Food Business Africa Magazine Issue 62

New Product Innovations:

Coca-Cola Beverages Africa : Coca-Cola Wozzaah Zero Sugar | Bigtree Beverages : Brothers Mocktails | Checkers : Foodie! Range | Three Ships Whisky : Single Malt Cape Ruby Cask Finish | Danone Egypt : Danone Greek yogurt | Diageo : Johnnie Walker Black Ruby

Tapping the Potential in the Low and NoAlcohol Beverage Category

Naivas: The journey to 100 stores and beyond

Food Africa Business

Year 10 | Issue No.62 • ISSN2307-3535

FOUNDER & PUBLISHER

Francis Juma

SENIOR EDITOR

Catherine Odhiambo

EDITOR

Francis Watari

Nicholas Ng'ang'a

Victor Atsali

BUSINESS DEVELOPMENT DIRECTOR

Virginia Nyoro

BUSINESS DEVELOPMENT ASSOCIATE

Vivian Kebabe

HEAD OF DESIGN

Clare Ngode

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

A New Wave of Innovation

Welcome to Issue 62 of Food Business Africa Magazine, an edition brimming with insights and innovations that we are thrilled to present at this year’s AFMASS Food Expo Eastern Africa Edition. As we gather to celebrate the latest advancements in the food and beverage industry, one trend that stands out is the rising consumption of low and no-alcohol beverages. This shift is reshaping drinking habits, driven by a mix of health consciousness, lifestyle changes, and evolving consumer preferences.

The surge in low and no-alcohol consumption reflects a broader trend towards healthier living. People are increasingly mindful of their alcohol intake, seeking alternatives that fit into a balanced lifestyle. The market has responded with an impressive array of options, from craft non-alcoholic beers to sophisticated zero-proof spirits, providing choices that don’t compromise on taste or experience.

beginnings, the Johnstone family business has risen to become a powerhouse in the flavour manufacturing industry. Cranbrook excels in creating bespoke flavour solutions tailored to clients' unique needs, leveraging their technical expertise in chemical creations, emulsions, spray drying, aroma chemical synthesis, and taste modulation. Their state-ofthe-art laboratories and dynamic creative team ensure excellence from concept to execution.

In our Industry Report, we explore Ethiopia's enduring legacy in the global coffee industry. As the cradle of coffee, Ethiopia continues to contribute approximately 17% of the world's coffee supply.

Our Retail Business Africa section features Naivas Supermarket, a household name in Kenya and the largest supermarket chain in the country with over 100 stores nationwide. We examine how Naivas has achieved its impressive growth and what the future holds for this retail giant.

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.

Yet, despite the proliferation of these beverages, there remains a critical disparity in affordability. No/low alcohol drinks often come with a higher price tag than their alcoholic counterparts, creating a barrier for wider adoption, particularly among lower-income consumers. This raises an important question: Can low and no-alcohol beverages achieve their intended public health goals if they remain out of reach for many? This critical issue is explored in depth in our Beverage Tech section on Low & No-Alcohol Beverages.

Turning to the main feature of this edition, we delve into the success story of Cranbrook Flavours. From its humble

Food Safety Focus brings you the latest advances in listeria testing, showcasing how the industry has moved beyond the petri dish to more sophisticated and reliable testing methods.

Finally, as we look forward to the AFMASS Food Expo Eastern Africa, we welcome you to three days of insightful conferences, fruitful networking, and engaging experiences. We wish you a rewarding and inspiring time at the expo.

Stay informed and inspired with Food Business Africa Magazine.

Catherine Odhiambo, Lead Editor Food Business Africa

Food & Beverage West Africa 2024

Food and Beverage West Africa is a leading F&B trade show across the African continent.

The exhibition takes place in Nigeria, hosting over 250 exhibitors from across the world including many country pavilions, showcasing the wonderful flavours and tastes from across the globe.

11 - 13 Jun 2024

Landmark Centre, Lagos, Nigeria www.cbexindia.in

Hotel & Hospitality Expo Africa 2024

The Hotel & Hospitality Show forms part of a dedicated portfolio of events proudly serving the hospitality industry across the Middle East, Africa and Asia. A carefully curated range of products, equipment, services, and design is showcased for restaurant owners, managers, and operators, as well as cafes, bars, hotels, and foodservice operators.

11 - 13 Jun 2024

Sandton Convention Centre, South Africa www.thehotelshowafrica.com

ProPak Asia 2024

ProPak Asia, the regional's number one international trade event for Food, Drink & Pharmaceutical Processing & Packaging Technology.

It is a part of ProPak exhibition series running across the globe - India, Philippines, Middle East & North Africa, Vietnam, and China.

12 - 15 Jun 2024

BiTEC | Bangkok international Trade & Exhibition Centre, Bangkok, Thailand www.propakasia.com

Mzansi Food & Drink Show 2024

The Mzansi Food & Drink Show is a one-of-a-kind event that brings together food and drink enthusiasts from across Gauteng to a state-of-the-art venue in the heart of Johannesburg’s affluent Northern Suburbs.

15 - 17 Jun 2024

Kyalami International Convention Centre, Midrand, South AfricaGet www.mzansifoodanddrink.com

&

The 16th Rice & Grains Milling Tech Expo 2023 is accurately described as an International Exhibition for the Grains Milling Industry.

This event functions as a nexus between the Grains Technology sector and the Grains industry.

21 - 23 Jun 2024

Hitex Exhibition Center, Hyderabad, India mookambikaexhibitions.com

Chocolate & Bakery Expo is India's finest exhibition for the Chocolates & Bakery Sectors.

CBEX, will serve as a unique and eccentric business platform for the THREE prime sectors (Chocolates, Candies & Bakery) of the F&B industry.

28 - 30 Jun 2024

Bombay Exhibition Centre (BEC), Mumbai, India www.cbexindia.in

International Rice

Grains Tech Expo 2024

Chocolate & Bakery Expo 2024

Dar Es Salaam International Trade Fair (Ditf) 2024

The Dar es Salaam International Fair is an annual event by Tan Trade, Positioned as a leading trade promotion platform in Eastern and Central Africa DITF facilitates exhibitors to showcase goods, services, and technology, targeting new markets.

28 - July 13 2024

Dar es Salaam International Trade Fair ground, Tanzania www.tantrade.go.tz

World Congress on Conservation Agriculture 2024

The 9th World Congress on Conservation Agriculture in South Africa aims to enhance conservation agriculture adoption and scaling up through practical solutions, international best practices, and a visit to a research farm.

22 - 25 Jul 2024

Cape Town International Convention Centre, Cape Town, South Africa www.wcca9.org

Agro & Poultry Africa 2024

Agro & Poultry Africa is an International Trade Show on Agriculture, Aquaculture, Dairy, Irrigation, Livestock & Poultry, Tractors & Machinery, and Veterinary. The expo will be held in Conjunction with Grains Africa 2024, and 8th Food & Beverages Africa 2024.

08 - 10 Aug 2024

Sarit Centre, Nairobi, Kenya www.mxmexhibitions.com/ agroPoultryKenya/

Saudi Food Expo 2024

Saudi Food Expo is a 4-day exhibition, set up with the aim of helping businesses in uplifting and managing their sales with better access to a wider variety of opportunities.

The Expo provides a unique opportunity to gain first-hand knowledge, exchange ideas, and network with key players in the food industry.

12 - 15 Aug 2024

Riyadh front expo, Riyadh, Saudi Arabia www.saudifoodexpo.com

HACE Hotel Expo 2024

The HACE - Hotel Expo is Egypt’s largest and most prominent international trade fair, specializing in hotel supplies and furnishings, catering supplies, bakery, pastry, and ice cream equipment, Super Market equipment, cleaning equipment, and all the necessities for small and large businesses across the hospitality sectors.

2 – 4 Sep 2024

Egypt International Exhibitions Center, Cairo / Egypt www.hace.com.eg/

Shaping the Future of the Food Industry in Africa

September 3-5, 2024

The AFMASS Food Manufacturing Expo —the longest-running food and FMCG manufacturing, retail, and HORECA industry trade show in Africa—is finally set to be held in Uganda!

Scheduled to take place in Kampala, Uganda, from 3 -5 September 2024, this expo will bring together key food, agriculture, and hospitality stakeholders.

This 8-in-1 trade show offers an unparalleled platform to discover dairy manufacturing technologies, ingredients and commodities, milling and baking technologies, packaging solutions, and fresh produce and beverages, making it the premier event in Uganda and the Great Lakes region.

EVENT HIGHLIGHTS

Exhibitions

Technology Suppliers: Meet suppliers of equipment, ingredients, packaging, milling, and other technologies.

AFMASS Food Manufacturing Expo Uganda Edition provides a platform where suppliers and innovators meet equipment users, allowing equipment providers to understand the specific needs of manufacturers.

Food Processing and Packaging Industries: Explore

opportunities in grains and legumes, meat, fish and poultry, fresh produce, tea, coffee, cocoa, bakery, confectionery, snacks, animal feed, aquaculture, beverages, dairy products, and more.

Commercial-Scale Farmers and Agribusiness Players: Gain knowledge and meet key decision-makers in agricultural practices in Africa and beyond. The expo offers networking opportunities and deal rooms for commercial-scale farmers and agribusiness players.

Government Ministries and Agencies: Engage with representatives of various ministries and agencies for one-on-one discussions with industry players. This is a unique opportunity to present ideas and innovations and receive instant feedback from regulators.

Retail and Distributors: Connect with retailers, distributors, importers, and exporters. The expo incorporates all food and agriculture value chain players, from exporters to importers of fresh produce and other agricultural products.

Hotel, Restaurants, and Catering (HORECA): Showcase your products and learn about new industry technologies to

amplify your offerings.

Logistics and Mobility Services: Expand your reach by connecting with players in the food and consumer goods value chain to ensure products are delivered to the right place at the right time and temperature.

NGOs and Development Organizations: Find opportunities to partner with manufacturers and suppliers in Africa's food and agriculture industry. The expo covers all the needs of players in the food, beverage, and milling sectors.

Conferences

In addition to a captivating exhibition experience, the AFMASS Food Manufacturing Expo Uganda edition has set aside conference sessions for industry leaders to share insights, the latest trends, and investment opportunities.

Industry Trends and Innovations: Sessions on the latest trends and innovations in the food industry.

Policy and Regulation: Discussions on current policies and regulations affecting the food industry in Uganda and the broader East African region.

Food Safety and Quality: Workshops on ensuring food safety and maintaining high-quality standards.

WHY ATTEND?

Stay Informed: Gain insights into the latest trends, technologies, and regulations in the food industry.

Expand Your Network: Meet and connect with key food, agriculture, and hospitality players.

The AFMASS Food Manufacturing Expo Uganda Edition 2024 promises to be a landmark event for anyone involved in the food industry. It will offer unparalleled opportunities for learning, networking, and business development. Don’t miss this chance to be part of the future of food in East Africa.

Don’t Miss Out!

NEWS UPDATES

by www.FoodBusinessAfrica.com

Copia enters administration amid capitalization challenges

KENYA — The board of e-commerce firm Copia Kenya has placed the company in administration after it failed to secure investment funding recently.

This is even after raising more than US$123 million over eight funding rounds in the past few years.

The board announced the appointment of Julius Ngonga and Makenzi Muthusi from the consultancy and auditing firm KPMG to handle the restructuring and administration process.

Additionally, Copia reiterated that

it expects the team responsible for administration and local management to come up with a plan that would lower expenses and fast-track the company’s trajectory back to profitability. The funding challenges put the company’s operations and 1,060 jobs at risk.

The startup shut down its Uganda operations in late April, affecting more than 350 jobs in the country. The company also concurrently announced it was pausing its Africa expansion plans.

Jumia Nigeria launches new warehouse, logistics facility to improve supply chain

NIGERIA — E-commerce company Jumia Nigeria has launched a new integrated logistic network and warehousing facility in Isolo, Lagos.

The new facility has been described as a ‘step forward’ in the company’s commitment to improve its logistics capabilities and consolidate its supply

chain management in Nigeria.

Sunil Natraj, Jumia Nigeria’s CEO, said, “The launch of our integrated warehouse marks a key moment for Jumia Nigeria. By consolidating our operations under one roof, we are streamlining our fulfilment processes and laying the groundwork for significant

improvements in efficiency, scalability, and cost reduction.”

The launch comes barely a month after the e-commerce firm announced partnerships with finance and fintech companies Newedge (Eastbuy) and Credpal.

Saris-Congo set to complete US$25M distillery project by October

CONGO – Société Agricole de Raffinage Industriel du Sucre du Congo (Saris-Congo), a subsidiary of the French agro-industrial group Somdia, has announced plans to complete the construction of its US$25 million distillery in Nkayi by October 2024.

The new distillery will process 25,000 tonnes of molasses to produce 50 cubic meters of 96° alcohol daily, amounting to over 6 million litres of ethanol annually to meet local market demands.

Saris-Congo will source its raw materials from its own refining units, which produce approximately 70,000 tonnes of sugar annually from over 12,000 hectares of cultivated sugar cane.

In 2023, Saris Congo partnered with Africa Global Logistics Congo to export nearly 60,000 bags of bulk sugar and three containers of lump sugar to Libreville, marketing some 3,066 tonnes of sugar in Gabon.

Kenya extends duty-free sugar importation period to stabilize prices

COCOBOD to borrow US$1.5B to finance 2024/2025 cocoa purchases

GHANA – The Ghana Cocoa Board (COCOBOD) will borrow up to US$1.5 billion before the start of the new season to compensate for low cocoa output and finance cocoa purchases for the 2024/2025 season.

The low cocoa output is attributed to swollen shoot virus which wiped out up to 50% of potential cocoa harvests in the 2023/2024 season.

COCOBOD uses a syndicated loan system to buy cocoa beans from farmers. The terms of the loan are usually agreed upon with lenders before the start of the season.

However, this season’s loan totalling US$800 million has faced delays because of low cocoa output in Ghana. Due to its inability to guarantee the full loan amount, COCOBOD withdrew US$600 million and cancelled the remaining amount.

KENYA – Kenya’s National Treasury has extended the duty-free importation period for white and brown sugar from outside the Common Market for Eastern and Southern Africa (COMESA) by two months.

Initially set to close on April 6, 2024, the window will remain open until June 30, 2024. This extension will allow traders to import 250,000 tonnes of duty-free sugar to supplement local production and help reduce prices.

