Food Business Africa August 2019 issue

IN THIS ISSUE: CLEAN LABEL DAIRY | IMPACT OF 5G | HOT FILLING | DRAINAGE | BOILERS

Food Business WWW.FOODBUSINESSAFRICA.COM

YEAR 7 | NO. 37 | AUGUST 2019

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

MY FACTORY • MY STORY

SAYONA GROUP TANZANIA’S BEVERAGE GROUP ON A GROWTH TRAJECTORY

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EVENT PREVIEW AFMASS FOODTECH SOUTHERN AFRICA ZAMBIA EDITION MY FACTORY • MY STORY

FRESH CUTS UGANDA

AUGUST 2019 | FOOD BUSINESS AFRICA

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FREE

FOODTECH SO UTHER N AFRICA Z A M B I A

E D I T I O N

ENTRY

OCTOBER 9-11, 2019 RADISSON BLU HOTEL Great East Road

LUSAKA, ZAMBIA

Welcome to the 2nd edition of Zambia & SADC region’s Food, Beverage & Milling Industry Conference & Expo

WWW.AFMASS.COM/ZAMBIA2019 CONFIRMED SPONSORS

PARTNERS

FOOD INDUSTRY SECTORS

BAKERY & SNACKS

VENUE: RADISSON BLU HOTEL, LUSAKA, ZAMBIA AFMASS FoodTech Southern Africa Zambia edition 2019 will be held at the magnificent Radisson Blu Hotel.

The hotel is located along the Great East Road in the centre of Lusaka, with easy access to some of the best shopping malls, entertainment and leisure locations in Lusaka.

KEYNOTE SPEAKER TEA, COFFEE & COCOA

Tafadzwa Msarara - National Chairman, Grain Millers Association of Zimbabwe.

Find out about the opportunities, challenges and future prospects of the grains industry in Zimbabwe as the country sets up to revive its huge agriculture and food industry potential under the new Administration.

SOFT & ALCOHOLIC BEVERAGES

FRUITS & VEGETABLES

GRAINS, MILLING & ANIMAL FEED

He will discuss the prospects of investments in Zimbabwe and how the food industry in the country is looking towards an improved operating environment to take advantage of local and the SADC regional markets.

Now in its 2nd year, AFMASS FoodTech Southern Africa Zambia edition is set to welcome 30+ speakers and panelists from the food, beverage and milling industry, Government ministries and agencies, industry associations, NGOs and other stakeholders from Zambia, SADC region, Africa and the World in career changing conference sessions.

Join over 2,000 delegates and visitors at the Zambia and SADC region’s largest food, beverage and milling industry conference and expo, where you will learn new milling, processing, packaging and food safety/laboratory management technologies and network with peers and inspirational leaders from across the region.

At the Expo Hall, you will find the most diversified and latest technologies from Worldleading suppliers for your next projects or investments, including the following: INGREDIENTS

MILLING & PROCESSING TECHNOLOGY

PACKAGING

SUPPLY CHAIN SOLUTIONS

FOOD SAFETY & LAB

DAIRY PRODUCTS

NUTS & OILSEEDS

For more information on participant registration, exhibition and sponsorship opportunities, please contact: Agatha: +260 969 983931; Banda: +260 969 040602; Lavender: +254 725 343932 Email: info@foodworldmedia.net

WWW.AFMASS.COM/ZAMBIA2019

TH

THEME: AFRICAN DAIRY; MORE THAN JUST MILK

Join us at the LARGEST DAIRY EXPO IN AFRICA. |

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For more information please call +254 721266481,+254 755 649 557 or email secretariat@dairyafrica.com

SPONSORS

PARTNERS AFRICAN UNION

INTERAFRICAN BUREAU FOR ANIMAL RESOURCES

EUROPEAN UNION

EUROPEAN UNION

FOODTECH CONFERENCES & EXHIBITIONS

AFRICA HAPPENS AT AFMASS TM

Discover the latest Technologies, Market Trends & Innovations at Africa's fastest growing Food Industry Events DISCOVER • NETWORK • BE INSPIRED The food, beverage and milling manufacturing, retail and food-service industry is truly rising in Africa.

And with it, the complexity 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 FoodTech Conferences & Exhibitions bring together investors, managers and professionals; Government ministries, regulators and parastatals; suppliers, NGOs/development agencies, researchers and academicians to shape the future of the food value chain in Africa.

AFMASS FoodTech Conferences & Exhibitions have brought together speakers, delegates and visitors from over 90 countries who continue to define the agenda of change and innovation across the Continent.

At the Exhibition Hall, AFMASS FoodTech Conferences & Exhibitions have attracted 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 Africa's industry, its people and market trends at an AFMASS FoodTech Conference & Exhibition event near you.

