex, fruits and vegetables take the plunge into food & beverage products Beverage maker Coca-Cola launches online store in India; is it looking at multi-brand e-tailing?

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Oil & Food Journal Vol. 08, Issue 08, June 2013

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Does the availability of snack foods in supermarkets vary internationally?

here has been a continued growth in global obesity rates over recent decades although the trajectory of these increases has varied across developed nations [1,2]. The higher prevalence of obesity has put large numbers of individuals at increased risk of type 2 diabetes, cardiovascular diseases and some cancers [3-5]. Snacking behaviours have increased in parallel with obesity prevalence [6-8]. Evidence has linked the increased consumption of energy-dense snack foods with greater waist circumference in adults [9] while sugar-sweetened beverage consumption (e.g. soft drinks) is increasingly implicated in the development of obesity [10]. Although existing studies allow us to assess snack food consumption in individual countries [7,11-19], international comparison studies remain relatively rare. Those studies including data from multiple countries consistently report large differences in purchasing and/or consumption across countries [20-25]. Environmental factors including opportunities to purchase and consume food are increasingly seen as an important determinant of dietary behaviours [26]. Within food stores, consumers are faced with variations in the quantity, quality, price and marketing of food items [27-30]. Supermarkets are a major source of food for many households as they are usually highly accessible (both in terms of location and opening hours) and enjoy market domination in food/grocery retail expenditure in many developed nations (including Australia [31,32], Canada [33], Sweden [32], the US [34], and the UK [35]). As a setting for within-store food availability research, supermarkets are therefore an important priority. Supermarket retailers have long known that the placement and marketing of products is a key eterminant of purchasing decisions with marketing tactics being particularly important for sales of impulse items in comparison with staples [30,3640]. Market research findings have demonstrated that almost two thirds of in-store food purchasing decisions are unplanned, [41] highlighting the potential for purchasing and consumption to be influenced by within-store displays and particularly those in highly visible areas (e.g. at end-of-aisles and checkouts). Our previous assessments of the supermarket snack food environment (from Melbourne, Australia) showed snack foods to be almost ubiquitous at supermarket checkouts, and extremely common Oil & Food Journal Vol. 08, Issue 08, June 2013

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in end-of-aisle displays and temporary island bins [42]. A significant amount of supermarket shelf space was also dedicated to snack foods and soft drinks as static displays in aisles [43]. The few other studies of supermarket snack foods conducted to date have been restricted to individual cities [44-48] with the exception of Farley et al. who conducted one study across 19 US cities [49] and another across two US cities [50]). These two US studies also concluded that snack foods were readily available within a range of retail food store types [49,50]. All previous studies have limited comparability because of the use of an assortment of measurement techniques and no international comparisons have been previously published. In the present paper we use data gathered in a standardized manner from supermarkets in eight different countries to examine the availability of snack food (potato chips, chocolate, and confectionery) and soft drinks in the shelves, at checkouts and in end-of-aisle displays. Shelf space of fruit and vegetables were also assessed for comparative purposes. Our focus on energydense snack foods and soft drinks was based on the above mentioned established links between consumption of such products and health and the fact that consumption of such products is common across the eight developed countries. International comparison studies of the within-store food environment such as this are an important way of placing local findings into a global context and can provide significant insights for policy and advocacy toward healthier food environments.

Methods

Sampling A total of 170 supermarkets were audited across selected cities in eight developed countries (Table 1) using a standardized audit tool (Additional file 1: Appendix A). The study involved an international collaboration with data collection in each country organised by the local research team. Many of the auditors had face-toface contact with the lead investigators (LET & AJC) prior to the collection of data and each auditor was provided with the audit tool and a detailed instruction manual (including photographic

instructions) (Additional file 1: Appendix A). A more expansive audit tool was used for the data collection in Australia, Canada (Montreal only), Denmark, and the Netherlands but some measures were removed (e.g. variety, price, island bin displays) for the remaining countries to reduce auditor burden and to keep only those features that were readily comparable between countries. Auditors contacted the lead investigators with any questions that arose during data collection. The data collection for Australia took place between September 2010 and February 2011 whilst the audits for the other countries were conducted between May 2011 and July 2012. In Australia [43], Denmark, the Netherlands and Canada (Montreal only) supermarkets were sampled from neighbourhoods within the least and most socioeconomically disadvantaged areas. While auditors were instructed to sample from a representative range of areas, no explicit sampling criteria were followed and auditors sampled from their cities of residence or other region convenient to them. Therefore, the actual areas sampled should be considered a convenience sample. The local supermarket retailers from each region were included in the audits. In some countries this meant only a limited number of chains were sampled whereas elsewhere multiple chains were sampled as this reflected the increased diversity with the local supermarket industry. The project proposal for data collection in Melbourne was assessed by a Human Research Ethics Advisor from the Office of Research Integrity at Deakin University who advised that ethics committee approval for the study was unnecessary because data collection did not involve personal disclosure. Ethical assessment was the responsibility of each collaborator where it was required by their host institutions. In each instance ethics approval was not required as this research did not involve human participants. Auditors gained consent from store managers prior to taking any measurements within a store. Data collection Items included A universal definition of â&#x20AC;&#x153;snack foodâ&#x20AC;?

does not exist [51,52], and for the purpose of this research we restricted

our definition to food and beverage types that are often consumed outside of the three main meals and would be considered high in energy, high in sodium, and/or low in micronutrients. These items included potato chips (crisps) (includes corn chips but not savoury crackers or pretzels), chocolate (either as chocolate bars, blocks, boxes or bags), confectionery (candy) (excluding mints and chewing gum) and soft drinks (soda) (both diet and regular). Each of these product types were easily identified in distinct sections in most supermarkets, readily available in the eight included countries, and form part of a typical Western-style eating pattern. Both diet and regular soft drinks were included because they are often interspersed within the same shelves (i.e. not stocked in separate sections) preventing us from taking separate aisle length measures for these two products. Fruit and vegetable availability was also measured (fresh products only, not tinned, dried or frozen) to allow an assessment of the ratio of snack foods to fruits and vegetables within stores. Shelf space The total aisle length (in meters) dedicated to each of the four snack food and beverage groups (i.e. potato chips, chocolate, confectionery and soft drinks) was measured using a measuring wheel or measuring tape. This involved measuring from the point in the aisle where the snack food category began to where the display of that category ended. In the stores from the Bethesda/Washington DC area, a measuring device was not available and instead the length was determined by calibrated length of paces. If an item (e.g. confectionery) was displayed in multiple aisles, the total length across the multiple aisles was summed. For fruits Oil & Food Journal Vol. 08, Issue 08, June 2013

Checkouts and end-of-aisle displays Auditors assessed whether snack foods were available at each checkout and at end-of-aisle displays at both the front and the back of an aisle. Using a checklist, the presence of each of the following items was recorded: 1) potato chips; 2) chocolate; 3) confectionery; 4) soft drink â&#x20AC;&#x201C; regular; 5) soft drink â&#x20AC;&#x201C;diet. Multiple item types could be recorded for each checkout or end-of-aisle display. Store size Total store size was calculated as total length of all aisles in the supermarket

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measured using a measuring wheel, measuring tape, or calibrated paces. Analysis The estimated marginal mean of the total aisle length of snack food items and the aisle length of individual snack food items was calculated adjusting for total store size across all countries. The ratio of aisle length dedicated to snack foods compared to fruits and vegetables was calculated by dividing the total aisle length of snack foods by the total length of displays of fruits and vegetables. Shelf length of each product type and the ratio of snack food to fruits and vegetables for each country were ranked from the most (1) to the least (8). The proportion of total snack food aisle length dedicated to each of the snack food and soft drink items was calculated for each store to produce a within-country mean. This measure allowed us to assess the relative amount of each item within countries. For checkouts and end-ofaisle displays, results are reported as a percentage (and 95% confidence interval) of the total number of checkouts or endof-aisle displays that displayed any snack food item.

Results Included data originated from Oceania, North America and Europe. In Oceania, in addition to a sample of 35 supermarkets from Melbourne, Australia on which we have previously reported [42,43], data was also obtained from 10 supermarkets in Wellington (New Zealand). A sample of 60 North American supermarkets were obtained from two cities in Canada (Montreal (n = 18) and Toronto (n = 10)) and three cities in the United States (US) (Columbia, SC (n = 14); Philadelphia, PA (n = 9); and Bethesda, MD/Washington DC (n = 9)). In Europe, audits were conducted in Copenhagen and surrounding urban areas (Denmark, n = 18), Amsterdam (the Netherlands, n = 20), Stockholm (Sweden, n = 19) and Oxford (United Kingdom (UK), n = 8) (Table 1). Shelf space Aisle length dedicated to each snack food type is presented in Table 2 in addition to the country ranking for each item relative to other countries. Large variations for each snack food type as well as the total aisle length of snack food were observed between countries. Adjusted for total store size, supermarkets in the UK sample had the greatest aisle

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and vegetables, the length of shelf space (refrigerated and unrefrigerated) as well as the circumference of island displays dedicated to fresh fruits and vegetables were measured and summed.

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length dedicated to chips, chocolate and confectionery as well as the greatest total snack food aisle length (56.4 m; 95% CI 47.6 â&#x20AC;&#x201C; 65.2 m). Aisle length of soft drinks was greatest in the Australian sample (18.4 m; 95% CI 16.6 â&#x20AC;&#x201C; 20.3 m). Stores in the New Zealand sample had the least aisle length dedicated to snack foods (21.7 m; 95% CI 13.8 â&#x20AC;&#x201C; 29.7). Raw aisle length (unadjusted for store size) values for each country are found in Additional file 2: Appendix B. Stores in the Danish and the UK samples had the highest ratio of snack foods to fruit and vegetables with a ratio of 1.46 and 1.31 respectively (Table 2). The Canadian supermarkets had the lowest ratio of snack food aisle length to fruits and vegetables aisle length. The proportion of the total snack food aisle length dedicated to each type of snack food is presented in Figure 1. Supermarkets in the North American countries (Canada and the US) had a greater proportion of their snack food aisle length dedicated to chips. Compared to other countries, the UK sample had a higher proportion of total snack food shelf length allocated to chocolate while the greatest proportion of shelf length allocated to confectionery was found within the Swedish sample. Soft drinks were less prominent as a proportion of total snack food aisle length in the Swedish and UK supermarkets. Checkouts and end-of-aisle displays The only sample of supermarkets in which less than half of all checkout displays featured any of the snack foods or soft drinks assessed were those in the Netherlands (41%) (Figure 2). In every other country, our samples of supermarkets had more than 70% of checkouts featuring snack foods or soft drinks, with the mean percentage being highest in Australia (99%). The total number of checkouts in the UK sample was not recorded and therefore we could not calculate the proportion of checkouts with snack foods within that country. The percentage of checkout displays in each country featuring each of the individual product types is presented in Additional file 2: Appendix C. Of particular interest in this appendix is the diversity of snack foods available at the checkouts with the US sample compared to countries such as

Australia where checkouts largely display chocolate or soft drinks. Australian supermarkets also exhibited the highest percentage (39%) of end-ofaisle displays featuring snack foods or soft drinks, with the proportion from the samples in other countries ranging from 16% (New Zealand) to 30% (Canada) (Figure 2). Additional file 2: Appendix Dcontains the percentage of end-of-aisle displays in each country featuring each of the individual product types. Discussion This study investigated the exposure to energy-dense snack foods (chips, chocolates and confectionery) and soft drinks in a sample of supermarkets across selected cities in eight developed countries. The shelf length of snack foods and the presence of these foods at checkouts and in end-of-aisle displays were assessed with noticeable variations detected between countries. UK supermarkets had the greatest aisle length devoted to chips, chocolate and confectionery, while soft drink aisle length was greatest in Australia. The proportion of both checkouts and endof-aisle displays containing snack food was also highest in the Australian supermarkets sampled. In every country other than the Netherlands, snack foods were present at over 70% of checkouts. From the results of this cross-sectional study, we are not able to discern whether variation is a result of differences in demand between countries, or whether supply is driving demand. It is likely that both are contributing.

Demand may be driven strongly by cultural norms and traditional diet preferences. Influences on the supply side of the equation may include specific commercial arrangements between retailers and the food industry/suppliers,

climatic differences between countries that influence the availability and price of supermarket items, agricultural policies such as the subsidisation of high fructose corn-syrup production (for use as a sweetener in soft drinks) by the US government [53], import tariffs and trade agreements. The position of supermarkets in the larger food shopping environment may also explain some of the variation observed here. For example, it is likely the role of supermarkets in supplying fresh fruit and vegetables to consumers varies between nations based on the prominence and use of other retailers such as greengrocers or markets. Such variations may have contributed to the differences in the ratio of snack foods to fruits and vegetables that we observed.

Some of the findings reported here can be compared with the results of previous studies from individual countries. A 2006 study from Melbourne, Australia reported that 99% of checkouts displayed snack foods or soft drinks [45] which is consistent with our own findings from that city. Prior US research [46,50] using a more inclusive definition of snack foods (included such items as nuts, cookies, doughnuts) found greater shelf lengths dedicated to snack food items than we report here. Because of the differences in definitions, the results from this study and our own study are not directly comparable. Whilst the broader dietary and health implications of supermarkets have been discussed elsewhere [29,30], the link between snack food availability and both purchasing behaviour and health indicators warrants consideration. Although research in this area is in its infancy, a couple of studies have been published. One prior Australian study did not find any link between snack food shelf length and purchasing [54]; however that study of only nine supermarkets was underpowered to detect a significant effect. In the US, a positive correlation Oil & Food Journal Vol. 08, Issue 08, June 2013

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2010 in the consumption of different snack foods and drinks. In that period, chocolate and confectionery (combined) increased by 53% per capita in Sweden whilst the consumption of soft drinks (including flavoured carbonated water) over this period increased three-fold and consumption of potato chips increased four-fold [60]. These changes in consumption are reflected in the current snack food profile in Swedish supermarkets in which shelf space of confectionery and chocolate is no higher than for chips and soft drinks (noting that our measure does not include carbonated water). Although it is of interest to examine correlations between availability and consumption patterns, the lack of comparable national dietary indicators limits our ability to explore this in more detail. Whilst limiting snack food exposure in other settings such as schools and workplaces has been a focus of some public health campaigns [61,62], the supermarket environment is increasingly recognised as a potential

intervention point [29]. In addition to facilitating comparisons between countries, the results of this study also allow the assessment of the local food environment in each country. Such national food environment data is necessary to support and justify campaigns such as those calling for the removal of confectionery items from supermarket checkouts [61,63,64]. Efforts to improve diet and reduce obesity and other chronic diseases will be more successful when supported by strategies such as these that aim to create healthier environments. In the Netherlands, the Albert Heijn supermarket chain has the largest market share (34%) [65] and remains a profitable supermarket retailer despite not having high levels of snack food displays (relative to other supermarkets in this study). In reaction to a report by the Dutch Consumersâ&#x20AC;&#x2122; Federation [66] on which supermarkets make the healthy choice the easy choice, Albert Heijn announced an initiative to remove all snack foods from checkouts. This action is reflected in the low proportion of Dutch

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between snack food shelf space and BMI was observed [55] however the effect size was small. Many policy and program interventions are already aiming to change food environments even though robust and consistent evidence is not yet available and a consensus on how change should best be achieved has not yet been reached [27]. Additional studies linking within-store environments with purchasing habits, diets and obesity are therefore sorely required to support the obvious desire to improve our food environment. While ecological data of the type reported from this study cannot infer causality, links between availability and national consumption patterns are of interest. In Dutch supermarkets, greater shelf space was allocated to soft drinks in comparison with the other snack foods assessed. This result correlates with the findings from the ENERGY study (which examines health in children across seven European countries) in which extremely high soft drink consumption amongst Dutch children was reported [20]. Furthermore, soft drink consumption in the Netherlands has increased by 74% between 1980 and 2009 [56]. In the North American supermarkets audited, shelf space devoted to soft drinks and potato chips was greater than for confectionery and chocolate in comparison with the other countries assessed. Within the US, soft drinks (soda) were reported to be the top dietary source of added sugars [57,58] whilst potato chips were the top dietary source of oils [58]. Amongst U.S. children both soft drinks and potato chips make substantial contributions to overall energy intake [57]. The Swedish population has traditionally had a preference for sugar confectionery [59]. Of interest however, are changes between 1980 and

