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Dear Readers

From the Desk of Editor

ost of you must have heard or read that the Agriculture Minister Sharad Pawar has suggested to the Gujarat Milk Marketing Co-operative Federation to expand its operations to multiple states because such a move would help usher in another white revolution across the country benefitting farmers in other States too. He considers that it’s high time for other states to have an Amul co-operative model, with this he also stressed on the need to improve livestock breeds and step up quality and quantity of fodder production in the country. Well I think though the idea is a grand one, but it needs a modulated added value, what I mean by it is that wouldn’t it have been more feasible if the Agriculture Minister would have urged the whole food industry to work on the basis of Amul strategy to create another FOOD revolution……….an uprising that would make India a thriving global aspiration. It seemed that the eminent minister had become quite impressed by the working strategy and immense success of GCMMF during the inauguration of Dudhmotisagar Dairy at Dharuhera in Haryana – a dairy with a processing capacity of 30 lakh liters per day has been set up by Mehsana District Cooperative Milk Producers Union Ltd, a member union of GCMMF, with an investment of around Rs 450 crore. This new facility will help further strengthen Amul’s stronghold in Delhi and the National Capital Region, the fastest growing milk market. Amul sells about 24 lakh liters per day in NCR, where the pouched milk market is pegged at 50 lakh liters per day. Farmer members of the milk co-operative get as high as 85 per cent of the price paid by the consumer. The spread of Amul’s operations to Haryana will benefit farmers in the region. Now to my point - why is our honorable minister stressing on using the Amul model only on milk revolution, why not on other agriculture goods. Let’s say for example we use the same way, strategy and plan for fruits and vegetable marketing, food processing, potatoes and poultry expansion and promotion. Amul has already achieved the paramount in milk and allied market, now it’s high time they get into experimentation mode and enter the green and processing zone. Their model is of such classic theme that not only will it benefit the farmers immensely but it will help India to be the food basket of the world. Change in climate has created a worrisome havoc globally…imagine now the scientist are claiming that banana is becoming the food that is feeding millions all over the world and hence has won over the race over potato to become the number one staple food. Transformation in climate and also with a quivering economical condition of the globe, we need to be alert and ready to face all challenges. Food revolution is the need of the hour we have to ready and updated in all aspect that’s why I intensely push on the point to form a model where our poor farmers benefit and at the same we achieve the superlative symbiotic food marketing approach – thus carving a path to make India a country without scarcity of food. Kurien built Amul as an organization but there is no single hero who built the Amul brand. Today it is one of those brands who pattern of success has to be cross bred in other sectors too. All we need is a person in charge with the Kurien effect and thought process. We need to really think hard now and work upon to make our agricultural and food sector like the cooperative model pioneered by Amul - a union of primary village dairy cooperatives- came to be known as the "Anand pattern" cooperative system. A three-tier structure that comprises village societies, district level dairy unions and a state level federation. Each tier is economically independent of the others and comprises representatives elected from the tier below it. The organizations at each level are governed by their own by laws, and managed by democratically elected boards... Amul's product development was driven both by the spirit of the cooperative system and profitability.

Oil & Food Journal Nov 2012

-Editor

Oil & Food Journal Nov 2012

Contents Contents

News

12 Seattle-based coffee giant Starbucks opens first India store in Mumbai 12 Coca-Cola to set up India's biggest water plant in Gujarat 36 New vectorโ ข resealable matrx delivers convenience consumers can hear and feel

INDIAN COCOA SECTOR ROUGH ROAD AHEAD

Regional brands aim high, attempt to carve out pan

Innovations presented in unity

India presence

37 Malaysia Becoming a

Halal Logistics Hub Frost & Sullivan

48 Soft Drinks, Beer, Mineral water, Juices,

sectors have shown positive growth in last few years BY Hari Menon

50 24

PACKAGING OF BEVERAGES

Health benefits of functional foods By: Dr. J. Lewis

Fellowship of the Food Chain India gets traceability 58 Chocolate, caramel, coffee & co

Food and Beverage Distribution 40 Information Integration Advantages 10

Oil & Food Journal Nov 2012

Dรถhler develops new "brown" flavours that go with the spirit of the times!

Oil & Food Journal Nov 2012

News Seattle-based coffee giant Starbucks opens first India store in Mumbai

tarbucks inaugurated its first store in India in a historic building in southern Mumbai as the Seattlebased coffee giant seeks growth in a market long associated with tea drinkers. ``It is perhaps the most elegant, beautiful, dynamic store we've opened in our history,'' chief executive Howard Schultz s a i d i n a n i n t e r v i e w.

After over six years of studying the local market, Starbucks is making a rapid-fire entry into Asia's third-largest economy. Coffee houses are still a relatively new trend in India, and the chains already in business sell cappuccinos and lattes well below Starbucks' usual prices. The company, in a joint venture with Tata Global Beverages, plans to open two additional stores in Mumbai in the Taj Mahal Palace hotel and in the Oberoi hotel across town, before launching in N e w D e l h i e a r l y n e x t y e a r. For the flagship Mumbai store, Starbucks chose the historic Elphinstone Building in the Horniman Circle neighborhood of south Mumbai, not far from a vast Hermes shop and a stately local park maintained with funds from the family foundation of Italian designer Ermenegildo Zegna. The flagship, which can accommodate 120 people, is a cool, soaring space, with hand-carved wooden screens, thick tables of solid Indian teak, painted vintage trunks and old leather-bound books. Schultz said he hoped the effect would be like ``walking into a shrine of Starbucks coffee.'â&#x20AC;&#x2122; The shop will offer free Wi-Fi and stay open until 11 p.m. Monday through Thursday and 1 a.m. on weekends, unusually late for Mumbai cafes. The 42 menu items reflect local as well as Western tastes, featuring items such as

Oil & Food Journal Nov 2012

Elaichi Mawa croissants, made with cardamom and milk solids, and tandoori paneer rolls. The prices position Starbucks at the premium end of India's coffee cafes, with a 12 ounce cappuccino retailing for a little over $2. ``We've been trying to in a sense crack the code here,'' Schultz said. The company decided early on they needed to enter India with a local partner, as they did in China. Schultz said he spoke with many interested parties, but none ``had the complete suite of things we felt were necessary to build a big, enduring business. That changed the day we met Tata.'â&#x20AC;&#x2122; Schultz came to India in November 2010 to begin ``substantive conversations'' with the salt-to-SUVs Tata conglomerate, which were followed by meetings in Seattle and a January 2011 coffee sourcing agreement with Tata Coffee. A year later, Starbucks announced it had formed a 50-50 joint venture with Tata Global BeveragesBSE -2.59 % called Tata Starbucks Ltd. At the time, the vice chairman of Tata Global Beverages, R.K. Krishnakumar, said the joint venture hoped to open 50 stores by the end of 2012, a statement Starbucks has since tried to distance itself from. The company won't comment on expansion targets, but Schultz pointed to Starbucks' presence in other markets as examples of the scale he is interested in. There are more than 700 outlets in mainland China, he said, and 1,000 in Japan. While those numbers are dwarfed by the over 10,000 outlets in the United States, Asia has emerged as a key driver of growth. ``Asia and the entire Pacific Rim present one of the most significant growth opportunities within Starbucks Coffee Company,'' Schultz said. ``India is at the core, along with China.'' Starbucks said in April that China, where it opened an average of one store every four days during fiscal year 2011, will likely be its second-largest market by 2014.

Coca-Cola to set up India's biggest water plant in Gujarat

everages giant Coca-Cola plans to build the country's biggest production facility for packaged water in Gujarat for more than Rs 200 crore, an official involved in the development said.The Greenfield plant will be set up by Coca-Cola India's bottling arm Hindustan Coca-Cola Beverages.It will have a capacity to produce more than 700 bottles per minute and, besides water brand Kinley, it will test flavoured and fortified waters. "The plant may also include production lines for carbonated drinks," the person said.A Hindustan Coca-Cola Beverages spokesman neither denied nor confirmed the development, but said the company is investing in manufacturing and distribution capabilities for packaged drinking water without sharing details.The development is part of CocaCola's push to accelerate growth in India following a global restructuring last week that said the new operating unit is in keeping with business priorities positioned to capture 'latent growth potential' in the region.Both Coca-Cola and rival PepsiCo are moving to broadbase their portfolios to include functional and fortified beverages and reduce dependence on core cola.The retail packaged water market in the country is estimated at about Rs 2,000 core, growing at about 15% a year. Small and regional brands account for almost three-fourths of the overall market in this low-margin business. With limited consumer brand pull, the category is heavily dependent on distribution channels, supply chains and retail p r e s e n c e . G l o b a l l y, C o c a - C o l a ' s packaged water brands include Dasani and Vitaminwater Zero. In India, however, the firm sells only Kinley, which competes with category leader Bisleri, owned by bottler-entrepreneur Ramesh Chauhan, PepsiCo's Aquafina, Tata Group's Himalayan and Narang Group's Qua. Coca-Cola's other premium water brand in India, Bonaqua, sells only in and around Delhi.

Oil & Food Journal Nov 2012

News

INDIAN COCOA SECTOR ROUGH ROAD AHEAD

umping by foul means by unscrupulous Chinese operators, operating cross-border also from Malaysia, Singapore or Indonesia, engage in manipulative and unfair trade practises by pushing not only low grade and poor quality products on unsuspecting Indians, but also manipulating their own export agencies to provide them with incentives to do so in terms of cash support as well as misdeclarations about the quality and origins of their products and wrongly enjoying massive duty concessions to gain windfall profits. Lacklustre monitoring and misplaced policies of Indian government adds to the hidden miseries of unsuspecting Indian consumers and industry. On one hand, WHO specified CODEX specifications are over looked while allowing low grade and contaminated imports of such products into India. On the other hand, government provides a discount of 50-65 per cent by means of import duties concessions on such products. The foreign traders and exporters lure Indian consumers by misusing the AIFTA treaty, a free trade treaty between India and ASEAN countries, meant to boost exports from India, by pretending and obtaining false origin certificates certifying goods are of ASEAN origin whereas in fact those goods are from Africa or other non-ASEAN origins, without adding the required value to such goods, and by restrictive trade practices forbidden by such treaties as well as WTO. Malaysia-based operators, hell bent on destroying Indian industries and unduly influence Indian consumers, are systematically destroying Indian processors by selling cheap cocoa byproducts on one hand and exploiting the concessions of duties on the other hand. They are exporting 95 per cent of total cocoa produced even though not much of

Oil & Food Journal Nov 2012

Cocoa fruit is available in Malaysia (99 per cent of all cocoa fruit is imported from Africa for crushing). They only have 1 per cent local fruit and 99 per cent imported cocoa beans, paying absolutely no imports duty, and adding no significant values either. E.g. if cocoa beans are available from Africa at $ 2500/mt, they make an all inclusive processing margin (labour, overheads, costs and profits) of a mere $ 250! So one wonders how even after processing locally with imported beans of cocoa, they are giving tough competition to processors in India and elsewhere in the world. According to the Indian processors the quality of imported cocoa from Malaysia is very poor and due to treaty with India they are able to send it to India with no additional cost while on the other hand geographically Malaysia is not far from Southern coasts of India. Another Cococa processors says â&#x20AC;&#x153;it takes very less time and logistics cost if they import cocoa from Malaysia to South India on the other hand Cocoa by-product takes equal time if we bring them from other parts of Indiaâ&#x20AC;?. Although such low value does not merit any concessions, such exporters allegedly manipulate data and their certifying agencies to comply, in order to obtain such major concessions; and certifying agencies turn a blind eye to promote their brethren, obviously for fees. Indian processors also say the import duty on Cocoa beans in Malaysia is 0 per cent; however the same is 30 per cent in India. So the local processors have no standing competition with the cocoa coming from Malaysia as they enjoy 5065 per cent advantage over domestic industries, forcing some of the big processors to turn importers of products instead. Paradoxically India has only 1015 per cent duty on cocoa products imports from ASEAN countries and

Malaysian importer have found this loophole in the system thereby exporting low quality cocoa product with only 1015 per cent import duty to India and making huge profit margins along with their counter parts in India. This has not only resulted into damaging for local processors but also harmful for Indian consumers. Malaysian processors are also not following norms set by CODEX for food safety. Further miseries are added by similar operators from Indonesia, except with one twist; they grow the cocoa fruits, of much lower quality than India, but the Indonesian exporters have successfully lobbied with their government to levy upto 15 per cent export tax on cocoa fruits. This makes exports of cocoa fruits outside Indonesia impossible. India's processing capacity of 86,000 tons of Cocoa Beans is under threat from Countries like Malaysia, Indonesia and Singapore. According to a Malaysian exporter, Malaysia produces only around 5,000 T of beans grown locally and rest of the 390,000 T beans are imported from Africa. The total Output of Malaysian Cocoa products is about 400,000T i.e. approximately 1 per cent local fruit and 99 per cent imported beans from African countries. Indonesia on the other hand will not sell its cocoa fruits to the world, but instead enjoy benefits for concessional exports from its domestic industries. So now is the right time for the government to increase cocoa production to meet the rising demand from the 15-billion-rupee chocolate industry and to cut dependency on imports of low quality cheap cocoa coming from imports. This will not only help India in saving foreign exchange but also provide guarantied buyers for farmers, brighter future for processors and good quality products for consumers.

