Expoview issue 10

EXPO VIEW

bi-monthly Newsletter

December 2013 ISSUE No10

EXPO VIEW At Gulfood we have new products to present . check page 3

Trade Center Arena -Stand: S-L45

TOP STORY Gulfood 2014

Expanded to meet the global demand...

In this Issue:

TOP STORY : Gulfood 2014

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BUSINESS ISSUES: What should we expect with the new harvest

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BUSINESS ISSUES: I love olive— a handful of nutrition and taste!

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BUSINESS ISSUES: Online groceries— big challenge

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BUSINESS ISSUES: Trans fat - labelling and regulation

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GREEN PLANET: Global GAP

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ON THE ROAD: Anuga 2013 European Awards update

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Gulfood, the world’s biggest annual food and hospitality industry trade show, will feature a host of innovative new features, national pavilions, specialist conferences, high-ranking ministerial summits and pioneering B2B programmes in an evolved segmented format designed to ensure the 2014 edition covers the entire ‘foodservice sector’.

The 19th edition of the show which runs from 23-27 February 2014 at Dubai World Trade Centre (DWTC) will be expanded to five days.

Gulfood, which is one of the highest volume trading platforms of any international food industry trade show now boasts an additional 27,000 sq. mt of freed-up floor-space for 4,500 local, regional and international exhibitors to focus on the foodservice, retail and hospitality trade, and explore international networking opportunities with more than 80,000 global visitors.

We expect to see you at our stand where we will have a full range of quality Greek olives, olive oils and traditional products.

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Parthenonos 1,N. Erythraia Athens146 71Greece info@expoaid.gr / Tel: +30 210 6250365 / Fax: +30 210 6209905

EXPO VIEW

BUSINESS ISSUES

The Greek olive and olive oil production harmonized with the current Greek norms 2014 is evolving into the most difficult year of the last decade for the production of olives and olive oil.

OLIVES For Halkidiki olives and Amfissa green and black olives, the total production will be around 50 % of average productions of the last decade . Consequently the price has increased by 80 % compared to the levels of 2012 to 2013 . This situation could lead to a worst case scenario of importation of large quantities mainly from Egypt and Turkey, which would then be re-exported as Greek.

The prices of Kalamata’s olives affected by the overall pressure started after an initial decline to rise. Following the upward trend in the remaining olives categories we estimate an impact of 20-30% price increase versus last year.

OLIVE OIL Similar situation applies for Olive oil. Production in Crete exhibits a significant decrease compared to last year (it is projected to reach 40 % of last year's production).

This past season, the Greek olive harvest was a disaster due mainly to very high temperatures early in the season which

Weakened position in the USA olive oil market

caused losses during the olive tree flowering stage. At the same time, the olive fruit fly arrived and was not dealt with in a timely manner, allowing them to spread.

Major losses of 50 to 100 percent of the olive harvest were reported in most regions.

There are areas that were not affected due to altitude and soil composition, and these are expected to give excellent qualities of extra virgin olive oil.

At the early crop stage the prices were higher compared the corresponding Spanish levels. We expect that in January prices will move below 2.40-2.30 EUR/kg.

In 1990 Greece was the third largest exporter of olive oil to the USA, lagging considerably behind Italy and Spain, today Greece ranks 7th after Tunisia, Maroco, Argentina and Chile.

This is not a surprise as Greek olive oil faces issues with high prices and lack of differentiation, which make exceptionally difficult to position the oil in channels that will bring consistent growth.

Since 1990 Greece has quadrupled its exports to the USA in volume and ranks today 4th in terms of export value. The interesting fact that proves the competitiveness of the market is that Greece lags behind Chile, a fresh exporter that started to have presence in 2000, and also behind Morocco and Argentina which at that period imported extremely small quantities to the US. USA is the third larger consumer of Olive oil consuming 9% of the total olive oil production and the second largest importer after Italy.

Proven superior quality … a way to add value to Greek EXV olive oil Last year Dr. Prokopios Magiatis and Dr. Eleni Melliou from the Athens University announced their discovery of a new fast and accurate tool to measure key health promoting compounds found in extra virgin olive oil (EVOO) such as oleocanthal and oleacein. Using Quantitive 1H-NMR (Nuclear Magnetic Resonance) calibrated to specific frequency the amount of these two compounds found in EVOO can be accurately measured.

At the same time, the EU clarified the use of health claims placed on the labels of extra virgin olive oils that contained a base amount of hydroxytyrosol and its derivatives: ”Olive oil polyphenols contribute to the protection of blood lipids from oxidative stress.”