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checkouts with snack food displays observed in this study. That example suggests that such initiatives may involve a relatively low cost for supermarkets, can allow them to promote their brand as a healthy choice, and may be important in changing cultural norms around snacking behaviours. Other forms of advocacy to encourage healthier supermarkets are required [29] and these may include policy-level approaches initiated by governments. The major strength of this study is the within-store assessment of energy-dense snack foods and soft drinks conducted in a sample of supermarkets across cities in multiple countries using a standardized measurement tool. Multiple aspects of the within-store food environment were captured, including static displays of shelf space and dynamic displays at ends-of-aisles and checkouts. Previously, within-store assessments of supermarket snack foods have been rare, limited in their ability to compare findings between countries and did not include the multiple aspects of the supermarket snack food environment assessed here. We acknowledge that our definition of snack food was limited to four food categories. Other types of energydense snack foods not captured here are also available in supermarkets and in certain contexts these products may also be important snack foods (e.g. cookies and ice-cream in North America). While no universal definition of snack foods exists [51,52], the definition used in this study was appropriate for a cross-country comparison as each of the snack foods examined were commonly available in all countries. The sampling strategy should also be considered when interpreting the findings. In Melbourne, Amsterdam and Montreal, data collection was undertaken according to area level disadvantage. Auditors in other countries sampled from a representative range of urban areas with no pre-specified stratification according to area-level disadvantage. All collaborators were instructed to sample from the major supermarket retailers in their setting. Although this meant that a greater variety of chains were sampled in some countries than others, we would expect that the diversity of store types in a country is a valid reflection of the

choices available to consumers. The fourth limitation relates to the relatively small number of supermarkets examined in two of the countries (New Zealand and the United Kingdom). The findings from these two countries in particular should be treated with some caution as they may not accurately represent snack food availability in those settings. Despite adjusting for store size in our analysis, we did not have any indicator of the presence of nonfood items present and it is possible that in some larger stores, a greater proportion of the store was allocated to such products. We did, however include an assessment of the ratio of snack foods to fruits and vegetables which is an effective indicator of the priority given to snack food relative to other items. Finally, other factors that may be important determinants of snack food purchasing (e.g. price, in-store promotions, variety, island bin displays) were not included in this study because

of difficulties in comparing such features between countries. Conclusion Globally, supermarkets play an increasingly important role in shaping dietary behaviours. This study has highlighted the ubiquitous presence of energy-dense snack food items in the supermarkets of eight developed countries. Although differences were observed between countries, snack food was extremely common in the aisles of supermarkets in all countries. The prominence of snack foods in displays at checkouts and the ends-of-aisles may be an important determinant of snack purchases as such displays are largely unavoidable. The relatively low prominence of snack food in supermarkets in both the Netherlands (checkouts in particular) and New Zealand suggest that lessons about the reduction of such displays may be learnt from these countries.

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S-based Cargill Inc, which derives close to Rs 10,000 crore from marketing and processing edible oils, staples and food ingredients in the country, proposes to step up investment in India as it seeks a greater share of the Rs 3.85 lakh-crore domestic processed foodand beverage market. The Indian unit of the $134-billion company is eying acquisitions of edible oil brands and manufacturing plants in southern India, says Siraj Chaudhry, Oil & Food Journal Vol. 08, Issue 08, June 2013

chairman, Cargill India. “In the medium term, we would certainly look at addressing this either by acquiring brands or assets in the south,” Chaudhry, who has worked with fast-moving consumer goods companies such as ITC, told. Cargill’s Gemini edible oil, which was acquired in 2005 from a Pune-based company called Parakh Foods, has a presence in the South. Barring Gemini, all its other brands, including in-house brand Nature Fresh and acquired products Rath,

EDIBLE OIL N

Cargill eyes larger food play in India in edible oil business

Sweekar and Sunflower are strong in the west, north and east of India. Chaudhry says acquisitions in the south would help rebalance its edible oil portfolio. “We were fortunate to acquire brands such as Rath, Sweekar and Sunflower, which have a strong history and parentage in the country. These brands were core to us, but non-core to their original promoters.” Rath was acquired from ConAgra subsidiary Agrotech in 2010, Sweekar from Marico in 2011 and Sunflower Vanaspati from Wipro Consumer Care and Lighting last year. While Cargill has never disclosed the size of these acquisitions, analysts have pegged these buys between Rs 30 and Rs 100 crore. The company, which has been growing at a clip of 10-11 per cent in the last few years, recently re-entered the branded atta space under Nature Fresh and has also stepped into the branded olive oil segment, regarded as a small but growing niche. Chaudhry says the company may look at pulses and other staples to expand its product portfolio here. Cargill, which competes with Indian companies such as Adani Wilmar and Ruchi Soya, is also looking to beef up its supply of food ingredients to the institutional segment by targeting specialty oils, fats, sweeteners, flourbased products, etc. Cargill derives over Rs 2,000 crore of its revenues from supply of ingredients to food and beverag companies and is looking to grow this business. Towards this end, the company is looking to set up a corn-milling plant in Karnataka with an investment of Rs 400 crore, which will produce modified starch for the food processing and pharmaceuticals industries, Chaudhry says. “We are in the process of identifying land for the plant. Work on the plant is likely to begin by 2014-end.” Cargill has also set up an application centre in Gurgaon, Haryana, the second such in Asia-Pacific after China, which will will act as a research and development hub for development of ingredients for the food processing industry in the country. “This centre will work closely with other application centres across the world including ones in Europe, Latin America and the US,” Chaudhry says.

EDIBLE OIL NEWS

Edible oil Industry pushes rice bran oil as an alternative to olive oil

latest recommendations by the National Institute of Nutrition (NIN). It contains unique nutracenticals known to maintain the right balance of cholesterol besides promoting overall good health.”

dible oil industry has started pushing rice bran oil aggressively in the domestic market. TheSolvent Extractors Association of India (SEA) is organising roadshows in different parts of teh country to promote the oil which is produced from the bran of paddy extracted through the physical refining process and is rich in vitamin E and contains highest amount of Oryzonol that has cholesterol lowering properties. A.R. Sharma, Chairman, SEA RBO Promotion Council, said “National and international dietary advisory bodies now suggest almost balanced fat in-take with moderate levels of saturated and poly-unsaturated fat and higher levels of mono-unsaturated fat. Rice Bran oil is edible oil with naturally balanced fatty acid composition quite close to the

Added Mr. Ashok Sethia, Past President, SEA said “”In a country like India it is necessary that we address the nutritional benefits of food items that could be consumed easily and within the budget of majority of Indian families. He further added that the best thing about consumption of rice bran oil is that it retains antioxidant stability even at high

temperatures that is needed for Indian cooking both Non-Veg and vegetarian preparations. India is the second largest producer of rice, after China, the country has the potential to produce over 14 lakh tonnes of rice bran oil, however currently it produces about 9 lakh tonnes, of which only 3 lakh tonnes are used a edible oil while the rest is used by vanaspati industry or blended with other oils and sold as branded products. It is our constant endeavor to support the small players to create visibility in retail chains and educate the consumers about the benefit of this unique oil. Mr B.V. Mehta, executive director, SEA said, “”Besides the health angle, the price of rice bran oil is cheaper then that of Olive oil and is comparatively less than that of groundnut oil, inspite of superior health benefits. Further India imports nearly 100 lakh tones of edible oils worth Rs 60,000 crores every year and it is the third largest import item, nest only to crude oil and gold.”” Fully exploitation of Rice Bran Oil potential will reduce the import of edible oils and also save foreign exchange.

Majority preference now for branded edible oil

here has been a surge in consumer preference for branded and packed edible oil, as compared to the traditional loose-sold variety. In 2012-13, sales of the former category in the country overall rose 30 per cent. And, the share of branded and packed oil in the overall cooking oil segment shot up to 60 per cent from 45 per cent in the previous year. The packed/branded category has a strong presence among regional companies. The share of national brands continue to remain between 10 and 12 per cent. Consumer awareness of the benefits of using packaged oil from a known brand and the ability to afford the higher price for this (termed ‘increased financial scalability’ in trade jargon) appears to be the reasons for the shift. Also, the difference in prices has narrowed. “The attraction towards branded and packed products is increasing rapidly. Branded and packed edible oil has replaced the loose commodity in urban

areas,” said Siraj Choudhary, chairman of Cargill India, producer of edible oil brands, such as Gemini and Sweekar and the Indian arm of the US commodity giant, Cargill International. Manufacturers have also started retailing the commodity with value additions, such as promises of various health benefits over the loose ones. Ruchi Soya Industries, the biggest in the branded category, with Sunrich, Nutrela and Mahakosh as leading brands, has posted 17.4 per cent growth in branded edible oil sales, at Rs 5,413 crore in 201213. In the fourth quarter, it registered 10.75 per cent growth in branded edible oil sales at 2.1 million tonnes (mt) as compared to 1.9 mt in the corresponding quarter of the previous year. Says Dinesh Shahra, managing director, “We witnessed a staggering growth in branded sales in the last two quarters. Our focus on the growth of these has helped in achieving better margins.”

A recent paper presented by Dorab Mistry, director, Godrej International, estimates India’s edible oil consumption at 17.6 mt in the oil year of November 2012-October 2013, as against 16.6 mt in the previous year. He forecasts per capita edible oil consumption at 13.9 kg in 2012-13, up from 13.4 kg in the previous year. “Shifting is happening very rapidly from loose to branded and packed edible oil, which can be attributed to a combination of factors, including growing prosperity of the middle class and narrowing of the premium over loose products,” said Atul Chaturvedi, chief executive officer of Adani Wilmar, producer of the ‘Fortune’ brand. The premium for branded and packed products has been narrowing in recent years, with the difference between packed and loose varieties now Rs 10-15 a kg and Rs 15-20 a kg between the loose and branded ones. Branded edible oil was earlier Rs 30 - 40 a kg costlier. Oil & Food Journal Vol. 08, Issue 08, June 2013

ith gaining popularity of rice bran oil as a healthy option for cooking, its market in the country is estimated to grow by 15 per cent to Rs 4,600 crore this year, industry body SEA said. Rice bran oil, which is produced from brown layer of rice, is considered to be a healthy cooking oil as it contains properties of lowering cholestrol levels. “At present, the market for rice bran oil is around Rs 4,000 crore. We expect it to touch Rs 4,600 crore by the end of this year,” Solvent Extractors Association (SEA) Rice Bran Oil Promotion Council Chairman A R

Sharma told PTI. Sharma, who also heads Ricela Health Food Ltd, said the demand for rice bran oil is growing among consumers because of health benefits. Many local brands such as Fortune, Saffola, Sundrop and Dhara are selling rice bran oil separately, while some of them are blending it with other cooking oils, he added. According to the SEA, the current production of rice bran oil is around 8 lakh tonnes and some food companies are raising the production capacity to meet the growing demand. An official of the Mother Dairy Fruits and Vegetables Ltd, which sells rice bran oil under ‘Dhara’ brand, said the demand has doubled for this oil because of health benefits. A similar view was shared by Marico Ltd, which are makers of ‘Saffola’ brand of edible oils. Saffola blends 80 per cent of rice brand oil with other cooking oils. India being the world’s second biggest rice producer at 104.22 million tonnes this year, the country has huge potential to scale up rice bran oil output.

Imports of edible oils, pulses also rise

mports of both, edible oils and pulses grew significantly (by 15.5 and 26.21 per cent, respectively) in 2012-13 year-on-year, as India struggled with flat production and rising demand in these two food items. While imports of edible oils crossed $10 billion in 2012-13 from $9.7 billion, those of pulses were still comparatively less. India imported $2.33 billion of pulses last financial year compared with $1.85 in 2011-12. Analysts blamed the pricing policy of the government in favour of rice and wheat, which do not factor the changing consumption pattern. Oilseed production dropped almost 8.25 per cent to 29.79 million tonnes in 2011-12 (November-October) because of low kharif harvest on account of uneven rains.

Oil & Food Journal Vol. 08, Issue 08, June 2013

In 2012-13 too, oilseed production is expected to be only marginally better than last year also because of poor rains in the main growing regions of Maharashtra and Gujarat. It is estimated to be around 30.7 million tonnes. Going forward, experts said domestic oilseed production is falling woefully short of edible oil demand, which would continue to rise further aggravating supplydemand mismatch

India issues tenders for 12,000 tonnes of palmolein from Malaysia, Indonesia

EDIBLE OIL NEWS

Rice bran oil market likely to grow by 15 per cent this year: SEA

ndia’s PEC Ltd issued a tender to import 12,000 tonnes of refined, bleached and deodorised (RBD) palmolein for shipment between June 25 and July 31. The RBD palmolein oil should be sourced from Indonesia or Malaysia, the company said in a statement. Out of the total, 6,000 tonnes should be delivered at Chennai port and the rest at Tuticorin port. The last date to submit bids is June 24.

in the coming years. “India every year needs an additional seven to eight lakh tonnes of edible oils, for which oilseed production has to increase by at least five million tonnes, unthinkable given that India’s domestic oilseeds production has stagnated at around 28-32 million tonnes,” said executive director of Solvent Extractors Association of India, B V Mehta.

EDIBLE OIL NEWS

Soybean Crop in India Seen at Record as Rally Spurs Planting

oybean farmers in India, Asia’s biggest shipper of the animal feed extracted from the oilseed, may boost planting this year as prices head for a fifth straight year of gains, potentially lifting output to a record. Area under the oilseed may climb 5 percent to 7 percent from 10.7 million hectares (26.4 million acres) in 2012, Rajesh Agrawal, a spokesman for the Soybean Processors Association of India, said by phone from Indore. The harvest was an all-time high 12.6 million metric tons last year, he said. Soybean futures in India have rallied every year since 2009, almost doubling in the period, as demand for the animal feedincreased from buyers in Iran, Japan and Southeast Asia. A bigger harvest may boost shipments and accelerate a decline in Chicago soybean-meal futures, which have fallen 20 percent since climbing to an all-time high in September. It may also cut cooking-oil imports by the world’s

second-largest buyer. “Area may increase in Maharashtra and Madhya Pradesh,” said Agrawal, referring to the country’s biggest growing states. “Planting should be encouraging this year because farmers have got good returns in soybeans compared with cotton.” Soybeans have climbed 19 percent in Mumbai this year, more than the 6.1 percent gain for cotton. The area under cotton may drop this year after the weakest monsoon rains in three years deepened a water shortage in the main growing regions, showed a Bloomberg survey published April 8. Sowing begins with the onset of the monsoon in June and the crops are harvested from October. Normal Rains The monsoon, which brings more than 70 percent of India’s rain, was 8 percent below average last year, according to the India Meteorological Department. That’s reduced water available to irrigate crops

in Maharashtra, Gujarat and Karnataka states. Drought in some parts of Maharashtra, the second-biggest grower of soybeans and sugar cane, may not hurt planting and yields this year, Agrawal said. Madhya Pradesh accounts for almost 60 percent of India’s soybean harvest. “Soybean needs three to four inches of rain for planting to take place and subsequently doesn’t require as much water as probably sugar cane,” he said. “If rains are normal, then we need not worry about soybean output.” Rains will be normal this year at 98 percent of a 50-year average of 89 centimeters (35 inches) in the four months through September, the weather bureau said on April 26. Soybean meal exports from India fell 11 percent to 3.4 million tons in 2012-2013 as farmers held back their produce in the early part of the harvesting season, the Solvent Extractors’ Association of India said. Shipments may cross 4 million tons in the year ending Sept. 30, Agrawal said. Cutting Imports The meal for delivery in July gained 0.9 percent to $432.10 per 2,000 pounds on the ChicagoBoard of Trade at 3:35 p.m. Mumbai time. Futures reached an all-time high of $541.80 Sept. 4. Soybean futures rose 0.7 percent to $14.8675 a bushel in Chicago, while they advanced 0.3 percent to 3,811 rupees ($68) per 100 kilograms in Mumbai. “A good soybean harvest will also reduce imports of vegetable oil in the country,” Agrawal said. “Output of other edible oils such as peanut and rapeseed will need to grow as well to have a bigger impact on imports.” Cooking oil imports by the South Asian nation, the biggest consumer after China, jumped 12 percent to 5.3 million tons in the six months through April, according to the extractors’ association. India buys palm oil from Indonesia and Malaysia, and soybean oil from Brazil andArgentina. “We are importing a huge amount of edible oil,” said Vijay Data, president of the extractors’ association. “There is good demand in the market and prices are very good, so farmers will definitely plant more.”