Happy De epawali

A lot of things you buy this Deepawali could be packed on our machines. With Clients throughout India and Asia Pacific Region, no wonder its frequent to grab a product packed on PACKIT machines. It could be dryfruits, tea, sugar, nuts, spices, wafers, chips, cheeseballs, pulses or something else. Each packed greets you with extraordinary freshness and assurance of quality of packing. And if you are already a valued customer we are sure you would agree with us.

Oil & Food Journal Nov 2012

Rising Brands

Regional brands aim high, attempt to carve out pan

India presence

n the 1990s, a north-based biscuits company, Bakemans Industries, gave industry leaders Britannia and Parle Products sleepless nights with its aggressively-priced offerings in the Marie and Glucose segments. The regional brand with an enviable 13% share, most of it coming out of Uttar Pradesh, was going places - until it decided to go national. An attempt to carve out a pan-India presence ended in disaster with it plunging into a sea of red. To wipe out its losses, Bakemans raised prices on its home turf, in Uttar Pradesh. That move proved to be the proverbial final nail in the coffin; Bakemans not only failed to become a national player, it lost pole position in the market in which it once ruled the roost. The company was put up for sale, but even the acquisition by a Sri Lankan biscuit player ended calamitously. 16

Oil & Food Journal Nov 2012

Rising Brands brands seeking to go national. One, go national only if you have a differentiated product; and two, only if the regional brand has operating margins of at least 15%. He advocates a 'big bang theory when going national.' "Trial and error cannot work. You cannot sit in Kanpur and understand Karnataka or Kerala," he adds.

The Bakemans debacle serves as a grim reminder for regional brands seeking to go national. "Their ability to grow beyond their home turf is typically stymied not just by capital but also by a difficulty in building the right kind of organisation to create national strategies and more sophisticated brand launch and promotion models that can be sustained," explains Justin Sargent, managing director, Nielsen India.

group four years later, says going national is not an option but a necessity. "If one doesn't have the resources, build the resources but go national. It is all about taking risks because regional brands cannot grow beyond a point." However, he does add a rider. "The mantra has to be: differentiate or die," says Patel who has launched brands like Whitetone face powder, Jinjola talcum power, 7X itch cream and Quco hair perfume.

Such apparent dangers are not deterring a clutch of regional powerhouses like Ghari detergents in the North, Wagh Bakri tea and Balaji Wafers in the West, SAJ Food Products (which owns Bisk Farm) in the East and Cholayil (which owns brands like Medimix and Cuticura) in the South from looking beyond their backyards.

The New Delhi-headquartered personal care firm Vi-John is another regional player that is putting up national outposts. Says CEO Vimal Pande: "Our field force in the South and the East is now as strong as it is in the North. Our presence was weaker in Maharashtra and we are in the process of strengthening it."

Consider Wagh Bakri, which rules the roost in Gujarat. Over the past couple of years, the company has forayed into Mumbai and New Delhi with its tea lounges. Says Parag Desai, executive director at Wagh Bakri: "Our strategy is to completely swamp every district in one state in distribution and marketing before moving into another."

Jyothy Laboratories is a great example of how a single-product (Ujjala liquid fabric whitener) regional marketer went on not just to command a national presence but to acquire a multinational rival - Henkel India, the Indian arm of the German laundry & home care corporation. Post-Henkel, Jyothy today is a multi-brand consumer products company with a pan-India, rural and urban presence.

Darshan Patel, a co-founder of Paras Pharma who broke away from his elder brother in 2006 to start up the Vini

Oil & Food Journal Nov 2012

Ullas Kamath, joint managing director of Jyothi Laboratories, has a few tips for

There are those like the Rajkotheadquartered Balaji Wafers that prefer caution to extravagant expansion. Balaji has relied largely on word-ofmouth publicity to capture consumer mind space over the past two decades. Managing director Chandu Virani says, "I do not see the need to be overtly ambitious. We have financial investors chasing us all the time but we do not have the appetite for a grand national plan. It will happen very gradually," he explains. Also being cautious is the 500 crore SAJ Food Products. The company, which dominates eastern India with biscuit brand Bisk Farm, is now venturing into other markets, albeit selectively. Says managing director Vijay Kumar Singh: " Each state especially in foods has its own nuances and it is pointless to get into markets where your brand cannot break the clutter and you land up being a me-too." Brand consultants say entrepreneurs like Virani and Singh have good reason to play it safe. "It can be a vicious circle of dreaming big without the resources. It makes good business sense to grow state-wise and each state in India is the size of France. So why go on this big expensive ego trip to go national," asks Sunil Alagh, chairman, SKA Advisors. Alpana Parida, president, DMA Yellow Works, a brand consultancy, says there are not too many regional brands that have a differentiator other than price. Damodar Mall, foods director at Future Group, says, "Unless one has the right product, adequate production facilities and a supply chain to back a national venture, national food launches can fail miserably."

Oil & Food Journal Nov 2012

Efficient Packaging

Innovations presented in unity

타 High productivity, flexibility, cost savings

and low energy consumption are just some of the characteristics that food manufacturers expect from packaging lines. Recently, the first horizontal flow wrapper Sigpack HCUR with ultrasonic sealing was launched by Bosch Packaging Technology. The machine can be integrated with the Intelligent Transport system (ITS), a new product infeed unit for horizontal flow wrappers. The Sigpack HCUR is based on the established Sigpack HCx machine platform. Equipped with the new ultrasonic sealing technology, the machine produces packages of the highest quality with an output of up to 800 pieces and a maximum film speed of 80 meters per minute. The combination of the horizontal flow wrapper with the ITS is one of the latest innovations in packaging technology globally. 20

Oil & Food Journal Nov 2012

Efficient Packaging To allow constant production at high speeds, it is essential that products are evenly fed to the film; this proves to be a demanding challenge. The ITS by Bosch Packaging Technology fulfills this requirement. It balances out product flow irregularities, creates defined spaces and synchronizes product and film speeds. The ITS takes over the individual feeding of each product to the packaging machine and replaces the common infeed chain including the interval and acceleration line. Consistent product intervals are generated in traditional methods by braking the interval and then accelerating it again. The ITS uses the same principle but requires less time and storage space. In addition, the system ensures careful product transport of sensitive and nonaccumulating food and confectionery products, such as bars. As a result of a small deflection radius, the ITS can transfer products directly to the packaging material of the horizontal flow wrapper. Despite the compact design, it achieves high output levels. The ITS is a mechatronical system powered by linear motors, in which over 30 carriers are moved independently and wear-free. A programmable logic controller (PLC) monitors and permanently regulates each carrier. In order to fulfill high demands for precision and dynamics, an Ethernet-based real-time bus system is used. This enables the ITS to reach a speed of more than three meters per second. A multi-position detection system ensures that the exact position of each carrier can be determined at all times â&#x20AC;&#x201C; a reference run is not required. While the products are fed into the horizontal flow wrapper Sigpack HCUR using the ITS, the film coming from the machine's reel of unwinder is shaped into a tube and the long side is then sealed using ultrasonic sealing technology, which replaces heat or cold sealing technologies used to date on flow wrappers. In contrast to heat sealing, with ultrasonic sealing the jaws do not need to be preheated, resulting in 21

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remarkable amount of energy savings . Instead of using heat, this method joins thermoplastic materials together by emitting high frequency vibrations. The energy required for sealing is only created in the precise sealing area. Another advantage of using ultrasonic sealing is that the infeed system does not heat up. Heat is only developed directly at the jaws. If a machine stops during production there is therefore no

risk of products melting, resulting in less product wastage. The ultrasonic sealing technology enables energy to be controlled directly, which allows for a ramp function, meaning the production can be easily stopped and started again. The sealing is done within a specific sealing window for the film and can thus respond flexibly to speed variations in the process. The machine can also be sped up directly from zero to an output of 800 products per minute without compromising the quality of the sealing seams. In the case of heat sealing at such high speeds there may be open or burned sealing seams because cooling or heating up the sealing tools is timeconsuming. Another advantage of ultrasonic sealing is a reduction in material costs as it allows manufacturers to use film materials with lower costs. The films required for heat sealing to date can be replaced by thinner, much lower cost films. Ultrasonic sealing also generates thinner longitudinal and cross seams, which requires less packaging material. Other possibilities for cost savings are created by the much higher processing speeds when using ultrasonic sealing, which enables higher productivity. Bosch's ultrasonic sealing technology also offers decisive benefits in terms of p r o d u c t s a f e t y. I n c a s e o f contaminations of the sealing seam, the new technology reduces the risk of poor

sealing quality. The vibrations generated by ultrasonic sealing equipment displace product remains from the seam area and thus guarantee a secure seal. The use of ultrasonic sealing technology also benefits the ongoing operation of the machine. The possibility of film sticking to the sealing jaws, the bunching of materials and the production of unsealed packages is lowered. This reduces cleaning efforts and decreases downtime. Because ultrasonic sealing is a cold technology it is not necessary to clean hot sealing jaws, which reduces the risk of burn injuries for the operator. For food manufacturers this means significantly improved operating times and increased operator safety. "Flexibility and high productivity coupled with sustainability are extremely important for our customers. The cost savings associated with using ultrasonic sealing arising from lower energy consumption, material savings and higher machine availability provide much greater freedom of action. The ITS also provides high flexibility in terms of adjusting the production volume," explained Philipp Schenker, Product Manager at Bosch Packaging Technology. Food manufacturers benefit from using ultrasonic sealing combined with ITS: on the one hand the use of ultrasonic sealing represents a cost- and processefficient alternative to traditional sealing technologies. On the other hand, the ITS offers key advantages in terms of flexibility, speed and space requirements compared to traditional infeed systems. In addition to the stated advantages of ultrasonic sealing technology and the ITS, the machine model Sigpack HCUR provides convenient operating systems with touch panels and userfriendly functions for setting and saving various processing parameters. The machine's design provides easy access to all of the machine components. Philipp Schenker, Product Manager at Bosch Packaging Technology