WWW.AFMASS.COM

Africa’s Largest Food, Beverage & Milling Industry Conferences & Expos EDITIONS: KENYA • ZAMBIA • TANZANIA • RWANDA • ETHIOPIA • UGANDA • NIGERIA • GHANA

Africa’s MarketPlace for: Ingredients • Milling & Processing Equipment • Packaging • Food Safety & Laboratory • Engineering & Automation • Industry Services REGISTRATION OPEN.

FOR REGISTRATION & SPONSORSHIP • EXHIBITION OPPORTUNITIES,

CONTACT: INFO@FOODWORLDMEDIA.NET OR CALL: +254 725 34 39 32

WWW.AFMASS.COM

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CONTENTS ON THE COVER

PAWAL PATEL & NITIN MENON OF DAIRY BUSINESS AFRICA: Clean label in dairy SAYONA GROUP, TANZANIA Pawal & Nitin take us through 55 the journey of transformation as Sayona Group diversifies beyond the beverages sector in Tanzania and seeks regional growth prospects.

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

REGULARS 10 Editorial 14 Events Calendar 16 AFMASS FoodTech Southern Africa - Zambia Edition Preview 18 Food Business Africa News 29 Sustainability Business Africa News 46 New Products on the Shelf 62 Correct burner and boiler combination 64 How 5G Could Improve Food Traceability 66 Supplier News & Innovations

FOOD SAFETY: Listeria and drainage systems 56

MY FACTORY • MY STORY: Sayona Group, Tanzania 34

BEVERAGE TECH AFRICA: Hot filling technology 61

MY FACTORY • MY STORY: Fresh Cuts (U) Ltd, Uganda 40

NEXT ISSUE: OCTOBER 2019 MY FACTORY • MY STORY Capwell Industries Ltd | Kenafric Bakery | MB PLC

MILLING & BAKING: Baking: Fibre enrichment COUNTRY FOCUS: Food Industry in Zambia COMPANY FOCUS: Flour Mills of Nigeria FOOD SAFETY: ISO 22000:2018 PACKAGING: Stand-up pouches 10 AUGUST 2019 | FOOD BUSINESS AFRICA

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Food and drug safety challenges weigh heavily on consumer health in Africa, be they outbreaks of cholera, listeriosis, food and drugs poisoning or even Aflatoxins. Poor quality products also adversely affect local, regional and international trade in Africa. The Africa Food Safety & Quality Summit is the Continent's only annual forum that brings together the agriculture, food and pharma industry; Government ministries and agencies; HORECA and hospitals; NGOs and development organisations from Africa and the World to find solutions to Africa's food safety, quality, laboratory and conformity challenges.

REGULATORY & POLICY | QUALITY & LAB MANAGEMENT | COMPLIANCE & MANAGEMENT SYSTEMS | EMERGING TECHNOLOGIES

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Working with corvaglia gives bottlers the confidence to succeed in a complex field that looks so simple from outside

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EDITORIAL

Retailers must put food safety first; influence its adoption in the entire food supply chain

T

he recent meat scandal in Kenya, where some unnamed supermarkets were alleged to have used unapproved preservatives to extend the shelf life of meat products, came at the wrong time for the retail and food industry in Kenya and Africa.

The news came at a time consumers across Kenya had been grappling with rising cancer cases, and which have led to the deaths of many high profile people, catapulting cancer to one of the most talked about diseases in Kenya – despite the fact that cancer causes much less deaths in Africa than say, hunger or malaria. The food industry has been partly blamed for these cases, even as evidence to prove the industry’s culpability is still lacking.

Therefore, the food industry must be worried that retailers, which increasingly handle and cook food as the retail scene changes in Africa, have not demonstrated their understanding of and implementation of food safety protocols in their outlets.

Coming from an era when supermarkets used to deal mainly in dry, packaged food products, the supermarkets have undergone a major transformation into selling fruits and vegetables, baked goods, meat, poultry and fish and even gone further to establish hot kitchens where meals are cooked and prepared for sale to the public.

While this move is commendable, considering the consumers need for a one-stop-shop for all their shopping needs, most of the supermarkets have failed to conform to the requirements that come with cooking, preparing and selling fresh and ready-made food products to the public – which is a requirement for any established food processor or packer in the same market, including the establishment of safe, clean and conforming food handling and preparation rooms and having qualified people to manage these new activities. They have also failed to train and equip their employees in these key sections to understand the nature of the work involved and the risks that come with these new activities.

Surely, retailers must separate themselves from the road side butcheries and eateries that dot the landscape of Africa – where, proprietors think that by putting on a white dust coat, you have met all the requirements to qualify as a safe food business operator.

Contribute to a better food safety system The contribution of a formalized retail sector in Africa to the delivery of safe food products cannot be overemphasized.

