AFRICA’S NO.1 FOOD MANUFACTURING & RETAIL INDUSTRY MAGAZINE
Food Business Africa
20 TOP
FOOD COMPANIES IN AFRICA
2023
KENCHIC
Kenchic MD, Jim Tozer, discusses its renewed purpose of enabling shared prosperity through sustainable food production
EVENT REVIEW: AFMASS TANZANIA FOOD EXPO 2023 UGANDA’S COFFEE AMBITIONS BEVERAGE ALCOHOL PREMIUMIZATION EGYPT BEEF INDUSTRY OUTLOOK ACTIVE AGEING WWW.FOODBUSINESSAFRICA.COM
YEAR 10 | ISSUE NO. 59 NOV/DEC 2023
AFRICA
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CONTENTS
YEAR 10 | ISSUE NO. 59 NOV/DEC 2023
REGULARS 4 Editorial 8 Events Calendar 10 News Update 22 Packaging News 24 Food Safety News 26 Appointments Update 68 Supplier News & Innovations
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New Product Innovations:
Malbros Africa: Nuvita Thins | Unilever Kenya: Royco Spices | 260 Brands: Nutra sip Soya Juice Blend | KWV: POTSTILL Brandy | Tiger Brands: Jungle Oat Drink range | UBL: Uganda Waragi lemon and ginger
INDUSTRY REPORT 54 Uganda's Coffee Ambitions: Brewing a Path to 20 Million Bags by 2030
MEAT BUSINESS AFRICA 59 Egypt Beef Industry Outlook: Industry Faces Uncertain Future Amidst Rising Costs and Supply Chain Disruptions BEVERAGE TECH AFRICA 50 Premiumization's Pause: Beverage Alcohol's Stalled Ascension in the Shadow of Inflation
FOOD NUTRITION & HEALTH 62 Active Ageing: Formulating foods with the adult population in mind FOODBUSINESSAFRICA.COM
NOV/DEC 2023 | FOOD BUSINESS AFRICA
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CONTENTS
YEAR 10 | ISSUE NO. 59 NOV/DEC 2023
Review: AFMASS Tanzania 38 Event Food Expo 2023 A review of the happenings at the second edition of AFMASS Tanzania Food Expo 2023 edition
30 My Company Profile: Kenchic Enabling shared prosperity through Sustainable Food Production
ON THE COVER - Jim Tozer, CEO, Kenchic 2
NOV/DEC 2023 | FOOD BUSINESS AFRICA
20: Food Companies in 44 Top Africa We present the inaugural ranking of Africa’s top 20 food companies, based on a rigorous analysis of their market capitalization. FOODBUSINESSAFRICA.COM
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EDITORIAL
Year 10 | Issue No.59 • ISSN2307-3535
FOUNDER & PUBLISHER Francis Juma SENIOR EDITOR Paul Ongeto ASSOCIATE EDITOR Mary Wanjira ASSOCIATE EDITOR Vincent Moranga BUSINESS DEVELOPMENT DIRECTOR Virginia Nyoro BUSINESS DEVELOPMENT EXECUTIVE 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
OUR PUBLICATIONS
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.
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Celebrating Food, Family and the Future
A
s we approach the joyous season of Christmas, we are thrilled to present our final issue for the year, Issue 59 of Food Business Africa magazine. We extend our warmest wishes for a Merry Christmas and a happy new year to you and your loved ones! This festive period is synonymous with celebration, and what better way to celebrate than with a delightful array of delicious and nutritious meals? Soaring above the competition, Kenchic, East Africa's dominant integrated poultry business, graces our cover this edition. For nearly four decades, this Kenyan powerhouse has provided the region with premium day-old chicks and high-quality meat products. From whole chickens and cuts to delectable sausages, burgers, smoked options, breaded nuggets, and strips, Kenchic's offerings tantalize taste buds and nourish families across the region. But Kenchic's story is about to take flight in a whole new direction. Embarking on a thrilling journey of innovation and diversification, the company is expanding its horizons beyond traditional poultry. We sat down with Jim Tozer, Kenchic's visionary Managing Director, to delve into the company's renewed purpose: enabling shared prosperity through sustainable food production. As life expectancy rises, "active ageing" has become a significant consumer concern. We explore how
Paul Ongeto, Senior Editor FW Africa
MILLING
Food Business Africa www.foodbusinessafrica.com
food manufacturers are adapting their formulas to meet the nutritional needs of this growing demographic. With inflation tightening consumer wallets, some experts worry that the premiumization trend in the alcohol industry might be nearing its end. We delve into industry insights to understand if this popular trend is truly on its deathbed. For the very first time, we present a comprehensive ranking of Africa's top 20 food companies by market capitalization, highlighting the continent's leading players in this vital sector. Beyond these featured articles, Issue 59 offers a wealth of insightful content on the latest trends and developments in the dynamic food and beverage industry. We invite you to indulge in this informative edition and wish you a happy and fulfilling holiday season!
MIDDLE EAST & AFRICA
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PERFECT SOLUTIONS DO NOT STOP US FROM CONTINUING TO WORK ON OUR IDEAS.
As a leading innovator, we have one prime characteristic: We are never satisfied. At KHS, we are thus always proud of what we have achieved – but we also immediately start to question it and think ahead. With the aim of constantly advancing and always improving – and of providing our customers with new, intelligent systems time and again. Which we then, of course, develop further. khs.com/products
EVENTS CALENDAR
9TH AGRO & POULTRY AFRICA 2024 INTERNATIONAL TRADE EXHIBITION
9th Agro & Poultry Africa 2024 International Trade Exhibition is an international Trade Show on Agriculture & Inputs, Aquaculture, Dairy, Irrigation, Poultry & Meat, Livestock, Tractors & Harvesting Machinery. The exhibition will be held in Conjunction with AgroFoodpack Africa 2024consumer trends.
7TH FOOD PACK EAST AFRICA 2024 INTERNATIONAL TRADE EXHIBITION
Food Pack East Africa is a trade show focused on food, processing, beverages, bakery, sweets, and packaging. 26 - 28 January, 2024 Dar-Es-Salaam, Tanzania www.mxmexhibitions.com/ foodpack_tanz
26 - 28 Jan 2024 Dar-Es-Salaam, Tanzania www.mxmexhibitions.com/ agroPoultryTanzania
20TH AFRICAN FINE COFFEES CONFERENCE & EXHIBITION AND 1ST AFRICAN COFFEE WEEK
AFRICA FOOD SAFETY SUMMIT
The Africa Food Safety Summit is Africa’s premier and largest international food safety, quality and food systems conference and exhibition. The Summit will bring together regional and global experts and stakeholders to share the latest trends in food safety, quality management, nutrition, food security, science and technology; regulations, standards and compliance; and sustainable adoption of safe practices and technologies in the entire agriculture and food value chain in Africa. April 2024 Addis Ababa, Ethiopia africafoodsafetysummit.com
GRAINS AFRICA 2024
NIGERIA AGRO-FOOD 2024
Grains Africa 2024 outstands as the largest export oriented international trade exhibition on Grains held annually in conjunction with AgroFoodpack 2024. 26 - 28 January, 2024
February 6 -10, 2024
Dar-es-Salaam, Tanzania
Millenium Hall, Addis Ababa, Ethiopia
www.mxmexhibitions.com/ grainsafrica 6
The African Fine Coffees Conference & Exhibition and Coffee Week is Africa’s largest coffee trade platform that – over the three days of the event – brings over 2000 regional and international coffee roasters, traders, producers, professionals and connoisseurs under one roof
NOV/DEC 2023 | FOOD BUSINESS AFRICA
www.afca.coffee/conference
The agrofood Nigeria is an international trade fair for agriculture, food and food technology, packaging technology as well as hotel and catering needs 26 - 28 March, 2024 Landmark Centre Lagos www.agrofood-nigeria.com FOODBUSINESSAFRICA.COM
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EVENTS CALENDAR
AGRITECH WEST AFRICA
The Agritech West Africa with Food & Beverage co-located with FoodPack Tech Ghana exhibition covers the entire value chain of agriculture industry under one roof with about 100 companies exhibiting from India, South Africa, Turkey, Nigeria, Ghana, UK, Italy, France and other countries, representing multiple product segments like agrochemicals, agriculture technology, irrigation, biofeeds, food processing and packaging technologies, food innovation, processed and packed food & beverage items.
NIGERIA MEAT TECH EXPO 2024
PROPPAK MENA
Nigeria Meat Tech Expo is the biggest
ProPak
and most important event for the Nigerian meat industry. It is a platform to showcase the latest innovations, products, and services in the Nigerian meat industry. NIMEATech provides an opportunity for local and international companies to exhibit their products and services to a captive audience of meat industry professionals.
23rd - 25th April, 2024
19 - 21 March, 2024
NIPOLI Village, NCRI, Ibadan, South West, Nigeria
Accra International Conference Center, Accra Ghana
www.nipoliexpo.com.ng/ nimeatech/
www.agritechwestafrica.com 11TH ANNUAL AFRICA SUGAR CONFERENCE
MENA is the premier packaging and processing sourcing event for Africa’s food and beverage manufacturing supply chain. It brings together thousands of key F&B manufacturing professionals from Egypt and worldwide to connect, learn, and grow, which will take place from 26 - 28 May, 2024 Egypt International Exhibition Center www.propakmena.com
CONNECT WITH US!
NIPOLI EXPO 2024
Nipoli Expo is the largest and exclusive livestock and poultry expo in West Africa offering an influential platform for professionals in the industry to network, share insights, and explore business opportunities. With a focus on poultry and livestock, this expo provides a comprehensive overview of the latest technologies, trends, and best practices within the sector 23 - 25 April, 2024 NCRI Ibadan, Nigeria www.nipoliexpo.com.ng/ nimeatech 8
NOV/DEC 2023 | FOOD BUSINESS AFRICA
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NEWS UPDATES by www.FoodBusinessAfrica.com MARKET UPDATE
Plant-based meat industry poised for growth despite recent setbacks, say experts WORLD – The plant-based meat industry, though facing recent challenges, remains optimistic about future growth, according to industry experts. Despite setbacks for companies like Beyond Meat and Maple Leaf Foods, experts suggest that there are still areas for growth and improvement within the sector. Companies like Maple Leaf Foods made significant investments in plant-based alternatives, anticipating sustained consumer interest.
Industry experts acknowledged the need for improvements in plantbased meat products, particularly in taste, texture, and pricing. Ellen Goddard, an agricultural economist and professor at the University of Alberta, notes that many plant-based products face challenges in meeting consumer expectations. “Price, in particular, has become a significant consideration for consumers,” he noted. Bill Greuel, CEO of Protein Industries Canada, emphasizes the
need for increased investment and processing capacity to make plantbased meat more competitive in terms of pricing. Despite recent challenges, a report by Ernst & Young for Protein Industries Canada offers a positive outlook, projecting a global market for plant-based meat between US$88.3 billion and US$139.4 billion by 2035. The report suggested that plantbased proteins could offer a more sustainable food source as the global population grows.
Mitsui & Co. takes stake in Egypt’s Wadi Poultry food production and the agri-sector, poultry processing and breeding, and animal feed. Breeding and chicken farming is conducted by the Dawagen unit and animal feed comes under the Sina’at division. “After the share acquisition, its [Wadi Poultry] holding company will become an associated company of Mitsui,” the Japanese business said in a statement.
EGYPT – Japanese conglomerate Mitsui & Co. has extended its reach into food with an undisclosed stake in Egypt-based Wadi Poultry. Tokyo-headquartered Mitsui said it has concluded an agreement with Wadi and its “related subsidiaries” for the “share acquisition” but did not reveal the financial terms nor the size of the investment interest. Giza-based Wadi Poultry, part of the Wadi Group holding company, operates in three segments covering ACQUISITION
Nile Breweries launches barley drying and cleaning plant UGANDA – Nile Breweries Ltd (NBL), a leading beer manufacturer in Uganda, has launched a UGX 4bn (US$1.06 million) state-of-the-art barley cleaning and drying plant in Cheminy, Kween district. Established in 1951, NBL is today a proud part of the ABInBev family after the successful completion of the 10
NOV/DEC 2023 | FOOD BUSINESS AFRICA
business combination with SABMiller plc in 2016. The newly opened plant is located in the heart of Sebei region and will play a crucial role in advancing the quality and sustainability of barley production in the region. Before the opening of the plant, the Nile Special producer operated
2 breweries, located in Jinja and Mbarara, and 1 malting plant. The cleaning and drying plant will provide a safe storage facility to maintain the quality of barley and mitigate post-harvest losses for over 5,00 barley farmers in Kween, Kapchorwa, and Bukwo districts in Uganda. FOODBUSINESSAFRICA.COM
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TEA, COFFEE & C COA EXPO
NEWS UPDATES
Dar es Salaam tea auction goes live, picks 25% out of Mombasa basket TANZANIA – Tanzania held its firstever tea auction in Dar es Salaam in November, concluding a five-year project that is expected to not only boost incomes for the country’s farmers. Tanzania, a mid-tier East African tea producer, is banking on the lower cost of logistics with key high quality tea producers in the region to trade about 65,000 tonnes of tea weekly. This is bad news for Mombasa auction, the leading tea exporter in the world, which handles about 247,000 tonnes weekly. According to reports by the Daily Nation, this new development may lead to the Mombasa Tea Auction losing over 25 percent of its volumes.
United National Breweries set to launch new sorghum beer plant in South Africa SOUTH AFRICA – United National Breweries, a subsidiary of the Zimbabwe-based beverage company Delta Corporation, is gearing up to inaugurate a sorghum beer plant before the end of this financial year. The upcoming facility is slated to produce “Chibuku Super,” one of Delta Corp’s flagship sorghum beer brands that has been rapidly gaining favor among South African consumers. Chibuku Super represents a forward-looking iteration of the Chibuku brand, boasting a notably enhanced profile compared to its predecessor while retaining the cherished traditional taste. This beer contains 4% alcohol by volume and is packaged in 1.5-liter returnable bottles. 12
NOV/DEC 2023 | FOOD BUSINESS AFRICA
MARKET TRENDS
Ready-To-Drink alcohol category value to hit US$40bn by 2027
GLOBAL – The ready-to-drink alcoholic beverage category is set to grow by 12% in volume terms between 2022 and 2027, hitting a value of US$40 billion in ten key markets, a study by IWSR Drinks Market Analysis has found. Category growth is expected to be driven by the key cocktails/long drinks sub-category and products that sit within the premium-and-above price bracket, IWSR said. The findings were based on 10 key markets, Australia, Brazil, Canada, China, Germany, Japan, Mexico, South Africa, the UK and the US, which together account for 83% of global RTD consumption. RTD sales in these markets totalled $33.9 billion in 2022. “Growth is slowing in an increasingly mature global RTD category, but opportunities persist in the cocktails/long drinks space and for premium-plus products that prioritise consumer- forward cues such as RTD base, ABV and flavour,” commented Susie Goldspink, head of RTD insights, IWSR. The pace of innovation in the RTD category has slowed from its 2021 peak, the study found, with some 1,000 new products launched in the first half of 2023. Across 2021 as a
whole, more than 3,000 products were launched. Innovation is focusing more on premium products, with an increased focus on ingredients and added functionality, Goldspink added.
THE FINDINGS WERE BASED ON 10 KEY MARKETS; AUSTRALIA, BRAZIL, CANDA, CHINA, GERMANY, JAPAN, MEXICO, SOUTH AFRICA, THE UK, AND THE US. These are "all aspects that offer a point of differentiation to consumers,” she said. “Although the pace of innovation has slowed, the effectiveness of new launches has improved, as producers are more strategic and targeted in their product launches.” FOODBUSINESSAFRICA.COM
INVESTMENT
KBL inaugurates KSh1.2B microbrewery, launches Manyatta apple cider KENYA – Kenya Breweries Ltd, part of East African Breweries Ltd, has commenced production at its new Ksh1.2 billion (US$7.85 million) microbrewery, a cutting-edge facility adjacent to its primary plant in Ruaraka dedicated to exploration in innovation and experimentation. The new microbrewery features a tasting room where visitors will learn about and sample the various brews on offer, with sensory experts at hand to take them through the processes. KBL says the investment positions the company at the forefront of innovation, solidifying its commitment to delivering top-notch beverages to the Kenyan market and beyond. According to the Tusker lager producer, the investment has been meticulously allocated to cutting-edge technologies, sustainable practices, and infrastructural enhancements that will not only boost production capabilities but also elevate the overall quality of KBL’s renowned beverages. With the microbrewery, KBL can combine data, insights, and innovation with the creative flair that
consumers expect. The brewer further noted that the new microbrewery is aimed at helping the business extend its innovation capability to meet consumers’ changing tastes and preferences. In line with this objective, the newly operational microbrewery has unveiled its inaugural commercial product brand, Manyatta, a 100 percent apple cider. The product line includes three
enticing flavored variants: Mango & Ginger; Lemon & Ginger, and Pineapple & Mint. The new investment was part of events to mark the 100-year anniversary of the parent company East African Breweries Plc (EABL), part of Diageo. Jane Karuku, CEO and Managing Director EABL, said, “While we reflect and honor the past, we are passionate about nurturing categories old and new and about building authentically crafted, culturally relevant brands. "We move at pace with the latest trends, creating products, tastes, and experiences for people to enjoy as part of celebrations big or small. This requires focus, precision, and investment in what we call a perfect blend of creativity with precision.” The facility boasts eco-friendly features designed to minimize its environmental footprint, with Karuku disclosing that the company upheld sustainability through the use of old worn Tusker glass in the finishings and ensuring that all the site waste will be recyclable.