The regulation further stipulated, “The claim may be used only for olive oil which contains at least 5 mg of hydroxytyrosol and its derivatives (e.g. oleuropein complex and tyrosol) per 20 g of olive oil. In order to bear the claim information shall be given to the consumer that the beneficial effect is obtained with a daily Page 2

intake of 20 g of olive oil.”

Using the NMR method of measurement, tests were conducted on a variety of Greek EVOOs. Many were found to contain high levels of oleocanthal and oleacein. Olive growers were eager to publicize their results but were initially declined that right based on conclusions drawn on the EU Regulation 432/2012.

A mount of complaints and requests for clarification resulted in an announcement on December 5, 2013 — over 7 months after the first inquiry — by the National Food inspection Lab (EFET ) confirming that the claim stands true and can be used.

A big win ? Potentially if publicized and supported properly, something that we have never or rarely seen in the context of National strategy for olive oil promotion. Could this claim helped the promotion of the exceptional last years crop with good quantities and low acidities? At the moment it will probably add an “if only” argument to those who will contemplate on the very bad crop and current difficulties.

Parthenonos 1,N. Erythraia Athens146 71Greece info@expoaid.gr / Tel: +30 210 6250365 / Fax: +30 210 6209905

EXPO VIEW

BUSINESS ISSUES

I love Olive - what makes it special To start with it is simply delicious. This innovative healthy snack has a full taste of Kalamata olives. This is not a surprise considering that it comes from olives made according to a traditional recipe without any additives or preservatives. What makes them really special is the additional mild processing that condenses the goodness into bite size wheels.

The snack has a full bodied texture and a unique rich taste. You may say ok .. but apart from that how does it stand out of the crowd?

First of all it is 100% natural. Secondly but most importantly it contains less salt/sodium than traditionally fermented Kalamata olives. Due to the fact that it is dried it adds a convenient note to their consumption—no juice, no mess.

Tasty and convenient you could think that there is no more this product could offer. You will be surprised how many positive attributes and health benefits this product has.

The snack is basically free from sugar, trans fat and cholesterol as it contains 0g per serving. Furthermore it is:  Rich in Vitamin E covering more than one third of the daily intake requirements per serving.  Rich in fiber.  Rich in Good fat—mainly mono-unsaturated fat and Omega 3 fatty acids.

The product is suitable for Vegetarians, and it is Gluten & Lactose free.

In each pack you will find 25 grams of pure taste and goodness equivalent to 15 pitted Kalamata olives.

Few reasons to chose naturally black olives Cardiovascular benefits When free radicals oxidize cholesterol, blood vessels are damaged and fat builds up in arteries, possibly leading to a heart attack.

The antioxidant nutrients in black olives impede this oxidation of cholesterol, thereby helping to prevent heart disease. Olives do contain fat, but it’s the healthy monounsaturated kind, which has been found to shrink the risk of atherosclerosis and increase good cholesterol.

Cancer prevention Black olives are a great source of vitamin E, which has the brilliant ability to neutralize free radicals in body fat. Especially when working with the stable monounsaturated fats found in olives, vitamin E can make cellular processes safer. When such processes such as mitochondrial energy production are not well protected, the free radicals produced can cause oxidation, damaging a cell’s mitochondria, and preventing the cell from producing enough energy to supply its needs. If the DNA of a cell is damaged, it may well mutate and become cancerous. Studies have shown that a diets supplemented with olive oil leads to a lower risk of colon cancer, almost as low a risk as a diet rich in fish oil.

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Parthenonos 1,N. Erythraia Athens146 71Greece info@expoaid.gr / Tel: +30 210 6250365 / Fax: +30 210 6209905

EXPO VIEW

Online groceries Even if it is huge already, Amazon.com can't help but try to find ways to get even bigger. The e-retailer, selling everything from auto parts to videogames, may eventually become known for pushing kale and cucumbers. AmazonFresh, its grocery-delivery effort, is still in its infancy: After testing it in Seattle since 2007, Amazon brought the service to parts of Los Angeles in June.

That's not exactly jumping in. But Amazon has good reason to be cautious. The grocery business is known for razor-thin margins.

And previous attempts at online-grocery delivery have had mixed results. Webvan, an early entrant, went bankrupt in 2001. Neither, FreshDirect, serving the New York area, nor Ocado Group, which operates in the U.K., made an operating profit in 2012, according to Sanford C. Bernstein. Still, the law of large numbers makes grocery difficult for Amazon to resist. The bigger it gets, the bigger its markets need to be to have an impact on revenue growth. In theory, there is no reason groceries can't be profitable for Amazon the average gross margin of Whole Foods Market, Safeway, Kroger and Fresh Market was 29% in 2012. Amazon's 2012 gross margin: 25%. And it would likely have less loss of products due to factors like shoplifting or in-store damage. But matching those established players will be tough without local scale.

