Food Business Africa - Aug/Sept 2023

Food Africa Business

KWV

CEO John Loomes shares his plans for the future of KWV, one of Africa’s largest wines and spirits companies.

FOOD STARTUP

AFRICA: AMONU CHOCOLATES

AFRICA BREWING INDUSTRY OUTLOOK

DAIRY INDUSTRY IN ZIMBABWE

NITROGEN-INFUSED BEVERAGES

MEAT INDUSTRY IN NAMIBIA

INGREDIENTS FOR MOOD & COGNITION

OBIPEKTIN from APECX is a natural fibre, which is mainly obtained from apples and citrus fruits. It offers natural gelling, thickening and stabilising properties. OBIPEKTIN can complement or even replace other texturising ingredients in many applications – highly functional and very versatile.

Advantages of OBIPEKTIN from APECX

 Flexible pectin with versatile use

 Perfect texture and mouthfeel for food and beverage products

 Plant-based, suitable for vegetarians and vegans

 Halal, kosher, non GMO, FSSC 22000 certified

Bio Food Products Ltd: BioActive Power yogurt drink & Orange Biscuit Yogurt | Koa: cocoa fruit juice | Lactalis South africa: Peanut butter flavored milk | Dairyland: Dairy-Free Vegan Ice Cream | Pearl Dairy: VitaZ soft drink & Gluco Power B energy drink | Bila Shaka: Capitan Lager

MEAT BUSINESS AFRICA

56 Meat Industry in Namibia: More investments needed even as sector turns East in search of new markets

58 Brewing majors, craft brewers battle for a share of world’s last frontier market for beer

65 Ingredients for mood and cognition to headline the next wave of functional food and drink launches

My Company Profile: KWV

South Africa’s premier wine and spirits company KWV receives a fresh burst of energy

32

Restoring the Ghanaian spirit in every bar of chocolate

Food Africa Business

FOUNDER & PUBLISHER

Francis Juma

SENIOR EDITOR

Paul Ongeto

EDITOR

Abel Ndeda

ASSOCIATE EDITOR

Mary Wanjira

BUSINESS DEVELOPMENT DIRECTOR

Virginia Nyoro

BUSINESS DEVELOPMENT ASSOCIATE

Hellen Mucheru

HEAD OF DESIGN

Clare Ngode

CINEMATOGRAPHER

Newton Lemein

ACCOUNTS

Jonah Sambai

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

Issue 58 highlights the best of Africa's food industry and what is yet to come

Welcome to the 58th issue of Food Business Africa Magazine.

This edition launches just after our Food Industry Week, where we successfully hosted three events. We began with the Africa Sustainability Symposium at Safari Park in Nairobi and concluded with the Africa Food Awards at the same hotel.

The highlight was the AFMASS Food Expo, which took place at the Sarit Expo Center in Nairobi's Westlands Business District. The events were a resounding success, and we have included a pictorial in the magazine to provide you with a glimpse of how the events unfolded.

Our main feature story is KWV. With a presence in over 100 markets worldwide, the South African-based company is undeniably one of the largest wines and spirits companies in Africa. I invite you to read and discover the company's revitalized energy under the leadership of the newly appointed CEO, John Loomes.

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.

Our startup feature section resurfaces again in this issue, highlighting Amonu Chocolate, a Ghanaian artisanal chocolate company that is striving to promote Ghanaian chocolate on the global stage.

Elsewhere in the magazine, we highlight the dairy industry in zimbabwe and the deliberate efforts the government and private sector players are making to restore the country's

former glory as a leading milk exporter in Africa.

We also look at the meat industry in Namibia and current efforts by the state to secure new markets in the East.

With cognition and mood becoming top consumer concerns, companies need to formulate products to meet these needs. We explore some of the top ingredients that would make this possible. We also highlight the latest trends in nitrogen-infused beverages, as well as explore the status of the brewing industry in Africa.

With a host of other insightful news from the food industry, both locally and internationally, we hope that you enjoy your read.

Paul Ongeto, Senior Editor FW Africa

Introducing Functional Beverages: Fortify Your Health with Our Distinct Health Ingredients

At Kerry, we are committed to becoming our customers' most valued partner. Our mission is to empower beverage manufacturers to create cutting edge products that promote health and wellness. With our range of five distinct health ingredients, your functional beverages will reach new heights of excellence.

Wellmune, a unique yeast beta glucan derived from baker’s yeast (Beta 1,3/1,6 glucan). Wellmune takes immune health to the next level, backed by rigorous clinical trials. Suitable for the whole family, from 1 year old and beyond, it's the ultimate choice to fortify your energy drink with immune and vitality boosting properties.

Address mild osteoarthritis and relieve pain with Ayuflex®, derived from the ancient Indian Ayurvedic fruits of Terminalia chebula. Scientifically proven and available as an aqueous extract, Ayuflex is your ally in combating joint discomfort and improving joint mobility. Add Ayuflex to your fruit juice for a natural and effective solution that promotes joint health and relieves symptoms of mild osteoarthritis.

Sensoril is a high purity, patented aqueous extract of ashwagandha root and leaves. Clinically trialed and featuring enhanced levels of bioactive compounds, Sensoril delivers outstanding results. From enhancing muscle strength to improving stress tolerance and promoting cognition, Sensoril is the key to unlocking peak performance. Add Sensoril to your energy drink to provide a boost of cognitive and physical support.

Unleash your full potential with PrimaVie®, our Biome Optimized Shilajit™ sourced from distinct biological ecosystems and processed using Green Chemistry Principles. Boost total and free testosterone levels, increase ATP production, and enhance endurance with PrimaVie. Incorporate PrimaVie into your energy drink to take your performance to new heights.

Capros is a super antioxidant and powerful adaptogen, for promoting cardiovascular health. Capros is standardized to low molecular weight hydrolysable tannins and is water soluble, making it an ideal addition to both fruit juice and energy drinks. Enjoy its remarkable benefits, including support for cardiovascular and endothelial function, as well as promoting a healthy lipid ratio.

Enrich dairy and dairy alternative drinks with Eupoly 3. Eupoly 3 is omega 3 oils of DHA and EPA. It brings a host of benefits, from supporting heart health to promoting brain function and reducing inflammation. It's the perfect addition to dairy and dairy alternative beverages, ensuring your consumers enjoy the full spectrum of wellness benefits.

FW AFRICA UPCOMING EVENTS 2024

HEALTHCARE FOOD INDUSTRY

Co-located with:

AFRICA & WELLNESS HOSPITALS

EXPO

Afmass UGANDA EXPO FOOD

March 7-9, 2024

Visa Oshwal Centre, Nairobi, Kenya

www.africahealthexpo.com

AFRICA Food Safety SUMMIT

May 2024

Mombasa, Kenya

www.africafoodsafetysummit.com

AFRICA

BUSINESS SUMMIT

The Africa CEO & Leadership Forum

March 7-9, 2024

Visa Oshwal Centre, Nairobi, Kenya

www.africahealthexpo.com/care

FOOD INDUSTRY

FOOD Afmass EXPO

The Future of Food in Africa

June 2024

Sarit Expo Centre, Nairobi, Kenya

www.afmass.com

April 2024

Kampala, Uganda

www.afmass.com/ug

Co-located with:

Dairy

AFRICA MANUFACTURING EXPO

June 2024

Sarit Expo Centre, Nairobi, Kenya

www.dairybevafrica.com

LEADERSHIP, ENTREPRENEURSHIP & SUSTAINABILITY

Co-located with:

June 2024

Mombasa, Kenya

www.africabusinesssummit.biz

AGRICULTURE

AFRICA EXPO Fresh Produce

AFRICA FUTURE FOOD SUMMIT

September 2024

Naivasha, Kenya

www.africafuturefoodsummit.com

August 1-3, 2024

Visa Oshwal Centre, Nairobi, Kenya

www.africafreshproduceexpo.com

FOOD INDUSTRY

June 2024

Mombasa, Kenya

www.africasustainability symposium.com

Co-located with:

AFRICA FARMTECH

Afmass NIGERIA EXPO FOOD

November 2024

Lagos, Nigeria

www.afmass.com/ng

August 1-3, 2024

Visa Oshwal Centre, Nairobi, Kenya

www.africafarmtechexpo.com

Co-located with:

Dairy

AFRICA MANUFACTURING EXPO

November 2024

Lagos, Nigeria

www.dairybevafrica.com

The SAAFoST biennial congress and exhibition is the leading event for food science and technology in Southern Africa. The theme for Congress 2023 is "Future Foods: Smarter and More Sustainable Solutions," focusing on sustainability, innovation, and consumer trends.

28 - 30 Aug 2023

Cape Town International Convention Center

www.saafost2023.org.za

The Kenyan Food Event is the biggest exhibition serving the food industry across East Africa. It offers a pivotal platform for those in the industry looking for new suppliers, producers, and service providers to enhance their business.

05 - 07 Sep 2023

The Sarit Expo Centre, Nairobi, Kenya

www.kenyanfoodevent.com

The 16th African Dairy Conference and Exhibition 16th AfDa is a premier event for the dairy industry in Africa. This year's event is set to celebration of all things dairy with fully integrated sessions handson workshops and an extensive exhibition showcasing the latest technologies and products from leading dairy industry suppliers.

11 – 15 Sep 2023

Hotel Africana – Kampala, Uganda

dairyafrica.com/afda/ conference

The Kenyan Drink Event (KDE) is the biggest exhibition serving the drink industry across East Africa. The industry-leading event offers a pivotal platform for those in the industry looking for new suppliers, producers, and service providers to enhance their business.

05 - 07 Sep 2023

The Sarit Expo Centre, Nairobi, Kenya

www.kenyanfoodevent.com

AGRF is the world's premier forum for African agriculture and food systems, bringing together stakeholders to take practical action and share lessons that will move African food systems forward.

05 - 07 Sep 2023

Julius Nyerere international convention centre, Dar es Salaam, Tanzania

agrf.org/summit/2023

The AAPHCE is a biennial event organized by the African Union Commission and its partners. It aims to reduce postharvest losses in Africa by 50% by 2025, in line with the 2014 Malabo Declaration.

19 - 22 Sep 2023

African Union Commission, Addis Ababa, Ethiopia aaphce.com

THE KENYAN DRINK EVENT 2023 AGRF SUMMIT 2023

AAPHCE - All Africa Postharvest Congress And Exhibition 2023

The Grain & Milling Expo is an event for professionals in the milling and cereal industries in Morocco and across Africa and the Middle East. It serves as a platform for showcasing new products, equipment, installations, and services, facilitating information exchange, sharing experiences, and staying updated on advancements in the milling and cereals sector through round tables and conferences.

04 - 05 Oct 2023

Parc d'Expositions Office Des Changes, Casablanca, Morocco

expo.grainmillingexpo.ma

Agrena Middle East is the largest and most prestigious Poultry, Livestock, and Fish Show in the Middle Eastern region. It targets the flourishing Poultry, Livestock, and Fish industry in one of the biggest markets for such products in the Middle East, with an emphasis on providing the best possible opportunities to broaden your horizons and see the latest technology, products, and services.

12 - 14 Oct 2023

Egypt International Exhibition Center, Cairo, Egypt agrena.net

Morocco FoodExpo is the international portfolio of Food and Hospitality events. It allows the companies to meet more food sector buyers, face-to-face, in one location. It also highlights the latest solutions and brings together the most important innovators, and influencers.

17 - 19 Oct 2023

Parc d'Expositions Office Des Changes, Casablanca, Morocco

www.moroccofoodexpo.com

FOOD-BEVERAGES-KITCHEN AFRICA 2023

Agro-Dairy & Poultry East Africa

is a renowned international trade fair where exhibitors showcase their prominent products. It brings together various exhibitors and highlights the bright aspects of aquaculture, agriculture equipment, poultry and livestock, tractors, veterinary products, and irrigation.

27 - 29 Oct 2023

Sarit Expo Centre, Nairobi, Kenya

www.mxmexhibitions.com

The Food-Beverages & Kitchen East Africa is an annual trade fair for the food and beverage industry, as well as kitchen equipment, in Nairobi, Kenya. The exhibition focuses on bakery products, food and food production, beverages and beverage technologies, hospitality and catering, food packaging, and confectionery.

27 - 29 Oct 2023

Sarit Expo Centre Nairobi, Kenya

www.mxmexhibitions.com

GRAIN & MILLING EXPO 2023

AGRENA MIDDLE EAST 2023

MOROCCO FOODEXPO 2023

AGRO & POULTRY AFRICA 2023

NEWS UPDATES

by www.FoodBusinessAfrica.com

KWAL relocates to US$28.3M Tatu City Industrial Park facility

KENYA – Kenya Wine Agencies Ltd (KWAL), a subsidiary of Dutch brewer Heineken, has officially relocated its production site to its newly commissioned Ksh 4 billion (US$28.3m) ultra-modern manufacturing facility.

Located at Tatu City Industrial Park Ruiru, the new facility features stateof-the-art equipment with enhanced capacity to meet ever-evolving

consumer tastes.

The site also hosts a customer distribution center as well as offices that will provide employees with a better working environment, according to the company.

“Our new plant is expected to greatly enhance production capacity, as well as our competitiveness within the East African region,’’ Kuria Muchiru, KWAL Board Chairperson said.

Pharmaceutical company Otsuka to set up US$38M food & energy drinks factory in Egypt

EGYPT – Otsuka Pharmaceutical, a leading Japanese manufacturing company, has announced plans to set up a US$39.8 million healthy food and energy drinks factory in Egypt’s 10th of Ramadan City.

The Japanese giant already has a presence in Egypt through the Egypt Otsuka Pharmaceuticals Company which was set up in 1992.

The Egyptian subsidiary has a factory in the 10th of Ramadan City

that manufactures medicinal products including infusions/injections fluids, amino acids, and tube-feeding equipment.

Egypt Otsuka is planning on exporting healthy food to countries in the Middle East where demand is high due to a growing number of individuals altering their eating habits and embracing a balanced nutritional diet and active lifestyle.

Data Bridge Market Research

analyses that the Middle East & Africa health and wellness food market will grow at a CAGR of 8.3% during the forecast period of 2022 to 2029.

Ahmed Zaghloul, president of Egypt Otsuka, during a meeting with IDA’s Chairman Mohamed AbdelKarim, revealed that apart from the new investment the company was considering launching an initial public offering on the Egyptian Exchange.

Coca-Cola Beverages Kenya loses court of appeal case in Nairobi

KENYA – Coca-Cola Beverages

Kenya has lost a case in Kenya’s Court of Appeal where it sought to maintain the current status quo where its glass packaging is labeled differently from its bottle packaging.

The three-judge bench of Hannah Okwengu, Dr. Imaana Laibuta, and John Mativo unanimously agreed that it was discriminatory for the firm to indicate the nutritional value of its products on plastic bottles but leave out those on glass ones.

Coca-Cola Beverages Kenya

(formerly Nairobi Bottlers Limited) had filed an appeal, arguing that it does not owe the consumers of their products an obligation to provide them with nutritional information, storage, and contact information as held by the High Court in 2018.

The case was filed by Mr. Mark Ndumia Ndung’u to the High Court explaining that the missing nutritional information was essential to enable consumers to know the benefits derived from the consumption of the beverages.

