Food Business Africa Jan/Feb 2019

Food Business

WWW.FOODBUSINESSAFRICA.COM

JAN/FEB. 2019 NO. 34

AFRICA’S NO.1 FOOD, BEVERAGE & MILLING INDUSTRY MAGAZINE

INSIDE: MY FACTORY • MY STORY

GLACIER PRODUCTS LTD:

ICE CREAM AND CHOCOLATES KING COMPANY REVIEW

COCA-COLA: CHANGING WITH THE TIMES TO A TOTAL BEVERAGE COMPANY COUNTRY FOCUS

FOOD, BEVERAGE & MILLING INDUSTRY IN TANZANIA

MY CORPORATE JOURNEY

Lucy Manning

Tanzania Breweries

Liliane Umuhumuza

Africa Improved Foods

Fred Otieno

East African Breweries Ltd AFMASS CONFERENCE & EXPO EVENTS IN AFRICA IN 2019 AFMASS FOODTECH TANZANIA EDITION - MARCH 29-30 AFMASS EASTERN AFRICA EDITION - KENYA - MAY 16-18 CONFERENCES & EXHIBITIONS

AFRICA HAPPENS AT AFMASS TM

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AFMASS FOODTECH RWANDA EDITION - JULY 11-12 AFMASS SOUTHERN AFRICA EDITION - ZAMBIA - OCTOBER 3-5

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How can we help you?

We are the world’s leading Food & Agri bank ¶

Rabobank Africa

We offer: P Trade and Commodity Finance P Equipment/Export Finance P Corporate Banking

Balance Sheet* Number of Employees 43,000

Network

Tier 1 Capital

Rabobank Global presence with offices in 40 countries and coverage of 50+ countries.

Total assets

€ 603 bln

Loan book

€ 408 bln

€ 37 bln

* 2017

Rating

Rabobank – Kenya Representative Office Tel: +254 202 955000; Corporate Banking: Kees.Verbeek@rabobank.com Trade and Commodity Finance: Wouter.Kool@rabobank.com Equipment/Export Finance: Peter.Maaskant@rabobank.com

Rating agency

Long term Rating

Moody’s S&P Global Fitch DBRS

Aa2 A+ AAAA

Tanzania's first Food, Beverage & Milling Conference & Expo F O O D T E C H CONFERENCE & EXPO TA N Z A N I A E D I T I O N

March 29 -30 2019

Serena Hotel, Dar es Salaam, Tanzania

KEY SPEAKERS What will drive the future of

the food, beverage & milling industry in Tanzania?

Fatema Dewji

Marketing Director, METL Group As the Marketing Director of Tanzania's diversified food and agro producer METL Group - with interests in agriculture, manufacturing, trading and more - Fatema Dewji will provide perpectives on how companies will market their products and win in the future in Tanzania's food, beverage and milling industry.

Gary Pay Manufacturing Director, Coca-Cola Kwanza

Lucy Manning Regional Quality & Brewing Manager, AB-InBev

Hassan Swedi Project Manager, Dairy Business Development Unit, Asas Dairies

CONFIRMED SPONSORS & PARTNERS

FREE ENTRY BOOK NOW

| www.afmass.com

CONFERENCES & EXHIBITIONS

AFRICA HAPPENS AT AFMASS TM

AFRICA FOOD MANUFACTURING & SAFETY SUMMIT

Discover Africa at the region's Largest Food, Beverage & Milling Industry Conferences & Exhibitions DISCOVER • NETWORK • BE INSPIRED The food, beverage and milling manufacturing, retail and food-service industry is truly on an upswing in Africa.

And with it, the compexity and the need for more efficiency, productivity, food safety, sustainability, nutrition and compliance to regulatory and customer requirements.

With several editions planned across sub-Saharan Africa, AFMASS Conferences & Exhibitions bring together industry leaders, Government agencies, suppliers, NGOs/development agencies, researchers and academicians to shape the future of the food value chain in Africa.

AFMASS Conferences & Exhibitions, now in the 5th year, have brought together over 6,000 people and more than 180 speakers from over 80 countries in high-impact conference sessions that continue to drive the agenda of change and innovation across the Continent.

At the Exhibition Hall, AFMASS Conferences & Exhibitions attract some of the world's leading suppliers of milling and processing equipment, packaging, laboratory solutions, engineering and automation, financial and other industry services - offering a one stop shop of the most diversified solutions targeted at Africa's growing industry.

Seeking to discover the pulse of Africa?

Come on. Register today to discover the Africa's industry, its people and market trends at an AFMASS Conference & Exhibition event near you.

WWW.AFMASS.COM

AFRICA HAPPENS AT AFMASS TM

ETHIOPIA MARCH 19-21, 2020

NIGERIA

KENYA

APRIL 22-24, 2021

MAY 16-18, 2019

UGANDA MAY 28-30, 2020

TANZANIA RWANDA

MARCH 29-30, 2019

JULY 11-12, 2019

REGISTRATION OPEN. FOR REGISTRATION & SPONSORSHIP/ EXHIBITION OPPORTUNITIES, CONTACT: INFO@FOODWORLDMEDIA.NET OR CALL: +254 725 34 39 32

ZAMBIA OCTOBER 3-5, 2019

CONTENTS ON THE COVER

Food Business

WWW.FOODBUSINESSAFRICA.COM

JAN/FEB. 2019 NO. 34

AFRICA’S NO.1 FOOD, BEVERAGE & MILLING INDUSTRY MAGAZINE

INSIDE: MY FACTORY • MY STORY

GLACIER PRODUCTS LTD:

ICE CREAM AND CHOCOLATES KING COMPANY REVIEW

COCA-COLA: CHANGING WITH THE TIMES TO A TOTAL BEVERAGE COMPANY COUNTRY FOCUS

FOOD, BEVERAGE & MILLING INDUSTRY IN TANZANIA

GLACIER PRODUCTS LIMITED: Eastern Africa’s leading ice cream and chocolate maker After abandoning a business in garments over 23 years ago to venture into ice cream production, Glacier Products Ltd has grown in leaps and bounds, on the way delighting, enchanting and tantalizing their customers with world class products while achieving formidable milestones. Food Business Africa team recently paid the leading ice cream and chocolate maker a visit to hear their journey it has made in cooling palates and enthralling moods from the company’s Managing Director, Dipam Shah

MY CORPORATE JOURNEY

Lucy Manning

Tanzania Breweries

Liliane Umuhumuza

Africa Improved Foods

Fred Otieno

East African Breweries Ltd AFMASS CONFERENCE & EXPO EVENTS IN AFRICA IN 2019 AFMASS FOODTECH TANZANIA EDITION - MARCH 29-30 AFMASS EASTERN AFRICA EDITION - KENYA - MAY 16-18 CONFERENCES & EXHIBITIONS

AFRICA HAPPENS AT AFMASS TM

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AFMASS FOODTECH RWANDA EDITION - JULY 11-12 AFMASS SOUTHERN AFRICA EDITION - ZAMBIA - OCTOBER 3-5

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Africa’s Largest Food, Beverage & Milling Industry Conferences & Expos

Read this and other past issues of this magazine on www.foodbusinessafrica.com

REGULARS

6 8 10 12 14 30 40 62 68

COMPANY REVIEW: Coca-Cola

Editorial Events Calendar World in Numbers AFMASS FoodTech Conference & Expo, Dar es Salaam - March 29-30, 2019 International & African News IAOM Pictorials New Products on the Shelf My Corporate Journey: Liliane Umuhumuza, AIF; Lucy Manning, ABInBev; Fred Otieno, EABL. Supplier News

MY FACTORY • MY STORY: Glacier Products Ltd

56

TRENDS: Ancient Grains

34

43

ARTICLES

COUNTRY FOCUS: Food Industry in Tanzania 51

IN THE NEXT ISSUE MY FACTORY • MY STORY Bakex Millers Ltd | African Coffee Roasters

COUNTRY FOCUS : Dairy industry in Kenya DAIRY BUSINESS AFRICA: Fat reduction in dairy BEVERAGE TECH AFRICA: Natural colours COUNTRY FOCUS : Nestle OPERATIONS : Compressed air 6

JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

FOODBUSINESSAFRICA.COM

BETTER BUSINESS THROUGH BETTER SCIENCE.

Contact: East and West Africa Soumeya LOUCIF +254 (0) 791 406 552 soumeya.loucif@biomerieux.com

With so many points of potential contamination in dairy and beverage production, quality control is paramount. Your customers safety – and your company’s reputation – depend on knowing your product is free of pathogens and spoilage organisms. bioMérieux’s microbiology testing solutions offer a rapid, streamlined workflow that improves your bottom line – and most importantly, delivers results you can count on.

Nigeria and Central African regions Olugbenga ABIODUN +234 908 744 0240 olugbenga.abiodun@ext.biomerieux.com

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JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

7

EDITORIAL

Welcome to Tanzania – Discover the opportunities in East Africa’s largest potential market place

A

t the end of this month, we shall be opening a new location for our growing AFMASS Conferences & Exhibitions by hosting the first edition of the event in Tanzania Set for March 29-30, 2019 at the Dar es Salaam Serena Hotel in the centre of the bustling city of Dar es Salaam, AFMASS FoodTech Tanzania edition will be the first substantive food, beverage and milling industry trade event in Tanzania A country with vast potential, Tanzania is East African Community’s largest and most populated country. With nearly 56 million people and a vast land that covers 947,300 square kilometres, Tanzania has rich agricultural resources – from maize, rice, oilseeds and legumes, to animal resources – and a thriving food manufacturing, retail and hospitality that continue growing, with huge opportunities for investors to tap into.

The UN estimates that Tanzania’s population will more than double to hit 137 million people. Dar es Salaam, the country’s capital city is among the top five metropolises in Africa, and will continue to be a major population powerhouse into 2050 and beyond.

World Population Review notes that the city is one of the fastest-growing in Africa, the third fastest-growing in Africa and the ninth fastest-growing city in the world. The city’s metro population is expected to grow from over 6 million over today and to grow

so much that Dar es Salaam is expected to be the second largest city by population in the world by 2100, with a predicted population of 76 million, driven by the annual growth rate and rapid urbanization.

AFMASS FoodTech Tanzania edition is poised to fill a void that has existed for a long time in the food, beverage and milling industry in Tanzania – a technical and commercial trade conference and exhibition where the industry stakeholders, Government regulatory authorities and policy makers, suppliers to the industry, NGO/development organisations, academicians and researchers can all come together to shape the future of the industry in Tanzania.

With delegates and visitors expected to come from over 10 countries, we believe that with the packed program, the right crowd and a pleasant and welcoming venue, AFMASS FoodTech Tanzania will make its mark as the forum where the food industry stakeholders can all meet up every two years to network, trade and learn.

We welcome all to sign up and join us in Tanzania.

In this issue – Glacier Products, Coca-Cola and more In this issue, our My Factory • My Story company feature zooms in on Eastern Africa’s largest ice cream producer

We believe that AFMASS FoodTech Tanzania will make its as the forum where the food industry in Tanzania will meet up every two years to network, trade and learn.

Glacier Products Ltd, which also has the rare distinction of the only large-scale chocolate processor in the region. Through determination, innovations and drive, the company has made great strides in the tough business climate, and has ambitions to do more.

Further, we have reviewed the world’s largest soft drinks producer Coca-Cola, as it seeks to diversify its portfolio from reliance on sugar-sweetened beverages while changing the culture in the organization and its structure.

In our country profile, we review the food, beverage and milling industry in Tanzania – one of Africa’s critical economies and whose agricultural potential beats most African countries. Plus many more articles and features.

Have a good read Francis Juma Publisher.

SUBSCRIPTION

Email: info@foodworldmedia.net

www.foodbusinessafrica.com Volume 7 Issue 1, No.34 • ISSN 2307-3535

FOUNDER & PUBLISHER Francis Juma EDITORIAL Godfrey Anunda | Clement Muriuki ADVERTISING & SUBSCRIPTION Jonah Sambai | Lavender Atieno | Hellen Mucheru CONTRIBUTORS Virginia Nyoro | Ronald Onsare

FoodWorld Media P.O Box 1874-00621, Nairobi Kenya Tel: +254 20 8155022, +254 725 343932 info@foodworldmedia.net www.foodworldmedia.net

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JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

Food Business Africa (ISSN 2307-3535) is published 6 times a year by FoodWorld Media Ltd. The magazine is distributed for free to food, beverage, milling and foodservice companies and Government regulatory agencies in Africa. The magazine is available through paid subscription for the other stakeholders in the food chain, including suppliers to the sector.

Copyright 2018. Reproduction of the whole or any part of the contents without written permission from the editor is prohibited.

All information is published in good faith.

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

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EVENTS CALENDAR EVENT HIGHLIGHT:

AFMASS FOODTECH TANZANIA EDITION

Introducing AFMASS FoodTech Conference & Exhibition Tanzania edition - Tanzania's first food, beverage and milling industry conference and expo.

Set to be held at the the magnificent Dar es Salaam Serena Hotel in the centre of the bustling capital city Dar es Salaam on March 29-30, 2019, the event is targeted at boosting processing, packaging and food safety in the growing industry in Tanzania - one of Eastern Africa's most critical economies with enormous potential for future growth.

Sign up today to be part of the netork of industry leaders, Government regulators, NGOs and suppliers to the industry who will shape the growth of the manufacturing, retail and HORECA industry in Tanzania. Limited slots available.

Register today at www.afmass.com

February 12-14, 2019

March 13-15, 2019

May 16-18, 2019

International Production & Processing Expo Atlanta, Georgia, USA Focus: Meat, poultry and animal feed www.ippe.org

VIV Asia Bangkok, China Focus: Meat, Poultry & Aquaculture www.viv.net

AFMASS Conference & Expo Eastern Africa Parklands Sports Club, Nairobi, Kenya Focus: Food, Beverage & Milling www.afmass.com

March 29-30, 2019

February 13-16, 2019 Biofach Germany Focus: Organic foods www.biofach.de

AFMASS Foodtech Conference & Expo Dar es Salaam Serena Hotel, Tanzania Focus: Food, Beverage & Milling www.afmass.com

February 17-21, 2019

May 4-9, 2019

Gulfood Dubai, UAE Focus: Food & Beverage www.gulfood.com

IFFA Focus: Meat www.iffa.messefrankfurt.com

May 7-9, 2019

February 19-21, 2019

Vitafoods Europe Geneva, Switzerland Focus: Nutrition, Health & Wellness www.vitafoods.eu.com

Beviale Moscow Moscow, Russia Focus: Beverages www.beviale-moscow.com

May 9-11, 2019

March 5-8, 2019

Seoul International Seafood Show Focus: Seafood www.seoulseafood.com

Foodex Japan Tokyo, Japan Focus: Food & Beverage www.jma.or.jp

May 14-16, 2019 SIAL China Focus: Food products www.sialchina.com

June 2-5, 2019 IFT & Food Expo New Orleans, USA Focus: Food & Beverage www.iftevent.org

July 11-12, 2019 AFMASS Foodtech Conference & Expo Kigali, Rwanda Focus: Food, Beverage & Milling www.afmass.com

October 3-5, 2019 AFMASS Conference & Expo Southern Africa Lusaka, Zambia Focus: Food, Beverage & Milling www.afmass.com

November 27-29, 2019 Drink Japan Japan Focus: Beverages www.drinkjapan.jp

For event listings, contact us at info@foodworldmedia.net for consideration.

Terms and conditions apply AFMASS CONFERENCE & EXPO EVENTS IN AFRICA IN 2019 AFMASS FOODTECH TANZANIA EDITION - MARCH 29-30 AFMASS EASTERN AFRICA EDITION - KENYA - MAY 16-18 CONFERENCES & EXHIBITIONS

AFRICA HAPPENS AT AFMASS TM

WWW.AFMASS.COM

AFMASS FOODTECH RWANDA EDITION - JULY 11-12 AFMASS SOUTHERN AFRICA EDITION - ZAMBIA - OCTOBER 3-5

FREE CONF & EXPO. SIGN UP NOW!

Africa’s Largest Food, Beverage & Milling Industry Conferences & Expos

5TH EDITION

EASTERN AFRICA K E N YA E D I T I O N

MAY 16-18, 2019 PARKLANDS SPORTS CLUB NAIROBI, KENYA Come celebrate with us at

Eastern Africa’s Largest Food, Beverage & Milling Industry Conference & Exhibition

Since 2013, one event has been defining the future of the food, beverage and milling industry in Africa: AFMASS Eastern Africa edition.

Celebrating its 5th year, welcome to experience a better and rejuvenated AFMASS Eastern Africa - with more networking opportunities including field visits, cocktails and dinners; more inspirational speakers; a bigger and more diverse Expo Hall with more technologies and solutions; and a new, better accessible venue in the centre of Westlands district of Nairobi!

With conference sessions that cover from investments to food safety, innovations, sustainability, nutrition and more, there is every reason to be at AFMASS Eastern Africa this year. Sign up today.

www.afmass.com CONFIRMED SPONSORS

POWERED BY:

9,000

UK

WORLD

CANADA:

CANADA:

US$8.2M

1.076B MT

World corn production estimates in tons for the year 2018/19

US$100M

Value of joint venture formed between AB InBev and Tilray for research in cannabis

Funding raised by Canadian SPUD to boost grocery delivery

Number of jobs to be cut by Tesco amidst UK store closures UK

US$4.3M

Amount offered by equity firm Apollo to buy packaging company RPC Group

50%

UK

Remaining percentage stake ADM has acquired in Gleadell JV CANADA:

US$29.6M

IRELAND

Funding unveiled by Canadian government to facilitate agric research

90%

Percentage decrease in acrylamide levels achieved by using Kerry’s new Acryleast USA

US$30M

IRELAND

Amount raised by MycoTechnology in series C financing co-led by ADM

4

USA

USA

2,000

US$159M

Amount to be invested

by Glanbia and Royal A-Ware in a new dairy facility in Ireland

US$35M

Amount received by BRF SA from the sale of Campo Austral to BOGs

Number of technology experts to be hired by Walmart to bolster ecommerce

6MMT

ALGERIA

USA

Algeria’s estimated cereals production in the year 2018/19, a 74.4% increase from last year

US$175M

Amount offered by ADM to acquire essential oils producer Florida Chemical Company

US$34M

NIGERIA

Amount that Frigoglass plans to invest in capacity and operations across Nigeria

GHANA

BRAZIL

115.5M

Estimated number in tonnes of soybeans produced by Brazil in 2018/19

US$78M

Amount invested by Hi Group to revive Komenda Sugar Factory

ANGOLA

US$30M

Amount offered by Swiss Webcor Group to buy Angolan dairy Lactiangol

ZAMBIA

ARGENTINA

US$55M

Amount offered by Marfrig to buy BRF’s Quickfood to grow its value-added product offerings

US$72M

Amount Green Crop company plans to invest in paprika plant and processing ARGENTINA

50M

Number of tonnes of soybeans imported by Argentina in 2018/19

SOUTH AFRICA

US$700M

Amount generated in 2018 by South Africa wine exports SOUTH AFRICA

US$9.51M

Amount raised by Taste Holdings from shareholders for expansion 12 JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

FOODBUSINESSAFRICA.COM

WORLD IN NUMBERS NORWAY

11.5B

ASIA

Amount in tons of seafood exported by Norway in the year 2018 DENMARRK

US$103.7M

Amount to be invested

by Walmart in a new food distribution centre in China

90%

PAKISTAN ASIA

Number of pigs culled

by China on African swine fever outbreak

Percentage stake acquired by Orkla Foods in Easyfood A/S

360

GERMANY

CHINA

Number of jobs to be lost on expected closure of Nestle’s 2 German locations

NETHERLANDS

INDIA

100%

INDIA

Loan facility taken by federal government from Brazil to boost agriculture

NIGERIA

5,700 MT

Amount of yam targeted to be exported by Nigeria in 2019

Amount offered by Royal DSM to acquire Chinese Andre Pectin

Number of people Burger Singh looks to employ with INDIA US$201.2M additional 100 outlets Amount received by Flipkart from parent company in race against Amazon THAILAND

INDIA

US$238.3M

Amount offered by French dairy Lactalis to acquire Prabhat Dairy

US$75M

SUDAN

CHINA

US$9.49M

Loan facility received by DAL Group from AfDB to bolster operations ETHIOPIA

US$7.1M

Amount invested by Dina Gezahegn to set up flour and biscuit plants KENYA

INDIA

US$171.4M

CHINA

5

430

Amount offered by Grover Zampa to purchase United Spirits’ and HCC’s wine assets

US$1.1B

US$200M

Number of GM crops approved by China amidst trade talks with US

Percentage of cocoa bean traceability Cargill targets to eliminate deforestation

NIGERIA

916,000

Cargill planned investment in Pakistan to grow its business

2,500

New stores Luckin Coffee targets to open in 2019 to compete Starbucks

60%

Percentage stake acquired by Frutarom in food ingredients firm The Mighty Co.

SINGAPORE

US$1.6B

Value of divestments in sugar, fertilizer, rubber planned by Olam International

US$20M

Amount Cargill plans to invest in a new greenfield premix facility in Rajasthan

AUSTRALIA

16.4MT

Record grain harvested by CBH Group across its network in 2018/19

US$10M

AUSTRALIA

10%

11.2% Amount of sugar Coca-Cola Amatil targets to reduce across its Oceana portfolio by 2020

Java House’s investment plan in the East Africa after Actis buy of Abraaj stake RWANDA

US$10M

10M – Amount in Euros received by Rwanda from EU to support agric expansion TANZANIA

UGANDA

US$13.4M

Investment made in a yet to be commissioned Teso Fruit Factory

US$86.4M

Government’s planned investment in a new grape processing plant ZIMBABWE

US112M

Amount generated from horticultural exports in 2018 AFRICA

NEW ZEALAND

US$15.1M

Westland Milk Products’ investment in a new dairy processing plant in New Zealand

US7.5M

AfDB’s investment in Africa Tech Ventures to boost consumer goods, logistics operations

FOODBUSINESSAFRICA.COM

JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA 13

Dar es Salaam Serena Hotel, Tanzania

AFMASS FoodTech Tanzania is here – Come discover the opportunities in East Africa’s silent giant Tanzania's first food, beverage and milling industry conference and expo takes place at Dar es Salaam

I

t's finally here! On March 29-30, 2019, we shall be opening the doors to AFMASS FoodTech Tanzania - the latest leg of AFMASS Conferences & Exhibitions.

Hosted at the Dar es Salaam Serena Hotel in the centre of the bustling city of Dar es Salaam, AFMASS FoodTech Tanzania edition will be the first substantive food, beverage and milling industry trade event in Tanzania.

Over two days, delegates from Tanzania and over 10 countries around Africa, Europe and Asia are expected to converge at the event to shape teh future of the food industry value chain in Tanzania - one of the most vibrant and high potential countries in sub-Saharan Africa.

"We excited that the food, beverage and milling industry key decision makers across Tanzania have already signed up in very good numbers to participate at this event, says Francis Juma, the team leader at FoodWorld Media, the organisers of the

event.

"We are encouraged with the response we have received from the companies we have visited and those that have reached out directly to enquire about attending the event and are confident this forst event will be a huge success," he added.

With confirmations from the Bakhresa Group of Companies, METL Group, Asas Dairies, Tanzania Breweries (ABInBev), Sunkist Group among hundreds of companies confirming to attend, AFMASS FoodTech Tanzania is set to bring new energy to the industry in Tanzania.

Excellent venue According to Juma, Dar es Salaam Serena Hotel, the venue of the event offers a prime location with easy access from the airport, shopping malls and other amenities.

It also enables the delegates to network and trade in a business atmosphere in the centre of the city, away from the hustle and bustle of the city.

14 JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

Meet who-and-who from Tanzania AFMASS FoodTech Tanzania edition has received high level confirmations including some of the most influential speakers and panelists from Tanzania and beyond.

From the industry, Fatema Dewji, the Marketing Director at METL Group, Lucy Manning of AB-InBev and Gary Pay of Coca-Cola are some of the leading speakers and panelists that will provide local perspectives and views at the event.

EVENT: AFMASS FoodTech Tanzania edition

VENUE: Serena Hotel, Dar es Salaam DATES: EXHIBITION SET UP: March 28, 2019

EVENT DATES: March 29-30, 2019 TIMINGS: 08.00-18.00 DAILY FOODBUSINESSAFRICA.COM

EVENTS REVIEW

A panel discussion on mentorship by senior food industry women leaders at AFMASS Eastern Africa 2018 edition

AFMASS Eastern Africa, Kenya edition – New venue, bigger Expo Hall and more networking opportunities!

Celebrating its 5th year, AFMASS Eastern Africa edition will be held at Parklands Sports Club, deliver more this year

A

better venue, improved conference program, a bigger Expo Hall and many more opportunities to network and trade are some of the changes at AFMASS Eastern Africa edition, as Eastern Africa's largest food, beverage and milling industry event celebrates its 5th year in style.

"Set to be the biggest and the most informative of all the past events, AFMASS Eastern Africa edition has been shifted to a new, bigger and better venue that will allow the most seamless access to the venue for exhibitors and delegates. Equipment suppliers will also be able to showcase their equipment at the Expo Hall, which we have struggled with at previous venues," says Francis Juma, the team leader at FoodWorld Media, the organisers of the event.

New program, excellent networking opportunities With an eye on delivering the five-year milestone, the organisers have made significant changes and improvements to the event program to provide more opportunities for networking, trading and learning.

In this regard, the conference program has new sessions on Investing, Financing and Mergers & Acquisitions; Supply Chain and Energy, Utilities and Sustainability Management.

To provide more relevant content to the delegates, the conference sessions on Day Two have been split into two, with the AFMASS FoodTech stream focusing on processing, packaging and formulation technologies of dairy, beverage and other food

FOODBUSINESSAFRICA.COM

products, while the AFMASS GrainTech stream will exclusively cover the processing, packaging and formulation technologies in the grains and baking industry.

This year, the event will also debut field visits to food industry facilities around Nairobi, with a view to sharing good practices and to provide exposure to delegates. One filed vist will be a grains facility and the other, to a dairy/beverage plant.

To complement the conference and Expo Hall interactions, the organisers have added a number of cocktails and an Official Dinner in and around Nairobi "We want to deliver a memorable AFMASS Eastern Africa 5th edition. We are confident that with the strong interest in sponsorship and exhibition sign-ups we have received this year, this event will be truly impactful on the industry," adds Juma.

