APFI March 2015 by Eastern Trade Media

EXCLUSIVE CONTENT ON OUR WEBSITE @ APFOODONLINE ASIA PACIFIC FOOD INDUSTRY

MARCH 2015

APFI KNOWLEDGE SERIES: MCI (P) 027/11/2014 • PPS 1566/05/2013 (022945) • ISSN 0218-2734

AEC Conference 2015 Pan Pacific Singapore Hotel 24 April 2015

MARCH 2015 VOL. 27 NO. 2

Why is label standardisation important for the region?

BIG DATA IN FUNCTIONAL FOOD

See how application of big data technology can propel businesses forward. p36

COSTLY MISTAKES IN DISTRIBUTION AGREEMENTS Avoid these costly errors that can undermine your business. p72

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Schaefer Systems International Pte Ltd P: 65/6863 0168 路 enquiry.sg@ssi-schaefer.com 路 www.ssi-schaefer.com

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Enquiry Number

As a full range supplier of warehouse and logistics systems we support our customers in a comprehensive and straight-forward way. Irrespective of whether you decide in favour of a manual, partially or fully-automated solution. For more than 75 years, we have been designing concepts for all kinds of industries. We customise every solution to the particular requirements of our clients in a cooperative partnership. Using our many years of experience to your advantage, we will demonstrate how to make your processes more efficient.

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3/3/15 9:07 am

WE L VE … per fect bars

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Conbar_205x275.indd 1 3835 Sollich.indd 1

Enquiry Number

CONBAR ®

SOLLICH ASIA Pte. Ltd. No. 2 Kallang Avenue, #06-21 CT Hub, Singapore 339407 Telephone +65 6741 4722 · Fax +65 6743 5098 E-Mail: rainer.buchmann@sollich.com.sg

3835

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02.02.15 13:27 3/3/15 9:07 am

CONTENTS

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

26 www.apfoodonline.com

Sanitising Food Grade Conveyors

volume 27 no.2

There may not have been a better time for food companies to invest in the development of products that are enhanced with functional ingredients and the application of big data technology may be the big leap forward. By Vincent Monahan, Nuritas

HEALTH & NUTRITION 40

Sanitising Food Grade Conveyors

INGREDIENTS & ADDITIVES 30

Conveyor systems are an integral part of any food manufacturing plant, but they are susceptible to contamination without proper care. Modern design features can help ensure safety and reduce risks for businesses. By Peter Wood, Key Technology

Contents.indd 2

Shining The Light On Obesity

Capitalising The Clinical Nutrition Opportunity

Asia Pacific is the largest clinical nutrition market in the world and is set to sustain its tremendous growth. With many factors driving demand in the region, clinical nutrition is an area that is worth looking into. By Alina F Slotnik, Glanbia Nutritionals

Identical To Nature In recent years, the food industry is increasingly focusing on innovative solutions to enhance its products with desired properties that have additional benefits, and plant secondary metabolites such as hydroxytyrosol are much sought after as an active agent. The only challenge lies in simplifying the production process. Simone Trautz, Wacker Biosolutions

Shining The Light On Obesity There are strong suggestions that vitamin D intake has profound effects on obesity. However, in most countries around the world, relying purely on natural synthesis or dietary intake is far from sufficient. By Catherine A Peterson, University of Missouri-Columbia

Identical To Nature PACKAGING & PROCESSING

Meeting Functional Demands Through Big Data

Whatâ&#x20AC;&#x2122;s In Your Food? Are you really what you eat? In this section, we round up the latest research around the world for you to decide.

BEVERAGES 52

A Hold On Liquid Dairy Packaging The demand for liquid dairy products has been growing, especially in developing markets. The conversion towards plastic bottles can create a more convenient consumer experience without compromising on product integrity. By Max Duclot, Sidel

9/3/15 2:37 pm

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CONTENTS

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

www.apfoodonline.com

volume 27 no.2

Refer to Advertising Index on Pg

for Advertisers’ Enquiry Numbers

DEPARTMENTS

Labelled For Integration

FEATURES 56

Playing Fair In The Fields

Women farmers in developing economies are often denied access to the same resources as their male counterparts. This has tipped the scale severely and regaining a balance might just be the thing the food industry needs to secure its future. By Sherlyne Yong

China Says Cheese A decade ago, cheese was a tough sell in China, but as the Chinese grew more receptive to the taste and smell of cheese, the market has developed into one with huge potential. By Dominic Morgan, CCM

06 08 12 22 79 80A 80B

The EU introduced a new food labelling regulation at the end of 2014. How would this impact food and beverage companies and how should they react to this new change? By Maud Nauge, Intertek Food Labelling Center of Excellence

Five Costly Mistakes In Distribution Agreements A distribution agreement plays a crucial role in any food trading business. However, without due prudence in the drafting process, it can be become a costly problem. By Andreas Respondek, Respondek & Fan

Labelled For Integration The AEC may be looming near, but the lack of harmonised standards and regulations still serve as a trade barrier that prevents the food industry from realising its full potential. By Sherlyne Yong

Conciliating EU Regulations With International Laws

The Unsustainability Of Sustainability Sustainability has become an expectation of consumers, but how willing are they to pay more for it and how much does it really affect their purchase decisions? By Robin de Rooij, SKIM Group

China Says Cheese

Editor’s Note Advertiser’s List Business News Product Highlights Calendar Of Events Reader’s Enquiry Form Subscription Information

ASIA PACIFIC FOOD INDUSTRY is published 8 times a year by Eastern Trade Media Pte Ltd. The Publisher reserves the right to accept or reject all editorial or advertising material, and assumes no responsibility for the return of unsolicited artwork or manuscripts. All rights reserved. Reproduction of the magazine, in whole or in part, is prohibited without the prior written consent, not unreasonably withheld, of the publisher. Reprints of articles appearing in previous issues of the magazine can be had on request, subject to a minimum quantity. The views expressed in this journal are not necessarily those of the publisher and while every attempt will be made to ensure the accuracy and authenticity of information appearing in the magazine, the publisher accepts no liability for damages caused by misinterpretation of information, expressed or implied, within the pages of the magazine. All correspondence regarding editorial, editorial contributions or editorial contents should be directed to the Editor. The magazine is available at an annual subscription of S$176.00. Please refer to the subscription form or contact the subscription department for further details at FAX NO: (65) 6379 2806 Address changes should be notified, in writing, to our circulation executive: EASTERN TRADE MEDIA PTE LTD 1100 Lower Delta Road EPL Building #02-02 Singapore 169206

EXHIBITION PREVIEW 78

Ipack-Ima

THE CIRCULATION OF THIS PUBLICATION IS AUDITED BY BPA INTERNATIONAL THE ADVERTISERS’ ASSOCIATIONS RECOMMEND THAT ADVERTISERS SHOULD PLACE THEIR ADVERTISEMENTS ONLY IN AUDITED PUBLICATIONS

MCI (P) 027/11/2014 • PPS 1566/5/2013 (022945) ISSN 0218-2734 • Co Reg No: 199908196C

Cover Picture Courtesy of Primera Label

Contents.indd 4

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4/3/15 9:50 am

EDITOR’S NOTE 6

AEC

editor Wong Tsz Hin

GET READY FOR

wongtszhin@epl.com.sg

editor - special projects Sherlyne Yong

sherlyneyong@epl.com.sg

editorial assistant Audrey Ang

WITH plans to establish an ASEAN economic community (AEC) by the end of 2015 in full swing, it is high time for businesses to start preparing and adjusting their business models to meet changing needs. The potential business opportunities presented by the AEC is undeniable, but at first glance, understanding the intricacies of the community can be a daunting task, especially with the lack of public information to aid the process. Therefore, as the first part of the APFI Knowledge Series (www.apfoodonline.com/knowledgeseries), we will be bringing key industry players in Singapore together to share more about the prospects and challenges that the AEC would bring. This is done with the aim of empowering business owners with the knowledge and information that they need to fully maximise their potential in the region.

audreyang@epl.com.sg

graphic designer Peh Loon Chin

pehloonchin@epl.com.sg

publication manager Peh Sue Ann sueann@epl.com.sg

circulation executive Chiang Hui

chianghui@epl.com.sg

contributors Andreas Respondek Catherine A Peterson Dominic Morgan Laina F Slotnik Maud Nauge Max Duclot Peter Wood Robin de Rooij Simone Trautz Sourabh Sharma Vincent Monahan

The conference, which is supported by the ASEAN Food and Beverage Alliance and Singapore Food Manufacturer’s Association, features Singapore’s Minister of State, Mr Desmond Lee, as the guest-of-honour as well as a line-up of esteemed speakers. You can turn to page 7 for more information. Trading activities in the ASEAN region is expected to flourish with the growing middle class driving consumption of goods, while the recovery of mature markets and continued growth of BRICS will help increase export volumes. The AEC will provide direct links for regional companies to reach out to these lucrative markets and promote movement of goods. All in all, it will be an exciting year ahead.

board of industry consultants Dr Aaron Brody Managing Director Packaging/Brody, Inc Dr Alastair Hicks Adjunct Professor of Agroindustry Mae Fah Luang University, Thailand Professor Alex Büchanan Professional Fellow Victoria University Dr Nik Ismail Nik Daud Head, Food Quality Research Unit Universiti Kebangsaan Malaysia/ President Malaysian Institute of Food Technology Kathy Brownlie Global Program Manager Food & Beverage Ingredients Practice Frost & Sullivan Sam S Daniels Consultant World Packaging Organisation

Wong Tsz Hin

Want to get the latest news and insights?

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chairman Kenneth Tan executive director Lum Kum Kuen

Visit our official website to get exclusive content. Listen to the voices of the industry as we share the latest news and updates available!

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EdNote.indd 6

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9/3/15 3:39 pm

APFI KNOWLEDGE SERIES:

All You Need To Know About AEC 2015

E DG E I F L APNOWES K ERI 015 S EC 2 A

Pan Pacific Singapore Hotel, 24 April 2015 Think you’re ready for the ASEAN Economic Community (AEC)? Prepare yourself ahead of its impending formation by getting first-hand information from key industry players. The APFI Knowledge Series: AEC 2015 is a high level conference designed to prepare Singaporean food and beverage companies for the AEC. Don’t get left behind, join us now.

08.15 - 08.45

Registration/Light Breakfast

08.45 - 09.00

Arrival of Guest-of-Honour, Mr Desmond Lee, Minister of State

09.00 - 09.10

Welcome Address

09.10 - 09.25

Opening Address

09.25 - 10.05

Keynote Address by Mr Douglas Foo, ASEAN Business Advisory Council

10.05 - 10.45

Risks & Opportunities of AEC by Mr Pushpanathan Sundram, Managing Director, EAS Strategic Advice Pte Ltd

10.45 - 11.05

Coffee Break

11.05 - 11.45

Realising AEC: Role and Impact of an Industry Association by Mr Sunny Koh, Chairman for Singapore, ASEAN Food & Beverage Alliance (AFBA)

11.45 - 12.25

Removal of Trade Barriers: What is the future of self-certification and how will businesses benefit from it? by Mr Tan Juan Fook, Trade Policy - FTA Lead, Ernst & Young Solution LLP

12.25 - 13.05

AEC & the Singapore Connection by Mr Alban Kang, Managing Partner, ATMD Bird & Bird

13.05 - 13.30

The Unique Roles of Singapore in AEC — A Food Manufacturer’s Viewpoint by Mr Wong Mong Hong, Immediate Past President, Singapore Food Manufacturers’ Association (SFMA)

13.30 - 15.00

Lunch/Networking

TICKETING INFORMATION PRICE

Individual

Mr Desmond Lee is the Minister of State for National Development and an elected Member of Parliament for the Jurong Group Representation Constituency. In his role, he leads major portfolios in statutory boards under the Ministry of National Development, including Housing and Development Board (HDB), Urban Redevelopment Authority (URA), National Parks Board (NParks) and the Agri-Food & Veterinary Authority Singapore (AVA).

Speakers’ Profile

PROGRAMME

CATEGORY

Guest-of-Honour

Mr Douglas Foo is a member of the ASEAN Business Advisory Council. As founder and Executive Chairman of Sakae Holdings Ltd., Mr Foo has led the growth and development of the group, which has since established over 200 outlets across the world. Mr Pushpanathan Sundram is the Managing Director (Asia) of EAS Strategic Advice, a global leader advising governments, trade associations and businesses on regulatory harmonisation and impact of new regulations in the food and nutritional products areas. Mr Sunny Koh is the Chairman for Singapore of the ASEAN Food and Beverage Alliance (AFBA), and Managing Director of Chinatown Food Corporation Pte Ltd with more than 20 years of experience in the food and beverage industry.

Mr Tan Juan Fook is the Trade Policy, FTA Lead in the Indirect Tax – Global Trade, Ernst & Young Solutions LLP, Singapore. He advises companies to take advantage of FTAs in cross border trade of goods.

Mr Alban Kang is the Managing Partner of ATMD Bird and Bird LLP. He is also a member of the Intellectual Property & Information Technology practice group in Singapore, which handles all aspects of intellectual property and other laws.

$380

Bundle (4 tickets)

$1,368 (10% discount)

Association Special *requires code

$285 (25% discount)

Catch the early bird discount of extra 15% for individual & bundle tickets! (Valid till 31 March) For payment by cheques: Eastern Trade Media Pte Ltd Send it to: Cynthia Chew, 1100 Lower Delta Road, #02-05, EPL Building, Singapore 169206 Organised by:

Mr Wong Mong Hong is the Immediate Past President of Singapore Food Manufacturers’ Association. He has worked in the food industry for 47 years and sits as a member in the Governing Board of Singapore Packaging Agreement. Supported by:

» For more information, visit

www.apfoodonline.com/ knowledgeseries

IHA AEC 2.indd 1

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ASIA PACIFIC FOOD INDUSTRY ADVERTISING INDEX ENQ NO

ADVERTISERS

PAGE

ENQ NO

ADVERTISERS

PAGE

3827

BASF SOUTH EAST ASIA PTE LTD

OBC

3840

KHS ASIA PTE LTD

3829

BERNDORF BAND GMBH

3781

KRONES AG

3811

BRADY CORPORATION ASIA PTE LTD

3842

OERLIKON LEYBOLD VACUUM SINGAPORE PTE LTD

3834

BRENNTAG PTE LTD

3471

POM WONDERFUL

3841

CLEARPACK SINGAPORE PTE LTD

3843

PROPAK ASIA 2015

3634

EVERGREEN PACKAGING

3828

PROPAK CHINA 2015

3826

FI ASIA-CHINA 2015

IBC

3823

SANDVIK SOUTH EAST ASIA PTE LTD

3825

FI CHINA 2015

3833

SCHAEFER SYSTEMS INTERNATIONAL PTE LTD

IFC

3837

FI KOREA 2015

3839

SCHENCK PROCESS SINGAPORE PTE LTD

3838

FI VIETNAM 2015

3835

SOLLICH KG

3743

FLEXICON SINGAPORE PTE LTD

3821

TAIPEI INTERNATIONAL FOOD & HALAL SHOW 2015

3824

FORTITECH INC

6053

TCP PIONEER INCORPORATED

3647

GUANGZHOU SUNSHINE FOOD & PACKAGING MACHINERY CO LTD 67

3836

THAI VEGETABLE OIL PUBLIC CO LTD

3820

HEAT AND CONTROL PTY LTD

3822

THAIFEX – WORLD OF FOOD ASIA 2015

3831

IPACK-IMA SPA

3453

URSCHEL ASIA PACIFIC PTE LTD

3830

KH ROBERTS PTE LTD

3832

WOLF VERPACKUNGSMASCHINEN GMBH

1 59 69 10 & 11

This index is provided as an additional service. The publisher does not assume any liability for errors or omissions.

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3/3/15 9:09 am

BUSINESS QuickBites

Mitsubishi Acquires Voting Interest In Nissin Foods

Carotech Announces New Company Name With immediate effect, the company will be officially known as ExcelVite.

TOKYO, JAPAN: Mitsubishi Corporation (MC) and Nissin Foods Holdings (Nissin Foods HD) have entered a strategic alliance that will allow the former to hold a 34 percent voting interest in the latter’s local instant noodle operations in Singapore, India, Thailand and Vietnam. Under a new strategic direction, the company’s current corporate strategy released in 2013, MC is seeking to expand in the Asian market by forming alliances with leading companies, and has since been steadily increasing its business involvement in the region. Entering the market for the manufacture and sale of instant noodles, a staple in Asia, will enable the company to establish food processing and manufacturing as one of its core businesses overseas. In partnership with Nissin Foods HD, which is involved in the instant noodles industry, MC will leverage its vertical integration business model expertise—from raw materials procurement to sales—to enhance its overall corporate value in these four Asian markets. Considered a ‘global food’ from the outset, the market for instant noodles has continued to grow, with over 100 billion instant noodle meals sold worldwide in 2012. Much of this volume is accounted for by emerging markets in Asia such as India, Thailand and Vietnam, and demand in these three countries alone is expected to see significant growth.

Asia Pacific’s Top News at a glance

Sprouted Grains The Big Trend For 2015 Driving interest in sprouted grains is a small but growing percentageof mainstream consumers who are reducing their carbohydrate consumption. India’s Confectionery Market Sets For Growth According to Canadean, the market which was worth close to US$1.3 billion in 2013 is expected to grow by 71 percent to reach US$2.2 billion in 2018. The Philippines Signs Off Food Safety Act Implementation of the act will give assurance that the food that consumers buy will not cause illness or death. Lifestyle Differences Fuel Yoghurt Growth A report by DSM has revealed how yoghurt preferences and eating occasions differ between countries and cultures. WHO Launches Children Marketing Tool The organisation’s Europe regional office has developed a nutrient profile model for countries to adopt and use to classify foods.

Global Food Prices Continue To Plummet Overall, trade-weighted index has declined since 2014.

Jon Osborne

Arla Foods Establishes Business Unit In Asia After integrating its China and Southeast Asia businesses, the company’s regional office will be located in Kuala Lumpur, Malaysia.

_______________ Enquiry No: 0200

APFI KNOWLEDGE SERIES:

All You Need To Know About AEC 2015

Pan Pacific Singapore Hotel, 24 April 2015 NEWS4.indd 12

» For more information, visit

www.apfoodonline.com/ knowledgeseries

6/3/15 10:45 am

Veganbaking.net

ASIA PACIFIC FOOD INDUSTRY MARCH 2015

Straight running steel belts from Berndorf Band improve productivity

Sprouted Grains The Big Trend For 2015 LONDON, UK: Entrepreneurs have reinvented an ancient food for the 21st century, tapping into consumers’ desire for ‘good carbs’ and healthier snacks and creating a small but fast-growing niche. “By taking grains and sprouting them before using them in snacks and other foods, they’re delivering ‘good grains’ that are naturally gluten-free for people who want to avoid bad carbs and snack more healthily,” says Julian Mellentin, director of New Nutrition Business. The market is developing fastest in the US, where sales of products featuring sprouted grains are on track for over US$250 million by 2018. Proof of the potential of sprouted grains is snack brand Way Better, a rapidly-growing brand with sales of US$25 million in just three years after gaining space at more than 20,000 stores. The chips are made of the seeds of flax, quinoa, kale, chia and black beans: the brand’s crackers are made from barley, spelt and emmer. Driving interest in sprouted grains is a small but growing percentage of mainstream consumers who are reducing their consumption of carbohydrates, in particular foods made from wheat and corn. Positive references to sprouted grains are showing up in health-related media. In 2014, a survey conducted by Way Better with the Natural Marketing Institute found that 17 percent of Americans were already aware of products with sprouted grains and seeds. The number of new product launches with sprouted grains is small—just 19 in 2014 according to Mintel—but numbers are growing fast. Like all important ingredient trends, this one is starting under the radar but its ‘naturally functional’ credentials mean that sprouted grains will only become more common as an ingredient. ________________________________________ Enquiry No: 0201

NEWS4.indd 13

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6/3/15 10:45 am

BUSINESS NEWS

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

Rigid Packaging Expected To Grow

How much do you know about AEC? Âť Turn to pg 7 to find out more

Paul Wilkinson, London, UK

Indiaâ&#x20AC;&#x2122;s Confectionery Market Sets For Growth

LONDON, UK: Canadean expects the confectionery market in India to grow by 71 percent in the next four years, as the growing Indian middle-class consumes more gums and jellies and chocolate continues to be high in demand among children. The Indian confectionery market was worth close to US$1.3 billion in 2013 and is expected to grow by 71 percent to reach US$2.2 billion in 2018. Economic growth and development has resulted in rising disposable incomes in India, especially among the middle-class. According to the research firm, this class accounts for 45 percent of overall confectionery consumption in the country, and more than half of the consumed confectionery is gum. Due to the soaring temperatures in India, consumers prefer gums and jellies over chocolate, especially in the summer months. The research agency has found that sugar confectionery and gum will outsell chocolate in volume terms: gum is expected to see an increase of 64 percent in volume consumption by 2018, compared to a growth of only 41 percent in chocolate consumption. ______________________________________ Enquiry No: 0202

NEWS4.indd 14

NEW YORK, US: Packaging is the process of enclosing or protecting the finished food products for distribution, storage, sale and enduse. According to Persistence Market Research, rigid packaging has gained its importance in the food and beverage industry as it provides long shelf life to the packaged food items. As compared to other packaging types, rigid plastic packaging containers provide unique benefits such as high impact strength, high stiffness and high barrier properties, which have expanded the market for the rigid plastic packaging medium in recent years. Rigid plastic packaging dominates the global rigid packaging for the food and beverage industry. However, rigid paper packaging material is expected to witness the highest CAGR during the forecast period. Rigid packaging is predominantly used to store carbonated beverages, water, juices, teas, sports drinks, nutritional drinks, baby food, and frozen food for the beverage industry. Asia Pacific has the largest market share for rigid packaging for food and beverages, followed by North America and Europe. The food and beverage industries in North America and Europe have reached saturation levels. Therefore, these regions are expected to witness average growth in the near future. Asia Pacific is expected to witness the fastest growth and remain the largest market due to its growing food and beverage industries. Emerging markets such as India and China are expected to boost the rigid packaging market for food and beverage in the region. Other emerging markets for rigid packaging for food and beverage industry are Brazil and the Middle East. The increasing popularity of packaging media that provide long shelf life to finished f o o d p rod u cts i s d r i vi n g gl ob al rig id packaging in the food and beverage industry. Moreover, the increasing number of nuclear families and rising demand for convenience food is expected to further boost the rigid packaging market for food and beverages.