The Africa Fresh Produce Expo will consist of the following Sections:

Agro-Inputs & Chemicals

Rainforest Alliance reinstates trade licenses of James Finlays and Ekaterra Tea companies

conformities…Rainforest Alliance maintained close communication with both the certificate holders and their parent companies throughout this process,” read the statement in part.

“From this time, tea produced and sold by both Ekaterra Tea and James Finlay can once again be sold as Rainforest Alliance certified.”

KENYA – Rainforest Alliance has lifted the suspension of the trade licenses of James Finlays and Ekaterra Tea, allowing the multinational tea firms to resume the sale of their products in international markets.

The alliance had blocked the two firms on May 9 from accessing the international market over what it termed as a failure to conform to the social and management criteria.

The independent investigation was launched by the Rainforest Alliance following an exposé by BBC Africa on how women in tea firms are sexually assaulted for work in Kenya.

In a statement, the international organization said the removal of the ban was due to “corrective actions implemented by the owners”.

“The companies have taken action to close the identified non-

Ugandan milk finds new market in Senegal after Kenyan snub

UGANDA – Impacted by Kenya’s decision to limit import of Ugandan milk, the dairy sector in Uganda has turned its eyes west, securing a new trade partner in Senegal, a country of about 17 million that is heavily reliant on milk imports.

According to Senegal’s President, Macky Sall, Senegal imports dairy products from distant places and would be glad if Uganda could set in and fill the vacuum.

“Senegal imports powdered milk from New Zealand and Brazil and therefore we need to see how we can come and buy your milk,” Sall suggested.

“We also produce a lot of things in Senegal, we produce a lot of ground nuts; there are therefore a lot of possibilities to exchange ideas.”

Earlier, Dairy Development Authority revealed that the country is facing a significant challenge impacting the dairy sector leading to an oversupply of milk that has resulted in 23 million liters being stuck and going to waste.

From Algeria to now Senegal, Uganda has been exploring new markets for its milk to diversify away from Kenya which has restricted access of its products in an effort to protect its own dairy industry.

ACCORDING TO THE ALLIANCE, THE REMOVAL OF THE BAN WAS DUE TO CORRECTIVE ACTIONS IMPLEMENTED BY THE OWNERS.

Kagera Sugar to acquire assets of ailing South African miller Tongaat

SOUTH AFRICA – Kagera Sugar Limited, one of the largest sugar millers in Tanzania, has been selected by Tongaat Hulett’s business rescue practitioners (BRPs) to acquire all the assets of the debt-ridden miller.

The proposed transaction will comprise the acquisition of the entire sugar division of Tongaat Hulett Limited (THL) in South Africa, as well as investments in Zimbabwe, Mozambique, and Botswana.

Kagera owns sugar assets in Tanzania, the Democratic Republic of Congo (DRC), and the Middle

East. The company, the third largest sugar producer in Tanzania is backed by European investors, Norfund, a Norwegian-based development finance institution that committed an investment in the company in the form of a loan in 2020.

“After a rigorous process, we identified Kagera as the preferred candidate,” the BRPS said. “Its exposure to complementary sugar assets in Tanzania and the DRC offers relevant technical and operational knowledge to assist the turnaround of THL’s South African sugar assets.

Kenya spends US$14m in modernizing stateowned dairy processor New KCC

President William Ruto was speaking in Kiganjo, Nyeri County, where he commissioned the Modernised Kenya Co-operative Creameries Kiganjo Factory, on 8th August 2023.

President Ruto said milk production will be doubled in the next five years to expand opportunities for farmers.

He said the Government has put in place a solid plan that will see production increase from 5.2 billion litres to 10 billion litres a year.

Speaking in a separate event, Deputy President Rigathi Gachagua said the modernization of the stateowned processor was in line with government plans to reform the dairy subsector for the benefit of farmers.

AB InBev sells 8 beer brands to Canada’s Tilray for US$85M

KENYA – The government of Kenya has spent US$14 million (KES 2 billion) over the past 7 years to modernize the facilities of state-owned diary processor New KCC, President William Ruto has said.

Mr. Rigathi said that the Government will help the New KCC to acquire new market for its milk products within the national and county government institutions and school-feeding programmes in learning institutions.

CANADA – Anheuser-Busch InBev (AB-InBev) has agreed to sell eight craft brands from its portfolio to Tilray Brands - a Canadian cannabis company- for US$85 million.

The brands which Tilray will acquire include Shock Top; Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Company, HiBall Energy.

The deal, which is expected to close in September 2023, will significantly trim AB InBev’s craft beer portfolio while expanding Tilray’s growing craft holdings, which currently include SweetWater Brewing, Montauk Brewing, Green Flash, and Alpine Beer Co.

The deal will also elevate Tilray Brands towards becoming the fifthlargest craft beer business in the US, up from ninth overall, according to data from the Brewers Association. With the new deal, Tilray Brands has said it will triple its beer production from 4 million cases per year to 12 million.

Wilmar International divests stake in Moroccan sugar miller Cosumar

beet in Morocco. The company is also a refiner of imported raw sugar and a distributor of sugar products.

The carrying value of the investment in Cosumar in Wilmar’s books was $336.2 million as of 31 December 2022.

Simultaneously, Wilmar International has set its sights on two promising ventures in the alternative protein and sustainable agriculture domains.

MOROCCO – Singaporean food processing and investment holding company, Wilmar International, has announced the sale of its minority interest in Moroccan sugar processor Cosumar.

The Singapore-listed agri-food major said the 30% stake will be

MARKET RESEARCH

purchased by “several Moroccan investors” for a deal price of more than Dh5.9bn (US$600m). The transaction is expected to close in the fourth quarter of 2023.

Cosumar’s principal business is the production of sugar through the processing of sugar cane and sugar

The Singapore company is buying 45% of Wilmaco, another business in Morocco engaged in the production and processing of vegetable fats and by-products. The total cash consideration has been set at MAD 85,094,052 (approximately US$8.7 million).

IWSR forecasts “subdued” alcohol beverage growth over the next five years

GLOBAL – New data from IWSR Drinks Market Analysis predicts global beverage alcohol market growth will slow to 1 per cent per annum 2022 –2027, while value is forecast to grow 2 per cent year on year.

A challenging political and economic landscape will make growth for the beverage market difficult, although it will still deliver over $US 21.6 billion to the global economy by the end of this year.

Mark Meek, CEO at IWSR Drinks Market Analysis, said the subdued growth is a response to the rising cost of living seen worldwide.

“The key trends that have underpinned the industry, such as premiumisation, will evolve as consumers respond to the increased cost of living crisis. The industry will, however, still deliver pockets of significant value growth.

“The pandemic also accelerated the rise of trends such as the at-home occasion and moderation; these behaviours are now here to stay,” he said.

The IWSR expects volume growth to shift away from the US and China as India, Mexico and Brazil take over as key volume growth markets over the next five years. In 2022 India and

Mexico alone accounted for half of all global volume growth.

The US and China will remain significant value drivers despite expected volume declines to 2027. Between 2022 and 2027, the US total beverage alcohol market will grow by US$ 12 billion and China’s by US$ 41.7 billion.

Nestlé invests in new capacity in South Africa and Egypt

AFRICA – Swiss food company, Nestlé, has inaugurated a new R79million (US$4.44m) plant in Babelegi, Hammanskraal, which has localized the production of the Nescafé Gold range of coffee mixes.

The Nescafé Gold coffee mix range includes Cappuccino Original, Cappuccino Original Reduced Sugar, Cappuccino Salted Caramel Latte, Cappuccino Vanilla Latte, Cappuccino Hazelnut Latte, and Cappuccino White Chocolate.

Previously, this extensive range of products used to be imported but Nestle said that they can now be manufactured with 46% locally sourced ingredients.

The company’s communications executive Mota Mota said the plant would aim to reach 90% local sourcing in “the immediate near future.”

Nestlé, has revealed its plans to add four new production lines to its existing facilities in Egypt: three lines would be for food products, and the

Strawberry consumption may improve heart health, cognitive function, new study finds

fourth would be for dairy products, adding that the first food production line will start operations in December this year.

Chairman and CEO of Nestlé Egypt and Sudan, Tarek Kamel said Nestlé currently has three factories in Egypt – two in the Sixth of October City and one in Banha City – incorporating 65 production lines in 10 segments.

USA – Strawberries are a source of many bioactive compounds and as a result, are considered a superfood by many health-conscious consumers.

A new study conducted at San Diego State University has now found an association between daily strawberry consumption and improved cognitive function.

The randomized clinical trial presented at Nutrition 2023, the annual meeting of the American Society of Nutrition as linked dairy strawberry consumption to lower blood pressure and higher antioxidant capacity.

For this study, Dr. Shirin Hooshmand, a professor in the School of Exercise and Nutrition Sciences at San Diego State University and principal investigator on the study, and her team conducted a study with 35 healthy men and women between the ages of 66 and 78.

Over an eight-week period, each day, study participants either consumed 26 grams of freezedriedTrusted Source strawberry powder — equivalent to two servings of fresh strawberries — or a control powder.

At the end of the eight weeks, researchers found those who ate the strawberries increased their cognitive

processing speed by 5.2%, lowered their systolic blood pressure by 3.6%, and increased their antioxidant capacity by 10.2% when compared to those who took the control powder. “This study demonstrates that consuming strawberries may promote cognitive function and improve cardiovascular risk factors like hypertension,” said Dr. Hooshmand.

“We’re encouraged that a simple dietary change, like adding strawberries to the daily diet, may improve these outcomes in older adults.”

THOSE WHO ATE THE STRAWBERRIES INCREASED THEIR COGNITIVE PROCESSING SPEED BY 5.2% AND A 3.6% REDUCTION IN THEIR SYSTOLIC BLOOD PRESSURE.

Nairobi Coffee Exchange resumes operations under new rules

unions have been licensed to sell coffee directly at the exchange and overseas, thereby eliminating the need for middlemen between the farmer and the buyer.

Five other unions will be licensed before end of August bringing the total number of licensed farmer-owned coffee brokerage companies to 16, according to Cooperatives Principal Secretary Patrick Kilemi.

KENYA – The Nairobi Coffee Exchange (NCE) auction has resumed operations, a month after it was suspended, to allow for reforms aimed at boosting incomes for coffee farmers.

Under the new guidelines, farmers will be allowed to sell their coffee directly through the auction, a move which the government hopes will cut off the brokers blamed for profiteering.

Co-operative Bank has been appointed by the NCE to provide the Direct Settlement System (DSS)

technology platform, on which coffee trading will henceforth be conducted.

The auction will also be supervised by the Capital Markets Authority as part of the new measures aimed at increasing transparency at the auction.

Ahead of the auction resumption, aforum to train the coffee market users, which includes brokers, traders, warehousemen, coffee farmers and other service providers, on the workings of DSS, was held in Nairobi. So far, 11 coffee co-operative

Japanese drink company Suntory creates US$1.96B Oceania arm

OCEANIA – Suntory’s spirits arm, Beam Suntory, and its Frucor soft drinks division have partnered to launch Suntory Oceania.

The collaboration will see the creation of the fourth-largest ANZ (Australia and New Zealand) beverage group in Oceania, the Japanese conglomerate said.

Suntory Oceania’s portfolio will include Jim Beam, Maker’s Mark Bourbon, Japanese whisky Hibiki, Canadian Club whisky, and ready-todrink brand -196, alongside soft drinks such as V Energy, Maximus, and Suntory Boss Coffee.

The new venture will mean endto-end control of Suntory’s portfolio in

the markets, including manufacturing, sales, and distribution. The company will continue to work with Coca-Cola Europacific Partners in the region until 2025.

Furthermore, the group will

construct a AU$400 million (US$260.8m) net-zero facility in Ipswich, Queensland, said to be the ‘largest’ investment in the fast-moving consumer goods (FMCG) space in Australia in more than a decade.

THE AUCTION WILL BE SUPERVISED BY THE CAPITAL MARKETS AUTHORITY AS PART OF THE NEW MEASURES TO INCREASE TRANSPARENCY.

Royal Unibrew to Purchase Heineken's Soft Drinks Arm Vrumona for US$327M

DENMARK – Danish brewer and beverage group Royal Unibrew has agreed to buy soft drinks maker Vrumona from Heineken (HEIN.AS) for 300 million euros ($327 million), it said on Monday.

Netherlands-based Vrumona produces a range of own brands like Royal Club, Sisi, Sourcy, Sourcy Vitamin Water as well as partner brands like 7 Up, Pepsi and Rivella, with the majority of its product portfolio within the no/ low sugar and calories segment.

The company operates seven production lines at its facility with a current annual output of around 3.1 million hectolitres, and Royal Unibrew said it plans to invest in further production capabilities while using spare capacity to support its global production footprint.

Royal Unibrew said in a statement it expected to close the deal in September or October and it would finance it through committed extended financing facilities with existing banks.

"Vrumona will become a new growth platform for Royal Unibrew in continental Europe and is expected to drive organic earnings growth in the coming years," CEO Lars Jensen said.

Royal Unibrew said the acquisition is expected to be accretive to earnings per share in 2024. The deal is expected to close in September or October this year, subject to regulatory approval.

South Africa reintroduces punitive poultry import tariffs to protect local industry

A spike in local prices is certainly expected as Brazil is responsible for more than half of the country’s imported frozen chicken.

The new duties also include an additional tariff of a maximum of 158.4% on imports from Ireland; 96.9% on Poland; 85.8% on Spain; and 67.4% on Denmark.

SOUTH AFRICA – The government has reintroduced its poultry punitive trade tariffs on imported chicken after a 12-month reprieve. The duties were initially suspended in July last year in an effort to stabilize local prices.

Moving forward, poultry imports from Brazil will attract maximum of 265% duty in addition to the 62% tariff that is already in place.

Local poultry producers have welcomed the move as it enables them to effectively compete in the local market unlike before when the duties were suspended.

“what this duty will do for us is that it’ll give us the breathing space to carry on investing in this industry, to carry on creating economic growth in the industry and the longer value chain, as well as doing transformation,” Says the chief executive officer of the South African Poultry Association, Izaak Breitenbach.

EABL’s full year profit shrinks 20.8% as illicit liqour makes a comeback

EAST AFRICA – East African Breweries Plc (EABL) has reported a 20.8% drop in profits for the year ended June to KES12.3 billion from KES15.6 billion a year earlier.

EABL’s earnings were impacted by high-cost inflation, multiple excise tax increases, and currency depreciation in Kenya, according to group chairman Dr Martin Otieno.

“The economic conditions have also led to a resurgence in illicit trade as consumers move to cheaper unregulated products,” EABL said in a statement.

Its sister company Guinness Nigeria fared much worse, posting a loss after tax of N18.17 billion (US$24.83 million) in June 2023, arising from high cost

of borrowings, which impacted its performance.

This overshadowed the company’s 11% rise in revenue to N229.44 billion (US$298 million) from N206.82 billion (US$269 million) and could not be compensated by the company’s gross profit of N78.13 billion (US$101.74 million).

Research discovers high protein plant-based alternative to gelatin

CANADA – Scientists at the University of Alberta have discovered a way to create a plantbased gelatin substitute from pea protein.