NEWS UPDATES
GOVT
Italy bans cultivated meat, restricts plant-based meat labelling ITALY – Italy’s government has announced the passing of a bill banning the production and marketing of cultivated meat. The measures, which also restrict labelling for plant-based products, aim to protect Italy’s traditional food culture. The bill, which bans the production and promotion of cultivated meat, was passed by Italy’s Chamber of Deputies, its lower house. Anyone who breaches it could be subject to a fine of €60,000. The bill also includes restrictions on what manufacturers can callplant-based meat alternatives, preventing them from using meat-based names such as ‘salami’ or ‘steak.’
SAB completes US$320m capacity upgrades at two major plants SOUTH AFRICA – South African Breweries (SAB) has announced the achievement of its R5.8 billion investment commitment to enhance production capacity at two major plants. The investment was allocated to civil works and new equipment, specifically aimed at facilitating increased local production for innovative new products. This significant investment targeted two facilities: the Prospecton Brewery in Durban and the Ibhayi Brewery in Gqeberha, Eastern Cape. SAB’s CEO, Richard RivettCarnac, emphasized the company’s dedication to sustainable investments and economic growth, underscoring the substantial contributions made by their investments over time to the South African economy. Rivett-Carnac highlighted the positive impact on job creation resulting from the Prospecton Brewery expansion 14
NOV/DEC 2023 | FOOD BUSINESS AFRICA
“We protect our food, our food system, to maintain the relationship between food, land and human work that has accompanied us for millennia, guaranteeing the quality that Italy expresses and which is the expression of food safety for the entire planet,” said Italy’s Minister for Agriculture, Francesco Lollobrigada. Cultivated meat, he said, “does not guarantee this principle. We must protect our workers, our agricultural entrepreneurs and ourcitizens who have the right to eat well." He went on to say that the EU has not given the novel food regulatory approval, and that he is confident that they will reject it.
STRATEGY
Nigeria Breweries to take over Heineken operations in Nigeria NIGERIA – Nigerian Breweries (NB) Ltd, the largest brewing company in Nigeria, is set to start the importation, marketing and distribution of wines, spirits and cider products, once a new deal with parent company Heineken is finalised. Under the deal, Nigerian Breweries is expected to spend N7.01 billion (US$8.4 million) to acquire two Nigerian subsidiaries of Heineken, a move that is expected to bring all of Heineken’s operations in Nigeria under one roof. A statement from NB’s board of directors disclosed that the brewer is seeking to acquire 80 percent shareholding in Distell Wines and Spirits Nigeria (DWSN) and 100 per cent import business from Heineken Beverages Limited. Once fully implemented, NB will have exclusive rights to import Heineken Beverages’ wines, spirits
and ciders brands from South Africa. NB will also have the right to licence to market and distribute the products in Nigeria, including the right to locally produce any of the imported brands. FOODBUSINESSAFRICA.COM
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NEWS UPDATES
BUA Foods spending on raw materials jumps 78% to US$386M due to inflation NIGERIA – BUA Foods reported a 78% jump in the cost of raw materials in the month of September, the highest of the three companies reviewed Nigerian news agency Punch. The other companies that were part of the review include Dangote Sugar Refineries Plc and Nason Allied Industries Plc. According to the review, the company raw material expenditure rose to N310.15bn (US$386 million) from N173.53bn (US$216 million) in the previous period. Cumulative raw material costs for the three companies during the period under review stood at N534.09bn, which is 18.10 per cent higher than in 2022.
Brazil coffee production forecasted to reach 66.3M bags in 2023/2024 BRAZIL – Brazilian coffee production is predicted to decline slightly to 66.3 million bags (60 kg- bag), green bean equivalent, from the previous 66.4 million bags, according to a Global Agricultural Information Network report from the US Department of Agriculture’s Foreign Agricultural Service (FAS). This decrease is attributed to an anticipated 1.4 percent reduction in robusta/conilon output, projected at 21.4 million bags. On a positive note, arabica production is anticipated to exceed 44.9 million bags, representing a 12.8% rise over the previous season. This growth can be attributed to the increased planted area and improved yield. 16
NOV/DEC 2023 | FOOD BUSINESS AFRICA
APPOINTMENT
William Grant & Sons taps Heineken Exec Søren Hagh as new CEO
UK – William Grant & Sons Ltd, an independent, family-owned Scottish company that distills Scotch whisky and other selected categories of spirits, has tapped Heineken executive, Søren Hagh, as the new CEO.
According to a statement from the company which is the largest of the handful of Scotch whisky distillers remaining in family ownership, Soren Hagh will take over CEO roles from chairman Glenn Gordon. Hagh is the current Heineken president in the European region, a position he has held since his appointment in June 2020. Before his entry at Heineken more than a decade ago, he worked with L’Oreal in both marketing and in-market distribution management roles, as well as in marketing for Lego. “There is no doubt that Søren will provide strong leadership for the company, as he brings a tremendous wealth of relevant experience to the business from his many years working in the drinks sector,” a spokesperson for William Grant & Sons said
INVESTMENT
Sovena Group invests US$20M in Angola soybean oil processing facility ANGOLA – Sovena, a Portuguese family group, has invested around US$20 million in equipment and stocks in Luanda, according to news agency Jornal de Angola. Citing a statement note from the company, the news agency reported that the new facility has packaging lines with a capacity for 45 million liters of oil per year and has additional room for future expansion. The factory currently employs 18 local staff, a number that will increase to 50 people by the end of 2023, with the implementation of a second shift. Indirectly, Sovena anticipates that the oil processing facility is expected to creat at least least 100 jobs. “The opening of a Fula oil factory
in Luanda, a reference for soybean oils in Angola, last July marks the beginning of Sovena’s integration into the national food production chain and the objective of developing the Angolan countryside,” Sovena said in the statement seen by Jornal de Angola. FOODBUSINESSAFRICA.COM
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M&A
Mauritius-based Phoenix Beverages Group buys 28% stake in Kenya's African Originals Ltd
KENYA – African Originals, the makers of popular Kenyan Original (KO) brand of ciders, has ceded a 28.3% equity stake to Mauritius-based Phoenix Beverages Group (PBG). Beyond KO range of cider products,
AOL, is renowned for its unique range of gin and fruit-based beverages and boasts an outstanding reputation for its unique and innovative offerings. Operating under the brand names KO and 5.8, AOL has successfully carved a niche in the competitive Kenyan market with a diverse product portfolio and an unwavering commitment to quality and originality. Phoenix Beverages Group, a prominent player in the beverage industry with a rich history of serving consumers across the African region, emphasizes excellence and innovation. Its entry into the Kenyan market through African Originals underscores PBG’s commitment to bolstering its presence across East Africa, aligning seamlessly with its vision to emerge as
a key regional player in the beverage industry. Bernard Theys, CEO of Phoenix Beverages Group, expressed enthusiasm about the strategic move, stating, “We are excited about our entry into the Kenyan market. AOL’s unique portfolio and dedication to quality seamlessly align with our values. We look forward to collaborating closely with the AOL team and contributing to the sustained success of their brands in Kenya.” This strategic investment not only signifies Phoenix Beverages Group’s commitment to growth but also positions them to leverage AOL’s established market presence in Kenya, contributing to the vibrancy and diversity of the East African beverage landscape.
INVESTMENTS
Angola’s Aguas Bom Jesus boosts production with US$9 million investment in fully automated line ANGOLA – Aguas Bom Jesus, a prominent mineral water manufacturer, has unveiled its first fully automated production line to meet rising demand for bottled water in Angola. The production line, installed in the company’s factory located in the Bom Jesus province of Luanda, marks a milestone in the company’s efforts to meet the increasing demand for bottled water in the region. According to Statista, the revenue in the bottled water market in Angola amounts to US715.5M with a projected annual growth rate of 5.98 percent CAGR 2023-2027. The newly inaugurated production line, financed at a total cost of US$9 million, is expected to revolutionize Aguas Bom Jesus’ operations. 18
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The company, previously reliant on three manual manufacturing lines, anticipates a substantial boost in production capacity—from 2,200 to an impressive 16,000 bottles of mineral and table water per day. The Angolan News Agency reports that this substantial investment is projected to propel Aguas Bom Jesus’ turnover to over 5 billion kwanzas (US$5.9 million) within the next five years. This is a significant leap from its current revenue standing at US$1 million. The company is actively pursuing market expansion, with plans to enhance sales in the provinces of Luanda and Benguela, while also eyeing export opportunities, particularly to neighbouring countries
like the Democratic Republic of Congo (DRC) and Zambia. FOODBUSINESSAFRICA.COM
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NEWS UPDATES
Unilever CEO rules out spinning off food, unveils “action plan” to address underperformance UK – Unilever chief Hein Schumacher has deflected any prospect that food might be spun off as a separate business unit despite the UK-based FMCG company reporting a decline in volumes across food divisions, while volumes rose in other business areas – personal and home care, and beauty and wellbeing. In place of spin-offs, Unilever has put in place an “action plan” centred on “faster growth; productivity and simplicity; and performance culture” to address underperformance. The plan is aimed at “strengthening” the group’s “multi-year financial framework”, including achieving annual underlying sales growth (USG) of 3-5%.
Ugandan dairy processor Amos Dairies secures US$10M from Exeo Capital UGANDA – Exeo Capital has announced that its Agri-Vie Fund II will deploy US$10 million towards Amos Dairies’ next strategic growth step as it concretises its market capacity as one of the largest milk processors in Uganda and the only processor of casein in sub-Saharan Africa. Amos Dairies Limited currently manufactures nine products: ghee, butter, casein, skimmed milk powder, whole milk powder, whey permeates, whey concentrate, instant milk powder, and extended shelf-life milk. As part of EXEO’s portfolio, Amos Dairies will gain access to new markets and customer bases through the firm’s extensive networks. 20
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INVESTMET
KTDA unveils plans to invest US$66M in new speciality tea processing lines
KENYA – The Kenya Tea Development Agency (KTDA) is planning to install specialty tea processing units across 32 factories under its management at a cost of Ksh 10 billion (US$65.88 million) in an effort to reap more for this highly lucrative sector amid declining revenues in traditional loose leaf black tea.
“In pursuit of management mandate and to maximize returns, KTDA-MS has embarked on product diversification through the installation of orthodox tea processing machinery as an additional production line to the black CTC lines currently in place,” KTDA said in a statement. The agency is currently seeking proposals from lenders for the provision of financing for the project which also includes the acquisition of automated withering machines. “The financing facility required for the rollout of the 32 projects is approximately Ksh 10 billion or equivalent in US dollars,” KTDA said. The private holding company owned by more than 600,000 smallholder farmers across the country has already installed such processing units in 11 of its affiliated factories.
STRATEGY
Kraft Heinz to split international arm into three divisions UNITED STATES – Kraft Heinz, an American multinational food company has announced a significant restructuring plan that will see the division of its international operations into three distinct units in a move to drive faster growth. The proposed structure will have three entities; Kraft Heinz International North America, Kraft Heinz International Europe, and Kraft Heinz International Asia-Pacific and Latin America. The new structure will also provide an opportunity for each unit to make region-specific investments, product development, and marketing strategies. Kraft Heinz Asia-Pacific and Latin America will concentrate on
expanding Kraft Heinz’s presence in the Asia Miguel Patricio, CEO of the Kraft Heinz Company said, “Our decision to split our international arm into three distinct units reflects our commitment to customization and customer-centricity. We believe this will enhance our ability to respond to local market needs and consumer preferences, enabling us to bring our beloved products closer to consumers worldwide.” FOODBUSINESSAFRICA.COM
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PACKAGING NEWS
Huhtamaki north America introduces fiber-based egg cartons
Tetra Pak launches new low-carbon aseptic beverage carton PORTUGAL – Tetra Pak has unveiled a groundbreaking aseptic beverage carton, significantly reducing the carbon footprint of milk cartons by a third. The newly introduced Tetra Brik Aseptic 200 Slim Leaf carton attributes its lower carbon footprint to an impressive 90% recyclable content, with a substantial 80% comprising paperboard. This sustainable packaging, developed in collaboration with Portuguese food products company Lactogal, incorporates a paper-based barrier and has achieved Carbon Neutral certification from the Carbon Trust. This innovative packaging enables milk processors to adopt an environmentally friendly solution that can be distributed under ambient conditions.
USA – Huhtamaki, renowned for molded fiber packaging technology, has introduced a new line of fiberbased egg cartons crafted entirely from 100% recycled materials, targeting egg producers across the United States. These eco-conscious cartons offer a sustainable alternative to the prevalent foam egg packaging in the U.S. market. Designed as an environmentally friendly replacement for polystyrene foam, they provide increased branding space and are available in various colors.
Research reveals potential emissions reduction through returnable packaging UK - The Ellen MacArthur Foundation (EMF) has outlined a transformative scenario suggesting a substantial reduction in greenhouse gas emissions (GHG) by 35% to 69% for various products through a shift in packaging practices. This "system change" model proposed by EMF involves brands sharing infrastructure and packaging, resulting in around 95% of packaging being returned and reused up to 15 times. The study suggests a substantial decrease in both water and material use by 45% to 70% and 45% to 76%, respectively. The report specifies that these benefits are contingent on the scale and application, with larger-scale reuse systems potentially achieving the highest reductions in emissions and resource use. 22
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Sidel unveils innovative ultra-light pet bottle for liquid dairy drinks FRANCE – Sidel, a prominent provider of liquid packaging solutions, introduces a novel PET bottle designed to amplify the competitive edge for liquid dairy manufacturers. This miniaturized packaging, tailored for drinking and probiotic yogurts, accommodates capacities ranging from 65ml to 150ml, ideal for both ambient and cold chain processes. The bottle's versatility extends to applications in juice, nectar, soft drinks, isotonic beverages, and tea sectors. Highlighting its sustainability, Sidel’s ultra-light PET bottle champions PET as the most cost-effective plastic on the market and the sole food-grade bottle-to-bottle recycled plastic. Manufacturers transitioning from polystyrene to PET can achieve up to a 40% cost reduction, while a 20%
reduction is feasible when replacing high-density polyethylene (HDPE). FOODBUSINESSAFRICA.COM
Elopak introduces state-of-the-art filling machine ensuring exceptional hygiene standards a superior HEPA air management system, a result of extensive research and testing. Incorporating HEPA filter systems and stainless steel components, alongside a dual-step heating and sealing process, the machine upholds the highest levels of hygiene, contributing significantly to the prolonged shelf life of fresh products. Moreover, the machine’s selfcleaning and sterilization features facilitate efficient transitions between products, effectively reducing food waste. Versatile in its operations, the equipment accommodates filling gable top cartons ranging from 250ml up to 1.136ml in Pure-Pak carton formats.
NORWAY – Elopak presents a cuttingedge filling machine guaranteeing exceptional hygiene standards, extending the shelf life of fresh products up to 60 days.