__________________________________ Enquiry No: 0203

6/3/15 10:45 am

ASIA PACIFIC FOOD INDUSTRY MARCH 2015

Did you know? “The Edible Growth Project has created a pastry shell embedded with seeds, yeast and spores that mature in 3-5 days for consumption.”

Lifestyle Differences Fuel Yoghurt Growth

Take a Fresh Approach with The Shelf Life People.

DELFT, THE NETHERLANDS: DSM has published a report revealing how yoghurt preferences and eating occasions differ between countries and cultures. The findings indicate there are new and interesting opportunities for dairy companies to bring more yoghurt varieties to a growing global market. Based on a survey carried out in countries as varied as China, US, Brazil, Poland, France and Turkey, the results demonstrate different yoghurt consumption trends between countries, gender and age groups. Finding ways to leverage these differences and integrate yoghurt into consumers’ lives is key to further growing this vibrant market. The report revealed that 53 percent of the consumers surveyed are eating more yoghurt than before. Although this figure is higher in emerging dairy markets like Brazil and China, the absolute amount and frequency of yogurt consumed is lagging behind, compared to more mature markets like France and Turkey. The occasions consumers eat yoghurt vary per country, from a dessert in France (87 percent), to a snack on the go in Poland (73 percent) to a beverage in China (47 percent). In fact, drinking yoghurt dominates the Chinese yoghurt market, as 49 percent of people mainly prefer drinking yoghurt, whereas just 11 percent mostly eat spoonable yoghurt. The favourite type of yoghurt also differs per country: Greek yogurt is increasingly popular in the US (36 percent), however the Chinese have been eating more probiotic yogurt over the last three years (54 percent). As emerging yoghurt markets are embracing dairy desserts in different ways, this may open innovation and consumption opportunities that are not available in mature yoghurt markets.

Take shelf life to the next level with our new EQ-70 gable top filling machine.

NEWS4.indd 15

• Preserve freshness: Environmental control features and carton treatment maintain product quality • Maximize production: Servo-driven features simplify operation • Gain flexibility: Quick and easy changes to fill volume, carton heights • Reduce downtime: Easy to operate and maintain Want to apply our fresh approach to your next product? Call us today . . . because we’re The Shelf Life People.

Optional SPOUT-PAK® closure system available. ©2014 Evergreen Packaging Inc. All Rights Reserved. ELL is a registered trademark of Evergreen Packaging Inc. SPOUT-PAK is a registered trademark of Evergreen Packaging International BV.

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Cedar Rapids, Iowa, USA +1 319-399-3200 www.evergreenpackaging.com

Enquiry Number

_________________________________________ Enquiry No: 0204

Developed specifically for midsize volume markets, the EQ-70 is designed with our exclusive ELL® features to maximize the shelf life of milk, specialty milk products, liquid egg products and still beverages.

6/3/15 10:45 am

BUSINESS NEWS

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

Nathanael Coyne, Canberra, Australia

WHO Launches Children Marketing Tool

Arla Foods Establishes Business Unit In Asia

COPENHAGEN, DENMARK: Across the WHO European Region, children are still regularly exposed to marketing that promotes foods and drinks high in energy, saturated fats, trans fatty acids, free sugars or salt. A first step in developing policies to restrict marketing to children is to establish the criteria that identify such foods and drinks. To meet this need, the organisation’s regional office for Europe has developed a nutrient profile model for countries to adapt and use to classify foods according to their nutritional composition. Marketing of foods high in energy, fats, sugars or salt has a documented harmful impact on children: it promotes the development of unhealthy food preferences and diets, and childhood obesity, therefore, contributing to the later development of diet-related non-communicable diseases. Policies that introduce tighter controls on the marketing of foods to children will be central to fight childhood obesity. The regional office’s nutrient profile model is intended to reduce the pressure of marketing on children by helping countries identify foods for which marketing should not be permitted. Unhealthy diets are a leading factor affecting health and well-being in every European country; rising overweight and obesity among children are particular concerns. Affecting up to 27 percent of 13 year olds and 33 percent of 11 year olds, being overweight risks becoming the new norm in the WHO European Region. Robust evidence points to a link between exposure to food marketing and unhealthy diets and obesity in children. The leading categories of advertised foods are soft drinks, sweetened breakfast cereals, biscuits, confectionery, snack foods, ready meals and fast food. Brand recognition starts in early childhood. Children who recognise multiple brands by the age of four years are more likely to eat unhealthily and be overweight. Research has demonstrated that overweight children in particular respond to the presence of branded food packaging by increasing their consumption. The model is largely based on the Danish and Norwegian models, which are used to restrict food marketing to children. Health authorities developed the Norwegian model, while the Danish model was developed by the Forum for Responsible Food Marketing Communication, a trade association, but endorsed for use by the Danish Government.

VIBY J, DENMARK: Arla Foods is integrating its markets in China and Southeast Asia (SEA) in a new regional market called Business Unit Asia. The regional office will be placed in Kuala Lumpur, Malaysia, as of March 1, 2015. Asia is vital to the company’s ambitions to grow and to increase earnings for its cooperative farmerowners in Europe. As the world’s fastest growing economic region with a raw milk deficit and a total population of 2.3 billion people, Asia holds great potential for dairy export, in particular for family nutrition products. China is a strategic growth market for the company, while SEA has been identified as a region which could potentially become a new strategic growth market. The expectation is that revenue for the region will exceed €1 billion (US$1.12 billion) within the next five years. The consumer needs in China and SEA have many similarities and therefore, possible synergies within brand and product portfolio, marketing and innovation. The management of the business unit will be based in a regional office in Kuala Lumpur and will be setting the strategy for all retail and food service activities in Asia. The unit will cover the Chinese retail sales through the partnership with Mengniu Dairy China as well as the SEA market. During 2014, the company has established or strengthened the country management in Bangladesh, Indonesia, Myanmar and the Philippines, and these as well as the management in Japan and South Korea and distributor sales in SEA, will all report to the regional office.

______________________________________________________ Enquiry No: 0205

____________________ Enquiry No: 0206

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BUSINESS NEWS

ASIA PACIFIC FOOD INDUSTRY MARCH 2015

Mondelez Acquires Enjoy Life Foods ILLINOIS, US: Mondelez International has announced the acquisition of Enjoy Life Foods, a private US snacking company involved in the fastgrowing ‘free from’ segment. Enjoy Life offers more than 40 products, including cookies, chocolate, snack bars, and savoury snacks that are allergy-friendly and gluten-free. The company’s products are free from the eight most common allergens— wheat, dairy, peanuts, tree nuts, egg, soy, fish and shellfish—which together account for about 90 percent of all food allergies. The US$12 billion ‘free-from’ market in the US is large and growing at strong double-digit rates, driven by an increasing incidence of food allergies and food intolerances as well as consumers adopting ‘free from’ as a healthy-lifestyle option. The CEO and founder, and other members of the Enjoy Life leadership team will continue to lead the company. Mondelez International will operate the company as a separate, wholly owned subsidiary to continue to nurture its entrepreneurial spirit, but will provide back-office support and access to its global resources. ________________________________________________________ Enquiry No: 0207

Don’t get left behind, prepare for AEC now! » Learn more on pg 7

YOUR RIGHT INGREDIENT – TODAY AND TOMORROW

We serve markets that include, but are not limited to: ■■ Bakery & Snacks ■■ Dairy ■■ Brewing ■■ Meat & Poultry ■■ Beverage ■■ Seafood ■■ Confectionery

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Committed to building bridges between food producers and ingredient manufacturers, our shared experience, market knowledge and technical application expertise enable our

partners to make the most out of trends and development.

Enquiry Number

Brenntag Pte. Ltd. 2 Bukit Merah Central #09-01 Singapore 159835 Phone: +65 6511 7830 foodbeverage@brenntag-asia.com

Brenntag Food & Beverage is an experienced partner throughout the Asia Pacific region, offering a reliable supply of high quality ingredients from all over the world.

www.brenntag-asia.com

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BUSINESS NEWS

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

The Philippines Signs Off Food Safety Act M A N I L A , T H E P H I L I P P I N E S : The Philippines’ Department of Health (DOH) and the Department of Agriculture (DA) have signed the landmark Implementing Rules and Regulations (IRR) of the Food Safety Act of 2013 that aims to ensure the safety of food all the way from the farm to the dinner table. The Food Safety Act of 2013, is also known as Republic Act 10611 “An Act To Strengthen The Food Safety Regulatory System In The Country To Protect Consumer Health And Facilitate Market Access Of Local Foods And Food Products, And For Other Purposes.” Implementation of the IRR will give the assurance that the food that the consumer buys will not cause illness or death, that one is getting what is promised by the label, and, if anything goes wrong after consuming the product, one would know who is responsible. Under the said IRR, food business operators (FBOs) shall be required to establish a traceability system for food, food-producing plants and animals and other inputs in the primary and post-harvest stages of the food chain. This system will indicate at the minimum where the item immediately came from and where it will immediately proceed. The traceability systems implemented by FBOs shall be based on principles and guidelines of Codex and other international bodies. All fresh produce or primary food obtained from primary production shall be under the jurisdiction of the DA. On the other hand, the DOH-Food and Drug Administration shall be responsible for all processed food, whether pre-packaged or not. _______________________ Enquiry No: 0208

kristy & ian

MicroMarket Monitor Projects Growth In Colourant Market TEXAS, US: The Asia Pacific food and beverage colourants market is expected to grow from US$405.9 million in 2013 to US$539.9 million by 2019, at a CAGR of 4.8 percent from 2014 to 2019. In Asia Pacific, the food and beverages colourants market in India is expected to grow at the fastest CAGR during the forecast period of 2014 to 2019. The market demand for food products is mainly driven by the increasing population and the rising disposable incomes, resulting from economic development in the region. Due to the harmful effects of synthetic food colourants, their consumption is gradually coming down in India. However, due to the relatively higher costs of natural colourants, the shift from synthetic colorants is projected to occur over a long period of time. Presently, there is a rampant use of unpermitted colourants and the misuse of permitted colours taking place in the Indian food processing industry. In 2014, the Asia Pacific market was dominated by a large number of small producers and distributors of food and beverage colourants. Among the application segments, the frozen meat products segment is projected to be largest market shareholder of the Asia Pacific colorants market in the coming years. The Asia Pacific market is driven by the rising disposable incomes of the population, especially in India and China. The rising demand from Australia and New Zealand is also projected to drive the growth of the Asia Pacific colourants market during the forecast period of 2014 to 2019. ____________________________________________________ Enquiry No: 0209

APFI KNOWLEDGE SERIES:

All You Need To Know About AEC 2015

Pan Pacific Singapore Hotel, 24 April 2015 NEWS4.indd 18

» For more information, visit

www.apfoodonline.com/ knowledgeseries

6/3/15 10:45 am

BUSINESS NEWS

ASIA PACIFIC FOOD INDUSTRY MARCH 2015

______________________ Enquiry No: 0210

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FOOD SAFETY Starts with Workplace Safety

For 100 years, Brady has provided Workplace Safety & Identification Solutions that help make the world a safer and better place to live in. We continue to put our customers’ experience at the centre of our efforts and aim to be better each day in delivering top notch solutions to ensure that you never have to worry about what matters most: delivering food safe for consumption.

Industrial Sign & Label Printers

Lockout/Tagout

Absorbents and Spill Control

Pipe Marking & Signages

Track & Trace Solutions

ToughStripe® Floor Marking Products

3811

ROME, ITALY: Global food prices have continued to plummet, aided by a weak euro and the low cost of crude oil, the United Nations Food and Agriculture Organization (FAO) has reported. The trade-weighted index, which tracks prices of cereals, meat, dairy products, vegetable oils, and sugar on international markets, averaged 182.7 points over the month of January, down 1.9 percent from its December level. Overall, the index had seen declines since April 2014. However, January’s dip was helped by ‘robust inventories’ as well as continued strength in the US dollar and weak global oil prices. In addition, the UN agriculture agency noted that strong supply conditions for wheat and soy oil, as well as abundant global pig meat available for export, had also contributed to the products’ price decline. For its part, the FAO Dairy Price Index remained stable throughout the first month of the year, averaging 173.8 points, as rising butter prices offset a decline in prices for other dairy products such as cheese and skimmed milk powders. Meanwhile, sugar, averaging at 217.7 points, remained ‘virtually unchanged’ from December. Against that backdrop, global cereal stocks in 2015 are forecast at around 623 million tonnes, up eight percent from last year with inventories of wheat and maize expected to grow. Rice inventories, on the other hand, are ‘poised to drop’ by some four million tonnes in 2015 with notable reductions in India, Indonesia and Thailand.

“To celebrate its 50th anniversary, KFC has unveiled edible cups for its coffee”

Enquiry Number

Global Food Prices Continue To Plummet

Did you know?

6/3/15 10:45 am

BUSINESS NEWS

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

Bosch Packaging Technologies Acquires Osgood Industries MICHIGAN, US: Bosch Packaging Technology, a supplier of process and packaging technology, has announced its plan to acquire Osgood Industries, which is based in Florida, US. The move is part of the companyâ&#x20AC;&#x2122;s intention to further strengthen its engagement in the liquid food industry in North America and additional markets. With sales of approximately US$26 million in 2014, Osgood Industries employs about 150 associates. The transaction is pending the successful completion of all necessary antitrust approvals. The purchase price was not disclosed.

Osgood Industries is known in the packaging industry for its expertise in developing, manufacturing and servicing complete rotary and linear machinery lines. They fill preformed containers with products which require clean or ultraclean hygienic standards. This comprises both standardised and customised applications. The types of foods typically packaged in this classification include ice cream, yoghurt, dessert, salad and cheese, among others. The acquisition will involve a comprehensive service portfolio of

Preference For Natural Sweeteners Driving Stevia Growth LONDON, UK: According to Future Market Insights (FMI), the global stevia market is projected to grow at a single-digit CAGR from 2014-2020, accounting for US$565.2 million by 2020. Shifting consumer preference for natural sweeteners is a major factor driving growth of this market. Additionally, stevia extracts are finding increasing application in soft drinks and juices, ice creams, and various other products. This is attributed to its high-intensity natural sweetness properties. Due to these factors, share of the stevia market is expected to account for around 15 percent of the overall sweetener market by 2020. The global stevia market is sub-segmented by its type of liquid, powdered and leaf form. The powdered stevia sub-segment is projected to account for around 65.4 percent share of the total stevia market by 2020, owing to ease of availability and use. The liquid stevia sub-segment, on the other hand, is expected to record a CAGR of around nine percent during the forecast period. All forms of stevia extracts are extensively used in end-use industries such as dairy, bakery, confectionery, beverages, packaged food, snacks and others. Increasing introduction of products with stevia-based sweetener ingredients in various end-use industries is expected to bolster growth of the global stevia market by 2020. Increasing popularity of such products owing to growing modern retail, urbanisation, awareness and health concerns and changing preferences of consumers are major factors driving growth of this market. _____________________________________________________________ Enquiry No: 0212

NEWS4.indd 20

maintenance, spare parts, customer engineering, rebuilds and retrofits of existing equipment. ______________________ Enquiry No: 0211

Carotech Announces New Company Name NEW JERSEY, US: Carotech, a tocotrienol manufacturer, has announced that the company has officially changed its business name and commenced operations as ExcelVite with immediate effect. It marks the completion of its corporate exercise to meet short and long term goals. The company has optimised and consolidated its business model to ensure continuous growth and uninterrupted supply of its flagship products to its customers. The company operates out from the same GMP-certified production facility in Malaysia and is supported by essentially the same management team, with external sales offices located in Australia and the US to provide comprehensive customer services to its global customer base. ______________________ Enquiry No: 0213

6/3/15 10:45 am

BUSINESS NEWS

ASIA PACIFIC FOOD INDUSTRY MARCH 2015

Prometheus & SMEC Announce Global Agreement NORTH CAROLINA, US: P ro m e t h e u s a n d S M E C h a v e announced a global partnership which combines the former’s enterprise asset management software with the latter’s asset management consulting group. The partnership will initially focus on the food, beverage and grocery industry and other asset intensive verticals. Australia’s AU$114 billion (US$89.56 billion) food, beverage and grocery industry is a vital contributor to the wealth and health of the nation, providing both jobs and economic opportunities. In 2013-14, the food, beverage and grocery industry directly employed almost 300,000 people, accounting for one out of every three Australian manufacturing jobs. This diverse and sustainable industr y is made up of over 27,400 businesses and accounts for over $55 billion of Australia’s international trade. With expenditure on research and development topping AU$541 million a year, food and grocery is one of Australia’s growth sectors of the future, adding to Australia’s strength in agricultural production and delivering exports into growth markets of Asia and beyond. As such, it is no surprise that in 201314, Australia’s food and beverage exports increased by 13.5 percent. However, the largest components of operating costs for the food and beverage industry are warehousing, logistics and distribution, constituting between 10.4 percent and 8.2 percent of net sales annually.

Did you know? “According to the National Farmers’ Union, more than half of the UK’s food will have to be imported from overseas within one generation.” Milch, APFI, 124 x 200 mm, CC-en24-AZ117 09/14

Just as fresh as your product: filling technology from krones. www.krones.com

______________________ Enquiry No: 0214

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PRODUCT HIGHLIGHTS

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

Wolf: Bagger

The EP250 bagger from Wolf Verpackungsmachinen is developed to facilitate higher output speeds and greater flexibility. The continuous motion bagger can reach speeds of up to 120 B/min. Designed to ensure lower investment for customers, the company has listened to feedback to ensure that the machine is as user-friendly as possible. The bagger has made its debut in China in March and would be made available in other countries subsequently.

Frutarom: All-Natural Extracts

Frutarom has launched the EFLA sense, a line of all-natural liquid extracts with sensory properties to boost flavour and health benefits in products such as beverages, confectionery, dairy, bakery and liquid dietary supplements. The extract line contains natural botanic extracts from flowers (including chamomile, elderflower and orange blossom); leaves (peppermint, lemon balm and sage); fruits and seeds (fennel and rose hips) and several herbal blends. These essences are obtained from traditional plants and meet the increasing consumer demand for health and wellness products and clean label. The line is produced in Switzerland through a gentle process that preserves the delicate flavours and aromatic properties of the ingredients.

_______________________________________ Enquiry No: P221

_______________________________________ Enquiry No: P222

Cambridge Engineered Solutions: Conveyor Belt

Shimadzu: Unified Chromatography System

Cambridge Engineered Solutions has rolled out SLATrak, a new Teflon-slatted, non-stick surface conveyor belt designed for the par-fried process of lightly breaded food products such as chicken fingers and nuggets, panko and tempura-battered seafood, onion rings and other vegetables. The conveyor belt is used to carry food products a few feet inside the fryer to allow the breading to fry and crust without sticking to the belt. It then transfers the product to a standard metal belt inside the same fryer to finish the frying process. The conveyor belt is available in industry standard widths and is suited for temperatures up to 500 deg F (260 deg C), with all materials used being FDA-approved.

The fully automated supercritical fluidic chromatography-based Nexera Unified Chromatography (UC) system by Shimadzu can sequentially analyse up to 48 samples utilising automatic extraction and chromatographic separation combined with highsensitivity detection of targets by mass spectrometry. The system is designed to fulfil the measurement requirements of a wide range of applications including monitoring pesticides in food products. The system eliminates the need for complicated sample pre-treatment and enables highly reliable and stable analysis of delicate samples that are prone to oxidation or dissociation if exposed to air. Notably, in the analysis of pesticides in food products, the system takes only five minutes for a complete analysis sample pre-treatment when compared with at least 35 minutes for conventional systems.