If AmazonFresh can get to 4% share in markets where it launches the service within 10 years, it will be profitable on a stand-alone

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basis with an operating margin of 13%. Getting there assumes an estimated average basket size of $140 and an average of two orders a month, numbers achieved by some major players. That is why it is testing different models with minimum order on the one hand and a sliding scale fees combined with subscription on the other hand. The challenge is to get higher customer density in a given area, cutting delivery costs. Beyond that, Amazon will need to source high-quality food, manage more delicate inventory and develop expertise in delivering products from warehouse to consumer. Still, if any company can get big in a retail business, it's Amazon.

With a proven history of undercutting rivals in commodity businesses by finding ways to be more efficient, Amazon said last week it has added robots to three of its fulfillment centers, suggesting it could find a way to automate grocery picking and packing as well.

Online grocery delivery may be a lemon of a business. And Amazon won't be able to improve it overnight. But the burden of being the biggest may mean finding a way to make it into lemonade.

Parthenonos 1,N. Erythraia Athens146 71Greece info@expoaid.gr / Tel: +30 210 6250365 / Fax: +30 210 6209905

EXPO VIEW

BUSINESS ISSUES

Trans fat focus – battling for replacement.

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n a study conducted in 2012 it became evident that the heart health of millions of Europeans were at risk because of the persistently high trans fatty acid content of certain fast and convenience foods.

While the overall TFA fat content of foods has fallen, few European countries have imposed any legal limits, meaning that it is perfectly possible to buy certain packaged and restaurant foods which still contain very high levels, say the authors. Trans fatty acids (TFA) are primarily produced by the industrial hydrogenation of vegetable oils, a process that solidifies them and helps to prolong the shelf life of the baked goods and other products in which they are used.

Only those foods which listed “partially hydrogenated vegetable fat” high on the contents list and contained more than 15g of fat per 100g were included. In all, 70 servings of French fries and chicken nuggets, 90 packs of microwavable popcorn, and 442 samples of cakes, biscuits, and wafers were included in the analysis. In 2005, a large serving of French fries and nuggets, 100g of microwavable popcorn, and 100g of cake or biscuits or wafers provided more than 30g/100g of TFA in five EU countries in Eastern Europe and between 20g and 30g in eight Western European countries.

In 2009 the analysis revealed that the TFA content in French fries and nuggets had fallen substantially in all the European countries studied.

But while the TFA content of popcorn, cakes and biscuits had fallen in Western European countries, this was not the case in Eastern Europe where it remained high. The same portions still provided high TFA content of between 10g and 20g in Hungary, Poland and the Czech Republic. But the equivalent menu in Germany, France and the UK provided less than 2g. Clearer food labelling is one way of curbing trans fatty acid intake, but most countries still rely on food manufacturers to voluntarily reduce the TFA content of their products, the authors point out. Only a few countries—Denmark, Austria, Switzerland and Iceland—have gone down the legislative route and forced industry to limit the amount of TFA used in foods to 2% of the total fat. But foods containing trans fats, which can comprise up to 60% of the total fat content, can still legally be sold as shop bought packaged goods, or unpackaged in restaurants and fast food outlets elsewhere in Europe, the authors emphasize.

“It means that in 2012 only a minority—approximately 14 million of the 500 million people in the EU—are protected by legislation against foods [containing] high amounts of [TFA],” they warn.

Meanwhile an ocean apart… FDA starts to show some serious thoughts on the Trans fat usage and labelling. Reducing the use of trans fats could prevent 20,000 heart attacks and 7,000 deaths from heart disease a year according to their recent announcements, so it is not a surprise that partially Hydrogenated oils should be removed from usage within months if the GRAs (Generally recognized as safe) status is re-

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voked.

Partially hydrogenated oils the source of trans fat – are used by smaller firms in the US which haven’t gotten around to reformulation. They are also widely used in smaller foodservice companies who avoided the reformulation because they are not under the same kind of scrutiny as packaged food companies. So they fry with whatever has best short term results…

But even firms that have changed their recipes and reduced PHOs enough to meet the criteria for 0g trans fat are still using some –but not enough to hit the 0.5g/serving legal threshold that triggers labeling.

The main issue after the legislation takes its place properly in any country will be trans fat substitution. What will replace the PHOs in the industry? Will it be safe and beneficial or will it hide behind some small script and gaps in the existing legislation?

Parthenonos 1,N. Erythraia Athens146 71Greece info@expoaid.gr / Tel: +30 210 6250365 / Fax: +30 210 6209905

EXPO VIEW

GREEN PLANET

small scale farming, allowing smaller farmers to become more competitive and finally apply otherwise costly food safety standards.