The extension follows a request from Agriculture Cabinet Secretary Mithika Linturi, who highlighted a projected domestic sugar deficit of 192,000

NEW PRODUCTS

tonnes for the first half of 2024 based on current local production trends.

Kenya had previously allowed traders to import 100,000 tonnes of duty-free sugar in January last year and permitted an additional 180,000 tonnes in May.

Additionally, the government is set to continue with the privatization of state-owned sugar mills in the Lake region as earlier proposed.

Agriculture PS Paul Ronoh announced that the government is proceeding with the leasing of Nzoia, Chemelil, Sony, and Muhoroni Sugar Mills in an attempt to revive them.

Eat Just launches world’s first retail cultivated chicken in Singapore

SINGAPORE – Eat Just, a Californian cultivated meat pioneer, is introducing its Good Meat chicken into the freezers of Huber’s Butchery in Singapore. This marks the first time cultivated meat products are available globally for retail purchase, following Singapore's regulatory approval in 2020.

This transition to retail is a major breakthrough for the industry, which has faced challenges in scaling production and reducing costs. The launch features Good Meat 3, the latest version of Eat Just’s chicken, which lowers costs by reducing the cultivated meat cells from 60-70% to just 3%. The rest of the product comprises wheat and soy proteins, oils, natural flavors, and seasoning.

The shredded chicken is available in Huber’s Butchery for S$7.20 (US$5.35) per 120g pack. Eat Just CEO Josh Tetrick highlights the product’s versatility and its importance in normalizing cultivated meat.

Good Meat 3 is produced at ESCO Aster, the world's first regulatorapproved contract manufacturer for cultivated meat, with the extrusion process completed at Nurasa’s Food Tech Innovation Centre.

Replacing Sugar- Naturally

Cape Food Ingredients (CFI) has launched its fourth generation advance in sugar replacement technology. CFI has worked with reformulating food and beverages to lower sugar use since 1986, giving it one of the longest track records in the application technology of sweetness.

Using its formulation expertise with flavours and natural sweeteners, CFI can now replace up to 60g of sugar per litre of final product without the use of artificial sweeteners.

The most recent advance is part of the best-selling Sugar Enhance range. Sugar Enhance IV products, when used at the recommended dosage, have a clean sweetness with sugary after-notes, giving high consumer appeal.

Sectors in which sugar reduction is well-established include beverages, dairy products including ice creams, sauces and vegan products.

Examples include the reduction of sugar in yoghurts by about 35g/litre, the reduction of sugar in carbonated soft drinks by up to 60g/litre and 100% replacement of sugar in mayonnaise and many other sauces.

In unsweetened vegan milks (soya, oat, rice, almond etc), the sweetness value of Sugar Enhance IV (Dairy) reaches even

120 times the sweetness of sugar and simultaneously greatly improves the beany or cereal notes of such products.

The sugary notes of the products also make Sugar Enhance flavours the perfect complement for the use of artificial sweeteners, another area where CFI excels in formulation work.

Sugar Enhance masks the chemical notes and off-tastes sometimes found with artificial sweeteners and so achieves the end goal of all products, consumer preference.

In terms of cost in use, Sugar Enhance flavours are significantly cheaper than using sugar.

Sugar Enhance flavours come in a variety of formats designed to improve the overall flavour of the end products. For example Sugar Enhance IV (Dairy) which brings out the rich, creamy notes of dairy products and Sugar Enhance IV (Beverages & Confectionery) which besides sweetness also boosts overall flavour impact.

Contact the CFI New Product Development and Application labs in Nairobi (for East Africa), Accra (West Africa) or Cape Town for more information about your specific products, and for samples.

Coca-Cola to invest US$175M in Kenya over five years

KENYA – Coca-Cola Beverages Africa, a subsidiary of The Coca-Cola Company, is set to invest up to US$175 million in Kenya over the next five years, contingent on achieving projected growth targets.

This investment is intended to accelerate the Coca-Cola system’s expansion in Kenya and expand the company’s capacity and capabilities in the region.

Sunil Gupta, CEO of Coca-Cola Beverages Africa said, “The Coca-Cola system has been an integral part of Kenya’s landscape for more than 75 years. Today, we are excited to announce our intention to strengthen this legacy through a substantial investment.”

The Coca-Cola system plays a significant role in the Kenyan economy, directly employing 10,000 people and indirectly supporting the livelihoods of over a million people in distribution, sales, and other roles.

Tiger Brands inaugurates peanut butter facility in South Africa

SOUTH AFRICA – Tiger Brands, one of the largest processing companies in Africa, has recently inaugurated a state-of-the-art peanut butter manufacturing plant for its renowned Black Cat brand in Krugersdorp, South Africa.

Transitioning from its previous location in Randfontein, Tiger Brands has allocated R300 million (US$ 16.16M) towards the construction of the new facility.

This investment promises expanded floor space, enhanced peanut processing capabilities, and upgraded research and development facilities aimed at refining product quality.

The facility can churn out an average of one million jars of peanut butter monthly. These products encompass the brand’s traditional peanut butter variety, consisting of 91% peanuts, sugar, salt, and stabilizers.

EU slaps Mondelez with US$366M fine for breaching competition rules

BELGIUM – The European Union has imposed a US$366 million antitrust fine on confectionary and snack maker Mondelez International for hindering the cross-border trade of snacks and confectionaries, breaking EU competition rules.

ACQUISITIONS

According to the EU, Mondelez abused its dominant market position to breach antitrust laws. After the company acknowledged the antitrust breach, the EU reduced the fine by 15%.

The EU also accused the confectioner of refusing to pay a German supplier broker between 2015 and 2019 to prevent the resale of chocolate products in countries where prices were higher.

The breaches referred in the case occurred between 2012 and 2019. In the EU, there is no statute of limitations on antitrust laws. However, this acknowledgment was mixed as Mondelez said it had already dealt with the situation.

The confectioner said the case involved isolated, historical incidents that were either corrected or stopped at advanced stages of the investigation.

Italian firm Newlat to acquire Princes Group

UK – UK-based food and drinks manufacturer Princes is set to be entirely acquired by Italian company Newlat in a deal valued at £700 million (US$893.6M).

Post-acquisition, Princes and Newlat Food will merge to form a new entity named New Princes Group.

According to multiple reports, the completion of the acquisition is subject to consultations with the Dutch Works Council of Princes and the European Works Council.

Additionally, the deal requires several customary regulatory approvals and the finalization of the group’s audited accounts.

Regarding potential job impacts,

the firm’s spokesperson indicated that specific details could not be provided at this stage since the acquisition process is still ongoing.

Kenyan government imposes stricter measures as aflatoxin compliance plummets among millers

KENYA – The Kenyan government has issued a series of directives aimed at tightening regulations and ensuring food safety standards among millers across the country after it emerged that aflatoxin compliance levels in the market have dropped.

Recent data from the Kenya Bureau of Standards (KEBS) revealed a stark

REGULATORY & POLICY

decline in aflatoxin compliance levels among millers, with figures showing a drop from 91.8 percent in October 2021 to a concerning 62.2 percent in May 2024.

Recently, the Ministry of Health issued a warning regarding Sherehe GSM maize flour, a local brand, due to

Uganda signs Animal Feeds Act 2023 into law

UGANDA – Ugandan President Yoweri Museveni has signed the Animal Feeds Act, 2023 into law to provide a legislative framework for the operationalization of the animal feed policy by regulating the production, importation, exportation, and marking of animal feeds in a bid to boost the local feed capacity.

The Bill was first tabled in parliament on 25 October 2023. In February 2024, the Ugandan parliament passed it, creating a committee to regulate the production, storage, importation, exportation, and marketing of animal feeds.

Central to the Animal Feeds Act are stringent penalties aimed at deterring malpractice within the industry. Dealers found guilty of dealing in adulterated or contaminated animal feeds face tough consequences, including fines of up to

elevated levels of aflatoxin. This alarming trend has prompted government action to address the root causes of the decline and prevent further deterioration of food safety standards.

Among the directives issued by the government is the requirement for millers to submit hazard control plans approved by their top management.

Additionally, millers will be mandated to implement internal monitoring of aflatoxin and moisture content, with records available for verification by KEBS upon request.

Quarterly production analysis reports must also be submitted to the standards regulator, and competent personnel must be employed to oversee quality control measures.

Shs5M (US$1300) or imprisonment for up to five years.

Additionally, licensing requirements for animal feed production, storage, transportation, and sale will be enforced, ensuring compliance with industry standards.

Importantly, the legislation sets out clear guidelines for the importation and exportation of animal feeds, emphasizing the need for adherence to established protocols and standards.

The Act also has procedures for anyone interested in exporting animal feeds. These individuals must apply for a sanitary certificate at least ten working days before the animal feed is exported.

Grupo Carrinho, Inalca Angola invest in US$16M new canned meat manufacturing unit

ANGOLA – Grupo Carrinho and Inalca Angola have signed an agreement in Luanda to establish a canned meat production facility with a capacity of 10,000 tons per year. This project, with an investment exceeding US$16M, aims to revitalize Inalca Angola's former ExFrescangol industrial site.

The new facility will create around 500 jobs and boost the economy of Cazenga. Initial operations will focus on producing canned beef and pork, eventually expanding to industrial meat processing. This venture aims to enhance local meat production and reduce

reliance on imported canned meat, benefiting local farmers and producers.

The meat segment is the largest in Angola’s food market revenue in 2024, which is projected at US$21.25B, with a market volume of US$4.14B.

The partnership between Inalca Group and Carrinho Group, both prominent in the agro-food sector, underscores their commitment to Angola's economic growth, sustainable development, and job creation. This collaboration is expected to play a significant role in advancing Angola’s local production capabilities.

Nestlé Nigeria adjusts asset value to US$208M

NIGERIA – Nestle Nigeria has announced the strategic revaluation of its property, plant, and equipment (PPE) to N305 billion (US$208m) aimed at increasing the company’s market valuation.

This is in response to losses and the resulting erasure of shareholders’ equity. According to the company, the revaluation is meant to represent its current financial status accurately.

The revaluation has helped enhance the company’s valuation, making it easier for Nestle Nigeria to access credit facilities. The value of the conglomerate’s assets has increased the company’s market valuation by US$144.5 million.

The initial US$60.4 million valuation did not include the conglomerate’s investments and operations expansion over the past five years, Nestle says.

In December 2023, Nestle Nigeria recorded a net loss of US$54 million, causing total liabilities to exceed total assets by US$53.4 million.

REGULATORY

India’s

INVESTMENTS

Africa Improved Foods to invest US$40M in new Ethiopian facility

ETHIOPIA – In partnership with FMO Bank and International Finance Corporation, Africa Improved Foods (AIF) plans to invest US$40M in a new manufacturing plant in Ethiopia, marking its second factory in Africa. This expansion aims to reach more people, addressing malnutrition in a country with over 100 million people.

The new facility is expected to boost Ethiopia's economy similarly to its impact in Rwanda, where the factory increased exports by 5-10% and earned over US$24M in foreign exchange. It also strengthened the agribusiness value chain by collaborating with smallholder farmers.

AIF works with the public and private sectors, distributing its products through commercial channels and relief programs like the World Food Program, UNICEF, and the Red Cross. The Ethiopian facility will serve local

and neighboring regions, focusing on producing affordable, high-quality food to combat malnutrition.

Looking ahead, AIF plans to establish five more factories in Nigeria and Zambia by 2030, aiming to impact over 10 million lives daily by 2028.

largest brewers unite to form Brewers Association of India

INDIA – India’s largest brewers, United Breweries, AB-InBev, and Carlsberg, have jointly announced the launch of the Brewers Association of India (BAI), a new industry body dedicated to the growth, innovation, moderation, and sustainability of the Indian beer market.

Headquartered in Delhi, BAI will be led by Vinod Giri, who will assume office as Director General on June 1, 2024.

BAI is being established in

collaboration with the World Brewing Alliance (WBA) that aims to facilitate knowledge exchange and best practices among brewers and stakeholders, serving as a unified voice for the global brewing industry.

By pooling their expertise, resources, and passion for brewing, the world’s most renowned beer companies aim to enhance the overall consumer experience and promote low-alcohol beverages to advocate for moderate drinking habits.

The Brewers Association of India is set to be the unified voice of the Indian beer industry.

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Pernod Ricard partners Ecospirits for global circular packaging initiative

UK – Pernod Ricard has entered a five-year global licensing agreement with Ecospirits, a circular packaging company, to distribute its brands in onpremises venues. This collaboration follows a successful pilot conducted in 2022 with the Singapore-based company.

The global rollout will feature Pernod Ricard’s Beefeater London Dry Gin, Havana Club Rum, and Absolut Vodka packaged and distributed using Ecospirits’ custom storage and dispenser system.

Ackerman Family

relinquishes

SOUTH AFRICA – Pick n Pay’s founder, the Ackerman Family, has announced it will cede control over the retailer as part of the revamp strategy aimed at cutting debt and expenses, mitigating losses, and regaining lost market share.

Sean Summers will take over as the company’s new CEO, tasked with reviving a business that has lost significant

The primary system, Ecotote, is a reusable glass container that holds 4.5 litres of liquid, encased in a branded outer shell. This innovative solution aims to significantly reduce packaging waste by providing on-premises locations with branded refillable containers.

Ecospirits’ containers are equipped with internet connectivity to report depletion levels and allow for the precise pouring of spirits according to local measurements.

control over Pick n Pay after 60 years

market share to rivals like Shoprite and Woolworths over the past ten years.

Gareth Ackerman, the outgoing CEO, is set to retire as Chairman, although he will retain an advisory and support role until the retailer releases next year’s financial reports.

The leadership change was announced barely a day after the retailer went into

administration following severe financial challenges.

The retail group’s grocery Chain reported a loss of ZAR 1.6 billion (US$91 million) in the year ended March 2024, down from ZAR 1.8 billion (US$95 million) reported in the previous year.

Heineken to pay Kenyan distributor US$12.78M for breach of contract

KENYA – The Court of Appeal in Kenya has ordered Beverage giant Heineken B.V. to pay Kes1.7 billion (US$12.78M) to its former Kenyan distributor, Maxam Limited, for breaching a distribution contract.

The Court of Appeal upheld the High Court’s 2016 decision, confirming that Heineken’s termination of the agreement was illegal.

Justices Pauline Nyamweya, Abida Ali-Aroni, and John Mativo dismissed Heineken’s appeal and affirmed the

lower court’s ruling, which found that Heineken’s notice of termination was unlawful and unprocedural. The court also ordered Heineken to bear the costs of the case.