Oil & Food Journal Vol. 08, Issue 08, June 2013

EDIBLE OIL NEWS

Ruchi Soya Industries Ltd. : Ruchi Soya announces Joint Venture with J Oil Mills and Toyota Tsusho Corporation

uchi Soya announces Joint Venture with J Oil Mills and Toyota Tsusho Corporation Joint Venture to takeover plant of Ruchi Soya based at Shujalpur, Madhya Pradesh New innovative product offerings to be introduced to Indian consumers by 2014 Ruchi Soya 51%, J-OIL 26% and TTC to have 23% stake in the new JVMumbai, June 05, 2013: Ruchi Soya Industries Limited (Ruchi Soya), India’s leading Food & Agro based FMCG player has announced a Joint Venture (JV) with J-Oil Mills Inc. (J-Oil) Japan based Edible oil major, and Toyota Tsusho Corporation (TTC), one of the largest global trading companies of Japan. The Board of Directors of Ruchi Soya consented to form the Joint Venture Company. Ruchi Soya will have 51% stake in the JV; J-Oil will have 26% & TTC will have 23% stake. The JV Company is planning to enter in to the business of production and marketing of high quality, functional edible oils. The Board of Ruchi Soya has approved the sale and transfer of Soya processing business of the Company being run at its plant situated at Shujalpur, in the state of Madhya Pradesh to the proposed JV. Left to Right: Mr. Sarvesh Shahra, Business Head, FMCG and Specialty Ingredients, Ruchi Soya Industries Limited; Mr. Sumikazu Umeda, President & CEO of J-Oil Mills; Mr. Dinesh Shahra, Founder and MD of Ruchi Soya Industries Limited and Mr. Yoshiki Miura, Managing Director of Toyota Tsusho Corporation announcing the Joint Venture The JV will be managed by a Board consisting of representatives from all the three companies. The JV plans to start supplying products to the institutional customers by the end of 2013 and launch high quality consumer products for the Indian markets in the second half of 2014. Mr. Dinesh Shahra, Founder & Managing Director, Ruchi Soya commented, “This alliance is an important step towards Oil & Food Journal Vol. 08, Issue 08, June 2013

our business strategy of expanding our product portfolio by bringing value added & healthier products. Ruchi Soya will provide raw materials and necessary marketing and distribution assistance to the JV. J-Oil will provide technical assistance and TTC with its rich global experience will provide management assistance for internal control and access to international markets through its network.” Mr. Sumikazu Umeda, President & CEO, J-Oil Mills said, “The main purpose of this investment is to start our first ever business activity overseas in a promising country like India. J-Oil sees India as a vast and fast growing market and has plans to establish as a leading company in high quality value added edible oil segment.” Mr. Yoshiki Miura, Managing Director, Toyota Tsusho Corporation said, “Ruchi J-Oil JV provides us appropriate crossover opportunity to leverage our business networks, product portfolios, and skill sets. We create Global Vision 2020 in which we identified three business areas that we expect sustainable growth. We aim to expand food business in life and community field.” About Ruchi Soya Industries Limited Ruchi Soya is India’s leading FMCG Company, India’s number one cooking oil and soya food maker and marketer. An Integrated player from farm to fork,

Ruchi Soya has secured access to oil palm plantations in India and other key regions of the world. Ruchi Soya is also the highest exporter of soya meal, lecithin and other food ingredients from India. Ruchi Soya is committed to renewable energy and exploring suitable opportunities in the sector. About J-Oil Mills Inc. J-Oil Mills is a Japan-based company engaged in manufacturing, processing and sale of oils and fats, oilseed meals, starch, various types of foods, feedstuff and fertilizers, and food-producing machinery. It also has business interests in warehousing, harbour and land transport agency business, and Real estate among others. J-Oil has 13 subsidiaries and 6 associated companies. About Toyota Tsusho Corporation Toyota Tsusho Corporation has been growing steadily together with the automotive business as the main axis. Tomen also has been developed with a wide range of business and customers in non- automotive field. Two companies merged on April 1, 2006, and started as newborn Toyota Tsusho Corporation. The newborn Toyota Tsusho group, using the know-how of a global network and as the only trading company group that deeply involved in a idea of manufacturing, aim at a new trading company group that make flexible ideas and an adequate proposal.

EDIBLE OIL NEWS

International Organization for Rice Bran Oil to Be Formed

ajor Rice Bran Oil (RBO) producers in the world have decided to form an international organization to create awareness among edible oil consumers across the world about the health related advantages of using the RBO. A decision to set up international organization was taken at the 1st Thailand Conference on “Fats and Oils: Roles of Rice Bran Oil and its Products in the Changing Asia” held on May 16 and May 17, 2013 at Naresuan University of Thailand attended by over 200 delegates from Rice Bran Oil Producing countries including from Japan, Thailand India, China, Vietnam. The Conference aimed to promote and encourage International Technical Co-Operation, expansion of

International Trade, promoting virtues of Rice Bran Oil & its consumption across the world. “The participant countries included India- the largest Rice Bran Oil producer in the world and China- the second largest RBO producer, besides Thailand- the host country,” says Dr. B.V. Mehta, Executive Director of The Solvent Extractors’ Association of India on his return from the Conference. The Solvent Extractors’ Association of India (SEA) is busy promoting the health benefits of one of the ‘World’s Healthiest Oil’ - RICE BRAN OIL known as the ‘Wonder oil’ to many leading cardiologists, dieticians, nutritionists and health advisors world over. Rice Bran oil with its ideal SFA/ MUFA/ PUFA ratio and EFA ratios most ideally matches the prescribed levels suggested by World Health Organization (WHO). As per the National Institute of Nutrition Hyderabad, ‘RICE BRAN OIL’ with its anti-oxidant properties helps in lowering Cholesterol and reducing the risk of intestinal cancer and osteoporosis. While presenting the added benefits of physically refined Rice Bran Oil in India at the conference, Dr. A.R. Sharma, the largest RBO producer in the world and Chairman of SEA RBO Promotion Council, emphasized that physical refining is a better alternative to chemical refining to retain highest levels of Oryzanol in the refined RBO. He quoted various studies which proved that Rice Bran Oil helps reduce cholesterol, reduce hypertension, help in blood sugar management, protects liver, treats menopausal symptoms and it is anti-inflammatory. Besides, it helps patients of osteoporosis, helps lighten skin, hydrates and is anti-ageing, he added. “Rice Bran oil is edible oil with naturally balanced fatty acid composition quite

close to the latest recommendations by the National Institute of Nutrition (NIN). It contains unique nutraceuticals known to maintain the right balance of cholesterol besides promoting overall good health,” Dr. Mehta added. Speaking further on the properties of this ‘Wonder Oil’ Dr. A.R. Sharma said “National and international dietary advisory bodies now suggest almost balanced fat in-take with moderate levels of saturated and poly-unsaturated fat and higher levels of mono-unsaturated fat. Most of the edible oils commonly used in India do not contain the recommended fat composition. But there are a few edible oils popular in developed countries which are very closer to the latest recommendations even as single oil. These are rice bran oil, olive oil and canola oil. Rice bran oil is unique edible oil which is produced from oily layer (rice bran) of nutritious brown rice. It has higher levels of natural antioxidants making it the most suitable oil for frying. On the other hand olive oil and canola oil are not good for frying due to very low smoke point and very high level of instable linolenic acid in canola oil thus not suitable for Indian cooking. “India is the second largest producer of rice, after China, the country has the potential to produce over 14 lakh tonnes of Rice Bran Oil, however currently it produces about 9 lakh tonnes, of which only 3 lakh tonnes are used a edible oil while the rest is used by vanaspati industry or blended with other oils and sold as branded products. It is our constant endeavor to support the small players to create visibility in retail chains and educate the consumers about the benefit of this unique oil,” said Dr. Mehta. He further added that “besides the health angle the price of rice bran oil is cheaper than that of Olive oil and is comparatively less than that of groundnut oil, inspite of superior health benefits. Oil & Food Journal Vol. 08, Issue 08, June 2013

Oil & Food Journal Vol. 08, Issue 08, June 2013

EDIBLE OIL NEWS

Introducing

KAMANI FOODLITE Premium Culinary Oil and fast method of food preparation and hence selection of good frying or cooking oil plays a significant role. The selection of deep-frying oils should be based on the optimization of the process with regards to nutritional and culinary aspects. Cost should not be the only decisive factor. Requirements of frying oil • Must contribute pleasant flavour to the food & extend its shelf life. • Should have low PUFA (polyunsaturated fatty acid) content ( Linolenic acid < 2% ) • It should be easily pourable at room temperature (no or min preheating required) • For extended shelf life of fried foods, it should have high oxidative stability (AOM stability > 20 hrs) • Should have high smoke point ( min. 230 deg. C) • It should not foam.

ver the years KAMANI OIL INDUSTRIES PVT LTD has developed into a leading processor of high quality specialty oils and fats for the food industry. We have been partnering with our customers and working closely with them at every stage of product development. Our commitment and working closely with our valued customers, helps us to customize our products to meet their distinct requirements. Our aim is to create value by producing technically superior products. We take pride in associating with our customers as solution providers and are involved with our customers to help them enhance the nutritional and taste profile of their end products. Indian Food Industry The Indian Packaged Food Industry is expected to touch US$ 30 bn by 2015 and as per the report by ASSOCHAM, the industry would grow at the rate of 15-20%

annually. The industry includes ready to eat foods, snack foods, and functional foods. This growth is fuelled mainly due to emerging markets, rise in Quick service restaurants (QSRs), changing lifestyles, and arrival of multinationals, modern retail formats. The market is clearly and equally divided into the organised and unorganised sector. The organised sector of the snack food market is growing at 15% - 20% a year while the growth rate of the unorganised sector is 7% - 8%. The segment is largely dominated by potato chips and potato-based products with over 85% share of the salty snack market. Maintaining nutritional balance is very challenging in any snack food as some are cooked or fried with a lot of oil and butter. Even the quality of oils and fats used for frying needs to be taken into consideration. Deep frying is one of the most commonly used procedures for the preparation and manufacture of snack foods in the world since it is a simple

Keeping in mind the above attributes, Kamani Oil Industries after a lot of experimentation and research has developed specialty culinary oil – FOODLITE which is a chef’s delight and has been designed keeping in mind the needs of the customer. It offers health, taste and user-friendliness.

FOODLITE is a premium refined vegetable oil – a special fraction of palm oil. It is manufactured and packed under good hygienic conditions. It is double deodorized and hence absolutely bland in flavour and taste. Foodlite has a low melting point (Cloud point less than 5 deg C) hence remains as clear oil at ambient temperature. It has better fluidity at tropical temperatures. It is 100% trans free. Oil & Food Journal Vol. 08, Issue 08, June 2013

Visual appeal Foodlite being light colour oil delivers a light product and a crispier texture. It also imparts a shine to the product. Reusability Foodlite does not darken on multiple frying since it is very light coloured. The oil does not get deteriorated or degraded compared to other soft oils available in the market which darken on 3-4 fryings.

These soft oils thicken on multiple frying or they get polymerized which leads to more oil uptake, hence need to be discarded faster. This is not the case with Foodlite which can be re-used for a longer time, thus there is a cost saving on oil utilization. Foodlite has a high smoke point (> 235 deg C) with very low FFA content (free fatty acid) i.e. 0.05%, and hence is an ideal industrial frying medium. Health Foodlite offers health as it is high in MUFA (Monounsaturated fats) very close to Groundnut oil. Other general purpose frying oils used are high in PUFA (Polyunsaturated fats). MUFA oils are good for cholesterol management, it tends

to lower the bad cholesterol (LDL) and maintains the good cholesterol (HDL)*. Given below in Fig 1 is the comparative chart of vegetable oils and their MUFA content. Foodlite has MUFA content very similar to Groundnut oil followed by Rice bran oil.

EDIBLE OIL NEWS

What makes FOODLITE different from other oils Taste Foodlite being bland and odourless enhances the taste and flavor of the product cooked or fried in it. It does not leave any kind of after taste.

Shelf life Foodlite being low in PUFA gives a better oxidative stability and improves the shelflife of the product cooked or fried in it. PUFA oils like Sunflower oil, Soyabean oil, Cottonseed oil, etc get deteriorated faster that MUFA oils due to the high content of Linoleic acid (omega 6 fatty acid) which is more prone to rancidity than oleic acid (omega 9 fatty acid). The measurement of oxidative stability of any vegetable oil or fat is determined by an instrument called the RANCIMAT. The Rancimat method has been developed as an automated variant to the extremely complex AOM (active oxygen method) for determining the induction time of fats and oils. This method has become established over the course of time and has been incorporated in various national and international standards, e.g. AOCS Cd 12b-92 and ISO 6886. Fig 2 below gives the rancimat values in hours of different oils which itself indicates that Foodlite has the maximum induction time hence is more stable than other soft oils available in the market. Safety and Hygiene â&#x20AC;&#x201C; Keeps the kitchen safe and clean Foodlite with a high smoke point (> 235 deg C) and very low FFA content hence does not smoke at frying temperatures which is generally between 160-180 deg C. Some virgin and filtered oils have a very low smoke point (160 deg C appx) and these oils start smoking at frying temperatures, hence not suitable for frying applications. Foodlite being low in PUFA does not impart any greasiness to the frying or cooking vessel and helps keep the kitchen clean. Taking into account all the above mentioned attributes, FOODLITE thus becomes a natural choice for any food manufacturer. * American Heart Association Circulation. 1999; 100:1253-1258

Oil & Food Journal Vol. 08, Issue 08, June 2013

DAIRY NEWS

J K Group to foray into flavoured milk business

K Organisation promoted Umang Dairies is expanding its product portfolio and venturing into the flavoured milk segment to take on players such as Amul, Mother Dairy, Vadilal Industries and Kwality Dairy. The company is in the process of launching flavoured milk under the ‘Doodz’ brand in five flavours in Delhi and the National Capital Region. “We have recorded consistent growth in the dairy business over the last five years. As per our expansion plan, we have decided to foray in to the flavoured milk category under brand ‘Doodz’. The product will be launched initially in Delhi-NCR and later introduced nationally”, informed a senior executive in the company. Doodz will be made available at 5,000 retail outlets in Delhi-NCR in elaichi, kesar, cappuccino and butterscotch flavours. The processing and bottling of the new product is taking place at the company’s facility in Gajraula. The unit has the

capacity to produce 20,000 bottles or 3,600 litres of flavoured milk every day. The flavoured milk market in India is estimated at about Rs 500 crore which is expected to grow at more than 20% annually, according to a study by an independent market research agency. Not only the home-grown dairy companies, multinationals such as Danone had, in 2010, a test launch of Choco Plus which was priced at Rs 15 for 200-ml packs. That time, it was operating in India in joint venture with Britannia Industries. Nestle had also entered the flavoured milk segment in 2007 by extending its Milkmaid brand into milkshakes, Milkmaid Funshakes which was initially launched in south Indian markets. Britannia, however, had entered the flavoured milk segment with the launch of Actimind in 2009. Vadilal’s Power Sip is priced at Rs 18 for 180-ml bottles and is available in different flavour like rose, elaichi and kesar. The company has plans to introduce