In an increasingly urbanizing Africa, the growth of formal retail has been one of the most outstanding and revolutionary developments, as young populations with rising disposable incomes arrive into cities and towns across the continent by the millions every year. The need for a more formal retail trade continues to rise, as the demand for food also increases exponentially in Africa.

The entry of world famous retail chains like Shoprite and Carrefour, which have joined local, family-owned retail chains has opened a huge opportunity for food manufacturers to reach out with their packaged goods to the consuming public, as the retailers grow their foot print across the region.

It is our wish that the retail chains take their rightful place by leading the charge towards a better food safety system, which consumers can trust, by working closely with their suppliers of various products, including food products to ensure they meet local and international requirements, and that the retailers can also put in place the right processes, procedures and people that can ensure they cook, prepare and serve safe food products in their stores.

Further, we hope that the retailers can engage with the entire value chain players, from farmers, processors, government agencies and NGOs to build the capacity of small and medium enterprises that they source from various goods, to ensure that they meet food safety and other conformity requirements by training and guiding them – thereby acting as change agents that these retailers can truly be Have a good read.

Francis Juma Publisher

SUBSCRIPTION

Email: info@foodworldmedia.net

www.foodbusinessafrica.com Year 7 | Issue 4 | No.37 • ISSN 2307-3535

FOUNDER & PUBLISHER Francis Juma EDITORIAL Clement Muriuki I Ronald Onsare ADVERTISING & SUBSCRIPTION Jonah Sambai | Lavender Atieno | Hellen Mucheru CONTRIBUTORS Virginia Nyoro | Ronald Onsare | Stefano Pisanu DESIGN & LAYOUT Frank Bett

14 AUGUST 2019 | FOOD BUSINESS AFRICA

FoodWorld Media

P.O Box 1874-00621, Nairobi Kenya Tel: +254 20 8155022, +254 725 343932 Email: info@foodworldmedia.net Website: www.foodworldmedia.net RELATED PUBLICATION

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 2019. 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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POWERED BY

FOODEX AFRICA FOOD INDUSTRY EXCELLENCE AWARDS

GALA DINNER NOVEMBER 29, 2019 NAIROBI, KENYA SUBMIT ENTRIES BY

SEPTEMBER 30, 2019

SUBMIT YOUR LATEST NEW PRODUCTS, NEW PLANTS, ADVERTISING AND SUSTAINABILITY INITIATIVES. STAND A CHANCE OF WINNING THE MOST PRESTIGIOUS FOOD INDUSTRY AWARDS IN AFRICA! Send Sponsorship, entry and attendance queries to: TEL: +254 725 343 932; INFO@FOODWORLDMEDIA.NET

www.awards.foodbusinessafrica.com

CONFIRMED SPONSORS

2019 AWARDS CATEGORIES NEW PLANTS OF THE YEAR 1. Dairy 2. Milling, Cereals & Pulses 3. Animal Feed Plant of the Year 4. Alcoholic Beverage 5. Soft Beverage 6. Tea, Coffee & other Hot Beverages 7. Bakery & Snack 8. Frozen, Chilled & Fresh 9. Sugar & Confectionery 10. Culinary & Condiments 11. Food Safety Champion Plant of the Year 12. Plant Design Champion of the Year NEW PRODUCTS OF THE YEAR 1. Dairy 2. Milling, Cereals & Pulses 3. Bakery & Snack 4. Alcoholic Beverage 5. Soft Beverage 6. Tea, Coffee & Other Hot Beverages 7. Frozen, Chilled & Fresh 8. Sugar & Confectionery 9. Culinary & Condiments 10. New Product – Packaging Innovation 11. New Product - Ingredients Innovation 12. New Product - Nutrition Innovation ADVERTISING CAMPAIGN OF THE YEAR 1. Advertising Campaign 2. Digital/Social Media Advertising SUSTAINABLILITY INITIATIVE OF THE YEAR 1. Sustainable Energy Management 2. Sustainable Water Management 3. Sustainable Waste Management 4. Sustainable Community Initiative PACKAGING REDESIGN OF THE YEAR 1. Dairy Packaging Redesign of the Year 2. Beverage Packaging Redesign of the Year

EVENT

Aligning International Supply Chain Practices to the East African Market Networking Breakfast Forum 12TH SEPTEMBER 2019 7:00AM - 10:00AM CAPITAL CLUB WESTLANDS, NAIROBI, KENYA In the current challenging economic times, how do we as industry players, enhance supply chain processes and boost your company’s bottom line performance within East Africa?

All matters pertaining to supply chain remain critical to the success and profit margins of any business operating in East Africa; yet this remains a key challenge for practitioners and business owners to-date.

