Food Business Africa Nov/Dec 2021 by FW Africa

A F R I C A ’ S

N O . 1

F O O D ,

B E V E R A G E

M I L L I N G

I N D U S T R Y

M A G A Z I N E

SIMPLIFINE INVESTMENTS IN DAIRY INDUSTRY Tei Mukunya - CEO

NATURE LOCK

Turning local produce into value added foods

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TRENDS IN SNACKS PROCESSING TRENDS IN CIDER PROCESSING FLEXIBLE PLASTIC PACKAGING YEAR 9 | ISSUE NO. 49 NOV/DEC 2021

The Art of European Meat

Hindquarter Carcass with jowl

Mastered by the Belgian meat suppliers What makes the Art of European Meat? It’s that exceptional combination of Craftsmanship, Food Safety and Tailor-Made Service. And that’s what the Belgian meat suppliers truly master. As one of Europe’s leading meat producers and exporters, they turn their expertise into an art form. Up to you to savor it.

Find your Belgian meat master at artofmeat.eu

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.

Afmass FOOD EXPO

2-4 DECEMBER 2021

SARIT EXPO CENTRE, NAIROBI, KENYA

The Future of Food in Africa

WELCOME TO EASTERN AFRICA’S BIGGEST FOOD PRODUCTS & NEW TECHNOLOGIES TRADE SHOW FREEY ENTR

#IndulgeYourTasteBuds #DiscoverLatestTechnologies ORGANIZED BY

Key Figures

5000+

WWW.AFMASS.COM

ATTENDEES FROM AFRICA & THE WORLD

9+ SPECIALTY & COUNTRY PAVILLIONS

1000+

PRODUCTS & SOLUTIONS FROM AFRICA & BEYOND

Packaging is ubiquitous. As much as we'd like to purchase products without packaging, we have to understand the need of packaging in ensuring food safety, eliminating chances of contamination and extending shelf life of products. We can however make sustainable choices through: Downsizing packaging Downguaging packaging Designing for recyclability

Its time for Change, A new chapter is unfolding.

PACKAGING INDUSTRIES LIMITED

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01 NADUME ROAD, INDUSTRIAL AREA, P.O BOX 48811-00100 GPO, NAIROBI, KENYA. +254 722 206 966 / 700 745 745 / 701 745 745 WWW.PIL.CO.KE | SALES@PIL.CO.KE NOV/DEC 2021 | FOOD BUSINESS AFRICA

CONTENTS

My Company Profile: Simplifine

YEAR 9 | ISSUE NO. 49 NOV/DEC 2021

43 Food Startups Africa: Nature Lock Nature Lock: offering Kenyans homely nutritious dishes whipped up in minutes

Steven Carlyon is leading Simplifine's acquisition strategy that targets changing the game in the bakery, meat, ready meals and frozen foods categories in East Africa

ON THE COVER Tei Mukunya, CEO, Nature Lock 4

NOV/DEC 2021 | FOOD BUSINESS AFRICA

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CONTENTS

YEAR 9 | ISSUE NO. 49 | NOV/DEC 2021 REGULARS 10 Editorial 12 Events Calendar

News Updates: • Unilever to sell struggling tea business to CVC Capital Partners for US$5B • AfDB issues US$10m equity investment to ARCH Cold Chain Solutions East Africa Fund to curb food waste • Arla Foods to invest US$4.6B in the next 5 years to boost sustainable dairy production • South African artisanal cheese maker Fairview Cheese Company gains equity investment from EXEO Capital • Flour Mills of Nigeria to acquire majority stake in Honeywell Flour Mills • Seven-Up Bottling Company to beef up solar power generation with additional 10.5MW system • Leading flexible packaging solution provider UFlex opens new factory in Nigeria • Nigerian spice processor Agricorp diversifies operations into poultry farming • Egyptian grocery delivery platforms raise funds to fuel expansion • Heineken to buy Distell, Namibia Breweries in Africa expansion • Kenya’s Twiga clinches US$50m to launch own branded products, boost traceability • Ireland invests in dairy research to steer industry towards sustainable growth • Tetra Pak enhances sustainability profile with US$33.9m investment in South African factory

Supplier News & Innovations: Chr. Hansen debuts new culture for low-sugar yogurts | Alfa Laval debuts PlusClean nozzle for total coverage tank cleaning | SIG debuts “world’s fastest” beverage filling machine | Lessaffre establishes new baking center in Dubai to support bakery innovation in the Middle East | Harpak-ULMA introduces multiside-seal capabilities for food packaging | ADM to acquire probiotics company Deerland to expand health and wellness portfolio

New Product Innovations: Bakex Millers Limited: Bread Flour | Tropical Heat Group: Heroes Crisps | Excel Chemicals: Reload Orange Isotonic | Daichi Farm: Motomoto sausages | Bidco Africa Limited: Reactor Simba Energy Drink | Agventure Limited: Pure Mountain Canola Honey

DAIRY BUSINESS AFRICA 48 Growing dairy industry in Africa taps more investments as demand rises BEVERAGE TECH AFRICA 55 Trends in Cider Processing MILLING & BAKING AFRICA 59 Snack processors seek new ways to meet changing consumer needs as consumption grows FOOD NUTRITION & HEALTH 63 MIND diet linked to better cognitive performance PACKAGING 65 Plastic packaging industry evolves to meet new demands for sustainability

NOV/DEC 2021 | FOOD BUSINESS AFRICA

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PALSGAARD ® ACIDMILK SERIES

Yes!

Now everyone can enjoy delicious yoghurts

Shelf-stable ambient yoghurts are the future of the category. Bring the joys of creamy, fruity yoghurts to consumers all over your market. By using the Palsgaard® AcidMilk series of emulsifier and stabiliser blends in your yoghurt production, you can produce shelf-stable products that are easier to distribute and not reliant on a stable cold-chain. The Palsgaard® AcidMilk series works for set, stirred and drinkable yoghurts.

BRINGING GOOD THINGS TOGETHER

 Simplify your distribution chain  No UHT process required  Maximise your products’ shelf-life Find out more at www.palsgaard.com/ambientyoghurt

MARCH 3-4, 2022 HYBRID SUMMIT - PHYSICAL IN NAIROBI, KENYA & VIRTUAL ACROSS AFRICA & THE WORLD

DISCOVER THE FUTURE OF SUSTAINABLE FOOD AND AGRICULTURE INDUSTRY IN AFRICA Sign up to Attend the first pan-African high-level summit on mainstreaming sustainability in Africa's food and agriculture value chains. Join private sector food industry leaders, Government ministries and agencies, non-profit and academic/research institutes as they share their goals, strategies and policies to create a better planet, enable vibrant local communities and improve prosperity in the communities they operate in.

Vibrant Local & Inclusive Economy

Leadership, Strategy, Policy & Governance

Renewable Energy Transition

Cleaner, Circular Economy

New Food Technologies & Digitalisation

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CONFIRMED SPEAKERS

ASHISH PANDE

Managing Director & Senior Vice President, Olam Nigeria

JUSTIN ARCHER

COO East Africa & Group Head of Sustainability, Sucafina SA

ESSAM EL-MADDAH

ROZY RANA

Managing Director, Dormans Coffee

BRETT THOMPSON

Co-Founder & CEO, Mzansi Meat

MERIJN GORIS

HR & General Secretary Director, Danone Egypt & North East Africa

CEO, Holland Dairy, Ethiopia

NICO ROOZEN

OLUGBEMINIYI (BEMI) IDOWU

Honorary President, Solidaridad Network

Managing Director, Talking Drum Communications

EDITORIAL

Welcome back to AFMASS Food Expo, Eastern Africa’s most outstanding food industry trade show

Year 9 | Issue 5 | No.48 • ISSN2307-3535

FOUNDER & PUBLISHER Francis Juma EDITORIAL Catherine Wanjiku | Paul Ongeto ADVERTISING & SUBSCRIPTION Jonah Sambai | Hellen Mucheru DESIGN & LAYOUT Clare Ngode PUBLISHED BY: FW Africa 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. 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.

NOV/DEC 2021 | FOOD BUSINESS AFRICA

fter a one-year hiatus due to covid-19 pandemic, AFMASS Food Expo is back in town. We can all agree that 2020 was difficult year for both businesses and individuals. The pandemic ravaged economies world over with a significant number of businesses, both large and small, winding down their operations. The border closures implemented by governments worldwide meant that our annual AFMASS Food Expo that was planned set to take place in Uganda - could no longer take place. A year later, progress in combating the pandemic has been made. Vaccinations are at an all-time high even in emerging economies and markets are recovering at a rate no one had envisioned when the pandemic was at its peak. We can safely go back to work, take international flights for business and leisure trips, even bars and clubs are finally open for those who like to loosen up once in a while. As life returns to normalcy, its finally time to hit the ground running and bring back Eastern Africa’s most outstanding food industry trade show. Those interacting with our magazine for the first time, the AFMASS Food Expo is Eastern Africa’s most outstanding food industry trade show that brings together local, regional and international food manufacturers, retailers, distributors, wholesalers, exporters, importers and other stakeholders in the food, agriculture and hospitality sectors to trade, discover and network. For the past editions, AFMASS has majorly focused on the Businessto-Business side, connecting food manufacturers to suppliers and discussing topical issues affecting the food industry as a whole. The 2021 edition expands the scope further and will showcase the broadest array of packaged food products from

East Africa, Africa and the World as well as the latest food ingredients; milling, packaging and processing technologies; laboratory, supply chain and other technologies to Africa’s food and feed manufacturing, retail and the hotel, restaurant and catering (HORECA) industry. We expect more than 5000 attendees to attend the 2021 event from Eastern Africa (Kenya, Uganda, Tanzania, Rwanda, Burundi, Somalia, DRC, Ethiopia, Sudan, South Sudan), other countries in Africa and the World. The Africa Food Industry Excellence Awards – Africa’s respected food industry awards and gala dinner – will also be hosted on the sidelines of this year’s AFMASS Food Expo. Whether you an investor, a food production specialist, a supplier of food ingredients or equipment, or just a food enthusiast, the 2021 AFMASS Food Expo is the place to be. You can join us at the event to be hosted LIVE and VIRTUALLY on December 2-4, 2021, at the Sarit Expo Centre, Westlands, Nairobi. In this issue, we highlight the story of Simplifine, a Kenya-based startup transforming how food is grown, made and delivered in Africa. We also bring you the latest innovations from Naturelock, another company focused on convenience foods. Its ready-to-eat green grams Dengus are a tasty must have for the on-thego consumer. We also look at the recent dairy investments in Africa and current trends in cider and snack processing as well as an article on mind health that will make you review your approach to diet. We wish you a good read. Francis Juma Publisher

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AFRICA

Dairy&Drink INNOVATIONS SUMMIT & EXPO

SUSTAINABILITY • TECHNOLOGY • INNOVATIONS

DATE: JUNE 9-10, 2022 HYBRID EVENT: NAIROBI, KENYA & VIRTUALLY FROM EVERYWHERE AROUND THE WORLD

TWO DAYS OF IMPACTFUL LEARNING & NETWORKING VIRTUAL & LIVE EVENTS FOR AFRICA’S DAIRY, SOFT & ALCOHOLIC DRINK INDUSTRY

FORMULATIONS MANAGEMENT

INVESTMENTS & FINANCING

SUSTAINABILITY ENERGY, WATER, WASTE

AGRICULTURE & AGRIBUSINESS DEVELOPMENT

PROCESSING, PACKAGING & AUTOMATION

LOGISTICS & SUPPLY CHAIN

WWW.AFMASS.COM/DAIRYDRINK

QUALITY & FOOD SAFETY

MARKETING, BRAND & RETAIL MANAGEMENT

EVENTS CALENDAR

December 2-4, 2021 AFMASS Food Expo Nairobi, Kenya Focus: Food, Beverage & Milling www.afmass.com

January 6, 2022 International Soft Fruit Conference Hertogenbosch, Netherlands Focus: Horticulture https://softfruitconference.com/

March 3-4, 2022 Africa Food Sustainability Summit 2022 Nairobi, Kenya Focus: Sustainability https://www.foodbusinessafrica.com/ green/

December 3, 2021 Africa Food Industry Excellence Awards Nairobi, Kenya Focus: Food, Beverage & Milling www.awards.foodbusinessafrica.com

January 8-10,2022 Indusfood-Tech Greater Noida, India Focus: Food & Beverage https://indusfood.co.in/

December 2–4, 2021 Drink Technology India Gujarat, India Focus: Beverage https://www.drinktechnology-india. com/en/

January 25 – 27, 2022 International Production & Processing Expo Atlanta USA Focus: Food and Beverage https://www.ippexpo.org/

December 7-8, 2021 The Africa Sugar Conference Kampala, Uganda Focus: Sugar https://informaconnect.com/africasugar/ December 9-11, 2021 Vinexpo India New Delhi, India Focus: Wine https://www.vinexposium.com/en/ vinexpo-india/ December 11-14, 2021 Aquaculture Africa Alexandria, Egypt Focus: Aquaculture https://www.was.org/meeting December 12-14, 2021 Food Africa Cairo Cairo, Egypt Focus: Food & Beverage http://www.foodafrica-expo.com/

February 18-20, 2022 Tanzfood Arusha, Tanzania Focus: Food & Agriculture https://www.tanzfood.com/

January 30-2 February, 2022 ISM Cologne Cologne, Germany Focus: Sweets and Snacks https://www.ism-cologne.com/

March 13-15, 2022 Seafood Expo North America Boston, USA Focus: Seafood https://www.seafoodexpo.com/northamerica/ March 15-17, 2022 Morocco FoodExpo Casablanca, Morocco Focus: Food & Beverage http://www.moroccofoodexpo.com/

February 3-5, 2022 MeatEx Canada Toronto, Canada Focus: Meat, Poultry and Fish https://meatexcanada.com/

March 21-23, 2022 IFE Manufacturing Solutions London, UK Focus: Food & Beverage https://www.ifemanufacturing.co.uk/

February 13-17, 2022 Gulfood Dubai, UAE Focus: Food and Beverage https://www.gulfood.com/ February 16-18, 2022 Dairy Livestock & Poultry Expo Africa Nairobi, Kenya Focus: Dairy https://www.dlpexpo.com/africa/eventinfo/

May 19-21, 2022 Africa Food Safety & Quality Summit Addis Ababa, Ethiopia Focus: Food Safety https://www.foodsafetyafrica.net/ summit/ May 19-21, 2022 AFMASS Food Expo Ethiopia Edition Addis Ababa, Ethiopia Focus: Food & Beverage https://www.afmass.com/et

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AFMASS FOOD EXPO 2021 IS HERE!!

As the African continent seeks a new way forward towards normalcy, food businesses are seeking new ways to engage with thir consumers, partner customers, suppliers and Government agencies involved in the sector. While businesses have been hit hard by the Covid-19 pandemic in many ways, supply chain challenges continue to way heavily on the sector, worsening dimmed demand for packaged food products in some of the sectors of the industry. In this kind of scenario, a regional event that is focused on the food industry in Africa is the perfect platform to discover new ways to cope with the challenging times, while looking for new opportunities for investments and innovation. AFMASS Food Expo is Eastern Africa’s most outstanding food industry trade show that brings together local, regional and international food manufacturers, retailers, distributors, wholesalers, exporters, importers and other

NOV/DEC 2021 | FOOD BUSINESS AFRICA

stakeholders in the food, agriculture and hospitality sectors to trade, discover and network. Set to be hosted LIVE and VIRTUALLY on December 2-4, 2021 at the Sarit Expo Centre, Westlands, Nairobi, the 9th edition of the AFMASS Food Expo will showcase the broadest array of packaged food products from Kenya, East Africa, Africa and the World to a local, regional and international audience. It will also showcase the latest food ingredients; milling, packaging and processing technologies; laboratory, supply chain and other technologies to Africa’s food and feed manufacturing, retail and the hotel, restaurant and catering (HORECA) industry. AFMASS Food Expo is the best platform for stakeholders across the food and agriculture value chain from Eastern Africa who are seeking new business opportunities as the region seeks new avenues to take advantage of the

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opportunities brought by the Covid-19 pandemic. It is also the place where food companies and technology providers choose to introduce their new product and technology innovations and ideas. Look forward to 3 days of lively, interactive food tasting and cooking sessions, engaging panel discussions and presentations and unique networking with leading industry leaders, investors, Government and NGO agencies, researchers and consultants from Eastern Africa and the whole world, who will access the event live in person and virtually. Sponsored by leading technology supplier companies Kerry, Alapala, Palsgaard, Promaco, IMCD; and some of the most innovative food companies such as Dormans Coffee, Canna Flour, Daawat rice, Broadway bread, Bakex Wheat Flour and Kericho Gold Teas, the event is set to break attendance records in the region.