Amul Dairy plots US production

ndia's largest dairy brand Amul is expanding beyond India for the first time by planning to launch its first overseas production facility in the US. In a joint venture with Summit Milk Products, a local dairy in upstate New York, Amul will produce specialised products for the sizeable Indian community living on the east coast of the US. A key target market will be New York City - which has more than 200,000 south Asian residents. "This is very big step," Rupinder Singh Sodhi, managing director of Gujarat Cooperative Milk Marketing Federation (GCMMF), which owns Amul brand, told just-food. "Gradually we are expanding our footprints of production facilities." Sodhi said the company has been working on this project for the past two years and initially the plant will only produce paneer (cottage cheese), ghee (clarified butter) and lassi (the

more flavours like chocolate, badam and coffee during the year. Mother Dairy sells flavoured milk in the brand names Nutrifit and Chillz. The Gujarat Co-operative Milk Marketing Federation (GCMMF) that markets brand Amul sells its flavoured milk brand Amul Kool in three different flavours elaichi, kesar, rose. The 250-ml packs are priced at Rs 30. Besides, Kwality Dairy, Amrit Foods and Param Dairy also have presence in the flavoured milk segment. Umang Dairies is India’s third largest seller of branded dairy creamers after Amul and Nestle. The company on an average sells six million consumer packs (SKUs) of dairy creamers every month. The company also has tie-ups to supply single serve sachets of White Magik dairy creamers on Rajdhani and Shatabdi trains on Indian Railways and in Air India. It also markets dairy creamers compatible with tea and coffee vending machines to Coca-Cola globally. The executive informed that the company is exploring possibilities of acquiring an existing dairy company having some synergy with its product portfolio to grow inorganically. Umang Dairies reported a growth of 16% in revenues from operations at Rs 178.30 crore for the year ended March 31, 2013 as compared to Rs 150.21 crore recorded the previous year. While operating profits increased by 16% to Rs 18.29 crore, profit before tax went up 17% to Rs 16.17 crore.

curd-based Indian drink). "We plan to increase this product range gradually," he said. The GCMMF already exports US$17m worth of milk, ghee, cheese, paneer, yoghurt, ice cream and other milk products popular with Indians in 21 countries including the US, China, Japan and Australia. Sodhi said production in the US will start within three months and the company is still projecting initial volumes.

Oil & Food Journal Vol. 08, Issue 08, June 2013

DAIRY NEWS

Benefits under new dairy equipment scheme

n order to assist Goan farmers procure dairy equipment and boost the industry, the government has launched a new dairy equipment scheme. Implemented by the department of animal husbandry and veterinary services (AVHS), the scheme also aims to reduce the practical difficulties farmers face while purchasing important equipment needed for dairy farming. This week we look at various steps involved in gaining benefits from this new scheme. Eligibility criteria This scheme applies to Goan farmers who are members of dairy societies registered with AHVS The applicant must be a resident of Goa, domiciled for a minimum period of 15 years The applicant must own cattle shed/s along with milch animals Milk contributed to the dairy society must be produced at the applicant's dairy farm and not procured from other means Documents required Application forms for the scheme are available free of charge from AHVS Residence certificate from mamlatdar or a certificate from the chairman of dairy society, verified and attested by

After white revolution, dairy cooperatives aim for green cover

fter being the vanguard of India's white revolution, dairy cooperatives of Gujarat have been engaged in the green revolution. Both the major dairies of north Gujarat Banas Dairy of Palanpur and Dudhsagar Dairy of Mehsana - have shown the way in greening a desolate landscape. "We have over 2,000 trees on a land that Oil & Food Journal Vol. 08, Issue 08, June 2013

the veterinary officer or assistant director in charge of the area, stating that the applicant is a member of the society Ownership papers of the land or NOC from owner of land in case of tenanted land Certificate of being schedule caste/schedule tribe issued by the competent authority (if applicable) Certified copy of applicant's ration card Quotations of the items to be purchased under the scheme One passport-size photograph of the applicant Procedure for application Farmers interested in availing the scheme need to apply in the prescribed application form through the local veterinary officer or assistant director The concerned officer scrutinizes the application and forwards it to the directorate for further scrutiny On approval of application, the applicant needs to submit the original purchase receipts from the authorized dealer/ supplier within 30 days to the local veterinary officer/assistant director, for onward transmission to the directorate The department officials, if satisfied with the authenticity of the submitted was barren a few years back," says Sanjay Karamchandani, the managing director of Banas Dairy, the biggest dairy in Asia. "Of the 5,370 trees we planted, 2,000 have come up over the past few years. Banas Dairy has grown 992 neem trees on its open land." Deputy manager (civil) Dudhsagar Dairy, Mehsana, Nagajibhai Chaudhary, said: "We have 3,000 trees on our premises including neem trees that have come up over the past couple of years." The dairy cooperatives are concerned about environmental imbalances, Chaudhary said. "The cooperatives observe the Environment Day on June 5 every year and plant trees," he said. "Yet hardly 15 per cent survive in the long

documents, sanction the subsidy amount Points to remember Subsidy under this scheme is available for new equipment/implements for a new dairy unit provided the farmer has not claimed the subsidy for the items purchased earlier under any other scheme. The beneficiary must sign a bond with the department before the release of subsidy Subsidy on the total implements is limited to 1.5 lakh only Subsidy will be released only if the farmer has received the approval of the directorate for permission to purchase the equipment Address/Contact details Directorate of Animal Husbandry & Veterinary Services, Government of Goa, Pashusamvardhan Bhavan, Patto, Panaji Goa-403001 Phone: 2437244 Email: dir-ahvs.goa@nic.in run." Both dairies have been growing trees for the past 30 years and now the trees have turned into massive shade-giving structures, says Karmchandani. "Once you enter the dairy's compound, you feel a tinge of a hill station with a difference of 5 degrees celsius from the outside temperature." Banaskantha falls in the desert zone and tree planting needs special care, said Satish Pansuriya in charge of training centre at Banas Dairy. "We have to work in a hostile climate," he said. One can hear the chirping sounds of the different birds within the thick groves of trees." Besides neem, Asoka, Borsali Chiku and Jamun are common at both dairies.

Oil & Food Journal Vol. 08, Issue 08, June 2013

FOOD INDUSTRY

Laws Governing The Food Industry In India – Revisited T

he food processing industry one of the largest industries in India is widely recognized as a ‘sunrise industry’ in India having huge potential for uplifting the agricultural economy, creation of large scale processed food manufacturing and food chain facilities, and the resultant generation of employment and export earnings. Laws governing the food industry: The Indian food processing industry is regulated by several laws which govern the aspects of sanitation, licensing and

other necessary permits that are required to start up and run a food business. The legislation that dealt with food safety in India was the Prevention of Food Adulteration Act, 1954 (hereinafter referred to as “PFA”). The PFA had been in place for over five decades and there was a need for change due to varied reasons which include the changing requirements of our food industry. The act brought into force in place of the PFA is the Food Safety and Standards Act, 2006 (hereinafter referred to as “FSSA”) that overrides all other food related laws.

It specifically repealed eight laws which were in operation prior to the enforcement of FSSA: • The Prevention of Food Adulteration Act, 1954 • The Fruit Products Order, 1955 • The Meat Food Products Order, 1973 • The Vegetable Oil Products (Control) Order, 1947 • The Edible Oils Packaging (Regulation) Order, 1998 • The Solvent Extracted Oil, De oiled Meal, and Edible Flour (Control) Order, 1967 Oil & Food Journal Vol. 08, Issue 08, June 2013

•

The Milk and Milk Products Order, 1992 Essential Commodities Act, 1955 (in relation to food)

Need for the new act: FSSA initiates harmonization of India’s food regulations as per international standards. It establishes a new national regulatory body, the Food Safety and Standards Authority of India (hereinafter referred to as “FSSAI”), to develop science based standards for food and to regulate and monitor the manufacture, processing, storage, distribution, sale and import of food so as to ensure the availability of safe and wholesome food for human consumption. All food imports will therefore be subject to the provisions of the FSSA and rules and regulations which as notified by the Government on 5th of August 2011 will be applicable.

Key Regulations of FSSA:

A. Packaging and Labeling: FSSA provides for separate packaging and labeling regulations known as Food Safety and Standards (Packaging and Labeling) Regulations, 2011 (hereinafter referred to as the “Packaging and Labeling Regulations”) which lay down the statutory and regulatory requirements for packaging and labeling of products. A plain reading of the Packaging and Labeling Regulations, show that there are different kinds of products: Pre-packaged, Proprietary and other specific products as mentioned in the regulations. Regulation 2.12 of the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011 defines “proprietary food” as food that has not been standardized under these regulations. Regulation 1 (8) of the Packaging and Labeling Regulations defines “prepackaged” or “pre-packed food”, as food, which is placed in a package of any nature, in such a manner that the contents cannot be changed without tampering it and which is ready for sale to the consumer. The Packaging and Labeling Regulations provide the general requirements for labeling of food products prescribed under the FSSA, as follows: i.

The

particulars

declaration

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required under these Regulations to be specified on the label shall be in English or Hindi in Devnagri script: Provided that nothing herein contained shall prevent the use of any other language in addition to the language required under this regulation. ii. Pre-packaged food shall not be described or presented on any label or in any manner that is false, misleading or deceptive or is likely to create an erroneous impression regarding its character in any respect; iii. Label in pre-packaged foods shall be applied in such a manner that they will not become separated from the container; iv. Contents on the label shall be clear, prominent, indelible and readily legible by the consumer under normal conditions of purchase and use; v. Where the container is covered by a wrapper, the wrapper shall carry the necessary information or the label on the container shall be readily legible through the outer wrapper and not obscured by it. In addition to these general requirements specified above, every package of food shall also carry the following information on the label: (i) name of the food; (ii) list of ingredients; (iii) nutritional information; (iv) declaration regarding veg. and non-veg; (v) declaration regarding food additives; (vi) name and complete address of the manufacturer; (vii) net quantity; (viii) lot/code/batch identification; (ix) date of manufacturing or packing; (x) best before and use by date; (xi) country of origin for imported food; and (xii) instructions for use. Since a large variety of food products are being imported into India, under the Packaging and Labeling Regulations, it becomes necessary to mention the country of origin of the food on the label of food imported into India, and when a food undergoes processing in a second country which changes its nature, the country in which the processing is performed shall be considered to be the country of origin for the purposes of labeling. Therefore, the above are the statutory and regulatory requirements that are to

be complied with regard to labeling of products that are sold in the Indian market as “pre-packaged goods”. B. Signage and Customer Notices: Having briefly dealt with the statutory and regulatory requirements with respect to labeling of products, it is necessary to understand the statutory and regulatory requirements with respect to signage and customer notices more from the point of view of a food outlet. It is important to note that though the provisions of FSSA do not specifically provide for any statutory and regulatory requirements either for signage or customer notices, but it has certain provisions with regard to advertisement of products by food business operators. Section 3 (1) (b) of FSSA defines the term “advertisement” (which includes a “notice”) as any audio or visual publicity, representation or pronouncement made by means of any light, sound, smoke, gas, print, electronic media, internet or website and includes through any notice, circular, label, wrapper, invoice or other documents. Section 24 of the FSSA provides that no advertisement shall be made of any food which is misleading or deceiving or contravenes the provisions, rules and regulations made there under. No person shall engage himself in any unfair trade practice for purpose of promoting the sale, supply, use and consumption of articles of food or adopt any unfair or deceptive practice including the practice of making any statement, whether orally or in writing or by visible representation which:

FOOD INDUSTRY

•

i. falsely represents that the foods are of a particular standard, quality, quantity or grade-composition; ii. makes a false or misleading representation concerning the need for, or the usefulness; iii. gives to the public any guarantee of the efficacy that is not based on an adequate or scientific justification thereof, provided that where a defence is raised to the effect that such guarantee is based on adequate or scientific justification, the burden of proof of such defence shall lie on the person raising such defence.

FOOD INDUSTRY

FSSA being applicable to all food business operators in India, the provision with regard to advertisements would have to be complied with. C. Licensing Registration and Health And Sanitary Permits It is also important to note that FSSA, being the only legislation applicable to the food industry throughout the country, will also apply as far as the national health and sanitary permits are concerned. The Food Safety and Standards (Licensing and Registration of Food Business) Regulations, 2011 (hereinafter referred to as â&#x20AC;&#x153;License and Registration Regulationsâ&#x20AC;?) govern the aspect of license and registration of a food business operator. Under Regulation 2.1 of the License and Registration Regulations, all food business operators in the country are required to be registered or licensed in accordance with the License and Registration Regulations, hence no person shall commence any food business unless a valid license is possessed by the food business operator, and the conditions with regard to safety, sanitary and hygienic requirements have to be complied with at all times by them. One of the prime purposes of these conditions is to ensure that the food business operator maintains sanitary and hygienic standards as specified in each food category. It is hereby recognized and declared as a matter of legislative determination that in the field of human nutrition, safe, clean, wholesome food is indispensable to the health and welfare of the consumer of the country. It shall be the deemed the responsibility of the food business to comply with the labeling, safety and health and sanitary

requirements laid down in the License and Registration Regulations. The labeling requirements are specified under the regulations and they need to be complied with at all times especially with regard to pre-packaged goods. Penalties: The FSSA provides for penalties in case of any non compliance. Generally, noncompliance with various provisions of the FSSA may attract penalty of up to Two Lakh Rupees (approx USD 4000).

However, under Section 63, it provides that if any person or food business operator (except the persons exempted from licensing under sub-section (2) of Section 31 of FSSA), himself or by any person on his behalf who is required to obtain license, manufacturers, sells, stores or distributes or imports any article of food without license, shall be punishable with imprisonment for a term which may extend to six months and also with a fine which may extend to Five Lakh Rupees (approx USD 9000).