Designed to fill cartons with both fresh and extended shelf-life dairy products, along with juices, water, and plant-based drinks (with or without particles), the machine boasts
Compostable bioplastic coffee capsules outperform aluminum and virgin plastic
Ishida Europe introduces advanced in-line seal tester for dry product packs
NETHERLANDS - A study conducted by Wageningen University & Research has determined that compostable bioplastic coffee capsules showcase superior sustainability compared to both aluminum and virgin plastic capsules. The findings indicate that compostable plastic capsules achieve an MCI (Material Circularity Indicator) of 100% when composted, highlighting their fully circular nature. Alternatively, aluminum capsules serve as a viable second choice when collected separately and recycled, with the coffee composted. Virgin plastic coffee capsules rank as the least sustainable option, as neither the packaging nor its content undergoes recycling. FOODBUSINESSAFRICA.COM
EUROPE – Ishida Europe has launched the Ishida TSC-AS, an inline seal tester catering to snacks and dry product packs, delivering high-precision seal integrity checks at speeds of up to 150 packs per minute. The newly introduced Ishida TSC-AS amalgamates precise leak detection with gentle bag handling, meeting the stringent quality control standards of the retail sector. Capable of measuring air pressure and fill levels in every pack directly from the bagmaker, it detects minute apertures as small as 3mm, ensuring leak-free packaging. The technology also identifies issues like incorrect inflation and double packs. Equipped with an advanced Human-Machine Interface (HMI) touch screen resembling a smartphone for effortless operation, the seal tester facilitates rapid setup, changeovers, and real-time production data. Operators are alerted to potential
issues, allowing swift action to minimize wastage and unplanned downtime. NOV/DEC 2023 | FOOD BUSINESS AFRICA
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FOOD SAFETY NEWS
Britania Allied Industries attains food safety accreditations from UNBS Safety Management. This accomplishment underscores Britania Allied Industries’ unwavering dedication to maintaining the highest standards in quality management and food safety. The certificates were formally presented to the Top Management of Britania Allied Industries Limited at their Nakawa headquarters by Ms. Mariam Nalwoga, the Principal Certification Officer representing the UNBS Ag. Executive Director. UNBS, accredited by the South African National Accreditation System (SANAS), holds global recognition to provide International Organization for Standardization (ISO) Management Systems Certification.
UGANDA – Britania Allied Industries Ltd has been awarded two significant certifications by the Uganda National
Bureau of Standards (UNBS): ISO 9001:2015 for Quality Management System and ISO 22000:2018 for Food
East African community aims for unified strategy to combat aflatoxin contamination in trade
AfDB partners university of Ghana to launch grain quality grading and certification project
EAST AFRICA – The East African Community (EAC) is taking decisive steps to address disputes and trade losses resulting from aflatoxin contamination. A standardized and expedited testing method for toxins in grains and cereals is under consideration across EAC partner states. Experts are proposing the adoption of "AgraQuant Elisa Mycotoxin Test Kits" at border points, streamlining the testing process and significantly reducing trade disputes. The implementation of a uniform testing method is anticipated to alleviate trade conflicts, exemplified by the 2022 trade war triggered by high mycotoxin levels in maize between Kenya, Tanzania, and Uganda. 24
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GHANA – The African Development Bank (AfDB) and the School of Agriculture of the University of Ghana have launched a Grain Quality Grading and Certification Project aimed at improving the quality of grains and enhancing the cereal value chain development in the country. The Project, a three-year initiative would seek collaboration from the Ghana Standards Authority (GSA), the Ghana Commodities Exchange (GCX), the Ghana Grains Council (GGC), and other institutions in the grain value chain. According to News Ghana, the Korea-Africa Economic Cooperation Fund (KOAFEC) is providing financial support for the project. Experts in the field will spearhead the initiative led by Dr. Francis Kemeze (AfDB), Dr. Herbert Ainembabazi (AfDB), Dr. Toba Omotilewa (AfDB), Prof. Irene S. Egyir (UG) and Dr.
Charles Yaw Okyere (UG). Speaking at the launch of the Project, Yaw Frimpong Addo the Deputy Minister of Food and Agriculture said there was a need to establish rules, quality grades and standards, and certification in Ghana’s grain markets. This would govern and foster national and regional grain transactions and strengthen commodity exchange and food safety, says the Minister. He revealed that the research team for the project would build capacity in Ghana, through extensive outreach aimed at a wide range of stakeholders including farmers, brokers, processors, the Ministry of Food and Agriculture (MoFA), and the GCX. The government had developed various standards for some grains to promote proper grading and standardization.
FOODBUSINESSAFRICA.COM
KEPHIS receives standardized food safety testing materials from EU
KENYA - Through the Market Access Program Kenya (MARKUP),
the European Union has donated laboratory testing materials valued at Sh3 million to the Kenya Plant Health Inspectorate Services (KEPHIS). The aim is to bolster food safety and access to premium markets locally, regionally, and internationally. The Certified Reference Materials (CRMs) were handed over by Adolfo Cires, the European Union Manager for Finance and Private Sector Development in Kenya, during a brief ceremony at KEPHIS Headquarters in Nairobi. Cires emphasized that the CRMs would enhance compliance with the Global Good Agricultural Practice (Global GAP) system regarding pesticide residue levels, aligning with EU regulations.
EU enforces stricter limits on nitrites and nitrates in food additives for enhanced consumer safety EU - The European Commission has introduced new limits on the utilization of nitrites and nitrates as food additives, aiming to fortify consumer safety. These reduced limits are designed to protect against pathogenic bacteria, including Listeria, Salmonella, and Clostridia, while simultaneously minimizing exposure to nitrosamines, some of which are recognized carcinogens. The decision follows a thorough scientific assessment conducted by the European Food Safety Authority (EFSA) and has received unanimous endorsement from EU Member States earlier this year. These measures, implemented by the Commission, fall short of a complete ban on the use of nitrites and nitrates as additives, as scientific FOODBUSINESSAFRICA.COM
studies have indicated that lowering the maximum levels is a viable and effective approach.
USDA unveils comprehensive strategy to address antimicrobial resistance in agriculture US – The United States Department of Agriculture (USDA) has launched an extensive strategy to confront the escalating threat of antimicrobial resistance (AMR) in the agrifood sector. The USDA’s strategy outlines three core focus areas and ten priorities for concerted action. It emphasizes disease and pathogen transmission reduction, underscores advancements in scientific knowledge about AMR risk, and stresses improved communication and collaboration at various levels to combat the multifaceted challenges posed by AMR.
IFSAC’s 2021 report reveals primary sources of foodborne illness USA - The Interagency Food Safety Analytics Collaboration (IFSAC) has released its 2021 report, shedding light on the primary sources of Salmonella, Escherichia coli O157, and Listeria monocytogenes outbreaks in the United States. For Salmonella, the identified culprits span seven diverse food categories, including chicken, fruits, pork, seeded vegetables (such as tomatoes), other produce (such as nuts), beef, and turkey. E. coli O157 was predominantly associated with vegetable row crops (like leafy greens) and beef, accounting for over 80 percent of illnesses. L. monocytogenes, known for its severe impact, was is linked prominently with dairy, vegetable row crops, and fruits. NOV/DEC 2023 | FOOD BUSINESS AFRICA
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APPOINTMENTS Update Nespresso South Africa appoints Gabriel Nobre as new CEO
Gavin Hudson named Coca-Cola Beverages Africa Chief Operating Officer AFRICA – Coca-Cola Beverages Africa (CCBA), the largest Coca-Cola bottler in Africa, has announced the appointment of Gavin Hudson as the new Chief Operating Officer starting 1 November 2023. Gavin earlier played the role of CEO at Tongaat Hulett, South Africa’s biggest sugar company, before his resignation in February 2023. Gavin boasts a solid track record of delivering growth and effective turnarounds in highly competitive and challenging markets in; South Africa, Zimbabwe, Mozambique, Botswana, Latin America, Russia, Turkey, Iran, and CIS Countries.
SOUTH AFRICA – Nespresso South Africa has appointed Gabriel Nobre as the new chief executive officer (CEO) effective 1 June 2023. He will be based at the Nespresso South Africa Head Office in Bryanston and will report to Jean-Paul Le Roux, Head of Zone SAMA (South America Middle East and Africa region). Nobre holds a Postgraduate Degree in Business Administration and an MBA in Digital Business. He joined Nestlé Group in 2005, where he held several positions in multiple business units and corporate functions. “We are looking forward to launching innovative new coffee machines and developing new bespoke coffees to surprise and delight our customers,” he says. Nobre also sees a huge opportunity to increase the percentage of recycled capsules in South Africa, up from the current 50%, which is already 18% over the global average. 26
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Jacques Vermeulen, CEO of Coca-Cola Beverages Africa, said, “Gavin is an accomplished business executive with extensive experience in diverse and challenging markets in the alcoholic beverages and sugar industries.”
Esther Ngari takes helm at Kenya Bureau of Standards as Managing Director
KENYA – Esther Ngari has been confirmed as the substantive managing director for the Kenya Bureau of Standards (KEBS). “The cabinet secretary for Investments, Trade and Industry appoints Esther Njeri Ngari to be the chief executive officer for a period of three years with effect October 13, 2023,” reads the Gazette notice in part. Ngari has been holding the position in an acting capacity since May when the former boss at the agency Bernard Njiraini was kicked out alongside 27 others in a raft of changes affecting the management. Previously, Ngari served as the Director of Standards Development and Trade. FOODBUSINESSAFRICA.COM
Pick n Pay names Sean Summers as new CEO SOUTH AFRICA – South Africa’s third-largest grocer by revenue Pick n Pay has rehired former CEO Sean Summers to replace departing CEO Pieter Boone. Summers, who started his career at Pick n Pay in 1974, says the retailer’s latest results – reflecting the tanking of trading profit by 97.5% over the past six months – were a reality check. Back after 16 years, the veteran Pic n Pay executive is confident he can put the ailing retailer back on track. Once, Pick n Pay had a real love and a passion for people and the business, he said, and they can do it again. “Obviously, part of my remit in the company has to do with succession.
So it’s a case of stabilising the current business, getting it pointed in the right direction, and then working out who the leadership team is going to be in the next five to 15 years,” he added. FOODBUSINESSAFRICA.COM
Tiger Brands picks Tjaart Kruger to succeed Noel as CEO
Guinness Ghana appoints Felicite Nson as Managing Director
SOUTH AFRICA – Tiger brands has appointed Tjaart Kruger, former CEO of Premier Foods, as new CEO, effective November 1, 2023. Kruger succeeds Noel Doyle who will remain available to facilitate a smooth transition until March 31, 2024. Doyle’s departure comes after a period marked by the economic fallout of the COVID-19 pandemic and the legal consequences of the 2017 listeriosis epidemic that resulted in over 200 deaths. His successor Kruger has more than 30 years of leadership experience in the South African fast-moving
GHANA – Felicite Nson, a Cameroonian national, has been appointed as the new Managing Director of Guinness Ghana Breweries Plc, effective from September 28, 2023. Felicite Nson holds an MBA from ESSEC Business School in France and a degree in international marketing from the University of Hartford. She has further acuminated her skills through training at the European Institute of Business Administration (INSEAD). With over two decades of experience in the brewing industry, she has held various roles at Guinness Cameroon, including Marketing Director and Sales Director. She also served as the Managing Director of Guinness Cameroon from 2019 to 2022. Before joining Guinness Cameroon in 2014, Nson amassed her experience and expertise with major multinational companies such as McCann Erickson Cameroun, MTN Cameroon, and the Coca-Cola Company.
consumer goods sector, including previous roles at Tiger Brands. He signed a 26-month contract with the company, aiming to provide stability, accelerate strategy execution, and create value for shareholders.
NOV/DEC2023 2023| |FOOD FOODBUSINESS BUSINESSAFRICA AFRICA JAN/FEB
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NEW FOOD PRODUCT INNOVATIONS
MALBROS AFRICA Nuvita Thins Malbro Africa, one of East Africa’s leading FMCG companies, has unveiled its latest addition to the Nuvita brand family – Nuvita Thinss, a baked potato snack that promises a crunchy and savoury experience. Available in convenient 50g packs, Nuvita Thins have been introduced in five delectable flavours including Sour Cream and Herb, Simply Salted, Mediterranean Tomato, Fruit Chutney, and Barbecue.
www.malbros.co.ke
UNILEVER KENYA Royco Spices Unilever Kenya has expanded its range of dry seasonings under the Royco Spices brand line. The new line includes eleven variants, consisting of four blended and seven pure spices, such as Pilau Masala, Curry and Spice, Ginger, Garlic, Turmeric, Black Pepper, Cinnamon, Cardamom, and Paprika. In addition, Unilever has also introduced two new exclusive variants: wet and dry fry spices and Nyama Choma spices.
www.unilever.com
260 BRANDS Nutra sip Soya Juice Blend 260 Brands, a fast-growing food company in Zambia, has expanded its beverage portfolio to include Nutra sip, an innovative soya juice blend. According to the company, selected fresh fruits and soya milk are processed to create a great combination of taste and health. The new drink comes packaged in 500ml and 1-liter aseptic cartons and is available in four different flavors; Mixed Fruit, Orange, Peach, and Pineapple.
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KWV POTSTILL Brandy Renowned South African brandy producer, KWV has expanded its brandy portfolio with the launch of KWV VS (Very Special) POTSTILL Brandy. This extraordinary brandy is comprised of 100% POTSTILL Brandy that has been meticulously aged in small French Oak barrels. The KWV VS POTSTILL Brandy can be enjoyed neat, on the rocks or as the foundation for exquisite cocktails.
www.kwv.co.za
TIGER BRANDS Jungle Oat Drink range Tiger Brands, one of the biggest food producers in Africa, has launched its ready-to-drink (RTD) Jungle Oat Drink range, reportedly the first of its kind in the market. Jungle oats RTD is a plant-based-on-the-go snack that can be served as a functional breakfast or as a snack. The RTD range comes in five flavours: chocolate, toffee, original, mixed berry, and banana, with each flavour reportedly offering specific functional benefits to the consumer.
www.tigerbrands.com
UBL Uganda Waragi lemon and ginger Uganda Breweries Limited (UBL) has introduced Uganda Waraga lemon and ginger, a new limited-edition variant of its popular spirit brand Uganda Waragi. UBL said the new Uganda Waraga lemon and ginger, which has a 40% ABV, aims to bring a new bubble and flavour twist to the re-known classic, promising to create unforgettable moments for the consumers. It adds to the current Uganda Waragi flavours; Uganda Waragi Coconut flavour and Uganda Waragi Pineapple flavour.