Maxim Limited went to court in 2016 claiming unlawful termination of a distributorship agreement for Heineken products since its appointment as the exclusive distributor of Heineken products in Kenya starting from May 1, 2013.

Jagatjit Industries to venture in single malt whisky market

INDIA – Jagatjit Industries, a prominent company manufacturing IMFL (Indian Made Foreign Liquor), has announced plans to enter the competitive single malt whisky market by March 2025 to bolster its malt spirits portfolio.

Over the past 12 months, Jagatjit Industries has ramped up its malt production from 1.2 lakh litres per month to 2-3 lakh litres per month. This increased production capacity is part of the company’s preparations for the upcoming launch.

According to Roshini Sanah Jaiswal, Promoter and Executive Director of Jagatjit Industries, the company aims to

ACQUISITIONS

achieve a revenue target of Rs970 crore (US$116.87M) for the financial year 2025.

The company had initially planned to introduce a single malt whisky named Hamira in 2020, but the plan was shelved due to the Covid-19 pandemic.

Jaiswal stated, “The single malt category is being born, it’s not even cracked the surface in India. Our differentiation will come from flavors, casks, and the quality of the whiskey.”

The new single malt whisky is expected to be priced at Rs4000 (US$48.19) and above.

Browns Investments acquires Lipton Tea Estates in Kenya, Rwanda, Tanzania

KENYA – Browns Investments, a subsidiary of Sri Lanka’s LOLC Holdings, has finalized the acquisition of all tea estates owned by Lipton Teas and Infusions Kenya, Rwanda, and Tanzania, pending regulatory standards clearance.

As part of the deal in Kenya, the communities in Bomet and Kericho, where the tea estates are located, will be given a 15 percent stake in the newly acquired company.

Additionally, Browns Investments has announced the creation of a

Community Welfare Trust with an initial Kes1 billion (US$7.5 million) investment to address various challenges facing the local community.

Lipton Kenya Estates is made up of 11 plantations and eight factories distributed across the two counties of Bomet, Kericho, and Kiambu.

However, a section of the Kipsigis clan in Kericho County has contested the sale of the Tea estates. The clan claims the land on which the estates reside belongs to the clan and that they were not consulted during the sale process.

They expressed dissatisfaction with the lack of transparency, demanding details about the sale criteria and the absence of public participation.

The clan is seeking 100 percent of ownership shares, citing historical land injustices and forced eviction from their ancestral land.

BROWNS INVESTMENTS, HAS FINALIZED THE ACQUISITION OF ALL TEA ESTATES OWNED BY LIPTON TEAS AND INFUSIONS KENYA, RWANDA, AND TANZANIA

New detection method promises rapid seafood safety

CHINA – Researchers at the Shanghai Academy of Agricultural Sciences have developed an innovative pointof-care detection method for Vibrio parahaemolyticus, a bacterium responsible for numerous foodborne illnesses.

This new platform utilizes recombinant polymerase amplification (RPA) and the CRISPR/Cas12a system, combined with an immunochromatographic test strip (ICS), to offer a low-cost, simple, and visually intuitive solution for the rapid detection of this pathogen in seafood.

Published in Food Quality and Safety (DOI: 10.1093/fqsafe/fyae008), the novel detection platform identifies Vibrio parahaemolyticus within 30 minutes.

The new method specifically targets the tlh gene of Vibrio parahaemolyticus, facilitating highly sensitive detection. The procedure begins with the extraction of bacterial DNA from the seafood sample, followed by RPA for amplification.

The CRISPR/Cas12a system then accurately identifies and cleaves the target gene, with the ICS providing a visual confirmation of the bacterium’s presence. This method achieves a detection limit of 2.5×10^2 fg/µL for

plasmid DNA and 1.4×10^2 CFU/mL for the bacteria.

Remarkably, it can detect Vibrio parahaemolyticus in salmon sashimi at concentrations as low as 154 CFU/g without sample enrichment.

TRADE, IMPORTS & EXPORTS

WTO, FAO collaborate to tackle food fraud, illicit trade

GLOBAL – A recent publication from the World Trade Organization (WTO), in collaboration with the Food and Agriculture Organization of the United Nations (FAO) and other food safety and food crime experts, has shed light on the persistent challenge of combating food fraud and illegal practices in the global food trade.

The comprehensive report also elucidates how the WTO rulebook can play a pivotal role in addressing these issues.

The publication, composed of several agreements, establishes a legal framework for international food trade, aiding efforts to combat illicit activities and fraud. The report highlights several key areas for improvement to deter criminals from engaging in illegal trade or food fraud.

Firstly, reducing import and export restrictions is crucial. The disparity in agricultural goods’ prices between their origin and destination, often exacerbated by government subsidies, fuels smuggling. WTO agriculture negotiations aim to simplify tariff structures, reduce high tariffs and tradedistorting subsidies, and address import and export restrictions to diminish smuggling incentives.

Secondly, modern food safety legislation is imperative. Comprehensive regulations on detecting, preventing, mitigating, and controlling food fraud can significantly reduce opportunities for fraudsters to exploit system vulnerabilities.

Conducting timely, thorough investigations is another vital aspect. Effective criminal investigations are pivotal in identifying illicit actors, uncovering fraud, and exposing public health risks associated with tainted food products. Customs authorities are essential in this process, contributing to safeguarding consumer health and maintaining market integrity.

THE PUBLICATION ESTABLISHES A LEGAL FRAMEWORK FOR INTERNATIONAL FOOD TRADE, AIDING EFFORTS TO COMBAT ILLICIT ACTIVITIES AND FRAUD.

Wiliot launches food safety initiative with ambient IoT technology for FSMA 204 compliance

ISRAEL – Wiliot, an ambient Internet of Things (IoT) developer, has announced a groundbreaking food safety initiative aimed at creating fully transparent and traceable supply chains.

This initiative aligns with the upcoming FSMA 204 compliance requirements and leverages ambient

IoT technology to enhance food safety and operational efficiency.

Ambient IoT is a battery-free wireless technology that integrates with multiple standards, including Bluetooth, 5G Advanced, 6G, and WiFi. As Wiliot states, this innovation enables food products to be connected to the internet and AI-driven analytics

at a fraction of the cost compared to legacy technologies.

The adoption of ambient IoT facilitates a new real-time inventory system that not only enhances food safety and FSMA compliance but also improves store operations. This technology helps retailers compete on quality and value while thriving amidst omni-channel competition.

As part of this initiative, Wiliot is partnering with iFoodDS and Trustwell to integrate ambient IoT data into their safety and compliance platforms. These collaborations aim to move the food industry beyond traditional QR codes and electronic documentation methods towards a real-time, datadriven traceability system.

Rwanda navigates toward GM maize to combat devastating pest threats

RWANDA – Rwanda is contemplating the adoption of genetically modified (GM) maize crop varieties as a strategic response to combat the relentless onslaught of destructive pests such as the fall armyworm.

The urgency for GM maize varieties is fueled by reports of fall armyworms developing resistance to conventional pesticides, posing a grave threat to maize cultivation. Evariste Tugirinshuti, President of Rwanda Maize Farmer Cooperatives Federation, highlighted the devastating impact of pest infestations, with farmers experiencing significant yield losses ranging from 20 to 40 percent.

Telesphore Ndabamenye, Director General of Rwanda Agriculture and Animal Resources Development Board

(RAB), outlined a comprehensive strategy for the phased introduction of GM crop varieties. The strategy commences with confined trials for

cassava crops before transitioning to maize and, subsequently, Irish Potatoes.

Emphasizing the adaptability and resilience of GM crops in the face of climate change-induced challenges, Ndabamenye affirmed the pivotal role of partnerships and stakeholder engagement in driving this transformative agenda forward.

Rwanda’s proactive stance towards GM crop adoption is rubberstamped by the recent enactment of biosafety legislation, aimed at ensuring the safe handling, transfer, and utilization of genetically modified organisms within the country’s borders.

With a robust legal framework in place, Rwanda is poised to navigate the complexities of introducing GM maize varieties into its agricultural landscape.

FAO formulates harmonized HHP Mitigation Strategy to bolster regulations in Southern Africa

ZIMBABWE — The Food and Agriculture Organization of the United Nations (FAO) and the Swedish Chemicals Agency (KEMI) have formulated a harmonized HHP Mitigation Strategy to strengthen HHP regulation across the Southern Africa region.

This is in a workshop held in Harare, featuring participation from 14 pesticide regulators from the Zambia Environmental Management Agency (ZEMA), alongside senior technical advisors from KEMI, and Zimbabwean representatives from the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development (MLAFWRD), the Ministry of Health and Childcare (MoHCC), and technical officers from FAO.

The regulators discussed the status and gaps in their respective pesticide

regulatory frameworks and deemed the workshop timely for updating and developing regulatory measures to reduce HHP risks.

Memory Mahofa, an Agricultural Economist in Zimbabwe’s MLAFWRD, highlighted the feasibility of increasing agricultural productivity with limited use of HHPs.

Among the proposed solutions were the promotion of less hazardous alternatives, Integrated Pest Management (IPM) practices, and proper use and risk reduction measures, such as training farmers and ensuring the availability and use of personal protective equipment (PPE). Stakeholders also developed draft risk mitigation plans.

FDA reorganization to establish unified Human Foods Program receives nod

USA – The U.S. Food and Drug Administration’s (FDA) proposed reorganization to create a new, unified Human Foods Program (HFP) has been approved by the U.S. Department of Health and Human Services, with full implementation slated for October 1, 2024.

This significant restructuring aims to enhance the FDA’s capability to safeguard the nation’s food supply and respond more effectively to food-related emergencies.

The establishment of the HFP will consolidate the functions of the Center for Food Safety and Applied Nutrition (CFSAN), the Office of Food Policy and Response (OFPR), and key roles from the Office of Regulatory Affairs (ORA) into a single program.

This reorganization is designed to streamline FDA operations, allowing the agency to better implement the preventive measures outlined in the Food Safety Modernization Act (FSMA), elevate the focus on nutrition,

and strengthen local, state, and international partnerships.

As part of the restructuring, the ORA will be renamed the Office of Inspections and Investigations (OII).

This change reflects its core mission of conducting inspections, investigations, and overseeing imports, providing essential real-time insights and sciencebased evidence necessary for ensuring food safety.

APPOINTMENTS Update

Uganda National Bureau of Standards appoints James Kasigwa as Executive Director

UGANDA - The Uganda National Bureau of Standards (UNBS) has appointed James Nkamwesiga Kasigwa as the new Executive Director, effective May 2024.

Kasigwa assumes the role, succeeding Mr. Daniel Richard Makayi Nangalama, who was appointed as Acting Executive Director in July of last year. This was after Mr. David Livingstone Ebiru, the then head, was dismissed on grounds of fraud.

Kasigwa brings over two decades of leadership and strategic management experience in multinational corporations, public, and private sectors. He has expertise in science, technology, innovation, standards, and infrastructure. He holds a Bachelor of Science degree in Electrical Engineering from Makerere University, a Bachelor's degree in Computer Engineering, a Master of Science degree in Telecommunications from London South Bank University, and a Master's degree in Business Administration from ESAMI.

Pernod Ricard appoints Sola Oke as Managing Director for Africa

SOUTH AFRICA - Pernod Ricard Africa has appointed Sola Oke as its new Managing Director for Africa.

Oke brings over a decade of experience with Pernod Ricard, having started as Marketing Director in Nigeria in 2014.

His transformative and collaborative leadership style has been instrumental in driving the company's growth across the African region, culminating in his most recent role as Managing Director for Pernod Ricard Nigeria and Western Africa.

In addition to his industry expertise, Oke holds a master’s degree from the University of Manchester and Cardiff Business School. In a statement, Pernod Ricard highlighted Oke's strategic vision, stating, "His leadership will bolster the company’s commitment to portfolio prioritization, prestige acceleration, and pricing power, driving sustainable growth while embedding brands in popular culture and embracing digital transformation."

Uganda Breweries appoints Sheila Sabune as Corporate Relations Director

UGANDA — Uganda Breweries Ltd (UBL), a subsidiary of Diageo, has appointed Sheila Sabune as its new Corporate Relations Director, effective May 1, 2024. Sheila is poised to replace Juliana Kaggwa, who recently moved to a different role in South Africa.

Sheila will be bringing a wealth of experience from her previous roles. For instance, she has worked at Prudential Uganda, serving as Chief Commercial Officer, Head of Legal, Governance, Compliance, and Risk, and most recently as Chief Operations Officer.

Her academic credentials include a master’s degree in International Law and Economics from the World Trade Institute in Geneva, Switzerland, a Postgraduate Diploma in Legal Practice, and a Bachelor of Laws Degree from Makerere University in Uganda.

Her appointment comes shortly after UBL commissioned its new biomass plant, a significant component of the company’s sustainability action plan, known as Society 2030: Spirit of Progress.

Beer Association of South Africa appoints Charlene Louw as CEO

SOUTH AFRICA - The Beer Association of South Africa (BASA) has appointed Charlene Louw as its new Chief Executive Officer, succeeding Patricia Pillay.

Pillay stated, “Charlene brings with her a new energy to BASA. She understands how important reaching out to members and key stakeholders is to ensure the best outcome for the beer industry.”

Louw brings over 20 years of experience in commercial and corporate law to the role, having held senior positions in the energy and private security sectors, as well as leadership roles in public entities like the Road Accident Fund and Pikitup.

She emphasized beer's economic and cultural significance in South Africa, stating, “It is an honor to help shape this vital industry’s goals and priorities and continue to showcase the economic value of beer.”

She also outlined her vision for BASA, which includes promoting responsible drinking and fostering a regulatory environment that supports industry growth and job creation.

Unilever Ghana appoints Chris Wulf-Caesar as new Managing Director

GHANA - Chris Wulf-Caesar is set to return to Unilever Ghana as the new Managing Director, succeeding George Owusu-Ansah.

Chris’s career in Africa’s consumer goods industry is marked by diverse experiences, starting as a management trainee at Unilever, where he gained comprehensive knowledge by working in every department. He later transitioned into leadership roles, notably revitalizing Ghana’s flagship beer brand, CLUB, during his tenure at Accra Brewery Limited (SABMiller/ ABInBev).