Other Licenses: The FSSA being a central act has to be complied with by all the food business operators in the country. However, India being a big market, each state may have their local laws which may also need to be complied with. Some of the other approvals and licenses that a food operator may be required to obtain from various authorities under other laws include: health and trade licenses from the municipal corporation of the relevant area, environmental clearance, no-objection certificate for fire prevention and safety, registration under the police act of the respective city/state, verification certificate under the Standards of Weights and Measures Act, 1976 for each of the outlets issued by the Department of Legal Metrology of the respective areas, registration under the shops and establishments act of the respective state, eating house license and liquor license. A license for playing music in restaurants is also required for playing recorded or live music. It is mandatory for a food business to obtain insurance from any insurance company with regard to public policy, product liability, fire policy, building and assets. Other insurances though are not mandatory may be useful if taken. Some of the other registrations and permissions may include registration under the Employeesâ&#x20AC;&#x2122; Provident Funds and Miscellaneous Provisions Act, 1952 if it is engaging more than 20 employees. Registration is also required under the Central Excise Act, 1944 as in respect of goods specified in Third Schedule of the said act, repacking, re-labeling, putting or altering retail sale price etc. will fall into the category of manufacture. Subject to applicability, other statutory and Oil & Food Journal Vol. 08, Issue 08, June 2013

Foreign Direct Investment in the Food Processing Industry: Foreign Direct Investment (hereinafter referred to as â&#x20AC;&#x153;FDIâ&#x20AC;?) is permissible for all the processed food products under 100% automatic route (except for items reserved for micro, small and medium enterprises, where FDI is permissible under automatic route up to 24%), subject to applicable laws/regulations/securities and other conditions. Conclusion: The preamble of PFA laid emphasis only on provisions for prevention of food adulteration. FSSA lays emphasis on consolidating the laws related to food and to establish FSSAI for laying down science based standards for articles of food and to regulate their manufacture, storage, distribution, sale and import, to ensure availability of safe and wholesome food for human consumption and for matters connected with them. The new objectives clearly go far beyond the

Oil & Food Journal Vol. 08, Issue 08, June 2013

objectives of PFA. The strict penalties imposed in FSSA may lead to increase in corruption, as enterprises may resort to unfair practices to avoid these penalties. The PFA dealt with countless Government ministries handling different food sectors as per separate orders, like the fruit products order, and other orders related to vegetable oil products, edible oils packaging, milk and milk products and meat food products, which were issued at different points of time and were sometimes overlapping and inconsistent. On the other hand, a unified act like FSSA enables unidirectional compliance. The administrative control of the FSSA has been assigned to the Ministry of Health and Family Welfare thereby establishing a single reference point for all matters and eradicating any possibility of

FOOD INDUSTRY

regulatory compliances may also include registrations under Income Tax Act, 1861, Customs Act, 1962, sales tax, service tax and other labour laws.

multiplicity of orders or the chance that any coordination problems are caused. Apart from the harmonization of laws relating to food quality and standards with established international norms, FSSA aims at regulating food hygiene and safety laws in the country in order to systematically and scientifically develop the food industry. Thus, the food processing industry may see FSSA as a mixed blessing but the practical application of this legislation, being at its nascent stage, will require some time to come into full force. Curtsy:, Vaish Associates, Advocates,

CONFECTIONERY NEWS

DS Group expects confectionery business turnover to double in FY14

iversified firm Dharampal Satyapal Group(DS Group) expects its revenues from the confectionery business to nearly double in the current fiscal at Rs 230 crore and plans to further expand the vertical with an investment of Rs 150 crore. The Noida-based company, well known for its consumer goods brands like 'Catch' and 'Pass Pass', had earmarked a total investment of Rs 150 crore in the confectionery business for 2012 and 2013. "The company's confectionery business includes Pass Pass and Chingles, of which Pass Pass has closed at Rs 97.50 crore and Chingles has posted nearly Rs 18.16 crore in the last financial year. The

expected turnover for 2013-14 is Rs 200230 crore," DS Group Vice-Chairman Rajiv Kumar told PTI. He said the company plans to add more products under the chewing gum category in the near future followed by products under the fast-growing non-gum nonchocolate (NGNC) category. "The group had planned to invest Rs 150 crore in two years (2012 and 2013) in the confectionery business. Nearly, Rs 85-90 crore have already been invested in 2012. The remaining amount will be invested this year," Kumar said. However, the company has no plans to enter into chocolate segment in the near future, he added. As part of its plans to expand the

Varun Berry to head Britannia India biz, Vinita Bali to look abroad dairy company.

erry, who has 27 years of experience and was last associated with Pepsico as the CEO of Pepsico Foods India, joined Britannia in January replacing Neeraj Chauhan, then COO. Confectionery major Britannia industries has restructured its top management, once again. Vinita Bali, who is the managing director, will now only be focusing on the international business. On the other, hand Varun Berry, who is the chief operating officer (COO) will now head the India business. Currently, international business contributes about 12-13% of the total business. With the focus on geographies, Britannia aims to become a Food company from a bakery and

Experts believe Bali is the right choice to lead the international business considering her previous roles at Kraft and CocaCola, where she took care of businesses in Africa and Latin America, respectively. Berry, who has 27 years of experience and was last associated with Pepsico as the CEO of Pepsico Foods India, joined Britannia in January replacing Neeraj Chauhan, then COO. Chauhan moved on to become the vicepresident of strategy and new business development. And in that round of reshuffling, Vinod Menon, vice-president, head of strategy and new business development at Britannia, had taken charge as the new chief financial officer. In a statement, Nusli Wadia, chairman, Britannia Industries, said, “With these changes we are preparing Britannia for high growth in Britannia’s India operations by catering to the changing food habits of the evolving Indian consumer and pursuing opportunities for growth in the

confectionery business, the company has set up a manufacturing facility for Chingles in Noida with an investment of Rs 20 crore. "This plant has a capacity to produce 200 tonnes and will be adding another 200 tonnes capacity," Kumar said. The company, which has presence in various verticals, including FMCG, hospitality, tobacco, packaging and infrastructure, had a turnover of around Rs 3,200 crore for the financial year ended March 31, 2013. overall food domain, here and abroad.” Analysts believe that two restructuring in five months is a clear signal that the company is getting increasingly serious about the business. “The company’s volumes have been under pressure for six-eight quarters. ITC is firming its foothold in the premium category and on the other hand Parle is strengthening its position in the mass category. These management changes suggest that the promoter is serious about the business and is making the necessary realignments where necessary,” says Abneesh Roy of Edelweiss Securities. It is unclear, whether Berry will be reporting to Bali or to the promoters directly. In the scenario where Berry reports direct to the Wadias, it will be a clear signal that Bali is no longer in the driver’s seat. Roy adds that Bali must be given credit for aggressive innovation and margin expansion. “She kept the costs under control and this has helped the company by expanding gross margin. On the innovation front, Britannia has entered into new categories such as snacks and breakfast under her. Even though these innovations haven’t been very successful, she has helped the company to diversify,” he added. Oil & Food Journal Vol. 08, Issue 08, June 2013

ross-country differences in dietary behaviours and obesity rates have been previously reported. Consumption of energy-dense snack foods and soft drinks are implicated as contributing to weight gain, however little is known about how the availability of these items within supermarkets varies internationally. A study published in the International Journal of Behavioral Nutrition and Physical Activity by Thornton et al assessed variations in the display of snack foods and soft drinks within a sample of supermarkets across eight countries. Within-store audits were used to evaluate and compare the availability of crisps, chocolate, confectionery and soft drinks. Displays measured included shelf length and the proportion of checkouts and end-of-aisle displays containing these products. Audits were conducted in a convenience sample of 170 supermarkets across eight developed nations (Australia, Canada, Denmark, Netherlands, New Zealand, Sweden, UK and US). The mean total aisle length of snack foods (adjusted for store size) was greatest in supermarkets from the UK (56.4m) and lowest in New Zealand (21.7m). When assessed by individual item, the greatest aisle length devoted to crisps, chocolate and confectionery was found in UK supermarkets while the greatest aisle length dedicated to soft drinks was in Australian supermarkets. Only stores from the Netherlands (41%) had less than 70% of checkouts featuring displays of snack foods or soft drinks. Whilst between-country variations were observed, overall results indicate high levels of snack food and soft drinks displays within supermarkets across the eight countries. Exposure to snack foods is largely unavoidable within supermarkets, increasing the likelihood of purchases and particularly those made impulsively.

Mars launches eggless snickers for veggies

ars has set-up a new assembly line to manufacture the new vegetarian snickers to cater to the increased demand for eggless chocolates.

Oil & Food Journal Vol. 08, Issue 08, June 2013

CONFECTIONERY NEWS

UK SUPERMARKETS Health : the new black in the HAVE LONGEST confectionery industry CONFECTIONERY AISLES

ealthy food is the new black, according to Stephen Kulmar. Speaking at ConTech 2013, the Australian Industry Group’s confectionery conference, Kulmar said that black is enduring in fashion and health products will be enduring in food. He challenged the confectionery industry to recognise and advance the health market. “There is an increased awareness of wellness and functional products within the confectionery sector,” Kulmar said. “It’s not necessarily about nutrition. “Dark chocolate sales continue to increase as there is an understanding that it can contribute positively. Premium chocolate is becoming much more popular as people consume less, but want better quality. It’s a natural progression.” International confectionery companies in overseas markets are offering new functional foods such as fortified gums and even confectionery that fights acne, Kulmar told conference attendees. Huge opportunities exist for confectionery to spread into new areas and really connect with consumers, Kulmar said.

Keeping in mind the number of vegetarians, chocolate and confectionery maker Mars International today launched chocolate brand snickers in an eggless variant. Mars has set-up a new assembly line to manufacture the new vegetarian snickers to cater to the increased demand for eggless chocolates, the company said in a statement. "Our endeavour is to bring quality chocolates that will satisfy the Indian palate. The launch is in line with our business objective of growing our snickers range. With snickers green dot we wish to cater to our growing vegetarian consumers," Mars International MD for chocolate business MV Natrajan said.

Snickers vegetarian chocolate will be available in two pack sizes –- 25gms and 54gms priced at Rs 15 and Rs 30, respectively. The non-vegetarian stock keeping units will however continue to be available in the market as well, the company added.

Oil & Food Journal Vol. 08, Issue 08, June 2013

CONFECTIONERY

Natural Colors in Confectionery Applications C

olor additives are used in foods and beverages for various reasons. They help correct natural variations in the actual color of the product and for changes that may occur during processing and storage. Colors make products more visually appealing and they emphasize or identify flavors normally associated with various applications. The use of naturally-derived colors in food and beverage applications has increased considerably over the last five years. Much of this growth is attributed to increasing consumer demand for natural products and consumer avoidance of artificial food additives. Manufacturers continue to look to natural ingredient solutions for new product development, especially for those products being marketed as â&#x20AC;&#x153;better for youâ&#x20AC;?. As consumer demand for wholesome and

healthful foods grows, so does the use of natural colors. The market for natural food colorings continues to get brighter as more attention is paid to research linking artificial food dyes with hyperactivity and other behavioral problems in children. Notably, the landscape of color additives in products has changed in Europe due to a University of Southhampton (UK) study, released in 2007 that found a link between certain artificial food color additives and hyperactivity in children.

Natural Colors for Sugar Confections Confectionery products represent a unique and growing area for natural color applications. While typically not seen as healthy, sugar and gum confectionery products meet the important consumer need states of fun and enjoyment â&#x20AC;&#x201C;

Oil & Food Journal Vol. 08, Issue 08, June 2013

Overview of Natural Color Applications in Confectionery Natural colors are suitable for a wide range of sugar confectionery products. Hard candies, tablets, gummies, pectinbased candies, panned candies, and gums are perfect applications for natural colors. Natural colors work well in sugar free applications, including in candies sweetened with stevia, and in confections fortified with health ingredients or vitamins. In the United States and Globally, sugar confectionery products containing natural colors are growing!

CONFECTIONERY

especially for children. Today’s natural color market offers a wide variety of natural color options for confectionery products – making them bolder and brighter than ever before! One such example is WILD’s acid-stable blue color which allows a broader range of available color alternatives for the confectionery market than previously available. Health conscious consumers as well as those that may be concerned about the possible effects of artificial color additives – are increasingly looking for

naturally colored confectionery products. Many consumers associate health benefits with sources of naturally derived colors. Often, natural colors are free of GMO and allergens. In addition, using naturally derived colors allows marketers to sell products in markets with strict requirements on allowable ingredients, creating clean product labels. Natural Color Regulation Overview United States: In the US, color additives fall into two groups, “Exempt from Certification” (commonly referred to as natural colors) and “Certified Colorants” (commonly referred to as artificial colors):

Oil & Food Journal Vol. 08, Issue 08, June 2013

ICE CREAM NEWS

How Mother Dairy is planning to serve its ice creams nationally

other Dairy entered the Mumbai market around four years ago and is now poised to figure among the top three ice cream players this year. But with the Mumbai market captured, the subsidiary ofNational Dairy Development Board (NDDB), is now on a national expansion drive. Dairy products business head at Mother Dairy, Subhashis Basu says the confidence to serve its ice creams to the whole country became evident during the previous year when the test marketing across the nation started showing great results. To reach out to the national mass, after a gap of three years, the company has just started airing two television commercials. The company is planning to cater to the top 25 cities in the country which account for 80% of the country's Rs 1800 crore ice cream market. “We are the leader in New Delhi, but it’s time that we addressed our national people. The real insight behind

coming with this new commercials is to compliment our national expansion. Our ice creams are pure and no flavoured inputs are part of it. That is why our campaign also underlines the basic theme as 'real good'. After the national expansion, Basu is expecting his vertical to clock a top line of Rs 900 crore in the next four to five years. Ice creams now contribute around Rs 275 crore to the dairy product business and the aim is to keep growing at 25%, said Munish Soni, GM, marketing at Mother Dairy. Mother Dairy follows a typical FMCG distribution model to reach to the consumers for its ice creams. "We would be extending our brand reach and depth to stimulate consumption using traditional retail, our own vending carts, our own exclusive booths and kiosks in high throughput locations etc. This year, we are also investing disproportionately on asset placement both in retail and vending to drive growth across all geographies and reach out to a larger chunk of consumers,” added Basu. A key challenge for the company would be to topple the local players in different states across the country. For example, Gujarat and New Delhi together account for one third of the country's Rs 1800 crore (approx) ice cream market and in the former state Vadilal is one of the prominent players. In Mumbai, Vadilal, Amul and Kwality Walls are the players leading the race and Mother Dairy is

'Connoisseurs still prefer age old kulfi over ice cream'

ummers are synonymous with ice-creams. And the clutter of high end brands leaves the lovers of this dessert spoilt for choice. But equally relished by the Indians is the age old kulfi, a delightful candy made with thick milk to which dry fruits and saffron have been added. It is traditionally made and sold by the vendors who park themselves at crowded areas. Without any aid from fancy marketing tools, it is the unique taste of the kulfi home churned by these vendors which becomes their brand. Health and hygiene concerns have nearly wiped out the

very near to break into that club soon, according to the company's own market research. India's ice cream market has been typically fragmented and in the regional pockets it is the local players who are ruling the market. Mother Diary, to create visibility in the national map, is going to focus more on retail sales compared to bulk sales. “Some bulk deals may not offer me to sell it in my packaged way and chances are high that it will be used just as commodity. So my brand is not getting to use that platform, so at this point, we are focusing more on our packaged sales which will enhance our branding,” he added. It has though tied up with two leading flight caterers which will leverage the brand among all major national carriers in the country at the moment. “This is unique arrangement as the ice cream being served will be in the Mother Dairy branded packages,” added Basu. The ice creams are also available while traveling via Indian Railways. "One of the challenges in going national, was to keep the balance of heritage of our brand and yet be contemporary enough to tease the target audience, said Basu. And that is why the company got O&M Delhi team on board to create the new commercial for them. Ravi Udayawar has directed the commercials. "Before even we were present in Mumbai, we used to buy a lot of national media space but we figured out in the course of time that without being present in those market these media campaigns did not yield us any result,” said Basu. According to him the marketing spend, which is about five% of its top line, is also going to see a substantial rise in the coming years.

kulfiwalah who would announce his arrival with the ring of a brass bell that hangs on his push cart. "Customers prefer branded ice creams and the big brands also offer kulfis," says Dilip Bodhwani, who runs a kulfi shop in the old market area of Itwari. "Vendors like us have to maintain highest levels of hygiene and offer best quality to retain customers," says Bodhwani a third generation kulfi vendor. "Making kulfi is a long drawn, painstaking task which requires lot of hard work. The prices too have to be competitive as icecreams cost as low as Rs 25 for a scoop," he says. "But the true connoisseurs of taste still prefer the subtle flavours of thick frozen seasoned milk over the artificially flavoured and coloured ice-creams," he adds. Oil & Food Journal Vol. 08, Issue 08, June 2013

Magnum was launched in Chennai due to the city’s “affluent consumer base” and targets young adults who are “active pleasure seekers.” Sanjiv Sethi, chairperson of the Indo-U.S. Retail Forum at the Indo-American Chamber of Commerce, attributes this trend to “rapid urbanization, the increasing affluence in the burgeoning Indian middle class, and also rising awareness about international brands.”