Oil & Food Journal Nov 2012

Beverages Packaging

PACKAGING OF BEVERAGES T

he beverage industry is one among the front-liners where massive investments are being made for expansion and technological upgradation. The packaging of beverages both carbonated and noncarbonated, is a complex technological branch in the Food Processing /Packaging industry. The traditional returnable glass bottle has given way to newer plastic containers as well as cartons. The current trend is to improve the conventional containers, extend their share in the large market, extend the shelf-life of the products, provide greater consumer convenience and ultimately to produce economic packages. The changing Indian scenario, with implementation of various technologies and market promotion activities, has changed the scope for this industry exponentially. The Indian soft drink market is worth Rs. 21,600 million a year with a growth of around 7%. The soft drinks segment is 24

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expected to grow to Rs. 1,05,000 million 1 and growth rate of IMFL categories is by the year 2005. The production of soft given in Figure 2. The Indian beer market estimated drinks has increased from 6230 million currently at Rs. 7,500 million a year has bottles in 1999-2000 to 6560 million been growing at the rate of 15% per bottles during the year 2001-2002. Table annum. 1 gives the production of soft drinks. The term “beverage” is derived from Tetrapack drinks market is currently French word “Beivre” which means a growing at the rate of 10% with a total drink. General meaning of a drink market share of 48%. The alcoholic includes a prepared drink. beverages industry, covers Indian Made According to the Fruit Products Order Foreign Liquors (IMFL), country liquor (FPO) 1955 Act, Fruit Beverage or and beer. IMFL includes wine, whisky, Fruits Drink means a beverage or drink gin, rum, brandy and other white spirits. IMFL Table 1 industry in India Production of Soft Drinks is roughly valued Year Bottles( in million) at Rs. 28,000 crores, growing 1997-1998 4920 at a rate of 9-10% 1998-1999 5670 per annum in 1999-2000 6230 volume terms. 2000-2001 6450 The market size 2001-2002 6600 f o r I M F L [Source: Ministry of Food Processing Industry – categories in Annual Report (2001-02)] shown in Figure

Beverages Packaging Figure 1: Market size under IMFL Category (2000 – 2001) White Spirts (Gin, Vodka & White Rum) 4% Rs 11,000 million

Brandy 16% Rs 44,800 million

Rum 16% Rs 44,800 million

Others 2% Rs 5600 million

Whisky 62% Rs 1,73600 million

Total Value Rs 2,80,000 million

which is prepared from fruit juice and water or carbonated water and containing sugar, dextrose, invert sugar or liquid glucose. The minimum

considered in relation to packaging are: Acidity: All the fruit juices usually maintain an acidic character because

Figure 2: Growth Rate Of IMFL Categories (2000 – 2001) 25%

20%

15%

10%

0% Whisky

Brandy

Rum

Gin

V odka

[Source: Investment Research & Information Services Ltd. – Annual Report 2001] percentage of fruit juice in the final product shall not be less than 5%. Fruit syrup connotes sweetened fruit juice of not less than 25% of fruit juice. Product Characteristics & Packaging Materials for Non-Alcoholic Beverages Non-alcoholic beverages are further classified into non-carbonated and carbonated drinks. Non-Carbonated Drinks Fruit Beverages These include fruit juices, fruit drinks, and fruit nectars. They contain fruit juice, water, sugar, dextrose, invert sugar etc. The major deterioration that occurs in fruit beverages is loss of nutrition, physico-chemical changes and microbial growth. The product characteristics to be 25

Oil & Food Journal Nov 2012

they contain organic acids. Enzymes: Enzymes exist in all fruit juices. Sometimes they have to be destroyed and sometimes to be added. Vitamin C (ascorbic acid): The Vitamin C content of a fruit increases until just before ripening, and then decreases due to the action of an enzyme, ascorbic acid oxidase. When fruits are cooked, most of the ascorbic acid transfers from the tissue into the liquid or may be oxidized, oxidation occurring more easily in iron, copper or badly tinned vessels. Losses of Vitamin C also occur during storage. Storing at low temperature, and preventing contact with air and light reduces this. Addition of sulphite has a preserving effect on

Vitamin C.Colour and Flavour: They are very important, and many fruit drinks contain certain legally permitted colourings. These are added to overcome the bleaching effect of the sulphite used as a preservative, and to provide an attractive appearance. Spoilage of fruit juices is mainly due to yeast. Its growth depends upon the temperature. Spoilage of raw fruit juice at room temperature results in alcoholic fermentation, followed by the oxidation of alcohol and fruit acids by yeasts or moulds growing on the surface. Hence every living yeast cell must be removed or suppressed by pasteurization, filtration and/or preservatives. Key parameters to be considered when selecting a packaging system are: *ProcessDistribution, shelf-life requirements, legislation *Product composition and quality as produced and at full shelf-life *Product protection required during storage, distribution and retail sale Pack size, printing options, display etc. * Packing system concept, automation options, ability to integrate with existing and/or future systems *Consumer appeal, image of product and packing The different packaging materials used are: Glass Containers: The use of glass bottles for the packaging of fruit beverages was widespread although the hot-fill/hold/cool process had to be applied with care to avoid breakage of the containers. Glass is still the preferred packaging medium for high quality fruit beverages. However, over recent years, an increasing proportion is being packed aseptically, into cartons. The improvements that have occurred in glass bottle packaging are: Light weight *Surface coating to increase abrasion resistance *Use of wide mouth containers fitted with easy-open-caps. Metal Containers: Tinplate cans made of low carbon mild steel of 99.75%

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27 Oil & Food Journal Nov 2012

Beverages Packaging Classification Beverage

Non – alcoholic

Non Carbonated

Alcoholic

Carbonated

Fruit/sap

Fruit juices

Soda

Non

Fruit Drinks

Coca – Cola

distilled

Fruit Nectar’s

Tonic Water

Coffee, Tea

Wine

purity, coated with tin with easy open ends are used. These tinplate containers are either 3 piece or 2 piece containers. They are lacquered internally to prevent corrosion. Plastic Containers: Fruit juices contain organic substances, which are sensitive to bacterial contamination. Packaging of such products is done through hot filling, to achieve extended shelf-life, PET bottles are usually used for hot filling applications. Special features are added to the containers through design and manufacturing process. The package is heat-set in order to improve the temperature resistance of the containers. PET resins with a higher Tg (glass transition) temperature and/or a faster rate of crystallisation are used. Normally hot-filled PET bottles are designed about 1.5 times heavier than cold-filled bottles. Reinforcing ribs and grooves are also provided along the circumference and base of the bottle. After filling and capping operations, the liquid continues to cool, which results in formation of vacuum. The bottle wall can deform under the influence of vacuum, and this problem is overcome by providing vacuum panels in the container side wall. Generally, lower levels of PET copolymer are preferred and intrinsic viscosities of about 80 are acceptable. Flexible plastic packages offer economic savings over conventional glass and metal containers but they are permeable to oxygen. Therefore, it is critical to select a flexible package that

Oil & Food Journal Nov 2012

Distilled

Grain

Non

Distilled

distilled

Brandy

Beer

Whisky

minimizes the permeability to oxygen. Flexible laminated pouches like metallised polyester/polyester/ polyethylene are used for hot fill packaging method without retorting for acidic fruit juices. These are used either as flat pouches or stand-up pouches. However, the shelf-life of the product in these pouches is limited. Aseptic Packages: Ready to serve fruit beverages and fruit pulps / concentrates, packed in aseptic packages provide excellent protection for fruit juices / pulps. These aseptic packages are made by combining thermoplastic with paperboard and aluminium foil. Their multi-layered construction enables the carton to protect the contents from various factors responsible for spoilage. The aluminium foil layer is a strong barrier for O2 and light. The inner plastic layer made of polyethylene makes it possible to seal through the liquid. The outer paper layer provides stiffness making it possible for the cartons in a brick shape, thus, enabling maximum utilisation of available storage and transportation space. Excellent graphics are possible leading to good display and shelf appeal and also providing information regarding the product. The aseptic process makes the product bacteria-free before being packaged. To provide convenient access to the contents, beverage cartons offer a variety of opening devices. A familiar opening feature of the pack is the

drinking straw, which is attached to the package. Some recent trends are pull-tab opening, which can be readily detached from a pre-punched hole without compromising the package integrity. Also, custom designed caps and closures can be incorporated on beverage cartons for easier pouring and for enhancing the brand image. Also, the beverage cartons are now available in new prisma shape, which is comfortable to hold, and the unique shape offers maximum display effectiveness and high space efficiency. These packs are shelf-stable at room temperature and the shelf-life and nutrient composition of the fruit juice is influenced by the barrier properties of the tetrapak. Bag-in-Box System: It consists of a collapsible bag within a rigid container, a filling machine to introduce the liquid product into the bag and a dispenser to draw the product out. Bag: The outer container can be a box, a crate or a drum. The bag actually consists of two bags. An inner bag contains the liquid and an outer bag provides the barrier properties. Both are heat-sealed at the edges. The tubular spout fitted to the bag aids in filling and dispensing of the product. As little as 3 litres or as much as 1000 litres, can be packed. The bag is the “life” of the system. The bag itself consists of three components: i. An inner layer ii. An outer layer iii. A spout The function of the inner layer, the one in contact with the material being packed, is to provide the bag with seal integrity. The seals are to be strong enough to withstand constant mechanical and chemical “pressure” for at least twice the expected shelf-life of the product. Generally, the inner layer is not designed for barrier unless the product needs extra barrier, which the outer layer cannot provide. Plastic films manufactured from high performance polyethylene, with excellent sealing and puncture properties are usually used as inner layer materials. The function of the outer layer is to provide the bag with barrier commensurate with the expectation of

Beverages Packaging the shelf-life of the product. In this respect, bag in box scores over other packaging forms, because unlike other packaging materials like jars and cans, the barrier property and hence the cost of this packaging form can be varied. The shelf-life expectations and storage condition play an important part in determining what the barrier requirements of the outer layer needs to be. The standard outside layer is a metallised film laminate, which under standard conditions has an OTR of 1cc/m2 /24hrs. The spout and cap assembly are made of injection moulded plastics. The spout is provided with a flange, which is welded to the bag's inner layer during bag's manufacture. The spout and cap have two functions. They are used to fill the product in the bag and are also used to dispense the product from the pack. Several spout types are available ranging from a simple bung like configuration to ones, which can only be opened on the filling machine. The caps come with various tamper evident features as well. Rigid Containers: The purpose of this container, is to hold the bag during storage, transportation and use. As is evident, the bag being made from flexible films, is incapable of being stored and transported by itself. Hence, each bag is individually stored into rigid outer container post filling. For packs of capacity below 50 litres, corrugated fibreboard cartons are generally used as the rigid containers. Beyond that plastics and metal drums are used. For very large bags, 1000 litres, + polygonal (6-8 faces) corrugated fibreboard containers made from 7 to 9 ply are used, though there are other alternatives as well. Coffee Coffee is made from the coffee beans, which is converted into a consumable beverage. Some of the major deterioration reactions in coffee are: Staling: This may be due to loss of flavour volatiles or due to chemical changes caused by moisture and oxygen absorption