EVENT: AFMASS Eastern Africa edition VENUE: Parklands Sports Club, Westlands, Nairobi, Kenya DATES: EXHIBITION SET UP: May 15, 2019

EVENT DATES: May 16-18, 2019 TIMINGS: 08.00-18.00 DAILY JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA 15

FOOD SAFETY

MARKET TRENDS

Biomin testing of US Global plant-based beverages market expected to hit produce shows mycotoxins US$475 million by 2028 levels increase significantly Revised forecast due to faster market demand for products as health and

USA – The February update from the annual Biomin mycotoxin survey in maize harvested in 2018 has shown a significant increase in mycotoxins occurrence in the country.

The survey, which involved the testing of 483 samples from 30 states revealed that 98% of ground corn samples were positive for at least one mycotoxin compared to 89% in 2017, with 72% of samples having more than one mycotoxin, from 47% in 2017.

Aflatoxin prevalence in dry corn jumped to 10% from 4% in 2017, with average contamination levels increasing nearly five-fold. The level of Deoxynivalenol (vomitoxin) prevalence increased marginally to 74% from 70% in 2017, with average contamination level increasing by 41%.

The level of Fumonisin also went up 78% vs 52% in 2017, with average contamination levels increasing by 40%, while that of Zearalenone prevalence jumped to 43% from 25% in 2017, with average contamination levels remaining steady.

INVESTMENTS

Ghana’s beverage company Kasapreko launches new US$2.2m juice line

GHANA – Kasapreko Company Limited, a manufacturer and producer of alcoholic and non-alcoholic drinks in Ghana has commissioned a new automated carton aseptic juice line following a US$2.2 million investment.

According to the company, the juice production line will produce Kiddy Pak juice drinks to serve the young adults market, reports GhanaWeb. According to Chris Addo-Sarkodie, US$2.2 million the state-of-the-art Tetra Pak production line will enable the company to produce about 800,000 packs of Kiddy pack juice to be distributed on a daily basis.

Speaking during the launch, Richard Adjei, the MD of the beverage company, sais that through the investment, Kasapreko will be able to meet its ambitions of producing high quality products to satisfy the market.

The company also revealed plans to invest in another factory in Kumasi as it cements its position in the Ghanaian market.

wellness reigns supreme WORLD – The global plant-based beverages market is estimated to reach US$474.6 billion by 2028 from US$ 247.8 billion in 2018, with an annual growth rate of 6.7% during 2018-2028, revised from the previous rate of 5.2%, due to factors regarding which FMI offers useful insights in detail in this report for plant-based beverages.

According to a recent report titled 'Plant-based Beverages Market: Global Industry Analysis 2013–2017 and Opportunity Assessment 2018–2028' by research company FMI, the market size and forecasts have been carried out taking into account the impact of various macroeconomic indicators and other industry-based demand-driving factors, as well as the recent developments of key market participants.

FMI reveals that the market for plant-based products is anticipated to increase over the forecast period, due to the increasing health and wellness consciousness among the population, and the growing vegan/vegetarian/flexitarian trend, along with dietary restrictions including lactose intolerance and foodrelated allergies.

“Plant-based beverages are expected to witness a rapidly growing trend over the forecast years, owing to changing consumer eating habits. Consumers are becoming more conscious about health and wellness, are opting for natural products

16 JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

IN NUMBERS

US$475M PLANT-BASED BEVERAGES MARKET BY 2028 which fulfill the demands for taste, flavour, and nutrition thus plant-based beverages market is pacing,” the report says. Further, manufacturers of plant-based beverages are offering new and innovative flavors and ingredients to attract consumers, such as plant-based coffee, flavored plant-based milk, and blends of vegetable and fruit juices.

The dairy alternatives category will grow at the fastest rate, making it the most attractive category for plant-based beverage manufacturers, notes the report, adding that shifting consumer preferences for natural and healthy products have fuelled the adoption of plant-based beverages in the food and beverage industry. In this category, demand for products including almond milk, soy milk, coconut milk, rice milk, oats milk, seed milk, and cashew milk is expected to reach US$25.8 billion by 2028.

Organic plant-based beverages are anticipated to overtake conventional plant-based beverages, with an expected growth rate of 7.2% by 2028, owing to the increasing awareness of consumers in developed regions about the quality and health benefits of organic food products, and increasing per capita disposable income of consumers. The report reveals that the Asia Pacific region excluding Japan will continue to dominate through the forecast period. Manufacturers are targeting the emerging economies of the Middle East and Africa that are relatively under-penetrated markets.

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UPDATES MARKETING

Abubakar Bakhresa receives regional leadership award at IAOM meeting in Kenya

TANZANIA - Abubakar Said Salim Bakhresa, the Executive Director Said Salim Bakhresa & Co Ltd and a Director at the Bakhresa Group of Companies has received the Regional Leadership Award for his Advocacy for Food Quality & Security in Africa.

Abubakar, who is primarily involved in the wheat milling businesses of the Group received the special Award at the International Association of Operative Millers (IAOM) Middle East & Africa Annual meeting that was held in Nairobi, Kenya in late October 2018.

He was lauded for providing exceptional leadership in the milling industry in Tanzania, which has led to the Group opening new milling businesses in the rest of Eastern and Southern Africa, leading to improved food security and the delivery of safe food to the growing consumers of the company's brands across Africa.

Abubakar is tha Managing Director of Bakhresa Malawi Limited, Bakhresa Grain Milling (Mozambique) Limitada and Bakhresa SA (Pty) Limited, Azam Media Group, AzamPay Tanzania Limited and Bagamoyo Sugar Limited. He is also holding directorial position in several Group Companies. He holds a B.Sc. in Business Administration, majoring in Finance from Georgetown University, Washington D.C. USA. Bakhresa Group has spread its wings beyond Tanzania and is one of the largest wheat miller in the region with a group milling capacity of more than 1.5 million tons per annum. The group has invested in state of the art technology and is providing consistent quality products at affordable prices to its customers. The Group’s brand

name “Azam” is very popular across the region. The Bakhresa Group’s vision has ensured food security in the countries it has presence in.

Abubakar Bakhresa is spearheading the next phase of Bakhresa Group’s growth to be driven by technological innovations in the form of digitalization of the economy by launching AzamPay App to facilitate Digital Payments, Digital Business Services, E-Commerce and Digital Supply Chain Management.

Abubakar's father and the founder and Chairman of the family business Group, Said Salim Awadh Bakhresa, received the Africa Food Industry Champion, a lifetime achievement award at last year's Africa Food Industry Excellence Awards ceremony that was held in Nairobi, Kenya.

The award, organised by the publishers of this magazine, is given to founders and directors in food industry businesses that have had the most important contribution to the development and growth of the food industry in Africa, and their impact on the economy and job creation in Africa.

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PEOPLE

Tetra Pak names Adolfo Orive as President and Chief Executive Officer

SWEDEN – The global food processing

and packaging company Tetra Pak has announced that its board has appointed Adolfo Orive as President and Chief Executive Officer effective April 1, 2019 to succeed Dennis Jönsson who will step down from the company after serving as President and CEO for 14 years.

Adolfo is currently Cluster Vice President North Central and South America, responsible for the financial results of a multicultural region of 4,800 employees ranging from the Southern Cone up to Alaska with 8 converting factories. He joined Tetra Pak in 1993 and has served in several positions at the firm including Managing Director of Colombia, Spain and Cluster Vice President North and Central Europe. He joined the Tetra Pak Global Leadership Team in 2014.

Adolfo, 55 years old, holds a bachelor’s degree in Industrial Engineering from Ibero-American University (IBERO), Mexico and a Master’s in Business Administration from Mexico Autonomous Institute of Technology (ITAM), Mexico.

Tetra Pak posted sales of US$13 billion in 2017 and is part of the Tetra Laval Group, which also consists of DeLaval and Sidel.

The company recently unveiled new digital printing technology that will offer customers with full-colour, customized and flexible digital printing on its carton packages. In November last year, Tetra Pak launched a long-life milk consumer campaign in Kenya to educate consumers on the benefits and safety of long life milk products. The goal of the campaign was to inform the consumers that long life milk is safe, engage and educate the consumers about its nutritional and other benefits and to create a positive image about these products.

SUSTAINABILITY

Industry majors form coalition to end ocean plastic waste and pollution WORLD – An alliance of global companies from the plastics and consumer goods value chain has launched a new organization to advance solutions to eliminate plastic waste in the environment, especially in the ocean.

The cross value chain Alliance to End Plastic Waste (AEPW), made up of nearly 30 member companies, has committed over US$1 billion with the goal of investing US$1.5 billion over the next five years to help end plastic waste in the environment.

The Alliance will develop and bring to scale solutions that will minimize and manage plastic waste and promote solutions for used plastics by helping to enable a circular economy.

The Alliance membership represents global companies and located throughout North and South America, Europe, Asia, Southeast Asia, Africa, and the Middle East, including BASF, Berry Global, Braskem, Chevron Phillips Chemical Company LLC, Clariant, Covestro, Dow, DSM, ExxonMobil, Formosa Plastics Corporation USA, Henkel, LyondellBasell and Mitsubishi Chemical Holdings.

Others include Mitsui Chemicals, NOVA Chemicals, OxyChem, PolyOne, Procter & Gamble, Reliance Industries, SABIC, Sasol, SUEZ, Shell, SCG Chemicals, Sumitomo Chemical, Total, Veolia, and Versalis (Eni).

“Everyone agrees that plastic waste does not belong in our oceans or anywhere in the environment. This is a complex and serious global challenge that calls for swift action and strong leadership. This new alliance is the most comprehensive effort to date to end plastic waste in the environment,” said David Taylor, Chairman of the Board, President and CEO of Procter & Gamble, and chairman of the AEPW. “I urge all companies, big and small and from all regions and sectors, to join us,” he added.

The Alliance is a not-for-profit organization that includes companies that make, use, sell, process, collect, and recycle plastics and includes chemical and plastic manufacturers, consumer goods companies, retailers, converters, and waste management companies, also known as the plastics value chain.

TECHNOLOGY

Nestle acquires New Zealand technology to fight iron deficiency NEW ZEALAND – Global food giant Nestle has acquired a novel technology developed

by New Zealand scientists to help tackle iron deficiency, one of the world’s widely spread nutritional deficiencies.

Called FERRI PRO, the technology encompasses novel techniques that look to address iron deficiency while preserving product quality. It was developed by researchers at the Riddet Institute Centre of Research Excellence (CoRE), Massey University, with the aim to address the impact of diseases such as anaemia which has found prevalence in most of the populations around the world.

“At Nestlé we believe that we have a key role to play in support of global efforts to tackle the global burden of micronutrient deficiencies. Through this collaboration

18 JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

with Massey University, we will have access to an innovative technology that enables us to effectively fortify our foods and beverages without compromising the quality and taste,” said Petra Klassen Wigger, Head of Nutrition, Health and Wellness at Nestlé Research.

Iron deficiency anaemia arises when the balance of iron intake, iron stores, and the body’s loss of iron are insufficient to fully support production of erythrocytes.

It rarely causes death, but the impact on human health is significant, prevalent in major portions of the population in underdeveloped countries. Women and children are particularly at risk for iron deficiency, and if left untreated it can cause serious mental and physical harm, according to the World Health Organization (WHO).

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1ST EDITION MARKETING

Tanzania embarks on campaign to promote local wine

FOODTECH CONFERENCE & EXPO

RWANDA EDITION J U LY 1 1 - 1 2 , 2 0 1 9 • K I GA L I , R WA N DA

Welcome to Rwanda - the Land of a Thousand Hills

Great Lake Region's first Food, Beverage & Milling Industry Conference & Expo TANZANIA – Tanzania has embarked on a campaign to promote local wines dubbed as “Mkeka na Mvinyo” in it seeks to unlock the sectors potential, reports IPP Media.

Speaking during the launch of the campaign in an event organised

by Real PR Solutions (RPR), an integrated communications company, Caroline Kirwanda said that the campaign is also aimed at promoting economic growth in the country’s wine sector. “We need to promote massive local consumption to stimulate economic growth”, she said.

Archard Kato, the Managing Director of Alko Vintages Co Limited, which produces a variety of premium quality said that to the initiative will go a long way in increasing the markets share of locally produced wine. “I urge Tanzanians to develop a culture of consuming locally made wines as currently over 70% of wine consumed in the country are imported while grape growing in the country can support 80% and more of the Tanzanian market share,” Archard said.

He said that increased consumption of Tanzanian wines will also translate into famers selling more grapes thus improving their household income as well as poverty reduction. “Let’s support our fellow Tanzanian grape farmers and the nation in general by consuming local wines which are of top quality. We are excited to be associated with this novel idea which complements the government’s agenda on industrialization by giving the local producers an opportunity to sell their wine which is revered all over the East and Central African region but consumed very little

by Tanzanians,” he added.

Furthermore, Alko Vintages products have surpassed the local market and crossed borders for export as well and more wine brands in varying high-quality packages are in the pipeline. “We are excited to be associated with this novel idea which complements the government’s agenda on industrialization by giving the local producers an opportunity to sell their wine which is revered all over the East and Central African region but consumed very little

by Tanzanians”, said Kato. Ms Caroline added that the initiative will also boost the entire grape value chain as help grape farmers, especially in Dodoma, fetch higher prices for their produce who have been unable to sell in large numbers due to low local consumption of wine.

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The food, beverage and milling industry in the Great Lakes Region - Rwanda, Burundi, eastern DRC, western Uganda and northwestern Tanzania is growing aggressively - with a rising need for the right technologies to improve value addition, post-harvest management, processing, storage and supply chain management in order to boost local manufacturing for domestic and export markets.

Join us at the first AFMASS Rwanda edition to meet the key decision makers in the region and discover what the Great Lakes region of Africa has to offer!

www.afmass.com

JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA 19

M&A

Danone re-enters Indian dairy sector with investment in Epigamia INDIA – The French dairy company Danone through its Danone Manifesto Ventures, has acquired a stake in the Indian flavored and Greek yoghurt brand, Epigamia as part of a US$25.6m investment round.

Epigamia, owned by Drums Food International Pvt. Ltd raised Rs 182 crore (US$25.6 million) in a Series C round led

by Danone’s investment arm and Belgium’s Verlinvest, Samina Vaziralli and existing investor DSG Consumer Partners.

Drums Food said the funding will be used to enhance its distribution network across 25 cities in India and expand its range of high-protein, lactose-free and probiotic food products.

“Danone is the global leader in our space and with the support from their venture arm, we expect to execute an ambitious business plan,” said Rohan Mirchandani, CEO at Drums Food. “This investment, our first with Danone Manifesto Ventures in Asia, is a perfect fit, as Epigamia places taste, quality and health at the centre of its model,” said Laurent Marcel, managing director at Danone Manifesto Ventures.

Founded in 2015, Drums Food owns and operates a chain of ice cream parlors under the Hokey Pokey brand. As part of the deal, Danone would collaborate with Epigamia in areas of brand management, distribution expansion, manufacturing, quality and food safety. Epigamia will continue to operate independently with the investment being independent of Danone’s business in India.

Danone’s exited India’s dairy segment last year citing competition from big players. Despite the fact that India is the world’s largest producer and consumer of dairy, Danone was unable to leverage its operations in a sector dominated by Amul and Mother Dairy, besides Nestle and Britannia.

However, as India’s dairy space continues to thrive, international companies are voting with their feet to set up a strong organic presence in the country. The most recent is that of Fonterra, which formed a joint venture partnership with one of India’s largest consumer companies, Future Group.

SUSTAINABILITY

Coca-Cola expands access to its PlantBottle technology to its competitors The company also introduces the first Coca-Cola flavour variant in more than 10 years USA - The Coca-Cola Company has

announced plans to open the company’s PlantBottle intellectual property more broadly to other companies, including its competitors in the beverage industry.

“We need more companies using this technology across a wide range of applications to achieve the impact we know it can have. This isn’t just about PlantBottle.

It’s about fundamentally shifting our mindset. We can’t afford for anyone to hoard good ideas if they could help protect the planet,” James Quincey, the company’s CEO said in an online op-ed for The Washington Post.

Introduced by the company in 2009, PlantBottle, the world’s first fully recyclable PET plastic bottle made partially from plants, disrupted the sustainable packaging landscape, and has been used in such brands such as Dasani to Coca-Cola to Gold Peak.

It is made by replacing up to 30% of the petroleum used to make PET plastic bottles with material from sugar cane and other plant matter, PlantBottle has avoided the CO2 emissions equivalent of taking nearly 1 million vehicles off the road since 2009.

The company says that it accounts for 30% of its packaging volume in North America and 7% globally.

The company has allowed noncompetitive companies to use the technology and brand in their products – from Heinz Tomato Ketchup, to the fabric interior in certain Ford hybrid vehicles.

By encouraging more use of bioPET by companies both inside and outside the beverage industry, Coca-Cola hopes to scale up demand and, in turn, drive down pricing.

“Broadening access to our PlantBottle IP aligns with our ‘World Without Waste’ vision and goal of getting renewably sourced polymers into our closed loop,” said Scott Pearson, senior director of global R&D innovation at The Coca-Cola Company.

“It’s about driving a circular economy, and using and reusing our resources more efficiently. Part of that, for plastics, means using renewable feedstock materials that are not based on fossil fuels.”

Quincey say that Coke’s action is about fundamentally shifting the mindset. “We

20 JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

can’t afford for anyone to hoard good ideas if they could help protect the planet. Working together with many partners— even our competitors— we’re treating these issues like business challenges: we’re investing in R&D, pursuing innovative ideas, collaborating w i t h stakeholders and benchmarking our progress regularly,” The company also plans to innovate the underlying bioplastics technologies to further increase the world’s supply of biomaterial that can be used in PET resin, invest in technology to use more recycled material in its packaging and to further make its plastic packages lighter and easier to recycle.

Meanwhile, the company and has announced the introduction of the first Coca-Cola trademark flavour innovation in over 10 years. The new Orange Vanilla Coke and Orange Vanilla Coke Zero Sugar variants follow the successful relaunch of Coca-Cola Zero Sugar in 2017.

“What we realized is that we had a diamond in the rough when we looked at our flavours portfolio,” Kate Carpenter, brand director, Coca-Cola. Carpenter, however, says that only 12% of CocaCola drinkers buy flavoured options. “This showed us our fans want choice but are getting it outside the Coke trademark. We knew we had an opportunity to give fans the variety they crave without sacrificing the Coca-Cola taste they love. We wanted to bring back positive memories of carefree summer days. That’s why we leaned into the orange-vanilla flavour combination – which is reminiscent of the creamy orange popsicles we grew up loving, but in a classically Coke way.”

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FINANCIALS

East African Breweries half year profits grow 33% to US$96.2m

1ST EDITION

FOODTECH CONFERENCE & EXPO

ETHIOPIA EDITION

MARCH 19-21, 2020 • ADDIS ABABA, ETHIOPIA

Welcome to where it all began . .

KENYA – East African Breweries Limited has posted pre-tax profits

of US$96.2 million in its half year results for the period ending 31 December 2018, representing a 33% increase compared to the same period last year.

The company’s net sales grew 13% to US$412 million with Kenya and Uganda both recording a 12% increase in net sales while Tanzania’s sales were up 26%. EABL said that growth was broad-based across segments and regions, as the business benefited from lapping a weak half following the presidential election in Kenya.

According to the firm, beer grew 12%, driven by Senator Keg performance in Kenya, improved mix in Uganda and continued strong delivery of its Serengeti brand in Tanzania.

Spirits grew 16% on the back of strong performance in mainstream spirits and Scotch whisky as well as investments leading to vibrant innovations. Greater focus on productivity coupled with up-weighted marketing investment were noted to be the major drivers of its 33% growth in pre-tax profit. Additionally, strong cash conversion and lower interest rates resulting to a reduction in interest charge in the year also helped boost the bottom-line.

EABL Group Chief Executive Officer, Andrew Cowan noted that the firm will continue focusing on strategies that will strengthen its performance. “We have delivered a solid set of results and we are pleased with this half-year performance. We have made progress against our performance ambition, delivering broad-based growth across regions and categories. There is still a lot more to do across all our markets, but this half-year performance proves that we can get there if we continue to focus on strategic execution across our business,” said Andrew Cowan.

In its Kenyan business, growth in beer was largely pinned to 35% increase in sales of the brand Senator Keg as a result of increased distribution, commercial initiatives as well as the rejuvenation of the brand through powerful national campaigns.

“With our new brewery set to become fully operational soon, we expect to provide more and better drinking options, expanding our beverage alcohol universe further,” Andrew Cowan added.

The firm had also embarked on sustained marketing investments behind key bottled beer brands such as Tusker and Guinness which helped deliver that bottled beer performance year-on-year.

“In the last financial year, we deliberately invested behind our performance ambition through a step-change in our investments behind brands, capital expenditure and capability to sustain future growth momentum,” said the CEO. FOODBUSINESSAFRICA.COM

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Join us in Addis Ababa, Ethiopia at AFMASS FoodTech Ethiopia edition where we shall celebrate the recent peace and tranquility in the North-eastern Africa region and seeking to discover the huge potential in Ethiopia, Eritrea, Djibouti, Sudan and Somalia.

AFMASS FoodTech Ethiopia edition is the first substantive food, beverage and milling industry conference and exhibition to bring the key decision makers from across this vast and changing region.

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JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA 21

INVESTMENTS

Ugandan milk company Vital Tomosi commissions US$15m processing factory

UGANDA – Uganda’s Vital Tomosi Dairy Limited, producers of the Milkman brand of UHT milk and yoghurt has commissioned a new milk processing factory in Kiruhura District, western Uganda as it seeks to increase dairy production in the country.

The new dairy processing factory comes at an investment worth US$15 million and has a capacity to process 100,000 liters of milk daily. Odrek Rwabwogo, a partner in Vital-Tomosi, appealed to the government

to establish policies that will ensure productive capabilities of new entrepreneurs are not constrained. Rwabwogo revealed that 60% of the US$15 million investment was funded by private equity firm Vital Capital Fund and their local partners Patience Rwabwogo among others.

Speaking at the commissioning of the dairy plant, President Yoweri Museveni hailed the investment saying that it represents sensitization efforts geared towards transforming the agriculture value

chain. “I am pleased to see such partnerships and hope that more of the same can be established in different parts of the country, especially with focus on value-addition to agricultural produce,” said President Museveni.

According to Dairy Development Authority (DDA), Uganda currently produces 2.2 billion litres of milk annually, mainly from the central and western regions, which account for about 50% of national production. About 85% is consumed in without undergoing processing, representing about US$100m in real value while 15%, representing US$160m is processed.

Over the years, Uganda has seen tremendous growth in dairy processing with a current milk per capita consumption of 62 litres. Uganda is a major exporter of dairy products into the EAC market, COMESA countries, Nigeria, Syria, Egypt, Omen, Nepal and Bangladesh largely through UHT milk, ghee, casein, whey proteins and butter oil.

The major dairy processing companies in Uganda include Brookside Uganda, Jesa Farm Dairy Limited, Pearl Dairy Farms Limited, Amos Dairies Uganda Limited and GBK Dairy Products Limited.

M&A

Swiss food group buys Angolan largest dairy Lactiangol for US$30m ANGOLA – Webcor, a Switzerlandbased food group has acquired the largest dairy business in Angola, Lactiangol, in a deal valued at US$30 million.

Wissam Nesr, Chief Executive Officer Webcor Group said that the firm aims at working closely with its partners in Angola to ensure the enterprise remains sustainable and relevant to the country’s economy.

“Angola is experiencing a turning point in the economy, diversifying from trade and distribution to local industrialization and together with our local partners we will be one of the main players in this change,” said Wissam.

The firm in its new business plan seeks to develop Lactiangol’s production by multiplying its production capacity and diversifying production into all possible dairy product categories. It intends to utilise the dairy unit in production of UHT milk,

chocolate milk, natural and flavored solid yogurt, liquid yogurt, pasteurized butter, juices, ice cream, condensed milk, cheeses as well as dairy desserts.

According to Webcor Group, the strategy will help in promoting the brand, making it a market leader in its segment while optimizing the value chain through the local milk production incentive that now corresponds to only 7% of the factory’s needs.

Lactiangol, established in 1994, invested US$30 million in capacity development in 2017, employs 280 people and produces a range of dairy products. The plant in Luanda had a capacity to produce 1,200 kg of butter per hour, 7,000 litres of liquid yoghurt per day, 5,000 litres of natural yoghurt per day and bottle 13,000 litres of UHT milk per hour and to receive 20,000 litres of raw milk per hour, when it was established.

22 JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

A former Chairman at the company informed the Jornal Mercado newspaper that the sale of the company was aimed at safeguarding the investment already made and jobs, and that the company was in a situation of insolvency, as it did not have access to foreign currency to import raw materials from September 2017 to May 2018, when it had just made the US$30 million investment in the modernising the dairy plant.

Webcor was founded in 1978 in the Democratic Republic of Congo, and has been selling its products in Angola for 27 years. The deal reinforces its presence in the country for one of Africa’s leading players in the agricultural commodities and FMCG industry, including pasta, tomato sauce, cooking oil, maize and wheat flour, rice, sweet condensed milk, soya milk, margarine, mayonnaise, among others.

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FOOD SAFETY

Coca Cola gets regulatory approval to acquire Zambia’s Fairy Bottling

6TH EDITION

EASTERN AFRICA UGANDA EDITION

MAY 28-30, 2020 • KAMPALA, UGANDA

Join us in Uganda for

Eastern Africa’s Largest Food, Beverage & Milling Industry Conference & Expo

ZAMBIA – Coca Cola Beverages Africa (CCBA), the largest Coca-Cola bottler on the continent has announced that it has received regulatory approval to acquire Zambia’s leading soft drinks manufacturer, Fairy Bottling Zambia Limited.

Fairy Bottling presents state of the art production and distribution capability that focuses on consumer-centric portfolio, which Coca-Cola is looking to utilize to expand its presence in the region. It also packages the industry-leading water brand Aqua Savana, a range of flavoured soft and energy drinks and Super Maheu, a starch-based beverage.

The transaction includes Fairy Bottling’s production facility in Lusaka, Zambia and the sales and distribution infrastructure, which last year was the runner-up in the Soft Beverage Plant of the Year category at the Africa Food Industry Excellence Awards, which were held in Nairobi, Kenya.

“We believe that the acquisition of Fairy Bottling allows us to achieve greater efficiencies which ultimately means better value for consumers and improved service to customers,” said Norton Kingwill, the MD for CCBA’s Southern Africa region. He says that the transaction will not affect the day-to-day activities of Fairy Bottling and all employees will remain with the company after the deal.