Expressing his enthusiasm, Chris remarked, “I am truly honored and humbled to return to Unilever Ghana as CEO. This appointment is not just a career milestone for me; it’s a homecoming. Unilever has always been a part of my journey, and I am excited to lead the company towards a future of sustainable growth and positive impact.”

Chris is a fellow at the National Institute of Marketing Nigeria (NIMN) and an associate member of the Advertising Practitioners Council of Nigeria (APCON).

UBL appoints Patricia Kadama Anguzu as Human Resources Director

UGANDA - Uganda Breweries Ltd (UBL), a subsidiary of Diageo, has appointed Patricia Kadama Anguzu as its new Human Resources Director.

Anguzu joins UBL from Tugende Limited, a prominent asset finance fintech company in the transport and mobility sector, where she served as Senior Human Capital Advisor, overseeing operations in Uganda and Kenya.

Anguzu's extensive experience in the fintech industry includes a tenure as the Regional People Lead at Wave Transfer Limited. She also had a 15-year career at Nile Breweries Limited, where she held various key positions.

Anguzu's tenure at Nile Breweries Ltd also included roles such as Human Resource Operations Manager, Market Analyst, PA to the Sales and Distribution Director, and Marketing Assistant.

Additionally, she has served as Country People Lead from 2016 to 2022, managing the transition of control from SABMiller to AB InBev.

COCA-COLA BEVERAGES AFRICA

Coca-Cola Wozzaah Zero Sugar

Coca-Cola Beverages Africa has introduced its latest offering, “Coca-Cola Wozzaah Zero Sugar,” a new flavor designed to embody the dynamic spirit of the African continent.

The limited-edition beverage is now available in select markets, including Nigeria, Algeria, South Africa, and Morocco.

CHECKERS

Foodie! Range

BIGTREE BEVERAGES

Brothers Mocktails

Bigtree beverages has expanded its beverage portfolio with the launch of ready-to-drink Brothers Mocktails.

The specially crafted addition will be available in four elegant flavors – Cosmo, Strawberry & Lime, Mojito, and Pina Colada.

The range of mocktails aim to provide consumers with drink options that capitalize on affordability and accessibility.

www.bigtreebev.com

Checkers, a FMCG retailer owned by Shoprite has recently introduced an addition to its lineup with the launch of the Foodie! Range.

This new line of products is aimed at igniting culinary creativity in every home kitchen.

The new private label offering has an extensive selection of flavorenhancing sauce bases, pastes, marinades, cook-in sauces, soups, and ready-made meals inspired by various culinary traditions from around the world.

www.checkers.com

THREE SHIPS WHISKY

Single Malt Cape Ruby Cask Finish

South Africa’s Three Ships Whisky has launched the Master’s Collection; a 13-year-old Single Malt Cape Ruby Cask Finish, in an exclusive online sale.

After maturing for eight years in American oak casks, this single malt whisky underwent an additional five years of refinement in Cape Ruby casks, resulting in a harmonious blend of flavors from just five carefully selected casks.

www.threeshipswhisky.co.za

DIAGEO

Johnnie Walker Black Ruby

Beverage giant Diageo has expanded its whisky portfolio with the introduction of Johnnie Walker Black Ruby.

Designed by Master Blender Emma Walker, Johnnie Walker Black Ruby explores the magic of Black Label in a new sweet and contemporary way.

With inviting scents of sweet fruits, rich caramel, and a hint of spice, the aroma sets the stage for a tasting experience that is both inviting and nuanced, priming the senses for the indulgence to come.

www.diageo.com

DANONE EGYPT

Danone Greek yogurt

Danone Egypt has announced the launch of its newest product, Danone Greek yogurt which features a protein-filled signature creamy texture.

The new addition to the Danone family is complemented by delicious fruits on the bottom and promises a taste experience like no other.

Danone’s portfolio includes popular items such as Danone Yogurt, Dango, Activia, Danette pudding, Danone MAX, Oiko Greek yogurt, Danao, and HiPro drinkable yogurt.

www.danone.com

CRANBROOK FLAVOURS

A Trusted Brand Making Waves in Africa

By Catherine Odhiambo

Few stories in the history of flavour manufacturing rival Cranbrook Flavours' remarkable ascent. It all began in June 1984, in a modest setting where founders Peter, Enid, and Michael Johnstone embarked on a journey fueled by ambition and a simple 50kg manual cement mixer. This humble start, marked by ingenuity and determination, laid the foundation for what would evolve into a powerhouse in the flavour manufacturing industry.

Over the decades, Cranbrook Flavours has undergone a remarkable transformation. Now boasting state-of-the-art facilities and providing innovative solutions for the food, beverage, and pharmaceutical sectors, the company stands as a testament to the transformative power of vision and perseverance. Today, under the leadership of the third-generation Johnstone, the company stands as a testament to the transformative power of vision and perseverance.

“This remarkable evolution, driven by a commitment to quality and innovation, has established Cranbrook as a trusted name in

flavour manufacturing and product creation with cutting-edge technology,” says Kevin Johnstone, Managing Director of Cranbrook Flavours.

The company's state-of-the-art manufacturing facility, specializing in aroma chemical synthesis, encapsulation, top note creation, and product development, sets it apart from its competitors. Embracing cutting-edge technologies, the family-owned business invests heavily in research and development to offer robust technical support to its clientele.

A CLOSER LOOK

Cranbrook Flavours operates from three sites in Spartan, Johannesburg, South Africa, dedicated to Savoury, Sweet, and Spice categories. Each facility has comprehensive quality control, product development, analytical, production, and warehousing capabilities. Cranbrook Flavours is an industry giant producing 1,800 metric tons of products monthly, yet it remains deeply rooted in its family origins. A team of 150 skilled professionals uphold the company's legacy

Part of Cranbrook's Team Member

of excellence, ensuring quality and innovation.

At the helm is Kevin Johnstone, whose journey through Cranbrook’s ranks exemplifies his deep-seated commitment to the business. Since joining the company in 2013, Johnstone has navigated various roles with unparalleled dedication, culminating in his current role as Managing Director.

DIVERSE PRODUCT OFFERINGS AND MARKET REACH

The Johnstone family business excels in creating bespoke flavour solutions, addressing clients' unique needs across various sectors. The company's technical expertise encompasses chemical creations, emulsions, spray drying, aroma chemical synthesis, and taste modulation. This formidable arsenal, bolstered by state-ofthe-art laboratories and a dynamic creative team, ensures that Cranbrook delivers nothing short of excellence, from concept to execution.

"Our diverse product offerings and technical expertise enable us to meet the specific needs of our clients and stay competitive in a dynamic market," remarks Johnstone.

Cranbrook's Confectionery Lab

“With a focus on flexibility and customization we excel in delivering flavours and flavour solutions and are also able to deliver bulk commodities. Our streamlined processes ensure reduced lead times, allowing for swift delivery without compromising on quality.”

Cranbrook's market reach spans Africa, including Zimbabwe, Zambia, Botswana, and Namibia, and international markets like the USA, Australia, Turkey, Russia, and the Middle East. The company's commitment to

understanding and catering to market preferences ensures the delivery of tailored flavouring solutions, setting it apart from competitors.

PIONEERING INNOVATION

The story of the taste sensation innovator is one of relentless innovation and adaptability. As market demands evolve, so too do Cranbrook's offerings. The company’s journey is marked by numerous expansions and technological advancements, each designed to meet the ever-growing needs of its diverse clientele.

Recent expansions include the development of fragrances, emulsion technology, product label review, sugar reduction technology, and flavour masking compounds. These additions don't just expand their catalog—they redefine their role in the industry. No longer confined to the label of a mere flavour house, Cranbrook has emerged as a comprehensive partner for beverage producers, offering a suite of services that span the entire product creation journey. From concept to market, Cranbrook is there every step of the way, empowering clients to turn their vision into reality.

The introduction of fragrance development, for instance, marks the beginning of an extensive flavour and fragrance portfolio. This move is not just about diversification; it’s about providing holistic solutions that anticipate and fulfill the complex needs of their clients.

"Expanding our product range and services allows us to offer holistic solutions to our clients, making us a true partner in their success," remarks Kevin Johnstone. "We are committed to innovation and helping our clients achieve their vision, whether that’s a new flavour, a reduced-sugar product, or a complete market-ready solution."

By embodying the spirit of innovation, Cranbrook Flavours remains at the forefront of the industry, ready to tackle new challenges and seize new opportunities. This ensures that clients can always count on them for cuttingedge, market-leading solutions.

A BACKBONE OF INNOVATION: RESEARCH AND DEVELOPMENT

This unwavering commitment to innovation is anchored in the robust framework of its Research and Development (R&D) department, which is integral to Cranbrook’s success and growth.

The flavour manufacturing giant’s R&D department supports the entire product development cycle, ensuring that each new offering is rooted in thorough research and meticulous execution. The process begins with comprehensive market research and trend analysis, which inform the ideation and concept development stages. From there, the team moves

into formulation, testing, and iterative optimization, ensuring that every product meets and exceeds health, nutrition, and regulatory standards.

This customer-centric approach is the bedrock of Cranbrook's ability to introduce groundbreaking products like fragrance development, emulsion technology, and sugar reduction technology. These innovations wouldn't be possible without the relentless efforts of the R&D team, whose work ensures that Cranbrook remains a leader in the flavour manufacturing industry.

"Research and development are the lifeblood of our organization. It enables us to stay ahead of industry trends and consistently deliver products that meet the highest standards," says Kevin Johnstone. "Our commitment to R&D allows us to offer innovative solutions that drive our clients' success and our growth."

Through this dedication to research and development, Cranbrook Flavours not only meets the immediate needs of its clients but also anticipates future demands, fostering a culture of continuous improvement and driving its expansion into new markets.

SAILING THROUGH STORMS

In the vast expanse of the flavour manufacturing industry, challenges lurk like hidden shoals, threatening to disrupt even the sturdiest vessels. As Kevin Johnstone aptly highlights, the industry grapples with an array of challenges, from

RESEARCH AND

DEVELOPMENT

ARE THE LIFEBLOOD OF OUR ORGANIZATION. IT ENABLES US TO STAY AHEAD OF INDUSTRY TRENDS AND CONSISTENTLY DELIVER PRODUCTS THAT MEET THE HIGHEST STANDARDS.

Kevin Johnstone, Managing Director, Cranbrook Flavours

raw material shortages to logistical constraints. However, Cranbrook refuses to succumb to these adversities, opting instead for a proactive approach characterized by substantial investments and strategic initiatives.

"We have built a culture of adaptability and resilience. This enables us to navigate industry challenges effectively and continue delivering for our customers," explains Johnstone. Through judicious investments in raw material stock, backup infrastructure, sustainability programs, and skilled personnel, Cranbrook fortifies its defenses against the tempests

of uncertainty. This proactive stance ensures the company's resilience in the face of external pressures and reaffirms its unwavering commitment to quality and customer satisfaction.

RECENT INVESTMENTS AND TECHNOLOGICAL ADVANCEMENTS

Over the past five years, the titan has invested over US$8 million to enhance technical capabilities, solar systems, and production capacities. These investments aim to meet increasing demand, introduce new technologies, and diversify product offerings. Cranbrook's flexible plant design, a true engineering marvel, encompasses over 15 manufacturing processes. This adaptability allows for tailored solutions to specific customer requirements, ensuring high-quality outcomes.

"Our investment in new technologies and processes ensures we stay ahead of industry trends and meet our customers' evolving needs," adds Johnstone.

MILESTONES AND ACHIEVEMENTS

As the saying goes, "Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful." This ethos rings true for Cranbrook Flavours, a company that has achieved significant milestones driven by passion and dedication.

In 2021, the company unveiled its ultra-modern Sweet

Production, R&D, and Analytical facility, signaling a new era of growth and innovation. This investment, including a fully automated spray-dry system, showcases Cranbrook's dedication to pushing the boundaries of possibility while remaining steadfast in its commitment to sustainability. This facility embodies Cranbrook's ethos of future-ready operations with features like a full solar generation system and

advanced water management.

"Our continuous reinvestment into the business and focus on sustainability are core to our strategy. We believe in building a resilient and future-ready operation," asserts Managing Director Kevin Johnstone, encapsulating Cranbrook's vision for the future.

Beyond infrastructure investments, Cranbrook Flavours has made significant strides in market expansion and certification. The company has successfully implemented the requirements of FSSC 22000 V6. New market entries in the Middle East and Australia have enriched Cranbrook's knowledge and fueled further expansion ambitions. "Our goal is not just growth but meaningful growth that expands our horizons and enhances our capabilities," adds Johnstone.

In March 2022, the flavour creation experts made headlines with the acquisition of their largest spice supplier, Spice Importers & Millers, a move that solidified their position as a key player in the industry. This strategic acquisition aligns with Cranbrook's vision of becoming the largest independent flavour manufacturer in Africa. Furthermore, Cranbrook's development of in-house sugar reduction technologies has garnered notable success in various sectors, further driving its growth.

These milestones have fueled the company's passion and vision for further expansion across Africa, culminating in an average growth rate of 40% over the past three years. "The family is committed to continuing to reinvest into the business to achieve its goal of becoming the largest independent flavour manufacturer in Africa," says Kevin Johnstone echoing Cranbrook's unwavering dedication to growth and excellence. The company is also passionate about giving back to

the community. Cranbrook launched their CSR program Cranbrook Cares, an initiative supporting and assisting African-owned food businesses needing technical and financial support. The company is also dedicated to continued training programs for young aspiring students in the food industry, fostering the next generation of talent and innovation.

"Training young minds is our way of ensuring a sustainable future," highlights the Managing Director. "We invest in these programs because we believe in nurturing talent that will carry forward our legacy of excellence and responsibility."

At Cranbrook Flavours, innovation meets responsibility, shaping a future where success isn't measured just in profits but in its positive impact on communities and industries.

SUSTAINING FLAVOUR, SUSTAINING THE FUTURE

In an era where 60% of consumers prioritize sustainability in their purchasing decisions, the flavours powerhouse is committed to sustainability and compliance, setting a benchmark in the food industry.

By implementing the Food Safety Management System (FSSC 22000 V6), Cranbrook Flavours has significantly enhanced product safety and quality performance, effectively avoided product recalls, and minimized product rejects, reworks, and wastage instances. This proactive approach to quality assurance has earned the company an enviable reputation for reliability and excellence in the market.