Oil & Food Journal Nov 2012

Evolution of CO2, which is emitted during the roasting process. Ingress of moisture in instant coffee results in caking. This usually happens when the moisture content reaches 78%. The initial moisture content of instant coffee is 2-4%. Hence, while developing packaging system for coffee the following are to be considered: Moisture vapour ingress Oxygen permeability CO2 and Volatile component egress Grease resistance The packaging materials used are tinplate containers, composite containers, glass jars and flexible plastic pouches. The flexible laminates most widely used are 12µ PET / 2µ Al Foil / 70µ LDPE and MET PET / LDPE. Aluminium foil lined plastic pouches are most popular having 59% contribution in terms of volume. Tea The unique taste and colour of tea is because of polyphenols (cate chins) and amino acids (theamine). The flavour is due to the essential oils present in fresh leaves and volatile components developed during the manufacturing process. The different types of tea are: Black tea (fermented), Oolong tea (semiprocessed) and Green tea (non fermented). Deterioration is caused by loss of volatile components, increase in undesirable “taints” arising from oxidation reaction from fatty acids. Deterioration in green tea is caused by reduction in ascorbic acid content, change in colour from bright green to olive green and change in odour. The most common packaging material is paperboard carton with a liner or an overwrap of PP or regenerated cellulosic film. Other types are plastic jars, bottles, pouches, strips and envelopes. Plastic pouches have captured 12% of the tea market. Carbonated Drinks Carbonated drinks contain carbonated water, flavour, colour, sweeteners and preservatives. CO2 gas from pure source is dissolved in water (amount varies with

different types of beverages). A variety of ingredients like flavouring agents, colouring agents, preservatives, artificial sweeteners, antioxidants and foaming agents are then added. Two major deteriorative changes that occur in carbonated drinks are the loss of carbonation and rancidification of essential flavouring oils. The first is largely a function of the effectiveness of the package in providing a barrier to gas permeation, while the latter can be prevented by the use of high quality flavourings and antioxidants, and deaerating the mix prior to carbonation. Oxidative rancidity is reduced by the effectiveness of the package in providing a barrier to gas permeation. Hence, the carbonated drink package requires a container that will hold pressure and not contribute off flavours. For many years virtually all carbonated soft drinks were packaged in glass bottles sealed with crown cork. In recent years, non-returnable glass bottles are giving way to refillable bottles. These have a foam plastic protective label of paper/poly or an all plastic shrink sleeve, as a safety measure to prevent flying of glass fragments in case of breakage of these containers. The crown closure has been replaced with a roll-on aluminium screw cap with tamper proof facility. Among the metal containers, the 3-piece tinplate containers have been used since long for the packaging of carbonated beverages. These are being replaced now by 2-piece aluminium cans. These cans retain the integrity of lacquer better than tin cans. Vinyl, epoxy and vinyl organosol coatings are used as lacquers for aluminium cans. Epoxy amine provides good adhesion, colour and flexibility to the can. Among the plastic containers, PET bottles are the most preferred packaging material for packaging of soft drinks. The factors that influence the selection of a plastic package intended to contain CSD are indicated in Figure 3. Soft drinks have a maximum permissible level of 20ppm for citrus flavoured beverages and 40ppm for cola drinks while the water loss is of the order of 1%. Also, the loss of CO2 through the wall must be allowed for. While

Oil & Food Journal Nov 2012

Beverages Packaging percentage of alcohol per litre. The border between the two kinds of drink is about 20%. The different types of alcoholic beverages are beer, wine, whiskey, brandy etc.

Figure 3: Factors to be Considered for CSD Packages

Taint Oxygen

CO2 Plastic Container for CSD H 2O vapour

Migration

increasing thickness will decrease the rate of CO2 permeation, the cost of the bottle, will also increase and so a compromise has to be made. Other problems to be considered in plastic containers are creep and elastic deformation. The polyethylene terephthalate (PET) bottle satisfies most of the requirements for packaging of carbonated soft drinks. Improved blow moulding techniques and bi-axial stretching have made PET container to be pressurised due to its strength, dimensional stability and precision. Also, they have a glass like appearance, good transparency, lustre, chemical inertness and unbreakability. Advantages of PET Containers The advantages of PET container are: Superior packaging to product ratio: PET container being 63% and 47% more energy efficient than glass bottles and aluminium cans respectively. PET bottles are 32% more energy efficient than glass bottles during delivery of 1000 gallons of soft drinks. Glass bottles and Aluminium-cans generate 230% and 175% times more atmospheric emissions compared to PET. PET bottles contribute 68% and 18% less solid waste by weight compared to glass and aluminium containers. 100 kg of oil is required to produce 1000 1-litre PET bottles as against 230 kg for 1000 equivalent glass bottles. PET bottles help in fuel saving due to their lower weight. The resins used in PET bottles to pack carbonated drinks are of a very special quality. The PET bottles have to be extremely strong to contain the internal pressure of CO2 without distortion and expansion. This is obtained by using a resin, which 32

Oil & Food Journal Nov 2012

Aroma

has high intrinsic viscosity and lower cop o l y m e r l e v e l s . Currently, more than 90% of PET is consumed in food packaging with beverages/drinks forming nearly 80%. The breakup of world PET resin consumption by weight expressed as percentage share is shown in the Figure 4 Among other materials suitable to contain CSD, polyethylene naphthalate (PEN) meets several requirements such as physical, chemical and barrier properties. It has a barrier to CO2 , O2 , water vapour and UV light which is 4-5 times better than PET. Also, PEN is lighter in weight and has better shatter resistance. As pure PEN is expensive, it is blended with PET to form a copolymer, still far too expensive to be used by bottle manufacturers. Product Characteristics & Packaging Materials for Alcoholic Beverages Alcoholic drinks originated through the action of yeast cells on sugar containing liquids. Alcoholic drinks are aromatic liquids with a specified alcohol content. Some kinds contain carbon dioxide, others a quantity of sugar. They are either fruit/sap based or grain based. They can either be non-distilled or distilled depending on the volume

Non Distilled Alcoholic Beverages Beer (Grain Based): Beer is made from grains and has low alcoholic content around 5% by volume. Barley is the chief grain, but rice and corn are also used. The grains are brewed and fermented and then carbonated with CO2 and flavoured with hops to give a b i t t e r f l a v o u r . Owing to its low pH (about 4.0), microbial degradation is not usually a problem with beer, and the use of pasteurization and aseptic cold filtration excludes yeast. However, during storage beer can undergo irreversible changes leading to appearance of haze, development of off-flavours and increased colour. The oxidation reaction gives beer a â&#x20AC;&#x153;card-board-likeâ&#x20AC;? flavour. Flavour loss is also accelerated in the presence of light and certain metal ions. The fermentation process consumes oxygen. Also, brewing reduces the level of oxygen in beer to 40-50 ppb prior to p a c k a g i n g . During the packaging process, atmospheric oxygen enters the package and the level of oxygen contamination reaches 250-500 ppb, which corresponds to 0.1-0.2 ml of oxygen per 335 ml bottle or can. This results in a shelf-life of beer of 80 to 120 days. The oxygen consumption of beer varies with the composition of the beer, its age, presence of reducing agents, t e m p e r a t u r e e t c . The traditional packaging media for beer

Figure 4: PET Resin Consumption Others Drinks 10%

Beer 14%

Others 11% CSD 43%

Water 22%

[Source: Beverage and Food World, September 2002]

Beverages Packaging is the glass bottle sealed with a crown closure. Recent development is the use of PET bottles for packaging of beer. Types of PET beer bottles used are nontunnel pasterurised, one way tunnel pasterurised and returnable / re-fillable b o t t l e s . Beer needs high performance in both CO2 and O2 barrier compared to PET used in carbonated soft drinks (CSD) applications. The level required depends on the type of beer, container size, distribution channels and environmental conditions (storage time, temperature and humidity levels). Improvements in the barrier can be obtained via colourants, creating multi-layer bottles and scavengers. Protection from U. V. light is obtained by adding colourants or U. V. additives, during the injection moulding stage. Because of the varied requirements for beer, the resins chosen must provide an adequate barrier, UV protection and clarity. Beer bottles need strength in order to maintain the CO2 pressure over a wide range of temperatures. Intrinsic viscosities in the range of 0.8 to 0.84 are normally used. Since the PET bottles are lighter, a truck can carry 60% more of the beverage and 80% less packagingâ&#x20AC;&#x201C;a fuel saving of 40% and less air pollution. Wine (Fruit/Sap based): Wine is a beverage resulting from the fermentation by yeasts of the juice of grapes with appropriate processing and additions. The major deteriorative reaction in wines is caused by oxidation, the oxygen gradually changing the wine character, leading to development of browning and undesirable flavours. The most common form of packaging used for wines is the glass bottle sealed with natural cork. Since wines are affected by sunlight, the bottles usually used are of coloured glass. Bottled wine is normally stored in the horizontal position so that the cork is kept moist, thereby providing a better barrier to the ingress of oxygen. The most significant change in the packaging of wine resulted from the development of the bag-in-box package: a flexible, collapsible, fully sealed bag made from one or more plies of synthetic 33

Oil & Food Journal Nov 2012

films, a closure and a tubular spout through which the contents are filled and dispensed, and a rigid outer box or container. The bag is generally constructed from co-extruded film of EVA-BA-EVOH-BAEVA or LDPEBA-EVOH-BA-LDPE. The features of the bag-in-box system of packaging have been explained earlier in the c h a p t e r . The physical strength of the bag is of prime importance and must remain intact throughout distribution and subsequent storage. Under normal circumstances, the bags are subjected to two forms of stress: hydraulic shock (normally caused by sudden acceleration/deacceleration of the pack) and flex crack. By using polymers, which have high flex resistance and improving the adhesion between the films, the strength of the bag can be i n c r e a s e d . One problem associated with the packaging of wine into bag-in-box system is the decrease in shelf-life as compared to that obtained using traditional glass bottles. This is due topermeation of oxygen through the valve material of the tap. By improving the barrier properties of the bag and the design of the tap the problem can be solved. A special heatsealable membrane is partially attached to the gland during manufacture of the bag. After filling but prior to insertion of the Figure 5: Bag-in-box before and after Filling

tap, this membrane is fully sealed to the gland and the potential entry path is greatly reduced. As a result the bag is completely sealed and is totally independent of the tap until the membrane is broached when the pack is just opened by the consumer. A cross section of the membrane and gland before and after filling is shown in F i g u r e 5 . Wines are also available in PET bottles and in stand-up pouches of metallised polyester laminates. Distilled Alcoholic Beverages Brandy and Whisky: These drinks are obtained by distillation of alcohol containing drinks. During distillation the aqueous part is separated from the alcohol. The distillates obtained are sold under several names like brandy, gin, whisky cognac, vodka, etc and have different alcohol percentage. Because of their high alcohol percentages, these liquors are mostly packed in glass bottles so that they can be kept for an infinite time after opening. The bottles are sealed to prevent alcohol from evaporating and to protect the contents of the bottles from dirt and dust. C o n c l u s i o n Tea, coffee, fruit juices, alcoholic drinks and carbonated soft drinks are the most popular beverages in the Indian society today. Sophisticated packaging media and techniques have enabled retention of the unique taste, colour and aroma of these beverages while in transportation and storage. The traditional returnable glass bottles have given way to newer plastic containers as packing solutions. In rigid applications, glass, metal and plastics are the major packaging material used. Flexible plastic packages offer economical savings over conventional glass and metal containers. Use of PET bottles for packing alcoholic beverages and carbonated soft drinks have revolutionized the packaging industry in India. The use of plastic packaging in the beverage market will witness high growth.

