Food Business Africa Nov/Dec 2020 Issue

INDUSTRY FOCUS

CRAFT BEER INDUSTRY IN AFRICA MY FACTORY • MY STORY

RAJ MALDE - Founder & MD, Mjengo Limited WWW.FOODBUSINESSAFRICA.COM

EXECUTIVE INTERVIEW

SUNIL PATIL

KELLOGGS-TOLARAM NIGERIA YEAR 8 | ISSUE NO. 43 NOV/DEC 2020

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THE CONTENT OF THIS PROMOTION CAMPAIGN REPRESENTS THE VIEWS OF THE AUTHOR ONLY AND IS HIS/HER SOLE RESPONSIBILITY. THE EUROPEAN COMMISSION DOES NOT ACCEPT ANY RESPONSIBILITY FOR ANY USE THAT MAY BE MADE OF THE INFORMATION IT CONTAINS.

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GRAINS & LEGUMES • BREAD • CAKES • PROCESSED & PACKAGED FLOURS • BISCUITS • COOKIES

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FRESH MILK • YOGHURT • ICE CREAM • CHEESE • BUTTER, GHEE ETC

LOGISTICS & E-COMMERCE

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Fresh Produce & Grocery EXPO

FRUITS & VEG • HERBS & SPICES • SAVOURY & CONDIMENTS

HEALTHY, NUTRITIOUS FOODS • NUTRACEUTICALS • SUPPLEMENTS • PERSONAL HEALTH & WELLNESS SOLUTIONS • CONSULTANCY & CARE

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My Factory • My Story: Mjengo Ltd

CONTENTS ON THE COVER Raj Malde (second left), the Founder & MD of Mjengo Limited with his family during the shooting of the My Factory • My Story feature in Thika town, near Nairobi, Kenya.

YEAR 8 | ISSUE NO. 43 NOV/DEC 2020

Factory • My Story: 40 My Mjengo Ltd Malbros, trading as Mjengo Limited, is a Kenyan diversified food processor with a focus on the grains, biscuits and snack products. In this feature, we discuss with the company’s Founder & Managing Director, Raj Malde on the past, present and future of the firm as it enters a new phase of growth, innovation and diversification.

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Industry Focus: Craft Beer Industry in Africa

Innovation and product diversification is critical for the survival of any business and this is what has constantly driven us as a company and that explains why we have gone on to cement out foothold in the market segments that we operate in - Raj Malde, Founder & MD, Mjengo Limited The emerging craft beer industry in Africa has achieved some important points, but challenges remain to further growth of the sector.

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NOV/DEC 2020 | FOOD BUSINESS AFRICA

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Innovations for a better world.

CONTENTS Profile: Sunil Patil, 68 Executive Kellogg-Tolaram Nigeria

YEAR 8 | ISSUE NO. 43 |NOV/DEC 2020 REGULARS 8 Editorial/Opinion 10 Events Calendar

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We profile Sunil Patil, the Head Quality, Research & Technology at Kelloggs-Tolaram Nigeria.

DAIRY BUSINESS AFRICA 48 Convenience, flavours and healthy-living drive growth of drinking yogurt market BEVERAGE TECH AFRICA 52 Sustainability leads the way in trends in the packaging of beer MILLING & BAKING AFRICA 59 Tackling a Hidden Pandemic: The essential role of food fortification FOOD NUTRITION & HEALTH 66 Why living in a poor country means you have bad food choices 6

NOV/DEC 2020 | FOOD BUSINESS AFRICA

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News Updates: • Ice cream, chocolate maker Glacier products clinches investments • FC partners Kobo360 to tackle food waste, energy consumption in Nigeria • Crown Flour Mills estbalishes vitamin premix facility • Africa Improves Foods appoints new CEO • Nestle Zimbabwe ploughs US$2.5m into new cereal production line • EABL appoints Jane Karuku as new Managing Director for its East African businesses • DFSA join forces with Coega Dairy forming South Africa’s dairy powerhouse • Nestle to develop first carbon neutral dairy farm, as Costa opens in South Africa • Kenya makes key agreements with UK, COMESA to promote trade • Uganda Breweries makes strategic changes to senior executive team • Kenya’s Packaging Industries Ltd bags global packaging innovation award • Leading aquaculture businesses in Africa get backing from international investors • Singapore becomes the first country in the world to approve lab grown meat • Healthy snack makers Kind North America and Nature’s Bakery joins Mars Inc. • Germany’s Haribo to build one of the largest confectionery plants in the US • Burger King plans massive expansion in India, to open 700 restaurants before 2026 • Diageo targets a low carbon future in new 10-year sustainability plan • Nestle invests US$3.5bn in fight against climate change, targets zero carbon emissions by 2050 • Lidl introduces new sustainably sourced chocolate bar in US stores Supplier News & Innovations: Chr. Hansen unveils new bioprotection solutions | Croda acquires Iberchem | Buhler launches Arrius automatic grinding equipment | AAK to establish innovation center for plant based-foods FOODBUSINESSAFRICA.COM

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NOV/DEC 2020 | FOOD BUSINESS AFRICA

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OPINION

Cocoa Pricing: FOODBUSINESSAFRICA.COM

Year 8 | Issue 5 | No.43 • ISSN2307-3535

FOUNDER & PUBLISHER Francis Juma EDITORIAL Virginia Nyoro | Catherine Wanjiku | Paul Ongeto ADVERTISING & SUBSCRIPTION Jonah Sambai | Hellen Mucheru CONTRIBUTORS Ayodeji Balogun | Felistus Mutambi | Oliver Camp | Amelia Agranovich | Derek Headey & Harold Alderman | Tuti Siregar DESIGN & LAYOUT Clare Ngode

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AFRICA Inc. FW Africa t/a FoodWorld Media Ltd P.O. Box 1874-00621, Nairobi Kenya Tel: +254 20 8155022, +254725 343932 Email: info@fwafrica.net Company Website: www.fwafrica.net

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Food Business Africa (ISSN 2307-3535) is published 6 times a year by FW Africa.

The magazine is distributed for free to food, beverage, milling and foodservice companies and Government regulatory agencies in Africa. It is available through paid subscription for the other stakeholders in the food chain, including suppliers to the sector.

Copyright 2020. Reproduction of the whole or any part of the contents without written permission from the editor is prohibited.

All information is published in good faith.

While care is taken to prevent inaccuracies, the publishers accept no liability for any errors or omissions or for the consequences of any action taken on the basis of information published.

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NOV/DEC 2020 | FOOD BUSINESS AFRICA

Why Public-Private Sector Partnerships are Key to Sustaining the Livelihood of Smallholders Farmers in Africa

By Ayodeji Balogun, CEO of AFEX Commodities Exchange Limited (AFEX)

P

ricing is a debating point in the cocoa sector, dominating contemporary stakeholder conversations; especially African cocoa producers.

This is a result of the historically low cocoa prices that do not provide a fair income to farmers involved in cocoa production.

Despite the announcement of the Living Income Differential (LID) by both Cote d'Ivoire and the Ghana Cocoa Boards, there still exist questions on the sustainability of this intervention - to take farmers out of poverty.

Stakeholders in the African cocoa industry need to rethink its strategy to improving farmers’ livelihood, by increasing their earning potential through value chain efficiency, facilitated by public-private sector partnership.

Interventions aimed at income enhancement and lifting farmers out of poverty are often based on the assumption that the said interventions, alone, are enough for the solution being pursued.

On the surface, the decision to increase the farm gate price of cocoa and LID by an additional US$400 a tonne on all cocoa contracts, appear to be a solution to lifting farmers out of poverty.

However, even if farmers' incomes were to increase - through increased farm gate prices - other structural issues like small farm sizes and low productivity levels will still keep these farmers below the poverty line.

For cocoa farmers to earn a fair wage from their input, issues like ageing plantations, lack of adequate training and financing as well as

direct access to the market, need to be addressed. These structural issues pose a more significant threat on the livelihood of cocoa producers in Africa.

Price increases on their own are not enough to lift the poorest farmers out of poverty.

Price interventions like the LID must go hand in hand with other policies and program, implemented to increase the volume and quality of beans produced. Achieving this will require a multi-stakeholder collaboration involving both the private and public sector aimed at not only improving the quality of lives of farmers, but also ensuring that the cocoa value chain is optimized.

To enable smallholder farmers to benefit in an egalitarian way from the cocoa industry, the focus should be towards improving value chain efficiency while addressing structural challenges in the sector.

This is achievable through a public-private collaboration that will drive private sector operations to deepen financial markets, scaleup infrastructure investments and enhance productivity and quality through training and input supply.

While the government takes the driver’s seat to develop policies and the infrastructure to catalyze this growth across the cocoa ecosystem, private sector organizations will ensure value chain efficiency – increasing the benefits stakeholders gain from the industry.

AFEX is committed to providing the support and technology to improve the quality of life for African cocoa farmers and their communities.

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EVENTS CALENDAR

January 25-28, 2021

All-Africa Summit on Diversifying Food Systems with African Traditional Vegetables to Increase Health, Nutrition and Wealth Arusha, Tanzania Focus: Horticulture www.avrdc.org

March 24-26, 2021

June 20-22, 2021

African Dairy Conference and Exhibition Kampala, Uganda Focus: Dairy www.dairyafrica.com

Africa’s Big 7 Johannesburg, South Africa Focus: Food & Beverage retail www.africabig7.com

March 28-31, 2021

June 22-25, 2021

January 31-Feb 03, 2021

FHA Singapore Expo Singapore, Asia Focus: Food & Beverage www.fhafnb.com

February 17-19 2021

CAFEX Cairo, Egypt Focus: Hospitality www.cafex-me.com

ISM Cologne Cologne, Germany Focus: Sweets and Snacks www.ism-cologne.com

African Fine Coffee Conference & Exhibition Addis Ababa, Ethiopia Focus: Coffee www.afca.coffee

February 17-26, 2021 Annual Frozen Food Convention Virtual, USA Focus: Frozen Ingredients www.affi.org

February 21-25, 2021 Gulfood Dubai, UAE Focus: Food & Beverage www.gulfood.com

March 02-04, 2021 Global Food Safety Initiative Conference Virtual Focus: Food safety www.mygfsi.com

March 09-12, 2021 Foodex Japan Makuhari Messe, Japan Focus: Food & Beverage www.jma.or.jp/foodex

March 23-25, 2021 Morocco FoodExpo Casablanca, Morocco Focus: Food & Beverage www.moroccofoodexpo.com

Sweets & Snacks Expo Indiana, USA Focus: Confectioneries & Snacks www.sweetsandsnacks.com

April 01 – 03, 2021

August 05-07, 2021 AFMASS Food Expo Kenya Nairobi, Kenya Focus: Food, Beverage & Milling www.afmass.com

April 07-10, 2021

August 22-24, 2021

Food Pack Asia Bangkok, Thailand Focus: Packing & Packaging www.foodpackthailand.com

SNAXPO 21 North Carolina, USA Focus: Confectioneries & Snacks www.snaxpo.com

April 07 – 09, 2021

August 26-28, 2021

Agbiz Congress Sun, South Africa Focus: Agriculture www.agbiz.co.za

The Nafem Show Florida, USA Focus: Food service www.thenafemshow.org

May 12-13, 2021

International Conference on Pharma and Food Cairo, Egypt Focus: Food & Beverage www.academicsera.com/Conference2021/ Egypt/1/ICPAF/

October 09-13, 2021

MaY 26-27, 2021

Gulfood Manufacturing Dubai, United Arab Emirates Focus: Food & Beverage www.gulfoodmanufacturing.com

Africa Food Safety & Quality Summit Nairobi, Kenya Focus: Food Safety www.foodsafetyafrica.net

May 28-30, 2021 The Vegan & Plant Powered Show Cape Town, South Africa Focus: Plant-based foods www.veganandplantpoweredshow.com

Anuga Food & Beverage Fair Cologne, Germany Focus: Food & Beverage www.anuga.com

November 07-09, 2021

November 12, 2021 Africa FOODEX Awards Nairobi, Kenya Focus: Food, Beverage & Milling www.awards.foodbusinessafrica.com

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NEWS UPDATES by www.FoodBusinessAfrica.com CERTIFICATION

Hake fishery in Namibia attains globally recognised sustainable fishing standard NAMIBIA –Namibia has received the first Marine Stewardship Council certification for its hake trawl and longline fishery, becoming the second country in Africa to meet the globally recognised standard for fishing.

The Marine Stewardship Council (MSC), an international non-profit organization, which sets science-based standard for sustainable fishing and seafood traceability, undertakes the certification.

South African Hake fishery was the first to be certified in the region in 2004 and with Namibia attaining the nod is recognition of progress made by the government and fishing industry in rebuilding hake stocks, which in the past were decimated by overfishing. To be MSC certified, a fishery must show the fish stock is healthy, that it

minimises its impact on the environment and has effective management in place.

“MSC certification of the Namibian Hake is an independent endorsement that our efforts are working, and a signal to retailers, brands and fish lovers around the world that the Namibian Hake is sustainable and it is here to stay,” said Dr. A Kawana Minister of Fisheries and Marine Resources, Government of Namibia.

Serving as proof of being certified, a MSC ecolabel is placed on the pack of the product. This will ensure the Namibian fishery can continue to export to markets in Southern Europe and will help it expand into retail markets in Northern Europe.

M&A

Kenyan ice cream, chocolate maker Glacier Products clinches investment

KENYA – Glacier Products Ltd, one of Eastern Africa’s leading ice cream and chocolate confectionery manufacturers operating from Kenya has received an undisclosed amount of investment from EXEO Capital, a leading pan-African private equity investment manager, through its Food and Agribusiness fund, Agri-Vie Fund II. The financial and management backing is aimed to

steer the producers of renowned Dairyland brand towards continued sustainable growth.

Glacier was incorporated in 1979, as a small ice cream company in the capital of Kenya but was later acquired by its current owners as a going concern in 1995. Since then, the processing company has grown by leaps and bounds upgrading and improving its processes to position itself as a market leader in the dynamic industry with presence in Kenya, Tanzania, Uganda, South Sudan, Ethiopia and Rwanda. The company’s product lines include ice-cream, chocolates, dessert topping sauce, spreads and whipping cream.

Commenting on the investment Sunil Shah and Minesh Shah, Directors of Glacier said, “We are delighted to partner with EXEO Capital, who share our vision of continuing to grow the leading and trusted brand. Glacier will benefit greatly from EXEO’s sector expertise, as the company enters its next phase of growth.”

CERTIFICATION

Nigeria’s largest egg producer Premium Poultry instals solar plant NIGERIA – Premium Poultry Farms, Nigeria’s largest egg producer has entered into an agreement with renewable energy supplier, Rensource Energy and Empower New Energy, an impact investment company based in Norway to install a solar photovoltaic system at its facility.

The 700 KWp solar photo-voltaic plant will generate 1 gigawatt hour of clean energy annually, saving up to 25,000 tons of CO2 in its lifetime of abour 25 years. The farm produces 600,000 eggs daily and has its own feed mill. This

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project, which is slated to commence operations before the end of 2020, will create 40 jobs during its construction and operations phase.

“We take immense pride in being good stewards of the environment and are pleased to further enhance our efforts with this solution. Sustainability is at the heart of the farm’s philosophy,” says Alhaji Mahey Rasheed, Chairman of Premium Poultry Farms.

FOODBUSINESSAFRICA.COM

DATE: MAY 26-28, 2021 HYBRID SUMMIT: LIVE FROM NAIROBI, KENYA & VIRTUAL AROUND AFRICA & THE WORLD

Join over 2000 delegates at this pan-African industry-focused virtual and live food safety and quality management conference and expo.

Meet and network with delegates from the food and animal feed manufacturing, retailing and distribution; hospitality, restaurants and catering; Government ministries and regulatory agencies; agriculture and agribusiness players; academics and research institutions as you discover the latest trends, opportunities and learn how to improve systems and reduce risks in the food safety landscape in Africa.

For more info on participation, exhibition and sponsorship: Tel: +254 725 343 932 Email: info@fwafrica.net

www.foodsafetyafrica.net

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FOOD WASTE

INVESTMENTS

IFC partners Kobo360 to tackle food waste, reduce energy consumption in Nigeria

NIGERIA – IFC, a member of the World Bank Group, in partnership with Kobo360, an African digital logistics platform, announced an open call for innovators from around the world to bring climate-smart, temperature-controlled logistics (TCL) cooling solutions to Nigeria to help the country address food waste challenges, support its health sector, and reduce its energy consumption.

The program is being implemented

by IFC in partnership with the UK Department for Business, Energy & Industrial Strategy (BEIS) and Kobo360, an African e-logistics platform and IFC client. Applications are open until January 31, 2021.

The TechEmerge TemperatureControlled Logistics Nigeria program aims to offer market access and a pool of up to US$1 million in funding to top innovators matched with leading Nigerian companies to jointly pilot sustainable solutions that reduce losses in cold chains, strengthen access to TCL-dependent products and markets, and build commercial partnerships.

“Sustainable cooling technologies represent a fast-growing business opportunity with particular importance to emerging markets. We are excited to support cutting-edge entrepreneurs to pilot and scale their temperature-controlled logistics solutions in Nigeria, and Africa more broadly,” William Sonneborn, Director of Disruptive Technologies and Funds, 14

NOV/DEC 2020 | FOOD BUSINESS AFRICA

IFC said.

“Africa’s cold chain capacity faces a lack of investment in equipment for maintaining a specific temperature range throughout the supply chain,” Ike Abiakam, Founding Partner, Kobo360 and Head of KoboCare said.

“We’ve seen a gap in the market for shipping solutions, specifically concerning moving deep-frozen, cold and ambient goods in a safe and temperature-controlled environment. “ Te m p e r a t u r e - c o n t r o l l e d shipping is constantly evolving and our partnership with the IFC is a key step towards discovering the best innovations that will enable the efficient transport of chilled goods.”

The TechEmerge Sustainable Cooling program will bring together tech companies and innovators selected through a competitive process for matchmaking with leading Nigerian companies. This selection will lead to discussions of piloting and commercial deployment of their innovations.

IFC and a panel of industry experts will provide support during market entry and tech transfer, helping tech companies and start-ups mitigate financial and operational risks.

TechEmerge is part of IFC’s strategy to support entrepreneurship and innovation in emerging markets and leverage the private sector to bring cutting-edge technologies to tackle some of the world’s most critical development challenges.

Zambian Breweries embarks on US$18m planned capacity upgrade to sort out supply issues ZAMBIA – Zambian Breweries has said that it has resumed its 2020 upgrade works which will be finalized by early next year.

According to the company, the planned projects worth US$18m were scheduled to be complete before the end of the year but was met with setbacks arising from the COVID-19 pandemic.

The subsidiary of AB InBev has highlighted that the investment will increase its production capacity by 30%, meeting the current supply shortage of beer that has been witnessed in the market leading to price volatility.

“In the eyes of everybody, it seems that Zambian Breweries is the one creating the artificial shortage of beer and increases in price, but that is not true,” said Zambian Breweries Country Director, Jose Moran The brewer has acknowledged that 2020 has not been a good year of business because of the pandemic and the imposed restrictions that disrupted its operations.

However, now that the markets are open across the region and restrictions have eased, capital projects are on course, and the breweries is looking forward to increasing capacity to meet the growing market demand in the short term. Engaging with the Bars and Nightclub Owners Association of Zambia, Jose Moran stated, the company is doing its best, but they need everyone’s support in controlling and addressing problem of beer shortages and prices on the market.”

Moran revealed that the brewery has maintained its production capacity but that demand had grown organically. Although they are struggling to catch up, they are working to maximise efficiencies and resources to go beyond their normal capacity, he said.

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NEWS UPDATES

BRIEFS Uganda establishes new slaughterhouse for cattle UGANDA – Uganda is set open a new abattoir at the Sino Industrial Park in Mbarara, west of Uganda, targeting the export market, including regional and global destinations.

The state-of-the-art slaughterhouse is currently 95% complete with close to US$7m injected in the project. The facility will attract local demand of about 150 cattle per day but has an installed capacity to handle 400 cattle.

Ethiopia constructs US$3.8m specialized water testing laboratory to ensure safety of consumers ETHIOPIA – The Ethiopia Water Technology Institute is constructing a specialised laboratory for water testing and research at a cost of 145 million Br (US$3.8m).

The two-storey laboratory is expected to be operational in February 2021 and is fully funded by the government. It will not only undertake quality analysis of drinking water but also for irrigation, and agro-processing in line with the standards set by the World Health Organisation (WHO).

FORTIFICATION

Crown Flour Mills establishes vitamin premix facility, eyes 90% food fortification compliance

NIGERIA – Crown Flour Mills, the Nigerian subsidiary of multinational food and agribusiness company Olam International has established a stateof-the-art vitamin premix facility to steer its food fortification efforts.

A first of its kind by any flour miller in the West African country, the complex was established with technical support from the PEOPLE

Africa Improved Foods appoints Edouard Spicher as company’s new CEO

Jumia expands scope with launch of third-party delivery services AFRICA – Leading e-commerce platform in Africa, Jumia has opened its logistic arm to third party businesses that wish to leverage its network, technology and expertise for last mile deliveries across 11 countries in the region.

The ecommerce company has indicated that the new offering is aimed to enable the third parties to efficiently undertake their logistics operations, which is a major cost driver. Prior to the announcement, the service was reserved for e-commerce and food vendors operating on its marketplace.

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international non-profit organization Technoserve, under its Strengthening African Processors of Fortified Foods programme.

According to Crown Flour Mills the facility will enable it to attain the 90% food fortification compliance target, aimed to provide Nigerians with wide access to nutritious products.

“The goal is to prepare vitamin premix according to the regulatory requirement of the Standards Organisation of Nigeria (SON) and supply Crown Flour plants with high quality and food-safe vitamin premix.