www.ugandabreweries.com FOODBUSINESSAFRICA.COM
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KENCHIC Enabling shared prosperity through Sustainable Food Production
MY COMPANY PROFILE: KENCHIC
Known for its day-old chicks and high-quality chicken meat, Kenchic is on a transformative journey, driven by its belief that delivering high-quality products not only elevates the poultry industry, but also fosters healthier, more prosperous communities. That is why they have made it their niche to produce products to the highest possible international standards. Not only do they assure their consumers of high-quality chicks and chicken products, but they also ensure that the community around and the environment benefit from their business. We discussed its renewed sense of purpose in enabling shared prosperity through sustainable food production with the Managing Director of Kenchic, Jim Tozer. By Francis Juma & Paul Ongeto
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he Covid-19 pandemic may be in the rear-view mirror for many – but for Jim Tozer, the pandemic has changed him and the business immensely. He reflects, communicating the right message to the entire team at the company became a priority to him and his senior management team, considering the changing dynamics and ensuring that everyone stayed on course. “I went to everyone in the company - every individual affected - and told them exactly what was happening and what we needed to do, and it was amazing how they stood up to be counted. We saw productivity
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begin to rise again. We were able to come back from a bad situation and by the end of the year, things were looking good for us.” A HISTORY STEEPED IN QUALITY Over nearly four decades, Kenchic has consistently delivered on its commitment to providing high-quality day-old chicks and cost-effective, nutritious, and safe processed chicken products to customers in Kenya and the surrounding region. It's therefore not surprising that the company has over the years built an impressive customer base that includes global fast-food outlets, international hotel chains, airline food service companies, leading supermarkets among others. Some of its customers such as American multinational restaurant chain KFC, have very high quality and safety requirements and the fact that Kenchic has been able to supply to them since they set up shop in Kenya in 2011, speaks volumes about its dedication to quality and food safety. As our interview with the Managing Director began in earnest, he told us he was more than willing to grant us the opportunity to visit Kenchic’s facilities, which are located in various locations around Kenya. It’s a rare opportunity as most of the sector operates
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under secrecy, but not for Kenchic. "At Kenchic, we are passionate about producing trustworthy sustainable food. It's a story we need to tell very clearly because there's quite a lot of misconception that when you're a large producer, you are potentially producing in the wrong way," he says. DECODING KENCHIC’S FARM TO FORK MODEL With Jim’s stamp of approval, we set out to experience firsthand what it takes to produce the Kenchic premium day-old chick or that tasty and tender chicken meat that is a culinary delight enjoyed by Kenyans. The journey took us to sparsely populated areas outside the city where Kenchic has built an impressive supply chain network that includes breeder farms, a hatchery, broiler farms, and a world-class processing factory. Kenchic describes this as the ‘Farm to Fork model’, a program that aligns all aspects of the business. Philip Maina, Chief Commercial Officer of Kenchic, offers insights that prove crucial in helping us understand the inner workings of the company. “Our Farm to Fork journey starts from the breeder farms, where we obtain the eggs, and continues to the hatchery where we acquire day-old chicks. These chicks are then raised in our farms or by selected contract farmers. The chickens ultimately reach the processing plant, where they are processed into a variety of chicken meat products," he explains. FOODBUSINESSAFRICA.COM
Our first stop in the Farm to Fork journey was at one of Kenchic’s Breeder Farm. The breeder farm is where Kenchic houses the parent stocks that hatch eggs for its chicks. We observed that access to these farms is limited with strict biosecurity measures set in place including the requirement to shower several times and change into a new set of clothes before accessing the farm. Philip informs us that such measures are necessary to prevent the introduction, spread, and transmission of infectious diseases among poultry, reducing the risk of economic losses and promoting animal welfare. From the Breeder Farm, we set out to Kenchic’s state-of-the-art Hatchery. At the Hatchery, they immunize all day-old chicks against deadly common viral diseases such as Newcastle and Gumboro. The day-old chicks are either placed on Kenchic broiler farms and reared for meat or they are sold to broiler, layer, and Kenbro farmers for subsistence and commercial farming. Kenchic recently achieved a great milestone on receiving the ISO 9001:2015 certification, the first hatchery in the region to do this. This prestigious recognition showcases its unwavering commitment to exceptional practices in collecting, receiving, and processing hatching eggs, as well as its impeccable incubation monitoring, processing of chicks, and delivery to customers. About 20,000 farmers have benefited from Kenchic's day-old chicks. Out of these, 6,000
ABOVE: Kenchic has curated more than 61 different recipes showcasing different ways consumer can enjoy chicken
AT KENCHIC WE ARE PASSIONATE ABOUT PRODUCING TRUSTWORTHY SUSTAINABLE FOOD. Jim Tozer, Managing Director, Kenchic
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MY COMPANY PROFILE: KENCHIC
are active, meaning they regularly buy chicks from one of the many Kenchic poultry centers spread across the country. According to Philip, farmers can also get access to high quality feed, specialized technical and lab assistance, and even get a quick consultation with one of the company’s vets. From the hatchery, our next stop was to one of their broiler farms, where a second fully environmentally controlled farm had just been recently commissioned. This time our journey took us some 75 kilometers north of Nairobi. At this stage, showering and changing into a new set of clothes as well as other strict biosafety measures had become customary to our team, but we were impressed nonetheless at the extent the company was willing to go to ensure the health and safety of its birds. The farm was a marvel to behold, and Philip certainly couldn’t have been prouder. “These are the most modern houses built in the country,” he explains while stressing that the investment is worthwhile as “it makes operations more efficient and provides a better environment for our flocks.” Kenchic maintains a strict policy concerning the use of antibiotics, to ensure their chicken is antibiotic free. The company never uses antibiotics for preventive treatment, and they routinely carry out health checks on their flocks and products to ensure they are free from harmful pathogens. “We also adhere to our antimicrobial usage policy ensuring we only use antibiotics whenever completely necessary and only after prescription by our vets. That means we never use antibiotics to prevent infections or as feed 34
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additives. This is something that we are very proud of as it has earned us international recognition by the International Poultry Council, as one of the 18 international organizations in the world that have adopted good antimicrobial usage principles. In fact, we are the first and the only organization on the continent to receive this recognition.” Philip goes on. Kenchic slaughters its birds at maturity, adhering to global FSSC 22000 and halal requirements. Its sprawling food processing complex nestled between coffee plantations and the neighboring Mt. Kilimambogo is usually the final destination of the birds. In 2011, this facility became the first in Kenya to attain Food Safety System Certification 22000 (FSSC 22000). Kenchic was recently re-certified for the most comprehensive food safety management system standard and is recognized by the Global Food Safety Initiative. After slaughter, a joint effort between man and machine works together to transform the chicken into various products, including whole chicken and cuts, and further processed products such as sausages, burgers, smoked sausages, breaded nuggets, and strips. They are crafted with fun and memorable meal experiences for you & your family. Kenchic says it is devoted to making these nutritious and delicious options accessible to all Kenyans, ensuring a reliable source of healthy and safe protein a key nutritional requirement especially for our children to thrive. As demand for convenient food rises, Kenchic has been actively developing new products to tap into this new FOODBUSINESSAFRICA.COM
demand. The company recently introduced a breaded chicken range called Crispy Kuku and the Hungarian Choma Sausage, which, according to Philip, are quickly gaining popularity among consumers who desire tasty and convenient foods. Our team unanimously agreed that this was one of the most exciting points of the farm to fork journey as we finally had a chance to taste their different products. Everything we touched was nothing short of finger-licking good. Philip tells us the secret lies in the caliber of people that Kenchic employs and in the quality of technology it deploys in production. "Our processing plant is one of the most modern in Africa, enabling us to manufacture our products at the same standard as our international counterparts," he adds. As the finished products finally embark on their journey to retailers and thereafter to the final consumer, Philip assures us that the final meal or snack that consumers will enjoy will be just as delectable as the one we had at the factory as the deliveries are made with specially refrigerated trucks to ensure meat freshness and quality is not lost while also guaranteeing food safety. UNWAVERING COMMITMENT TOWARDS FOOD SAFETY The company’s focus on food safety and animal welfare was evident at every stage of the journey and Kenchic has the necessary certifications to prove this. Jim made us aware that the in-house FOODBUSINESSAFRICA.COM
laboratory is the only one of its kind in Kenya to be ISO 17025-certified, demonstrating to customers, regulators, and other stakeholders that it is competent to perform its testing and calibration activities. Other tests done by the lab include water analysis to ensure that the water provided to birds is safe, microbiological analysis on the feed, and rigorous tests on chicks and chicken products to ensure that they are free of pathogenic bacteria before being released to the market. Traceability is also something that Kenchic takes very seriously. “Every egg we hatch and every chicken we raise is traceable. Not just to the farm, but back two generations to what we call the grandparent breeding stock. Hence if a consumer complaint came in about one of our products on the shelves, we are able to trace its origins back to find out what inputs went into the bird, when and where along the production value chain there could have been an issue.” "We know that implementing these stringent measures has increased our production costs," Jim remarks. "However, as a responsible business, we firmly believe in not compromising the health and safety of our customers for the sake of quick profits." CHAMPIONING ANIMAL WELFARE Kenchic recognizes that poultry are sentient beings capable of experiencing pain, suffering, and distress. Ensuring their welfare is a moral obligation the company takes seriously and has embraced the Farm Animals Responsible
ABOVE: A section of Kenchic's automated line used to manufacture sausages.
KEY NUMBERS
20,000
THE NUMBER OF FARMERS THAT BENEFIT FROM KENCHIC’S DAY-OLD CHICK BUSINESS
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Minimum Standards (FARMS), which are international guidelines on farm animal welfare, to ensure its birds are raised in the most distress-free manner possible. In addition to FARMS, Jim informs us that the company provides 2 meters of usable perch space per 1000 birds across all operations which allows birds to move freely, express natural behaviors, and avoid overcrowding, which can lead to stress, aggression, and injuries. “We also provide environmental enrichment including perches and nestboxes for our breeder chicken and perches in all our in-house and contracted broiler farms to stimulate positive emotional states,” he continues. “In addition, each unit has equipment to measure and ensure
Philip Maina, Chief Commercial Officer, Kenchic.
CO, CO2, ammonia, and light are at acceptable levels which guarantee positive animal welfare.” The presence of isolation pens for isolating sick and injured birds for treatment in each of the poultry units we visited also impressed on us the extent to which Kenchic was willing to go to ensure the health of its flock. Jim tells 36
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us response in case of a health emergency is quick. “All our staff are trained to recognize signs of disease and injury and our veterinarians are on stand-by to address veterinary issues on the farm within 12 hours,” he adds. Animal welfare is not just good for the birds, it's also good for business as Jim informs us. “Healthy and wellcared-for poultry are more productive and less susceptible to diseases,” he says. “This translates into lower mortality rates, reduced medical expenses, and increased yields for our businesses.” EMPOWERING SHARED PROSPERITY As the business marks its 40th anniversary in 2024 however, Covid-19 and its aftermath has brought a dramatic change in the business and how it operates now and into the future. “The pandemic not only changed how we manage the business but also unearthed our purpose as well,” Jim discloses. The purpose was more of an evolution of an already existing mission than a complete revolution. “Once we distilled that right down, we recognized actually that we did have a purpose in the business, right from nearly 40 years back,” he continues. The purpose lay at the heart of Kenchic’s unwavering passion for empowering poultry farmers through provision of premium day-old chicks that would play a pivotal role in enhancing their livelihoods. The supply challenges associated with the pandemic, however, brought to the fore the importance of sustainable food production in guaranteeing farmer livelihoods for decades to come. The company managed to put together a new purpose to reflect better the new direction it was taking. “Our new purpose is to enable shared prosperity through sustainable food production,” an excited Jim tells us. From the excitement in his voice, we could tell this was something he was really passionate about and couldn’t wait to share with us, and the world. What does this new purpose exactly mean for Kenchic? Jim informs us that the company will henceforth be more aggressive in helping both subsistence and commercial poultry farmers produce more food sustainably so that they can share in the prosperity emanating from projected higher demand for chicken protein in the region. He continues to tell us that the company has already made several industry leading steps towards its shared prosperity goal. Kenchic has, for instance, rolled out Innovax vaccine technology which provides comprehensive, lifelong protection against Gumboro, Newcastle Disease, and Marek’s Disease in a single, 3-in-1 easy to administer dose at the hatchery. “We also have infra-red debeaking which has not only made operations easy for farmers but also reduced the pain to the birds, caused often-times by crude on-farm debeaking procedures.” All these are aimed at ensuring the farmer is set up for success right from the moment they purchase day-old FOODBUSINESSAFRICA.COM
chicks. Kenchic goes the extra mile by providing them with comprehensive training on sustainable farming practices that guarantee optimal yields. It doesn’t stop there, Kenchic sources about 60 percent of its meat chicken from contracted farmers, further strengthening its new purpose of enabling shared prosperity. Sustainable food production extends from the farms to Kenchic’s own operations where it has incorporated sustainable practices throughout the value chain to reduce its impact on the environment. Jim informs us that some of the measures the company has implemented include a switch to renewable energy sources, which currently accounts for 25% of its total energy demand. “At our processing plant and hatchery, we treat wastewater before its discharged, ensuring its safety for the environment,” he adds. BEYOND CHICKEN: EMBRACING DIVERSITY Jim elucidates that part of Kenchic’s new purpose as a sustainable food business entails a move beyond its traditional poultry business - into a fully-fledged food business operator. “Having looked at our purpose and our strategy, we did recognize that we are already in the food market, but why restrict ourselves only to poultry? We already know how to do it in one sector, why can't we buy, merge, develop, and/ or build a new business and get into the whole of the food industry? Chicken will, however, continue to remain at the heart of the business, considering that across the World, poultry production has exploded because it is a source of cheap, accessible and high-quality protein. “Poultry will remain our focus area. The opportunity lies in the fact that we can offer a broader range of goods. Poultry is still a massive growth area – only about 1.7 kilos per capita of poultry meat FOODBUSINESSAFRICA.COM
is being eaten in Kenya compared to South Africa’s 40 kilos and in many parts of the world - it can only go one way.” CHARTING A VISION TOWARDS 2030 As 2030 beckons and the new strategy unfolds, Jim is quite confident of doubling the size of the business - powered by the company’s new purpose and vision. “If we do the right things and we look at the whole growth of Kenya, the market opportunity is immense. I also believe that we must work with the government and explain to them our new purpose to ensure they understand our business and its impact. Furthermore, if we can work together around issues such as raw material supply, and an enabling environment for our sector, we could triple the business by 2030.” To tap into new business opportunities, Kenchic recently opened a new hatchery in Uganda - a four-million-dollar investment in a market where they have been supplying day-old chicks for over 30 years. Plans are in motion to expand and grow the investments in Uganda in the future and to continue supporting the existing export trade in the Democratic Republic of Congo (DRC). Jim even sees potential in new markets outside the East African community. “Ethiopia has opportunities and further south in Malawi, Mozambique as well. When these opportunities arise, we will strategically look at the possibilities of growing our footprint, ideally organically, sometimes marked by joint ventures or mergers.” As the interview came to a close, it was pretty clear the new purpose was already transforming how Kenchic was operating at present and was going to have a greater impact on which direction it takes in future. It's an observation that Jim agrees with. “Our guiding light - our Northern Star - is our purpose. Everything that we do in the company today and into the future will be driven by that purpose statement,” Jim concludes. NOV/DEC 2023 | FOOD BUSINESS AFRICA
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38 AFMASS TANZANIA EXPO REVIEW
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he recently concluded second edition of the AFMASS Tanzania Food Expo, held at the Serena Hotel in Dar es Salaam, was an outstanding success, leaving a lasting impression on attendees and exhibitors alike. This Expo affirmed its status as a premier event for the food manufacturing industry in Tanzania and Eastern Africa. The expo brought together a diverse range of participants the food manufacturing, retail and HORECA industry in Tanzania, with attendees from the commercial capital Dar es Salaam, to other important economic hubs such as Arusha, Mwanza, Iringa, Moshi, Morogoro and Dodoma to learn, network and do business at the two-day event. The event, which comprised a high-level conference and trade exhibition, brought together about 500 participants over the course of the two days, with attendees from over 15 countries - with the sole aim of facilitating the transformation of the food industry in Tanzania. The exhibitor list included world-leading companies that showcased their cutting-edge technologies and products including Buhler, GEA, Bosch, Endress+Hauser, YGT Khunshan, Atlas Copco, Epiroc, Merck and Jema Chemicals. Beyond the Expo, AFMASS Tanzania Food Expo provided a platform for business executives to explore potential opportunities across various sectors, including grains, dairy, beverages, coffee, tea, meat, fruits and vegetables and other food products. There were also discussions around investment opportunities in the hotels, restauramts and catering (HORECA) sector. Notable companies represented at the event included representatives from all the major food companies such as the Bakhresa Group, METL Group, Amsons Group, AB InBev (Tanzania Breweries Ltd), PepsiCo, NutriGroup, Motisun Group, Hill Group, Milkcom, Happy Sausages, among many others. The success of the second edition of the AFMASS Tanzania Food Expo stands as a testament to the thriving food manufacturing, retail and HORECA industry in Tanzania, where impressive economic growth, rising agricultural production, emerging formal retail and changing demographics and consumer tastes and preferences have faciliated the growth in demand for packaged food products in the country. The country has also become a significant exporter of packaged food products into Eastern and Southern African countries such as DRC, Rwanda, Burundi, Kenya, Malawi, Zambia and Uganda. The next edition of AFMASS Tanzania Food Expo is expected to be held in March 2025 in Dar es Salaam. For more information about the event please visit www.afmass. com/TZ 38
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20 TOP
FOOD COMPANIES IN AFRICA
2023
By Market Capitalisation
W
e present the inaugural ranking of Africa's top 20 food companies, based on a rigorous analysis of their market capitalization. Our team meticulously scoured data from over 1,400 businesses listed on the 24 active stock exchanges across Africa. We prioritized the most recent market capitalization figures available as of December 4, 2023, sourced directly from their home exchanges. In limited cases where this data was unavailable, we relied on trusted financial institutions like the Financial Times, Market Screener, and Reuters. The results paint a fascinating picture of Africa's burgeoning food landscape. Unsurprisingly, South Africa and Nigeria, the continent's economic powerhouses, dominate the ranking, each claiming five of the top slots. Morocco follows closely behind with four representatives, showcasing its growing influence in the food sector.
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However, the story doesn't stop there. This list extends beyond the usual suspects, with Tanzania, Kenya, Malawi, Tunisia, Zambia, and Zimbabwe each contributing a single but significant player. This diversity reflects the continent's vast industrial landscape and the entrepreneurial spirit driving its food revolution. Beyond the geographical spread, the ranking reveals interesting industry trends. We see a strong presence of established players with diverse portfolios, like BUA Foods (Nigeria),Tiger Brands (South Africa) and Innscor Africa (Zimbabwe), alongside nimble-sector focused players such as East African Breweries (Kenya) and Oceana Group (South Africa). As Africa's food sector continues to evolve, this ranking serves as a valuable snapshot of the present landscape. We invite you to delve deeper into the profiles of these top 20 companies and witness the diverse players that are shaping Africa's future as a global food powerhouse.
