GAINING GROUND IN NEW MARKETS
FIND OUT HOW YOU CAN MAXIMISE YOUR COMPANY’S POTENTIAL IN NEW MARKETS
ALSO INSIDE
JANUARY/FEBRUARY 2014 Design • Fo ing od g S ka MA
onisation • H rm ea Ha lt
FUNCTIONAL FOOD: PERCEPTION VS REALITY p42 MAXIMISING THROUGH OPTIMISING p65
n
• Innovativ eP ood F ac hy
ECOASIA’S OUTNOMIC L 2014OOK p58
Safety • ty & As uri ea ec
RKE T RE POR T
FOOD & BEVERAGE WAREHOUSE p62 AUTOMATION
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EDITOR’S NOTE 2 managing director Kenneth Tan
Get ready for chanGes The new year is here and so far, the data of last year has shown that the global economy is recovering. As we look forward to what the year 2014 has in store for us, we took a look at how the region performed in 2013 and what we can expect in the next twelve months (pg 58). What we can be certain of is that together with optimism, the year will also bring a lot of changes. As the authorities continue their work on ASEAN harmonisation, more changes in standards and regulations will emerge. At the same time, given the numerous food scandals and issues last year, countries are beginning to tighten the control and supervision of food products. Concerns over food safety and security have really come to the forefront and organisations, such as the FAO, are making concrete efforts in eradicating hunger around the world. Their efforts are set to continue and intensify in the coming months. With their confidence shaken, consumers are now more vigilant about the food they take, and preferences for ‘natural’ and ‘clean’ products will continue to grow. It is interesting to note that people are now willing to move away from major brands and buy products that they perceive as ‘safer’ or more ‘nutritional’. Being ‘healthier’ has a main advantage in the market and as a result, major manufacturers are looking into ways to make their products less ‘hazardous’ from what the media has portrayed them to be. This means that more products with claims such as reduced sugar or calories are likely to appear on store shelves. All these changes will lead to greater challenges and more opportunities. The APFI team would like to take this opportunity to wish you a prosperous year ahead.
editor Wong Tsz Hin wongtszhin@epl.com.sg assistant editor Sherlyne Yong sherlyneyong@epl.com.sg editorial assistant Audrey Ang audreyang@epl.com.sg assistant art director Ahmad Halik
ahmadhalik@epl.com.sg
business development manager Randy Teo randyteo@epl.com.sg publication manager Peh Sue Ann sueannpeh@epl.com.sg advertising sales manager Jermine Lim
jerminelim@epl.com.sg
senior circulation executive Brenda Tan brenda@epl.com.sg contributors Adeline Tan Cindy Hazen Julian Money Ken Ruehrdanzm Niklas Andersson Phil Makowski Richard Paradine Roger Treacher Sarah Romotsky Yannick Foing Yi Fan Jiang 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
executive board chairman Stephen Tay group executive director Kenneth Tan executive director Lum Kum Kuen
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CONTENTS
JANUARY/FEBRUARY 2014 ASIA PACIFIC FOOD INDUSTRY
6
PROCESSING
•
PACKAGING
•
FLAVOURS & ADDITIVES
www.apfoodonline.com
•
38
Turn Simple Staples Into Nutritious Food
STORAGE & HANDLING
volume 26 no.1
34 Cracking The Reduced Sugar Mystery
PACKAGING & PROCESSING 26
Packaging The Future
With growing public awareness on food waste, authorities and manufacturers are stepping up their efforts in trying to reduce wastage. Fresh thinking on packaging designs can go a long way in this pursuit. By Julian Money and Richard Paradine, Rapid Action Packaging
30
38
INGREDIENTS & ADDITIVES Cracking The Reduced Sugar Mystery As consumers become more conscious about their sugar intake, food and beverage manufacturers have to find ways to reduce both sugar and calorie contents. Sweeteners offer good options, but their properties must be understood to derive the best applications. By Cindy Hazen for Steviva Ingredients
Turn Simple Staples Into Nutritious Food Food fortification can value add products and give producers a competitive edge, but the process is often complicated and challenging. Staple food fortification on the other hand is simple, safe and affordable. In addition, it can contribute to the health of the society without changing the people’s diet. By Yannick Foing, DSM Nutritional Products Asia Pacific
Finding The Most Effective Design Conveying and distribution systems can affect the efficiency of a production line. Operators should consider these top ten factors before purchasing systems to get the best returns. By Roger Treacher, tna
34
HEALTH & NUTRITION
42
46
BEVERAGE 46
The Winning Formula With the lack of consumer confidence over baby formulae in China, the affluent public is relying on imported products. However, stricter regulatory controls and regulations are set to change the milk powder landscape in the future. By Yi Fan Jiang, EAS Strategic Advice-Asia office
Functional Food: Perception Vs Reality A survey commissioned to study Americans’ awareness of and attitudes toward functional foods provides insights to how consumers perceive these products. By Sarah Romotsky, International Food Information Council
The Winning FORMULA
50
Reading The Future With Tea Leaves Grown mostly in Asia, tea is one of the most popular beverages in the world with many health benefits. As researchers in the Netherlands have discovered, it can also provide a glimpse into the health of the planet. By Adeline Tan, Netherlands Foreign Investment Agency
with our top-quality, customized micronutrient blends, mean we are ideally placed to add value to our customers’ products, giving them a competitive advantage and enabling them to make their own important contribution to improving public health in their communities. www.dsm.com
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Improving public health is a wise investment in the future of any society, because a healthy population is not only happier, it is more productive. At DSM we are fully committed to improving public health, supporting food producers and suppliers, regulatory authorities and other stakeholders with our unique competencies and innovative solutions. Our scientific, technological and regulatory expertise, together
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CONTENTS
JANUARY/FEBRUARY 2014 ASIA PACIFIC FOOD INDUSTRY
8
PROCESSING
•
PACKAGING
•
FLAVOURS & ADDITIVES
www.apfoodonline.com
FEATURES 54
65
Gaining Ground In New Markets
Asia’s Economic Outlook 2014
70
12 Drivers For Food & Beverage Warehouse Automation Ken Ruehrdanzm and Phil Makowski from Dematic discuss the 12 factors that drive food & beverage retailers and wholesalers toward automation.
Learning From The Bull Fighter Even with the emergence of culinary tourism, many still find it hard to link the food and beverage industry with the tourism industry. However, these two segments are actually closely linked together and there is great potential for them to complement each other. By Wong Tsz Hin
EXHIBITION WATCH 74 75 76 77
10
Refer to Advertising Index on Pg
for Advertisers’ Enquiry Numbers
Maximising Through Optimising Many companies understand the benefits of optimisation, but are not aware of the complexity involved in good implementation. Advances in technology have created programs that can consider multiple factors and formulate the most effective plan. By Niklas Andersson, Optimity
The data from 2013 showed encouraging signs from the US and Japan. China performed better than expected in the closing stages and Asia looks upbeat for the year ahead. By Asian Development Bank
62
STORAGE & HANDLING
volume 26 no1
A natural progression of growth and expansion is to enter new markets. While seemingly straightforward, achieving this in the right manner requires an alignment of product positioning with suitable markets, the right partners, and the optimal mode of entry. By Sherlyne Yong
58
•
Bio Fermentation China Propak Vietnam Fi China Alimentaria
54 Gaining Ground in New Markets
DEPARTMENTS 02 10 12 22 79 80A 80B
Editor’s Note Advertiser’s List Business News Product Highlights Calendar Of Events Reader’s Enquiry Form Subscription Information
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ASIA PACIFIC FOOD INDUSTRY ADVERTISING INDEX ENQ NO
ADVERTISERS
PAGE
ENQ NO
ADVERTISERS
PAGE
3330
BRADY CORPORATION ASIA PTE LTD
33
3603
INTERPACK 2014
13
3615
CAFE ASIA 2014
51
3614
KHS ASIA PTE LTD
17
3518
CENTRAL FILTER MFG CO LTD
45
3606
KRONES AG
29
3609
CLEARPACK SINGAPORE PTE LTD
4&5
6052
PIAB ASIA PTE LTD
80
3607
DSM NUTRITIONAL PRODUCTS ASIA PACIFIC
7
3523
PROPAK ASIA 2014
78
3605
FLEXICON CORPORATION (AUSTRALIA) PTY LTD
3
3613
SCHAEFER SYSTEMS INTERNATIONAL PTE LTD
1
3604
FOOD & HOTEL ASIA 2014
41
3601
SIAL CHINA 2014
53
3612
FOOD INGREDIENTS ASIA-CHINA 2014
49
3505
SIDEL GROUP
OBC
3491
FOOD INGREDIENTS CHINA 2014
25
3602
STATEC BINDER GMBH
15
3616
FOOD INGREDIENTS VIETNAM 2014
73
6053
TCP PIONEER INCORPORATED
80
3506
GEBO CERMEX (THAILAND) CO LTD
21
3492
THAIFEX - WORLD OF FOOD ASIA 2014
69
3610
GREEN HOUSE INGREDIENT SDN BHD
37
3608
WATERS CORPORATION
11
3611
HABASIT FAR EAST PTE LTD
IFC
3600
YAMATO SCALE CO LTD
IBC
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All the ingredients for the safest, highest quality food and beverages. Laboratories that make Waters an essential part of their food and beverage testing process always know what they’re getting. Innovative technologies that deliver safe, quality products more efficiently and cost effectively. Attribute it to a 50-year focus on innovation and a commitment to helping laboratories in every way. Analytically, scientifically, operationally. In the end, it’s all about stocking shelves around the globe with food and beverages that taste great every time. To discover what’s
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BUSINESS QuickBites
Asia Pacific’s Top News at a glance
Mondelez To Invest In India The company will invest US$190 million to establish its largest manufacturing plant in Asia Pacific. Hershey To Acquire Chinese Company Hershey will acquire 80 percent of Shanghai Golden Monkey Food Joint Stock, which achieved net sales of US$225 million in 2013 Olam Announces Vietnam Expansion Upgrades to the Vietnam spice processing facility include advanced technologies such as cryogenic milling and sterilisation and pasteurisation systems. Veolia Unveils True Cost Of Water The methodology focuses on the financial implications of water-related risks for companies. FAO Says Global Food Prices Are Steady For the second consecutive month, the cost of food worldwide remained nearly unchanged. PepsiCo Announces Investment In India Already one of the company’s biggest markets globally, a further US$5.5 billion will be invested in the country by 2020. Global Partnership To Tackle Food Security Supported by the World Bank, the program’s mission is to create a new paradigm of public-private collaboration for food safety capacity building. Whole Foods Found To Retain Toxic Metal Research shows that whole, unprocessed foods have a natural ability to retain toxic metals during digestion. Singapore Hosts Worlds Of Healthy Flavors Asia The two-day event brought together key players to share findings on healthier food choices without compromising Asian cultural preferences and flavours. IFF Makes Indonesian Investment Over US$50 million will be invested in the company’s flavours operations in Jakarta, Indonesia, which will include a new creative centre.
Mondelez To Invest In India IllInOIS, US: Mondelez International announced plans to invest US$190 million in the Indian state of Andhra Pradesh to establish the company’s largest manufacturing plant in Asia Pacific. The 134-acre multi-category food campus in Sri City will have an annual capacity of 250,000 tonnes in the end state, and will be the largest chocolate manufacturing plant in India. The first phase of the project is expected to be completed by 2015. “This investment in India is part of our ongoing supply chain reinvention plan,” said Daniel Myers, executive VP, Integrated Supply Chain. “We’re implementing a number of initiatives around the world to capitalise on the growing demand in emerging markets while also aggressively reducing costs and improving productivity. We’re pleased with our progress in the regions where we’ve already begun to invest.” Last September, he highlighted numerous initiatives to redesign the company’s supply chain to deliver US$1 billion in annual productivity savings over the next three years. These savings will be a primary driver of significant improvements in the company’s base operating income margin in the near term. “Over the last three years, we’ve invested nearly US$200 million to expand existing operational facilities in India,” said Manu Anand, president, India and South Asia, Mondelez International, and MD of Cadbury India. “We’re delighted to partner with the government of Andhra Pradesh on this new investment, which will help us build on our success in India and drive long-term business sustainability. We expect this model plant to set examples in production efficiency, energy savings, emission reductions and community involvement.”
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ASIA PACIFIC FOOD INDUSTRY JANUARY/FEBRUARY 2014
every innovation Has its
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08 –14 may 2014 interpaCK.Com
2013-12-01 interpack 2014_International_Allgemein_80 x 240 Satzspiegel_Asia Pacific Food Industry_4c_2991
PEnnSylVAnIA, US: Hershey, a global chocolate, sweets and refreshments manufacturer, has announced that its wholly-owned subsidiary, Hershey Netherlands BV, has signed an agreement to acquire 80 percent of Shanghai Golden Monkey Food Joint Stock (SGM), a privately held confectionery company based in Shanghai, China. Completion of the agreement is expected to occur in the second quarter of 2014 and is subject to China regulatory and the Chinese company’s shareholder approval. SGM manufactures, markets and distributes the wellknown Golden Monkey branded products. The company’s portfolio, which also includes Golden Monkey candy, chocolates, protein-based products and snack foods, is widely marketed across China in many cities and rural areas. Approximately 75 percent of the company’s net sales are within the non-chocolate and chocolate candy segments. The remainder of the company’s net sales is concentrated in the fast growing protein-based bean products and other snack categories. The company manufactures products in five cities and has more than 130 sales offices, approximately 1,700 sales representatives and about 2,000 distributors covering all regions and trade channels in China. The company’s net sales have been growing double digits, on a percentage basis, and the company is expected to generate net sales of more than US$225 million in 2013.
DüsselDorf, Germany
Messe Düsseldorf GmbH Postfach 10 10 06 _ 40001 Düsseldorf _ Germany Tel. + 49(0)2 11/ 45 60-01 _ Fax + 49(0)2 11/ 45 60-6 68
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Enquiry Number
Hershey To Acquire Chinese Confectionery Company
PROCESSES AND PACKAGING LEADING TRADE FAIR
BUSINESS NEWS
QuickBites JANUARY/FEBRUARY 2014 ASIA PACIFIC FOOD INDUSTRY
14
INDUSTRY & MARKET
Did you know?
olam
“Scientists from the University of Birmingham say people crave for lowcalorie foods after exercising.”
CAlIFORnIA, US: Olam Spices & Vegetable Ingredients has completed an expansion in size and capability of its spices processing facility in Ho Chi Minh City, Vietnam. The 26,000 sq m spice processing facility will enhance cleaning and storage processes for black pepper, and adds capabilities to process cinnamon, ginger and nutmeg products. Upgrades to the Vietnam facility include advanced technologies such as cryogenic milling using liquid nitrogen, a pepper cleaning line, a Plant HTST steam sterilisation and pasteurisation system, and new pepper milling lines. The company has added climate control for balancing water activity in the processed products, and expanded physical storage capabilities. New pepper, ginger, cinnamon and nutmeg grinding lines and equipment will more than double the production capacity and output for those products. The expansion augments the facility’s existing separators, sifters and two steam sterilisers that clean the spices and reduce microbial contamination. Certified by the British Retail Consortium (BRC) audit protocol, the plant completed successful inspection by the US FDA in 2010. The facility is one of the largest in the world in its category and employs more than 400 people. ___________________ Enquiry No: 0103
coniferconifer
Olam Announces Vietnam Expansion
Veolia Unveils True Cost Of Water SInGAPORE: Veolia today unveiled the True Cost of Water that assesses water-related risks and allows major companies around the world to make sustainable business decisions ensuring long-term profitability. It is a methodology developed by the company that focuses on the financial implications of water-related risks for public authorities and industrial companies. This methodology takes into account direct water costs (both capital and operating expenditure) and indirect water costs (such as legal and administrative expenses) to determine the long-term financial implications of water risks during the lifetime of a plant or a company-wide project. Return on investment and pay-back period are no longer simply based on current direct costs alone, they also include risk-based costs. It enables easy identification of the technical solution needed to mitigate the potential operational, regulatory, financial and reputational risks. This in turn, allows decision-makers to better manage global organisations’ water cycles and secure future investment to operate and ensure long-term profitability.
__________________________________________________________________ Enquiry No: 0104
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ASIA PACIFIC FOOD INDUSTRY JANUARY/FEBRUARY 2014
FAO Says Global Food Prices Are Steady High-performance packaging systems
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ROME, ITAly: For the second consecutive month, the cost of food worldwide remained nearly unchanged in December 2013, with overall global food prices for 2013 among the highest on record, the United Nations food agency reported. The UN Food and Agriculture Organization (FAO) said its most recent Food Price Index averaged 206.7 points, nearly the same as the 206.4 in November. The FAO’s Index measures the monthly change in international prices of a basket of 55 food commodities, including meat, dairy, sugar, and cereals. “Last month, the FAO Food Price Index remained elevated as strong demand for certain high-protein foods continued to drive up prices overall, countering falling prices of major food crops after last year’s abundant harvests,” said the organisation’s economist Abdolreza Abbassian. A sharp increase in dairy prices and high meat values balanced out a steep decline in sugar quotations and lower cereal and oil prices, the UN agency summarised. The organisation said the price index for 2013 overall averaged 209.9 points—the third highest annual value on record— down 1.6 per cent from 2012 and well below the 2011 peak of 230.1. The price index of dairy in December averaged 264.4 points, a rise of 13.2 points over November. Demand for milk powder in China are among the factors for the strong demand. The gain is part of an upward trend. In 2013, the dairy price index averaged 243, its highest annual average ever. The price for meat is also up, driven in particular by demand from China and Japan. The price index averaged 188.1 points in December, in line with historically high levels in 2013 overall. Meanwhile, record harvests kept cereal prices down during the year, particularly for wheat and maize. The Cereal Price Index averaged 219.1 points, down as much as 17 points or 7.2 per cent from 2012, according to the latest figures. The grains index for December dipped 2.8 points from the previous month to 191.5 points, its lowest since August 2010. Sugar also slipped, 15.8 points from November to 234.9. A boom sugarcane harvest in Brazil, the world’s largest producer and exporter, along with good harvests in Thailand and China, kept prices down. FAO’s Vegetable Oil Price Index averaged 196 points in December, a decrease of 2.5 points from November. For 2013 overall, the index averaged 193 points, as compared with 224 points in 2012. ____________________________________________ Enquiry No: 0105
STB-S13-77 --Inserat 80 x 240_v04.indd 1
02.12.2013 11:25:59
BUSINESS NEWS
JANUARY/FEBRUARY 2014 ASIA PACIFIC FOOD INDUSTRY
16
INDUSTRY & MARKET
Hani Arif, Doha, Qatar
Global Partnership to Tackle Food Safety
PepsiCo Announces Investment In India nEW DElHI, InDIA: PepsiCo has announced plans for the company and its partners to invest Rs 33,000 crores (US$5.5 billion) in India by 2020. India currently represents one of the company’s largest markets globally. This investment is expected to further strengthen and expand the company’s capabilities in the following areas: Innovation: The company will continue to expand the range of foods and beverages in its portfolio to cater to the wide and evolving needs of Indian consumers. Manufacturing: The company plans to significantly increase manufacturing capacity to meet the growing demand for its foods and beverages. The company and its partners plan to expand their production capacity in India to more than double the current levels by 2020. Infrastructure: The company and its partners plan to ramp up selling and delivery infrastructure throughout the country, with a particular focus on rural market expansion. As part of this strategic initiative, the company will work with its partners to deploy new technologies designed to enhance service to retail customers and increase efficiency across go-to-market systems. Agriculture: Resources will be allocated to expand the company’s collaborative farming program, which provides farmers with access to good quality seeds, technical agronomic expertise, bank loans, and crop insurance. Since opening its first operations in India in 1990, the company is estimated to have created opportunities for more than 200,000 people in the country through direct or indirect employment and agricultural collaborations. It is estimated that this new investment will add more than 100,000 new employment opportunities, as well as strengthen India as a centre of talent development for the company. In addition, as part of this strategic initiative, the company and its partners plan to implement technologies to further reduce energy, packaging, and water use in its operations. The company also intends to expand water recharge programs to sustain positive water balance.
_______________________________________________________ Enquiry No: 0106
SInGAPORE: More than 70 countries, private companies, international organisations, trade associations, academic institutions, and nongovernmental groups met in Singapore at the Global Food Safety Partnership (GFSP) 2nd Annual Conference to evaluate its first-year achievements and discuss future plans to scale up and shape the world’s response to food safety challenges. There is an ongoing world food safety problem that threatens every economy and food company, challenging governmental regulatory authorities, sickening millions of people each year, introducing barriers to trade, and hurting corporate bottom lines. As a result, the international community faces the critical task of strengthening food safety capacity in developing and middle income countries in order to safeguard public health, while promoting food security and economic development. The GFSP actions are supported by a World Bank multi-donor trust fund that can accept funding from both public and private contributors. The GFSP’s mission is to create a new paradigm of public-private collaboration for food safety capacity building. It aims to reduce risks to consumers and businesses and increase the benefits to both public health and the economy by strengthening food safety protections and supporting effective and efficient global supply chains. The GFSP builds on APEC’s Food Safety Cooperation Forum, which was established to address the twin challenges of facilitating trade of food and food products and improving public health within the region, and that has already improved the availability, accessibility, and use of food safety best practices and protocols. ______________________ Enquiry No: 0107
BUSINESS NEWS
ASIA PACIFIC FOOD INDUSTRY JANUARY/FEBRUARY 2014
17
INDUSTRY & MARKET
Did you know?