Dr. Lingyun Chen and her team at the Department of Agricultural, Food and Nutritional Science at the University of Alberta, unlocked a way to create a plant-based gelatin substitute from pea protein.

The novel product, which is patent pending, reportedly has a higher protein content than existing plantbased gelatin substitutes, but can also change easily from liquid to gel – and

back again.

“During an experiment, we accidentally found that certain conditions, such as pH, caused ‘thermal reversibility’ in pea protein, which could make industrial applications much easier,” stated Dr Chen in an article from Natural Products Canada.

The discovery, if successfully scaled up to an industrial level, could offer a plant-based alternative to gelatin as a thickener in foods such as soups, sauces and candies, as well as for dietary supplements.

Coca-Cola creates alcohol subsidiary called Red Tree Beverages

USA – Coca-Cola, the largest beverage company in the world, has established a new division to develop and manage its alcohol beverage business.

The new division is called Red Tree Beverages and is reportedly “firewalled” from Cokes non-alcohol business to appease regulators who may have concerns over slotting fees, non-alcohol beverage incentives to retailers, category management and other blurring of the regulatory lines.

It is set to focus on the development and marketing of innovative alcoholic

products to keep up with evolving consumer trends.

Coca Cola Company first entered the alcohol space in 2018 when it launched Lemon-Dou, its first readyto-drink alcohol beverage.

Today, the company has a small yet growing portfolio of alcohol beverages which includes Jack Daniel’s & Coca Cola, Lemon-Dou; Topo Chico Hard Seltzer, available in more than 20 markets; Schweppes Pre-Mixed Cocktails, currently available in Brazil; and Simply Spiked Lemonade and Fresca Mixed in the United States.

Mars to buy healthy food maker Kevin's Natural Foods

USA - Family-owned food giant Mars Inc on Wednesday agreed to buy Kevin's Natural Foods, which is known for its sous-vide meals, sauces, and side dishes, the companies said.

Founded in 2019, the company is headquartered in Modesto, Calif., and has approximately 180 employees, with products currently sold in the U.S., U.K., Canada and Mexico.

The deal values private equitybacked Kevin's at nearly $800 million, according to people familiar with the matter. Kevin's started exploring options, which included a sale of the company, earlier this year.

After the deal is completed, Kevin's will operate as a standalone brand under the food and nutrition unit reporting to its president, Shaid

Shah.

“We are excited to welcome Kevin’s Natural Foods to the Mars Food & Nutrition family of businesses,” Shah said.

“We have been hugely inspired by Kevin’s, a business whose mission fits squarely with our purpose: Better Food Today. A Better World Tomorrow.”

Brazil meat giant BRF to start processing Halal meat in Saudi Arabia

SAUDI ARABIA – Brazilian food processor BRF SA (BRFS3.SA) has formalized the creation of a joint venture with the Halal Products Development Company (HPDC), a subsidiary of Saudi Arabia's Public Investment Fund (PIF), according to a statement sent to Reuters on Tuesday.

The intention to set up the JV had been communicated in October 2022. BRF's stake in the new company will be 70% and HPDC will have 30%, the Brazilian firm said.

The JV's announcement

underscores BRF's push to move from a purely exporter role to a local supplier of meat products in the country.

BRF said the main goal of the JV will be developing the halal meat industry in the region, referring to food that must be produced according to Muslim dietary requirements.

As part of the JV, BRF said it will set up a "Halal Business Headquarters, a Halal Food Innovation Center and a Center of Excellence" at a location yet to be determined.

Food companies join pledge to resuscitate South Africa’s battered economy

Breweries, and PepsiCo.

Other major food companies that signed the pledge include fast food restaurant chain Nandos, soft beverage company Coca Cola, and fish harvesting and processing companies Oceana group and Sea harvest.

South Africa’s economy has in recent times faced a number of crises including low economic growth, collapsing infrastructure, rampant crime and corruption, and unacceptably high levels of inequality and unemployment.

Diageo invests in additional capacities for Guinness 0.0 and Baileys

IRELAND – Diageo’s Guinness has invested €25 million (US$27.25m) in a new facility at St. James’s Gate in Dublin, Ireland, to triple production of its zero-alcohol brand in response to a growing consumer taste for nonalcoholic drinks.

The production facility includes six processing vessels with a total capacity of 500,000 hectolitres–almost 90m pints–and a two-story building where the alcohol is removed through a cold filtration system to create Guinness 0.0.

Diageo is also boosting the production capacity for its popular Irish cream liquer Baileys.

SOUTH AFRICA – Leading food companies in South Africa have joined South Africa’s leading corporations in an unprecedented show of solidarity to country and commitment to building its battered economy.

The pledge was made by CEOs from over 115 of South Africa’s leading corporations which includes various food industry heavyweights like RCL Foods, Unilever, South African

“We are committed to building it and have come together to address the current challenges with the aim of achieving sustainable, inclusive economic growth,” the CEOs said.

“Through strategic partnerships and focused interventions, we have the power to make a significant and positive impact on our nation, creating hope for all South Africans. We are resolutely committed to being a force for good.”

The company received regulatory permission in August to expand its Baileys global supply facility in Mallusk, Northern Ireland, at a cost of £26 million (US$33.19 million).

The facility is one of two global production sites of the Baileys brand, producing over 60 million bottles of Baileys each year, which are distributed to 150 countries across the world.

The expansion expected to begin in early 2024 will enable Diageo to improve its logistics and warehousing facilities, according to the company.

Kraft Heinz to eliminate 100 million pounds of plastic from packaging by 2030

USA – Global Food and beverage company Kraft Heinz announced a new commitment to cut the use of virgin plastic by 20% in its global packaging portfolio, as part of the company’s efforts to reduce its use of fossil fuels and adopt more sustainable packaging options.

The company estimated that achieving its new goal will reduce its use of virgin plastic by approximately 100 million pounds.

A first step toward its goal will be to replace virgin plastic with recycled content. Kraft Heinz said it is building on existing work with the US, Canada and UK Plastic Pacts to increase the use of recycled content in its packaging.

Second, Kraft Heinz is taking up material elimination or reduction methods. The company said it is identifying packing solutions that use less plastic, which include eliminating unnecessary plastic components.

Spirits giant Bacardi and multinational food company Unilever branded “international war sponsors”

UKRAINE – Spirits giant Bacardi has been listed as an “international sponsor of war” by The National Agency on Corruption Prevention (NACP) for its continued operations in Russia.

This comes a few weeks after British consumer goods company Unilever was flagged as an “International Sponsor of War” by the Ukrainian government agency.

The NACP – a central executive body responsible for developing anticorruption policies and preventing corruption in Ukraine- has accused Bacardi of continued business operations in the Russian Federation.

With less competition in the Russian alcohol market, data on the Federal Tax Service of the Russian Federation showed that Bacardi Russia’s revenue in 2022 increased by 8.5% to RUB 32.6 billion (approx. $12.88 billion), and the net profit to RUB 4.7 billion (approx. $1.85 billion).

The spike represents 206.5% more than in 2021. Consequently, the company paid Russia more than $12 million in income tax, according to the statement.

The Agency has also stated Unilever’s presence in Russia and its significant tax contributions to the Russian state budget support the aggressor country’s economy and contribute to Russia’s ongoing war against Ukraine.

Russia seizes control of Danone and Carlsberg subsidiaries

RUSSIA - The Russian state has taken control of French yoghurt maker Danone’s Russian subsidiary along with beer company Carlsberg’s stake in a local brewer, according to a decree signed by president Vladimir Putin.

investigating the situation".

Carlsberg said it had not received "any official information from the Russian authorities regarding the presidential decree of the consequences for Baltika Breweries".

A third area of focus for Kraft Heinz revolves around exploring material alternatives. The company said it is looking into the use of alternative materials, such as fiber-based packing, hoping to use these innovations for other packaging formats in the coming years.

The decree published on Sunday says the Russian state would “temporarily” manage shares belonging to Danone Russia and to Baltika, which is owned by Carlsberg.

Danone, which started the process to sell its Russian business last October, said it was "currently

The move comes after the Russian subsidiaries of Germany’s Uniper and Finland’s Fortum were taken under state control in April.

The Kremlin warned at the time it could seize more western assets on what it said was a temporary basis in retaliation for foreign moves against Russian companies abroad.

GOVT POLICY

Egypt earns US$2.6B from fruit and vegetable exports in first

months

of 2023

EGYPT – Fruit and vegetable exports surged 16% in the first seven months of 2023, earning Egypt about US$2.3 billion in foreign exchange revenues.

According to Ministry of Agriculture Spokesperson Mohamed El-Qersh, Egypt fruit and vegetable exports surged to 5.1 million tons from January until July of this, up from 4.4 million tons in the same period in 2022.

The number is close to the record 6.5 million tons of agricultural exports – with a total value of $3.3 billion- that Egypt made in 2022.

Among Egypt’s top export destinations is France which in 2023 imported goods worth €560m in the seven month period ending August, a

NUTRITION & HEALTH

30% increas compared to €400m in the same period last year.

This increase contributed to a decrease in trade deficit between Egypt and France by 42% to reach about €620m in the first eight months of the current year compared to the

7

same period last year.

Improved trade has been attributed to efforts by the Egypt Commercial Service (ECS) office in Paris, according to Egypt’s Ministry of Trade and Industry.

Infant formula industry fights back at misleading information

than that of parent and child.

But International Special Dietary Foods Industries (ISDI) and Specialised Nutrition Europe (SNE) -trade associations representing these manufacturers -are fighting back.

The trade associations back up their view by pointing to Europe, made up of countries sharing similar legislation, companies, products, and advertising, yet which have varying breastfeeding rates. The difference, according to ISDI and SNE lies in socioeconomic and cultural factors at the national level.

Ultimately, the trade bodies believe a ‘holistic’ approach is required – one which includes strengthening maternity leave, workplace policies, and funding. It also requires ‘transparent, sciencebased’ interactions with healthcare professionals.

GLOBAL – Earlier this year, The Lancet published a three-paper series on breastfeeding. The papers accused infant formula manufacturers of irresponsible marketing and political lobbying for their own benefit, rather

In Scandinavia, for example, lengthy, full-paid maternity leave, public support and a culture conductive to breastfeeding all play a role in contributing to some of the highest breastfeeding rates in the world, noted ISDI secretary general Kremer and SNE secretary general Späth in correspondence published this week in The Lancet.

THE TRADE BODIES BELIEVE A HOLISTIC APPROACH IS REQUIRED- ONE THAT INCLUDES STRENGTHENING MATERNITY LEAVE AND FUNDING.

APPOINTMENTS Update

Keroche Breweries appoints Potas Anaya as CEO

Jimmy D. Mugerwa to Chair Uganda Breweries Board of Directors

UGANDA - Mr. Jimmy D. Mugerwa will succeed Mr. Katto as Chairman of the Uganda Breweries Limited (UBL) Board effective July 1, 2023, after serving as an Independent NonExecutive Director since July 2018.

UBL says Mr. Mugerwa is an experienced Board Chair and Independent Non-Executive Director, having served in this capacity in the financial, insurance, beverage, and oil & gas sectors.

Dr. Peter Evans named CEO of South African Pork Producers’ Organization

KENYA – Peter Anaya, previously serving as the Chief Finance Officer of Kenya’ first large brewery not owned by a multinational company has been promoted to Chief Executive Officer of the Nakuru County based brewer.

His appointment follows the resignation of Keroche’s founder Mrs Tabitha Karanja who was elected Nakuru County senator in the 2022 elections.

“It is with immense pride that I announce my decision to step down as CEO of Keroche Breweries and hand over to a deserving successor,” Ms Karanja said.

“After 25 years as captain, the time has come for me, Tabitha Karanja to pass the baton to a new generation of business leaders.”

Karanja also noted that stepping down as the CEO will allow her to focus on her current role as the Nakuru County Senator.

The new CEO will also have to deal with an insolvency petition filed against the brewer over a Sh233.7 million debt owed to Nairobi law firm – Hamilton, Harrison & Mathews.

He has chaired industry associations, including being Chairperson of the Uganda Presidential Investor Round Table for Oil and Gas for four years adding up to his over 30 years of experience working in the oil & gas sector with Tullow Oil PLC and Shell Oil across Africa & Europe.

SOUTH AFRICA - Dr. Peter Evans is the new Chief Executive Officer (CEO) of South African Pork Producers’ Organization (SAPPO), effective September 2023.

SAPPO coordinates industry interventions and collaboratively manages risks in the value chain to enable the sustainability and profitability of pork producers in South Africa.

Dr. Evans joined SAPPO on a parttime basis in 2008 and was pivotal in the development of Pork 360, as well as in setting up various interventions to enable the sustainable growth of the industry.

Mr. Mugerwa is also the founder & CEO of Zoramu Consulting Group, a boutique oil & gas consulting firm and he is currently serving as the Chairman of the Board of DFCU Group and as an Independent Non-Executive Director on the Boards of East African Breweries PLC and Jubilee Allianz Insurance Group.

His appointment comes at a time when pork producers have remained under profit pressure due to high feed prices. Since March 2022, pork prices have remained at approximately six times that of the price of maize, 33% below the long-term average.

“Dr. Evans is an established and versatile member of the SAPPO team and has vast exposure across the global pork value chain. He brings a wealth of experience as a renowned leader in animal health,” said Chairperson Stephen Butt Butt.

Dangote Sugar Refineries appoints Mariya Aliko Dangote as new Executive Director

NIGERIA – The Board of Dangote Sugar Refineries, a leading sugar producer in Nigeria, has approved the appointment of Mariya Aliko Dangote as the company’s Executive Director, effective July 28, 2023.

Currently, Mariya oversees the Business and Strategic activities and the Backward Integration Projects of the Company and is responsible for the implementation of the digitization and mechanization of key operational activities in the Company and its Subsidiaries.

She holds an LL.B and BL, and an MBA from Coventry University, United Kingdom. Mariya is also currently attending the Cambridge

Lactalis SA appoints Herman Janse van Rensburg as new General Manager

Westfalia Fruit appoints Khotso Mokhele as new chair of board

SOUTH AFRICA – Westfalia Fruit, a South Africa-based multinational supplier of fresh fruit and related processed products has appointed Dr Khotso Mokhele as the new Chair of Boards of both the subsidiary and its parent company, HMH group.

Mokhele joined the HMH board as a non-executive director in 2013 and is the founder of the Academy of Science of South Africa and the National Research Foundation.

“I would like to thank the boards of the HMH Group and Westfalia Fruit International for their confidence in appointing me as the new chair of both boards,” Mokhele said.

SOUTH AFRICA – South African largest dairy producer, Lactalis, has promoted its current chief operations officer Herman Janse van Rensburg to General Manager effective July 18, 2023.

Janse van Rensburg succeeds Alban Damour, who has taken up his new assignment as General Manager for Lactalis India.

Janse van Rensburg joined Lactalis South Africa 12 years ago as a financial manager and has worked in various executive positions across management control, commercial, and marketing.

“We have ambitious plans for the future, to continue positively developing the global avocado industry for the long term supported by research, innovation and commitment of our Westfalia colleagues.”