Mini Melts has set up a manufacturing facility in Bangalore at an investment of $3 million. According to Shoeab Salim, managing director of Honeybee Amusements, the holding company for the Mini Melts India franchise, local manufacturing and sourcing will help the brand pass on the price benefit to the consumers. “We should be able to obtain a 12% share of the ice cream market in three years,” says Salim. He is looking to create an exhaustive distribution network that includes kiosks, carts and stores spread across streets, malls and theme parks. A Mini Melts “kids café” network is also in the works. “India’s tropical climate makes it a dream destination for frozen desserts,” Sethi notes. “Moreover, frozen desserts, including ice cream, is trending into an

all-season product, hence enhancing the nation’s consumption potential.” At present, the per capita annual ice cream consumption in India is a mere 0.1 liter. In New Zealand it is 28.1 liters, and in the U.S., it is 20.8 liters. Even as new players are making inroads into India, London Dairy and HäagenDazs, which up to now were largely only available in select five-star hotels and gourmet stores, are in expansion mode. Häagen-Dazs, for instance, recently opened a flagship store spread over 2,200 square feet in Chandigarh in North India. Baskin Robbins’ portfolio now includes Alphonso Gold and Alphonso n’ Cream — made from the Alphonso mango, which is largely grown in western India. As the brand’s website says, “You cannot get more Indian than this.” Meanwhile, Indian ice cream brands are also now focusing on the premium segment. The Gujarat-based, 80-year-old Vadilal, for instance, has upgraded its production technology to keep up with the competition. “With the entry of many multinational ice cream brands in the market, it became imperative for us to reinvent our strategy,” says Devanshu Gandhi, managing director of Vadilal. “Earlier, our share in the high-end ice cream market was almost negligible. The shift in strategy has helped us get an additional 10% in our annual revenues over a period of three years. This year we expect our premium products portfolio to generate $9 million in revenues.” “The Indian ice cream market is growing at the rate of 35% year-on-year and hence makes for an attractive destination for international brands,” adds Gaurav Marya, president of Franchise India Holdings, a New Delhi-based organization that assists brands in international and domestic franchise expansion. “The challenge, however, lies in right pricing and cracking the distribution code — something that Indian brands such as Mother Dairy and Amul have been able to do well.”

ICE CREAM NEWS

Global Ice Cream Brands Home in on India’s Growing Affluent Class

FOOD SAFETY

THE FOOD SAFETY

Challenge of the Global Food Supply Chain A s we enter the new year, we were to address the top food safety challenges facing the industry. We believe that the one overriding food industry concern is how to best manage food safety across the global supply chain while ensuring regulatory compliance. This article is meant to provide the reader with background information as well as action steps that can be taken to mitigate the inherent risks of a global food supply chain.

Why Is This Our Major Concern? It is no secret that there have been significant media exposure, public health impact and decrease in consumer confidence in recent years due to some significant food safety incidents. This has increased focus on food safety by consumers, the industry, lawmakers and regulatory agencies. The increased awareness of some of these large-scale foodborne illness and contamination events has resulted from

the following: • Advances and improvements in public health signal detection (PulseNet)[1] • New regulatory reporting requirements of contaminated food products in commerce (The Reportable Food Registry)[2] • Improved communication streams and interconnectivity between regulatory agencies domestically and internationally PulseNet is a system whereby state public health laboratories analyze strains of certain pathogenic bacteria from ill individuals and determine their genetic fingerprint. This is then shared nationally with the Centers for Disease Control and Prevention (CDC), allowing CDC to “connect the dots” when the same genetic fingerprint of an organism is isolated from clinical specimens from geographically dispersed regions. Then an investigation can ensue to evaluate whether there is a common food or environmental source of this genetically matched strain that made people ill. Several multistate outbreaks have been detected due to PulseNet and this collaboration to improve signal detection. The FDA Reportable Food Registry, launched in 2009, requires firms to report instances of product contamination, provided they meet certain criteria Oil & Food Journal Vol. 08, Issue 08, June 2013

What Do I Specifically Need to Be Concerned About? Within the supply chain, adulteration is the key food safety issue. Adulterated food is food that is generally impure, unsafe or unwholesome. The main federal laws governing adulterated foods are the Federal Food, Drug and Cosmetic Act (FD&C Act), the Federal Meat Inspection Act and the Poultry Products Inspection Act. These laws contain separate language defining in very specific terms how the term “adulterated” will be applied to the foods each of these laws regulates. Products that are adulterated under these laws’ definitions cannot enter into commerce for human food use. Under U.S. law, using an ingredient not approved by the U.S. Food and Drug Administration (FDA) is one form of food adulteration. State statutes may also regulate adulterated food produced or sold in the state. Adulteration can be unintentional or intentional. This includes biological, chemical or physical hazards. Intentional adulteration can be for economic or other reasons, such as food defense. Additionally, other issues such as consistency, quality, availability and price are of concern to all those in a company Oil & Food Journal Vol. 08, Issue 08, June 2013

who are involved with the supply chain. Further, the global food supply continues to grow in volume and complexity. Imports are expected to continue to grow because of cost concerns (need for lower costs and higher productivity), availability (includes seasonality) and consumer demand for diverse food products. According to an FDA Report entitled “Pathway to Global Safety and Quality,”[3] between 10 and 15 percent of all food consumed in the U.S. is imported. According to the U.S. Government Accountability Office (GAO), imports account for nearly two-thirds of the fruits and vegetables and 80 percent of seafood eaten domestically. Seafood and spices are among the most imported food items. Consumers in the U.S. are accustomed to a wide selection of food products from around the world. The growth of imported products is coming from locations such as Mexico, China, Asia, India and Africa. According to an analysis of food products refused by FDA at the port, conducted by the U.S. Department of Agriculture (USDA) Economic Research Service,[4] “The three food industry groups with the most violations were vegetables (20.6 % of total violations), fishery and seafood (20.1%) and fruits (11.7%). Violations observed over the entire time period include sanitary issues in seafood and fruit products, pesticides in vegetables and unregistered processes for canned food products in all three industries.” FDA-regulated products come from more than 300,000 facilities in 150 countries. Projected growth rates of imported foods are 5–15 percent per year. Imports will continue to grow because of the rise of emerging markets, the scarcity of natural resources and the increased flow of capital, information and goods across borders. With this increase will come increased complexity for regulators, as the distinction between foreign and domestic products continues to blur and becomes ever more complex. With this complexity comes the challenge of being able to trace the products, ensure that all entities within the supply chain meet their responsibility for food safety and quality and address the ever-growing number and sophistication of those who wish to perpetrate economic fraud or food supply terrorism.

What Has Been or Is Being Done to Address Global Supply Chain Food Safety and Defense? From a regulatory perspective, several new laws and regulations have been enacted in recent years to help address the safety of the global food supply chain, including the Bioterrorism Act of 2002[5] and the FDA Food Safety Modernization Act (FSMA).[6] While most of those have been discussed elsewhere in this magazine, we felt that putting this information in one place would aid you in making decisions as well as being able to explain the need for these programs when requesting resources, whether for people, money or departmental cooperation. However, regulations are only as good as the resources to investigate and enforce them. For example, in fiscal 2010, there were almost 10 million shipments of imported food to the U.S., but FDA was only able to physically examine 2.1 percent of those shipments. Within FSMA, mandatory inspections of food facilities will be based on risk. All high-risk domestic facilities must be inspected within 5 years of enactment and no less than 3 years thereafter. Within 1 year of enactment, FDA must inspect at least 600 foreign food facilities and double those inspections every year for the next 5 years. This would mean that in year six, FDA would have to conduct 19,200 inspections. Will the FDA have adequate resources of money and trained people to do this? The responsibility for protecting your products, brand and supply chain partners can only rest on a more complete understanding of the following: • All of the possible hazards across your supply chain • Mitigation strategies you and your supply chain partners have in place • Monitoring and verification across the supply chain to ensure the systems are working and are contemporary with the emerging food safety issues as they arise

FOOD SAFETY

related to the possibility of serious adverse health consequences or death to humans or animals. Additionally, the upstream and downstream distributionsupply chain partners may need to submit their distribution and handling information as well. This has resulted in significant recalls related to, among others, hydrolyzed vegetable protein and allergens. These systems, among others, have contributed to the rising number of food recalls in the past several years, and there is every indication that science and technology, improved signal detection, regulatory oversight and collaboration across borders will continue to expand, making more detection of adulteration and subsequent food recalls in the future a definite possibility. In addition, an ever-increasing complex global food and ingredient supply has introduced further opportunities for contamination to be incorporated into food products.

The following describes the aforementioned acts. The Bioterrorism Act of 2002 requires FDA to receive prior notice of food

FOOD SAFETY

imported into the U.S. FDA uses this information in advance of the imported foods’ arrival to review, evaluate and assess the information, and determine whether to inspect the imported food. The act also requires the registration of food facilities, which means that domestic and foreign facilities that manufacture/ process, pack or hold food for human or animal consumption in the U.S. must register with FDA. The following information must be submitted to FDA prior to product import: • Identification of the submitter, including name, business address, telephone number and email address • Identification of the transmitter (if different from the submitter), including name, business address, telephone number and email address • Entry type and CBP (Bureau of Customs and Border Protection) identifier • Identification of the article of food, including: • FDA product code • Common or usual name or market name • Estimated quantity, described from the smallest package size to the largest container • Lot, code number or other identifier (if applicable) • For food that is no longer in its natural state, identification of the manufacturer: manufacturer’s name and either 1) the registration number, city and country of the manufacturer or 2) both the full address of the manufacturer and the reason the registration number is not provided (reasons listed in the Compliance Policy Guide for Prior Notice of Imported Food) • For food that is in its natural state, identification of the grower and growing location address, if known • FDA country of production • Name and full address of the shipper, if different from the manufacturer • Country from which the article of food is shipped or, if the food is imported by international mail, the anticipated date of mailing and country from which the food is

mailed Anticipated arrival information (location, date and time) or, if the food is imported by international mail, the U.S. recipient (name and address) • Identification of the importer, owner and ultimate consignee (except for food imported by international mail or transshipped through the U.S.) with name and full address • Identification of the carrier and mode of transportation (except for food imported by international mail) • Planned shipment information (except for food imported by international mail) In response to increased globalization, FDA has expanded its capabilities and regulatory authority. The PREDICT systems,[7] for instance, use novel data analytics from the entire life cycle of a product to better identify and target high-risk products before they enter the country. It is believed that using this better intelligence, admissibility of safe products will be speeded and FDA can focus its investigations on the goods most likely to harm the public. •

The FDA FSMA sections include the following: • Preventive Control Plans. Food manufacturing facilities must develop and implement science-based written plans that evaluate hazards that could affect the safety of food. • Mandatory Produce Safety Standards. FDA must establish science-based

•

minimum standards for the safe production and harvesting of fruits and vegetables. Required Inspections. Mandatory inspections of food facilities are based on risk. All high-risk domestic facilities must be inspected within 5 years of enactment and no less than 3 years thereafter. Within 6 years of enactment, FDA would have to conduct 19,200 inspections of foreign food facilities annually. Product Tracing. FDA is required to establish a comprehensive product tracing system to track movement of food products from farm to point of sale or service. The goal being to identify sources of food-borne illnesses earlier and to contain outbreaks more quickly. Third-party Certification. Designated imported foods must be certified by a third party with expertise in food safety under the oversight of FDA. Certification for High-risk Food. FDA can require that high-risk imported foods be accompanied by a credible third-party certification or other assurance of compliance as a condition of entry into the U.S. Increased Inspection Authority. Inspect records of any entity (excluding farms and restaurants) that manufactures, processes, packs, distributes, holds, receives or imports food products. Mandatory Recall Authority. This requires a recall based on a “reasonable probability” that

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FDA’s new approach rests on four core building blocks: 1) FDA, in close partnership with its foreign counterparts, will assemble global coalitions of regulators dedicated to building and strengthening the product safety net around the world. 2) With these coalitions, FDA intends to develop a global data information system and network in which regulators worldwide can regularly and proactively share real-time information and resources across markets. 3) FDA will continue to expand its capabilities in intelligence gathering and use, with an increased focus on risk analytics and thoroughly modernized information technology capabilities. 4) FDA will effectively allocate agency resources based on risk, leveraging the combined efforts of government, industry and public- and privatesector third parties.

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However, given all of FDA’s new initiatives and responsibilities, it appears the agency will be hard-pressed to meet the demands of the globalization of the food supply system because of lack of resources in both people and money. Who Else Is Helping? The Department of Homeland Security (DHS) Science & Technology Directorate Centers of Excellence (COE) network was developed.[8] The COE is an extended consortium of hundreds of universities that generates groundbreaking ideas for new technologies and critical knowledge, while also relying on each other’s capabilities to serve DHS’s many mission needs. All COEs work closely with academia, industry, department components and first responders to develop customerdriven research solutions to “on the ground” challenges as well as provide essential training to the next generation of homeland security experts. The research portfolio is a mix of basic and applied research addressing both short- and longterm needs. The COE extended network is also available for rapid response efforts. Managed through the Office of University Programs, the COEs organize leading experts and researchers to conduct multidisciplinary homeland security research and education. Each center is university- or co-led in collaboration with partners from other institutions, agencies, national laboratories, think tanks and the private sector.

There are currently 12 COEs across the country. • The Center for Risk and Economic Analysis of Terrorism Events (CREATE), led by the University of Southern California, develops advanced tools to evaluate the risks, costs and consequences of terrorism. • The Center for Advancing Microbial Risk Assessment (CAMRA), led by Michigan State University and Drexel University established jointly with the U.S. Environmental Protection Agency (EPA), fills critical gaps in risk assessments for mitigating microbial hazards. • The Center of Excellence for Zoonotic and Animal Disease Defense (ZADD), led by Texas A&M University and Kansas State University, protects the nation’s agricultural and public health sectors against high-consequence foreign animal, emerging and zoonotic disease threats. • The National Center for Food Protection and Defense (NCFPD), led by the University of Minnesota, defends the safety and security of the food system by conducting research to protect vulnerabilities in the nation’s food supply chain. • The National Consortium for the Study of Terrorism and Responses to Terrorism (START), led by the University of Maryland, informs decisions on how to disrupt terrorists and terrorist groups through empirically grounded findings on the human element of the terrorist threat. • The National Center for the Study of Preparedness and Catastrophic Event Response (PACER), led by Johns Hopkins University, optimizes our nation’s preparedness in the event of a high-consequence natural or manmade disaster. • The Center of Excellence for Awareness & Location of Explosivesrelated Threats (ALERT), led by Northeastern University and the University of Rhode Island, will develop new means and methods to protect the nation from explosivesrelated threats. • The National Center for Border Security and Immigration (NCBSI),

FOOD SAFETY

an article of food is adulterated, misbranded or will cause “serious adverse health consequences or death” to people or animals. • Suspension of Registration. FDA can suspend registration of a facility if it is determined that the food poses a reasonable probability of serious adverse health consequences or death. A facility that is under suspension is prohibited from distributing food.