The development follows the recent acquisition by CCBA of the soft drinks bottling business from Zambia Breweries as CCBA continues its journey to consolidate its bottling operations in Africa. The Fairy Bottling deal consolidates CCBA’s operations in Zambia and places it as the leading sparkling soft beverages manufacturer in the country.

In an expansion spree, Fairy Bottling led by Chief Executive Officer Dr. Mohamed El Sahili announcement of plans to invest US$50 million in capacity development in August 2018 for the manufacturing of plastic containers and production of nonalcoholic beverages.

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Uganda has made huge strides in agriculture and food manufacturing sectors win East Africa, with an increase in investments by local, regional and international companies in the last 10-15 years.

Join us at AFMASS Eastern Africa - Uganda edition to discover the huge potential in Uganda and meet the key decision makers from across Eastern Africa and the Great Lakes region.

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JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA 23

BREXIT

‘Hard Brexit’ to impact UK food industry negatively, raise consumer prices – Rabobank UK – The UK economy stands to be hit negatively in case the

European Union (EU) and the UK fail to agree on a Brexit deal, while the transition to this situation will be ‘sudden and farreaching’, says Rabobank.

In a research note titled ‘Consequences of hard Brexit on the Food and Agribusiness’, Rabobank says that there is a significant likelihood of disruption of regular trade between the EU and the UK, impacting the food and agriculture industry significantly, with likely effect on labour availability, grain exports and the fishing industry, among others.

A so-called ‘hard Brexit’ will occur when the UK fails to strike a deal with the EU, essentially making the UK to become a ‘third country’ to the EU on 30 March 2019. In case of a hard Brexit, UK companies will lose access to the EU market for exports of most agricultural products due to the introduction of import tariffs at the EU border, immediately.

Trade tariffs impact

Rabobank says that in the absence of a trade deal, WTO tariffs will apply to all EU imports originating from the UK, just as they apply to imports from other third countries.

Since for agricultural products, these tariffs are significant and oftentimes prohibitive for trade, UK suppliers will lose access to the EU market. Imports of dairy products, beef and sugar will be hardest hit due to the more than 30% import tariff imposed by the EU, while pork, poultry, seafood, eggs, fruit and vegetables, grains and consumer foods, with a medium tariff of 10-30% will also face a hard time being sold into the EU market. However, oilseeds, beverages and tropical products with a 10% import tariff will find it easier to access the EU market.

The report says that in a hard Brexit scenario, it is most likely that the UK will not introduce import tariffs for imports from both the EU and other countries and is expected to be less restrictive as it is dependent on imports for its food needs. However, some sensitive UK products might receive protection by setting import tariffs, e.g. sheep meat and beef, products.

New administrative and border hurdles

Rabobank reveals that in case of a hard Brexit, for EU companies, the administrative burden of trading with the UK will increase, and the complexity of trading in the EU and UK will also increase.

The report stresses that authorisations by UK authorities will no longer be valid in the EU, while food labelling will also have to be adapted, as non-EU origin must be mentioned explicitly on many food labels for products from the UK entering the EU. The report adds that trade between the Republic of Ireland and Northern Ireland will be a highly contentious issue in case of a ‘hard Brexit’. This will negatively affect the dairy industry, considering that 30% of Northern Ireland’s 2.2 billion litres of milk is processed in the Republic of Ireland.

Weaker British Pound impacts trade

The report reveals that the British Pound (GBP) is expected to slide towards parity with the Euro, from 0.88 to the Euro, a depreciation 24 JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

of the GBP 10-15% to the Euro.

The weaker Pound will increase the domestic prices of most agricultural products by this percentage since the UK is a net importer for most agricultural products, leading to a rise of import prices by the same margin, which in return will pull up prices of domestically-produced products.

UK consumers will see food price inflation rise, putting further pressure on margins the food processing and marketing industry in the country. The report argues that food price inflation due to the weakening of the GBP, in combination with slower economic growth will lead to consumers trading down to cheaper products.

Quality standards for imports to remain

“We do not expect the UK to lower its quality standards compared to today’s situation. Therefore, imports from non-EU countries will be limited, at least in the short term. This will especially be the case for sectors in which suppliers from third countries face difficulties meeting these quality standards,” Rabobank says.

Hormone-treated beef, chlorinated chickens, GMO grains and oilseeds of varieties that have not yet received EU approval will continue to face the same restrictions in EU and the UK, while private sector standards, such as animal welfare standards in pork, will continue to exist, creating barriers to imports from suppliers that are not compliant with UK standards.

Further, sensitive products including fresh produce and flowers will face delays at the UK-EU border, from both sides, which could lead to a loss of value or quality due to the border checks and controls that could lead to significant delays.

Food industry impacted

The report further reveals that in the case of a ‘hard Brexit’, changes in immigration laws, fishing rights and grain imports could add further pressure on the food industry in the UK. The more restrictive policy on immigration, and the expected depreciation of the GBP, will result in lower availability of foreign labour in the UK, which will hit food business players hard, as about one-third of employees in the food value chain are EU citizens.

Rabobank says that the fisheries sector in both the EU and the UK will face serious economic losses in case of a hard Brexit. "In the absence of a fisheries agreement after Brexit, EU vessels will lose access to UK waters, while the same goes for UK vessels to EU waters,” notes Rabobank.

For EU vessels this would mean a loss of over GBP 500 million in value in seafood that they can no longer catch from the UK’s Exclusive Economic Zone. For UK vessels, loss of access to the EU-market would also be damaging, as the UK will lose this important market, which amounted to GBP 1.3 billion in 2017, or 70% of the UK’s total seafood exports.

One sector that may gain from a hard Brexit is the UK’s sugar industry, as EU restrictions on the import of raw sugar from third countries will no longer apply, hence the underutilised capacity for raw sugar refining in the UK can potentially be put into operation with additional imports of raw sugar. Quality standards are not expected to be an obstruction to imports in the sugar sector.

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M&A

M&A

French dairy group Lactalis DOB Equity invests in Coconut Holdings to capitalize on health conscious product buys Egyptian food KENYA – DOB Equity, a Dutch familycompany Greenland backed impact investor in East Africa has

EGYPT – French dairy giant Lactalis has

acquired Egyptian food and beverage company, Greenland Group through its joint-venture facility, Lactalis-Halawa, in a transaction whose price was not disclosed.

Based in Cairo, Egypt, Greenland is a private company operating within the food, beverage & tobacco sector focusing on packaged foods & meats. It mainly operates in cheese and has five production sites in Egypt employing 1,250 people.

In the statement announcing the deal, Lactalis said the acquisition will strengthen the joint venture’s position as the major dairy products manufacturer in Egypt. “The acquisition of Green Land will effectively strengthen our position in the cheese category, but since the start of the partnership with Halawa we always worked to build a strong position in all the categories of dairy products such as p-processed cheese, then white cheese, yogurts since 2008/09 and UHT milk since 2011. The deal testifies to the Lactalis Group’s constant interest in developing the Egyptian market”, the company noted. The company exports to around 50 countries, including the US, the European Union, North Africa and the six-member Gulf Cooperation Council in the Middle East.

The Lactalis–Halawa Group is a major producer of dairy products in Egypt with presence across all dairy categories, including cheeses, UHT and fresh milk. In 2018, Lactalis also bought up the infantformula business of Aspen Pharmacare in South Africa, giving the French dairy company ownership of the Alula, Infacare and S-26 brands.

invested in Coconut Holdings Limited, producer and owner of Kentaste range of coconut based products, to help leverage on the fast growing demand for health conscious coconut products.

Kyle Denning, CEO of Coconut Holdings said that the investment will allow the company to expand its processing facilities, launch new products and further develop its sales across the wider East Africa region. “We are very pleased and looking forward to working with DOB Equity on the expansion of our business.

We have an ambitious growth trajectory and to unlock the full potential throughout the value chain, we need a financing partner that understands what it takes to secure sourcing, improve the process and enter new markets,” he said.

Brigitvan Dijk van de Reijt, CEO of DOB Equity, said that coconut firm is expected to benefit from the growing coconut industry. “As the largest coconut processor in Kenya, Kentaste is wellpositioned to benefit from the fast-growth demand for healthy products.” Coconut Holdings is Kenya’s largest producer of coconut oil, milk and cream which owns and operates two coconut processing

facilities at the country’s coast. The firm purchases coconuts from small-holder farmers of which 1,500 are organic and fair trade certified.

The investment in Coconut Holdings adds to DOB Equity’s health conscious agri-portfolio, following their recent investment in Ten Senses Africa, the organic macadamia nut producer and processing company. The Kenyan Government has acknowledged the potential of the coconut farming and processing sector as a ‘sleeping giant’ of the economy with projected annual revenue generation amounting to US$244 million.

M&A

Diageo agrees to sell South African brewery to Delta Corporation SOUTH AFRICA – Diageo has entered into

an agreement for the sale of South Africa’s United National Breweries (UNB), a maker of sorghum-based traditional African beer to Delta Corp of Zimbabwe.

The acquisition by Delta would be its second outside of Zimbabwe after it acquired Zambia’s National Breweries Plc., also a brewer of sorghum based beer from AB InBev’s subsidiary, Heinrich’s Syndicate in 2017. Delta, which is Zimbabwe’s largest beverage company and a subsidiary of Anheuser-Busch InBev, has been battling the Coca-Cola Company’s notice to terminate its bottler agreement following the ‘big beer merger of 2016’, between AB InBev and SABMiller. This saw AB InBev acquire the world wide assets of SABMiller, Delta’s former largest investor. Delta is

26 JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

one of two firms that bottles Coca-Cola products in Zimbabwe.

Diageo acquired full ownership of United National breweries in 2015 after paying out US$58m to its former partner Pestello Investments for the remaining stake. The transaction marks the second step out of the beer market in South Africa after Diageo and Heineken dissolved their joint ventures in South Africa and Namibia. It sold its 42.25% stake in DHN Drinks and its 25% stake in the Sedibeng brewery in Gauteng, South Africa to the Dutch brewer in 2015.

United National Breweries produces and offers a wide range of beers, including Chibuku, Tlokwe, Joburg, Zebra beer, Shake Shake, Country Brew and Kalahari sorghum.

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FOOD SAFETY

International Food Safety Conference calls for greater global cooperation As Global Food Safety Partnership calls for more investments to promote food safety in Africa

The report proposes a better approach to address the health of domestic consumers dependent on informal markets; building capacity for well-governed, evidence- and risk-based food safety systems; and harnessing the current marketplace drivers of progress on food safety .”

ETHIOPIA Greater international cooperation is needed to prevent unsafe food from causing ill health and hampering progress towards sustainable development, world leaders at the First International Food Safety Conference have said.

Held in Addis Ababa and organized by the African Union (AU), the Food and Agriculture Organization of the United Nations (FAO), the World Health Organization (WHO) and the World Trade Organization (WTO), the conference’s theme revolved around the need for a sustained investment and coordinated, multi-sectoral approaches for regulatory legislation, suitable laboratory capacities, adequate disease surveillance and food monitoring programmes to improve food safety around the world. These will be supported by information technologies, shared information, training and education.

“The partnership between the AU and the UN has been longstanding and strategic,” said AU Commission chairperson Moussa Faki Mahamat. “This food safety conference is a demonstration of this partnership. Without safe foods, it is not possible to achieve food security,” he said. “There is no food security without food safety,” agreed FAO DirectorGeneral José Graziano da Silva during his remarks. “This conference is a great opportunity for the international community to strengthen political commitments and FOODBUSINESSAFRICA.COM

engage in key actions. Safeguarding our food is a shared responsibility. We must all play our part. We must work together to scale up food safety in national and international political agendas,” he said.

Dr Tedros Adhanom Ghebreyesus, Director-General of the WHO said that unsafe food is responsible for hundreds of thousands of deaths every year, but has not received the political attention it deserves, adding that food-borne illnesses are responsible for 600 million illnesses and 420,000 deaths every year, but with the right partnerships, these illnesses and deaths can be reduced significantly.

About 130 countries participated in the two-day conference, including ministers of agriculture, health, and trade; scientific experts, partner agencies and representatives of consumers, food producers, civil society organizations and the private sector.

According to the deliberations, technological advances, digitalization, novel foods and processing methods provide a opportunities to simultaneously enhance food safety, and improve nutrition, livelihoods and trade. However, climate change and the globalization of food production, and a growing global population and increasing urbanization, pose new challenges to food safety. Further, food systems are becoming even more complex and interlinked, blurring

lines of regulatory responsibility. Solutions to these potential problems require intersectoral and concerted international action.

Meanwhile, the Global Food Safety Partnership (GFSP), a public-private partnership that promotes food safety, has called for more investments into the domestic food safety across African countries in order to curb food-borne diseases.

According to a report by GFSP, investments in the African countries should be geared towards promoting food safety for its local consumers with greater emphasis on information and awareness on higher safety standards. The report, based on an analysis conducted on more than 500 projects and activities in Africa since 2010, reveals that, a majority projects focused on food safety for exports with less emphases on domestic consumptions. Although exports contribute significantly to African economics, the report says the continent suffers the world’s worst levels of food safety, causing human capital losses of an estimated US$16.7 billion annually. It also says that more than half of donor-funded food safety initiatives in the continent are focused on overseas markets, with less than half on domestic consumers.

Based on the findings, GFSP advocated for more investment into public health programmes in the report, advising developing countries should adopt public health-focused investment programmes, raise awareness and encourage consumer demand for higher food safety standards. The report proposes a better approach to address the health of domestic consumers dependent on informal markets; building capacity for well-governed, evidence- and risk-based food safety systems; and harnessing the current marketplace drivers of progress on food safety.

JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA 27

www.summit.africaincmag.com

THEME: AFRICA IN THE AGE OF DIGITAL DISRUPTION DATE: MARCH 5-7, 2020 VENUE: NAIROBI, KENYA

Welcome to Africa Invest & Innovate Summit - The 'Davos' of Africa The Africa Invest & Innovate Summit is the premier annual forum where key decision makers meet to discuss the latest economic trends, technologies, regulations, market trends and opportunities in sub-Saharan Africa.

Held in Nairobi, Kenya, the Summit is the region's largest meeting place for industry leaders, investors and innovators; Government regulators and policy makers and other stakeholders, with a focus on the fast growing and changing entrepreneurship landscape in Africa.

The event is structured in panel discussions and plenary sessions, with each session focused on a particular sector of the economy or issue of concern to the stakeholders.

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28 JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

At Africa Invest & Innovate Summit conference sessions, some of the notable thinkers and doers from across Africa and the World will share best practices, experiences and opportunities that can be harnessed to make businesses in the region more agile, competitive, profitable and sustainable.

To complement the Summit will be an Expo Hall with a collection of local, regional and international suppliers of various products and services to Africa's business, Government and development community - and where the Summit delegates shall discover the latest technologies and solutions aimed at the growing investment space in Africa.

Welcome to the 'Davos' of Africa. Register today to attend Africa's meeting place of winners.

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What does Africa Invest & Innovate Summit cover • Investment opportunities, challenges and trends in Africa • Regulatory and policy landscape trends and challenges • Latest economic trends and opportunities • Retail, distribution and supply chain opportunities and trends • ICT, media and communications technologies and their roles in catalysing change • Consumer and market trends, Innovations and new technologies • Financial and monetary policy trends and opportunities • Infrastructure, supply chain gaps and opportunities • Funding opportunities and innovative ways to raise capital and manage M&A activities • Competitiveness and regional and international trade matters • Sustainability and its applications in Africa

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Who will attend Africa Invest & Innovate Summit?

• Manufacturers and distributors of consumer goods including food, personal care, health, pharmaceutical, heavy industries, motor, ICT • Technology providers to Africa's industry, Goverment and NGOs • Financial industry stakeholders including banks, insurance, PE etc • Government regulators and policy makers, researchers and academicians • NGOs and development institutions managers • Service providers to the consumer goods industry, healthcare, heavy industries, motor and other sectors • Agribusiness agriculture and related industries

Don’t miss unique opportunities to Sponsor, Exhibit, Speak and participate in Panel Discussions at the event: Contact FW Media Tel: +254 725 343 932; +254 20 8155022 Email: info@foodworldmedia.net MARKETING, MEDIA & MONEY

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JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA 29

NUTRITION

AfDB, African Union launch scorecard to track nutrition progress AFRICA – The African Union (AU) Commission, African Development Bank (AfDB) and other global partners have launched the Continental Nutrition Accountability Scorecard to raise awareness and help in curbing malnutrition.

The nutrition assessment kit encompasses key nutrition indicators, including internationally agreed nutrition targets, specific and sensitive interventions, policy and legal provisions, nutrition financing and socio-economic impacts.

Speaking during the launch, His Majesty King Letsie III of the Kingdom of Lesotho and African Union Champion for Nutrition said that the scorecard seeks to reinforce the commitments and nutrition programme investments aimed at addressing malnutrition. “As responsible leaders, the onus is on us to take action for the wellbeing of the African people.

We need to take appropriate and decisive actions now rather than later,” he added.

The scorecard was produced by the African Leaders for Nutrition Initiative (ALN) in partnership with Global Panel on Agriculture and Food Systems and the Bill and Melinda Gates Foundation. AfDB President, Akinwumi Adesina, noted that addressing malnutrition remains a key pillar to the African countries’ drive for economic growth. According to Jennifer Blanke, Vice President for Agriculture, Human and Social Development at the African Development Bank, the scorecard is part of a sustainable approach for the continent’s nutritional goals. The Accountability Scorecard recommends enhanced empowerment of women and adolescent girls and the provision of nutritional support especially during pregnancy and early childhood.

“Over time, the Continental Nutrition

M&A

“Over time, the Scorecard will expand in depth, data and usefulness, and will help to identify solutions to mitigate the burden of malnutrition that has impeded Africa for the past few decades.”

Jennifer Blanke, VP for Agriculture, Hunam & Social Development, AfDB

Accountability Scorecard will expand in depth, data and usefulness, and will help to identify solutions to mitigate the burden of malnutrition that has impeded the continent for the past few decades,” she added. Malnutrition in Africa remains a major challenge to its development, with the continent recording the highest numbers of malnutrition cases rising to 58.7 million from 50.6 million in 2000 according to data from United Nations.

Private Equity firm Agri-vie acquires stake in Jumbo Brands SOUTH AFRICA – Agri-Vie Fund II, a private equity fund and subsidiary of EXEO, has acquired a 36.5% stake in South Africa’s non-alcoholic beverage manufacturer, Jumbo brands.

Avril Stassen, Senior Partner at EXEO Capital, revealed that the firm has been eying investments into the fast moving consumer goods industry for some time now. Gustav Kraaij, Chief Executive Officer Jumbo Brands, said that the transaction with EXEO Capital will facilitate the transition of the family owned business into the current generation. Fanie Venter, Chairman of the Jumbo Brands Group, said that the investment by EXEO will boost the company’s operations and expansion plan. This comes at a time

when beverage manufacturer recently acquired the Café Enrista instant coffee brand from a global manufacturer and has unveiled plans of commencing manufacturing through the brand in its Johannesburg factory. Jumbo Brands was established in 1985 and has a strong focus on the manufacturing of fruit juice concentrates, squash, cordials, coffees, hot chocolate, and lemon juice. The company also manufactures corn and pellet style chips.

Agri-Vie Fund II investments are mainly focused on food and agribusiness in Africa and has recorded major growth since 2017.

Other than Jumbo Brands, Agri-Vie has also holds stake in South Africa’s Dew Crisp, Fairfield Dairies, Intelichem, Cape Olive and Hygrotech, Ethiopia’s AfricaJuice, and African Spirit Group.

M&A

Tanzania avocado producer Africado receives US$2.8m loan from Finnish fund TANZANIA – Africado Limited, a Tanzanaian avocado producer, has secured a US$2.8 million loan from Finnfund, a Finnish development finance company, to boost production to meet rising demand of the fruit.

Africado Chief Executive Officer, James Parsons, said that the funding will enable the company to expand and develop its operations and diversify into other investments. “Finnfund’s funding of Africado has enabled Africado to pursue new investment opportunities. In expanding

production areas and with the introduction of new avocado cultivars Africado will have a sustainable business to the economic benefit of the local community in terms of employment and development and nationally e.g. in terms of increasing export earnings,” he said. He added that the company plans to extend its avocado plantations and the operation of the present packing department as well is considering diversifying into nut production.

“It is important to promote responsible farming methods of avocados and other crops. With the help of Africado, the

30 JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

smallholders also get an important sales channel and opportunity to export their products,” said Finnfund’s Head of Agri and Forestry portfolio, and Senior Investment Manager, Jari Matero.

Africado was established in 2007 as Tanzania’s first commercial and international grade producer of avocadoes.

The company has introduced high yielding and fast maturing avocado cultivars, Hass, through an out grower scheme to about 2000 farmers, which are exported primarily to the European Union market.

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PEOPLE

Unilever’s Limuru Tea Plc appoints Gerridina Johanna as new CEO KENYA – Kenyan tea producer Limuru

Tea Plc, a subsidiary of Unilever Tea Kenya Limited, has announced the appointment of Gerridina Johanna Marria Ten Den as the new Chief Executive Officer, effective 1st March 2019.

Gerridina has over 28 years in Unilever and was the immediate former Procurement Director Tea-Africa, apart from serving roles in marketing and procurement in Netherlands, Switzerland and Kenya. She has a wide experience in the tea industry where she has in the past participated in the transformation of the tea procurement organisation into a resilient strategic partner.

According to a company statement, Gerridina has also pioneered increase in efficiencies in tea logistics and procurement, expanding the supplier base in Africa by closely working on sustainable sourcing and increasing product quality. The company says that Gerridina’s main role will manage risk and corporate reputation,

M&A

Wine and spirits firm Pernod Ricard acquires stake in Jumia to grow footprint in Africa AFRICA – French beverages distillery and the world’s second largest wine and spirits company has said that it has invested in Jumia, the leading e-commerce player for an unspecified stake to strengthen its position in spirits and wines on the continent.

The investment in Jumia strengthens their partnership and will see Pernod Ricard, which is present in 13 African countries, become a strategic shareholder in the African online retail platform.

Pernod Ricard is looking to leverage on Jumia’s muscle in digital platform solutions, products and services logistics, skills and online payment systems. The two companies will develop innovative distribution strategies on the African continent.

The funding from Pernod Ricard positions Jumia to consolidate its regional leadership, and will allow Pernod Ricard to benefit from new opportunities to distribute its products online on the continent.

Founded in 2012, Jumia claims to be the leading Pan-African e-commerce platform active in 14 African countries.

“We are very proud to welcome Pernod Ricard as a new strategic partner of Jumia.

This investment is an acknowledgement of the growth and innovation that Jumia

has achieved since 2012,” said Sacha Poignonnec and Jérémy Hodara, co-CEOs of Jumia.

“Pernod Ricard has made Africa its new frontier, as shown by the successive openings of subsidiaries over the last few years. Our strategy is consumer-oriented and we strive to transform to strengthen our growth in this very promising continent. Jumia is a partner of choice as digital and e-commerce represent real strategic accelerators in this region for us,” said Gilles Bogaert, Pernod Ricard’s EMEA and Latin America CEO. The French spirits maker is banking on Africa for growth where it has increasingly expanded its footprint, motivated by growing middle class and economy. The group claims a spirits’ market share of 12% in value in South Africa, ranking number two behind British rival Diageo and is present in Namibia, Kenya, Nigeria, Ghana, Angola and Mozambique, employing more than 500 people in Africa. According to research firm, Euromonitor, Pernod’s market share for spirits by volume in Africa plus the Middle East is 4% compared to 15.5% for Diageo. The partnership comes after the two teamed up in Kenya and Ghana to launch a one-hour alcohol delivery service through an app called Jumia Party.

MARKETING

USAID hands over dairy plant to Kenyan cooperative implementing and managing Limuru Tea Plc risk management approach.

The Nairobi Securities Exchange (NSE)-listed firm reported a total revenue drop of 23% to US$796,800 in 2017 from US$1.03 million in 2016. Founded in 1895, the company engages in the growing of green leaf tea and owns 275 hectares of tea.

Unilever Tea Kenya Limited, is the major shareholder with a 52% stake of the issued share capital of Limuru Tea and acts as the company’s managing agent in the growing, manufacturing, sales and marketing of its teas. In 2017, the firm produced 2,039,613 kilos of green leaf, a 35% decrease due to prolonged drought in the East of Rift Valley where the firm is located.

FOODBUSINESSAFRICA.COM

KENYA – Kenyan dairy farmers in the Eastern region have received a modern dairy plant from the United States Agency for International Development (USAID) which is set to boost milk production.

Located in Makueni county, the fully installed dairy processing plant has a capacity to pasteurize 1000 litres of milk per hour. The project was developed through a partnership by the International Livestock and Research Institute (ILRI) USAID and the local country government According to the Dairy Farmers Cooperative Society chairman Stephen Kyonda, the plant is a step towards achieving their vision of being the leading cooperative in producing quality and quantity milk in Ukambani.

Speaking during the handover ceremony, Dr. Romano Kiome, Chief of

Party at ILRI urged the dairy farmers in the region to increase milk production in order maintain steady supply of milk to the plant for meaningful processing.

In Kenya, small scale milk producers account for up to 80% of the total milk produced in the country which is more often than not sold directly into the informal market by retailers. The country is a high milk producer which according to the Kenya Dairy Board, milk production stands at 5.2 billion litres annually with consumption at the household level amounting to 1.4 billion litres while 2.5b litres is supplied in the informal market.

According to Kenya Dairy Board, the country boasts of 25 licensed processors with a capacity to handle approximately 650 million litres per year.

JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA 31

UGUR PROMILLING CEO Okcul Barlik with General Manager Mr Omer Eltayeb of SEEN FLOUR MILLS in Sudan

Mr. Millan Shah and the team from ALAPALA in their booth

President Midle East Andres Flueckiger of BULHER & team with their top management at their booth

Mr. Mejor Zhao and Candy with their customers at the China Pingle booth.

32 JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

Kenyan local millers engage in business networking during a coffee break

Mr. Marcel Barendsen with a team from FRIGORTEC GRAIN COOLING.

Mr. Simiyu and Andrew from CIMBRIA with customers

Mr. Abdulhamid and his collegue from GENC DERGIMEN at their booth.

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DSM NUTRITIONAL PRODUCTS, Mr. Peter Waithigo and Lee Anna Van Zye with the team.

CEO of TANIS Mr. ERAY TAN and ERHAN the marketing manager engage customers at their booth

SAATI Business development and marketing team in a business meeting with customers.