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Pan-African focused events AFMASS Food Expo events have been taking place since 2015, with past editions of the events held successfully in Kenya, Tanzania and Zambia. The 2021 edition of AFMASS Food Expo has introduced a number of changes to improve the impact and influence of the event in Eastern Africa – transitioning the event to be the largest trade show for food products and new technologies for the food and agriculture sector in Africa. The Africa Food Industry Excellence Awards – Africa’s respected food industry awards and gala dinner – will also be hosted on the sidelines of this year’s AFMASS Food Expo. More than 5000 attendees are expected to attend the 2021 event from Eastern Africa (Kenya, Uganda, Tanzania, Rwanda, Burundi, Somalia, DRC, Ethiopia, Sudan, South Sudan), other countries in Africa and the World.

NOV/DEC 2021 | FOOD BUSINESS AFRICA

PARTNERS

Kerry Taste & Nutrition is the global leader in the development of taste and nutrition solutions for the food, beverage and pharmaceutical markets. Its broad technology foundation, customer-centric business model, and industry-leading integrated solutions capability makes Kerry the co-creation partner of choice.

Alapala offers a wide range of modernization services, including the redesigning of milling diagrams and flow sheets, replacement of existing equipment for better performance and improved efficiency, and integration of new solutions and technologies. Address: 7th Floor Block 1, Eden Square Complex, Chiromo Road, Westlands Telephone: +254 741 165778 Email Address: benjamin.odongo@alapala.com Website: www.alapala.com

Address: Crater Auto building | Mombasa Rd|South C| Nairobi | Kenya Telephone: 0793326878 Email Address: regis.manyange@kerry.com Website: www.kerry.com

Promaco is a Kenya-based company involved in the supply of speciality food, dairy ingredients and processing equipment in East Africa. Address: Africa Reit House Dagoretti Road, Nairobi, Kenya

Telephone: +254 733 556 571 Email Address: info@promaco-ea.com Website: www.promaco-ea.com

Palsgaard is a specialist in the manufacture of emulsifiers and stabilisers for bakery, confectionery, dairy, ice cream, margarine, mayonnaise and dressings.

NOV/DEC 2021 | FOOD BUSINESS AFRICA

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Address: 1st Floor, ALN House,

some are naturally caffeine free.

Address: Baba Dogo Road, Off Thika Road Allied Industries Go Downs, Warehouse No 9.

Eldama Ravine Close, Off Eldama Ravine Rd, Nairobi

Telephone: +254 724 704 944 Email Address: dm.kenya@ palsgaard.co.za Website: www.promaco-ea.com

Dormans offers a wide variety of coffee blends to meet the different taste profiles of their customers, both local and the world over.

Telephone: +254 722 205 583 Email Address: info@goldcrown. co.ke

Website: www.kerichogold.com

Address: Tatu Industrial Park Telephone: +254 67 586 3000 Email Address: sales@ IMCD Group is a global leader in the distribution and formulation of speciality chemicals and ingredients, providing solutions to its partners. Address: C&S House, Old Mombasa Road

dormanscoffee.com Website: www.dormanscoffee.com

Broadways Group of Companies is primarily a milling

Telephone: +254 (0) 20 06 12 310189

Email Address: dm.kenya@ palsgaard.co.za Website: www.imcdgroup.com

Malbros trading as Mjengo Limited, is a Kenyan diversified food processor with a focus on the grains, biscuits and snack products.

Address: Thika, Kenya Telephone: +254 (020) 2055510/1 Email Address: admin@mjengo.

and baking organisation in Kenya that has been producing fresh, highquality and great-tasting flour and bread products for over 50 years. Address: Township, Thika

Telephone: +254 (0) 720504309 Email Address: info@broadway. co.ke

Website: www.broadway.co.ke

com

Website: www.www.mjengo.com Giant Millers Limited is a Kenya based company that processes, produces and sells maize flour (Canna Maize Meal)

Bakex is a leading producer of wheat flour and wheat meal products in Kenya.

Address: Giant complex, Ngoingwa, Off Thika Superhighway, Thika, Kenya

Telephone: +254 702 777 555 Email Address: info@giantmillers. co.ke

Website: www.giantmillers.co.ke

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Address: Off Garissa Road Malbros is a Premium Blend of Pure Kenya Tea, we also have the new Fruit and Herbal Infusions that come in different tastes and flavour,

Thika

Telephone: +254 717 080 024 Email Address: info@bakex.co.ke Website: bakex.co.ke

NOV/DEC 2021 | FOOD BUSINESS AFRICA

NEW FOOD PRODUCT INNOVATIONS

Bread Flour Bakex Millers Limited Bakex millers has expanded its flour range to include bakers flours for home bakers. Customers have the option of either choosing the Bakex white bakers flour or the Bakex wholemeal bakers flour all of which offer flexible dough handling quality and produces bread that has ample volume and an excellent crumb structure. The flours are available in 2kg packs in leading retail stores in Kenya.

www.bakex.co.ke

Heroes Crisps Tropical Heat Group Tropical Heats has expanded its range of potato crisps to include a fresh new range dubbed Heroes Chips. The airy, light perfectly textured crisps are available in six different flavours including Cheese & Onion, fruit chutney, salt & vinegar, sweet chilli, and Tomato & Ketchup. For every 40g pack you buy, Tropical Heat has committed to use part of the proceeds to fund impact projects to help people across the country better their lives.

www.tropicalheatgroup.com

Excel Chemicals Reload Orange Isotonic Reload Isotonic is the latest addition to Excel Chemical’s broad range of beverages. The drink is a perfect blend of water, carbohydrates, and electrolytes. It contains a high concentration of carbohydrates emerging from sources like fructose and is also enriched with Vitamin C to boost Immunity. RELOAD is available in two variants i.e. Lemon and Orange and in two size formats i.e 250ml and 500ml.

www. excel.co.ke

NOV/DEC 2021 | FOOD BUSINESS AFRICA

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Motomoto sausages Daiichi Farm Motomoto Sausages is the recent product to be launched from Kenya-based animal protein producer Daichi Farm. The pork sausages come in a 10 pack and are targeted at the price sensitive buyer. In addition to the motomoto sausages, Daichi has also expanded its Bacon range to include Happy bacon steaky and happy bacon collar. All the products are available online on the firms website and some select stores in Nairobi.

www.daiichionline.co.ke

Reactor Simba energy drink Bidco Africa Limited The Reactor Simba energy drink is the latest addition to Bidco Africa’s portfolio of food and beverages. Bidco says its Reaktor Simba is enriched with B Vitamins, caffeine and specially formulated ingredients to provide energy to muscles and brain! The drink is available in 300ml bottles at recommended retail price of Ksh25 (US$0.22).

www.bidcoafrica.com

Agventure Limited Pure Mountain Canola Honey The Pure Mountain canola honey is a pure natural honey produced by Kenya based Agventure Limited. Its referred to as Canola Honey as nectar and pollen from the canola plant is used by the bees to make the viscous cream-colored sweetener. Packaged in 330g glass bottles, the product promises consumers a new kind of honey that is fairly white in color, with an aroma that is similar to cabbage and a taste that is much more delightful.

www.mountain.co.ke

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NOV/DEC 2021 | FOOD BUSINESS AFRICA

OCTOBER 13-15, 2022 LUSAKA, ZAMBIA

NOV/DEC 2021 | FOOD BUSINESS AFRICA

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GRAB THE OPPORTUNITIES IN ZAMBIA’S FOOD INDUSTRY Zambia’s general food, dairy, beverages, milling and other sectors such as meat and fresh produce sectors offer some of the most high potential investment opportunities in Southern Africa. With a growing, fast-urbanising population, Zambia is a leading light in the region, as local, regional and international investors flock in to add value to its vast agricultural produce and manufactured foods. Join us on the journey of discovery of Zambia, as we host our third edition of AFMASS Food Expo Zambia - the only regular, pure-play food industry trade expo and conference in Zambia. Sign up today to Sponsor, Exhibit, Attend or Speak at AFMASS Food Expo Zambia.

www.afmass.com/ZM

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NOV/DEC 2021 | FOOD BUSINESS AFRICA

NEWS UPDATES by www.FoodBusinessAfrica.com MERGERS AND ACQUISITIONS

Unilever to sell struggling tea business to CVC Capital Partners for US$5B

UK - British multinational consumer goods company, Unilever Plc has agreed to sell its global tea business to CVC Capital Partners for 4.5 billion euros (US$5.1 billion).

Unilever started reviewing its tea business almost two years ago after sales slipped as many consumers switched to alternatives such as kombucha, coffee, and herbal tea. The business being sold, called Ekaterra, hosts a portfolio of 34 tea brands including Lipton, PG Tips, Pukka Herbs, and TAZO. It generated revenues of 2 billion euros in 2020. Ekaterra will be sold to CVC’s Capital Fund VIII on a cash and debtfree basis in a process that is expected to conclude in the second half of 2022,

Unilever said in a statement Unilever’s tea operations in India and Indonesia tea operations along with its bottled tea joint venture with EKATERRA HOSTS A PORTFOLIO OF 34 TEA BRANDS INCLUDING LIPTON AND PG TIPS. PepsiCo will however not be sold and will continue to be part of the group’s food division.

SUSTAINABILITY

AfDB issues US$10m equity investment to ARCH Cold Chain Solutions East Africa Fund to curb food waste EAST AFRICA – ARCH Cold Chain Solutions East Africa Fund (CCSEAF) has received a US$10 million equity investment from the African Development Bank. The investment will be channelled towards development, construction and operation of greenfield cold storage, temperature-controlled solutions and distribution facilities in East Africa. The Fund will develop and operate

as many as eight cold chain operations in Kenya, Tanzania, Ethiopia, Uganda, and Rwanda in partnership with

conglomerates in the region. This is aimed to reduce postharvest losses, and the spoilage of processed food and medicines caused by a lack of temperature-controlled solutions. FAO estimates that food losses in sub-Saharan Africa add up to US$4 billion annually, majorly occurring between harvest and the point of sale – very little is wasted by consumers after purchase.

SUSTAINABILITY

Arla Foods to invest US$4.6B in the next 5 years to boost sustainable dairy production said it is prepared to increase its investments by more than 40% to over €4 billion (US$4.6 billion) in the next five years to support sustainable dairy across its value chain.

Dutch multinational dairy cooperative, Arla Foods has unveiled a five-year strategy to bolster its commitment to become a net-zero business by 2050. The farmer-owned dairy cooperative

DENMARK -

NOV/DEC 2021 | FOOD BUSINESS AFRICA

ARLA HAS PLEDGED A FURTHER US$1.1B TO SUPPORT FARMER OWNERS ON THEIR SUSTAINABLE JOURNEY The investment, according to Arla, will be channeled to sustainability initiatives, digitalization, new

production technologies, and product development. Arla has also announced a new retainment policy allocating a higher additional payment of €1 billion (US$1.1 billion) over the next strategy period to support its farmer owners on their sustainability journey. The new investment builds on a commitment by Arla farmers to accelerate their reduction of greenhouse gas emissions toward the science-based 30% goal in 2030.

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CELEBRATIONS

DECEMBER 3, 2021

SARIT EXPO CENTRE, NAIROBI, KENYA

IT ALL HAPPENS HERE. JOIN US AT THIS YEAR'S MOST PRESTIGIOUS AWARDS CEREMONY & GALA DINNER

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Send Attendance queries to: TEL: +254 725 343 932; INFO@FWAFRICA.NET

www.foodbusinessafrica.com/excel/ NOV/DEC 2021 | FOOD BUSINESS AFRICA

NEWS UPDATES

BRIEFS Sierra Leone’s fruit beverage maker Capitol Foods launches country’s first cocoa processing plant

SUSTAINABILITY

Seven-Up Bottling Company to beef up solar power generation with additional 10.5MW system

SIERRA LEONE – Capitol Foods, one of

Sierra Leone’s leading agribusiness company, has launched a cocoa processing plant with an annual production capacity of 4,000 metric tons of cocoa paste. The unit, first of its kind in the country, is eyeing the export market to supply the chocolate maker’s abroad with the semi-processed product. Sierra Leone harvests an average of 15,000 tonnes of cocoa per year and the plant will obtain raw material from a network of 2,831 cocoa producers. The new venture has availed an opportunity for Capitol Foods to further diversified its operations from solely focusing on beverage manufacturing. The company produces bottled water and fruit juices under the famous brand name Sierra, using locally grown fruits.

Dairibord invests US$2 million to double UHT filling capacity of cartonised beverages ZIMBABWE – Zimbabwe’s leading milk processor, Dairibord Holdings, has invested US$2 million in additional Ultra-High Temperature (UHT) filling and packing equipment, which will double capacity for cartonised beverages by year-end. Recently, the food processing company invested about US$1.5 million into an ammonia plant, which has since been commissioned and the technology was expected to see growth in icecream production, improving product portfolio mix and margin performance going forward. The milk giant is geared to take full advantage of the high demand in the local market through increasing its production capacity and forward planning for inputs and raw materials. 24

NOV/DEC 2021 | FOOD BUSINESS AFRICA

NIGERIA – Seven-Up Bottling Company Plc, the bottler of PepsiCo soft drink brands in Nigeria, is set to become the country’s largest industrial manufacturer to power its operations with solar energy by committing to install a further 10.5 MW of generation capacity within six months. The beverage maker has entered into an agreement with Daystar Power, the provider of solar power solutions to West Africa’s industrial manufacturers, to install solar power systems at five of its factories across Nigeria.

This will be an addition to the 1.5MW solar power systems installed at two of its bottling plants earlier in the year, bringing the total installed solar power capacity to 12MW. Under the first project, Daystar installed 450kW and 990kW solar systems at the rooftops of SBC’s Kaduna and Kano factories respectively. With the two solar power systems, SBC will offset a combined 24,224 MT in CO2 emissions over the installations’ twenty-year lifetime and save up to 40% on its power costs. Both companies are in discussion to roll out solar energy as the WITH THE TWO SOLAR POWER SYSTEMS SBC WILL SAVE UP TO 40% ON ITS POWER COSTS primary daytime power source at SBC’s nine sites in Nigeria, making it the country’s largest industrial manufacturer to use solar energy in its operations.

NEW TECHNOLOGY CENTER

Leading flexible packaging solution provider UFlex opens new factory in Nigeria NIGERIA – UFlex Limited, a multinational provider of comprehensive solutions in flexible packaging and global leader in polymer sciences, has commissioned a new facility in Nigeria. The new BOPET film manufacturing plant in the Ogun State, with a production capacity of 45,000 TPA is aimed to enable the India headquartered company to get closer to its customers. Spread over 37 acres, the plant houses first-of-its-kind 10.6-meter wide BOPET film line in Africa and also has two Metallizers with a total

production of 15000 TPA. The plant is set to cater to the packaging film demand coming from the fast-growing economy of Nigeria, the larger Western Africa region and USA. It has created over 200 direct jobs. FOODBUSINESSAFRICA.COM

INVESTMENTS

Nigerian spice processor Agricorp diversifies operations into poultry farming

NIGERIA – Agricorp International, one of Nigeria’s fast growing agroprocessing companies has deepen its portfolio to include livestock production, processing and eventual export. The company has invested US$9m into acquiring 142 poultry pens across three states, with the aim to boost local poultry production by at least three million poultry birds per annum.

According to a 2019 report by the Central Bank of Nigeria, it was estimated that over 1.2 million metric tonnes of poultry meat were smuggled into the country from the Benin Republic. This indicates that there is a huge gap in the poultry market and Agricorp is ready to contribute its quota to the efforts to close the gap. “Investing US$9m across Kwara, Kogi and Nasarawa states will boost local poultry production by at least 3 million poultry birds per annum. At kick-off, the project will create a minimum of 1,500 jobs and slightly to ease the pressure on foreign exchange caused by the importation of poultry into the country,” Agricorp’s CoFounder and CEO, Kenneth Obiajulu,

said. Under the project, Agricorp has set an ambitious goal of producing 40 million poultry birds by 2025, which will represent approximately 4% of the projected annual demand.