Moreover, Cranbrook Flavours maintains a high standard of food premises and transport hygiene, holding the Certificate of Acceptability as per R638 regulations. The company’s adherence to ISO 14000 environmental standards and stringent occupational health and safety protocols ensures that operations do not harm the environment while fostering a safe and conducive working environment for employees. Additionally, Cranbrook Flavours' products are certified Halaal and Kosher, meeting a diverse customer base's dietary requirements and religious standards.

"We take immense pride in our certifications," says Kevin Johnstone. "They are a testament to our rigorous standards and commitment to delivering nothing but the best to our customers while ensuring the safety and well-being of our team and the environment."

Cranbrook Flavours' dedication to sustainability extends beyond compliance, reflecting its core business values. With a profound commitment to making a meaningful impact within the food industry and the broader community, the company practices sustainable energy consumption, responsible water stewardship, and efficient chemical waste handling. Notable initiatives include recycling plastic drums, significantly reducing waste, and promoting a circular economy within the company. Implementing safe drainage systems and

MOREOVER, CRANBROOK AIMS TO EXTEND ITS FOOTPRINT INTO NEW TERRITORIES, FOCUSING ON ESTABLISHING A PERMANENT PRESENCE IN THE

EAST AFRICAN REGION.

vigilant water quality monitoring further accentuate their commitment to environmental protection.

"Our commitment to sustainability is intrinsic to our business values," states Kevin Johnstone. "These initiatives are not just about compliance but about making a real difference."

CHARTING THE COURSE

As Cranbrook Flavours looks ahead, the horizon is brimming with possibilities and opportunities for growth and impact. With a keen eye on innovation and a steadfast commitment to excellence, Cranbrook is not just anticipating the future—it's actively shaping it.

"Our vision extends far beyond mere expansion; it's about making a lasting impact," declares the company’s helmsman. "We believe in our ability to pioneer change, to revolutionize how flavours are created and experienced."

The future holds immense promise for the flavours expert

and the regions it operates in. Recognizing the shortage of key specialty ingredients and the growing demand for nutritionfocused products, Cranbrook aims to democratize access to quality ingredients, making them affordable and accessible to mass producers and consumers alike. This commitment to accessibility is not just a business strategy; it's a testament to Cranbrook's belief in creating a healthier, more sustainable future for all.

In alignment with current and future industry trends, Cranbrook is primed to capitalize on opportunities in sugar reduction, cost optimization, protein fortification, yeast modulation, and integrated spray-dried premixes. By adopting a solution-based strategy and leveraging its in-house capabilities, the company is poised to offer unparalleled value to its customers, setting itself apart in a competitive landscape.

Moreover, Cranbrook aims to extend its footprint into new territories, focusing on establishing a permanent presence in the East African region. This strategic move will be supported by Cranbrook's innovation and production center in Johannesburg, South Africa, underscoring the company's commitment to expanding its reach and making a meaningful contribution to emerging markets.

"I am committed to expanding our footprint with our first international expansion project due to commence in 2025," affirms Kevin Johnstone. “We are extremely excited at the prospect of establishing strong partnerships in the region, offering employment opportunities, and showcasing what Cranbrook can offer.”

With unwavering determination and a spirit of innovation, Cranbrook Flavours is poised to pioneer a future where flavour knows no bounds, and opportunity is within reach for all.

Beverage TECH

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

Tapping the Potential in the Low and No-Alcohol Beverage Category

By Francis Watari

According to Mintel, 30% of consumers are drinking less alcohol to reduce or manage weight, and another 30% are doing so for general physical health reasons. Additionally, 26% aim to improve their mental health and 11% seek better sleep."

The beverage industry, propelled by the evolving consumer preferences towards healthier lifestyle choices, has undergone a profound transformation in recent years. This significant shift in the alcoholic beverages category is not a mere coincidence, but a direct response to the increasing number of consumers opting for drinks that offer health benefits. Consequently, the sector has experienced a notable growth trend in the low and no-alcohol beverage sectors, offering healthier and tastier alternatives that align with consumer preferences.

David De Schutter, Global Vice President at GITEC, Anheuser-Busch InBev, provides a firsthand account of the evolution of no-alcohol beers: “The no-alcohol beers of today are much different from what was available years ago. The innovative methods and technology developed by our brewers and researchers are creating the next generation of refreshing, great tasting, no-alcohol beers for people to enjoy on any occasion.”

What started as a niche market catering to a small

segment of health-conscious consumers has organically evolved into a mainstream movement, embraced by a diverse demographic. The demand for low and no alcohol beverages is not a mere trend, but a reflection of shifting social norms, increased health consciousness, and a growing desire for more mindful drinking experiences. This consumer-driven shift is shaping the future of the beverage industry, making it more inclusive and health-focused.

Today, consumers are seeking alternatives that offer the taste and sophistication of traditional alcoholic beverages without the negative effects of alcohol. In this article, we look at the players, innovations, technological advancements driving innovation, and consumer trends and preferences propelling growth in low and no-alcohol beverages.

FUELLING GROWTH IN THE LOW AND NO ALCOHOL SECTOR

According to IWSR, the global benchmark for beverage alcohol data and intelligence, the low and no alcohol drinks market is not just a local trend, but a global movement. It grew by a staggering 9% in 2022 across 10 countries including Australia, Brazil, Canada, France, Germany, Japan, South Africa, Spain, the UK, and the US, leading no/low markets to 70%, up from 65% in 2018. During the same period, the alcoholic drinks market grew by just 2.2%, indicating a clear shift in consumer preferences and a promising future for the low and no-alcohol sector.

The global market for no and low-alcoholic drinks was valued at US$13 billion in 2023. IWSR expects no-alcohol volumes to grow at a compound annual growth rate (CAGR)

of +9% between 2022 and 2026.

Meanwhile, the low and no-alcohol beverage market in South Africa has grown at an approximate annual rate of 12% over the past few years, constituting about 5% of the total beverage market in South Africa.

With such compelling statistics and a plethora of innovative

examples entering the market; it's evident that this category is more than just a passing phase but a reflection of evolving consumer preferences.

Manufacturers have risen to the challenge by crafting innovative options that transcend merely replicating traditional alcoholic flavors. Diageo has led the way with outstanding innovations – from the development of Seedlip, the world’s first distilled non-alcohol spirit, to the launch of 0.0% versions of Tanqueray, Captain Morgan, and Guinness, which Esquire crowned as the ‘King of non-alcoholic beers.’ These innovations help consumers enjoy premium alternatives to some of their favorite products.

Low and no alcohol drinks now encompass a wide array of options, including alcohol-free beers, alcohol-free wines, ready-to-drink cocktails, botanical-infused low alcohol spirits, and even alcohol-free spirits. These alternatives offer a new realm of taste experiences while ensuring individuals enjoy the camaraderie of sharing drinks with friends and family.

MARKET DYNAMICS IN THE CATEGORY

Despite the challenges faced by the beverage alcohol market in 2020, consumer demand for no- and low-alcohol beer, wine, spirits, and ready-to-drink (RTD) products has continued to rise. Germany, the largest no and low alcohol market by volume, experienced a decline in consumption due to the no and low alcohol beer segment's reliance on the on-trade at bars and restaurants.

Meanwhile, the US, as the next largest market, is currently the most dynamic, with the no/low segment registering over +30% increase in volume consumption in 2020 despite the

enormity of the challenges faced by the industry. Driven by early innovation and investment in quality, the no/low beer and cider category dominates the overall no/low market, commanding a 92% share of the total no/low alcohol segment.

LOW AND NO ALCOHOL DRINKS NOW ENCOMPASS A WIDE ARRAY OF OPTIONS, INCLUDING ALCOHOL-FREE BEERS, ALCOHOLFREE WINES, READY-TO-DRINK COCKTAILS, BOTANICAL-INFUSED LOW ALCOHOL SPIRITS, AND EVEN ALCOHOL-FREE SPIRITS.

Thanks to investment from major brewers, consumers are becoming more familiar and accepting of no/low beer as a quality product. For example, in 2023, AB InBev, the world’s largest brewing company invested €31 million in tech to expand its no-alcohol beer portfolio.

According to IWSR, the No/low beer registered a flat performance for the 2019-2020 period, at +0.5%. In contrast, the no/low spirits category, which has only a 0.6% share of the no/low market, increased volume consumption largely thanks to new interest in home experimentation among consumers.

New product development and increasing consumer demand for no/low spirits will see the category experience the largest volume CAGR rate from 2020 to 2024. Meanwhile, no/low RTD volumes grew in 2020, largely driven by a trend for functional alcohol-free RTDs in Japan. No/low wine also made strong gains in the US, UK, and South Africa. The South African Wine Industry Information & Systems (SAWIS) reports that local sales surged by 59.74%, increasing from 64,883 litres in 2021 to 103,642 litres in 2022. The sparkling category of these wines has experienced an even more astounding rise, with sales skyrocketing by 650%. This segment grew from 2,156 litres in 2021 to 16,175 litres in 2022, highlighting the increasing

consumer demand for non-alcoholic options in the wine market.

Both categories will continue their growth trajectory through 2024.

CHALLENGES AND OPPORTUNITIES IN THE LOW/NO-ALCOHOL CATEGORY

While the low and no alcohol market is experiencing rapid growth, navigating the varied legal and regulatory landscape can be a challenge. Different countries have varying definitions and restrictions when it comes to non-alcoholic beverages, making it essential for brands to stay compliant and adapt their formulations accordingly.

For example, in the UK, no-alcohol drinks must have an ABV of 0.05% or less, while ‘lowalcohol’ drinks should not exceed an ABV of 1.2%. Beverage companies in the UK are urging the government to consider raising the no-alcohol category abv to 0.5% terming the present 0.05% as cost ineffective. Laura Willoughby, Club Soda founder, believes this threshold hinders the growth of no-and-low companies and suggests a broader categorization, saying, “I wouldn’t say that everybody is exactly on the same page. I’d love for everybody to be on the same page because I think, in the longer term, that’s where the growth and choice will be.”

Despite the regulatory challenges facing the

sector, there are endless opportunities for investors and actors in the sector. Consumers, especially millennials are becoming more experimental and willing to try new and healthier alternatives to traditional soft drinks. Gen Z appears to be a factor in driving the low-and-no industry forward as younger people look to consume alcohol less frequently than previous generations. A report by the Portman Group discloses that 44% of 18- to 24-year-olds consider themselves either an “occasional or regular drinker of alcohol alternatives”, compared to 31% in 2022. The growing interest creates an avenue for investors to invest in the no/low alcohol sector.

In response to these needs, South African Breweries (SAB), a subsidiary of AB InBev, has recently expanded its portfolio with the launch of Corona Cero, a new alcohol-free beer enriched with Vitamin D. Other brands making waves in South Africa include Heineken 0.0; Castle Free which is South Africa's first home-grown 0.0% alcohol beer; Savanna Non-Alcoholic Lemon which expands the cider category; Four Cousins De-Alcoholised Wines which offers a range of de-alcoholized wines, including red, white, and rosé, catering to wine lovers who prefer non-alcoholic options. Additionally, The Duchess Virgin Gin & Tonic offers a non-alcoholic gin and tonic that mimics the botanical flavors of traditional gin, further diversifying the market's offerings.

TECHNOLOGICAL INNOVATIONS

Categories such as no-and-low alcohol wine have traditionally suffered from poor consumer perceptions of quality and flavor, but new advances in winemaking technology are addressing this issue. For instance, the advancement of Australian Lifestyle Wines project, launched in 2023, isan initiative uniting brand owners and research institutes, backed by a AU$3m (US$2.01 million) research grant from the federal government. This project aims to position Australia as the largest global producer of no/low wines. “Governments and producers are recognising the untapped opportunity in reduced-ABV wine and are investing in new no/low technology to mitigate the long-term decline in the full-strength wine category,” says Goldspink, Head of No/ Low-Alcohol Insights, IWSR. “Gaining repeat purchase of low-alcohol wines remains a challenge, but investment in technology will improve quality.”

Furthermore, with advancements in technological innovations, the equipment used to remove alcohol from fermented and distilled alcoholic beverages is improving, with costs falling. For example, GEA’s AromaPlus “dealcoholization” system uses a filtration technology with polymer membranes to separate alcohol and water through reverse osmosis, a water purification process that uses a partially permeable membrane to separate ions, unwanted molecules, and larger particles

from drinking water while retaining elements that boost taste. GEA claims this allows for the inclusion of ingredients crucial for the aroma, color, and turbidity of the final product. Such membrane filtration technology is touted as boosting the taste of alcohol-free beers over the conventional method of stopping fermentation by abruptly exposing the yeast to cold, which can make beer unpleasantly sweet and taste strongly of malt.

THE FUTURE

As the low and no alcohol movement continues to grow, it's clear that it's more than just a passing fad. Consumers are embracing these beverages not only for personal well-being but also for the freedom to enjoy a night out or a relaxing evening at home without the impact of alcohol. As the industry continues to evolve, it's clear that the future is vibrant for those seeking a balance between enjoyment and well-being.

NAIVAS: The journey to 100 stores and beyond

By Francis Watari

Naivas supermarket, a household name in the Kenyan market, stands as the largest supermarket chain in Kenya with over 100 stores nationwide. Its journey, which began in July 1990 as Rongai Self Service Stores Limited, has been a testament to resilience and adaptability. Despite the turbulent nature of the retail industry, Naivas has emerged as a top player, a feat that can only be attributed to the family’s relentless pursuit of entrepreneurial excellence. This drive led to its registration as a company in 1993 and subsequent expansion, a story that is sure to impress.

At the core of its operations is the drive to continuously meet and exceed the customer’s needs, enabling it to provide better services. Living the business mantra, "We exist to make other people’s lives better," Naivas is more than just a retail store – "we complement the lifestyles of those who seek our services.

By 2001, the supermarket had expanded vigorously beyond the Nakuru region and had stamped its presence in major towns in Kenya. By this time, the retailer had setup branches in Mombasa, Nairobi, Naivasha, Eldoret, Machakos, Kitui, Embu, Nakuru among many others. Naivasha Self-Service stores became the headquarters of the family business, which eventually led to the rebranding of the entire entity as Naivas supermarket. The supermarket has since grown through leaps and bounds to reach now over 100 branches employing over 10,000 employees throughout the country.

OWNERSHIP AND INVESTMENTS

Naivas hit the retail spotlight when Joram Kamau, founder of Tuskys supermarket, supported his brother Peter Kago in expanding the retail outlet. After Peter Kago’s death in 2010, he left Naivas to his four children—David Kimani, Simon

Gachwe, Linet Wairimu, and Grace Wambui—excluding his eldest son, Newton Kagiri Mukuha. In August 2013, Massmart, a subsidiary of Walmart, offered to acquire a 51 percent stake in Naivas, but the bid led to a family feud, resulting in the management's decision not to sell.