According to the World Bank’s Logistics Performance Survey in 2018, Kenya was ranked 63 globally, but 2nd on the African continent after South Africa (ranked 29). Despite great improvements and developments in Kenya’s economy, infrastructure, services and supply chain reliability; various industry players still continue to face great supply chain challenges.

This networking breakfast forum aims to provide an open space for senior level management in various sectors to discuss the current supply chain challenges and practices, while sharing knowledge on new supply chain innovations and techniques, being applied successfully in Kenya and the rest of East Africa.

JOIN US AS WE DISCUSS: •

The latest thinking in supply chain technology advancements.

•

Improving inventory shrinkage in your storage facility.

•

Reducing your Distribution Fleet Costs in the current economic climate.

•

Cold chain solutions within the East Africa context.

PANEL SPEAKERS Richard Hough CEO Africa Logistics Properties

Tim Steel CEO Copia (E-Commerce)

Tariq Arain Sub Regional Development Manager, East Africa Kuhne + Nagel (Logistics)

Joseph Kariuki Head of Transport Freight Forwarders Kenya (Logistics)

To reserve a seat, kindly contact us on info@africawarehouses.com or call us on +254714 954 103 In partnership with

UPGRADE YOUR SPACE. DOWNGRADE YOUR COSTS. Warehouse Units in Nairobi Available to Rent From 10,000 Square feet+

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EVENTS CALENDAR August 14-16, 2019

October 29-31, 2019

December 10-12, 2019

September 1-4, 2019

October 30 - November 1, 2019

December 3-5, 2019

September 4-7, 2019

November 3-6, 2019

January 28-30, 2020

September 11-13, 2019

November 11-14, 2019

February 2-5, 2020

September 24-27, 2019

November 13-16, 2019

February 16-20, 2020

October 3-5, 2019

November 25-26, 2019

March 3-5, 2020

October 5-9, 2019

November 27-29, 2019

March, 11-13, 2020

October 8-11, 2019

November 29, 2019

March 30 – April 1, 2020

October, 9-11, 2019

December 9-11, 2019

African Dairy Conference & Expo KICC, Nairobi, Kenya Focus: Dairy www.dairyafrica.com/afda SAAFoST Congress 2019 Johannesburg, South Africa Focus: Food science & technology www.saafost2019.org.za World Food Istanbul Istanbul, Turkey Focus: Food processing technologies www.worldfood-istanbul.com Fi (Food ingredients) Asia Bangkok, Thailand Focus: Food ingredients www.figlobal.com WorldFood Moscow Moscow, Russia Focus: Food & Drink www.world-food.ru

African Grain Trade Summit Mombasa, Kenya Focus: Grains www.graintradesummit.com Anuga Food Fair Cologne, Germany Focus: Food & Beverage www.anuga.com Process Expo Chicago, USA Focus: Food & Beverage technologies www.myprocessexpo.com AFMASS FoodTech Southern Africa Lusaka, Zambia Focus: Food, Beverage & Milling www.afmass.com

Gulfood Manufacturing Dubai, UAE Focus: Food & Beverage www.gulfoodmanufacturing.com China Fisheries & Sea FoodExpo China Focus: Seafood & Aquaculture www.chinaseafoodexpo.com IAOM Middle East & Africa Dubai, UAE Focus: Milling www.iaom-mea.com Foodex Saudi Saudi Arabia Focus: Food & Drink www.foodexsaudi.com

Vietnam FoodExpo Vietnam Focus: Food & Beverage www.foodexpo.vn

Food West Africa Lagos, Nigeria Focus: Food & Beverage www.foodwestafrica.com Drink Japan Japan Focus: Beverages www.drinkjapan.jp

Africa Food Industry Excellence Awards Nairobi, Kenya Focus: Awards ceremony www.awards.foodbusinessafrica.com

Agrofood West AFRICA Accra, Ghana Focus: Food & Agriculture www.agrofood-westafrica.com Fi Europe & Ni Paris, France Focus: Food & Beverage ingredients www.figlobal.com International Production & Processing Expo Atlanta, USA Focus: Meat, Poultry and Animal Feed www.ippe.org ISM Cologne Germany Focus: Confectionery & Snacks www.ism-cologne.com Gulfood Dubai, UAE Focus: Food & Beverage www.gulfood.com

Pack Expo East Philadelphia, USA Focus: Packaging technologies www.packexpoeast.com AFMASS FoodTech Eastern Africa edition Kampala, Uganda Focus: Food, Beverage & Milling www.afmass.com FoodEx UK Birmingham, UK Focus: Food & Beverage www.foodex.co.uk

Food Africa Cairo, Egypt Focus: food & Beverage www.foodafrica-expo.com

For event listings, contact us at info@foodworldmedia.net for consideration. Terms and conditions apply