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led by the University of Arizona in Tucson (research co-lead) and the University of Texas at El Paso (education co-lead), is developing technologies, tools and advanced methods to balance immigration and commerce with effective border security. • The Center for Maritime, Island and Remotes and Extreme Environment Security (MIREES), led by the University of Hawaii and Stevens Institute of Technology, focuses on developing robust research and education programs addressing maritime domain awareness to safeguard populations and properties in geographical areas that present significant security challenges. • The Coastal Hazards Center of Excellence (CHC), led by the University of North Carolina at Chapel Hill and Jackson State University in Jackson, MS, performs research and develops education programs to enhance the nation’s ability to safeguard populations, properties and economies from catastrophic natural disaster. • The National Transportation Security Center of Excellence (NTSCOE) was established in accordance with HR 1, implementing the recommendations of the 9/11 Commission Act of 2007 in August 2007. The NTSCOE will develop new technologies, tools and advanced methods to defend, protect and increase the resilience of the nation’s multimodal transportation. It comprises seven institutions. • The Center of Excellence in Command, Control and Interoperability (C2I) led by Purdue University (visualization sciences co-lead) and Rutgers University (data sciences co-lead) will create the scientific basis and enduring technologies needed to analyze massive amounts of information to detect security threats. In light of pending regulations stemming from the FSMA, food and beverage companies must be cognizant of the effectiveness of their suppliers’ food safety and food defense programs. This is especially important for imported products. Companies must develop

close interactions with ingredient vendors, packaging providers, brokers, distributors and other partnerships. Preventing contaminated foods from reaching customers’ tables is primarily the responsibility of the vendor. Prior to the FSMA, food and beverage companies voluntarily addressed intentional adulteration of products. Now companies will be required to consider the potential for intentional adulteration as part of their hazard analysis. Food and beverage companies are increasingly aware of such challenges as they continue to extend supply chains, both domestically and abroad. Having an effective food defense program complements a company’s food safety system and soon must be addressed to comply with the new regulations soon to be published by FDA as mandated by the FSMA. FSMA Section 805 will be added to the FD&C Act (21 U.S.C. § 385), requiring every U.S. importer to perform risk-based foreign supplier verification activities to verify that the food it imports is (a) produced in compliance with the requirements of Section 418 (hazard analysis and preventive controls) or Section 419 (produce standards); and (b) is not adulterated under Section 402 or misbranded under Section 403(w) (allergen labeling). When it comes to food defense, according to the GAO, the federal government is not efficiently managing or utilizing resources in the defense of the nation’s food system. After the terrorist attacks in 2001, President George W. Bush and Congress initiated polices to protect the food supply.

Billions have been spent, but according to Lisa Shames, GAO’s Director of Natural Resources and the Environment, in her testimony before Congress, “There is no centralized coordination to oversee the federal government’s overall progress implementing the nation’s food and agricultural defense policy.” According to this report, a lack of coordination means that “any natural or deliberate disruption of the agriculture or food production systems—including natural disasters, disease outbreaks and food contamination—can present a serious threat to the national economy and human health and can halt or slow trade.” As a result of this report, in part, improved coordination of all relevant federal agencies (FDA, CDC, DHS, EPA, Department of Defense and others), state and local agencies and industry is an overriding theme across the FSMA. A coordination platform already exists within the DHS for collaboration and response to agro-terrorism and other disasters and the Food and Agriculture Coordinating Council, including a government component and an industry component with representatives of all stakeholders involved, who are able to share classified information and ongoing efforts by all members to prepare for and mitigate intentional contamination of the food supply. In September 2009, the USDA Food Safety and Inspection Service (FSIS) published Notice 67-09,[9] which outlines what the agency expects responsible establishments to develop in the way of a food defense plan. Previous FSIS surveys Oil & Food Journal Vol. 08, Issue 08, June 2013

What Is the Significance of Food Fraud, Otherwise Known as Economic Adulteration? Examples of economic fraud are becoming more and more prevalent. In an

article that will be published in the near future, Spink and Moyer[12] define food fraud as a collective term encompassing the deliberate and intentional substitution, addition, tampering or misrepresentation of food, food ingredients or food packaging; or false or misleading statements made about a product, for economic gain. Food fraud is a broader term than either the economically motivated adulteration defined by FDA or the more specific general concept of food counterfeiting. Food fraud may not include “adulteration” or “misbranding,” as defined in the FD&C Act, when it involves acts such as tax-avoidance and smuggling. Recent examples of food fraud include imported vegetable protein that contained melamine and sickened or killed American pets; milk tainted with melamine in China that killed and injured many children; honey that was banned in Europe because of lead, illegal antibiotics or not being real honey used in the U.S.; incorrectly identified fish species; caviar; fruit juices; olive oil; spices, etc. What Can I Do to Protect My Product and Brand across the Supply Chain? While many programs and systems have Oil & Food Journal Vol. 08, Issue 08, June 2013

been developed and implemented with varying degrees of success, we believe it is incumbent on all of the food segments within the U.S. to protect their customers and their companies through their own comprehensive programs. Every step along the food supply chain must be held accountable for what they supply or handle. It is essential to understand and have confidence that your immediate source of supply also has conducted a preventative controls assessment as characterized in the FSMA. Members of the supply chain must have a clear understanding of the production and processing controls necessary as well as have them functionally verified and validated to address the hazards that may be associated with the foods they handle both up and down the supply chain. Experience has shown that you can’t simply rely on a certificate of analysis (COA), supplier specifications or someone else’s portrayed activities and knowledge. A minor ingredient with functionality in many varied food products, if adulterated, can cause devastating impact to the brand and ultimately public health. The Peanut Corporation of America peanut butter recall is a quintessential example of an ingredient that ended up in thousands of processed products over multiple brands that were recalled over a 6-month period.

2. Development of comprehensive purchasing agreements This is one area that is often overlooked by the food safety professional who might not be involved with the development or review of the agreement. Input from the food safety professional is vital regarding what is required of the supplier to minimize risk. The first area must be that the products comply with all of the federal rules and regulations regarding food or ingredients imported into the U.S. Next, what are the requirements (i.e., frequency, reporting system, planned vs. surprise audits, time to complete corrective actions, etc.) for auditing both by a certified third party and by the purchasing company? Are there indemnification clauses? How will you be assured that they will be paid if the supplier is outside the U.S.? What is the supplier’s program for their suppliers? Will you be notified if the supplier uses a co-packer, changes their suppliers or alters their product in any way? If a COA is required, do you understand what it represents? Is the sampling protocol representative of the lot size? Is the sample being tested from the actual lot that is being sold to you? Who is conducting the tests for the supplier? Does anything in the agreement affect your insurance coverage regarding recalls?

What Are the Key Areas to Be Addressed?

3. Use of accredited third-party audits Use certified auditing programs such as those certified by the Global Food Safety Initiative. Conduct your own audits of high-risk products on a regular basis. If corrective actions are indicated, make sure that they are done. Use auditors who understand the products that they are auditing and the culture of the location in which the supplier operates. The frequency of an audit needs to be assessed. In the past, audit frequency was often dictated by the “risk” of the product and historical data of working with the supplier. Recent situations have shown that the classic risk category assignment alone may not be the sole criterion for the frequency decision. Adulteration for economic fraud may be different in the minds of cultures around the world from what companies in the U.S. are used to

The following are five areas that should be addressed in any company’s food safety program: 1. Development of updated, comprehensive specifications Activities should start with the development of comprehensive specifications. Without well-thought-out specifications, comprehensive purchasing agreements and supplier review programs cannot be developed. Specifications must be developed with input from all applicable departments, including food safety, product development, purchasing, operations, logistics and risk management. Hazards should be identified and addressed. If a proven intervention, such as irradiation for spices, is available, use it.

FOOD SAFETY

revealed that a very low percentage of establishments had even minimal food defense procedures in place, and in fact, FSIS is conducting another survey in 2011 of amenable establishments.[10] As a result, the agency is now moving forward with full expectation that every amenable establishment implements a food defense program commensurate with the guidance provided in “Food Defense Plan Security Measures for Food Defense.”[11]

FOOD SAFETY

dealing with. Therefore, consider how the products are being costed (e.g., percent protein); does this invite economic fraud? Historical information or recent intelligence regarding what suppliers are doing to increase their profits can affect the frequency decision. Conducting your own audits is also very useful. They help to establish relationships. The challenge is the cost of the audit and the resources to conduct it. 4. Preventative controls and testing programs Using a Hazard Analysis and Critical Control Points (HACCP)-based approach, reassess your food safety system in consideration of intentional and unintentional risks as outlined under the FSMA (Section 103). Don’t forget to include food defense in your HACCP evaluations. FDA is expected to publish proposed regulations and later guidance on how to properly identify pertinent hazards and establish preventative controls that are commensurate with current programs and the FSMA. Stakeholders should sample and test incoming products. But testing is not a substitute for a well-developed HACCP program. Develop appropriate sampling programs based on statistical validity and sound sampling methodologies. The challenge is not necessarily biological testing with its inherent challenges of statistical validity, sampling methodology and timeliness of results, but chemical testing. What do you test for? Do you or the laboratories that you use have the experience and capabilities to do the chemical tests? Are they affordable? We have interventions for biological hazards, but not for chemical hazards. Lastly, consider how states like Georgia require testing and reporting of finished products manufactured within the state. 5. Traceability It is important to develop and implement a traceability program. Today, all establishments amenable to the Bioterrorism Act must be able to track and trace products one step forward and one step backward. A recent study conducted by the Office of the Inspector General in 2008 on “Traceability in The Food Supply Chain”[13] revealed only 5

of 40 assorted food products purchased from retail establishments were traceable throughout the entire supply chain. Thirtyone of 40 were traceable to locations that “likely” handled the product, but not all locations could provide the required lotspecific records. The report went on to state that 59 percent of food facilities they investigated did not meet the FDA’s records requirements for transporters, suppliers and customers. Under the congressional mandate outlined in the FSMA, Sections 101 and 204, FDA and USDA must establish a product tracing system to improve the effectiveness of tracing food within the U.S. as well as for imports. Pilot tests are to be carried out by FDA for produce and processed food products that must be reported on by July 2012. It is paramount that the food industry considers how they are currently managing their products’ traceability and how quickly they can access the information through their supply chain. Regardless of pending pilot test results or regulations, stakeholders should be prepared to supply accurate traceability information to FDA and USDA within 48 hours or less of receiving a request. In August 2011, the Institute of Food Technologists hosted a traceability summit.[14] Numerous supply chain stakeholders including FDA attended the meeting. Based upon a review of current industry pilot projects, certain conclusions and challenges were reported (Table 1). During the summit, stakeholders also defined the goals of traceability, which provide valuable insight into this most complex and difficult task. At a minimum, a product tracing system must enable regulators to determine the point of convergence of products to better assess if product categories, brands or lots may be associated with an outbreak. The system then enables industry to determine if they handled the product and can take necessary actions to remove it from commerce. There was consensus

among the participants that improving public health is paramount. However, the benefits to industry of improved traceability should also be considered and articulated. Lastly, it would be very helpful if stakeholders can supply their traceability information electronically to regulators and other members of their supply chain when called upon to do so. The Bottom Line The bottom line for minimizing risk with the global food supply chain is to trust but verify. This starts with a clear understanding of the vulnerabilities both upstream and downstream across your supply chain, and flows to iterative preventive controls and food defense programs that are verified and validated at an adequate frequency. Programs designed to respond to a crisis in a timely and efficient way to protect the brand, the public health and the food industry are key to the planning and preparedness process. Gary Ades, Ph.D., is president of G&L Consulting Group LLC. He is a food safety professional with over 30 years of experience. Craig W. Henry, Ph.D., is a recognized food safety specialist and previously served as senior vice president in the Scientific and Regulatory Affairs Department of the Grocery Manufacturers Association and as the executive director of the GMA Science and Education Foundation. Faye Feldstein had 10-year tenure at FDA, Center for Food Safety and Applied Nutrition, where she was the director of the Agency’s Office of Food Defense, Communication and Emergency Response.

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rowth in hospitality and leisure, promises an increasing opportunity for the beverages industry in India. As the industry expands and more tourists land on Indian shores, hotels will prosper and be better placed to invest in global brands. International tourists will not just lead to adoption of global standards of service excellence, but also improve beverage portfolios. Indian consumers are still to experience a global portfolio of beverages. A step up in hospitality, led by hotels, who are normally seen as the first purveyors of luxury goods, will lead to a higher exposure and engagement with luxury spirit brands. In the end, the Indian consumer will be the ultimate beneficiary. The beverage industry is closely associated with hospitality and any developments in the same, impact the spirits industry as well. The last few months have witnessed a setback to India’s position as a tourism destination. With inbound not being as robust, rooms occupancy has been low and traffic in bars also slowed down. Over the years, hospitality industry has had many successes and new initiatives, though the latest platform promised to “top it all”. A recent initiative called FAITH, by the Indian Hospitality & Travel industry, promises a major step towards consolidating and combining the industry and working with the government in adopting higher reforms and a better position for India as a destination internationally. Situated in the NCR, FAITH is a nongovernment, not-for-profit Indian tourism and hospitality led and managed society, aimed at being a catalyst for the growth

Tea Board moots mapping of tea factories

n a bid to ensure good quality tea production in the country, theTea Board of India (TBI) has proposed to map all the tea factories in the category ranging from A to D, with A being the top quality category. "We propose to map all the tea factories on some of the key parameters. An independent agency will take samples of tea from these factories and certify them with respective categories like A, B, C and D. This will give the factories an identity and ensure the quality production of tea," said Tea Board of India chairman M G V K Bhanu. "We would request Federation of All India Tea Traders Association(FAITTA) to take up the initiative and form a committee, which will decide the parameters on which the mapping will

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be made. A part of the cost of this project will be shared by Tea Board," said Bhanu during his address at the inaugural session of the 24th annual general meeting of FAITTA at Anand on Saturday. Bhanu stressed on the need to spread awareness about the importance of good quality tea among the small tea growers. He also raised concerns about the branding of tea produced at bought leaf factory (BLF) as poor in quality. This causes BLF tea fetch lesser price by about Rs 20 per kg from the average tea price. "There is a need to make good quality tea in India, otherwise tea consumers will start moving to other beverages like coffee. Not always bought leaf tea is inferior in quality. At least 70 per cent of the bought leaf tea should be brought to auction centers," said Bhanu. Bhanu raised concern that the number of bought leaf tea growers is rising rapidly. But their production quality remains a big concern.

BEVERAGES NEWS

A leap of faith for the beverage industry

and development of the travel, tourism, hospitality, aviation, transport, convention, adventure and related industries. The launch was flagged off by a presentation on the Indian Tourism & Hospitality industry by Nakul Anand, ChairmanFAITH and President-Hotel Association of India, highlighting the potential of the industry, its challenges and the way forward. “FAITH is a consolidated effort of the industry aimed towards creating awareness, particularly at the state level, on the economic imperatives of tourism. We aim to address and collectively brainstorm on the macro dynamics of the industry to ensure tourism its rightful place in India’s growth story”, he said. A cross-section of representatives from the top 10 national tourism industry associations announced the formation of the country’s first Federation of Association in Indian Tourism & Hospitality; FAITH, at a ceremony held at the ITC Maurya in the presence of Parvez Dewan, Secretary Tourism, and Arun Maira, Member-Planning Commission. FAITH is intended as ‘one common voice’ for the industry, aimed at abetting tourism whilst evaluating opportunities and addressing challenges. This sounds like a great uplift for The Great Whisky Story and whisky is bound to benefit from this growth. A happier and confident hospitality Industry is a great partner and revenue platform for the beverage partners. With the government supporting the industry, there will a surge in domestic and international tourists. More bars, better services and a finer range will not just an international positioning for Indian bars but will also expose global brands to India. I am hoping that over the next one year, we will have better stocked bars, more folks in those bars and more folks enjoying better brands in these bars...though responsibly! Have FAITH, it will happen! Speaking on the India's tea consumption, Piyush Desai, chairman, Wagh Bakri Tea and member of FAITTA said, "Tea consumption is nearing at 1000 million kg, while production has crossed 1100 million kg. But we are facing stiff competition with branded coffee like Barista, Cafe Coffee Day and now Starbucks. India's tea consumption has to increase to take on the competition." Adding further he said, there was a need to relax 100 per cent import duty on tea as tea producers are losing premium category customers. However, Tea Board chairman denied any possibility to consider relaxation in import duty. "We will not encourage imports," he said. India, which is the largest black tea consumer nation in the world has per capita tea consumption of around 600 grams per annum. Tea production has touched 1126 million kg in 2012, which is likely to increase by 1 per cent in 2013.