Suntory Acquires Beam For US$16 Billion
“According to Forbes, ‘less bad’ food marketing is gaining prominence with Millenial parents.”
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IllInOIS, US: Suntory Holdings has announced that it has enter into a definitive agreement under which the company will acquire all outstanding shares of Beam for US$83.50 per share in cash or total consideration of approximately US$16 billion, including the assumption of the latter's outstanding net debt. The transaction, which has been unanimously approved by each company's board of directors, is expected to close in the second quarter of 2014, subject to Beam stockholders' approval, regulatory approvals and other customary closing conditions. The transaction will create a stronger global player in premium spirits with annual net sales of spirits products exceeding US$4.3 billion. Its combined portfolio of leading brands will include Beam's Jim Beam, Maker's Mark and Knob Creek bourbons, Teacher's and Laphroaig Scotch whiskies, Canadian Club whisky, Courvoisier cognac, Sauza tequila, and Pinnacle vodka, and Suntory's leading Japanese whiskies Yamazaki, Hakushu, Hibiki, and Kakubin, Bowmore Scotch whisky and Midori liqueur. Beam's President and Chief Executive Officer Matt Shattock and the current Beam management team will continue to lead the business, which will be managed from Beam's headquarters outside Chicago, Illinois.
07.01.14 10:33
BUSINESS NEWS
JANUARY/FEBRUARY 2014 ASIA PACIFIC FOOD INDUSTRY
18
INDUSTRY & MARKET
Did you know?
“New research from New Zealand suggests that nutritional tables on food products are too hard to understand for consumers.”
Whole Foods Found To Retain Toxic Metal
Olearys
ARIZOnA, US: Research conducted at the Consumer Wellness Center labs revealed that whole, unprocessed foods have a natural ability to retain toxic heavy metals during digestion, preventing the metals from being absorbed into the body. The discovery, made by Mike Adams, the lab director at the centre, has been named the Metals Retention Factor (MRF). The existence of MRF means that many previous assumptions about foods and food toxicity are false. Previously, the assumption was the foods are fully broken down during digestion to release 100 percent of their elemental composition, but Mr Adams' research shows that foods, herbs and even dietary supplements actually retain a percentage of each toxic element found in their composition. For example, one Traditional Chinese Medicine product tested by Mr Adams retains around 70 percent of the lead it contains. Kelp granules tested by him retained seven percent of the arsenic and 79 percent of the uranium it contained Wheat flour retains nearly 12 percent of the aluminium it contains, and dried squid retains almost onethird of the toxic cadmium it contains. In general, whole, raw, unprocessed foods have been found by Mr Adams to
retain much higher quantities of toxic elements, while cooked, processed or refined foods have been found to retain very low quantities of toxic elements and heavy metals. The retention of toxic elements is aided by insoluble fibres as well as natural ‘ionic affinities’ for certain elements. For example, most seafood products, such as fish, shrimp and scallops, have a natural affinity for binding with cesium. This actually creates an increased risk for seafood in the Pacific Ocean to absorb radioactive cesium-137 being washed into the ocean from the Fukushima catastrophe. Mr Adams' discovery of the MRF means that liquid mineral supplements and vitamin/mineral powders need to be carefully looked at with additional testing to ensure they are not contaminated with toxic elements and heavy metals. He is currently conducting comprehensive research on liquid minerals, fresh juice, fresh produce and vitamin powders
in order to document their MRF numbers and elemental composition. ____________________ Enquiry No: 0109
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BUSINESS NEWS
ASIA PACIFIC FOOD INDUSTRY JANUARY/FEBRUARY 2014
19
INDUSTRY & MARKET
Singapore: The two-day Worlds of Healthy Flavors Asia educational leadership conference was held at the Raffles City Convention Centre, Singapore, and brought together key players from the food and beverage industry to share findings on healthier food choices which do not compromise Asian cultural preferences and flavours. This is the second time the conference is being held in Singapore. Highlights for day one included a presentation on ‘Re-imaging Healthy Menu Options for Singapore and Beyond’, helping F&B industry players to spur ideation, innovation, and to assist in health-oriented food service menu research and development processes. This was followed by a presentation by Yu Yu Ong from Euromonitor Singapore on Healthy Dining-out Culture in Asia and a panel discussion led by Jeff Cheong from Tribal Worldwide on the same topic including Trends, Opportunities and Challenges, in which selected panellists came together to discuss strategies to encourage their customers to make healthier choices. Highlights of the program for day two include a panel discussion on ‘Healthy Menu R&D in Asia – What are the BIG Opportunities?’ led by Eve Felder, MD of the Culinary Institute of America (CIA) and speakers such as Aziza Ali, MD of Aziza International and Robert Stirrup, senior executive sous chef of Fairmont Singapore & Swissotel
The Stamford). Singapore is the only stop outside the US for this educational leadership initiative led by CIA. It is run in partnership with the Harvard School of Public Health—Department
of Nutrition, Saw Swee Hock School of Public Health, and Health Promotion Board.
_____________________ Enquiry No: 0110
Ralph Daily, Alabama, US
Singapore Hosts Worlds Of Healthy Flavors Asia
Vietnam See Growing Shrimp Imports Hanoi, Vietnam: T h ro u g h November 2013, shrimp imports into Vietnam reached nearly US$170 million, including US$84 million of vannamei and US$44 million of black tiger shrimp. Among total shrimp imports, vannamei made up 50 percent, black tiger shrimp occupied 26 percent and the rest was shrimp seed, dried shrimp and marine shrimp. Shrimp imports in 2013 were estimated to hit US$185 million, up 16 percent year-on-year, in which imports of vannamei were up 47 percent to touch US$94 million and black tiger shrimp imports were reduced by nine percent to US$48 million. Through November 2013, India was the largest shrimp supplier
to Vietnam, making up 59 percent among total imports into the country. India supplied nearly US$100 million of shrimp, including US$56.7 million of vannamei and US$42 million of black tiger shrimp. Ecuador ranked the second and only supplied vannamei to Vietnam with the value of US$11 million. The next was Malaysia supplying US$4.9 million of vannamei and US$145 thousand of black tiger shrimp. Due to the lack of domestic raw shrimp supply, Vietnam processors sourced over US$128.5 million of vannamei and black tiger shrimp from foreign suppliers in order to process for exporting.
___________________ Enquiry No: 0110a
BUSINESS NEWS
JANUARY/FEBRUARY 2014 ASIA PACIFIC FOOD INDUSTRY
20
INDUSTRY & MARKET
Did you know?
USP Expands Laboratory In Shanghai SHAnGHAI, CHInA: The US Pharmacopeial Convention (USP), a nonprofit global health organisation that creates and promotes quality standards for medicines, herbal medicines/dietary supplements and food ingredients, marked the official inauguration of its expanded state-ofthe-art laboratory and administrative facility in Shanghai, China. "This is a tangible demonstration of the importance and value that USP and our counterparts in China place on assuring the quality of medicines, herbal medicines/dietary supplements and foods in China, the US and in all countries around the world," said Roger L Williams, MD and CEO of the convention. Mr Williams said the expanded site in Shanghai features 95,000 square feet of space for laboratory facilities that have been designed to not only address today's challenges related to product quality, but also to evolve and grow as new issues emerge. Additional administrative space may be used for education, training and allied activities associated with the convention's core standardssetting work. In addition to Shanghai, the convention operates laboratories in São Paulo, Brazil, Hyderabad, India, and at the convention's headquarters in Maryland, US. China's regulatory and compendial leadership has expressed its commitment to advancing modern, relevant standards for medicines and foods, and USP has joined in this effort via MOUs with ChP, NIFDC and CFSA. Given the convention's role in law in the US, where the current official versions of United States Pharmacopeia
and the National Formulary (USPNF) are referenced and enforceable by the US FDA, USP has also worked closely with FDA and its staff in China to advance good standards for foods and drugs.
“ Australian researchers believe that even a short term diet of junk food can have a detrimental effect on the brain’s cognitive ability. ”
_____________________ Enquiry No: 0111
IFF Makes Indonesian Investment nEW yORk, US: International Flavors & Fragrances, a global creator of flavours and fragrances for consumer products, has announced that it plans to invest over US$50 million in its flavours operations in Jakarta, Indonesia. The investment will include a new state-of-the-art creative centre on the existing site that will primarily support customers in Indonesia, which is expected to be completed by the fourth quarter of 2014. Additionally, the company will build a new manufacturing facility in a nearby site to expand capacity and better serve global and regional customers in the growing ASEAN region. This facility is expected to be operational in the second half of 2015. This investment is consistent with IFF’s strategy to capture the growth potential of the emerging markets. Doug Tough, chairman and CEO
of the company, said, “The ASEAN markets include 600 million consumers, and roughly 240 million are located in Indonesia. Our increased investment in Indonesia strengthens our ongoing strategy to expand our geographic reach and create infrastructure to serve emerging markets, especially those enjoying dynamic growth rates and demographics.” The company has made several large investments to support the developing markets over the last few years. This includes the opening of a liquid flavours and fragrances manufacturing facility in Singapore, the construction of a new flavours creative centre and expansion of the existing manufacturing site in Gebze, Turkey, and the construction of a new dedicated flavours plant in Guangzhou, China. In addition, the company has opened new creative and technical facilities in Delhi, India, in Guangzhou, Beijing and Chengdu, China, and in Dubai, UAE. ___________________ Enquiry No: 0112
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Let Gebo Cermex make you first in line.
3506 Enquiry Number
Line performance can always be improved. But not everyone can do it.
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PRODUCT HIGHLIGHTS
JANUARY/FEBRUARY 2014 ASIA PACIFIC FOOD INDUSTRY
22
Flexicon: Dust Hood The dust hood for flexicon bulk bag dischargers can be used to contain spillage and dust that can escape through seams in the bag and folds in the spout. The six-sided enclosure seats against the rim of a hopper or flange of downstream equipment, and is equipped with an exhaust port for dust collection and a hinged door with inspection window. The top of the enclosure contains a circular opening that allows passage of the bag spout to the equipment connection point. The flat bottom of the enclosure supports a telescoping tube that pneumatically raises a clamping ring which connects the clean side of the spout to the clean side of the equipment. Allowing the telescoping tube to descend under its own weight maintains constant downward tension on the spout when the bag empties and elongates, as the bag activators raise and lower opposite bottom edges of the bag at timed intervals to loosen compacted materials, promoting material flow and complete discharge from the bag. ___________________________________ Enquiry No: P113
Krones: Hot Fill system The updated version of the Krones’ NitroHotfill system allows a filling temperature of up to 90 deg C, which is a particularly relevant criterion for Asian countries. At the stretch blow-moulding machine, station outputs of up to 2,250 bottles per cavity are achieved. In particular, the bottles’ base design has been substantially improved, in addition to the current bases in use, which permit extremely light container weights of just 15.5 g for 500 ml bottles. For example, there are now flatter, design-optimised bases available, which significantly improve the visual appearance of the bottles. The system requires up to 40 percent less energy compared to conventional hotfill processes, offers high potential for lightweighting and enhances the scope for creative design. __________________________________ Enquiry No: P114
Intermec: Rugged Mobile Computer Intermec, now part of Honeywell Scanning & Mobility, has launched the CN51 rugged mobile computer. The product, which offers the choice of Android or Windows operating systems on a single device, is designed for Asian supply chain professionals. The computer’s large, multi-touch, outdoor-readable screen provides ample room for application viewing, with less scrolling for greater productivity, as well as more space for capturing signatures. It is also equipped with smart battery technology that can last through a 12-hour shift and beyond without interruption to replace or recharge. The device is available with the company’s high performance imagers for the reading of 1D and 2D barcodes in various conditions, including low light scanning environments. ___________________________________ Enquiry No: P115
Statec Binder: Bag Closing Machine The bag closing machine by Statec Binder is designed for sewing, cutting and sealing, and is suitable for non-laminated and laminated woven PP bags as well as PP bags with a PE inner liner. During operation, the filled bags are transported by a belt conveyor from the bagging machine. A sensor detects the bag position and conveys it automatically into the trimming area. After cutting the upper edge of the bag, a woven PP tape is applied over the open edge of the bag to seal it with hot air. The hot air is produced by a heating unit in the machine. The hermetic sealing achieved then prevents any odor coming out from the bag. Optional bag stitching and then sealing is possible. For stitching, the bag is first conveyed by means of an integrated sewing head. After stitching, the bag is cut at the top and then sealed with a woven PP tape. The tape over seal is cut on the right and left next to the bag. Bags are often sewn as well as sealed to ensure absolute secure and reliable closure. _________________________________ Enquiry No: P116
PRODUCT HIGHLIGHTS
ASIA PACIFIC FOOD INDUSTRY JANUARY/FEBRUARY 2014
23
Mettler-Toledo: Multiple-Lane Checkweigher
Seydelmann: Mixer-Grinder
Mettler-Toledo Garvens designed a multiple-lane checkweigher to provide food and pharmaceutical manufacturers with a high-precision weighing and sorting system to facilitate faster production times and increased output. Whereas standard applications can only be configured with two to four lanes, the checkweigher has the capacity to inspect up to 1,500 packaged products per minute on up to 16 lanes for correct weight and fill levels, enabling manufacturers to boost throughput speeds. In addition to expanding capacities, the checkweigher feedback control function minimises product weight errors through proactive feedback per lane or a combined feedback for all lanes to keep filler heads properly adjusted. This means adverse fill level trends can be corrected before they become a problem, minimising costly overfilling or unlawful underfilling in order to comply with metrology legislation.
The iMixer-Grinder MRV 2500 is designed to provide very high throughputs. The positioning of the long feeding worm parallel above the working worm ensures an extremely fast emptying of the machine. An optimised pressure due to the frequency controlled feeding worm allows a gentle treatment of the material. The optional integrated cooling system further increases overall production efficiency by reducing the need for cooling rooms. Furthermore, it guarantees optimal processing temperatures and an even gentler material treatment. Keeping the material at the desired temperature enhances constant food safety and the shelf-life of the end product. CO2 and LN2 are either injected into the mixer-hopper via nozzles at the hopper-bottom, or CO2snow is added via snow-horns, positioned on the machine lid.
_____________________________________ Enquiry No: P117
_________________________________ Enquiry No: P119
tna: Seasoning System
Thermo ScientiďŹ c: X-Ray System
The intelli-flav 5 seasoning system from tna offers flexibility in on-machine seasoning (OMS) applications by providing consistent coverage and flavour for both wet and dry seasoning. Fully integrated with both oil spray and flavour injection systems, the OMS system provides total control of adhesion and fast flavour changes for snack lines. Further performance benefits are achieved through the enhanced position of the scarfplate on the infeed. Mounted to the edge of the drum, the scarf now better directs the product into the spraying and flavouring area, providing high quality seasoning performance. Additionally, the newly designed scalloped infeed conveyor allows more products to enter the seasoning drum, while also helping to control product direction for greater accuracy and reduced waste.
The Thermo Scientific Xpert C600 X-ray system features a 50 percent larger aperture and wider X-ray beam than that found on the previous models from the company. The 22-inch wide by 10-inch tall aperture enables larger food products that do not fit through standard X-ray machines to be examined for contaminants or inspected for missing or damaged pieces. The system can analyse an X-ray image to estimate weight and fill or determine whether a packaged item has missing objects. Its highly-sensitive detectors are available in 0.8 mm resolution, and its suite of algorithms is designed to find small contaminants in complex images with few, if any, false rejects. Like its predecessor model, it is designed to run around the clock in harsh environments with less maintenance and fewer repairs than other systems. It operates over a wide five to 40 deg C temperature range.
_________________________________ Enquiry No: P118
_________________________________ Enquiry No: P120
PRODUCT HIGHLIGHTS
JANUARY/FEBRUARY 2014 ASIA PACIFIC FOOD INDUSTRY
24
3D Systems: 3D Food Printer
ABB: Robot Picker
3D Systems has introduced the Chefjet series of 3D printers, launching a kitchen-ready 3D printer category for edibles. Equipped with The Digital Cookbook, easy to use software for the non-CAD user, the printers enable stunning edible prints to be incorporated into any professional kitchen. The entry level version is a monochrome, countertop sized printer with a generous build volume of 8 x 8 x 6 inches, making it ideal for single colour confections and cake toppers. Printable materials come in a variety of recipes, including chocolate, vanilla, mint, sour apple, cherry and watermelon. The pro version is a full-color, large format printer with a build volume of 10 x 14 x 8 inches. Printable materials also come in a variety of recipes, including chocolate, vanilla, mint, sour apple, cherry and watermelon, all of which can be printed in full-color.
With the introduction of the IRB 360-6, ABB has delivered a FlexPicker with a reach of 1,600 mm and a mid-range payload of six kg. The sacrifice of a small amount of payload versus the eight kg version has resulted in a long reach for applications in which conveyors must be far apart, or where other environmental factors require long distances between pick and place movements. The machine is also designed to work in harsh washdown environments in which sanitary design is of utmost importance, such as in meat and dairy applications. An option with allstainless steel parts is IP69K validated so that it can be washed down with industrial detergents and high pressure hot water. The robot is also designed with smooth, rinse-off surfaces, as well as lubricant free joints that are resistant to most corrosives. The picker can be easily set up with the company’s dedicated software, which allows an entire line to be developed, simulated and programmed in less than a day.
___________________________________ Enquiry No: P121
___________________________________ Enquiry No: P123
Dansensor: Gas Analyser The MAP Check 3 Vacuum from Dansensor offers food packagers around the world increased process control and traceability data to help support the latest food safety protocols. The gas analyser is ideal for a wide variety of modified-gas food packaging applications including meat, poultry, fish and baked goods. The device continuously measures gas content of the packages before they are sealed. Through a user-friendly touch-screen, the operator can create individual programs for each product. As the packaging machine is running, the machine takes a gas sample directly from the sealing die and gives an average reading of the residual oxygen (and optional carbon dioxide) for every cycle. __________________________________ Enquiry No: P122
Vemag: Bar Extruder Reiser and Vemag have designed a variety of bar extruding systems for all types of applications and production requirements. This solution combines a Vemag Stuffer with a bar shape forming extruding attachment. A Reiser-engineered Waterwheel flow divider is added for multiple-lane production. Use it to produce all types of extruded bar products—cookie bars, energy bars, nutrition bars and more. The stuffer features a powerful, positive displacement double-screw pump which provides the highest levels of portioning accuracy. The double-screw transports product extremely gently without smearing or crushing large, delicate particulates. The waterwheel attachment is a flow divider that connects to the stuffer. The waterwheel divides the product flow into multiple lanes with equal portions from each outlet. Weight accuracy is guaranteed across each lane. It is a proven solution for high-volume production. _________________________________ Enquiry No: P124
3491 Enquiry Number
FIC广告.indd 2
2013-9-11 13:11:42
PACKAGING & PROCESSING
the Future
With groWing public aWareness on food Waste, authorities and manufacturers are stepping up their efforts in trying to reduce Wastage. fresh thinking on packaging designs can go a long Way in this pursuit. by Julian money, founder, and richard paradine ,head of technical, rapid action packaging Latest figures from the Waste & Resource Action Programme (WRAP) highlight that a staggering 7.2 million tonnes of food and drink are thrown away every year, the majority of which could have been eaten. With increased consumer consumption and sales growth, retailers are facing mounting pressure to make better use of packaging to keep food fresher for longer, as well as to educate customers about the vital role packaging plays in this process. WRAP’s Courtauld Commitment, which was first agreed in 2005, is now in its third phase. This latest version is known as CC3 and the initiatives it sets out aim to reduce food waste even further. CC3 sets ambitious targets of a further 1.1 million tonnes of waste reduction by 2015, bringing £1.6 billion (US$2.64 billion) in cost benefits to consumers and the industry. Courtauld Commitment When the first phase of the Courtauld Commitment was agreed in 2005, the main focus for tackling waste centred around weight-based targets, including the lightweighting and reduction of packaging. During this initial phase, 520,000 tonnes of packaging were avoided through the removal of unnecessary packaging and the use of lighter materials.
After the initial packaging reductions were achieved under the Commitment, and additional work undertaken as part of Courtauld 2, the options for further reductions were deemed limited. This is because any additional reductions could risk technical performance and actually result in increased waste. The Courtauld 3 Commitment has therefore turned its main focus to improving packaging design through the supply chain, to maximise recycled content as appropriate, improve recyclability, and deliver longer product protection to reduce food waste. Packaging efforts have evolved to focus on delivering longer product protection to reduce food waste.