This is the first-ever by any flour miller in Nigeria,” said Ashish Pande, Managing Director of the company.

RWANDA – Africa Improved Foods

(AIF), the manufacturer of fortified foods in Rwanda has named Edouard Spicher as the company’s new CEO taking over from Amar Ali, who has been at the helm since 2016.

Edouard comes with a 25 years track record as a Senior Executive in the consumer goods sector with

a strong background in emerging markets having worked with companies like Fan Milk International, where he was the CEO of the Danone JV and Nestle.

Asked what his priority will be at AIF, he had this to say: "AIF has built its first business leg addressing the needs of institutions for humanitarian aid. Our next step is to grow our second business leg addressing the needs of consumers for nutritious and affordable meals. Building two strong legs will allow us to walk and then eventually run. In 5 years, we will have built a sustainable business across several East African countries with engaged, agile and collaborative teams on-ground."

Edouard is a Swiss national with an Engineering degree from École Polytechnique Fédérale de Lausanne.

He says that while he has workied on all continents, emerging markets have been the most important to him, with a passionate focus on subSaharan Africa.

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INGREDIENTS PARTNERSHIPS

Nestle Zimbabwe ploughs US$2.5m into new cereal production line As Tanganda company set to construct solar plant to offset electricity challenges

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ZIMBABWE - Nestle Zimbabwe has inaugurated a US$2.5m cereals manufacturing line, aimed to boost operations to meet local demand and exports.

The expansion will result in over 30% incremental volume throughput as the food and beverages concern expands capacity, targeting to triple its US$400,000 monthly exports in the medium term. The commissioning of the new manufacturing line coincided with the launch of two new products: Nestlé Cerevita Instant Sour Porridge and Nestlé Cremora with Milk, a coffee and tea enhancer.

With its new products, Nestlé seeks to fill the existing gap on traditional consumer taste preference of Zimbabweans.

They also have over 80% local content, which Nestlé says will enhance their affordability on the local market and competitiveness in export markets “The milestones above are aligned to Nestlé Zimbabwe’s transformation plan which seeks to address accessible and affordable nutrition,” said Eunice Ganyawu-Magwali, the Managing Director for Nestlé Zimbabwe. The move reaffirms Nestlé’s commitment to the future of Zimbabwe and takes it total investment in the country to over US$40 million in the last ten years.

Further, the country’s largest grower and producer of tea and coffee, Tanganda Tea Company Limited is set to complete the construction of a US$15m solar plant to power its production facilities.

A subsidiary of Meikles Limited, the firm specializes in production and packaging of tea and coffee, both for the domestic and foreign markets. The company also exports macadamia and avocado. The new plant is scheduled to be completed by end of 2020 and is targeted to produce 7.55 megawatts. The project has been partially funded by the proceeds from the sale of Meikles Hotel to Dubai-based billionaire Ali Albwardy in 2020.

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The Food Ingredients Show Kenya displays the latest technologies in food ingredients and chemicals from local, regional and international companies, including: Flavours, colours – synthetic, natural and nature-identical • Sweeteners – nutritive and artificial and natural; sugar replacers • Enzymes, improvers, dough and conditioners and processing aids • Emulsifiers, antioxidants and preservatives • Stabilisers, thickeners, viscosity modifiers, firming agents and bulking agents • Vitamins, minerals and premixes • Protein powders, flours and isolates; egg powders and replacers • Humectants, gelling and glazing agents • Salt, mineral salts and salt replacers • Foaming and raising agents and propellants • Fat and fat replacers

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PARTNERSHIP

Twiga, IFC partner on US$30m risk sharing facilities to support farmers The firm also announces an employee share ownership plan for its employees

KENYA – Kenyan tech-enabled food distribution platform, Twiga Foods in partnership with its longterm financier IFC are proposing to collaborate with Tier 1 banks in Kenya on an investment of up to KSh. 3.2 billion (US$30 million) in irrigated medium-scale contract farms.

The investment will be used to

support the development of up to 300 irrigated medium-scale contract farmers to complement Twiga’s seasonal smallholder farmer supply base. This is aimed to stabilize year-round fresh fruit and vegetable volumes in line with Twiga Foods mission of supplying readily available safe, affordable, and high-quality food

to Kenya’s urban markets.

IFC’s Global SME Finance Facility will also potentially support the unfunded risk sharing facilities (RSFs). The first phase of the program will be led by KCB Bank Kenya.

Other than supporting the smallscale farmers, the business-tobusiness food distribution company has set up an employee share ownership plan (ESOP), to grant its workers a stake of the company in a bid to attract and retain best talents.

The plan will see 156 workers of the online distributor allotted shares over the next four years.

Employees will get shares equivalent to 10 percent of the company’s estimated future exit value, which is what is raked in after the sale of an asset or a business. The program will also be accessible to managers who join the company in the future, especially as the organization gears towards launching its expansion to other African countries in 2021.

CAPACITY BUILDING

Ghanaian rice manufacturers Olam, Wilmar launch new products

GHANA – The Ghanaian subsidiary of global food and agri-business company, Olam International, has launched the country’s first fortified rice, aimed to meet the nutrient requirements for health living by every consumer.

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The new rice is part of Olam Ghana’s long-grain rice brand, Royal Aroma and is fortified with micronutrients including iron, zinc, and B-complex vitamins, providing more than 15% of the minimum RDA (recommended dietary allowance) per serving.

“What we are bringing to Ghanaians today is a brand of rice, with the same great taste, sweet aroma and ease of cooking, but powered with a variety of vitamins and minerals to promote health and wellness,” said Miss Amrita Dutta, Marketing Manager at Olam Rice. The unveiling of the product came weeks after the food company launched the first ‘Made in Ghana’ rice known as

Mama Gold.

In addition to that, Wilmar Africa Limited, Ghanaian subsidiary of leading food processing and investment holding company, Wilmar International has expanded its rice portfolio, launching two new variants of its Fortune and Viking brands.

The new products dubbed Fortune Emo Pa Local Rice and Viking Emo Local Rice consist of premium jasmine rice grown locally in the Volta region. The launch is aimed to bring more choices to consumers and support the local rice industry as the country gears towards becoming self-sufficient in production.

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AFRICA Inc. W W W. A F R I C A I N C M A G . C O M

INSPIRING AFRICA'S BUSINESS LEADERS & ENTREPRENEURS

Health Care & Personal Care

Agribusiness & Biotech

Aviation, Transport & Logistics

Manufacturing & Retail

Construction & Real Estate

Government/NGO Services

Energy, Oil & Gas

Telecom, ICT & Media

Finance & Insurance

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Hospitality & Tourism

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NEWS UPDATES

BRIEFS Rwanda, Kenya seek alcohol packaging changes RWANDA – The Rwanda Food and Drugs Authority (FDA) has prohibited the packaging of alcoholic drinks in plastic bottles as they pose a threat to both consumers’ health and the environment.

The authority highlighted that packaging alcoholic drinks in plastic bottles leads to adulteration as some of those packages are made of chemicals, which get re-activated and dissolved in the drink following prolonged exposure to heat and contact with alcohol, thus posing a health risk to consumers.

Meanwhile, in neighbouring Kenya, the sale of alcoholic drinks in bottles of less than 750 ml will be illegal if Parliament approves a proposed law that seeks to increase the minimum bottle size from the current 250 ml. This is aimed to curb the sale of alcoholic drinks in small packages that have been blamed for fuelling consumption among the youth.

M&A

Leading Moroccan terminal gets Danish company A.P. Moller investment

MOROCCO – Holmarcom Group, a

leading diversified industrial group in Morocco has offloaded 49% of its stake in its grain terminal operator, Mass Céréales al Maghreb (MCM) to Danish company A.P. Moller Capital (APMC), as part of its development ambitions in Africa.

MCM handles nearly half of the annual imports of bulk cereals in Morocco, through its two unloading and storage terminals located in the ports of Casablanca and Jorf Lasfar.

The company provides handling and storage services, contributing to an efficient logistics chain for key food supplies in the North African country.

With the partnership, Holmarcom Group retains 51% of stakes in

MCM and will jointly pursue new investments that enable more reliable and efficient supply chains, support food security, and create sustainable jobs in African markets.

Meanwhile, Development Partners International has injected additional capital in Moroccan water infrastructure and irrigation solutions provider Compagnie Marocaine de Goutte à Goutte et de Pompage (CMPG) to fund its combination with Moroccan agricultural supplier Comptoir Agricole de Souss (CAS).

CMGP has merged with CAS, creating a new major player in the African agricultural industry to serve as a unique end-to-end, one-stop shop market for farmers.

“The combination of our two highly complementary companies will create the reference for the Moroccan and African farmer in agriculture and water, providing significant growth opportunities, enabling us to become better partners for our customers and suppliers, and offering better development opportunities for all our employees,” said CAS CEO Jacques Alleon.

INVESTMENTS

Flavour and Fragrance company Iberchem Group opens production plant in Tunisia

TUNISIA – Spanish flavour and fragrance company Iberchem Group has opened a new production center in Tunisia under its flavour division, Scentium.

The new facility, located at the 20

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country’s capital Tunis, covers nearly 700 square metres and is fully equipped for the production of liquid and powder flavours as well as emulsions. The site neighbours its flavour division and features a production plant, two warehouses, application labs, testing rooms, administration offices and extra room to accommodate the planned growth of the company.

“Our new flavour centre in Tunis is a testimony to the substantial growth Scentium has been experiencing in recent years, both locally and globally,” said José Manuel Mateos,

general manager of Scentium.

“It represents a cornerstone of our global expansion plan. It will allow us to offer faster production and delivery times to our local customers, who were previously looked after from our head office in Spain. It will also provide them with additional sales and technical assistance,” he added.

The move follows the company’s acquisition by speciality chemicals company Croda International for a total cash consideration of €820 million (about US$975 million).

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M&A

DFSA join forces with Coega Dairy forming South Africa’s dairy powerhouse

process EXPO KENYA

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SOUTH AFRICA – South Africa’s leading dairy companies, Dairy Farmers of South Africa (DFSA) and Coega Dairy have merged operations creating a new agribusiness venture known as Dairy Group.

Under the 50:50 partnership DFSA brings its over a century long experience as a market leader in the procurement of raw milk and supplying premium brands such as Clover, combining with Coega Dairy’s low-cost efficiency and house-brand knowledge.

DFSA was initially a full subsidiary of Clover SA. Later its milk producers acquired 74% ownership of the company with Clover finally disposing of its remaining investment to the Milk Producers Trust in May 2020.

Despite the change in ownership, DFSA still supplies Clover’s full raw milk requirements for its own products which are predominantly UHT under the Clover, retailerowned and Ultra Milk brands.

Coega Dairy on the other hand, is owned by Coega Food Group and commenced operations in September 2011, producing UHT and butter products under the Coastal View and Crystal Valley brands for private labels. In September 2019, Dawson Dairy was brought into the Coega Dairy family, and Amasi brand was introduced into Coega Dairy’s product line.

The new joint venture brings together offerings from both companies, thus venturing into high value and house brand business creating a powerhouse dairy brand with the potential to significantly strengthen the local dairy sector.

“Fewer and fewer dairy farmers are able to go at it alone, and collective action is often the key to long-term viability. The creation of Dairy Group means the industry as a whole has a better, clearer future growth path, which is crucial for all stakeholders,” said Drikus Lubbe, Dairy Group’s CEO. The partnership also positions the company to compete effectively against sophisticated international players within the volatile local economy and expand its footprint into sub-Saharan Africa, adds Lubbe.

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The Process & Pack Expo Kenya edition showcases the latest food and feed milling, processing, packaging and laboratory technologies including: Post-harvest, storage and handling systems, including silos • Grain and feed processing, milling and packaging technologies • Dairy and beverage processing and packaging technologies • Meat, fish and poultry processing and packaging technologies • Laboratory equipment and chemicals plus food and personnel safety supplies • Engineering and automation services and supplies • Refrigeration and cooling services • Outsourced storage, packaging, processing and people management solutions • Hardware and software systems • Fruit and vegetable processing and packaging solutions.

DECEMBER 2-4, 2021

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NEWS UPDATES

TRADE

INVESTMENTS

Kenya makes key agreements with UK, COMESA to promote trade

KENYA – Kenya and the United Kingdom have finally penned a postBrexit trade deal for a duty and quota-free market access of Kenyan products, effective January 1.

The Economic Partnership Agreement (EPA), valued at £1.4 billion (US$1.8 billion) is aimed to avert likely trade disruptions, which might arise once UK exits from the European Union on December 31, 2020. International Trade Minister Ranil Jayawardena and Kenya’s Cabinet Secretary for Trade, Minister Betty Maina, signed the trade agreement in London.

Kenya’s agriculture sector is the biggest beneficiary from the retention of the free-market access terms as the UK market accounts for 43% of its total exports of vegetables as well as at least 9% of cut flowers. Top goods imports to the UK from Kenya last year were in tea, coffee and spices worth £121 million (US$162m); vegetables valued at £79 million (US$106m); and live trees and plants, mostly flowers amounting to £54 million (US$72m).

The deal also benefits many of the approximately 2,500 UK businesses exporting goods to Kenya each year, including many UK suppliers of machinery, electronics and technical equipment, where continued tariff-

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free access will be guaranteed.

“I am delighted that today we have signed a trade agreement with Kenya. This deal makes sure businesses have the certainty they need to continue trading as they do now, supporting jobs and livelihoods in both our countries,” International Trade Minister Ranil Jayawardena said.

Meanwhile, the East African country has received a two-year extension of the sugar safeguard from COMESA aimed to protect Kenyan sugar millers and farmers who face competition from cheap imports. The safeguard was set to expire in February 2021 but COMESA has granted Kenya’s wish, making it run until February 2023.

KEY NUMBERS

US$1.8B

VALUE OF THE TRADE DEAL SIGNED BETWEEN KENYA AND THE UK, TO AVERT POTENTIAL DISRUPTIONS FROM BREXIT

Ghana COCOBOD opens first farmer-owned cocoa fermentation centre GHANA - The Ghana Cocoa Board (COCOBOD) has opened the first farmer-owned cocoa fermentation centre in the country under its FineFlavour cocoa production initiative.

The fermentation centre comes as a great relief to farmers and will eliminate theft of cocoa and exposure of cocoa beans to bad weather conditions during the post-harvest processes.

According to reports by Africa Agribusiness, its development was jointly funded by Tachibana & Co. Ltd., Guittard Chocolate, Transroyal Ghana Limited and COCOBOD with technical support from the Cocoa Research Institute of Ghana (CRIG).

During the official hand-over of the facility to the Fine Flavour Cocoa Farmers’ Cooperative, the Executive Director of CRIG, Dr. Isaac Yaw Opoku said the fermentation centre was built to ensure that the high quality of cocoa produced in the area was not compromised.

The country currently produces about 30 metric tonnes of the premium variety of cocoa and projected a rise in production with the identification of more conducive areas for its production. Ghana’s attempt to penetrate the niche cocoa market began with a pilot project in the Offinso District in 2008.

Opoku lauded the steady growth in membership of the Offinso Fine Flavour Farmers’ Cooperative from 15 to 515 and expressed optimism that the numbers would go up as more farmers sign on to the project.

The Fine flavour cocoa is highly priced on the world market, selling at around US$5000 to US$10,000 per tonne. The launch of the fermentation center is one of the many initiatives undertaken by COCOBOD aimed to boost productivity and performance of the cocoa sector.

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KENYA

MILLING PEOPLE

Flour Mills of Nigeria names new CEO as Paul Gbededo gets elevated to Vice Chairman of the Board

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NIGERIA – Flour Mills of Nigeria (FMN) Plc, Nigeria’s leading integrated Food and Agro-allied group, has appointed Omoboyede Oyebolanle Olusanya as the company’s new Group Managing Director/Chief Executive Officer, effective 1st January 2021.

Omoboyede takes over from Paul Gbededo, who will be retiring from the helm of the company end of December, but will remain on the Board serving as the company’s new Vice Chairman. Paul will fill the seat previously held by his predecessor Chief (Dr.) Emmanuel Akwari Ukpabi (KJW), who was designated the role following his retirement as the Group Managing Director in 2013.

“Paul is a brilliant colleague and an exceptional leader who we will miss dearly. On behalf of the Board, I must express our heartfelt thanks for his extraordinary contributions in leading our great company through a period of growth, expansion and profitability,” said John Coumantaros, the Chairman of the Board.

The newly appointed CEO Omoboyede Oyebolanle joined FMN in January 2020 as Group Chief Operating Officer and has been a core member of the executive management team. Commenting on his appointment, Omoboyede said, “It is an absolute honour, and I am committed to carry the legacy of our great company forward as we continue to deliver on our brand’s golden promise of excellence.”

The owner of the iconic brand – ‘Golden Penny’, has also named Alhaji Muhammed K. Ahmad, as an Independent Non-Executive Director on the Board, effective 3rd December, 2020.

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The Kenya Milling & Bakery Expo events are a series of shows that enable consumers and the general public to touch, feel and taste the latest packaged grains, milled products and baked goods including: Baked goods – bread, cakes, biscuits and cookies • Cereals and grains – from maize, wheat, rice, sorghum and many more • Legumes and oilseeds from alfalfa, clover, beans, peas, lentils, lupins, soybeans, peanuts, sunflower, etc • Processed and packaged flours and other products originating from beans, peas, maize, wheat, rice, sorghum and many more •Breakfast cereals and snacks • Extruded and ready to eat products • Baby food and nutritious flours and blends

DECEMBER 2-4, 2021

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NEWS UPDATES

PEOPLE

EABL appoints Jane Karuku as new Managing Director for its East African businesses sales drop of 9%, with gross profit and profit after tax slipping 13% and 39% respectively, as Covid-19 repercussions on jobs, distribution and on-trade sales disruption plus consumer down-trading and growth of illicit drinks took their toll on the company’s performance.

With responsibility for the company’s businesses that straddle Kenya (Kenya Breweries Ltd, UDV and Kenya Maltings), Uganda (Uganda Breweries Ltd) and Tanzania (Serengeti Breweries), she will be taking over an agile organization that has turned to investments in plant capabilities and aggressive innovation to grow its bottom line and bring in new consumers on its side.

KENYA – The Board of East Africa’s leading alcoholic drinks company East African Breweries Limited (EABL) has appointed Jane Karuku as the new new Group Managing Director for the Group’s business in the region, the first woman to take the helm of the brewers of Tusker and Guinness.

A member of the EABL Board and the current Managing Director for EABL’s Kenyan subsidiary KBL, Jane will be replaced in her current position by John Musunga, who will join EABL from GlaxoSmithKline (GSK) where he has been responsible for leading GSK’s vaccines business in Sub-Saharan Africa, South Asia and Eastern Europe.

According to the company, the appointment of Jane will take effect from 1st January 2021 when she will replace the current MD of the Group Andrew Cowan, while Musunga will officially join the brewer on 1st March 2021. The company says that Cowan will remain a member of EABL Board.

He was appointed Group Managing Director & CEO in July 2016.

With an illustrious career in Kenya, Jane was appointed KBL MD in September 2013, before which she

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was the President of the Alliance for a Green Revolution in Africa (AGRA), an African agriculture focused institution with a goal of increasing and improving food security in the Continent.

Previously she had held a number of senior positions in various companies including Deputy CEO and Secretary General of Kenyan telecoms company Telkom Kenya and Managing Director, Cadbury East and Central Africa. She holds a Bachelor of Science Degree in Food Science and Technology from the University of Nairobi and an MBA in Marketing from the National University of California.

She is currently the Chairperson of Kenya’s Vision 2030 Board and recently chaired a taskforce put together by the President of Kenya Uhuru Kenyatta to seek for funds and support for the country’s response for the Covid-19 pandemic.

Jane has her work cut out for her in the region, especially in getting back the company on a growth path in the middle of the pandemic in the region. In the company’s latest financial report, the brewer reported a volume reduction of 11% and net

JANE WILL BE REPLACED IN HER CURRENT POSITION BY JOHN MUSUNGA, WHO WILL BECOME CEO OF KBL FROM GLAXOSMITHKLINE (GSK) The company’s new investment in the once closed brewery in Kisumu in western Kenya is a case in point, where its low cost, high volume Senator beer is currently brewed for that region’s consumers using local sorghum grain.

With an plan to spend US$20 million (KSH2 billion) in capacity expansion for its businesses plus US$ 9.4 million (KSH 939 million) set aside in the financial year 2020 for its Kisumu brewery, the brewer is set to take advantage of any uptick of business post-Covid.

On the innovations front, the brewer has expanded its range of beer products in cans during the pandemic, while new spirits to cater for a consumer base that has tended to prefer spirits during the lockdown has come in handy in making the business remain active and visible.

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KENYA

Meat, Poultry INVESTMENTS

Leading aquaculture businesses in Africa get backing from international investors

Fish Expo 15+

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MOZAMBIQUE – Chicoa Fish Farm, the largest commercial provider of fish in Mozambique has closed its Series A equity funding round totalling US$1.5 million from Goodwell Investments.

The vertically integrated aquaculture business, is focused on securing its supply chain through primary production of tilapia, runs a breeding program, and develops fish sales and distribution channels in Mozambique, Malawi, South Africa and Zambia.

The firm says it will utilize the new funding to transition to the next stage of growth - processing and distribution of frozen tilapia products. To this end, the company plans to expand its production facilities, install a processing plant and include local small-scale farmers in its model.

The investment will enable it to produce over 5,000 tonnes of tilapia per annum, putting more than US$10m of direct income into the local economy each year, create jobs and generate income for local farmers. “We are delighted that Goodwell has joined us on this really exciting journey to develop fish farming as an industry in Mozambique,” said Gerry McCollum, CEO of Chicoa Fish Farm.