The company is confident it will achieve the set target as it plans to build over 1,000 poultry pens with a projected capacity of 10,000 birds each.

FUNDING

Egyptian grocery delivery platforms raise funds to fuel expansion the technology behind its ‘pocket supermarket’ app, and grow its team as it gears up to expand its extensive grocery delivery service across SubSaharan Africa. Through its iOS and Androidenabled app, Breadfast offers scheduled and on-demand delivery of groceries and other household essentials.

EGYPT – Breadfast, a grocery delivery startup in Egypt, has raised a US$26 million Series A funding round to expand into new cities, scale its technology, and move into SubSaharan African markets. The new financing will fuel Breadfast’s rapid expansion into eight new cities across Egypt, scale FOODBUSINESSAFRICA.COM

THROUGH ITS IOS AND ANDROID ENABLED APP, BREADFAST OFFERS SCHEDULED AND ONDEMAND DELIVERY OF GROCERIES AND OTHER HOUSEHOLD ESSENTIALS

Egyptian inventory-led on-demand delivery venture raised US$11 million in pre-seed funding, a new record for the fundraising stage in Africa and the Middle East. Promising grocery delivery in under 20 minutes, Rabbit is set to transform the future of retail. Running on tech-enabled hyper-local fulfillment centers, the company is able to give consumers peace of mind, knowing what they order will never be out-of-stock and guaranteeing it arrives in under 20 minutes.

Deliveries are currently offered in under 60 minutes, with the company planning on bringing that down to 20 minutes by utilising a portion of the new funding to grow its web of dark stores. Meanwhile, RabbitMart, an NOV/DEC 2021 | FOOD BUSINESS AFRICA

NEWS UPDATES

BRIEFS FrieslandCampina builds mobile plant for long shelf-life yogurt production in Nigeria

NIGERIA – Dutch multinational dairy cooperative FrieslandCampina, is strengthening local dairy production in Nigeria by building a mobile yoghurt plant. The facility will enable the company to process milk from local dairy farmers into long-life yoghurt drinks. Expected to begin operations during the first quarter of 2022, it will start with a processing capacity of 1.8 million kilograms of milk and can annually produce more than 18 million pouches of drinking yogurt. The plant consists of five interlinked containers and was built by Scherjon Dairy Equipment and Onesto Construction in Surhuisterveen and Drachten (Netherlands) respectively.

THE NEW FACILITY WILL START WITH A PROCESSING CAPACITY OF 1.8 MILLION KILOGRAMS OF MILK AND CAN PRODUCE UP TO 18M POUCHES OF DRINKING YOGURT ANNUALLY The five 40 ft containers will soon be shipped to Nigeria. As soon as the containers arrive at their destination, they will be interlinked, and yoghurt production can be started. The project is part of the Dairy Development Programme that supports local farmers to increase their milk production, improve the quality of the milk and offer them access to the market.

NOV/DEC 2021 | FOOD BUSINESS AFRICA

MERGERS AND ACQUISITIONS

Heineken to buy Distell, Namibia Breweries in Africa expansion

SOUTH AFRICA – Heineken, the world’s second-largest beer manufacturing company has made a €2.2 billion (US$2.52 billion) offer for Africa’s leading producer and marketer of ciders, flavoured alcoholic beverages, wines and spirits. The acquisition of Distell will enable the beer maker to explore new categories, adding to its portfolio brands such as Amarula, Hunter’s, Savanna, 4th Street, Klipdrift, Nederburg, Richelieu, Viceroy, and J.C. Le Roux. In addition, it will extend and stamp Heineken’s presence in other African markets such as Botswana, Lesotho, Namibia, Eswatini, Nigeria, Ghana, Mozambique, Zambia and Kenya, where Distell has set base. “This partnership has the potential to leverage the strength of Heineken’s global footprint with our leading brands to create a formidable, diverse beverage company for Africa,” said Richard Rushton, Distell CEO. Spicing up the deal, Heineken intends to acquire control of Namibia Breweries Limited (NBL), the beer market leader in Namibia. At completion of the deal with a cash pay-out of approximately €1.3 billion (US$1.58 billion) for the transactions involving Distell and NBL, the Dutch brewer will

contribute these acquired assets plus its 75% directly owned shareholding in Heineken South Africa and certain other fully owned export operations in Africa, into an unlisted public holding company referred to as Newco. Heineken will own a minimum of 65% of Newco with a total investment of approximately €2.5 billion (US$2.86 billion), with the remainder held by Distell shareholders who elect to reinvest. AT COMPLETION OF THE DEAL, THE DUTCH BREWER WILL TRANSFER ITS ASSETS IN SOUTH AFRICA TO A NEW COMPANY REFERRED TO AS NEWCO Combination of the businesses will have a significantly strengthened and complementary route to market in South Africa and Namibia, with further growth opportunities across Southern Africa. It will also bundle up route-tomarkets and portfolios in export countries, to increase efficiency and capture additional growth, especially in attractive markets like Kenya and Tanzania, and explore wider opportunities to grow the acquired cider and beer brands, such as Savanna and Windhoek, outside their home markets. FOODBUSINESSAFRICA.COM

FUNDING

Kenya’s Twiga clinches US$50m to launch own branded products, boost traceability

Twiga Foods, a Kenyan based business to business food distribution company, has closed its US$50 million Series C funding round as it looks to scale its efforts in the East African nation and other neighbouring countries. The funding round was led by private equity firm Creadev and saw participation from repeat investors such as Arica-focused firms TLcom, IFC Ventures, DOB Equity, and Goldman Sachs’ spinoff Juven. Firsttime investors OP Finnfund Global and Endeavor Catalyst Fund participated as well. Twiga plans to use part of

KENYA –

the funding to roll out low-cost manufactured food and non-food products under its brand before the end of the year. “We see ourselves as building a one-stop-shop for the informal retailer and all their needs. So that’s what we’re evolving into as a business,” CEO Peter Njonjo said. For most of its operational history, Twiga has been connecting vendors and outlets with farmers via an app to access different agricultural produce. THE PROOF OF CONCEPT AIMS TO REDUCE THE PRICE CONSUMERS PAY FOR POPULAR DOMESTIC PLANTBASED FOOD PRODUCTS Njonjo affirms that smallholder farmers remain at the core of Twiga’s operations. But having worked with them at scale and distributing fresh produce over the years, the Kenyan company has identified some challenges, especially in the traceability of some produce like tomatoes.

To avoid situations like this in the future, Twiga plans to personally handle the value chains of some produce where traceability can be an issue. The company has highlighted it is investing in a proof of concept to develop an alternative way of producing food on the continent and cover both ends of traceability and mass scale. The proof of concept aims to reduce the price consumers pay for popular domestic plant-based food products by over 30%. The funding raised will be used to test the concept out, where it will act as an off-taker to sell horticultural crops from February 2022 across East Africa.

FUNDING

Ugandan poultry farm Sekajja Agro clinches US$1.8m investment from Yield Uganda Investment Fund

UGANDA – Sekajja Agro Farms Limited (SAF), a Ugandan based poultry firm, has received US$1.8 million blended equity and long-term

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debt from Pearl Capital Partners’ managed fund, the Yield Uganda Investment. This is the fund’s tenth investment in the Ugandan agribusiness sector, to include US$1.54 million investment in AMFRI Farms, a pioneering organic farming; and US$2.5 million support to Pura Organic Agro Tech Ltd, on the cassava value chain. SAF’s main operations entails rearing of day-old-chicks (DOCs) until maturity and the distribution of the mature birds as live birds and dressed chicken in the informal and formal markets, respectively. The business also runs a feed mill,

an abattoir, a cold chain and branded retail outlets. Yield Fund’s investment will facilitate the company’s expansion plans which include scaling up its poultry production facilities and constructing a new feed mill. The investment will also finance the expansion of SAF’s dressed chicken segment, covering the installation of a larger modern automated abattoir, cold chain facilities and spreading the footprint of SAF’s branded distribution outlets.

NOV/DEC 2021 | FOOD BUSINESS AFRICA

MARCH 9-11 2023 ADDIS ABABA ETHIOPIA

NOV/DEC 2021 | FOOD BUSINESS AFRICA

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DISCOVER ETHIOPIA’S FOOD INDUSTRY Join us on the journey of discovery of Ethiopia, as we host the first regular, pure-play food industry trade expo and conference in Ethiopia - AFMASS Food Expo Ethiopia. Africa’s fastest growing economy, Ethiopia’s food, dairy, beverage, milling and other sectors have seen tremendous growth over the last 10 years - and more is on the way, as Ethiopia seeks to boost local processing and increase regional and global markets for its vast produce. Sign up today to Sponsor, Exhibit, Attend or Speak at AFMASS Food Expo Ethiopia.

www.afmass.com/ET

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NEWS UPDATES

INVESTMENT

Egypt to build US$33m silo to boost grain storage by 100,000 tonnes

EGYPT – General Company for Silos and Storage (GCSS), Egypt’s stateowned manufacturer, trader and distributor of grains has inked a US$33 million deal with Rowad Modern Engineering for the construction of a grain silo in the west of the city of Port- Said. The new facility, with a storage capacity of 100,000 tonnes of grain is aimed to improve port storage of wheat, the main staple food purchased by the country. Further streamlining operations at the storage areas, the Egyptian Holding Company for Silos and Storage (EHCSS), recently partnered with multinational technology corporation, IBM and Egypt based integrator of technological systems, ACME SAICO, to automate 22 wheat silos across the country. The storage units will be powered by IBM’s AI-powered automation software in a hybrid cloud environment. This will enable EHCSS to monitor and store all information related to the incoming shipments to maintain quality standards, report accurate views of the stock in silos, as well as address leakage in wheat silos extensively. The system is also designed to manage communication and coordination between different storage points, and mills. 30

NOV/DEC 2021 | FOOD BUSINESS AFRICA

INVESTMENT

Cargill finalizes establishment of Africa’s single largest cocoagrinding plant in Ivory Coast IVORY COAST – Global food corporation, Cargill, has completed a US$100 million expansion of its cocoa processing facilities in Yopougon, Ivory Coast. The major undertaking which has been in the making for the past two years, adds significant volumes to the company’s cocoa-grinding capacity. The upgrades also included infrastructure enhancements and safety improvements, increased production capacity at the site by 50 percent, making the Yopougon facility the single largest cocoa-grinding plant in Africa. Notably, a significant share of the plant’s additional processing capacity will supply high demand, dark brown cocoa powders.

THE UPGRADES INCREASED PRODUCTION CAPACITY AT THE SITE BY 50% MAKING THE YOPOUGON FACILITY THE SINGLE LARGEST COCOA GRINDING PLANT IN AFRICA “Consumers, especially in Eastern European, Middle Eastern and African markets, are increasingly drawn to bakery and confectionery products with the strong, chocolatey visual appeal made possible by rich, deep brown cocoa powders. “With the new technology installed at our Yopougon plant, we’re now better equipped to supply the full range of our customers’ needs, from delicate light to intensely dark Gerkens cocoa powders,” said Niels Boetje, Cocoa managing director for Cargill’s Cocoa & Chocolate business. As part of its commitment to the growth of the sector, Cargill will invest an additional US$13 million to support local sustainability and traceability efforts, aimed to create stronger and more resilient cocoafarming communities in Ivory Coast.

BRIEFS Nestle unveils Africa’s first AI powered technology reducing carbon emissions, recycles wastewater

SOUTH AFRICA – Nestle is leveraging on science, technology and innovation to make its sustainability goals a reality. The food giant through its East and Southern Africa Region operations has unveiled an industrial scale pilot project that has successfully tested a global-first, Artificial Intelligence technology in Africa, reducing emissions and saves water at its Babelegi factory in Pretoria. The project is a partnership with The Emissions Capture Company (ECCO) using its proprietary WhiteBoxTM technology, a machinelearning based system that captures Scope 1 carbon dioxide (CO2) emissions and recycles wastewater. The WhiteBoxTM which has been in successful operation for over 8,000 hours, captures CO2 from flue gas emissions, recycles industrial wastewater and creates sustainable green products. The green products can be sold directly for animal feed, human food, consumer goods, cosmetics and pharmaceuticals or used to eliminate sulphur dioxide (SO2) emissions without the need for water.

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FUNDING

South African artisanal cheese maker Fairview Cheese Company gains equity investment from EXEO Capital

SOUTH AFRICA – South Africa’s leading artisanal cheese producer, Fairview Cheese Company, has welcomed a new partner in its business, EXEO Capital through its newly formed food sector investment vehicle, Nurture Foods. The Fairview Cheese Company was established in 1980 by the Back family and produces more than 50 cheese varieties from cow and goat milk. Without disclosing the invested

amount, EXEO Capital revealed that the Back family retains a significant stake in the business following the deal. The partnership will enable Fairview Cheese to expand its artisanal offer and develop valuable new export markets. Riël Malan, Executive Chairman of Nurture Foods and Partner at EXEO NURTURE FOODS AIMS TO PARTNER WITH ARTISANAL BRANDS SUCH AS FAIRVIEW TO ACHIEVE GREATER MARKET PENETRATION

growing a larger domestic and export market.” Nurture Foods was established by EXEO Capital through its Food and Agribusiness fund, Agri-Vie Fund II, as a vehicle to drive longer-term investing in the growing convenience & functional food sector. Using EXEO’s 13 years’ investment experience in the food sector in SubSahara Africa, Nurture Foods will be partnering with seasoned food entrepreneurs to build a platform of synergistic businesses that will grow and develop this highly differentiated sub-sector.

Capital said, “Nurture Foods aims to partner with artisanal brands such as Fairview to achieve greater market penetration, efficiency through technology application and generally to support the platform businesses in

MERGERS AND ACQUISITIONS

Flour Mills of Nigeria to acquire majority stake in Honeywell Flour Mills

Flour Mills of Nigeria (FMN) Plc, Nigeria’s leading integrated Food and Agro-allied group is seeking to stamp dominance in the wheat industry with the acquisition of majority stake in the country’s leading manufacturer of diverse and differentiated range of wheat products, Honeywell Flour Mills Plc (HFMP). Under the proposed agreement, HFMP’s parent company Honeywell

NIGERIA –

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Group Limited will dispose 71.69% stake in the wheat milling outfit to FMN based on an enterprise value of N80 billion (US$193m). Upon completion, HFMP’s wide range of offerings: wheat flour, noodles, semolina, pasta and wheat meal sold under the famous Honeywell brand, will join FMN’s market-leading offerings produced through its affiliates comprising: grain-based foods, sugar, starches, oils, spreads and breakfast cereals sold under the house-hold name Golden Penny. Customers across the nation will benefit from access to a wider product range and a robust panNigerian distribution network, accessing greater number of points of sale supported by enhanced customer-focused sales teams and redistribution capabilities.

The combination will also serve as a catalyst for an even stronger stream of innovation that is focused on local content offerings. “For over two decades, we have supported Honeywell Flour Mills to build a strong business with a production capacity of 835,000 metric tonnes of food per annum. “Following the transaction, Honeywell Group will be strongly positioned to consolidate and expand its investment activities, including as a partner of choice for investors in key growth sectors,” said Honeywell Group Limited Managing Director, Obafemi Otudeko. Stakeholders would benefit from the more than 85-year combined track record of FMN and HFMP and their shared goal of making affordable and nutritious food available to Nigeria’s population. NOV/DEC 2021 | FOOD BUSINESS AFRICA

SUPPLIER NEWS & INNOVATIONS

NEW TECHNOLOGY CENTER

Lessaffre establishes new baking center in Dubai to support bakery innovation in the Middle East

UAE - French yeast manufacturer Lesaffre has established a new baking center in Dubai to drive baking innovation in the United Arab Emirates (UAE) and the greater Gulf Cooperation Council (GCC) region.

Located at Dubai’s Silicon Oasis, Lesaffre’s latest baking center expands Lesaffre’s global footprint and enhances the company’s ability to develop locally tailored solutions for its customers in the region. “Bread is consumed differently according to countries. Local experts can respond to local requirements and share their knowledge,” says Jose Juan Berruga, president of Middle East and Central Asia Lesaffre Baking region. To achieve its goal, the 400 square meter center is adapted to recreate

actual conditions of customer productions by imparting expertise THE CENTER IS ADAPTED TO RECREATE ACTUAL CONDITIONS OF CUSTOMER PRODUCTIONS BY IMPARTING EXPERTISE ON THE USES OF YEAST ON LOCAL RECIPES on the uses of yeast on local recipes such as sandwich bread, buns, crusty bread, and flatbread.