_______________________________________ Enquiry No: P223

_______________________________________ Enquiry No: P224

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ASIA PACIFIC FOOD INDUSTRY MARCH 2015

PRODUCT HIGHLIGHTS 23

Paul Leibinger: Continuous Inkjet Printer Paul Leibinger has introduced the JET3up continuous inkjet printer which is equipped with an automated Sealtronic nozzle seal that prevents the ink in the printhead from drying out even during long downtimes. The printer features technologies that ensure print quality as well as economical production. The pro version of the printer is equipped with a stable stainless steel housing of protection class IP65 to facilitate production in rough and wet environment. The printer can make any conceivable surfaces and materials with fast-drying inks without making contact and during ongoing production. _______________________________________ Enquiry No: P225

GEA: Demountable Rotary Magnet GEA has launched a demountable rotary magnet for use in powdered food and dairy applications such as milk powders, infant formula, nutritional powders, sugar, cocoa powder, beverage powders and food ingredients. The magnets are designed to remove fragments of ferrous metals and work hardened stainless steel contaminants that would otherwise contaminate the product. The 12-bar design, featuring many improvements over the previous 8-bar version, has been developed in close cooperation with a manufacturer of powdered infant formula and in association with the Auckland University of Technology. It uses the rare earth Neodymium magnets N52 to provide a direct product strength in excess of 10,500 gauss. This removes ferrous material more effectively without any increase in cost. The units can be demounted by hand and are much easier to clean than previous models. ___________________________________ Enquiry No: P226

Salt Of The Earth: MSG-Free Salt Ingredient

Tomra: Automated Sorter

Salt of the Earth has launched the Umami-Essence Sea Salt ingredient especially designed for a comprehensive range of sauces. The use of the salt in new or existing product formulations can help decrease sodium levels—up to 50 percent—while boosting flavour. The all-natural salt is low in sodium and contains no MSG or artificial ingredient. It features a proprietary blend of sea salts and a natural vegetable extract that provides distinctive umami flavour. The salt can be incorporated into sauces, pizza toppings, salad dressings, Bolognese-style meat sauces, lasagne and other products. Umami-Essence Sea Salt is highly soluble, vegan and holds kosher certification.

Tomra Sorting Food has unveiled its Sentinel II sorter for the tomato and peach processing industry. The machine is an efficient, cost-effective sorting solution that has been engineered with seasonal processors in mind. It offers a high degree of flexibility and can be configured to meet different specific requirements along the production line. The machine offers low, medium or high speed modes depending upon the specific application sort requirements. The system’s high resolution sensors and simple user interface allow the customer to set the sorter to reject a broad range of defects such as green, sunburn, mould, anthracnose rot or worm damage while also removing foreign materials such as cotton stalks, corn cobs, plastic, glass, metal, wood bone and animal matter.

___________________________________ Enquiry No: P227

_____________________________________ Enquiry No: P228

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PRODUCT HIGHLIGHTS

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

Linde Gases: Leak Detection System Linde Gases has announced the launch of MAPAX Leak Detection (LD), a technology to detect defects in modified atmosphere packaging (MAP). The technology is a high-speed, non-destructive, in-line unit which uses food-grade hydrogen gas in place of visual or manual water-based testing to identify faulty MAP packaging. The patented technology can be used on MAP lines for a wide range of packaged foodstuffs, from meat, poultry and fish to pre-packaged salads, nuts, dried fruits and coffee. It works by adding food grade hydrogen to the MAPAX gas mix at the packaging sealing stage. A gas mixture incorporating up to four percent hydrogen can be used with no impact on the foodstuff being packaged. When hydrogen is detected by the LD sensor, a visual alarm is activated, allowing the defective items to be removed from the production line with minimal interruption to the packaging process.

Multivac: Thermoforming Machine

The R105 MultiFresh is the latest addition to the Multivac thermoforming packaging machine portfolio and is a compact model designed for the production of vacuum skin packs in small and medium scale batches. The machine has been equipped with an upper web chain guide and heating at the top for this purpose. The compact machine can process lower webs up to 350 µm thick. The entry-level model features the same technical equipment as the large machine models, making it possible for small-scale manufacturers to start using vacuum skin packs. The integrated upper web chain guide guarantees the upper web is kept stable when being guided to the sealing station. The film is heated up again there before being placed around the packaged goods and sealed to the lower web over its surface.

______________________________________ Enquiry No: P229

______________________________________ Enquiry No: P230

Packo Pumps: Pump

Gernep: Labelling Machine

Packo Pumps’ MCP3/250-315 is an extension of the company’s MCP3 pumps which comply with MEI guideline EU No. 547/2012. The efficiency of the pump can lead to lower energy bills. Other typical features include low noise levels, minimised built-in dimensions and easy maintenance. The pump has a robust design in cast stainless steel and delivers a flow up to 1,250 cubic metres per hour at a head of approximately 18 metres. The pump is used in the beverage industry for wine and fruit juice filtration. In breweries, the pump is ideal for mash and wort transfer, as well as for beer filtration. The pump can be supplied up to 132 kW with six and eight pole motors. Shortly the pump will be launched with a motor power up to 250 kW.

The Gernep Soluta SK is specially designed for precision selfadhesive labelling of diverse bottles and containers. The modular carousel design with up to six self-adhesive label dispensers provides a platform for customised and flexible configurations. The phased transfer of the self-adhesive labels is synchronised to the frequency controlled machine speed which ensures accurate label transfer to the container at any speed. Integration of a programmable logic control (PLC) ensures not only reliable operation but also provides the possibility of adding a whole range of facilities. A separate dispenser plate with a second label roll is available as an option for quick roll changes. Where space is at a premium, double reel holders can be mounted vertically as an independent unit provided with loop buffers.

______________________________________ Enquiry No: P231 ______________________________________ Enquiry No: P131

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______________________________________ Enquiry No: P232

5/3/15 4:24 pm

Our pomegranate concentrate. Your imagination.

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It’s finally here – 100% pomegranate juice concentrate from the company that grows, harvests and processes our own Wonderful variety pomegranates in our own California orchards. P∂M’s proprietary processes ensure consistent quality, complete traceability and the high standards of color and taste you expect from the pomegranate experts. So go with the industry leader. And use P∂M Wonderful’s 100% Pomegranate

IFC PWI_POM Wonderful_3471.indd 80

Enquiry Number

FOR MORE INFORMATION: industrialsales @ pomwonderful.com or 310.966.5800.

3471

Juice Concentrate in all kinds of products including sauces, marinades, beverages, yogurts and desserts.

28/8/14 8:50 am

PACKAGING & PROCESSING

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

SANITISING FOOD GRADE CONVEYORS CONVEYOR SYSTEMS ARE AN INTEGRAL PART OF ANY FOOD MANUFACTURING PLANT, BUT THEY ARE SUSCEPTIBLE TO CONTAMINATION WITHOUT PROPER CARE. MODERN DESIGN FEATURES CAN HELP ENSURE SAFETY AND REDUCE RISKS FOR BUSINESSES. BY PETER WOOD, PROCESS SYSTEMS PRODUCT MANAGER, KEY TECHNOLOGY FOOD processors around the world are looking to improve equipment hygiene. Some are motivated by new government guidelines or the desire to reduce exposure to product liability claims. Others want to improve manufacturing ef ficiencies by speeding sanitation routines or maximising food safety, knowing the most effective way to reduce the risk of product contamination is through prevention. For these reasons, conveyors are being scrutinised in their ability to contribute to or undermine sanitation initiatives. Many sanitar y features can be applied to multiple conveyors types. For example, stainless steel is the preferred material for foodgrade conveyors more than coated mild steel because stainless resists bacterial growth and better withstands caustic washdowns. 316 stainless steel provides better corrosion resistance than 304, which is important for acidic foods or processes. The surface finish of the stainless steel also impacts hygiene with a smoother surface resisting bacterial attachment and the accumulation of bacterial cells. Compared to the industry-standard 2B mill finish,

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a ro tar y p ol i s h of f er s a more consistently smooth finish to improve sanitation to maximise food safety. At a minimum, stainless steel and a rotary polish should be considered within a conveyor’s product contact zones. Extending the use of stainless to areas not in direct contact with food, such as the conveyor’s support structure, improves hygiene since bacteria can migrate from one area to another. Having ground and polished stainless steel within the ‘drip, drain, or draw zones’ where it is possible

for a pathogen to drip or drain or be drawn into the product area further enhances food safety. All product contact zones should feature 100 percent continuous welds, rather than skip welds, to eliminate laminations that can harbour bacteria. TIG welds are better than MIG welds and ground and polished welds within the product contact zone are currently the ideal. Outside the product contact zone, replacing bolted arm brackets with welded arm brackets or eliminating

6/3/15 10:45 am

PACKAGING & PROCESSING

ASIA PACIFIC FOOD INDUSTRY MARCH 2015

processes while conveying, the opportunity to improve equipment hygiene with this shift to oil-free drives is substantial. To improve worker safety and ease sanitation, many customers are pursuing ‘dry floor initiatives’. They are looking for conveyors with leak-free screens and screen clamps.

Guards against all types of intrusion KHS preform sterilization in the InnoPET Bloﬁll: Optimum low-germ conditions from the preform to the ﬁlling valve ■

Minimum use of H2O2 media

■

Positioned in the heating process for excellent efﬁciency

■

Preform and bottle conveying protected up to the ﬁlling valve

Learn more at www.khs.com or scan the QR code.

khsIM2024_Sensi_Getraenke_Burg_111X183_ICv2_2jf_englisch.indd 1 3pp Conveyor (Key) 4.indd 27

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POSSIBLE CONTAMINATIONS At a minimum, stickers should be metalised so any pieces that find their way into the product can be detected and removed by end-of-line metal detectors. Even plaques are prone to problems because the lamination can trap bacteria if a weld fails. Ideal solutions include attaching plaques with stand-offs or spacers, or etching the information directly onto the stainless steel equipment. Another potential source of contamination is oil from drives, especially when equipment is mounted over other equipment. Currently, conveyor drives can be designed for use with food-grade oil but the move to oil-free drives, where possible, is underway. Inherent in their nature, electromagnetic vibratory conveyors are always oil-free. Now, popular natural frequency vibrator y

conveyors, which have mechanical drives, are being developed with oil-free electric vibrating motors to eliminate the gear box, drive belts and motor oil from the process. Since these natural frequency vibratory conveyors can be built to grade, de-water, de-oil, align, feed, and accomplish many other

Enquiry Number

skip welded exterior surfaces in favour of continuously welded surfaces, achieves additional protection. The most hygienic conveyors feature no enclosed hollow bodies that could harbour bacteria and leakage. Hollow bodies such as tubes, which have traditionally been used on conveyor frames, are increasingly being replaced by opensection supports made of plate or formed sheet metal. Conveyors designed with free draining surfaces, with even the conveyor bed at enough of a slope to drain, minimise the build-up of moisture during production and eases washdown. Microorganisms are not the only source of potential product contamination that food processors must control in their efforts to improve food safety. Equipment suppliers are increasingly eliminating the stickers traditionally used to identify the machine or machine specifications, because stickers can come off after repeated exposure to washdowns.

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PACKAGING & PROCESSING

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

Quality-minded conveyor suppliers are continuously improving their designs to minimise water leakage and product spillage, especially at equipment transitions where product spillage is a common problem. Food processors require different degrees of sanitation, with meat and dairy processors often relying on the most stringent high pressure washdowns that use caustic cleaning agents that minimise the risk of bacterial growth. To withstand high pressure washdowns, the equipment should feature NEMA 4X- or IP 66-rated electrical enclosures and components while wipe-down sanitation routines demand less water ingress protection. Clean-in-place (CIP) systems are common on many food grade conveyors, but they are also being scrutinised as a potential source of bacterial contamination. CIP systems introduce additional pipes and additional pipe threads where bacteria can grow. F o r t h i s re a s o n , i t i s n o w understood that effective manual sanitation routines are often better than CIP systems and that CIP systems should be limited to areas that cannot be accessed by the sanitation crew, such as conveyors high in the air. BELT & BUCKET CONVEYORS In addition to the design and construction features mentioned

The most hygienic and sanitary type of belt conveyor features a positive drive urethane (PDU) belt.

above, many of which can be applied to belt conveyors as well as vibratory and horizontal motion conveyors, a variety of other considerations apply only to belt and bucket conveyors. In general, fabric belt conveyors with exposed belt edges present the least sanitary environment because the belt can fray and contaminate the product. Fabric belts with encapsulated edges are preferred and may be a more sanitary solution than modular plastic belt conveyors, which feature crevices that can trap bacteria and are time-consuming to clean. The most hygienic and sanitary type of belt conveyor features a positive drive urethane (PDU) belt. This seamless homogeneous thermoplastic belt eliminates the frayed edges of a fabric belt and the many crevices of a modular plastic belt. Unlike traditional flat belt conveyors, PDU systems drive their belts on sprockets like a modular plastic belt conveyor and are not under tension, which allows for easy lifting of the conveyor belt for relatively fast and thorough cleaning. For applications that require elevating product, modular plastic belts and PDU conveyors can both be designed with flights. Compared to traditional bucket conveyors, which run on two chains that inherently challenge sanitation, processors can achieve the same rise in elevation with a PDU conveyor and improve sanitation. However, modular plastic belt conveyors and PDU conveyors are unable to change directions, moving in a C-shaped path like bucket elevators can, so processors that require this motion will either need a bucket elevator or alter their line configuration to accommodate that limitation. VIBRATORY & HORIZONTAL MOTION CONVEYORS Vibratory conveyors are widely recognsed as being inherently more sanitary than belt conveyors, all

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else equal, because they minimise product contact with moving parts and present a flat-bed surface that is easy to clean. Horizontal motion conveyors further improve sanitation because product slides along the bed, producing a self-scrubbing action that eliminates the build-up of seasonings that can break off. The most sanitary vibratory and horizontal motion conveyors will feature as many of the design and construction attributes mentioned above as possible. Not ever y conveyor type can accommodate every feature. For example, opens e c t i o n s u p p o r t s a n d o i l - f re e drives can be used on vibratory conveyors but are not possible on horizontal motion conveyors due to engineering constraints. Increasingly, food processors around the world are searching for more hygienic and sanitar y equipment. In addition to it being a good business practice to produce foods that are safe to consume, many also understand that improving hygiene can improve profitability. Reducing the time it takes to clean can reduce sanitation labour costs and increase production line uptime while resulting in less water use, less chemical use, and less waste water that needs treatment. Most conveyor suppliers offer a variety of equipment that have been designed to satisfy various levels of standards from basic to enhanced. Recognising that different suppliers include different features in their various modelsâ&#x20AC;&#x201D;that not all basic features are the same and not all enhanced features are the sameâ&#x20AC;&#x201D; it behoves a food processor to understand what makes a conveyor more or less sanitary so that they can better compare options and make the ideal selection given their applications and objectives. For more information, ENTER No: 0240

9/3/15 2:45 pm

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INGREDIENTS & ADDITIVES

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

CAPITALISING THE CLINICAL NUTRITION OPPORTUNITY ASIA PACIFIC IS THE LARGEST CLINICAL NUTRITION MARKET IN THE WORLD AND IS SET TO SUSTAIN ITS TREMENDOUS GROWTH. WITH MANY FACTORS DRIVING DEMAND IN THE REGION, CLINICAL NUTRITION IS AN AREA THAT IS WORTH LOOKING INTO. BY ALINA F SLOTNIK, GLOBAL MD, CUSTOMIZED SOLUTIONS, GLANBIA NUTRITIONALS ACCORDING to a new market report published by Persistence Market Research in January 2015, the global Clinical Nutrition market was valued at US$36.9 billion in 2013 and is expected to grow at a CAGR of 4.1 percent from 2014 to 2020 to reach an estimated value of US$48.6 billion in 2020. Unlike many large and rapidly growing traditional food and beverage markets, however, clinical nutrition is not a market dominated or led by US or European products. In fact, high birth rates (compared with the US and Europe) paired with an increasing geriatric population is aggressively driving the demand in the Asia Pacific clinical nutrition market, making it the largest and fastest growing clinical nutrition region in the world. However, capitalising on this large market opportunity is no easy task. With particular nutritional demands, strict quality requirements and extremely health sensitive consumers, the clinical nutrition market requires expert nutritional knowledge and manufacturing capabilities of a global calibre for success. INFANT, ENTERAL & PARENTERAL Nutrition provides human beings with the required amount of proteins, carbohydrates, fats, water, vitamins, and minerals essential for proper cellular functioning and physiological activities and to maintain energy balance in the body. Clinical nutrition is critical for patients who are unable to consume normal food. By providing the required amounts of essential nutrients such as proteins, vitamins and minerals to patients, clinical nutrition products aid in improving metabolism, digestion, absorption, and discharge functions that are critical for normal functioning of the body. Such products can be primarily segmented into three main categories including: infant, enteral and parenteral nutrition. Both enteral and parenteral nutrition serve patients with digestion/ingestion inability. Enteral feeding delivers nutrition through a tube into the gastrointestinal tract while parenteral feeding (also known as intravenous feeding) is injected directly into the bloodstream.

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Available in many forms including liquids, powders, tablets, injections, and foods, clinical nutrition products are most commonly formulated in liquid and powder forms. GROWING DEMANDS Several important trends drive the continued increase in demand for clinical nutrition products. These include: • Increasing birth rates and rising number of premature births • Ageing populations • Increasing incidence of chronic and lifestyle-related diseases • Significant incidence of malnutrition All of these trends contribute to increased demand for clinical nutrition products, making these products vital

6/3/15 11:04 am

INGREDIENTS & ADDITIVES

ASIA PACIFIC FOOD INDUSTRY MARCH 2015

European Parliament

Other reports project future growth to continue (and even accelerate) its rapid, current pace, projecting annual growth in the 8-11 percent range.

for babies and children with special sensitivities, patients in intensive care units, patients suffering from chronic illnesses, patients recuperating from trauma and surgeries, and for patients with a high degree of malnourishment. While all of these factors are present in the populations of Asia Pacific countries, high birth rates (and associated increases in premature births) coupled with aging populations across the region continue to be the most important drivers of the clinical nutrition market in the Asia Pacific region. According to 2012 World Bank Group statistics, high birth rates across Asia Pacific including in India (around 21 per thousand people) and China (12 per thousand people) are propelling strong growth in demand for specialty nutrition products for babies and children. A Global Industry Analysts Clinical Nutrition Products report published in January 2015 shows that of the three clinical nutrition segments, infant nutrition is the largest and fastest growing with a CAGR of 6.8 percent. With the highest total number of people over 65 years of age, including the most aged country (Japan) and the most rapidly ageing country in the world (South Korea), Asiaâ&#x20AC;&#x2122;s ageing population continues to increase demand for special nutrition products to address health issues associated with later life. Common nutritional challenges in the ageing population include energy restriction, malnutrition, sarcopenia, obesity and other conditions. In several studies, clinical nutrition was shown to be the most efficient way to treat malnutrition and nutritional symptoms of these other health conditions, allowing associated costs to be avoided. As a result, investments in clinical nutrition products have increased significantly among manufacturers as well as government agencies who are seeking to develop products with improved nutritional attributes. These key dynamics explain why Asia Pacific is currently the largest clinical nutrition market in the world. According to a new market report, Global Market Study on Clinical Nutrition, published by Persistence Market Research in January 2015, the Asia Pacific clinical nutrition market (largest market in 2013) increased by 4.8 percent CAGR during 2010-2013 to reach US$15.3 billion in 2013.