Dom Pates
Packaging
This third phase, which has been warmly welcomed by many in the industry, aims specifically to reduce household food and drink waste by five percent. This represents a nine percent reduction in real terms, to counter the expected increase in food purchased. The Courtauld 3 Commitment presents an ideal opportunity to stimulate further innovations in the industry, especially around the development of enhanced packaging optimisation. The role of the modern packaging manufacturer is to deliver intelligent solutions that represent the perfect fusion of design and technical development. However, improving packaging optimisation through the introduction of new technology requires a collaborative approach. Importantly, it must also be delivered throughout the supply chain, as reducing food waste requires different approaches for retailers and consumers. The benefit of this approach is that it can often result in more possibilities for the manufacturer, as it enables a variety of packaging options to be cost-effectively combined or used separately. ProduCt lifetime extension Continued innovation by packaging experts is helping to keep food fresher for longer, therefore, saving money and reducing waste. The question is, how much longer does packaging actually make food last?
Steven Depolo, Miami, US1
26
JANUARY/FEBRUARY 2014 ASIA PACIFIC FOOD INDUSTRY
PACKAGING & PROCESSING
ASIA PACIFIC FOOD INDUSTRY JANUARY/FEBRUARY 2014
27
Modified atmosphere Sandwich Wedge – Five key benefits 1. Reduced packaging The Ma Sandwich Wedge is constructed from lightweight board and laminate film, making it 20 percent lighter than standard equivalents. as a result, retailers can reduce production costs and improve the overall resource efficiency of their packaging. 2. iMpRoved fReShneSS The pack can be hermetically sealed during filling, which ensures moisture is sealed in and air is sealed out.This in itself can improve the texture and taste of the product.The additional option to modify the atmosphere inside the pack to achieve less than one percent oxygen slows any product changes further, for a potential extended shelf life of up to 28 days depending on ingredients.
Steven Depolo, Miami, US
Made using bespoke manufacturing equipment, the packaging provides the absolute ultimate in terms of sealing in freshness and protecting from contamination.
Understanding the real issues retailers and brand owners face, a range of innovative sandwich packs was introduced recently. The Modified Atmosphere (MA) Carton Sandwich Wedges are not only hermetically sealed, but also use barrier film that allows them to be gas flushed. This technological revolution is ideal for retailers who require a much longer shelf life, as the MA technology removes virtually all oxygen from inside the wedge to extend the life of the product.
Packaging Technology The results clearly highlight that an extended shelf life of up to 28 days is possible depending on ingredients and the choice of packaging design. By comparison, dayfresh and standard cartonboard sandwich packs, which are either hand closed or sealed (but not hermetic), are suitable for display for only one to three days. These very long life MA packs are most suited to continental or US supply chains where the distances and logistics may require an extended time to reach point of sale. However, even in a short supply chain, increasing the shelf life by just one day from three to four days, can potentially make a major im-
3. Reduced food WaSTe an extended shelf life results in reduced food waste, as it allows for longer supply chains and display time on-shelf without the food going out of date. as a result, less food needs to be disposed of by the retailer. 4.Widely Recyclable cartonboard packaging can be recycled, helping to ease any consumer environmental concerns.The cartonboard Ma Sandwich Wedge is made from sustainable materials and has been assessed to confirm it is widely recyclable. 5. STRong conSuMeR appeal Retailers can firmly differentiate themselves in the market by taking advantage of the excellent branding opportunities that are available, such as ‘fresher for longer’. in addition, it allows retailers to educate customers about the vital function packaging plays in reducing food waste. both of these opportunities help to influence consumer choice and deliver emotional and functional benefits.
PACKAGING & PROCESSING
JANUARY/FEBRUARY 2014 ASIA PACIFIC FOOD INDUSTRY
yisris
fighting Wastage through resealing How long food stays fresh continues to remain a key priority for consumers, esthe modified atmosPhere teChnology pecially as products that have a longer life can be conveniently purchased in all oxygen from inside the PaCk to just one shopping trip. For those lookEbiti bea es ma sequatios et volendu ntiosto to conse natem non ing to save time and money, this means resequia velignist, nus pro eiur? Gent quia dusa nam, ut rep fewer journeys to purchase fresh food. However, despite continued innovation in the industry, most consumers still believe that keeping food sealed in its packaging at home leads to it spoiling quicker. In fact, it is once About packsRAP are Conclusion opened that most products will begin to deteriorate quickly. Where food is supplied with the intention of being used immediately after opening, this is not a problem. However, the economy of larger packs often encourages the consumer to buy
Waste through ling
Carton sandwich wedge shelf life
Dayfresh and standard cartonboard sandwich packs, which are hand closed or sealed, are suitable for display for only one to three days. packs that contain enough food for use on more than one occasion. The food that is not used when the pack is first opened may need to stay fresh for several days, with further portions being taken at intervals. If the flavour or appearance of the product changes noticeably, it is likely that the food will be discarded. If the food is to be kept as fresh as possible, the pack needs to have some method of resealing after it has been opened.
Day-life
Freshpack
Hermetic
Modified Atmosphere
advantages of resealing Resealability could be as simple as 0 5 10 15 20 25 30 a locking tab on the front of a tray Days to keep the pack loosely closed for Maximum shelf life in isthe aboveonchart is ingredients Maximum shelf life in the above chart dependant sandwich protection, as on an egg carton. Alterand bread composition. shelf life figures must be confirmed dependent onAllsandwich ingredients and through natively, it may come in the form of a customer’s own organoleptic and microbiological testing. bread composition. All shelf life figures near-hermetic seal from a suitable pack must be confirmed through customer’s addition. These are capable of greatly own organoleptic and microbiological reducing the movement of air or moistesting. ture in or out of the pack.
October 2013
5
The benefits are clear, as the Love Food Hate Waste campaign highlights, salad will breathe more slowly and so live longer, bakery products will be prevented from drying out and going stale, and meat and fish will retain their colour and flavour for longer. Of course, a key factor in achieving customer satisfaction is the overall integrity of the seal. Technology now permits resealing to be built into the packaging or, alternatively, incorporated into a third party sealing system during packing. This offers the optimum type of resealability for the end-user. However, a resealable feature in a pack must perform many functions, as it cannot just be any method of reclosing. It must be obvious how it works, easy to seal and re-open, and give the contents of the pack protection as close as possible to the conditions before the pack was opened for the first time.
Birmingham News Room
pact on out-of-date wastage. This allows for greater fluctuations in consumer demand, resulting in a real impact on the amount of waste at the retailer.
Christian Cable, Lancaster, UK
28
Introduction
Courtauld 3 The role of the modern packaging manufacturer
Fresher thinking
Case studies
Food Waste Reducing through resealing
Conclusion
About RAP
PACKAGING & PROCESSING
ASIA PACIFIC FOOD INDUSTRY JANUARY/FEBRUARY 2014
Reducing food waste through resealing 29 How long food stays fresh continues to remain a key
Fundamentally, if a pack’s resealing
priority for consumers, especially as products that feature does not perform effectively, have a longer life can be conveniently purchased in
theone negative impact onlooking retailers just shopping trip. For those to saveand time and money,can this means fewer journeyswith to purchase brands be far-reaching, a myrfresh food. iad of issues to overcome that include potentially However, despitecritical continued health innovationand in thesafety industry, most consumers still believe that keepingapconcerns, and the loss of consumer food sealed in its packaging at home leads to it peal and loyalty. Likewise, even when 2
61%
OF PEOPLE THINK FRUIT AND VEG GOES OFF QUICKER IN ITS PACKAGING
HOW MUCH LONGER DOES PACKAGING MAKE FOOD LAST?
KNOW THAT STORING FOOD IN ITS ORIGINAL PACKAGING WILL KEEP IT FRESHER FOR LONGER
SALADS SLICED MEATS BREAD AND ROLLS Varioline, x 200 mm, CC-en30-AZ019 12/13 13% APFI, 124CUCUMBERS
spoiling quicker. In fact, it is once packs are opened that most products will begin to deteriorate quickly.
Where the food is supplied with the intention of virtually removes being used immediately after opening, this is not a problem. However, the economy of larger life. packs often extend ProduCt encourages the consumer to buy packs that contain enough food for use on more than one occasion.
2
the resealing feature performs, the role of educating consumers about its benefits is a challenge because numerous Love Food Hate Waste. on-pack messages fight for attention. The role of the packaging manufacturer is to work collaboratively with food manufacturers, brands and retailers. Only then can packs be designed that meet the growing consumer demand for resealing, and also communicate the vital role that functionality plays in keeping food fresh for longer and reducing waste. The critical role of packaging in helping signatories meet their Courtauld 3 targets presents a number of challenges surrounding extended shelf life and further waste reduction. However, as this guide clearly demonstrates, the Courtauld 3 Commitment is continuing to open up a raft of new opportunities and technical innovations across the industry. Importantly, the resulting benefits of the Commitment are not constrained to the organisations directly involved. The current situation presents an ideal opportunity for the entire industry to assess its own circumstances and priorities in relation to enhanced packaging optimisation. If change is to happen, choosing the right packaging partner is key. However, with multiple companies offering similar-sounding services, it can often be difficult for organisations to select the most reputable supplier. For more information, ENTER No: 0130
STORED IN ORIGINAL PACKAGING
STORED NAKED
DATA TAKEN FROM LOVEFOODHATEWASTE.COM
The food that is not used when the pack is first opened may need to stay fresh for several days,
If the food is to be kept as fresh as possible, the pack needs to have some method of
with further portions being taken at intervals. If the flavour or appearance of the product changes
resealing after it has been opened.
The Love Food Hate Waste campaign highlights how packaging retains freshness.
noticeably, it is likely that the food will be discarded.
October 2013
If diversity’s what you’re looking for: the Varioline packaging system from krones. www.krones.com
9
30
finding The mosT effeCTive design
CONVEYING AND DISTRIBUTION SYSTEMS CAN AFFECT THE EFFICIENCY OF A PRODUCTION LINE. OPERATORS SHOULD CONSIDER THESE TOP TEN FACTORS BEFORE PURCHASING SYSTEMS TO GET THE BEST RETURNS. BY roger TreaCher, CONVEYING PRODUCT MANAGER,TNA
TO maximise production yield and quality yet still deliver exceptional product quality and value, manufacturers must ensure their production lines run as efficiently as possible. Conveying or distribution systems play a pivotal role in achieving this, by moving items through each stage of the production process quickly, intelligently, automatically and with extreme care. Plant operators must consider a number of factors before purchasing their distribution system to ensure it achieves the required quality standards within the available budget. Here are the top ten considerations when investing in distribution equipment to expand and grow your business.
JANUARY/FEBRUARY 2014 ASIA PACIFIC FOOD INDUSTRY
1. produCTs To be Conveyed Before even thinking about purchasing a distribution system, assessing which products are to be conveyed is vital. Every product behaves in a distinct way, exhibiting varying flow speeds and characteristics—a potato chip, for example, will display very different flow characteristics to a salad leaf. Bulk density and the desired volume throughput will also change from product to product. These factors can influence the type of conveyor that is selected—whether it be horizontal motion versions for fragile confectionery or vibratory motion systems for difficult to transfer lettuce leaves, or if gated or gateless options are more suitable. In addition, the type of product to be conveyed can impact the length and depth of the distribution pan and what its surface texture should be—smooth or dimpled for example. Involving the marketing team at this stage of the decision making process may also be helpful to evaluate future product development requirements or line extension plans. This ensures selection of the optimum distribution system which responds to production needs both now and in the future, avoiding further financial outlay a few years down the line. 2. speCifiC produCT CharaCTerisTiCs The physical attributes of the product to be conveyed are also a critical factor. Are they light or dense, soft or hard, wet or dry? Are the items coated with oils or fats? How sensitive are they to moisture absorption? Dry, free flowing products such as pet foods or pasta are relatively straightforward to convey, but when processing heavily coated products such as cheese puffs/curls, they can cause clumping and/or build up issues on the distribution system. This can result in conveying control issues, flavour buildup and reduced product quality. Confectionery items that are
Chris Waits
PACKAGING & PROCESSING
chocolate coated or have other delicate coatings like sugar can be difficult to transfer due to the risk of clumping, scuffing or chipping the outer layers. Such characteristics should be used to determine the most effective distribution system for the production line and also the overall design of the system. Working with a comprehensive equipment supplier means manufacturers have access to a full range of distribution technology to support a variety of applications. These include horizontal motion conveyors which provide gentle product handling for fragile items and eliminate seasoning or coating build up, or vibratory motion conveyors with their vertical lift or ‘bounce’ to smooth out lumps and bumps in product flows and optimise storage capability. For sticky fresh cut produce, salad conveyors offer a higher amplitude and lower frequency which allow easier conveying of sticky products. Air conveyors can be purchased too for the transfer of packaged goods to secondary packaging. 3. ToTal CosT of ownership The purchase of a new distribution system is, without doubt, a significant financial investment for any organisation. To this end, it is vital that the equipment delivers the best possible value throughout its lifetime—this can be decades in some plants. Conveyors which consume minimal power to reinforce a company’s sustainability goals while achieving maximum product quality, and are quick and easy to clean, maintain and repair, can help support these aims. The cost of ownership of conveying systems can be calculated easily by looking at the total number of conveying units multiplied by the power consumption of each unit. When deciding on the total number of units to include, the design must achieve all business goals while using the least amount of equipment. Incorrect design will dramatically increase the cost of ownership. Power consumption of individual conveyors can vary significantly with one to two amps being the ideal range. The selected conveying system must provide the best possible product quality without any negative impact on sales volumes. A gateless conveying system will significantly reduce product damage or breakage through the absence of any device mounted on the end of the tray. Additionally, gateless options also offer the highest level of cleanliness and therefore no opportunity for cross contamination and bacteria build up—the product comes into less contact with fewer surfaces areas and there are no moving parts where microorganisms can hide. Reducing maintenance time and product repair costs are critical to ensuring a distribution system delivers true value for money. Choosing equipment with a simple design, with no wearing parts, will greatly reduce spares requirements and therefore, the overall cost of ownership.
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Steve Jurvetson, Estonia
ASIA PACIFIC FOOD INDUSTRY JANUARY/FEBRUARY 2014
Horizontal and vibratory conveyors that are driven by simple electromagnetic drives with no moving parts, such as shafts, gears, links or belts, can result in reduced maintenance costs and downtime, straightforward maintenance procedures and also increased equipment life. 4. produCT sTorage The amount of storage required within a distribution system is a fundamental consideration for many plant managers and business owners, and is one that should be discussed at the beginning of the design process. Storage provides a necessary automatic buffer between the process line and the packaging department within the conveying system. There is a fine balance between ensuring product quality and minimising the amount of aborted product. Too much storage escalates moisture pick up, potentially increases product breakage, and inflates capital equipment costs, while too little will increase product abort levels particularly when the total packaging line output is closely matched to that of the process line output. As a starting point, operators are encouraged to consider the 20/20 rule when assessing storage options. That means when 20 percent of packaging stops, the distribution system automatically holds back 20 minutes of process line output pre aborting any product. There are a range of storage options available, all of which can conform to the 20/20 rule and work on a first in first out basis. Ultimately, the chosen method will depend on how much storage is required, the reasons for storage, quality restrictions and the type of products to be stored: In Line storage: the main line distribution conveyors typically feeding a row of bagmakers are oversized in height and width—this is the most cost effective solution, works well on longer packaging lines and is very gentle on the product Upstream storage: additional conveyors are incorporated into the system before the main line distribution conveyors— additional capital outlay is required, however. This approach works well on shorter packaging lines Upstream belt storage: a large box with stainless steel side walls and a live bottom belt can be manufactured to any size. This offers the highest level of storage volume but special care should be taken for fragile or moisture sensitive products. Other alternatives include recirculation systems where the product is returned back into the distribution system
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Kate Hopkins, Seattle, US
5. Sanitation With increasingly stringent food safety and hygiene guidelines in place across the world, plant and equipment hygiene is top of mind among site managers looking to eradicate foreign bodies, bacteria build up and avoid environmental contamination concerns. They, therefore, need easily accessible, simply designed machines with few moving parts to ensure they adhere to strict hygiene standards.
Horizontal motion conveyors provide gentle product handling for fragile items and eliminate coating build-up.
6. EnSuring HEaltH & SafEty Guaranteeing the health and safety of both plant operators and the product’s consumers is another fundamental consideration for manufacturers. Easy-to-use equipment which is installed safely and delivers top quality products is vital to ensuring the health and safety of all. Working with companies who not only manufacture and supply secure conveying systems, but also offer turnkey
ConvEying or diStribution in running an EffiCiEnt US Department of Agriculture
project management services can help ensure health and safety throughout the full installation process and for the life of the equipment going forward.
before the first packaging station after it has past the last. Purchasing additional ‘scavenger’ packaging stations also greatly reduces the need for storage but it is more costly. All systems, regardless of storage type and size, must have a reject method. In the event of a serious balancing issue between process and packaging, the store will fill up and will need to abort product out of the distribution system in a controlled manner rather than ‘rain’ product, which is when product spillage occurs. Three reject points are recommended after any process line: • Process line abort: this is located immediately after the process line and before seasoning. This allows product outside of the specification to be aborted in advance of adding expensive seasoning or coatings, such as PC soft centres • Seasoning abort: if an ‘in kitchen’ style coating system is being used, an abort before packaging is recommended. If the seasoning requirements fall out of specification, then the product can be aborted before the packaging line • Packaging abort: if in line storage is adopted, the most effective place to abort is at the end of the packaging line.
7.aftErSalES Support For high value equipment like conveyors, the relationship between plant operator and machinery supplier should not end when the system is in place.
Working with equipment providers that offer a comprehensive aftersales service whatever the location, language and time zone will mean the distribution system runs more efficiently, delivering optimum outputs throughout the lifetime of the equipment. Another important factor to consider is ensuring that the supplier has local sourcing of all spare parts. The distribution system is the main artillery of product feeding for the pack-
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aging systems, so if one section of the distribution line goes down, it is going to prevent all product packaging. Therefore, quick local access to spare parts is paramount to maintaining the productivity of the line. 8. operaTing environmenT When selecting a distribution system, the location in which it will operate is as important as the equipment itself. The existing space and surroundings of the facility will have a key impact on system type, overall design and installation procedures. What is the product flow path through the plant? Does it have a sloping floor? Where are the drains located? What are the temperature and humidity levels year round? Where are the existing services? Does the new system have to interface with existing equipment? Working with a supplier which offers a full range of distribution equipment plus a comprehensive project management service, can help manufacturers fully audit
SyStEmS sysTems play a pivotal pivoTal rolE role produCtion produCTion linE. line.
10. fuTure expansion Although it is impossible to accurately predict the future, most organisations have a broad indication of their business pipeline for the next three to five years. This may include plans for new products, the expansion of existing product ranges, or for significant increases to manufacturing volumes. Taking these planned developments into account can help operators ‘future proof’ their distribution systems and save money in the long run. Some suppliers have modular designs for complete distribution and packaging systems, which can be easily expanded and upgraded to suit future business requirements. Distribution systems make an important contribution to the smooth and efficient running of a manufacturing line, so selecting the right solution from the start is critical. By taking into account these top ten considerations, manufacturers will be better placed to choose the best solutions to support their specific product and installation needs and deliver the quality, value and outputs they require. For more information, ENTER No: 0131
their operating environment. This enables them to design and install the most efficient and effective distribution system to match their processing and packaging needs.
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9. budgeT Budget will always be a key driver when selecting distribution equipment, but price should not necessarily be a compromise to purchasing the system that achieves an operator’s processing and packaging objectives. Equipment manufacturers that offer an extensive portfolio of conveyors enable manufacturers to select the most appropriate system to match their needs. Those that can supply all the equipment in the production line, not just the conveyors, are able to provide customers with the optimum layout, which ensures as few conveyors as possible are used, minimising overall machinery footprint, capital expenditure and system costs whilst achieving the highest level of product quality and maximum output.
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Six Keys To The The reduCed CraCking Sugar MySTery
It is easy to find the sweet spot when formulating with sucrose. Its flavour and function are so well known to us, its sweetness most of us grew up with, but like many of the things we enjoyed in our youth, there are times to set it aside. Demands to reduce added sugar and lighten calorie loads are at an alltime high. Approximately 13 percent of adults’ total caloric intake comes from added sugars, the Centers for Disease Control (CDC) reports in their recent study, Consumption of Added Sugars Among US Adults. “Recent analyses indicate that children and adolescents obtain approximately 16 percent of their total caloric intake from added sugars,” adds the report. The recommendations set forth in the Dietary Guidelines for Americans
Coralie Ferreira
aS ConSuMerS beCoMe More ConSCiouS abouT Their Sugar inTake, food and beverage ManufaCTurerS have To find wayS To reduCe boTh Sugar and Calorie ConTenTS. SweeTenerS offer good opTionS, buT Their properTieS MuST be underSTood To derive The beST appliCaTionS. by Cindy Hazen for STeviva ingredienTS
state that discretionary calories, including both added sugars and solid fats, should be limited to 5 to 15 percent per day. Increased consumption of added sugars has been linked to a decrease in intake of essential micronutrients, increase in body weight and higher risk for diabetes and cardiovascular disease. CDC defines added sugars as sweeteners added to processed and prepared foods. Though the aim is clearly directed to the industry to reduce added sugar, it is not a simple proposition. ConSumer expeCtationS Consumers are not necessarily willing to forgo a sweet taste, so food developers are challenged to deliver flavour, reduce calories and provide comparable sensory attributes. Knowing precisely what the consumer wants to eat is a bit like timing the stock market—both are fickle.