TECHNOLOGY

Harpak-ULMA introduces multi-side-seal capabilities for food packaging USA - Harpak-ULMA has introduced new Artic Side Seal packaging system featuring new multiside-seal capabilities for dairy, bakery, meat, and medical applications. According to the company, the Artic Side Seal (SS) packaging system can produce multiple side-seal formats, including both zippered and strip resealable. It can also support three-sided non-resealable formats, shrink films,

and modified atmosphere capabilities. The Artic SS produces nonhermetic or hermetically sealed

packs and relies on a simplified longitudinal side-sealing system for the side seal and features a long dwell sealing head for the cross seal. The company said the Artic SS offers an alternative to traditional finsealed flow wrap packaging, which result in divided panels on one side and therefore a smaller printable area, whereas sideseal allows both sides of the packaging to be fully utilized.

TECHNOLOGY

ADM to acquire probiotics company Deerland to expand health and wellness portfolio

USA – American multinational food corporation, ADM has agreed to purchase US health and wellness company Deerland Probiotics and Enzymes for an undisclosed sum. 32

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ADM said the transaction will significantly expand its broad portfolio of health and wellness products and solutions. Deerland is a global provider of supplements that use probiotic, prebiotic, and enzyme technology and serves consumers in sectors such as digestive, immune and women’s health, and food intolerance, among others. The company operates five manufacturing sites and one fermentation facility, as well as

eight research and development laboratories globally. The Deerland acquisition is the latest in a series of ADM strategic investments to build a full-scale global Health & Wellness business to help meet growing demand for food, beverages and supplements that enhance health and well-being. Page BreakThe company also recently acquired Protexin and Biopolis and has invested to expand probiotics production at its plant in Valencia, Spain. FOODBUSINESSAFRICA.COM

INNOVATION

Chr. Hansen debuts new culture for low-sugar yogurts

TECHNOLOGY

Alfa Laval debuts PlusClean nozzle for total coverage tank cleaning

TECHNOLOGY

SIG debuts “world’s fastest” beverage filling machine

SWEDEN – Alfa Laval has introduced

DENMARK — Global bioscience company Chr. Hansen has launched its next-generation SWEETY culture which is aimed at helping dairy processors reduce the amount of sugar they add to their yogurts. The culture has been developed via fermentation technology that converts lactose into glucose, thus increasing the perception of sweetness. The Hørsholm, Denmark based food ingredient supplier says Sweety Y-3 can help reduce added sugar by up to 1g for every 100g of yogurt. “Sweety range is a culture of Streptococcus thermophilus and Lactobacillus that are selected to use galactose from lactose and excrete glucose in the milk during fermentation,” says Katarzyna McCall, senior commercial development manager in Chr. Hansen’s fresh dairy practice. The sweetness of the final product is increased as a result, reducing the need for added sugar.” According to Chr. Hansen, the patent-protected technology responds to growing demand for lowsugar lifestyles. Chr. Hansen expects its first customers to be yogurt producers with a special focus on the children’s category, as well as makers of products with ‘short ingredients lists’. FOODBUSINESSAFRICA.COM

the PlusClean cleaning nozzle, which the company says delivers 100% tank cleaning coverage. Its use also delivers up to 80% savings in water and cleaning media costs, and prevents product contamination, according to the Swedish food equipment manufacturer. By making the cleaning process more efficient, PlusClean also improves process efficiency and safety as well as product quality, which can lead to higher productivity. Installed flush with the tank wall or bottom, the cleaning nozzle has a built-in adjustment function that makes installation easy and operation effective, providing cleaning coverage in shadow areas, such as beneath agitator blades. BY MAKING THE CLEANING PROCESS MORE EFFICIENT, PLUSCLEAN ALSO IMPROVES PROCESS EFFICIENCY AND SAFETY AS WELL AS PRODUCT QUALITY “Integrating Alfa Laval PlusClean cleaning nozzles into any tank and tank cleaning process means there’s nowhere for contaminants to hide,” said Janne Pedersen, global portfolio manager, tank cleaning, Alfa Laval. “Now the promise of optimal tank cleaning is truly a promise that we can keep. No shadow areas and no risk of product contamination. Period.” Alfa Laval says the new equipment is suitable for the dairy, pharmaceutical, food, beverage, and home-personal care industries.

SWITZERLAND – Switzerland-based

aseptic packaging manufacturer, SIG has launched next generation filling technology for food and beverage manufacturers. Dubbed SIG NEO, the new machine features unique 100+ hour run cycles; a fully automated clean-in-place solution from magazine to discharge; and SIG’s innovative 360-degree sterilising solution. SIG has described its innovation as the world’s fastest filling machine for ‘combivita’ family-size carton packs, with up to 18,000 packs per hour. According to the company, the new technology has a 25% lower carbon footprint compared to other SIG filling machines for family-size carton packs while also providing users with long-term savings and a total cost of ownership. “Food and beverage producers have tight deadlines, production and profitability goals, plus sustainability targets and countless KPIs to meet,” Stefan Mergel, SIG’s senior product manager equipment, said. SIG HAS DESCRIBED ITS INNOVATION AS THE WORLD'S FASTEST FILLING MACHINE FOR COMBIVITA FAMILY-SIZE CARTON PACKS “To fulfil all their needs, we’ve built a world-class system that’s far more flexible and efficient than any other on the market, with industryleading sterility rates.”

NOV/DEC 2021 | FOOD BUSINESS AFRICA

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SimpliFine Africa takes aim at fast growing food industry in Kenya and beyond Steven Carlyon is leading the company’s acquisition strategy that targets changing the game in the bakery, meat, ready meals and frozen foods categories in East Africa

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MY COMPANY PROFILE: SIMPLIFINE By Catherine Wanjiku

SIMPLIFINE AIMS TO OFFER THE EAST AFRICAN MARKET A WIDE ARRAY OF PRODUCTS RANGING FROM READY MEALS TO BAKED GOODS

any have come to appreciate the classical music repertoire for its complex use of orchestration, counterpoint and harmony to flawlessly gel into a symphony. Borrowing from the music arena, SimpliFine, has entered the East African food industry with the aim to avail a wide array of food products comprising of ready meals, frozen, meat and baked goods, serving both the B2C and B2B markets. The glue holding all the entities together is SimpliFine’s sister company, the cold chain logistics operator, BigCold. The master conductor of the SimpliFine Foods orchestra imploring all the entities to play together is one food industry veteran Steven Carlyon. Steven, whose career spans over three decades has served leading producers of chilled, fresh, baked and ambient foods, both own-label and branded, such as

NOV/DEC 2021 | FOOD BUSINESS AFRICA

McCain Frozen Foods, Bakkavor, Northern Foods, and Samworth Brothers. Traversing across the globe, he gained further experience at Emirates Flight Catering, dnata Catering (part of Emirates Group) and Alshaya Group all within the United Arab Emirates, and most recently, Java House Africa in Kenya. Tapping into the expertise of the Engineer turned food professional, SimpliFine’s parent company – BlackIvy – an American group focused on building impactful businesses in Africa - has tasked Steven to steer ahead the company in East Africa to future success. “This is proving to be a unique and exciting opportunity for someone who relishes operating with an entrepreneurial spirit to source, develop and grow new opportunities across the East African food sector. It may be a small seedling at the moment but we are confident that we’ve got the right talents and FOODBUSINESSAFRICA.COM

perfect products to launch with. Our brand will become a household brand in the next few months,” Steven stated excitedly during a sit down with the Food Business Africa team, as we gained insights on the plans of this promising entity.

quick frozen (IQF) technology for quick frozen items will enable the company ensure it has products all year round despite the seasonal nature of the produce. With this, it will take up space in the frozen foods aisle, currently dominated by foreign owned brands such as McCain, which are relatively expensive. “There is no reason as to why the frozen fries should be such a luxury or such an expensive commodity, as the potatoes are locally available and the species we have here are suitable. The game changer for me is that Kenya has the climate and agricultural ability needs to build an even greater export portfolio by developing the brands, acquiring in the technology and working with the farmers to build the frozen food capability within the export market, translating to jobs and more sustainable benefits to the people of Kenya,” said Steven. The lack of a consistent supply of quality products has forced many food service providers to rely on expensive imported goods. With the Naivasha facility, SimpliFine is intent to bridge this gap. Through the facility, its first foray into the frozen foods and ready-to-cook segment, the company is focused on availing quality products locally and driving convenience for restaurants, hotels, schools and catering businesses across Kenya. Shedding light into the situation Steven stated, “A lot of frozen potato chips are imported because there are specific standards and formulations that the big quick service restaurants that have set base locally are asking for. There are food safety standards and

Simplifine has entered the East African food industry with the aim to avail a wide array of food products ranging from ready to frozen, meat, and baked goods, serving both the B2B and B2C markets

DRIVING CONVENIENCE WITHIN FRESH FOODS SEGMENT Charting into new territories, SimpliFine, launched its first business in April 2021, opening a 3000 square meter potato processing factory in Naivasha, Nakuru County – Central of Kenya, having bought out the assets of DNC Foods Limited. The facility, with a single processing line, peels, washes, cuts and blanches locally sourced Irish potatoes. “Ultimately from January 2022 we will be freezing as well, so we have a completely inline process,” revealed Steven. Investing in the freezing facility, particularly the instant FOODBUSINESSAFRICA.COM

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MY COMPANY PROFILE: SIMPLIFINE

PART OF THE TEAM THAT SIMPLIFINE IS BETTING ON TO GROW INTO A HOUSEHOLD BRAND IN THE NEXT FEW YEARS

Simplifine is taking the middlemen's space and enabling the product to get to customers' plate at a fair price while at the same time giving preferential payment to farmers 38

technical standards that have to be followed. As a company we are being assessed against the FSSC 22000 standards, with certification for our meat processing plant attained by midNovember , opening the doors to the export market. “We are in talks with some of the global brands and we are starting to see the QSRs becoming more flexible to work with local partners like us. That is a great start to the journey where people are looking within the country, as opposed to assuming that the import model is going to be sustainable.” Other than availing good quality products to the HORECA players, by sourcing the potatoes locally, SimpliFine is offering ready market to Kenyan farmers by giving relief to the producers who have been getting meagre earnings from middlemen and incurring huge losses from spoilage of the produce, which rot for lack of market. “SimpliFine is taking the middlemen’s space and enabling the product to get to consumers’ plate at a fair price and at the same time handle the farmers with care, dignity and give preferential payment terms,” highlighted Steven. Lack of readily available and dependable market seems not to be the only issue dotting the potato value chain, as Kenya produces

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about two million tonnes of potatoes annually even though the country has the potential of yielding up to eight million tonnes. The reduced yield is attributed to the modes of propagation and harvesting. SimpliFine wants to correct this by collaboratively working with the farmers and investing heavily in new technologies and equipment. FORAYS INTO THE MEAT SECTOR Still eyeing the fast-growing Kenyan food market, SimpliFine launched its second business in July 2021 following the acquisition of the producer of premium meat products, Alpha Fine Foods. Now rebranded to the company’s official identity, SimpliFine Meats offers a wide range of meat and convenience frozen foods. Joining established players in the meat sector, SimpliFine is setting itself apart by dialing up its added value section offering for products such as samosas, spring rolls, burger parties, pie fillings, among others, reveals Steven. This is undertaken through the wellestablished Al’s Kitchen brand, which was growing 20% year-on-year prior to the acquisition, he mentions. These items are sold both to the end consumers and food service providers. “The quality of the raw materials, the people who we’ve brought in to

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know what to do with those raw materials, and the equipment’s we have is second to none. This is really world class European equipment predominantly,” Steven ascertains. BRINGING A LEGACY BRAND INTO THE FOLD Nothing seemed to slow down the investment opportunities of SimpliFine. In October 2021, it entered the baked goods sector with the acquisition of one of Kenya’s iconic baking firms, Ennsvalley Bakery from Unga Group. Taking ownership of the artisanal bakery firm with a baking capacity of producing 90,000 loaves of bread per day, Simplifine is now at an advance stage to boost its capacity and add exciting products lines to include frozen baked par-baked goods. “We shall innovate across a range of frozen items, and will seek to supply consumers with frozen ready to bake at home items as well as developing a range of products to the B2B sector. This means consumers can keep such items in the freezer for as long as they want, be it a croissant, a Danish, brioche buns or an artisan loaf, and just place it in the oven when they are ready to consume it, coming out perfectly freshly baked in under few minutes,” states Steven. “Nothing beats the smell, texture and the overall experience of freshly baked bread at home, whether it be a casual Sunday breakfast croissant, or part of a family get together ripping open that freshly baked baguette”. SimpliFine is also seeking to acquire a

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lamination line for sheeting pastry. “That is a significant investment and in doing so, we shall need to re-align the process flow at the bakery, and build a dedicated chilled room,” adds Steven. In the next six months, SimpliFine will inject US$500,000 worth of investment into the operations to cover part of the underlined investment. Honoring the heritage of the Ennsvalley brand, SimpliFine will continue availing products under the famous identity that has resonated with families across the nation for generations. It has further introduced a new SimpliFine brand with a range of baked products that include bread, buns, muffins and cakes. Further to that, the company is seeking to make the products widely available and affordable to the masses without watering down its degree of decadents. As part of the baking business deal, SimpliFine has taken over the production and supply of baked goods at the local retail store, Chandarana Foodplus supermarkets, where it is looking at introducing new, exciting concepts that will excite consumers within the retailer’s in-store bakery outlets across Kenya. “The whole concept of the relationship with Chandarana is that we are partners, seeking to innovate and meet consumer’s ever-changing requirements. They are open to innovations and that is very refreshing. We are in a very lucky place,” Steven commented on the partnership.

KEY NUMBERS

500,000 AMOUNT OF MONEY IN US DOLLARS THAT SIMPLIFINE PLANS TO INJECT INTO ITS PASTY BUSINESS

STEVE CARLYON,SIMPLIFINE PRESIDENT, AND PART OF HIS TEAM DURING THE LAUNCH OF SIMPLIFINE BAKERY.