Oil & Food Journal Nov 2012

News

New vector™ resealable matrx delivers convenience consumers can hear and feel

he new ZIP-PAK® Vector™ resealable matrix from Zip-Pak, the global leader in materials and machinery for resealable packaging, brings a new level of consumer convenience to flexible packaging. Featuring a proprietary self-sealing matrix that closes securely without exact alignment of opposing segments, the solution provides tactile and audible feedback for reassurance of complete fastening with each use. The airtight seal also helps lock in product freshness. As the only resealable closure supplier with an in-house equipment division – Zip-Pak Systems – the company developed the Vector™ resealable matrix for integration into existing flexible packaging lines with only minor modifications to machinery. For brand managers, retailers, and converters, the system minimizes investments in capital equipment and downtime. Zip-Pak also offers extensive consultation to consumer product goods companies and store brands transitioning into resealable flexible packaging or launching new products. “Self-mating closures are an easy-to-use alternative to traditional zipper profiles and are gaining tremendous traction with brand managers, retailers, and consumers,” says Robert E. Hogan, Director, Global Marketing at Zip-Pak. “Zip-Pak has combined its exclusive focus on quality resealable closures for packaging and extensive machinery knowledge to design the new Vector™ resealable matrix and application system, ensuring a seamless transition to 36

Oil & Food Journal Nov 2012

a consumer-preferred solution.” From shredded and sliced cheese, deli meat, snacks, cereal, candy and vegetables to pet foods and garden fertilizer, Vector™ resealable matrix is ideal for a variety of applications. Vector™ resealable matrix's ability to mate to itself will also advance new packaging concepts that require a selfsealing closure, including Pour & Lok™ and Zip360™. Pour & Lok™ from InnoFlex allows products to be poured from the side gusset of a package, making it a consumer convenience enhancement for a range of dry goods in large format pouches. Unique to Zip-Pak and its licensed partners, Pour & Lok™ can be pre-applied using Inno-Lok™ equipment and can run on standard vertical form fill seal (VFFS) machines with a simple side gusset modification. Zip360™ is a wide-mouth pouch format that features a Vector™ resealable matrix around the entire opening, enabling easy access to contents and simple closure. The new pouch format's wide-mouth opening allows consumers of snacks, frozen products, cookies and crackers, and pet food and treats to easily access and scoop contents. With space for graphics around the entire surface area of the pouch, Zip360™ also maximizes the point-of-purchase impact. Like all of Zip-Pak's resealable flexible packaging solutions, Vector™ resealable matrix eliminates the need for consumers to transfer contents into a separate, unbranded container, keeping marketing messages in front of the consumer to the last use.

Logistics

Malaysia Becoming a

Halal Logistics Hub Frost & Sullivan

rost & Sullivan says that Malaysia's highly recognized halal certifi cation system has given it an advantage to develop into the region's halal logistics hub. Gopal R, VP of transportation and logistics practice, Asia Pacifi c and country head for Malaysia at Frost & Sullivan said that green logistics practices and the development of halal logistics are likely to help Malaysia to transform itself into a regional logistics hub in the future. “The highly recognized halal certifi cation system in Malaysia has given the country an advantage to develop and position itself as the halal logistics hub in the region,” he added. He also said that Malaysia has the necessary infrastructure such as halal logistics parks and warehouses at its ports, which will further aid the growth of the halal logistics sector. The Malaysian logistics industry is expected to grow 11.5% to RM121 billion ($39.7 billion) in 2011 as compared to RM108.5 billion a year ago, supported by the country's strong external trade and stable economic outlook. Gopal said that external trade for Malaysia is expected to increase 10% year-on-year to RM1.28 trillion in 2011 as compared to RM1.16 trillion in 2010. “High technology and capital intensive projects under the 10th Malaysian Plan and Economic Transformation Program (ETP) are expected to create

Oil & Food Journal Nov 2012

opportunities for the nation's logistics market,” he predicted, adding that foreign direct investments are likely to fl ow into the electronics and electrical, oil and gas, healthcare and solar-related industries. In 2010, the third party logistics market (transportation, storage and courier services) were valued at RM27.5 billion, while in-house logistics costs/spending in the Malaysian economy – manufacturing, mining, agriculture, telecommunications, construction, energy, fi nance, trade and government services- were valued at RM81 billion. The Malaysian logistics industry is forecast to grow at a compound annual growth rate (CAGR) of 12.6% to reach RM196.5 billion in 2015, Gopal said. He said that the investment-friendly environment created by the Malaysian Government will also boost subsectors of the logistics industry such as importexport forwarding, shipping and airfreight related businesses. However, he cautioned that growth in the Malaysian logistics industry could be hampered by the lack of skilled logistics professionals, fragmented nature of the logistics sector and lack of emphasis in value-added services by logistics service providers. Gopal forecasts Malaysia's total cargo volumes to increase 12.4% to 498.4 million tons in 2011 as compared to 443.4 million tons in 2010. “Sea-freight is the most popular mode of transport for cargoes in Malaysia, handling more than

95% of total volumes in 2010,” he said. Gopal said that cargo volume by sea is expected to grow 12.5% to 493.7 million tons in 2011. He added that Port Klang, Malaysia's busiest container port, contributed 37.8% of total sea throughput in 2010 while Port of Tanjung Pelepas contributed 22%. He also predicts cargo volume by air to grow 12% to 1.03 million tons in 2011 as compared to 918,100 tons. He said that Kuala Lumpur International Airport contributed about 73% to the total cargo volume by air in the country. Meanwhile, cargo volume by rail is expected to increase 3.7% to 5.5 million tons in 2011. Classic outsourcing activities such as transportation, freight forwarding and warehousing are the most sought after logistics activities in Malaysia in 2010. “Value-added services such as packing and labeling, reverse logistics, quality assurance and control and information management are the top 10 logistics functions outsourced in Malaysia in 2010,” he added. Currently, the use of technology in the logistics industry is mainly focused on warehousing, bar coding and transportation management systems. “The adoption of visibility tools such as RFID (radio-frequency identifi cation) or smart labeling system and GPS (global positioning systems) or vehicle tracking systems are still at its infancy stage with an average of 35% using the technologies,” he added.

Oil & Food Journal Nov 2012

Distribution

Food and Beverage Distribution Information Integration Advantages Executive Summary

he food and beverage industry faces many challenges — ensuring food safety, keeping up with regulatory and compliance mandates, managing constantly shifting customer demands, and squeezing margins from complex distribution networks. The key to success in tackling these challenges is information — capturing data up and down the supply chain and providing access for analysis so that executives can make rapid, informed decisions. For most companies and supply chains of scale (i.e., midmarket or larger), this type of sophisticated information management requires a common, integrated information technology platform. Food and Beverage Distribution: Information Integration Advantages highlights current obstacles to performance faced by food and beverage companies, as well as solutions based on improved access to accurate and timely 40

Oil & Food Journal Nov 2012

information. This paper also explores how many food and beverage companies fail to invest enough in tools that would boost their supply-chain performance. At the same time, Food and Beverage Distribution: Information Integration Advantages details how an integrated enterprise resourcing planning (ERP) solution can help food and beverage companies bring goods from growers to consumers more safely and more profitably. Few industries confront the complex distribution challenges that face food and beverage companies. Coordinating the safe and profitable delivery of tomorrow's meals across a supply chain that includes far-flung farms, factories, and stores is a difficult, high-risk activity that invites regulatory scrutiny and disastrous publicity when distribution processes and supply chains fail (contaminated products, product recalls — or worse). Distribution and supply-

chain management in this industry are tougher than ever due to rapidly changing markets and customer demands (such as new food trends, promotion-driven purchasing, shifting consumer preferences), supply fluctuations (such as logistics delays, crop failures, product embargoes), and evolving food-safety standards and regulations. All these external events, trends and activities represent vast amounts of data that should inform decision-making — if the information is available in real time, so that the right goods of high quality move to the right destinations (processors, packaging plants, warehouses, restaurants, customers). Just as importantly, this external information must be viewed within a context of internal data from sales departments, warehouses, processing facilities, etc. This can't be done with spreadsheets alone; making information

Distribution

available and actionable within a variety of companies, locations, and software applications requires the advanced functionality of an integrated, easy-touse IT platform. A good example of how data is frequently not managed well across a food and beverage supply chain was the peanut butter salmonella outbreak in 2008. The first signs of a salmonella problem appeared in late summer, but it wasn't until fall 2008 that salmonella cases were confirmed — although officials still hadn't identified the source. An investigation of a cluster of cases at a Minnesota nursing home pointed to a peanut butter manufacturer, and on January 9, 2009 the manufacturer's product tested positive for salmonella typhimurium. “At that point the FDA became involved, actually going to the plant where the peanut butter was made in addition to some distributions points along the way; at that point we initiated a recall,” recalls Dr. Stephen Sundlof, director of the FDA's Center for Food Safety and Applied Nutrition. On January 10, 2009 the peanut butter was recalled, but the originating source of the salmonella still hadn't been found. The investigation moved up the supply chain, ending at a Peanut Corp. of America (PCA) facility in Blakely, Georgia. Because most of PCA's peanut products — peanut paste, etc. — go into other products, and because PCA had more than 300 customers (with hundreds of customers of their own), the recall quickly became massive, including an array of peanut-related products. Tracking the distribution of food and beverages is difficult, especially as 41

Oil & Food Journal Nov 2012

supply chains grow. Yet tracking is core to food safety and brand reputation. Jorge Hernandez, senior VP of food safety and quality assurance for U.S. Foodservice (USF), one of the largest broadline U.S. distributors with about 250,000 customers and 3,000 suppliers, lists five areas of unique challenges facing food safety today: Food industry distribution (number and fragmentation of foodservice distributors, infrastructure capabilities, food safety knowledge) Management systems (receipt, unloading/loading, storage, rotation, trucks, drops) Distribution practices (cross-docking, merger-in-transit, backhauling) Food handling (rework, repack, rebox) Traceability through the supply chain (e.g., a single tomato can go from the field, to a packing house, to value-add processor, to a broker, to a grocer, and finally to the consumer. In addition to the problem-prevention and safety aspects of real-time product tracking, product data also can be leveraged for competitive advantage. Belgian frozen vegetables producer Pasfrost NV, which operates in 65 countries, tracks its products from field to consumer, relying on an integrated ERP system to maintain and share accurate inventory data. Data capture has been integrated with the company's measuring and labeling points. For example, truckloads of produce are weighed, with the information passed to production planning systems. Vegetables are processed, then palleted and barcoded; the barcodes allow Pasfrost to trace the goods back to

individual suppliers as they move downstream to customers. Accurate product data improves warehouse efficiency and helps ensure compliance to strict safety standards, such as the British Retail Consortium standard for traceability. Pasfrost reports that “thanks to our efficient, computerized tracing system we know exactly when and where a vegetable was grown, and the work we did on it.” Pasfrost pursues management standards that are stricter than those applied by the Belgian and European authorities. “This is also why we continue to make significant investments in technology and people.” JJ Food Service, a U.K.-based food distributor, similarly invested in technology to gain a competitive advantage through improved productivity, installing a new call-center and business-management system. Through better scheduling, the company was able to improve distribution times and handle an extra £31 million (approximately U.S.$46 million) of business a year with the same resources. Mushtaque Ahmed, JJ Food Service senior business operations manager, said, “We wanted to maintain our leading position in the market by gaining competitive advantage. There were several new areas we wanted to plan ahead for, such as online ordering, handling multiple storage sites, home working to offer flexibility for workers, and mobile technology for our delivery team. Of course we had to address our existing challenges as well, increasing efficiencies without losing focus on customer service.”