Ye t w h e n i t c o m e s t o f o o d choices, the trend towards health and wellness continues to evolve. Organisations like Center for Science in the Public Interest are intent on transforming the American diet. They have launched a petition to ensure the safe use of ‘added sugars’. They include added sweeteners such as fruit juice, evaporated cane sugar, honey and agave syrup as well as sweeteners that contribute to harm. Americans are taking note that moderation is in order. A recent survey from Mintel suggests that consumers are paying a lot more attention to how much sugar is in their foods. Interest in natural and clean label products is at the top of mind. Shoppers are scrutinising labels for ingredients with names that they understand. Innova Market Insights says the top trend of 2013 is the aware shopper who is more informed and knowledgeable about value and health. With this, there is a call for transparency and credibility, as evidenced by increased litigation surrounding natural claims and genetically modified organisms (GMO). Ye t i t a l l c o m e s b a c k t o sweeteners, at least in terms of the research agency’s top 10 list of 2013 trends, which ranks beating the sugar demon at number seven. Meeting consumers’ desire for natural, reduced sugar foods is
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replaced, the beverage is thin. Fructose can stand alone, but slightly less is required to deliver the same sweetness as sugar.
the developer’s task. Eliminating artificial chemicals like aspartame, acesulfame-K, sucralose, saccharin and neotame narrow the choice of sweeteners.
plant BaSed SweetenerS Formulators seeking a natural, high intensity sweetener begin with a simple decision tree: monk fruit or stevia. Both have zero calories. The sweetener extracted from monk fruit, luo han guo, is the newest entrant to the category. Its flavour is neutral in most applications, although it may impart a slight melon-rind note. Sweetness comes from a group of compounds called mogrisides within the fruit from the Siraitia grosvenorii plant. Chemically, mogrosides are triterpenoidal saponins. There are
demandS to reduCe added Sugar and ligHten Calorie loadS are at an all time HigH.
Wendell, California, US
Stevia is a high intensity sweetener that is 200 to 300 times sweeter than sugar.
Chris Feser, Seattle, US
natural nutritive SweetenerS Honey, molasses, agave nectar and fruit juices fall into the natural sweetener category, but they are of little help in reducing calories. Like sugar, these are nutritive sweeteners. Sugar, or sucrose, contributes four calories per gram. It is composed of disaccharides of glucose and fructose units. Fructose, the form of sugar found in fruit juice, agave and honey, is also nutritive, but it has the advantage of being sweeter than sugar. Of all the nutritive sweeteners, it is the sweetest with 1.2 to 1.8 times the sweetness. The anomeric state of fructose and the extent of mutarotation when the comparison is made will impact relative sweetness. RS Shallenberger explains in the book Taste Chemistry that the relative score “is a judgment by several persons at most, or in a few cases, merely a subjective estimate in place of an actual sweetness comparison.” Relative sweetness also increases with concentration, a phenomenon described as self-synergism. Over the range of 5 to 20 percent fructose in solution, relative sweetness of fructose increases by eight percent. S y n e rg y i s a l s o e x p re s s e d with other sweeteners, including nonnutritive sweeteners. Synergy occurs with starch as well. Compared to sucrose, fructose causes starch to gelatinise at a lower temperature. Fructose also acts as a bulk sweetener. Mouthfeel and body are attributes that are tied to sensory perception. Along with the sweetness curve, they define our perception of sugar. If bulk is missing, a sweet taste can fall flat. If solids are not
five numbered mogrosides, as well as other glycosides, and each has distinct sweetness characteristics. Mogroside-5 is predominant. Sweetness of individual mogrosides can var y up to 400 times the sweetness of sugar. The actual dried fruit has up to 1.5 percent extractable mogrosides. Maturity of the fruit impacts the mogroside content. Typical commercial monk fruit sweeteners are about 200 times sweeter than sugar. FDA recognises monk fruit extract as GRAS. Stevia extracts are derived from leaves of the South American plant stevia rebaudiana. This high intensity sweetener is 200 to 300 times sweeter than sugar. Like monk fruit, sweetness comes from certain components within the plant. More than 10
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Fluffymuppet
Shardayyy
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While there are many sweeteners to choose from, none taste or behave exactly like sugar, which make it difficult to replicate. different steviol glycosides are found within the steviol leaf. Rebaudioside A (Reb A) is the best known. Steviol, Stevioside, Rebaudioside C, Dulcoside A, Rubusoside, Steviolbioside, Rebaudioside B, D, E, and F follow. The flavour of stevia products varies immensely because of the variations of concentrations and purity of these glycosides. Soil and growing conditions influence the confluence of components. Finally, the means of extraction—natural water extraction or petrochemical extraction—impact the final taste. Even the cleanest extracts of stevia can have a liquorice-like flavour. It can be perceived as slightly bitter. Yet because it is so powerfully sweet, it is used at extremely low levels. A bulking agent, such as erythritol, is required to build body and mouthfeel, but it will also help ameliorate any off note. Masking agents can also be helpful, especially in formulas that contain other bitter components.
Sugar HaS a SweetneSS Curve tHat ComeS on Slowly, BuildS roundneSS and tHen Slowly aBateS. fruCtoSe peakS firSt, followed By gluCoSe. witHout a gap Between tHem, it iS perCeived aS one. perfeCting tHe Sweetening SyStem Although there are many sweeteners to choose from, none taste or behave exactly like sugar. Replacing sugar with a single ingredient is unlikely to yield the anticipated result. Sugar free and no sugar added foods would
not have the same flavour as their full sugar counterparts. The goal is more achievable when reducing sugar. Blending sweeteners even further increases the potential for success. Take the sweetness curve of sugar for example. It comes on slowly, builds roundness and then slowly abates. This is a reflection of sugar’s disaccharide composition. Fructose peaks first, glucose second. Without a gap between them, it’s perceived as one. Removing the glucose will have an abrupt effect. Fructose will build rapidly and then decay very quickly. High intensity sweeteners also deliver sweetness but they linger. Stevia has a later onset of sweetness than fructose. The extinction time is prolonged, and it is often described as an aftertaste. Even within a broad category such as stevia, each glycoside will behave differently in their expression of sweetness or off notes. It is important to rely on a supplier who can assure high quality standards, a reliable supply chain and batch-tobatch consistency. Because stevia products among manufacturers vary in the purity and permutations of glycosides, one product may taste completely different than another. Substituting ingredients may require multiple changes to the formula. Developing new products is an easier task, although it still may take a few rounds at the bench to optimise flavour and function. Combining sweeteners can improve the temporal profile. Adding sugar to a formula in which up to 80 percent of the sweetness is provided by Reb A will exhibit a flavour similar to a 100 percent sugar sweetened product. Calories are reduced substantially. Likewise, a blend of fructose and stevia or an agave syrup fortified with stevia will have a pleasing profile while reducing calories. The
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boiling point increases. Every application has its own requirements, so understanding the nuances of sweeteners, whether they are used alone or in tandem, must be undertaken in the context of the finished product. Working with a knowledgeable supplier will maximise efficiency in the number of passes at the bench and in the pilot plant, but also in terms of cost savings. Capitalising on synergies between sweeteners and other ingredients can reduce the use of higher cost ingredients such as flavours. Partnering with a sweetener expert will bring their intuitive knowledge to development efforts and help to take the mystery out of reduced calorie formulations. For more information, ENTER No: 0140
3610
funCtional ContriButionS Besides flavour, the choice of sweetener and/or combination of sweeteners is dependent on their functional contributions. Erythritol, because of its low molecular weight, lowers water activity and thus, extends shelf-life of baked goods. Cookies will maintain crispness. Soft goods like brownies will not harden. Moisture levels may need to be increased in some formulas. Sugar provides humectancy to baked goods. Stevia alone is incapable of this. If a golden hue is desired in bread
or rolls, erythritol and/or stevia will not be of help. Fructose, nonfat dry milk or small levels of browning sugars such as molasses will be needed. In frozen foods, freezing point depression is an important consideration. In ice cream, texture, palatability and scoopability are dependent on the dynamics between ice and water. Larger molecular weight carbohydrates are more effective in influencing water behaviour. Lower molecular weight sweeteners, such as xylitol, depress the freezing points lower than sugar, so they are best used in combination with higher molecular weight ingredients. Confections are another ball of wax; their boiling point is the critical juncture that governs texture. As molecular weight decreases, the
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flavour outcome is dependent on the application and the other ingredients in the formula. The presence of citric acid, tartaric acid or lactic acid will improve the taste of stevia by cutting the lingering sweetness. Flavours like ginger, cola and root beer diminish the liquorice notes of stevia. A flavour such as grapefruit that has an inherent bitter quality will also have a masking effect. Inulin or fructooligosaccharides (FOS) can also reduce aftertaste of highintensity sweeteners. In a sugar-free beverage, the addition of low levels of xanthan gum or FOS will build mouthfeel, thereby giving it a profile more similar to a product sweetened with sugar syrup. Fructooligosaccharides add bulk with a healthful twist. These non-digestible fructose and glucose molecules are derived from chicory root. As a prebiotic, fructooligosaccharides support the growth of healthy microflora in the gut. With 70 percent the sweetness of sugar, the caloric contribution is just one calorie per gram. In food products, the fat-mimetic qualities of FOS improve texture and mouthfeel. Its flavour is slightly sweet and neutral. Synergies with other sweeteners improve flavour and cost efficiency.
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turn Simple StapleS into nutritiouS Food
Food FortiFication can value add products and give producers a competitive edge, but the process is oFten complicated and challenging. staple Food FortiFication on the other hand, is simple, saFe and aFFordable. in addition, it can contribute to the health oF the society without changing the people’s diet. by Yannick Foing, manager, nutrition improvement program, dsm nutritional products asia paciFic Vitamin and mineral deficiencies affect not only the poor people in developing countries. Perhaps less obvious, but nonetheless important, are the effects of today’s lifestyles on nutritional status. The hectic pace of life can lead to inadequacies in the diet, such that people are increasingly looking to fortified foods to make up the shortfalls.
IRRI Photos
More and more food producers are recognising that the addition of micronutrients adds value to their product and gives a competitive edge. In processed food, the fortification can sometimes be a challenge because it can change the colour, consistency and taste of a product. Staple food fortification on the other hand, is simple, safe and affordable, but its biggest advantage is that it reaches the majority of the population. It does not require the people to change their dietary habits and can contribute to the improvement of public health. In developing countries, hidden hunger—the lack of essential micronutrients in a person’s diet—places a heavy burden on societies, the economic development and health care costs. Eradicating deficiencies and improving nutritional status makes people healthier and, therefore, better able to contribute to their own development. In particular, it can ensure the proper mental and physical development of children, who then grow up to become productive members of the community.
eaSY remedY Staple food fortification has been shown to be one of the safest and most cost-effective measures to improve the nutritional value of a diet. It adds value to products to create a competitive advantage and at the same time, enable staple food producers to contribute to sustainable public health improvement and bring long-term benefits to the communities to which they belong. Flour, salt and rice are the top three staples that have been used for many years to improve public health. Wheat and maize flour is relatively simple to fortify with almost all micronutrients, giving it the potential to substantially improve public health. Specialists can assist flour producers to fortify wheat and maize flour in the best and most effective way possible, keeping the process simple and ensuring the correct concentration and even distribution of micronutrients to meet specific regulatory requirements and quality standards. Salt is very suitable for fortification with iodine. In many countries, salt fortification with iodine is mandatory to prevent iodine deficiency, which affects about two billion people, and is the leading preventable cause of intellectual and developmental disabilities. Salt can also be fortified with iron.
The four major methods of fortifying rice are through hot extrusion, cold extrusion, coating and dusting.
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Cold extrusion Micronutrients are mixed with a rice flour dough which is then extruded, cut into rice-size grains and dried. The end product resembles a milled rice kernel.
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Coating A micronutrient mix is sprayed onto the surface of the rice kernels with a medium—wax or gum. The final product is covered in a waxy layer and the colour depends on the micronutrients added.
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Dusting Rice grains are dusted with a powder form of micronutrients that stick to the surface by electrostatic force. This coating may be washed off during rinsing and cooking and therefore it is not widely adopted in developing countries.
Hot extrusion It retains the consistency, colour,
Rebecca Siegel
Janine, Texas, US
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shape and taste of regular rice. It cannot be distinguished and is therefore widely accepted by consumers. The micronutrients are safely embedded in the kernel and protected from outside influences. The extruded kernels are mixed with regular rice in a ratio of 1:100 or 2:100.
other Suitable StapleS Sugar is another important staple for many people around the world. It is produced in over 100 countries and production is increasing. Sugar is a particularly suitable vehicle for fortification with vitamin A. This vitamin is essential for the process of vision (especially night vision), growth and development, immune function (it helps to protect against infections) and for male and female reproductive organs. Conventional sugar fortification technology uses vitamin A beadlets that adhere to sugar crystals with the help of oil. Another technology is available now that uses a water-dispersible vitamin A emulsion. This is sprayed on to the surface of sugar crystals and then dried, resulting in a vitamin A coating that does not rub off. The particle size, shape, density, and mixing properties of the coated sugar kernels are similar to those of untreated sugar crystals. The advantage is excellent miscibility and no risk of separation or dust formation.
Oils and fats, like carbohydrates and proteins, are major components of the human diet. Depending on the source, oils provide not only energy, but also the essential fatty acids required for human growth and development. The fat-soluble vitamins—vitamins A, D and E—mix uniformly with oils, making them an excellent, cost-effective vehicle for fortification with these micronutrients. Fortification of skimmed milk with vitamins A and/or D is already mandatory in several countries. In the US, some dairies voluntarily fortify milk with vitamins C and E and calcium, in addition to vitamins A and D, and dried milk and flavoured milk powders are often fortified with vitamins A and D, calcium, and iron. Most importantly, milk and milk product fortification can be modified to meet the nutritional requirements of specific target groups like children or the elderly. inStant noodleS Convenience and affordability are major factors in the increasing
Nick Piggott, Bristol, UK
rice FortiFication Rice, the provider of more than a fifth of the world’s food calories, is probably the most powerful staple to improve public health. Currently there are four major methods to fortify rice:
Milk product fortification can be modified to meet the nutritional requirements of specific groups like children.
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Melissa Wiese, Miami, US
Efren Rodriguez, Manila, Philippines
Elsie Hui
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Fortifying instant noodles allows people to improve the micronutrient content of their diets wihout changing their eating habits.
popularity of a variety of instant noodles, which are now produced in over 80 countries. In Asia, especially, they have almost become a staple. Instant noodles represent an excellent opportunity for public health improvement. At present, while cheap and convenient, they often lack nutritional value. Fortifying instant noodles offers a solution that does not require people to change their eating habits in order to improve the micronutrient content of their diets. Fortifying this popular meal with valuable micronutrients responds to the consumer desire for better quality yet affordable food, and can strengthen the producer‘s position in this highly competitive and growing market. Vitamins A, D, E, K1, B1, B2, B6, B12, C, folic acid and niacin can all be added to the noodles, as well as the minerals calcium, zinc and iron.
hidden hunger in aSia Asia has a very high burden of hidden hunger. More than 13 million babies are born with mental impairment, accounting for 72 percent of the annual global burden of iodine deficiency disorder (IDD), and the number of households consuming iodised salt varies widely, from 15 percent in Afghanistan and 55 percent in Pakistan, to 95 percent in Bhutan and 93 percent in China. Many countries in Asia are achieving high levels of vitamin A supplementation for children, but some are still lagging behind. As a result, as many as 500,000 children under five die each year due to vitamin A deficiency (VAD). An estimated 33,000 women die due to severe anaemia each year, and the estimated prevalence of iron defi-
Guilhem Vellut, Tokyo, Japan
Staple Food FortiFication’S biggeSt advantage iS that it contributeS to the improvement oF public health, bY reaching the majoritY oF the population without requiring people to change their dietarY habitS.
ciency anaemia in children under five varies across the region, with nine countries close to or above 50 percent, and other areas as high as 75 to 80 precent. Folic acid deficiency and zinc deficiency also have serious negative consequences. An Indian study published in The Lancet revealed that India has a prevalence of birth defects 16 times the global average. For more information, ENTER No: 0150
Enquiry Number
3600
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functionAl food:
PercePtion vs reality
Salvation Army USA West
A survey commissioned to study AmericAns’ AwAreness of And Attitudes towArd functionAl foods provides insights to how consumers perceive these products. By Sarah romotSky, AssociAte director of heAlth And wellness, internAtionAl food informAtion council
Food is an essential part of our lives, and consumer interest in foods and beverages that may provide benefits beyond basic nutrition, or ‘functional foods’, is thriving. These foods for health may consist of a variety of food components and provide additional health benefits that may reduce disease and/or promote optimal health. These can include, for example, the naturally healthful components in fruits and vegetables, whole grains and fibre in certain breads and cereals, calcium in milk, and fortified foods and beverages such as vitamin D fortified orange juice. Dietary supplements can also contain health promoting functional components. As seen in previous years, the majority of Americans believe that foods have specific health benefits and remain interested in learning more. However, understanding what motivates consumers beyond
interest to action is essential to help consumers obtain the benefits of functional foods. In 2013, the International Food Information Council (IFIC) commissioned its eighth survey studying Americans’ awareness of and attitudes toward functional foods.
In contrast to previous surveys, which largely explored views on food and health benefit pairings, the latest round of research was designed to investigate consumer perceptions related to nutrient inadequacy, the variety of sources of functional components including naturally occurring and fortified, food processing, and behavioural determinants of functional food consumption. awareneSS & intereSt Similar to survey findings from 2009 and 2011, 90 percent of consumers agree that certain foods have health benefits beyond basic nutrition (87 percent in 2011 and 89 percent in 2009). This represents a significant increase compared to 85 percent in 2002. Similar to previous years, when asked an open-ended question about a food or food component that has benefits beyond basic nutrition, most consumers (89 percent) can name at least one functional food and its associated health benefit. Specifically, fruits and vegetables are by far the most commonly mentioned functional food. When asked to name the health benefit that the
For almost all of the nutrients or food components examined, at least six in ten consumers believe they get enough to meet their needs.
HEALTH & NUTRITION
ASIA PACIFIC FOOD INDUSTRY January/february 2014
attitudeS & PercePtionS O v e r a l l , n e a r l y t w o - t h i rd s o f consumers believe that functional foods will provide health benefits (63
john.trif
food or food component is good for, twenty-seven percent of consumers say it provides a specific nutrient or food component such as vitamins or protein. Cardiovascular and digestive health are also benefits named by consumers. Consumer interest in learning more about functional foods remains high. Almost nine in ten Americans (86 percent) are interested in learning more about foods that have health benefits beyond basic nutrition. Similar to 2011, almost half of all consumers (45 percent) are ‘very interested’ while another 42 percent are ‘somewhat interested’. About half of consumers believe they get at least ‘most’ of the nutrients/ food components they need for good health. However, three out of four consumers report concerns that they are not getting enough. More specifically, the findings show women are more likely to be concerned about nutrient inadequacy, while older consumers are less likely to be concerned. Consumers’ concerns regarding nutrient inadequacy tend to be general in nature, rather than a concern on a specific health condition or nutrient/component. Among the consumers who are concerned with nutrient inadequacy, only 16 percent are concerned with the inadequacy of one or more specific nutrient without regard to general nutrient inadequacy. Most consumers are concerned about general health problems resulting from nutrient inadequacy, rather than one specific health problem. For nearly all of the nutrients or food components examined, at least six in ten consumers believe they get enough to meet their needs. Omega-3 fatty acids are the exception as only 50 percent of consumers believe they get enough Omega-3s to meet their needs.