Senior Management Program and has attended various courses on Business Strategy, Advanced Management, Alternative Dispute Resolution, Sugar Processing, and Productivity Optimization.

Prior to joining the Company in 2019, she served as a Business Strategy & Corporate Risk Specialist in the Holding Company, Dangote Industries Limited.

“This year marks 90 years of Group Lactalis being in business, and I am excited to be part of this milestone and lead Lactalis South Africa into its next phase of growth,” Herman said during his appointment.

He assured to partner with all customers, business partners and communities to make a meaningful impact in the general community in both the business and social environments.

His appointment comes at a time when a sustainable fruit industry must be focused on three pillars that include environmental, social and governance.

According to the company, these pillars enhance the ability to create a long-term value chain, creating jobs and ensuring the future of the industry.

BIO FOOD PRODUCTS LTD

BioActive Power yogurt drink & Orange Biscuit Yogurt

Kenyan dairy processor Bio Foods has launched the BioActive Power Probiotic Yoghurt Drink; a unique product that gives you high protein (25g), low fat, reduced sugar and a sugar-free option. Bio describes the new yogurt as a delicious fruit yogurt with real fruits. The yogurt is available in 3 varieties: Blackberry & Raspberry, Cucumber & Mint, Yuzu, Apple & Lemon. The company also recently as expanded its yogurt portfolio with the launch of the new Bio Orange Biscuit yogurt.

www.biofoods.co.ke

KOA

Cocoa Fruit Juice

Koa, a Swiss-Ghanaian start-up in the cocoa industry, has debuted its first cocoa fruit juice in the Ghanaian market. Dubbed Koa Natural, the all-natural juice is produced from the white, fleshy part that surrounds the cocoa bean which is gently processed, with no added sugars, sweeteners, or additives, to preserve the authentic natural sweet taste of the cocoa fruit.

www.koa-natural.com.gh

LACTALIS SOUTH AFRICA

Peanut Butter Flavored Milk

South Africa’s largest dairy manufacturer, Lactalis SA, has expanded its iconic Steri Stumple flavored milk with the launch of a new Peanut Butter flavor.

Packaged in a 350ml PET bottle, the new Steri Stumpie Peanut Butter will be available in retail outlets countrywide.

www.lactalis.co.za

KERICHO GOLD

Kericho Gold Conservation Teas Range

Kericho Gold has partnered with the Kenya Wildlife Trust to launch its latest product line, known as the Conservation Range. The range offers Black, Green, and Decaffeinated tea, with each blend carefully crafted to deliver a unique and delightful experience. Additionally, the tea comes in biodegradable packaging, made from renewable and compostable materials to reduce waste and pollution

www.kerichogold.com

PEARL DAIRY

VitaZ soft drink & Gluco Power B Energy Drink

Uganda’s leading dairy producer and owner of the Lato milk brand Pearl Dairy has diversified into the soft drinks category with the launch of VitaZ soft drink and Gluco Power B energy drink.

Lato VitaZ is an apple blackcurrant flavored juice that is fortified with Zinc to boost the immune system and promote healthy growth & development. Gluco Power B on the other hand is an orange flavored drink fortified with Vitamin B to boost consumer energy levels.

BILA SHAKA Capitan Lager

Bila Shaka, an independent craft brewery in Kenya, has debuted its latest beer offering dubbed Capitan Lager into the market.

Capitan Lager will be available in select bars, restaurants, and retail outlets across Nairobi starting May 17th, 2023, at a recommended retail price of Ksh.250.

www.bilashaka.ke

KWV

South Africa’s premier wine and spirits company KWV receives a fresh burst of energy

By Paul Ongeto

With effect from 1 June, John Loomes will replace Boyce Lloyd as CEO of KWV,” read a statement from the maker of popular Roodeberg wines. The announcement ushered in a new era of leadership for the company that has been a mainstay in South Africa’s alcohol industry for more than a century.

During the wine industry’s fledgling years, KWV played a major role to unite wine producers, and during its boom, elevated its status in the global arena by distributing South African wine to more than 100 markets globally.

In the face of climate change and unreliable power supply, KWV - now under the leadership of John Loomes - is again in the cockpit, captaining South Africa’s wine industry into a sustainable future. “The expectations that I have for KWV are high”, introduces Loomes. “We firmly believe that we will maintain and even grow our significance in the wine and spirits sector in South Africa and obviously internationally, including Africa.”

To make this a reality, Loomes is reliant on everyone in the value chain, from suppliers to consumers, including customers and of course, the company’s dedicated staff, who have a vital part to play. “You know, our staff are the backbone of our business and without their commitment and involvement, we wouldn't do as well as we do,” he says.

A DIVERSE PORTFOLIO OF BRANDS

KWV has a diverse portfolio of brands that includes 13 wine brands, 10 spirits brands, 3 ready-to-drink products, and 2 non-alcoholic products. Its premium range is comprised of some of the finest wines and brandies in the world as evidenced by the endless number of awards they have won in both national and international competitions. In the wine category, the Mentor’s premium range stands out as one of the finest with its Cabernet Franc 2019 taking the ultimate accolade “Best in Show” at the 2022 Decanter World Wine Awards in London. That same year, KWV was awarded the world’s best brandy producer of the year at the International Spirits Challenge with its Brandies scooping 5 awards including 3 double golds at the same event.

As a major wine and spirits producer, KWV also tries as much as possible to keep its wines accessible to a majority of South African and international consumers. Both entry level

and wine enthusiasts on a budget can access pocket-friendly but good quality wines from the famous KWV Classic Collection or the Iconic Roodeberg brand.

“Having entry level pricing is important for some of our offerings,” Loomes explains. Even at the entry level, Loomes notes that the wines have to be immediately memorable to people to make them want to stay in wine. “And once you get new consumers into the category, they will explore and they will develop their tastes in different directions, which is what we want.” Whether it be the award winning wines and brandies, or the affordably priced offerings, KWV tries to satisfy all its consumers varied and evolving tastes.

STAYING AHEAD OF TRENDS

KWV has been constantly innovating to remain relevant in a market where new trends influence consumer tastes and preferences. This is reflected across its sparkling wine, liqueur, ready-to-drink and non-alcoholic products ranges, which were introduced to meet changing consumer tastes and preferences. When it comes to wine, Loomes reveals that the Rosé style is currently in vogue.

“There is a big trend in Europe where Ros’e is having a fantastic run at the moment and we are certainly seeing some of that in South Africa as well.” KWV has various offerings in this category including Laborie Rose, KWV Classic Rose, Roodeberg Rose, and Pearly Bay Sweet Rose which are certainly expected to receive a boost.

To keep things interesting, KWV has a quarterly Winemaker’s selection that “is carefully curated by our team of award winning winemakers,” and “places the spotlight on new vintages, special releases, as well as some of our award-winning wines”.

Beyond the seasonal trends, Loomes notes that “wine enthusiasts often prefer their own wine styles, their own cultivars, and they are happy to continue drinking what they value and what they have bought over time.” The same is the case in the Brandy category,

KEY NUMBERS

100

THE NUMBER OF MARKETS GLOBALLY WHERE KWV CURRENTLY HAS A FOOTPRINT.

which is performing very well of late. Loomes bets on consistency in quality and taste to continue winning in the Brandy market. “To be relevant in Brandy, you have to be consistent in your high quality and accessibility to your consumers, and you also have to play across the spectrum of brandy, both at a blended brandy level as well as right up to the premium potstill brandy’s, which we do, from our 10, 12, 15, and 20 year old premium offerings”.

Whether in Wine, Whiskey, Gin, or any other category that KWV has a presence in, Loomes promises an unswerving commitment to excellent products. “We provide products that meet the expectations of our consumers, and as we continue to do so, we will maintain and grow our share.”

BUILDING A SUSTAINABLE BUSINESS

led different companies including Dubaibased energy drink company Power Horse as Business Director and earlier as General Manager overseeing African operations at Austrian-based multinational energy drink

company Red Bull.

Before his promotion to CEO, Loomes had an opportunity to understand the inner working of KWV as Chief Operating Officer, from September 2022 to May 2023. “I think if any one thing prepared me best, it might be the last nine months, but this combined with an accumulation of experience over many years.”

As CEO, he has already identified the trend of farmers abandoning grape farming for more profitable crops as one of the biggest threats to the sustainability of the business. “This poses a big risk because it takes years for a vineyard to reach maturity where it can give a full yield and its quality is up to standard,” he reveals. To secure the business, Loomes believes policy certainty is important and long term contracts are important. “Our farmers are of massive importance to us,” he says.

In its quest to remain a sustainable business, KWV also strongly looks at environmental sustainability as an important part of what it does. “We are constantly looking at more environmentally friendly methods of operation, from environmentally friendly gases for refrigeration, solar, and a carbon footprint reduction” Loomes reveals. “It's about considering all that is important to the sustainability of our own business as well

as the environment.”

GROWING IN AFRICA

In its early years of operation as an alcohol exporter, KWV mostly concentrated on the European and Asian markets where reception was warm. In Sweden for instance, the Roodeberg brand is a household name while in Japan, the KWV Wines range and Wild Africa Cream are particularly popular with consumers. In the past few years, the focus has included Africa, with entry into Tanzania, Namibia, Mozambique, Angola and Kenya to name a few, yielding satisfactory results.

With the implementation of the African Free Continental Trade Area, Loomes is cautiously optimistic about the opportunities that it could offer African businesses. “I think this would certainly remove some of the prohibitive duties and taxes imposed by certain countries on certain goods from other countries,” he says. “Of course, having worked in Africa for many years, I have experienced how difficult it is to take something from paper to reality.” He however confirmed that KWV is certainly on the lookout for potential new markets. “We will certainly launch into new markets where we've got an opportunity to build our brands sustainably over time.” FBA

WE WILL CERTAINLY LAUNCH INTO NEW MARKETS WHERE WE'VE GOT AN OPPORTUNITY TO BUILD OUR BRANDS SUSTAINABLY OVER TIME.

John Loomes, CEO, KWV

AMONU CHOCOLATES

Restoring the Ghanaian spirit in every bar of chocolate

PROFILING START-UPS & THE DISCOVERY OF THE MARKET TRENDS IN AFRICA'S EMERGING FOOD INDUSTRY

We all love chocolates. And we certainly don't mind buying any of the popular European or American brands that are ubiquitous in our shops, even though they are manufactured thousands of miles away. When visiting Ghana, one’s desire is to try locally processed chocolate. Getting the same brands you find anywhere in the world would certainly not bring the same excitement. However, it was quite rare to find chocolates that are processed and packaged in Ghana, except for Golden Tree chocolates processed by the state-owned Chocolate Processing Company (CPC).

In the last decade, significant changes have occurred in the country's cocoa sector. Several small and medium-scale artisanal chocolatiers have emerged. Ivory Coast, which, together with Ghana, accounts for 65% of the world's total cocoa supply, appears to have experienced a similar chocolate revolution.

Amonu Chocolates, a medium-sized artisanal chocolate processing company, is one of the pioneers in Ghana's emerging chocolate processing industry. The chocolatier's story is closely intertwined with Africa's greatest sporting event, the African Cup of Nations. When Ghana was chosen to host the 2008 Africa Cup of Nations, Nana Ama Kufuor saw an opportunity to create something uniquely Ghanaian that the thousands of fans would take home after the conclusion of the international men's football competition. "Being an artist, I partnered with a highly

professional graphic designer, William Nikoi, to design an appropriate souvenir tin packaging printed with the colors of the Ghanaian flag for guests to purchase," Ms. Kufuor said.

The hexagonal-shaped tin, wrapped in black, yellow, and green colors, marks the beginning of Amonu and for five years the company has been doing its best to promote Ghanaian chocolate on the global stage. Initial focus was on packaging, where Ms. Kufuor's talents as an artist and businesswoman were best showcased. "All of our packaging is inspired by Ghanaian culture, history, art, and tourist attractions," she explains. "And it seemed like there was a market waiting because people were fascinated by the packaging," she admits. She acknowledges that the distinctive packaging played a crucial role in Amonu's initial success in the chocolate processing industry.

VENTURING INTO THE WORLD OF CHOCOLATE PROCESSING

A huge unexploited opportunity, however, remained untapped in processing. Ghana, like its neighbor Ivory Coast, primarily exports cocoa beans to be used as raw materials for chocolate production. As a result, the country does not fully benefit from the cocoa and chocolate market, which was valued at US$48.29 billion in 2022.

Most of the revenue goes to large multinational chocolate companies, often headquartered in Europe and North America, while cocoa-producing countries and their

By Paul Ongeto

BELOW: A portion of Amonu's diverse range of chocolate products.

FOOD STARTUPS AFRICA: AMONU CHOCOLATES

WE AIM TO PLEASE KENYANS BY ADDING KENYAN MACADAMIA NUTS INTO OUR CHOCOLATE

impoverished farmers receive less than 10% of the revenue. Fairtrade states that, on average, cocoa farmers earn just 6% of the final value of a chocolate bar.

To retain a larger portion of cocoa revenue within Ghana, the government initiated efforts to promote local value addition. The training program for aspiring chocolatiers was spearheaded by the state-owned Chocolate Processing Company (CPC). Until then, Amonu had only focused on packaging and marketing chocolates made by CPC. CPC has considerable expertise in chocolate production. They have been in the processing business since it was established by Ghana's first President, Dr. Osagyego Kwame Nkrumah.

With some convincing from Nana Agyenim Boateng, the CEO of CPC, Ms. Kufuor underwent her initial training in processing and chocolate making at CPC. Armed with her newfound knowledge in processing and her existing experience in chocolate marketing, Ms. Kufuor took Amonu to the next level as a chocolate producer in 2018. "We initially started producing chocolates on a small scale, with the assistance of other small-scale producers. However, the positive response from those who tasted our chocolates gave us the confidence to gradually expand our production capacity. Five years later, our operations have grown significantly. "On average, we produce a minimum of 2,000 to 3,000 bars a day," she reveals. The bars come in various sizes to meet the needs of a diverse profile of customers. "We have a 100g bar, a 50g bar, and a 20g bar, as well as bonbons and sweets. We also offer sugar-free options, as well as plant-based and dairy-free bars and bonbons."

Amonu also provides customized chocolates when requested by individual customers, organizations, corporate clients,

hotels, or hospitality clients. "Our initial plan was not necessarily to produce customized chocolates, but there was such a demand and a large market for it that we couldn't ignore," she admits.

HAVING SOMETHING FOR EVERYONE

Amonu produces 9 flavors of premium milk chocolate bars: Dark, Peanut, Toffee and Sea Salt, Milk, Ginger, Coconut, Coffee Toffee, White chocolate with Nibs, and Lemon in White chocolates. For vegans, Amonu offers Almond, Tigernut and Coconut. Sugar-free options include Date and Almond, Date and Tigernut, Date and Coconut, and Stevia and Date.

"There's something for everybody," she says. "For those who love nuts, they can choose peanuts, and if you enjoy spicy flavors, you can opt for ginger."

A unique proposition of Amonu is that it sources almost all of its raw materials locally. This not only has a positive impact on the economy, but also on the livelihood of women who are involved in growing or selling peanuts, salt, cocoa nibs, coconut, coffee, and ginger. Amonu incorporates these ingredients into its chocolates.