In 2020, the Competition Authority of Kenya (CAK) approved the acquisition of 31.5 percent of Naivas shareholding by a consortium comprising the International Finance Corporation (IFC), DEG and private equity firms Amethis and MCB Equity Fund. In June 2020, the IBL-led group, Mambo retail, reached a deal to buy the 31.5 percent stake held by IFC and its co-investors at a cost of US$119.68 million (Sh16.8 billion). The group also acquired an additional 8.5 percent stake from the Mukuha’s for US$32.29 million (Sh4.5 billion), marking the first time the family cashed out of its investment through sale of shares. IBL currently holds an effective stake of 26.32 percent in Naivas, followed by Proparco and DEG whose indirect interest in the retailer stands at 8.29 percent and 5.39 percent respectively.

REMARKABLE MILESTONES

The retail giant recently celebrated the grand opening of its 102nd store in Westland, Nairobi, marking a significant milestone in its 33-year journey. This achievement comes shortly after the opening of its 101st store in Kakamega, demonstrating Naivas' unwavering commitment to expanding

IN

JUNE 2020, THE IBL-LED GROUP, MAMBO RETAIL,

REACHED

A DEAL TO BUY THE 31.5 PERCENT STAKE HELD BY IFC AND ITS CO-INVESTORS AT A COST OF US$119.68 MILLION.

its reach and cementing its leadership in the Kenyan retail market.

Naivas' success extends beyond its physical presence, as evidenced by its recognition in prestigious awards. In 2021, the company won Gold in the E-commerce Awards, which acknowledge and honor businesses, groups, and individuals contributing to Kenya's thriving online retail sector. Furthermore, in 2023, Alex Karanja, Naivas' Head of Digital Transformation: Data Analytics and Innovation, was shortlisted for the esteemed CIO of the Year Africa Award at the CIO100 Awards. This recognition highlights Naivas’

Naivas during the 2021 E-commerce Awards

innovative approach to digital transformation and their commitment to leveraging technology to enhance customer experience.

LEGAL BATTLES AT NAIVAS

Naivas Supermarket, despite its success, has been embroiled in several legal battles, primarily revolving around family disputes and ownership of the company. Newton Kagira Mukuha has repeatedly gone to court claiming exclusion from his rightful inheritance. Kagira first went to court in 2012 when he attempted to prevent the disposal of the supermarket to South Africa-based Massmart, successfully winning the petition. In 2021 during the sale of a 30 percent stake in Naivas for Kes6 billion (US$46.22 million), Kagira stood at the barricades questioning the legality of the transaction, claiming it violated a court order prohibiting any dealings with the disputed shares. The application sought to preserve his late father’s 10,000 shares in Naivas. Additionally, Grace Wambui sued her siblings over the sale of family properties without her involvement. Recently, the high court in Nakuru appointed Kimani and Wambui as the administrators of the estates owned by the Naivas founder.

Other than family feuds, Naivas has also faced compliance issues, including a tax dispute with the Kenya Revenue Authority and a failure to report a ransomware attack within the required timeframe. In June 2022, Naivas Ltd appealed a KRA tax assessment related to the sale of Naivas International Limited (NIL), which subjected the transaction

to a 30% resident corporation tax. However, the Tax Appeals Tribunal (TAT) upheld the KRA's assessment in August 2023, resulting in a Kes 1.79 billion tax liability for Naivas. Furthermore, in September 2023, Naivas was found to be in violation of the law for not reporting a ransomware attack that occurred in April 2023 within the mandated 72-hour timeframe. The attack, one of the country's largest customer data theft incidents, compromised the retail giant’s servers

Naivas' and Amethis' CSR Initiative

and systems, exposing private information, including invoices, agreements, and customer data, to possible manipulation by unknown actors.

NAVIGATING CHALLENGES IN THE KENYAN RETAIL MARKET

Kenya's retail sector is a bustling landscape shaped by various challenges and opportunities. Amidst this dynamic environment, Naivas has demonstrated resilience and strategic maneuvering to stay competitive and meet consumers' evolving needs in various ways including;

1. Adapting to Shifting Consumer Behavior

One of the key challenges in the Kenyan retail market is the shifting consumer behavior, influenced by factors such as economic fluctuations and the global pandemic. Naivas has efficiently adapted its strategies to align with these changes. The supermarket chain has invested in enhancing its online presence, providing customers with the convenience of online shopping and home delivery services. This move not only addressed safety concerns during the pandemic but also catered to the growing demand for digital retail experiences.

2. Strategic Expansion and Market Reach

Naivas has shown a commitment to growth by expanding its footprint across Kenya. The supermarket chain has strategically opened new outlets in different regions, not only catering to urban consumers but also reaching customers in emerging markets. With a current network of 102 stores nationwide, Naivas ensures convenient access to its offerings while expanding its market reach.

3. Diversified Product Offerings

To capture a wider market share, Naivas has diversified its product offerings. The supermarket has introduced private labels and partnered with local suppliers to provide a diverse range of products. This approach supports local businesses and allows Naivas to offer competitive pricing and a unique product assortment, enhancing its appeal to a broader customer base.

4. Optimizing Supply Chain Management

Navigating the challenges in the Kenyan retail market requires a robust and resilient supply chain. Naivas has focused on optimizing its supply chain management to ensure efficient procurement, distribution, and restocking of goods. The implementation of advanced inventory management systems, demand forecasting tools, and data analytics enables the supermarket chain to make informed decisions regarding stock levels, order quantities, and distribution.

For example, its WEBCON BPS, a finalist in the dx100 awards, allows Naivas not only to digitize but also process re-engineer simultaneously. In partnership with Liquid Intelligent Technologies, the retail chain implemented a wide area network to connect all branches using DIA on SD-WAN for reliability, security, and efficiency. The solution included an Infrastructure-as-a-Service architecture on Microsoft Azure to bolster operational resilience by ensuring adequate capacity that can adapt to fluctuating demands.

5. Enhancing Customer Loyalty

Recognizing the importance of customer loyalty, Naivas has implemented various customer-centric initiatives. The supermarket chain introduced loyalty programs, discounts, and promotions to reward and retain its customer base. Naivas’ customer loyalty program allows shoppers to earn a point for each Kes100 (US$ 0.77) spent at any of the retailer's stores in the country. These points can then be used to pay for future purchases, with one point equivalent to Kes1 (US$0.0077).

Additionally, Naivas has invested in customer service training for its staff, aiming to enhance the overall shopping experience for its patrons. In 2021, the supermarket launched the ‘Accelerator: In the Detail of Retail’ initiative, which aims to ensure that the business will always have quality staff for all its store management and preserve the legacy of the supermarket chain.

COMMITMENT TO CORPORATE SOCIAL RESPONSIBILITY

In a market where community ties are crucial, Naivas has actively engaged in corporate social responsibility (CSR) initiatives. The supermarket chain has undertaken projects that contribute to the well-being of local communities, ranging

IN NUMBERS

from supporting education to promoting environmental sustainability. This not only fosters a positive brand image but also establishes the retailer as a socially responsible corporate entity.

Naivas has partnered with beneficiaries to facilitate programs such as menstrual hygiene, charity activation, coin collection, fund donations, and the "Sourcing 2 Equal" project which aims at promoting gender equality in procurement. The supermarket chain has also implemented an Occupational Health and Safety (OHS) plan per the legal requirement to help prevent accidents and injuries in all its outlets.

FUTURE OUTLOOK AND OPPORTUNITIES

The Kenyan retail market looks promising with international investors partnering and opening outlets in the country. However, Naivas must remain vigilant against increasing competition from emerging supermarkets such as Quickmart and Carrefour. Currently, Quickmart, another household name in Kenyan retail, is experiencing exponential growth having 59 branches countrywide. Quickmart is making

significant efforts to become a top supermarket chain by creating competitive edges, including a partnership with the online service provider Glovo to offer a seamless shopping experience for customers from the comfort of their homes.

Carrefour, a French multinational retail and wholesaling corporation, entered the Kenyan market in 2016 and has already opened 23 branches, attracting a substantial consumer base with attractive offers. To maintain its competitive edge, Naivas must focus on increased operational efficiency, innovative marketing, and superior customer management.

Despite the challenges, the Kenyan retail market offers several opportunities for the different value chain players. The increasing interest in convenience and personalized shopping experiences provides Naivas with the opportunity to invest in online grocery platforms and in-store services like pick-up and delivery. Kenyans are also becoming more discerning about the value and affordability of commodities. By focusing on local produce, Naivas can leverage its supplier network to offer competitive prices and cater to the rising demand for ethically sourced and organically grown foods.

The growing middle class in Kenya presents a significant opportunity for Naivas. This demographic shift has led the supermarket to introduce alcoholic beverages in 2020, a category initially not offered. The middle class has presented a booming market for premium products and niche offerings. Naivas can cater to this segment by diversifying its product range and creating specialized sections for organic and health-conscious products. It will also require targeted advertising, especially on social platforms and other online advertising platforms, to push its reach to a wider consumer base.

Overall, Naivas is well-positioned for further growth in the Kenyan retail market. As the retail giant says, "In terms of expansion, we have reached heights previously unprecedented in the retail industry and are focused on becoming Kenya’s success story by growing our footprint to other parts of East Africa and truly becoming the pride of this Nation.” However, navigating the changing landscape and addressing emerging challenges will be crucial for long-term success.

Food Safety Fo cus

TRENDS IN MANAGEMENT OF FOOD SAFETY, QUALITY & COMPLIANCE IN FOOD & AGRICULTURE

Beyond the Petri Dish: The Latest in Listeria Testing Techniques

By Catherine Odhiambo

Listeria monocytogenes, a bacterium notorious for its resilience and virulence, has long posed a significant threat to the safety of our food supply. Despite its relatively low occurrence compared to other foodborne pathogens like Campylobacter and Salmonella, the impact of Listeria contamination cannot be overstated. The severity of listeriosis, the illness caused by Listeria infection, coupled with its high mortality rate—reaching up to 40% in certain outbreaks—and its predilection for vulnerable segments of the population, has propelled L. monocytogenes to the forefront of food safety concerns.

Listeriosis is not merely a gastrointestinal ailment; it can lead to severe complications, including meningitis, septicemia, and miscarriage, particularly in pregnant women, the elderly, and individuals with weakened immune systems. The consequences of Listeria contamination extend far beyond individual health, impacting public health systems, food producers, and consumer confidence in the safety of the food they consume.

In response to the significant public health risks posed by Listeria contamination, regulatory agencies worldwide have implemented stringent guidelines and regulations to ensure the safety of food products. Food producers are under increasing pressure to adhere to these standards and enforce robust testing and control measures to prevent

Listeria detection, relying on isolating and enumerating bacterial colonies on selective agar media. While these methods provide a foundation for understanding Listeria prevalence, they are often time-consuming and labor-intensive, requiring days to yield conclusive results.

These traditional methods of Listeria testing have limitations in terms of speed and sensitivity. However, recent technological advancements have revolutionized the landscape of Listeria detection. Polymerase chain reaction (PCR), whole genome sequencing (WGS), and advanced molecular methods have emerged as powerful tools, offering rapid and accurate identification of Listeria strains. These methods not only streamline testing processes but also provide valuable insights into the genetic diversity of Listeria populations.

UNVEILING THE POWER OF PCR

Listeria contamination throughout food production.

Continuous advancements in testing strategies are paramount in the ongoing battle against Listeria contamination. As Listeria continues to evolve and adapt, so must our detection and control methods. The development of faster, more sensitive, and more reliable testing technologies is essential to keep pace with emerging challenges and safeguard our food supply's integrity. This article delves into the forefront

of these advancements, exploring cutting-edge technologies transforming Listeria testing in the food industry. From traditional culture-based methods to innovative molecular techniques and sensor technologies, each innovation represents a crucial step forward in our efforts to ensure the safety and security of the food we consume.

TRADITIONAL CULTURE-BASED METHODS

For decades, culture-based methods have served as the gold standard for

Once confined to molecular biology, polymerase chain reaction (PCR) has now found a vital niche in the food industry, offering unparalleled speed, sensitivity, and specificity in Listeria testing. PCR is a molecular technique that amplifies specific segments of DNA, enabling the rapid identification of target organisms. In the context of Listeria testing, PCR targets unique genetic markers characteristic of Listeria monocytogenes, distinguishing it from other bacteria with remarkable precision.

What sets PCR apart from traditional culture-based methods is its ability to deliver results in a fraction of the time. While culture methods may take days to yield conclusive results, PCR accelerates the process, detecting Listeria in hours, if not minutes. This swift turnaround time is a game-changer for food producers, allowing them to implement timely interventions and prevent contaminated products from

Listeria Monocytogenes

reaching consumers. Moreover, PCR offers unparalleled sensitivity and is capable of detecting even low levels of Listeria contamination. This heightened sensitivity is crucial in ensuring the safety of high-risk foods, such as ready-to-eat products, where even a small number of Listeria cells can pose a significant health risk.

The versatility of PCR extends beyond mere detection; it also facilitates strain differentiation and genetic profiling of Listeria isolates. Through techniques like Multiple Locus Sequence Typing (MLST) or Pulsed-Field Gel Electrophoresis (PFGE), PCR enables researchers to trace the source of contamination, unraveling intricate pathways within the food supply chain.

Last year, bioMérieux, a global pioneer in in-vitro diagnostics, developed a first-of-its-kind testing kit that simultaneously detects Listeria and Salmonella from environmental swabs, with PCR confirmation.

However, PCR is not without its challenges. It requires specialized equipment and expertise, making it less accessible to smaller food businesses. Additionally, PCR assays may be prone to false-positive or false-negative results due to inhibitors in complex food matrices. Standardizing protocols and quality control measures are essential to ensure reliability and accuracy.

WHOLE GENOME SEQUENCING (WGS)

WGS represents the pinnacle of genetic analysis. It allows scientists to decipher an organism's entire genetic blueprint, providing unprecedented insights into its identity, evolution, and behavior. WGS offers a quantum leap in understanding this elusive bacterium in Listeria control, empowering food

LAST YEAR, BIOMÉRIEUX, A GLOBAL PIONEER IN IN-VITRO DIAGNOSTICS, DEVELOPED A FIRST-OF-ITS-KIND TESTING KIT THAT SIMULTANEOUSLY DETECTS

LISTERIA AND SALMONELLA FROM ENVIRONMENTAL SWABS, WITH

PCR

CONFIRMATION.

producers and regulatory agencies to combat contamination with unparalleled precision.