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conSumerS were more recePtiVe to FortiFied ProductS when it came From a whole Food.
percent) and are confident of making the necessary changes to integrate functional foods into their diet (62 percent). Breakfast is the preferred meal or snack time when consumers most often choose to include a functional food, with 52 percent of consumers listing breakfast as their first choice among other meal and snack time options. In regards to specific subpopulations who may benefit from functional food consumption, consumers think of infants and toddlers as the age group that would most benefit, followed by children (ages 4 to 12) and people aged 60 or older. Perception of vitamin and supplement use is generally positive among consumers. The majority of consumers (68 percent) like the idea of getting health promoting nutrients and food components from vitamins or supplements, while only 12 percent of consumers dislike the idea. Twenty percent are unsure or neutral about the idea. Consumers who eat foods with added nutrients
or healthful food components are more likely to be favourable towards the idea of getting health promoting components from vitamins or supplements. ViewS toward FortiFication Consumer views on fortification were also investigated. Half of consumers (54 percent) believe fortification has little to no impact on taste, while 28 percent say they do not know if fortification affects taste. A slight majority (53 percent) of consumers believe fortified foods are ‘most always’ or ‘always’ more worthwhile to eat than non-fortified foods. Consumers who are ‘very concerned’ about nutrient inadequacy are more likely to rate fortified foods as ‘most always’ or ‘always’ more worthwhile to eat than non-fortified foods. In this survey, consumers were more receptive to fortified products if the fortification were to come from a whole food rather than a synthetic ingredient. Fortification with a whole food such as soy beans or cocoa
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ViewS toward ProceSSed FoodS Most consumers agree that processed foods are more convenient (71 percent) and last longer (72 percent) than similar foods that are not processed. However, very few consumers believe that processed foods are safer or more nutritious than foods that are not processed. Americans who frequently consume foods with added nutrients/ food components are more likely to agree that processed foods are generally safer and more nutritious.
Concorde Branding, Paris, France
However, adding nutrients to a food is viewed on the same level of processing as canning, pasteurisation or mixing/cooking with other foods. Interestingly, between 27 and 29 percent of consumers believe that these modifications qualify a food as ‘highly processed’.
When consumers were asked to identify the degree to which they considered a variety of foods to be a ‘processed food’, it was clear they recognised that even minimally processed foods, such as a bag of baby carrots, is still a ‘processed food’. Interestingly, homemade apple pie is more often considered less processed than packaged apple slices. Adding preservatives or artificial flavours are actions that consumers most strongly associate with the term ‘processed foods’ (over 50 percent of consumers believe these food modifications qualify the food as ‘highly processed’).
Graham Holliday
beans made 40-50 percent of consumers more likely to buy a snack bar. In comparison, fortifying with a synthetic component, such as one made to be similar to a cocoa natural extract, made consumers much less likely to buy a snack bar. When it comes to interest in foods with fortified or naturally-occurring benefits, consumers tend to prefer the latter, although nearly half do not report a preference. Fifty-one percent of consumers prefer the idea of getting health promoting ingredients from foods with naturally occurring health benefits, while only three percent prefer the idea of getting them from fortified foods. However, nearly half of consumers (46 percent) do not have a preference. Interestingly, when asked about their children or parents/seniors getting health promoting ingredients from fortified foods vs foods with naturally occurring benefits, consumers are more likely to be open to the fortified option. Thirty-three percent of consumers ‘like strongly’ the idea of their children getting health promoting ingredients from fortified foods and 35 percent of consumers ‘like strongly’ the idea of their parents/seniors getting health promoting ingredients from fortified foods. This is in contrast to the smaller proportion of consumers (21 percent) who ‘like strongly’ the idea of getting health promoting components from fortified foods for themselves.
BehaVioural determinantS Over half of consumers say they consume foods that naturally contain healthful nutrients/food components ‘most times’ they eat. In contrast, only one in five consumers report eating foods with added nutrients or components ‘most times’ they eat. While the majority of US consumers (79 percent) remain confident that they are at least ‘somewhat knowledgeable’ about nutrition, less than half (48 percent) agree that they have enough information to understand which foods provide an added benefit. Consumers with a high ‘receptivity’ to functional foods are more likely to consume functional foods frequently. ‘Receptivity’ to functional foods was determined based on a composite measure of consumers’ knowledge, skills, self-efficacy, perceived benefits and outcome expectations related to functional foods. Receptivity was predictive of consumption frequency of both foods that naturally contain functional components as well as fortified foods. BarrierS to conSumPtion Consumers cited a variety of barriers to more frequent consumption of
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Further analysis of this data shows ent needs for additional life stages may health promoting foods and food comlead consumers to intentionally seek that consumers with a high receptivponents. Cost is the most common ishalf E mizu Killer？ out and purchase functional foods to ity to functional foods (who trust that barrier,What with over of consumers The pH value of the sodium hypochlorite solution is adjusted from 5 to 6 their (acidulous) by usingfoods carbon dioxide functional will confer health benefi t the health of themselves, (55 percent) identifying this as a major What is E mizu Killer？ and so, strong sterilizable water that contains a large amount of HOCl is manufactured. benefi ts) are more likely to consume children, and ageing parents. reason. (CO2) The pH value of the sodium hypochlorite solution is adjusted from 5 to 6 (acidulous) by using carbon dioxide functional foods. Effective messages In the case of certain sub-populaOther commonly identifi ed barri(CO2) and so, strong sterilizable water that contains a large amount of HOCl is manufactured. Feature ofa preference E mizuforKiller tions with large buying power, such as about functional foods must address ers included taste and barriers to functional food conbaby boomers, increased knowledge pure, basic foods. The least ◎ Carbon dioxide completely dissolves to water because of usingthe thetop membrane. Feature of E commonly mizu Killer sumption and foster consumer belief of the health benefits of functional identifi◎ ed barriers were food preparachlorine gas nordissolves the hydrogen gasbecause are generated. ◎ Neither Carbon the dioxide completely to water of using the membrane. in the health benefits that functional foods can result in signifi cant purchastion and the mental effort required to ◎ running cost is cheaper thanhydrogen electrolysis the medicine. ◎ The Neither the chlorine gas nor the gasand areusing generated. foods can confer, order to motivate ing and ultimately, consumption consume functional foods. ◎ a safe, cheap and handling can be chosen according to theinusage. ◎ The The device runningofcost is cheaper thaneasy electrolysis and using the medicine. consumers to achieve and maintain changes. There are many factors that will ◎ The Flow〉 device of a safe, cheap and easy handling can be chosen according to the usage. 〈Basic Test Results〉 health through diet and lifeThe science 〈Sterilization supporting the Effect use optimal continue to drive the demand for funcBacterial counts before cation. 30 seconds Bacteria risk of disease style modifi of foods to reduce tional foods both the USNaClO and COwithin treatment Test （pcs./ml） 〈Basic Flow〉 〈Sterilization Effect Results〉 2 Health professionals and educaand improve health will continue to globally. As the survey demonstrates, Bacterial counts before 30 seconds 4.3×10⁵ ＜10 Bacteria coli Escherichia CO2 NaClO treatment （pcs./ml） tors are therefore challenged with evolve. As it does, consumers will reconsumers are interested in controlHollow 7.2×10⁵ ＜10 Salmonella 4.3×10⁵ ＜10 Escherichia coli bridging the knowledge-behaviour main interested in taking advantage ling their health and they view foods Mixer Fiber 7.7×10⁵ ＜10 Water Staphylococcus aureus Hollow 7.2×10⁵ ＜10 Salmonella gap, but are simultaneously well poof certain foods forResidual a specifi ed health and beverages as oneMembrane strategy that pH:5.48 chlorine concentration:32ppm Temperature ：20℃ Mixer Fiber Sterilizable 7.7×10⁵ ＜10 Water their overall Staphylococcus aureus sitioned to help bring knowledge and benefi t. Along with the science, techcan impact health and Water Membrane pH:5.48 Residual chlorineBefore concentration:32ppm Temperature ：20℃ Bacteria：Bacillus subtilis 1 minute 3 minutes 5 minutes behaviour together on the functional nology will also progress to allow food wellbeing. Sterilizable foods plate. to become better equipped Furthermore, consumers recogniseWaterscientists 7.8×10⁵ 3.1×10⁵ ＜10 Cl 80ppm, pH 5.42subtilis Bacteria：Bacillus Before 1 minute 31.3×10⁵ minutes 5 minutes CO 2 at addressing specific health needs that certain sub-populations, such as CO 2 Cl 188ppm, pH 9.20 7.4×10⁵ 7.8×10⁵ 6.6×10⁵ 4.3×10⁵ 7.8×10⁵ 3.1×10⁵ 1.3×10⁵ ＜10 Cl 80ppm, pH 5.42 CO 2 through tailored diets, foods and bev- (JapanFor children, may especially benefit from information, Foodmore Research Laboratories) CO 2 Cl 188ppm, pH 9.20 7.4×10⁵ 7.8×10⁵ 6.6×10⁵ 4.3×10⁵ ENTER No: 0151 erages. functional foods. Education on nutri〈Comparison of Manufacturing Method〉 CO 2
(Japan Food Research Laboratories)
Electrolusis 〈Comparison of Manufacturing Method〉 Dissolved CO2
CO 2
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Water Water CO 2
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CO2
pH
Dissolved CO2 E mizu Killer 5.0～6.0
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Electrolyzed Acidulous Electrolusis W ater
CENTRAL FILTER MFG. CO., LTD.
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Electrolyzed 8.0～ W ater
10～100 5.0～6.0
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◎ 10～100
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No ◎ Unnecessary No ◎ Unnecessary ◎ ◎
Yes △ Necessary Yes △ Necessary △ △
Yes △ Necessary Yes ○ Necessary △ ○
セントラルフィルター工業株式会社
Dissolved CO2 Hollow Fiber Dissolved CO2
Treatment of Chlorine gas and Hydrogen gas Corrosivity
Running cost gas Central Filter MFG Co., LtdTreatment is aof Chlorine comprehensive filter manufacturer and Hydrogen gas Initial cost covering the full spectrum of the fi ltration business requirements ranging Running cost 80 Cl 100 from reverse osmosis (RO)Initial equipment to large mesh strainers. 2 cost ◎ △ △ 〈Specification〉 Rate Rate Rate ％ ％ ％
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E mizu Killer Sterilizable Water
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Size ×400 500Water Cap. ℓ/ｈ Natural-Mineral W×H×D
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6
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Size ｐＨ W×H×D
×400
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Ｃｌ (ppm） ｐＨ
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The WINNING Formula
With the lack of consumer confidence over baby formulae in china, the affluent public is relying on imported products. hoWever, stricter regulatory controls and regulations are set to change the milk poWder landscape in the future. by Yi Fan Jiang, regulatory adviser, eas strategic advice-asia office
The one-child policy in China has also made parents extremely careful about the food given to their babies. After a series of food safety crises, imported baby formula had became a popular choice among young parents in China. A survey conducted in Beijing in 2011 showed that nearly 70 percent of Chinese consumers would not consider domestic baby formula for their children. Besides food safety considerations, another reason that imported baby formulae are so popular in China is because Chinese consumers trust the quality and nutritional values of imported baby formula. In addition, they have increasing consumer purchasing power to buy imported products. However, the price of imported baby formula has not been that attractive. Imported baby formula is at least 50-100 percent more expensive than domestic products and it can even be double or triple the price in China compared to the price in their country of origin. The price difference is a result of
import taxes, as well as other factors including costs spent on distribution channels and transportation, advertising and the huge demand. SupplY Shortage Driven by the huge price gaps, the Chinese have started to turn to an alternative method of buying imported baby formula: ‘parallel imports’. There are mainly three routes for parallel importation of baby formula into China: • The first is through overseas Chinese students, workers or travellers, who are asked by families and friends to carry or mail cans of baby formula back to China. • The second is through small and medium organised groups, which purchase relatively large quantities of baby formula from retail stores and pharmacies in overseas countries and mail them to China. • The third route is through the biggest sellers who buy products in bulk directly from health distributors and export them in bulk to China.
After the products enter China, the most popular route to sell them is through the internet using e-commerce platforms due to their low operation costs, the popularity of online shopping in China, and the lack of regulatory control on online market activities. In comparison, parallel imported baby formula sold online is generally 20-50 percent cheaper than officially imported products. The parallel impor ted baby formulae are mainly sourced from the US, New Zealand and European countries such as the Netherlands, UK, Germany, Switzerland and France. Apart from directly exporting baby formula to China from the sourcing countries, lots of parallel traders export products to Hong Kong first, where there is zero tariff and customs clearance is much simpler, before re-exporting them into mainland China under the less strict trade and customs policy between Hong Kong and mainland China. In addition, because of the ease of travel across the border between the
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January/february 2014 ASIA PACIFIC FOOD INDUSTRY
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ASIA PACIFIC FOOD INDUSTRY January/february 2014
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The strictest regulatory controls are seen in Hong Kong, where the government imposed a regulation effective from March 1, 2013, that permits individuals above the age of 16 to carry across the border a maximum of only two cans or 1.8 kg of formula for infants and young children under the age of three within 24 hours. Individuals violating the regulation will face a maximum fine of HK$500,000 (US$64,480) and two years in jail. Other governments of baby formula exporting countries have also begun to react. The Dutch Ministry of Economic Affairs in May 2013 ordered an investigation into the persistent shortage of certain brands of baby formula, which was believed to be the result of unlawful exportation of the products to China. The Dutch baby formula industry could be asked to submit business information to assist the government in collecting evidence to alert the
kionopi
regulatorY initiativeS Facing the shortage of baby formula caused by parallel trading, governments and manufacturers in the sourcing countries and regions have had no choice but to limit purchase quantities in retail shops and an individual’s carriage of baby formula across the border. The purchase restrictions first started in the US and spread to other sourcing countries and regions, such as Australia, New Zealand, Germany, the Netherlands, Hong Kong, Macau and the UK. In most of the countries and regions, purchase restrictions have been regulated by the industry itself and the maximum purchase quantities are limited to one to 12 cans.
Marc Samsom
Mainland and Hong Kong, Mainland travellers have also largely contributed to the parallel exporting of baby formula from Hong Kong. In 2012, Hong Kong imported a total of US$687 million worth of baby formula, which represented a 49 percent increase compared to 2011. Nevertheless, retail outlets in Hong Kong are still constantly facing empty shelves of baby formula. The situation became worse during Chinese public holidays when more travellers went to Hong Kong and purchase baby formula for personal consumption or as gifts.
Food safety considerations propelled the demand for imported baby formulae.
Chinese authorities to unlawfully imported baby formula sold outside of the regulatory controls in China. At the same time, the industry has been working on ways to ensure enough products, such as increasing the production and restricting purchase quantities in retailing stores. As it is difficult to control the baby formulae that are being imported and sold online through unofficial channels, some speculators have seized this opportunity to earn more profits under the regulatory loophole. A media report in April 2013 revealed that an ‘imported’ baby formula sold in China was actually manufactured in China with expired milk powder and re-packaged into the particular brand’s boxes with the original expiry dates changed. It was also reported later in May that some companies do not operate their own factories overseas, but have been using contract manufacturing plants in New Zealand to produce baby formula under different brands, solely to export their products to China for higher profit. To protect the reputation of its dairy industry and exported products, the New Zealand Ministry of Primary Industry (MPI) in June 2013 introduced brand registration for baby formulae that were being exported to China. The MPI was also investigating mechanisms to better collaborate with the Chinese authorities on areas such as formulation and product labelling. Food SaFetY reForm Facing the challenges on the global baby formula supply and product safety issues, more countries will have to work closely together in the future to ensure a safer and more stable global supply of baby formula. China, being at the centre of these issues, will definitely have much more challenges to deal with. Following the government’s reorganisation to set up the China Food and Drug Administration (CFDA), the most extensive food safety
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January/february 2014 ASIA PACIFIC FOOD INDUSTRY
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administration of baby formula production, with the purpose of a further implementation of the Working Guidelines on Improving Baby Formula Quality and Safety. These regulations will set stricter market-entry rules and increase government supervision on the production activities of domestic baby formula manufacturers. Also underway is the amendment of the national Food Safety Law after its introduction in 2009. The aim of the new Chinese food safety legislation is to set up the ‘strictest-ever’ food
Loni Townsend
reforms undertaken by the Chinese government have just started. To ensure the quality and safety of imported food to China, the Chinese authorities have imposed stricter import regulations. China’s new Provision on the Administration and Registration of Overseas Food Manufacturers, effective since May 1, 2012, states that foreign manufacturers will constantly need export approval from China’s Cer tification and Accreditation Administration. The provision has also given the
Foreign babY Formula companieS are Facing a more challenging regulatorY environment in china. authorities greater power to cancel a manufacturer’s registration number if their product quality is not up to China’s standards. The Provision on the Administration, Inspection, and Quarantine of Imported / Exported Dairy Products, effective on May 1, 2013, states that baby formula and other dairy products will require quarantine inspections on a batchby-batch basis, where more than 30 microbiological, chemical and nutritional parameters have to be tested. Consumers, conventional retailers and activists have also been pressuring the authorities to ban online sales of foods. Effective since April 1, 2013, the Beijing Food Safety Provision issued by the Beijing government requires all online retailers to obtain a business licence and a food product market circulation licence to be eligible to conduct online marketing for foods. At the national level, the government has recently initiated regulatory enforcement campaigns on the online sales of drugs and general consumer products. On May 31, the State Council Executive Meeting, chaired by Premier Li Keqiang, discussed plans to improve the nation’s baby formula product quality and safety. Following the central government meeting, the
Ministry of Industry and Information Technology (MIIT) on June 4, 2013, issued the Work Plan on Improving Dairy Powder Quality and Improving Consumers Confidence to initiate the consolidation of the domestic dairy industry. The MIIT subsequently drafted detailed policies on promoting the merging and restructuring of the domestic baby formula industry, pending approval by the State Council by end 2013. It is expected that according to the policy, the number of baby formula manufacturers will be significantly decreased in the next few years through merging and elimination, while the industry’s scale and production shall be enhanced. On June 20, 2013, nine Ministries in China issued the Working Guidelines on Improving Baby Formula Quality and Safety. The guidelines suggested that baby formula should be sold only at designated sales counters and drug stores on a trial basis, in line with the central government’s plan to impose an administrative framework for baby formula similar to the control of medicines. The first trial of selling baby formula in drug stores and vending machines had been initiated in several cities since September. In early August, the CFDA issued several draft regulations on the
safety controls to rebuild consumer confidence and the competitiveness of the Chinese food industry. tougher regulatorY environment While China is working hard to improve its domestic dairy industry, foreign baby formula companies, on the other hand, are facing a more challenging regulatory environment in China. In early July 2013, the China National Development and Reform Commission (NDRC) initiated an anti-trust investigation on nine baby formula manufacturers and ingredient suppliers, mostly multinational companies. These companies were charged with ‘price fixing and restricting the minimum prices for resale’ to their distributors, which was against the Chinese Anti-Monopoly Law. Six out of the nine companies were fined a total amount of US$110 million. In early August, Fonterra warned several baby formula manufacturers that its whey protein ingredient manufactured in New Zealand was suspected to be contaminated by a vital bacteria, Clostridium botulinum, resulting in a series of considerable product recalls in several countries in Asia, with Dumex in China being
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ASIA PACIFIC FOOD INDUSTRY January/february 2014
the most affected. Although the contamination was later found to be by the non-safety concerned clostridium sporogenes, the reputation of the company as a dairy supplier and the entire New Zealand dairy industry had been badly impacted. Even after several months following the crisis, the Chinese quarantine authority had not released the import restriction of New Zealand made dairy products. On 16 September, a China Central Television (CCTV) report alleged that Dumex was paying nurses and doctors in Chinese hospitals to feed new-born babies with its infant formula in order to promote its products. Following the report, it was also revealed that it had been a common practice in Chinese hospitals and the companies involved were mainly
multi-national companies, including Abbott and Wyeth. The report suggested that such practice could be considered as bribery. The National Health and Family Planning Commission (NHFPC) announced the nation’s policy on marketing infant formula the next day, including the country’s Administrative Measures on the Marketing of Breast Milk Substitutes, and urged hospitals to investigate the situation and stop promoting infant formula. On September 28, 2013, the China Dairy Industry Association held a press conference to introduce six premium domestic baby formula brands, which were supported by the MIIT. The event was considered a step forward of the Chinese government’s effort in supporting and consolidating the domestic industry. In view of this,
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Reading The Future WiTh tea Leaves
Grown mostly in AsiA, teA is one of the most populAr beverAGes in the world with mAny heAlth benefits. As reseArchers in the netherlAnds hAve discovered, it cAn Also provide A Glimpse into the heAlth of the plAnet. by adeLine tan, senior project mAnAGer, netherlAnds foreiGn investment AGency From the hills of India to the mountains and valleys of Kenya and China, tea is grown in some of the world’s most exotic places. Many nations are expanding their tea producing acreage to meet the rising world demand for this popular and satisfying beverage. Today, more than 45 countries grow tea in big quantities. Among them, Asian countries are the leading ones producing more than 91 percent of the total amount annually. China, India, Japan, Sri Lanka and Taiwan are among the top producing countries. Tea was first produced in China thousands of years ago. Before long, it was introduced to Japan, then to Europe. People in almost every corner of the world enjoy the beverage and more than three billion cups are consumed daily. Tea, as a natural beverage, is one of the most popular and lowest cost drinks, next only to water. People drink it for a variety of reasons: daily necessity, health benefits, medical remedy, or simply to enjoy the taste and joy of a cup of drink! Now there is another benefit to drinking tea. A new research taking place in the Netherlands aims to prove that tea, or rather discarded tea bags, can predict the health of the planet. Can tea bags really help us understand climate change? Ecologists at the Netherlands’ University of Utrecht seem to think so, as they have, together with an international group of scientists, devised a novel method for gaining data on climate change.