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4. AVI Ltd - US$1.46B South Africa
2. Cosumar - US$1.93B Morocco 1. BUA Foods - US$4.53B Nigeria BUA Foods, a subsidiary of the Nigerian diversified conglomerate BUA Group, is continent's leading food company by market capitalization. With a valuation of NGN 3.58 trillion (US$4.53 billion), BUA Foods stands tall at the top of the inaugural ranking of Africa's Top 20 Food Companies. Incorporated in 2005, BUA Foods has carved out a dominant space in the Nigerian and broader African food landscape. Leveraging its parent company's established presence in diverse sectors like cement, BUA Foods has built a strong portfolio of well-recognized brands, including BUA Sugar, BUA Flour, and BUA Pasta. Under the leadership of founder and chairman Abdul Samad Rabiu, CFR, CON, BUA Foods has delivered exceptional financial performance. In 2022 alone, the company witnessed a remarkable 25.53% year-on-year increase in revenue, reaching N418 billion (US$529 million). This growth was primarily fueled by the sugar segment, which impressively contributed 66% to the group's overall revenue.
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Casablanca Stock Exchange-listed sugar producer Cosumar secures the second spot with a market capitalization of approximately MAD 19.37 billion (US$1.93 billion). This Moroccan titan commands a dominant position in its home market, holding over 60% market share. Its reach extends beyond borders, exporting products to over 30 countries across Africa, Europe, and Asia. Cosumar's 2022 financial results were a sweet success, showcasing a 13.2% year-on-year rise in revenue to MAD 10.516 billion (US$1.018 billion). This growth cements the company's position as a major player in the regional and global sugar landscape. Under the leadership of Chief Executive Officer Hassan Mounir, Cosumar continues to refine its operations, expand its reach, and delight consumers with its diverse sugar offerings.
3. Tiger Brands - US$1.75B South Africa Johannesburg Stock Exchange-listed Tiger Brands takes secures the third position with a market capitalization of ZAR 32.54 billion (US$1.75 billion). This FMCG behemoth boasts a diverse and well-loved brand portfolio, including household names like Albany, Tastic Rice, Pasta Perfect, Jungle Oats, and D'lite. Tiger Brands flexed its muscle in 2022, recording a 10% increase in revenue to R34 billion (US$2.04 billion). This surge was fueled by robust growth in its grains and exports segments, highlighting the company's adaptability and market acumen. With Tjaart Kruger recently stepping into the CEO role, taking over from Noel Doyle, Tiger Brands is poised to continue its reign as a dominant force in Africa's FMCG landscape.
From its Durban headquarters, AVI Ltd (AVI), claims the fourth position with a market capitalization of ZAR 27.20 billion (US$1.46 billion). This Johannesburg Stock Exchange-listed powerhouse is a leader in FMCG, producing, processing, distributing, and marketing a diverse range of consumer staples. From the warmth of Five Roses tea to the refreshing burst of Freshpak juices, AVI's portfolio brims with household favorites like Trinco biscuits and snacks. These familiar names have woven themselves into the fabric of South African kitchens and beyond. 2022 saw AVI, under the leadership of CEO Mr. Simon L Crutchley, record revenues of ZAR 2.47 billion (US$132.5 billion). This success reflects the company's keen understanding of African palates and its commitment to delivering quality and convenience to every table.
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2023
5. Tanzania Breweries US$1.28B - Tanzania Backed by the global might of AB InBev, Tanzania Breweries PLC (TBL) clinches the coveted fifth position with an impressive market capitalization of Tsh 3.21 trillion (US$1.28 billion). This Dar es Salaam Stock Exchange-listed champion reigns supreme in Tanzania's alcoholic beverage landscape, claiming a dominant 70% market share, according to Statista. TBL's brewing prowess is evident in the iconic Kilimanjaro Premium Lager, the adventurous Safari Lager, and the timeless Castle Lager. These beloved brands quench the thirst of millions across Tanzania, solidifying TBL's position as the nation's go-to brewery. 2022 saw TBL raise a glass to a 12% surge in revenue, reaching a robust TZS 714.7 billion (US$308 million). This growth speaks volumes about the company's ability to adapt to evolving preferences and maintain its grip on the market. With Jose Moran as Managing Director & Director, TBL continues to ferment success, ensuring Tanzania's vibrant beer culture continues to thrive and its iconic brews find new admirers. 46
6. Nestlé Nigeria PLC US$1.15B - Nigeria Riding the global might of Nestlé S.A., Nestle Nigeria Plc claims the sixth spot with a formidable market capitalization of NGN 911 billion (US$1.15 billion). This Lagos Stock Exchange titan reported a delicious 27% rise in revenue to NGN 446.8 billion (approximately US$1.2 billion) in 2021, fueled by a hunger for its food and beverage offerings. Nestle Nigeria Plc isn't just satiating appetites; it's nourishing lives. From infant formula like Cerelac to iconic breakfast staples like Golden Morn, the company's portfolio caters to every stage of life. Popular brands like Milo and Maggi have become woven into the fabric of Nigerian kitchens, building trust and loyalty with every bite. Under the steady leadership of Mr. Wassim Elhusseini, who took the helm in September 2020, Nestle Nigeria Plc continues to innovate and adapt to meet evolving needs of Nigerian consumers.
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8. Dangote Sugar Refinery PLC - US$892M Nigeria 7. SFBT - US$982.97M Tunisia From the sun-drenched shores of Tunisia comes Société de Fabrication de Boissons de Tunisie (SFBT) SA, the continent's seventhlargest food company by market capitalization. This Tunis Stock Exchange powerhouse boasts a market value of TND 3.06 billion (US$982.97 million). Coca-Cola, Fanta, Sprite, Schweppes, and Bonaqua are just a few of the iconic brands that stream from SFBT's soft drink division. But the company's repertoire extends beyond sugary delights. It's also the master brewer behind Heineken, Amstel, and Desperados beer brands in Tunisia. Under the leadership of Managing Director Elyes Fakhfakh, SFBT continues to raise the bar. In 2022, the company uncorked a 14% rise in revenue, reaching a cool TND 1.1 billion (US$349 million). This surge was fueled by a bubbling demand for its soft drinks and water, solidifying SFBT's position as a vital player in Tunisian and African hydration.
Nigeria's Dangote Sugar Refinery Plc refines its way to the eighth spot in Africa, boasting a market cap of NGN 704.52 billion (US$892 million). This Lagos Exchange-listed giant, led by CEO Mr. Ravindra Singh Singhvi, is a sugar heavyweight, churning out a diverse range of products from granulated staples to icing sugar delights, and even catering to industrial needs. In 2022, Dangote Sugar savored an 18% rise in revenue, reaching a sweet N403 billion (approximately US$510 million). This growth spurt was fueled by strong sales across all segments, proving that Africans have an insatiable appetite for the company's sugary offerings.
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9. SBM - US$673M Morocco
10. East African Breweries PLC - US$590M - Kenya
From the sun-soaked shores of Morocco comes Societe des Boissons du Maroc SA (SBM), a crown jewel in the Castel Group's beverage empire and the ninth-largest food company in Africa. This Casablanca Stock Exchange powerhouse boasts a market capitalization of MAD 6.79 billion (US$673 million), and its foamy offerings quench the thirst of millions across the continent. SBM isn't just about international reach; it's a champion of local favorites. From the crisp Casablanca Flag Pils to the robust Beaufort, its portfolio brims with beers that have earned their place in Moroccan hearts and palates. This dedication to quality and local preferences paid off in 2022, with the company reporting a refreshing 7.90% year-on-year surge in revenue to MAD 2.91 billion (US$288 million). But 2023 brought a strategic shift. In a bold move, SBM decided to part ways with Heineken, ending its production and marketing of the Dutch giant's brands like Heineken and Desperados. With Yves-Ménager at the helm, SBM is poised to write a new chapter in its success story. Its focus on innovation, its deep understanding of Moroccan palates, and its unwavering dedication to quality position the company for continued growth.
East African Breweries (EABL) is the continent's tenth-largest food company by market capitalization. This Kenyan powerhouse, led by the trailblazing CEO Jane Karuku, quenches thirsts across seven nations – Kenya, Uganda, Tanzania, Rwanda, South Sudan, Burundi, and Mauritius – with a market value of Ksh 89.95 billion (US$590 million). EABL’s iconic brews have become woven into the fabric of East African culture. From the golden glow of Tusker Lager to the spirited Ugandan Waragi, the company's portfolio is a tapestry of regional favorites. Navigating a tough economic environment, EABL, a subsidiary of British multinational Diageo, held its own in 2022, reporting net sales of Kshs 109.6 billion (US$720 million), a testament to its resilience and adaptability. This flat performance speaks volumes about the company's ability to weather storms and remain a trusted provider of refreshment in a region where every shilling counts.
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11. Nigerian Breweries - US$481.47M - Nigeria
Nigerian Breweries Plc, a member of the Heineken Group, clinches the 11th spot in Africa's food landscape with a market capitalization of NGN 381 billion (US$481.47 billion). Established in 1946, NB has cemented itself as a household name, its iconic brands like Heineken Lager, Legend Extra Stout, Maltina, and Amstel Malta becoming synonymous with Nigerian celebrations and gatherings. Under the leadership of Managing Director and Chief Executive Officer Mr. Hans Essaadi, the company navigated an increasingly competitive market in 2022, generating a turnover of N550.6 billion (US$695.80 million). This marked a significant improvement from N437.3 billion (US$552.62 million) in 2021, showcasing NB's ability to adapt and cater to evolving consumer preferences. NB's success story lies not only in its established brand portfolio but also in its strategic focus on innovation and expansion. The company has invested heavily in local sourcing, production efficiency, and distribution networks, ensuring its iconic brews reach millions across Nigeria and beyond.
12. Oceana Group US$481.27M - South Africa Oceana Group Limited emerges as Africa's 12th most valuable food company with a market capitalization of ZAR 8.99 billion (US$481.27 million). This fishing behemoth, led by Managing Director Mr. Neville Donovan Brink, owns the entire seafood value chain, from sourcing and catching to processing, distributing, and selling. Its diverse portfolio, encompassing brands like Daybrook Fisheries, Oceana Brands, and Blue Continent Products, offers a delectable array of frozen and canned seafood, including hake, tuna, and lobster. From humble beginnings to a continental powerhouse, Oceana has satiated Africa's appetite for sustainable and delicious seafood for years. 2022 saw Oceana's operating profit from continuing operations reel in an impressive 19.8% year-on-year rise to ZAR 1.5 billion (US$80.30 million). This growth reflects the company's commitment to operational excellence, its focus on innovation, and its unwavering dedication to responsible fishing practices.
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AFRICA FOOD COMPANIES
2023
13. Illovo Sugar Malawi US$475.41M - Malawi
14. Zambia Sugar US$466.3M - Zambia
Illovo Sugar in Malawi, a subsidiary of South Africa's Illovo Sugar operating across six African nations, secures a commanding second position on the Malawi Stock Exchange. With a market capitalization of MWK 800.5 billion (US$110.85 million), this sweet giant represents a remarkable 14.6% of the entire exchange's equity market value, solidifying its position as a major economic driver in Malawi. Led by CEO Mr. Lekani Leslie Katandula, Illovo Sugar Malawi plays a pivotal role in the nation's agricultural landscape. Its diverse portfolio caters to various needs, producing, distributing, and marketing a range of sugar products including raw sugar, refined sugar, and industrial sugar. From household consumption to powering vital industries, Illovo Sugar is an essential ingredient in Malawian life. The company's 2022 performance was a testament to its adaptability and market understanding. Revenues climbed an impressive 14% year-on-year to MWK 186.642 billion (US$110.85 million), surpassing the previous year's MWK 163.259 billion (US$96 million). This growth trajectory highlights Illovo Sugar Malawi's ability to navigate challenges and deliver consistent value to stakeholders.
Zambia Sugar Plc (ZSUG:LuSE), the second sugar processor on the Lusaka Stock Exchange and the 14th largest food company in Africa, holds a significant position in both Zambia's economy and the broader African food landscape. With a market capitalization of ZMW 11.1 billion (US$466.3 million), it's a major player, contributing not just to Zambian sweetness but also to regional food security. Founded in 1964 and headquartered in Mazabuka, Zambia Sugar boasts a diverse portfolio that caters to various needs, encompassing raw, brown, and refined sugar for industrial customers, alongside specialty sugars, syrups, and molasses. Under the leadership of Country Managing Director Mr. Oswald Magwenzi, appointed in September 2021, Zambia Sugar navigated a dynamic market in 2022. The company achieved a commendable 2.4% year-on-year revenue increase to ZMW 5.111 billion (US$214.71 million), driven largely by a 5% surge in domestic sales volume. This growth showcases Zambia Sugar's ability to adapt and cater to evolving consumer preferences, ensuring its continued relevance in the Zambian market.
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15. Premier Foods US$426.65M - South Africa Premier Group Limited, a South African powerhouse with a global reach, secures the 14th spot amongst Africa's most valuable food companies. This household name, boasting a market capitalization of ZAR 7.99 billion (US$426.65 million), boasts a diverse portfolio of products ranging from fluffy loaves under the iconic Snowflake banner to sweet treats like Blue Ribbon marshmallows and Manhattan candy pops. In 2022, the company flexed its muscle, generating a remarkable 16% year-on-year revenue surge to ZAR 14.5 billion (US$775 million). This growth speaks volumes about its ability to adapt to evolving tastes and dietary needs, ensuring its offerings remain fresh and relevant for modern consumers. Under the leadership of Mr. Jacobus Johannes Gertenbach, who took the helm in March 2022, Premier is poised to continue its rise.
16. RCL Foods Ltd US$421.21M - South Africa South African food giant RCL Foods (JSE:RCL) claims its rightful place as a leading manufacturer with a market capitalization of ZAR 7.61 billion (US$421.21 million). This household name nourishing lives with over 30 iconic brands including 5 Star maize meal to Bonzo canned fish and Supreme wheat flour, 2023 saw RCL Foods rise to the occasion, raking in an impressive 17.3% year-onyear revenue surge to ZAR 37.8 billion (US$2.02 billion). This leap from ZAR 32.2 billion (US$1.72 billion) in the previous year highlights the company's ability to adapt and cater to evolving consumer preferences. CEO Mr. P. D. Cruickshank deserves credit for steering the ship through turbulent waters. Annual profits, however, took a 45% year-on-year tumble, reflecting the harsh realities of a sugar levy and persistent power cuts. This temporary setback doesn't diminish RCL Foods' position as a pillar of South Africa's food landscape. Its focus on innovation, its commitment to quality, and its deep understanding of local palates position the company for a comeback.
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17. Astral Foods US$366M - South Africa Astral Foods, South Africa's undisputed poultry king and Africa's 17th largest food business with a market cap of ZAR 6.85 billion (US$366 million), isn't just about clucking around. This vertically integrated powerhouse oversees every step of the feathered journey, from hatching chicks to processing and delivering fresh, frozen, and valueadded chicken products under popular brands like Festive, Goldi, and County Fair. 2022 saw Astral's wings spread wider, with a remarkable 21.9% year-onyear revenue surge to R19.3 billion (US$1.3 billion). However, 2023 brought unexpected turbulence. The company reported its firstever operating loss (before interest and tax) of nearly ZAR 621 million (US$33.18 million) in its 23-year history, according to CEO Mr. Christiaan Ernst Schutte. This sharp drop was attributed to two major headwinds: Load shedding and the Avian influenza outbreak. Despite these challenges, Astral Foods remains a dominant force in Africa's food landscape. Its commitment to innovation, its focus on operational efficiency, and its strong relationships with QSRs position the company for a swift recovery.
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18. Okomu Oil US$289.98M - Nigeria Okomu Oil, Nigeria's leading oil palm producer and Africa's 18th largest food company, stands tall despite choppy waters. This Lagos Stock Exchangelisted giant, with a market capitalization of NGN 228.94 billion (US$289.98 million), cultivates success on 14,000 hectares of palm oil-rich land, providing crucial ingredients for countless kitchens across the continent. But 2022 painted a contrasting picture for Okomu. On the one hand, revenue soared by an impressive 59% to NGN 59.32 billion. However, a storm brewed in the form of finance costs. These ballooned by a staggering 2,420% to NGN 1.73 billion (US$2.19 million). This surge, attributed to rising interest rates and other financial burdens, swung Okomu from a potential profit to a NGN 714 million (US$0.9 million) fourth quarter loss. Despite this setback, Okomu's resilience shone through. Its full-year profit, though reduced from the third quarter's NGN 18 billion (US$22.8 million), still landed at a respectable NGN 17 billion (US$21.53 million). This demonstrates the company's underlying strength and its ability to weather financial storms.