2pp Glanbia2.indd 31

NUTRITION PRODUCT DEVELOPMENT While this tremendous market opportunity is fuelling great interest in clinical nutrition product development among both large, established food companies as well as smaller regional and local players, success in this market requires particular expertise and capabilities. Stringent regulatory requirements, the need for adequate clinical evidence in support of used ingredients, and the need to comply with safety and quality standards demand that companies participating in the clinical nutrition arena either have sophisticated internal expertise and manufacturing capabilities or partner with a supplier that has the capabilities to fulfil the strict requirements of this market. Whether it is to expand internal capabilities allowing more rapid product development or to access expertise and production capacity not available within the organisation, product development partners with the ability to provide complete nutrient solutions in the clinical nutrition area can deliver significant value to both established manufacturers and new market entrants. However, most ingredient manufacturer, premix suppliers and distributors that operate successfully in conventional food and beverage markets do not have the appropriate expertise, processes and resources to properly support the strict requirements and high standards of clinical nutrition products. For successful projects, companies may wish to engage a complete nutrient solutions partner who has the experience (in development and regulatory) and capability to provide global and local support to fulfil the particular needs of clinical nutrition product development. Solutions partner should offer not only secure ingredients sourcing and custom nutrient blending, but also provide turnkey nutritional solutions that include all facets of development, from formulations support to flexible packaging options. Similarly, beyond the convenience of working with a single partner, execution of all activities under one roof allows greater process traceability and quality. In an environment with strict attention to safety, accuracy, hygiene and quality, there should be quality management systems such as barcode-based quality assurance steps throughout procurement and production. With the right partner, many companies can now take advantage of the opportunities of the dynamic clinical nutrition market with confidence. For more information, ENTER No: 0250

6/3/15 11:04 am

INGREDIENTS & ADDITIVES

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

IDENTICAL TO NATURE IN RECENT YEARS, THE FOOD INDUSTRY IS INCREASINGLY FOCUSING ON INNOVATIVE SOLUTIONS TO ENHANCE ITS PRODUCTS WITH DESIRED PROPERTIES THAT HAVE ADDITIONAL BENEFITS, AND PLANT SECONDARY METABOLITES SUCH AS HYDROXYTYROSOL ARE MUCH SOUGHT AFTER AS AN ACTIVE AGENT. THE ONLY CHALLENGE LIES IN SIMPLIFYING THE PRODUCTION PROCESS. SIMONE TRAUTZ, BUSINESS DEVELOPMENT MANAGER AT WACKER BIOSOLUTIONS IN many regions of the world, the food industry is currently following similar trends: rising affluence, changing demographics and growing health awareness among consumers are increasing the demand for natural products and ingredients. At the same time, consumers are more frequently opting for dietary supplements or food products with additional benefits, so-called functional foods, to enhance their wellbeing. PLANT SECONDARY METABOLITES Against this background, plant secondary metabolites have become a focus of the food industry—as it is

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fairly well known that eating an abundance of fruits and vegetables keeps the mind and body in good shape. In this course, a large number of studies have put the eating habits of the so-called ‘Mediterranean diet’ under the microscope and investigated physical health within these populations. What they have concluded is that the Mediterranean diet has a positive effect on human bodies due to the compounds these foods contain. Nutrition experts have been paying particularly close attention to the plant secondary metabolites in bell peppers, olives and the like, owing to the health benefits of these chemicals: they are supposed to protect against cardiovascular diseases, diabetes and Alzheimer’s,

6/3/15 10:46 am

ASIA PACIFIC FOOD INDUSTRY MARCH 2015

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Hydroxytyrosol protects human cells and blood lipids from oxidative stress.

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3830

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HIGHLY EFFECTIVE ANTIOXIDANT Antioxidants are present in many plants, but not all of these exhibit the same levels of activity—this is why hydroxytyrosol is considered so important. Olive oil polyphenols, which include hydroxytyrosol, are said to contribute to the protection of blood lipids from oxidative stress—a factor often linked to human ageing and many diseases, including cancers or cardiovascular diseases. Hydroxytyrosol is an amphiphilic molecule, which means it is both water and fat soluble. It is quite stable regarding heat and neutral or alkaline pH values, has a slightly bitter taste and tends to brown. Its unusually powerful antioxidant properties are what make hydroxytyrosol such an interesting plant secondary metabolite for use in foods and cosmetics. The compound is exceptionally good at capturing free radicals, which can damage our cells. At 45,000 micromol trolox equivalents per gram, the oxygen radical absorbance capacity of hydroxytyrosol is nearly ten times that of green tea and over twice as high as that of coenzyme Q10. That means that hydroxytyrosol protects human cells and blood lipids from oxidative stress—a key factor influencing the development of cardiovascular diseases.

FUNCTIONAL FOODS

Enquiry Number

strengthen immune system response, and inhibit inflammatory processes, to name just a few. Plant secondary metabolites are polyphenols, to be precise. Phenols and polyphenols are aromatic compounds present as bioactive substances in plants, where they produce colour or flavour, or act as an antioxidant. Their considerable antioxidant power makes them interesting for the food industry: as free-radical scavengers, antioxidants prevent oxidative stress, which is associated with a number of diseases and aging. That is why antioxidants are among the most popular dietary supplements. TechNavio, for instance, has forecast the global antioxidants market to grow at a CAGR of 4.71 percent (2013-2018).

6/3/15 10:46 am

INGREDIENTS & ADDITIVES

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

Also attributed to this active substance is the ability to strengthen immune system response, lower blood pressure, inhibit inflammatory processes, and exert a positive effect on the bones and joints—interesting properties that could be put to use in nutritional supplements or applications in sports nutrition, such as power bars or functional beverages. PRODUCTION DRAWBACKS Although there are already a few suppliers offering hydroxytyrosol as an ingredient in dietary supplements, one drawback is the way it is produced. In nature, hydroxytyrosol is found in olives and olive leaves, and the conventional way to obtain the active agent is via extraction. But its extraction is complex and both labour- and cost-intensive. The traditional process involves many steps such as washing, smashing, pressing, centrifuging and drying of the olives or olive leaves. Plus, it produces a varying content of active ingredient in the end product, as the olive extract is a blend of a wide range of polyphenols rather than pure hydroxytyrosol—often, the content of active ingredient is less than 20 percent. A further disadvantage for food manufacturers is that the extract received comes as a brownish, mouldysmelling powder. Moreover, it is possible that the extract contains unknown substances and impurities. And finally, the supply is quite unreliable, as olive harvests are subject to weather and climate conditions and seasonal fluctuations, which affects more than just the composition of the product ingredients—it also has an impact on the price of these valuable extracts. For all these reasons, the use of hydroxytyrosol in food solutions was, until recently, limited. However, as the active agent offers many promising benefits, demand for hydroxytyrosol is on the rise, and the industry is eager to find a method that could supply the market with this coveted active agent in large enough amounts and at high levels of purity.

3pp Wacker4.indd 34

THE SOLUTION—FULLY SYNTHESISED PRODUCT Research was started to fully synthesise this compound and a novel, simplified production process involving fewer steps was developed. The new product features a markedly higher purity with a defined, high and consistent amount of active ingredient. The controlled and patented production process not only offers quality, as the product complies with HACCP regulations. It also ensures that the nature-identical hydroxytyrosol does not contain any unwanted byproducts, impurities or contaminants. As a result, the product is free of allergens and pesticides and is microbiologically safe. The extract comes as white, odourless powder. With the patented, multistage synthesis method, a cost-effective process for manufacturing a highly pure form of the active is now available. The nature-identical hydroxytyrosol meets a precise set of specifications, and the quality is consistent and exceptionally high. The patented synthesise route further ensures supply security independent of weather or climate. Another advantage is that the route is based on commercially available raw materials and practical process conditions, ensuring that the compound can be produced on a large scale. APPLICATION POSSIBILITIES As mentioned before, a range of scientific examinations on pure hydroxytyrosol have been published to prove the positive effects of the substance on human health, for instance, the protection of blood lipids and high antioxidant capacity. Further studies could show that synthetic hydroxytyrosol, too, protects against LDL oxidation at low concentrations (based on in vitro assay with human plasma). Combined with the advantages of the novel natureidentical antioxidant, that opens up the possibility of many applications for health-benefitting foods and food ingredients. The product is suitable for use in a broad range of functional foods and dietary supplements. The substance is available as a white, odourless, water-soluble powder, as well as in liquid form. As it offers universal solubility, it can be used in many different formulations, from oil- and water-based formulations to dry applications, such as energy bars and functional beverages. Furthermore, the active ingredient is highly concentrated, making it also suitable, for instance, as a nutritional supplement in more compact forms, such as tablets and capsules. In addition, cost pressures are high in the food industry, and nature-identical hydroxytyrosol means a cost-effective, high quality alternative for manufacturers of functional foods and dietary supplements. For more information, ENTER No: 0251

6/3/15 10:46 am

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3/3/15 9:03 am

INGREDIENTS & ADDITIVES

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

MEETING FUNCTIONAL DEMANDS

THROUGH BIG DATA

THERE MAY NOT HAVE BEEN A BETTER TIME FOR FOOD COMPANIES TO INVEST IN THE DEVELOPMENT OF PRODUCTS THAT ARE ENHANCED WITH FUNCTIONAL INGREDIENTS AND THE APPLICATION OF BIG DATA TECHNOLOGY MAY BE THE BIG LEAP FORWARD. BY VINCENT MONAHAN, BUSINESS DEVELOPMENT, NURITAS HEALTHCARE for many is less about the care of health and more about the treatment of disease when it comes knocking at your door. Chronic non-communicable diseases (NCDs) are developed over many years and these diseases emphasis that a short-sighted attitude towards personal health can be hazardous in the long run, often placing a reliance on pharmaceuticals. Current scientific understanding now recognises functional foods for their ability to prevent the onset of chronic diseases. In parallel, the publicâ&#x20AC;&#x2122;s perception of health management is shifting as there has been a realisation that a long term commitment to health is the way forward.

4pp Nuritas 2.indd 36

What is driving the functional foods market and how can it reach its full potential? PROACTIVE OVER REACTIVE APPROACH The discovery, development and marketing of functional foods are one of the fastest growing segments of the food industry. There are multiple drivers behind the functional food and ingredients growth trends. On one hand, we have the consumer driven side. Since the advent of the internet, there has been a big shift in consumer awareness towards food, nutrition and health, with previously specialised nutritional knowledge now readily available.

5/3/15 4:14 pm

INGREDIENTS & ADDITIVES

ASIA PACIFIC FOOD INDUSTRY MARCH 2015

Linked to this is the increased interest in personal health, which is driving the demand for functional foods, especially amongst millennials. Foods are now perceived, and proven, to have the ability to prevent the onset and risk of disease, allowing a proactive rather than a reactive approach to disease. Consumers today want to know about the individual ingredients in functional products. Does the ingredient work? What is the proof? Is it natural, sustainable and does the therapeutic value of the final product equate to the price point? On the other side, we have a change in the pressure placed upon food companies and a drive for companies to compete to meet these consumer demands. Previously, the driving pressure for product development was placed on taste with a lesser regard for the overall health of the product. This has resulted in the type of palatable convenience product, high in sugars, salt, and taste enhancers, that typically line the supermarket shelves. These are the type of products that, when consumed by today’s health conscious consumer, lead to that type

of post-snacking guilt that most can relate to. Many of the largest food companies are continuously finding ways to disassociate themselves from this type of product and increase their association with those that benefit health. For example, in 2012, Nestlé completed the acquisition of Pfizer Nutritional for US$11.8 billion, which greatly enhanced their scientific capabilities. They are investing “US$500 million over the next decade to develop health and wellness products,” says former CEO and present chairman of the board of Nestlé SA, Peter BrabeckLetmathe. Functional ingredients are the cornerstone of the functional food movement, analogous to the computer industry where the chip inside provides the real power to the final product. There is a relative bottleneck, as the demand for scientifically proven functional ingredients has not been met with a reliable supply. Internal processes within large companies were originally not equipped for this type of innovation and we have seen horizontal transfers of scientific knowledge in the ingredients space through acquisitions.

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INGREDIENTS & ADDITIVES

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

However, the discovery of novel food-derived active ingredients is still alien to a large portion of the industry. Many active ingredients have been developed and are used by millions today. For example, the probiotics, prebiotics and more recently synbiotics, that are used to promote gut health have become staple ingredients of the functional food area. The probiotic bacteria lactobacillus casei, as well as indigestible carbohydrate prebiotics such as inulin (commonly derived from chicory), have been popular. Additionally, bioactive lipids such as omega 3s and secondary metabolites, including flavanols derived from cocoa, are now well known in most households. In recent years, there has been an unprecedented demand, from both consumers and industr y, for inexpensive and natural bioactive peptides. The therapeutic properties of bioactive peptides have long been recognised by the pharmaceutical industry where they are often important sources of drug lead compounds. These signalling molecules play important roles in human physiology and pathogenesis, and possess a wide range of therapeutic properties effective in preventing disease. BIOACTIVE PEPTIDES FROM NATURAL PROTEINS A large benefit of bioactive peptides is that they are derived from all natural proteins. For example, anti-hypertensive peptides have been found in broccoli, egg, milk, meat, wheat, soy, and fish. Often, they are inactive within the sequence of parent proteins but when they are released by specific enzymes, they exert their therapeutic effects. Perhaps our perception of natural foods components as a mean of preventing disease can be summed up in a 1902 quote from Thomas Edison that aptly reads: “There were never so many able, active minds at work on the problems of diseases as now, and all their discoveries are tending to the simple truth–that you can’t improve on nature”. Discovering novel, scientifically proven, ingredients in a way that is commercially viable for the producer and the consumer is a big challenge facing the industry. Step one for developing any functional ingredient is identifying the relationship between the functional component of a food and the health benefit. Step two is demonstrating the efficacy and determining the intake level necessary to achieve the desired effect. For both steps one and two, laboratory experimentation is the tried and tested foundation for ingredient discovery and assessing the efficacy of potential ingredients. However, used in isolation, it is very time and capital intensive. Enhancing the current discovery process with the use of enabling technology before experimentation will greatly accelerate ingredient development and market release. Reducing time and effort in this area is crucial in order to

4pp Nuritas 2.indd 38

create new commercially viable products with clear and important health benefits. The food industry, when compared to others such as the pharmaceutical industry, has been relatively slower in adopting enabling technologies. There was of course, a different kind of pressure on the pharmaceutical industry to adopt these technologies. The impetus for functional ingredient discovery in the food industry was, for the most part, an adaptation to consumer driven market trends, as well as a coinciding increase in the understanding of the relationship between food and health. To unlock the value of functional foods, the industry realises that there is a need to adapt to new technology that is now on our doorstep. REVOLUTIONISATION THROUGH COMPUTATIONAL TECHNOLOGIES Bioinformatics is an interdisciplinary field that develops methods and software tools for the understanding of biological data. The exponential growth of computational power, storage capacity and genome sequencing has led to the advent of bioinformatics, which allows the integration of big data analysis in food. It is only recently being used in the food industry, quickly data mining food for bioactive peptides in food, to predict functionalities pre-experimentation. Its application in this sector can revolutionize our understanding of food and accelerate the ingredient discover y process. Companies that supplement experimental research with the predictive capabilities of bioinformatics will gain a strong competitive advantage. According to Dr Nora Khaldi who has devoted years of research to big data analysis in the food industry and pioneered the introduction of data analytics in food at the molecular level, “the billions of interactions that food has within our bodies on a daily basis are totally unknown and we have not been equipped with the right technology to understand these interactions until now.” She added that the use of computational technologies has improved how we view food, and the integration of big data allows us to rapidly discover fascinating bioactive functional food ingredients from a wide range of foods. In addition to the research and development bottleneck that limits food companies, the regulatory framework surrounding proven active ingredients creates somewhat of a barrier. In recent years, increased interest in scientifically proven food ingredients has placed considerable pressure on regulatory bodies such as the European Food Safety Association (EFSA) and the US Food and Drug Administration (FDA). They have not adapted fully and to date, there is no clearly defined framework for ingredient producers looking to regulate scientifically proven food ingredients.

9/3/15 2:48 pm

INGREDIENTS & ADDITIVES

ASIA PACIFIC FOOD INDUSTRY MARCH 2015

usage unknown, this highlights a scenario where the The success/failure of a functional ingredient can hinge preventative qualities of functional ingredients can have on scientific approval through organisations such as EFSA. a real impact! Until there is a clear sequence of defined milestones, there In summary, the functional food trend is largely will be an inherent uncertainty for ingredient producers. consumer driven. Modern consumers are wiser in their However, regulation has come a long way since the nutritional choices and are demanding health promoting tomato extract Fruitflow gained the first approved positive products. health claim in 2010 under article 13.5 of the European Food companies are striving to meet these demands Food Safety Authority regulations. by focussing efforts on developing effective functional Since then, a clearer framework has been established. ingredients that provide the consumer with health For example, EFSA has recently issued a long awaited benefits. Using today’s methods of discovery, the demand immune and gut health claim guidance document which for effective ingredients is not being met, and the process may lead to the first probiotic health claim win. is still time and capital intensive. “The industry will benefit from clearer guidelines There has never been such an ideal time than now for and the panel is hoping to receive better applications as the adoption of big data computational technologies that a result. It will be better for all concerned,” says EFSA facilitate the rapid discovery of functional ingredients. As spokesperson Jan Op Gen Oorth. Victor Hugo once said “Nothing is stronger than an idea Ingredients in the food area are inherently different whose time has come.” to those used in pharmaceuticals. Both functional and drug ingredients rely on scientific evidence and approval. However, functional ingredients from natural sources are For more information, very different from drug ingredients. ENTER No: 0252 They are preventative and exert their effects over a long period of time, and therefore, it can be argued that functional ingredients should not undergo the same scrutiny. Cardiovascular diseases represent a well-known burden on the public’s health, escalated by Western habits of high meat/ saturated fat diets, stress-inducing work environments and sedentary We Convey Solutions for Your lifestyle habits to name a few. Food Manufacturing Process A recent study conducted over 15 years by Dr Ann Marie Navar-Boggan and her colleagues at the Duke Clinical Research Institute revealed that even slightly high cholesterol levels in otherwise healthy adults between the ages of 35 to 55 can have long-term impacts on cardiac health. Even a decade of high cholesterol can increase the chance of heart disease by 39 percent. This study presents an interesting case. When is the right time for a healthcare intervention in this scenario? Should we wait to reach some sort of medical threshold that We are looking forward to seeing you! Schenck Process has been supplying the world’s at ProPak Vietnam necessitates a medical intervention? leading food manufacturers for over 40 years in March 31 – April 2 in Saigon, Vietnam the following state-of-the-art pneumatic conveying Statins have been successfully Booth B28 technologies. used by millions of people with elevated cholesterol; however, · Dilute phase · Dense phase · Vacuum · Pressure with the effects of decade-long st

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5/3/15 4:14 pm 09.02.15 11:01

HEALTH & NUTRITION

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

SHINING THE LIGHT ON OBESITY THERE ARE STRONG SUGGESTIONS THAT VITAMIN D INTAKE HAS PROFOUND EFFECTS ON OBESITY. HOWEVER, IN MOST COUNTRIES AROUND THE WORLD, RELYING PURELY ON NATURAL SYNTHESIS OR DIETARY INTAKE IS FAR FROM SUFFICIENT. BY CATHERINE A PETERSON, UNIVERSITY OF MISSOURI-COLUMBIA CHILDHOOD obesity is a major global health crisis.

by an increase in associated chronic conditions such as insulin resistance (IR) inflammation, hypertension, and dyslipidaemia. Moreover, childhood obesity can predict adult illness and compromise longevity. One growing, active area of research is the association between vitamin D deficiency and childhood obesity. Individually, each has been classified as an epidemic throughout the world, and both share some common risk factors including poor diet and inactivity. Further, observational and clinical studies show that vitamin D status and fat mass are inversely correlated, and recent intervention trials indicate that correcting the poor vitamin D status associated with obesity may attenuate some of the comorbidities of obesity.

Bradley Stemke, Washington, US

A systematic analysis of 1,769 reports representing 188 countries reveals that the worldwide prevalence of childhood overweight and obesity rose by nearly 50 percent over a span of three decades. Roughly 43 million children are estimated to be overweight or obese throughout the world, and another 92 million are at risk of overweight. If this trend continues, the global prevalence of childhood obesity is predicted to reach 60 million by 2020. The implications of this crisis are numerous and far reaching, involving both the individual and society. For a child, there are physical health, psychosocial and functional consequences across a lifetime as studies show that childhood obesity is accompanied

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ASIA PACIFIC FOOD INDUSTRY MARCH 2015

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Opening time: 10.00 am - 6.00 pm Entrances: East, South, West Gates Pre-register on www.ipack-ima.com

Being part of innovation. The future is IPACK-IMA 2015 – the most comprehensive, valuable showcase for the food and non-food supply chain. The global standard-setting exhibition for the Grain Based Food industry and the place to be for health & personal care, chemicals and industrial goods. An innovative meeting place for the fresh food and distribution sector. A great exhibition of the world’s top production.

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An unparalleled, integrated, synergic collection of technology and innovations for processing, packaging, converting and logistics, the extraordinary conjunction with the Expo 2015, a great not-to-miss event. Be sure to be there.

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3831

Promoted by:

Enquiry Number

EFFECTS OF VITAMIN D ON WEIGHT LOSS Preliminary results in obese adults hinted at a more favourable response (greater body fat loss) to energy restriction in those with adequate vitamin D status.