From an idea picked up during a postgraduate course in 2010 to an international project covered by media from the Netherlands to Sweden, the Tea Bag Index (TBI) is all about ‘crowdsourcing’ valuable research on climate change. The research is led by Utrecht University’s Joost Keuskamp and Bas Dingemans, and the Netherlands Institute of Ecology’s postdoctoral student, Judith Sarneel, and the rest of the TBIteam on their interactive website. Measuring the decay rate of plant litter can provide valuable information about the release of carbon from the soil and consequently about climate change. Using tea bags instead of ‘regular’ litter allows for the results to be standardised, especially if the same brand is used wherever the experiment is carried out, and this is the premise behind the development of a universal TBI. decomposition— a criticaL process The decay of organic material or
‘decomposition’ is a critical process for life on earth. Through decomposition, nutrients become available for plants and microorganisms to use in their metabolism and growth. As plant material decomposes, it releases the greenhouse gas carbon dioxide (CO2) into the atmosphere. A fast decay leads to more CO2 in the atmosphere and slow decay gives rise to higher soil carbon stocks. For better insight in the global CO2 emission from soils, it is important to know more about the rate of decomposition in those soils. There is a tremendous global variation in the decomposition rate of plant material. In cold environments, for example, the decay is slower than in warm environments. Factors like moisture content, acidity, or nutrient content of soils can have great influence on how quickly plant material decomposes. To get a clear picture of global decomposition, a lot of information on different soil characteristics and related decomposition rates across
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Through a simple, standardised, cheap and time-efficient method, the decomposition rates between climatic zones, geographical regions and ecosystems can be compared. This requires measurements from a very large amount of locations and an even larger amount of data points. Collecting the required amount of data using traditional litterbag experiments is not feasible. Sewing the litterbags, weighing the litter, and placing and recovering the litterbags are time-consuming for one field site—let alone thousands of field sites across the world. Tea, as sold by tea companies, consists of dried leaf litter. A number of companies are manufacturing tea bags with synthetic mesh (mesh size: 0.25 mm). These tea bags are in fact, mini-litterbags. They are commercially available and come at a very low cost. STandard reference meThod In ecological research, different substrates have been used as standard material to be able to compare microbial activity and decomposition rates between ecosystems. As the bulk of
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Tea Bag experimenT In terrestrial ecosystems, Dr Keuskamp explains, soil organic matter is a major carbon store, which holds about three times more carbon than the atmospheric pool. Therefore, changes in soil carbon storage can significantly strengthen or reduce climate change. The global warming prevention protocols identify the need for a more fundamental understanding of decomposition and stabilisation of soil carbon. In this experiment, the researchers present a newly developed standardised method for global collection and comparison of decomposition rates. The results from this method can be combined with the existing data in the digital soil map of the world, containing a large number of abiotic soil parameters. This extension will allow for extensive analysis of the interaction between soil conditions and decomposition rates, thereby greatly improving our understanding of global soil carbon dynamics.
Discarded tea bags are being used to gather data on climate change.
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the world is needed. Many factors are already known and archived in a soil map of the world. However, an index for decomposition rate is still missing and predictions are often imprecise.
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TBIprotocol. With your data we can calculate a Tea Bag detailed @ With this index decay rates all over Index for decomposition. the world can be compared to improve our understanding of January/february 2014 ASIA PACIFIC FOOD INDUSTRY soil functioning. In the end, this will help in constructing better Weigh Soil map www.decolab.org/tbi bagsour research efforts models for climate change. We hopetea that will unleash an enormous amount of data. Want to participate?
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plant tissue consists of cellulose, standExperimental setup (For the scientific protocol: http://www.decolab.org/tbi/protocol.html) ards were defined by cellulose objects such as filters, ropes, cellophane film t Take a Lipton Green tea and Rooibos tea bag. and cotton cloth. t Find a suitable location (outside your garden) The latter developed into the wideTea bags home ly used cotton strip tensile strength Take t Bury the tea bags Bury slightly apart from each other. The tea has 3 months tea bags flyer and loss method with standardised cloth. to be approximately 8 cm deep, with the above out the in soil label Dig tea bags Cellulose decomposition rates often ground. tea bags deviate from litter decomposition rates t Dig as litter degradation is strongly influTBIup the bags after 3 months enced by its other compounds. The t Dry the bags in a warm and/or sunny place standardisation method uses plant t Gently tap off the soil on the outside of the bags material from different qualities, makWeigh map the www.decolab.org/tbi tSoil Weigh teabags using this flyer as scales (instructions ing this method a better proxy. tea bags Based on pilot tests, the researchbelow and see website) and fill in the number of centimeters ers selected two tea types markedly The with the location, and email on crowdsourcing approach of your this studyname uses commercial green tea address and to participate? We will give you your TBI as soon as differing in decomposability. The se- Want www.decolab.org/tbi/data. rooibos tea bags, which serve as mini-litterbags, to compare microbial activity lected teas for use in the TBI were the and possible. decomposition rates between ecosystems. (For the scientific protocol: http://www.decolab.org/tbi/protocol.html) easily decomposable green tea (dried leaves of camellia sinensis) and the t Take a Lipton Green tea and Rooibos tea bag. more recalcitrant Rooibos tea (dried t Find a suitable location (outside your garden) 90° leaves of aspalathus linearis). Using these tea types, both field t Bury the tea bags slightly apart from each other. The tea has 1. fold this 2. fold 3. cut the 4. put tea bag label 5. put flyer on 6.the read the scale and laboratory experiments were con- to be approximately 8 cm deep, with the above flyer lengthwise lengthwise dashed line string in the slit table edge and when the flyer again to the dot to the dot gently push towards tips ducted to assess their decomposition ground. tipping point rates and the sensitivity of these rates Contact t Dig up bags after 3 months more people contribute to this project, base can the be generated on a resolution to field conditions and temperature. tbi@decolab.org www.decolab.org/tbi more types of soil will be used.” and athe scale thatin is| impossible to at- sunny In addition, the researchers con- t Dry bags a warm and/or place The simplicity of these litterbag extain by the use of traditional methods. ducted a sequential carbon extraction Utrecht University | Ecology & Biodiversity offused thetosoil on the of makes the bags periments them also suitable for This TBI tap can be improve our outside to predict the decomposable fraction t Gently Padualaan 8 | 3584 CH Utrecht | The Netherlands ecology high schools. the effectusing of bioticthissoil of both tea types. The decomposi- t understanding Weigh the of teabags flyer as courses scales at(instructions The team initiated the design of a and abiotic factors on decomposition tion rates of both Rooibos and green below and see Ecology website) and fill in the number of centimeters & Biodiversity 001 learning method for practical lessons rates. tea were fitted to a two-phase decay with the location, your name and email address on in cooperation of schools in Nicaragua, There are obvious disadvantages to function in which the decay of the rewww.decolab.org/tbi/data. We will give you your TBI as soon as Iceland and the Netherlands. crowdsourcing in this kind of work. As calcitrant phase is set at zero. non-scientists conduct the experiment, Due to the use of a labile and a possible. reading the tea Leaves the data may have relatively large varirecalcitrant tea species, only one The TBI has already been tested in ances. The accuracy of weighing the point in time was needed to solve 90° twenty countries but requires an even material may vary between people and the two unknowns in the equation. broader implementation to provide the choice of ‘representative’ location The researchers assumed that (i) a the required mass data for meaningful may be interpreted differently. People strong relation exists between carbon 1. fold this 2. fold 3. cut the 4. put tea bag 5. put flyer on 6. read the scale analysis. of flyer lowliving in cities can interpret their garfractionation and the decomposable flyer lengthwise lengthwise dashed line string in the slitHowever, table edgethe and aspects when the again the dot to the dot gently push towards tips cost, accessibility, sustainability and den as a good location, whiletopeople in fraction and that (ii) environmental tipping point fun look set in helping the uptake of the countryside may be looking for an influence on the size of the labile fracContact this ingenious data gathering method. undisturbed soil. tion are equal for both green tea and tbi@decolab.org | www.decolab.org/tbi The ultimate goal: a global daHowever, as Dr Keuskamp points Rooibos tea. tabase with results from as many out, “With crowdsourcing there is Utrecht University | Ecology & Biodiversity different soil types as possible. So far, power in numbers. The easier and croWdsourcing approach Padualaan 8 | 3584 CH Utrecht | The Netherlands people from at least thirty countries more accessible the method, the more The researchers are not only calling on have already sent in results through data will be generated. Using scientific all scientists but also the general public Ecology & Biodiversity 001 the website. scales may produce more accurate to join the experiment. This way, many data, but far less data than when using small efforts will unleash an enormous improvised scales made from the tea amount of data. They believe that with For more information, box that anyone can produce. And if this crowdsourcing approach a dataENTER No: 0161
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gaining ground in new MarketS
hanced competition at home. Gaining a slice of the domestic pie has become much harder, and manufacturers may have to seek greener pastures abroad in order to achieve sustainable growth.
Paul Fris, Rotterdam, the Netherlands
A nAturAl progression of growth And expAnsion is to enter new mArkets. while seemingly strAightforwArd, Achieving this in the right mAnner requires An Alignment of product positioning with suitAble mArkets, the right pArtners, And the optimAl mode of entry. by Sherlyne yong
Walk into a supermarket these days and it is not uncommon to find noodles from South Korea, sauces from Japan, soup mixes from the US, and snacks from Germany—all in the same aisle. This is the result of today’s global trading environment. Buoyed by greater economic growth and technological advancements, manufacturers are no longer serving their domestic markets alone, but extending their reach to the rest of the region and the world. This has been made much easier with the increasing number of free trade agreements (FTAs) in effect, which has connected Asian manufacturers to major
economies and new markets. For instance, the ASEAN Free Trade Area enables all ten member countries to enjoy tariff reductions when trading with each other. ASEAN as a whole also enjoys FTAs with established economies like Japan and South Korea, as well as developing nations like China and India. Agreements like these, also available on a country to country level, are pivotal in enhancing overall trade as they remove barriers that include cost and regulations, making it much easier for exporters to explore new markets. On the flipside, the rise in international trade has en-
Facing challengeS head-on According to S Jai Shankar, trade commissioner at Malaysia External Trade Development Corporation (MATRADE), one obvious challenge of globalised trade is competition. There are a fair number of developing economies in Asia which, when exporting to another nation for the first time, tend to enter traditional sectors like food and beverage. Simultaneously, companies that formerly concentrated on the lower end of the food chain are now moving upstream to processing. This “encroaches upon an existing market for us. There are a lot more competitors coming to our sector, which essentially means we need to innovate and move up the value chain, and look at other ways of competing,” he said. Commonly perceived to be negative, competition serves as an impetus for innovation and improvement in process improvement and technical capabilities. This could include expanding and tweaking one’s portfolio to cater to a specific niche (eg: gluten-free, low sugar) or reaching out to a new segment (eg: getting halal certified). I m p ro v i n g i n t e r m s o f product quality also helps companies cross over the hurdle of regulations. Overcoming regulations are part and parcel of entering new markets, which by itself is essential when existing
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Being unique Meeting regulations may help companies enter a market, but excelling in it requires much more. To gain a foothold, it is important to develop a unique selling point. For Unifood, it is providing a healthy alternative to dairy milk. Producing powdered soy milk made from organic beans, the company caters specifically to the affluent crowd across various markets, which include Thailand, Indonesia, Vietnam, Hong Kong and Taiwan among others.
Rafael Vila, Marble Falls, US
sures that the product is of a particular standard that matches consumer expectations.
Success in export markets are largely dependent on finding the right product for a specific market with a suitable partner.
Simon Gray, Birmingham, UK
Sam LeVan, Philadelphia, US
Jacqueline Munoz, Baltimore, US
markets become too saturated for growth. However, regulatory requirements are getting harder to achieve, especially in Europe, and they often translate into extra costs. “As the EU expands, the requirements are also being strengthened and becoming far more stringent,” said Mr Shankar. Nonetheless, he adds that this is not necessarily a bad thing as “once you achieve that, then it makes it so much easier to export to the rest of the world.” Indeed, as consumers are becoming more vested in aspects like safety and hygiene apart from taste, adhering to regulatory requirements en-
They target the higher end segment by placing their products at a higher price point. “Being a ‘Made in Singapore’ product is one of the advantages, but it is also more expensive, so all your business target is premium,” explained Andy Oh, marketing manager at the company. By marketing their soy milk as a premium product found in selected high end food markets, the company avoids competing with local brands, which are considerably cheaper. According to him, the company has been seeing double digit growth in the last three years alone. While part of this can be attributed to increasing affluence in the region, another reason is the growing clean label movement. As consumers become more educated, they seek healthy options that are functional and clean in general. “In order to grow the business, our plan for the next three years is to go into more soy plus and soy deluxe products,” said Mr Oh. This includes functional products, such as adding fortified nutrients like calcium and other vitamins, as well as plant-based omega 3s. This would also help the company reach out to another group of consumers—the vegans and vegetarians, and possibly the ageing population as well. Echoing the need for a product that is suitable for the market is Jimmy Soh, MD of Chye Choon Foods, who believes that every product has a specific market that they would address. As a result, his company takes on a different approach depending on where they are exporting to. In Asia for instance, the company’s rice vermicelli products often face stiff competition
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from other manufacturers in the region. To circumvent this, they have positioned their products to satisfy a market that looks for imported products rather than those with a local origin. Out of Asia however, the target audience would be the mainstream and ethnic market chains, especially as people are opening up to Asian cuisine. A tangible result of this is the company’s foray into Italy with its rice spaghetti, which has been seeing consistent sales and growth. Another example that rides on ethnicity is the company’s Singapore Fried Noodles, which it markets outside of Singapore. According to Mr Soh, it boils down to how you position and package your product. reinventing the wheel Along with the fact that nothing in this world is stagnant, achieving growth entails keeping up with times and making changes as demands shift. Taking this cue is 104-year old Yuen Chun, which has expanded its line of sauces to
Globalisation has internationalised shelves as manufacturers turn to export markets for added growth.
include organic and gluten free options, so as to cater to the natural trend. According to Lim Yew Hock, director and GM of the firm, this was driven by the need to do something unique that competitors are not doing. Offering these products both as an OEM and under private labels, he added that the trend of gluten-free started in Australia, where “they were the ones who turned the market from non-gluten free to gluten free. They led the market and they will continue to lead the market in many things because they do a lot of R&D.” Research has become a core component in manufacturing as regulatory bodies and consumers alike are becoming more particular and demanding for research-backed claims. Companies have to obtain a seal of approval—often through certification—before they can make justifiable claims like organic, gluten-free or halal. This is all part of the evidence-based approach that the industry is taking. “You have to be certified be-
fore you can put those logos,” said Mr Lim, referring to the ubiquitous green Euro Leaf logo or USDA symbol that consumers look out for on organic goods. One way of achieving this is opting for international bodies as they provide objectivity, which is crucial when exporting to a variety of markets. But as much as standardisation is important, so is diversity. In particular, there is a need for manufacturers to localise products as demands vary vastly from country to country. “Due to the weather and lifestyle, consumption requirements and expectations are totally different,” said C L Tan, senior divisional manager of the international sales division, Pokka Corp (Singapore). For instance, demand for the company’s beverages are higher in Singapore because of the hot weather, but in Europe, they are more of a summer product. Due to the fact that Europe itself is huge on food and beverage processing, coupled with the costs of exporting, the company has to prime their drinks as a niche product in order to stay competitive. “Basically, you have to find your competitive edge, how to sell, and most importantly, to find the right partner who helps you put the right product in the right distribution area, then chances of success will be higher,” said Mr Tan. Making FirSt entry Now that you have a product primed for export, what is the best mode for entering a certain market? This decision is based on a variety of factors that includes market size, and the strength of competition among others. For
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ers are also looking to enter the Asian space. For instance, TYJ is working with two pizza companies in Germany and the Netherlands to create a pizza roll with toppings that utilise its products. This would help the company expand its European presence, while at the same time, it is open to helping the pizza companies distribute their range of products into Asia. “We see multiple angles when working with right partners. We can do brand distributions with them, bilaterally; we can do private labels under their brand, or we can even—in a broader context— set up a joint venture with them for local manufacturing,” said Mr Lee. This includes collaborating with companies who are already exporting to Asian countries to reduce cost of production. Foreign companies like McCain and Quaker are also increasingly looking to enter Asian space through contract manufacturing. While these are some of the entry strategies that can be employed, there are times when companies do not have much of a choice. For instance, most
chokingxl, Singapore
instance, if volume has reached a point where it is no longer economical to ship, manufacturers may have to consider setting up shop in the area. Generally, companies entering markets for the first time tend to start small by partnering with distribution partners. This was the case for Tee Yih Jia Food Manufacturing (TYJ)—known for its spring roll pastry—which started their frozen distribution back in 1969 with a very specific focus. “We linked up with all the Chinatown importers and we sent all our frozen pastry and distributed it to restaurants. That’s our first wave into Europe, mostly into the Chinatown food market. The second wave was entering into retail, which was the Asia retail food market,” recalled Gary Lee, VP of regional sales and marketing at the company. To date, Europe is its biggest market, followed by the US. After firmly establishing itself in the ethnic markets, it was time to evolve. “After that evolution, we started to look at different channels. We focused on the mainstream, which is the Western supermarkets and food services,” said Mr Lee. One way of achieving this is through contract manufacturing, where companies can better enter the mainstream space by leveraging on the labels of huge brands in Europe or the US for example, rather than using their own. Collaboration can also take place in a network to network exchange in terms of distribution, which is part of TYJ’s master plan up to 2018. This is driven by the fact that while Asian producers want to enter the mainstream space, mainstream brand own-
Consumers are increasingly looking out for proof of product quality, such as the Euro Leaf symbol on organic goods in Europe.
exporters cannot ship meat products to Europe due to the need for certification. The same applies for products with more than 49 percent of uncooked seafood. The only alternative is to work with factories based in Europe. Other limitations include insufficient resources, especially in the case of start-ups. One such instance is Soyato, a Singapore-based soy ice cream producer, who overcame this by teaming up with Chinatown Foods as a distributor. They are also working together on a program called ‘Working In Partnership’, which is a consolidation program that allows buyers to order products from over 20 companies and consolidating it into one container. “In other words, we are trying to remove the hurdle of minimum order quantity for overseas buyers,” said Alan Phua, business development director at Soyato, who explained that buyers are wary of buying an entire container of product for the very first purchase. This consolidation program makes it easier for them to commit to their first order. At the end of the day, exporting to new markets is not as straightforward as it seems, but involves a lot of nuances. Aptly summing it up, Mr Lee said: “Getting the right certification is important, but the right product, the right price, the right channel, the right distribution contacts, it all has to be aligned and it’s almost quite important because if one of them is not aligned, you need to spend a lot of time doing it.”
For more information, ENTER No: 0170
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AsiA’s Economic outlook 2014
Tagosaku
The daTa from 2013 showed encouraging signs from The us and Japan. china performed beTTer Than expecTed in The closing sTages and asia looks upbeaT for The year ahead. by asian developmenT bank
As 2013 draws to a close, the prospects for 2014 in the US and Japan look more upbeat, but recovery in the euro area may not be as strong as previously thought. Data on gross d o m e s t i c p ro d u c t ( G D P ) through the third quarter suggests that the major industrial economies are on track to meet the 0.9 percent growth rate forecast for 2013. Industrial production indicators in the US and further fiscal stimulus in Japan suggest a somewhat stronger growth in 2014 than forecast, despite softening in the euro area. Growth in the major industrial economies is expected to reach 1.9 percent in 2014. Recently released data sup-
ports the average GDP growth projections for developing Asia, released in October 2013. The region’s growth is still expected to hover around six percent this year and next, with a marginal decline to 6 percent this year from 6.1 percent in 2012, before improvement to 6.2 percent in 2014. The composition of subregional contributions to this average growth changed slightly, however, with some downward revisions in Southeast Asia and the Pacific and upward adjustments in Central and East Asia. strong PErformAncE from chinA Despite uncertainties in the glo-
Southeast Asia’s growth is anticipated to moderate slightly.
bal environment, indicators in East Asia are positive, boosting growth forecasts for both 2013 and 2014 to 6.7 percent, up 0.1 percentage points. This revision is driven mainly by unexpectedly strong performance in China. For 2013, China’s growth projection was raised 0.1 percentage points to 7.7 percent, as infrastructure investment boosted third quarter growth above the rate assumed. The structural reforms proposed by the Third Plenary Session of the 18th Central Committee of the Communist Party of China in November 2013 will likely have a positive impact on private consumption and private investment starting in 2014. However, the upside potential for growth is limited by the reining in of credit growth in line with recent central bank statements about deleveraging and somewhat decelerated public investment intended to curtail local government borrowing. China’s growth in 2014 is likely to be somewhat stronger than previously forecast, to hit 7.5 percent, supported by structural reforms and better economic conditions in the industrialised economies. Elsewhere in East Asia, South Korea posted in the third quarter, its strongest seasonally adjusted annual rate of growth since the first quarter of 2011, due to robust private consumption and machinery investment. In contrast, growth slowed in the third quarter in Taiwan and Hong Kong as slower export growth and internal factors dragged down these two economies. South Asia is on track to meet growth expectations in 2013 and 2014 as projected. India, the dominant economy in
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in the run-up to general elections, it will be supported by export recover y and most likely sustained growth in capital expenditure after the second quarter of FY2014, once political stability has been reestablished. Meanwhile, more recent data for other South Asian economies show that trends in the sub-region are in line with initial assumptions. tEnsions in southEAst AsiA Southeast Asia’s growth is anticipated to moderate slightly, bringing the forecasts down by 0.1 percentage points, to 4.8 percent for 2013 and 5.2 percent for 2014. The revision reflects
Growth in the Indian economy was spurred by higher output in both industry and agriculture, and a rebound in exports.