Goodwell’s investment in Chicoa came in close proximity after Kenyan based tilapia producer Victory Farms acquired an undisclosed amount of funding from Dutch family-backed impact investment firm, DOB Equity to scale up its production capacity and expand its market reach.

The farm owns hatchery ponds, deep water cages, a processing plant and cold chain distribution to mass markets in Nairobi and Western Kenya. Its mission is to build a commercial tilapia farm that can feed 2 billion African consumers with affordable, accessible and healthy protein over the next 2 decades.

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The Kenya Meat, Poultry & Fish Expo showcases meat, poultry, fish and seafood products to a local, regional and international audience including: Fresh meat, poultry, fish and seafood • Processed and packaged meat, poultry, fish and seafood products – sausages, hams, Viennas, bacon etc •Frozen and chilled meat, poultry, fish and seafood • Processing, packaging and storage solutions for meat, poultry, fish and seafood industry • Equipment for cutting, slicing, weighing, blending, thawing, cooking meat, poultry, fish and seafood products • Ingredients, chemicals and other solutions for the meat, poultry, fish and seafood industry

DECEMBER 2-4, 2021

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NEWS UPDATES

INVESTMENTS

Nestle to develop first carbon neutral dairy farm, as Costa opens in South Africa

SOUTH AFRICA – Nestlé has launched the Skimmelkrans Net Zero Carbon Emissions Project in South Africa aimed to create the company’s first carbon neutral dairy farm.

Under the project, the food giant has committed that by 2023 the farm will be carbon net zero. This aligns with company’s broader sustainability platform called RE, where Nestle has committed to RETHINK, REDUCE AND REPURPOSE on its journey towards a more sustainable future.

It also builds on Nestle’s redoubled efforts to combat climate change, with the food company recently announcing

plans to halve its emissions by 2030 and achieve net zero and waste free future by 2050.

“The Skimmelkrans project is a positive step in our sustainability journey. The project will scale the quality production of our dairy products therefore enhancing our consumer experience,” stated Saint-Francis Tohlang, Corporate Communications and Public Affairs Director at Nestlé East and Southern Africa Region (ESAR).

Meanwhile, Coca-Cola Beverages South Africa (CCBSA) has cut the ribbon at its first Costa Coffee outlet in Johannesburg, South Africa.

The move follows a successful trial opening of a Costa outlet on the ground floor of CCBSA’s headquarters in March. The new outlet is located is in the flagship store of the Devland cash and carry chain, which has 24 supermarket and wholesale outlets in South Africa.

“We work and win in teams at CCBSA and applaud the team led by Basetsana – Bame Modimogale & Natasha Chetty. A big thank you to the greater team for their contribution to the success of this launch!” CCBSA noted.

INVESTMENTS

Unilever takes part in expansion of US$20m green field tea project in Rwanda

RWANDA – The Government of Rwanda has partnered with Unilever Tea Rwanda and The Wood Foundation Africa (TWFA) to commence the second phase of the Nyaruguru tea project in the Southern province of the country, injecting US$20 million in the initiative.

This comes after the successful completion of the first phase of the project, which broke ground in 2017 and consisted of a 3,400-hectare smallholder catchment, supported by a dedicated farmer services company that operates an 800-hectare commercial plantation feeding the processing factory operated by Unilever Tea Rwanda.

Phase II will see the project expand to have a combined 6,400 hectares for smallholder tea out-growers, two processing factories and the continued support from the

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Services Company of Nyaruguru.

Its aim is to enable farmers to effectively plant to scale and produce quality tea for both domestic and export market, in an area where growing of high-value crops was initially restricted due to the acidic nature of the soils, with thousands of farmers and their families transforming their lives by having a source of income and create thousands of jobs within the community.

“Nyaruguru tea project is expected to positively impact the livelihood of farmers by increasing their income.

Moreover, the project will further contribute to the growth of tea exports, which are expected to generate US$209 million by 2024. This project is the best investment to add value to the acidic soils,” said Gérardine Mukeshimana, Rwanda’s Minister of Agriculture.

KEY NUMBERS

US$209M

PROJECTED INCOME RWANDA EXPECTS TO RECEIVE FROM TEA EXPORTS BY 2024, WITH THE NYARUGURU TEA PROJECT CONTRIBUTING TO THIS GOAL

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KENYA

Beverages& Dr nks PEOPLE

Uganda Breweries makes strategic changes to senior executive team

Expo

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UGANDA – Uganda Breweries Limited, a subsidiary of East African Breweries has announced changes to its senior executive team and made new appointments aimed to streamline its operations and drive more growth.

The beverage company has divided the Legal and Corporate Relations roles, which were previously headed

by Charity Kiyemba Ekudu into Corporate Relations and Legal Director & Company Secretary positions. With the unbundling of the docket, the brewer has appointed Juliana Kagwa as Corporate Relations Director. She was the previously the company’s Marketing & Innovations Director. She will be replaced with Emmy Hashakimana who was the Head of Beer portfolio.

To take up the new Legal Director & Company Secretary position, the company WE HAVE RESET THE EXCO has appointed Agnes TO BE ALIGNED WITH OUR Ssali, joining the GROWTH AMBITIONS. I AM UBL team from GENUINELY EXCITED WITH THE British American NEW TEAM AND INDIVIDUALS Tobacco, where WHO HAVE COME IN she was serving as Marketing, PRRP and - ALVIN MBUGUA, MD, UBL Regulations Counsel for the East African Markets (EAM) Cluster.

The new changes at the beer manufacturing company has also seen Eunice Waweru appointed the new Finance and Strategy Director to replace Doregos Busola who was recently appointed as the group’s head of finance and strategy at East African Breweries Limited.

“We have reset the EXCO to be aligned with our growth ambitions. I am genuinely excited with the new team and individuals who have come in,” said Alvin Mbugua, Uganda Breweries Managing Director.

The new appointments expand UBL’s Exco to eight members – four men and four women, making the brewery one of the companies in Uganda with a fair share of women on their EXCO. FOODBUSINESSAFRICA.COM

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The Kenya Beverages & Drinks Expo showcases packaged and processed soft beverage products including: Still, carbonated and enhanced waters • Fruit juices, cordials, fruit flavoured drinks • Still, carbonated soft drinks • Energy drinks • Sports drinks • Alternative drinks and beverage blends • Plant based nutritional drinks • Brewed drinks • Organic and functional beverages • Processing, packaging, serving and storage solutions for beverage and drink products

DECEMBER 2-4, 2021

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NEWS UPDATES

STRATEGY

INVESTMENT

Nestlé’s pet care subsidiary Purina to invest US$550m in US pet food factory expansion

USA – Purina PetCare, a subsidiary of Swiss food conglomerate Nestlé has announced plans to invest US$550 million to expand its pet food manufacturing facility in Georgia, USA. The expansion, which according to Purina will create up to 130 jobs, comes just one year after the factory’s grand opening in November 2019. Providing the rationale for the expansion, Nestlé said: “As a result of growing demand for Purina’s high-quality and nutritious pet care brands, the facility is expanding to add processing, packaging and warehouse capacity.”

Demand for pet food has been rising in the United States during the past years and was projected to grow at a compound annual growth rate (CAGR) of 4.5% from 2019 to 2025.

This growth has been associated with a rising trend of dog adoption as a companion for families across the United States. The Covid-19 pandemic has further increased pet ownership and care across the World.

With increased dog ownership, Americans have increased their spending on their favourite domestic animals with Grand View Research Inc. projecting the global pet food market size to reach US$113 billion by 2025.

The great potential of the pet food industry has attracted food giants across the globe, and Nestlé through its Purina brand, is leading the way.

Nestlé says the expansion in Hartwell is part of a broader growth plan for Purina in the United States, which also includes new factories recently announced in Williamsburg Township in Ohio and Eden in North Carolina.

MILESTONE

Amstel celebrates 150-year anniversary with expansion to China CHINA – Popular Dutch beer, Amstel is celebrating 150 years of existence this year with a mile stone expansion into the world’s largest beer market, China.

The premium Pilsner type beer that is produced by Heineken is currently enjoyed in 116 countries around the globe and will be available in select provinces across Southern and Eastern China before the end of the year.

Amstel is currently a leading global top 10 beer brand, with Heineken expecting China to become one of the brand’s top markets globally in the next three years.

The move to China would be particularly advantageous to the 28

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Dutch brewer given that unlike in Europe where beer consumption has been reducing, Chinese citizens consume more and more beer every year, according to Euromonitor.

Malgorzata Lubelska, Senior Director International Brands & Craft, said this entry into China marks a significant step in Amstel’s history.

She further noted that together with China Resources Beer, Heineken’s strategic partner in China, the company was positioning Amstel as a leading beer within the accessible premium category, which represents the largest segment of China’s premium beer market.

Unilever completes unification of corporate structure under new UK holding company UK – Leading consumer goods company with British and Dutch origins Unilever has completed the unification of its group legal structure, and will now operate under a single parent company, Unilever PLC. This will be the first time the company will be operating under a single entity since its formation in 1930, when it has operated as two separated listed companies: a Dutch NV (nameless venture) and a UK PLC (Public Limited Company).

However, in June 2020 after years of planning, Unilever said it would unify its structure to a UK listed company, in order to create a simpler company with greater strategic flexibility.

Unilever Chairman, Nils Andersen had then said that the unification will give the company “greater flexibility for strategic portfolio change, remove complexity and further improve governance.”

Following the merger, Unilever will now trade with one market capitalisation, one class of shares and one global pool of liquidity. However, it will maintain the group’s listings on the Amsterdam, London and New York stock exchanges, where Unilever PLC shares will continue to trade.

Even with the merger, the headquarters of Unilever’s foods and refreshment division will continue to be based in Rotterdam, along with the €85 million Food Innovation centre in Wageningen. Meanwhile, the firm’s home care and beauty & personal care divisions will continue to be headquartered in the UK.

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KENYA

REGULATORY

Singapore becomes the first country in the world to approve lab grown meat

COFFEE & TEA EXPO 15+

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SINGAPORE – Singapore has set a new record by becoming the first country in the World to allow the sale of lab grown meat to consumers.

The approval was given to Eat Just Inc., a San Francisco based biotechnology company that develops and markets alternatives to meat proteins. With the approval given, Eat Just Inc. now has the go ahead to sell its laboratorycreated chicken to Singaporean consumers.

The product, created from animal cells without the slaughter of any chickens, will debut in Singapore under the GOOD Meat brand as a chicken bite with breading and seasoning in a single restaurant. “We want Singapore to be the focus of our manufacturing globally,” Chief Executive Officer Josh Tetrick said in an interview. “They’re just really forward thinking in building an enabling environment for this kind of work.”

While cultured THE PRODUCT, CREATED FROM meat is real meat, ANIMAL CELLS WITHOUT and not a plantTHE SLAUGHTER OF ANY based substitute, it CHICKENS, WILL DEBUT IN can be marketed as SINGAPORE UNDER THE more humane and GOOD MEAT BRAND AS A environmentally CHICKEN BITE sustainable. This will probably give it competitive advantage over other novel animal protein alternatives, as it is meat in all sense and purpose, just one that is created in a unconventional way.

The new chicken product will be priced similar to premium chicken for the first six months, Tetrick said, adding that the cost will come down over time as the company builds global scale.

“Eventually we want to get to the place where it is significantly more cost effective than conventional production.” Having approved cultured meat, analysts believe that cultured burgers may be next. Eat Just is planning to submit its application for lab-created beef in Singapore during the first half of 2021.

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The Kenya Coffee & Tea Expo showcases packaged and processed coffee, tea, cocoa and other related hot beverages from Kenya, Africa and the World to a local, regional and international audience, including: Packaged coffee, tea, cocoa and other hot beverage products • Ready-to-drink coffee, tea, cocoa and other hot beverages • Wellness and other plant based hot and cold drinks • Medicinal and functional drinks • Equipment and solutions for preparing, cooking and serving coffee, tea, cocoa and other hot beverages • Ingredients for preparing coffee,tea and other hot beverage products • Coffee and tea houses.

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STRATEGY

KFC Canada to replace plastic cutlery with new compostable cutlery

CANADA – Fast-food restaurant chain, KFC had announced that select restaurants in Canada plans to test a new fibre-based ‘spork’ in December 2020. This is in line with an effort to test a sustainability plan that will see the elimination of millions of plastics from its production chain.

The fast-food chain says that beyond the testing period, it plans to permanently introduce the compostable cutlery across the entire Canadian chain, eliminating up to 40 million pieces of plastic waste from its operations.

According to KFC, the new ‘spork’ combines fork and spoon into one and is made from bamboo, corn and sugarcane. The fast-food chain further notes that the spork is compostable at room temperature – breaking down into biomass, carbon dioxide and water, with the entire decomposition process, according to KFC, taking about 18 months while requiring no additional treatment and leaves no toxic by-products.

Sustainability is not new to KFC

Canada. Earlier, the franchise announced that by the end of 2021 it will remove 12 million plastic poutine containers from its operations by switching to a bamboo packaging solution.

“We are always striving to reduce our environmental footprint. After achieving several major sustainability milestones recently we’ve started pushing further and looking at all aspects of the customer experience – right down to the cutlery in our restaurants,” said Armando Carrillo, Food Innovation Manager, KFC Canada. “Our new cutlery takes very little from the earth to make and doesn’t harm it when we’re done with it.”

INVESTMENTS

Nestle invests US$3.5bn in fight against climate change, targets zero carbon emissions by 2050 regenerative agriculture across the company’s supply chain.

SWIZTERLAND – Swiss multinational food and drink processing conglomerate Nestlé has announced plans to invest a total of CHF 3.2 billion (US$3.58 billion) over the next five years to step up its fight against climate change.

The US$3.5 billion is part of Nestlé’s redoubled efforts to combat climate change, which include plans to halve its emissions by 2030 and achieve net zero by 2050. According to Nestlé, the investment includes CHF 1.2 billion (about US$1.34 billion), which will be used to spark 30

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THE COMPANY’S PRIMARY SUPPLY CHAINS OF KEY COMMODITIES, LIKE PALM OIL AND SOY, WILL BE DEFORESTATION-FREE BY 2022 WHILE ITS 800 SITES ARE EXPECTED TO TRANSITION TO 100% RENEWABLE ELECTRICITY IN THE NEXT 5 YEARS The company says it is already working with over 500,000 farmers and 150,000 suppliers to support them in implementing regenerative agriculture practices that result in improved soil health and maintain and restore diverse ecosystems. “With nearly two-thirds of our emissions coming from agriculture, it is clear that regenerative agriculture and reforestation are the focal points of our path to net zero,” Magdi Batato, Executive Vice President and Head of

Operations, said.

Nestlé expects to source over 14 million tonnes of its ingredients through regenerative agriculture by 2030, and is also planning to plant 20 million trees every year for the next 10 years in the areas where it sources ingredients.

The company’s primary supply chains of key commodities, like palm oil and soy, will be deforestationfree by 2022 while its 800 sites are expected to transition to 100% renewable electricity in the next 5 years. The company is also switching its global fleet of vehicles to lower emission options and will reduce and offset business travel by 2022.

Within its product portfolio, Nestlé is continuously expanding its offering of plant-based food and beverages and is reformulating products to make them more environmentally friendly.

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KENYA

Beer, Wine & Spirits

INVESTMENTS

Nigeria Breweries invests US$13.3m in ultramodern non-alcoholic beverage line NIGERIA - Nigerian Breweries Plc, has opened its newly built N5.1 billion (US$13.3m) ultra-modern automated PET line at the Ijebu Ode brewery, Ogun State.

According to the company, the facility is fully automated to meet world-class safety and quality requirements and has the capacity to produce 24,000 bottles of drinks per hour.

It is also expected to become a central supply and a critical enabler to the company’s plans to export its drinks outside its home base to West Africa and beyond.

The line will increase the production capacity of Maltina and other variants, satisfying the refreshment needs of millions of consumers in the region.

The commissioning was done by the Executive Governor of Ogun State, Prince Dapo Abiodun, in the company of other distinguished guests such as the Honourable Minister for Trade and Investment, Otunba Niyi Adebayo and the Awujale of Ijebuland, Oba Sikiru Adetona.

“We are the state with the largest concentration of industries in diverse sectors of the economy. Indeed, today’s event is another testimonial to the successes of our administration’s business policies and programmes to improve on our ease of doing business ranking to ensure that new investments are attracted into our dear state just as existing businesses are thriving,” said Prince Dapo Abiodun.

The expansion by the beverage maker is geared towards boosting the gross domestic product of the country and create more jobs.

Majority owned by Heineken, the company established its first solar roof system at its Ibadan brewery last year with the capacity of 650 kW. The landmark project was the first of its kind in Nigeria and was installed by CrossBoundary Energy who operates the rooftop facility on behalf of Nigerian Breweries as part of a 15-year solar services agreement.

Under the agreement, Nigerian Breweries will only pay for solar power produced, receiving a single monthly bill that incorporates all maintenance, monitoring, insurance and financing costs.

The solar plant supplies 1 GWh annually to the Ibadan brewery at a significant discount to its current cost of power while reducing the site’s CO2 emissions by more than 10,000 tonnes over the lifespan of the plant.

The Dutch beer maker has also been recently ramping up investment in the company with the acquisition of 3.3 million additional shares at around N138 million (about US$358,000).

Expo

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The Kenya Beer, Wine & Spirits Expo showcases the most outstanding and innovative alcoholic beverage products including: Regular Beer • Craft beer, wines and spirits • Wines • Spirits • Ciders and hard seltzers • Non-alcoholic and low alcohol beer, wines and spirits • Cocktails and blends and alternative beverages.

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M&A

Healthy snack makers Kind North America and Nature’s Bakery joins Mars Inc.

US – The healthy snack segment of US confectionary giant Mars Inc. has significantly expanded this year following the acquisition of Kind in a deal estimated to be worth US$5 billion.

The acquisition comes three years after Mars took a minority stake in the healthy snacking company that is reported to make about US$1.5 billion in sales annually.

Under the terms of the acquisition, Kind will function as a distinct and separate business under the Mars umbrella.

Its founder Daniel Lubetzky will continue to work with the business he started and retain a financial stake in Kind, most of which he had previously donated to charity.

A few weeks after its acquisition, Kind also made an acquisition of its own, in the form of better-for-you snack manufacturer Nature’s bakery. Founded in 2011, Nature’s Bakery has a portfolio, which includes fig bars, brownie bars and other soft-baked options.

Kind said in a statement that the acquisition aligns with the company’s aim to create a ‘foremost health and wellness platform.’ The company has several big plans all of which will now become much easier as an arm of Mars, if the recent acquisition is anything to go by.

By 2025, the company commits to adding more than 2 billion servings of nutrient-dense food to diets and the previously announced goal of exclusively sourcing all almonds from bee-friendly farms.

M&A

Burger King plans massive expansion in India, to open 700 restaurants before 2026 Burger King India Ltd has announced plans to open around 700 restaurants, including company outlets and sub franchise entities, by 31 December, 2026.

If successful, the expansion will be a great leap for a company which currently operates 268 stores in the country. A huge chunk of the funds needed to support the fast-food restaurant chain’s ambitious expansion plans will be sourced from Burger King’s recently concluded IPO. The IPO which concluded in early December 2020 saw the the chain raise over US$110 million. According to Mint,

the IPO was oversubscribed by more than 157 times with the portion reserved for retail investors being subscribed 68.79 times. Being a highly sought-after stock, have have since sky-rocketed to the delight of shareholders.

Commenting on the company’s exemplary performance at India’s BSE Anand Rathi Research noted that while the COVID-19 crisis has impacted short term growth, they were confident the Burger King remains well placed for long term growth given its strong brand position, diverse food offerings, and well-established supply chain.

INVESTMENTS

Germany’s Haribo to build one of the largest confectionery plants in the US

USA – German confectionary manufacturer Haribo has commenced construction of its first ever production facility in the United States.

Based in Bonn, Germany Haribo GmbH & Co. KG, is a market leader for fruit gum and licorice products in Europe and has market share of about 60% in Germany.

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project, which it says is the largest in its 100-year history and one of the biggest in the US confectionary industry.

The firm makes over 200 other chewy sweets, including fruit gum products, licorice, marshmallow candies, chewing gum, and so-called Kaubonbons–chewy candy with the texture of gum that dissolves in the mouth.

The new manufacturing site will be located in Pleasant Prairie, Wisconsin, on a 136.8-acre facility and is expected to enhance the company’s speed and production efficiency.

“Our customers and consumers in the US expect us to deliver the Haribo products they love quickly and reliably.

With the new plant, we are living up to this responsibility,” Hans Guido Riegel – Managing Partner of the Haribo Group said. Upon commissioning the company says that the new factory will create 385 jobs and a further 4200 indirect jobs.

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NEW PRODUCTS

Lidl introduces new sustainably sourced chocolate bar in US stores

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USA – Multinational grocery retailer Lidl has partnered with Fairtrade to introduce a new private label chocolate bar in US stores that contributes to a living income for cocoa farmers.

Available in milk and dark chocolate variants, Lidl US’s new Way To Go! bar uses 100% traceable and sustainable Fairtrade cocoa sourced from a cooperative in Ghana.

According to Fairtrade America, the grocer’s new offering guarantees that farmers receive at least the Fairtrade Minimum Price for cocoa and the Fairtrade Premium.

In addition, Lidl’s partnership with Fairtrade will see the retailer pay a second premium for every metric ton of cocoa purchased for the Way To Go! Range, where farmers can use the premium to diversify into new categories and develop new farming IF MORE RETAILERS FOLLOWED techniques.