UPCOMING AFMASS FOODTECH EVENTS IN AFRICA AFMASS FOODTECH ZAMBIA EDITION - OCTOBER 9-11, 2019

FOODTECH CONFERENCES & EXHIBITIONS

W W W. A F M A S S . C O M

AFRICA FOOD INDUSTRY EXCELLENCE AWARDS - NOV. 29, 2019 AFMASS FOODTECH UGANDA EDITION - MARCH 11-13, 2020 AFMASS FOODTECH TANZANIA EDITION - JUNE 11-12, 2020

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AFRICA FOOD SAFETY & QUALITY SUMMIT - JULY 15-17, 2020 AFMASS FOODTECH ETHIOPIA EDITION - NOVEMBER 12-13, 2020

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

800+ ATTENDEES

DUBAI WORLD TRADE CENTER

3-6 NOVEMBER

“I sincerely wish that this conference be pivotal for the prosperity and longevity of our industry and future generations.”

H.E. ESSA AL GHURAIR WELCOMES YOU TO

Join us for MEA’s largest and longest running Grain Commodities, Flour and Feed Milling Event!

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Special discounts exclusively for Millers!

10% off for 3 - 5 persons from the same company / group 15% off for 6 - 9 persons from the same company / group 20% off for 10 or more persons from the same company / group

Anniversary

C O N TA C T U S AT - E V E N T S . C O O R D I N AT O R @ I A O M - M E A . C O M

EVENTS PREVIEW

Event: AFMASS Southern Africa Zambia edition When: October 9-11, 2019 Where: Radisson Blu Hotel, Lusaka, Zambia Timings: 09.00 am to 06.00 pm daily

AFMASS FoodTech Southern Africa in Zambia makes a comeback in October, set to be bigger and better

T

he 2019 edition of AFMASS FoodTech Southern Africa edition is set to welcome the food and agro industry stakeholders from across the SADC region of Africa on October 9-11, 2019 with a program full of unique insights and opportunities in the region.

The trade event, which marks the second year in a row that the event is hosted in Zambia, will showcase the latest processing, packaging and food safety technologies, market trends and investments opportunities in the growing Southern African region.

With a new venue at the magnificent Radisson Blu Hotel in the middle of Lusaka, Zambia, the event features an improved conference program, a bigger Expo Hall and many more opportunities to network and trade with some of the region's key decision makers in the private sector, Government, NGOs and other stakeholders.

More than 1,000 delegates and visitors from across southern Africa and the World are expected to grace the event, as Lusaka hosts Southern Africa's largest food, beverage and milling industry event.

The organisers are looking forward to an improvement in attendance from across the region, from the more than the 700 delegates and visitors who graced the event in its inaugural edition , which was held last

20 AUGUST 2019 | FOOD BUSINESS AFRICA

year in October.

The 2018 event saw the participation of delegates from across the SADC region, including South Africa, Zambia, Zimbabwe, Botswana, Malawi, Namibia, Angola, DRC and Tanzania. The SADC economic block brings together 16 southern and central African countries.

"We look forward to hosting an improved AFMASS FoodTech Southern Africa 2019. We hope that this event will continue our tradition of delivering value for the key stakeholders that attend the events across Africa," says Francis Juma, the team leader at FoodWorld Media, the organisers of the event.

More sponsors, exhibitors and partners Continuing with the goal of bringing together the food manufacturing, retail and food service sectors of the industry together, this edition of AFMASS FoodTech Southern Africa has received impressive support from a number of sponsors, exhibitors and partners.

"We are excited with the preparations so far from across the industry, with hundreds of delegates already confirmed, while the list of sponsors, exhibitors and partners has increased substantially, with Tetra Pak, the leaders in processing and packaging technologies having confirmed their premium sponsorship of the event. The list

of exhibitors has also grown, providing the most diversified solutions at the Expo Hall to the event's visitors.

Hosting AFMASS FoodTech Southern Africa is made possible by the sponsors and exhibitors who come from the four corners of the World to showcase their technologies and innovations focused on the food manufacturing, retailing and foodservice industry in Zambia and sorrounding SADC countries, adds Juma.

Strong speaker and panelist profiles The 2019 edition of AFMASS FoodTech Southern Africa will highlight some of the opportunities, trends and challenges that the food, beverage and milling industry faces in Zambia and Southern Africa, on the back of growing economies and increasing local value additon in the SADC region.

A number of industry leaders, Government policy makers and other vital contributors to the growth of the food industry in Zambia and Southern Africa, consultants and suppliers have confirmed their participation as speakers and panelists at this year's event, to contribute to the growth of the food industry in the region.

You can sign up to attend this edition of the events at www.afmass.com.

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UPDATES PEOPLE

Uganda Breweries gets new Managing Director

UGANDA - Alvin Mbugua, a finance guru from Kenya, has rejoined Uganda Breweries Ltd (UBL) as Managing Director.