NOV/DEC 2021 | FOOD BUSINESS AFRICA

MY COMPANY PROFILE: SIMPLIFINE

COMPANY PROFILE

Sectors: Fresh produce, Meat, & Bakery Country: Kenya Main Contact: Steve Carlyon Website: www. simplifineafrica.com Email Address: scarlyon@ simplifineafrica.com Address: Mlolongo, Mombasa Road Nairobi

DISTRIBUTION IS KING Having established three businesses with well thought-out strategies on how to win in the local market, Steven does not shy away from the fact that all the entities will run successfully courtesy of its cold chain logistics unit BigCold. Leveraging best-in-class technologies, BigCold offers comprehensive, customized cold storage and cold chain solutions. It is the only FSSC 22000 certified company for cold storage and transport in East Africa that meets the strict food safety standards. “The Big Cold is effectively the glue that holds us all together. The efficiency that we get through the distribution reach gives us the ability to take all the three platforms across the country in a cost-effective manner. In turn we have passed those savings on to the clients, availing fairly priced products to the consumers,” notes Steven. BigCold trucks are also available for use by third parties, enabling other manufacturers to distribute their products via existing distribution networks, thus cutting down on carbon emissions into the environment. Further expanding its reach, SimpliFine is also utilizing motorbikes to undertake delivery into the heavily populated areas without having to be held up in the traffic jams. WINNING BOTH LOCALLY AND ABROAD Focusing majorly on the frozen food segment, SimpliFine is tapping on the fast-growing global market estimated at US$244.3 billion in 2020 by Markets and Markets, and projected to reach US$ 376.95 billion by 2025 registering

NOV/DEC 2021 | FOOD BUSINESS AFRICA

a CAGR of 4.3%. Changing food preferences as a result of rising number of working individuals and hectic work life schedule is one of the key factors augmenting the market growth. “This is a space that we are going into, offering convenience and one stop shop. You want dinner and have no time because you are a busy professional, you can just pick up dinner on your way home that is easy to prepare,” Steven paints the picture. To ensure customers get to know its full range of offering, Simplifine is planning to embark on a robust promotional and advertising campaign. The company will also ensure all its products are widely available across the country by partnering with leading retail outlets. Looking into the future, Steven reveals that Simplifine will undertake more notable investments by vertically integrating the three businesses. “By investing in primary processing facilities, we can further guarantee our quality and food safety standards” Steven explains. Meanwhile at its Naivasha facility, the food processor seeks to expand its fresh food offering to include more vegetables and fruits. The fresh produce unit also avails an opportunity for SimpliFine to creatively transform its by-products and waste materials into new products perceived to be of greater quality. Steven notes that by investing in the right technologies, the company will be able to upcycle its rejected potatoes to make items such as dehydrated potatoes or instant mashed potatoes. The company is also looking beyond food processing and plans to engage in distribution of fresh produces and meat products to the international markets leveraging on BigCold. “Port Jeddah in Saudi Arabia is so close to us but yet so much meat is coming in from Australia for a market three times that of East Africa in GDP. We are capable of being an export brand,” states Steven. “If you ask me in 5 years’ time, I would like 50% of our revenue to come from export and 50% from the local markets.” The rapidly growing food producer, using advanced technologies and operational expertise to ensure production of high-quality and cost-conscious products is focused to become a house-hold name in the region. FBA

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MOMBASA, KENYA

MAY/19-21 / 2022 AFRICA’S NO. 1 FOOD SAFETY, QUALITY & COMPLIANCE CONFERENCE & EXPO

The second edition of Africa Food Safety & Quality Summit - Africa’s premier international food safety, quality management and compliance conference and exhibition is set for June 2022 - after the ground breaking first edition, which debuted in July 2021. The Summit, which is held annually, is shaping up to be the best platform to learn new ways to tackle the unique food safety, quality, compliance and regulatory challenges that affect Africa from leading experts, consultants, researchers and thought leaders. With a wide scope that transcends agricultural production, food and animal feed processing, the hospitality, retail and food service industry, to institutional and other critical food and agro supply chains, the Africa Food Safety & Quality Summit is the most critical event for the public, private, academic, research and non-profit stakeholders in Africa and beyond. Start planning your journey to the second edition - as economies easen from the ravages of the Covid-19. It is never too early to begin preparations on how you can participate. . . WWW.FOODSAFETYAFRICA.NET/SUMMIT POWERED BY FOODBUSINESSAFRICA.COM

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TheNest AFRICA

AT THE NEST AFRICA OUR AIM IS TO CONNECT START-UPS WITH BIG CORPORATES & FUNDERS 42

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Start-ups and young businesses in sub-Saharan Africa face a myriad of challenges, including lack of access to technology, expertise and networks to grow. At The Nest Africa, we are creating a collaborative facility with new product development labs, production and packaging kitchens and office space for use by start-ups and young companies to facilitate their innovations and growth towards becoming the next big thing. AND WE BELIEVE THAT CONNECTING THEM TO BIG CORPORATES AND FUNDERS IS KEY TO THEIR SUCCESS Visit the website and sign up to partner with us today

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COMPANY PROFILE

NATURE LOCK FOODBUSINESSAFRICA.COM

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FOOD STARTUPS AFRICA: NATURELOCK

NatureLock: Offering Kenyans homely nutritious dishes whipped up in minutes

By Catherine Wanjiku

frica boasts of having 60% of the world’s arable land and diverse agro-ecological zones. However, it is a sceptical paradox that nearly three-quarters of the region’s population cannot afford a healthy meal. With 40 to 50 percent of the people living below the poverty line, nutritious food is just out of reach for many. Even though many people suffer from malnutrition, a lot of crop yields are lost before they reach the end consumer. Post-harvest losses across Africa can be as high as 50 percent due to inappropriate harvesting methods, unpredictable rainfall patterns, poor storage and transportation, and lack of infrastructure, threatening food security, incomes, and livelihoods in the region. The food crisis is extraordinary in scale, an enigma that led 44

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Tei Mukunya Oundo and Wilco Vermeer, both with extensive experience in the food and beverage space to co-found Naturelock, a food processing start-up based in Kenya. Prior to establishing NatureLock, Tei was running Azuri Health, a Kenyan company with the mission to reduce postharvest losses by sourcing fruits, vegetables and tubers from smallholder farmers and turning them into dried snacks and flour for both the local and export market. Meanwhile, Wilco was running Tuttifoodi, a company that developed a new revolutionary encapsulation process for fresh vegetables, fruit, herbs and temperature sensitive ingredients, after a career in operational and marketing roles at Unilever, Symrise, Coca Cola and Nestle, among other corporations. The two joined forces in 2020 to realize their mission of reducing post-harvest losses while increasing access of FOODBUSINESSAFRICA.COM

production, which will ensure the products will be widely and readily available in the local market.” TURNING RESCUED FOOD PRODUCE TO TANTALIZING STEW

nutritious and more convenient foods to the masses in the continent. “NatureLock is a business that exists to first alleviate food loss that occurs along the value chain before reaching the consumer. And the other important mission for us is to produce affordable, nutritious products by converting these foods that mostly go to waste into nutritious food solutions. These are the two solid pillars that the company is currently anchored on,” highlighted Tei during an interview with the Food Business Africa team. NOVEL TECHNOLOGY WORKING WONDERS

The company is confident that it will achieve its objectives courtesy of a novel Dutch innovation that it has adopted. Spoken of in hushed tones, like the Coca-Cola secret ingredient, the invention is aimed to enable NatureLock to not only put at bay food spoilage but also add value to hundreds of tonnes of fresh produce. “The technology we have creates an oxygen barrier and dries a particular produce, preventing it from spoiling. It is a natural solution that enables the foods to be restored back to their original state when ready to be consumed,” explains Tei. “This means we can preserve any food item using the method.” Despite drying being one of the oldest methods of food preservation, it hasn’t been an ideal technique as it results in distortion or loss of either flavour, colour, aroma, texture or nutrients. However, the drying process that NatureLock uses preserves the integrity and nutritional value of the product while increasing its shelf life. It is FOODBUSINESSAFRICA.COM

also a sustainable alternative to use for cold solutions which require significant investments, consume a lot of energy and are generally unaffordable to many. NATURELOCK RIDES ON FAMILIARITY TO CREATE STAR PRODUCT

For its flagship product, NatureLock has chosen green grams/mung beans as its star ingredient to create a widely and commonly enjoyed soup in the region. Under the brand name StewsDay, the new product is an instant stew made from locally sourced green grams and vegetables. Why green grams? Tei explains that “Despite green grams being a staple cereal in Kenya, internationally it is considered a superfood and is in the category of foods of the future. Also, institutions such as Kenya Agricultural and Livestock Research Organisation (KALRO) are coming up with seeds that have suitable agronomic potential with desirable characteristics for local

NatureLock undertakes the production of StewsDay at its recently opened processing hub in the country’s capital Nairobi, near the Jomo Kenyatta International Airport. For its production needs, the company sources the raw materials locally, with the fresh produces such as tomatoes, carrots, onions, corriander, chilli and ginger acquired from surplus or ready-to-expire stocks. NATURE LOCK IS A BUSINESS THAT EXISTS TO FIRST ALLEVIATE FOOD LOSS THAT OCCURS IN THE VALUE CHAIN WHILE ALSO PRODUCING AFFORDABLE AND NUTRITIOUS FOOD SOLUTIONS

Through this initiative, the company reduces food losses experienced by farmers and has plans to scale its local sourcing of surplus produce and build its supplier network. To avoid disrupting the market, NatureLock works with aggregators like Farm to Feed who rescue potential food from loss and

NOV/DEC 2021 | FOOD BUSINESS AFRICA

FOOD STARTUPS AFRICA: NATURELOCK

COMPANY PROFILE

Sector: Fresh Produce Country: Kenya Main Contact: Tei Mukunya & Wilco Vermeer Email Address: info@naturelock. co.ke Telephone: +254 (0) 79 863 39 66 Address: Off Old Mombasa Road, Nairobi

waste. In a bid to guarantee steady demand, the food processor team ups with its partners to train farmers in sustainable agricultural practices. From mis-shaped carrots and unsellable tomatoes, the food processing start-up concocts a delicious Kenyan-style green gram stew at the state-of-the-art factory equipped with modern facilities. “We pre-cook these products into a nice fine recipe that matches the palate of our consumers,” highlights Tei. The production process is undertaken in a simple and precise way, under a sterile environment to ensure safety of the product. Its floor working area comprises of a wet processing section where the materials are sorted and cleaned in readiness for cooking. At the same station, the company uses a versatile steam cooker to uniformly cook all the raw ingredients under record time. After the cooking process, the aromatic and well-seasoned stew is gently dehydrated and dried using the patent technology that ensures the product will have a shelf-life of up to two years. Rich in fibre and daily essential nutrients like vitamins, minerals, and proteins, StewsDay is packaged in convenient sized packs, will all the natural goodness locked in. “Other than being certified by the Kenya Bureau of Standards (KEBS), we are currently working on attaining the FSSC 22000 certification to assure the consumers that our operations foster end-to-end robust production systems which guarantee production of safe food,” highlighted Michael Vermeer, Food Systems Impact & Communications Director at the company.

gone ahead and prepared the pulses into a rich meal that can be enjoyed with a wide array of accompaniments. Three minutes after simply adding boiled water to StewsDay the soup is ready,” states Tei. The launch of StewsDay is timely as Kenya’s growing urban population is rapidly changing, with consumers demanding not only convenient food products, but also nutrients-filled delicacies. The corona pandemic has made people to be more aware of the importance of healthy eating. Food products that cover these two needs and are affordable are therefore promising. With this, NatureLock has set itself as a strong contender in the instant food market currently dominated by breakfast cereals, noodles and soups among others. “Our targeted consumer is the juggling individual who has been busy the whole day and is in search for a quick, affordable and convenient meal that does not compromise on taste, quality and nutritional value,” highlights Tei. NATURE LOCK PURSUES PROFIT AND PURPOSE BALANCE

Other than focusing on production of readily available nutritious foods and curbing food loss, NatureLock also aspires to be a B-Corporation, joining global companies that meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose.

DRIVING CONVENIENCE WITH NUTRIENT-FILLED PRODUCTS

The new product, which is just months old, promises to become an instant hit for people looking for a convenient, healthy, and affordable meal. “What we have discovered since launching the product in August 2021 is that convenience is extremely key for our consumers as we have offloaded from them sorting, cleaning and preboiling of the green grams. And we have further

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KEY NUMBERS

60 MILLION NUMBER OF MEALS THAT NATURE LOCK TARGETS TO DELIVER TO CONSUMERS BY 2023

In line with this, the company has committed to increasing economic opportunities for women throughout its process. Creating a suitable working environment, NatureLock has created a day-care center for its employees to bring their children throughout the workday to make it more convenient for them. And to incorporate women into their distribution strategy, NatureLock is providing women with the opportunity to start their own micro-enterprises through turn-key street carts and kiosks used to boost brand awareness and increase sampling points of the StewsDay product in high traffic locations. “Our consumer pool is majorly in the densely populated, low-middle income areas where an affordable product like

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StewsDay can sell and make a difference. Since we launched in the market, the response has been positive, which is encouraging us to roll out our second product really fast to be able to avail a wide array of choices for the consumers and make everyday a StewsDay,” Tei elaborates. NATURE LOCK EYES THE REGIONAL MARKET

Looking into the future, NatureLock aims to operate multiple large production hubs across Africa and expand to other local produces. “It is my commitment that by 2023 we will save 22,000 tonnes of fresh produce and deliver 60 million meals or 2.7 million kilos of meals. It is my resolve that 75% of our vegetables will come from rescued food from our farmers,” says Tei. By further expanding its portfolio, the company also seeks to extend its reach to supply the dried nutritious meals to schools and offer a sustainable food basket for faminestricken areas, increasing local food security. To further align its operations, NatureLock plans to build out decentralized collection and processing centres on mid-size farms and equip smallholder farmer networks with dehydration units to preserve their surplus, and sell the products directly to NatureLock. This will help to further eliminate food loss that occurs during transport from farm to processing facility and increase income

opportunities at the farm level. Drying right at the source also creates more effective transport and warehousing by 70% and lowers the product’s carbon footprint. “We have realised that if we want to create a systemic impact on fighting food-loss, we need to go to the source and find a solution that works for the farmers at the heart of their operations. With the small drying units as an alternative to the cold-storage units that have been making inroads into the farms, we are certain we will make great impact and contribution in that regard,” noted Michael. “In our dream to scale and create as much impact for Africans by producing food at source, we will reduce on the need to import as we can make our own nutritious foods. In the long run we will create a culture within our people of eating what is produced at home,” reiterates Tei. To drive the planned growth, NatureLock is appreciative of the fact that they will require a big pool of financing from grants, loans, own contributions and even equity partnerships. A recent financing from FINCA Ventures, is a major step towards this direction as it will help the company bolster its operations. Still at its infancy stage, NatureLock may seem at face-value as any other company driving convenience by offering instant foods, but with its point of focus being offering nutritious products from wasted commodities, it has unequivocally set itself apart. FBA NOV/DEC 2021 | FOOD BUSINESS AFRICA

Dairy

BUSINESS

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

Growing dairy industry in Africa taps more investments as demand rises By Catherine Wanjiku

The sector continues to receive significant funding and investments from local, regional and global giants

ilk is a widely consumed beverage, rich in vital nutrients. It’s safe to say, it is one of the most versatile food products that can be consumed on its own, paired with other ingredients to come up with a new product. It can also be processed into an array of offerings to include butter, cheese, cream, yogurt, ghee, condensed milk, dried milk, ice cream among others. The branching out of milk into other products has led

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to the emergence of the multi-billion-dollar dairy industry. According to Research and Markets, the global dairy food market is expected to grow from US$675.78 billion in 2020 to US$722.14 billion in 2021 at a compound annual growth rate (CAGR) of 6.9%. The market is further expected to reach US$956.26 billion in 2025 at a CAGR of 7%. Africa’s dairy industry has immense potential that is yet to be actualized due to several challenges, including low productivity per cow, fluctuating milk production, FOODBUSINESSAFRICA.COM

technological advancements, among others.

inconsistent milk quality, high cost of production, inefficiencies along the value chain, and a large informal sector, among others. Despite the challenges, the region boasts of having large herds of livestock, with Ethiopia taking the crown as the continent’s largest producer of livestock. In terms of milk production, the East African region produces 68% of the continent’s milk output, contributed mainly by Kenya, Uganda, Ethiopia, and Tanzania. Due to urbanisation, population growth and improving household incomes, demand for milk and milk products in the region is expected to continue to grow, offering opportunities to transform milk chains to economies of scale, improve milk quality and safety and promote the inclusion of more parties. This has led to both local and international players channelling huge investments in the sector in the past three years, towards upgrading facilities and systems, product innovations, expansions,

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ETHIOPIA With one of the largest dairy cow populations in Africa at over 10 million, Ethiopia produces nearly 4.6 billion litres of milk a year. However, the country is far behind in milk production levels despite the popular claims. Local demand in the country stands at 22 billion litres annually, making it turn to imports to fill the huge deficit gap. Most of the milk is distributed through the informal channels, as the country has about 40 milk processing companies with a total processing capacity of about 200,000 litres a day. With the dairy sector still at its infancy, Tiret Corporate, an Ethiopia based private equity firm, invested US$1.65 million in 2019 to establish a new dairy processing plant in Amhara Regional State. The investment under TZA Dairy & Processing Plc has a designated dairy cattle rearing farm and a processing plant with a capacity to process 20,000 litres of pasteurised milk per day. DUE TO URBANISATION, POPULATION GROWTH, AND IMPROVING HOUSEHOLD INCOMES, DEMAND FOR MILK AND MILK PRODUCTS IN THE REGION IS EXPECTED TO CONTINUE TO GROW Meanwhile, MB Plc, one of the leading dairy processors in the country trading under the name Family Milk recently undertook installation of an automatic UHT milk processing plant in Addis Ababa. The new plant, having a processing capacity of 40,000 litres per day enables the dairy processor to produce the long-life milk with up to six months shelf life. Further boosting the country’s processing capacity, Lame Dairy, subsidiary of Midroc Ethiopia Technology

NOV/DEC 2021 | FOOD BUSINESS AFRICA

DAIRY BUSINESS AFRICA: INVESTMENTS IN DAIRY INDUSTRY

Group opened a new dairy facility in 2021, constructed at a cost of US$14.5m. The new factory more than doubles the dairy processors capacity from 70,000 litres of milk a day to 160,000 litres and will produce the long-life Shola Milk brand that can stay fresh for three weeks under refrigeration. The new bottled product will enable distribution to far-off and remote areas, as well as reduce wastage. It will also produce other by-products such as cheese and yogurt. Ethiopian milk processors have further diversified their operations and ventured into camel milk production. Mid 2021, Khelif Milk Processing Industry (KMPI), announced an investment of US$1.6m in the establishment of a camel processing plant. The facility, which is set to soon commence operations, has a processing capacity of 16,000 litres a day but the company will begin its production with 10,000 litres. KMPI is not limited to camel milk processing, as they plan to bottle pasteurized cow milk and yoghurt, and process cheese and butter.