Lack of Supply-Chain Perspective Food-borne illness outbreaks highlight the risks in food distribution, while best practices, such as those at Pasfrost and JJ Food, demonstrate the benefits of a wellmonitored supply chain. All these examples underscore the business reasons for tracking food distribution, which can make the difference between a company's success or failure in getting goods swiftly and safely to market. Yet

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NATURAL ALKALIZED DARK BROWN COCOA POWDER

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(Manufacture & Marketing By)

Jindal Drugs Ltd. Contact Person:-Pankaj Rawal

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Oil & Food Journal Nov 2012

Distribution many food and beverage distributors haven't invested in the tools to help them monitor their supply-chain data and navigate disruptions to their supply chains. Food and beverage companies, by the nature and perishability of their products, are more susceptible to problems throughout their distribution channels. For example, a study by RSM McGladrey asked distribution and

market opportunities, and find new ways to enhance quality, safety and customer value. For example, 27 percent of food and beverage companies have no measurement systems or reviews in place to track return from their supplychain management and collaboration, and another 29 percent have only ad hoc monitoring and reviews. Conversely, among food and beverage firms at or near world-class supply-chain

verification program, it may often be offset by more favorable insurance rates. More importantly, its utility in allowing a firm to more rapidly respond to an event will reduce the much larger costs associated with an accidental or intentional contamination that does get through.â&#x20AC;?

Benefits of an Integrated Platform

Supply-Chain Risks by Industry Segment High risk

Low risk

Transportation disruptions Food and beverage 52%

Industrial equipment 25% Transportation equipment 25%

Supplier disruptions

Food and beverage 57% Transportation equipment 56%

Printing and publishing 39% Electronics 37%

Climate change (weather)

Food and beverage 33%

Industrial equipment 2%

Licensing and regulation

Food and beverage 38%

Industrial equipment 7% Printing and publishing 6%

Poor quality supply

Food and beverage 47%

manufacturing executives to assess their company's level of risk from supplychain disruptions. Companies in the food and beverage industry report high levels of risk more frequently than other industry segments (Table 1). Despite the risks and safety issues posed by supply-chain disruptions and problems, many food and beverage companies fail to adequately monitor and measure their supply-chain activities, losing opportunities to identify and resolve issues, leverage

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management and collaboration, 65 percent have more than ad hoc monitoring or reviews. Food Safety Magazine's Shaun Kennedy writes that an active supply-chain verification program that identifies and resolves small issues can strengthen the overall supply chain to avoid food safety issues. â&#x20AC;&#x153;These actions also improve the company's ability to avoid or respond to food defense concerns. While there is always going to [be] a cost associated with an actively managed supply-chain

To safely and cost-effectively speed products from ranchers and growers to store shelves and restaurants, food and beverage companies need tools that help them remove waste, ensure safety and regulatory compliance, and connect demand signals to production and logistics schedules. And as these food and beverage firms grow into midmarket and larger organizations, an integrated ERP solution becomes a necessity, supporting the following benefits.

Distribution Operations and logistics effectiveness Opportunities to increase fooddistribution productivity can be found all along the chain that brings products to market, but improving overall performance (and not just the individual performances of specific locations such as warehouses or production lines) requires a big-picture perspective. Most logistics best practices (deliveryroute planning, coordinating crossdocking efforts, logistics-optimization techniques such as truck-space optimization, catch weight accuracy, minimizing transfer perishability) demand detailed shipment tracking and management capabilities accessed by multiple companies and applications. In addition, automated data collection systems connect buy-and-sell data and ensure that financial actions (invoice, payment) occur in a timely and accurate manner. Compliance It's not sufficient for a food and beverage company to prove its products are safe, high-quality, or compliant with regulatory and labeling requirements (e.g., organic, sustainability). The peanut butter salmonella case illustrates how companies must also ensure that their supplier's products (and their

supplier's suppliers' products) adhere to these criteria well. Grant Thornton partner Steve Lyman writes that food and beverage manufacturers are looking to suppliers and distributors for more proof of product quality. â&#x20AC;&#x153;In light of recent food-safety events, many food and beverage manufacturers indicate that they have changed their positions with suppliers, becoming 'tougher' with 'intensified testing.' One executive said, 'We are more concerned with the ingredients we purchase and require more detailed testing for the best.' Many are requiring more documentation from the suppliers they're working with, and they're reconsidering the location of those suppliers: 'More emphasis on proof of HACCP [Hazard Analysis and Critical Control Point], [National] Food Safety programs, and less reliance on off-shore sources.'â&#x20AC;? An integrated solution can help a food and beverage company to automate product tracing, tracking products and providing details that partners (packagers, manufacturers/producers, retailers) in food-industry supply chains expect. Market agility Emerging food categories force food and beverage companies and their

supply chains to move quickly. Trends such as organic foods or private-labeling can require reconfigurations of supplier sourcing, ingredients, branding, logistics and marketing messages. An integrated solution helps to align messaging with these trends, coordinating marketing campaigns with changing market dynamics. In addition, detailed business reports help food and beverage companies analyze the distribution channels available to them (grocer, restaurant, institutional, etc.) on an ongoing basis, offering a deeper understanding of the delivery and value-add requirements within each channel. Customer demand management The best distribution system to bring products from suppliers to market is meaningless if those products aren't what customers want now. And not just what they want, but how they want it (quantity, package, serving size, level of processing). Integrated solutions enable accurate demand forecasting (preparing a food and beverage company's supply chain for anticipated demand) and help growers and processors to meet actual customer consumption (scheduling processing and delivery more precisely). Does your food and beverage company use these distribution and supply-chain strategies to manage quality, compliance and profitability? Does your company have an integrated information platform sophisticated and flexible enough to meet today's challenges and leverage tomorrow's opportunities? If not, it's time to reassess your supply-chain strategies, processes, and supporting business systems and then implement an action plan to improve your company's ability to get goods to market safely and on time by turning product data into a competitive advantage. By: John R. Brandt and George Taninecz

John R. Brandt is CEO and Founder of The MPI Group (www.mpi-group.net), and has spent more than two decades. George is a well-known innovator in business research, and designs and manages MPI's research and knowledge-development projects. 45

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Oil & Food Journal Nov June2012 2012

Exclusive Interview

Soft Drinks, Beer, Mineral water, Juices,

sectors have shown positive growth in last few years

CE Technologies & PSPL is one of the leading Indian companies involved in satisfying the technological needs of Pharmaceuticals, Beverages, Food & Cosmetic industries. This reputation for supplying world class machinery in the field of Pharmaceuticals, Beverages, Food & Cosmetic segments has been achieved after years of dedicated service to the industr y. Recently Managing Director, Hari Menon had a word with our editorial team about his company activities and range of services provided by his company to the said industries. 48

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Exclusive Interview How do you look at the Indian beverages industry for the growth of your company? The Beverage Industry in India at present is in a very exciting phase and I think there are tremendous opportunities and potential for growth. Within the Beverage sector, the Soft Drinks market, the Beer market as well as other segments like Mineral water, Juices etc, all sectors have shown positive growth in the last few years and this is where, we see opportunities for A C E Te c h n o l o g i e s t o g r o w. With the per capita consumption of Beverages still at a low level, we feel that all these sectors will continue to grow and for this, these sectors will come up with expansion of their existing facilities or will come up with new green field projects and this is where we see the potential for our company to grow. With our Product range which includes right from Packaging machines, Inspection machines, Labelling machines, End of line Packaging machines, Process Equipments and Dispensing Equipments catering to these sectors, we feel that we can be a part of this growth. Even after bad growth rate allover in the country this industry maintained a double digit growth rate so far, what is the driving force behind it? As informed earlier the per capita base for the Beverage sector has been quite low and hence there are always good opportunities to grow at a high rate. With tremendous push in the retail sector, companies tapping in newer markets, increase in the consumer spending power, growth in the hotel Industry, QSR (Quick Service Restaurant) chains, new restaurant projects etc coming up combined with

aggressive marketing by Beverage companies, all have contributed to this growth. In the last couple of years along with the growth of carbonated drink giants, emergence of regional players both carbonated and noncarbonated is seen, do you see both global giants and regional players coexisting in India in the long run? I think this is bound to happen. With the growth of this Industry I feel more and more Indian as well as International brands will come in. One of the main reasons is that the market is quite attractive and still the Beverage Industry is in the initial growth phase. The market is becoming more and more ready for consumers to try out different products, variety in the offerings, different tastes etc. We know that some of the regional players have been doing quite well and we have recently heard about the revival of some of the regional brands. The regional brands may bring in local flavours & tastes and may offer a wider variety of products suiting to the regional tastes. I think the market is big enough for International, National and regional players to coexist. Per capita consumption of non alcoholic drinks is still very less compared to global per capita consumption of the same, what is required to reach a healthy level in India? The Industry has a long way to go to reach global per capita consumption. However the growth is already happening. If you see the changes in the last few years, the Industry had a healthy rate of growth. As mentioned earlier with the growth of the Retail segment, change in the consumer lifestyle, consumer spending power the market has been growing quite healthy and steadily in the last few years. What are the products and services you are giving to the beverages

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industry in the country and what the areas of focus for your growth? Ace Technologies provides complete solutions like Bottling lines for Glass , PET and Cans for Beverage Industry, Complete range of Inspection machine like “ Empty Bottle Inspector's ”, Fill level Inspectors , Case Inspectors, Metal Detectors, X Ray systems, Check Weighers, Shrink Sleeving machines, Labelling machines as well as End of Line packaging Solutions like Carton Overwrapping and Sleeve overwrapping machines, Palletisers & Depalletisers etc. ACE also provides complete range of Dispensing and Vending equipments for Draught Beer , Soft Drinks & Juices. ACE Technologies has also recently inaugurated their State of the Art manufacturing facility near Mumbai wherein we manufacture Packaging machines for the Food, Beverage and Pharmaceutical Industry and also manufacture a wide range of other equipments like Conveyors, Infra Red Dryers, CIP Systems , Hydraulic Lifters etc. Any new product/service you are introducing/displaying at Drik Technology India 2012 this year? At the Drinktec, we will be displaying our unique “Hydro Optic Disinfection Technology” along with our principals “Atlantium Water Technologies” which is a unique product which can be used for Chlorine Destruction, Product water Disinfection, Process water disinfection and is the only system validated by US – EPA for 4 Log virus reduction. All our principals' i.e Linkers Equipment Corporation, Filtec, Karlville, Gernep, Baumer, TMG Srl and Atlantium Technologies will be present at our stand E30, Hall VI to share the latest developments in Packaging, Inspection, Labelling and process technologies.