Unlike traditional methods that rely on limited genetic markers, WGS captures the entirety of an organism's genome, offering a comprehensive view of its genetic makeup. This holistic approach enables researchers to differentiate between closely related strains of Listeria with unprecedented resolution, shedding light on their origins and transmission pathways.

The transformative power of WGS lies not only in its ability to identify Listeria strains but also in its capacity to trace outbreaks back to their source. By comparing the genetic fingerprints of Listeria isolates from food samples, production environments, and clinical cases, scientists can pinpoint the exact origins of contamination, unraveling complex networks

within the food supply chain. Advances in sequencing technology have led to improvements in sequencing accuracy, throughput, and cost-effectiveness. Portable sequencing platforms offer the potential for on-site sequencing, reducing turnaround times and facilitating rapid decision-making in outbreak situations.

Despite its undeniable potential, the high cost of equipment and expertise, coupled with the complexity of data analysis, pose barriers to widespread adoption. Furthermore, standardization of protocols and data-sharing practices are essential to unlock the full benefits of this technology on a global scale.

IMMUNOMAGNETIC SEPARATION

Immunomagnetic Separation (IMS) is commonly used to enrich and isolate Listeria from food samples and environmental swabs. It enhances the sensitivity and efficiency of Listeria detection, particularly in samples with low contamination levels.

At its core, IMS harnesses the power of antibodies coupled with magnetic nanoparticles to selectively capture and concentrate target bacteria from complex samples. It offers a potent combination of specificity, sensitivity, and efficiency, enabling food producers and regulatory agencies to identify and mitigate contamination risks with unparalleled precision.

The beauty of IMS lies in its simplicity. By immobilizing antibodies specific to Listeria onto magnetic particles, researchers create molecular "bait" capable of luring Listeria cells from diverse matrices, such as food products, environmental swabs, and clinical specimens. Once captured, the magnetic particles, along with their bacterial quarry, can

be easily separated from the sample matrix using a magnetic field, streamlining the isolation process and enhancing the detection limit.

IMS may be prone to non-specific binding and interference from matrix components, leading to false-positive results. Optimization of assay conditions and validation of antibody specificity are essential to minimize these issues.

EIA- AND ELISA-BASED ASSAYS

Enzyme-Linked Immunosorbent Assays (ELISA) and Enzyme Immunoassays (EIA), rooted in the principles of immunology and biochemistry, have become indispensable tools in the arsenal against Listeria contamination. EIA and ELISA assays leverage the specific binding affinity between antibodies and target antigens to detect and quantify Listeria cells in food samples. The process begins with immobilizing Listeria-specific antibodies onto a solid surface, such as a microplate or membrane. When the sample containing Listeria is introduced, any target cells present bind to the immobilized antibodies.

The true beauty of EIA and ELISA lies in their exquisite sensitivity and specificity. By coupling the antibody-antigen interaction with an enzyme-mediated colorimetric or fluorescent signal, these assays can detect even trace amounts of Listeria with remarkable precision. This high sensitivity is crucial in detecting Listeria in complex food matrices, where low contamination levels pose significant health risks.

Moreover, EIA and ELISA assays offer unparalleled versatility, accommodating a wide range of sample types and formats. Whether testing raw materials, finished products, or environmental swabs, these assays can be adapted to suit

diverse applications, making them invaluable tools for food producers and regulatory agencies alike.

Nevertheless, EIA and ELISA assays are not without their challenges. The complexity of sample preparation, coupled with the need for specialized equipment and expertise, may pose barriers to widespread adoption, particularly among smaller food businesses. Furthermore, cross-reactivity with non-target organisms and variability between assay kits necessitate rigorous validation and quality control measures to ensure reliability and accuracy.

The future of EIA and ELISA in Listeria detection holds immense promise. Ongoing advancements in assay design, combined with automation and miniaturization innovations, promise to enhance sensitivity, speed, and accessibility. Additionally, integration with emerging technologies such as microfluidics and smartphone-based platforms holds the potential to democratize access to these assays, empowering food producers and regulatory agencies to safeguard the global food supply more effectively.

LATERAL FLOW ASSAYS

Lateral flow assays, reminiscent of home pregnancy tests in design, offer a streamlined approach to identifying Listeria contamination, making them invaluable assets for both largescale producers and smaller businesses alike.

They capitalize on the principles of immunochromatography to detect the presence of Listeria monocytogenes in food samples. The process begins with the sample being applied to a specialized test strip containing immobilized antibodies specific to Listeria antigens. As the sample migrates along the strip, any Listeria cells present bind to the antibodies, forming

a visible line, much like a bar on a pregnancy test.

The true brilliance of lateral flow assays lies in their simplicity and speed. With no need for specialized equipment or extensive training, these assays can be performed virtually anywhere, from production floors to remote field sites. Moreover, results are typically obtained within minutes, allowing for rapid decision-making and immediate corrective actions if contamination is detected.

However, lateral flow assays may have lower sensitivity compared to other testing methods and are prone to falsenegative results, particularly at low target concentrations. Optimization of assay design and performance validation are necessary to ensure accuracy and reliability.

SENSOR TECHNOLOGY

Sensors are ingenious devices designed to detect specific analytes or environmental changes and convert them into measurable signals in real-time. They can target various parameters associated with bacterial presence, such as pH, temperature, conductivity, and specific biomarkers.

The technology stands out in its versatility and adaptability. Sensors can be integrated into various stages of the food production process, from raw material inspection to finished product testing, providing continuous monitoring and immediate feedback. Furthermore, miniaturization and wireless connectivity advancements have enabled the development of portable and IoT-enabled sensors, empowering food producers to monitor their facilities in realtime and respond swiftly to potential risks.

One of the most promising applications of sensor technology in Listeria detection is the development of biosensors. These

specialized devices harness the power of biological molecules, such as antibodies or enzymes, to selectively capture and detect Listeria cells with exquisite specificity. By coupling biological recognition elements with transduction platforms, such as electrochemical, optical, or piezoelectric sensors, biosensors offer rapid, sensitive, and label-free detection of Listeria in complex food matrices.

Recent developments in biosensor technology have further expanded its applicability and performance in Listeria detection. For example, researchers at the University of Georgia (UGA) College of Engineering have developed a novel biosensor-based rapid diagnostic test for Listeria monocytogenes in food. This method utilizes bacteriophages—viruses that exclusively infect and replicate certain bacteria—as bioreceptors to identify L. monocytogenes using an electrochemical sensor. The bacteriophages' specificity enables the detection of L. monocytogenes with minimal interference from other biological agents. Once the bacteriophages attack their target pathogen, they translate its biochemical information into an electrical signal, alerting users to microbial contamination.

HARNESSING CHEMILUMINESCENCE

Among the array of innovative methods, chemiluminescence, rooted in the chemistry of light emission, stands out as a model of precision and efficiency, offering unparalleled capabilities in detecting and controlling Listeria in the food industry. Chemiluminescence

CHEMILUMINESCENT

PROBES HAVE PROVEN TO BE ABOUT 600 TIMES MORE SENSITIVE THAN CONVENTIONAL FLUORESCENCE PROBES.

is a phenomenon where light is emitted as a result of a chemical reaction. In Listeria detection, chemiluminescent assays leverage this phenomenon to detect the presence of Listeria cells in food samples. The process begins with binding specific antibodies or aptamers to Listeria antigens, followed

by introducing chemiluminescent substrates that produce light upon interaction with enzymatic or chemical markers.

Unlike traditional methods that rely on visual or colorimetric signals, chemiluminescent assays offer quantifiable and highly sensitive detection of Listeria, even at low concentrations. This heightened sensitivity is crucial in ensuring the safety of high-risk foods, such as readyto-eat products, where even a small number of Listeria cells can pose significant health risks. According to NEMIS Technologies, one of the Top 15 Swiss Biotech Startups (2021), chemiluminescent probes have proven to be about 600 times more sensitive than conventional fluorescence probes. Additionally, chemiluminescent assays enable rapid analysis and automation, streamlining the testing process and reducing turnaround times to about six to eight hours. Food producers can achieve highthroughput screening of samples with minimal manual intervention by coupling chemiluminescent detection with advanced instrumentation, such as luminometers or microfluidic platforms, enhancing efficiency and productivity.

As we reflect on the array of tools at our disposal, it becomes clear that no single approach holds all the answers. Rather, the synergy of these diverse technologies, each offering its unique strengths and capabilities, empowers us to confront the challenge of Listeria contamination with confidence and resolve. Ongoing technological advancements, coupled with a commitment to collaboration and innovation, will continue to push the boundaries of what is possible, paving the way for even more effective strategies to detect, prevent, and control Listeria in the food industry.

Report ndustry

Ethiopian Coffee Chronicles: From Tradition to Transformation

By Nicholas Ng'ang'a

Ethiopia, the birthplace of coffee, continues to hold a prominent position in the global coffee industry, contributing approximately 17% of the world's coffee supply. Renowned for its diverse and high-quality coffee varieties, the country faces both opportunities and challenges in maintaining its legacy and expanding its market share. Coffee remains deeply ingrained in Ethiopian culture, not just as a beverage but as a vital part of social rituals and traditions. Historically, coffee cultivation began in the wild forest conditions of the Kaffa region.

Over time, cultivation practices have evolved, incorporating garden and plantation systems that enhance productivity and quality. The formalization of coffee cooperatives and the establishment of the Ethiopian Commodity Exchange (ECX) have further integrated Ethiopia into the global coffee market, improving transparency and market access for smallholder farmers. This report will look deeply into the specifics of Ethiopia’s coffee sector, including production practices, economic impact,

market dynamics, challenges, and future projections, providing industry experts with a comprehensive overview of Ethiopian coffee's current state and potential trajectory.

ETHIOPIAN COFFEE IN NUMBERS

According to the United States Agency for International Development (USAID), agriculture plays a crucial role in Ethiopia's economy, contributing 40% of the country's GDP. It accounts for 80% of Ethiopia's exports and employs about 75% of the workforce. The country stands as the world's fifthlargest coffee producer and Africa's leading coffee producer, with an annual export output of 3.92 million 60 kg bags.

Coffee cultivation involves over 4 million small-scale farmers across approximately 4,000 square kilometers of land, though the fragmented nature of farms makes precise measurement challenging. An interesting fact is that of all the coffee produced, half is consumed locally, making Ethiopia the leading coffee consumer on the continent.

According to multiple reports, the traditional methods of coffee production have largely remained unchanged, with most cultivation and drying processes done by hand to date. Ethiopian coffee is categorized into three types based on production methods: Forest Coffees from wild trees mainly in the southwest, Garden Coffees grown around homes, and Plantation Coffees from large, intensively farmed plantations.

Additionally, coffee exports contribute to around 35 % of Ethiopia's annual government revenue. Despite the industry's importance, there are deliberate efforts to diversify the economy by boosting the manufacturing sector. The Tea

and Coffee Authority, a federal body, oversees the coffee and tea sectors, including setting the prices at which washing stations buy coffee from farmers. This pricing control originates from a past nationalization policy that transferred washing stations to farmers' cooperatives. The domestic coffee market is tightly regulated to prevent monopolies through a licensing system.

THE RICH MOSAIC OF ETHIOPIAN COFFEE FLAVORS

The diversity of Ethiopian coffee varieties is a testament to its status as the birthplace of coffee, with thousands of heirloom varieties that have evolved over centuries. Understanding these varieties is essential for appreciating the full spectrum of Ethiopian coffee’s distinctive qualities.

Ethiopian Coffea arabica beans are typically classified into three main categories: Longberry, Shortberry, and Mocha. Longberry beans are the largest among Ethiopian coffee beans and are often regarded as the highest quality in value and flavor. These beans are highly sought after for their superior size and rich, complex flavors. Shortberry beans are smaller than Longberry beans but are still considered a high-grade variety,

particularly in Eastern Ethiopia, where they originate. Despite their smaller size, Shortberry beans are valued for their quality and the robust flavors they deliver.

The Mocha variety, particularly the Mocha Harar type, is highly prized. Mocha Harar beans are notable for their peaberry form, a natural mutation in which the coffee cherry produces a single round bean instead of the usual two flatsided beans. These peaberry beans are celebrated for their intricate flavor profile, including complex chocolate, spice, and citrus notes.

A FLOURISHING TRADE

Ethiopia's coffee exportation likely began in the 17th century, gaining significant traction in the 19th century. Over the years, the country has reaped substantial benefits from coffee, experiencing both highs and lows in the industry.

In recent years, the Ethiopian coffee sector has seen positive revenue generation and production developments. According to the Ethiopian Coffee and Tea Authority (ECTA), coffee exports generated US$835 million in revenue over the past nine months, with 174,596 tons of coffee exported in the 2023/24 fiscal year. The preceding fiscal year saw coffee export

revenue surpassing US$1.3 billion, with projections indicating an increase to US$1.75 billion by the end of the current fiscal year.

This is partly in line with the projected numbers provided by the USDA Foreign Agriculture Service (FAS) report last year. The report anticipated that the country’s production for the 2023/24 period would hit 8.35 million 60-kilo bags, a slight uptick from the revised estimate of 8.27 million bags for 2022/23.

Export projections stood at 4.83 million bags for the upcoming period, slightly increasing compared to the 4.82 million estimated for 2022/23. To top it off, the report forecasted Saudi Arabia and Germany to be leading importers. This would be followed by Japan, the United States, and Belgium.

The European Union accounts for about half of Ethiopian coffee exports, while East Asia and North America take up a quarter and smaller portions respectively. Shafi Oumer, the Deputy

Director-General of ECTA, noted that while Ethiopia continues to export coffee to its traditional markets (Saudi Arabia, South Korea, the United States, Germany, and Japan), it has successfully tapped into new international markets in recent years. Notably, China, the United Arab Emirates, and Sudan are emerging as significant importers of Ethiopian coffee.

MAJOR ETHIOPIAN COFFEE EXPORT PLAYERS

Ethiopia’s coffee export industry is driven by a select group of top exporters who are pivotal in sourcing, processing, and marketing Ethiopian coffee globally. These companies leverage extensive experience, networks, and resources to uphold the reputation of Ethiopian coffee for quality and authenticity.