According to the Kenya Dairy Board, Kenya has 4.5 million heads of dairy cattle producing 5.28 billion litres of milk annually, with only 600 million litres marketed formally and processed by about 30 milk processors and 67 mini dairies with a total production capacity of about 3.75 million liters per day. Kenya’s milk production levels are estimated to grow to 12 billion litres by 2030, with a growth intake to the formal processing sector rising to 1 billion litres in 2025.

KENYA In neighbouring Kenya, the country boasts of having the highest milk per capita consumption in Africa at 120 litres compared with the region’s average of 50 litres. The dairy industry is one of the most lucrative agricultural and manufacturing activities, with great potential to turn around the nation’s economic potential. 50

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This will trigger more investments in the sector by both new and veteran players such as Brookside, New KCC, Bio Foods and a myriad of dairy cooperatives that have made significant inroads in the sector over the last 10 years such as Githunguri, Mukurweini and Kinangop dairies. In the recent past, the country’s first dairy processor New KCC, undertook the rejuvenation of its ageing plants at a cost of US$10 million (KSH1 billion). Other New KCC facilities that have been re-tooled include Eldoret, Kiganjo, Nyahururu and Sotik plants, with plans to roll out investments at the other plants. The recently modernized unit was the Dandora factory in 2019, doubling its processing and packaging capacity to 160,000 liters per day. In 2020, the state-owned processor broke ground for construction of US$2.49m milk cooling plant in Meru County, Central Kenya, with a holding capacity of 100,000 litres. During the same period, Nuug Camel Milk Products Limited, launched the commercial production and distribution of packaged camel milk products into the Kenyan market. Apart from milk, the company based in Industrial Area, Nairobi also produces camel yogurt in several flavours including vanilla, strawberry and mango. The investment wave has also caught up with cooperatives who previously were content to be suppliers of milk to leading dairies, but have since vertically integrated their operations into processing. Kangema Unity Investment, a dairy cooperative of local farmers in Murang’a County, Central Kenya, built a US$2.8 million milk processing plant at the end of 2019. The construction of the plant was financed by the over 5,000 dairy farmers. With the focus of expanding its portfolio, Glacier Products Ltd, one of Eastern Africa’s leading ice cream and chocolate confectionery manufacturers closed the year 2020 by clinching an undisclosed amount of investment from EXEO Capital, a leading pan-African private equity investment manager. The financial and management

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KEY NUMBERS

US$956.26 BILLION ESTIMATED MARKET VALUE OF GLOBAL DAIRY INDUSTRY IN 2025 backing, is aimed to steer the producers of renowned Dairyland ice-creams and chocolates, towards continued sustainable growth that has seen them launch a line of premium yoghurt products into the Kenyan market. UGANDA Crossing boarders into Uganda, recent statistics by the Dairy Development Authority indicate that milk production in the country in 2019 stood at 2.7 billion litres. The sector has increasingly become an important contributor to foreign exchange for the economy, boasting of being the only nation in East Africa to have a positive balance of trade in milk products. The country’s processing companies have increased from 120 with processing capacity of 2.72million litres in 2017/18 to 135 with processing capacity of 2.8 million litres by end of December 2019. This has been as a result of new players joining the market and some processors upgrading their processing capacities. The Ugandan dairy sector has seen two key entrants in the last few years, with leading Kenyan dairy Brookside acquiring the stake previously held by Sameer Agriculture and Livestock to create Brookside Uganda. Meanwhile the Tomosi family and the Vital Capital Fund formed a new joint venture dubbed Vital Tomosi. The producers of the Milkman brand of UHT milk and yoghurt commissioned a new milk processing factory in 2019. The new dairy processing factory comes at an investment worth US$15 million and has a capacity to process 100,000 litres of milk daily. It is not only the Vital Capital Fund that has invested in the sector. The Rise Fund, a global impact investment fund managed by American private equity firm TPG Capital acquired a reported 34% stake in Pearl Dairy in 2019 to enable the dairy processor to expand and enhance its operations, in addition to an earlier investment by the IFC in the firm. Pearl, which markets its products under the flagship brand Lato, is the largest dairy processor in Uganda, with installed processing capacity of 800,000 liters of raw milk per day. The company recently partnered with Tetra Pak, to install a new Ush 9.25 billion (US$2.6m) packaging line. The new state-of-the-art facility has enabled the processor to expand its offering to a new range of UHT products. Meanwhile Jesa Dairy, one of the pioneer dairy NOV/DEC 2021 | FOOD BUSINESS AFRICA

DAIRY BUSINESS AFRICA: INVESTMENTS IN DAIRY INDUSTRY

processors in the country, is building a new, bigger 2,700m2 plant that will be ready in 2021 near Kampala, to boost its production capacity. TANZANIA Investors have also had an eye on Tanzania’s dairy sector as Tanga Fresh, a leading dairy processor in the country acquired additional investment from Dutch family-backed impact investor DOB Equity in 2020, to expand its production in the long-life milk market. The dairy processor produces a wide range of products such as mtindi (sour milk), yoghurt, ghee, fresh and long-life milk. Its production facilities have expanded significantly in recent years, from initially producing 15,000 litres of milk per day to today making 80,000 litres per day in a modern high-quality plant. The dairy industry in Tanzania has the most potential in Eastern Africa, as less than 7 per cent of the country’s milk is processed. Its current production capacity stands at 2.4 billion litres of milk a year, with a targeted production of 4 billion litres per annum by 2030. The Government is also planning to improve milk consumption per capita from the current 47 litres to 70 litres in a few years, driven by increased local production. RWANDA Shifting focus to Rwanda, big news emerged at the start of 2020, when the government privatized the state-owned Burera Diary Limited. The dairy company was sold to African Solutions Private Ltd (Afrisol), a Zimbabwean firm who acquired about 98.3% shareholding. The plant has a daily capacity to process 10,000 liters of milk into various finished products such as soft and hard cheese, yogurt, long-life milk, butter, ice cream as well as fermented milk. Rwanda produces more than 2.2 million litres of milk a day, while only about 10 per cent of it gets processed

into different dairy products. Meaning a lot of milk goes to waste, a loss that Inyange Industries, one of the leading food processing companies in the country, is seeking to mitigate with the establishment of at US$20.8 million milk powder plant. NIGERIA Nigeria has a cattle population of 20 million that produces 600 million litres per year against a consumption capacity of 1.3 billion tonnes of milk annually. This forces the West African country to spend US$1.5 billion every year in dairy products importation to meet rising demand for milk and milk products. With a target to increase milk production to 1.7 billion litres by 2024, the private and public sector have joined forces to drive investments in the dairy sector in the country. For instance, in 2019, the Central Bank of Nigeria (CBN) included milk and dairy products on its list of items not eligible for foreign exchange (FX), leading to restriction of milk imports into the country. In turn, the apex bank resorted to partnering with state governments and private investors to actualize the various dairy sector backward integration programs. In Niger state the government allocated land to four

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FrieslandCampina, commissioned a state-of-the-art plant for local production of Peak Yoghurt. The company further strengthened its yoghurt line by recently building a mobile plant for long shelf-life yogurt production. The facility will start with a processing capacity of 1.8 million kilograms of milk and can annually produce more than 18 million pouches of drinking yogurt.

dairy companies including Friesland Campina WAMCO, Neon Agro, Chi Limited and Irish Dairy at the 31,000 hectares Bobi Grazing Reserve. Meanwhile in Ekiti state, Promasidor Nigeria has invested US$5m to reactivate the moribund Ikun Dairy Farm. Further, Denmark-based dairy firm, Arla Foods, has also forged an alliance with the Kaduna state government to establish a dairy development programme and build a new commercial dairy farm in the region. In southwest of Nigeria, Fan Milk Plc, the subsidiary of multinational food-products corporation Danone, has partnered with the government of Ogun state to develop a world-class dairy farm and technical institute at the Odeda Farm Institute, bringing the expertise of its parent company to the fore. The backward integration programs have started to bear fruits - in 2020, FrieslandCampina WAMCO, attained a record high milk collection capacity of 40,000 litres of milk per day. FrieslandCampina WAMCO, leading the quest to transform the dairy sector in Nigeria, further expanded its milk production capacity with purchase of Nutricima in 2020 from PZ Cussons Nigeria Plc. The acquisition added Olympic, Coast and Nunu brands into its portfolio. In the same year, the subsidiary of Holland’s Royal FOODBUSINESSAFRICA.COM

SOUTH AFRICA Cruising down to South Africa, the dairy industry has been likened to that of USA, dominated by few commercial farms with larger herds undertaking intensive farming system. Most of the milk produced under this model goes to liquid milk production (60%) and the remainder is processed into concentrated products such as pre-packaged cheese and butter. In 2019, Milco SA led by Tel Aviv-based Central Bottling Company (CBC) made the headlines with the acquisition of Clover Industries, producer of branded food and beverage products, majorly focusing on the dairy industry. The following year, Sundale Dairy formed a joint venture with international cheese processor Schreiber Foods, invested R70 million (US$4.25m) in the construction of a new cheese processing factory. The new facility with capacity to produce 7,000 tonnes of cheese slices will mainly serve quick serve restaurants such as Burger King and McDonalds. Later in 2020, Dairy Farmers of South Africa (DFSA) hit the headlines after its merger with Coega Dairy, creating a new agribusiness venture in the region known as Dairy Group. Under the 50:50 partnership DFSA brings it’s over a century long experience as a market leader in the WITH A TARGET TO INCREASE MILK PRODUCTION TO 1.7 BILLION LITRES BY 2024, NIGERIA'S PRIVATE AND PUBLIC STAKEHOLDERS HAVE JOINED FORCES TO DRIVE INVESTMENTS IN THE DAIRY SECTOR procurement of raw milk and supplying premium brands such as Clover, combining with Coega Dairy’s knowledge in building low-cost household brands Deep-pocketed investor, EXEO Capital also recently ventured into the South African dairy industry by undertaking an equity investment in artisanal cheese producer, Fairview Cheese Company. REST OF SOUTHERN AFRICA Meanwhile in Zimbabwe, the country’s dairy industry has been experiencing annual milk production decline, currently registering around 70 million litres, short of the national demand of 120 million litres, making it turn to imports. Dwindling production capacity and currency devaluation has led to many investors shying away from NOV/DEC 2021 | FOOD BUSINESS AFRICA

DAIRY BUSINESS AFRICA: INVESTMENTS IN DAIRY INDUSTRY

the industry. However, the country’s leading milk processor Dairibord Holdings has been raking in huge amount of investments in the sector, stamping its dominant position. The company recently invested US$2 million in a new UltraHigh Temperature (UHT) filling and packing equipment, alongside a new US$1.5 million ammonia plant, expected to boost its ice-cream production levels. The processing giant was eyeing a larger market share by merging with its MIDDLE EAST CHEESE MARKET WAS WORTH US$8.52 BILLION IN 2018 AND IS ESTIMATED TO GROW AT A CAGR OF 4.27% TO REACH US$10.51 BILLION IN 2024 competitor Dendairy. However, negotiations for a possible merger between the two dairy entities collapsed. Still in the Southern African region, Trade Kings Group, Zambia’s leading manufacturer of Fast-Moving Consumer Goods (FMCG) commissioned a new milk processing plant at its subsidiary Dairy Gold Limited late last year. And in Angola, Webcor, one of the country’s leading FMCG players acquired Lactiangol in a deal valued at US$30 million in 2019, strengthening its presences in the manufacturing sector. NORTH AFRICA Located in the Northern fringes of Africa, the Maghreb countries have a long tradition of consuming dairy products. Despite the harsh weather conditions characterized with excessive heat and intense drought, the high demand of milk and milk derived products has led to realization of investment in the local dairy industries. In 2019, Land’Or, Tunisian dairy manufacturer invested 54

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US$11.3 million in setting up a new plant in neighbouring Morocco. The following year, the cheese maker received €10.9 million (US$12.89m) loan financing from the European Bank for Reconstruction and Development (EBRD) to support its expansion in home market and investment in Morocco. Ripened for future growth, Maghreb Private Equity Fund IV (MPEF IV) acquired additional 1.8 million shares in Land’Or, representing 16.20% of the capital of the agrifood firm, raising its ownership to 21.6%. Meanwhile in the land of the Pharaohs, French dairy group Lactalis acquired Greenland Group for Food Industries, an Egyptian cheese maker and subsidiary of Middle East food company Americana Group in 2019. Seeking to get a share of the multibillion Middle East and Africa Cheese market share, which was worth US$8.52 billion in 2018 and estimated to grow at a CAGR of 4.27% to reach US$10.51 billion by 2024, Dutch dairy cooperative, FrieslandCampina also recently partnered with the Arabian Food Industries Company, popularly known as Domty, to establish a joint venture that will focus on the export of cheese. Shifting focus from the cheese market, Dina Farms, Egypt’s largest private sector farm announced a US$24.4 investment in 2019 in its dairy farm and associated segments over the next three years to expand its production capacity. The investment is part of the company’s new phase of aggressive growth and restructuring that has seen the company double its milk production capacity. From North to the South of Africa, the dairy industry has the propensity to create wealth in Africa, given its natural potential and presence of untapped opportunities. To unlock this potential, governments, private players, investors, developmental partners among other, must however play a collaborative role in the transformation agenda. FBA FOODBUSINESSAFRICA.COM

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

Cider becomes mainstream as young consumers dictate the pace

W By Paul Ongeto

hen we talk about cider, probably the image that comes to your mind is the yellow fluid whose taste closely resembles that of wine. You might even be forgiven for mistaking cider for white wine as they are pretty much produced the same way, only difference is the fruit used. But cider has many definitions, largley depending on where it is produced. In Europe, cider refers to the expressed juice of a fruit — typically apples — that is fermented and used as a beverage. Pears that are used in this manner produce a cider better known as perry. In North America the freshly expressed juice that has not FOODBUSINESSAFRICA.COM

been subjected to any permanent preservative treatment is generally called sweet cider, whereas juice that has been permitted to undergo some natural fermentation is designated as hard cider. The expressed juice of apples that has been treated by some method to prevent spoilage while in hermetically sealed cans or bottles is marketed as apple juice in most countries. Cider, as per European standards, has been in around for many years, mastered by the Greeks and Romans, and has evolved over the time in its taste and the fermentation process. Until recently, cider was not a common beverage in Africa. Few brands existed and were only patronized by few drinkers. NOV/DEC 2021 | FOOD BUSINESS AFRICA

BEVERAGE TECH AFRICA: TRENDS IN CIDER PROCESSING

a healthier lifestyle, cutting down on how much alcohol they drink is something that many consumer groups are considering. This has given rise to a burgeoning market for no and low-alcohol drinks across all categories, with cider being no exception.” Last year, Cidermaker Westons gave its low-alcohol cider brand Stowford Press LA a new look in a bid to tap into the trend towards drinking in moderation. With the low-alcohol market also growing in South Africa, Distell also has a product for them: the Savanna nonalcoholic lemon-flavored cider which it says is the “first cider in South Africa to provide you with a genuine cider taste without the alcohol.”

The venturing of South African alcoholic beverage giant Distell into cider production has however changed the narrative and today cider is among the fastest growing beverages in Africa. Sales of brands like Savannah, Hunters, and Bernini today make up 37% of Distell’s revenues, showing just how fast the sector has grown in such a short period of time. Africans always had a hunger for cider, they just they didn’t know they had it until they first tasted it. Even as the continent plays catch-up with the rest of the world, cider has been experiencing phenomenal growth. According to a recent update from Kenneth Research the global cider market is estimated to grow at a CAGR of 5.92% from 2018 to 2025 to reach US$15.84 billion. Innovation has been key to cider growth and is expected to drive market growth in the future. Let’s dive in and explore some of the trends in cider processing that keep consumers coming back for more.