Functional Foods

Health benefits of functional foods

he challenges:There is a strong body of science underpinning health benefits from foods. Our challenge, therefore, is to develop effective synergies between science and food product development for the benefit of the consumer. Aspects of health linked with some of the most developed aspects of nutrition science include: better early development and growth; health maintenance (e.g. immune function, gastrointestinal health, mental health, health in ageing, physical performance); reduced risk of obesity; reduced risk of chronic diet-related diseases (e.g. cardiovascular disease, type 2 diabetes and metabolic disease, musculoskeletal disease). 50

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Functional Foods Early development and growth Mother's diet Nutrition during pregnancy and lactation can influence the short and long-term development of the child. It might even be linked to the development of conditions such as high blood pressure, heart disease and diabetes in later life. More specifically, the course of pregnancy and childbirth and the composition of breast milk can be influenced by energy and protein intake as well as nutrients such as n-3 and n-6 polyunsaturated fatty acids (PUFAs), amino acids and micronutrients including folic acid, iron, zinc and iodine. Such nutrients may be useful as ingredients in functional foods. Diet of children and adolescents Diet during childhood and adolescence may have effects on some cognitive abilities as well as behaviour. Sensory, including visual, functions may also be influenced by early nutrition, particularly by n-3 and n-6 PUFAs and trace minerals such as iron, zinc and iodine. Skeletal development during adolescence can be influenced by calcium, vitamins D and K and fluoride as well as prebiotic fructans, all of which could offer possibilities as ingredients in functional foods. Gastrointestinal growth during the early years may be influenced by food ingredients such as probiotics and also

prebiotics, such as oligosaccharides and inulin. Immune function Immune function throughout life can be influenced by nutrition. Possible ingredients for the evelopment of functional foods that could contribute to optimal immune response include the antioxidant vitamins, trace elements (e.g. zinc, copper and manganese), n-3 and n-6 PUFAs, l-arginine, nucleotides and nucleosides, probiotics, prebiotics and synbiotics. Gastrointestinal health The GI tract is an obvious target for the development of functional foods because it acts as an interface between the diet and all other metabolic functions. GI function depends on an appropriate balance of healthy bacteria to prevent the invasion of harmful bacteria. One of the most promising areas for the development of functional foods lies in the use of ingredients to modify the composition and metabolic activity of the gut microflora: * probiotics; * prebiotics; *synbiotics (mixtures of probiotics and prebiotics). Potential health benefits of probiotics include: * reduced incidence or severity of GI infections; * alleviation of lactose intolerance; * overall improvement in gut function,

EARNEST The Early Nutrition Programming Project is looking at the long-term consequences of early nutrition programming on later obesity and cardiovascular risk. Understanding of the importance of early nutrition and the extent to which this is taken into account in infant feeding is also being investigated. The overall aim is to improve understanding of the extent to which nutritional influences in early life can programme a person's development and metabolism in adulthood. Two studies are looking at possibilities for new functional ingredients in infant formulae: The first is a long-term study to determine the effect of functional prebiotics, more specifically of inulin-type fructans, on the incidence of infections and other immune parameters (early development of the immune system) in infants. The addition of recombinant human bile salt stimulated lipase (BSSL) to infant formulae offers the possibility of enhancing long chain polyunsaturated fatty acids (LCPUFAs) bioavailability to produce long-term health benefits and this is being tested in another study within this EU funded project. TORNADO The project (Molecular Targets Open for Regulation by the gut flora â&#x20AC;&#x201C; New Avenues for improved Dietto Optimize European health) is looking at the influence of diet on the impact of gut flora and specific groups of micro-organisms on the immune system and their interaction with other organ systems. The project will allow the design of future functional foods for specific population groups of different ages in different geographical areas.

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Functional Foods including reduction in constipation as well as diarrhoea. Prebiotics, non-digestible food components that can stimulate growth and/or modify the metabolic activity of specific bacterial species already present in the gut, might also improve gut health. They are also being evaluated for beneficial effects on the immune system and the potential to reduce risk of colon cancer. Their ability to increase production of short chain fatty acids in the colon is associated with increased absorption of minerals such as calcium and magnesium. Dairy products, table spreads, baked goods and breads, breakfast cereals and bars, salad dressings, meat products and some confectionery items are all foods which do or might contain prebiotics. Mental health Some functional foods could potentially promote optimal mental state and mental performance and influence behaviour. They may influence: *cognitive performance; *mood and vitality; *reaction to stress; *short-term memory; *vigilance and attention; *changes in memory and other mental processes during ageing. Glucose may have a beneficial influence on aspects of mental performance, including memory and decision time. Sucrose may reduce pain perception. Caffeine can lead to

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improvement in cognitive performance with effects on reaction time, vigilance, memory and psychomotor performance. Cognitive performance and maintenance of mental health in older people may be improved with B vitamins. People often find that meals high in carbohydrate are associated with sleepiness and calmness. The amino acid tryptophan can reduce the time taken to fall asleep, while tyrosine and tryptophan may help recovery from jet lag. Several ingredients, such as n-3 fatty acids, S-adenosylmethione (SAMe) and folic acid have attracted attention as potential functional ingredients for improving depression. Health and well-being in ageing Now we are living longer, there is an increased prevalence of the chronic conditions of ageing (e.g. cardiovascular disease, cancer, cataract, age-related macular degeneration, Parkinson's disease, Alzheimer's disease, osteoarthritis). Such conditions, and indeed ageing itself, may put increased oxidative stress on the body. So, if we can reduce this, we can potentially delay or prevent some of these diseases. Our bodies have several defenses against oxidative stress, including: antioxidant enzymes; minerals and trace elements, such as selenium, manganese and copper, which

PROEUHEALTH The cluster aimed to evaluate the role of probiotic bacteria in our GI health and overall well-being and to improve understanding of the role of intestinal bacteria in human health and disease. Development of new functional foods incorporating probiotics could help to improve gut health in ways that are beyond the provision of basic nutrition. NUTRIMENTHE The project will quantify effects of early nutrition programming on later cognitive and mental disorders as well as the influence of food on mental state and aspects of mental performance such as mood, attention, motivation, effort, perception, memory and intelligence. The effects of food on mental illness will also be studied. Outcomes could have major implications for public health and policy development, and for understanding of human biology, as well as for food product development, economic progress, and future wealth creation. CROWNALIFE The project explored guts microbial population changes with age. Compared with children, adults have a larger number of different groups of gut bacteria. An intervention trial found that a synbiotic reparation (probiotic and prebiotic) can influence the gut microflora of older adults. Findings will be applied to the development of new functional foods for the health and well-being of the elderly European population.

Functional Foods act as co-factors for the antioxidant enzymes; vitamins, such as vitamins C and E, and carotenoids, all of which can act as free radical quenchers with an antioxidant effect; glutathione, a cysteine-containing peptide with a thiol group which acts as a reducing agent that can be reversibly oxidised and reduced. Antioxidants naturally present in foods (e.g. vitamins C and E, carotenoids, flavonoids and other polyphenols) are potentially useful candidates for functional ingredients. Plant foods which contain these substances such as berries (e.g. cranberry, blueberry, goji, acai), mangosteen, pomegranate, tomato and grapes are now being explored by the functional food industry as potential antioxidants. Various other ingredients are potential functional ingredients for the prevention of age-related mental changes. The n-3 fatty acids may have a role in reducing the risk of depression and the prevention of age-related dementia, while ginkgo biloba might play a role in the circulation and may help to improve memory and mental concentration. Physical performance Functional foods could play a key role in helping us to be more physically active. Liquid food formulae that deliver an

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appropriate balance of fluid, electrolytes and energy substrates in a convenient and easily digestible form can help physically active people, including athletes. Such liquid foods may also help people who cannot easily consume enough food to meet their nutritional requirements. Specific types of carbohydrates with a range of glycaemic indices, can influence both active performance and recovery, offering potential for functional foods. Micronutrient supplementation of functional foods can also help to ensure adequate intakes during training and competition. Other candidate functional ingredients to potentially improve physical performance include caffeine, specific amino acids, creatine and carnitine. Obesity As already mentioned, obesity has become a global public health issue. In Europe the prevalence of obesity has tripled during the past two decades. More than half of all adults and one in five children are overweight or obese in the EU. The nutritional approach to weight management involves reducing energy intake, which may be achieved by reducing the energy density of the diet, reducing appetite and/or enhancing satiety or reducing fat absorption. Fat and sugar replacers are potential candidates for functional foods to

HELENA The project looked at the nutritional status of adolescents, including obesity prevalence, vitamin and mineral status and immunological markers. Food choices and preferences were investigated. This project helped to understand why health promoting messages are not as effective as expected in the adolescent population. The requirements for health promoting foods were also identified and products acceptable to this population group will be developed. FLORA The project (Flavonoids and related phenolics for healthy living using orally recommended antioxidants) is evaluating the beneficial effects of flavonoids and other plant phenolics on CVD and cancer. Flavonoids are present in a wide variety of foods from citrus fruits to green tea, dark chocolate and red wine. FLORA has already characterised the antioxidant and flavonoid content of a range of fruits and vegetables. Long term intake of dietary flavonoids in rats has shown that absorption of anthocyanins significantly lowers risk of heart attack; purple tomatoes have been shown to reduce risk of cancer in cancerprone mice. In humans who smoke, orange juice has a beneficial impact on platelet function.

Sweetness reduce energy density, while foods with low glycaemic index or dietary fibre may enhance satiety. A number of proposed functional food ingredients have been shown to act before the food is absorbed in the GI tract. These include chitosan, conjugated linoleic acid, diglycerides, medium-chain triglycerides, green tea, caffeine, calcium and capsaicin. Cardiovascular disease Improving the lipid profile of the diet Optimal heart health can be promoted by several dietary components, of which dietary fats are the best studied. Functional foods low in saturated fatty acids and trans fatty acids could help to promote optimal low density lipoprotein (LDL) cholesterol levels. Monounsaturates, such as olive oil, and polyunsaturates (e.g. linoleic and alphalinolenic acid) can reduce plasma (LDL) concentrations, and some do this without significantly lowering the beneficial high density lipoprotein (HDL) cholesterol. Olive oil has been the subject of many research studies for its antioxidant, anti-inflammatory and anti-thrombotic properties in reducing CVD risk. The long chain n-3 fatty acids (eicosapentaenoic acid and docosahexaenoic acid) found in fish oils can reduce plasma triacylglycerols, counteract blood clotting and promote blood vessel integrity. Functional foods enriched in these unsaturated fatty acids

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could reduce CVD risk. Other diet components Soluble fibre can influence cholesterol and lipoprotein metabolism. In particular, it can reduce LDL concentrations, particularly in people with high levels. Sources of soluble fibre currently used in functional foods include psyllium and dietary fructans (e.g. inulin, oligofructose). Phytosterols (plant sterols and stanols) are naturally present in many fruits, vegetables, nuts, seeds, legumes, cereals, vegetable oils and other plant sources. Used as functional foods in fat spreads etc, they have been shown in numerous studies to reduce plasma LDL concentration by an average of 10 % and are thought to act by reducing intestinal cholesterol absorption. Diets high in plant foods and rich in polyphenols have been associated with reduced risk for CVD and other chronic diseases. Possible mechanisms include their antiinflammatory, vasodilatory, anti-platelet and antioxidant effects. Flavonoids represent a diverse range of polyphenolic compounds, including flavonols, flavones, flavanones, flavan3-ols, isoflavones, anthocyanins and proanthocyanidins. Found naturally in plant foods (e.g., fruits, vegetables, grains, herbs and beverages), these compounds could offer potential as functional food ingredients.

HEALTHGRAIN The project aims to improve the well-being and reduce the risk of metabolic syndrome related diseases in Europe by increasing the intake of protective compounds in whole grains or their fractions. A whole grain diet seems to be protective against development of diet related disorders such as CVD and type 2 diabetes. Wholegrain cereal products have been screened for bioactive compounds including vitamins (folate, tocols, choline), phytochemicals (lignans, sterols, alkylresorcinols, phenolic acids) and indigestible carbohydrates. The aim is to produce safe and tasty cereal foods with high levels of ioactive ingredients for health. NUTRIDENT The project aims to identify and investigate the effects of beverage and food components on the development of major dental diseases. Dental caries and gingivitis are the most prevalent infectious diseases and are due to the accumulation of dental plaque (a bacterial biofilm) on the tooth surface and at the gingival margin respectively. Certain beverages and foods might protect against caries and gingivitis and this project will try to identify them. Such functional constituents could be incorporated into foods and/or into oral healthcare products such as chewing gum and toothpaste.