One of the main Ethiopian exporters is AMG Coffee. This renowned company stands out as a distinguished coffee export company in Ethiopia, boasting a flawless 5-star rating on Google. With over 13 years of experience, the company has established an active involvement in the industry, especially within key coffee associations in the country the Ethiopian Coffee Exporters Association and Ethiopian Pulses & Oil Seed Exporters Association. According to founder and CEO Mr. Abdulhakim Mohammed Geleto, the company exports 6 main products from Ethiopia; Ethiopian Limu Coffee, Ethiopian Yirgacheffe, Ethiopian Sidamo, Ethiopian sesame seeds, and chickpeas.

Another key industry player is Mullege PLC. They directly export green coffee from their own plantations and those of associated growers. With years of experience in the coffee sector, they specialize in exporting a diverse range of coffee varieties from various regions, spanning from standard to specialty grades.

Still on major exporters, Lucy Ethiopia also stands out. The family-

owned enterprise has roots running deep in the industry, bringing with it years of experience. Their global reach ensures that customers receive nothing short of top-tier coffee, achieved through close collaboration with Ethiopian farmers.

Lastly, there is the recently established Heleph Coffee. Founded in 2018, the company has quickly become a respected Ethiopian coffee producer and exporter. They specialize in getting coffee from specific areas like Sidama, Yirgacheffe, and Guji regions. In a span of six years, the company has established a strong connection with thousands of farmers in these three regions.

COMBATING DEFORESTATION

While the Ethiopian coffee industry thrives in many respects, it faces significant challenges, the most pressing being deforestation. The country’s coffee is traditionally grown in forested areas under a canopy of native trees, which provide essential shade and contribute to the unique flavor profiles of Ethiopian coffee. However, increasing deforestation due to agricultural expansion, logging, and population growth is leading to the loss of these critical forest ecosystems. In fact, projections indicate that Ethiopia could lose up to 60% of its coffee-growing regions this century.

Deforestation reduces the land available for coffee cultivation and disrupts local biodiversity and water cycles, which are essential for maintaining coffee quality and yield. In response, the Ethiopian government, in collaboration with the United Nations Development Programme (UNDP) and the Global Environment Facility (GEF), launched the "Preventing Forest Loss, Promoting Restoration, and Integrating Sustainability into Ethiopia's Coffee Value Chains & Food

Systems" (FOLUR) project.

Launched earlier this year by Minister of Planning and Development Fitsum Assefa, the FOLUR project aims to curb forest loss, promote forest restoration, and integrate sustainability into the coffee value chain. The project seeks to avoid 7,288,195 tons of CO2 equivalent emissions through sustainable practices, positively impacting 440,000 households by enhancing the economic value of coffee production.

The initiative also aims to restore 10,500 hectares of unproductive coffee gardens, rehabilitate degraded lands, improve soil health, and adopt agroforestry practices that combine coffee cultivation with native tree species. Additionally, it targets bringing 2,031,502 hectares of land under improved land use practices.

GEA Group reports 2.7% surge in revenue despite market challenges

GERMANY – GEA Group AG has continued its trajectory of profitable growth in Q1 2024, recording a 2.7 percent growth in revenue and a one-percentage-point increase in the EBITDA margin despite challenges posed by the persistently demanding market environment.

GEA reported a 13.6 percent

ACQUISITION

decrease in order intake for Q1 2024, dropping to EUR 1,365 million (US$192.87M) from EUR 1,581 million (US$223.42M) in the previous year.

While order intake saw a decline, revenue experienced an organic growth of 2.7 percent, settling at EUR 1,241 million (US$175.35M) compared to

EUR 1,271 million (US$179.59M) in Q1 2023.

The increase in revenue was driven notably by several divisions, including Separation & Flow Technologies, Farm Technologies, and Heating & Refrigeration Technologies.

CEO Stefan Klebert said, “We are delighted to have started 2024 with very good results. That is remarkable considering the current market environment. This performance reflects the strength of our business model.”

The company’s strategic focus remains clear, with the progression of its share buyback program and the overwhelming shareholder approval of its Climate Transition Plan 2040.

Emergent Cold LatAm inaugurates ‘Chile’s largest frozen food warehouse

CHILE – Emergent Cold Latin America (Emergent Cold LatAm), a leading provider of temperature-controlled logistics and storage for food in Latin America and the Caribbean, has inaugurated Chile’s largest frozen food warehouse in Talcahuano.

This facility marks Emergent Cold LatAm’s most substantial expansion in the region with a storage capacity of 294,000 m³ and 37,000 pallets.

The facility will enhance Chile’s cold chain infrastructure, particularly in a region globally acclaimed for its seafood and fruit production and exports.

Joaquín Del Campo, Managing Director for the Pacific Region at Emergent Cold LatAm said, “The increase in mackerel quotas and the growth in Coho salmon and IQF fruit

production require enhanced capacity for temperature-controlled storage, perfectly aligned with this new facility.”

Upon completion, the warehouse is expected to generate 150 direct and approximately 500 indirect jobs, significantly boosting the local economy.

Emergent Cold LatAm plans to double the current availability of cold storage capacity in the Concepción region by early 2025.

The company operates over 70 cold storage facilities across 11 countries in Latin America.

Döhler expands Paarl Manufacturing Plant in South Africa

SOUTH AFRICA - Natural ingredients company Döhler has announced plans to expand its Paarl manufacturing plant in South Africa to enhance product availability and expand its customizable ingredient variety.

The expansion will introduce new production lines for compounds, emulsions, and flavor offerings. The expanded manufacturing facility is also expected to increase the company's bulk juice concentrate processing capacity.

According to Döhler, the facility's R&D labs will help foster product development and improvement, which would allow the tailoring of ingredients according to market preferences and trends.

The expansion is also expected to allow customers direct access to the ingredient company's complete portfolio in South Africa, improving market accessibility.

Akram Sabbah, Döhler's General Manager for Southern & Eastern Africa, said, "The Paarl plant has been an integral part of Döhler's success in Africa. This expansion reflects our

dedication to meeting the evolving needs of our customers, and it positions us for even greater accomplishments in the future."

The announcement is part of Döhler's two-cannon growth and expansion strategy. The first important cannon is product development through the expansion of production and product development capabilities.

Strategic partnerships are the second cannon of the company's innovationdriven growth and expansion strategy.

DÖHLER

HAS ANNOUNCED PLANS TO EXPAND ITS PAARL MANUFACTURING PLANT IN SOUTH AFRICA TO ENHANCE PRODUCT AVAILABILITY.

USA’s Ingredion reports 12% plunge in revenue in Q1 2024

USA – Ingredion has reported a revenue of US$1.88 billion during the first quarter of 2024, marking a 12% decline from the same period in 2023.

Despite the drop in revenue, Ingredion recorded a net income of US$216.0 million, showing a notable 13% increase from the first quarter of the previous year.

The company’s profit margin also saw a significant boost, rising to 12% from 8.9% in 1Q 2023, driven primarily by reduced expenses.

Furthermore, earnings per share (EPS) surged to US$3.29, up from US$2.89 in the first quarter of 2023.

Ingredion expressed confidence in the company’s ability to navigate the evolving market landscape and drive sustainable growth in the coming years.

Looking ahead, Ingredion anticipates a modest average annual revenue growth rate of 2.6% over the next three years.

GEA breaks ground on technology center for alternative proteins

USA – GEA, a leading provider of food processing technology, has commenced construction on its state-of-the-art technology center for alternative proteins in Janesville, Wisconsin.

This facility, dedicated to producing plant-based, microbial, and cell-based foods, is set to revolutionize the food industry’s approach to sustainability and innovation.

Arpad Csay, GEA’s Senior Director of New Food North America, emphasized that the technology center will serve as a vital platform for foodtech businesses to develop and refine their processes, ensuring both technological and commercial viability.

Moreover, it offers startups in the sector the opportunity to implement business strategies with minimal upfront investment, thereby accelerating the development of market-ready products.

Blupura unveils Bultron Action filtration system for enhanced water quality

ITALY – Blupura, an Italian manufacturer and distributor renowned for water treatment products, has launched its latest innovation, the Bultron Action filtration system.

This new system is specifically engineered to elevate the water quality for coffee machines, beverage dispensers, steam ovens, and combination ovens. The filtration system incorporates Blupura’s cutting-edge 0.5-micron carbon block technology, aimed at removing chlorine and enhancing water taste.

One of the key features of the Bultron Action is its integrated bypass system with four levels, offering users the flexibility to customize water treatment by up to 70 percent.

This customization capability allows users to strike the perfect balance between equipment protection and water quality, catering to their specific needs.

Moreover, the filtration system eliminates unpleasant odors and flavors while lowering the water’s pH, thereby enriching the taste of beverages, especially coffee.

According to Blupura, this step is crucial as chlorine can potentially hinder the effectiveness of the system’s highefficiency ion exchange resin, which plays a pivotal role in reducing temporary water hardness and preventing limescale build-up.

NEW

IFF launches co-creation center in Netherlands

NETHERLANDS – International Flavors & Fragrances Inc. (IFF) has announced the inauguration of a new co-creation center in Wageningen, the Netherlands.

The facility situated in the renowned ‘Food Valley’ region aims to foster collaboration and drive insights-led innovation in the food industry.

Laurens Reiber, Regional Creation and Design Director, Europe, IFF said, “This space brings us closer to our key customers, driving engagement, and enabling them to co-create with us onsite and in-person.”

Furthermore, the Food Valley is a thriving innovation ecosystem, and coupled with access to academia, we can now strengthen our collaboration on projects exploring the future of food.”

The proximity of the center to Wageningen University will facilitate close collaboration between IFF and academia, leveraging cuttingedge research and expertise to drive innovation in food products.

The center’s state-of-the-art facilities include advanced laboratory equipment,

a demo kitchen, an application lab, and innovation space, providing a conducive environment for product development and testing.

With key experts and senior product designers stationed at the center, IFF aims to provide tailored support to its customers and facilitate collaborative ideation sessions to develop innovative solutions.

“THIS SPACE BRINGS US CLOSER TO OUR KEY CUSTOMERS, DRIVING ENGAGEMENT, AND ENABLING THEM TO CO-CREATE WITH US ON-SITE AND INPERSON.”

Tetra Pak introduces sustainable homogenizers crafted with lowemission stainless steel

SWEDEN – Tetra Pak has announced the expansion of its homogenizer portfolio with the introduction of machines crafted with Outokumpu Circle Green stainless steel.

The incorporation of Circle Green stainless steel aligns with Tetra Pak’s commitment to sustainability and will be available as an option for all homogenizer models in Europe starting June, with a global rollout planned later this year.

Tetra Pak’s introduction of homogenizers crafted with Circle Green stainless steel aims to offer a tangible solution to reduce emissions in the food and beverage industry.

The homogenizers aim to provide manufacturers with an avenue to decrease their Scope 3 emissions, thereby facilitating progress towards

net-zero emissions goals. Depending on the model, the utilization of Circle Green stainless steel can lead to substantial reductions in CO₂ emissions, ranging from 160kg to 1370kg per machine.

Niklas Wass, Executive Vice President for Stainless Europe at Outokumpu,

said: “Low-emission stainless steel is at the heart of sustainability solutions across the world. It plays a pivotal role in accelerating the green transition, and the food and beverage industry is a good example of where low-emission steel can have a significant impact.”

Ingredion launches PURECIRCLE Clean Taste Solubility Solution

US – Ingredion Incorporated has announced the introduction of PURECIRCLE Clean Taste Solubility Solution (CTSS), a clean label stevia innovation poised to transform the landscape of sugar reduction in food and beverages.

This solution boasts exceptional

solubility, surpassing traditional stevia alternatives such as Reb M by over 100 times.

The solution, considered a natural origin sweetener, mirrors the sensory experience of sugar without the need for additives during the manufacturing process. Its versatility allows for

application across various product categories, including beverages, fruit preps, syrups, liquid concentrates, bars, and sauces.

Its non-GMO and non-caloric properties ensure ease of use for food and beverage manufacturers without additional steps or interruptions to production processes.

Nate Yates, CEO of PureCircle by Ingredion stated, “With PureCircle Clean Taste Solubility Solution, we’ve overcome this challenge with a steviaonly ingredient that differs from other current market offerings.”

Consumer trends indicate a growing emphasis on health and wellness, with a significant portion of global consumers willing to pay more for products with sugar reduction claims.

Corbion divests emulsifier business for US$362M

US – Kingswood Capital Management LP, a private investment firm, has successfully completed the acquisition of Corbion’s emulsifier business for a cash purchase price of US$362 million.

As part of the acquisition, the business will be renamed as Patco. This move marks Kingswood’s strategic

expansion into the emulsifier market and reinforces its commitment to driving growth in this sector.

The acquisition comprises two manufacturing plants located in the United States. The emulsifier business caters to customers in both the food and non-food sectors, primarily across

Atlas Copco reports stellar Q1 performance

SWEDEN – Atlas Copco, a Swedish multinational industrial company, has announced a robust performance for the first quarter, surpassing expectations with a strong order intake and profit.

The company predicts that demand will remain at the current level in the near term, despite certain fluctuations in specific segments.

Atlas Copco highlighted the solid demand for its equipment and services, although the order intake did not reach the exceptionally high level of the previous year’s comparison quarter.

The company noted an increase in the order intake for vacuum equipment for the semiconductor industry, while orders for industrial and scientific vacuum equipment experienced a decrease.

Company revenues reached SEK 42,875 million (US$3.92M),

North America.

Olivier Rigaud, CEO of Corbion said, “We are confident that the emulsifier business will be in good hands under Kingswood’s stewardship and will receive strong support from their new owners.”

Patco operates two manufacturing facilities in the US, serving customers in various industries including food, polymer additives, pet food, personal care, and pharmaceuticals.

John Miller will continue to lead the company as CEO, ensuring continuity and stability during the transition period.

With the divestment of the emulsifier business, Corbion aims to streamline its operations and strengthen its position in key growth areas.

with organic growth at 7 percent. The operating profit also saw a 7 percent increase to SEK 9,345 million (US$854,507.08).

The company attributed the higher margin in the compressor business to increased organic revenues, despite negative currency effects and minor

dilution from acquisitions.

In the vacuum technique business, revenues slightly decreased organically by 3 percent, reaching SEK 9,719 million (US$888,705.65), with an operating profit of SEK 2,119 million (US$193,761.42).

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

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