Mr.Francis Juma CEO FOODWORLD MEDIA with Leonardo of OMAS FOODBUSINESSAFRICA.COM

Ms. Virginia & Lavender from FOODWORLD MEDIA team engage with customers at IAOM in Nairobi

Delegates at IAOM network during a coffee break during the confence and exhibition

SILO CONSTRUCTION and ENGINEERING team at their booth.

Mr. Isak de Necker Director ROFF and Koot Jordan Sales Director JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA 33

M&A

M&A

Germany based Brenntag UK PE fund Actis gets regulatory approval to acquire Holding gets nod to acquire Kenya’s Java House Kenyan firm Desbro Fast casual Artcaffe has also seen Emerging Capital Partners take a majority stake KENYA – The Competition Authority of

KENYA – The Competition Authority of Kenya (CAK) has approved acquisition of Kenyan chemical distributor Desbro Limited by Brenntag Holding B.V., a subsidiary of Germany-based chemical distributor Brenntag Group.

The transaction will see 100% acquisition of the Desbro’s Business and assets including intellectual property, business records, equipment, goodwill, licences, stock, third party rights and employees

by Brenntag. Brenntag entered into an agreement to acquire the Desbro Group in Kenya, Tanzania, Uganda and the UAE in September 2018.

Karsten Beckmann, CEO Brenntag Europe, Middle East and Africa, said that the acquisition was owed to Desbro’s rich product portfolio and well infiltrated market both in East Africa and Middle East. “With Desbro we are acquiring a leading and well respected market player. The company provides us the needed market expertise, organisation and infrastructure to build on our strategy to claim outstanding Africa coverage,” he said.

Desbro’s product offering includes plastics, textiles, food, beverges, water treatment, coatings and construction.

Brenntag Group is a chemical distributor with it business serving Europe, Middle East and Africa and is involved in the manufacture of food additives, preservatives, oil and gas. It is already present in South Africa having purchased several companies in recent years, including Lionheart, Plastichem, Multilube and Warren Chem Specialities.

The acquisition of Debro by Brenntag follows the acquisition of Chemicals & Solvents, a distributor of chemicals in Eastern Africa by IMCD in 2016, and shows the attraction that the region offers for the big multinational distributors of chemicals.

Kenya (CAK) has approved the proposed acquisition of indirect control of casual restaurant Java House’s owner, Abraaj Holdings by UK-based private equity (PE) fund Actis for undisclosed fee.

Actis, a leading investor in growth markets across Africa, tabled intentions to acquire Abraaj Holdings’ Kenyan assets including Java House operations and a 10% stake in Brookside Dairy Africa last year in October. Abraaj, based in Dubai, had undertaken a liquidation strategy following revelations including misuse of investor funds. Its investors voted in favour of an international private equity firm, Actis to take charge of its operations in the Middle East and North Africa. The value of Actis’ acquisition of Abraaj’s Kenyan assets was not however, disclosed.

Abraaj Group acquired 100% of East Africa’s leading coffee chain Java House for more than US$100 million from Emerging Capital Partners in late 2017. Java House has over 60 stores across East Africa. The coffee chain has unveiled plans to invest about US$10 million across the East African region this year as part of its strategy to maintain a

leading position in the sector.

The company has said that it has plans to introduce a new brand of eateries and expand its Java Express stores in a race to cement its place as the number one restaurant chain in the region. These include a new concept store at strategic points in the region, starting with two locations in the Kenya’s capital, Nairobi in May and June.

Meanwhile, Africa-focussed private equity firm Emerging Capital Partners has acquired a majority stake in Kenyan restaurant chain Artcaffe Group, as international private equity investor interest grows in East Africa.

The move, for undisclosed fee, comes after ECP’s stake sale last year in Kenyan casual dining and coffee chain Java House to Abraaj Group. Artcaffe operates 26 outlets in Kenya’s capital Nairobi, as well as a bakery, kitchen, and logistics centre that supplies its restaurants.

“There is immense opportunity in eastern Africa for casual dining concepts. Alongside population growth and increased urbanization, demand for international cuisine and casual, high-quality dining experiences is rising,” ECP said in a statement.

INVESTMENTS

Zimbabwe’s Dendairy set to expand milk production ZIMBABWE – Zimbabwe’s leading dairy producer Dendairy is set to commission three new packaging lines as part of its ongoing expansion drive as it seeks to boost its production capacity, reports The Herald.

The dairy producer aims at increasing its production capacity from the current 4.6 million litres to about 8 million litres per month. Additionally, the company has embarked on refurbishment of existing sterilising and pasteurising plants, construction of a new office block and expansion of cold and incubation rooms.

Darryl Archibald, the company’s director said that the company has managed to pull through the challenging business environment and is set to commission the packaging lines which are in their

34 JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

final phase of installation. “We are set to commission three new lines very soon, we are waiting for a couple of parts that are needed to complete the assembling.

The equipment is already on site, but due to the current economic challenges, we could not complete it in time,” said Archibald.

In August and September 2017, the dairy producer refurbished its steriliser, increasing the capacity to 12,000 litres per hour as well as increase in capacity of the pasteurising plant to 10,000 litres per hour as part of its expansion programme. He highlighted shortages in forex and reduced consumer spending as major challenges facing the industrial sector in the country, appealing to the government to resolve the matter.

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Contact us on info@foodworldmedia.net or +254 20 8155022/ +254 725 343932 JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA 35

DIPAM SHAH

Managing Director, Glacier Products Ltd 2019 | FOOD BUSINESS AFRICA 36 JANUARY/FEBRUARY

FOODBUSINESSAFRICA.COM

TRENDS

FOOD SAFETY

OPERATIONS

FORMULATIONS

REPORT

GLACIER PRODUCTS LIMITED: Eastern Africa’s leading ice cream and chocolate maker

By Virginia Nyoro & Ronald Onsare

After abandoning a business in garments over 23 years ago to venture into ice cream production, Glacier Products Ltd has grown in leaps and bounds, on the way delighting, enchanting and tantalizing their customers with world class products while achieving formidable milestones. Food Business Africa team recently paid the leading ice cream and chocolate maker a visit to hear their journey it has made in cooling palates and enthralling moods from the company’s Managing Director, Dipam Shah.

G

lacier Products Ltd is a wellknown ice cream and chocolate confectionery manufacturer operating from Nairobi, Kenya and serving the entire East African region. The company has a rich history spanning nearly 40 years.

There are about 10 other ice cream makers spread across Nairobi and Mombasa that are heeding the scream for ice cream in a market that looks very promising. The cool and sweet story of Glacier Products begun in 1979 with a small ice cream company along Pemba Street, Nairobi at a time when technology, storage facilities and space were limited. Limitations in packaging options also meant that differentiating brands was difficult, coupled with restricted market access to both in Nairobi and upcountry.

“When I came back from the United Kingdom, the original business was up for sale,” begins Dipam. “The family decided to venture out of our traditional business which was in garments. We bought this company as a going concern in 1995 and we have been running it since then.”

From a small firm with a small office, two distribution vans and a staff of just 20 people, the company has grown phenomenally, moving to an ultra-modern ice cream factory, setting up a new chocolate factory among a myriad of milestones that has seen the firm punch above its weight in the market. “We embarked on a journey from a turn-over of KSH 10 million (US$100,000) at the takeover per year to

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the current figures above KSH 1 billion (US$10 million). It wasn’t easy at the onset; it was a struggle selling ice cream as we did through vendors using push-carts. It was quite challenging at a time when the cold chain was not as big. We have now grown to 250 employees, with a fleet of over 30 refrigerated vehicles serving the whole of East Africa region,” Dipam reflects.

Backed by the growth and a demand for premium products the company has continuously upgraded and improved its processes to position itself with the dynamics of the industry. In the last five years they have introduced extruded ice cream products, rebranded their Dairyland brand, got into brand licensing to work with the Warner Bros. characters for a new children’s product line and integrated Amore to Dairyland Premium.

Other notable developments have been modernization of the milk delivery process, ice-lolly machine upgrade, CIP automation and chocolate plant equipment upgrade that encompassed a new chocolate molding line.

Success on the back of hard work

So, what has enabled this firm which is behind the Dairyland brand to be ahead in a game and market that others who have tried have fallen by the way and those still around are playing catch up? Dipam alludes the firm’s success to shrewd decisions, the culture of excellence and the strive to

provide quality, which he is particularly passionate about, above anything else. “As a manager you must keep in mind that you don’t have all answers; you can’t solve all problems,” states Dipam, the passion he has for the company radiating out unforgivingly.

“Therefore, you need a strong support team that you believe in and show them that you believe in them. The management is accessible to all. We help, guide and solve emerging issues. Regular brainstorming resolves most of our problems. I don’t interfere so much with what the employees are doing because they are specialists in their various areas.”

The company has a very able and empowered Human Resource department to drive the work force requirements.

Finance is a big department where Dipam’s co-directors are in-charge. The Production segment is headed by a Group Production Manager who runs both the ice-cream and the chocolate factories. A fully-fledged Quality department was created when the company moved to its new factory and headquarters on Road A off Enterprise Road in Nairobi’s Industrial area. The department is critical in the operations and it is adequately financed and supported.

“It was a bit of a struggle when it was hived from the larger production function; the production team found it difficult to accept the ‘interference’, but we had to instill the understanding and the importance for everyone to embrace quality,” stresses

JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA 37

The top management team at Glacier Products Ltd, led by Mr. Dipam, Shah (far right)

“With the Top 100 recognition and attention that comes with it, we got an opportunity and a justification to focus more on quality systems that culminated in our company acquiring ISO 22000:2005 in 2012.”

Dipam Shah, MD

Dipam. “For no one can achieve their production goals without quality in mind.”

The other departments are Supply Chain and Sales and Marketing. The Marketing department is strong, robust, driven and independent with an elaborate financial backup. To remain focused, Dipam tells our team that the manufacturing function and the marketing function must be handled and treated distinctly. He says, a manufacturing firm is solely a manufacturing firm and a marketing one just that. Dipam is more focused on operations (manufacturing and logistics), a function he believes to be very intricate and need a lot of his input.

The company underpins the culture of excellence in people throughout the organization. The firm is out to build its identity along excellence that is driven

by customer satisfaction and not profits solely. In the small world we operate in, Dipam emphasizes the values of procedure for every action undertaken.

“Procedure entails the DNA of our company. Procedure precedes all actions.

This culture enables us to inculcate quality and value from which we chart our way of standardizing events in an ever-changing work and market environment,” he affirms uncompromisingly.

Long journey to success

When Glacier Products set out, they didn’t get much into export market although they had a good market in Tanzania.

Traders picked goods from Nairobi. This was however to change when in 2005 the Bakhresa Group opened a big factory in Tanzania, consequently gobbling up the market that Glacier had enjoyed for a long time. “It is a market we had enjoyed without making much effort. We had to go back to the drawing board and re-strategize,” says Dipam. The re-strategy saw them do a survey by visiting several outlets, which led to a revelation that demand for Dairyland products still existed, but the product was not available in the market. With this sound verdict, they decided to go back to Tanzania

38 JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

and distribute their ice cream. They put up a depot in Dar es Salaam with an office, cold room, some vans and freezers for the outlets in 2006, marking the company’s first big breakthrough. The depot served Dar es Salaam and the Kilimanjaro region of Arusha and Moshi. Gradually the firm penetrated other regions in Tanzania.

With the company experiencing extraordinary growth, the initial facility that was essentially a go-down could no longer meet or match the unexpected growth. Space was a major constraint, let alone the fact that the facility had not been specifically purposed for food processing.

Awareness on quality and safety were stark too; it was inevitable to relocate to align with the growth and industry and market dictates. The firm moved to the factory fit for its operations in 2008.

The astonishing fast development saw the firm open a depot in Kampala, Uganda in 2009.

In the same year Glacier Products, through their ice cream range of Dairyland Mia and Amore, received Superbrands status award, becoming the first and only ice cream brand to do so. Before the dust had settled, the fast-growing firm was nominated in the Top 100 mid-sized FOODBUSINESSAFRICA.COM

MY FACTORY, MY STORY | GLACIER PRODUCTS LIMITED

companies in Kenya in 2009/2010.

“With these recognitions and the attention that comes with it, we got an opportunity and a justification to even focus more on quality systems that culminated in our company acquiring ISO 22000:2005 certification in 2012,” registers Dipam delightedly. The firm had demonstrated its ability to control food safety hazards in the food chain and hence adequately protected the consumer. It is in the same year, buoyed by the quality achievements and fueled by the quest to offer high quality and innovative products, that the company started using natural colors in most of its ice creams. “This was a costly decision, for natural colors are expensive. However, in line with our vision to deliver quality we had to stick on this path which has nonetheless gotten us desired mileage despite the cost,” Dipam reiterates confidently.

2013 welcomed the launch of novelty ice cream bars by the upward moving firm. The confounding growth had spiraled and as Dipam confides, they hadn’t foreseen it. “We had not envisaged the very fast growth in the business. This led to new challenges of cold storage and space,” he says. To shape up, the firm put up, nearby, a massive cold storage facility to which all the production was dispatched and stored for onward distribution in 2013. This became their distribution hub.

Chocolart, the delicious varieties of chocolates from GPL.

Food safety and operations excellence

Good times were still on the horizon for the firm that had surmounted many peaks and momentous events unfolded. In 2015, Glacier Products upgraded their ISO 22000:2005 to FSSC 22000 certification. Having scored a first by being the only ice cream company in Kenya to acquire the ISO 22000:2005 certification, the firm was now way ahead of its competitors by demonstrating that the company had a robust Food Safety Management System in place that meets the requirements of its customers. The latter certification is recognized by the Global Food Safety Initiative (GFSI); this injects confidence on the highest hygiene standards and stringent procedures put in place by the firm.

The journey to the company’s food safety excellence journey began when the company received the ISO 22000:2005 certification, according to Lilian Adhiambo, the company’s Quality Assurance Manager and Food Safety Team Leader. Lilian declares that the company has achieved great progress in terms of plant hygiene, personnel safety and operational excellence since the operationalization of the food safety systems, and that the company found it easier to update the system to the FSSC 22000 once the ISO 22000:2015 was in place, since the requisite documentation and procedures were already in place. “One of the main contributing factors to the failure of a food safety management system is brought about by the company assigning one individual to be the only one with the full knowledge about the system. In our case, we do not have this problem owing to the fact that we have in place departmental food safety leaders who have been trained in the process and handle effectively any food safety system issues, including audits and management review meetings,” reveals Lilian.

Lilian is full of praise for the top management led by the CEO for setting the pace for setting the pace and tone of excellence in food safety management in the company. “The management has placed the right priority on food safety excellence in our organization, providing the requisite support in terms of resources, time and training, both internal and external. The support we have received has enabled everyone in the company to place food safety FOODBUSINESSAFRICA.COM

Dairyland icecream products, KULFI, Cookies Cream, Salted Caramel, MOCHA, Caramel with nuts etc

Various flavours of icream products from GPL

Fun ice cream produtcs with an appeal for kids.

JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA 39

“The management has placed the right priority on food safety excellence in our organisation, providing the requisite support in terms of resources, time and training, both internal and external.”

Lilian Adhiambo, QA Manager & Food Safety Team Leader

at the top of their mind and actions,” she adds. However, Lilian says that the duplicity of roles between local authorities, ministry of health and the Kenya Bureau of Standards (KEBS) makes it extremely difficult for the company to comply with regulatory requirements, with each of them having conflicting requirements.

She urges that the government should harmonise the roles played by each of these regulators and critically, also look into ways the State of the art equipment in the GPL factory inindustrial area, Nairobi regulators can also become change agents by working closely with food companies to improve regulatory compliance.

Quantum leap to chocolate making

Meticulous quality testing takes place in the QA laboratory in the Nairobi plant

Chocolate packing, Glacier Products Ltd , Kikuyu plant

Food safety team verify parameters in the plant led by FSTL Ms. Lillian Adhiambo 40 JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

To put the icing on the ice cream, the firm pulled one of its other major milestones by opening a chocolate manufacturing plant in Kikuyu in the same year, 2015, becoming the first East African firm to venture into chocolate manufacturing. Dipam reveals that the move into the chocolate segment was relatively easy, as the Dairyland brand already had a lot of brand equity in the market.

“We wanted to ride on this strength of the brand and introduce other products. We settled on chocolate because we sniffed a niche in the growing market,” says Dipam of the decision. The company saw an opportunity to take advantage of the loyalty to the strong Dairyland brand and so decided to come up with another product that would resonate with their customers. The ice cream plant did not have enough space to incorporate chocolate manufacturing, so the company established a new plant in a different site at Magana, Kikuyu in Kiambu county near Nairobi.

Why Kikuyu, a location way out of the main industrial hub in Nairobi? By 2015, the company had concluded that it was becoming less and less ideal to manufacture in Nairobi; it was increasingly becoming an expensive place. The firm decided to move outside Nairobi. “Initially we were apprehensive about the ease of accessing expertise in the form of technical support promptly because of the distance from the manufacturing hub. We were also not certain about the reliability of electricity because we were setting out away from the Nairobi industrial area, where KPLC promptly mitigates power outages,” Dipam talks of their part worries.

Interestingly it turned out to be a sound decision and all their worries were just that, worries. Since the commissioning of the plant, they have had reliable power supply and the technical support has been readily available. The only notable challenge is the nonexistent sewerage system, though that also has not affected their operations much because chocolate processing does not require an elaborate sewerage infrastructure as ice cream would.

The facility was set out as a pilot plant with caution in mind because it was a new area for them and therefore the need to test the waters. “When things started shaping up as planned, we embarked on expansion. We have been constantly upgrading the plant,” says Dipam. In 2016/17 the company automated some processes including the molding line and in 2018 some new equipment that tripled the capacity from inception in 2015. It has nonetheless been a stiff learning curve for the chocolate maker. To roll out acceptable FOODBUSINESSAFRICA.COM

“We wanted to ride on the strength of our Dairyland brand to introduce other products. We settled on chocolate because we sniffed a niche in the growing market for chocolate products.”

Dipam Shah, MD

products took time. Having started with the chocolate compound, it took up to one year to get it right for the chocolate bars.

Issues circulated around material sourcing and refining the R&D process. “We had to bring in a consultant on board though he was an expert in ice cream with some ideas in chocolate. The equipment supplier worked closely with us but by and large most of the development and processes have been in-house,” prides Dipam.

Chocolate making expertise

Talking with Kevin Ochieng, the production manager at the chocolate plant we get to feel the strides the company has made since 2015 at the new plant that was supplied and commissioned by a renowned Italian supplier. “Here we make chocolate compounds, chocolate bars, spray chocolate and coating chocolate,” Kevin informs our team. “The equipment was obtained from Italy from a renowned chocolate making equipment manufacturer, who also installed and commissioned the facility.” Currently, the plant has a capacity of producing 150 kgs of chocolates per hour based on the market demand. It is evident as you move around, the premises design and layout took into consideration the requirement for ensuring production of safe products by provision of enough hand wash stations, changing rooms, washrooms designed not to open directly into the processing floor, floor layout that allows for effective cleaning and sanitation, waste management receptacles and pest control. “There is a vibrant team in place managing personnel safety through the OSHA requirement and the appointed OSHA Coordinator. There are fully trained first aiders and provision of personal protective equipment,” Kevin talks about personnel safety hearteningly.

The new plant has already bagged a significant accolade, after coming in second at the prestigious Africa Food Industry Excellence Awards 2018 in the Sugar and Confectionery sub-category at the New FOODBUSINESSAFRICA.COM

Plant of the year category at the event which was held in Nairobi, Kenya. The judges were impressed with the plant’s focus on hygiene, food safety and processing excellence.

Rising demand in Kenya and region

Dipam says that consumption of ice cream is on the rise in Kenya and the East Africa region, as can be evidenced in an increase in retail sales. Much of this growth can be attributed to proliferation of ice-cream parlours within the growing number of shopping centres in the country, rising disposable income levels among middleincome groups and the positioning of icecream as a dessert in the majority of hotels and restaurants throughout the country.

Africa’s hot weather and growing youth population are firmly behind the trend, as consumption is highest among children, teenagers and young adults. “The market for ice cream and chocolate is growing steadily in the East African countries due to burgeoning middle-class and increasing product familiarity,” agrees Dipam.

Despite the evident progress and growth

by Glacier there are several hinderances in the market and regulations. “Ice cream is not developed as it could have been desired regionally due to accessibility and affordability. The sector depends on a sound cold chain, which requires substantive investment,” Dipam explains. Delayed payments from customers affects cash flow and impacts operations negatively. There is also the burden of obtaining distribution permits for every county in Kenya, thereby increasing the cost of delivery. Most of the manufacturer’s raw materials are imported and at times delays in import clearance ends up stagnating onward activities which affect the general output at the firm.

Most recently, in 2018, Uganda and Tanzania imposed taxes on Kenyan-made packaged food products containing added sugar, including chocolate confectionery, ice cream, sweet biscuits and sugar confectionery. The stated justification for this was the use of imported industrial sugar in the manufacture of these goods.

These stringent tariffs are stifling export trade and eroding the expansion into the East African region. The distributes its ice cream in Kenya, Uganda, Tanzania, Rwanda, Southern Sudan, Sudan and in UN missions as far as DRC and Somalia.

Their chocolate market is concentrated in Kenya and Uganda with plans to go wider and further

ABOUT DIPAM SHAH Dipam Shah has an academic background of an accountant. He worked in an auditing firm in the UK as a lead auditor. He was given the opportunity to run Glacier Products as the MD upon returning to Kenya in 1995.

The accomplished entrepreneur and manufacturer is very passionate about Glacier Products and has taken the company from obscurity at take over and grown the brand, expanding the products scope and market to propel it to the leading ice cream manufacturer in the whole of East Africa region. He has seen the company move to an ultramodern facility and the commissioning of a new chocolate factory at a different location. In 2018, he was awarded the Food Industry Champion Award at the Africa Food Industry Excellence Award for his dedication and drive to growing the company into one of the most important food industry players in Eastern Africa.

KEY MILESTONES FOR GLACIER PRODUCTS 1979: Start of Glacier ice cream’s story (Dairyland) 1997: New branch opened in Mombasa 2005: Dairyland rebranded with Cone Man logo 2006: Amore Mai (now Amore) launched as Dairyland’s premium line. : New Dairyland branch opened in Dar es Salaam 2008: GPL moved into new ultramodern premises in current location 2009: GPL first and only ice cream brand to be awarded Superbrands status 2010: Dairyland awarded Halal certification : GPL nominated one of the top 100 mid-sized companies in Kenya for 2009-10 2012: GPL Awarded ISO 22000:2005 2012: GPL started using natural colors in most of its ice creams 2015: Awarded FSSC 22000 : Dairyland opens chocolate manufacturing plant 2016: Dairyland re-branded the logo, tubs and colours 2017: SOMA Award winner: consumer products 2018: Africa Food Industry Excellence Awards: New Sugar & Confectionery Plant of the Year runner up

JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA 41

NEW PRODUCTS ON THE SHELF

JOOZ FRUIT DRINKS

PHULKA ATTA MARK 1

Bidco Africa has introduced Jooz, a range of fruit drinks products available in 300ml, 500ml and 1.5L flavour options including mango & passion, tropical, orange, apple & peach, strawberry & guava and mango. Declaration: Preservative free

Bakex Millers has introduced Phulka Atta Mark 1 flour, available in 1, 2BIO and 10 kg paper bags. (Find more details in the ACTIVE next issue of this magazine) Declaration: 100% whole wheat flour

Bidco Africa, Kenya - www.bidcoafrica.com

Bakex Millers, Kenya - www.bakex.co.ke

KO ICE TEA

UJEE FLAVOURED PORRIDGE

Savanna Brands has debuted KO Ice Tea a range of flavoured ice tea products available in 500 ml glass bottles. Available in hibiscus & lime, tree tomato & passion, lime & ginger, mango & ginger, pineapple & mint, passion fruit and lime flavours.

Ujee Limited has unveiled a line of flavoured porridge products available in 500g paper packaging with various options of flavour: chocolate, sour, banana, strawberry, and original.

Savanna Brands, Kenya - www.savannabrandsco.com

Ujee Limited

NEW PRODUCTS LISTING

Do you have any new product innovations you would like to see on this New Products page? Send us the product details about the product and we may see it listed here for FREE in a future edition of the magazine.

SOY VEG BONDWE

Essential Commodities, Zambia Essential Commodities launches Soy Veg Bondwe, a blend of soy nuggets with local vegetables, available in 80 ml packets.

Declaration: High in protein for vegans and vegetarians 42 JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

What we require to list a product on this page: • High resolution photos of the product • Name of the product • Types of SKUs available • Varieties (e.g. flavours) available • Brief description of the product covering target market, unique product profile, declarations etc NOTE: The product should be one year old or less from the time it was launched to be considered.

Send details to press@foodworldmedia.net or call us.

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BIO BIO ACTIVE PROBIOTIC YOGHURT

AFIYA DRINKS

Bio Food Products has introduced Bio Active, probiotic drink yoghurt available in three varieties: blackberry & raspberry, cucumber & pint and yuzu, apple & lemon. Available in 300 ml

Watercom (T) Ltd has unveiled Afiya, a range of fruit flavoured drinks available in 500 ml bottles and various flavour options, BIO ACTIVE including lemon, orange, passion and more.

Bio Food Products, Kenya - www.biofoods.co.ke

Watercom, Tanzania - www.watercomtz.com

URBAN TREATS MINT

ENNSVALLEY NUTRITIOUS BREAD

Norda Industries introduces Urban Treats candies in a range of cool mint, juicy mango and mixed fruit flavours.

Ennsvalley Bakery has debuted a range of nutritious bread products including soya loaf, turmeric and fit loaf. Available in 600g packs.

Norda Industries, Kenya - www.latomilk.com

Ennsvalley Bakery - www.ungagroup.com/ennsvalley

AFIA MALT DRINK

BIO GREEK YOGHURT

Kevian Ltd has launched an extention to their Afia drinks brand with a line of canned malt drinks available in 330 ml cans in coffee, ginger and other flavour options.

Bio Food Products has added Bio Greek Yoghurt to its line up of premium fruit yoghurt products. Available in Honey, Fig, Nature and Prune in 200ml.

Kevian Ltd, Kenya - www.kevian.co.ke

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Bio Food Products, Kenya - www.biofoods.co.ke

JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA 43

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By Godfrey Anunda

ANCIENT GRAINS GAIN RELEVANCE IN FOOD INDUSTRY

A

s old as the name suggests, ancient grains date back to over 10,000 years ago when prehistoric inhabitants transitioned from hunting and gathering to a farming community.