A strategic location at one of Ghana's international airports, T3, and an active presence on social media have expanded Amonu's market reach. "Being at the airport allowed me to showcase my products to a global audience, which is one of the reasons why I believe I receive a significant number of online sales from the UK and America." Within Africa, Amonu has achieved significant sales in Togo and has also managed to reach places as far as Rwanda.

With the implementation of the African Continental Free Trade Area (AfCFTA), Ghana's Export Promotion Agency (GEPA) has been actively organizing trade expos in other African countries to promote Ghanaian products. Amonu seized this opportunity and was in Nairobi in June of this year, where it had the chance to showcase its products to Kenyan consumers.

Amonu, having received positive feedback, has set its sights on expanding into the East African nation. "We aim to please Kenyans by introducing Kenyan macadamia nuts into our chocolates,” she says." I hope this will entice the leading consumer market in the region into joining our growing number of export markets." FBA

Nana Ama Kufuor, Founder, Amonu Chocolates.

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

Tracing Zimbabwe’s journey to reclaiming lost glory as Africa’s premier milk producer

By Paul Ongeto

Zimbabwe dairy sector was once a force to reckon with in Africa. Milk from this South Africa nation was highly sought after for its quality and the sector was admired for its organization and efficiency. At its peak in the early 1990s, Zimbabwe was a net exporter of milk and milk products, producing over 260 million liters per year.

However, years of mismanagement had started weighing in on production resulting in year-on-year

declines. By 2008, production had dropped to 40 million litres which was less than sufficient to meet the demand of the country’s population, which at the time had risen to 15 million.

As the condition worsened, the country’s monthly import bill for milk and milk products rose to US$22 million in 2014, according to Zimbabwe Dairy Industry Trust (ZDIT) Chairperson Theodora Marimo.

Collaboration efforts between the Zimbabwean government, the private sector and development partners,

has however seen the country wean itself from over reliance on exports through improved local production.

In July 2018, ZDIT reported that import powdered milk and other milk-related products had since come down to US$7 million thanks to numerous investments in the dairy sector both at the farm and processing level, resulting in improved production of milk.

To augument this gains, the country established the Zimbabwe Agricultural Growth Programme (ZAGP) in 2019 with support from the European Union. The objective was to address the challenges affecting dairy production with the goal of raising milk production by 150 million liters by 2025. This will hopefully restore the country’s status as a net exporter of milk as Zimbabwe requires 130 million liters of milk annually.

200 in-calf heifers from the Eastern Cape in South Africa in February 2020 to improve the genetic base of Zimbabwe’s dairy cattle. The animals were distributed to various regions throughout the country through a heifer matching facility spearheaded by three organisations, namely DenDairy, Nestle Zimbabwe, and ProDairy. In 2023, the country reported that the national herd population has since grown to 39,000 heads of cattle.

The effect of the above mentioned programs has been year-on-year double digit growth in milk production. In 2019, statistics from the Reserve Bank of Zimbabwe showed that milk output in the last quarter of 2018 grew 18 percent to 21 million liters from 17.8 million liters. In 2021, Zimbabwe reported a rise in milk production to a record 79.6 million liters. The country improved on this record in 2022, reporting a 14% rise in milk production to 91.4 million liters.

Improving milk fortunes has attracted investments, mainly from local investors. In 2020, Local investors in Zimbabwe injected US$5 million in the country’s dairy industry in the first six months of the year, despite the global corona virus pandemic which has severely affected the world economy across a broad spectrum of sectors. Dairibord invested US$1.1 million in plant upgrade while Dendairy invested US$3 million during the second quarter.

More capacity enabled the dairies to process more milk. According to data reported by the Agriculture Ministry’s Dairy Services Department, during the first half of 2022, milk intake by processors rose 17% to 38,96m litres from 33, 42 million litres in the comparative period. Dairibord utilised 12,29 million liters, representing 32% of the total intake by processors in 2021. This rose to about 28.51 million litres in 2022, cementing Dairi Board’s position as the processor with the highest milk intake.

With steady flow of milk to processing factory, Dairibord Holdings recorded a 48% jump in sales volumes in the year ended December 2021, the highest in five years. The company’s liquid milk business grew by 10% during that year.

Dairy producers also receiving support under the Command Silage Programme facilitated by the Agricultural Finance Corporation and CBZ Bank of Zimbabwe. Similarly, the Presidential Silage Programme supports more than 1,500 smallholder dairy farmers with a standard input package comprising maize seed, basal fertiliser, and top-dressing fertiliser for one hectare of silage. This has improved milk productivity levels of cows from 8 liters per cow per day in 2018 to 12 liters in 2022.

Through the initiative of Transforming Zimbabwe’s Dairy Value Chain for the Future (TranZDVC), the country imported

What is observed through all these initatives is a deliberate effort to address the root causes of underperformance in the dairy value chain in Zimbabwe. By strengthening the linkages between production, processing, and financing, production has been able rise. The country is, however, not yet close to its goal of achieving milk self sufficiency. The lack of infrastructure, technologies and adequate management still continue to affects milk quantity and quality, the latter being a major bottleneck for milk processing. Whats not in doubt is the fact that Zimbabwe has made commendable progress thus far. A 2022 SNV report even concluded that increased productivity in the dairy sector could return Zimbabwe to being a net exporter of dairy products and contribute toward meeting the national goal of transforming the nation into a middle-income country by 2030 FBA

BeverageTECH

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

Nitrogen-infused: a drink trend

that simply won’t fade away

By Abel Ndeda

There is something captivating about a freshly poured nitro beer or coffee. The cascading effect is mesmerizing; the waterfall of tiny bubbles slowly yields to a dark brew with a fluffy, white head thick enough to float a bottle cap.

The unique flavor and visual appeal of nitro drinks come from the fact that they are infused with nitrogen which is

50% less soluble in water than carbon dioxide. So, when nitrogen gas is infused into a beverage it comes out of the solution quickly, forming smaller bubbles and a finer fizz that manifests as a smooth, slightly thick, and velvety texture with a foam head.

Guinness stout is the pioneer nitrogen-infused drink having been developed back in the 1950s by a team of brewers led by Michael Ash. He discovered that adding

TECH AFRICA: NITROGEN- INFUSED DRINK

nitrogen created a creamy texture and smoother flavor in addition to the ‘surge and settle’ effect that draught Guinness is now famous for. Guinness scientists further refined the process in 1988 with the “rocket widget” invention which nitrogenates canned Guinness, thus retaining its smooth and creamy taste previously only possible on draught.

experimentation with other drinks including tea and wine.

Great reception by consumers has led to remarkable growth in nitro drinks. According to estimates from Grand View Research, the global nitro-infused beverages market size was valued at US$72.9 million in 2021. The market search firm forecasts the category to record a compound annual growth rate (CAGR) of 20.6% from 2022 to 2030 as the fascination with these inherently sippable beverages continues to attract new and existing consumers.

SOPHISTICATED CUSTOMER EXPERIENCE DRIVES GROWTH

Nitro-infusion is primarily a customer experience attraction. Nothing could be more visually appealing than the silky texture and foam head. Nitrogen infusion simply turns a thin beverage you might normally gulp down without a second thought into a creamy drink that you savor, taking the time to truly enjoy it.

In coffee, the perception of creaminess makes it taste like milk was added to the cold brew which removes the need for additional milk. This is an especially attractive characteristic for non-dairy consumers with a craving for a splash of cream in their coffee.

Today, nitrogen is added to almost any beverage in an attempt to replicate the same unique taste and visual appeal observed in Guinness. Trials first started with cold brew coffee and their immense success has led to

What’s more; nitrogen infusion creates beverages with a sweeter taste, even without the addition of sugar or sweeteners. Consumers desire to limit sugar intake. A survey by Mintel on internet users revealed that “low sugar” has become more important to them, and 55% of adults

UNLIKE CO2, NITROGEN DOESNT CREATE ANY ACIDITY, WHICH ENHANCES THE FLAVOUR PROFILE OF COFFEE AND BEER, MAKING THEM EASIER TO DRINK FOR THOSE WHO MIGHT OTHERWISE STRUGGLE WITH STOMACH ISSUES.

want to limit sugar in their diet. The possibility of removing sugar from coffee and other nitro drinks naturally appeals to this group of consumers further driving up its demand.

Unlike C02, nitrogen also doesn’t create any acidity, removing the aspect from a beer or coffee’s flavor profile. This also makes nitro coffee and beer easier to drink for those who might otherwise struggle with acid reflux or stomach issues.

NEW POSSIBILITIES BEYOND COFFEE

Coffee is the most popular of all nitrogen-infused beverages, accounting for 55% of all revenues in 2021, according to Grand View Market Research. The proliferation of coffee shops and cafes offering nitrogeninfused beverages has fueled this growth over the decades and is expected to do so for the foreseeable future. The foray of multinational brands such as Starbucks and Nestle has also been a critical factor in accelerating this growth. Starbucks, which has 33,000 stores globally, offers nitro cold brew in a number of its stores. Consumers can also buy Starbucks Nitro Cold Brew in cans at retail stores like Target, Amazon, and Walmart. Meanwhile, Nestle has two flavors of coffee in nitrogeninfused cans – Nescafé Azera Nitro Americano and Nescafé Azera Nitro Latte - available in retail stores across the United Kingdom.

Nitrogen binds well with milk alternatives making dairy-free nitroinfused cold brew lattes a popular option among consumers. Some companies like Califia Farms and Rise Brewing have tapped this by launching canned oat milk nitro brew lattes for the on-the-go consumer. Califia Farms also has Almond milk as another option for its non-dairy latte. "Being a popularity-driven market, the beverage industry will surely see more innovative pioneers like RISE, introducing more interesting drinks to the public,” says Grant Gyesky, cofounder & CEO of Rise. “As this space continues to develop, the innovation in

the beverage will be equally diverse, more customized."

While coffee remains the largest sub-category, analysts forecast Nitrogen infused tea to be the fastestgrowing nitrogen-infused beverage market. The nitrogen-infused tea market which was valued at US$24.97 million in 2023, is expected to post a CAGR of 20.5% over the next decade to reach a market value of US$161.2 million in 2033, according to Fact. MR. Nitro tea’s popularity among consumers seeking a refreshing, lowcalorie, unique beverage option is expected to drive this growth in the next decade. A number of various tea types are emerging to cater to this demand. This includes nitro black tea, green tea, and herbal tea, and can be flavored with a range of ingredients, such as fruits, herbs, and spices.

Soft beverage makers are also experimenting with Nitrogen. In February last year, American food and beverage giant PepsiCo launched Nitro Pepsi which uses widget technology to smoother products with

a different experience from standard cola. The drink comes in two varieties: Draft Cola and Vanilla Draft Cola, as either single can serves or four-packs.

With PepsiCo’s successful launch, Fact.MR forecasts more players getting into the category which will drive the global nitro-infused cola market to US$151.2 million by 2033.

For a long time, craft brewers tended to eschew nitrogen infusion. All that’s started to change as more brewers come around to the idea that texture—along with aroma and taste—plays a big role in a drinker’s enjoyment. The trend is particularly catching on in the US with craft outfits like Sierra Nevada Brewing Co., Sixpoint Brewery, Sly Fox Beer, Yards Brewing Company and more adding nitro to their arsenals. A strong number of brewpubs throughout the country also offer nitro beers.

DISPENSING TECHNOLOGY IMPROVES

The keg system is the earliest technology for producing and dispensing nitro-infused beverages. Kegs are first filled with the drink

to three-quarters full. Afterward, nitrogen gas is pumped into the keg, then shaken manually. As nitrogen is not soluble the product starts to separate within the keg after a while

KEY NUMBERS

US$72.9M

THE SIZE OF GLOBAL NITRO-INFUSED BEVERAGE MARKET IN 2022

and must be re-shaken. This led to inconsistent beverages from day to day and location to location.

The drawbacks of the Keg system led to the development of nitrogen infusion kits which are placed between the keg and the tap. These

small boxes with in-lines and out-lines feed the nitro gas into the kit’s box, then push the drink through the same box, nitrogenating it before it travels to the tap.

A good example is Enhanced Beverage Solutions’ Nitrogen Infuser which can make the infusion level up to 25% nitrogen. Other examples in the market include The NitroTap by Segafredo Zanetti and Rotarex Solutions’ patented inline carbonation technology that can double the quantity of infused nitrogen to create a longer cascade effect that lasts up to one minute and 30 seconds.

Italian coffee company illycaffè has improved the process further by developing a Cold Brew Aria system that captures ambient air - already 78% nitrogen-rich, by nature – and infuses it at high pressure into cold brew coffee as it's dispensed. The company notes that the combination creates a beautiful, long cascading effect in the glass and a rich creamy

head.

For large corporations like Starbucks which have nitro drinks on tap in various outlets, the concentrate system or bag-in-box is a popular choice. These dispensing systems have pumps that mix coffee concentrate that comes in a ready-to-use form with water at a specific ratio inside the unit before nitrogen infusion and dispensing. This way operators with multiple locations get to produce consistent nitro brew reliably.

SUSTAINING THE FIZZ WITH TRENDY AND ECO-FRIENDLY PACKAGING

Appropriate packaging has been key in driving the RTD segment of nitrogen-infused beverages. The packaging of the drinks is characterized by bright colors, eye-catching pictures, simplistic design, and thin cans. These make canned ready-to-drink beverages more accessible while also making them appear more premium than normal coffee or tea items.

Ardagh Metal Packaging is a leading provider of premium Nitro Cans. The company in collaboration with natural ingredient company Doehler developed a slim nitro can that ensures that the product is instantly rendered fresh and crisp upon opening to ensure consistency and quality. The cans are outfitted with a nitrogen widget on the bottom of the can interior that will create the infusion process that's observed with on-tap nitro beverages.

While plastic bottles have received considerable criticism for their environmental impact, Sidel's StarLite Nitro base has a non-petaloid base designed for still beverages bottled with nitrogen dosing. The company points out that the Nitro base ensures improved PET bottle quality and stability throughout the entire supply chain as well as enables producers to reduce bottle weight and blowing pressure.

TRANSCEND TREND STATUS TO BECOME MAINSTAY

On-tap nitrogen dispensing systems have played a significant role in popularizing nitro drinks. Restaurants, cafes, and bars have installed these systems, providing customers with the option to enjoy freshly poured nitrogeninfused beverages. Nitro-infused beverages have seen a 904% increase in menu penetration over the past four years, according to the Restaurant Business website. That number is expected to grow as new dispensing technology emerges to overcome key barriers to serving nitro cold brew, allowing more operators to meet the significant demand.

The lack of consumer awareness however remains one of the biggest obstacles to the expansion of the nitro-infused drinks business particularly in some parts of the planet, such as the Middle East and Africa, and AsiaPacific. APAC is however warming up to Nitro drinks and is expected to be the fastest-growing market for nitro-infused drinks between now and 2030. Companies operating in the

market have started increasing their presence in the region by capitalizing on this potential. For instance, Starbucks and McDonald's Corporation, both located in the U.S., have begun providing nitro-infused beverages in APAC, which is predicted to increase the sales of these products in the region.