The initiative IN LIDL’S FOOTSTEPS BY comes at a time FAIRTRADE CERTIFYING THEIR when a battle PRIVATE LABEL CHOCOLATE between Hershey AS WELL AS BY TAKING THE EXTRA STEP TOWARDS PAYING and West African COCOA PRODUCERS A LIVING cocoa producing countries has INCOME, IT WOULD HELP with ERADICATE SYSTEMIC POVERTY escalated, Ghana and Ivory IN THE COCOA INDUSTRY Coast cancelling all cocoa - PEG WILLINGHAM, FAIRTRADE sustainability AMERICA schemes that the U.S.-based chocolate maker runs in their countries.

Commenting on the development, Peg Willingham, executive director, Fairtrade America said: “If more retailers followed in Lidl’s footsteps by Fairtrade certifying their private label chocolate as well as by taking the extra step towards paying cocoa producers a living income, it would help eradicate systemic poverty in the cocoa industry, which contributes to child labour practices, deforestation and more.”

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The Kenya Hotels, Restaurants & Catering Expo showcases the latest solutions and technologies to the HORECA industry from Kenya, Africa and the World to a local, regional and international audience, including: Cookery and Cutlery Solutions • Ingredients and Chemicals • Hygiene Solutions & Services • Kitchen, Rooms & Bathroom Solutions • Cleaning & Laundry Solutions • Hospitality Security, ICT & Technology Solutions • Hospitality Franchise Solutions

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STRATEGY

Diageo targets a low carbon future in new 10-year sustainability plan

UK – British multinational beverage alcohol company Diageo has launched a new 10-year, 25-action sustainability action plan designed to steer the company into a lowcarbon carbon future.

In the plan, Diageo says it will focus its action over the next 10 years in three core areas: promoting positive drinking; championing inclusion and diversity; and pioneering grain-to-glass sustainability.

To reduce its carbon impact on the planet, Diageo says it hopes to harness 100% renewable energy across direct operations and a further 50% reduction in indirect carbon emissions through working with suppliers.

“I’m proud that we have already halved our own carbon footprint and that we are going to push ourselves further

by becoming carbon neutral DIAGEO SAYS IT WILL by 2030,” Ewan ENSURE THAT EVERY DRINK Andrew – Chief IT PRODUCES WILL TAKE 30% S u s t a i n a b i l i t y LESS WATER TO MAKE THAN IT Officer and DOES TODAY. THE COMPANY President, Diageo ALSO PLANS TO USE 100% supply and RECYCLED CONTENT IN procurement, said. PLASTIC PACKAGING BY 2030 As the first step in its net zero ambition, Diageo’s Scottish distilleries of Oban and Royal Lochnagar will both become carbon neutral by the end of 2020, reveals the beer and spirits major. The maker of popular brands such as Johnnie Walker, Smirnoff, and Guinness and Diageo also said it will aim to achieve net zero carbon emissions in India by 2025.

By 2030 Diageo says it will ensure that every drink it produces will take 30% less water to make than it does today. The company also plans to use 100% recycled content in plastic packaging by 2030 while at the same time ensuring that 100% of its packaging are widely recyclable.

Within the 10-year time frame, the company hopes to deliver over 150 community water projects across the world, including providing access to clean water, sanitation and hygiene.

M&A

PE firms acquire majority stake in Indonesia’s largest dairy PT Green Fields INDONESIA – American investment company TPG and Singaporean private equity firm Northstar Group have jointly acquired an 80% in Indonesia’s largest dairy business, PT Green Fields.

The two private equity buy out firms acquired the stake from Japfa Limited, a Singapore-based pan-Asian, industrial agri-food company, in a deal estimated to be worth US$236 million.

Japfa established the Indonesian dairy business in 1997, growing it into one of the largest dairy farms in Southeast Asia. The business is vertically integrated with more than 16,000 Holstein and Hersey Cattle producing one of the highest volumes of any farm in Indonesia. The milk is then processed by the company into a range of dairy products including fresh milk, yogurts, UHT milk, and premium cheese.

As a leading dairy farm in Indonesia, PT Greenfield exports products to southeast Asian countries including Singapore, Malaysia, Brunei, and Myanmar.

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Japfa will retain a 20% stake in the business and has committed to supporting the new investors in managing the business. It further noted that with the sale, the Indonesian dairy business will now be in a better position to access both funding and senior management expertiseall which are necessary to further grow the business.

Commenting in the sale, Japfa CEO, Tan Yong Nang said: “This group’s dairy business has grown considerably in recent years both in China and Southeast Asia and there is potential for future growth.”

On his part, David Tan, Managing Director of TPG Capital Asia said: “We are very excited to enter the partnership with Japfa and North Starr. We look forward to helping the business further expand its leading position in the dairy sector and deliver accelerated growth amid the rising consumption in Southeast Asia.”

In July, Japfa completed the sale of a 25% stake in its China dairy farming business to Japan’s Meiji Co. Ltd for $254.4 million.

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SWEETS,Snacks

AWARDS

Kenya’s Packaging Industries Ltd bags global packaging innovation award

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KENYA – Packaging Industries Limited (PIL), one of Africa’s leading manufacturer of flexible packaging solutions has been named the Gold category winner of the 2020 Packaging Innovation Awards by Dow. The awards recognize breakthrough packaging achievements in design, technology, sustainability and user experience in categories ranging from food and beverage to personal care with a strong focus on circular economy.

PIL, a Kenyan based company made to the list this year and emerged a winner courtesy of its Mama Silage Bag. The company describes the bag as a breakthrough in silage storage for small-scale dairy farmers in the East African nation aimed to minimize loss.

The packaging, which was developed in partnership with Policy and Market Options and SNV Netherlands Development Organization, is designed to minimize material use and maximize functionality through high performance polymers that offer excellent puncture resistance and high elasticity for manual compaction and extreme handling.

Mama Silage minimizes the 40% of fodder waste the farmers have been experiencing, indicated PIL. It also reduces infestation, eliminate the growth of moulds and extend the fodder’s shelf life for up to one year, while preserving the nutritional quality of the group. In addition, it provides farmers with a reusable alternative to the otherwise single-use storage method.

With the use of the innovative solution, farmers have experienced improved quality of fodder, reduced waste, increased milk production which have in turn increased their income.

Commenting on the award PIL project manager, Vaishali Malde said, “I am so proud and honored by this Gold award achieved with a small team of brilliant and dedicated people. Despite limited access to resources like other developed countries, we have innovated a sustainable, reusable, and fully recyclable solution for small-scale dairy farmers, improving their livelihoods.

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The Kenya Sweets, Snacks & Chocolate Expo showcases the most delicious and unique sweets, confectionery, snacks and chocolate products from Kenya, Africa and the World to a local, regional and international audience.

Sweets, Candy and other Confectionery products• Extruded Snacks and Fruit based snacks and more • Snack bars and more • Pastries, wafers, sponge cakes etc • Chocolate and chocolate products • Snacky seeds, nuts, grains and legumes • Baked snacks and sandwiches • Liquid snacks

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NEWS UPDATES

COVID-19 accelerates growth of food and beverage E-commerce market

A

s the world grapples with the COVID-19 pandemic and its devastating impact on people’s health, the economy and social disruptions, the food and beverage industry has undergone a tremendous change in terms of where and how people source their supplies.

In response to the WHO protocol on social and physical distancing to curb the spread of the coronavirus, the number of people deemed safe to gather in a single place dwindled, with some countries initiating lockdowns at some point.

This in turn led to most consumers turning to e-commerce platforms as their channel of choice for purchase of food, beverages and other essential groceries, as opposed to physically visiting retail outlets, restaurants, grocery shops etc.

According to data from Google, searches for "food delivery services" have grown globally by more than 300% since the outbreak. A report by Kantar Group concurs with this finding, noting that as by the end of April 2020, the e-commerce share of the food market was cumulatively 12.4% across China, France, Spain and the United Kingdom, up from 8.8% at the end of 2019.

In an exclusive Nielsen study of 10 Middle East and African markets, consumers indicated they were doing more shopping online than prior to the pandemic outbreak, rising by 44% in Saudi Arabia, 41% in United Arab Emirates (UAE), 34% in Nigeria, 33% in Kenya, 31% in Qatar and Bahrain, 28% in Oman, 29% in South Africa and 27% in Egypt and Kuwait.

“This pandemic crisis has shown the world that online

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food delivery is not just a commodity, but a necessity.

The food business adapted quickly to the new normal, by availing contactless and cashless deliveries,” said Shreenal Ruparelia Chief Commercial Officer, Jumia Food – a leading the food delivery platform in Africa.

MORE THAN JUST COVID The extraordinary events caused by the COVID-19 pandemic have clearly had a profound impact on the rise of food and beverage e-commerce. However, other growth factors, which were in play prior to the pandemic, are also expected to contribute to the overall growth of the sector in the years to come.

An increase in smartphone users has always given a boost to food and beverage e-commerce sales, as they are mobile has become the primary online shopping tool.

As per an article published by k-commerce, the world smartphone users reached 3.2 billion in 2019 and are expected to grow by 600 million, hitting 3.8 billion by end of 2021.

In Africa, e-commerce is still at its infancy by global standards, standing at less than 2% vs. north of 20% in China or 12% in the USA. But it has promising potential, as Internet penetration in the region is estimated at 39.3% with 527 million Internet users, a growth of +12% since 2000, indicates Jumia.

The large population of tech savvies are and will continue being millennial and urbanites with the highest spending power and are on the lookout for convenient, personalized, time saving, cost-efficient ways to consume, and consume more.

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KENYA

Fresh Produce Majority of these consumers prefer to buy their food online via web or applications, as it allows them to save time, indulge in a wide variety of food products, discover new cuisines and outlets, benefit from low prices courtesy of bulk purchase, deals and promotions and increasing online launching of products.

Overall, the global food and beverage e-commerce market is expected to grow from US$14.9 billion in 2019 to about US$22.4 billion in 2020. The market is foreseen to stabilize and reach US$34.6 billion at a CAGR of 23.4% through 2023, indicates Research and Markets in a report.

The major global players in the market are Amazon Fresh, Zomato, Bigbasket, Swiggy, MilkBasket, Walmart, Flipkart, Uber Eats, Walmart, among many others.

In Africa, the market is currently dominated by Jumia foods, operating in 9 countries. Other local players include Zulzi, Expand Cart, Yamee, Ordera, GoFood, Deliver Addis, who operate alongside multinationals such as Uber Eats and Glovo.

They are all eyeing the market share of the region’s food and beverage industry, which is worth US$313 billion and is projected to reach US$1 trillion by 2030. According to Jumia’s Africa Food Index 2020, the growth will be significantly propelled by the rise of online food sales.

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SOUTH AFRICAN ALCOHOL PRODUCERS SAB, HEINEKEN SA, DIAGEO AND PERNOD RICARD LAUNCHED ONLINE ORDERING SYSTEMS AS PART OF THE SAFETY MEASURES DURING THE COVID-19 LOCKDOWN IN THE COUNTRY

COLLABORATIONS HEIGHTEN Some of the food companies in the world process their own food orders and undertake the deliveries. While others partner with established logistic companies leveraging on their network, technology and expertise for last mile deliveries. The latter is highly used by most players, including those who have established logistics departments, as demand for delivery services at times outpaces their logistics capacity. Being a symbiotic relationship, the food delivery businesses also highly benefit from the retailers and food outlets, which fashion them with supplies that trade on their platforms.

A report from Capgemini in 2019 shows that retailers' net profit could fall by up to 26% in the next three years, if they don't radically improve last-mile solutions, despite increased online grocery sales. The COVID-19 pandemic has accelerated this reality, making market players shift focus to expansion, partnerships and acquisition strategies in a bid to make the delivery process efficient and effective.

South Africa’s supermarket chain Pick n Pay acquired on-demand online delivery app Bottles to strengthen its e-commerce operations earlier in October 2020. In the

The Kenya Fresh Produce & Grocery Expo showcases the most innovative fresh produce, meat and savoury and condiments products inluding: Fresh and packaged fruits and vegetables • Fresh and packaged herbs and spices • Ready meals and other hot meals • Savoury and condiment products including jams, marmalades, sauces, ketchups, chutneys, peanut butter etc • Retailers, Distributors & Vendors of Fresh Produce & Grocery products.

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TRENDS | E-COMMERCE & FOOD DELIVERY

KEY NUMBERS

26% ANTICIPATED DROP IN RETAILERS' NET PROFIT IF THEY DO NOT RADICALLY IMPROVE LAST MILE DELIVERY SOLUTIONS, EVEN AS ONLINE SALES SURGE

same region, UberEats partnered with Game Stores, a subsidiary of South Africa’s retail giant Massmart Holdings, to deliver food and essential products to customers during the nation-wide lockdown. This came after Checkers, a supermarket chain owned by Shoprite, entered an exclusive partnership with Mr D Food for delivery of alcohol to customers’ homes.

Globally, Alibaba, an e-commerce giant has recently invested approximately US$3.6 billion in the acquisition of a controlling stake in Chinese largest hypermarket operator Sun Art Retail Group. The acquisition comes as Alibaba seeks to strengthen its online grocery delivery capabilities IN AFRICA, E-COMMERCE IS STILL AT ITS INFANCY BY GLOBAL STANDARDS, STANDING AT LESS THAN 2% VS. NORTH OF 20% IN CHINA OR 12% IN THE USA. BUT IT HAS PROMISING POTENTIAL. in the wake of Covid-19, as well as its offline retail offering in an effort to stave off competition in the high-growth market from e-commerce rivals such as JD.com, Meituan and Pinduoduo.

COMPANIES PULL TOGETHER Mergers and partnerships between food delivery companies have also come to play. In January 2020, two European food delivery giants Takeaway and Just Eat came together, with Takeaway buying Just Eat in an all-share deal that gave Takeaway a greater presence in Canada, the United Kingdom, France, and Italy. The joint company,

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now called Just Eat Takeaway.com later acquired leading US food delivery company Grubhub – becoming the biggest food delivery marketplace outside of China.

During the peak of the COVID-19 pandemic, Uber Technologies, the parent company of Uber Eats reached a deal to acquire food delivery rival Postmates in an allstock purchase worth US$2.65 billion. This transaction brought together Uber’s global Rides and Eats platform with Postmates’ distinctive delivery business in the US. One of the latest happenings is the recent initial public offer listing at the New York Stock Exchange by US food delivery company DoorDash, with the company hitting a valuation of US$60 billion on the first day of trading - a whooping figure for the company that has whizzed past established players during the Covid-19 pandemic to take a 50% share of the market in a relatively short time. Analysts contend that most food delivery companies are doubtful of making significant headways towards profitability, and that they can burn through cash for only so long - leading to significant consolidation of the sector across the World.

Others are seeking more strategic ways to thrive. In Kenya, e-commerce platform, Jumia Kenya and Kenyanbased technology food distribution platform, Twiga Foods have signed a partnership agreement to enable shoppers on the platform to buy fresh produce as well as processed foods distributed by the farm produce aggregator.

MEGA BRANDS VENTURE IN THE GAME Growing demand for online food and beverage shopping is also encouraging companies to capitalize on the opportunity by setting up direct to consumer e-commerce operations, with some making the move in response to low sales registered following COVID-19 disruptions, such as closure of trading outlets.

Beverage giant Coca-Cola launched a home delivery service in Kenya dubbed ‘DialACoke’, which avails a wide range of its products including sodas, water, juices and energy drinks to its customers in a convenient, efficient and safe way.

As South Africa eased into Level 3 lock-down and ban of alcohol sales was lifted, liquor stores witnessed a surge in numbers of customers in long queues, which posed a challenge on observation of physical distancing stipulated FOODBUSINESSAFRICA.COM

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SUPPLY CHAIN

LOGISTICS & E-COMMERCE

to aid in combating the spread of the corona-virus. In this regard, alcohol producers launched online ordering systems as part of the safety measures. Heineken SA, Diageo and Pernod Ricard in partnership with Touchsides launched the Hola Club Click & Collect platform while South African Breweries (SAB) introduced its USSD cell phone-based ordering platform called Firsti.

In neighbouring Zambia, Zambian Breweries Plc, a subsidiary of AB InBev, partnered with Tigmoo and AfriDelivery to facilitate delivery of its products to the doorsteps of customers. Though a lucrative opportunity to grow its market, the brewery admits it is at infancy and has not yet gotten great volumes through the distribution line but believes it will soon grow to greater heights with time.

“It’s not something that we have been doing a lot in the past; we just started. Together with our partners, we’re trying to encourage people that if you don’t want to go out, but you still want to have our products at home, you can place your order online,” said Zambian Breweries Country Director Jose Moran.

Globally, PepsiCo sidestepped retailers and started selling many of its products online via its PantryShop as Kraft Heinz launched Heinz to Home. Swiss multinational food and drink processing conglomerate Nestlé recently acquired Freshly, a provider of fresh-prepared meal delivery services in the US. The investment is forecasted to post sales of US$430 million in 2020, shipping more than 1 million meals per week.

Country Delight, a fast-rising dairy tech start-up in India has also revealed its plan of venturing into grocery delivery following a successful series C funding round where it was able to raise US$25 million. The company offers online delivery of fresh, natural cow and buffalo milk and other dairy products and with the new funding acquired, it seeks to expand its offering to food essentials such as fruits and vegetables, cold-pressed edible oils, wheat, batters, pulses, spices, pickles, and jams.

GAME CHANGING BENEFITS Done properly, direct to consumer platform increases brand loyalty and sales. In addition, it provides consumer data insights, which enables the companies to make informed decisions. “E-commerce is shaping up to be the next great revolution in the food and beverage industry,” stated Indra Nooyi, PepsiCo’s former CEO. You’d probably think the growth triggered by COVID-19 would taper off as the pandemic subsides and the sales would settle down to their pre-pandemic levels, but historical trends suggest otherwise. The good thing about e-commerce sales is that once they go up, they never quite fall back to the previous levels. “Consumers are embracing e-commerce and eating at home like never before. It’s an evolution brought on by the pandemic but taking hold for the long term,” said Steve Presley – CEO, Nestlé USA. FBA

EXPO

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PROD UCTS & SOLU TIONS FROM AFRIC A & BEY OND

The Kenya Supply Chain, Logistics & E-Commerce Expo showcases the latest technologies in the supply chain, logistics, storage and e-commerce for food and agriculture products including: Motor vehicle, trucking and other mobility solutions • Motor vehicle and asset tracking services • Traceability, Security & Surveillance Systems • Storage and warehousing solutions and services • Cold chain, refrigeration and other services • Information and communications technology • HR, Sales, Warehousing, Financial, Marketing & Accounting Software and Services • Financial Management & Risk Management Services • Distribution, logistics and last mile delivery systems and services • Construction & Facility Management Services.

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Company Name: Malbros t/a Mjengo Ltd Founding Year: 1991 Key Contact: Raj Malde – Founder & MD Main Products: Packaged Rice; Biscuits & Cookies; Spaghetti & Pasta; Condiments; Snacks Main Brands: Daawat, Nuvita, Rico, Snak-It Website: www.mjengo. com

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FOODBUSINESSAFRICA.COM

New Plants, New Products As Mjengo Ltd Eyes New Opportunities

Malbros, trading as Mjengo Limited, is a Kenyan diversified food processor with a focus on the grains, biscuits and snack products. In this feature, we discuss with the company’s Founder & Managing Director, Raj Malde on the past, present and future of the firm as it enters a new phase of growth, innovation and diversification.

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MY FACTORY • MY STORY | MJENGO LTD

T

he food industry in Kenya and East African region has grown massively and is increasingly becoming sophisticated and competitive. Over the last 20 years, it has attracted a dozen of mostly new local players whose aim is to meet the ever evolving consumer demands who are conscious on price, nutritional value and food quality.

One company that has been a part of this transformation in Kenya through its leadership and focus on delivering quality packaged food products is none other than Mjengo Limited.

From its early days as a hardware shop in 1991, to becoming the leading distributor of a number of fast moving consumer goods, the company ventured into food processing in 2001, debuting its now well-known Daawat rice brand.

From its humble start in the industrial town of Thika, the company has gone on to introduce a number of new products and packaging concepts that have endeared it to millions of consumers in Kenya, Africa and beyond.

And now, according to Raj Malde, the company’s Founder & Managing Director, Mjengo is on a new reinvigorated path of innovation as it gears for its next growth phase. This stage is anchored on technological upgrading of machines, investment in critical man power and diversification of its product range in addition to introducing new brands into the market.

DISTRIBUTION AS AN ANCHOR TO STARTING Mjengo’s range of products, brands and reputation have come a long way from the days the company started off as a hardware business, before transitioning into food distribution and later going into packaging and manufacturing. This was after the family coffee export business went under in 1990.

Having grown up in a business driven family, Raj, the soft-spoken unassuming leader, notes that the experience of the failed business taught him a critical lesson on not taking things for granted. “As human beings, we have a tendency of taking things for granted; this is the worst thing you can do.

We believe that we have everything but that is hardly the case. What we have today can be lost tomorrow,” he warns.

While trading in distribution of rice, Raj

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notes that the company realized its margins were thinning. Therefore, in the early 2000, the firm opted to pursue processing and packaging of its own brand of rice.

At the time, the only branded rice in the market was locally produced from the rice paddies of Mwea Irrigation Scheme in Eastern Province of Kenya. It was dubbed Mwea Pishori and was packaged in black khaki bags, with black writings on the package. “We were one of the first companies to pack our rice in BOPP plastic packaging bag, which was innovative in terms of where we started and the outlook of the rice industry was at that time. For some of those who had started packing in plastics, it was the ordinary plastic, but ours was branded which was something new in the industry,” explains Raj. Through this innovative journey, Mjengo’s now famous Daawat rice brand was born.

The product took the market by storm as consumers who had been used to nonbranded rice got the opportunity to savor branded, well-packaged and quality rice for the first time.