While ancient grains are largely unchanged from their initial domesticated varieties, modern grains like wheat, maize and rice have been developed over time through mutation, selective cropping, breeding and research in biotechnology.

According to the US Food & Drug Administration, whole grains may include amaranth, barley, buckwheat, bulgur, maize, millet, quinoa, rice, rye, oats, sorghum, teff, triticale, wheat, and wild rice. While maize, wheat and rice are widely used by communities around the world, the other grains have had limited utilization as human food despite their being appreciated for their unique nutritional profiles, which include good sources of protein, omega3s and antioxidants. These ancient grains are also largely consumed whole, hence contributing directly to the whole grains intake by the population plus they also fit into the clean label trend.

Ancient grains are not only becoming a favorite on the menus especially in Africa but around the World. According to the Whole Grains Council, there is a surge in what it calls ‘seekers of the old grains’, as their use in menus and restaurants becomes an unavoidable option for foodservice professionals including in pizza chains. The Dietary Guidelines for Americans, 2005 recommends that Americans, "consume 85-gram equivalents of whole grain products per day, with the rest of the recommended grains coming from enriched or whole-grain products and that "in general at least half the grains should come from whole grains."

According to research company Innova Market Insights the use of ancient grains grew 11.6% in 2016 from 2015, with the leading category for tracked launches globally being bakery, ready meals, cereals and snacks. The most utilised ancient grains used

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in all food and beverages launches was quinoa (31%), chia (23%) and buckwheat (22%), while the most featured positionings by the product developers with a positive growth were energy/alertness (+35%), low sugar (+34%) , no added sugar (+30%) and high/source of protein (+29%).

Below is a run-down of some of the most common ancient grains and their applications in the food industry

Chia

Chia is packed with protein as high as 14%, 36% fibre and an abundance of ALA omega-3 that is vital in heart health. Easy to use, they can be eaten raw, soaked in beverages, added to porridge, puddings, and baked goods, and even included in smoothies, breakfasts, yoghurt, salads and vegetable dishes. They can also be used to thicken sauces or as a vegan egg substitute in recipes due to their fat absorbing ability.

Chia seeds have proven benefits in diabetes management, heart health, blood sugar management, reduce inflammation and support bone health due to the high concentration of calcium, more than milk products. Further, the seeds are gluten free and support your body’s natural detoxification pathways, repair your cells, reduce inflammation and support a healthy digestive system.

Launches of products with chia has to the hundreds in 2013, with US accounting for half of the introductions, based on Innova Market Insights statistics. Use of chia has gradually moved from snacks to cereals. It has also found use in bakery and breakfast categories.

Quinoa

Until recently, the health benefits of quinoa, a pseudo cereal which JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA 45

originated in the Andean region of north-western South America has been in the dark. Unlike wheat, it is gluten free, and provides protein, dietary fiber, B vitamins, dietary minerals in amounts above those of wheat, corn, rice and oats.

It was until the 21st Century when quinoa became more consumed in North America, Europe, and Australia. The interest in Quinoa has been on the rise since 2013 when the United Nations General Assembly declared 2013 the "International Year of Quinoa". This was in recognition of the Andean people for managing to preserve it in its natural state as food for present and future generations.

With twice the protein content of rice or barley, quinoa is also a very good source of calcium, magnesium and manganese. It also contributes useful levels of several B vitamins, vitamin E and dietary fibre.

Cooked quinoa seeds become fluffy and creamy, yet maintains a slight crunch. It has a delicate and subtly nutty flavor, versatile for breakfast (as a cereal), lunch (as a salad) or dinner (as a side).

Quinoa is among the least allergenic of all the 'grains', making it a fantastic wheat-free choice. Like buckwheat, quinoa has an excellent amino acid profile, as it contains all nine essential amino acids making it a complete-protein source. Quinoa is therefore an excellent choice for vegans. With a low glycemic load, it is also suitable for diabetic people and for those suffering from allergies or with a compromised digestive system, such as gluten and lactose intolerance.

Launches of products containing quinoa rose nearly 50% over the 12 months to the end of September 2013, and rose more than five-fold over a five-year period, according to Innova Market Insights.

Sorghum, millet and barley

ResearchAndMarkets statistics reveal that global millet and sorghum grains market accounted for US$8.54 billion in 2017 and is expected to reach US$11.04 billion by 2026 growing at a CAGR of 2.9% in the forecast period.

Sorghum is native to Australia and is an important staple food of the upland, drier parts of Africa and India. It is rich in carbohydrates mainly starch, moderate protein, low in fat and a good source of dietary fiber. Today, it is utilized in multi-grain products including breakfast cereals and bars or can be boiled whole and eaten just like rice. In Africa, the brewing industry has also adopted sorghum as a source of carbohydrates for the Nutrient-rich millets have enjoyed global endorsements from international agencies such as Food and Agriculture Organization of the UN and India which moved a proposal to observe 2023 as the International Year of Millets. These grains, rich in proteins, vitamins, minerals and dietary fiber are recommended to alleviate nutrition deficiencies in especially women and children. Millets can be used in various forms, including processed as breakfast cereals, snacks, and in baked goods. A recent study published in the International Journal of Current Microbiology and Applied Sciences highlighted that millet can be successfully incorporated as an ingredient for bakery products as it does not affect the overall sensory acceptability. More importantly, it enhances the product’s nutritional value that non-enriched wheat would not do.

Barley is native to Asia, but fewer people in developed countries eat it. It has slowly been replaced by wheat and rye as a result of growing popularity of leavened bread. Discovery that barley is high in beta-glucan has given rise to its use in health-promoting 46 JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

food products, especially foods tailored to cardiovascular health.

However, large proportion of the world’s barley supply is used to make beer. Malted barley is used in the production of alcoholic beverages such as beer and whisky and as a flavouring agent for cereal breakfast foods and malted milk. Pearled and scotch barley is used in casseroles, soups, stews or making a Russian side dish, Kasha (made by slowly cooking pre-soaked pearl barley in milk).

Oats

The Kellogg Co. and Quaker Oats, owned by the global food and drinks company, PepsiCo are leading the way into incorporating ancient grains into yoghurt, bars, shakes and pizza crust as well.

Kellogg’s launched Special K Nourish multigrain cereals and cereal bars made with quinoa in combination with oats, barley and wheat.

They are consumed either as rolled oats or oatmeal for porridge lovers. But the cereal grain, grown in temperate regions, has found love somewhere else, that is, in baked goods, such as oatcakes, oatmeal cookies, oatbread, and in cold cereals in particular muesli and granola.

In recent years, interest in oats has increased owing to the cholesterol‐lowering properties of oat ‐glucan, said to lower the risk of coronary heart disease. They are not labelled as gluten‐free but, can be tolerated by most coeliac disease patients.

Last year, the Quaker Oats brand launched its first beverage option, Quaker Oat Beverage, a good source of calcium, vitamin D and fiber from oat bran. Finland’s largest dairy player, Valio entered the plant-based market with oat-based alternatives to milk and yogurt. The sector is a promising one for manufacturers who are watching the weight-control space. This will enable them to offer less sugar and convenient way to lose weight. The future lies in blending oat’s rich flavors and nutritional benefits.

Teff

This tiny grass seed is a staple food in Ethiopia and Eritrea. The seeds produce a harvest proportionally hundreds of times greater than wheat or other staple grains. This, combined with its ability to withstand virtually all climatic conditions, from waterlogged to water stressed areas in which to grow, has meant teff thus staved off famine many times in North-eastern Africa.

According to the Whole Grain Council, teff leads all the grains – by a wide margin – in its calcium content, with a cup of cooked teff offering 123 mg, about the same amount of calcium as in a half-cup of cooked spinach.

Teff is high in resistant starch, a type of dietary fiber that can benefit blood-sugar management, weight control, and colon health.

It’s estimated that 20-40% of the carbohydrates in teff are resistant starches. A gluten-free grain with a mild flavor, teff is a healthy and versatile ingredient for many gluten-free products. Since teff ’s bran and germ make up a large percentage of the tiny grain, and it’s too small to process, teff is always eaten in its whole form. It’s been estimated that Ethiopians get about two-thirds of their dietary protein from teff.

The flavour is mild, somewhat bland but nutty, and being so benign has very many culinary uses, ground into flour or as a whole grain. In Ethiopia its major use is in injera, a lightly fermented (sourdough) but flat bread; this is made big enough to form a thin, pancake-like platter on which food is served and it is also torn off to use as an eating aid

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COMMODITIES

IGC raises forecasts for grains production in 2018/19 WORLD - The International Grain Council (IGC) has forecasted that the production of wheat and coarse grains production in 2018/19 has been revised upwards by 10 million tonnes (MMT) with global output now placed only a fraction lower year-on-year at 2,089 MMT, while the carryover stock number has been boosted by 5 MMT to 566 MMT, a three-season low due to smaller opening inventories and slightly higher utilisation.

Wheat production is projected to rise by 2% in 2019/20, to 751 MMT owing to assumed increases in planted area and average yields. Food demand will likely continue to drive wheat consumption growth up 1% year-on-year with feeding little changed. World stocks are projected to be steady, as a small fall in the major exporters is offset by another accumulation in China.

The outlook for world soybean production in 2018/19 is cut by 4 MMT to 363 MMT, but still up by 22 MMT year-on-year and a new high. Consumption is lowered due to a likely contraction in China, while aggregate stocks are lifted to a peak of 54 MMT, an increase of 30% year-on-year. Trade in soybeans will remain steady at 152 MMT, marginally lower as China’s imports is expected to fall for a second successive season.

Global rice output is forecast at 488 MMT, a drop of 3 MMT owing to downgrades for India and Thailand, but due to a larger figure for carry-ins, supplies will be fractionally higher than before and, reflecting a reduction for uptake, stocks are lifted to 126 MMT,

a drop of 2% year-on-year. The 2019 trade projection is lowered to 47 MMT, a modest gain on anticipated African demand.

Maize production is expected to increase by 29 MMT. With smaller supply and sustained growth in consumption, global grain stocks are expected to fall by 48 MMT to 566 MMT. Trade is predicted at an all-time peak, as reduced shipments of wheat and sorghum are offset by another increase for maize.

REGULATORY

Move is a watershed moment as Nigeria has been reluctant to allow GM technology

NIGERIA – The Nigerian government has approved its first genetically modified (GM) crop, the pod borer resistant cowpea for cultivation by farmers, becoming one of the few African countries to approve of open cultivation of GM crops, in a continent that has been releuctant to adopt the technology.

The cowpea cultivar, genetically modified to resist the pest Maruca Vitrata was developed by the Institute for Agricultural Research (IAR) at the Ahmadu Bello University, Zaria. The National Biosafety Management Agency (NBMA) said it issued the approval, contained in a ‘decision document’, implying that the crop is safe and poses no harm to humans and the environment.

“IAR in partnership with the African Agricultural Technology Foundation (AATF) commenced the research to address the deadly Maruca Vitrata attacks on beans in 2009 after series of efforts to use conventional breeding methods failed to produce results. After 10 years of extensive research, government has deemed it fit to FOODBUSINESSAFRICA.COM

introduce the crop variety into the nation’s agricultural seed system having met all regulatory stipulations and scientific procedure,” said a statement issued by NBMA. The biosafety agency said that the introduction of the new GM cowpea cultivar will address the national cowpea demand deficit of about 500,000 tonnes and also improve the national productivity average of 350kg/hectare. Following the approval, the crop will be submitted to the National Variety Release Committee for consideration and registration as a commercial crop in Nigeria.

Executive Director, IAR, I.U Abubakar, explained that the development and decision to venture into genetic modification in cowpea breeding was as a result of pest infestation that has over the years made cowpea farming difficult. “Cowpea is the most important food grain legume in Nigeria. The low yield of the crop in Nigeria is due to many constraints particularly pod boring insects which cause up to 90% loss in severe infestation cases,” he said. Results from the research have shown that the GM cowpea will reduce the use of pesticides from eight to about two sprays per season and increase the yield by 20%.

With the approval, Nigeria joins Africa’s GM technology giant South Africa, which is the only country in Africa that approves GM technology in food products, despite the lack of credible scientific evidence suggesting GMOs are any more hazardous to human health or the environment than conventional or organic foods; and Africa’s vulnerability to food shortages, which are projected to increase substantially with population doubling in the region by 2050. Sudan, Burkina Faso and Egypt and South Africa have allowed the cultivation on GM cotton.

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STRATEGY

Olam unveils six-year strategy to focus on food and agro value chains, invest US$3.5 billion

SINGAPORE – The agribusiness and food processing firm Olam International has announced a new strategy that will see the company invest a further US$3.5 billion in focus segments while divesting from several others as it seeks to realign its strategic focus with rising trends in the food and agro value chain.

Olam, which is active across a broad range of sectors and industries, has said that it will now seek to focus on 12 key priority areas that build on its existing capabilities and set a strong foundation for future growth. These include edible nuts, cocoa, grains and animal feed, coffee, cotton, spices, edible oils, infrastructure and logistics, dairy, rice, packaged foods and commodity financial services.

Meanwhile, it will be divesting from some of its businesses including sugar, rubber, wood products and fertilizer, in the process releasing US$1.6 billion cash as it looks to establish a portfolio that is in line with its strategic priorities. The cash would be used for reinvestment in the prioritized selected businesses.

Olam says the new strategy ‘capitalises on key trends shaping the sector that are driven by consumers and advances in technology.

These trends include increasing demand for healthier foods, traceable and sustainable sourcing, e-commerce and the rise of “purpose” brands. This will help strengthen its already leading position in the speciality agri-products and food ingredients.

Olam, majority owned by Singapore’s Temasek said it is

focusing on high potential growth businesses mainly targeting the food processing and agricultural sector. As part of the strategic review, the company said it is planning to invest US$3.5 billion (including US$1 billion in maintenance costs) in the six-year period running from 2019-2024 in the prioritised high potential growth businesses with a goal to capture value from key emerging consumer trends.

The new strategic plan looks to drive margin improvement by enhancing cost and capital efficiency as well as generating additional revenue streams by offering differentiated products/services. “This is a pivotal moment for Olam to refocus on our strengths and capitalise on new opportunitiy executing on our refreshed strategic plan, we aim to be a global food and agri-business supporting our customers’ growing need for sustainable and transparent supply chains with a clear focus on tomorrow’s consumer preferences,” said Executive Director and Group COO, A. Shekhar.

To enhance growth in this category, the company will focus on farm-gate origination, end-to-end traceability, sustainability, digital initiatives and innovations like AtSource. Olam launched AtSource last year, a platform that provides sustainable and traceable sourcing solutions in the agricultural value chain. It was part of a strategy to enhance its ability to assess and positively influence the environmental footprint of the 4.7 million farmers in the company’s supply chain.

“Now, following a comprehensive review, our strategy is fully focused on harnessing these health and ethical sourcing trends, as well as changing consumer preferences. Crucially, our strategy will allow us to play a leading role in re-imagining global food and agri-supply chains for the better, sourcing raw materials within the earth’s capacity to regenerate and transforming those materials to deliver food, feed and fiber for a growing population,” said CoFounder and Group CEO, Sunny Verghese.

Olam has identified four enablers to execute these strategic pathways: achieving operational excellence; sustainability; digital transformation and disruption; and attracting, retaining and inspiring top talent.

RESEARCH

Ghana’s research institutes introduce improved vitamin A orange maize GHANA – The Council for Scientific and

Industrial Research (CSIR) in partnership with the Crops Research Institute (CRI) has introduced new improved vitamin A orange maize varieties.

The research bodies say that the new varieties Honampa, Ahoedzin, Ahoefe and Dzifoo come as a gesture to enable the farmers shift from the cultivation of white maize to the newly introduced orange and yellow maize to help increase yield for higher income.

CSIR and CRI have also unveiled Abotem, a yellow maize developed with support from Harvest Plus Project based

in International Institute for Tropical Agriculture (Nigeria), International Maize and Wheat Improvement Center, Mexico.

Dr Manfred Ewool, a maize breeder at the Crops Research Institute, said samples of the new varieties were given to the Department of Agriculture. The department is expected to set up demonstration fields to help educate the farmers in the country on the newly introduced seeds.

He revealed that sensory evaluation was organized as part of the programme with the farmers in food preparations. This was aimed at determining the acceptability of the new orange maize for food whereby the

48 JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

sample population expressed satisfaction with the emerging interest.

Dr Ewool said the orange maize matures early and also contains vitamin A which is very essential for the eyes, skin and even unborn babies. He said when used as poultry feed, the eggs laid looked a bit more yellowish and are healthier than those fed with the white maize hence the need for farmers to adopt these newly improved seeds. He appealed to the government to include the orange maize varieties in the School Feeding Programme due to improved nutritional benefits of the new varieties.

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ANIMAL NUTRITION

American Soybean Association, KSU partner to launch aquafeed program in Cambodia

CAMBODIA – The American Soybean

Association’s World Initiative for Soy in Human Health (WISHH) in partnership with Kansas State University (KSU) have launched an aquafeed program in a bid to increase productivity in aquaculture farms in Cambodia.

The Commercialization of Aquaculture for Sustainable Trade (CAST) program is a

five-year project with mandate to connect the private sector and universities in Cambodia with US soybean growers, businesses and academic and non-governmental agencies.

The project, funded by the United States Department of Agriculture (USDA)for US$17.1 million, will provide training to increase productivity in aquaculture farms in six provinces of Cambodia.

“Aquaculture is one of Cambodia’s most important sectors, with production growing by 17% in 2017 alone, to reach over 200,000 tonnes,” said Michael E. Newbill, charge d’affaires at the US Embassy in Cambodia.

Further, CAST will reduce pressure on wild capture , which currently accounts for 76% of total fishery production, he added.

WISHH says the program will accelerate production of high demand fish species for the Cambodian market and develop a lasting aquaculture industry.

The partners will work to enhance increase in the quality and access to resources and markets, as well as promoting policies that will better support aquaculture farmers and their needs.

The project will benefit from partnerships with the US Soybean Export Council, KSU, Auburn University, World Vision, and local universities in Cambodia.

It will also include private sector mills and hatcheries and the Cambodian ministry of agriculture in collaboration with WISHH to implement the program.

REGULATORY

Zimbabwe’s grain millers association seek to set product prices ZIMBABWE – The Grain Millers Association of Zimbabwe

(GMAZ) has applied to the Competition and Tariff Commission (CTC) seeking to be allowed to set the prices products under their purview rather than have it done by a government-appointed body.

According to NewsDay, GMAZ seeks the responsibility to set product prices, saying that the pricing situation does protect consumers from unscrupulous market forces. “The impact of the pricing of our products to the national inflation basket computation is significant, as they are necessities that every citizen has an inalienable constitutional right to their access and consumption.

The absence of a collective price review (mechanisms) will result in unrestrained price hikes, creation of serious and severe inflationary pressures, food insecurity and subsequently, social unrest,” said GMAZ in the application.

GMAZ is a lobby group representing interests of major industrial players across the entire grain sector including of flour producers. “The government makes subsidy interventions to stabilise the prices of maize meal and flour (by extension bread).

In order to ensure that these subsidies benefit end consumers. It is imperative that the manufacturers collectively review their cost drivers and align their margins so that the final retail prices are not subjected to the vices of profiteering, especially in times of scarcity,” the association stated. The association has also established a finance and costing technical committee to oversee the pricing of members’ products.

In the recent past, Zimbabwe grain industry has been grappling with challenges especially due to forex shortages which has translated into insufficiency of grains to satisfy the demand. This has had an adverse effect on the prices of grains and grain products especially wheat products which has pushed the retail prices of bread to a high of US$2.50.

In September last year, several milling companies in Zimbabwe were compelled to suspend operations for several weeks after the government delayed in releasing forex for wheat held up in Mozambique. Millers are also facing problems in addressing the rising demand attributed to changing dietary requirements.

INVESTMENTS

Grain processing company Viresol opens US$117m wheat starch plant in Hungary HUNGARY – Hungarian grain processing

company Viresol has opened a new wheat starch processing plant worth US$117.66 million in Visonta, in northeast Hungary.

World Grain report reveals that the plant will process 250,000 tonnes of Hungarian wheat, which equates to about 10% of all Hungarian wheat intended for export.

Viresol, which was given the mandate to

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operate the grain facility, received a 6.2 billion-forint (US$22 million) government grant for the project. Viresol which processes and produces wheat-based starch, alcohol, and feed, will be able to produce large quantities of wheat starch at the facility that don’t contain gluten.

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TRENDS

World feed production increases by 3% as Africa continues to shine - Alltech survey

USA – Global feed production has grown

by 3% to 1.103 billion metric tons in the year 2018, with Africa reporting the fastest growth of 5% and Europe performing well, according to the 2019 Alltech Global Feed Survey.

The survey, carried out on 144 countries and nearly 30,000 feed mills, indicated that the feed industry has grown 14.6% over the past five years at an annual rate of 2.76%.

Demand for protein, coupled with rising global population has seen the sector thrive led by countries like China, USA, Brazil, Russia, India, Mexico, Spain and Turkey.

These top producing countries accounted for 55% of the world’s feed, attributed to the fact that they are home to 59% of world’s feed mills.

The boost in the feed business was enabled by expanded agricultural activities and predominant growth in the poultry (layer, broiler) and dairy feed sectors.

Africa continued its stellar performance, with a 5% increase in feed production.

According to the survey, no country within the region saw a decline in overall feed

production. Most of the major animal production species, such as those found in ruminant and poultry, did exceedingly well and, therefore, brought about high overall growth for the region. Morocco, in particular, stands out as a country that is demonstrating growth across nearly every species, after the addition of two feed mills and the expansion of another existing one.

South Africa continues to lead animal feed production in Africa, reporting 11.14 MMT, followed by Egypt with 7.36, Nigeria with 5.66, Morocco with 4.3 and Algeria, 4.24. Kenya produced 930,000 tonnes, Zambia and Tanzania 290,000 tonnes and Sudan 640,000.

Poultry industry was buoyant in Europe, Poland and Uzbekistan, each growing by around 200,000 metric tons. Colombia, Peru, Brazil, Mexico, U.S.A, Canada, South Korea, India, Indonesia, all recorded a significant increase in production while Africa saw a small decrease in layer production due to declines in both Egypt and Seychelles.

Globally, broiler production increased by approximately 3% in 2018, recording growth in all regions including Africa which grew by 9% as a result of population growth, rising middle-class and interest in protein. Dairy feed production grew by 4%, with growing regard in North America, Europe and Africa, primarily due to a significant increase in both Morocco and Nigeria. The largest increase was in Turkey with 10%, while Ireland, Russia and the U.K. also contributed to the region’s growth.

Global beef feed production was led by

North America estimated to have increased 3% in 2018, Europe came in the second place, followed by Latin America and Asia Pacific region (China and Australia were major contributors).

In North America, feed prices are the lowest globally across all species, and with the availability of land, water and other resources, the region is expected to remain a primary contributor to feed production.

In the African region, most of the major animal production species in ruminant and poultry contributed to the overall growth.

According to the survey, aquaculture feeds showed growth of 4% over last year, attributed to strong increases in the AsiaPacific and European regions. China, the region’s leader, also saw an increase of 1% over last year. Even as aquaculture remained relatively strong, Asia-Pacific, which is also the primary producing region for pig feed saw a decline with decreases in Mongolia, Vietnam, China, New Zealand and Japan.

Latin America saw the greatest growth in pig feed at 5%, with the largest growth seen in Mexico and Argentina.

Pet food production is gaining attention in the industry but the sector has been lagging in Latin America and African regions. Europe, which has been the top-producer in the sector, has declined, producing 8.6 million metric tons in 2018, behind North America (8.8 million metric tons). Africa saw a small decrease in production, but the actual tonnage is quite small compared to many of the other regions.

INVESTMENTS

South Africa’s Chicken Bird Holdings to invest US$150m in Zimbabwe ZIMBABWE – Chicken Bird Holdings

(CBH), a South African poultry and feed company has committed to invest US$150 million in Zimbabwe’s poultry and agricultural sector.

Chicken Birds’s Chief Executive Officer, Mr Marthinus, noted that the company will invest in chicken production and abattoirs as well as maize and soya bean production. “CBH wishes to invest US$150 million in Zimbabwe. This spend will be in agriculture, in the poultry sector. Over a four-year period, we will build a 50,000 broilers per week abattoir, a 500,000 dayold chicks per week hatchery, 30 breeding

houses plus 80 broiler houses (of which 48 houses will be contracted out to farmers in the district) and two feed mills. The growing of maize and soya beans will also form part of the contract grower scheme,” the company explained in a statement.

The company added that the investment is aimed at ensuring Zimbabwe becomes self-sufficient in the poultry sector and will also help to create about 1500 employment opportunities in the country. CBH is a leading feed and poultry company in South Africa, running its operation under the brands Supreme Chicken and its animal feed under the name of Nutri Feeds. The

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company sells its value added products to quick service restaurant chains like KFC, Hungry Lion and Captain Dorego.

CBH has secured a US$25 million credit from International Finance Corporation (IFC) to finance its African expansion plans, increase production and set up new operations. It acquired Opti Agro from NWK’s poultry and animal feed businesses at an estimated transaction worth US$21.05 million in September 2018. It has expanded its poultry and feed manufacturing businesses to other countries in Africa including Nigeria, Swaziland, Mozambique, Botswana and Zambia.

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SUSTAINABILITY

ADM, Ingredion, Cargill, Tate & Lyle join Plant Based Products Council to promote bio-plastics USA – Agribusiness giants ADM, Cargill, Tate & Lyle and Ingredion have formed the Plant Based Products Council (PBPC), with an aim of enhancing the use of plant-based materials in the production, processing and packaging of food.

Apart from promoting the adoption and use of products derived from renewable biomass, the council has a responsibility to advocate for private sector programs and government policies that favour use of renewable materials.

These include policies to reduce carbon emissions, improve water quality and soil health, and curtail solid waste destined for landfills.

According to a poll conducted by the

council, there is an increasing need for bioplastics, with 64% of millennials willing to use plastic alternatives, while 60% were surprised by the lack of alternative options to plastic. 48% of millennials said they feel most guilty about their own plastic use, which compared to other resources such as paper (33%), water (31%) or how much they drive (31%).

“Businesses and consumers alike recognize the need to solve the problem of plastic pollution that harms our environment,” said John Bode, president and chief executive officer of the Washington, D.C., U.S.-based Corn Refiners Association. “The PBPC will seek plant-based solutions, bringing together

government, non-profit and corporate entities to address environmental challenges while driving economic opportunity.”

PBPC has also launched a database featuring more than 480 plant-based and bio-based products already on the market.