He took over July 1 from Ugandan Mark Ocitti Ongom who moves to Serengeti Breweries Limited in Tanzania, as Managing Director.

“I am humbled to be entrusted with the stewardship of Uganda Breweries by the Board of Directors. Having served here before as Finance and Strategy Director, I’m excited to come back to a place that became my other home. Looking to consolidating on Mark Ocitti’s gains and wins,” he said after the UBL board confirmed the change.

Mbugua has worked in 17 African countries in the course of the past 16 years.

He has been head of sales at East African Breweries (EABL) in Nairobi, and before that finance and strategy director of Uganda Breweries.

He was in 2017 crowned CFO of the Year by ACCA and Deloitte Uganda.

“Part of the beauty and power of being a leader is that you can move into different roles within an organisation; you can transform,” he said then.

Uganda Breweries Limited is Uganda’s leading adult beverage company. It is a subsidiary of East African Breweries Limited (EABL), the region’s leading beverage alcohol company in which Diageo is a majority shareholder.

22 AUGUST 2019 | FOOD BUSINESS AFRICA

M&A

Pernod Ricard to acquire majority stake in South Africa spirit maker Inverroche SOUTH AFRICA – Pernod Ricard South Africa, the Jameson whiskey and Absolut vodka producer, is set to acquire a majority stake in South African craft spirit brand Inverroche.

Based in the Cape Floral region, Inverroche is widely known for pioneering the use of fynbos in its gin, and it’s these indigenous, aromatic botanicals that give the brand’s gins their unique taste and full-bodied flavours. Inverroche portfolio includes Gin Classic, Gin Verdant, Gin Amber and a limited edition released annually in addition to two rums and three liqueurs.

As part of the transaction, Lorna Scott, the founder and chief executive of Inverroche Gins, will continue her stewardship of the South African liquor brand, as both a shareholder and CEO of Inverroche. “I am thrilled to partner with Pernod Ricard. The Group’s vast distribution network will enable Inverroche Gins to reach new consumers. We will be taking a luxury African brand to a large audience and sharing the story of our common heritage,” says Scott.

Inverroche notes in a statement that the deal is also significant for the local economy as it demonstrates a vote of confidence in South Africa’s economic prospects and also highlights the ability of local female entrepreneurs to create world-class luxury brands which are

made in Africa. As part of the company’s commitment to community development and sustainability, 70% of Inverroche employees are indigenous women from the local area.

“Inverroche Gins nicely complement our portfolio. We are excited to further contribute to their success in South Africa and to support their development throughout Sub-Saharan Africa,” said Paul-Robert Bouhier, the newly appointed MD of Pernod Ricard sub-Saharan Africa.

The acquisition increases Pernod Ricard’s presence in the dynamic subSaharan Africa spirits market and comes just months after the Group’s investment in Jumia, the leading e-commerce player in Africa.

DIVERSIFICATION

Restaurant chain Java House to launch vegan outlets in expansion plan

KENYA – Java House, East Africa’s leading restaurant chain has unveiled that it will be introducing exclusive vegetarian branches to diversify its fast food offerings as part of its US$10 million regional expansion plan.

Locally, the food service giant said it plans to grow the branch count of its less capital-intensive Express outlets over the next six months, which will see the launch of smaller outlets that will strictly serve vegetarian meals. The chain restaurant

opened its first Express outlet at the United States International UniversityAfrica main campus in November 2017. In February this year, Java opened its second outlet in Rwanda, after it launched the first coffee house in January 2017.

“We have a full expansion strategy for the next six months in Kenya, Uganda and Rwanda. In Kenya, this will see the further roll-out of the Kiosk and Express formats, which should include our first vegetarianonly Express,” said Java House chief executive officer, Paul Smith. The firm will also continue to revamp some of its stores and unveil all-under-one-roof branches that will house Planet Yoghurt, Java Express and a soon to be unveiled brand.

Java House also operates Italian Pizza chain 360 Degree Pizza and boasts to be the first ever East African self-service frozen yoghurt store, Planet Yogurt.

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UPDATES FOOD SECURITY

WFP partners Tanzanian varsity to develop local recipes of fortified food

TANZANIA – The World Food Programme (WFP) has teamed up with Sokoine University of Agriculture (SUA) experts in Tanzania to develop local recipes for fortified foods and micronutrient powders.

The recipes will to be used in projects to support food security and nutrition efforts in the country as well as reduce operating costs associated with imports. WFP Tanzania Country Representative, Michael Dunford, said that the move was an element of development research to evaluate the feasibility of having specialised nutritious food and micronutrients powders locally supplied.