Jakob Montrasio, Saarbrucken, Germany
Karl-Sebastian Schulte
Rainer Stropek
the region, is still anticipated to grow at 4.7 percent in FY2013 (ending 31 March 2014) and 5.7 percent in FY2014. In figures suggesting that the Indian economy has bottomed out, economic growth accelerated to 4.8 percent in the second fiscal quarter from 4.4 percent in the first. Growth was spurred by higher output in both industry and agriculture and a rebound in exports. However, domestic demand remains weak as both consumption and investment continue to grow only sluggishly. Although growth will remain soft in the first quarter of FY2014, owing to delayed investment announcements
political tensions in Thailand in the last quarter of 2013 and their adverse impact on consumption and tourism. Devastation wrought by Typhoon Haiyan is undermining the Philippines’ growth in 2013, though this is mitigated by the relief efforts under way and transfers from abroad supporting consumption. The ramping up of reconstruction should boost economic activity there in 2014. Meanwhile, growth in Singapore is expected to be more rapid in 2013 in light of strong third quarter growth supported by externally oriented sectors, including exports. Growth forecasts for the rest of the sub-region’s economies are generally in line with previous assumptions. Indonesia, where private consumption is buoying growth, anticipates that recent increases in interest rates will moderate domestic demand as exports recover slowly. Thailand expects some recovery in exports and disbursements from government investment programs, but political turmoil this year may still dampen growth. Growth in Central Asia is gradually recovering. Aggregate growth projections for the subregion are revised up, from 5.4 percent to 5.7 percent for 2013 and from six percent to 6.1 percent for 2014. These revisions reflect stronger performances in Kazakhstan and Turkmenistan. Economic growth in the Pacific is now seen to moderate from 7.1 percent in 2012 to five percent in 2013 before beginning to recover to 5.4 percent in 2014. These projections are weaker than forecasts.
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Key Trends For 2014 wiTh The economic condiTions of The region in mind, leT us Take a look aT The five maJor Trends ThaT will be prominenT in 2014. by Wong tsz hin
Pittaya Sroilong, Bangkok, Thailand
With the global economy apparently on the rebound, the food and beverages industry can look forward to 2014 with some optimism.There are five key trends that are set to take centre stage in the coming twelve months.
inflAtion outlook International commodity prices continue to provide a benign inflation environment for the region. Although geopolitical uncertainties in the Middle East have kept oil prices elevated, the price of Brent crude receded from its peak of US$117 per barrel in early September to an average of US$105 in the first week of November 2013. Meanwhile, improved supply has pushed down global food prices. The agriculture price index contracted again in October for a cumulative decline of 16.3 percent from its peak in the second half of 2012. Year-on-year price changes for beverage and raw material commodities have been negative since November 2011. Average inflation in dev e l o p i n g A s i a re m a i n s a s forecast—3.6 percent in 2013 and 3.7 percent in 2014—but sub-regional contributions change. Inflation in East Asia is expected to be 0.1 percentage points higher in 2013 than previously forecast, as rising
vegetable prices accelerate inflation somewhat in China, and currency depreciation ratchets up consumer prices in Mongolia. In contrast, inflation is adjusted down in South Asia for both 2013 and 2014 because of a change in the consumption basket underlying the consumer price index in Bangladesh. Inflation, nevertheless, continues to be problematic. Declining food prices are dampening inflationary pressures in Southeast and Central Asia, prompting slight downward adjustments to inflation projections for both sub-regions. Destruction from the typhoon in the Philippines has brought inflation to affected localities but no big impact on the national average. Inflation in the Pacific, on the other hand, is expected to reach six percent in 2013 and 6.4 percent in 2014, higher than earlier projected mostly because the rate is stubbornly elevated in Timor-Leste. For more information, ENTER No: 0171
1. food security & safety Organisations around the world have been stepping up their efforts to eradicate two major food problems—hunger and food safety. In 2013, we have seen organisations, such as the FAO, opening dialogue and establishing initiative to ensure food security in developing countries, reducing food wastage and monitoring the safety of food. In addition, consumers have been constantly reminded about the importance of surveillance and inspection in food production with the numerous food scares that have plagued the year, leading to countries like China putting forward policies and systems to eradicate the issue. These efforts are expected to intensify in 2014 and the result would be more stringent control over food and beverage manufacturers through standards, and tougher penalties imposed on offenders. 2.AsEAn harmonisation Although it is still a good two years away from the expected implementation, the ASEAN Economic Community, which is set to take place by the end of 2015, has gotten many excited about the prospect of this consolidated economy with a combined GDP of over US$3.5 trillion.
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At the moment, the relevant authorities are still working on standardisation issues, which has been a particular challenge with the different standards currently in place in the different countries.The ASEAN Food and Beverage Alliance was launched in April 2013 to harmonise food policies and standards to enhance the trade of safe, high quality food. The free movement of goods has also provoked companies into thinking where to locate the manufacturing plants. Some companies have begun shifting their core operations to locations where the administrative and labour costs are lower, while foreign manufacturers looking to penetrate the Asian market are looking at setting up base in the more investment-friendly countries of the region. 3. healthy food As consumers become more educated, they are also becoming more particular about the food they take in. At the same time, there are governmental efforts to reduce health issues, such as malnutrition and obesity, through the addition of healthy ingredients and the reduction of additives, like sugar. Ingredient substitutions, such as natural sweeteners, are gaining in popularity and seeing greater acceptance from consumers. However,
there is still a strong perception that an ingredient has to be natural to be considered healthy. As a result, manufacturers are focusing more effort in looking for natural substitutes, like stevia and the up-and-coming monk fruit sweeteners. As Mintel has reported, there has been a 26 percent increase in food and beverage launches with a functional claim in Southeast Asia between 2011 to June 2013.This trend is set to continue. In addition, other food segments, such as natural and organic, will likely see sustained growth with Asian consumers warming up to these concepts.The only thing that was holding these food segments back was the relatively high price differentiation, which will be offset with the growing affluence of the region. 4. Packaging Designs There has been a movement of late that sees creative packaging design that does not only address practical and ergonomic considerations, but also help limit the amount of waste generated. Although still not a critical factor that will influence consumer decisions, products with outstanding packaging designs will create a stronger impression and greater appeal.The idea also goes well with the increasingly environmentally conscious public, and the feel good factor
The free movement of goods that the AEC will bring has gotten companies thinking on where to locate manufacturing plants.
associated with the purchase—as an effort to save the environment— will interest young consumers with greater spending power. 5. myanmar opportunity Myanmar is the developing economy that has generated a lot of buzz in 2013 as brands begin the conquest of this uncharted territory. Major corporations, such as Pepsi and Coca-Cola, have already set foot into the region in an attempt to gain an early bird advantage. Other consumer brands are set to follow. However, as with any other economy that has just opened up, there are still many challenges with administrative red-tapes and lacking infrastructure. So far, the government has appeared receptive to foreign investment and showed openness by not leaning towards its long-time ally China. The huge potential of the market means that at the moment, only companies with sufficient financial backing or reputation are able to truly gain a solid foothold.At the same time, many business consultancy agencies have warned potential investors that there are a lot of hurdles to clear to establish business in the country. The opportunity is definitely there, but those who want to venture into the market have to be prepared to be present for a long haul.
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12 Drivers For FooD & Beverage Warehouse automation
Productivity and cost effectiveness are important in the distribution supply chain for food & beverage retailers and wholesalers to remain competitive. Coupling these two points with the fact that consumers are now demanding more choice, more price-conscious, and are more willing to switch allegiances in order to get better value, there is a strong case for adopting warehouse automation. Automation in the warehouse and distribution centre is one strategy to reach pro-
ductivity and cost goals. This article will identify 12 factors— from bio-mechanical injuries and harsh working environments to space utilisation and strategy for slow movers— which are driving the need to increase the use of automated systems. 1. Bio-Mechanical injuries Food & beverage distribution centres primarily handle case goods. Case goods tend to be heavy, especially when a worker handles these caseloads for
2. need For sPeed & accuracy Orders for products must be processed, picked, and shipped at an ever increasing speed, where the trend of smaller shipments remains. Accuracy in order fulfillment is of vital importance. Picking errors cannot be tolerated from a customer service and cost standpoint.
Workers who handle heavy goods are regularly are subjected to a higher risk of injury.
3. sPikes in throughPut Seasonal increases in throughput rates require the addition of seasonal labour. Seasonal labour can be difficult to hire, train, motivate and manage. 4. growth oF slow Moving skus With SKU (Stock Keeping Unit) proliferation, and increases in the volume of product going through a distribution
Ana Labate, Santos, Brazil
Tuger Akkaya, Istanbul, Turkey
Ken RuehRdanzm, distribution market manager & Phil maKowsKi, market development manager of dematic, discuss the 12 factors that drive food & beverage retailers and wholesalers toward automation.
an entire shift of operation. Workers will go through bending, lifting and twisting motions hundreds of times a day while handling cases of food product, increasing the chance of injuries that can be devastating to the health of workers. In addition, injuries can incur medical and absentee costs, and the turnover rate in these job functions can be high.
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to ‘use the cube’ and provide more productivity in less space. New food distribution centres will need to provide more throughput in a smaller building footprint. Existing food distribution centres are being asked to deal with more and more SKUs at a greater velocity within the existing building footprint. 8. store ready Food retailers need to reduce in-store labour requirements and reduce the time it takes to restock shelves with product. Products shipped to the store needs to be more ‘store ready’. Therefore, items need to arrive at the store pre-sorted and grouped by product family.
lavio Takemoto, Brazil
9. Multi-ForMat retailing Retailers are operating numerous store formats in an effort to target consumer demographics. This requires fulfillment systems with greater flexibility in order to meet significantly different order profiles.
centre, there is more pressure to accommodate slow movers efficiently. Slow movers, which make up the majority of SKUs, are taking up more and more space, and require their own pick face. 5. real-tiMe control More and more real time inf o r m a t i o n a b o u t p ro d u c t movement and product attributes is required to optimise the supply chain. Distribution centre managers need to know exactly where every item is located in the distribution centre and the ongoing status of the order fulfillment process.
6. harsh working environMents F re e z e r s t o r a g e o f t e n re quires products to be held in sub-zero temperatures. This environment is not ideal for worker comfort and health. Legal restrictions require that workers can only be exposed to a freezer environment for limited periods of time, thereby increasing costs. In addition, freezer space is costly to build and maintain; therefore, solutions that can minimise freezer space are ideal. 7. sPace utilisation There are increasing demands
Distribution centre managers need to know exactly where every item is in the distribution centre.
10. reduced and/or green Packaging Environmental awareness will affect the cost, type, and quantities of packaging (and packing materials) used in the supply chain. A move towards all-belt conveying solutions (vs. roller) will provide better handling of packaging that is less robust, as well as small and irregularshaped items. 11. rFid integration The transition to RFID labelling of pallets, cases, and items affects the methods in which the product is received, put-away, picked and shipped. As these methods are re-designed for integration with RFID, new and more efficient material handling
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techniques should also be considered.
Mantis Wong, Burnaby, Canada
ConClusion Automated material handling system solutions, software and controls can be applied to every issue mentioned above. Automation can be utilised at varying degrees to achieve improvements in product flow, labour allocation, facility size and overall operating costs. The technology most often utilised includes Warehouse Management Systems Software
Birmingham News Room
12. transPortation costs Rising oil prices will drive improved fleet management, and also warehouse operations. Warehouse Control Software (WCS) with order management functions will optimise order consolidation, as well as trailer loading for better density.
Warehouse management systems programs can help improve the situation in a typical food & beverage wholesalers’ warehouse.
automation Can be utilised to aChieve imPRovements in PRoduCt flow, labouR alloCation, faCility size and oPeRating Costs. (WMS), Warehouse Control System Software (WCS), voice and light directed order fulfillment, Automated Storage And Retrieval Systems (ASRS), package and pallet conveyor, sorters, and trailer loaders. ASRS along with WCS software can be applied in various areas. The most appropriate areas to consider include puta w a y f u n c t i o n s , p ro d u c t storage (especially in a freezer) and replenishment of the pick modules. Therefore, the number of ‘touches’ by a worker can be dramatically reduced. This addresses the bio-mechanical and harsh en-
vironment issues. Also, ASRS maximises the use of cube space, reducing the overall system footprint. Furthermore, ASRS can accommodate slow movers. When slow movers need to be picked, the ASRS can create ‘variable pick faces’ in a pick module. After the slow mover is picked, it is sent back to a reserve storage location, thereby eliminating the need for an active pick face. Automated systems can provide high throughput rates and reduce the need for seasonal labour as well as increase the speed in which orders are
processed. Voice and light directed order fulfillment systems dramatically increase order picking accuracy while speeding up the process. WMS and WCS software along with sortation systems allow loads to be grouped by product family before shipping. Today’s distribution centres can raise the bar on productivity while reducing costs, speeding up the process, and improving customer service through the effective application of automation and software solutions. For more information, ENTER No: 0172
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MaxiMisiNg Through opTiMisiNg
applied here, namely the use of mathematical algorithms (linear programming) to identify the plans that will minimise the total supply chain costs. Simply put, optimisation will not only find a realistic plan, but the very best possible plan. This is a huge difference from older generations of planning tools and something that can help increasing your business’ profit, productivity and competitiveness. Mathematical optimisation has been around for a while, but it is not until recently that it has become readily available as a support for your operational planning. This is explained by the introduction of the 64-bit version of Windows, coupled with the latest developments of optimisation algorithms and computer processing power.
Why is it that after investing hundreds of thousands of dollars in a shiny new enterprise resource planning (ERP) system, you still find yourself looking at spread sheets when trying to figure out the best plans for production, purchasing, inventor y and distribution—decisions that have a huge impact on your bottom line? The truth is that most ERP systems simply were not built to cope with the challenges of a food company, which are quite different from other companies, such as a car manufacturer. Most ERPs struggle with things like managing shelf life, finding the ideal batch sizes, maximising yield or dealing with reverse recipes and/or reverse material requirement planning (MRP). The tools most companies use for planning today, such as MRP, older generations of advanced planning and scheduling (APS), or even the most common approach, manual planning in spread sheets, all have one thing in common: they do not offer the planner any kind of ‘intelligent’ decision support, but are based on simple, pre-defined rules (or
‘heuristics’ as they are sometimes referred to). The planning is sequential (one constraint at the time) and separate (one plan for purchase, another for production), and the rules that you can pre-define are limited. As a consequence, you end up with un-realistic plans far from the optimum and your company is not as efficient, productive or profitable as it should be. True opTiMisaTioN Optimisation is a word that is being used quite loosely and in many different contexts, but almost never in the strict sense
Most tools today do not offer ‘intelligent’ decision support, but are based on heuristics.
Too siMple For opTiMisaTioN? You may think that your business is not complex enough to gain any substantial benefits by using mathematical optimisation. Consider then the following simple example: Imagine Burt the Baker, on the night between Wednesday and Thursday, standing in his
Ollie Jones, US
Many coMpanies understand the benefits of optiMisation, but are not aware of the coMplexity involved in good iMpleMentation. advances in technology have created prograMs that can consider Multiple factors and forMulate the Most effective plan. by Niklas aNderssoN, Md, optiMity
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Jessica Spengler, Brighton, UK
Dag Terje Filip Endresen, Oslo, Norway
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bakery trying to figure out what to bake in order to make as much money as possible in the coming day. To keep this example simple, Burt has no capacity or other constraints to consider, only the availability of ingredients. To keep it even simpler, we only have two products and need not worry about the day after tomorrow. We will make it even easier by simplifying the recipes for these two products: No need for complex optimisation for such a simple case, right? So, how many breads and cakes should Burt make in order to maximise the total contribution? He certainly cannot make 45 breads and 25 cakes,
because he simply does not have enough flour and sugar. Burt scratches his head, looks at his spread sheets and since cakes have the highest contribution margin for every sold unit, he decides to make as many cakes as possible and use the remaining ingredients for bread. This earns him a total contribution of $800. Burt makes similar decisions day after day, year after year, and since at the end of the day he makes a decent profit, he does not see any need to question what he is doing. In this particular town, there are two other bakeries. One of his competitors, Conrad the Cakemaker, has tried to improve his business, by
The optimisation engine can determine ideal batch sizes by balancing the cost for production changeovers with the cost for inventory and missed deliveries.
first implementing MRP, and when that did not offer enough improvements in the planning area, he then invested in an APS as well. With the same basic conditions as Burt’s, Conrad’s MRP proposes to make 45 breads and 25 cakes, but then his APS system automatically detects the material shortage, and since Conrad has set up a rule that says bread has the highest priority, the system re-schedules the planned manufacturing order for cakes to Friday, and informs Conrad about the missed demand. Conrad does not think this is a good solution, and therefore, decides to manually re-schedule. He makes the same assumptions as Burt, and makes as many cakes as possible, and then he uses the remaining ingredients for bread. The third competitor in town, Optibake, has recently started using an optimisation tool for improved decision support. With the same conditions and limited availability of ingredients as his competitors, Optibake’s planning tool transfers the planning challenge into a mathematical expression: An optimisation model approaches the planning problem in a completely different way. There is an ‘objective function’, which describes what we are trying to achieve. The objective function in this simple example only contains profitability. In addition to the objective function, we also define all the constraints we need to consider to get a realistic plan. Once this is done, the optimisation engine will now evaluate all possible solutions until the best one is found (for most companies, the best solution is the one that gives them the highest profit).
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Optimising YOur FOOd Business As you saw from this simple example, mathematical optimisation offers true deciEbiti bea es ma sequatios et volendu ntiosto to conse natem non sion support for your planners resequia velignist, nus pro eiur? Gent quia dusa nam, ut rep that not only simplifies their life, but actually helps you make as much money as possible. And if that is evident from such a simple example, imagine what optimisation can do for your business, especially with all the complex planning challenges your planners are facing on a daily basis. The beauty of optimisation is that it will tackle all the for production changeovers, constraints that you decide to with the cost for inventory and include at the same time and missed deliveries. in parallel, in order to find the Seasonal Variations: The plans for purchasing, producoptimisation engine is able to tion, inventory and distribution find the best way to handle that will minimise the total supseasonal variations, by balancply chain costs. ing the cost for building stock In addition to the classical with the cost of increasing the planning challenges of making capacity, either by adding extra sure that we have sufficient line shifts or by using alternate supand operator capacity, as well ply sources. as ingredients and material, Yield: When the ingredients optimisation can be used to can be used in alternate ways, solve some of the more difficult the optimisation engine will challenges that you may face in determine their best usage by your food business, such as: comparing the supply to the Shelf Life: For products with demand, and the cost for these shelf life constraints, the optialternate usages. Optimisation misation engine considers the will also try to minimise the expiry of products as a cost, start- up scrap in production. and therefore does its utmost Divergent Product Flows: to avoid it. An important step in For divergent product flows, this process is to warn planners where raw milk becomes fresh at an early stage. milk, butter, cream, or where Batch Size: The optimisaan animal is split into different tion engine is able to determine end products in a variety of the ideal batch sizes for each different ways, the challenge period, by balancing the cost
longislandwins
When all is said and done, even in such an incredibly simple example as this, through the use of optimisation, Optibake made a 25 percent higher profit than its competitors ($1,000 compared to $800).