SUSTAINABILITY

Cargill invests in blockchain to support food and agriculture supply chain

USA – The global agribusiness giant, Cargill has said that it is

investing its own digital engineering technology to accelerate development of blockchain that will address global challenges in food and agricultural supply chains.

The company is adopting the Hyperledger Grid, a project for building supply chain solutions seeking to address the factors

standing in the way of achieving a sustainable agricultural system.

The Grid provides an ecosystem of reusable, open-source digital tools that developers can work with to build products, prototypes and applications that address supply-chain use cases, including traceability, food safety, trade settlement and more. It builds upon Hyperledger Sawtooth, a project originally contributed to The Linux Foundation by Intel and maintained by Cargill, Bitwise IO, Intel and others.

“Hyperledger Grid is another way to help make food and agricultural supply chains more inclusive – creating new markets for farmers and developing economies,” said Keith Narr, vice president, Cargill Digital Labs. “With our wide set of food and agricultural supply chain data, Cargill is leading the industry to work together and improve traceability, trade, food safety, nutrition, farmer livelihoods and more.”

M&A

Nutreco’s Skretting join forces with West Coast Group to boost aquaculture in India INDIA – Nutreco’s aquaculture division, Skretting, has joined forces with India’s leading fresh seafood manufacturer, West Coast Group to boost the country’s aquaculture sector.

The joint efforts will work to enhance availability of sustainable shrimp and fish feeds in the market while providing health and nutrition expertise through value addition. It aims to boost India’s aquaculture industry that is significantly growing as a result of increasing demand for responsibly-produced shrimp and fish.

Skretting, which is the world’s largest producer of feeds for farmed fish plans FOODBUSINESSAFRICA.COM

to develop aquaculture operations by establishing local partnerships while supporting local producers.

“India’s shrimp production has grown so rapidly over such a short period of time that some producers have been setting up their own feed plants. This was not a direction that West Coast wanted to take; it felt that the competency and technological know-how required to expand production properly required a feed partner with a proven track record,” said Puneet Pokhriyal, General Manager, Skretting India.

The development follows the joint venture partnership established between

Skretting and West Coast Group in June 2018 to help the country maintain its aquaculture production growth rates in a sustainable manner. The deal plans to build a feed production facility in west India to supply to aquaculture farms in the region, with operations at the plant planned to start in the first quarter of 2020.

Located in Surat, Gujarat State will supply products and support to aquaculture farms along the west coast, with initial production capacity of 50,000 tonnes (35,000 tonnes of shrimp diets and 15,000 tonnes of fish feeds), with longer-term production of 120,000 tonnes per annum.

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NEWS | MILLING & BAKING PEOPLE

Sleight to retire as U.S. Grains Council President and CEO

USA - Tom Sleight, the President and

CEO of the U.S. Grains Council (USGC) since 2012, will retire later in the year following the appointment of his successor, the Council's Board of Directors has announced “The Board of Directors of the Council has been preparing for this transition for some time, and we have a strong global team in place that Tom has consciously built to be able to take on the challenges of a dynamic market development portfolio,” said Jim Stitzlein, chairman of the Council’s Board of Directors.

Sleight, who has been the head of the Council since 2012, says that he has accomplished what he intended that he is confident the organization is headed in the right direction and poised for continued growth as a relevant, innovative and impactful organization.

Sleight has worked at the Council a total of 25 years, beginning in 1983. He began in program implementation, then went on to serve overseas in Eastern Europe and the Soviet Union, then returned to Washington.

He also served in the U.S. administrative side of the Council’s operations, directing its membership, communications and administrative programs. He left the Council in 1999 to lead the Virginia Department of Agriculture and Consumer Services’ marketing division and later the New York Farm Viability Institute. He returned to the Council as vice president in 2010 before being selected as president and CEO in 2012.

PARTNERSHIPS

Kazakhstan, Iran and Russia sign wheat trade cooperation agreement RUSSIA – Ministry representatives from

Kazakhstan, Iran and Russia have signed a Memorandum of Understanding on wheat trade, a step towards boosting trade cooperation between the countries.

An AzerNews report stated that the memorandum was an integral part of the free trade zone agreement signed last year between the Eurasian Economic Union (EEU) member states and Iran. The EEU includes Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan.

The memorandum was signed by Deputy Agriculture Minister of Kazakhstan Gulmira Isayeva, Deputy Agriculture Minister of Iran Ali Akbar Mehrfard and Deputy Agriculture Minister of Russia Sergey Levin. According to Iranian representative Ali Akbar Mehrfard, the development does not only build relations between the nations, but also lead to a more dynamic growth of trade between the states which will continue to strengthen logistics and industrial cooperation.

“The memorandum includes three very important aspects. Iran’s flour mills have great potential, and the regional market is about seven million tonnes. According to the memorandum, Russia and Kazakhstan

can use Iran’s logistical capabilities and in transit to deliver their wheat to third countries. The second is the joint development of wheat SWAP contracts with Russia and Kazakhstan. The third is related to the conditions of temporary importation,” said Ali Akbar.

As a result of the agreement, Russia is expected to start shipment of wheat to Iran within the framework of mutually beneficial contracts concluded. Iran will promote freedom of transit through its territory, and also support the import of wheat in the framework of SWAP contracts, including on exemptions from bans and other restrictions on Kazakhstani and Russian wheat. The memorandum also provides for exemption from any customs duties or other equivalent fees, in respect of wheat imported from Kazakhstan and Russia for the transit purpose or temporary import.

Based on the report, Iran has achieved self-sufficiency in the production of wheat but will act as a bridge for exporting wheat produced by Russia and Kazakhstan to other countries. It noted that Iran produces 12 million tons of wheat, which meets the country’s domestic need.

SUSTAINABILITY

COFCO International joins sustainability development group to protect Brazilian farm land SWITZERLAND – COFCO International,

the overseas trading subsidiary of COFCO Corp has joined the World Business Council for Sustainable Development (WBCSD) to accelerate sustainable development across its businesses.

By joining the akkiance, COFCO targets to tackle sustainability in soy production and land use challenges in Brazil. It joins WBCSD as a member of the WBCSD’s soft commodities forum, alongside commodity giants ADM, Bunge, Cargill, Louis Dreyfus Company and Glencore Agriculture.

“As a fast-growing global agri-business, we are committed to playing an integral part in the world’s food system over the long term, building on our core values of partnership and sustainability,” said Johnny Chi, chairman of COFCO International.

52 JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

“WBCSD offers a platform for further collaboration with stakeholders across various industries with the common goal of feeding a growing global population sustainably.”

The move contributes greatly to COFCO’s ambitious targets of ‘meeting tomorrow’s demand’ by making agricultural products available through a sustainable value chain. The objectives include reducing the environmental impact of its activities around the world, minimizing the social and environmental risks along the supply chain, upholding standards, taking care of people and building strong communities.

Other members of the alliance include Bayer, DuPont, Evonik, Kellogg, Mondi, Nestle, Olam, PepsiCo, and Rabobank among many others.

FOODBUSINESSAFRICA.COM

The Food, Beverage & Milling Industry in Tanzania Tanzania offers unique opportunities for the growth of the food, beverage and milling industry in East Africa. Abundant land, fertile soils and good rainfall has made Tanzania an agriculture powerhouse. Food Business Africa reviews the trends in the manufacturing sectors in the country.

W

ith abundant arable land, water resources and fertile soils, most of which are virgin, Tanzania has a huge advantage in the agriculture sphere. It is an agriculture powerhouse in East Africa, not only meeting its local requirements but also contributing to food security in the region. Tanzania offers huge opportunities for regional and international investors to the agriculture, agro-processing, manufacturing, retail and hospitality industry.

The food manufacturing/processing industry in Tanzania constitutes 24% of the entire manufacturing sector. The main sectors are beverage and dairy products, canning and preserving of fruits and vegetables, canning fish and similar foods, manufacture of vegetable oils, grains milling and baking, sugar and confectionery as well as animal feeds. The beverages include the distilling and blending of spirits; manufacture of wines, cider and beer; production of soft drinks and bottled waters.

The history of the food industry in Tanzania stems from enterprises that were owned by the Government, but which were privatised from the late 1980s into the early 2000s, with private investors moving in to streamline operations of mills, breweries, bakeries and other food companies. Privatisation not only improved the efficiency of these companies, but also led to significant new investments in the industry by the private sector, changing the face of the food manufacturing sector significantly. As a result of the privatization, two giants emerged: the Bakhresa Group and Mohamed Enterprises Group, which are the country’s largest and most diversified food industry operators, covering the milling, beverages, bakery and other sectors of the industry.

As a result of the privatisation and opening up of the sector to other players, local, regional and multinational companies have FOODBUSINESSAFRICA.COM

increased their presence in Tanzania, including the beverage giants like Coca-Cola, PepsiCo and AB-InBev, where each of these companies operates 4 plants around the vast country. Diageo, the producers of Guinness and Serengeti beers, also has 3 plants in Tanzania. The pace of direct local and foreign investments have risen significantly over the last 15 years, while small and medium players continue to pop up, with some of them growing into significant players, for example in the dairy sector, local players Tanga Fresh, Asas Dairies and Milkcom have defined the pace of the dairy industry in a country where milk processing has taken a bit longer to come of age.

Projections show that the levels of investments will grow strongly in the next 5-10 years, driven by rising incomes and urbanisation and changing consumer habits towards conveniently packaged and processed food products. More local, regional and international players, private equity funds and other players are also expected to enter the country.

Most of the consumer-oriented food processing industries use local ingredients but because of the wanting agricultural and industrial development in the country some rely on imported food ingredients and supplements such as soy, rice, wheat and industrial processed products. The food processing sector is characterized by micro and small-scale processors, with a number of medium and large size processors, most of which are in Dar es Salaam, Tanga, Kilimanjaro and Arusha.

Overall, for food manufacturers and suppliers to the food, beverage and milling industry in Tanzania, this is the right time to strategically position themselves in the food industry that is on the upswing and equally in need of a number of solutions to reorganize JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA 53

the agro-processing industry in the country from its fragmented nature and lead it to its rightful positioning if to go by the potential there in.

Dairy Products

The dairy industry in Tanzania has the most potential in Africa with the ability to improve food security, nutrition and incomes of farming communities in the country. The sector contributes 30% of the livestock sector GDP, showing its impact on the economy of the country if its full potential can be harnessed. Despite the huge potential and rising demand for milk products, the country remains a net importer of milk and milk products including milk powder, long life milk, cheese and butter, among other products.

The country produces about 2.4 billion litres of milk a year, with a targeted production of 4 billion litres per annum, with the Government planning to improve milk consumption per capita from the current 47 litres to 70 litres in a few years, driven by increased local production. The cost of imported dairy products amounted to US$7.7 million in 2009, with most imports mainly originating from Kenya, South Africa and the Netherlands.

Key factors to the future growth of the Tanzania dairy sector are an increase in the number of improved dairy cattle, increasing consumption of milk products and changing consumer trends towards convenience and health awareness. On the flipside low production and high animal mortality rate are the biggest factors which may curtail progress in the sector.

The Tanzania Dairy Processors Association said in a brief in 2011 that there was a narrow product range in the country which was concentrated on liquid

and fermented milk, while demand for processed milk products, particularly in urban areas, was far from being satisfied, with imports of about 15-20 million litres of Liquid Milk Equivalents (LME) per annum, valued at US$5 million and increasing at a rate of 9% annually. This situation still holds, although significant progress has been made, with the number of dairy processors rising again after a deep decline in the 1990s to the 2000s.

Significant investments have been made in the dairy sector in the last few years, with the Bakhresa Group entering the sector with a UHT milk plant in Zanzibar and Milkcom dairy constructing a new plant near Dar es Salaam recently, capable of producing UHT and fermented products.

Tanga Fresh, the country’s largest dairy continues to grow, with a focus on UHT milk. It is expected that more dairy plants will be set up in Tanzania in the next 5-10 years to fill the rising gap between demand and locally produced products.

The dairy industry in Tanzania needs milk storage, cooling and processing solutions; affordable packaging equipment and materials; laboratory and food safety technologies; formulations technology that can deliver safe, nutritious and affordable products and technologies that can improve efficiency and reduce waste.

Oilseeds, Nuts & Spices

Tanzania is a significant player in the oilseeds, nuts and spices market in the world.

In Africa, it ranks third behind Nigeria and Ivory Coast and eighth globally. The major sources of edible oil in Tanzania include sunflower, palm, groundnuts, sesame, soya beans and cotton, which are produced in almost all the regions in the vast country.

With current consumption of 500,000

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tonnes per annum, compared to local supply of only 180,000 tonnes, the country offers strong incentives to investors in the oilseeds sector, considering that it is also one of Africa’s largest growers of oilseeds. In a notice recently, the Tanzania Investment Centre (TIC), a government agency that promotes local investments, called for investors to explore the opportunities to venturing into edible oil processing industries in order to help Tanzania bridge the supply deficit gap of 320,000 tones and slash the import bill, which currently stands at US$294 million. TIC forecasts that the demand for edible oil is set to increase to 700,000 tonnes by 2030.

The country has seen a significant increase in cashew nut production over the last few years, with production doubling to over 300,000 tonnes in just two years, catapulting the country to among the top ten producers of the nut in the world. Used in various snacks, cashew nuts consumption is rising in the world as consumers seek healthier snack options. Tanzania’s increase in production has attracted the attention of the government, which is seeking for investors to add value of the oilseed in the country instead of exporting raw nuts. The country has 14 million hectares of land dedicated to cashew plantation, mainly in Mtwara, Lindi, Ruvuma, and Tanga regions. Less than 10% of the raw cashew produced in the region is processed locally.

In the spicy business, the country is the leading producer of cloves and other spices used in culinary dishes. Zanzibar is still the old famous Spice Islands, and leaders have vowed to maintain the name by encouraging farmers to increase production, improve quality and double exports. Between 1995 and 1999, Tanzania ranked third by exporting 5% of Least Developed Countries total spice exports.

The country is a top ten world producer of peanuts, with production rising dramatically from about 350,000 tonnes in 2009 to 1.8 million tonnes in 2015 accounting about 1.7% of the world production. In 2013, Tanzania ranked 9th in peanut production globally. However, the yields, dogged by drought, disease and lack of improved varieties, are still low, ranking 69th globally at slightly above 1 ton per hectare. Despite the country being also a top ten exporter of the nut in the world, it receives the lowest price of the top 20 exporters due to stringent aflatoxin standards set by importing countries. Farmers do not have incentives, nor do they have the FOODBUSINESSAFRICA.COM

ability to grow aflatoxin free groundnuts.

The peanut industry has inadequate value addition and agro-processing activities.

Tanzania is a significant player in sunflower production, producing 350,000 tonnes per year according to UNIDO, translating to about 90,000 tonnes per year.

Several players including Mount Meru, East Coast Fats and Oils, Bidco Africa and Murza Wilmar play significant roles in the oilseeds processing and refining industry in Tanzania. Local cottage refiners are also available, mainly in the refining of sunflower. Cashew nuts and spices are mostly exported into the Asian market. It is expected that with the Government’s move to localise value addition, there will be a significant investment in the processing of oilseeds and spices in the country in the next 5-10 years.

Milling, Baking & Animal Feed

Tanzania is the grains powerhouse in East Africa. It is the largest producer of maize in East Africa, producing 5.4 million tonnes in 2018, though this is a dip from a high of 6.7 million tonnes in the 2014 season.

Consumption in 2018 was forecasted at 5.3 million by USDA. Maize, which is a staple across several countries in the region, is traded across national boundaries, with Tanzania a source of maize into Kenya, plus other grains, including sorghum and millets with a production of 800,000 tonnes and 350,000 tonnes respectively in 2018. Other countries receiving Tanzania’s grains include Zambia, Malawi, Rwanda, Burundi and the Democratic Republic of Congo (DRC).

Despite huge potential for exports, Tanzania’s grains export trade is largely opportunistic, often illegal, and depends on many internal and external factors, says

FOODBUSINESSAFRICA.COM

USDA. Periodic export bans discourage traders from seeking large export contracts.

The country is not a significant wheat producer, producing about 100,000 tonnes per year, but has some of the largest wheat milling plants in the region, with Bakhresa Group starting off in the country, but has grown substantially into the greater eastern and southern Africa. Other significant milling players in wheat milling include METL, Coast Millers and the Azania Group. With constrained local production, the country relies on Russia, Australia, Canada, Germany, and Brazil to meet 90% of its wheat requirements, with wheat import bill estimated at US$225 million per year.

According to USDA, growth of major cities like Dar es Salaam, Mwanza and Arusha is expected to increase demand for wheat products from the current about 1 million tonnes. The main growth categories for the wheat industries are pasta, biscuits, and breakfast cereals. A shift towards consumption of wheat from traditional staples such as coarse cereals and tubers has been observed in rural and peri-urban areas of the country, notes the USDA. The maize milling and bakery sectors, driven by a rising demand for conveniently packaged maize meal and baked goods, continues to thrive on the back of rising urbanisation, incomes and a more sophisticated consumer.

Rice production in Tanzania has risen steadily, hitting 2 million tonnes in 2018 but the country is way off from meeting local demand that was 2.8 million tonnes, with the bulk of imports from Pakistan and other Asian countries. The country is a significant exporter into Eastern and Central African countries of paddy, while local packaging and processing has also seen a number of investors set up plants

in the southern corridor and other areas.

Cassava, sorghum and other cereals are also important contributors to Tanzania’s food basket. A recent investment has been made in a cassava starch processing plant in Mtwara.

The animal feed industry has picked up significantly as the demand for quality and cost-effective feed rises due to investments in the livestock industry, largely driven by the poultry sector. According to the Tanzania Animal Feed Association, more than 40 animal feed factories exist in the country to meet this demand, with total production hitting 290,000 tonnes according to Alltech.

It is projected that there will be significant new investments in maize, rice, pulses, wheat, barley and animal feeds processing in Tanzania in the next 5-10 years to meet demand, and to utilise increasing local production of grains.

IN NUMBERS

25M NUMBER OF CATTLE IN TANZANIA, THIRD LARGEST IN AFRICA Meat, Poultry & Fish

Tanzania has the third largest livestock numbers in Africa, with a reported 25 million cattle, 16.7 million goats, 8 million sheep, 2.4 million pigs, and 36 million chickens, according to the Ministry of Livestock & Fisheries Development.

Vast and sparsely populated land, abundant water resources, a long coast line and large lakes and a thriving grain sector provide a huge incentive for the growth of the meat, poultry and fish industry in Tanzania. The livestock population in the country both from traditional and commercial production is increasing as some farmers adopt improved production systems such as feedlot ting and commercial producers respond to demand for quality meat niche and export markets.

The red meat value chain is considered to produce various products that need to be recovered and processed into valuable products in order to generate higher value, better prices for producers and reduce environmental pollution. The potential

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IN NUMBERS

137M PROJECTED POPULATION OF TANZANIA BY 2050 which the livestock rearing, and meat production sector offers have only been utilized marginally. The government has placed priority in developing value addition in this sector. For example, according to the TIC in 2018, investors were being sought to set up meat processing plants in Dodoma, Iringa and the Coast region in a joint venture with the government worth a total of US$76.6 million, with the projects constituting feedlots and back grounding ranches, slaughter houses and packaging and distribution facilities.

The country has seen the establishment of ranches and increase in poultry and aquaculture farms to meet the rising demand for meat products in the country and region. For example, in the recent past, Silverlands Tanzania, owned by a private equity fund, opened a day-old chick and one of the largest feed mills plant in East Africa, angling for the Tanzanian and regional market.

It is expected that the meat and poultry husbandry and processing industry in Tanzania will receive significant investments in the next 5-10 years to meet rising local demand and that the country will become a significant player in the exports market as the sector gets streamlined once investments stream in.Tanzania’s poultry industry is set to benefit from a four-year US$21.4m grant, aimed at enhancing the country’s poultry production. The grant is provided by the Bill & Melinda Gates Foundation to the World Poultry Foundation (WPF), which will disburse the funds to Tanzania and Nigeria to improve their poultry industries.

Alcoholic & Soft Beverages

Tanzania has one of the most vibrant alcoholic and non-alcoholic beverage industries in East Africa. A competitive environment due the presence of worldleading multi-nationals and local entrepreneurs make Tanzania’s beverages

space one of the most exciting in the region.

In the alcoholic beverages space, ABInBev (formerly SABMiller)-owned Tanzania Breweries Ltd holds sway at it competes aggressively with Diageo-owned Serengeti Breweries Ltd, the makers of Guinness and Serengeti brands in the country. TBL operates 4 breweries and a distillery in the country, while Serengeti Breweries Ltd has three plants in the country.

In the soft drinks space, Coca-Cola operates four bottling plants in the country, while PepsiCo has a similar number of plants operated by SBC. Local players are not left behind in the quest to quench the thirst of the 55 million Tanzanians who yearn for either water, juice, drinks, soda or even beer across the country. The Bakhresa Group, METL Group and new entrants including the Jambo Group are significant players in the soft beverages space, with significant market share. Packaged water is also widely produced in the country.

Significant increase in investments is expected in within the next 5-10 years into Tanzania’s beverage industry, in tune with growth of the economy, urbanisation and incomes.

Horticulture

The potential contribution of the horticulture industry in Tanzania, with a focus on the fruits and vegetables segment, often goes unnoticed. The country is a significant producer of tomatoes, onions, potatoes, avocadoes, mangoes, and oranges, supplying the regional markets in East Africa, plus increasing quantities for export markets. It produced more than 6 million metric tonnes of horticultural produce in 2015, but with huge potential, especially as several players have entered the sector in recent times including, for example, Africado, which has invested in the avocado value chain, becoming the largest fruit exporter in the country.

Significant investment in the horticulture value chain has occurred in the northern and southern highlands of the country, with potential in the coastal lowlands still largely unexploited. It is expected that the value of investments in the horticulture industry - from farming, packaging and processing - will rise significantly in Tanzania within the next 5 years as the value chain challenges get sorted by the Government and the private sector takes its rightful place.

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Sugar & Confectionery

In Tanzania, the sugar industry is the largest agro-processing industry. This industry started early in 1924 when Tanganyika Planting Company Limited in Moshi started. This was followed by two other sugar companies situated in Kilombero and Mtibwa in 1961 and 1962 respectively. The industry had grown to five sugar producers, but the country now has four millers in Kilombero Sugar Company Ltd, Tanganyika Planting Company Ltd (TPC), Mtibwa Sugar Estates Ltd and Kagera Sugar Ltd. Based on existing data, sugar production in the country has increased from the initial 2,000 to more than 300,000 metric tonnes per year with the country importing the deficit of about 100,000 tonnes. The Government has called out for investors to meet the deficit through new investments in sugar plantations and new plants across the country. For example, according to the TIC, the government is seeking joint ventures for the Ruipa Sugar project in Kilombero District to grow sugarcane on 13,950 hectares of land with potential of producing 100,000 tonnes, expandable to 200,000 tons per annum, potentially bridging the gap the country currently imports.

According to the Sugar Board of Tanzania (SBT) several small-scale to large scale sugar projects are in the pipeline, past feasibility studies and into advanced stages of procurement, installation and commissioning. These projects are spearheaded by Mkulazi Holding Ltd (Mkulazi & Morogoro), Purandare Industries(T) Ltd (Dodoma), Suba Agro Co. Ltd (Manyara), Bagamoyo Sugar Ltd (Bagamoyo) and Nile Agro Industries Ltd (Tarime). These new developments are expected to yield over 200,000 tonnes per annum when operational. Other potential sites for large scale sugar plants are Kisaki & Mvuha (Morogoro), Rufiji Basin, Kibondo (Malagarasi Basin) and Songwe Basin.

The confectionery sector is increasing in importance in the country, as population rises, and young people take to consuming more sugary snacks. It is expected that in the next 5-10 years, significant investments will come through in sugar cane farming and processing while the confectionery industry will increase significantly due to a rising, young population and higher incomes.

Dar es Salaam’s unending trade tiff FOODBUSINESSAFRICA.COM

with Nairobi, that escalated when Tanzania slapped a 25% duty on Kenya-made sugar confectionery in early 2018, claiming use of zero-rated industrial sugar which tilted competition in favor of Nairobi factories has ostensibly opened an estimated over TSH 3 billion market to be grabbed by local players.

Coffee & Tea

Tanzania is an important producer of coffee and tea, mainly in the southern and northern highlands. Coffee production in Tanzania is a significant aspect of its economy, as it is Tanzania's largest export crop. Tanzanian coffee production averages between 70-80,000 metric tonnes annually, of which approximately 70% is Arabica and 30% is Robusta. It is the fourth largest coffee producer and exporter in the continent after Ethiopia, Uganda and Ivory Coast and ranks 17th globally. In 2018, Tanzania produced 69,000 metric tonnes of green coffee, exporting 61,800 metric tonnes (90%); only 3,000 (4%) metric tonnes was consumed domestically.

Tea is a high impact sector in Tanzania.

It is the fourth largest export crop and more than 30,000 smallholder farmers collectively produce a third of the country’s output. It is harvested all year round and provides a regular, dependable source of income, lowering farmers’ vulnerability to extreme weather shocks, notes Gatsby.

Tanzania is one of the most important tea-producing countries in Africa, and also borders Kenya and Malawi, two other major African tea-growing countries. In 2008, Tanzania was the world's 14th largest tea producer, producing about 0.73% of global production, and placing it 4th among African countries behind Kenya, Uganda and Malawi with about 29,000 tonnes according to 2010 projections. Most of Tanzania's tea is exported in bulk and sold for a low price. Some of the major tea companies in Tanzania include Chai Bora, Rift Valley, Tanzania Tea Blenders and Although the bulk of the crops are destined for the export markets, the demand for coffee and tea continues to thrive in the country, which has seen the setting up of local tea and coffee processing plants. It is expected that the coffee and tea industry in Tanzania will receive significant investments in the production, processing and retailing value chains, as local consumption increases substantially

FOODBUSINESSAFRICA.COM

TANZANIA PROFILE Capital city: Dodoma. The government is in the process of shifting the administrative capital from the commercial capital Dar es Salaam to Dodoma, in the centre of the country.

Area: Total: 947,300 sq km (includes the islands of Mafia, Pemba, and Zanzibar); Land 885,800 sq km; Water: 61,500 sq km Neighbouring countries: Burundi, Democratic Republic of the Congo, Kenya, Malawi, Mozambique, Rwanda, Uganda, Zambia Land use: Agricultural land: 43.7% (2011 est.); Arable land: 14.3% (2011 est.); Permanent crops: 2.3% (2011 est.); Permanent pasture: 27.1% (2011 est.); Forest: 37.3% (2011 est.); Other: 19% (2011 est.)