Fieramilano, Milan - Italy 19 - 23 May 2015

Co-located with:

CHILDHOOD VITAMIN D DEFICIENCY Hypovitaminosis D is a significant problem among people of all ages around the world, although there are large gaps of information on the paediatric populations of some countries. The estimated worldwide prevalence of hypovitaminosis D in children and adolescents is rather wide, between 29 percent and 100 percent, and surveys show it to be in part related to the degree of adiposity, with healthy weight at 21 percent, overweight at 29 percent, obese at 34 percent, and severely obese at 49 percent. Therefore, obese children are a particularly vulnerable group for poor vitamin D status, which in turn appears to exacerbate the effects of obesity alone on overall health. It is not clear whether hypovitaminosis D contributes to, or is a consequence of, obesity, or whether there are regulatory interactions between excess adiposity and vitamin D activity. IR and inflammation are commonly seen in overweight/obese children and are predictive of the development of metabolic syndrome, type 2 diabetes mellitus (T2DM), cardiovascular disease (CVD), and perhaps osteopenia/osteoporosis. The relationship between poor vitamin D status and IR, T2DM, and metabolic syndrome is the most well studied and was first observed in obese adults. Similar observations have since been made in obese children. The biological mechanisms by which vitamin D influences glycaemic control in obesity have yet to be determined but are thought to involve enhancement of peripheral/hepatic uptake of glucose, attenuation of inflammation, and/or regulation of insulin synthesis/ secretion by pancreatic β-cells. Another condition related to childhood obesity and metabolic disturbances is non-alcoholic fatty liver disease (NAFLD). Since both NAFLD and serum 25(OH) D concentration are associated with adiposity and IR, interest in examining their potential pathogenic link has emerged. Pediatric NAFLD is a condition characterized by hepatic fat infiltration 0.5 percent hepatocytes, as assessed by liver biopsy, in the absence of viral, autoimmune, and drug-/alcohol-induced liver disease. It is becoming one of the most common complications of childhood obesity and is strongly associated with the clinical features of IR, especially the metabolic syndrome and T2DM.

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HEALTH & NUTRITION

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

final gather

OBTAINING ADEQUATE VITAMIN D FROM NATURAL FOOD SOURCES ALONE IS GENERALLY NOT ACHIEVABLE AS ONLY A LIMITED NUMBER OF FOODS NATURALLY CONTAIN VITAMIN D.

However, a 2014 meta-analysis of RCTs using vitamin D supplementation without imposing energy restriction revealed only a small effect of improved vitamin D status on BMI but not fat mass. Interestingly, the meta-analysis also indicated that studies in older people and men were less likely to show an effect on BMI or fat mass. There is a paucity of data available on the effect of vitamin D supplementation on weight loss in children. The IOM-recommended dietar y allowance is 600 IU (15 μg) daily for children 1–18 years of age. Recommendations of paediatric medical societies such as the AAP or the European Society for Paediatric Gastroenterology, Herpetology, and Nutrition are below this dose, while the Endocrine Society and SAHM guidelines suggest that this same age group may need up to 1,000 IU (15–25 μg) per day. This disagreement reflects different goals and views on current evidence. The above recommendations are generally intended for healthy populations and do not reflect the unique needs of disease groups or of those with diagnosed vitamin D deficiency. With the high prevalence of hypovitaminosis D among obese children, the requirements for most obese youth would likely fall under a different set of recommendations. The obese are approximately half as efficient in using vitamin D compared to their lean counterparts. It has been estimated that 100 IU are required for every 2.5 nmol/L (1 ng/mL) increase in serum 25(OH) D concentration in the non-obese, whereas for obese

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adolescents, it took approximately 205 IU—more than double—of vitamin D for the same incremental increase. As further evidence of a higher dose required in obese children, a vitamin D supplementation study found that vitamin D deficiency persisted in 24 percent of obese versus 11 percent of non-obese African-American children given 400 IU per day for four weeks. Collectively, these findings argue for a separate set of guidelines for obese children and adolescents. Meeting vitamin D needs through sun, food, or supplement sources facilitating Vitamin D synthesis in the skin depends on the photo-conversion of 7-dehydrocholestrol to pre-vitamin D3 by ultraviolet B (UVB) light (wavelength =209–315 nm). Several factors affect the skin’s ability to produce vitamin D3. Season, latitude, and time of day affect vitamin D3 production by altering the absorption of UVB photons by the ozone layer. UVB synthesis is one of the main sources of vitamin D in most populations tracked; however, due to the limited sun availability throughout the year in many locations and concerns for skin cancers, relying on this source for the treatment of vitamin D deficiency in childhood obesity is neither practical nor prudent. VITAMIN D THROUGH DIETARY INTAKE Likewise, obtaining adequate vitamin D from natural food sources alone is generally not achievable as only a limited number of foods naturally contain vitamin D. Among them, the most vitamin D rich are fish liver oils, fish, and organ meats, and to a lesser extent, egg yolks and sun-dried mushrooms. For those countries in which high levels of fish are not consumed, the only alternative to UVB light exposure is the use of fortified foods or dietary supplements. Commonly fortified foods include breakfast cereals, milk, milk products, grain products, pastas, margarine, and some brands of orange juice. In the US, most vitamin D intake from foods is provided through fortification. In New Zealand, Australia, Canada, and the UK, fewer foods are fortified, and the prevalence of insufficiency is as low as, or lower than those observed in the US. Even in countries that allow fortification, vitamin D intakes are low in those with dietary practices that limit the consumption of fortified foods. For example, the consumption of milk, the most common vehicle for

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3453 Enquiry Number

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25/9/14 10:44 am

HEALTH & NUTRITION one-11

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

Schlaeger, Kaiserslautern, Germany

The most vitamin D rich foods are fish liver oils, fish, and organ meats, and to a lesser extent, egg yolks and sun-dried tomatoes.

vitamin D fortification, generally declines with increasing age in children. Therefore, in obese children, a population with apparently greater needs and proneness to deficiency, vitamin D supplementation is warranted. Both forms of the vitamin, D2 or D3, can be used as a food fortificant or dietary supplement, although D3 dominates. Ingested vitamin D is presumed to follow the same fate as dietary lipids, although new data reveal that digestive and absorptive processes may be more complex than previously recognised as large interindividual variation in postprandial responses to vitamin D have been observed. During digestion, vitamin D is transferred to the mixed micelles generated by the lipolysis of dietary fat. Upon uptake through the brush border, vitamin D becomes incorporated into chylomicrons along with the other products of fat digestion, and approximately 80 percent is absorbed into the lymphatic system. D2 and D3 forms are similarly absorbed by the enterocyte. Total fat content of a meal does not appear to significantly alter vitamin D absorption. However, several fat-soluble molecules including dietary cholesterol, phytosterols, and vitamins A,

E, and K have been shown to inhibit or compete with vitamin D for absorption. Further, any health conditions characterised by fat malabsorption can increase the risk for vitamin D deficiency. Vitamin D can accumulate throughout the body with adipose tissue as its primary storage site. It has a half-life of four to six weeks, although higher doses can lead to a long residence time. Vitamin D deficiency is prevalent in childhood obesity. Excess adiposity is linked with poor vitamin D status, and the effects of this deficiency during obesity appear to have several health implications, including IR, inflammation, and compromised bone growth/ mineralisation. Whether poor vitamin D status is a cause or an effect of obesity is not known; however, most of the findings to date suggest that the vitamin D needs of obese children are greater than the non-obese, and that weight loss can improve vitamin D status.

For more information, ENTER No: 0260

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All You Need To Know About AEC 2015

Pan Pacific Singapore Hotel, 24 April 2015 4pp Overnutrition2.indd 44

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HEALTH & NUTRITION

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

WHAT’S IN YOUR FOOD? ARE YOU REALLY WHAT YOU EAT? IN THIS SECTION, WE ROUND UP THE LATEST RESEARCH AROUND THE WORLD FOR YOU TO DECIDE.

Emulsifiers Linked To Obesity In Mice

Elana's Pantry

Research by Georgia State University Institute for Biomedical Sciences suggests that emulsifiers, which are added to most processed foods to aid texture and extend shelf life, can alter gut microbiota composition and localisation to induce intestinal inflammation that promotes the development of inflammatory bowel disease and metabolic syndrome.

Read more on Pg 50

Dominik Dome, Mainz, Germany

Probiotics May Play Key Row In Peanut Allergies Researchers at the Murdoch Childrens Research Institute in Australia may have taken the first steps to finding a treatment for peanut allergy. In a clinical trial, children who received a daily dose of probiotic lactobacillus rhamnosus in combination with peanut protein were able to include peanuts in their diets.

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HEALTH & NUTRITION

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

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with the microbiota so we considered what modern additions to the food supply might possibly make gut bacteria more pro-inflammatory.” Addition of emulsifiers to food seemed to fit the time frame and had been shown to promote bacterial translocation across epithelial cells. The researchers hypothesised that emulsifiers might affect the gut microbiota to promote these inflammatory diseases and designed experiments in mice to test this possibility. The team fed mice two very commonly used emulsifiers, polysorbate 80 and carboxymethylcellulsose, at doses seeking to model the broad consumption of the numerous

Tetra Pak

Emulsifiers, which are added to most processed foods to aid texture and extend shelf life, can alter gut microbiota composition and localisation to induce intestinal inflammation that promotes the development of inflammatory bowel disease and metabolic syndrome, as a research led by Georgia State University Institute for Biomedical Sciences’ researchers Dr Benoit Chassaing and Dr Andrew T Gewirtz has shown. The research included contributions from Emory University, Cornell University and Bar-Ilan University in Israel. Inflammator y bowel disease (IBD), which includes Crohn’s disease and ulcerative colitis, afflicts millions of people and is often severe and debilitating. Metabolic syndrome is a group of very common obesityrelated disorders that can lead to type-2 diabetes, cardiovascular and/ or liver diseases. Incidence of IBD and metabolic s y n d ro m e h a s b e e n m a r k e d l y increasing since the mid-20th century. The term ‘gut microbiota’ refers to the diverse population of 100 trillion bacteria that inhabit the intestinal tract. Gut microbiota are disturbed in IBD and metabolic syndrome. The findings suggest emulsifiers might be partially responsible for this disturbance and the increased incidence of these diseases. “A key feature of these modern plagues is alteration of the gut microbiota in a manner that promotes inflammation,” says Mr Gewirtz. “ T h e d r a m a t i c i n c re a s e i n t h e s e d i s e a s e s h a s o c c u r re d despite consistent human genetics, suggesting a pivotal role for an environmental factor,” says Mr Chassaing. “Food interacts intimately

Dennis Wilkinson

EMULSIFIERS LINKED TO OBESITY IN MICE

EMULSIFIERS MIGHT BE PARTIALLY RESPONSIBLE FOR THE INCREASED INCIDENCE OF INFLAMMATORY BOWEL DISEASE, WHICH INCLUDES CROHN’S DISEASE AND ULCERATIVE COLITIS, AND AFFLICTS MILLIONS OF PEOPLE. emulsifiers that are incorporated into almost all processed foods. They observed that emulsifier consumption changed the species composition of the gut microbiota and did so in a manner that made it more pro-inflammatory. The altered microbiota had enhanced capacity to digest and infiltrate the dense mucus layer that lines the intestine, which is normally, largely devoid of bacteria. Alterations in bacterial species resulted in bacteria expressing more flagellin and lipopolysaccharide, which can activate pro-inflammatory gene expression by the immune system. Such changes in bacteria triggered chronic colitis in mice genetically prone to this disorder,

due to abnormal immune systems. In contrast, in mice with normal immune systems, emulsifiers induced low-grade or mild intestinal inflammation and metabolic syndrome, characterised by increased levels of food consumption, o b e s i t y, h y p e rg l y c a e m i a a n d insulin resistance. The effects of emulsifier consumption were eliminated in germ-free mice, which lack a microbiota. Transplant of microbiota from emulsifiers-treated mice to germ-free mice was sufficient to transfer some parameters of lowgrade inflammation and metabolic syndrome, indicating a central role for the microbiota in mediating the adverse effect of emulsifiers.

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HEALTH & NUTRITION

ASIA PACIFIC FOOD INDUSTRY MARCH 2015

Chemists from the University of California, Ir vine (UCL), the University of Western Australia (UWA) and Flinders University have figured out how to unboil egg whites—an innovation that could dramatically reduce costs for cancer treatments, food production and other segments of the US$160 billion global biotechnology industry. “ Ye s , w e h a v e i n v e n t e d a way to unboil a hen egg,” said Gregory Weiss, UCI professor of chemistry and molecular biology and biochemistry. “In our paper, we describe a device for pulling apart tangled proteins and allowing them to refold. We start with egg whites boiled for 20 minutes at 90 degrees C and return a key protein in the egg to working order.” Like many researchers, he has struggled to efficiently produce or recycle valuable molecular proteins that have a wide range of applications but which frequently ‘misfold’ into structurally incorrect shapes when they are formed, rendering them useless. “It is not so much that we are interested in processing the eggs; that is just demonstrating how powerful this process is,” he said. “The real problem is there are lots of cases of gummy proteins that you spend way too much time scraping off your test tubes, and you want some means of recovering that material.” But older methods are expensive and time-consuming: The equivalent of dialysis at the molecular level must be done for about four days. “The new process takes minutes,” Mr Weiss noted. “It speeds things up by a factor of thousands.” To re-create a clear protein known as lysozyme once an egg has

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Pietro Izzo, Torino, Italy

UNBOILED EGGS COULD HELP FIGHT FOOD WASTE

THE METHOD HAS THE POTENTIAL OF TRANSFORMING INDUSTRIAL AND RESEARCH PRODUCTION OF PROTEINS, ENABLING FOOD MANUFACTURERS TO STREAMLINE THEIR PROCESSES. been boiled, he and his colleagues add a urea substance that chews away at the whites, liquefying the solid material. That is half the process. At the molecular level, protein bits are still balled up into unusable masses. The scientists then employ a vortex fluid device, a high-powered machine designed by Professor Colin Raston’s laboratory at South Australia’s Flinders University. Shear stress within thin, microfluidic films is applied to those tiny pieces, forcing them back into untangled, proper form. The method has the potential of transforming industrial and research

production of proteins. For example, industrial cheese makers, farmers, and others who use recombinant proteins will be able to streamline their manufacturing process and achieve greater returns.

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HEALTH & NUTRITION

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

GREEN TEA INGREDIENT MAY TARGET PROTEIN TO KILL ORAL CANCER CELLS causes the formation of reactive oxygen species in cancer cells, which damages the mitochondria, and the mitochondria responds by making more reactive oxygen species.” As this mitochondrial demise continues, the cancer cell also reduces the expression of anti-oxidant genes, further lowering its defences. “So, it is turning off its mechanism of protection at the same time that EGCG is causing this oxidative stress,” he added. The EGCG did not cause this reaction in normal cells. In fact, it appeared to increase the protective capabilities of the cell, according to the researchers. The researchers studied normal human oral cells side-by-side with human oral cancer cells to determine how EGCG was affecting cancer cells differently than normal cells. T h e y g re w t h e n o rm a l a n d cancer cells on petri dishes and then exposed them to EGCG, the major polyphenol found in green tea, at concentrations typically found in the saliva after chewing green-tea

chewing gum. At various times, the researchers would collect the cells and check for oxidative stress and signs of antioxidant response. “We also took a lot of pictures, so we could use fluorescent dyes that measure mitochondrial function and oxidative stress and actually see these things develop,” said Mr Lambert, who worked with JongYung Park, a research technician and Ling Tao, a doctoral candidate in food science. The researchers said that a protein called sirtuin 3—SIRT3—is critical to the process. “It plays an important role in mitochondrial function and in antioxidant response in lots of tissues in the body, so the idea that EGCG might selectively affect the activity of sirtuin 3 in cancer cells—to turn it off—and in normal cells—to turn it on—is probably applicable in multiple kinds of cancers,” he said. For more information, ENTER No: 0261

Bong Grit, Aichi, Japan

A compound found in green tea may trigger a cycle that kills oral cancer cells while leaving healthy cells alone, according to Pennsylvania State University food scientists. The research could lead to treatments for oral cancer, as well as other types of cancer. Earlier studies had shown that epigallocatechin-3-gallate—EGCG—a compound found in green tea, killed oral cancer cells without harming normal cells, but researchers did not understand the reasons for its ability to target the cancer cells, said Joshua Lambert, associate professor of food science and co-director of the university’s Center for Plant and Mushroom Foods for Health. The current study shows that EGCG may trigger a process in the mitochondria that leads to cell death. “EGCG is doing something to damage the mitochondria and that mitochondrial damage sets up a cycle causing more damage and it spirals out, until the cell undergoes programmed cell death,” said Mr Lambert. “It looks like EGCG

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6/3/15 10:52 am

Your Gateway to the Great Show on Food Additives and Ingredients

Food Ingredients China 2015 April 1 - 3, 2015 National Exhibition and Convention Center (Shanghai) (NECCS)

We are moving to NECCS Bigger platform

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Review of FIC 2014: Total Space: 72000 m2 Number of Exhibitors: 1194 companies from 30 countries and regions Number of Professional Visitors: 40125 from all over the World Evaluation: 98.7% of visitors are satisfied with FIC 2014

For more information, please visit

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3825

www.ChinaFoodAdditives.com/d_e.htm Organized by: China Food Additives & Ingredients Association China Food Additives Journal Rm. 1402, Tower 3, Vantone, No. 6A, Chaoyangmenwai St., Beijing 100020, China Tel: +86-10-5979 5833 Fax:+ 86-10-5907 1335, 5907 1336 E-mail: cfaa1990@126.com

CCPIT Sub-Council of Light Industry 22B, Fuwai Dajie, Beijing 100833, China Tel: ++86-10-6839 6330, 6839 6468 Fax: ++86-10-6839 6422 E-mail: ccpitsli@aliyun.com info@fi-c.com

Welcome to FIC 2015! 3825 Fi China.indd 1

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BEVERAGES

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

A HOLD ON LIQUID DAIRY PACKAGING THE DEMAND FOR LIQUID DAIRY PRODUCTS HAS BEEN GROWING, ESPECIALLY IN DEVELOPING MARKETS. THE CONVERSION TOWARDS PLASTIC BOTTLES CAN CREATE A MORE CONVENIENT CONSUMER EXPERIENCE WITHOUT COMPROMISING ON PRODUCT INTEGRITY. BY MAX DUCLOT, ZONE SENIOR ASEPTIC SPECIALIST & SENIOR DAIRY OFFICER, SIDEL LIQUID dairy products (LDP) are showing steady growth as a percentage of worldwide beverage sales and with this growth, there has been an increasing focus on finding new and innovative ways of packaging the products. The classic glass milk bottle is fast becoming obsolete in favour of alternative materials which can ensure the allimportant product integrity while also helping to create a more convenient experience for consumers, as well as providing benefits throughout the supply chain. DRIVERS OF GROWTH White milk remains the most important product in the LDP sector representing approximately 70 percent of all consumption. Liquid dairy products already account for one fifth of worldwide beverage sales, a figure which is expected to grow by a further five percent by 2016. Much of this growth is attributable to emerging markets, with countries such as Brazil, India, China and the Middle East contributing significantly. A consequence of increases in disposable income is a rapid—and still growing—transition from raw to processed milk products.