FRUIT CIDERS ON THE RISE Ciders were originally made from apples. That was centuries ago. Today, cideries are adventurous, often trying new styles with other fruits and the result has been the birth of the fruit cider. In their experimentation, cider makers found that using fruit other than apples in hard cider adds a great additional flavor and helps keep the alcohol content high. That started a fruit cider trend that has since stuck. Some of the more common fruit selections are pear, cherry, peach and pineapple. Other options include mixed berries, blueberry, mango, blackberry. However, regulations control just how much fruit can be added. For instance, UK law directs that cider must contain at least 35% apple juice (fresh or from concentrate), although CAMRA (the Campaign for Real Ale) says that "real cider" must be at least 90% fresh apple juice. In the US, there is a 50% minimum requirement while in France, cider must be made solely from apples. So, in jurisdictions where it allows, fruit ciders have become

LOW AND NO-ALCOHOL CIDERS Low and no-alcohol drinks have become popular as more consumers become conscious of their health. The Covid-19 pandemic has further accelerated the transition to this drink category, as many around the world avoided anything that could compromise their health and make them susceptible to the virus. Data from CGA shows the although the no and low-alcohol cider category is a small segment of the drinks market, it has been growing as more consumers seek healthier beverage alternatives. CGA’s commercial director Graeme Loudon says: “With two thirds of consumers proactively trying to lead 56

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common, garnering as much as 36% of market share in UK, according to Carling Partnership. Last year, fruit cider saw sales jump 12% in the UK and are predicted to become the major component by 2022. In Kenya, Kenyan Originals, a craft cider brand has been leading the fruit cider revolution. The company has an extensive portfolio of fruit ciders which include mango & ginger, pineapple & mint, and passion fruit & lime, among others. EXPERIMENT WITH INNOVATIVE FLAVORS Flavour plays a key role in acceptance of beverages; ciders are not an exception. During the golden era of ciders in the US, Brian Sudano, managing partner for New York-based Beverage Marketing Corporation (BMC) notes that flavor innovations were critical to its rapid growth. Sudano notes that before Angry Orchard pursued the flavor strategy, hard cider was slow growing and under 8 million cases. “The expansion into flavors, among other things, drove the category to near 30 million cases,” he adds. Learning from their previous success, cidermakers are exploring flavour innovations and are coming up with quite sophisticated flavor blends, KENYAN ORIGINALS, A KENYAN-BASED CRAFT CIDER BRAND, HAS BEEN LEADING THE CIDER REVOLUTION WITH ITS EXTENSIVE PORTFOLIO OF FRUIT CIDERS WHICH INCLUDE MANGO & GINGER, PINEAPPLE & MINT, AND PASSION FRUIT & LIME, AMONG OTHERS. such as pecan, orange, and coffee; lemongrass and hibiscus; and even smoked figs. Cideries are also using their limited edition offers to explore flavors such as caramel and chocolate or black lagers. “The unusual and unexpected get the most attention here, so don’t be afraid to experiment,” advises Advanced Biotech. THE CIDER IS WINE TREND PICKS UP Industry experts agree that cider resembles wine more than beer does. It takes years to grow a productive orchard and to make, and often age, the resulting cider. Cider enthusiasts however feel cider is not taken as seriously as wine with most ciders in supermarkets made from concentrate instead of actual fruit. In South Africa, two thirds of the apple concentrate fermented for cider production is imported, some of it from Poland, but most from China, according to Business Insider South Africa. A group of beer advocates in the UK are however seeking to address the problem. They have formed a trade organisation called ‘Cider is Wine’ to spread the gospel of cider and perry made with 100% juice content across the UK. A number of cideries including Abel, Brännland, Eden, FOODBUSINESSAFRICA.COM

Gospel Green, Kystin, Loic Raison, Once Upon A Tree, Tutts Clump and Willie Smith’s all the way from Tasmania, have joined the trade organisation showing just how important this cause is to the cider industry, at least in the UK. Members of the trade organization now have a generic logo that can be stuck to bottles to indicate that the cider has 100% juice content and has not been made from concentrate. “These are wines – they just come from apples, not grapes” say the organisers. The Cider is Wine trend has found its way to Ceres Valley in South Africa where a new cider made from 100% freshly pressed and naturally fermented apples is making waves. Known as Loxtonia, the new cider has already created a name for itself, becoming a gold medalist at the Cape Town Festival of Beer Awards and striking gold for its looks at the World Cider Awards for Best Label Design. ROSÉ CIDER AND ICE CIDER GET RECOGNITION As rosé wine and champagne continue to shine, rosé cider has fully taken the booze scene by storm, thanks to a bunch of cideries being bold enough to expand the pink-hued wine trend that has touched a variety of categories across the alcohol space from gin to tequila and even vodka. This type of cider is made with red fleshed apples that give it a bright taste and color. Angry Orchard, MillerCoors, Strongbow and Bold Rock are just a few of the brands that have jumped onto the trend to the delight of cider drinkers. Angry Orchard’s Rose cider is inspired by the light and fruity elements of a rose wine and made from six different apple varieties, including a red flesh apple that helps give the beverage its flavor and distinctive color, as well as a hint of hibiscus. Similarly, MillerCoors, Bold Rock and Strongbow’s rose ciders have an apple base, but also include ingredients like pears and rose petals. “Rose is up on the bell curve, it’s a prevalent trend, but it’s not reached its apex,” says Ken Harris, managing partner at Cadent NOV/DEC 2021 | FOOD BUSINESS AFRICA

BEVERAGE TECH AFRICA: TRENDS IN CIDER PROCESSING

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US$15.84 BILLION ESTIMATED VALUE OF GLOBAL CIDER MARKET IN 2025 Consulting Group. Rosé cider may be taking the market by storm, but the Ice Cider is dominating the niche cider market. First discovered in Canada by Christian Barthomeuf, a winemaker from Dunham, its production is fast spreading across geographies as consumers look for the next unique cider product. Unlike in normal cider preparation, the pressed apple juice for ice cider is left in the natural cold for several months to force watery ice crystals to form. The remaining thick apple syrup is then slowly fermented. The end process is a golden to amber-hued ice cider with rich apple notes and pleasant, sweet-to-tart flavor profiles. After many years of being confined to Canada, the drink has been spreading across geographies. In December 2014, Quebec ice cider obtained a protected appellation (IGP), which establishes international rules and requirements on production. This makes it possible for other regions across the globe to produce the niche product to the required specifications. SUSTAINABILITY INFLUENCES PROCESSING Compared to other alcoholic beverages, cider has a sustainability advantage because it is fermented without heat, more like wine. That means cider can be made using less energy. Cideries also don’t mind ugly apples like supermarkets do, they therefore play a huge role in limiting the amount of fruit that could have gone to waste. Orchards farmed exclusively for cider also don’t use pesticides which could have runoff into lakes and streams A low carbon footprint is however not enough these days, industries are working towards net zero carbon emissions, so room has always been there for even further improvement. Today companies have been able to lower their carbon footprints further by shifting to renewable energy. Production efficiency has also come into play, helping many cideries cut down on water usage. Cideries have also realized that the more apples are locally sourced, the more sustainable they are. This has influenced many to set up near orchards to prevent emissions which could have been associated with transportation. South Africa's Whitfield family, which started making premium cider from their own orchards at Loxtonia farm in 2013 are a shining example of cideries using apples within their vicinity. To offset emissions that they cannot economically get 58

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rid of, some cideries have also resorted to plant orchards to absorb CO2. Orchids are rich carbon deposits, locking the gas in unharvested fruit and leaves, soils unploughed and undisturbed for generations protecting it from erosion and allowing soils to become richer and deeper. The plantations also provide a lush bio-diverse habitat especially for birds, mammals and insects, nectar for bees, butterflies and moths. Leading UK cidery Aston Manor planted another 1000 acres last year to help offset the emissions it releases to the atmosphere. Stepping an inch away from processing, packaging is another major source of carbon emissions for cideries, and the drink cannot be described as sustainable if its container was not. Most ciders come packaged in glass bottles, which is easily recyclable compared to plastic. However, glass is heavier to transport and requires greater

care during handling as they can break. This has led to a shift to aluminium packaging, which can be recycled indefinitely and is much lighter to transport. The ability for glass to be reused however makes it an attractive packaging especially for on-trade retail channel. Most brands, including Kenyan Originals, therefore choose to have their products in both formats to take advantage of the benefits offered by both packaging materials. A HEALTHIER OPTION FOR ALCOHOL LOVERS Cider has tremendously grown particularly in Africa and North America. The drink which was previously confined to Europe has broken borders and can be found amongst millennials having fun in a fast-paced club in Nairobi, Kenya or Durban, South Africa. To keep this upward trajectory, cidermakers have been innovating around flavours, fermentation processes, and base fruits among many others. The future of the drink continues to be bright, because unlike other alcoholic drinks, cider is gluten free and nutrient-rich, containing pectin, B vitamins, biotin, folic acid, vitamin C and a healthy dose of antioxidants. This positions it well in a world where consumers are ditching high alcohol and unhealthy drinks for healthier alternatives. FBA FOODBUSINESSAFRICA.COM

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

Snack processors seek new ways to meet changing consumer needs as consumption grows

By Paul Ongeto

alued at US$427 billion in 2020, the global snack food market is forecast to register a CAGR of 3.37% during the forecast period (2021-2026), according to Mordor Intelligence. Manufacturers thus have an opportunity to grow and thrive in this sector. The snack market is however under pressure to shed its association with guilty consumption through the introduction of healthier ingredients. More sustainable processing and packaging is also in demand to help snack makers deliver the next generation of nutritious and authentic snackable moments. In this article we review FOODBUSINESSAFRICA.COM

some of the trends in snack processing that will help players in the field deliver on this promise. KEEPING UP WITH A HEALTH-CONSCIOUS CONSUMER Ingredients provider ADM’s research finds that 31% of consumers are purchasing more items tailored for their health, while 50% report a preference for snacks that naturally contain beneficial ingredients. Manufacturers have responded in kind and now produce a wide range of nutrient-dense snacks with functional health benefits aimed at supporting immune systems, enhancing mood, and sustaining energy. NOV/DEC 2021 | FOOD BUSINESS AFRICA

MILLING & BAKING AFRICA: TRENDS IN SNACK PROCESSING

Trend setter in the field, Deux Foods has launched a line of functional, plant-based cookie doughs that are enhanced with immunity boosting vitamins, collagen, and protein. Happy Family Organics has on the other hand, introduced Happy Mama Lactation Cookies, designed to support breastfeeding mothers and their unique nutritional needs. Manufacturers may pack functional ingredients in their snacks, but the giant in the room remains the high salt and sugar levels that are usually in most snacks. SNACK MAKERS ARE NOW PRODUCING A WIDE RANGE OF NUTRIENT DENSE SNACKS WITH FUNCTIONAL HEALTH BENEFITS AIMED AT SUPPORTING IMMUNE SYSTEMS, ENHANCING MOOD, AND SUSTAINING ENERGY For the savoury snacks, salt has been a problem, with countries from the UK, to most recently the US, introducing salt reduction targets to prevent excessive intake of the seasoning. Calls for lower amounts of salt has forced manufacturers to reformulate their products to meet these more stringent targets. Greater success has been found in products relying on other ingredients to provide the flavor, not just salt, as formulators can work within the seasoning system to offset any flavor loss when salt is reduced. This was the key to Land O’Lakes’ entire strategy to sodium reduction, according to John McDonald, Ph.D., R.&D. director, food, 60

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innovation and technology group, Land O’Lakes. Snacks with high sugar levels like chocolates are also being reformulated often with low-calorific sweeteners to maintain their level of sweetness while doing away with the harmful calories. PLANT-BASED BOOM The plant-based boom has taken the food industry by storm. From plant-based meat to milk and now snacks, the trend shows no sign of stopping. According to Expert Market Research, the market is expected to grow at a CAGR of 8.7% in the forecast period of 2022-2027 to reach a value of US$57 billion by 2026. Given its potential, snack producers are quickly jumping on the bandwagon, producing delectable treats from an expanded range of plant sources. Plant-based and freefrom brand Gosh! has for instance launched chilled, readyto-eat Snack Bites in two tasty flavours for consumers seeking plant-based snacks. The Smokey BBQ Sweet Potato is made from sweet potato, sweetcorn and black beans and has a smoky flavour inspired by the deep South while the Moroccan Spiced Veg is comprised of Chickpeas and red peppers that are paired with dates, apricots, herbs and spices inspired by the cuisine of North Africa. In Kenya, Bdelo is at the forefront of the plant-based revolution with its healthy and tasty Maize Tortilla Chips & Tortillas that are 100 % naturally seasoned and are gluten and preservative free. As the plant-based wave continues to gather momentum, more brands are expected to join in while existing ones continue experimenting with more FOODBUSINESSAFRICA.COM

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US$427 BILLION ESTIMATED VALUE OF GLOBAL SNACK MARKET IN 2020 plant-based options that have never been really considered snack worthy. "We were able to raise $10 million this year due to the interest in plant-based snacking, and we don’t foresee this trend changing anytime soon," says Bill Glaser, CEO of Outstanding Foods, a manufacturer of gluten-free, vegan and kosher snack chips. UPCYCLING CREATES NEW SNACKS The need to cut down on food waste has had snack makers exploring innovative ways to make the most out of material that would have otherwise ended up as waste. From turning left over cacao fruit to a delectable fruit and nut bite to converting left over pulp into a crunchy, high fiber, satiating chips, snack makers are bringing back leftovers to our tables. Rachael Mamane sees upcycled snacks—a burgeoning category of food products made from would-be-wasted ingredients—as the industrial food complex apologizing for its extravagance. “We are observing a process that ends in waste and identifying a use for that waste,” Mamane says of the scraps and by-products marketed in perky packages. Africa has an inexhaustible list of snacks that have been made from upcycled fruits and so does the rest of the world. Koa, a Swiss-Ghanaian startup, is leading the upcycling trend from the front, repurposing the pulp and juice of the cocoa fruit into cocoa fruit juice and powder for use in enhancing flavours of other snacks. The company says its products have found excellent usage in chocolate, bakery, and ice cream products, as well as beverages. In Ethiopia, a public-private partnership is repurposing leftover papaya to develop ‘affordable’ and ‘nutritious’ fruit bars enriched with whey protein, vitamins and minerals for locals. Elsewhere, Renewal Mill turns the leftovers from soymilk production into a product called okara flour, which has a whopping amount of protein and fiber: seven grams and twenty grams per half cup, respectively. The US food startup notes that the addition of Okara flour into standard baked goods can help improve their macronutrient profiles to an impressive degree. Given that upcycled snacks are made with produce and animal products that would otherwise go to waste, these items make people feel better about their consumption habits. The trend is certainly going to stay with us for a long time as consumers seek out brands that will aid them in the process of living more sustainably. Snack makers FOODBUSINESSAFRICA.COM

thus have a lot more to gain from innovating with upcycled ingredients. Growth is also promised, as the upcycled food waste industry that was worth US$46.7 billion in 2019 is expected to register a CAGR of 5% for the next 10 years. A DRIVE TOWARDS SMALLER SNACK PORTIONS A crackdown on portion sizes has also seen snack makers shift from larger share-size bags to single portion packets, influenced by the need to encourage people to snack with intention and monitor how much they eat. The British Medical Journal (BMJ) notes that when it comes to snacks, portion control is an issue, stating that norms for what constitutes a suitable amount to consume are shaped by food portions we routinely encounter in supermarkets. In response to a call for portion reduction, snack industry leaders like Mondelez have started to reconfigure processing lines to produce snacks in smaller portions than they used to. Mondelez recently announced that it plans to generate 20% of its snack’s revenue from portion-controlled products—individually wrapped items containing 200 calories or less—by 2025. Healthy snack company Kind, recently acquired by the snacks giant, has taken the lead and introduced KIND Minis, a small version of the company's classic bars. The almost bite-sized bars pack 100-calories (or less) and are effectively half-sized versions of the original product. As people increasingly become weary about their calorie intake and studies advocating for smaller portion sizes continue to grow, we can only expect more snack