Population: 55.5 million ( July 2018 est.); Median age 17.9 years; population growth rate 2.74%.

Projected population: 137 million in 2050.

Demographic profile: Tanzania has the largest population in East Africa and the lowest population density; almost a third of the population is urban. Tanzania’s youthful population – about two-thirds of the population is under 25 – is growing rapidly because of the high total fertility rate of 4.8 children per woman.

Age structure: 0-14 years: 43.4%; 15-24 years: 20.03%; 25-54 years: 30.02%; 55-64 years: 3.51%; 65 years and over: 3.04% (2018 est.)

Population distribution: The largest and most populous East African country; population distribution is extremely uneven, but greater population clusters occur in the northern half of country and along the east coast.

Urbanization: Urban population: 33.8% of total population (2018); rate of urbanization: 5.22% annual rate of change (2015-20 est.); 6 million Dar es Salaam, 1 million Mwanza, 262,000 Dodoma. Dar es Salaam is one of the most populated cities in Africa.

Economy: Tanzania has achieved high growth rates based on its vast natural resource wealth and tourism with GDP growth in 2009-17 averaging 6%-7% per year. Tanzania has largely completed its transition to a market economy, though the government retains a presence in sectors such as telecommunications, banking, energy, and mining.

The economy depends on agriculture, which accounts for slightly less than one-quarter of GDP and employs about 65% of the work force.

All land in Tanzania is owned by the government, which can lease land for up to 99 years. Proposed reforms to allow for land ownership, particularly foreign land ownership, remain unresolved.

The government continues to rehabilitate Tanzania's aging infrastructure, including rail and port, which provide important trade links for inland countries. A new Standard Gauge Railway project from Dar es Salaam to Morogoro is being constructed, a new port and an oil export terminal are set to land in Tanga, while the road infrastructure and electricity distribution continue to gather pace in the country, further opening the vast country to investments.

GDP (purchasing power parity): $162.5 billion (2017 est.), $153.3 billion (2016 est.), $143.3 billion (2015 est.)

GDP real growth rate: 6% (2017 est.), 7% (2016 est.), 7% (2015 est.)

GDP per capita (PPP): $3,200 (2017 est.), $3,100 (2016 est.), $3,000 (2015 est.)

GDP composition by sector: Agriculture: 23.4% (2017 est.), Industry: 28.6% (2017 est.), Services: 47.6% (2017 est.)

Inflation rate: 5.3% (2017 est.), 5.2% (2016 est.)

Agricultural products: Coffee, sisal, tea, cotton, pyrethrum, cashew nuts, tobacco, cloves, corn, wheat, cassava, bananas, fruits, vegetables; cattle, sheep, goats Industries: Agricultural processing (sugar, beer, cigarettes, sisal twine); mining (diamonds, gold, and iron), salt, soda ash; cement, oil refining, shoes, apparel, wood products, fertilizer Industrial production growth rate: 12% (2017 est.)

Labour force: 24.89 million (2017 est.); Labour force by occupation: Agriculture: 66.9%, industry: 6.4%, services: 26.6% (2014 est.)

Export commodities: Gold, coffee, cashew nuts, manufactured goods, tea, cotton, fruits and vegetables Imports commodities: Consumer goods, machinery and transportation equipment, industrial raw materials, crude oil Source: Edited from CIA data

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COCA-COLA: Change continues as bottler aims to be a total beverage company

World’s top beverage maker innovates aggressively and taps acquisition strategy as it redefines its business in challenging times

T

he iconic red Coca-Cola delivery truck is a common sight around the World, perhaps as iconic as the company’s contour Coke brand bottle – or even the Coca-Cola logo, with its unique typography that has stood the test of time, clocking more than 130 years as one of the most outstanding brands ever.

The Coca-Cola Company’s products are distributed in over 200 countries and territories in worldwide – except for Cuba and North Korea - with a majority of these countries served through local production plants and people. With over 500 brands – including such diverse global brands like Sprite, Dasani and Fuze, or such unknown brands in Africa such as Aquarius, Georgia Coffee, Sokenbicha – and with 21 of these brands crossing the million dollar mark in sales in 2018, the casual observer may probably think that Coke doesn’t have to try very hard to succeed in the marketplace, where the company has had runaway success for more than a century. But this is further from the truth for this global giant.

Changing market environment

Coca-Cola remains steadfast in its focus on the future around the world. But, recent changes in consumer perception on food and their drinking habits, regulatory head winds and changes in the way consumers buy beverages has brought back the Fortune 500 veteran company into deep reflection on the way forward for its business.

With the coming into the fore of young Millenials and changing consumer behaviour on their food and beverage consumption habits, Coca-Cola has had to invent new ways to meet the unique needs of its young consumers. As more and more consumers have become concerned and worried about their sugar consumption and its impact on consumer health and well-being, the world’s largest carbonated drinks maker has had to face up to the changing scenario. Consumers also continue to ditch regular carbonated soft drinks in mature markets like the US and Europe, opting more for sports and energy

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drinks, carbonated water and ready-todrink coffees and teas. To compound the company’s worries are the raft of taxes that have been imposed on sugar-sweetened drinks across the world from the famous Mexico case, to South Africa, UK, Saudi Arabia, France, several states in the US and another 25 countries or so. So what do you do if the bulk of your products are in the sparkling beverages side and the market is shifting?

Innovate faster with a new culture

For a company that is in its 13th decade, Coca-Cola is rare as a consumer facing brand. Not many companies with CocaCola’s history still have the first product that they introduced when they started out, remaining as their core product after all these years as Coke has done, with few iterations or changes to the brand’s formulation or visuals. The consumers of Coke transcend generations, race, income and more.

For a long time, Coke was not one of FOODBUSINESSAFRICA.COM

COMPANY FOCUS: COCA-COLA

IN NUMBERS

40,000

NUMBER OF COKE'S EMPLOYEES WORLDWIDE, FROM 150,000 the companies to talk about when you considered innovation, instead focusing on building a scalable production and distribution enterprise that is second to none, that ensures that its products were at ‘arm’s reach of desire’ wherever you are were around the world – only launching new flavour options once in a while. However, the company has had to seek new ways to disrupt its own business to remain relevant, despite decades of run-away success. This can be demonstrated by the fact that at last year’s Africa Food Industry Excellence Awards held in Nairobi, Kenya, and organised by this magazine, the company took home the coveted New Soft Beverage Product of the Year award category for its Minute Maid Fruity Boost brand, a blend of juice and dairy that seeks to meet consumer needs for healthier beverages.

And it’s ready-to-drink Fuze Tea took the Hot Beverage of the year accolade at the same event. But the two products are just a tip of the iceberg, according to Duncan Kimani, the Manufacturing Director of Coca-Cola Beverages Africa, Kenya, who says in an earlier interview with Food Business Africa that the company is focused on rolling out more and more products into the marketplace, with more on the way.

As the company evolves, it has had to look for growth in more areas than its sparkling beverages line, entering and expanding such product categories as energy drinks, water, ready-to-drink coffee and tea and even dairy products and blends – playing in new territories that were inconceivable just five years ago.

Coca-Cola East Africa General Manager, Ahmed Rady, says that the company is lining up a number of new drinks to be gradually rolled out in the region’s market in response to the changing consumer needs. “We are trying as much as possible to give consumers a variety based on what we hear every day from researchers, from sitting with them, observing what they are doing and their shopping behaviours,” he FOODBUSINESSAFRICA.COM

said. “You can expect a lot of new products coming from Coke because consumers are asking for more. The world has changed and there must be customisation. The trend where everybody is going to conform and drink the same thing is gone,” said Ahmed.

Quincey’s zombie-killing innovations focus

With a new CEO James Quincey, who has been in charge since May 2017, Coke has changed its innovations approach, in what Quincey calls the ‘test and learn’ approach to deliver world class innovation, which has been engrained in the company’s culture as he changes the company to be a consumerfocused organisation. He says that Coke has to be faster and more experimental in its innovations approach, while the culture of the company has to change drastically.

He adds that the company has to be growth oriented, curious to discover consumer changing habits and consumption strategy, inclusive (where views from all irrespective of their role or origin is taken in) and that its employees have to be empowered to make decisions both in the offices and in the field.

“One of the principles that we have been trying to live up to in this faster, exponentially ever-changing world is to move quickly. We have taken the bull by the horns. We are working around changing the culture in the organisation. Speed and not waiting for everything to be perfect is one of the things that we have been trying to do,” he told the company’s investors conference last year.

“In new product development process, the company has adopted the ‘test and learn’ approach, that is increasingly an important part of our culture. In the past we would see ourselves as set piece battles where you would prepare yourselves for a very long time for any product launch, try to make it perfect and then go for it. That means it took a very long time and you relatively had few of them and you bet big on whether they would work or not. The future is not going to be that way,” he cautioned. “We must be much more agile, get things to market quicker, maybe smaller, test, learn.

They work or they don’t work, move on.

If they do, take them to the next stage.”

He gave the example of Coke Zero Sugar that wasn’t one monolithic idea launched everywhere, but was launched in waves around the world. Launched in 2005 in the US to give consumers a calorie and sugar

We are working around changing the culture in the organisation. Speed and not waiting for everything to be perfect is one of the things we have been trying to do.

James Quincey, CEO

free drink and a taste that is ‘a lot like Coke’, the brand has been rolled in most markets around the world at break-neck speed, even as the company keeps on tweaking the brand. In Kenya, the company has changed the name to Coke Without Sugar (and Bila Sukari in Kiswahili) to convey the right messaging that its consumers understand.

The company is on a roll, introducing 600 new products in 2018 according to its latest financial release, but at the same time, Quincey insists that country teams have to continuously hunt down the ‘zombies’, or products that actually fail to gain traction in the market and fail to deliver on the promise.

“At Coca-Cola, we’ve developed a guide to help our markets identify and kill zombies using a disciplined process. We have started issuing quarterly zombie lists to our top 32 markets. Our CEO, James Quincey, has requested zombie reviews as part of overall business reviews, every time he visits a market,” says Francisco Crespo, the company’s Chief Growth Officer. “Our primary focus is on products and packages that, despite our best intentions and efforts, have not grown over a three-year period.

They are only distracting our attention and misusing our resources . . . . We see that even in some of the best companies, zombies exist side-by-side with rock stars,” he adds. He reveals that in the beverages industry, research shows that it takes about a decade for a brand to become a leader, and most brands don’t make it. As part of the zombie removal process, the company culled 700 products in 2018.

Crespo advices that good business leaders must embrace failure in a way that eventually makes them stronger. “Now, let’s be clear: It is perfectly OK to fail. It is not OK to not know why. When we experiment, we focus on learning. If something works, we should scale up the idea. If we learn something doesn’t work, we need to stop doing it. This last part – stopping – is hard, as we see hope in everything we do. But doing things we know do not work or repeating

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an experiment without conclusive learning is a futile exercise. And this creates zombies.

Well-meaning leaders keep zombies based on hope and often misplaced optimism that maybe, one day, the zombie will come to life. Reputational risk is another factor – the risk of being seen as someone who made the wrong call.”

He adds that letting complacency to seep into an organization, where organisations slip into the ‘culture of explanation’ which is the ability to justify in exhausting detail any issue, while being paralyzed to drive action to make things better, is a sure way for such organisations to keep zombies, with fear of cleaning the pipeline.

“Zombie-infested organizations often say, “There is no harm in keeping this product.” The reality is that the unseen costs of zombies actually harm an organization.

Imagine the costs related to material management and procurement, production, inventory costs, distribution, salesperson time and, most of all, the opportunity cost of putting a better product in its place.”

He gives the example of the company’s famous dalliance with New Coke brand in the 1980s that spectacularly backfired when consumers failed to like the new taste, despite the company extensively researching and powerfully launching the product. “The lesson of New Coke was not so much the conviction to launch it but the courage to withdraw it after less than 80 days,” Crespo says.

Innovating beyond sparkling beverages

A rejuvenated Coca-Cola continues to seek growth in areas beyond its core carbonated (or sparkling) beverages, with innovations into the dairy, teas, coffees, juices and even plant-based beverages gaining momentum.

Quincey says that the company’s multifaceted approach to meet changing tastes and needs includes reducing sugar and calories across brands; offering new drinks that provide health benefits like hydration and nutrition; expanding the availability of smaller, more convenient packages to help people control sugar more easily; and providing clear, easy-to-find calorie information to help people make informed decisions without the guesswork.

The new innovations focus has delivered some quick product launches and wins around the world, as the company seeks to expand its portfolio of products that cover the 8 drink occasions a regular consumer

has throughout the day – and deliver on the company’s total beverage company goal.

This has seen the introduction of a whole range of zero calorie across its brands Fanta, Sprite and Krest and other brands, in addition to Coca-Cola Zero Sugar; CocaCola plus Coffee in Australia and has since been rolled into Vietnam, Thailand and other Asian countries; a low calorie tea drink in Singapore called Authentic Tea House; Coca-Cola Clear, a new variant of Coke without the caramel coloring; and the company’s first-ever alcoholic drink in Japan. In India, it recently debuted two lines of beverages dubbed Enhanced Hydration and Nutritious Edibles, launching Aquarius Glucocharge and Minute Maid Vitingo respectively. In the US, the company is currently test-marketing Bar None, a line of bottled booze-free adult sparkling drinks that are targeted at the booming alcoholfree drinks space. The drinks were crafted with bar-inspired flavors and premium, ontrend ingredients to appeal to beer, wine and cocktail drinkers. In Japan, Coca-Cola also recently debuted the first frozen Coke in a squeezable pouch and Coca-Cola with dietary fibre, with the country acting as a test case for the company’s most out-ofthe-ordinary innovations, tapping into a population that is continuously seeking new nutrition and taste adventures. CocaCola in November 2018 unveiled plans to roll out a range of own-branded energy drinks, “Coca-Cola Energy” and “CocaCola Energy No Sugar”, for the first time in history. In early 2019, the company

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unveiled its first Coca-Cola trademark flavour innovations by launching Orange Vanilla Coke and Orange Vanilla Coke Zero Sugar.

Coca-Cola’s lift and shift globally strategy, where ideas are tested in a few markets and then aggressively rolled out elsewhere is bound to deliver significant innovations and product launches across markets in the near future. Through this strategy, brands like ready-to-drink tea brand Fuze, which was launched in 2012, reached the million dollar status within two years, and is now available across the world.

Coca-Cola Zero Sugar hit the billion dollar mark within two years, indicating the pace with which Coca-Cola can deliver on its ambitious goals.

Acquisitions drive scale

As Coca-Cola seeks to disrupt itself internally, the company has also sought to leverage its scale to tap bolt-on acquisitions and investments in big and small companies as it seeks to break the innovations barrier, while gaining traction with consumers around the world.

The company has achieved a lot by investing in small, disruptive companies with great ideas, and then giving these upstarts space to continue innovating, sparing them the big company mentality, thereby deriving the best out of them. The company’s 16.7% acquisition of a stake in Monster Beverages, which the company did in 2015, and whose brands have benefited from the scale Coke provides FOODBUSINESSAFRICA.COM

COMPANY FOCUS: COCA-COLA and is now available across the world, is a case in point. Others are the 2018 minority investment in Bodyarmor, a fast-growing line of premium sports performance and hydration beverages, through its Coca-Cola North America Venturing & Emerging Brands (VEB) portfolio. Through this strategic relationship, Bodyarmor will remain an independent company and gain access to the expansive Coca-Cola bottling and distribution system. “By maintaining the independent thinking backed by the scale of Coca-Cola, we have succeeded with these acquisitions by taking the best these companies have to offer and boosting them with the resources of Coca-Cola,” says Quincey.

In Africa, Coca-Cola has been very active in seeking new avenues to grow its portfolio of brands, especially after the formation of the Coca-Cola Beverages Africa unit. The formation of CCBA, which is responsible for the bottling of the company’s brands across Eastern and Southern Africa and some Western African countries, brought in a list of market leading water brands including Keringet in Kenya, Ruwenzori in Uganda and Voltic in Ghana.

In Zambia, the company recently closed the acquisition of Fairy Bottling, the leading soft beverages manufacturer in the country, and which also owned the country’s biggest water brand Aqua Savana. The deal came just shortly after CCBA bought out the bottling business operations from Zambian Breweries.

Perhaps the most outstanding acquisition in Africa has been the takeover of Nigeria’s largest juices, beverages, dairy and snacks maker, Chi Ltd. “CocaCola is continuing to evolve as a total beverage company, and Chi’s diverse range of beverages perfectly complements our existing portfolio, enabling us to accelerate expansion into new categories and grow our business in Africa,” Peter Njonjo, President of the West Africa business unit of CocaCola said of the transaction.

Sustainability initiatives change the game

With a long history of being at the forefront of being criticised for selling products that contributed to the obesity epidemic in some countries, Coca-Cola has fronted the critics head-on by implementing several initiatives to change the narrative.

In 2014, Coca-Cola was among America’s beverage companies, together with FOODBUSINESSAFRICA.COM

PepsiCo and Dr Pepper Snapple Group, the Alliance for a Healthier Generation and the American Beverage Association (ABA) announced a push to encourage greater interest in and access to lower and no-calorie beverage options through their Balance Calories Initiative (BCI).

A voluntary effort by the beverage industry to help fight obesity, the BCI’s goal is to reduce beverage calories consumed per person nationally by 20% by 2025 by engaging in efforts to educate the consumer and work with stores to diversify product offerings and offer more choices for the them.

Since then, the company has not only innovated low or no calorie products but also ensured that the products are availed to consumers, while communicating to the consumers of the options available so that they make an informed choice in their marketing activities. Smaller pack sizes have also been introduced to reduce the amount taken by consumers at any one time, reducing their calorie intake.

The company has also led in sustainability initiatives aimed at reducing the impact of its packaging on the environment. In 2018, it introduced a sustainability initiative dubbed World Without Waste, a holistic, three-pillar plan that includes ambitious goals to create packaging made of at least 50% recycled material by 2030; to help to collect and recycle a bottle or can for every one the company sells by 2030; and to partner with industry, governments and local communities to tackle the global issue of plastic waste. “Our aspiration – as part of our World Without Waste vision – is to close the loop on our packaging by helping turn more old bottles into new ones,” explains Scott Pearson, senior director, Global R&D Engineering, The Coca-Cola Company. “And enhanced recycling is the next big step in that direction.”

The company recently announced two investments to ‘speed the development and deployment of breakthrough enhanced recycling technologies that will convert recycled plastic into food-grade PET’ for use in its beverage bottles and also opened up its PlantBottle technology to its competitors, to catalyse the adoption of this unique technology across the industry.

New company structure delivers

The company has also had significant changes in its top management and structure with a view to align itself with the new business model that has refranchised

most of its bottlers, thereby returning the daily management of manufacturing, bottling, storing, and distributing CocaCola to larger, more capable franchisees.

The refranchising initiative has seen the creation of 68 bottlers across the US since 2013, when the company was responsible for bottling operations across vast swathes of the country. In Africa, in 2014, CocaCola Beverages Africa (CCBA) was formed from the merger of SABMiller PLC, The Coca-Cola Company and Gutsche Family Investments (GFI) beverage bottling operations in Southern and East Africa.

Coca-Cola Beverages Africa which has a head office in South Africa serves more than 12 countries, employs 12,000 people and accounts for 40% of the total CocaCola beverage volume consumed in Africa.

In China, it previously had three major bottling groups - Bottling Investment Group China, COFCO Coca-Cola Beverages Ltd and Swire. To improve the efficiency and scale of its local partners, it signed an agreement to refranchise all its bottling operations in China in 2016, to return its focus to the company's core strengths.

Coca-Cola divided its bottling system in China between two franchise partners - COFCO Corp and The Swire Group.

The company completed its franchising transition in 2016 in Germany, by joining its businesses including Coca-Cola Enterprises, Coca-Cola Iberian Partners and Coca-Cola Erfrischungsgetränke AG to form a new bottling business named Coca Cola European partners. Similar initiatives have been carried out in Europe and Latin America.

The initiative has led to significant reduction in head count at the company, with Quincey revealing that 40,000 people are currently employed by Coca-Cola, from a high of 150,000 at the start of the process.

At the top, new management has come on board to work with Quincey to deliver for this highly ambitious company. Quincey is set to take over the Chairman and CEO role in April as Mukhtar Kent retires from the Chairman role he has had since Quincey became CEO. Working closely with Quincey will be the new President and Chief Operations Officer Brian Smith and John Murphy who has taken over the Chief Financial Officer role.

With a new team, new focus and strategies, and ambitious goals, Coke is surely set to surprise in the future

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MY CORPORATE JOURNEY | LUCY MANNING

LUCY MANNING

Regional Brewing and Quality Manager, East Africa – AB-InBev

She is a trained pest control consultant and has received training as an organoleptic taster for various food products and has received training on continuous improvement (Kaizen), consumer care management system and process management.

She was awarded as one of the top two Quality Managers for Japan Tobacco International in 2004.

Describe your current role, your key responsibilities and the most critical deliverables?

My role at AB-InBev as the Regional Brewing and Quality Manager, East Africa supports Tanzania Breweries Ltd. Group of companies’ four brewing plants in Tanzania and two Nile Breweries Limited’s plants in Uganda. I coordinate regulatory compliance and quality management system activities for the brewing and quality departments in both countries. Am also the head of Voyage Plant

Optimization Food Safety Management system for East Africa, coordinate internal and second party audits for our plants and suppliers and manage relationships with our customers, consumers and regulators in the region. Further, I support new product development activities and specification factory approval systems while also managing functional 3-year strategic plans for continuous improvement, capital investment, people development, food safety information management System GAP recovery and compliance audits.

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Related to my role, I have been secretary to the manufacturing segment at the Tanzania Food & Drugs Authority (TFDA), and currently a member of the Tanzania Bureau of Standards (TBS) technical committee for alcohol and non-alcoholic beverages. I also participate in the East African Community meetings as a subject matter expert and consultant. I am a member of the International Food Safety and Quality Network (IFSQN).

Tell us briefly about your company and how it fits with your career FOODBUSINESSAFRICA.COM

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goals.

AB-InBev is the number one beer manufacturing company in the world. In 2015 November, AB-InBev purchased SABMiller the number two beer manufacturing company and became the majority shareholder for Tanzania Group of companies and Nile Breweries Limited in Tanzania and Uganda.

What are the most important skill sets in achieving success in your role?

The most important skill sets in my role are technical skills, ability to understand Codex Alimentarius and ISO and national standards, leadership by example, networking skills to maintain a positive work environment and the ability to manage internal and external stakeholders and finally strategic planning to deliver results.

What were some of your previous roles? How important were these roles in shaping your current role?

I have worked in several multinational companies including AVON as part time sales lady during my school years. I also had a stint at TCC/Japan Tobacco International and at Promasidor Pty Ltd. I then opened my own consultancy company, providing SMEs with support in designing food safety systems for third party accreditation and also worked with SGS as an independent auditor and trainer for HACCP systems. I have grown from humble beginnings, working myself upwards from administration, supervisory duties, managing standardization of processes and continuous improvement programs in the industry, with over 15 years of experience in quality management system and food safety information management systems management.

What have been some of the key turning points in your career?

My key career turning point was when I discover KAIZEN as the means to differentiate myself.

Have you ever had a change in career direction? If so, how did you handle the change? What lessons did you derive from this change?

I have had several changes in career direction.

I enjoy change, as any change in my career has been another adventure for self-development.

FOODBUSINESSAFRICA.COM

I started my journey of international exposure in the cigarettes industry with Tanzania Cigarette Company Ltd, a subsidiary of RJ Reynolds, that was later purchased by Japan Tobacco International, where the senior management realized I had potential for continuous personal development. I was placed in a talent management program where I was provided with a mentor, a Director, whom I did not have a direct reporting line, to improve my managerial skills. When I moved to a smaller multinational company, Promasidor Pty Ltd, I worked with Managing Directors with 40 plus years of experience, gaining leadership experience in the food industry. When I join AB-InBev, I found gurus in management information systems.

In a nut shell, change made me increase my personal development exponentially.

What makes your role interesting?

What do you enjoy most about your role?

My role is evolving, flexible and I do not get bored. Every day I am operating in a pool of knowledge that can be constantly transferred.

What I enjoy most in my work is the people I am working with; their level of work enthusiasm is contagious, and it motivates me to continuously develop myself and become a better leader.

What has been the role of mentors and family in the achievement of your professional goals?

Mentors as stated above, have played a major role in shaping my leadership style. You are either born a great leader like say, Nelson Mandela or you can develop leadership through tacit knowledge transfer to be a great leader. I have and I am continuously developing my leadership skills by exposing myself to great leaders in the food industry who I have had a privilege to interact with.

My family is very supportive. My Mom even assisted me to take care of my child while I travelled the world so that I could maintain a worry-free state of mind and work to my maximum potential.

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

My main challenge comes from within me where I try to push myself to become more efficient in my way of working. I am overcoming my challenges through on the job training and networking with internal and external mentors.

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How can young people who may aspire to a career choice like yours plan their journeys?

The first thing young people should do is build a strong foundation of knowledge that will open up for them more career opportunities.

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

The beverage industry in the region is stable.

However, it does experience seasonality due to changes in consumer purchasing power, as approximately 70% of our consumers depend on agriculture for their lively hood.

We have loyal consumers for our products.

The opportunities for suppliers to support the industry in East Africa and within the East Africa region exists. Just-in-time availability of raw materials, spare parts, equipment and tools supply will assist in lowering the unit cost of production and improve the industry’s competitive advantage.

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

I love spending time with my family after a long day at work as it helps recharge my energy. During my spare time I enjoy farming in my 4-acre fruit farm. My hobbies are to travel the world, read science fiction novels and taking care of my family.

LUCY MANNING IN BRIEF Lucy Manning has a Masters Degree in International Business from the India Institute of Foreign Trade and a BSc. Biology from Carleton University in Canada.

She is an IRCA accredited Auditor/Lead Auditor for Global Food Safety Management Systems FSSC 22000 (ISO 22000/ ISO TS 22002-1), the first in Tanzania and also an SGS certified internal auditor for ISO 14001, ISO 9001, and OHSAS 18001.

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MY CORPORATE JOURNEY |

LILIANE CLARISSE UMUHUMUZA

LILIANE CLARISSE UMUHUMUZA

Quality Assurance & Quality Control Manager, Africa Improved Foods (AIF) Rwanda Ltd.