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This further strengthens consumer demand for added value offerings, with the growth in this kind of dairy products being driven by categories such as flavoured milk drinks, soy beverages, health and wellness milk products and even long-life UHT milk. The main developed markets are more mature, with existing high levels of milk consumption. Growth here is being driven through the introduction of new products. Another factor in the growth of the LDP sector of the beverage industry is the influence of consumers’ seeking products which fit more readily with the trend towards healthier lifestyles. The natural and nutritious content that typifies LDP is exactly what the health-conscious consumer is looking for. In the more mature markets, current consumer trends that relate to health, different tastes, convenience and value for money still present niche growth opportunities. A particularly notable trend which continues to gain momentum is the demand for enriched dairy products with healthy functionalities. This includes products such as milk-based probiotics, products with added calcium to help promote healthy

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BEVERAGES

ASIA PACIFIC FOOD INDUSTRY MARCH 2015

bones, and more natural products which are free from preservatives and other additives. PACKAGING RESPONSE In meeting this growth in demand for LDP, opportunities are constantly being explored in packaging, seeking to protect the integrity of the products while also helping to stimulate sales through eye-catching look and feel. The packaging has to meet the stringent requirements of food safety standards, but it also offers excellent opportunities for brand differentiation of LDP, both in products stored at ambient temperatures and for those requiring refrigeration. The challenge is to create innovative, attractive and functional packaging that is still cost-efficient to produce. Consumers want convenience from their beverages and LDP is no different. There is a move away from standard sizes to packaging formats such as single serve or portion-based options which are more suited to an onthe-go lifestyle. At the same time, demand remains for multi-serve options, with bigger packaging sizes, particularly in milk, which can meet the needs of the family. At present,

cartons and HDPE are the most widely used materials for packaging LDP, with glass, the more traditional option, falling away. PET currently accounts for two percent of packaged liquid dairy beverages. However, it is one of the materials experiencing significant growth as LDP producers realise the creative, cost-effective and sustainable solutions that PET can offer. Forecasts predict annual increases of five percent in PET’s share of the packed LDP market by 2016, outstripping the growth forecasts for both carton and HDPE. FOOD SAFETY & PRODUCT INTEGRITY Food safety is vital in any application but in liquid dairy products, the challenges are especially acute since the product quality can be easily compromised by the effects of light, oxygen and temperature. The packaging solution is defined according to a number of factors including the beverage or liquid dairy product type and its recipe (white milk, flavoured milk, yoghurt, soya), the process, the bottling equipment, the distribution temperature and the desired shelf life. The reasons for the increased adoption of PET

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3842

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5/3/15 2:23 pm

BEVERAGES

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

PET HAS EXCELLENT PHYSICAL PRODUCT AND FOOD BARRIER PROTECTION BENEFITS. packaging for LDP are numerous, many of which are the same reasons for its growth in other beverage sectors. It is user-friendly, shatterproof, re-sealable and, importantly in a world where sustainable production is an ever increasing focus, 100 percent recyclable. It also offers freedom in bottle design, with the material’s transparency providing the potential to truly showcase the product. However, PET has other attributes which make it particularly suited to packaging LDP. Its excellent physical product and food barrier protection benefits ensure great taste, extended shelf life and safety throughout the supply chain, protecting the nutritional and sensorial properties which are so fundamental in LDP. Transparent PET can be used for fresh and flavoured milk, while opaque white PET can be used for white UHT milk, for example. In the case of white milk, which is very sensitive to light, the development of light-blocking barrier technology is opening up further opportunities. Different preform manufacturing technologies are now available in that field. The first option is the monolayer preform: the PET raw material is mixed with additives in a master-batch before a standard injection process is employed in order to improve the PET barrier properties. Another alternative is the multilayer preform solution which can be achieved using either over-moulding or coinjection technologies. Neither option requires the use of aluminium foil before capping. QUICK CHANGEOVERS Versatility in the production line is key for many beverage manufacturers and in LDP, this is particularly so. Most liquid dairy producers have diversified their production with more value-added products to create and maintain a sustainable business. Line versatility allows them to vary the recipes of their products. For example, the same production line might create white milks, flavoured milk drinks, yoghurts and sour milk drinks. The line may also be required to accommodate different packaging formats or shapes, with the capability of effecting quick changes from on-the-go to family packs. LDP producers sometimes require production of smaller batches, say, for market-testing of new recipes before large-scale production. Also, in certain regions, such as Southern Europe (Spain, France and Italy), there are a lot of cooperatives producing milk and dairy, requiring medium or low production volumes to serve a local regional market. They typically produce not only white milk but also

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additional, value-added products. Lines dedicated to lowoutput aseptic production can therefore prove invaluable in LDP, particularly if they also offer the flexibility to produce different products and packaging formats. PRODUCTS IN ACTION The use of PET in liquid dairy products is not new. We saw the first switch to PET in 1999 when Dean Foods, the first American producer of liquid dairy products, abandoned carton in preference for a PET bottle to package its Nesquik flavoured milk. In 2000, the trend quickly reached Europe with Lanitis Cyprus bottling the first fresh milk in PET and Puleva Spain packaging UHT flavoured milk in monolayer PET. Two years later, the monolayer technology was again adopted by French company Marguerite in bottling their pasteurised and microfiltrated white milk. By 2005, another Spanish company, Leche Pascual, started producing its UHT white milk in light barrier PET, opening up opportunities for similar initiatives. This was followed by combining the PET bottle with a specific method of production which offered blowing, filling and capping functions in a single production enclosure. Another milestone in PET applications for LDP came in 2009 when UHT milk was aseptically bottled in a one litre PET bottle with no sealing foil. Now commonplace, this was a world first at the time with French dairy company Laiterie Saint-Denis-de-L’Hôtel (LSDH) also taking advantage of the revolutionary dry preform aseptic technology to lightweight its bottles by 8 g compared to the original bottle produced on an aseptic line with wet bottle decontamination. Since then, PET has continued to evolve its use in all categories of liquid dairy products throughout the world, from Israel to Brazil, and from Indonesia to Romania. MARKET DEVELOPMENT Milk and other liquid dairy products represent a significant proportion of worldwide beverage sales. This is set to grow as the move towards healthier lifestyles stimulates growth in the sector, with categories such as flavoured milk drinks, soy beverages, fortified milks and long-life ultra-high temperature (UHT) milk being particularly strong. As the demands for natural dairy products increase globally, so the respective attributes of different packaging materials will become more of a focus. PET is well placed to increase its share of the market in offering creative, cost-effective and sustainable solutions while preserving the quality and safety of the drinks they contain.

For more information, ENTER No: 0270

5/3/15 2:23 pm

Enquiry Number

3838 Fi Vietnam.indd 1

3838

3/3/15 9:10 am

FOCUS FEATURES

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

PLAYING FAIR IN THE FIELDS

WOMEN FARMERS IN DEVELOPING ECONOMIES ARE OFTEN DENIED ACCESS TO THE SAME RESOURCES AS THEIR MALE COUNTERPARTS. THIS HAS TIPPED THE SCALE SEVERELY AND REGAINING A BALANCE MIGHT JUST BE THE THING THE FOOD INDUSTRY NEEDS TO SECURE ITS FUTURE. BY SHERLYNE YONG In the end, the value of the things that his wife did for nothing came up to about $2,500. Contrite, he went home to apologise. Unfortunately, this lack of appreciation for women is not a rarity. You might find it unbecoming now that we are in the 21st century, but there is still a huge population of women who are expected to do those things on top of juggling work to support their families. Gender differences are ver y real, and this is exceptionally prevalent in rural areas where customs prevail. Women have been boxed into a stereotype that determines what they should do and how much their contribution are worth, simply because they were born as the fairer sex.

Bread for the World, Washington, DC

LEYMAH Gbowee, peace activist and recipient of the 2011 Nobel Peace Prize, once shared a story about a man who attended her workshop. He was very loud and vocal with his displeasure on how his wife did nothing for his family. All she did was stay at home while he went out to earn a living. But this changed when he was tasked to put a monetary value on what she did at home, in other words, the amount he would have to pay if someone else did the things his wife did. “My wife wakes up every morning at 4 am to make hot water. We have no electricity so she has to burn firewood and do everything. After that, she made sure my water is in the bathroom. She carries the water there. She fixes my breakfast and serves me, brings the children to school, stay home and cook, goes to the market to get food, picks the children up from school,” he said.

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International Livestock Research Institute (ILRI), Nairobi, Kenya

Women are not just caregivers, but also key food producers and providers. Data from the Food and Agricultural Organization (FAO) shows that they account for 43 percent of the agricultural workforce.

FIXED GENDER ROLES In most cultures, women are the appointed caregivers whose primary roles are being mothers and wives. According to the UN, women in Asia spend just under 1.45 hours a day preparing meals, while men spend just 15 minutes. In Africa, girls marry young and inherit only a small portion of their husbands’ land that is typically poor in quality. Patriarchal ideology is rife in most emerging nations, and this has resulted in deep-seated social norms dictating that women stay at home to cook, clean and look after the children, while men should head out to work and bring home the bread. However, times are changing and it is no longer financially viable for families to rely on one breadwinner, especially in such an open and volatile economy as ours. Women are not just caregivers, but also key food producers and providers. In fact, many have gone beyond their traditional roles. Data from the Food and Agricultural Organization (FAO) shows that they account for 43 percent of the agricultural workforce. Yet, many of them become workers rather than leaders, even though a vast proportion of agricultural output can be attributed to them. For instance, a joint report by UTZ and Solidaridad found that women took part in 12 out of the 19 stages of cocoa production. But because men generally take responsibility for collecting payment, it is a woman’s relationship to the man that dictates how much she gets. This is but one of the obstacles that women face. Many more abound in the form of restricted access to resources that their male counterparts can so readily achieve. Despite owning half of all SMEs in Kenya, women entrepreneurs experience less growth in their business than those of male owned businesses, simply because they lack support.

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LIMITED ACCESS TO RESOURCES The biggest element that impedes the success of women entrepreneurs and farmers is undoubtedly their access (or the lack thereof) to resources. Researchers at Harvard University conducted a study in Ghana where they found dramatic gender gaps beyond income and productivity. On cocoa farms, women have a 25 percent lower level of training, 20 percent lower receipt of loans, and 30-40 percent lower access to critical farm inputs such as fertiliser. Access to land, markets, technology, other inputs and financial services are all key tenets of productivity, which when taken away, severely deprives female farmers of reaching their full potential. CREDIT

Credit is one of these things, and women often have a much harder time trying to get the loans they need to get their business running. “There are horrible stories from women who want access to credit,” said Ms Gbowee. “My mother is the one who earns all the wealth, my father is not a wealthy man. She went to a local bank in Liberia for a loan. She said she wanted to buy a bus to start a transportation business. And so she was applying for a $10,000 loan, she brought all the documents and they said to her, two things were missing — her marriage certificate plus her husband, and a prominent citizen in a country. Without these two, they would not give her the loan,” she said. Unlike men, women often have to fulfil seemingly unrelated conditions before they can be granted what they need, resulting in a huge production gap between the two sexes. Despite all smallholders facing constraints in access to credit, the Food and Agricultural Organization (FAO) notes that “in most countries the share of female smallholders who can access credit is 5–10 percentage points lower than for male smallholders.” This in turn, reduces the amount of assets that female entrepreneurs own, and goes on to perpetuate a gender asset gap in most regions. LAND & PROPERTY

Closely tied to credit, access to land is another condition that can vastly change the circumstances of women farmers in rural areas. In fact, a joint paper by the FAO and Asian Development Bank (ADB) cited land ownership as the single most important factor for the economic empowerment of rural women farmers.

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FOCUS FEATURES World Agroforestry Centre, Nairobi, Kenya

CGIAR Climate Change, Agriculture and Food Security

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

Women have a higher tendency of being relegated to temporary jobs and menial tasks that are deemed as less important or impactful. This is because access to other productive resources is often dependent on land ownership, especially to ensure security of tenure, and it is also vital for social inclusions, such as in Asian societies where ‘face’ matters. Most importantly, how can one farm without any land? To paint a small picture of gender differences when it comes to property ownership in rural areas, a Guardian article revealed that a village in Dadun, China, has a scheme that allocates houses according to the number of sons in a family. Daughters purportedly have none because they will be ‘married out’ eventually. Similarly, in other parts of China, when women farmers marry into their husbands’ families, they will lose the rights to the land that they have farmed on their entire lives to their brother or brother’s wife. Meanwhile in Cote d’Ivoire, one of the world’s largest exporters of cocoa beans, CARE International found that 86 percent of men had legal rights to their cocoa plots, but in 67 percent of the cases, the land accessed by women was not owned by them. Again, this disparity can be attributed to deeply entrenched traditions. LABOUR,TECHNOLOGY & INPUTS

Last but not least, women have a higher tendency of being relegated to temporary jobs and menial tasks that are deemed as less important or impactful. Men have a greater command over labour in rural areas, where family members are often enlisted to help without remuneration, and these tend to be their wives and sisters. In Ecuador, Guatemala and Mexico, women are often hired on short term contracts, as well as for seasonal jobs in sectors such as fruit production, even though they make up the majority of the workers. According to the UN, nearly 80 percent of women in sub-Saharan Africa are in vulnerable employment. Another reason for this is that women require flexibility to fulfil their familial responsibilities. As a result,

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they are more likely to work part-time, or drop out from the labour force altogether, which in turn prevents them from attaining the knowledge or experience they require. Perhaps due to perceptions that men are better suited for managing farms, they tend to get essential inputs more than women do. Researchers from the International Food Policy Research Institute (IFPRI) found that 79 percent of studies concluded that men have higher mean access to inputs such as fertilisers, seed varieties, tools and pesticides. This only serves to perpetuate yield gaps between genders, as highlighted by a study in Burkina Faso that found men’s plots to be 30 percent more productive than female-managed plots because labour and fertiliser were more intensively applied. Limited access to essential resources creates a vicious cycle where already disadvantaged female smallholders will suffer even more. It is a downward spiral where male-owned farms will continue to grow and be favoured over female-managed ones as they can produce more yield. According to the World Bank, firm managers in China prefer to sign export contracts with men because women have limited access to productive assets, lack statutory rights over land, and have less authority over family, and in turn, potential farm labour. Disempowering women through these limitations serves as a huge opportunity cost for the world. If women were being accorded the same resources as their male counterparts, the FAO predicts that the yield gaps of 20 to 30 percent between the sexes can be removed, domestic agricultural output could go up by 2.5 to 4 percent, and up to 100 million fewer people could be living in hunger. The food and agriculture industry has to work together to remove gender differences from the farms, especially since the trade is becoming increasingly feminised as men are leaving to seek better jobs in the city.

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ASIA PACIFIC FOOD INDUSTRY MARCH 2015

according to Oxfam International—imagine the amount of extra food that can be produced if they were given the access to what they need. With global supplies dwindling, be it cocoa, coffee, cattle, wheat or corn, female empowerment could be the single most effective solution that the food industry can engage in. Supplying women with the resources they need is easy and inexpensive. Rather, it is the overhauling of mindsets and dated traditions that requires more work. “Women’s role in the world that we live in, taken from the textbooks, taken out of the superficial thinking, is something that each and every one of us will see as value. Once we bring that value into everything we do, in every industry that we’re in, the game has changed, for the better instead of for the worse,” said Ms Gbowee. And that—realising the value of women—is something the world needs to try harder in.

For more information, ENTER No: 0280

Enquiry Number

3821

EMPOWERING THE WORLD The ramifications of gender equality are huge. By closing gender gaps, women can contribute more, resulting in a diverse workforce, increased economic productivity, greater sustained periods of growth, and the improved standing of females among their communities. However, it is not all about the money. Female empowerment leads to other kinds of social and cultural benefits too. “Paying women a decent wage, improving their access to tools, fertilisers, and credit, and guaranteeing their right to own and access land will have a huge multiplier effect on food security and hunger reduction,” said Lourdes Adriano, practice leader for Agriculture, Food Security and Rural Development in the Regional and Sustainable Development department at the ADB. Agricultural yields are being threatened by climate change and a growing world population, while the state of hunger in the world is being exacerbated by an unstable global economy and the fluctuating prices of commodities. With so much of agricultural production being dependent on women—up to 80 percent in some regions,

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MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

CHINA SAYS CHEESE A DECADE AGO, CHEESE WAS A TOUGH SELL IN CHINA, BUT AS THE CHINESE GREW MORE RECEPTIVE TO THE TASTE AND SMELL OF CHEESE, THE MARKET HAS DEVELOPED INTO ONE WITH HUGE POTENTIAL. BY DOMINIC MORGAN, SENIOR EDITOR, PR & MARKETING DEPARTMENT, CCM TEN years ago, cheese was a tough sell in China. Many Chinese were used to seeing foreign people (and Jerry Mouse) eating cheese on television, but up close, the smell of a mature cheddar was more likely to induce nausea than hunger. However, times are changing. While you are still unlikely to see a cheeseboard on many Chinese dinner tables, imported cheese is already a US$340 million market in China and is growing rapidly. Cheese imports rose 39 percent in 2014, up from 22 percent the previous year, and at this rate, China will be consuming more than US$1 billion of foreign cheese a year by 2018. AUSTRALIA & NEW ZEALAND LEAD THE WAY Governments around the world are already scrambling to help their nationâ&#x20AC;&#x2122;s cheese makers grab a slice of this lucrative new market. In just the last month, ministers from Finland, the UK, and the Netherlands have all flown to Beijing in an attempt to boost trade in food and drinks.

So far, however, the market has been dominated by New Zealand and Australia, and to a lesser extent the US, with Europe and the rest of the world trailing far behind. Country

New Zealand

Total volume of cheese exports to China, 2014 (tonnes)

Total value of cheese exports to China, 2014 (US$)

28,825

146,617,216

Australia

17,336

81,424,613

11,635

55,644,379

1,915

15,773,363

France Italy

1,458

11,666,115

Denmark

1,084

8,953,581

Germany

855

4,702,565

Argentina

717

3,512,534

Netherlands

491

3,374,906

Uruguay

491

2,236,999

Graeme Maclean, Glasglow, UK

Source: China Customs (1 tonne = 1,000 kg)

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IN THE SHADOW OF SANLU Cheese imports from New Zealand in 2014 totalled This is not to say that there is no market for retail cheese 28,825 tonnes, a 44 percent increase over 2013 and products in China. Imports from the five most popular almost five times the amount imported from the top five European nations—France, Italy, Denmark, Germany, and European nations combined (5,803 tonnes). the Netherlands—rose 41 percent, 30 percent, 60 percent, Australia’s cheese industry is also performing extremely 46 percent, and 19 percent year-on-year respectively, and well in China—its exports rose an astonishing 55 percent there is huge potential for further growth in this market. year-on-year over the same period to 17,336 tonnes. One particularly promising market is children’s snacks Imports from the US rose 16 percent year-on-year to 11,635 tonnes, but the US is now falling decisively behind its Australasian rivals. New Zealand now exports more than twice as much www.fikorea.org cheese to China as the US, and the gap between Australia and the US is The comprehensive food market for your business! widening rapidly, from 1,157 tonnes in The only B2B Exhibition & Conference in Korea 2013 to 5,701 tonnes in 2014.

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FI 05 01 KOREA 201 Food Ingredients Food Technology

September 2nd(Wed) – 4th(Fri), 2015 aT Center, Seoul, Korea

Exhibition / Conference / Exhibitor Seminar / Biz-matching Natural & Healthy Food Ingredients Food Ingredients & Additives Food Safety & Technology Bio-Food Tech / Inner Beauty Functional Food & Drink

Organized by : Globalcomms, Korea Food Industry Association Contact T. +82-70-7596-3758~9 | F. +82-2-3010-0164 | E. info@fikorea.org

Traditional Korean wood mortar to pulverize grain

www.icoff2015.org

The 6th International Conference on Food Factors

EXHIBITION November 23 (Mon.) ~ 24 (Tue.), 2015 Hall E(3F), COEX, Seoul, Korea Why ICoFF 2015 Exhibition? ∙ The largest Professional Exhibition of Function Food connected with Authoritative International Conference in Function Food ∙ Ideal Place to Learning and Networking for Food Function ∙ Academic Interchange with Experts from Academia, Laboratories and Governments in Food Industry ∙ 7,500 Participants from 40 Countries

ICoFF started in 1995 and has been held every four years. This Conference represents a gathering of world experts in food factors which reduce the risk of lifestyle related diseases. The main theme of ICoFF 2015 is ‘Bioconvergence for Food Function’. This includes food factors for health promotion and disease prevention, sources of food factors and processing aspects of food factors.

ICoFF 2015 Exhibition Secretariat Tel +82-70-7596-3758, 3555 | Fax +82-2-3010-0164 | E-mail show@globalcomms.co.kr

Organized by : Korean Society of Food Science and Technology (KoSFoST) , Globalcomms

3837

About International Conferenence on Food Factors (ICoFF)

Enquiry Number

CHEAP SHIPS, PIZZA & CHIPS The popularity of New Zealand, Australian, and US cheese in China appears to be the result of a number of different factors. To a certain extent, this can be put down to simple cost advantages—freight costs from the Australasian nations and the US West Coast to China are significantly lower than from Europe. Similarly, New Zealand’s leading position may partly be attributable to its free-trade agreement with China, which has lowered tariffs on dairy products. Australia will gain a similar advantage this year after agreeing its own free-trade agreement with China in November. However, a more important factor is the nature of the Chinese market. Demand for food service and processed cheese far outstrips demand for retail products, and with around 250 Pizza Huts opening in China each year (not to mention the proliferating number of domestic pizza chains), this trend is likely to continue for the foreseeable future. The much higher average price of cheese imports from France, Italy and Denmark compared to Australia, New Zealand and the US—US$8,166/tonne vs US$4,855/ tonne—indicates that Europe is continuing to focus on exporting retail products.

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FOCUS FEATURES Chiot's Run

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

Since ‘Reform and Opening’, China has embraced a whole series of Western products that at first seemed ill-suited to the Chinese palate.

Wendkuni, California, US

Cheese is also popular among Chinese parents because it is often considered a ‘safe’ dairy product.