Raj states that the company’s experience in distribution and trading business came in handy when it ventured into processing. “Our knowledge in distribution made it easier to understand customers, wholesalers and retailers’ behaviors. Therefore it has become easier to change or adapt new ways based on the feedback that we were receiving from them.”

Following the success registered from the packaged rice business, the company sought new opportunities for growth that could fit into its well-developed distribution chain. “During one of my business trips to India, about 10 years ago, I visited a biscuit manufacturing company and discovered that most of their

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He asserts that Africa as a continent has the potential to manufacture its own high quality products.

We saw there was an opportunity as the local biscuits makers targeted more of the mass market, while lacking strong focus on product quality

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production was for the African market. That got me thinking why a company in Asia would be exporting to Africa yet the continent was capable of producing its own biscuits,” reminisces Raj. Upon his return, the Director says Mjengo explored opportunities that existed in the biscuit category while analyzing the available brands in the markets. “We saw there was an opportunity as the local biscuits makers targeted more of the mass market, while lacking strong focus on product quality.

While we saw that as big entry point, we were cognizant of the fact that it would require a significant investment to pull it off.”

The company went on to establish a production plant and set off producing the Nuvita brand biscuits. The investment showed tremendous potential for growth, which saw the company expand production output three fold within four years.

Looking back, Raj says that the successful launch of Dawaat rice and later, the success of its Nuvita biscuits line, gave the business the confidence to seek new opportunities, diversify and venture into new areas. “We realized that we were able to do things right after developing a rice brand and establishing Nuvita biscuits. The positive market reception and appreciation was a huge vote of confidence that gave us the impetus we needed to venture into the international market,” says Raj. He adds that there is need to increase investments in local economies to reduce Africa’s reliance on imported food products.

NEW INVESTMENTS FOR THE FUTURE As the company gears for its next phase of growth and transformation in order to maximize on the emerging opportunities that have become apparent, Raj is convinced that Mjengo is on the right track with the pace and direction of its investments. “We see enormous opportunities. In the last two years, we have invested about US$6.5 million in two new projects. This include a new plant that produces high quality sponge cakes and another for processing and packaging wafers.

The equipment is first of its kind in Eastern Africa.

Supplied by some of the World’s leading equipment makers, Raj exudes confidence while excitedly noting that the new plants places the company at a new level of productivity, efficiency and quality. This, he says will enable it to churn products that satisfy the dynamic consumer expectations.

Apart from investing in new plants, Mjengo has also diversified its range of products to include savoury snacks, biscuit snacks and breakfast cereals – all produced at the Thika factory.

The Director points out that the new products have enabled the company to enter the convenient snack food business, which though competitive, is growing at a fast rate.

“Snack is a very competitive category and we are determined to excel in this market despite some of the technological challenges that we have had to go through.”

“When we started in snacks, a friend of mine who had invested in a new machine for corn puffs went bankrupt. About 6 years ago we bought out his machine with the intention of developing our own snacks business. Within the first 3-4 years in the snack business, we had difficulties penetrating the local market as we were disadvantaged by the quality of products that the machine produced,” says Raj. He adds that in 2018, Mjengo made a firm commitment to upgrade the machine to match the European standards. This decision gave the company a sure footing in the corn puff sector and made it possible to increase its machinery and delve into the cereals and biscuits snack markets. This cemented its

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Today, we firmly believe that we have what it takes in terms of the machines, human resource and the customer knowledge to compete both at the local and international level

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foothold in the food industry.

Besides the machinery, the company went on to invest in its new ultra-modern head office building and also up-scaled its facilities to ensure its growing human resource has access to a comfortable, clean and safe working environment.

Over the last 20 years, Mjengo Limited has developed a diversified range of products, in tune with evolving consumer trends and emerging opportunities. According to the Director, the pace of innovations has picked up steam in the last 2-3 years as the company continues to grow through an ambitious growth plan.

“Until about 5 years ago, we were focused on what we could do and achieve. However, we purposed to go beyond our comfort level and challenge the multinationals. Today, we firmly believe that we have what it takes in terms of the machines, human resource and the customer knowledge to compete both at the local and international level,” Raj states emphatically.

GROWING PRODUCTS RANGE In the packaged rice category under the Daawat brand, the company has a range of rice products including Basmati, Aromatic, Biryani, Parboiled, Long Grain and Brown rice varieties. This is in addition to the 224 rice brand which also has a number of rice varieties.

Under the Spaghetti & Pasta segment, the company has the Daawat brand of products that are imported and packaged for local and regional markets. The Director says their Daawat Spaghetti & Pasta products control 50-55% of the market share in Kenya.

Raj observes that the rice category has

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undergone significant transformation in Kenya with local production still limited, which has made the country to supplement through export. Consumer preference has also shifted with time and thus created the need for producers to constantly innovate.

“Customers have become creative in how they are preparing and serving their meals, hence the need to ensure that we are offering quality products. While previously we relied only on Mwea Pishori, we currently have about 7-8 different types, with pricing being the key determinant for the consumers.”

Commenting on the rising demand for spaghetti and pasta in the region, Raj notes that people transform with time based on exposure that they are getting. “Our grandparents never had the opportunity of a formal education, which for us has brought about improved technology and ease of communication. Consequently, this has in turn resulted to newer ways of doing things as well as introducing new food items on families’ dinner tables.” He explains that 30-40 years ago, ugali was the most dominant food in most Kenyan home whereas rice was thought to be a mostly Indian food. That has since changed with the adoption of wheat to make chapattis and introduction of pasta, spaghetti and pizza among other foodstuff.

In the biscuits category under the Nuvita brand, Mjengo Ltd has a thriving line of biscuits and cookies – arguably the most diverse in the region. The list of products cover a wide scope of sections, perfect for each eating occasion.

They include classics such as short cake, glucose and nice, to specials under its new Nuvita Westbury’s line, to creams, digestives and tea biscuits.

It also has a thriving cookies range that

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includes Nuvita Flap Jacks oat baked cookies and Nuvita Shortbread variants. The biscuits and cookies range come in various flavor combinations and are also available in sugarfree versions to cater for those who are seeking zero sugar products.

Recently, the company launched Nuvita Sponge Cakes, the first of its kind in East and Central Africa. This was in addition to introducing premium cream biscuits, the Nuvita Secrets and Nuvita Wafers that are all available in various flavors.

The company also recently unveiled a new category under the Rico brand of condiments that comprises of ketchup, tomato ketchup, jams and desiccated coconut. This came after the launch of its snack products under the brand name ‘Snak It’ with two product lines, corn puffs and flavored bikis.

“Innovation and product diversification is critical for the survival of any business and this is what has constantly driven us as a company and that explains why we have gone on to cement out foothold in the market segments that we operate in,” says Raj. He adds that the decision to join the wellestablished biscuits sector was driven by a conscious choice to meet a need that was lacking in the market. “If you want to beat the leaders, you have to prove yourself better than them and the only way to do it is by talking directly to consumers and ensuring that you are meeting their need for quality products. To us, we are not just focused on profit and sales volumes but our most primary concern and desire is how best we can present products to our consumers and fulfil their need.”

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LOCAL AND EXPORT MARKET POTENTIAL Mjengo’s products are currently available across the country and parts of East Africa through a well-structured distribution chain. “We have mapped our distribution and therefore well versed with this market.

Two years ago we ventured into Uganda and currently using our distribution there to market our products; the country has an enormous potential for our brands.”

Raj observes that the company has been careful not to expand too fast into newer markets since each country has a unique characteristic that requires learning before making quick moves. “If you want, you can do two, three or four different countries. However, a key question to always ask yourself is ‘if you don’t execute your business plan well in one

THE COMPANY'S NEW RANGE OF PRODUCTS INCLUDE SNACKS & TOMATO PASTE, KETCHUP AND JAMS & MARMALADES

KEY NUMBERS

6.5M

US$

THE AMOUNT OF INVESTMENTS THE COMPANY HAS DONE IN THE LAST TWO YEARS IN NEW PLANTS TO DIVERSIFY ITS PRODUCTS PORTFOLIO, WHICH INCLUDES SNACKS

country, how then would you manage to do it in three other nations?’ he says.

However, he reveals that there is an untapped potential in international markets, which needs to be exploited. “The last one year, we have been showcasing our products in international trade fairs and exhibitions

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MY FACTORY • MY STORY | MJENGO LTD

and the number of enquiries that we have received from people as far as Canada, Saudi Arabia, DR Congo, Maldives, Hong Kong, Singapore and among other countries has been amazing.”

Raj informs Food Business Africa that even though the fairs have been an eye-opener to them, it has been a costly affair participating in them especially with no assistance from the government. “We have a government agency in charge of export promotion but it has never contacted us to offer guidance. Kenya has so much potential in terms of becoming an industrial leader in this part of Africa, but I don’t think or envisage that the government looks at this kind of opportunity.”

Decrying Kenya’s overreliance on tourism, coffee and tea, the Director says that he sees a huge potential for businesses in the country to excel in international markets, if only the government can double up the effort towards promoting the export of products such as processed foods to the regional and international markets.

“I find that people are reluctant to invest especially on the export trade yet most of the big businesses in Kenya are owned locally.

We are localized, we understand the people and the way of doing business in Kenya, in fact, sometimes international companies are unable to compete with local companies.”

INVESTING IN MANPOWER AND A SUSTAINABLE FUTURE Raj, a husband and father of four, from twoset of twins, is focused about the future of his company, more so at this time when a global pandemic is ravaging most nations’ economies. He is also concerned about rapid changes in the climate, which has an impact on the future of the planet. He says sustainability is about the future and not just about the current generation, adding that the World does not belong to us, but to our children, hence the need for environmental conservation.

“In 2019, I attended a seminar in Switzerland which left me with a big impression on the need to make the World a better place for our children and the future generation. I was intrigued by the insights from the event in regards to climate change and managing environmental pollution. Upon getting back, we developed a policy as part of our financial planning that would see us

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plant thousands of trees every year. While the government aims to plant 20 million trees by the end of 2021, our target is to plant 90, 000 trees,” says Raj with a sense of urgency in his voice.

While the company has a long way to go to achieve its energy sustainability goals, Raj reveals that it has made significant progress on this journey. For example, Mjengo has reduced its carbon footprint by 30%. That is according to an audit that was carried out in 2019.

Further, solar panels installed on the roofs of the company take care of 30% of the company’s energy requirements, while they have also moved from diesel to gas, changed all their electrical motors to VFF, which only run when the machines are operational.

Use of LED lighting has also been adopted all across the company to reduce the cost of energy.

MARCHING INTO A BRIGHT FUTURE To help move the company to a more sustainable future, Mjengo has evaluated its human resource needs with a view to having a stronger management team that can run the business on a regular basis, as Raj concentrates on the company’s broader future goals and aspirations.

“My passion has been on research and

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I have exposed my children to the business over the last 10 years. Every time they are on their school holidays they have to report to the office like the rest of the staff in the company

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development in the last 3 to 4 years while striving to develop new products. In my travels overseas, I enjoy picking up samples and then getting back home and trying to develop them locally. That way, I have turned my research and product development into a hobby,” says Raj. With both daughters working in the UK after their university studies, he is hopeful that his two young sons, who are in 3rd year at a UK university, will eventually return to Kenya and join the family business. During our visit to the factory, the two were part of the team that received us and took us on a tour of the plant, as they get to grips with their learning process under the guidance of the team at the company.

“I have exposed my children to the business over the last 10 years. Every time they are on their school holidays they have to report to the office like the rest of the staff in the company.

Whenever I travel to trade fairs or go to crucial meetings, I always invite them to join me when they are not in school sessions.”

As the company marches into the future, Raj exudes confidence in the firm’s ambitious growth plans. “Within the next five years, we are looking at growing two fold. The structures and the human resource that we have set in place are going to yield us great results. I am an ardent believer that people, irrespective of their positions, are vital to a company’s future and that is why I am investing heavily in my team.”

He further reveals that the company is open to partnerships as part of its growth trajectory and is open to considering taking onboard not only equity partners, but also long term investors. “Financial partners provides a growth platform as the cost of finance in this country is expensive compared to Europe, where you are talking about 2-3% and whereas in Kenya we are at 10-12%.”

In his conclusion, he advises the young crop of entrepreneurs on the need to think long term as they grow their businesses and to put in hard work, focus and be resilient.

“There are countless business opportunities. However, don’t venture into any trade expecting overnight successes; prosperity is not made overnight but takes time, sacrifices and every day effort.

Sometimes, you may not see the benefits of your investment; it will take your children to see that.” FBA

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Dairy

BUSINESS

TRENDS IN FORMULATING, PROCESSING, PACKAGING & CONSUMPTION OF DAIRY PRODUCTS

Convenience, flavours and healthy-living drive growth of drinking yogurt market

Y

ogurt is a tart, custard like food made from milk curdled by the action of bacterial cultures thus considered as the best source of probiotics. It has been consumed by humans for hundreds of years mainly due to the health benefits associated with intake of probiotics such as improving gut functionality, metabolism, along with immunity boosting. In addition, yogurt is filled with proteins, packed with vitamins, and loaded with bone-building calcium and minerals. To this end health-conscious consumers including both adults and children have been the main drivers for rising demand of the product.

Further to that, growing consumers interest towards convenient foods has resulted in evolution of drinking yogurt. Drinking yogurt combines the nutritional benefits of the beverage with functionality and taste. Addressing the latter, drinking yogurt manufacturers have taken their flavour profiling a notch higher to meet the changing consumer taste and preference.

BURSTING WITH FLAVOURS In the past, mainstream flavours such as plain, vanilla, strawberry, chocolate and other fruit flavours were the norm, but innovative processors are offering indulgent and appealing variants. To this end bold and unique flavours continue to gain popularity and grab consumers’ interest, especially among millennials. In addition, new drinkable yogurt flavours, such as the savoury flavours of vegetables 48

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- carrots, beetroot, and tomatoes have become popular among consumers.

Take the case of Kenya’s Bio Food Products. The innovative dairy company in 2018 debuted its Bio Active Probiotic Yoghurt Drink, a range of delicious fruit yoghurt with real fruit that is available in three varieties: blackberry & raspberry, cucumber & mint, yuzu, apple & lemon and which the company says has all the good bacteria that boosts the immune system and assists in the digestion of food and improves the overall well-being.

A GROWING ACCEPTANCE OF YOGURT AS A SNACK CREATES HUGE OPPORTUNITY FOR THE MARKET. AS A RESULT, WE’RE SEEING PRODUCT INNOVATION EXPAND TO INCLUDE FORMATS THAT FIT NON-BREAKFAST OCCASIONS - BETH BLOOM, SENIOR ANALYST OF US FOOD & DRINK AT MINTEL

Ethnic and artisanal flavour trends in other food products are jumping over to the dairy aisle as well. Baobab is relatively new on the scene and has shown up in yogurt.

This fruit comes from a tree native to the African continent, Australia and Arabia, and is considered a super food that is recognized for its vitamins, minerals and immune health FOODBUSINESSAFRICA.COM

DAIRY | DRINK YOGHURT

benefits.

Additional flavour profiles gaining popularity include toasted nuts, ginger, coconut, pomegranate, lavender, chai, rhubarb and even jalapeno for those with more adventurous taste buds.

As manufacturers seek new flavour combinations, throwing in a dose of health and wellness is also increasingly becoming the norm.

According to a report by Mordor Intelligence, the yoghurt market has recently witnessed the launch of drinkable yogurt fortified with omega-3, collagen, aloe-vera, plant sterols, and soy isoflavones.

For instance, Morinaga Nutritional Foods Inc, an American manufacturer of dairy products launched a low-fat Japanese-style yogurt drink under its popular Alove brand in three flavors - original aloe-vera, strawberry banana and coconut in March 2018.

During the period 2017-2018, aloevera based yogurt drinks witnessed a growth of over 30% in terms of new product launches in USA.

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INDULGE WHILE ON THE MOVE Coming in as a chariot of convenience, drinking yoghurt has set itself as a practical alternative to yogurt cups and spoons, as it comes in recloseable packs with a spout or are provided with a convenient drinking straw.

This makes it ideal for people on the move to consume it anywhere and anytime. Available in full, medium and low fat and high in protein it is a go-to option as a snack or meal replacement. This in turn has led to consumers to increasingly treat yogurt as an all-day food product instead of relegating it to breakfast hours, as had been the case before.

According to Mintel, a global provider of research and market insights, approximately 93% of Americans who eat or drink yogurt have it at breakfast, however more consumers are choosing yogurt as an afternoon snack increasing to 84% in 2016 from 37% recorded in 2014.

“A growing acceptance of yogurt as a snack creates huge opportunity for the market. As a result, we’re seeing product innovation expand to

include formats that fit non-breakfast occasions,” Beth Bloom, senior analyst of US food & drink at Mintel said.

These figures mirror more the situation in many sub-Saharan African countries, where yoghurt, while being appreciated as a breakfast food, is largely drank on the go, coming in as an important meal replacement and refreshing drink that is consumed throughout the day.

EXPANDING MARKET REACH TO GROWING VEGAN POPULATION Moving away from the traditional use of dairy milk as a base for making yogurt, a significant shift has been witnessed with the rising production of non-dairy drinkable yogurt aimed to increase the market penetration, particularly among the growing vegan population.

Leading market players such as Danone and Chobani have introduced vegan yogurt drinks derived from almonds, soy, coconut, and other non-dairy sources over the last one year, as they innovate to fall in tune

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DAIRY | DRINK YOGHURT

with rising consumer demand for plant based foods.

Danone has an impressive variety of plant-based products including almond and coconut milks, to blends, coffee creamer and non-dairy yogurt alternatives, while Chobani Probiotic is a range of subtly bubbly fermented plant-based drinks, crafted with organic fruit juice, botanicals, and immunity-supporting probiotics, and which is available in lemon ginger, pineapple turmeric, peach mint and cherry hibiscus tea variants.

Other than catering to the growing demand for plantbased foods and beverages, Chobani recently launched Chobani Complete, which it refers to as an advanced nutrition with 20 amino acids and high in protein, lactosefree Greek yogurt drink with no added sugar - a welcome treat to consumers who are lactose intolerant and have been left out of the yogurt relishing party for far too long.

“With every trip to the store, consumers are looking to do more than just fill their bellies. They want healthier foods and drinks to calm their minds, restore their bodies and replenish their energy,” stated Peter McGuinness, President of Chobani during the launch of the new brand.

APAC TO DRIVE GLOBAL DRINK YOGURT MARKET Ticking all boxes of nutritious, convenient and sensory intense product, the global drinking yoghurt market is projected to grow at a CAGR of 4.8% during the forecast period 2020-2025, according to Mordor Intelligence. A report by Market Watch has further indicated that sales are expected to cross 17 million tonnes by 2023. In 2017 the market was valued at US$21.2 billion.

Asia-Pacific is the dominant market for drinkable yogurt globally, accounting for a market share of 40%, driven by the consumer awareness of probiotic products and supportive regulatory environment. The region is also deemed to be the pioneer of drinkable yogurt sales with the introduction of Yakult in Japan in 1935. Other than being the dominant market, it is also the fastest growing region witnessing a CAGR of 14.6%, with China and India leading the growth.

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The second largest drinking yoghurt market worldwide is Europe accounting for 28% market share followed by North America with 21%, South America with 9% and Middle East & Africa with 6%. In Africa, the yogurt market is expected to record a CAGR of 5.1% during the forecast period 2020-2025, with South Africa featuring as the fastest growing market.

Some of the major players spreading awareness and promoting consumption of drinkable yogurt in the region include Yakult, Danone, FrieslandCampina, Nestle, and Chobani. Local players have also ventured into the sector with the likes of Sotibe Nigeria Limited, a West African dairy company offering its Dolait drink yoghurt in Cameroon, Benin Republic and Nigeria. In East Africa, Kenyan specialty dairy company all the major dairies offer various forms of drinking yoghurt including Bio Food Products, Brookside, New KCC, Githunguri etc.

MOVING AWAY FROM THE TRADITIONAL USE OF DAIRY MILK AS A BASE FOR MAKING YOGURT, A SIGNIFICANT SHIFT HAS BEEN WITNESSED WITH THE RISING PRODUCTION OF NON-DAIRY DRINKABLE YOGURT AIMED TO INCREASE THE MARKET PENETRATION, PARTICULARLY AMONG THE GROWING VEGAN POPULATION. Globally, other than the already cited Morinaga, Yakult, Danone, FrieslandCampina, Nestle and Chobani, other key players in the market include Gujarat Cooperative Milk Marketing Federation Ltd, Mother Dairy Foods Processing Limited, DANA Dairy Group LTD, Groupe Lactalis, Pillars Yogurt, among many others.

INNOVATIONS DRIVEN BY SUPPLIERS Drinking yoghurt’s convenience and health benefits will continue to resonate with consumers in the future.

However, manufacturers will need to pre-empt future headwinds and continue adding value to their assortments.

For instance, consumers are seeking more healthy and natural ingredients in drinkable yogurts, such as stevia, instead of bulk sweeteners to reduce calories. Confirming yogurt’s double-sided nature, next to health claims and sugar reduction, brands also have a chance to thrive by exploring indulgence through proper texture, which goes hand in hand with flavouring, providing the ultimate consumer experience.

To solve these and many other problems, players like DuPont Nutrition & Biosciences (DuPont), a Danish biobased company, has been launching a series of dairy cultures and probiotic formulations, offering yogurt producers new solutions for differentiation, positioning them for future growth.

Other than DuPont, processing and packaging solution

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provider, Tetra Pak has also been on the forefront to drive growth in the market. In 2010 the multinational company partnered with a major Chinese dairy, Bright Dairy to launch the first Ambient Drinking Yoghurt (ADY) worldwide, under the brand name Mosili’an. ADY is the long shelflife version of yogurt, taken through an important heat treatment step that allows the product to be stored for months at room temperatures without changing taste, mouth-feel or nutritional value.