ABOUT LILIANE Liliane has a Master’s Degree of Engineering in Food Science and Technology from Jiangnan University in China and a BSc. in Food Science and Technology degree from the Kigali Institute of Science and Technology in Rwanda. She was awarded the "Excellent Female Student" at Kigali Institute of Science and Technology and the “Excellent Performance” of the year award at AIF in 2017.

She led the QA/QC team to pass the pre-assessment audit for ISO 17025:2005 for the AIF Laboratory accreditation in December 2018 and also led the team towards AIF’s FSSC 22000 certification in 2017, among other accolades and research publications in international journals.

Describe your current role, your key responsibilities and the most critical deliverables?

I am currently the Quality Assurance and Quality Control Manager at Africa Improved Foods (AIF). My key responsibility is

establishing processes and policies to ensure that the company is producing and selling the highest-quality products possible and am also responsible for implementing these processes throughout the company.

Most critical deliverables include ensuring that the organization’s Quality Management System conforms to customer, internal, FSSC 22000, and regulatory legal requirements. Am also responsible for ensuring that our laboratory meets and implements the ISO 17025:2005 standard.

I also drive QA/QC awareness and passion in the whole of the AIF organization Tell us briefly about your company and how it fits with your career goals.

Africa Improved Foods (AIF) came to life as an agreement between DSM as the major shareholder and the Government of Rwanda, 64 JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

CDC (the investment arm of the UK Government’s Department For International

Development), the International Finance Corporation and FMO, a Dutch development bank, to create a sustainable solution to scale-up the creation and delivery of nutritious, supplementary food for the first 1,000 days of life.

AIF has the latest European technology in our plant, has acquired FSSC 22000 certification and strictly maintains the highest quality standards demanded by the WHO and WFP in terms of grain quality, aflatoxin, product formulation, nutritional content, hygiene, environmental standards, and health and safety.

With the above, as a Food Science engineer, there is no doubt that AIF was the right place to broaden my career and also use the acquired knowledge.

What are the most important skill sets in achieving success in your role?

The following have been an asset as I strive to achieve my goals: my nutrition, sanitation and quality control knowledge, including microbiology, fortification and mycotoxin FOODBUSINESSAFRICA.COM

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control and knowledge about food processing plus my training and experience in food safety and quality assurance systems (FSSC 22000, ISO 22000, ISO 9001, HACCP) have been the building blocks to the success so far in my role. Further, leadership, cost, team and communication management are some of the soft skills that continue to help me achieve in my role.

What were some of your previous roles? How important were these roles in shaping your current role?

My previous roles include Chief Production Officer at Trust Industries, Food Security

& Nutrition Program Officer at Global Communities and Food Safety & Research and Development Manager at SAFOA Services Rwanda. These roles have helped me develop the skills above and acquire the knowledge I use in my current role.

What have been some of the key turning points in your career?

I would say that every new management post I was appointed to was a turning

point as I was exposed to new challenges, new learning opportunities and new experiences. The main one being at Africa Improved Foods where I have been exposed to different cultures (we have 8 nationalities at AIF!), working with people from different countries all over the world and being valued for my knowledge and what I contribute towards achieving the main goal.

Have you ever had a change in career direction? If so, how did you handle the change? What lessons did you derive from this change?

In 2014 I worked for a short period as a research assistant and interpreter in a research conducted by the London School

of Economics and Political Science. It was a challenging experience as I had to meet many people of different backgrounds and manage to get the information needed for the research. I was later recommended to offer such services. What I learnt from this experience is that anything you put your heart to do, you can achieve. It is a matter of focus and determination.

What makes your role interesting?

What do you enjoy most about your current role?

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Knowing that my effort contributes to feeding millions of malnourished children with nutritious and high quality food to

help them achieve their full potential and have a bright future is what makes me wake up every morning energized. I enjoy working with all other teams at AIF, as my role requires, and having an impact that will last for generations.

What has been the role of mentors and family in the achievement of your professional goals?

I have been blessed to have good mentors

who saw the best in me and helped me to bring it out. My family has been of great support in all areas and I am grateful. They ensured that I got a good education and they continue to build in me values that have made me who I am today.

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

The main challenge I face is how to get the whole of my team to understand quality and customer expectations. Through training and communication, everyone has understood the importance of quality from raw materials to finished products and the reason we do what we do.

How can young people who may aspire to a career choice like yours plan their journeys?

Young people especially those who are still in school should focus and be serious about their studies - that is the foundation.

I would also advice that that after school, do not despise humble beginnings because life is a journey, you might start small with challenges that will become stepping stones to reach the higher level.

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to grasp in order to develop our continent.

One outstanding challenge in the region is how to inculcate a quality culture throughout the supply chain, especially at farm level. Africa will need to invest in quality education in order to efficiently use its resources.

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

A time of worship and a prayer are what I look forward to after a hard day at work.

In addition, exercise, singing and shopping (like any other lady) are my hobbies. The above activities help me in having a smile on my lips most of the time and make life easier for my workmates as well. I consider myself as a fun to be around person and I make the work environment enjoyable.

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

In Rwanda we have what we call “Umuganda� which is community work done once a month

where people from the same neighborhood come together to do different activities like cleaning, helping the needy in rehabilitating their house, and many others. I participate actively in this monthly activity to ensure my community environment is clean and to also help the needy in society.

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

Opportunities are still many in the food industry in the region and in Africa. We have not yet exploited our resources to the full.

Many countries grow raw materials which end up being sent to Europe or China for further processing. Those are opportunities

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MY CORPORATE JOURNEY | FRED OTIENO

FRED OTIENO Head of Innovations, East African Breweries Ltd ABOUT FRED OTIENO Fred Otieno is an alumnus of Lenana School which shaped his early years before he joined the University of Nairobi to study the Bachelor of Commerce in Marketing. Later, he undertook a Master of Science degree in Marketing from the University of Glamorgan in Wales. He has also earned the Chartered Public Accountant, the Chartered Institute of Marketing qualification and a Senior Leadership programme qualification from Strathmore University in Kenya.

Describe your current role, your key responsibilities and the most critical deliverables?

I have the exciting job of shaping the future of EABL and influencing what future consumers want from our category. My role as Head of Innovations at EABL is tasked with the responsibility to create our future portfolio of products by leading the development and launch of new brands into the market.

This involves working with the executive leadership in shaping the long-term strategy of the business, evaluating consumer and market trends, analysing our current portfolio for future fit and introducing new products that future-proofs our portfolio.

I am responsible not only for the strategy, but also bringing that strategy to life and delivering the business impact from the innovations I have launched. This means starting with the idea, developing suitable liquids and pack concepts, ensuring that these concepts build the business and are profitable, developing the goto-market strategy and executing it in the market.

My most important deliverable is value generated from new innovations in terms of net sales, gross margins and profit contribution for new launches as well as sustaining growth of innovations launched in prior years.

Tell us briefly about your company and how it fits with your career goals.

EABL is the leading manufacturing organization in the region, the second largest tax payer in Kenya and one of the largest employers in Eastern Africa. EABL has been the home of high performing, 66 JANUARY/FEBRUARY 2019 | FOOD BUSINESS AFRICA

respected and trusted brands that delight consumers and have been house hold brand names for nearly a century.

At EABL, we are leaders in building brands amongst FMCG companies. We have proven marketing philosophies that continue being proven time and time again about how we can create, build and sustain brand growth. It is a privilege and an amazing experience to be part of the legacy that is leading and shaping the future of our market. I am passionate about growing the business through building brands and creating new opportunities to meet consumer demand. Working at EABL has provided me an opportunity to bring to life this passion every day.

As I continue to grow my career, I have found that while EABL is a large organisation, it provides me with the agility, flexibility and dynamism of a small enterprise when innovating. We can move with speed, try concepts, improve them to work better and scale them up to become national successes.

What are the most important skill sets in achieving success in your role?

The innovation role is remarkably complex and dynamic. No one approach suits all occasions and indeed, no two innovations are identical in the process and approach. Therefore, the role requires a complex set of skills to succeed. I believe entrepreneurial mindset, strategic thinking, creative judgement, commercial finance knowledge, project management and sales commercialization are all very important skills to have. In addition, the role requires me to constantly work with a complex set of cross-functional teams. I have to inspire both internal and third-party suppliers to deliver the FOODBUSINESSAFRICA.COM

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most amazing outcomes, while influencing and inspiring key decision makers on the potential for the new innovations I am creating.

Just to explain a little bit the dynamism of skill sets required, in the early stages of developing an innovation idea, there is a stronger need to have clear view of the consumer opportunity as well as the strategic role for the brand in the business. The idea needs to have a path for profitability and be worth doing for the business. I work with the commercial finance team to evaluate the best cost of production for the product, margin structure and best consumer headline pricing.

The mid phase of innovations requires creative and marketing judgment to ensure we are creating the best liquids, most appealing packaging and best marketing approach to deliver the idea in the most powerful way to the consumer. Lastly, as we go towards launch, I become more keen in how the new product will show up in the required points of consumption and how will make consumers to try it. The key commercial drivers for any innovation are route to market, consumer awareness, consumer feedback and rate of sale. During the launch phase we keep a weekly and monthly tracking of these performance drivers and swiftly keep adjusting our launch plan accordingly to deliver success.

As you can see, it involves a mix of skills and I lead a team of amazing project leaders who work on numerous innovations in our pipeline and they lead the innovation through the different phases. Through the whole process I provide direction, resources, manage stakeholders and maintaining the team motivation throughout the process.

Maintaining the excitement and support of the business leaders is a critical driver of success.

What were some of your previous roles? How important were these roles in shaping your current role?

I have had several past roles that have shaped me and prepared me for this role.

Prior to my current role I held a Regional Innovation Marketing Manager role in Diageo, where I honed my skills in strategic thinking and creating compelling innovation concepts. In this role, I oversaw the development of mainstream spirits innovations in Africa. It was a time that many markets in Diageo Africa had not fully developed their mainstream spirits portfolio. This allowed me to create new FOODBUSINESSAFRICA.COM

exciting prepositions that would have multiple-market launch potential. I worked with teams in Nigeria, Cameroon, Ghana, Kenya and Uganda in understanding the market potential for the new ideas and the impact of the ideas to growing their businesses. This experience was invaluable to setting me up for the success I have achieved in my current role.

I also worked in Indonesia as the Marketing Director and in Uganda as the Marketing Manager for beer brands. My biggest impact in these roles were on creating and executing impactful marketing business plans for my portfolio of brands. In these roles I did a number of product renovation projects to reframe exciting brands and delivering new to market launches for some of our globally established brands.

One of the most interesting achievements was leading the setting up of a green field plant and producing a new range of Smirnoff innovations in Bali, Indonesia. It was complex and challenging, which helped me build resilience and built my capability in managing many stakeholders to deliver a complex project. Innovations require a lot of resilience to overcome barriers and challenges that face the development of a new product. I was also able to stress test my ability to lead in foreign, multicultural environments.

Earlier in my career, I was exposed to the fundamentals of marketing and brand management covering areas such as brand strategy, marketing campaigns development, sales management, training / capability development, new product development and market analysis having worked in the automotive, media and advertising industries.

What have been some of the key turning points in your career?

I have had numerous turning points that have shaped my career. The most defining have been the choice to focus on innovations in the past few years. When I was leaving Indonesia, I decided to take an innovation role because I strongly believe that the future of Africa is being defined by innovations. It is evident with the aggressive drive to innovate in large and small businesses alike. African consumers are adopting new innovations faster and the market is changing faster today compared to any other time in our history. I strongly believe that any business leader without a lens on innovation is likely to miss on huge opportunities that arise as the market

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evolves.

I would also say that taking the opportunity to gain international experience has been hugely valuable in shaping my career and personal life so far.

Working in Uganda and Indonesia gave me an opportunity to immerse in new cultures, understand people and be able to deliver amazing business results in new environments. This is a critical element that has grown my leadership versatility and emotional intelligence which are important aspects to delivering my current role.

Have you ever had a change in career direction? If so, how did you handle the change? What lessons did you derive from this change?

In the early days as I undertook my undergraduate degree, I contemplated taking on accounting. I went on to complete my CPA qualification but during work attachment, I decided that I enjoyed marketing better. I had a stint as a credit accounts analyst for a credit card company while in university. It was at that time that I recalibrated my passions and interest resulting in my choice to pursue marketing instead.

Over time as I have grown in my career, I have come to appreciate that all experiences truly add up to make me a better leader in my area. For instance, my accounting knowledge is now playing a key role as I evaluate business opportunities for innovations and in developing new product value chains. At the end of the day, it helps me fully evaluate what is a good business decision and what is not.

Indeed, in today’s world, any business or business leader must be versatile, quick to learn and adaptable in different environments to succeed. I have had my share of shifts between various industries / sectors and in different cultural environments. All in all, I am a big believer that all experiences are cumulative and make us better at what we do. In addition, it enables every member of the team to have different points of view because we can approach a situation with different points of view.

What makes your role interesting?

What do you enjoy most about your role?

I love to create new products that consumers love. I really enjoy the patience, unpredictability in creating new brands

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and most importantly, the reward when a consumer tells me how much they enjoy what we have created. It excites me to see the growth in the demand of recent innovations I have launched such as Tusker Cider, Chrome Vodka, Captain Morgan Gold, Black & White Whisky and Orijin because people love them. I am motivated by the knowledge that the brands I am creating today will likely outlast me in the organization and will create an opportunity for future generations to work at EABL. I have seen how the innovations I have created are desired by consumers and are helping to grow the business consequently creating shareholder value.

I strongly believe that organizations that are not innovating will be disrupted and will become extinct in the future because consumers are constantly changing and they desire more value from the brands they choose. My job is to create brands that consumers will desire for into the long term. In this regard, I my team and I are playing a critical role in shaping the future.

What has been the role of mentors and family in the achievement of your professional goals?

A support structure is extremely important to being successful. My most important support is my family because they keep me grounded. They give me open and authentically feedback to me every day and have shaped me in my leadership. They have been on my side as I made some of the career and cultural shifts, and they remain a big motivation in my leadership journey.

In addition, I have had several mentors and peer coaches along the way that have help me sharpen my leadership and offer valuable advice to me. I ensure that I keep connected to family and mentors who keep me honest on my goals and how I go about achieving them. The important thing is that while my family has remained a constant, I leverage different mentorship relationships to navigate the new challenges that I have come across in the different phases of my career.

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

Challenges are an everyday part of innovating. The process of creating a new brand is filled with numerous challenges and risks. It is no wonder that 90% of all innovations that are launched end up failing in the early stage of development

and many more ideas never come to life.

There are challenges in all stages: deriving a powerful consumer insight, designing the idea, shaping the strategy, developing the product, creating a winning value offering or even in commercializing the product in the market. An example of a brand that did not work was some of the colored variants of Smirnoff because consumers did not like the blue colored liquid.

I look at challenges as a glass half full. I see an opportunity to create a solution and value. We rigorously evaluate risks to the project continuously and develop mitigation plans. These risks that could cause failure if they remain unresolved.. It is said that a problem defined is 90% solved, indeed a problem shared helps to deliver a proper thought through solution. These risks are a critical tool that the leadership signs off and allocates resources required to deliver the mitigation plan. What I have learnt is that problems or challenges are best resolved when shared, be it with the executive team, the suppliers or my team. Therefore, I never hold on to challenges, I quickly share them to the most appropriate person with the objective of getting a solution. I then track the mitigation plan to ensure the risk is not morphing along the way.

How can young people who may aspire to a career choice like yours plan their journeys?

Firstly, all experiences are valuable as long as there is a deliberate focus to the career goal. One has to know where they are going to. As the adage goes, any road leads to nowhere: without a destination you cannot shape your experience hence will not make the most of the opportunity you have.

Secondly, I would encourage young people to think about growing their careers in innovations. Innovation is the way we shall deliver future growth for businesses and the country therefore the need for more people to get into innovation.

Innovation straddles marketing, sales and business strategy. Successful innovators interface with the whole organization. It therefore provides a real good view of the organization quite rapidly. For those with a passion for it, it is very rewarding. Lastly, continued self-improvement is crucial to remain well versed in new technologies and creative ideas. Staying curious and hungry is very important for career growth.

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

At EABL, we are committed to shaping the development of the sector and leading its growth. Africa has a young, rapidly growing population that is providing a rich opportunity to grow our business. This youthful population is agile, on the move embracing innovations, digital technology and social media. As a result, African economies are projected to rapidly grow in GDP terms, resulting in continued growth of the beverage alcohol sector.

Given the increased connectedness consumers can see and desire global standard products. Additionally, the rapid change in consumer behavior is creating new challenges in delivering marketing communications, challenging overreliance on the traditional media. Consumers also give feedback instantaneously and expect responses instantaneously requiring the marketing professional to be present and connected to all feedback channels. A few hours can be detrimental to any brand.

We invest in building our understanding of the changing tastes and preferences in order to deliver the right idea/concept and launching it to the right consumer, at the right time.

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

I wind down my day with family finding time to check in and find out how their day has been. I catch up on news to know what’s happening and how it may impact my work, especially regarding new ideas. I also enjoy listening to music and reading.

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

I am the President of The Ruaraka Toastmasters Club, a forum that helps people to grow their communication and leadership. Additionally, I am involved in the leadership of my neighborhood and church.

FOODBUSINESSAFRICA.COM

SUPPLIER NEWS & INNOVATIONS INVESTMENTS

Ishida Europe opens Quality Control Demonstration Centre in the UK UK – Food packing machinery company,

Ishida Europe has inaugurated a Control Demonstration Centre at its UK headquarters in Birmingham to demonstrate its capabilities in packing line systems for food industries.

The center will be open to food manufacturers who will have an opportunity to see how the equipment and their entire systems work before making their purchases. They will also be able to undertake trials for specific products and applications including a special cold room where trials of fresh, frozen and chilled products can take place.

According to the company, the entire range of quality control and inspection equipment including x-ray inspection systems, check weighers and seal testers will be showcased at the site.

The Quality Control Demonstration Centre features Ishida QC machines as well as multi-head weighers, bagmakers and case packers, underlining the company’s capabilities in designing and installing complete packing line solutions.

Visitors and customers will get expertise from Ishida technical team who will provide advice and guidance on best solutions in specific production and quality

control objectives, in addition to knowledge of relevant regulations and standards.

“The facility gives customers the opportunity to ‘try before they buy’, discuss their requirements in detail and undertake product trials to ensure they select the right model for their application,” said Ciaran Murphy, Ishida Europe’s Business Manager EMEA – Quality Inspection Control. Also available on display will be Ishida Data Capture System (IDCS) for check weighers and the company’s remote monitoring Sentinel software.

PARTNERSHIPS

Filmatic in partnership with OAL Group to supply steam infusion technology in Africa SOUTH AFRICA – OAL Group, a UK based food engineering company has partnered Filmatic, an international supplier of liquid and food packaging equipment based in South Africa, to supply its steam infusion technology to the food industry in Africa.

Jake Norman, head of Innovation, OAL, said that the partnership aims at providing a wider variety of technology to food and beverage manufacturers as the company seeks spreading its wings in the African market. “It was always difficult for

us to provide on-the-ground support as we’re based in the UK. With Filmatic, food and beverage manufacturers throughout the continent can now purchase our award-winning technology through an experienced team and benefit from their local expertise and proximity, confident that they’re getting the best value system,” he said.

Filmatic has been supplying turnkey bottling equipment to a range of liquid consumer markets for 40 years. Pieter

du Toit, Sales Key Account Manager at Filmatic, said that the partnership places Filmatic in the right space in providing sustainable solutions to food and beverage manufacturers in Africa.

Steam Infusion is a disruptive cooking process, which can help manufacturers reduce their cleaning and cooking times, by using steam to simultaneously heat, mix and pump liquids with and without particulates.

INVESTMENTS

Givaudan opens new US$1.2m flavour commercial centre in Morocco

MOROCCO – Givaudan, a leading flavour and fragrance company, has commissioned a new flavours technical and commercial centre in Morocco, an investment valued at US$1.22 million.

The investment is part of Givaudan’s growth plan in tandem FOODBUSINESSAFRICA.COM

with its high growth markets strategy and demonstrates its ongoing commitment to the Maghreb and West Africa regions.

Louie D’Amico, President of Givaudan’s Flavour Division, said that the facility will enable easier accessibility of its products by consumers and aims at meeting customer needs.

The facility sits on a 600 square metre land providing specialised technologies in its integrated operations entailing application laboratories and commercial spaces for customer taste and smell experiences among others. The new facility is strategically situated in Casablanca, acting as an international hub and platform for the rest of the region, serving local and regional markets in Algeria, Morocco, Tunisia, Senegal, Malta, Ivory Coast and Guinea.

The company will offer a centralised location of the company’s full range of flavour application capabilities serving customers in the savoury, beverages, sweet goods, dairy and snacks segments.

Givaudan has said that the Morocco facility will also work closely with Givaudan’s flavour development centre in Dubai and regional innovation centres in Netherlands and Switzerland to offer additional support, reinforcing Givaudan’s presence in Africa and the Middle East for more than two decades.

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SUPPLIER NEWS & INNOVATIONS INNOVATIONS

Chr. Hansen ranked world’s most sustainable company

DENMARK – Chr. Hansen, a Denmark-

based global bioscience company was ranked as the most sustainable company in the world during the 2019 World Economic Forum in Davos, Switzerland.

The ranking done by Corporate Knights, a specialized Toronto-based media and investment research firm, comes as a time the firm is set to celebrate its 145th anniversary.

Chr. Hansen topped the 2019 global index of the most sustainable company scoring 100% on the ‘clean revenue’ indicator, reflecting that the company’s products have clear environmental and certain social benefits.

More than 7,500 companies were analysed against global industry counterparts on a number of quantitative

key performance metrics covering resource management, employee management, clean revenue and supplier performance.

While receiving the honour, Mauricio Graber chief executive officer at Chr. Hansen stated that the importance of utilising ‘good bacteria’ cannot be underscored in the quest of ensuring a sustainable planet.

“Chr. Hansen is dedicated to promoting a wider adoption of natural solutions, and we are truly proud of our products which are consumed by more than 1 billion people every day.

Having a global reach like that is indeed a great responsibility as well as an opportunity to make a positive difference for people, animals and plants.

We are fortunate to have customers all over the world who are with us on this journey – determined to promote sustainable and natural products to the end-user,” Graber said.

The firm has been in the centre of the food industry since 1874 through its supply

of natural ingredients to the industry.

Chr. Hansen insisted that sustainability remains the company’s priority as it strategizes in ensuring continued development and supply of natural solutions for the global food, health and agricultural industries in a sustainable manner.

“Working for a better world is deeply rooted in our product portfolio and organizational culture.

As a company this gives us a very strong purpose that is closely linked to sustainability, and which our employees fully identify with,” Mauricio Graber added.

Chr. Hansen is a leading, global bioscience company that has majored in development of natural ingredient solutions for the food, nutritional, pharmaceutical and agricultural industries.

The firm’s product innovations are based on over 30,000 microbial strains, referred to as ‘good bacteria’ in the production of cultures, enzymes, probiotics and natural colors.

INNOVATIONS

Kerry launches non-GMO yeast that can reduce acrylamide levels by 90% IRELAND – Ingredients solutions provider Kerry has launched a non-GMO yeast solution which it says has the ability to reduce acrylamide levels in various food and beverage applications by 90%.

Dubbed Acryleast, which is also a clean-label solution, it has been developed and introduced by Kerry in partnership with Renaissance BioScience, a developer of proprietary yeast-based technology solutions. Kerry said the product will focus its initial application in baked goods but this will be expanded in other applications

including in biscuits, crackers, French fries, potato crisps, coffee and infant food. Acryleast is a rich in asparaginase enzyme that is critical in reducing levels of acrylamide, related to carcinogenic effects.

Kerry says it is responding to growing concerns about the health impacts of acrylamide, which the National Toxicology Program’s Report considers to be reasonably anticipated human carcinogen, based on studies in laboratory animals.

“For customers looking for peace of mind and a more natural, non-GMO, sustainable

solution to a naturally occurring problem, Acryleast is the perfect natural and cleanlabel solution,” said Dr Cormac O’Cleirigh, chief business development officer at Renaissance BioScience.

Kerry palns to roll out Acryleast globally, with exception of 11 markets where Orkla Food Ingredients has a license agreement with Renaissance BioScience Corp to promote its own acrylamide-reducing yeast enzyme.

M&A

DSM forms joint venture in China to produce vitamin E ASIA – Royal DSM has announced that

it has formed a joint venture ( JV) with Chinese biomedicine-focused company Nenter & Co. to meet its future needs for vitamin E. DSM said it will acquire a 75% shareholding in the JV, for a cash consideration of about US$154.45 million, with the deal involving Nenter’s production and related assets for Vitamin E, including Vitamin E production facilities in Jingzhou, Hubei, China, which will be operated by

the JV. The JV will also have a minority shareholding in Nenter’s Shishou facility, also in Hubei, China, exclusively producing Vitamin E for DSM, subject to existing supply agreements of Nenter.

DSM and Nenter have agreed to upgrade and refurbish the facilities and improve the operational performance, to secure high-quality and sustainable supply of Vitamin E, while ensuring compliance with DSM’s safety, health and sustainability standards. DSM is boosting its global

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vitamin E capabilities with the partnership, strengthening its supply chain for the vitamin. It currently produces vitamin E in Switzerland and a partnership with Nenter enables it to offer locally produced Vitamin E in China and the Asia Pacific region.

Vitamin E is an essential ingredient in DSM’s animal nutrition premix solutions.

Vitamin E in oil and dry forms are suitable for all food and dietary supplement applications.

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FREE CONF+ EXPO ENTRY

SOUTHERN AFRICA OCTOBER 3-5, 2019 • LUSAKA, ZAMBIA

Welcome to Zambia’s only & SADC region’s Food, Beverage & Milling Industry Conference & Expo

The food, beverage and milling industry is growing rapidly in Zambia and the neighbouring Southern African countries.

Join us again in October 2019 at the second edition of AFMASS Southern Africa edition where you will achieve the following:

The industry, Government and suppliers in the SADC region finally have the only trade event that supports the future growth of the agriculture and manufacturing value chains.

• DISCOVER the latest milling, processing, food safety, laboratory, packaging, engineering, automation and other industry solutions from regional and international suppliers; • NETWORK with industry leaders and peers from the SADC region and beyond; • LEARN latest trends in processing, nutrition, packaging, sustainability and food safety technologies at FREE daily conferences.

AFMASS Southern Africa brings together investors, top managers, technical teams and professionals to the only platform that resonates with the food, beverage and milling industry in Zambia and SADC region.

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