Year

Average number of searches for ‘cheese’ / day

2014

1,763

2013

1,437

2012

1,291

2011

1,054

Source: Baidu.com

and breakfast spreads. Dairy products have long been considered healthy by the Chinese—former Premier Wen Jiabao famously declared in 2006 that his dream was for every Chinese to be able to drink 1 jin (500 grams) of milk per day. Children’s cheeses are therefore often marketed to parents as health products, with manufacturers claiming that their high calcium content and added vitamins will aid children’s growth. Cheese is also popular among Chinese parents because it is often considered a ‘safe’ dairy product, more difficult to contaminate than liquid milk or yoghurt. A string of food safety scandals have eroded consumer trust in domestic dairy products, most notably the infamous 2008 melamine incident, when dairy group Sanlu was found to have intentionally laced its baby formula products with melamine in order to cut costs, leading to the hospitalisation of over 50,000 infants and six deaths. The Chinese government has introduced a number of reforms in an attempt to repair the image of the dairy industry, but this has only been partially successful and Chinese consumers are still paying a premium for foreign brands that are considered safer—imports of liquid milk, milk powder, and baby formula increased 95 percent, 49 percent and 34 percent year-on-year respectively in 2013. The perceived safety of cheese products provides an opportunity for both domestic and foreign manufacturers, but foreign companies can gain an advantage if they successfully position themselves as premium brands, and/or narrow the price difference between their products and those of their domestic competitors through the use

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of ecommerce websites—a tactic that has worked very effectively in the liquid milk sector. ‘DIY’ CHEESE But what about more traditional retail cheese products— is China on the verge of becoming a nation of cheese connoisseurs? It is still too early to say, but there are signs that China is starting to develop a cheese culture of its own. Baidu. com, China’s largest Internet search engine, has reported a 60 percent increase in searches for the word ‘cheese’ in the last three years, indicating that an increasing number of Chinese are starting to see cheese as more than just a pizza topping or baked good filling. Over half of China’s Internet users are under 30, so it appears that much of this increased interest in cheese is being driven by what the Chinese call ‘post-80s’ and ‘post90s’—young people born in the 1980s and 1990s, after the end of Maoism. Additionally, ‘DIY food,’ or home baking, has become fashionable among these more outward-looking generations, particularly dishes such as ‘baked sweet potato with cheese’ and ‘baked broccoli with cheese,’ and this is helping to drive sales of cream cheese. As more ‘post-90s’ enter the labour market, this trend is likely to accelerate. Whether Chinese tastes change radically enough to create a mass market for hard cheeses is another matter, but since ‘Reform and Opening’, China has embraced a whole series of Western products that at first seemed ill-suited to the Chinese palate, including cola, hamburgers and, of course, pizza, it is too early to dismiss that thought. Just 15 years ago, it would have been hard to imagine that China would become the biggest market for red wine in the world by 2014. Maybe in another 15 years, the children who today are eating Milkana while watching Tom and Jerry will be hooked on Stilton, Gorgonzola, and Roquefort. For more information, ENTER No: 0281

5/3/15 2:35 pm

WofA15 205x275mm APFI Mar15 Ad.ai

2/2/15

5:25 pm

www.worldoffoodasia.com

CMY

Experience the 20. - 24.05.2015 Challenger Hall 1,2,3 IMPACT Forum Exhibition Hall 9 IMPACT Exhibition and Convention Center Bangkok, Thailand

3822

Enquiry Number

International Trade Exhibition for Food & Beverages, Food Technology and Retail & Franchise in Asia

EVENT HIGHLIGHTS

Presents

COMPETITIONS • Thailand Ultimate Chef Competition • WACS Global Chefs Challenge Semi-Final Continental Competition

Endorsed by Koelnmesse Pte Ltd Lynn How (Ms) Tel: +65 6500 6712 Fax: +65 6294 8403 l.how@koelnmesse.com.sg

3822 ThaiFex.indd 1

OTHER ACTIVITIES

CONFERENCES • Asian Food Franchising Forum • World of Food Safety Conference

• • • •

Boncafe Seminars Celebrity Coffee Bar ‘Out of The Box’ by La Mazocco SCAE Certified Coffee Training

Jointly organized by

The Thai Chamber of Commerce

3/3/15 9:02 am

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MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

LABELLED FOR INTEGRATION THE AEC MAY BE LOOMING NEAR, BUT THE LACK OF HARMONISED STANDARDS AND REGULATIONS STILL SERVE AS A TRADE BARRIER THAT PREVENTS THE FOOD INDUSTRY FROM REALISING ITS FULL POTENTIAL. BY SHERLYNE YONG Upon its formation, the AEC will transform ASEAN into a region with free movement of goods, services, investment, skilled labour and a freer flow of capital. It plans to achieve this by creating the following: (a) a single market and production base, (b) a highly competitive economic region, (c) a region of equitable economic development, and (d) a region fully integrated into the global economy. In particular, food and agriculture has been marked as one of the two priority integration sectors that the

AEC is looking at. After all, around 38 percent of ASEAN’s population is employed in this sector. “Currently, the sector only contributes 4.3 percent of the value of total ASEAN exports and only 2.5 percent of total intra-regional trade. The value of ASEAN agri-food exports has grown steadily since 2008, rising from US$38.2 billion to US$53.25 billion in 2011, but there remains significant untapped potential,” said Pushpanathan Sundram, principal advisor to the ASEAN Food and Beverage Alliance (AFBA) and former Deputy-Secretary General of ASEAN. He believes that much more can be done since the agri-food sector

Prachanart Viriyaraks, Bangkok, Thailand

ON August 8, 1967, five countries came together in Bangkok, Thailand, to form a collective that sought for collaboration, economic and social growth, as well as peace and stability in Southeast Asia. Together, Indonesia, Malaysia, Philippines, Singapore and Thailand became the founding fathers of the Association of Southeast Asian Nations (ASEAN). Nearly five decades on with another five more member states (Brunei, Vietnam, Laos, Myanmar and Cambodia) joining the fore, the association is seeking a new frontier—regional integration through the ASEAN Economic Community (AEC).

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takes up only a small portion of total ASEAN exports, despite it achieving the highest growth rate in 2011. Trade is also likely to increase due to rising populations, an emerging middle class, and a growing industry in the region. With the sector influencing much of growth, trade, investment and employment among ASEAN nations, it makes sense for the industry and governments to work towards a free flow of agriculture and food products. To achieve this and enjoy the benefits of regional integration however, the food industry must first overcome what is arguably its biggest impediment—variances in food standards and labelling. FOOD STANDARDS To safeguard consumer interests and public health, governments typically rely on food standards to ensure that potentially harmful substances are restricted in products meant for public consumption, and that consumers have adequate information to make informed choices. The type of food standards and regulations that governments impose include, but are not limited to, product characteristics s u c h a s i n g re d i e n t s , w e i g h t , size, performance, labelling and packaging styles. Food standards and regulations keep food producers in check, uphold product quality, and may help to facilitate trade between countries. I n A S E A N ’s c a s e h o w e v e r, standards and regulations serve as a technical barrier to trade rather than a boon. According to Umran Beba, president of Food Industry Asia, the problem is not one of safety, but consistency. “One of the greatest impediments to trade today is differing food standards across ASEAN, which act as a technical barrier to the free flow of food products. ASEAN as a region

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needs to work towards a mutually acceptable set of food standards to encourage a single market approach to the food industry,” she said. There are significant differences in regulator y requirements among the member states, and manufacturers will have to comply to a host of varying standards even if they were exporting the same product. This has led to manufacturers and exporters viewing ASEAN as 10 separate markets with its own set of regulations rather than a single entity, despite it being a regional bloc. Ultimately, this technical barrier will not only reduce trade in the region, but also limit choices for consumers and lower the region’s overall competitiveness. VARIANCES IN LABELLING O n e o f t h e m a i n a re a s w h e re variances occur is in nutritional labelling. Manufacturers often have to rehash product development or packaging to fit the labelling requirements of the country they are entering.

According to AFBA, some of the common challenges faced in this area are variances in mandatory and voluntary labelling requirements, minimum and maximum limits for vitamins and minerals, tolerance levels, and nutrition reference values (NRV) in relation to health claims and nutrition panel formats. For instance, apar t from Malaysia, nutrition labelling is mostly voluntary except for selected food items. In Indonesia, nutritional labelling is only mandatory for foods that claim to be enriched or fortified with vitamins, minerals and other nutrients, while in Singapore, it is only compulsory when nutrition claims are made. In a case study released by AFBA, it was revealed that a company with a manufacturing base had to formulate its product using four different recipes just to enter eight target markets. This was due to the differing maximum and minimum limits for vitamins and minerals in each market, which inadvertently increased the complexity of recipe management, costs and timeframe

Nutrients to be included in Nutrition Information Panel Indonesia

• Five core nutrients: energy, fat, protein, CHO and sodium, and nutrients as claimed • Nutrients that are mandatory under specific requirements: energy from fat, saturated fat, trans fat, cholesterol, dietary fibre, sugar, vitamin A, vitamin C, calcium and iron. • Other nutrients that are fortified in accordance with regulations

Malaysia

• Four core nutrients: energy, fat, protein and CHO

Philippines

• Four core nutrients (energy, fat, protein and CHO) and nutrients as claimed • Nutrients to be declared for fortificants of fortified food

Singapore

• Four core nutrients (energy, fat, protein and CHO) and nutrients as claimed

Thailand

• Full format comprises four core nutrients (energy, fat, protein and CHO), saturated fat, cholesterol, dietary fibre, sugar, sodium, vitamin A, B1, B2, calcium, iron and nutrients as claimed • Simplified format includes the four core nutrients as well as sugar and sodium

Source: Food & Nutrition Consultants

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MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

involved, as the various markets had different testing parameters, safety and efficacy requirements. At the same time, variances in tolerance levels pose an additional challenge to manufacturers who are using a single recipe across countries. For instance, most ASEAN countries require that the product contain at least 80 percent of the declared value of nutrient. But different requirements are imposed for naturally occurring nutrients as opposed to fortified ones, such as in Singapore, where fortified foods must contain 100 percent of the declared nutrient value. Due to the variances, manufacturers often adhere to the strictest requirements in a bid to save cost while gaining access to more than one market. Despite this, there are still cases where incurred costs are unavoidable. Customising labels is one such area. Companies have to make alterations to their packaging even if the recipe is the same, because some countries require the percentage of NRV to be stated on nutrition fact panels, but NRVs differ between countries. HARMONISATION As evident by the examples above, the regulations and standards among Southeast Asian nations are far from being interchangeable. Even if all legislation was drafted based on the same guidelines and follow the same principles of hygiene, food safety, and consumer protection, inherent differences apply due to national requirements. And this, if not addressed, can prove to be an obstacle to trade in the region, with an adverse impact on the region’s vision of a singular market. Without the harmonisation of standards, all the efforts that ASEAN member states have previously put into removing tariff barriers will come to naught. In a paper, Simon Pettman from

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Europian Advisory Services (EAS) suggested that ASEAN member states could do the following: (a) Harmonise national standards with relevant international ones, such as the Codex Alimentarius; (b) Encourage participation in the development of international standards, especially those that are relevant to ASEAN trade; (c) Adopt conformity assessment procedures that are in keeping with international standards and guides, or keep differences to a minimum wherever full conformity is not possible because of differences in

legitimate objectives; (d) Put into practice Mutual Recognition Arrangements (MRAs) in regulated areas where appropriate, using the ASEAN Framework Agreement on MRAs as the basis and; (e) Encourage cooperation among National Accreditation Bodies and National Metrology Institutes in ASEAN to enable the implementation of MRAs. For instance, nutritional labelling is only mandatory in Singapore when health claims have been made, even though the Codex has updated

5 PRIORITY AREAS HARMONISATION FOOD STANDARDS HARMONISATION According to the ASEAN Food and Beverage Alliance (AFBA), the following are five areas that governments and organisations should work on to achieve true integration in the food industry. 1. Nutrition labelling – the labelling of products differs from country to country, including guidelines for standards on limits for minerals, variances in NRV and Nutrition Information Panels. By standardising one ASEAN format or recognising ASEAN Member State formats in the region, companies can export products quickly and with ease. 2. Pre-market registration – some countries require pre-market registration (as opposed to post-market notification) for a product which requires all product information and packaging to be submitted prior to a product being approved for sale.This can significantly delay bringing a product to market, which increases costs for companies operating across multiple countries.This could be overcome by a single market registration that is recognised across ASEAN. 3. Import/Export Certification – Currently, companies that import or export food products across multiple ASEAN markets are required to complete inspection and certification in each country where a product is traded. Given there are many similarities across ASEAN and common international guidelines for this process, the recognition of a common process from one country to another will significantly reduce resources invested in completing this process. 4. Authorisation of food ingredients and additives – There is no standard approval process for an authorised ingredient in one country to be marketed or sold in another country.Through a common standard, ASEAN can enable the industry to develop a standard product for the ASEAN region. 5. Contaminant limits and analytical methods – There are no uniform standards around contaminant limits among member states and often the analytical method for testing may vary. By harmonising this process, companies can simplify product formulation and development across ASEAN, while continuing to protect consumer safety.

9/3/15 2:52 pm

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Moving forward, the next step that ASEAN can take is to develop MRAs on: standards, additives and contaminants, so that products which comply with regulations in one country are considered as such across the board; and labelling, so that manufacturers and distributors can do away with the extra costs and effort involved with customising labelling for specific markets. A t t h e e n d o f t h e d a y, t h e harmonisation of standards and regulations will do much more than eliminate the barriers faced by the food industry. It will benefit consumers by giving them more choice, nations by boosting economic growth, and the region, by bringing it closer to the rest of the world through the creation of a single, open market that is easy to trade with. For more information, ENTER No: 0282

Enquiry Number

i t s g u i d e l i n e s t o re c o m m e n d compulsory nutrition labelling even without health claims, in light of the fact that the world is gradually moving towards mandatory nutrition labelling. While harmonisation is touted as one of the last building blocks toward a single ASEAN community, it is understandably a lengthy process due to the nuances involved. In the meantime, MRAs are used to recognise equivalents despite differences in regulations between jurisdictions. One such example is the mutual recognition of test results and certificates among member states by the ASEAN Consultative Committee for Standards and Quality (ACCSQ), w h i c h s i m p l i f i e s p ro c e d u re s and reduces transaction costs. Companies often incur extra costs from duplicative testing procedures that stem from different conformity assessment systems.

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Jessica Rabbit, Cheltenham, England

MANUFACTURERS OFTEN HAVE TO REHASH PRODUCT DEVELOPMENT OR PACKAGING TO FIT THE LABELLING REQUIREMENTS OF THE COUNTRY THEY ARE ENTERING.

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CONCILIATING EU REGULATIONS WITH INTERNATIONAL LAWS

Ginny, US

Shelly, Indiana, US

THE EU INTRODUCED A NEW FOOD LABELLING REGULATION AT THE END OF 2014. HOW WOULD THIS IMPACT FOOD AND BEVERAGE COMPANIES AND HOW SHOULD THEY REACT TO THIS NEW CHANGE? BY MAUD NAUGE, MANAGER, INTERTEK FOOD LABELLING CENTER OF EXCELLENCE

ON December 13, 2014, a new European Regulation on food labelling (referred to as the Food Information Consumer Regulation) has entered into force. The Act, supported by both European Parliament and member states, is bringing new requirements to enhance consumer understanding of food labels, through clear and concise product information. In particular, the new requirements focus on legibility, allergens and nutritional facts declaration. I n t o d a y ’s c o n t e x t , a l l f o o d s u p p l i e r s a n d manufacturers will need to face the challenge to ensure their labels comply with the regulations of the countries where their products are sold, and in addition, optimise their artwork design process. For the operators who intend to sell their products in Europe, these new changes might result in their current labels being adapted. Furthermore, in the context of international trade, it is fair to question whether this new regulation will work in harmony with other

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international laws—or if it will introduce completely new requirements. If we look at how regulations are organised and linked between each other, we should start with the Codex Alimentarius, an international body set up in 1963 by the Food and Agriculture Organisation (FAO) and the World Health Organisation (WHO). DIFFERENT INTERPRETATIONS & IMPLEMENTATION The Codex has already developed general food labelling standards and guidelines to harmonise international practices but these guidelines are unfortunately not mandatory. Subsequently, in practice, there is a degree of interpretation and implementation that can differ from one country to another, which can be influenced by a variety of cultural factors as well as the consumer habits. For instance, Canada follows the rules given by the Canadian Food Inspection Agency (CFIA) and the Food and Drug Act Agency (FDA), while the US follows the

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Food and Drug Administration (FDA) and US Department of Agriculture (USDA), Europe, the Regulation EU n° 1169/2011, the Middle East, the GCC rules, China, the GB standard 7718-2011, and so on. As a consequence, even if most food labelling legislations are based on Codex Alimentarius guidelines, countries will apply them differently due to national requirements.

from a minimum of 15 percent cacoa liquor; no vegetable fat (other than cacoa butter) is allowed. 2. ONE SIMILAR LANGUAGE, BUT DIFFERENT WORDINGS.

For instance, US English is not the same as UK English; European French is different to that of Canadian French as well.

EXPORTING PRODUCTS TO DIFFERENT MARKETS In this context, exporting one product to a number of different areas is still an important challenge, with variable consequences for a non-compliant label. In such processes, it is very important to understand exhaustively the ins and outs of the implementation of compliant labels. Therefore, the following decision schema can be followed:

3. COMMON GENERAL REQUIREMENTS BUT DIFFERENT LABELLING CONTENTS.

1. Identify the export country. 2. Assess if the products can be accepted and sold in the given countries 3. Assess if the labels need to be adapted 4. In case of multi-countries, assess how the labels artworks designing process can be optimised.

But to some extent, labelling contents will still differ. For instance in the US, the quantitative ingredients declaration is not mandatory whereas in Europe, the nutritional table will definitely become mandatory on December 13, 2016—except for specific cases.

If we consider Europe, the US and China for example, all three countries will request for labels to be written in the language of their consumers, even if the general requirements are the same, such as to have a product name, ingredients list, net quantity or volume, and the name of the structure responsible for the product.

In order to work efficiently and achieve the above objectives, applicable national standards on food labelling and presentation, including products specifics, need to be perfectly known and is an integral part of the compliance process. In theory, the structure of food labelling regulations is relatively similar worldwide. On the one hand, there are the basic requirements including mandatory mentions which must be applied (such as product name, ingredients list), as well as the optional ones, such as the nutritional table. Product specifics also need to be added. On the other hand, in practice, there are significant differences which need to be noted. Both mandatory and optional requirements can vary from country to country, depending on the interpretation of the regulation requirements within each country. To demonstrate this complexity, we can take some examples:

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Enquiry Number

The word ‘chocolate’ can illustrate this case pretty well. In Europe, ‘chocolate’ refers to the product obtained from cocoa products and sugars which contains not less than 35 percent total dry cocoa solids, and vegetables fats (other than cacao butter) are allowed within a content of five percent. While in the US, ‘chocolate’ is classified either as ‘sweet chocolate’, ‘semi-sweet chocolate’ or ‘bitter sweet chocolate’, and refers to a product obtained

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1. ONE WORD, BUT DIFFERENT STANDARDS.

5/3/15 3:24 pm

FOCUS FEATURES Jaypeg, Cambridge

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

Ensuring compliance of food labels is more than ever a prerequisite to maximise consumer safety, minimise the risk of penalties or withdrawals from the local authorities, and to respect the basic requirement of never misleading consumers.

IN SUMMARY:

Language will have to be adapted for the destination countr y. It is important to ensure the technical translation is accurate, taking into account the wording and compliance with national regulations. • Legibility: The size of the characters can differ from 1.2 mm in Europe to 1.8 mm in China or 1.6 mm in US, whereas the Middle East only requests that characters are in a readable font size. Exceptions exist for small packages. • Field of vision: In Europe, the name and net weight has to be in the same field of vision. The US uses the same structure, where the name and net weight has to be in the same principal display panel. • Allergens: Authorised allergen lists are different from one country to another. It is then primordial to understand these different lists—a breach in the allergens declaration can have important consequences including for consumer safety. • The Net quantity is probably one particular area which is at the end, the most harmonised. The size of the net weight or net volume figures depends of the net weight or volume itself. For weights between 0 to 50 g, figures will have to be written in a font size of 2 mm minimum; between 50 and 200 g: 3 mm minimum; between 200 and 1,000 g: 4 mm minimum and above 1,000 g: 6 mm minimum. • Best Before Date (BBD): The date format can differ from a country to another. In the case of Europe, they work with either day/month/year or month/year format; whereas in the US, BBD is written as month/ day/year.