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MILLING & BAKING AFRICA: TRENDS IN SNACK PROCESSING

companies to join the bandwagon. Teri Johnson, the divisional sales manager at tna solutions, advises snack makers to invest in packaging systems that offer flexibility in packaging size, ultra-high speeds, and low reject rates. “This will help manufacturers successfully implement smaller packaging sizes that fit within guidelines,” she adds. SUSTAINABILITY IMPACTS SNACK PROCESSING Snack makers, just like other food enterprises, feel the pressure from consumers and governments to improve sustainability credentials. In snack processing, focus on sustainability has started right from sourcing with manufacturers choosing sustainably sourced ingredients. Recognising the importance of sustainability, Ghanaian chocolate startup WITH ALL SNACK MAJORS FROM PEPSICO TO MONDELEZ AND MARS INC ANNOUNCING AMBITIOUS NET ZERO COMMITMENTS, SUSTAINABLE SNACK MANUFACTURING AS A TREND IS BOUND TO STICK Fairafric sources 100% of its cocoa from organic farms. The sustainably sourced cocoa has greatly contributed to the company’s carbon neutral status. Apart from sourcing, snack makers are also researching options in equipment and processing technologies to save on energy and cut down on emissions. In packaging, where the greatest saving can be achieved, Vertical Form Fill Seal (VFFS) have become popular pieces of packaging equipment. According to Teri, VFSS are designed to increase productivity without investing more resources, such as time, energy and manpower, or introducing additional machines. This enables producers to streamline their packaging process with a single piece of equipment to deliver optimized packaging speeds and yield to achieve maximum productivity and energy savings. VFSS can also support producers in reducing product waste to levels as low as 0.5 percent, elevating the brand and/or products’ sustainability credentials, adds Teri. 62

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Apart from packaging, modern snack making technologies offer other sustainable features that can help reduce energy usage and waste. Power saving software, or features such as ‘standby time,’ for example, ensure equipment is only using energy when necessary. Furthermore, less product damage equals less waste. Further, equipment such as conveying systems that incorporate a gateless design allow for gentle product transfer and reduced breakage. Other conveying technology that can help improve efficiency, includes accurate seasoning, as well as temperature control on fryers. The former ensures the product isn’t over-seasoned, therefore avoiding raw material wastage by overuse, while the latter ensures waste of the product through burning or quality issues is kept to a minimum. With all snack major from PepsiCo to Mondelez and Mars Inc., announcing ambitious net zero commitments, sustainable snack manufacturing as a trend is bound to stick. A CHALLENGING BUT FULFILLING JOURNEY In a nutshell, snake makers are trying to make their product as healthy and as sustainable as possible. The endeavor however does not come without costs, as consumers are not willing to sacrifice on taste in exchange for a healthy or sustainable product. “New healthy ingredients can have different taste, texture, and mouthfeel that has to be incorporated into a product in a way that does not sacrifice taste,” explains Robert Schumann, director of marketing for KPM Analytics. “New ingredients may also affect how the product is manufactured, which requires new formulations and engineering to mass produce. A good example is the gluten-free trend, where non-wheat replacement ingredients present a complex challenge to new product formulation and manufacture.” Onboarding newer sustainable technologies also comes with cost implications that drive up the cost of the final product. Despite these challenges, companies of all sizes from snacking giant Mars Inc. to Ghanaian startup Koa have found innovative solutions to keep up with consumer trends. Their success is proof that it's possible to give consumers what they want - a healthy and sustainably produced snack. FBA

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MIND diet linked to better cognitive performance Researchers have found that older adults may benefit from a specific diet called the MIND diet even when they develop these protein deposits, known as amyloid plaques and tangles.

ging takes a toll on the body and on the mind. For example, the tissue of aging human brains sometimes develops abnormal clumps of proteins that are the hallmark of Alzheimer's disease. How can you protect your brain from these effects? Researchers at Rush University Medical Center have found that older adults may benefit from a specific diet

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called the MIND diet even when they develop these protein deposits, known as amyloid plaques and tangles. Plaques and tangles are a pathology found in the brain that build up in between nerve cells and typically interfere with thinking and problem-solving skills. Developed by the late Martha Clare Morris, ScD, who was a Rush nutritional epidemiologist, and her colleagues, the MIND diet is a hybrid of the Mediterranean and DASH NOV/DEC 2021 | FOOD BUSINESS AFRICA

FOOD NUTRITION & HEALTH: MIND DIET

(Dietary Approaches to Stop Hypertension) diets. Previous research studies have found that the MIND diet may reduce a person's risk of developing Alzheimer's disease dementia. Now a study has shown that participants in the study who followed the MIND diet moderately later in life did not have cognition problems, according to a paper published on Sept. 14 in the Journal of Alzheimer's Disease. WE FOUND THAT A HIGHER MIND DIET SCORE WAS ASSOCIATED WITH BETTER MEMORY AND THINKING SKILLS INDEPENDENTLY OF ALZHEIMER'S DISEASE PATHOLOGY AND OTHER COMMON AGE-RELATED BRAIN PATHOLOGIES "Some people have enough plaques and tangles in their brains to have a postmortem diagnosis of Alzheimer's disease, but they do not develop clinical dementia in their lifetime," said Klodian Dhana, MD, PhD, lead author of the paper and an assistant professor in the Division of Geriatrics and Palliative Medicine in the Department of Internal Medicine at Rush Medical College . "Some have the ability to maintain cognitive function despite the accumulation of these pathologies in the brain, and our study suggests that the MIND diet is associated with better cognitive functions independently of brain pathologies related to Alzheimer's disease. In this study, the researchers examined the associations of diet -- from the start of the study until death – to brain pathologies and cognitive functioning in older adults who participated in the Rush Alzheimer's Disease Center's ongoing Memory and Aging Project, which began in 1997 and includes people living in greater Chicago. The participants were mostly white without known dementia, and all of them agreed to undergo annual clinical evaluations while alive and brain autopsy after their death. The researchers followed 569 participants, who were asked to complete annual evaluations and cognitive tests to see if they had developed memory and thinking problems. 64

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Beginning in 2004, participants were given an annual food frequency questionnaire about how often they ate 144 food items in previous year. Using the questionnaire answers, the researchers gave each participant a MIND diet score based on how often the participants ate specific foods. The MIND diet has 15 dietary components, including 10 "brain-healthy food groups" and five unhealthy groups -- red meat, butter and stick margarine, cheese, pastries and sweets, and fried or fast food. To adhere to and benefit from the MIND diet, a person would need to eat at least three servings of whole grains, a green leafy vegetable and one other vegetable every day -- along with a glass of wine -- snack most days on nuts, have beans every other day or so, eat poultry and berries at least twice a week and fish at least once a week. A person also must limit intake of the designated unhealthy foods, limiting butter to less than 1 1/2 teaspoons a day and eating less than a serving a week of sweets and pastries, whole fat cheese, and fried or fast food. Based on the frequency of intake reported for the healthy and unhealthy food groups, the researchers calculated the MIND diet score for each participant across the study period. An average of the MIND diet score from the start of the study until the participant's death was used in the analysis to limit measurement error. Seven sensitivity measures were calculated to confirm accuracy of the findings. "We found that a higher MIND diet score was associated with better memory and thinking skills independently of Alzheimer's disease pathology and other common age-related brain pathologies. The diet seemed to have a protective capacity and may contribute to cognitive resilience in the elderly." Dhana said. "Diet changes can impact cognitive functioning and risk of dementia, for better or worse," he continued. "There are fairly simple diet and lifestyle changes a person could make that may help to slow cognitive decline with aging, and contribute to brain health." FBA

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PACKAGING: FLEXIBLE PLASTIC PACKAGING

Plastic packaging industry evolves to meet new demands for sustainability In this comment piece, Vaishali Malde of Packaging Industries Ltd looks to the future of flexible plastic packaging and its' sustainability

By Vaishali Malde

ackaging is ubiquitous in our daily lives, and it is one of the most vital components of sectors like Fast-moving consumer goods, pharmaceuticals, food, and beverage, among others. It protects and preserves products from damage and is a crucial marketing and communication tool for businesses. Wooden boxes, glass, paper bags, tin, metals, and aluminum, all used as packaging, can be traced to the genesis of human existence.

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PLASTIC PACKAGING EVOLVES TO MEET NEW DEMAND Plastic packaging materials have been thoroughly developed over the many decades of their invention. The industry has enjoyed strong growth, driven by the characteristics and properties that have accommodated the consumers' demand for convenience. More and more plastic polymers have been improved. They have been used to preserve food, protect from contamination, enhance the quality of life, and meet the needs of consumers and the global population. Flexible packaging has combined the mechanical and NOV/DEC 2021 | FOOD BUSINESS AFRICA

PACKAGING: FLEXIBLE PLASTIC PACKAGING

physical features of multiple layers of different polymers to balance functionality, environmental concerns, and business considerations. They are characterized by excellent durability, providing an excellent barrier to gases and moisture. It further minimizes food waste and overall product breakage with advanced convenience features and low costs. THE PLASTIC WASTE CHALLENGE The visceral images of the effects of ocean plastics pollution have stirred up consumer sentiment around the world. The mismanagement of plastic waste was majorly due to: 1. Packaging recyclability: Packaging is either difficult to recycle in existing systems or cannot be recycled, especially multi-material packaging, which poses a challenge. 2. Packaging recycling and leakage: the packaging demand growth in many regions is too high, and waste collection and recycling systems are not in place at the required scale. Many materials are therefore lost forever as a resource despite the potential for reuse and recycling. AS PER US EPA, FLEXIBLE PLASTICS PRODUCE 80% LESS SOLID WASTE THAN PAPER AND OTHER MATERIALS AND REQUIRE 40% LESS ENERGY TO PRODUCE Myths, misconceptions, and the eye sores caused by heaps of plastics in landfills have dominated news headlines and public discourse. Nonetheless, attitudes and perceptions towards plastic are changing with initiatives to improve general understanding and stakeholder appreciation of plastic packaging across the broad value

NOV/DEC 2021 | FOOD BUSINESS AFRICA

chains. A COST-EFFECTIVE PACKAGING ALTERNATIVE Various studies show that flexible packaging can save cost up to 10 times compared to other packaging types. As per a study by the United States Environmental Protection Agency (US EPA), flexible plastic bags produce 80% less solid waste than paper and other materials and consume 40% less energy to produce. In addition, the study also stated that a pound of plastic takes 91% less energy to recycle than a pound of paper and other materials. This makes flexible plastic packaging materials more cost-effective than other conventional packaging materials such as paper. When coupled with other advantages offered by flexible packaging, such as increased food shelf

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life, downsizing of packaging, lightweight, and durability, it is the more sustainable choice. STAKEHOLDER PARTNERSHIPS KEY TO A CIRCULAR ECONOMY Kenya has been trying to focus intensively on the problem of plastic in the environment, which led to the government announcing the Plastic Bag Ban in 2017 and the singleuse plastic ban in national parks, beaches, forests, and conservation areas in June 2020. The increase in the government's emphasis on managing plastic packaging waste appropriately through applying the exemption for plastic packaging for various products controls packaging production, eliminating excess packaging in the market. The exemptions are issued on multiple levels to ensure that packaging produced is managed and reused or recycled through takeback systems or joint producer efforts through producer responsibility organizations. Creating solutions to shared challenges across an

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entire industry requires successful collaboration through the value chains. Tthe formation of the Kenya Extended Producer Responsibility Organization (KEPRO) to accelerate the growth of Kenya's recycling ecosystem has been noted as a positive step in curbing the issues relating to waste management. KEPRO is working with material producers, representatives of packaging companies, brand owners and retailers, waste sorting and recycling companies, and end-users using flexible plastic packaging to create a transparent system that incentivizes high-quality recycling FMCG COMPANIES AND RETAILERS MUST SHIFT TO SUSTAINABLE PACKAGING IN RESPONSE TO GROWING CONSUMER AWARENESS AND INCREASING REGULATORY REQUIREMENTS. of a material that has historically gone to waste. They are implementing a proven EPR model embedded within the environmental laws and legal frameworks of Kenya. KEPRO has a membership of over 200 and is constantly growing. Its vast membership is driving towards the longterm ambitions of ensuring flexible plastic recycling is Kenya-based, fully circular, and facilitated by household recycling collections. Only such a comprehensive approach to the subject can develop a circular economy and reduce the impact of plastic waste on the environment. The government's efforts in ensuring regulations are in place to legislate the activities of various industries across the value chain are noted through the development of the Extended Producer Responsibility Regulations. It is worth noting that they are in the draft format for now, but, likely, they will soon be gazette and enforced. Through these regulations, producers would be responsible for costs related to plastic waste at the end of their useful life. These regulations drive innovation for sustainable solutions to ensure the products put in the markers comply with the requirements. Achieving the set goals and protecting the environment from the negative impact of human activity is now a task for every link in the value NOV/DEC 2021 | FOOD BUSINESS AFRICA

PACKAGING: FLEXIBLE PLASTIC PACKAGING

therefore reducing the amount of packaging used for the same product weight. We also need to decrease the complexity of flexible packaging and design for its recyclability in the early stages of the packaging development to ensure that the packaging can be recycled within the local infrastructure set in place. This should be done without reducing the efficiency and the performance of the packaging.

chain. This involves cooperation across the value chain to develop functioning solutions and education, especially for end-users who should consciously support closing the circulation of materials. Everyone needs to play their part in ensuring recycling of packaging to make sure that it becomes the valuable material we know it can be as it's too useful to be left in the bin or littered in the environment. As we advance, Fast Moving Consumer Good (FMCG) companies and retailers must shift to sustainable packaging in response to the growing consumer awareness and increasing regulatory requirements. Curbing the use of plastic packaging, however comes with complexities and trade-offs, many of them being far from trivial. The technical and economic feasibility whose cost implications go beyond just packaging material prices and conversion costs. The pressure to reduce packaging cost, material use, and environmental impact shapes new flexible packaging formats. Many packaging firms have launched new packaging designs, collection mechanisms for plastic waste and restructured their processes to optimize, upgrade and adapt to recycle streams for multi-material structures. DOWNSIZING PACKAGING TO CUT ON WASTE As much as downgauging of the flexible packaging has been effective in the past and continues to work, we need to think beyond this and look at options of downsizing the packaging. We do not need to pack, ship, store and sell the air in products. Many multinationals are cutting down on their pack sizes as they do not require so much headspace in their packaged products, reducing the pack size, and 68

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SUSTAINABILITY KEY TO PLASTIC PACKAGING’S FUTURE At Packaging Industries Limited, we are committed to a sustainable transition and innovation in the plastic packaging sector to ensure that no packaging becomes waste. We also focus on developing solutions for preventing food waste using packaging, providing the extension of the shelf life for as long as possible. Food waste is a considerable concern for climate change, and there is plenty of evidence that packaging has the protentional to reduce food waste. Most of the reductions in food waste in developed nations have come from better refrigeration or genetic modification; however, this is not always the case in developing countries. Plastic is excellent for preserving many foods where exposure to oxygen causes decomposition, meat, and fish, for example. Studies show greenhouse gas emissions from food waste are much higher than packaging waste. Decisions for suitable packaging solutions for any product must be taken after IT IS ESSENTIAL TO UNDERSTAND THAT THERE WILL ALWAYS BE A NEED FOR PLASTIC PACKAGING. WE SHOULD FOCUS ON WORKING TOGETHER TO MAKE SURE IT GETS RECYCLED AT THE END OF ITS USEFUL LIFE AND ITS VALUE IS CONTINUALLY REALIZED THROUGH A CIRCULAR ECONOMY APPROACH conducting a proper impact study or Life cycle analysis and the inherent socio-economic aspects. COP26 has ended and the negotiators have left the building with the dust settling on the Glasgow Climate pact. Despite not solving everything, it achieved more than many thought possible in advocating and working towards a common goal of moving from "aspiration to action" to keep alive the targets of limiting global temperature rise to 1.5°C. Let's do our part to make a positive change. Let's be precompetitive and collaborate to find solutions together. It is essential to understand that there will always be a need for plastic packaging. It functions like no other material and has properties that enable the shelf-life extension of food products and reduce food waste. It's light, waterproof, air-tight, and most importantly, transparent. We should focus on working together to make sure it gets recycled at the end of its useful life, and its value is continually realized through a circular economy approach. FOODBUSINESSAFRICA.COM

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Food Business Africa Nov/Dec 2021

Articles inside

Growing dairy industry in Africa taps more investments as demand rises

Plastic packaging industry evolves to meet new demands for sustainability

Trends in Cider Processing

Snack processors seek new ways to meet changing consumer needs as consumption grows

MIND diet linked to better cognitive performance