North America generated the highest revenue in the market in 2021, followed by Europe, and the regional market is also expected to witness rapid growth in the coming years. This is due to the presence of top industry players in the region and companies are investing in R&D operations and launching new products to obtain a competitive advantage over their competitors.

Having stayed in the shadows for decades with only Guinness being the only major brand to appreciate its bespoke value, Nitro drinks rediscovered their mojo in coffee and are now extending to every possible drink from tea to wine. The accelerated investment in new products

in this category and the entry of more multinationals from Starbucks, to Nestle and now PepsiCo can only prove one thing: that the time is ripe for nitro drinks to transcend trend status to become mainstays FBA

AFMASS FOOD EXPO REVIEW 42

The recently concluded 10th edition of the AFMASS Expo, held at the Sarit Expo Center in Nairobi, proved to be an outstanding success, leaving a lasting impression on attendees and exhibitors alike. This year's expo witnessed the highest number of visitors in its decade-long history, reaffirming its status as a premier event in the food industry in Eastern Africa.

The expo brought together a diverse range of participants, from both the supply and demand side of the food industry. Renowned companies from around the world showcased their cutting-edge technologies and products, creating an atmosphere of innovation and possibility.

The long exhibitor list was led by Irish multinational Taste & Nutrition company, Kerry. Other companies include Kenchic, the largest poultry processing company in East Africa, Neogen, a provider of food and animal safety solutions, Dormans, a premium coffee producer, and the United States Department of Agriculture (USDA).

Nesvax, Estec, Chemlco, and IMCD were also present to showcase a range of solutions, including lab equipment and food processing ingredients. Other companies that exhibited included TruFoods, a supplier of sauces and jams, World Animal Protection, 260 brands, a plant-based food processor, and PIL, a supplier of packaging solutions.

Kenya Tea Development Agency (KTDA), Atlas Copco, a supplier of compressor, vacuum, and air treatment systems, and Java, East Africa's largest coffee house, were also among the companies that exhibited at the event.

Beyond the exhibition itself, the AFMASS Expo provided a platform for business executives to explore potential opportunities across various sectors, including dairy, beverage manufacturing, and meat processing.

The success of the 10th edition of the AFMASS Expo stands as a testament to the thriving food industry in the region. With its impressive turnout, diverse exhibitors, and participation from industry leaders, the event surpassed expectations and left participants eager for future editions.

AFMASS FOOD EXPO REVIEW

AFRICA FOOD SAFETY SUMMIT REVIEW

FW Africa CEO Francis Juma, officially opens the 2023 AFMASS Food Expo and Food Safety Summit.

Panel Discussion on the Opportunities, Challenges, and Market Trends in the Craft Alcoholic Beverages Industry in Africa

Panel Discussion on the Status of the Food Industry in Africa.

Panel Discussion on Food Safety & Nutrition Communication

Panel Discussion on Laboratory of the Future: new technologies and concepts

Panelists and delegates come together to commemorate the conclusion of the event by posing for a group photograph.

Q7A session during one of the many topical discussions held at the summit

Panel Discussion on the Impact of Kenya's GMO Policy regulation on Food Security, trade, & nutrition in Kenya

Delegates take to the stage for a photo session

A section of delegates during the afternoon session

48 AFRICA FOOD AWARDS REVIEW

The prestigious 5th annual Africa Food Awards ceremony took center stage at the Safari Park in Nairobi, shining a spotlight on the remarkable achievements, innovations, and industry leadership within the African food industry. This pan-African event serves as a platform to celebrate the best in the business, honoring those who have made significant contributions to the advancement of the food sector.

More than 30 companies from various sectors of the food industry, including milling, baking, dairy, and beverages, were honored at the ceremony. For the first time, government agencies and non-governmental organizations were also recognized for their role in advancing Africa's food industry.

The Company of the Year award was given to Kenya Breweries Limited, National Foods Limited (Zimbabwe), Premier FMCG (South Africa), Trufoods Limited (Kenya), and Grain Industries Limited (Kenya).

Norda Industries (Kenya), Wild Coffee Ethiopia, African Originals (Kenya), and 260 Brands (Zambia) were crowned as the Rising Star African Food Companies of the Year. Technoserve won the NGO of the Year award, while the Kenya Dairy Board and Flour Mills of Nigeria were named Government Agency of the Year and Trade Association of the Year, respectively.

Jesa Farm Dairy (Uganda), Bureau Veritas (Nigeria), Psaltry International (Nigeria), and Broadway Bakery (Kenya) scooped the New Project of the Year award.

The Sustainability Initiatives of the Year award was given to Ngorongoro Tea (Tanzania), Farmers Choice (Kenya), and EABL (Kenya). EABL also won the Community Initiative of the Year award, along with Broadway Bakery. Bio Foods Products (Kenya) and Olam Agri (Uganda) emerged as companies with the best local sourcing initiatives.

The food industry would not exist if it were not for the efforts of thousands of hardworking men and women. The Africa Food Awards celebrated a number of notable individuals. Topping the list was Joachim Westerveld, the CEO of Bio Food Products and Highland Drinks Limited.

Other winners included Peter Muni, a veteran miller and former milling executive, at Bakhresa Foods Limited, Malika Aman, Africa Quality Director at Kerry Group, Peter Kiguru, KBL Brewing Manager, and Willis Mitula, Head of Governance & Technical at KBL.

James Mulwana, Founder of Jesa Dairy Farm, Dr. Kwabena Adjei, President and Group Chairman of Kasapreko Company (Ghana), and Lau Larsen, Founder of Promaco Limited, received Lifetime Achievement Awards.

Wangui Kinyori, a Service Engineer at Buhler East Africa, and Adeleke Okikijesu from Qiqi Farms in Nigeria completed the list of recipients for the Young Person of the Year awards.

The award ceremony also recognized multiple food companies for their innovative new products. It was one of the most dynamic and comprehensive award ceremonies thus far in terms of new products, and it demonstrates the pace at which innovations are happening in the food industry.

The event, sponsored by Palsgaard, a supplier of emulsifiers and stabilizers, provided a fitting backdrop for celebrating the top performers in the industry. Palsgaard's support and dedication to the African food industry contributed to the success of the awards ceremony, highlighting their commitment to promoting innovation and excellence.

All winners gather on stage for a group photo.

FW Africa CEO Francis Juma, officially opens the 2023 AFMASS Food Expo and Food Safety Summit.

African Originals is awarded the Rising Star African Food Company of the Year.

Bio Food Products celebrates Joachim Westerv/eld's CEO of the Year Award.

Kenya Breweries celebrates company of the year award

Tru Foods celebrates company of the year award the Summit.

Wild Coffee Ethiopia is awarded the Rising Star African Food Company of the Year.

50 AFRICA FOOD AWARDS REVIEW

Broadway Bakery celebrates New Plant of the Year award.

National Foods takes home Company of the Year award.

Jesa Farm CEO James Mulwana receives lifetime achievement award.

Olam Agri team celebrates the prestigious award for their outstanding local sourcing initiative of the year.

Promaco Cofounder Lau Larsen receives Lifetime Achievement Award.

Peter Kiguru, KBL Brewing Manager receives Operation Executive of the Year Award.

National Food Products receives new products of the year award.

260 Brands take home Rising Star African Food Company of the Year award.

Bureau veritas take home New Project of the Year award.

Ngorongo Tea receives Sustainability Initiative of the Year Award.

Wangu Kinyori named Young Person of the Year.

Willis Mitula receives operation executive of the year award.

Brookside receives new product of the year award.

52 AFRICA FOOD AWARDS REVIEW {New Products of the Year}

EABL - Gordon’s & Tonic and Gordon’s Pink & Tonic

Kentaste - Coconut Chips

National Foods ZimbabwePearlenta Nutri Active

EABL - Captain Morgan Gold & Cola

National Foods ZimbabwePearlenta Smart Carbs Cereals, plus Baobab

Bio Food Products - Bio Coconut Milk

EABL - Rockshore Tropical Beer

National Foods ZimbabweOrganica plant-based meal

Smart Foods Limited - High protein seasoning powder – uses soy flour, not corn starch as base

DPL Festive

Brookside Dairy - Brookside Plus Fibre Fortified & Vitamin A&D Fortified UHT milk

260 Brands (Seba Foods Zambia Limited) - Seba’s Thobwa – first in UHT and packed in pouches

- Festive Tortilla Wraps

260 Brands (Seba Foods Zambia Limited) - Nutramilk Soy Milk

Maisha Flour Mills - Maisha Grandma’s Stoneground Wholemeal Atta

Bakex Millers - Ungano Mixed Wheat Flour

Capwell Industries - Soko Nutrigo

Brookside Dairy - Brookside Almond & Soy Plant-based UHT milk

Global Tea & Commodities LtdKericho Gold Conservation Range Teas

AFRICA SUSTAINABILITY SYMPOSIUM REVIEW

Under the theme "Defining the Future of Sustainability & Sustainable Living in Africa," the Africa Sustainability Symposium took place on June 13. The event brought together a distinguished group of CEOs and top decision-makers in the manufacturing industry. This high-level event provided a platform for thought-provoking discussions on critical issues surrounding sustainability in Africa, especially in light of the COVID-19 pandemic and disruptions in the supply chain.

The symposium delved into a range of pertinent topics, addressing the urgent need to mainstream sustainability practices across various sectors. Notably, the food industry took center stage with a focus on transitioning from import dependence to promoting local abundance. Participants engaged in insightful dialogues, sharing ideas and strategies to enhance local production capabilities and reduce reliance on external sources.

With a growing concern over food waste and its environmental impact, the symposium also held thought-provoking discussions on how the food industry can foster innovation to tackle waste and establish a circular economy.

The event's high-profile attendees, including CEOs and other top decisionmakers, lent credibility and expertise to the discussions. Their presence and active participation underscored the industry's dedication to sustainability and the pressing requirement for collaborative efforts to tackle the challenges at hand.

Meat BUSINESS

TRENDS IN FORMULATING, PROCESSING, PACKAGING & CONSUMPTION OF MEAT & ALTERNATIVE MEAT PRODUCTS

Meat Industry in Namibia: More investments needed, as sector turns East in search of new markets

By Paul Ongeto

Namibian meat industry, one of the country’s largest foreign exchange earners, is turning east in search of new lucrative markets.

Beef is the largest of the meat subsector in Namibia followed by lamb, mutton and goat meat. As of 2022, Namibia’s top beef export destinations are the EU with 29% of total beef exports, Norway with 25% and South Africa with 24%,

according to data from the Meat Board of Namibia.

As beef production is a key economic driver, contributing to about 70% of the country’s agricultural GDP, Namibia has been trying to diversify its export markets to fetch higher income for its people. In 2020, Namibia become the first African country to export red meat to the United States, following nearly two decades of negotiations. State-owned meat firm Meatco sent the country’s first shipment of 25

tons to the United States in February of that year with hopes of increasing exports to 5,000 tons by 2025.

The Namibian beef industry is also turning East and recently embarked on a trade mission seeking to explore new meat and meat products markets in the Middle East. According to the Namibia Agriculture Union (NAU) newsletter, trade missions were sent in August this year to United Arab Emirates (UAE) and Qatar to explore new markets for Namibia’s meat and meat products. “This mission offers exciting possibilities for expanding Namibia’s high-quality meat exports, attracting investments and creating more jobs in the country’s livestock industry,” the NAU said. Other countries on Namibia’s radar are Saudi Arabia and Kuwait which according to Dubai Chambers consume the most meat.

Namibia’s minister agriculture, water and land reform, Callle Schlettwein also recently revealed that the South African nation was in the final stages of negotiations to secure a deal to export Namibia’s beef to China, the world’s third largest market for beef, according to Research and Markets. “When finalised, this will open up a significant market for Namibian sheep and goat meat products, thus creating an opportunity for increased domestic productive capacity by producers,” Schlettwein said.

Research done by economic analysts, High Economic Intelligence, has unfolded the need for the Namibian beef industry to invest in new infrastructure such as feedlots, equipment and drought-restocking schemes to boost productivity in the sector.

Without adequate infrastructure, Namibia is at risk of continuing to lose income as a result of exporting live cattle which has low value compared to processed meat. Statistics issued by the Meat Board of Namibia show that live exports are taking over beef for the first 5 months of 2021. Until

May, Namibia exported 45 623 live animals, while local slaughtering stood at 29 379 head of cattle for both export and local consumption. Interestingly, the country only sold 1,800 tonnes of beef from the slaughtering of 18 156 head of cattle by the end of May. This is a decrease compared to the 3,300tonnesof beef sold last year from 23 396 head of cattle, the statistics show.

The analysts also found that effective national and transboundary vaccination programmes and disease control measures are needed to safeguard the health of the cattle population. In addition, Turimuye Uandara, an Economist at High Economic Intelligence says the application of the practices would help develop more productive and diseaseresistant cattle breeds and better feeding strategies and foster collaboration among industry stakeholders.

Capacity around standards also need to be boosted if Namibia is to fully exploit its beef export potential. Currently, Namibia does not have a halal certifying body that is recognised by the Gulf countries. As short term solution, it might need to explore alternative options such as using South African halal certifying bodies accepted in the Gulf region. Fortunately, the Halal Trade and Marketing Centre has provided valuable guidance on the certification process and has urged Namibia to speed up the certification process to meet the preferences and requirements of the UAE and Qatar markets.

Namibia currently hold a unique position as one of the few African countries with access to top-paying global markets. Further investments however remain key in unleashing the country’s export potential which will have a direct impact on the large proportion of the country’s rural population that depends on this activity for food security, livelihoods and economic well-being FBA

Market Trends

Brewing majors, craft brewers battle for a share of world’s last frontier market for beer

By Abel Ndeda

Beer is big business in Africa. According to data from Statista, the beer market is estimated to generate revenues of about US$29.41 billion in 2023. What’s even more lucrative is its yet-to-be-tapped potential. According to Statista, although Africa is home to 16% of the world’s population, it only accounted for a paltry eight

percent of the global beer consumption market in 2019. In value terms, Africa’s estimated beer revenue in 2023 is four times smaller than that of the world’s largest market China (US$125.60), although the Asian country only has 200 million more people.

This represents a low per capita consumption rate which is only expected to go higher as a majority of the

continent’s young population (the average median age in Africa is 19 years) matures and gains employment. As most of the world’s future population growth is expected to come from Africa, the continent’s contribution to the beer market is only expected to go higher. In the medium term, Statista estimates the market to grow annually by 6.16% (CAGR 2023-2027) with expected volume growth of 3.9% in 2024.

BIG BEER FIGHTS FOR SHARE OF THE CAKE

According to Asoko Insight, Africa represents the fastestgrowing beer market, rising at 5% annually, compared to 3% for Asia and 1% for Europe. Competing for the market are four multinational beer giants: the French Groupe Castel, the Dutch Heineken, the Belgian-Brazilian AB InBev, and the British Diageo. Collectively, these multinationals share 93% of African beer demand.

Turf wars between multinational alcohol corporations have increased in intensity across the African region as the market becomes even more lucrative. Competition is fierce in South Africa where AB InBev, through its local subsidiary South African Breweries (SAB) is locked horns with Heineken in a bitter fight for a bigger share of the continent’s most lucrative beer market. Revenue in South Africa’s beer market amounts to US$6.80bn in 2023, according to Statista.