“We are working with SUA to see if we can come up with a recipe for fortified food that is locally sourced and affordable,” Dunford said in an interview with the Daily News. He said the research development work with SUA builds on the success of their Boresha Lishe program that began last year in Dodoma and Singida regions to improve food security and nutrition.

The project seeks to improve access to and use of nutritious food by women and children through social behaviour change, communication and through the diversification of food production.

The WFP country chief said initial assessment showed positive changes in the communities where they were working with in the two regions with respect to improvements in dietary behaviour, food and nutrition intake of the target groups.

Under the Boresha Lishe project, WFP provides specialised nutritious foods to meet energy needs as well as supporting women to start up home gardens and poultry projects to enhance household food and nutrition security. Dunford said they were also assisting the government in developing the capacity of its disaster management and social protection systems to reliably address the basic food and nutrition needs of the poorest and most vulnerable populations throughout the year.

24 AUGUST 2019 | FOOD BUSINESS AFRICA

INVESTMENTS

Zambian fish firm Yalelo enters Uganda, plans to double Zambia feed plant to 50,000 MT Company plans to double production of fish feed at its Zambia plant with Aller Aqua to 100,000 MT

UGANDA - Zambian tilapia farming business Yalelo's owner, FirstWave Group, is starting operations in Uganda, Group CEO Adam Taylor reports Undercurrent News, as the company plans to double its fish feed plant it co-owns with Aller Aqua to 100,000 tonnes per year.

While Yalelo Zambia is based on Lake Kariba – and is planning to more than double production to 25,000 tonnes after securing a development loan earlier this year – the Ugandan business will farm on Lake Victoria. It will emulate the same fully integrated model which FirstWave implemented in Zambia comprising a hatchery, production, processing, distribution, and a chain of retail shops, said Taylor.

“This is a great opportunity to start with a blank canvas, building with scale in mind from day one," he said. The initial production target will be 10,000 metric tons of tilapia per year, however the site, most buildings, and infrastructure will be designed to allow for an increase to 50,000 tonnes, subject to regulatory approval, he said. Groundbreaking on the new operation took place late in June, with an increasing number of full-time staff in place.

“We will be actively hiring in Uganda for the foreseeable future,” said Taylor.

“Yalelo Uganda has the added support of specialist staff from our head office in Johannesburg and an initial training program in cooperation with Yalelo Zambia, for example, short-term training

secondments of specialist staff. We'll start relatively slowly for the first few months – producing 100-200 tonnes per month while the new operations settle – then we'll look to grow quickly,” said Taylor.

The operation will maintain the Yalelo brand at retail, he said. “It's a word with broad regional roots, meaning 'of today', so it is comfortable in most of the traditional languages in southern and eastern Africa, even where it doesn’t have a direct translation,” he explained.

Yalelo plans to expand its offering beyond the chain of retail shops it owns and operates, to a processed product range in supermarkets, and increased regional distribution African nations beyond Zambia.

Together with its joint venture with Danish aquafeed producer Aller Aqua, in Zambia, the pair plan to have a second 50,000t tonnes feed line running in Zambia by November 2020, to supply the production growth of Yalelo both in Zambia and Uganda, along with most of the region’s other major farms and a growing number of smallholders, Taylor told Undercurrent News.

“We designed the factory building from day-one to accommodate a second line.

Every project in central Africa needs to be approached with detailed planning and contingencies, but overall the second line should be relatively straightforward given the work done during the first line." The second line will double capacity to 100,000 metric tonnes of feed per year.

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TRAINING

African Milling School hosts a Baking Technology – Grain & Flour Analytics course in Kenya Twenty participants from Kenya, Ethiopia, Zimbabwe and Uganda understood the correlation between consistent flour quality and best bread performance.

KENYA - The Nairobi-based African Milling School (AMS) recently facilitated trainings in modern milling methods and held the ‘Baking Technology - Grain & Flour Analytics’ training course at its premises, which had a working title of “Consistent Flour – Best Bread Performance.”

AMS has become the know-how center for both grain millers and bakers to adopt modern production processes for quality flour and bread, said Martin Schlauri, the Principal and teacher at the AMS. Demand for quality bread is on the rise in Africa driven largely by increasing levels of urbanization, rising incomes and growing populations with consumers becoming more conscious of their health and the benefits of eating healthy foods. Flour millers and manufacturers of bread are taking up the challenge of ensuring not only adequate and consistent supply of flour and bread but also that the products are of the highest quality at every level of production, noted Schlauri.

During the May 6-11, 2019 training, participants who included master bakers, quality assurance managers and head millers, took advantage of the school’s classrooms, fully equipped laboratory and school mill to learn the vital link between consistent flour quality and best bread performance.

“The course focused on how quality parameters of bread applications get influenced by the flour which in turn is influenced 26 AUGUST 2019 | FOOD BUSINESS AFRICA

by the raw material as well as the milling process,” said Schlauri.