19. Les Eaux Minerales d'oulmes SA US$265.82B - Morocco
Les Eaux Minerales d'Oulmes SA, captained by Chairman and Co-Chief Executive Officer Mohamed Hassan Bensalah, secures its place as the 19th most capitalized food company in Africa. This Casablanca Stock Exchange champion quenches thirsts across the continent with its diverse portfolio of beverages. From the crisp purity of Sidi Ali mineral water to the bubbly joy of Oulmes sodas and the zesty kick of Bahia lemonades, Oulmes caters to every taste bud. 2022 was a year of fizzing success for Oulmes. Revenues bubbled up by an impressive 26.6%, reaching MAD 2.195 billion (US$217.79 million) compared to MAD 1.734 billion (US$172.03 million) in 2021. This growth surge speaks volumes about the company's ability to adapt to evolving preferences and market demands, ensuring its offerings remain fresh and relevant for consumers.
20. Innscor Africa - US$258.9M Zimbabwe Innscor Africa, a diversified food powerhouse headquartered in Zimbabwe, rounds off our top 20 list of Africa's food giants. This company is more than just a plateful; it's a familiar friend on every corner, from the aroma of Baker's Inn's fresh bread to the crispy satisfaction of Colcom's fried chicken. But Innscor's reach extends far beyond indulgent treats. National Foods, under its wing, is a champion of Zimbabwean staples, ensuring shelves are stocked with maize meal, flour, and rice. Irvine's, meanwhile, keeps breakfast sizzling with its sausages and bacon, while AMP Meats keeps the cold cuts coming. Listed on the Victoria Stock Exchange with a market capitalization of US$258.9 million, Innscor isn't just a familiar name; it's a financial heavyweight. In 2022, the company reported a remarkable 49% revenue surge to ZW$290.8 billion (US$803.5 million). This impressive growth was fueled by a winning combination of volume increases and strategic price adjustments, proving Innscor's ability to adapt and cater to evolving consumer needs.
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49
Beverage TECH TRENDS IN FORMULATING, PROCESSING, PACKAGING & CONSUMPTION OF BEVERAGE PRODUCTS
Premiumization's Pause: Beverage Alcohol's Stalled Ascension in the Shadow of Inflation By Paul Ongeto
O
ver recent years, the beverage alcohol industry has seen a consumer demand trend in the direction of more “premium” products, i.e products characterized by an increased focus on flavor, highquality ingredients and more appealing
packaging. Increasing societal wealth, broader options for high-
50
NOV/DEC 2023 | FOOD BUSINESS AFRICA
quality products and categories, and consumer appreciation for production and origin have been the main drivers behind this trend. However, recent economic pressures and geopolitical uncertainties have cast a shadow on this trajectory, prompting a critical question: is premiumization taking a pause?
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THE RISE AND PROMISE OF PREMIUMIZATION “Premiumization across beverage alcohol has been an ongoing trend for over 20 years, particularly among wine and spirits,” says Brandy Rand, the COO of the Americas at IWSR Drinks Market Analysis during an interview with Beverage Alcohol Insights. The desire for higher quality drinks, at premium prices, particularly thrived during the pandemic as consumers restricted from going out to their favorite restaurants and bars, resorted to spending their discretionary budgets on luxury experiences they could bring into the home, such as make-at-home cocktails, and sophisticated wines and spirits. According to IWSR, premiumization in spirits and wines was broad-based across many geographies during the height of the Covid pandemic. Globally, according to the drinks market analysis firm, premium-and-above brands (excluding baijiu) grew 6% compared to 2019. The trend gathered pace post-pandemic. Overall, a survey by IWSR revealed that 33% of Americans said they had spent US$50 or more on a bottle of alcohol in 2022, against just 24% in 2021. In addition, most drinkers enjoyed their alcohol at home and 46% of those surveyed said they are likely to treat themselves to premium options there – a factor which is particularly beneficial for wine and beer. People spending more money on better quality beverages also tended to drink less often, something that impacted volumes. Data from IWSR show that while total volumes of wine (-2%), beer (-2%) and cider (-4%) all declined in 2022, the premium-and-above segments of each grew: wine (+6%), beer (+4%) and cider (+11%). Total spirits volumes
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were up +2%, with premium+ up +13%, while RTDs showed moderate gains at less than +1% with premium+ up +38%. British alcohol drinks company Diageo saw an opportunity in premiumization early on and developed a multi-faceted approach to drive growth by catering to a shifting consumer landscape. The company acquired premium brands like Don Papa Rum and intensified its focus on super-premium segments like Tanqueray gin, Johnnie Walker, and The Singleton. This strategy paid off handsomely for the London-based company. According to its recent financial results, premium plus brands contributed 57% to net sales growth and 65% to organic sales growth in the first half of fiscal 2023. Its super-premium-plus brands aided organic net sales by 12%. CHALLENGES IN THE ERA OF INFLATION The long-running premiumisation trend in beverage alcohol however weakened significantly in the first half of 2023, as consumers felt the full impact of economic pressures and geopolitical uncertainty. For example, in H1 2023, consumption of premium-and-above spirits went into reverse vs H1 2022 in markets including Brazil, Colombia and the UK. Meanwhile, volume declines in premium-plus Cognac and Armagnac were driven by a double-digit drop in the US – due to the cost-of-living challenges. Emily Neill, COO Research at IWSR, confirms this, stating, “The growth rate of premium-and-above products weakened significantly across beer and spirits during the first half of 2023, although their share of overall category volumes broadly continued to increase,” notes Emily.
NOV/DEC 2023 | FOOD BUSINESS AFRICA
51
BEVERAGE TECH AFRICA: PREMIUMIZATION
Covid restrictions led to widespread volume decline Financial crash in 2008/9 saw a downtrade to value price bands
IWSR Drinks Market Analysis
“Economic pressures did not relent, as inflation remained high – a backdrop that was more globally widespread than during the same period last year. Geopolitical uncertainty from the war in Ukraine heightened the pressures mounting on brand owners, which passed on increased costs to consumers.” The effect of inflation is particularly pronounced in emerging markets where even slight price increases disproportionately impact households. In Kenya, for instance, a recent report by the National Campaign Against Alcohol and Drug Abuse (Nacada) cited by the Daily Nation revealed that consumers are increasingly trading down premium alcohol brands for cheaper ones and in the extreme cases traditional brews due to a high cost of living that is greatly constraining their budgets. Diageo is already feeling the heat of depremiumisation of beverage alcohol. The Guinness to Johnnie Walker drinks maker recently issued a profit warning as a result of cashstrapped customers in Latin America and the Caribbean consuming less alcohol and seeking cheaper brands. A GLIMMER OF HOPE Despite the overall downturn, there are glimmers of hope for premiumization's 52
NOV/DEC 2023 | FOOD BUSINESS AFRICA
future. A historical analysis reveals that premium-plus products have shown resilience during past economic crises, such as the 2008-09 financial crash. During this period, consumers traded down to value-priced products, but premium-plus options proved surprisingly resilient. IWSR predicts a similar scenario
playing out in the current economic climate. Emily Neill even points out evidence of premiumization in H1 2023, particularly in spirits and beer. She suggests that beer might be one of the few gainers during this period, as consumers trade down from other categories. “Beer is generally more affordable, including premium variants,” she says. As premiumization decelerates, beverage alcohol makers need to analyze its evolution across different categories and regions. "Despite overall category declines, pockets of premiumisation still exist in many markets," says Neill. One of these markets is China where premium-and-above spirits volumes rose by +2% in H1 2023 versus H1 2022, or by +7% if national spirits are excluded – a return to prepandemic levels. Other hotspots in the region, according to IWSR, include India, the Philippines and Thailand. How will the global alcohol industry fare amid these latest threats to its prosperity? IWSR says that as a discretionary purchase, it is likely to lose some volume as less well-off consumers rein in spending. The drink market analysis is however optimistic of a rebound. “While volatility may persist in the short term, the longerterm picture is one of stability,” it says. FOODBUSINESSAFRICA.COM
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Report
Uganda's Coffee Ambitions: Brewing a Path to 20 Million Bags by 2030 By Vincent Moranga
U
ganda's position along the equator offers favorable weather and fertile soils that support agriculture. One of Uganda's shining stars is its renowned product: Coffee, often celebrated as "the sweet aroma from the source of the Nile." Coffee production in Uganda is mostly grown by smallholder farmers on rain-fed plots less than an acre in
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size. Intercropping is widely adopted by Uganda farmers to protect against shocks when one crop does not perform well. Presently, coffee contributes nearly a third of the country’s export earnings. According to the USDA, coffee exports were 6.3 million 60-kg bags valued at US$862 million, which accounted for about 22% of all export earnings in the 2021/22 financial year, pointing to the FOODBUSINESSAFRICA.COM
crucial role the sector plays in the economy. Fast forward to 2023, data from the Uganda Coffee Development Authority (UCDA) show that the East African country contributed a substantial US$78.96 million (UGX 298.2 billion) to the country’s revenue in the month of October. The total coffee exports for the month surpassed 470,080 60 kg bags, comprising 410,113 bags of Robusta valued at US$66.87 million (UGX 252.56 billion) and 59,967 bags of Arabica valued at US$12.10 million (UGX 45.7 billion). From this date, one can tell Arabica is not the dominant coffee variety in Uganda even though it commands a higher price on the market. The reason is that growing conditions in Uganda limit farmers’ production of Arabica coffee but favor Robusta. While coffee holds a significant place in the lives of Ugandans, much remains unexplored regarding how it sustains their traditions, culture, and livelihoods. The country however has a bold plan to raise production to 20 million bags by 2030. The roadmap was launched in 2017 and almost 5 years later, Uganda has been able to substantially increase its production from 4.7 million bags at the time to over 6 million at present. ROADMAP TO 20 MILLION BAGS BY 2030 Work towards the ambitious roadmap gathered pace in 2019 when the country was finally able to put together a detailed budgeted work plan. This would serve as a guiding star for the country as it navigates its course to raising production to 20 million bags, a feat if achieved today would propel Uganda from seventh to third largest coffee producer in the world. Perhaps the most important reason why the country embarked on this endeavor is evidence that achieving the goal would triple the income of 1.2 million smallholder coffee farmers in the country whose population at the time would have expanded to 69 million. FOODBUSINESSAFRICA.COM
The work plan determined that doubling coffee production by smallholders to around 9 million bags is feasible in 5 years. This goal entails executing a rehabilitation
and renovation (R&R) program that upgrades about 400 thousand smallholder coffee farms, or about one-quarter of the total number of coffee farms in Uganda.
Coffee growing regions in Uganda
SOURCE: Harvest Money
SOURCE: Harvest Money NOV/DEC 2023 | FOOD BUSINESS AFRICA
55
INDUSTRY REPORT: COFFEE IN UGANDA
SOURCE: Uganda Coffee Development Authority (UCDA)
The total cost of this process would be around US$170 million, according to the work plan. If successful, it would increase Uganda’s export value by US$450 million per year by 2025. During the session, it was also shown that an effective R&R program would greatly enhance the coffee infrastructure, input, and service delivery, making it possible to double production again to 20 million bags by 2030. The potential for this quick increase in production, according to the work plan, lies in the current low production per tree: on average around 500 grams of clean coffee, and for lowinput-output farmers around 200300 grams per tree. The work plan is focusing on the latter group which has the potential to double its production per tree through a set of relatively low-cost and easy R&R interventions (such as pruning, stumping, weeding and low application of fertilizer). If the R&R interventions were put 56
NOV/DEC 2023 | FOOD BUSINESS AFRICA
Percentage export share by continent
SOURCE: Uganda Coffee Development Authority (UCDA)
into practice, developers of the work plan expressed confidence that the behavioral change in this group would drive the initial doubling of coffee production.
A LEADING AFRICAN COFFEE EXPORTER WITH UNEXPLORED OPPORTUNITIES Uganda has made some significant steps towards achieving its 2030 goal. As it stands, Uganda is Africa’s leading coffee exporter and is ranked the sixth-largest producer of Robusta globally in terms of volume and third globally in terms of quality, according to the Uganda Coffee Development Authority (UCDA). USDA forecasts that Uganda’s coffee production will increase by 4 percent to 6.85 million 60-kilogram bags in marketing year (MY) 2023/24 due to good rainfall. The maturation of new highyielding Robusta seedlings planted in 2019, just when the 2030 work plan was gathering momentum, is also reported to have contributed to this growth in production. As part of the coffee roadmap, Uganda’s government has provided farmers with high-quality seedling varieties and extension services FOODBUSINESSAFRICA.COM
since 2017. As a result, Uganda’s area planted increased dramatically as non-traditional areas began to grow Robusta. USDA estimates acreage dedicated to coffee increased from 450,000 hectares in MY 2016/17 to 560,000 hectares in MY 2019/20. USDA however observes that as government support gradually dries up due to financial constraints, some farming cooperatives and millers have begun to provide support for new coffee acreage, albeit at a smaller scale than the government’s pre-COVID efforts. As a result, the US agricultural agency estimates that Uganda’s MY 2023/24 area planted will increase slightly from 565,000 to 570,000 hectares. Higher production has increased exportable supplies. During the 2023/24 market year, exports from the Pearl of Africa are anticipated to increase 4 percent year-on-year to 6.52 million bags. According to the UCDA, Uganda’s top export destinations include Italy, Sudan, Germany, India, the United States, and Morocco. According to the March 2023 UCDA report, Uganda accounted for 21% of African coffee exports, while Sudan consumed 17.66% and Morocco consumed 1.39%. Locally, some of the exporting companies of Ugandan coffee are UGACOF (U) Ltd, Ideal Quality Ltd, Olam Uganda Ltd, Kyalanyi Coffee, Touton Uganda, KUWACOM (U) Ltd, JBER Coffee Ltd, and Ibero Coffee. RIDING THE WAVE OF GLOBAL COFFEE GROWTH Uganda's focus on higher coffee production bet on an upward trend in global consumption of the beverage as local demand remains insignificant. Likely the market is
EXPORTING COMPANY
POSITION HELD IN JUNE
Total
forecast to continue expanding throughout the coffee roadmap period. According to Coherent Market Insights, the global coffee market was valued at US$127 billion in 2022 and is predicted to witness a CAGR of 4.72% from 2023 to 2030. Coffee consumption worldwide is also rising by 2.0–2.5% annually, according to S&P Global Commodity Insights. Europe is a leading destination for Uganda's coffee, accounting for 64% of Uganda's coffee exports. Italy has the largest market share (34.57%), followed by Germany (13.11%). Germany imported 48,879 60-kg bags of coffee from Uganda in December 2022, according to the UCDA. In Europe, the coffee pods and capsules market is the largest, and its market size is anticipated to grow from US$26.80 billion in 2023 to US$37.43 billion by 2028, at a CAGR of 6.91%, as most people prefer instant non-alcoholic drinks, according to Mordor Intelligence. The growth is attributed to coffee being considered a healthy option and offering drinks containing properties perceived as better and healthier. With more people drinking coffee, demand is certainly expected to rise in this region further creating more opportunities for Ugandan coffee. In March 2023, the government of Uganda acquired a South Korean quality control export through an agreement with the Korean Institute for Advancement of Technology to help Uganda exports meet South Korean import requirements. This collaboration may facilitate future exports to the lucrative South Korean market further increasing the revenue that the country earns from coffee exports.