Currently, AB InBev dominates the South African market, with a market share estimated at 20% to 25%. This might however not last for long as Heineken’s recent acquisition of Distell gives it access to a robust infrastructure that

would provide a way to increase sales of their brands and products in South Africa. Heineken further plans to make further investments including a €250m new brewery and maltery in the next five years. Analysts opine that this

could allow the brewer to take over 33% of the market in a few years. To counter Heineken, SAB has committed R5.8-billion (US$320m) investment this year to expand its production capacity and enhance its market presence. This year’s investment is in addition to the R11.7 billion (US$666 million) invested in the preceding two years to upgrade its Prospecton and Ibhayi Breweries.

Heineken and AB InBev are also aggressively competing in other African countries. In March 2019, Heineken opened a US$100m brewery in Mozambique,

ACCORDING TO ASOKO INSIGHTS, AFRICA REPRESENTS THE FASTEST GROWING BEER MARKET GLOBALLY, RISING AT 5% ANNUALLY.

where AB InBev controls 99% of the beer market through the Cervejas De Moçambique unit. This combined with the acquisition of Namibia Breweries in 2023 is expected to boost Heineken’s profile in Southern Africa. Heineken will also potentially overcome its struggles in countries like Botswana and Zambia, all the way to Tanzania and Kenya by combining their operations with Distell, which has for a long time now driven higher sales in these countries.

In East Africa, the script remains

the same, albeit with different players. Here, Diageo, through its local subsidiary East African Breweries (EABL) competes directly with AB InBev in Tanzania and Uganda where the former owns Tanzania Breweries Limited and Nile Breweries respectively. To gain an edge over its competitor, Diageo has been progressively modernizing its breweries in Tanzania and Uganda and intensifying its marketing which led to revenue growths of 15 and 18 percent respectively in 2022. AB

InBev in response recently invested US$40 million in its Kilimanjaro plant, a move which is expected to increase malting capacity to 16,000 MT once the project is fully completed in 2025.

Unlike its neighbors, Kenya remains firmly under the control of EABL which dominates over 90% of the market share, according to Statista. To consolidate its grip on the highly lucrative market accounting for 75% of its revenues in the region, Diageo in March increased its stake in EABL by 14.97% to reach 65%. Things are different in Ethiopia where Diageo chose to exit the beer market by selling its Meta Abo Brewery to BGI Ethiopia (a local subsidiary of Castel) in 2022. With Meta Abo, BGI has taken over market leadership from Heineken. The Dutch brewer had invested over US$310m to acquire two breweries in 2011 and build the country’s largest brewery in 2015. Castel plans to consolidate its new market status through an additional investment of ETB500 million (US$9.3 million) to remodel and expand the brewery as well as increase capacity and improve the brewery’s Meta Beer branding.

Nigeria, Africa’s second largest beer market by volume, is arguably one of the most competitive market of them all. Here, Heineken through its local subsidiary Nigerian Breweries, is locked in relentless competition

with two other multinational alcohol corporations Diageo (Guinness Nigeria) and AB InBev (International Breweries). Nigerian Beweries is the market leader accounting for 54% of all beer sales followed by Guinness Nigeria (24%) and International Breweries (22.2%). To consolidate its grip on the market, Heineken acquired more shares in Nigerian Breweries 2020 and in 2021 raised its ownership in another local brewer Champion Breweries to 86.4%. still in West Africa, Heineken is also engaged in another fights over market dominance in Ivory Coast where its local subsidiary Brassivoire is in direct competition with Castel-owned Solibra.

In some instances, the brewing majors abandon intensive competition in favor of collaboration which is mostly in form of licensing deals. A good example is in Cameroon where Diageo recently completed the sale of its Guinness Cameroon brewery to France's Castel Group for 389 million

pounds ($459.8 million). With the sale complete in May 2023, Castel has now taken over the production and nationwide distribution of Guinness in

KEY NUMBERS

US$29.4B

THE REVENUE TO BE GENERATED BY AFRICA BEER MARKET IN 2023.

Cameroon under a license and royalty agreement. Earlier in 2015, Heineken had entered a similar deal with Diageo. The Dutch brewer agreed to sell its 20% stake in Guinness Ghana Breweries Limited to Diageo and further granted Diageo exclusive producer and distributorship rights of

Heineken’s portfolio in Ghana.

CRAFT BREWING ON THE RISE

Joining the beer party is a small but budding group of craft brewers that is slowly spreading its tentacles across major cities in the continent. For many decades, craft beer was concentrated in South Africa with the country boasting over 215 craft breweries as of 2020. Now the action is spreading into the interior as more entrepreneurs introduce locals to the unique flavour and taste propositions of these niche beer category.

Close Neighbors Namibia and Botswana have warmed up towards craft beer with Namibia’s Swakopmund Brewing and Roof of Africa scooping awards at the Africa Beer Cup 2023. Zimbabwe and Zambia are other craft beer hot spots in the Southern Africa region with each boasting more than three established craft brewers as of 2022.

In Kenya, the craft beer market is

slowly growing with more than five craft brewers already having established presence in the country’s capital Nairobi. The Big Five which was among the pioneers of the craft beer in the country is now joined by Bila Shaka,

Microbrewery (2020).

In the west, Nigeria’s Bature Brewery is perhaps the most visible. Located in Lagos, the brewery plans to raise its capacity to 500,000 liters before the end of 2023. In neighboring Ghana, Speciality Beers opened its doors in 2022 and is already making waves in the African beer market, scooping 3 awards at the 2023 Africa Beer Cup held in South Africa.

The mushrooming of craft breweries across the continent is proof of a craft revolution that is slowly but steadily taking the African beer market by storm. According to Data Market Forecast, the Size of the Middle East and Africa (MEA) Craft Beer Market which was estimated to be US$8.75 million in 2022 is estimated to reach a valuation of US$39.45 million by the end of 2028, expanding at an annual growth rate of around 29% during the forecast period.

Sierra, and 254 breweries. Other smaller microbreweries including Crafty Chameleon and The Kraft have also joined the bandwagon offering customers increased access to new beer styles and flavors.

Neighboring Tanzania only has two known craft brewers: Twiga Brewery in Arusha and Crafty Dees in Dar es Salaam. Uganda has Banange Brewing Company whose distribution in Kampala is quite impressive while Rwanda has Kweza, its first and only microbrewery. Ethiopia has a young yet rising beer market with two breweries that stand out: The Beer Garden Inn (2006) and the most recent, Bole

What is driving this growth is consumer desire for new flavor experiences. Thus far, consumers have been only exposed to lagers such as Tusker, Heineken, Castle with the only slight difference coming in Guinness, a Diageoowned stout widely marketed across the continent. With little exploration outside lagers and stouts, a major gap in the market exists for beer consisting of more hops (ingredient providing bitterness) and malt variations as well as other flavour profiles. This is where the craft beer market comes in, producing variations such as German wheat beer, Indian Pale Ale’s (IPAs), Belgian ales, in combination with flavoured (sour, fruity, etc.) beers. The 2023 African Beer Cup brought to the fore just how big this market is. According to a statement from the organizers, now in its fifth year, the competition attracted 232 beers from 20 different African countries.

THE MUSHROOMING OF CRAFT BREWERIES ACROSS THE CONTINENT IS PROOF OF A CRAFT REVOLUTION THAT IS SLOWLY BUT STEADILY GATHERING MOMENTUM IN AFRICA.

SWIMMING AGAINST THE TIDE

Although the African beer market holds great potential, it’s not without its challenges. An informal economy strongly rooted not only in the villages but also in the big cities, slow and insufficiently extensive distribution channels for goods, and low purchasing power on the part of the local populations are the three factors that continue to limit market growth.

Excessive taxation is also becoming another growth limiting factor. Kenya has been particularly consistent in updating their excise

South Africa finally announced that excise duties on alcohol in financial year 2023/24 increased in line with expected inflation of 4.9%, a move that BASA welcomed. In response to the frequent tax updates, Africa Report reported that Diageo had opened tax dialogues with a number of governments in the region “to look at what constitutes a good tax revenue stream.”

Weighing in on the issue, alcohol industry executives say, competition, drought, economic growth that does not trickle down, political instability,

by drought, big beer producers like Diageo and AB InBev are making major investments in sustainable agricultural practices and responsible water use. Increased use of sorghum, a climate resilient crop, in local beers is also becoming a successive climate resilience strategy to keep the beer taps flowing.

As the market grows, we can only expect increased investment in many attractive regions in the continent. Craft Beer which is now being discovered by many African consumers will be a critical driver of this growth especially in countries with a large middle class capable of affording the premium price usually attached to these drinks. Big beer will however continue dominating the main stream and in regions like South Africa, Nigeria, Ivory Coast, and Ethiopia where there exists more than one dominant market player, competition is expected to be intense as each producer battlers to have a bigger pie of the expanding market.

tax for beer. In July 2022, Kenya increased beer excise tax by 10%, only to further raise it by 6.3% in October. These increases came on the heels of an annual upward excise adjustment in 2021, leading to a compounded annual excise tax increase of 23% for beer. Consequently, beer volumes were down 13% in Kenya as consumers shifted to other affordable alternatives including illicit liquor.

Active lobbying can however help reverse the deleterious effects of high taxation. A good example is South Africa where the lobby group for beer makers BASA and leading brewer SAB were able to actively influence government decision on beer taxation. After years of above inflation tax hikes,

regulatory headwinds and millennialsled dynamics are altering the alcohol industry in favour of spirits and lowend beer brands. Despite economic growth in East Africa averaging 6% in the years before the coronavirus pandemic, the ‘trickle-down’ effect has been minimal. This has impacted disposable incomes and slowed down bottled beer consumption in favour of liquor. Therefore, alcohol producers such as East Africa Breweries Ltd (EABL) have gradually shifted to production of spirits in line with consumer preferences.

As beer production is highly dependent on agriculture and is also a water intensive process, to guarantee its sustainability in a continent plagued

Those that placed their bets on the continent a long time ago are already seeing their efforts start to bear fruit. Groupe Castel was among the earlier believers in the African dream and today has a presence in fifteen African countries where it operates more than sixty breweries. This effort spanning decades is paying off as the French brewer is estimated to generate over 70% of its revenue from its African division, according to South World. Diageo, which has 12 breweries and ten facilities for blending, malting and bottling in the continent, says that it generates 11% of its revenues from Africa. There is money to be made in the African beer market. The market is already estimated to be worth over US$29 billion in 2023 and compounded annual growth is estimated at 6.1% annually for the next five years. Wise investment decisions combined with aggressive entrepreneurial maneuvers will however be key to striking this pot of gold FBA

MARKET TRENDS: BREWING INDUSTRY IN AFRICA

Ingredients for mood and cognition to headline the next wave of functional food and drink launches

By Paul Ongeto

Focus and productivity are poised to become the next benefits that consumers will seek from food and drink products, according to Mintel’s Global Food and Drink Trend ‘Staying Sharp’. The company’s global consumer research shows that 55 per cent of consumers would like their diet to help strengthen the immune system, 40 per cent would like their diet to help maintain healthy brain function, and 26 per cent to improve their mood.

“Cognition has become one of the most important categories for consumers,” affirms Stacey Daigle, NutriScience Innovations, VP of Marketing, Sales Ops. & Int’l. “The pandemic, changes in working and childcare situations, economic and employment uncertainty, and busier-thanever schedules have left many consumers looking for support to reduce stress, stay sharp and focused, and get a good night’s sleep so they can perform at their best.”

While speaking at the IFT 2023 (Institute of Food

Technologies), Stephanie Mattucci, Director of Mintel Food and Drink Research suggested noted that this trend gives brands have an opportunity to help consumers optimise their mental performance. To meet this demand, Mattucci further suggested that ingredients that provide focus and clarity and support brain health, could be part of the next wave of functional food and drink launches to watch.

CAFFEINE, A LEADING CONTENDER

In this category, Caffeine is a leading contender with 14 per cent of global F&B products launched in the last five years claimed to have brain/nervous system benefits, according to Mintel. However, consumer worry about the adverse effects of too much caffeine is creating new opportunities for new sources of caffeine are emerging, such as guarana, yerba mate and guayusa, and are often positioned as 'natural caffeine.'

“Brands that educate consumers about these less familiar sources of caffeine stand to benefit,” continued Mattucci. “Quantifying the amount of caffeine per serving or explaining that blends help reduce side effects and introduce new benefits builds trust

and engagement between consumers and the brand.”

B VITAMINS, MORE THAN JUST ENERGY

B vitamins are widely used in products with an energy claim. According to Mintel, two in five (37 per cent) global food and drink launches with an energy functional claim contained a B vitamin.

to produce energy as well as support neurotransmitters, which play a key role in mood and mental health.

Food and drink manufacturers are already tapping into this to affiliate B vitamin containing new products with brain benefits. According to Mintel nearly half (45%) of global food and drink launches with a brain/nervous system claim contained a B vitamin in the past five years. One example of a recently launched drink fortified with B Vitamins is Uganda’s Lato Gluco PowerB. The orange grape flavored soft drink is said to help consumers stay energized and focused.

ASHWAGANDHA, A RISING STAR

Ashwagandha, an Ayurvedic herb and adaptogen, has become popular in recent past mainly for its cognitive health benefits such as managing everyday stress and promoting better sleep. Between 2020 and 2021, sales grew by 226% according to HerbalGram’s 2021 Herb Market Report, with mood support supplements accounting for 96% of all mainstream ashwagandha sales.

With sales in the dietary supplement category cooling off, opportunity is emerging in the food and drinks category. “Some of the early trends we’re keeping an eye on is ashwagandha appearing in more mainstream products like gummies, on-the-go-drinks, and functional foods,” says Rachel Kreider, senior director of technical product and content design at GNC. Kerry notes that ashwagandha-derived ingredients can be incorporated into coffee, coffee alternatives and functional creamers, functional beverages, and chocolate products, among other applications.

B vitamins do more than just boost energy. They support metabolism and contribute to the body's ability

Hoping onto the trend, US functional beverage company So Good So You introduced “Happy” a new juice blend that contains ashwagandha as one of its main active ingredients. “Happy harnesses the power of high-quality adaptogens, ashwagandha, the inflammationbusting antioxidants of golden saffron, along with Vitamin D, to pack a mood-

B VITAMINS SUPPORT METABOLISM AND CONTRIBUTE TO THE BODY'S ABILITY TO PRODUCE ENERGY AS WELL AS SUPPORT NEUROTRANSMITTERS.

boosting punch whenever you need it,” said Rita Katona, So Good So You co-founder.

PRE AND PROBIOTICS

Scientific research connects probiotic foods and their nutrient sources (prebiotics) to improved mental health outcomes including reduced feelings of anxiety and depression. They do so by positively impacting neurotransmitters present in the gut that are central to mental health including serotonin, dopamine, and GABA.

Many people are already familiar with the potential benefits of probiotics. Over two-thirds (64%) of Gen X believe in the link between nutrition and the mind while nearly half (46%) of Gen Xs believe that a healthy gut leads to a good mood, according to Mintel. The International Food Information Council (IFIC) noted that mental health will be one of the most popular benefits that consumers will seek from their foods in 2023.