BEVERAGES NEWS

At Naturex, fruits and vegetables take the plunge into food & beverage products

vignon, 8th April 2013 – The nutritional benefits of fruits and vegetables are well known, but these foods are largely absent from the average consumer’s daily diet. Naturex offers a simple and original way to incorporate more fruits and vegetables into products.

Thanks to unique technology, Naturex is able to meet the expectations of the savory, sweet, and baby food industries by offering convenient and tasty fruit and vegetable powders. The group operates a 75 meter high structure known as the BIRS tower. This gigantic spray drying facility can create powders that offer clean label and maintain the organoleptic properties of original, freshly harvested fruits and vegetables. Exceptional properties in solution The powder is instantly soluble when poured into hot or cold water. Thanks to the size and shape of its particles, the powder shows complete texture recovery without sedimentation. In a comparative study, the hot spray dried tomato powder settled to the bottom of the container after 4 minutes, while the cold spray dried powder processed in the BIRS tower continued to show an excellent homogenous suspension in the solution. Outstanding organoleptic properties The organoleptic properties of the raw

Beverage maker Coca-Cola launches online store in India; is it looking at multi-brand e-tailing?

oca-Cola has launched Coke2Home.com, an online store for home delivery of the group’s various beverage products. This is one of the rare such instances of a large consumer products maker getting into direct selling through an online channel in India. The website is run by Hindustan Coca-Cola Beverages Pvt Ltd, the largest bottling partner of The CocaCola Company in India. It is a part of The Coca-Cola Company’s Bottling Investments Group and is responsible for manufacturing, packaging, selling and distributing beverages under the trademarks of The Coca-Cola Company.

Hindustan Coca-Cola Beverages has 24 bottling plants across India, covering approximately two-thirds of bottling operations for the Coca-Cola group in India.Its products include key brands such as Coca-Cola, Thums Up, Sprite, Fanta, Limca, Kinley Soda, Schweppes Tonic Water, Maaza and Minute Maid. The service is currently available in Ahmedabad municipality only. Customers need to book their orders before 12 noon to get products home-delivered the same day. You can also place bulk order or monthly supplies of products. Minimum order for delivery is Rs 300, as of now. The company accepts multiple modes of payment, including cash on delivery cash card, credit card, debit card

material are preserved and ready to delight gourmet palates. “Drying puree instead of juice makes the difference in terms of texture and mouthfeel. For example, the original fiber content of the apple is maintained throughout the process. When pouring into cold water, our apple powder can recreate unique and home-made style applesauce without the use of thickener,” explains Frédéric Randet, business manager. The powder also has a deeper color when compared to those created using hot drying methods. The taste is fresh, intense, and maintains the authentic taste of the fruit or vegetable. Clean label: a key advantage The technology of the BIRS tower, with its unique dimensions and gentle process (< 50°C), guarantees a slow and cold drying of the puree that is poured into the top of the structure. As a result, Naturex offers pure 100% fruit or vegetable powders, free from any carriers or additives. To display these powders, Naturex is launching several informative videos and a dedicated page on its website

and net banking. What is interesting is how the firm has structured the venture to sell its products which in effect amounts to multi-brand e-tailing in which foreign investment is not allowed. We are getting in touch with the Coca-Cola spokesperson in India for more details and will update when we have more information. The country’s top FMCG firm Hindustan Unilever said it is looking at building capabilities for e-commerce as a stronger distribution channel. The firm had not given details whether it is looking at launching its own e-com property as a direct sales venture or wants to strengthen its existing network catering to other e-tailers who sell its products. Oil & Food Journal Vol. 08, Issue 08, June 2013

BY COOKSON BEECHER

he crunch of a good organic apple. The taste of a sun-warmed organic tomato. The welcome chunk of an organic potato in a potato salad. The distinctive flavor of an organic hamburger. Without a doubt, fresh organic foods are a popular mainstay in grocery stores and at farmers markets across the nation. But what about processed organic foods such as applesauce or juice, tomato sauce, frozen meals, potato chips and sausages? Not to mention organic ice creams and desserts? Or jelly beans and cookies and even vodka? How are they processed and what “processing aids” are used to make them? Which ones are allowed and which ones are prohibited? As a consumer, this is an important issue because the growth of processed organic foods has been explosive. It’s definitely not just fresh produce or meat anymore. Not surprisingly, a great deal of thought has gone into this. According to an Organic Trade Association backgrounder, the National Organic Standards Board in 1995 completed a “massive review” of Oil & Food Journal Vol. 08, Issue 08, June 2013

materials used by organic producers. The board’s recommendations served as the foundation for what is referred to as the “National List.” In 2003, shortly after the USDA’s National Organic Program was officially implemented in 2002, the National List was updated and continues to be updated. The importance of the list was highlighted back in 2001 in comments made by Keith Jones, then program manager of the USDA’s National Organic Program, during a videoconference sponsored by the Institute of Food Technologists. “We know that there are a lot of common processing aids that are used across the country that are not on the National List,” he said. “And if it’s not on the National List, come Oct. 21,2002, you cannot use that particular ingredient or processing aid and label a product as organic.” Although the emphasis was, and continues to be, on organics, food safety does come into the picture. For example, some of the processing aids are cleaning agents used to wash packaging

FOOD PROCESSING

How does the organic industry regulate processing aids?

equipment. As investigations of food poisoning outbreaks have often revealed, potentially deadly pathogens can harbor in processing equipment. The Food Safety News series on processing aids is sponsored by Micreos. For an item to be included on the list (there are actually six parts to the list, the last several of which deal with processing aids), it must be approved by the National Organic Standards Board and the USDA. There are hundreds of items ranging from agar (vegetarian gelatin substitute produced from a variety of seaweed vegetation) to yeast on those lists. Anything not on the lists cannot be used. In line with the goals of the National Organic Program, synthetic processing aids should be kept out of organic foods whenever possible. But that’s not always possible, because some of the processing aids needed to make some processed foods just aren’t available in organic or natural forms. Only in those cases, can synthetic alternatives be approved. But even then, certain criteria must be met. For example, the nutritional quality of the food must be maintained when the synthetic substance is used, and it must be listed as Generally Recognized as Safe (GRAS) by the Food and Drug Administration, which means it contains

FOOD PROCESSING no heavy metals or other contaminants in excess of tolerances set by the FDA. Its use must also be compatible with the goals of organic handling. Advocates for organics say that the importance given to processing aids is yet another example of the emphasis organics puts on how food is produced — from the seed to how the food is processed. It’s what consumers expect, they say. “It’s important for people to know just how well-regulated organics is,” Charlotte Vallaeys, director of Farm and Food Policy at The Cornucopia Institute, told Food Safety News.com. “It’s not just about ingredients but also about processing aids.” Organic foods are produced using farming methods that don’t use inputs such as synthetic pesticides and chemical fertilizers. In addition, organic foods cannot be processed with irradiation or industrial solvents. Synthetic and nonorganic processing aids that are OK The processing aids on the National List are tied to labeling. Processed products can be labeled as “100 percent organic” as long as the processing aids used to

make them are also organic. For a product to be labeled as “organic,” any synthetics in the product may not account for more than 5 percent of the total product, by weight. A common example of allowable processing aids is the use of organic acid(s) such as lactic, acetic, or citric used as part of a livestock carcass wash that is applied before the carcass is chilled. Corn starch and baking soda are some other examples. Some examples of synthetics allowed in processing aids for organic products are familiar items to many people, among them ascorbic acid, a synthetic form of vitamin C, which is used to keep fruits from turning brown when they come into contact with the air. Other familiar examples are carbon dioxide (to carbonate beverages) and Xanthan gum, a thickener. Other allowable synthetics are not so familiar. For example, acidified sodium chlorite can be used as a secondary direct antimicrobial food treatment and indirect food-contact surface sanitizer. And ferrous sulfate can be used for iron enrichment or fortification of foods when required by regulation or recommended by an independent organization. Other allowable synthetics are ethylene for post harvest ripening of tropical fruit and degreening of citrus; phosphoric acid for cleaning food-contact surfaces and equipment only; and sulfur dioxide for use only in wine labeled “made with organic grapes,” provided that the total sulfite concentration doesn’t exceed 100 ppm. The “nonsynthetics” allowed in the category of “nonorganic substances” include citric acid; rennet (often used

for cheese-making); dairy cultures; diatomaceous earth (as a food filtering aid only); tartaric acid made from grape wine; and yeast. Examples of allowable “nonorganically produced agricultural products” are cornstarch (native); kelp for use only as a thickener and dietary supplement; highmethoxypectin (to gel jams and jellies); and water-extracted gums (for thickeners and stabilizers) such as arabic, guar, locust bean and carob bean. Examples of bacteriophages (natural viruses that can kill foodborne pathogens such as E. coli, Listeria and Salmonellaamong others) that are allowed to be used as processing aids are Listex P100 and SalmoFresh. Listex can be used to eradicate Listeria in ready-to-eat meats, and SalmoFresh can be used to kill Salmonella on meat and poultry to be ground up for patties or other food items. Both of these foodborne pathogens can cause serious illnesses and even death. Listex and SalmoFresh are GRAS (generally regarded as safe) and OMRIlisted, which means they are approved for organic use in the United States. Because the USDA classifies them as processing aids, they don’t have to appear on the label. As for ingredients such as sodium nitrite, sodium nitrate and polysorbate 80, often seen on labels on non-organic processed foods, they aren’t on the National List and therefore can’t be used in organic processed foods. That’s true for any processing aid not found on the list. For a processing aid to get on the list, someone or some company must petition for it to be included and it must go through a comprehensive analysis to ensure that it fits in with the goals of organics. It generally takes one to two years to go through the process. As for food handling, high pressure processing (HPP), which kills pathogens and protects food quality, and UV light (not irradiation), which can extend the shelf life and quality of some produce, both may be used in organics. One of the ‘no-nos’ Hexane: “the dirty little secret” A byproduct of gas refining, hexane is a volatile solvent used with the FDA’s approval to extract oil from soybeans, Oil & Food Journal Vol. 08, Issue 08, June 2013

Oil & Food Journal Vol. 08, Issue 08, June 2013

as other meatless products such as turkey deli slices and sausages, said his company avoids using hexane because it doesn’t belong in natural foods. “How much of a percentage of gasoline do you need in your food?” he said. He sees the use of hexane as “a sleeping giant” in the industry. When people learn about it, they’re horrified,” he said. “But most consumers are more concerned about GMOs and sodium in their food.” His company has always used organic soybeans and traditional lower-tech ways to process them. Even so, he said that even though “it’s indisputable” that traces of hexane can be found in some foods, the food-safety aspects of this are still to be determined. “I don’t think there have been any longterm studies on this, and I can’t say I’ve read any peer-reviewed literature on it, but we prefer to play it safe,” he said.

FOOD PROCESSING

nuts and olives. Because it’s inexpensive and so effective, hexane is used as a processing aid in many (but not all) veggie burgers and other meat substitutes, health bars, and even some baby formula. “The dirty little secret of the natural soy foods industry is the widespread use of hexane in processing,” says a Cornucopia report. Not surprisingly, hexane, which is classified by the Centers for Disease Control as a neurotoxin and by the Environmental Protection Agency as an air pollutant, is not on the National List of allowable processing aids. Out in the marketplace, consumers looking for meat substitutes, with the thought that eating less meat is good for the planet, often buy “garden burgers” whose soybeans have been processed with hexane, without knowing it. “You’ll never see a label on a garden burger that says “soybeans in this product were immersed in hexane,” said Vallaeys, Cornucopia’s director of Farm and Food Policy. She said that if a non-organic product contains a soy protein isolate, soy protein concentrate, or texturized vegetable protein “you can be pretty sure it was made with soy beans that were processed with hexane — dumped into huge vats of hexane.” “But when buying foods labeled ‘100 percent organic,’ you can be sure they weren’t put into hexane,” she said. The Soyfoods Association of North America says that hexane is used only in the initial steps of soy processing and that almost all of it is eliminated by the time the soy ingredients are used in soy products. But independent testing commissioned by Cornucopia found hexane residues in soy oil, soy grits and soy meal, according to itsreport on this. So what does this mean for the consumer? It’s hard to say because the FDA doesn’t monitor hexane in foods, and it doesn’t require companies to test for it. “There are so many things we don’t know about this,” said Vallaeys. “But we do know that it’s a really dangerous substance.” Seth Tibbott, founder and CEO of Tofurky, a company that makes a soybased turkey-substitute roast as well

The Cornucopia Institute provides a rundown of soy-based veggie burgers and health bars that are made without using hexane as a processing aid and those that are. A cleaner label? Can there be a “cleaner label” than organics? Is it the best label going for consumers looking for foods with human health and the health of the environment in mind. Organic advocates say that a 100 percent organic label is hard to beat. They point out that organics is about transparency— letting the consumers know what’s in the food they’re eating and how it was produced and processed. In addition, for a food to be certified as “organic,” it needs to go through a third-party certification. Not only that, the certifier has to be certified by the USDA. It would be hard to beat that combination of assurances, they say. “A lot about organics is about following the “precautionary principle,” said Cornucopia’s Vallaeys, citing hydrogenated oils, which studies have shown lead to the gathering of trans fats in the body, as a good example of that. “It was never allowed in organics.” Curtsey: Food Safety News

EDIBLE OIL

Indian Oil Corporation Develops Technology to Make Jatropha Oil Biodiesel

he Indian Oil Corporation Limited—an Indian stateowned oil and gas corporation— has successfully developed and commercialized a technology to coprocess non-edible vegetable oil in the existing diesel hydrotreating (DHDT) units of a petroleum refinery to make biodiesel. This is the first time in India when jatropha oil has been used for coprocessing in a petroleum refinery. This technology for co-processing of jatropha oil has been developed by the R&D Center of IndianOil located at Faridabad. Jatropha curcas is a species of flowering plant in the genus Jatropha in spurge family, Euphorbiaceae, that is native to the American tropics, most likely Mexico and Central America. It is cultivated in tropical and subtropical regions around the world, becoming naturalized in some areas. Currently the oil from Jatropha curcas seeds is used for making biodiesel fuel in Philippines, Pakistan and in Brazil, where it grows naturally and in plantations in the southeast, north, and northeast of Brazil. Likewise, jatropha oil is being promoted as an easily grown biofuel crop in hundreds of projects throughout India and other developing countries. During the development of this process technology, IndianOil has also developed a process for demetallation and degumming of vegetable oils. It should be noted that the demetallation of oils is a prerequisite for the сo-processing since metals have a negative effect on the catalyst in a DHDT unit. A total quantity of 200 tonnes of Jatropha oil was supplied by CREDA Biofuels Limited (A JV of Indian Oil and Chhattisgarh Renewable Energy Development Authority). This oil was

used for the demetallation and degumming using IOC—R&D developed process and subsequently co-processed in the Chennai Petroleum Corporation Limited (CPCL) refinery at Manali. Successful co-processing was demonstrated in the DHDT Unit of the refinery. Operating with a specific catalyst developed by the R&D Centre of IndianOil, the DHDT unit used up to 6.5% of jatropha oil along with refinery stream. During the trial, the diesel cetane number improved by 2 units and its sulphur content was reduced. Moreover, the inlet temperature of the reactor could also be reduced by 100°C, therefore increasing energy efficiency. Conventionally, biodiesel is produced by the transesterification process which requires a separate plant to be set up. Biodiesel produced through transesterification route has inferior oxidation stability, lower energy content and causes more deposits in the engine. Because of that, such biodiesel is not accepted very well by the automotive industry. However, the novel co-processing technology developed by IndianOil overcomes these disadvantages and

produces biodiesel with higher cetane number, good oxidation stability and lower density. In addition, co-processing technology can be deployed in an existing petroleum refinery infrastructure with minor modifications and does not require a separate plant. This process also costs less as operating cost is reduced by ~50% in comparison to a conventional biodiesel plant.

Oil & Food Journal Vol. 08, Issue 08, June 2013