QUANTITY (Bags)
PERCENTAGE MARKET SHARE
Robusta
Arabica
Total
586,871
58,961
645,832
Individual
Cumulative 100
Ugacof (U) Ltd
1
81,294
11,406
92,700
14.35
14.35
Olam Uganda Ltd
3
49,937
10,350
60,287
9.33
23.69
Ideal Quality Commodities Ltd
3
49,890
382
50,272
7.78
31.47
Louis Dreyfus Company (U) Ltd
4
48,409
320
48,729
7.55
39.02
Kyagalanyi Coffee Ltd
5
30,377
15,566
45,943
7.11
46.13
Touton Uganda Limited
6
38,098
6,470
44,568
6.90
53.03
Kawacom (U) Ltd
7
37,225
3,680
40,905
6.33
59.37
Jber Coffee Ltd
8
28,000
28,000
4.34
63.70
Ibero (U) Ltd
9
23,579
27,590
4.27
67.97
Besmark Coffee Company Limited
14
23,249
23,249
3.60
71.57
4,011
SOURCE: Uganda Coffee Development Authority (UCDA) FOODBUSINESSAFRICA.COM
NOV/DEC 2023 | FOOD BUSINESS AFRICA
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INDUSTRY REPORT: COFFEE IN UGANDA
58
brand globally and attracting premium prices. ETHIOPIA'S COFFEE CULTURE AND VALUE ADDITION: A LESSON FOR UGANDA According to the USDA, Africa's largest coffee producer is forecast to produce 8.35 million 60-kg bags of coffee for 2023/24. During this period, exports are expected to reach 4.83 million 60-kg bags, while the rest is consumed locally. The coffee industry remains the driving force of the country's economy, socio-cultural life, and spiritual life, with about 25 percent of the country's population depending on the coffee value chain directly or indirectly. One critical lesson Uganda should learn from this titan lies deep in its culture. Ethiopia consumes almost half of its coffee as the beverage forms an essential component of Ethiopian culture and society. This gives it some of cushion should volatility in its traditional markets greatly limit its ability to sell its coffee outside its borders. The same cannot be said for Uganda which consumes less than 5 percent of its total annual production. To support the domestic coffee campaign, the Uganda Coffee Development Authority (UCDA) has partnered with universities by providing espresso machines and grinders to promote coffee consumption and create avenues for skill development among youth. UCDA also engages the youth with coffee clubs in training on coffee agronomy, brewing skills, and quality control in the coffee value chain. Lastly, UCDA has been keen on providing espresso machines and equipment to learning institutions and government organizations to drive up coffee consumption, promote value addition, and support the ongoing coffee rehabilitation program. Coffee cafés have also proliferated in Kampala and other cities and this has started driving up consumption. Additionally, millers have begun offering coffee in small packaging sizes that are convenient and affordable for domestic buyers to meet rising demand. With these initiatives, USDA projects that domestic consumption is projected to rise to an estimated 325,000 bags in 2024, up from 300,000 in the year prior.
SOURCE: Uganda Coffee Development Authority (UCDA)
Top ten export destinations by percentage market share
ADDRESSING CHALLENGES FOR SUSTAINABLE GROWTH Uganda's coffee subsector however continues to face numerous challenges, such as pests, diseases, pooryielding varieties, and undifferentiated market demand, which it must overcome to fully unlock the potential of the industry. Pests and diseases, such as coffee wilt disease and the Black Coffee Twig Borer (BCTB), have been critical challenges for Uganda, hindering the growth of this important sub-sector. To address these challenges, farmers have been enlightened to use pest-free planting materials from UCDA-certified coffee nurseries and beetle traps developed by the National Coffee Research Institute (NaCORI) to combat the Black Coffee Twig Borer. Additionally, NaCORI has developed new high-yielding and disease-resistant Arabica varieties with support from the EU-EAC MARKUP. The new Arabica varieties are resistant to diseases such as leaf rust and coffee berry disease compared to the old varieties. Additionally, the Uganda Coffee Farmers Alliance (UCFA) has partnered with the National Coffee Research Institute (NaCORI) and the National Forestry Resources Research Institute (NaFORRI) to develop agroforestry coffee, which commands a premium price. Marketing also presents a challenge to Uganda's undifferentiated market demand. Despite the growth in exports, the majority of coffee is sold unroasted to traditional markets such as Italy, Belgium, and Sudan. Building up local capability in this area is thus necessary if Uganda is to extract more revenue from its produce. The country has 38 registered coffee roasters with some producing brands such as Omukago, Ankole Robusta Coffee, Kibinge Coffee, Elgon Pride, Great Lakes, Masaba, Savannah, Zigoti Coffee, and Star Café for both local and international markets. Under the coffee roadmap, Uganda plans to build at least two soluble coffee plants in the next five years, according to UCDA Managing Director Emmanuel Niyibigira “We are also looking at branding our coffee,” Niyibigira said noting that this would be crucial in elevating the Uganda coffee
NOV/DEC 2023 | FOOD BUSINESS AFRICA
FOODBUSINESSAFRICA.COM
Meat
BUSINESS
TRENDS IN FORMULATING, PROCESSING, PACKAGING & CONSUMPTION OF MEAT & ALTERNATIVE MEAT PRODUCTS
Egypt Beef Industry Outlook: Industry Faces Uncertain Future Amidst Rising Costs and Supply Chain Disruptions By Paul Ongeto
E
gypt's beef industry stands at a critical juncture, facing a confluence of challenges that threaten its growth trajectory and ability to meet the nation's demand for this highly valued protein source. The industry's reliance on imported feed, coupled with rising production costs and
FOODBUSINESSAFRICA.COM
a volatile global market, has placed immense pressure on Egyptian livestock producers and consumers alike. This article provides a thorough analysis of Egypt's beef industry, scrutinizing the underlying production and consumption patterns while shedding light on the obstacles hampering its growth trajectory. NOV/DEC 2023 | FOOD BUSINESS AFRICA
59
MEAT BUSINESS AFRICA: EGYPT BEEF INDUSTRY OUTLOOK
HIGH PRODUCTION COSTS SQUEEZING PRODUCERS Egypt's livestock industry is heavily reliant on imported feed, with approximately 65% of its domestic feed requirements sourced from abroad. This dependence on imported feed renders Egyptian livestock producers highly susceptible to international price fluctuations, as evidenced by the current market situation. The economic fallout from Russia's invasion of Ukraine, coupled with broader global economic challenges, has triggered a surge in international feed prices, including for essential feed grains like corn. USDA data reveals that over the past year, the price of corn has skyrocketed from 8,000 Egyptian Pounds (EGP)/ MT (US$259) to a staggering 19,000 EGP/MT (US$615). The situation has been further exacerbated by a lack of foreign currency, leading to unanticipated demurrage expenses and storage complications. In the face of these challenges, only integrated livestock operations, encompassing grain production to finished products, have been able to withstand the feed shortages and high prices. Many smaller and medium-sized operations have been forced to reduce their herd sizes, resulting in record-high slaughter rates. Consequently, the USDA forecasts a 4% decline in Egypt's marketing year ending herd stock, reaching 7.8 million head. CURRENCY CRUNCH, SUPPLY CHAIN DISRUPTIONS HAMPER IMPORTS Egypt's domestic beef production is estimated to rise to 440,000MT in 2024 due to record high slaughter rates. This, however, falls short of meeting the country's demand, necessitating imports to bridge the gap. Sudan and Brazil were Egypt's primary foreign suppliers until the Sudanese conflict disrupted trade. In Sudan's absence, India has emerged as a key source of beef, particularly water buffalo 60
NOV/DEC 2023 | FOOD BUSINESS AFRICA
meat. However, Brazil's supply has been dwindling since 2020. Brazil exported 63,500 head of cattle in 2020 compared to 94,602 head the previous year. In the first half of 2023, Brazil shipped a mere 18,000 head. This decline stems from China's growing appetite for frozen Brazilian beef and value-added meat cuts. With traditional import markets drying up, the Egyptian government is seeking alternative sources of live cattle in Europe (Spain, Germany, Hungary) and Latin America (Colombia, Uruguay). Additionally, Egypt is reportedly exploring beef procurement from Djibouti, Somalia, and Chad. However, no successful purchases from these countries have been announced. Despite population growth and an influx of refugees, Egyptian beef consumption is projected to decline in 2024 due to reduced purchasing power and high inflation. This is stifling growth and limiting imports. The USDA forecasts Egypt's total beef imports in 2024 to reach 160,000 metric tons (MT), a 35% decrease from 2023's 245,000 MT. Economic constraints have also taken a toll on businesses, with several private sector importers exiting the market, as reported by the USDA. Government ministries, including the Ministry of Supply and Internal Trade, the Ministry of Agriculture and Land Reclamation, and the Ministry of Defense, remain Egypt's largest importers of live cattle and frozen beef and varietal meats. While these ministries strive to control prices and lower import costs, their efforts have not yielded complete success. CONSUMERS BEAR THE BRUNT OF RISING COSTS In Egypt, beef consumption is shaped by cultural preferences and economic realities. Freshly slaughtered beef holds a strong preference over frozen beef, driven by cultural FOODBUSINESSAFRICA.COM
norms and perceived quality. Consumers source their beef from a variety of channels, including locally produced fresh beef, imported feeder cattle, imported cattle for immediate slaughter, frozen water buffalo meat from India, and frozen beef. For budget-conscious households, beef liver offers a palatable and affordable alternative to more expensive cuts of beef. The rising production costs and currency-related challenges have inevitably trickled down to consumers, leading to a significant increase in beef prices across the country. The average retail price for beef in Egypt has more than doubled in the past year, placing a strain on household budgets and impacting consumer purchasing decisions. According to the USDA, subsidized meat prices reached EGP 260/kilogram (US$8) in 2023, compared to EGP 85.00/kilogram ($3) in 2022. Beef liver prices have also witnessed substantial increases, with the average domestic retail price reaching EGP 400/kilogram ($13) this year, compared to EGP 160/kilogram ($5) in 2022. Sales by the Holding Company for Food Industries (HCFI), a subsidiary of the Ministry of Supply and Internal Trade (MOSIT), are averaging EGP 300/kilogram ($10). As a result of these challenges, Egyptian beef consumption is projected to decline by 6 percent in 2024 compared to 2023 estimates. This contraction in demand reflects the reduced purchasing power of consumers and the heightened cost of beef, forcing many to seek alternative protein sources or reduce their overall meat consumption. HALAL CERTIFICATION UPDATES AND IMPACT ON BEEF TRADE In the predominantly Muslim country of Egypt, halal certifications play a crucial role in animal protein trade. A significant development in this regard occurred on January 5, 2020, when the Egyptian government issued Prime
FOODBUSINESSAFRICA.COM
Ministerial Decree No. 35/2020. This decree established a new state entity, a joint-stock company, formed by the Ministries of Islamic Affairs, Agriculture and Land Reclamation, and the General Organization for Export and Import Control (an agency of the Ministry of Trade and Industry). Under this new arrangement, the joint-stock company ISEGHALAL has become the official Egyptian authority responsible for granting halal label certification for foreign products destined for the Arab Republic of Egypt. For U.S. meat producers, the successful completion of food safety and halal audits by officials from the General Organization of Veterinary Service (GOVS) - Ministry of Agriculture and Land Reclamation signifies that all U.S. beef establishments under USDA Food Safety Inspection Service supervision are now eligible to export to Egypt, provided they adhere to halal guidelines. However, it is important to note that halal certification fees have increased substantially under the new system. Previously, halal certifiers charged between U$10.00 and U$20.00 per metric ton for certification. This fee has now jumped to US$0.10 per pound, equivalent to U$220.00/MT (EGP 3,516.00/MT). These higher halal certification fees have, in turn, led to an increase in beef prices for Egyptian consumers. THE ROAD AHEAD: A CALL FOR RESILIENCE AND INNOVATION The future of Egypt's beef industry hinges on its ability to adapt to the changing landscape and overcome the challenges that lie ahead. By addressing the industry's current challenges and embracing innovative solutions, Egypt can safeguard its beef production capabilities, ensure a stable supply of this essential protein source, and support the livelihoods of those involved in the sector.
NOV/DEC 2023 | FOOD BUSINESS AFRICA
61
Active Ageing: Formulating foods with the adult population in mind By Mary Wanjira
A
ctive Ageing is defined by the World Health Organization (WHO) as the process of optimizing opportunities for health, participation, and security to enhance quality of life as people age. This concept has gained more prominence today as the world population steadily ages. As of today, there are approximately 1.04 billion people aged 60 and above in the world, representing 12.8% of the global population, according to data from the World Bank. This number is expected to 62
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continue growing rapidly in the coming decades, reaching an estimated 2.1 billion by 2050. As more people age, the focus for many people today is not "how old can I live to be?" Instead, the most important question has become: "Will I be able to do the things I want to do when I am older? This desire to live more active and fulfilling lives in old age has elevated the role of nutrition in adult populations. According to a recent study, 64% of seniors make a greater effort than before to have a healthier diet, and 42% rely on diets to relieve their main ailments. FOODBUSINESSAFRICA.COM
Demand for healthier diets has led to rapid growth in the adult nutrition market. According to Coherent Market Insights data, the global elderly nutrition market size was valued at US$23.6 billion in 2022 and is expected to witness a CAGR of 6.7% over the forecast period (2022 – 2030). We look at how food manufacturers can better formulate their products to align with the needs of the adult population, currently the fastest-growing population segment in the world.
FORMULATING FOR MUSCLE MASS Retaining muscle mass is key for active ageing because it allows us to do the day-to-day activities we want to do, as well as protects us from falls and the associated injuries that can result. Our ability to activate muscle growth and repair, however, decreases with age. This helps explain why muscle mass gradually starts to decrease as we get older. According to Kerry Health and Nutrition Insights, after the age of 50, approximately 1% of muscle mass is lost annually, leading to a gradual loss in strength and ability to perform physical activities. To counteract age-related muscle loss, seniors must increase the
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consumption of proteins by 25% to 50%, according to the European Society for Clinical Nutrition and Metabolism- and they know this. A report by the National Library of Medicine —Relevance of Gastrointestinal Mechanisms- stated that nutritional supplements, including pure-protein or protein-enriched drinks, are increasingly used by older people to maintain body weight and nutrition, and specifically to prevent
or treat loss of muscle function, sarcopenia, and frailty. Formulating high-protein food thus presents a great opportunity for manufacturers seeking to tap into this fast-growing market. In this regard, adding protein-dense foods such as nuts helps strengthen the protein profile of a formulation, helping the elderly address that need and thereby maintain greater autonomy and independence. Research has also shown that leucine appears to be the most potent essential amino acids (EAAs) "in activating anabolic signalling," and its incorporation into adult foods could be beneficial in preventing muscle loss. Plant-based protein sources are also increasingly becoming popular with as many as 60% of consumers in a Kerry study stating that they consider plant protein to be more nutritious, sustainable, and better quality than animal protein in addition to associating it with a stronger immunity to support healthy ageing.
FORMULATING FOR COGNITIVE FUNCTION Just like muscles, cognitive function degenerates with age, impacting a person's ability to think, learn, and
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remember. Carotenoids lutein and zeaxanthin are among the nutritional ingredients demonstrated to help combat agerelated cognitive decline. A study Published in the Journal of the International Neuropsychological Society concluded that Lutein and zeaxanthin supplementation appears to benefit neurocognitive function by enhancing cerebral perfusion, even if consumed for a discrete period of time in late life. HP Ingredients recently launched a kesum extract (Persicaria minor or Polygonum minus), as part of an herbal blend branded Quantum IQ, for adults ranging from 35 to 65
boosters. Ashwagandha has been particularly popular and has become a star ingredient in many new products including teas, yoghurt, granola bars, and even chocolate. Grand View Research notes that this is a market worth exploring as consumers are increasingly developing an appetite for functional foods and beverages that improve their cognitive function. According to the market research firm, the global brain health functional food and beverage market size was valued at US$18.10 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 10.5% from 2023 to 2030.
TO COUNTERACT AGE-RELATED MUSCLE LOSS, SENIORS MUST INCREASE THE CONSUMPTION OF PROTEINS BY 25% TO 50%, ACCORDING TO THE EUROPEAN SOCIETY FOR CLINICAL NUTRITION AND METABOLISM
FORMULATING FOR HEALTHY HEARTS About 80% of adults aged 65 and older have at least one risk factor for cardiovascular diseases, and about half have two or more risk factors, according to research published by the National Library of Medicine. It's no wonder why many adults are concerned about their heart health even before they reach this age. "A widespread priority for today's active seniors and the generation following them (middle-agers) is cardiovascular wellness," says Kate Quackenbush, director of communications for vitamin K2 supplier NattoPharma USA Inc. Founded by Dr. Elizabeth Klodas, a cardiologist, Step One Foods is one such company formulating foods with the heart in mind. The company uses oat bran, chia and flax seeds, dried fruits and nuts to provide fibre, antioxidants and omega-3 fatty acids in the formulation. The whole food ingredients are combined and then fortified with plant sterols. All Step One Foods — bars, pancake mix, sprinkles and smoothie mix — are clinically formulated to block cholesterol
years old. Company CEO Annie Eng says past studies have shown kesum's benefits for executive functioning, reaction time, and working memory. Nootropics such as ashwagandha, citicoline and green tea extract are also becoming popular as cognitive function
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absorption and reabsorption in the digestive system, actively reducing the amount of cholesterol in the bloodstream. "These foods are properly dosed," Dr. Klodas said. "A person should have two servings, spread throughout the day, to be most effective. In 30 days, they should experience a measurable response." NattoPharma USA Inc. takes heart health a step further with its Vitamin K2 supplements which have been proven to show not only cessation but, remarkably, regression in arterial stiffness, meaning that they make the arteries of adult consumers more flexible. Quackenbush calls these results "truly antiaging."