Since the launch of the game-changing innovative product, the trend has seen more dairy producers entering the market with Tetra Pak processing lines. According to the company, while global production volumes of most yoghurt types grew at a compound annual growth rate (CAGR) of 4% during the period 2013-2016, ambient yoghurt production grew at a CAGR of 19% in the same period. In 2018, Tetra Pak took the innovation to the next level when it partnered with Yili to produce world’s first Ambient Drinking Yoghurts (ADY) with large fruit and cereal pieces.

The phenomenon has grown beyond its birth-place China, setting its foot prints in African countries like Nigeria with Chi Limited launching the Gogurt pack, under the Hollandia Yoghurt brand and Fan Milk Limited in Ghana introducing FanMaxx.

Furthering innovation in the ambient drinking yogurt segment, Arla Foods Ingredients in May 2020, launched a new clean-label yogurt concept with its Nutrilac YO4575 whey protein that it says meets Chinese demand for ambient yogurt. Initially created to increase creamy mouthfeel in high-viscosity fermented products such as skyr, Arla claims Nutrilac YO-4575 has heat-stability and texturizing properties.

INVESTMENTS INCREASE Investments, expansions, mergers and acquisitions, and partnership are common strategies in the industry aimed to boost the market. Nigeria’s FrieslandCampina WAMCO, the subsidiary of Holland’s Royal FrieslandCampina, recently commissioned an ultra-modern Ready to Drink (RTD) factory worth US$27.5 million for the local production of its Peak Yoghurt drink.

The opening of the state-of-the-art facility is linked to the successful implementation of the company’s dairy development programme in the country, which recorded an increase in fresh milk collection from farmers to hit an alltime high record of 40,000 litres of milk per day. This will ensure the factory has ample raw material for processing.

The drinkable yogurt market is highly competitive in nature with both domestic and multinational players competing for market share and placing innovation as one of their major strategy of being leaders in their respective markets. The end winners are the consumers fashioned with products that satisfactorily meet their demands. FBA

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The Kenya Dairy Expo is a series of African focused events that enable consumers and the general public to touch, feel and taste the latest processed and packaged dairy products including: Fresh and long life milk products • Yoghurt – flavoured, fruit, Greek etc • Traditionally fermented milk products and more • Cheese and Ice Cream • Butter and ghee • Flavoured milk products • Milk powder •Plant-based and dairy free products • Dairy/juice blends and mixes • Whey based products

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51

BeverageTECH TRENDS IN FORMULATING, PROCESSING, PACKAGING & CONSUMPTION OF BEVERAGE PRODUCTS

As Covid 19 pandemic hastens adoption of cans

Sustainability drives changes in beer packaging

T

he 13,000-year-old beer industry is facing a new revolution in packaging. Previously, beer manufacturers developed packages to mainly achieve primarily to contain the beer, protect the quality of the beer from deteriorating, enhance convenience of use by the consumer, and differentiate the beer brand from its competitors.

Although these functions remain the fundamental reasons behind beer packaging, a new trend in the name of sustainability has joined the block and is revolutionizing the way the drink is being packaged around the world.

Today companies are thinking on how best to make their products either recyclable or compostable. Sustainable packages have also been found to be a great selling point.

According to a study by Innova Insights, packaging – and its impact on the planet – was now regarded as a

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key purchasing consideration for many global consumers.

Furthermore, 61% of Millennials are likely to pay more for eco-friendly or sustainable products, according to Global Web Index. Brands are thus finding a competitive advantage in using sustainable packages and are working with suppliers to push the limits of beer packaging innovation.

Without further ado, lets dive into the innovative trends shaping the beer packaging industry in 2020 and beyond.

TREND I: OBLITERATING PLASTICS FROM BEER PACKAGING Although a small percentage of beer (less than 2%) is packaged in plastic bottles, a significant quantity of plastic packaging is still used in the beer industry, particularly in secondary packaging such as plastic film wraps and plastic rings. These inventions, once seen as revolutionary, have

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BEVERAGES | PACKAGING

fallen out of fashion largely due to their negative impact on the environment. The rings being non-biodegradable usually end up in the ocean and have been flagged by environmentalists as "a particularly dangerous form of marine litter" due to their aptitude to entangle or strangle marine animals.

Plastics in beer packaging are now being obliterated in favour of more biodegradable solutions. A small craft beer brewery named SaltWater in the US has for instance come up with a new alternative to plastic rings: a biodegradable, compostable and, most remarkable, edible six-pack ring.

Yes, fish, birds and turtles can eat it! It's made from wheat and barley, by-products of the brewing process.

Major breweries globally have also joined the bandwagon with their own alternative solutions. Barcelonabased global brewer Estrella Damm is testing 100% biodegradable natural-fibre cardboard six-pack holders.

If successful, it plans to use them in the 85 countries in which it operates, eliminating 89 million plastic pack rings.

In 2019, Carlsberg announced it would glue its multipacks together to cut the amount of plastic it uses by more than 75%.

Most recently, Graphic Packaging International introduced KeelClip™, a packaging innovation to help brewers optimally package their products. The solution, which consists of minimal recyclable paperboard material that clings on top and wedges between can multipacks, has already been embraced by AB InBev, where its Budweiser brands in the U.K. market, such as Bud Light, are now packaged with the new KeelClip. Other companies outside beer industry such as Coca-Cola have also adopted the solution, and one can expect the trend to be widely adopted in the beverage industry in the next few years.

Not wanting to be left behind, Molson Coors Beverage Co. introduced in August 2020 a set of new global packaging goals to reduce plastics in its packaging, aiming for 100% of its packaging to be reusable, recyclable, compostable or biodegradable by 2025. The brewer talks of sustainable packaging strategies and tactics including 3-layer plastic bottles, paper sleeve cartons, fiber-based multipack rings and more. The company also seeks to achieve at least 30% recycled content in its PET bottles, plastic film wraps and plastic rings.

TREND II: REPLACING GLASS WITH CANS Aluminium cans have been commended as a superior packaging material and their use has grown considerably in recent years due to distinctive features such as being lightweight, stackable and strong, and therefore allowing brands to easily package and transport more beverages whilst using less material.

Its ability to be recycled over and over again in a true ‘closed loop’ process has particularly made it a darling for beer manufacturers and companies looking to promote their products while meeting environmental goals.

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ALUMINIUM CANS HAVE BEEN COMMENDED AS A SUPERIOR PACKAGING MATERIAL AND THEIR USE HAS GROWN CONSIDERABLY IN RECENT YEARS DUE TO DISTINCTIVE FEATURES SUCH AS BEING LIGHTWEIGHT, STACKABLE AND STRONG, AND THEREFORE ALLOWING BRANDS TO EASILY PACKAGE AND TRANSPORT MORE BEVERAGES WHILST USING LESS MATERIAL. In recognition of the advantage that canned beer has over glass beers, Molson Coors during its recent rebranding in the UK and Ireland announced that it would sell three of its biggest beer brands in aluminium bottles, with the transition enabling it to reduce total packaging weight globally by 21% (~141,000 tonnes).

Although the shift towards beer had been gradually taking place, the Corona virus put Aluminium cans into a new growth pedestal, with more consumers preferring canned beer to glass given their convenience as take away options. The demand has been so explosive that it exceeded supply, causing a shortage of cans for nearly all beer manufacturers. In some cases, beer makers such as Molson Coors, Brooklyn Brewery, and Karl Strauss suspended output of products that sell in low volumes, so they can focus on their best sellers. Closer home, East African Breweries Ltd, the largest brewer in the region was forced to package bottled beer brands in carton packs of six following a shortage of aluminium cans. The brewer has also taken into cognisance the importance of cans, expanding the range of its canned beer products during the pandemic, with almost all its premium and mainstream beers now available in can packaging as well.

The Corona Virus stimulated demand seems to have accelerated the growth of the Aluminium cans market, which was projected to grown at a CAGR of 3.2% between 2020-2025, according to Mordor Intelligence.

Can manufacturers are now playing catch up as they race to ramp up their production capacities. US leading can maker Ball Corp. recently announced it is set to open two new plants in the country by the end of 2021 and add two production lines to its existing US facilities. In Asia, Japan's Showa Denko opened a new 7-billion-yen factory in southern Vietnam in July, and is expanding existing plants in northern Vietnam and Thailand. The company says it will increase annual capacity in Vietnam to 3.3 billion cans by the end of 2020, up 150% from 2017.

TREND III: BEER IN PAPER-BASED BOTTLES Perhaps the most groundbreaking trend in beer packaging is the gradual shift towards paper-based bottles, as viable alternatives to the bulky and fragile glass bottles.

In October 2019, Danish multinational brewing company Carlsberg debuted what it described as the

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for as long as possible. Zythology (the study of beer and beer-making) says that to guarantee a better beer quality, it is important to control the amount of oxygen in the bottle.

In pursuit of beer excellence, Carlsberg invented the Zer02 cap, a scavenger layer in the liner underneath the cap that absorbs oxygen in the bottle, partially preventing the oxidation process, and thus keeping the beer fresher for longer.

Given its advantage in making beer last fresh for longer, the innovation debuted by Carlsberg will undoubtedly spread across the entire beer industry with more brewers expected to embrace the trend in an effort to keep their beer fresh for longer. “world’s first paper beer bottle” made with sustainable and recyclable wood fibres. The launch by Carlsberg sounded like a clarion call for beer manufacturers to become more innovative in their packaging. In July 2020, British multinational brewing company Diageo announced a partnership with Pulpex Limited that will see it distribute some of its alcoholic beverages in paper bottles “made from sustainably sourced pulp and designed to meet food-safety standards.” Diageo further noted that the bottles are expected to be fully recyclable in standard waste streams.

Although Diageo is expected to debut the paper bottle with Johnnie Walker in early 2021, it’s expected that as technology advances, the alcohol major’s beer line, which include popular brands such as Guinness, will also be packaged in sustainable bottles in future, in line with its goal of using sustainable packages “all of which will be widely recyclable, by 2030.”

TREND IV: ACTIVE PACKAGING IN BEERS "Fresh" is one of the factors defining better beer, with beer manufacturers always aspiring to find ways of keeping their bottled beer fresher

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TREND V: TRANSPARENCY IN LABELLING As health-conscious consumers gain more access and better understanding of product information and choices, companies are being pushed to produce information that is clear, concise and transparent in order to promote trust between the consumer and the brand.

Overtime, companies have started putting clear labels of calorie contents on alcohol beverage packaging, in an

attempt to tackle obesity within the UK. This trend in package labelling is expected to even grow further following joint proposals submitted to the EU by the drinks industry to ensure that nutritional information will be available on all beer, wine and spirits sold in the block by 2022.

FUTURE PROSPECTS Moving into 2021 and beyond, sustainability is expected to continue being the major driver of innovation in the beer packaging industry.

This is more so due to the fact that companies are working round the clock to meet ambitious sustainability goals. Consumers are also becoming increasingly aware of the impact that packages have on the environment and as shown above, are more likely to embrace sustainable products, even when they cost more than their alternatives.

Further, intensifying regulatory demand is driving the transition to more eco-friendly packaging. Notable examples include the EU’s single-use plastics ban and, more recently, its Circular Economy Action plan, which prioritizes the reduction of excessive packaging and packaging waste, and China’s strategy to phase out a broad array of single-use plastics by 2025.

In East Africa, Rwanda recently expanded its ban on all other types of single-use plastics, such as straws, coffee stirrers, soda and water bottles, plastic cutlery, balloons and almost all food packaging. Beer manufacturers in the country – such as Bralirwa and Skol Brewery - are lobbying for the establishment of a local glass manufacturing facility in the country as well to reduce their reliance on imports.

It would be thus safe to say that companies that do not jump into the sustainability bandwagon when it comes to packaging will certainly have a lot to lose in the few years to come. FBA

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FOOD BUSINESS AFRICA TOP 100TM

100 TOP AFRICAN FOOD COMPANIES

2020

Join us in the Jan/February 2021 edition of this magazine, as we review the Status of the Food Industry in Africa - from key people appointments, to investments and deals during 2020, plus some of the issues that grabbed the headlines in this pandemic-filled year.

Also, discover some of the most impactful food companies in the region's first ever listing of the Top Food Companies in Africa. You can not dare miss reading this edition!!

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Rising Trends in Craft beer in Africa as Pandemic Takes its Toll

S

outh Africa is the pioneer of Craft beer in Africa with its first craft brewery, Mitchell's Brewery, opening its doors in 1983. In less than 3 decades, the craft beer landscape in the rainbow country has changed tremendously and is now dotted with over 215 breweries, according to Craft Brewers Association South Africa.

Craft beer, which in 2015 accounted for accounted for just 1% of total beer sales, has grown tremendously in the past few years and now accounts for more than 5% of beer volume consumes in South Africa. New growth drivers in this category are young consumers thirsting for something more than just the average beer with its thin body, short aftertaste, and no flavours.

Another major driver for growth in this market is the recent entrance of black entrepreneurs into the craft beer industry. “The main producers and consumers of commercial craft beer in South Africa have traditionally been white men,” says Lebona Moleli, Johannesburgbased entrepreneur and founder of newly launched craft brewery called Mohope. Blacks, who are the majority in the country, did not have a sense of belonging. The craft 56

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beer did not quite capture their taste and imagination.

Seeing an opportunity, African entrepreneurs jumped into the scene, launching products, which according to Moleli would “encourage more discerning Black men and women consumers to participate in the craft beer market.”

His brewery, which sold its first craft beer in 2019, is among black owned breweries that are taking craft beers to the community, quenching thirsts of thousands with a premium quality drink that takes its inspiration from the rich African culture and heritage.

GROWTH ACROSS THE CONTINENT Unlike in South Africa where craft beer has been in existence for over three decades now, craft beer in the rest of the continent is relatively young.

Kenya is arguably among the 'mature' craft beer industries in Africa south of Sahara and North of Limpopo.

The country’s craft beer industry has been in existence for more than 10 years now and shows no signs of putting breaks on its growth pedestal.

Its pioneer, Big Five Breweries, which launched in 2009 has since expanded and has 3 craft beer outlets, two of FOODBUSINESSAFRICA.COM

BEVERAGES | CRAFT BEER

which have dedicated brewing facilities. The scene has also seen the entrance of new players such as Bateleur Brewery, and most recently 254 Brewing, which opened its doors to the public in February 2020. The entrance of new players shows that there is demand for craft beers in Kenya and the potential for future growth is huge.

In Namibia the interest in craft beer is only beginning to expand and craft breweries are sprouting in different parts of the country’s capital Windhoek. Namib Dune craft brewery launched in 2017 is leading the way in shaping the craft tastes of Namibia’s beer and is currently the largest independently owned craft brewery in the South African nation. Other breweries such as Beer Barrel, Brewer and Butcher, and Camelthorn Brewing quench the thirst of a growing group of craft beer lovers.

In the west, Nigeria is slowly emerging as a craft beer destination with great potential. One such craft brewer, Bature brewery has opened its doors in Abuja to serve the needs of a niche market that is tired of bland, massproduced beers. Since its launch, Bature has become a darling of many Nigerians who have had a chance to taste it and now the company plans to open a new microbrewery in Lagos, the country’s largest city.

In the neighbouring Ghana, craft beer seems to be prospering with breweries such as the Inland microbrewery being in existence for more than 17 years. Another brewery, the Tema Microbrewery, which was launched recently, prides itself to be Ghana’s first truly craft beer given that its strictly follows the German purity law of making beer popularly known as Reinheitsgebot.

Moving further to the North Eastern part of the continent, Ethiopia proudly stands out as a rising craft beer market.

Although its craft beer industry is not more than five years, Ethiopian breweries are striving to bring together the heart of traditional brewing with the reliability of modern technology, producing high quality beer that puts flavour first. In this country with more than 100 million people, two breweries stand out: The Beer Garden Inn launched in 2006 and the Bole Microbrewery, which marked its second anniversary in 2020.

BIG BOYS WANT A PIECE OF THE PIE As consumption of beer gradually matures in the continent and growth tapers off, large-scale beer manufacturers in the continent are looking to tap into the budding craft beer market as their next frontier for growth.

According to latest research by Canadean research firm, growth for mass produced beer in Africa is expected to grow at a CAGR of 5% between 2020 and 2025. This is a smaller growth rate compared to the 29% annual growth rate for craft beer in the continent, as projected by Market Data Forecast. It therefore makes sense that any forwardthinking brewer will want to have his hold on the craft beer industry.

Although craft beer is relatively small in Namibia as

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compared to South Africa, Namibia breweries (the largest brewer in the country) is betting on it as its next growth frontier. The brewer has acquired the assets of a struggling craft beer maker Camelthorn and formed a partnership with South Africa based craft beer maker Stellenbrau to enhance its capacity to produce premium, high quality beer. Thanks to the acquisition, NBL now has a range of craft beers that include Helles Lager, Weiss, India Pale Ale, and Urbock.

This trend is already popular in Europe and North America where multinational companies such as AB InBev, Constellation Brands and Heineken have all acquired craft beers. Today, AB InBev alone owns 10 brands in the United States, which until a few years ago were independently owned craft breweries. It can only be expected that as the craft beer industry continues to grow in the continent, other major beer manufacturers in the continent would want to venture into the business.

Other brewers are not taking the acquisition route.

East African Breweries Ltd (EABL), East Africa’s largest brewery has introduced a number of craft beers to meet the needs of discerning consumers that are yearning for more flavourful beer products. The brewer, which has been on an innovation drive, has Tusker Premium Ale and Hop House 13 in this category.

In South Africa, SA Breweries, part of AB InBev, took a different route to the craft side by opening its very own craft brewery at its Newlands plant just out of Cape Town, the site of South Africa’s oldest brewery. Dubbed Newlands Spring Brewing Company, the 2000 litre brew house has a rich history dating back to the 17th century.

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BREWS BECOME BETTER AND MORE AFRICAN As the craft beer industry matures so does its quality.

Brendan Hart, founder of Frontier Beer Co., a South African craft brewery says that when starting out, some of the beers were not as good since not many brewers had the packaging technology to present a beer well in retail and distribution channels. Nick Smith, chairman of Craft Brewers Association South Africa (CBASA) in an interview with CNN however, notes that the craft beer industry in Africa has "come on in a big way in the last five years or so."

The beers, according to Smith, are getting better in quality and brewers are moving beyond styles influenced by the U.S. and Europe to make original beers drawing on local ingredients and beer culture. One company that is a true testimony of the maturing craft beer in Africa is Mohope Brewery, which according to its founder Moleli, is a premium craft beer that takes its inspiration from Basotho culture and heritage. Brewsters Craft, South Africa’s first black female majority owned craft brewer, has its Tolokazi Sorghum Pilsner that incorporates sorghum in the formulation, according to Apiwe Nxusani-Mawela, the founder of the company. It also has Tokolazi Hibiscus Hop Brew, which is a zero alcohol drink with hibiscus. In Kenya, the Big Five Breweries has a new adition to its stable of beers: Its Crazy Donkey IPA, which is an unfiltered has a spicy and grassy aroma from its combination of aroma hops and local stimulant, miraa or khat.

In the west, Ghana’s Inland Microbrewery is also another bastion of a maturing craft beer industry in the continent.

Its founder Clement Djameh says that the brewer produces several different varieties of beer all without the use of imported malted barley, upon which Ghana's two major commercial breweries almost exclusively rely.

HURDLES ON THE WAY Although an attractive venture, the craft beer industry in Africa is not without its challenges. For starters, the craft beer industry in most countries apart from South Africa is relatively young and therefore the technical expertise to produce high quality craft beer is lacking. Sourcing raw materials and the requisite equipment is also another challenge that craft beer makers must overcome.

In all the above scenarios, they are usually forced to import either from South Africa or from European countries, where the industry has been in existence for more than a century now. In Botswana for instance, craft brewer Big Sip sources most of raw materials from South Africa, as they cannot be found in the country, according to its co-founder Alex Moss. The same is the case for Bole Microbrewery in Ethiopia, which sources its materials from Germany.

The other challenge is what Kevin Conroy, co-founder of Nigeria’s Bature brewery describes as a byzantine bureaucracy when it comes to securing a license. This

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is probably why Camelthorn, which launched operations in Namibia in 2009, was the first to get such a license in decades. The last license had been issued to NBL in 1920.

Finally, the other main challenge is on price. Craft beers usually retail at higher price as compared to mass produced ones. In Nigeria, Bature’s 330 ml bottles of beer can cost up to 2,000 naira ($6.37) in a bar, while a 600ml Heineken can sell for 800 to 1,200 naira each in the same bar. Given the continent’s consumer price sensitiveness, penetration of this beer is not anticipated to become widespread. Due to this, many analysts believe that even in South Africa where the industry is growing at a lightning speed, they don’t see craft beer becoming anything but a niche product, at least in the medium term.

The other significant challenge that the craft brewing sector in Africa faces is the Covid-19 pandemic. According to the Craft Brewers Association of South Africa, the pandemic and its associated lockdowns, had a devastating effect on the South African industry, with 75% of breweries indicating significant drop in sales of 60-100% and 7 breweries closing permanently during June 2020. The same can be said of many craft brewers who usually rely on on-premise consumption to grow their drink and food sales across the continent.

FUTURE OF CRAFT BEER IN THE CONTINENT Despite the challenges that the industry faces in the continent, analysts project that just like in the rest of the world, craft beer in the continent is expected to continue posting strong growth in the coming years. Rising incomes in the continent compounded by a rising consumer preference to new styles and flavours offered by craft beer are expected to continue fuelling the growth of craft beer in the continent.

Market Data forecasts the craft beer market in Middle East and Africa region will grow at a CAGR of 29% between 2020 and 2025. This is a fourfold growth compared to the 7% growth that the rest of beer industry is expected to achieve during the same period. It further projects that the craft beer market in the region which is currently worth US$8.75 million will be worth US$39.45 million in 2025.