Functional Foods Other diet components Soluble fibre can influence cholesterol and lipoprotein metabolism. In particular, it can reduce LDL concentrations, particularly in people with high levels. Sources of soluble fibre currently used in functional foods include psyllium and dietary fructans (e.g. inulin, oligofructose). Phytosterols (plant sterols and stanols) are naturally present in many fruits, vegetables, nuts, seeds, legumes, cereals, vegetable oils and other plant sources. Used as functional foods in fat spreads etc, they have been shown in numerous studies to reduce plasma LDL concentration by an average of 10 % and are thought to act by reducing intestinal cholesterol absorption. Diets high in plant foods and rich in polyphenols have been associated with reduced risk for CVD and other chronic diseases. Possible mechanisms include their antiinflammatory, vasodilatory, anti-platelet and antioxidant effects. Flavonoids represent a diverse range of polyphenolic compounds, including flavonols, flavones, flavanones, flavan3-ols, isoflavones, anthocyanins and proanthocyanidins. Found naturally in plant foods (e.g., fruits, vegetables, grains, herbs and beverages), these compounds could offer potential as functional food ingredients. Diabetes mellitus Overweight and lack of physical activity

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have been consistently associated with increased risk of type 2 diabetes. However, diet also appears to be important. Evidence supports the use of whole grain foods, vegetables, fruits, foods low in saturated fat and also starchy foods with a low glycaemic index. Soluble fibres with a low glycaemic index, such as psyllium and inulin, can have potential beneficial effects on glucose metabolism and insulin sensitivity. Since compliance with dietary recommendations in diabetes is often poor, functional foods may be valuable in both treatment and prevention. Oral amino acids included in snacks have also been studied to explore positive benefits in blood glucose control and insulin sensitivity. Spices such as cinnamon, coriander, garlic, and turmeric may also be beneficial antidiabetic food ingredients. Chromium may be effective in optimising insulin metabolism and lowering plasma cholesterol levels. Genetics appear to have an influence, and nutrigenomic studies may help to shed light on the individuals who could benefit from additional chromium. Musculoskeletal disease Osteoarthritis is one of the most prevalent and debilitating chronic conditions affecting older people. Pharmacological interventions such as non-steroidal anti-inflammatory drugs (NSAIDs) are associated with severe

adverse effects; this creates a need for safe and alternative dietary therapies. Substances such as glucosamine and chondroitin are used as food supplements but could find application in functional foods. Evidence is also emerging for collagen hydrolysate, methylsulfonylmethane (MSM), Sadenosylmethionine (SAMe) and soybean unsaponifiables, all of which could be ed as functional food ingredients. Bone health Bone health is dependent on a variety of nutrients, including calcium, magnesium, vitamin D, vitamin K and vitamin C as well as trace minerals such as manganese, copper and zinc. Vitamin D is attracting attention for its role in bone mineral density and bone growth. A significant proportion of the European population has poor vitamin D status, due to lack of sunlight exposure. High fruit and vegetable intake is also associated with bone health and plant bioactive ingredients may emerge as useful ingredients for bone protection. Osteoporosis and bone fracture is a cause of considerable morbidity and mortality in older Europeans, making the search for bone protective ingredients of economic importance to the food industry and the well-being of the European population.

Food Chain

Fellowship of the Food Chain India gets traceability By: Dr. J. Lewis business. The emerging focus on traceability is driven by two facets – one, security from food scares and the other - consumer confidence in brands. Quite obviously the former is driven by the regulator, the latter by Industry.

idyear of 2011, Germany and later France reported an outbreak of shiga toxin producing E.coli that resulted in over 45 deaths; it is finally identified to fenugreek seeds imported from Egypt in 2009 representing a meticulous trace back to isolate the source of contamination and contain its spread. Considering that safe food is a basic human right traceability becomes a critical part of food safety management. The Food Safety & Standards Act 2006 in defining this new paradigm requires all food business operations embracing the entire food chain from production, import, storage, transportation, distribution and sale to be regulated by safety plans. Indian food business operators (FBO) are awakening to a new reality of the way they would now do

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Regulatory Perspective Since 9/11, most governments have given high priority to food security related statutes like bioterrorism, traceability and recall rather than being solely engaged in checking compliance with product specifications. Through the Bioterrorism Act of 2002, the US regulatory and enforcement agency has pushed for custody of chain data verification systems from each and every food business operator. The new Food Safety & Standards Act 2006 in replacing the erstwhile Prevention of Food Adulteration Act 1954 requires safety assurance of the food supply chain – a provision lacking in the PFA. This is a major enactment that will legally bind the 'fellowship of the chain' concept introduced in a previous article of collective responsibility. However much before security concerns of the food regulators emerged a few brand owners were already applying verifiable quality systems to their suppliers and were perhaps pioneers in the drive towards traceability. Consumers

view food brands as a badge of guarantee of safety and quality of their products. This plain and simple consumer behaviour drives free market economics specially when supply chain 'meltdowns' from contaminant outbreaks have demonstrated consumers panic and consequent market crashes. As pointed out in a previous article – it's not only the FBO that suffers from a demolished share of business but the entire chain suffers from plummeting sales as consumers often react equally to all brands. For example consumers typically wonder if the particular “salmonella tainted” peanuts landed in the brand of peanut butter they bought even though the source may have been different. Traceability in India is now an essential food business activity under the Food Act which requires FBO's to provide for traceability systems. For example Section 26 requires that all FBOs engaged at all stages of production, processing, import, distribution and sale shall ensure that foods satisfy the requirements of food law within the businesses under their control. This provision covers the entire chain including transporters and storage operators and is in accordance of the classical liability rules. It is not intended to have extra territorial influence outside the country but covers imported food up to retail. It also requires (Section 27) that a

wholesaler or distributor shall be liable under the Act for any article of food which is “unidentifiable of manufacturer from whom the article of food has been received or received by him with the knowledge of it being unsafe”. The same holds good for the retailer. Unlike before, the onus to ensure safe food is now the responsibility of the chain and not solely that of the manufacturer. These legal provisions require each FBO in the chain to verify that the food or ingredient he is receiving is safe and in compliance with the requirements of the Act. What is critical is that the particular information is accurate and efficiently transferred. At a basic level, all food business operators should be able to identify the person (s) from and to whom they have supplied a food (one step forward, one step back) or that any ingredients or substances that is expected to be added to its while in their custody. The Food Safety Management System would document how the traceability records are to be maintained. This primarily sums up the focus of regulatory authorities. But there's another side to it – building confidence in products. Food products derived from commodity ingredients such as meat, eggs, peanuts, milk etc have identifiable causes of outbreaks or recalls such as pathogens, toxins or injury causing substances such glass pieces etc. Contaminant trails are somewhat more open to be followed and investigated in the 'farm to fork' continuum. An excellent example of traceable systems is the APEDA's GrapeNet – an internet based residue traceability software system for monitoring fresh grapes exported from India to the EU. It is an end-to-end system for monitoring pesticide residue; achieve product standardization and covers trace back from retail shelves to the farm of the Indian grower. This is a live example of the concept of 'fellowship of the chain'. This is not to say that identifying the 'rogue source' of contamination is easy or straightforward as one would have noticed in the E.coli variant strain outbreak in Europe. From erroneously blaming Spanish cucumbers to finally identifying highly suspected imported seeds regulatory authorities and FBO's had to follow up on several pathways.

Oil & Food Journal Nov 2012

Nutraceuticals: trusted sourcing imperatives Nutraceuticals are a new food category that has a rather entangled supply chain from 'plant to pillbox'. This category of foods leaves complex trails. Apart from the wide spectrum of ingredients, multicomponent formulations, globalization of the industry has turned traceability into a veritable labyrinth. This is further compounded by dubious imports into the country of vitamins and botanicals from obscure sources and of dubious quality. Unlike commodity ingredients which are revealing when sensory attributes distort, dietary supplement ingredients do not – deficiencies lie hidden. Good brands owe it to their customers to use standard and well characterised ingredients. Also unlike general foods that are mostly sourced locally, dietary supplement ingredients start in all parts of the world and intersect on their way to the final product. Very few supplements on the market have linear manufacturersupplier relationships from start to finish. Even a single ingredient can work its way from the original source to final product through a series of mixings, additions, and processes sufficient to make traceability a hopeless pursuit. Botanicals extracts or concentrates are even more 'traceability challenged' where even the same name could present different histories of cultivation, geographies, extraction techniques, identity uncertainties and purity issues. Ginseng that is found in many supplement formulations could either be sourced from American ginseng (panax quinquefolium) or Asian ginseng (panax ginseng) or Siberian ginseng (acanthopanax senticosis), the latter considered as 'not true ginseng'. They differ in their major chemical constituents and differ in their end benefits. More importantly as an ingredient their conformance to safety criteria such as microbiological quality, contaminants or heavy metal limits are not yet regulated. Sourcing these plants from several countries could leave pesticide residues that are either illegally present or at unacceptable limits. How does one establish the integrity of a batch if its extractives are from several cultivations spread around the globe? Further some supplement manufacturers' access

materials from brokers who aggregate supplies according to price and availability. Documentation may be inaccessible, unverifiable and traceability a challenge. In this complex and layered supply chain dietary supplements manufacturers are burdened with heightened responsibilities of identifying safe and pure ingredients that they can reliably use in their formulations. A formidable task no doubt but major brand owners owe this to their consumers. Reputed brand owners will set up prerequisite systems and obligations on their suppliers and inevitably source from reliable suppliers who can demonstrate verifiable document systems, identity tags, and third party audits. These manufacturers can raise the bar in the market if their product can demonstrate systems of where the plant was grown or harvested, its purity and safety indices differentiating themselves in the market. Traceability can become a subtle and effective way of gaining consumer trust. Risk Management Traceability does not of itself make food safe. It is a risk management initiative to be used in order to containing a food safety problem; particularly in targetted food recalls. The Food Act heralds a new situation (unlike the PFA) where food safety is a shared responsibility of every food business operator who takes custody of the food as it travels the chain. Each link in the chain undertakes measures appropriate to its specific activities in fulfilling its fellowship obligations and the regulatory mandate. Traceability is a legal bonding of the fellowship of the chain. About the author: Dr. Joseph Lewis is a regulatory consultant with over 20 years of experience. He has been involved in food regulations, being previously a member of Central Committee of Food Standards (CCFS) and now on FSSAI Scientific Panel. He has regulatory experience with Indian and multinational food companies. He is a consultant with MediaMedic Communications for Health Foods, Nutraceutical & Dietary Supplements.

Chocolate, caramel, coffee & co

Dรถhler develops new "brown" flavours that go with the spirit of the times!

รถhler (Doehler) has developed a new range of "brown" flavours, ranging from chocolate, cocoa, nut, nougat and coffee through to caramel and vanilla. Each of these flavours is available in a diverse range of nuances. In addition to extracts and natural flavours, the global ingredient producer also offers a number of compositional flavours. "Going with the taste of the times!" was the motto guiding the development of the new flavour range. Not only are markets and technologies constantly changing, so are flavour preferences which are also constantly evolving and becoming more varied. For example, consumers today can choose from over a hundred different types of chocolate. While caramel often had a "burnt" character in Europe ten years ago, today's preferences are for milder accents. Flavour preferences also vary from one country to the next. That is why, in addition to a range of different 58 Oil & Food Journal

Nov 2012

nuances of the individual flavour variations, the Dรถhler portfolio also features a product range with a regional focus which appeals to country-specific flavour preferences. "Brown" flavours stand for pure indulgence, which is why they are among the top flavour variations in the dairy and ice cream segment. Even in the alcoholic segment, cream liqueurs are unimaginable without them. Today, however, the boundaries between the individual beverage categories are becoming increasingly blurred. The modern consumer is more than willing to try new things! Why shouldn't chocolate, nut, vanilla and co. provide added indulgence in the soft drink market, too? For this reason, Dรถhler has also developed innovative beverages with brown flavours, in addition to classic dairy and ice cream concepts. The spectrum ranges from carbonated soft drinks with lemon-caramel flavour to beer mixes refined with chocolatecherry-chili-spice, through to a coffeechocolate energy drink. Thanks to its integrated approach, Dรถhler offers everything from a single source: from the first product idea to the tailor-made compound which already contains all well-balanced ingredients. There is no easier way to achieving innovation for the customer.

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