FORMULATING FOR THE GUT The ability to maximize nutrient absorption declines with age. A new study from MDVIP and Ipsos finds twothirds of adults experience recurrent digestive symptoms like gas, bloating and abdominal pain. This is why digestive health is also a leading purchase driver among adult populations. Over half (51%) of US adults are currently using or are interested in using foods that aid digestion, according to the Ipsos study. When it comes to digestive health, probiotics are the name of the game. According to a report by Innova, new-product launches centred specifically on probiotics grew 10%, and new product launches focused on prebiotics grew 16% during the past five years. Consumer love for probiotics has some solid backing. A study published by Frontiers in Pharmacology recently found that generalized probiotic intake could result in 2.2 million fewer antibiotic prescriptions, and 54 million fewer sick days annually, and avoid US$919 million in annual productivity losses. While dairy and yoghurt products still lead in gut health claims, other categories are gaining new ground. From bars to cereal to chips, manufacturers are formulating greattasting products that will also promote FOODBUSINESSAFRICA.COM
good gut health. A good example is the Effi Sweet Heat Probiotic Chickpea Granola which is described
KEY NUMBERS
US$1.04B
NUMBER OF PEOPLE AGED 60 YEARS AND ABOVE IN 2023.
as a nutrient-dense, 100% plant-based granola made with chickpeas and probiotics that balance gut microflora and help promote digestive health.
FORMULATING TO BOOST IMMUNITY The effects of ageing on human immune health can be quite drastic, making seniors more vulnerable to attack from foreign antagonists and
take longer to recover. This makes the development of nutrition interventions to enhance immune activity in seniors equally important. DuPont Nutrition & Health released results from a meta-analysis showing how its probiotic strain Bifidobacterium animalis ssp. lactis HN019 may help enhance polymorphonuclear (PMN) cell phagocytic capacity or natural killer (NK) cell tumoricidal activity, both of which help fight infections, in older adults. Also looking at elderly immune health, ingredient supplier Kerry, announced the results of a study published last year showing that its Wellmune beta-glucan ingredient (beta 1,3/1,6 glucan derived from baker's yeast) helped shorten the duration and number of upper respiratory tract infections in older adults. Moving to the retail aisle, the Innova Market Insight report found that soft drinks had one of the fastest growth rates for immune health claims in 2021, with a 78% increase between 2020 and 2021 alone. Other popular categories NOV/DEC 2023 | FOOD BUSINESS AFRICA
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are hot drinks, sports nutrition, and dairy products. According to Innova, ingredients are at the centre of soft drink innovation, ranging from basic choices to complex blends. Among the most popular ingredients to help the normal functioning of the immune system are zinc, probiotics, prebiotics, and essential vitamins.
GETTING IT RIGHT WITH ADULT FOOD PRODUCTS When it comes to developing new products for groups of old age, manufacturers should take into consideration physiological changes that could affect product acceptability or effectiveness. First thing that every new product development specialist should know the elderly may experience a significant loss of these senses. Only sweet tastes remain intact. For this reason, they should consider the real challenge of being able to compensate for these losses in product lines aimed at the elderly. Secondly, foods that might be easily consumed by younger consumerse.g., "hard, crunchy, dry, and stringy textured foods"-are more difficult for older consumers to eat. To keep the senior population healthy and nutritionally sound, food formulators should focus on innovating more foods specifically tailored to older adults. THE DELIVERY VEHICLE IS AS IMPORTANT AS THE NUTRIENT ITSELF The adult nutrition market is dominated by supplements. Grand View Research notes that the adult segment held the largest revenue share of 46.01% in the global dietary supplements industry which was estimated to be worth US$164 billion in 2022. One Step Foods MD Klodas is however a firm believer in the view that "You cannot supplement your way to health." "The delivery vehicle is as important as the nutrient itself," she says. "It's the whole package. The totality of nutrition. Take the powerful blueberry, which is packed with vitamin 66
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C, along with many micronutrients. When consumed, the body recognizes the vitamin C in this context. But if you take a vitamin C supplement and eat a Twinkie, the body does not know what to do with the vitamin C." Formulating new foods that are bland and boring is certainly not the alternative. "Older adults don't want to change their diets because it's entrenched," says Professor Louise Dye, from the University of Leeds, a Chartered Health Psychologist whose research focuses on the effects of nutrition on cognitive function and decline, health and well-being. Dye believes that there is a real need for health by stealth to make bad food better. "We have to try and have a way of transitioning people to a healthier diet by adding things in and supplementing them while making them available in a familiar and trusted form." Emil Fazira and Yang Hu who co-authored a Euromonitor study on Five Prospects for Dietary Products – Targeting Older Adults also hold the same opinion. They say, "Foods that can provide a sense of comfort through familiar flavours and formats are a refreshing difference from more clinical supplements and foods that aim to improve health through functionality alone."
Over and above the food itself, specialists in adult nutrition observe that small type and difficult-to-open packages further serve to frustrate an older consumer. "Packaging enhancements such as resealable, better grip design and material more resilient to breakage have yet to break into the market as well but have great potential," Fazira and Hu pointed out.
FINAL WORD Worldwide, the growing senior population presents food and beverage manufacturers with increased opportunities to market products for senior health. These opportunities will only grow. Those who don't grasp this opportunity are certainly going to be the biggest losers of the new era. Dr. Craig Rose, Founder & and CEO of Seaweed & Co., is certainly not among them. Dr. Rose believes that adults are the best segment to target with functional foods and beverages. "They are thinking about their health more than they perhaps were 20 years earlier," said Dr. Rose. "They also have more disposable income and are generally more brand loyal than younger people… So I want to actively market to older people."
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SUPPLIER NEWS & INNOVATIONS
Ingredion launches clean label gelling starch for dairy and savory applications
USA – Ingredion has launched Novation Indulge 2940, a minimally processed, label-friendly ingredient that meets the demands of healthconscious consumers of dairy and alternative dairy products. According to Ingredion, Novation
Indulge 2940 is the first non-GMO functional native corn starch and clean label ingredient that provides a unique gelled texture for popular dairy and alternative dairy products. One of the products unique selling point is on the labelling as it allows
manufacturers to use the “corn starch” label, which is highly recognized and more accepted by consumers globally than gelatin, carrageenan and other common texturants. “With Novation Indulge 2940, food brands can formulate popular products – such as yogurts, puddings, processed cheese and vegan cheese – that satisfy both the increasing demand for clean labels and the growing dietary requirements of consumers, and all with an ideal texture,” said Nick Ferraro, Global Senior Strategic Marketing Manager, Clean & Simple Ingredients, Ingredion Incorporated. Other benefits of Novation Indulge 2940 include cost stabilization and improved cost-in-use thanks to the ingredient’s reliable supply.
NEW PRODUCT
Valio creates milk protein concentrate targeting ice-cream and dessert market FINLAND - Finnish dairy company Valio has unveiled launched a new milk protein concentrate (MPC), Eila MPC 65, designed to help offer solutions for segments including icecream and other desserts. The company, which has devised a wide range of solutions for the wider sector, including confectionery, believes its latest offering has significant potential market in response to heightened consumer product demand around the world. As it explained, its latest concentrate continues in the footsteps of its other protein-enriching products, bringing the taste and texture of the end product to the forefront. Lactose free for better digestive comfort, this new product can elevate protein puddings, shakes, ice creams, 68
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and drinks to the next level. Furthermore, as the business observed, in the highly competitive field of protein-enriched foods, a common issue is that the flavour and the texture of the end products can be a little bit off. This was the issue Valio sought to fix with the development of Eila MPC 65. “Valio Eila MPC 65 can be used to create a versatile selection of lactose free, high-protein products that will taste like they were made from fresh milk and have the texture of traditional snacks and treats,” says Sinikka Saikkonen, Business Development Manager at Valio. “It truly is a game changer in the field of protein-enriched products”
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TECHNOLOGY CENTER
Kerry launches manufacturing facility in Tanzania ingredients with authentic taste produced in Africa, and will help us respond faster to the needs of our customers across the continent.’’ Kerry said the manufacturing facility is its first in Tanzania and expands its capacity in East Africa.
TANZANIA - Kerry Group PLC has opened a new manufacturing facility in the East African city of Dar es Salaam, Tanzania, to support local food and beverage manufacturers. “Kerry believes in Africa, and this new facility builds on our commitment to support the food processing industry locally and unlock the huge potential in the region. This move
is another step towards realizing our vision of creating a world of sustainable nutrition,” said Edmond Scanlon, global chief executive officer of Kerry. “Our wide portfolio of taste and nutrition technologies, coupled with our global expertise and local production, will enable us to give local customers access to high-quality
KERRY SAID THIS NEW FACILITY BUILDS ON ITS COMMITMENT TO SUPPORT THE FOOD PROCESSING INDUSTRY LOCALLY.
Lyras launches the world’s largest unit for UV treatment DENMARK - As part of its expansion strategy, Lyras, a Danish company specialising in sustainable pasteurisation technology, has launched a new raslysation plant, which is the world’s largest for UV treatment of liquid foods. The new unit – The Raslysation Castor – can produce 380,000 L/h, which is tenfold the amount of the company’s top seller, The Raslysation Sirius. It has been developed in collaboration with Novozymes, a biotech group who are a market leader in industrial enzymes, and can be quickly adapted to the individual customer. Raslysation effectively inactivates bacteria and other microorganisms in liquids such as whey and juice while FOODBUSINESSAFRICA.COM
saving 60% to 80% of water and 60% to 90% of the energy that traditional pasteurization equipment requires. The taste and structure of the product is preserved as heating is
avoided. With raslysation, a dairy with a single plant from Lyras can reduce its energy consumption, in turn cutting Co2 emissions annually by approximately 850 tons. NOV/DEC 2023 | FOOD BUSINESS AFRICA
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SUPPLIER NEWS & INNOVATIONS
Givaudan partners Thimus to revolutionise product development using neuroscience SWITZERLAND - Givaudan and neuroscience company Thimus have partnered to revolutionise product development and consumer satisfaction using neuroscience. The collaboration aims to understand consumers’ experience with food to redesign products that meet expectations such as sustainability, health, and quality. Thimus has developed a readyto-use platform called TBox that provides integrated data on consumer behaviour, opening a window to their minds.
TBox provides participants with a headset that records brain signals during taste tests. Validated algorithms then process this data to measure four mental states: frontal asymmetry, engagement, cognitive workload, and relaxation. Afterward, using proprietary software and a cloud database for data analysis and retrieval, the tool delivers previously unavailable or unreliable insights on consumers’ emotions related to food. According to Givaudan, it exceeds traditional methods like focus groups or questionnaires. 70
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NEW PRODUCT
Chr. Hansen unveils two non-alcoholic brewing solutions
DENMARK - Chr. Hansen has launched two new yeast strains for non-alcoholic brewing, designed to provide manufacturers with more flavour variety. The new strains, Neer Poly and Neer Punch, join Chr. Hansen’s original strain in its portfolio – all three are distinct Pichia kluyveri yeast strains. The portfolio is designed to provide brewers with an expanded palette of flavours to customise beers according to taste preferences. Neer Poly provides a more neutral impact of the yeast, allowing malt and hops to be more prominent in the beer’s flavour profile, and is a good choice for pilsner, stout and ale beers. Neer Punch is suited for fruitforward beers, with full ester characters that add depth and complexity to the flavour, it is a good choice for IPAs, wheat and fruit beers. Sofie Saerens, senior commercial development manager at Chr. Hansen, said: “With new strains in our portfolio, brewers can now offer an even greater variety of flavours to consumers who are seeking non-alcoholic options. Our SmartBev Neer technology provides the full beer experience, creating a well-integrated body and mouthfeel that rivals traditional alcoholic beers.
Plus, our yeast technology streamlines the brewing process, enabling cost savings and sustainability benefits.” Neer Punch is suited for fruitforward beers, with full ester characters
NEER PUNCH IS SUITED FOR FRUIT FORWARD BEERS, WITH FULL ESTER CHARACTERS THAT ADD DEPTH AND COMPLEXITY TO THE FLAVOUR, IT IS A GOOD CHOICE FOR IPAS, WHEAT AND FRUIT BEERS. that add depth and complexity to the flavour, it is a good choice for IPAs, wheat and fruit beers.
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SKF launches first-ever spherical roller bearing specifically designed for food and beverage industry SWEDEN – SKF, a Swedish bearing and seal manufacturing company, has announced the development of the first spherical roller bearings specifically designed for the food and beverage industry. These bearings with food-grade grease and seals have a longer service life than SKF open spherical roller bearings and raise relevant food safety standards in the food and beverage industry. Together, these factors help the Food line bearings to lower the risk of food contamination, raise machine reliability and extend maintenance intervals.
It is made of ‘high-fatigue-resistant’ steel, enhancing dynamic loadcarrying capacity while decreasing vibration and heat generation. The spherical roller bearings extend service life by up to three times compared to open bearings. “This new spherical roller bearing with food-grade grease and integral seal from SKF helps increase both machine performance and hygiene standards. The new bearing fully complies with food industry standards and has a high load carrying capacity,” said Benjamin Geiser, Application Specific Offer Manager at SKF.
NEW PRODUCT
Novozymes launches natural enzyme for improved plant-based meat texture says: “This product launch represents a significant milestone in the plantbased meat sector. Vertera ProBite has the potential to redefine the consumer experience by improving the texture issue and, at the
DENMARK - Novozymes has unveiled a new product that promises to shake up the plant-based meat industry by improving the texture and reducing the ingredient list of plant-based meat alternatives. Vertera ProBite is a natural enzyme that can transform plant proteins into fibrous structures that mimic the mouthfeel and bite of animal meat. The product addresses the main FOODBUSINESSAFRICA.COM
consumer barriers to choosing plantbased meat products, such as texture, taste and label transparency. According to Novozymes, Vertera ProBite can help manufacturers create plant-based meat products with advanced texture and consumerfriendly labels without compromising sustainability or nutrition. Birgitte Schou Borch, head of the Plant & Food Business at Novozymes
VERTERA PROBITE ADDRESSES THE MAIN CONSUMER BARRIERS TO CHOOSING PLANTBASED MEAT PRODUCTS. same time, enabling a more consumerfriendly label. Two areas which are still hindering the widespread adoption of plant-based alternatives.” NOV/DEC 2023 | FOOD BUSINESS AFRICA
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Tetra Pak collaborates with AB Biotek to provide postbiotic solutions SWITZERLAND - Tetra Pak has announced its collaboration with AB Biotek Human Nutrition & Health to introduce “innovative postbiotic solutions”. One of the benefits that Tetra Pak and AB Biotek are exploring is how easily postbiotic powders can be introduced into the food production process at the mixing stage of ultra high temperature products like beverages, dairy products, ice cream and cheese with no need for specialised machinery, allowing producers to meet consumer demand with minimal effort. Tetra Pak is also exploring the development of an array of postbiotic food concepts, including high-protein ambient yoghurt and high-protein tea,
and has already released a postbioticenriched cheese product with Italian dairy company Inalpi. Postbiotics can usually be found in fermented foods such as kefir and kimchi. Gerald Dard, managing director for AB Biotek, said: “For the first time,
we can now unlock new opportunities for food producers to offer fortified products in categories such as tea, plant-based beverages, sports drinks and more. We are excited to embark on this exciting journey with Tetra Pak.”
NEW PRODUCT
Emerson launches easy to install compact valve position indicator
US - Emerson has announced its new TopWorx™ DVR Switchbox, an entrylevel addition to the DV Series of valve position indicators. It combines a durable resin enclosure, compact size and a patented cam design that provides 72
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water and wastewater systems, food and beverage production lines and industrial utilities a reliable valve position feedback tool. The TopWorx DVR Switchbox uses a low-profile indication to provide easy-to-read local position feedback.
This is vital real-time data that helps technicians and plant operators keep processes on target. Engineered for harsh environments, it features stainless-steel components to provide a reliable, corrosionresistant valve indication solution to keep customer processes running smoothly. Clear and highly reliable feedback of valve position helps process industry plants, platforms and pipelines operate with peak efficiency and safety without taking up additional production line footprint. The TopWorx DVR Switchbox cam design enables swift position configuration for faster, easier installation and maintenance. For many process industry applications, the TopWorx DVR provides a compact and versatile design well suited for confined spaces.
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VERSATILE PECTIN FOR NATURAL GELLING, THICKENING AND STABILISATION 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
www.apecx.ag
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