Craft beer entrepreneurs are equally optimist about the potential of Africa’s craft beer. Ghana’s Inland brewery’s founder Djamel wants to expand his brewery and make it the largest in Africa while in Kenya, the Master Brewer at Big Five craft brewery Aleem Ladak expressed his confidence that the craft beer industry in the country could thrive well beyond the confines of the country’s capital, Nairobi.

Olivier Nicolai, an analyst at Morgan Stanely says, “If I was to take a bet over the next 20 years if the market grows or declines, I would definitely say it is going to grow, but it is volatile and at the moment you have massive headwinds.”

FBA

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TRENDS IN FORMULATING, PROCESSING, PACKAGING & CONSUMPTION OF MILLED & BAKED GOODS AND ANIMAL FEED

Tackling a Hidden Pandemic: The Essential Role of Food Fortification

By Felistus Mutambi and Oliver Camp, Global Alliance for Improved Nutrition (GAIN)

O

ver recent months, the nutrition community has been working hard to mitigate against the COVID-19 pandemic adding fuel to the fire that is the hunger crisis. In fact, the WFP estimates that the number of people living in acute food insecurity could double by the end of 2020, so we must redouble our efforts to protect the most vulnerable.

As we do so, it is critically important that we focus not only on ensuring sufficient energy and protein, but also on ensuring the right micronutrients (i.e. vitamins or minerals) to fuel health and wellbeing. Unfortunately, the supply of nutrient-rich, vitamin- and mineral-loaded fruits, vegetables and other nutritious foods like eggs and dairy, has been under strain.

Meanwhile, twin economic challenges of job losses and rising food prices have left many more consumers unable to afford enough of these micronutrient-dense products.

In this context, food fortification has become even more critical in the fight against malnutrition.

Food fortification is the practice of adding essential micronutrients to foods that are widely consumed by the general population or a target group. It is a proven,

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cost-effective public health intervention that can reduce micronutrient deficiency, often termed ‘hidden hunger’, at scale, including among the poorest and most vulnerable.

Providing the nutrients needed for growth, development, and the maintenance of healthy life has enormous, longterm positive impacts: improving health and wellbeing; protecting against anaemia, stunting, and a whole host of other medical issues; and enabling proper physical and cognitive development among children and adolescents.

Universal Salt Iodization is often cited as a fortification success – providing iodine to vast numbers of people around the world over many decades, including here in Africa. And parts of Africa have made progress in the implementation of various fortification programs over the last 20 years through multi-stakeholder partnerships, enriching widely-consumed foods like wheat, maize, salt and edible oils with essential micronutrients such as iron, iodine, vitamin A, folate (vitamin B9) and zinc.

STATUS OF FORTIFICATION IN SUB-SAHARAN AFRICA The Global Food Fortification Data Exchange, available online at https://fortificationdata.org/, is an analysis and

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visualization tool for data on food fortification, developed through collaboration of multiple partners (Micronutrient Forum, Iodine Global Network, the Global Alliance for Improved Nutrition & Food Fortification Initiative).

The data and visualizations can provide insights into the status of fortification regulation (including whether it is mandatory or voluntary), the existence of standards for fortification, and the micronutrient levels established in the national standards of each country.

Taking Burundi as an example, data from the GFDx platform reveal that legislation has been in place since 2015, making the fortification of maize and wheat with 9 micronutrients mandatory, with specific standards set to adhere to. Oil fortification is also mandatory, while salt fortification has been mandatory for almost 30 years (since 1992). Rice is not included in the fortification program.

Zooming out to the macro view, we see that 10 countries out of 46 in sub-Saharan Africa have mandatory fortification in place for maize flour, 20 for oil, 44 for salt, and 26 for wheat flour. This legal basis is a fantastic first step to implementing successful fortification programs.

CHALLENGES: WHY FORTIFICATION FALLS SHORT IN SUB-SAHARAN AFRICA But it is only the first step. Once this legislation is in place, there is still plenty of work to do across the public and private sector.

In 2015, GAIN conducted a survey in 25 countries where GAIN-supported staple food fortification programmes had been implemented. The results of external quality assurance and quality control activities reported that compliance levels were around 45-50%. This estimate is consistent with other reports from programs and the published literature, and reflects a systemic compliance issue. Clearly, fortification is falling well short of its potential as a public health intervention.

There are several challenges that hinder the success of fortification programmes, ranging from industry noncompliance or technical mistakes in the fortification process leading to unfortified or under-fortified foods reaching consumers, through to the government’s inability to enforce fortification.

Overall, the seven key issues that hinder the adoption of fortification in the African context (often experienced elsewhere, too, as highlighted by GAIN’s article The Unfinished Agenda for Food Fortification) are: • Non-existent or insufficient legislation on mandatory fortification of staple foods. The lack of legislation creates an uneven playing field for business.

• A lack of clear governance and coordination structures.

Nutrition interventions can fall between the cracks when multiple agencies are responsible for related areas such as health, agriculture, food safety and trade. As the saying goes: when it’s everybody’s responsibility, it’s nobody’s responsibility. There is a need to revitalise the national

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coordination mechanisms for food fortification (e.g.

National Fortification Alliances).

• A focus on providing calories through staple foods like maize, rather than diverse, balanced diets complete with essential micronutrients. When people are food insecure, attention is paid to making sure that people have something to eat, not that it’s nutritionally optimal.

TWIN ECONOMIC CHALLENGES OF JOB LOSSES AND RISING FOOD PRICES HAVE LEFT MANY MORE CONSUMERS UNABLE TO AFFORD ENOUGH OF THESE MICRONUTRIENTDENSE PRODUCTS. IN THIS CONTEXT, FOOD FORTIFICATION HAS BECOME EVEN MORE CRITICAL IN THE FIGHT AGAINST MALNUTRITION. • A lack of technical capacity, knowledge, infrastructure and resources across industry (especially smallscale producers) and government to enable proper implementation of fortification, industry compliance, effective quality monitoring and enforcement of fortification mandates • A lack of incentives to make a clear business case for fortification.

• The availability of data on quality of fortified food, including coverage and consumption data, which limit the monitoring of progress and identification of corrective actions.

• Premix supply chain issues, which can lead to an unreliable supply of vitamin and mineral ‘premixes’, or the prevalence of cheaper, lower-quality alternatives from non-approved suppliers.

• National budgets are also often stretched, putting a squeeze on funding for fortification programmes; an issue that has been exacerbated during the COVID-19 pandemic, which has put unprecedented strains on budgets across governments, donors and development partners.

SOLUTIONS: TAPPING THE FULL POTENTIAL OF FORTIFICATION These systemic challenges are complex and multifaceted but can be overcome through coordinated action.

Development partners including GAIN are instrumental in helping governments and industries to make the most of fortification as a public health intervention.

• Advocacy: first and foremost, securing mandatory legislation is key to the success of any fortification program. GAIN’s offices in Ethiopia, Kenya, Mozambique, Nigeria, and Tanzania work closely with governments to develop policies, regulation, and standards for fortification.

• Evidence generation & use: creating and sharing information on the effectiveness of fortification programmes (including via platforms like the Global Fortification Data

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KENYA

PETFOOD, Exchange) can help to engage stakeholders and inspire and enable them to implement fortification programmes • Actions to improve monitoring, research, and evaluation of programmes: GAIN intends to provide technical support for the methodological, and information systems capacity that countries may require to assess fortification quality at the industry and market levels.

• Technical support: GAIN provides technical guidance and training to government authorities, regulators, food standards agencies and private sector organisations. This is to ensure that all actors in the fortification value chain know how to fortify and test for fortification accurately and efficiently.

• Procurement: GAIN provides technical, administrative, and financial support to governments and the private sector to streamline the procurement of key fortification inputs and equipment.

• Increasing the availability and affordability of fortified nutritious food by supporting small and medium scale food processors to increase their distribution through innovative approaches.

FUTURE OPPORTUNITIES First and foremost, there is still enormous scope for the wider adoption of fortification mandates across the continent.

Looking at data from GFDx, 26 countries have mandatory legislation for wheat flour, 10 countries (mainly in East and Southern Africa) have mandatory legislation for maize flour, 18 for oil (the majority in East & West Africa), and 44 countries have mandatory salt iodization.

Aside from the fortification of maize, wheat, oil and salt, rice fortification – yet to be mandated in a single African nation – is an emerging opportunity with huge potential for impact at scale.

Ensuring industry compliance to standards and proper regulatory monitoring and enforcement will be the next step, bringing adequate micronutrients to hundreds of millions of people.

There are specific interventions that will also accelerate progress in the short- to medium-term, with long-term impacts. Therefore, we call for the following steps to be taken: • For governments to use fortified foods and condiments in social protection programme • For governments to protect and maintain fortification mandates, monitoring and surveillance protocols during the pandemic and into the future • For development organisations, governments and the private sector to support the food industry to improve COVID-19-safe operating procedures, quality assurance systems and equipment maintenance, with well-trained personnel for sustained production and distribution of fortified foods. FBA

Animal Feed

& AQUACULTUREExpo 15+

PAVILLIONS SHOWCASING FOOD, FEED & TECH

0+ 500 S NDEE

ATTE A AFRIC FROM ORLD W & THE

1000+

PROD UCTS & SOLU TIONS FROM AF & BEY RICA OND

The Kenya Petfood, Animal Feed & Aquaculture Expo showcases a variety of food, health and care solutions targeting domestic pets (dogs, cats, birds, small animals, fish) and farm animals (dairy, poultry, horses, aqua fish, pigs, sheep and goats) including: Pet food, pet care and pet health and wellness solutions • Animal feed, animal care and animal health and wellness solutions • Aqua feed, aqua care and aqua health and wellness solutions • Associated solutions to the pet, animal feed and aquaculture solutions • Veterinary services and consultancy services

DECEMBER 2-4, 2021

SARIT EXPO CENTRE, NAIROBI, KENYA A SPECIAL PAVILLION AT:

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61

How New Feed Innovation Can Build the Future of Alternative Seafood

By Amelia Agranovich

A

s global demand for seafood rises, aquaculture has been presented as the solution to an everdwindling supply of wild seafood. Aquaculture has, so far, grown enough to keep up with demand, but the industry’s reliance on wildcaught feed to farm fish still takes a toll on wild fish stocks.

Currently, 70 to 80 percent of aquaculture feed consists of wild-caught fishmeal and oil, particularly for commonlyconsumed carnivorous fish like salmon. Approximately 10 percent of wild-caught fish goes into feeding farmed fish, equal to about 18 million tons.

While the animal feed industry has made promising progress on removing fishmeal and fish oil from aquaculture nutrition products, these innovations would go further if they were applied directly to food for human consumption.

The novel ingredients and processing techniques currently being developed to supply food to animals should be supplied to humans through alternative seafood that is made directly from plants, using fermentation technology, or by culturing cells.

FISHMEAL AND OIL FOR AQUACULTURE ARE TIED TO OVERFISHING. According to the Food and Agriculture Organization of the United Nations, 34 percent of global fish stocks are being depleted faster than they can replenish. And approximately 60 percent of fish stocks are already fished to the maximum 62

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sustainable level.

When it comes to fish oil and meal, South America leads in production. However, there is sparse data on the health of these fisheries, leading experts to believe that they are likely fished at maximum capacity, if not overexploited. In fact, 75 percent of one anchoveta fishery in Peru was found to be juvenile fish, and the Aracanian herring fishery off of Chile is believed to be overfished. The supply strain on these fisheries impacts the surrounding ecosystem’s food chain, ultimately threatening an ecological collapse.

While the fishmeal and fish oil industries seek to increase their sustainability by increasing the use of bycatch and production byproducts (around 25 to 35 percent), fish stocks have continued to decrease since 1995. This has caused prices for fishmeal and oil to rise. Feed companies have shifted their attention to alternative sources of feed, but they could benefit even more by focusing on alternative seafood.

ALTERNATIVE AQUACULTURE FEED OPTION Alternative aquaculture feed replaces fishmeal and oil meant for carnivorous fish using alternative proteinsranging from plant-based meal and plant oil to terrestrial byproducts and microbial ingredients.

Because alternative feeds decouple aquaculture from wild capture fishing, new feed innovation has been hailed as a sustainable alternative to fishmeal and fish oil.

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MILLING | FEED INNOVATION

According to NOAA, “alternative ingredients already in use include soybeans, barley, rice, peas, canola, lupine, wheat gluten, corn gluten, other various plant proteins, yeast, insects and algae. Farmed seaweed has significant growth potential as a source of food and fiber for both aquaculture feed and human consumption.”

Expanding the production of these ingredients for inclusion in alternative seafood will enable plant-based, cultivated, and fermentation-derived producers to sustainably supply the nutrients that we associate with conventional seafood.

Despite the fact that alternative feed reduces aquaculture’s reliance on wild fisheries, producing feed for aquatic animals still puts stress on the environment.

Cycling calories through animals requires more energy, land, and water than creating alternative seafood directly.

Only about 10 percent of calories and 19 percent of protein content is actually converted to calories and protein for human consumption in common aquaculture species.

Alternative seafood’s enhanced efficiency allows producers to provide calories, protein, and essential micronutrients to a greater global population—and consumer base. For example, microalgae supplies the fiber, protein, and omega-3 content consumers value in fish. As of 2019, annual microalgae production was 40,000 tons a year, which only makes up 0.7 percent of aquaculture’s feed demand. If the same amount were fed directly to people rather than cycled through fish, the nutritional benefit could reach far greater numbers.

ALTERNATIVE FEED INNOVATIONS Applying the technology used to produce alternative feed to producing whole plant-based, cultivated, and fermentation-derived seafood products would benefit the bottom line of feed companies and seafood manufacturers alike.

Incorporating ingredients like Corbion's AlgaPrime DHA into plant-based seafood products not only gives the end product the omega-3 profile consumers expect from seafood, but it also provides the ingredient producer with a new and growing market for their product. Further, the underlying technology driving new feed products in the space could be used to develop cost-effective cell culture media, enabling producers to scale up cultivated seafood.

Innovators can and should partner with the alternative seafood industry to incorporate alternative aquaculture feed technologies into plant-based, fermentation-derived, and cultivated seafood products. Feed companies can establish more lucrative partnerships with companies making higher-value alternative seafood products, thus increasing the return on the investment already being made in innovative feed ingredients.

In turn, these partnerships will give conventional and alternative seafood companies access to cutting edge ingredients at a large scale, allowing them to get nutritious

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and delicious alternative seafood products to market sooner and at a price suitable to consumers.

Alternative seafood is on the rise, creating growth potential for all parties involved. Right now, plant-based seafood makes up only about one percent of the total plant-based meat market in retail in the U.S., compared to the nearly 20 percent of the conventional meat market made up of seafood.

Clearly, there are massive white space opportunities.

Only a few products on the market currently appeal to the flexitarian consumer, and they represent only a small selection of commonly eaten species and product types.

As demand for seafood is set to grow by 30 percent by 2030 relative to 2010 levels, it is no wonder that investment in alternative seafood hit an all-time high in 2020 of over $45 million in disclosed funding.

Alternative seafood is the future of the seafood industry, and now is the time to invest in the technology and partnerships required to move new aquaculture feed technology into alternative seafood innovation.

ANIMAL FEED COMPANIES GET INVOLVED Recognizing the transformative efficiency, sustainability, and growth potential that alternative feed and seafood present for the seafood industry, several companies have begun to express interest in this space.

For example, NovoNutrients uses CO2 waste to produce protein flours for both conventional and alternative proteins, and Calysta has indicated that their fermentationderived feed FeedKind could have applications for feeding people directly. Several other companies, including BioFeyn (which encapsulates high-value components for incorporation in fish feed), Corbion (a producer of omega-3 feed from marine microalgae), and KnipBio (which uses methylotrophic bacteria to produce single-cell proteins for animal feed), could play a significant role in alternative seafood as well.

Nutreco, which produces a variety of animal and aquaculture feeds, has already established a partnership with cultivated seafood company BlueNalu. Nutreco will leverage their nutritional insight and raw ingredient access to support the startup. Innovative partnerships like this are encouraging signs as we seek to create sustainable and efficient solutions to feed the growing global population.

FBA

INNOVATORS CAN AND SHOULD PARTNER WITH THE ALTERNATIVE SEAFOOD INDUSTRY TO INCORPORATE ALTERNATIVE AQUACULTURE FEED TECHNOLOGIES INTO PLANT-BASED, FERMENTATION-DERIVED, AND CULTIVATED SEAFOOD PRODUCTS. Source: Good Food Institute

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63

ANIMAL FEED | FOOD SAFETY

How to tackle ergot contamination in animal feed In response to the ongoing efforts of compound feed processors to provide safe animal feed that complies with the most stringent regulations, Lutz Matthiesen, the Head of Bühler’s Animal Nutrition Competence Center based in Germany and Edyta Margas, Global Head of Food Safety, share some insights into the largely untapped, but vital, role that optical sorters play in significantly reducing ergot contamination in feed.

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HAT TRENDS IN FEED SAFETY CAN BE OBSERVED IN THE COMPOUND FEED INDUSTRY? Edyta Margas: The increased development of antimicrobial resistance poses a growing threat to public health and is therefore becoming a focus of regulatory attention.

According to the OECD, 75% of the annual consumption of antimicrobial preparation in Europe and the USA is accounted for by the agricultural sector. The first step toward avoiding the use of antibiotics is to improve hygiene in the compound feed processing industry and in the immediate vicinity of the animals (i.e. in the stables).

New legal requirements and standards will have an impact on compound feed production. Recent examples include the EU Commission's ban on formaldehyde for treating salmonella (EU 2018/183) and the most comprehensive reform of food and feed safety in the history of the U.S. with the Food Safety Modernization Act (FSMA).

Concerns about the future of our planet and the demand for greater sustainability also continue to grow.

This, in turn, will force the compound feed industry to take two types of action: improve the health of livestock, making livestock production more efficient and minimize performance-limiting factors such as toxins like ergot in feed.

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HOW EASY IS IT TO DETECT ERGOT FUNGUS? Lutz Matthiesen: Ergot fungus is easily recognized. It attaches itself during the flowering of grass or cereals and develops into a blue-black, grain-like structure up to 4 cm in length and approximately 3 mm in width by the time it is ripe. Ergot fungus can infest all types of cereals, but is primarily found in rye. Infection occurs more frequently following a damp spring and a hot summer.

WHY SHOULD COMPOUND FEED PRODUCERS BE KEEPING A CLOSE EYE ON ERGOT CONTAMINATION LEVELS? Matthiesen: In Germany for instance feed regulation restricts the limit for ergot at 0.1% by weight. In the harvest year 2020, this value corresponded exactly to the average occurrence. Exceeding the limit value, which must be reported to the authorities, is therefore likely.

We’ve also noticed that meat producers are increasingly paying attention to using high-quality feed so as to avoid the risk of diseases and longer rearing periods. It is in this context that routine quality audits are conducted at feed producers or in their own laboratories.

HOW DOES ERGOT CONTAMINATION AFFECT LIVESTOCK? Margas: The effects of animals consuming contaminated feed range from direct symptoms of disease to a decrease in animal performance, such as productivity. The primary disease they can contract is called gangrenous ergotism, which manifests itself through tissue necrosis or the loss

FOODBUSINESSAFRICA.COM

being defective are removed from the product flow by a momentary, powerful shot of air.

To realize successful optical sorting, a high-resolution camera, performance-related number of product chutes and high density of ejector nozzles form the basic requirements. The secret of optical sorters lies in the perfect interaction of the feed, lighting, camera, image analysis and ejector system.

of body parts such as the ears or tail.

Reduced productivity is mirrored in reduced feed intake and the lack of weight gains. Reproductive capacity is also impacted.

WHAT IS THE BEST METHOD TO REMOVE ERGOT? Matthiesen: While traditionally mechanical cleaning has been the most common method used for grain, it has its limits, particularly when it comes to tackling ergot contamination. The size and weight of the infested grains are very similar to those of the good product. The only difference between the two is the color, which a mechanical cleaner cannot detect. An optical sorter however, is capable of identifying the dark ergot and separating it efficiently from the grain. This is why optical cleaning is now standard in grain mills.

HOW DOES AN OPTICAL SORTER WORK? Matthiesen: “Look, aim and fire” is the motto of an optical sorter. Camerabased systems detect the grain at different wavelengths (contrast and/ or color). Objects categorized as FOODBUSINESSAFRICA.COM

IN WHAT QUANTITIES AND AT WHAT LEVELS OF EFFICIENCY CAN THE GRAIN BE CLEANED BY OPTICAL SORTERS? Matthiesen: The Bühler optical sorting range incorporates a modular design, allowing capacity to be precisely aligned with the processes at a compound feed mill. For rye, the capacity per chute is between 3 and 4 t/h, thereby facilitating a maximum throughput of almost 30 t/h per sorter.

The efficiency of the machine primarily depends on the level of contamination in the grain. Bühler’s Sortex B sorter achieves a product purity of 99.9%, with 80% of the rejected fraction comprising ergot.

Virtually no good product is lost.

WHAT ARE THE BENEFITS OF OPTICAL SORTING FOR A COMPOUND FEED PRODUCER? Matthiesen: Optical sorters give compound feed manufacturers greater flexibility in purchasing.

Rye with ergot infestation can be purchased relatively cheaply and cleaned to the required quality. This type of sorter also offers a safeguard for harvests with heavy ergot infestation.

WHAT USEFUL INSIGHTS CAN YOU SHARE ABOUT OPTICAL SORTERS? Matthiesen: Based on various discussions with customers, we have established that the capacity of the sorter does not need to be adapted to the maximum capacity of the compound feed plant. Under certain circumstances, only part of

the contaminated batch may need to be cleaned.