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Coincidently, Japan and China also have a different way of presenting the information with year/month/day format instead. Once again if BBD is not presented properly, it can completely mislead the consumers. • Nutrition Labelling: In recent years, the global trend has moved to a mandatory nutrition labelling regardless of whether a health or nutrition claim is made. In reflection of this trend, the Codex guidelines were amended to recommend a mandatory nutrition labelling even in the absence of health claims. Many countries that had voluntary guidelines in place have followed these recommendations. For example, China adopted a national standard for mandatory nutrition labelling, which took effect on January 1, 2013. The EU adopted in September 2011 the Regulation on Food Information to Consumers, which makes nutrition labelling mandatory as of December 13, 2016. All these elements show that there are still important differences between Europe and other international laws, and that, most of the time, adaptation of the labels is necessary. However, there are also items and particulars which can be gathered and combined depending on the designated countries, and this is also where optimisation can be considered. In this case, the protocol for decisions will be: 1. List the countries where the product is destined to be sold 2. Evaluate all the regulations to be taken into consideration 3. State on the non-negotiable items and validate the possible compatibility of the mentions present on a same label, and present them in the same field of vision 4. Decide the implementation of mono or multi language labels. Ensuring compliance of the labels is more than ever, a prerequisite to maximise consumer safety, to minimise the risk of penalties or withdrawals from the local authorities, and to respect the basic requirement of never misleading the consumer. In the context of fast media communication where any issue can be forwarded to a different part of the world within minutes, this is ultimately a question of securing the brand. For more information, ENTER No: 0283

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3843 Enquiry Number

3843 Propak Asia.indd 1

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FIVE COSTLY MISTAKES IN DISTRIBUTION AGREEMENTS A DISTRIBUTION AGREEMENT PLAYS A CRUCIAL ROLE IN ANY FOOD TRADING BUSINESS. HOWEVER, WITHOUT DUE PRUDENCE IN THE DRAFTING PROCESS, IT CAN BE BECOME A COSTLY PROBLEM. BY ANDREAS RESPONDEK, MD, RESPONDEK & FAN

OBVIOUSLY ‘everybody’ in the food industr y knows what the crucial commercial elements in a distribution agreement are. Despite this general and supposedly wide-spread knowledge, we see recurring costly drafting mistakes in distribution agreements in our daily practice on a regular basis. The goal of the following summary is to alert readers, based on practical examples, to certain typical drafting mistakes, without going too much into the ‘legalese’ of distribution agreements in general.

that China included only the Chinese mainland, but according to the official Chinese reading, Taiwan is part of China. Without going into a political discussion, what the flavour company should have done originally, is to limit the contract territory clearly to the People’s

Republic of China with the exclusion of Taiwan. The Chinese party then threatened to start arbitration proceedings with regard to an alleged breach of contract by the flavour company, claiming that the flavour company had granted rights

TERRITORY CLAUSES IN DISTRIBUTION AGREEMENTS

FIRST CASE EXAMPLE:

A company that is engaged in the flavour business negotiated and set up a new distribution agreement. The territory for the distribution area was marked as ‘China’. Shortly after the agreement was signed, the Chinese distributor started to venture into Taiwan to distribute the flavour company’s products there as well. Unfortunately for the Chinese company, the flavour company had already engaged an exclusive distributor for its products in Taiwan and when the existing Taiwanese distributor found out about the new set up and the Chinese company ‘ploughing’ in the Taiwanese market, the Taiwanese company immediately sent an official warning and complaint letter to the flavour company. The flavour company argued

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flavour company thousands of dollars.

that it could not have been granting, because there was already an exclusive Taiwanese distributor. Not wanting to invest in costly arbitration proceedings, the flavour company then settled the case with the Chinese distributor, by paying the Chinese distributor a substantial amount in settlement of the Chinese c o m p a n y ’s a l l e g e d b re a c h o f contract claims. When dealing with Chinese parties with regard to distribution agreements, it is therefore of utmost importance to decide whether Taiwan (and also Hong Kong / Macau) will be part of the distribution territor y or not. A proper wording in the distribution contract could have saved the

BEST EFFORTS CLAUSES SECOND CASE EXAMPLE:

A dairy company gave exclusive distribution rights for its products to a distributor to sell and distribute their products in about a dozen Asian countries. The contract merely stipulated that the distributor should use its ‘best efforts’ to sell the products in all countries. After three years, the dair y company discovered however, that its products were only on the market in two countries and their products were not available in any of the other countries where the distributor should have marketed and sold the products. As a consequence, the dairy company terminated the exclusive distribution agreement with immediate effect, alleging a fundamental breach. The matter went to arbitration and the tribunal held that the termination had occurred wrongfully, because the distribution agreement had only contained a ”best efforts” clause, without listing specific target numbers for each country.

To prevent such scenarios from repeating, when awarding exclusive distribution agreements, food companies should always clearly spell out in their distribution contracts (either within the contract or in an annex) clear minimum sales targets that need to be achieved for each year of the term of the contract. Only with such sales targets is there a clear yardstick to measure the performance of the distributor, and only with such objective criteria will there be some objective and rational measurement on whether or not the distribution agreement has been properly performed and fulfilled by the distributor. In addition, what could be added is that in case of non-fulfilment of the sales targets, the principal will have the right to either terminate the distribution agreement with immediate effect or transform the distribution arrangement from an exclusive one into a non-exclusive arrangement.

NET SALES FORMULA THIRD CASE EXAMPLE:

A distribution agreement for certain food additives contained a clause

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hugovk

Philipp Manila Sonderegger

When awarding distribution agreements, food companies should always clearly spell out in their distribution contracts (either within the contract or in an annex) clear minimum sales targets that need to be achieved.

10/3/15 10:03 am

FOCUS FEATURES Louis Vest, Texas, US

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

If a distribution agreement is drafted in two languages, only one single language should be taken as the controlling one. that the distributor would receive price reductions upon reaching a certain “net sales” threshold. After a year and a half, the distributor claimed that it had reached the ‘net sales’ threshold and claimed, from then on, certain price reductions. The principal was however, of the view that these ‘net sale’ thresholds had not been reached yet and refused to grant the price reduction. A long, costly and demotivating exchange of emails took place with legal threats from both sides. This scenario could have been prevented from the outset, had the distributor added in his draft distribution agreement an example of how net sales are exactly to be computed. That is, do net sales refer to end-market prices or are net sales only the amounts invoiced from the principal to the distributor? And how about VAT, is it to be included or excluded from net sales prices? All these aspects should always be addressed in much detail as possible in a sample calculation in an annex to the contract.

CONTRACT LANGUAGE FOURTH CASE EXAMPLE:

A food flavour company had finally reached a consensus with regard to a distribution agreement in Thailand. There was only one final matter left to resolve; that is, the Thai distributor insisted that the agreement be drafted in the Thai language and the food additive company insisted that the

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agreement be drafted in English as it had no knowledge of Thai whatsoever. Both companies then reached a ‘compromise’ that both languages would equally apply to their distribution agreement. As expected, after some time, problems developed, because various parts of the agreement had been translated wrongly from English into Thai (in fact, as it turned out, some parts had even been omitted) and the Thai company insisted on the Thai version of the contract being applicable and the foreign company insisted on the English version as the controlling one. But since the parties had reached a ‘compromise’ that both languages would be equally valid, this was an argument that no side was in a position to win. It actually led to a complete deadlock. The lesson from this case is that if a distribution agreement is drafted in two different languages, only one single language should be taken as the controlling language. This is not only warranted in view of the completeness of the translation, but also with regard to the fact that it is not easy to translate certain specific legal terms (e.g. consideration) from English into another language where the legal system is not rooted in common law.

DIFFERENCES BETWEEN COMMON AND CIVIL LAW– ANY PRACTICAL RELEVANCE AT ALL? FIFTH CASE EXAMPLE:

A European confectioner y company from a civil law legal system drafted and entered into a distribution Agreement with a distributor in Malaysia, a common law country. In order to make sure that the Distributor fulfilled certain contractual covenants, the European company put certain contractual penalties into the contract. After some time, when the European company reached the

conclusion that certain breaches had occurred under the contract and advised the distributor that the contractual penalties were due, the Malaysian company refused to pay. So the European company went to court, only to find out that the court was of the opinion that the contractual penalties were invalid and not enforceable. The reason for the cour t’s opinion was that as a general matter, contractual penalties in common law countries are looked upon as being used ‘ad terrorem’ and therefore not enforceable. What would have been enforceable however would have been a ‘liquidated damages’ clause. The European company would have been well advised not to assume that all legal systems in the world are created equal, but that some significant (and if not properly observed) costly differences do in fact exist. Complications can also arise, if European food companies insert a choice of law clause into the distribution agreement, making the law of their European home country applicable to the contract in Asia as the law from their home jurisdiction is usually the law they are most familiar with. This approach also carries certain dangers, as some European jurisdictions award compensation to distributors after the termination of long term distribution agreements. Such compensation payments would not necessarily be available under the local law of the country, but are imported—unnecessarily—via the choice of law clause. To sum up, it pays to reach a certain degree of familiarity with the legal system where one plans to engage in a distribution agreement and to be most prudent when drafting the clauses referred to above. For more information, ENTER No: 0284

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THE UNSUSTAINABILITY OF SUSTAINABILITY SUSTAINABILITY HAS BECOME AN EXPECTATION OF CONSUMERS, BUT HOW WILLING ARE THEY TO PAY MORE FOR IT AND HOW MUCH DOES IT REALLY AFFECT THEIR PURCHASE DECISIONS? BY ROBIN DE ROOIJ, SENIOR RESEARCH MANAGER (SINGAPORE) AND SOURABH SHARMA, SENIOR MANAGER (US), SKIM GROUP

exhibit a strong interest in sustainable lifestyles. Although consumers have an expectation of sustainability, and prefer to focus on natural and organic ingredients, these attributes can ultimately affect the taste and cost of the product. How can food brands communicate and deliver sustainability in a meaningful, enlightening and compelling way without undermining the fundamental offering? Through a meta-analysis of claims across a wide range of categories, including foods and nutritionals, it is discovered that the majority of consumers find sustainability concepts appealing, but not to the extent of driving purchases. On-pack messages that focus solely on the sustainable or green aspect of a product are significantly more appealing compared to messages that highlight only product benefits. Unfortunately, differentiation can be short-lived in a world where every company is jumping on the

Camilo Rueda López, Bogota, Columbia

CONSUMERISM sustains the food industr y, yet consumption, by its very nature, is unsustainable. However pure the intentions, the information overload surrounding sustainability in food threatens to become its undoing. Ask the average grocery shopper if they understand the terminology being hurled at them. You will hear that ‘sustainable’ is a mission, not an indication of quality or taste; ‘natural’ has become a dubious phrase; ‘organic’ is purity sans taste; and ‘green’ is simply jargon. With so much scepticism, how does one market to consumers, who by all counts are genuinely seeking more authentic food products? Sustainability is most certainly not a fad; it is an expectation. Consumers expect brands to be good stewards of the environment, careful with the animals we consume, and genuine in their concern for human health. A third of consumers look to product labelling for environmentally friendly evidence, and a growing number

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bandwagon. Maybe even more importantly, the ultimate moment of truth happens at the point of sale, and we are learning that messages that focus only on sustainability are noticeably less effective at driving purchase behaviour than those that highlight product benefits. There are many ways—some more effective than others—that a food brand can project sustainability: •

A HEALTHIER LIFESTYLE

Western consumers are increasingly choosing natural products as part of an overall healthier lifestyle, while in many Asian markets, this has long been a fundamental part of food and shopping. Natural ingredients are considered healthier, which is why multinationals like Unilever focus on partnering with sustainable certified producers for their raw materials. •

A COMMITMENT, BUT NOT A DRIVER:

Sustainable efforts—whether working with local farmers to deliver organically sourced ingredients or supporting an international organisation—are often perceived to be something that every company should do, but largely irrelevant as part of the purchase decision-making process. At the end of the day, taste is the most critical and subjective element, and often overrides other aspects.

•

A MISSION:

Many companies have sustainability built into their DNA. Consumers expect companies to be ethical and sustainable without having to think about it too much. It is only when a company clearly breaches that expectation that consumers push back. Many of the world’s leading brands have experienced consumer backlash regarding unsustainably sourced ingredients. For example, Nestlé was pushed to switch to environmentally friendly palm oil after a social media guerrilla campaign against the use of palm oil that causes deforestation. •

A PRICE TAG:

Green, organic and sustainable products are generally expected to be more expensive. This can be a reason to tone down the sustainable claims, especially when targeting the large pool of lower income households in developing markets. Brands will need to evaluate the trade-off in marketing sustainability of products and being able to compete at the right price point. At the same time, a growing middle class demanding high quality products is showing that they are willing to pay a price premium for natural products. 4 TIPS FOR COMMUNICATING SUSTAINABILITY •

CONSUMERS EXPECT COMPANIES TO BE ETHICAL AND SUSTAINABLE WITHOUT HAVING TO THINK ABOUT IT TOO MUCH.

RE-EMPHASISE TASTE

Over and over again, it is found that in food categories, the key driver is taste. Despite notions that food brands should differentiate, the distinctions may be better portrayed in visual and media campaigns. The fundamental of any consumer directed message should always be related to taste. Any opportunity for a brand to tie sustainability to improved taste is valuable and should be leveraged.

World Resources Institute

Over and over again, it was found that in food categories, the key driver was taste.

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An on-pack claim must be centred on something important to consumers and make a clear value promise that will drive purchase.

An emphasis on sustainability may not be as motivating to consumers, but such claims are not generally rejected in totality.

For example, ice cream made with real vanilla beans and organic red bean paste in dessert foods both imply elements of improved taste. A potential claim for these could read ‘Creamier texture with sustainably harvested vanilla beans’ or ‘A richer taste with organic red bean paste.’ •

PUT THE KEY BENEFIT FIRST; THEN TIE ‘SUSTAINABLE’ TO IT

An on-pack claim must be centred on something important to consumers and make a clear value promise that will drive purchase. An emphasis on sustainability may not be as motivating to consumers, but such claims are not generally rejected in totality. This provides an opportunity for marketers to make such claims more meaningful by tying the sustainable element in with a key benefit of the product. Does it make it fresher? Tastier? Healthier? For example, pointing out ‘Fresher taste from sustainably sourced oats’ is more compelling than ‘Made with sustainably sourced oats,’ since it ties the appealing benefit to the reason to believe and puts them in order of priority. •

BE SPECIFIC BY BEING SIMPLE

Sustainability can apply to various facets of the manufacturing and production process. To be clear and appealing to consumers, it is key that food manufacturers distinguish what the sustainability applies to: the process, the ingredients, or simply, the company philosophy. For example, a cereal manufacturer may harvest oats from sustainable sourcing via local farmers, while a dairy producer may incorporate sustainable processing standards in the creation of products.

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The differences are clear, and can contribute to different benefits: potentially better taste with both, or a better texture of product, or simply a more wholesome and healthy combination. Unilever’s ice cream division, as well as breweries such as Asia Pacific Breweries, focus on carbon footprint reduction. And Old Chang Kee recycles its used cooking oil and converts it to biodiesel, used by its own mobile shops. By being specific about which aspect is sustainable, sustainability is no longer a vague promise, but becomes something tangible to the consumers that they can relate to. •

PICK RELEVANT STIMULI TO INFORM CONSUMERS

Sometimes one can emphasise sustainability without leveraging claims. If the claim addresses taste, other elements can address sustainability. Successes can be found in pointing out sustainability through an on-pack sticker, a clear package (‘you can see the ingredients’) or in other advertising mediums. The claims writing process is becoming increasingly challenging in a world where consumers are inundated with stimuli and information in every possible context. While it is always recommended to focus a claim on a key benefit, brands must learn to creatively synchronise elements of environmental ethics and sustainability with a promise of taste and value in order to impact consumer decision behaviour.

For more information, ENTER No: 0285

6/3/15 10:55 am

EXHIBITION & EVENTS

MARCH 2015 ASIA PACIFIC FOOD INDUSTRY

PREVIEW:

IPACK-IMA Italy’s instrumental goods sector is worth over €11.5 billion (US$12.85 billion). Packaging machinery is the flagship segment of the industry with 48,000 employees and €6 billion in revenue, 83.1 percent of which is derived from exports. It is followed by material handling and logistics machinery (€3.9 billion, 71.6 percent from exports) and food processing machinery (€1.62 billion, 76.5 percent from exports). The packaging industry totals over €29 billion in revenue, of which €5.16 billion is generated outside of Italy. IPACK-IMA Where Fieramilano Country Milan, Italy Date May 19-23, 2015

IPACK-IMA, an international processing and packaging technology and material exhibition, will be held at Fieramilano in Milan, Italy, from May 19-23, 2015. The 2012 edition of the show registered a participation of over 54,000 visitors from 120 countries representing over 11,000 companies, and featured 1,300 exhibitors from 35 countries. The show is expected to bring in 2,500 exhibitors and 100,000 visitors in 2015. This year, six complementary trade shows will be staged concurrently with the event, including the introduction of three ‘vertical’ exhibitions specialising in meat processing (Meat-Tech), fruit and vegetables (Fruit Innovation) and dairy technology (DairyTech). In addition, Converflex and Intralogistica Italia will be jointly staged to provide a comprehensive display of processing, packaging, converting, printing and logistics equipment and technology.

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THE SHOW WILL CONTINUE ITS PARTNERSHIP WITH THE UN AND EXPLORE THE OBJECTIVE OF ACHIEVING ‘MORE TECHNOLOGY, SAFETY & QUALITY, LESS HUNGER’. Another special highlight is EXPO 2015, which will be held directly opposite the exhibition ground. With the theme of ‘Feeding the Planet-Energy for Life’, the expo will showcase 143 national and thematic pavilions. The ‘Processing & Packaging Innovation for a Sustainable Development’ convention is scheduled to be held on May 20, with the main issue under discussion being sustainability.

Going into its third edition, the show will continue its partnership with the UN and explore the objective of achieving ‘more technology, safety & quality, less hunger’ through an international symposium titled ‘Enhancing Food Safety and Food Security in African Countries. Packaging & Processing Technologies from the Farm’s Gate to the Consumer Table.’ _________________ Enquiry No: 290

9/3/15 2:55 pm

Virag Virag, Budapest, Hungary

3-5: COMPACK MYANMAR Tatmadaw Hall Yangon, Myanmar Enterprising Fairs (India) E-mail: packaging@efipl.in Web: www.compackexpo.com ❑ To Exhibit ❑ To Visit ❑ General Enquiry

MARCH 19-21: CAFÉ ASIA Marina Bay Sands Singapore Singapore Conference & Exhibition Management Services E-mail: mike@cems.com.sg Web: www.cafeasia.com.sg ❑ To Exhibit ❑ To Visit ❑ General Enquiry

24-27: ANUGA FOODTEC Cologne International Expocentre Cologne, Germany Koelnmesse E-mail: anugafoodtec@visitor.koelnmesse.de Web: www.anugafoodtec.com ❑ To Exhibit ❑ To Visit ❑ General Enquiry

31-2 APR: PROPAK VIETNAM Saigon Exhibition & Convention Center Ho Chi Minh City, Vietnam Singapore Exhibition Services E-mail: events@sesallworld.com Web: www.propakvietnam.com/en

15-18: FOOD & HOTEL INDONESIA Jakarta International Expo Jakarta, Indonesia Pamerindo Indonesia E-mail: wiwiek@pamerindo.com Web: www.foodhotelindonesia.com

1-3: FOOD INGREDIENTS CHINA National (Shanghai) Center For Exhibition and Convention Shanghai, China China Food Additives & Ingredients Association E-mail: cfaa1990@yahoo.com.cn Web: www.chinafoodadditives.com/d_e.htm ❑ To Exhibit ❑ To Visit ❑ General Enquiry

16-18: CHINA INTERNATIONAL FOOD PROCESSING AND PACKAGING MACHINERY EXHIBITION China International Exhibition Center Beijing, China Beijing JingMao International Exhibition E-mail: fengfeng99@vip.163.com Web: www.cifie-expo.com/en/index/index. asp ❑ To Exhibit ❑ To Visit ❑ General Enquiry

21-23: FOOD & HOTEL VIETNAM Saigon Exhibition and Convention Center Ho Chi Minh City, Vietnam Singapore Exhibition Services E-mail: fhv@sesallworld.com Web: foodnhotelvietnam.com/en/home/ ❑ To Exhibit ❑ To Visit ❑ General Enquiry

24: APFI KNOWLEDGE SERIES: AEC 2015 Pan Pacific Singapore Hotel Singapore Eastern Trade Media E-mail: cynthiachew@epl.com.sg Web: www.apfoodonline.com/ knowledgeseries ❑ To Exhibit ❑ To Visit ❑ General Enquiry

MAY

1-4: MIHAS KLCC Kuala Lumpur, Malaysia Matrade E-mail: enquiry@halal.org.my Web: www.mihas.com.my

5-7: VITAFOODS EUROPE Palexpo Geneva, Switzerland Informa Exhibitions E-mail: maria.sidiropoulou@informa.com Web: www.vitafoods.eu.com

❑ To Exhibit ❑ To Visit ❑ General Enquiry

*All details are subject to change without notice. Please check with organisers for updates.

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❑ To Exhibit ❑ To Visit ❑ General Enquiry

12-15: SEOUL FOOD KINTEX Seoul, South Korea Kotra E-mail: info@seoulfood.or.kr Web: seoulfood.or.kr/eng/main.asp ❑ To Exhibit ❑ To Visit ❑ General Enquiry

❑ To Exhibit ❑ To Visit ❑ General Enquiry

APRIL

6-8: SIAL CHINA Shanghai New International Expo Centre Shanghai, China Compexposium Web: www.sialchina.com

19-23: IPACK-IMA Fieramilano Milan, Italy Ipack-Ima SpA E-mail: ipackima@ipackima.it Web: www.ipackima.it ❑ To Exhibit ❑ To Visit ❑ General Enquiry

20-22: FI VIETNAM Saigon Exhibition and Convention Center Ho Chi Minh City, Vietnam UBM E-mail: rose.c@ubm.com Web: www.figlobal.com/vietnam/home ❑ To Exhibit ❑ To Visit ❑ General Enquiry

20-24: THAIFEX—WORLD OF FOOD ASIA IMPACT Exhibition and Convention Center Bangkok, Thailand Koelnmesse E-mail: l.how@koelnmesse.com.sg Web: www.worldoffoodasia.com ❑ To Exhibit ❑ To Visit ❑ General Enquiry

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China's most important gathering for food & beverage ingredients 24 â&#x20AC;&#x201C; 26 June 2015 SNIEC, Shanghai, China @Fi_Global Food ingredients Global

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Lydia Ma T: +86 21 3339 2280

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中国食品添加剂和配料展览会 2015年4月1-3日国家会展中心（上海）

Food Ingredients China 2015 April 1-3, 2015 National Exhibition and Convention Center (Shanghai)

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BASF booth: 3H40/3J41, Hall 3

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