Yogurt is the most popular food choice when it comes to probiotics. Most processors have seized up this opportunity to create new yogurts with probiotic claims. A good example is Kenya’s brookside dairy which recently launched Brookside plus probiotic yogurt. Bio Foods, another leading Kenyan processor, also has Bio Active Probiotic Yoghurt that has been in the market since 2019. IFIC, however, notes that probiotics are expanding beyond the yogurt section, showing up in chocolate, ice cream, juices, sauces and nutrition bars. Beverages are another delivery system for probiotics and prebiotics. GoodBelly Probiotic JuiceDrinks, Chobani Probiotic Drinks, and Kenya’s very own Booch Kombucha are some of the drinks that tap into this rising demand for probiotic drinks.

OMEGA 3 FINDS USEFULNESS IN FOODS

Omega 3 is one of the world’s most clinically studied supplements and has been shown to positively impact

learning and behavior, mood, brain development, and memory. More recently, there has been prominent focus on incorporating omega-3 oils as ingredients in functional food and beverage products rather than traditional dietary supplement pills and capsules. According to Mintel’s Global New Products Database in 2020, more than 1800 commercial food products available in the market were fortified with omega-3 oils.

Previous attempts to fortify juices with omega 3 had failed due to consumer complaints of bad after

to optimize mental performance ingredients and benefits must first tap into familiar foods and nutrients which consumers know and feel safe consuming. As consumers become familiar with this concept, experimentation with novel brainboosting ingredients such as guarana, yerba mate and guayusa may follow.

As the concept of seeking foods that support mental health grows in popularity, food and beverage manufacturers will have another opportunity to pair ingredients that can

taste, most probably from the fish oil. But with the advancement of flavor and off-notes masking technology, the industry is making progress. Today, there are many foods that are fortified with Omega 3 including juice, meat, bakery snacks, milk, and yogurt products. America’s Tropicana Healthy Heart with Omega-3 Orange Juice and Norway’s EO3 multi-nutritional Omega-3 Fruit Smoothie are among example of products in this category. More such launches are expected in the future as food manufacturers innovate to meet demand for foods that improve cognitive function.

FAMILIAR INGREDIENTS A GOOD PLACE TO START

Food and drink brands looking

help consumers cope with stress with those that support mental clarity. This leads to a third area of opportunity in this space: harnessing the synergistic power of blends with the goal of reducing undesirable side effects and optimizing cognitive benefits.

Overall, interest in mood and cognitive benefits is modest but growing. “Brands have an opportunity to help consumers optimise their mental performance, but there is work to be done,” says Stephanie Mattucci, Director of Mintel Food and Drink Research. “Consumers need encouragement to try these products, creating an opportunity for brands to get consumers excited about brain and mood health benefits.” FBA

Kemin launches clean label functional protein for breaded,

battered and fried foods

– North America explains that depending on the application, InnoBLQ can reduce oil uptake by 25 – 30% while providing moisture retention and increased yield—all with a potential to reduce cost-in-use.

When applied topically, InnoBLQ can help improve the quality of breaded, battered, and fried foods and offers many exciting benefits, including improved bite and texture with a natural taste, appearance, and feel.

USA – Kemin Industries has launched a new fat-block topical solution, InnoBLQ™, that will serve as a clean label functional protein for breaded, battered and fried foods.

According to Kemin, InnoBLQ enhances yields and improves quality while retaining moisture and reducing the amount of fat uptake in

commercial production of battered and fried foods.

The clean label functional protein acts as a micro-barrier, enabling less waste in processing and improving batter adhesion for a crispier, more enticing bite.

Courtney Schwartz, Marketing Director, Kemin Food Technologies

It also helps to increase yields by retaining moisture throughout the entire processing and cooking process, which can increase cook yield for better plate coverage.

It is also said to help manufacturers achieve reduced added fat in finished foods by up to 50% depending on the application, as the micro-barrier formed via topical application reduces overall oil absorption into the product.

Puratos inaugurates chocolate manufacturing facility in Côte d'Ivoire

COTE D’IVOIRE – Belgium based food ingredients company Puratos, has officially inaugurated its chocolate manufacturing facility in Côte d'Ivoire.

The inauguration ceremony was presided by Côte d'Ivoire’s Minister of Trade, Industry and Promotion of SMEs Dr. Souleymane Diarrassouba.

The facility located at the Yopougon industrial zone produces chocolate and derivative products. It also manufactures improvers and mixes for the bakery and pastry.

According to a statement from the Ministry of Trade, Industry, and promotion of SMEs, the facility was established at a cost of 7.110 billion CFA francs (US$11.85 million) and will create about 100 direct and indirect jobs.

It has a production capacity of 600 tons of chocolate per year, expandable up to 2,400 tons per year and 750 tons of cocoa powder.

After Cemoi and Tafi, Puratos

is the 3th chocolatier to set up in Ivory Coast; which demonstrates the success of the industrial strategy of Côte D'Ivoire to gradually move from a land of cocoa to a land of chocolate.

Kerry unveils new ingredient to help manufacturers formulate immune boosting products

US – Kerry, a global leader in taste and nutrition solutions, has unveiled its latest innovation, “Wellmune Adapt,” a cutting-edge ingredient, designed to offer benefits such as supporting the immune system and targeting stress factors.

This groundbreaking product combines the power of yeast betaglucan with Kerry’s proprietary Sensoril ashwagandha root and leaf extract, offering consumers a unique and potent approach to supporting their immune systems.

The Yeast Beta Glucan, derived from a specific strain of yeast, beta-

glucan is renowned for its immunemodulating properties while the Sensoril Ashwagandha is extracted from the ancient adaptogenic herb, ashwagandha known for its stressreducing and rejuvenating effects.

Kerry notes that by combating stress, Sensoril helps optimize immune function, fostering a holistic approach to well-being.

Kerry said Wellmune can be used in a variety of food, beverage, and supplement products, ranging from coffee and tea to snacks and gummies.

The Wellmune Adapt solution is only available in the US at the moment.

SAFETY Mettler-Toledo updates inspection device management software to streamline food safety compliance

U.S – Mettler-Toledo, a leading provider of inspection systems for the food industry, has introduced a significant update to their ProdX inspection device management software.

Version 2.6, unveiled at Pack Expo Las Vegas, revolutionizes the way processors monitor their inspection equipment and collect crucial data for ensuring food safety, regulatory compliance, and operational efficiencies.

The new update has an optimized web dashboard that emulates the user experience of smart devices, allowing users to effortlessly monitor reject numbers, review contamination events, and generate reports from any in-network PC using a web client—no app downloads required.

ProdX 2.6 facilitates automated reporting by enabling the generation of final evaluations and summary

reports. Processors can automatically trigger a final evaluation at the end of every product run, shift, or day, ensuring data integrity before it is cleared.

formats, allowing for easy analysis and identifying opportunities for process improvement.

For Mettler-Toledo’s x-ray systems, ProdX 2.6 introduces the new Product Validation capability. It prevents unauthorized changes to product settings and visually confirms that the system is operating with an established validated recipe. Any modifications made to parameters are logged and recorded, ensuring traceability and accountability.

Designed to support a wide range of bulk and packaged food applications, ProdX seamlessly integrates with Mettler-Toledo’s metal detectors, checkweighers, x-ray systems, and vision inspection systems.

Additionally, customized daily, weekly, and monthly reports can be programmed and delivered in various

It is also compatible with select third-party checkweighers, broadening its application across diverse production environments.

FOR METTLER TOLEDO'S X-RAY SYSTEMS, PRODX 2.6 PREVENTS UNAUTHORIZED CHANGES TO PRODUCT SETTINGS.

FOOD

Solenis completes US$4.6B acquisition of hygiene solutions provider Diversey

USA – American manufacturer of specialty chemicals used in waterintensive industries Solenis, has completed the acquisition of hygiene solutions supplier Diversey in a deal valued at US$4.6 billion.

Diversey develops and delivers hygiene, infection prevention and cleaning products and technology serving more than 85,000 customers in over 80 countries.

The company with a network of almost 9000 employees globally, was until the recent deal, majority owned by Bain Capital, an American private investment firm based in Boston.

As a result of this transaction, Bain Capital, is expected to hold a minority stake in Solenis which is headquartered in Wilmington, Delaware, and was acquired by Platinum Equity in 2021.

Erema Group and Lindner Holding join forces to create industrial standards for plastics recycling

Led by CEO John Panichella, Solenis is a producer of specialty chemicals, focused on delivering sustainable solutions for waterintensive industries, including pulp, packaging paper and board, tissue and towel, oil and gas, and petroleum refining.

Its product portfolio includes a broad array of water treatment chemistries, process aids and functional additives, as well as monitoring and control systems.

AUSTRIA – Manufacturer of plastics recycling solutions, Erema Group and Lindner Holding have jointly founded BLUEONE Solutions to combine their expertise to create industrial standards for plastics recycling.

The two companies explain that current plastics recycling processes consist of several steps, including sorting, shredding, washing, drying to extrusion, filtration, compounding, and odour optimization.

With recyclers now aiming to achieve high recyclate qualities and energy efficiency, Erema and Lindner hope to fine-tune these individual processes.

Erema will contribute its knowledge of extruding and filtering, while Lindner will bring its experience in processing waste streams and washing to the table.

It is anticipated that this exchange of knowledge will optimize the recycling process as a whole, drive progress in the field of plastics recycling, and enable synergies to be exploited.

BLUESTONE Solutions will be owned in a 50:50 share by the Erema

also contributing.

“Thanks to this merger, Erema and Lindner will create a better overall understanding to jointly shape the necessary further development, especially in the polyolefins sector,” says Manfred Hackl, CEO of the EREMA Group.

Group and Lindner Holding, with shares of Lindner Washtech

EREMA WILL CONTRIBUTE TO ITS KNOWLEDGE OF EXTRUDING AND FILTERING WHILE LINDNER WILL BRING ITS EXPERIENCE IN PROCESSING WASTE STREAMS.

Barry Callebaut launches new sugar reduction ingredient made from Cacao

its existing ingredient range of pulp, juice and concentrate, the first-of-itskind cacao fruit powder will enable consumers to experience a new taste and texture in confectionery and ice cream.

“The most discarded fruit on the planet, cacao fruit, contains a delicious, nutritious pulp, which surrounds its precious seeds, or beans, which are harvested and used in the manufacture of chocolate,” Cabosse said.

fillings in confectionery and ice cream. He further added that the new product will cater to growing consumer demand for products containing less refined sugar and ingredients which are kinder to the environment.

BELGIUM – Cabosse Naturals, a brand by Barry Callebaut, has launched a free-flowing, 100% pure cacao fruit powder, a new ingredient that can replace refined sugar in several industrial applications.

The company said in addition to

“The upcycled cacao fruit powder is obtained from this sweet, fruity pulp, which would otherwise go to waste, and is blended with cocoa as a new carrier to produce a unique and delicious ingredient.”

According to William Agleys, sales director at Cabosse Naturals, the powder has the characteristic fresh fruitiness of the cacao fruit pulp and it can replace refined sugar in fat-based

Dow develops recyclable all-polyethylene (PE) yogurt pouch for Chinese dairy company

CHINA - Chemical company Dow has partnered with Mengniu, a leading dairy company in China, to launch an all-polyethylene (PE) yogurt pouch designed for recyclability.

The newly designed packaged was developed using the INNATE™ TF-BOPE resins which according to Dow helps ensure that packaging maintains its superior appearance and productiveness.

The all-PE packaging is a breakthrough for the dairy industry, as it enables traditional hard-to-recycle packaging to be integrated into closed-loop recycling streams.

In a joint statement, the two companies noted that this new innovation strengthens their commitment to achieving a circular economy in China.

“Through our advanced research and development capabilities, we strive to help brand owners like Mengniu to take action and deliver on their sustainability commitments,” said Bambang Candra, Asia Pacific commercial vice president of Dow Packaging and Specialty Plastics.

Mengniu’s yogurt with this all-PE packaging designed for recyclability was unveiled at the 2023 International Dairy Forum from Aug 4 to Aug 7 in Hohhot, a major city in Northern China.

Environmental-friendly manufacturing is an important pillar of Mengniu’s sustainability strategy. The dairy has set a goal to achieve 100 percent technically recyclable packaging by 2025.

THE CABOSSE POWDER HAS THE CHARACTERISTIC FRESH FRUITINESS OF CACAO FRUIT PULP AND CAN REPLACE REFINED SUGAR IN ICE CREAM.

Ingredion launches advanced stevia-based sweetening solution PureCircle

US – Ingredion, a leading global provider of ingredient solutions, has tailored a new advanced stevia-based sweetening solution in the food and beverage space called PureCircle Clean Taste Solutions.

PureCircle Clean Taste Solutions is a zero-calorie sweetening solution that reportedly provides clean-tasting sweetness for several applications, including beverages, dairy, tea, coffee, sports nutrition, bakery, confectionery, savory, sauces, and dressings, according to the company.

Stevia is a natural sweetener known for its intense sweetness without the added calories of sugar.

However, some individuals may perceive a distinct aftertaste when consuming stevia. The aftertaste can vary from person to person, but it is generally described as bitter, metallic,

INNOVATION

or licorice-like.

The main highlight of PureCircle Clean Taste Solutions is its ability to address the lingering aftertaste often associated with stevia-based sweeteners.

The company said PureCircle by Ingredion is the only stevia producer

to offer stevia sweeteners like Reb M from stevia leaf extract, bioconversion, and fermentation technologies. Ingredion added that the innovations help drive cost-efficiency and sustainability, and create a path for reducing sugar with quality, healthconscious ingredients.

technology company Bühler enters new partnership to explore innovation in coffee roasting

Swiss

the supply chain. Bühler’s RoastMaster series comprises four sizes with throughput per hour ranging from 70 kilograms up to 1 ton.

Meanwhile, Ikawa entered the coffee stage in 2010 as a start-up leading the adoption of digital roasting which made sample evaluation easy and accessible.

UK – Swiss technology group Bühler has entered a new partnership with British coffee roaster Ikawa to explore new innovations in the microand medium- to large-scale coffee roastings space.

The strategic partnership will

exploit the potential for product development between IKAWA’s market-leading sample roasters and Bühler’s RoastMaster series to address this gap.

Bühler is known for building coffee factories, and equipment throughout

Andrew Stordy, Founder of IKAWA, says: “Bühler brings a wealth of experience and knowledge in engineering and manufacturing. This experience will complement the usercentered approach to design we have become known for in sample roasting.”

Ikawa will lead the first phase of user research by inviting professionals from the roasting market to participate in feedback and testing sessions.

AFRICA

BUSINESS SUMMIT

The Africa CEO & Leadership Forum

THEME: Taking The Leap Through

Inspirational Leadership & Digitalisation

The Africa Business Summit is the ground-breaking conference and exhibition that brings together the key decision makers to define the future of business innovation, strategic leadership and the transformation of Africa, as we approach 2030 and beyond.

The program at the 3-day Summit will comprise of high-level keynote speeches and panel discussions plus sponsored industry and country-focused sessions. It will also feature fireside chats with influential people and change makers who are making waves – and inspiring the next generation of leaders in Africa