For products with shelf life constraints, the optimisation engine considers the expiry of products as a cost.
is to find the perfect balance between demand and available supply that will maximise the yield, the delivery service and the overall profitability. This is managed through reverse recipes, with different costs for alternate ways of processing the supply. Reverse MRP: For many food businesses, the traditional MRP found in an ERP-system is close to useless. For perishable ingredients, which must be consumed within hours or days, there is no point in trying to break down the forecasted and actual demand, as in MRP, but planning rather becomes a matter of determining the best way of ‘pushing’ the available supply through the supply chain. An optimisation engine is able to do just that, while finding the perfect balance between demand and supply, with respect to yield and cost. Product Mix: The sequence
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the truth is that mOst erp sYstems simplY were nOt Built tO cOpe with the challenges OF a FOOd cOmpanY. in which products are made will often have a big impact on non-productive time in production, such as cleaning. Other times, due to allergens, certain products should not be manufactured at the same time. An optimisation engine is able to identify the ideal product mix, and may even work together with cyclic planning. Ideal Sales Prices: An advanced application of optimisation can be used for companies who are able to determine a historical relationship between sales prices and volumes. In this case, a price elasticity curve can be established, and then used by the optimisation engine to determine the perfect balance between supply, production capacity and sales volumes, and thus the price point for each product. These are just a few examples of planning challenges that
simply cannot be managed in a good way in an ERP, an older APS, or manually in Excel. Keep it simple At this point, you may realise that optimisation probably has a lot of potential for improving your particular business, but you worry if it is very complex and costly to implement. The good news is that optimisation is certainly no longer restricted to only the largest, most successful MNCs. There are tools available that are cost effective, extremely flexible and very easy to use. You could start out small, to pick the low hanging fruit, and then add more constraints as you move along. Quality of data is of course, always important. However, since the optimisation can take place on a slightly higher level (such as daily or weekly), and still yield great results, it is less
An optimisation engine is able to identify the ideal product mix, which often has a big impact on non-productive time in production.
sensitive to data quality than a traditional APS-system that may be planning down to minutes. There seems to be a paradigm shift taking place in the area of supply chain planning at the moment. Companies who are quick to move into the future should stand a good chance of getting ahead of their competition. When considering this, it makes a lot of sense to start optimising your plans. What do you think? For more information, ENTER No: 0173
www.worldoffoodasia.com / www.thaitradefair.com
Experience the 21. - 25.05.2014
IMPACT Exhibition and Convention Center Bangkok, Thailand
International Trade Exhibition for Food & Beverages, Food Technology and Retail & Franchise in Asia
Endorsed by International Sales Ms. Lynn How Tel: +65 6500 6712 l.how@koelnmesse.com.sg
Jointly organized by
The Thai Chamber of Commerce
Enquiry Number
3492
Presents
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and providing jobs for almost 440,000 in 2012,” Mr Astals added. During his presentation, he also showed how a shift in focus towards export has helped the industry maintain its growth. “Exports currently account for 28.5 percent of turnover in the Spanish food and beverage sector and, if this rate continues, it could reach 40 percent before the end of the decade.” In comparison, France, which relies heavily on domestic consumption, was more affected by the weakening demand in Europe and reduced
Learning From THe BuLL FigHTer
EvEn with thE EmErgEncE of culinary tourism, many still find it hard to link thE food and bEvEragE industry with thE tourism industry. howEvEr, thEsE two sEgmEnts arE actually closEly linkEd togEthEr and thErE is grEat potEntial for thEm to complEmEnt Each othEr. by Wong Tsz Hin provided an in-depth analysis of the sector. Despite suffering a minor setback in 2012 as a result of the second economic crisis, the food and beverage industry in Spain has managed sustained growth over the last 20 years. The industr y’s turnover is equivalent to 7.6 percent of the country’s GDP and represents 14 percent of industrial sales. “The sector also represents a source of employment for Spain, constituting 20 percent of industrial employment
spending power. Therefore, it comes as no surprise that the industry has been earmarked as a key focus area and even more so for tourism, given that it is a main economic driver that is ranked ahead of the food and beverage industry. What is perhaps intriguing is that the organisers of the show believe that the two should come together. How can these two very different industries complement each other and drive one another forward? The answer may lie in gastronomy. gasTronomy On the surface, it seems simple. Gastronomy is the study of food and culture, which naturally brings the two segments together—food and tourism (experiencing culture). In recent years, as the distances between the different parts of the world shrink and travel becomes more affordable, gastronomic tours have become more popular. In a study titled Gastronomic Tourism: Implications for Singapore that was conducted in 2013, Grace May-Ann Chang Mazza concluded that “With
Renowned Thai dessert mango sticky rice can be found in readyto-eat form at the country’s internatonal aairpot..
Dennis Wong, Hong Kong
At the press conference of Alimentaria, an international food and drinks exhibition held biennially in Barcelona, Spain, it was emphasised time and again that tourism, gastronomy and food will become the three major pillars of economic growth for the country. “Spain’s food and drink industry is a strategic cornerstone of the country’s economy and a key for its diversification into solid sectors that represent the pillars of future economic growth,” Pedro Astals, president of the Spanish Federation of Food and Beverages Industries, says as he
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Dennis Wong, Hong Kong1
tuchodi, Vancouver, Canada
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gastronomic tourism gaining popularity and proving itself as a lucrative sub-segment of the tourist industry, countries with unique culinary products and cultures can take advantage of the distinct experience when developing their tourism strategy.” Research conducted by Mintel showed that of the 160 million leisure travellers in the US, 27.3 million (17 percent) can be considered culinary travellers. Instead of visiting a country and simply sampling the food offerings available, culinary travellers are identified as those that participate in activities such as following food
or wine trails and engaging in gourmet food shopping to create memorable experiences. It is apparent that culinary tourism can help promote growth for the tourism industry by enticing people who are interested in sampling the tastes and flavours of a foreign place. However, the important question remains, what does this mean for the food and beverage industry? recreaTing experiences Most people naturally assume that culinary tourism has a direct relation to the restaurant and hospitality sectors, but
Consumers will be swayed to buy products to revoke the good memories they have of their travel experiences.
little to do with food manufacturers. In the book The Business of Food: Encyclopedia of the Food and Drink Industries, authors Ken Albala and Gary Allen provided an detailed explanation on the matter. “Culinary tourism looks beyond gourmet dishes to foodways, the total network of activities surrounding food and eating. This network includes procurement (obtaining food), preservation, preparation, presentation, consumption styles, contexts for eating and cleaning up and symbolic performance.” More importantly, the authors said that different people attach different meaning to food and because of that, it carries memories of people and events that are significant in their lives. During a panel discussion on food, gastronomy and tourism, Doug Duda, former president of the International Association of Culinary Professionals and a pioneer in culinary tourism, shared that one of the most common questions people ask him after he has returned home was whether he was able to cook a few signature dishes from the country for them to try. This has naturally become a challenge for him because some of the ingredients required are only available at their country of origin. Nonetheless, he feels that this need not be the case. “People want to relive the experiences from their travels because those are good memories, so the food industry can look to facilitate that by making the ingredients that are necessary, available.” He added that when people walk pass an aisle at the grocery store and see a sauce
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or food they have tasted on their trips, it will bring back memories and entice them to buy it. While these people are not actively looking for the ingredients, they will still be swayed to buy them when they see them. Perhaps one approach for the food and beverage industry to consider is to make products that are unique to a country more prominent and available. In some ways, there are companies which are already doing that. At the duty free shops at Thailand’s Suvarnbhumi Airport, boxes of ready-to-eat mango sticky rice are available for tourists to take home to share with their loved ones. cuLTuraL eLemenT At the same time, the cultural element of gastronomy should not be underappreciated as it can bring value to food and beverage manufacturers as well. Cascajares is a Spanish
Joan Roca, chef at El Celler de Can Roca, which is voted the best restaurant in the world, says the award is of huge importance to the region and country.
company that specialises in high-end prepared products. The company started out modestly as a chicken farm that offers a traditional rural product—the capon. Their big break came when the Spanish royal family chose their capon as the main dish for the marriage of future King and Queen d’Asturias in 2004. Sensing a great opportunity, Alfonso Gimenez, president of the company, decided to replicate the recipe and make it available to the public. “We want to give people a chance to taste the main dish in the royal wedding reception. People are interested to get a taste of what the royal family eats.” The product was a hit and the company has continued to work with renowned chefs to recreate symbolic dishes in ready-to-eat forms. Venturing across the ocean, it has developed a special turkey product for the American market which uses it for thanksgiving.
Food is an important element of a country’s culture and a window for people to experience and learn about the traditions and heritage of other places. Manufacturers can grasp onto this curiosity and create products that will stir interest, to open up new markets. Joan Roca, chef at the El Celler de Can Roca, a three Michelin star restaurant that has recently been voted the best in the world, said that “the award is more important to the territory, Barcelona, Girona and Spain, than the restaurant, because it can help drive the other industries.” As people flock to his restaurant in Girona, they will have a chance to visit the place as well. That will help drive tourism in the region and country. At the same time, the food and beverage industry can participate in this by offering products that tourists can take home, as well as entering export markets to offer these same people items that will remind them of their experience. In many ways, the tourism and food and beverage industry can work hand in hand to promote growth. Across the world, many countries have already taken steps to provide value for food brands through the organisation of major food festivals and shows. There is room for promotion and marketing efforts to go much further. In a world where we see the diversification of dining options in every country, such as Thai and Vietnamese food in the US, would it not make sense to provide food products that consumers can enjoy at home as well? For more information, ENTER No: 0174
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REVIEW:
BIo FERmEntatIon ChIna The output value of China’s fermentation industry is expected to reach US$72.6 billion by 2015 with an annual growth rate of 15 percent and amounting to 30 million tonnes.
There were eight new products and technology release conferences that were attended by over 600 participants.
Bio fErmENtatioN ChiNa Where Shanghai Everbright Convention & Exhibition Center Country Shanghai, China Date November 18-20, 2013
The Shanghai International BioFermentation Products/Technologies & Equipment Expo was held at the Shanghai Everbright Convention & Exhibition Center, China, from November 18-20, 2013. The show attracted 320 exhibitors from countries and regions, such as South Korea, Japan, Hong Kong and Taiwan, who showcased their biofermentation products, technologies and equipment over 16,000 sq m of total floor space. A total of 15,636 professional visitors from 32 countries and regions around the world took part in the event, of which 3,868 of them came from overseas. The highlights of the show include research reports and new product and technology seminars
that address the needs of the industry and provided timely and accurate innovation on the market. A total of 16 academic seminars were held during the show, during which, experts and researchers from the industry shared their insights on the trends, regulation and standards, innovations, research results and market reports on different segments of the industry. At the same time, there were eight new product and technology release conferences that were attended by over 600 participants. The show is scheduled to return from December 3-5, 2014, at the same venue. _________________ Enquiry No: 180
A ToTAl of 16 ACAdemiC SeminArS were held dUring The Show, dUring whiCh, experTS And reSeArCherS from The indUSTry ShAred Their inSighTS on The TrendS, regUlATion And STAndArdS, innovATionS, reSeArCh reSUlTS And mArkeT reporTS on differenT SegmenTS of The indUSTry.
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PREVIEW:
PRoPakVIEtnam
Growth in worldwide demand for packaging machinery is expected to climb at a 4.6 percent annual pace through 2017 to reach US$41.8 billion. An improved business climate—which will be reflected in expanding fixed investment spending, manufacturing output, and packaging demand—will drive increases in equipment sales through 2017.
The co-location of the show with Plastics & Rubber Vietnam will allow it to reach out to a wider spectrum of manufacturing sectors.
ProPak ViEtnaM Where Saigon Exhibition & Convention Center Country Ho Chi Minh City, Vietnam Date March 4-6, 2014
ProPak Vietnam 2014 will be held at the Saigon Exhibition & Convention Centre in Ho Chi Minh City, Vietnam, from March 4-6, 2014. In its 9th edition, the show includes PharmaTechVietnam and Lab&TestVietnam. Last year, the event attracted 7,556 trade visitors from 36 countries and 309 exhibitors from 29 countries, such as Australia, China, Germany, India, Indonesia, Japan, Singapore, Thailand and the UK. This year, the show will run concurrently with Plastic & Rubber Vietnam. The co-location of the two exhibitions will provide an added opportunity to create a strengthened promotional program reaching
An improved bUSineSS climAte—which will be reflected in expAndinG fixed inveStment SpendinG, mAnUfActUrinG oUtpUt, And pAckAGinG demAnd—will drive increASeS in eqUipment SAleS throUGh 2017. out to the wider spectrum of the manufacturing sectors in Vietnam. Over 35 percent of plastic applications in the market relate directly to the packaging industry. The exhibition will also be supported by events, such as conferences and seminars by industry associations. _________________ Enquiry No: 181
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PREVIEW:
Food IngREdIEnts ChIna According to Euromonitor International, China is set to overtake the US to become the largest market for food and beverage ingredients in 2014. China will consume 87 million tonnes of food and beverage ingredients in the next five years, with value added ingredients, such as flavours and artificial sweeteners, and especially health focused ingredients projected to perform well in the country, .
Food IngrEdIEntS ChIna Where Shanghai World Expo Exhibition & Convention Center Country Shanghai, China Date March 25-27, 2014
Food Ingredients China will be held from March 25-27, 2014, at the Shanghai World Expo Exhibition & Convention Center, China. Over 1,100 exhibitors from more than 20 countries are expected to participate in the event, providing a platform for communication and trading for participants. Around 90 percent of the exhibitors will be made up of manufacturers, who will be there to display their latest products and technologies over 70,000 sq m of exhibition space, including 25,000 sq m of overseas pavilion. The show will feature 21 categories of food additives and 33 categories of food ingredients and food processing
ACCordIng to EUromonItor IntErnAtIonAl, ChInA IS SEt to ovErtAkE thE US to bEComE thE lArgESt mArkEt for food And bEvErAgE IngrEdIEntS In 2014. aides. The event will also promote equipment and techniques applicable to food safety to address the growing d e m a n d for more stringent food safety control. A series of academic conferences and technical seminars will be held concurrently with the exhibition, offering updates on the latest development in food science and
technology, and solutions for the sustainable development of companies. The topics will cover areas that include sugar, dairy, candy, infant foods, as well as collagen, among others.
_________________ Enquiry No: 182
EXHIBITION & EVENTS
ASIA PACIFIC FOOD INDUSTRY JANUARY/FEBRUARY 2014
PREVIEW:
77
AlImEntARIA
Exports currently account for 28.5 percent of turnover in the Spanish food and beverage sector and if the rate continues, it could reach 40 percent before the end of the decade, according to figures from the Spanish Food and Drink Industry Federation (FIAB). In 2012, exports in the food and beverage industry rose 9.4 percent to reach €22 billion, almost triple the growth rate of total Spanish exports.
The highlight of the show is ‘The Alimentaria Experience’, which will encompass all the activities related to restaurants and gastronomy.
AliMentAriA Where Fira de Barcelona Country Barcelona, Spain Date March 31-April 3, 2014
AlimentAriA 2014 will be held from March 31 to April 3, 2014, at the Fira de Barcelona in Barcelona, Spain. The four-day event will occupy the entire Gran Via Exhibition Centre and cover 85,000 sq m of net space. Over 140,000 visitors are expected to attend the event, with 335 percent from outside Spain. Meat products, wine and olive oil are leading Spanish exports and their importance are reflected in the range of exhibits at the show. The event itself is divided into 12 monographic shows, including Invervin (wine and spirits), Intercan (meat and meat products), Interlact (milk and dairy products), Multiproducto (general food products), Olivaria (olive oil and vegetable oils), Mundidulce, (sweet, biscuits and confectionary), Expobebidas (water, soft drinks and beers), Expoconser (preserves and semi-preserved products), Interpesca,
In 2012, ExportS In thE FooD AnD BEvErAgE InDuStry roSE 9.4 pErcEnt to rEAch €22 BIllIon, AlmoSt trIplE thE growth rAtE oF totAl SpAnISh ExportS.
(seafood, aquaculture and farmed fish products), Congelexpo (frozen foods), Alimentacion Ecologica (organic food) and Restaurama (international eating out). There will also be a pavilion for the different Spanish autonomous communities and international pavilions for foreign companies and institutional representatives from over 50 countries. The highlight of the show is ‘The
Alimentaria Experience’, which will encompass all the activities related to restaurants and gastronomy. There will be demonstrations, culinary master classes and workshops, tasting sessions, and conferences among other activities that aim to show prominent trends and provide inspiration and solutions to restaurateurs. _________________ Enquiry No: 183
Enquiry Number
3523
Virag Virag, Budapest, Hungary
LOOK OUT FOR THESE SHOWS CALENDAR OF EVENTS 2013/14 February 18-21: HCJ JAPAN Tokyo Big Sight Tokyo, Japan Japan Management Association E-mail: hcj@convention.jma.or.jp Web: www.jma.or.jp/hcj/eng
31-APR 4: ALIMENTARIA Gran Vía de Fira Barcelona, Spain Fira Barcelona E-mail: alimentaria-bcn@alimentaria.com Web: www.alimentaria-bcn.com ❑ To Exhibit ❑ To Visit ❑ General Enquiry
❑ To Exhibit ❑ To Visit ❑ General Enquiry
❑ To Exhibit ❑ To Visit ❑ General Enquiry
27-2: FOOD PACK ASIA BITEC Bangkok, Thailand TBP Publications E-mail: tbp.internet@gmail.com Web: www.foodpackthailand.com ❑ To Exhibit ❑ To Visit ❑ General Enquiry
March 4-6: PROPAK VIETNAM Saigon Exhibition & Convention Center Ho Chi Minh City, Vietnam Bangkok Exhibition Services E-mail: arayabhorn@besallworld.com Web: www.propakvietnam.com ❑ To Exhibit ❑ To Visit ❑ General Enquiry
6-8: FOOD, HOTEL & TOURISM BALI Bali Nusa Dua Convention Centre Bali, Indonesia Pamerindo Web: www.pamerindo.com/events/10 ❑ To Exhibit ❑ To Visit ❑ General Enquiry
6-8: CAFÉ ASIA Marina Bay Sands Singapore Conference & Exhibition Management Services E-mail: shafiq@cems.com.sg Web: www.cafeasia.com.sg ❑ To Exhibit ❑ To Visit ❑ General Enquiry
25-27: FOOD INGREDIENTS CHINA 2014 Shanghai World Expo Exhibition & Convention Center Shanghai, China China Food Additives & Ingredients Association E-mail: cfaa1990@126.com Web: www.chinafoodadditives.com/d_e. htm
May 6-8: VITAFOODS EUROPE Palexpo Geneva, Switzerland Informa Exhibitions E-mail: maria.sidiropoulou@informa.com Web: www.vitafoods.eu.com
April 8-10: CHINA INTERNATIONAL ORGANIC FOOD INDUSTRY EXPO China International Exhibition Center Beijing, China Beijing Shibowei International Expo E-mail: foodexhibition11@163.com Web: www.gnfexpo.com.cn/en/ ❑ To Exhibit ❑ To Visit ❑ General Enquiry
8-11: FOOD AND HOTEL ASIA Singapore Expo Singapore Singapore Exhibition Services E-mail: tsm@sesallworld.com Web: www.foodnhotelasia.com
13-15: SIAL CHINA 13-15: SIAL China Shanghai New International Expo Centre Shanghai, China Comexposium Group E-mail: exhibit-sial-china@comexposium. com Web: www.sialchina.com ❑ To Exhibit ❑ To Visit ❑ General Enquiry
8-14: INTERPACK Messe Düsseldorf Düsseldorf, Germany Messe Düsseldorf Web: www.interpack.com ❑ To Exhibit ❑ To Visit ❑ General Enquiry
❑ To Exhibit ❑ To Visit ❑ General Enquiry
9-12: MALAYSIA INTERNATIONAL HALAL SHOWCASE Kuala Lumpur Convention Centre Kuala Lumpur, Malaysia Malaysia External Trade Development Corporation E-mail: enquiry@halal.org.my Web: www.mihas.com.my/index.php ❑ To Exhibit ❑ To Visit ❑ General Enquiry
27-29: CHINA INTERNATIONAL FOOD EXHIBITION China Import & Export Fair Complex Guangzhou, China China National Food Industry Association E-mail: gzyfzl@163.com Web: www.ifechina.com ❑ To Exhibit ❑ To Visit ❑ General Enquiry
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❑ To Exhibit ❑ To Visit ❑ General Enquiry
*All details subject to change without notice. Please check with organisers for updates.
21-23: FOOD INGREDIENTS VIETNAM Saigon Exhibition and Conention Center Ho Chi Minh City, Vietnam UBM E-mail: nucharin.p@ubm.com Web: www.fi-vietnam.net ❑ To Exhibit ❑ To Visit ❑ General Enquiry
21-25: THAIFEX IMPACT Bangkok, Thailand Koelnmesse E-mail: l.how@koelnmesse.com.sg Web: www.thailandfoodfair.com ❑ To Exhibit ❑ To Visit ❑ General Enquiry
25-28: TAIPEI INTERNATIONAL FOOD SHOW Taipei World Trade Centre Taipei, Taiwan Bureau of Foreign Trade E-mail: foodtaipei@taitra.org.tw Web: www.foodtaipei.com.tw ❑ To Exhibit ❑ To Visit ❑ General Enquiry
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