Another important aspect is considering the total costs ─ over the entire service life ─ that exceed the initial investment. Sorters that operate based on the principle of resorting generate noticeably higher PROCESSORS ARE SLOWLY MOVING AWAY FROM PURELY MECHANICAL CLEANING METHODS TO OPTICAL SORTING AS THEY ARE NOW RECOGNIZING THE LONGTERM BENEFITS THAT LIE WITH THE LATTER costs due to the double compressedair requirement and additional uplift.

Even the loss of a further 0.1% of good product can easily correspond to 10 tonnes of rye per year! To remove ergot, we therefore recommend sorters, which do not employ resorting, with a minimal loss of good product.

WHAT DOES THE FUTURE LOOK LIKE FOR COMPOUND FEED PRODUCERS? Matthiesen: Historically, the cleaning of feed has not been a top priority for compound feed producers, understandably due to limited investment budgets. However, in response to food safety regulations becoming stricter and an evergrowing focus on sustainability, the industry has had no choice but to change and adapt to the new landscape in which they operate.

Processors are slowly moving away from purely mechanical cleaning methods to optical sorting as they are now recognizing the longterm benefits that lie with the latter.

In the future we will be seeing more of that shift. It is an exciting time for compound feed producers as they are on the brink of evolution and of course Bühler is ready and willing to support them with our insights and solutions, as best we can. FBA

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65

Why living in a poor country means you have bad food choices

By Derek Headey & Harold Alderman - Senior Research Fellows, The International Food Policy Research Institute (IFPRI)

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oor diets are the number one risk factor in the global burden of disease: they account for one in five deaths globally.

In higher income countries sugar, fat and red meat increase the risks of heart disease, diabetes and cancer. These usually kill people later in life.

Meanwhile people in lower income countries struggle to access nutrient-dense foods like fruits, vegetables, dairy, eggs, meat and fish. This puts them at risk of wasting, stunting and micro-nutrient deficiencies. These tend to kill people in early childhood, but also result in various nutrition disorders and slower cognitive development.

The decision-making processes that lead to poor dietary choices are undoubtedly complex. Diets are affected by culture and tradition, by nutritional knowledge and the importance people attach to good health. But economic factors like income and relative prices are also important.

This is especially true for the poor because their food budgets are just that much tighter.

We wanted to explore this economic aspect of dietary decisions. So we analysed consumer food prices for 657 products in 176 countries surveyed by the World Bank’s International Comparison Program. The aim was to understand the global food system from poorer consumers’ perspective by examining the “relative caloric price” of any given food: how much consumers must fork out for healthy versus unhealthy sources of calories.

Our analysis of these relative caloric prices yielded a striking result. As countries develop, their food systems get better at providing healthier foods cheaply, but they also get better at providing unhealthier foods cheaply. This means that in less developed countries poor people also live in poor food systems. Nutrient-dense foods like eggs, milk, fruits and vegetables can be very expensive in these countries. That makes it harder to diversify away from nutrient-sparse staple foods like rice, corn and bread.

The problem in more developed countries is rather different. Unhealthy calories have simply become a very affordable option. In the United States, for example, 66

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calories from soft drinks are just 1.9 times as expensive as staple food calories and require no preparation time.

The fact that relative food prices differ so markedly and so systematically provides a very strong rationale for nutrition-focused food policies. Governments’ food policies prioritise the incomes of farmers and the profits of food producers and retailers. Instead, they should be designing their food policies with consumers’ nutrition and health outcomes as their top priority.

NUTRITION TRANSITION Niger is one of the world’s poorest countries. People’s staple foods include rice, bread or corn. Eggs would be a useful nutrient boost as they are dense in high-quality protein and a wide range of micronutrients. This makes them a super food ideal for young children and pregnant mothers especially.

But egg calories in Niger are 23.3 times as expensive as calories from staple foods! In contrast, egg calories in the far wealthier United States are just 1.6 times as expensive as staple food calories. This suggests that even if poorer consumers in Niger want to diversify away from their staple foods, this is economically very hard.

Our findings are consistent with the so-called nutrition transition: as countries develop, diets diversify into more nutritious foods (though sometimes slowly). But they also diversify into unhealthy foods like soft drinks.

So what is it about the global food system and the process of economic development that delivers the wrong price of healthy and unhealthy foods in so many settings?

Part of the answer lies in the foods themselves. Sugar is very dense in the basic calories needed for survival and adequate energy; green leafy vegetables are rich in micronutrients but don’t offer much energy, so they’re expensive in caloric terms. Hence when money is tight, poor consumers find cheap sugar-dense foods very appealing, and food manufacturers see sugars as a very cheap way of getting both flavor and calories into their products.

The perishability of foods is also a hugely important FOODBUSINESSAFRICA.COM

KENYA

NUTRITION HEALTH & WELLNESS determinant of relative prices. Eggs and fresh milk can’t easily be traded over long distances. Egg production is low in Niger, because poultry production in African countries faces major problems with disease, low technology and poor access to capital.

In principle, Niger could just import cheap eggs from the US but that’s not an option for a highly perishable and fragile food like eggs. On the other hand, countries can import less perishable foods like beans, nuts, milk powder, or frozen meat or fish.

Differences in the costs of healthy and unhealthy calories are therefore partly determined by the nature of the foods themselves, and partly by local productivity levels and whether the food can be cheaply traded. These complexities mean that different strategies are needed for different kinds of foods in different countries.

POTENTIAL SOLUTIONS Clearly the main food system problem for consumers in poor countries is the high price of healthy foods.

For perishable foods that cannot easily be traded it will be essential to increase investment in agricultural research and development (R&D) to improve productivity of nutrient-dense foods.

For the developing world perhaps the most important multilateral institution for agricultural R&D is the Consultative Group on International Agricultural Research (CGIAR), which helped produce the Green Revolution super crops in the 1960s and 1970s, such as high-yielding rice, wheat and maize varieties. But the CGIAR hasn’t invested anywhere near as much in nutrient-dense crops and livestock or fish.

This same bias towards staple foods is also true for developing country governments, who all too often remain fixated on the supply of their most basic staples. That needs to change.

For more tradable foods, countries need to review their import policies to ensure they’re not taxing foods that consumers need to eat more of. Not every country needs to be self-sufficient in dairy, for example. Milk powder is super nutritious and very tradable, and can be often be mostly imported from high-productivity exporters like New Zealand and the US. And for all types of healthy foods, improvements in infrastructure and the broader business environment should also help to improve storage, trade and processing of healthy foods.

The low and often declining cost of unhealthy foods is a much trickier issue to grapple with. Taxes on unhealthy foods may be one solution. But the caloric cheapness of sugars and oils and fats is very striking, and we suspect there might be more traction in nutrition education and supply-side regulations such as food labelling. FBA

EXPO

15+

PAVILLIONS SHOWCASING FOOD, FEED & TECH

0+ 500 S NDEE

ATTE A AFRIC FROM ORLD W & THE

1000+

PROD UCTS & SOLU T FROM IONS AF & BEY RICA OND

The Kenya Nutrition, Health & Wellness Expo showcases the latest nutrition, health and wellness trends that meet current consumer needs in Kenya and the East African region, including: Nutritious food, beverage and milled products • Food supplements and nutraceuticals • Wellness aids, products and services • Sports nutrition products and services • Botanicals, tonics and herbs • Probiotics, prebiotics and functional fibre products • Vitamins and minerals products • Sugar reduced and sugar-free products; Fat reduced and fat free products and Salt reduced and salt free products • Plant-based and dairy free products • Baby care and mother care products • Sleep and relaxation aids and products • Exercise and fitness products and services • Personal care and home care products

DECEMBER 2-4, 2021

SARIT EXPO CENTRE, NAIROBI, KENYA A SPECIAL PAVILLION AT:

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FOOD EXPO KENYA EDITION

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NOV/DEC 2020 | FOOD BUSINESS AFRICA

67

SUNIL PATIL - Head of Quality, Research & Technology - Kellogg Tolaram Nigeria

Describe your current role, your key responsibilities, and the most critical deliverables? What are the most important skills sets in achieving success in your role?

I am currently the Head of Research, Quality & Technology for Kellogg Tolaram Nigeria joint venture, responsible for identifying the opportunities and to develop new food products to enhance the consumer experience of a globally trusted brand Kellogg’s.

We recently launched Kellogg’s Moons & Stars with disputative proposition that excited the Nigerian consumers due to its unique duet concept that enthralled the kids, delivering a milky chocolate taste and which is complimented with great visuals, like dual shapes (Moons & Stars with respective natural color combinations).

I am a seasoned R&D professional in FMCG food specialty that graduated from the CSIR - Centre for Food Technological Research Institute (CFTRI) in Mysore, India.

Tell us about your company and how it fits in with career goals. Briefly, what is the typical day like in your role and company?

Kellogg’s is the world’s #1 cereal player with back up of 68

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technology and Tolaram is largest FMCG player in Nigeria with ambitious plans to serve African consumers to fulfill their nutritional and satiety needs with our food products.

We constantly thrive to identify the innovation opportunities in everything we do daily.

What have been your previous roles before the current one?

How important were those roles in shaping your current role?

It has been 18 years of progressive R&D journey in FMCG food space in multiple categories (Extrusion, Baking, Cereals & Snacks) and in multiple business models (FMCG, Retail Sector, B2B Ingredients).

My last assignment was Senior Manager R&D at Britannia Industries India for 5 years, before joining Kellogg’s Tolaram Nigeria in 2018.

Each role helped me to get acquainted with enhanced skillsets in consumer behavior in the respective geography, front line innovations strategies and subsequent product development expertise in respective technologies and product categories.

FOODBUSINESSAFRICA.COM

EXECUTIVE PROFILE | SUNIL PATIL

What have been the key turning points in your career? Have you ever had a change in career direction? If so, how did you handle the change? What lessons did you derive from this change?

Every role made me a better professional on how to create winning concepts. For instance, my role at retail companies gave me 360-degree commercial aspects of how value addition can done when product moves from farm to manufacturing to retail store, till it reaches the consumer. This led me to become a Category Manager at the international trading company Watanmal Group to develop propriety products.

One of the big turning point in my career was joining Britannia Industries, where I handled multiple roles like leading R&D productivity projects to improve the bottom line of the business by renovating and re-optimizing the product designs. Further, I led value innovation in the Tiger brand of biscuits and went on to lead the disruptive innovations and new technologies by democratizing the super-premium categories at affordable price points that contributed to topline growth of the business.

Joining the Kellogg-Tolaram joint venture was a bold decision but it has been a trotting journey while trying to get acquitted with consumer habits in a new geography to deliver business solutions at lightning speed.

I must say Britannia Industries gave me the expertise in foods R&D space and perhaps those were the golden days of my career.

What makes your role interesting? What do you enjoy most about your role? What has been the role of mentors and family in the achievement of your professional goals?

Am fortunate to have worked with some of the best brains in the food industry. Every superior has pushed me to raise the bar and coached me to hone my R&D skills in the FMCG foods space. Guiding businesses with strategic technocommercial insights is what makes my role exhilarating!!

What challenges do you face in delivering on your current role and how do you overcome them?

Overcoming the constraints on lack of resources, quality talent, infrastructure, addressing the gap between consumers’ audacious aspirations and affordability.

Perhaps the best way I overcome these challenges is to scout for alternative ways of solving the problems. In fact we never solve a problem; we counter it - that’s difference in thinking and mindset.

What is the status of the sector in which you operate in the region and Africa and what do you think are the opportunities, challenges, and market trends in the sector?

Africa is the next big emerging market due to the expected large number of young population by 2050. Opportunities in a convenient, healthy and nutritious yet indulgent product are the key mantra to serve African consumers.

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AFRICA IS THE NEXT BIG EMERGING MARKET DUE TO THE EXPECTED LARGE NUMBER OF YOUNG POPULATION BY 2050.

OPPORTUNITIES IN A CONVENIENT, HEALTHY AND NUTRITIOUS YET INDULGENT PRODUCT ARE THE KEY MANTRA TO SERVE AFRICAN CONSUMERS. The real challenge for all the food companies is to engage with the consumer to enable them to switch from their consumption of traditional ways of homemade cooking style to safe, nutritious packaged food that empower their healthy living. Indeed this is a slow process that would take the next 2 generations to see the next real impact. We need to be resilient in a market in which we operate.

How do you wind down after a hard day at work? What are your personal hobbies? How do these hobbies contribute to your personnel and professional development?

Spending time with our little twins is perhaps the best joy to my wife and me each evening. We are deeply delved into their nasty activities!

What are some of the personal or community activities you engage in to develop yourself or your community?

I engage myself in online mentoring of young students and professionals known to me.

How can young people who may aspire to a career choice like yours plan their journey? What advice would you give them to succeed in their careers and life?

One of my previous superiors taught me a great lesson that is imbibed in me: “Never come to me with a list of problems; come to me with a list of options to counter the problems.” That means that we are paid for solutions, not to bring issues.

As long as young professionals manage their current role with this approach, they would eventually be assets anywhere they work. Plus, one has to constantly up skill their functional skills to be competent, so as to stay relevant in the market. Career progression is inevitable if they follow such simple values.

What else would you want to do in the future? What would you want to accomplish in your career before you step away from the industry?

Nature's law is we should pass on what we possess to the next generation – hence, I am keenly exploring opportunities to get associated with universities and associations to teach the next generation of talent. FBA

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FOOD SAFETY | COVID-19

Could frozen food transmit COVID-19?

Tuti Siregar - PhD candidate, University of Canberra, Australia

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n mid-September, China suspended importing fishery products from Indonesia due to novel coronavirus contamination in the outer packages.

A month earlier, China also reported frozen chicken wings imported from Brazil have traces of the virus as well as frozen prawns from Ecuador. China has reported around 10 cases of SARS-CoV-2, the COVID-19 virus in the frozen products or its packaging.

Reports from China have highlighted safety issues on imported frozen foods. But most international food safety authorities state that there’s no evidence of COVID-19 transmission through frozen foods.

Even so, food producers and consumers should be vigilant and follow COVID-19 protocol such as wash hand using soap under running water at least 20 seconds before and after touching frozen food. Also, producers should not prepare or package food if they are sick.

FOOD SAFETY CONNECTION The news from China about the possibility of COVID-19 transmission through frozen products has prompted the New Zealand government to track down the virus in frozen goods.

In August, after more than three months having zero new cases, New Zealand found a positive case. The lady, in her 50s, had no record of overseas travel nor local transmission indication.

In the beginning, there was speculation that her husband, who worked at a frozen goods packaging company, contracted the virus from his working environment and transmitted it to her. He experienced COVID-19 symptom two weeks earlier.

But, the government said the possibility is negligible.

However, there was no clarity of the virus source.

RESEARCH FINDINGS The World Health Organization (WHO) in April stated that it’s highly unlikely that people can contract COVID-19 from food or food packaging. The United States Food and Drug Administration (US-FDA), The European Food Safety Authority (EFSA), and the Australian and New Zealand Food Standards also stated that there’s no evidence of COVID-19 transmission from food.

These statements are in-line with new research findings from USA and China using animal experiment to test whether virus SARS-CoV-2 can be transmitted through oral injection. Their result showed when the virus is entering the gastrointestinal tract, it could not survive

due to high acidity in the stomach.

Research from Minnesota university also showed that the cooking process, using heat, kills the virus. Therefore, cooked food should be safe to consume.

FROZEN FOOD WITH TRACES OF THE VIRUS? The head of microbiology at the China National Centre for Food Safety Risk Assessment, Li Fengqin, in June stated the contamination of COVID-19 through frozen food could potentially be a source of transmission. This statement is underpinned by the latest report, also from China, that the SARS-CoV-2 virus was still alive in frozen food packaging.

Contaminated food or food packaging may give positive result under PCR test. But, if the RNA in the virus is dead, the virus could not replicate further, ruling out chances of further transmission.

We need more data on RNA replication test from contaminated frozen food to determine protocols on food or food packaging. Currently, China is actively conducting research to fulfil the data as part of their awareness to this pandemic.

It is possible with more available data the current consensus on food safety will change, similar to the shift in advice on wearing masks for healthy people. With more people staying at home during the pandemic, onlinebased food retail has significantly increased. Therefore, food delivery must also follow good health protocols. Good hygiene and sanitation practises are also important along the food chain.

Companies, including small and medium and household enterprises, must apply Good Manufacturing Practices (GMP) such as using personal protective equipment (mask, gloves) as well as sanitation and hygiene.

Consumers who order ready-to-eat food should warm their food before consumption to ensure food is virus-free.

A little bit of inconvenience is better to stay healthy than being sick. FBA THE UNITED STATES FOOD AND DRUG ADMINISTRATION (US-FDA), THE EUROPEAN FOOD SAFETY AUTHORITY (EFSA), AND THE AUSTRALIAN AND NEW ZEALAND FOOD STANDARDS ALSO STATED THAT THERE’S NO EVIDENCE OF COVID-19 TRANSMISSION FROM FOOD.

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SUPPLIER NEWS & INNOVATIONS

PLANT-BASED FOODS

Chr. Hansen unveils new bioprotection solution for fermented plant-based products

DENMARK — Global bioscience company Chr. Hansen has expanded its FreshQ line with the launch of FreshQ DA, a bioprotection solution designed for fermented plantbased products.

According to the firm, FreshQ DA is a food culture that helps strengthen fermentation of plant-based products, providing better protection against spoilage caused by yeasts and moulds.

As well as keeping foods safe and fresh for longer, Chr. Hansen says that its FreshQ solution can help manufacturers meet demand for food with fewer artificial

ingredients.

It further notes that extending freshness can also help companies become more sustainable mainly through the reduction of waste in the value chain.

“FreshQ DA consists of lactic acid bacteria selected for its ability to out-compete contaminants through fermentation. It works in a variety of plant bases to help keep products fresh for longer.” Peter Thoeysen – Chr. Hansen’s director of bioprotection.

The food ingredient company also recently launched a new range of next-generation Premium cultures that it claims helps fresh dairy producers meet demands for immune health.

The cultures named YoFlex Premium and Nu-trish Premium can be used for creating high-texture yogurts with fewer additives and a healthier profile.

The company further claimed that these premium cultures also help improve margins by reducing the need for expensive skim milk powder and can be used to create healthier, premium yogurts with the optimal amount of probiotics.

M&A

Croda acquires flavour and fragrance company Iberchem for 973 million Iberchem has been majority-owned by French investment firm Eurazeo since 2017. The complementary operations of the two companies, combined with an ambitious growth synergy programme, is set to create additional value for customers.

Croda notes that many customers require both ingredients and fragrances and can expect to benefit from collaborative thinking and full formulation development made possible by the acquisition.

Iberchem will remain an independent entity with extensive support from Croda, continuing to serve its customers while collaborating with Croda teams on crossselling and other revenue synergy opportunities.

“By bringing our businesses together, we are creating a new, full-service offering to our customers in consumercare markets and a compelling platform from which to grow the combined business in the years ahead,” Croda CEO Steve Foots said.

UK – British speciality company Croda International Plc has agreed to buy Iberchem for 820 million euros ($973 million) as Europe’s largest cosmetic-ingredients maker expands into the hotly contested market of fragrances.

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NOV/DEC 2020 | FOOD BUSINESS AFRICA

71

SUPPLIER NEWS & INNOVATIONS

MILLING

Bühler advances innovation in milling industry with launch of new automatic grinding equipment

SWITZERLAND – Swiss equipment manufacturing company, Bühler is yet again pushing forward the innovation yardstick in the milling industry with launch of a new, revolutionary grinding solution for milling wheat, durum, rye, barley, corn, and spelt.

The new technology is an integrated and self-adjusting grinding system that is a radical step change in how millers control the quality and consistency of their product. The

technology, dubbed Arrius, features sensors in the feeding module and the roller pack that enable greater control of the product flow and grinding process.

With the sensors in place, Bühler says that Arrius is able to automatically adjust to the characteristics of the raw material. It further notes that double-sided sensors in the robust new roller pack allow millers, for the first time, to continuously measure the grinding force of the rollers, allowing the miller to control the grinding process closely and thus optimize product characteristics for their specific market.

Apart from influencing particle size distribution, Bühler notes that the equipment can influence starch damage as precisely as never before. “With Arrius it is possible to better control the grinding process of the product and increase starch damage by up to 10% if required,” Bühler said.

Bühler says the new game-changing grinding technology and is set to play a key role as the milling industry evolves towards autonomous mills capable of self-adjusting to optimize production parameters

PLANT-BASED FOODS

AAK to establish innovation center for plant based-foods in Netherlands

NETHERLANDS – Leading provider of specialty vegetable oils and fats AAK has announced plans to establish a new global innovation center for plant-based foods at its existing premises in Zaandijk, the Netherlands.

The center, which is expected to be operational before the end of 2021, will feature two pilot plants, an analytical laboratory, a customer experience kitchen and a sensory suite. AAK customers will now have the opportunity to leverage on the company’s state of the art facilities and expertise to develop and bring plant-based food and beverages.

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The company claims the establishment of the Plantbased Foods Global Center of Excellence will further enhance its capabilities for plant-based food development, strengthening its presence in the fast-growing sector.

“Investing in this Plant-based Foods Global Center of Excellence reaffirms our commitment to grow our presence in this dynamic and fast-paced category,” says Johan Westman, president and CEO of AAK. To meet the fast-growing demand for plant-based foods, AAK in 2019 launched its AkoPlanet portfolio, with tailor-made vegetable oil and fat solutions for food and beverage manufacturers. To accelerate innovation and drive further growth within the plant-based foods market, AAK has also joined the MISTA innovation platform aimed at bringing together the expertise of larger food and ingredients companies and selected start-ups to optimize ideas and investments.

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