This is not new to consumers and progressive retailers who in the effort to secure safe and ethical products, pushed small farmers to adopt elaborate methods in order to face their social responsibility effectively. These actions led to non-coordinated and nonrecognized private guidelines and labels that ended up confusing consumers.

GLOBALGAP, the Deutsche Gesellschaft fόr Technische Zusammenarbeit(GTZ) and Coop Switzerland recoghe GLOBALGAP ( formerly known as EUREPGAP) has been nized all the above difficulties and joined their forces by develestablished as a key reference for Good Agricultural Practices oping a method with which they try to cover social criteria that (GAP) in the global market. It is an independent third party orcan be applicable to all agricultural production systems and to ganization that sets voluntary standards for the certification of different farm sizes. agricultural products worldwide and ensures that the food is GRASP is the module of the method which has as goal the farm farmed responsibly in ecologically sound conditions. assurance which is related with workers health and welfare by It covers the entire production chain from brood stock to farm- forcing the employers to supply employees with protection ing, harvesting and processing and it is composed of requiregear, ensure the workers’ hygiene and train them by using a ments on food quality and safety, animal and worker welfare, documentary control. and environmental and ecological care. The GLOBALGAP stand- The results of all 5 pilot projects proved that the above probard is an internationally accepted and recognizable standard for lems exist and that they can be tackled progressively with posiprimary production from retailers and implemented in many tive results, proving that the improvement of working condicountries around the world. tions is directly connected with the food safety.

Through the development of 5 pilot projects that took place in Kenya, Brazil, Vietnam, Spain and Morocco the importance of good social practice in mainstream agriculture became an undeniable fact. Clearly small farmers cannot compete with the low labor cost that big farmers can sustain. Consequently they hire illegal workers, based on the failure of governmental control.

The goal of these projects is to develop tools based on basic social compliance within different types of farming in different regions. Specifically, it promotes the necessity of an active dialogue between farmers and farm management. The social criteria that strengthen the right of workers both improve the social atmosphere and most importantly reduce costs by preventing accidents, clearing terms and duties and having fewer machineries’ breakages. All these have a positive impact on the cost of

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Global Gap Mission Committed to globally connect farmers and brand owners in the production and marketing of safe food to achieve:  A universal standard

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Safe and sustainable food for everyone everywhere today and in the future.

Safe production methods

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Protection of scarce resources Easier certification and wider markets for producers Reliable sourcing and processing for retailers Valuable reassurance for consumers

Responsible use of resources Welfare of workers and animals Page 6

Parthenonos 1,N. Erythraia Athens146 71Greece info@expoaid.gr / Tel: +30 210 6250365 / Fax: +30 210 6209905

EXPO VIEW

ON THE ROAD

Anuga 2013 The first Cologne Anuga was held between 17 and 24 August 1924, attracting 340 exhibitors and around 40,000 visitors. It was probably the largest Anuga during the inter-war period, already divided into eight sub-categories, covering Food and Drink, Cooking and Bakery equipment, Food Processing machinery, Packaging Material and equipment, Retail, Materials Handling, Chemical and Cosmetic preparations and Advertising.

In 2013 ”Anuga” ended on 9 October after welcoming approximately 155,000 visitors to 6,777 trade stands.

Looking back at the exhibition results we can say in confidence that we had a good visitation rate, with quality contacts that have already evolved in business relationships.

Anuga remains a significant melting pot for us, an integrated opportunity to meet with clients and examine the market trends in the category.

been posted online at the European Business Awards website www.businessawardseurope.com, and can be viewed and voted for by the public between 11thNovember and 2ndJanuary 2014. The National Public Champion in each country will be the company that receives the highest number of public votes.

On 14 January 2014, the video with the highest number of votes for each country, will be announced as a National This year both Expoaid and Papadimitriou s.a. have been Public Champion, and will then go forward to compete in invited to joint the process of European Business awards a second round of public voting to find one European Pubfor 2014. This invitation itself constitutes a recognition of lic Champion, the company with the highest number of the effort and the positive results the companies experipublic votes overall. This second round of voting ends on enced in the past 2 years.

25 March 2014.

On Monday 11 November 2013 – London – Papadimitriou s.a. became one of the 376 national champions across 31 countries in Europe competing for the title of ‘National Public Champion’ as the public vote opens for the first time in this year’s European Business Awards sponsored

by RSM International.

PRESS TO SEE THE STORY Videos from each national champion, telling an in depth story of the company’s business and its successes, have

PAPADIMITRIOU S.A. SELECTED AMONGST NATIONAL CHAMPIONS FOR EUROPEAN BUSINESS AWARDS

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Parthenonos 1,N. Erythraia Athens146 71Greece info@expoaid.gr / Tel: +30 210 6250365 / Fax: +30 210 6209905