He explained that the course, which is part of the AMS’ yearly scheduled trainings, aimed to pass knowledge to professionals on grain and flour analytics and dough testing practices. “Furthermore, understanding the baking process and technology as well as the correct interpretation of the results were the main targets of the training,” he added.

During the training, participants had an opportunity to practically test the procedures undertaken during baking such as dough rheology with the use of a Farinograph, which is an important tool in ascertaining the specific flour qualities such as the development time, stability and viscosity of a mixture of flour and water.

Nairobi-based Buhler’s Flour Service manager Ashford Ngatuni engaged the trainees in a hands-on exercise on direct dough processing while Stefanie Hardtmann, Master Baker at Buhler’s Bakery Innovation Center in Switzerland took the participants through bread making and evaluation procedures.

“The AMS baking technology course is based on the reality that grains in Africa make up a large proportion of the food eaten in the continent and bread, as one of the product of flour from wheat, depends on the quality of the grain itself. The bread making process and the final quality correlates with the raw material properties,” FOODBUSINESSAFRICA.COM

said Schlauri.

Participants also went through basic baking processes such as preparation of ingredients, mixing process, dough resting/bulk proofing, dough scaling & moulding, final proofing, baking process and achieving final baked product. “We also used the training to get participants know the standardized bread production and understand the properties of grain and flour which influence the quality of bread,” said Schlauri. More importantly, the AMS principal said, the participants obtained expertise on analyzing methods of grain, milling intermediate products and flour. They were also empowered to identify the correlation between flour analysis and baking quality in addition to interpreting the measured analyzing values.

Bread quality starts with the wheat It emerged during the training that some flour millers may not have the required grains for milling flour for bread baking and hence would require the use of organic additives such as vitamin C and enzymes, hence the participants had a chance to learn more about flour improvers and the specific function in the bread making process.

According to Schlauri, achieving high level of quality in the process chain of grain to bread requires optimization of four quality analysis that involves raw materials and their characteristics as well as the technique of ensuring maximum performance during bread making procedures.

In the first phase of grain to bread quality analysis millers have to undertake the wheat analysis on moisture, impurity and density (hectoliter weight). The second phase involves the analysis of functional properties in the flour as amylase activity for gas production as well as gluten quantity and quality for gas retention. Rheological property of dough such as water absorption, development time, stability, degree of softening is analyzed in the third phase of grain to bread quality analysis; and finally, bakers have to carry out a baking test based on a standard method.

“The analysis of grain to bread requires close working relationship between millers and bakers so that they understand each other’s task in ensuring quality of the final product,” said Schlauri. He said, a working partnership between millers and bakers has been made even more necessary because of the different levels of technological development in the two inter-related industries.

Some of the emerging issues in the business of flour milling and baking processes include the role that efficient communication plays in ensuring millers and bakers understand each other’s specific requirements so as to optimize their production procedures.

According to Schlauri millers have to grapple with getting the right raw material, specifically wheat, in right quantities and consistency to enable bread makers maximize their operations. “For both millers and bakers, the kind of technology deployed will greatly influence the quality of flour milled and subsequently the quality of bread produced,” he added.

Bread engrained in culture “Grains make up a large portion of the food eaten in Africa such as wheat, rice, sorghum and millet,” said Schlauri. “Africans have unique types of breads and pastries that are baked, steamed, cooked on a griddle or deep fried and which differ from the ones eaten in other parts of the world,” he explained. Africa’s bread has historical influences from Europe and India with some of the most common types in the market today being sandwich bread, brown bread, chapatti and mandazi.

During the training, the participants gained useful theoretical and practical skills to enable them make the best out of raw materials and processing plants. They were also awarded certificate of attendance as a reminder of the need for continuous learning in carrying out sustainable grain to bread quality analysis, required for boosting not only the millers and bakers bottom lines but also a healthy Africa.

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INVESTMENTS

Tongaat Hulett to invest US$300m in capacity expansion in Zimbabwe ZIMBABWE – South Africa based sugar producer, Tongaat Hulett, will be investing US$300 million in a project that seeks to expand its processing capacity in Zimbabwe.

The investment targets to increase the company’s sugar production capacity by 50,000 tonnes and lift its export earnings by US$18 million while creating 2,000 direct and indirect jobs within the next two years.

Under the project, Tongaat will invest in turning a total of 4,000 hectares of virgin land into cane fields, whose works commenced in April this year. Dubbed the Kilimanjaro Project, the project is due for completion in September 2020 upon which the developed cane fields will be handed over to Government for allocation to indigenous out growers as part of a drive to empower locals.

M&A

Olam revises Dangote Flour Mills deal value NIGERIA – Olam International Limited, the multinational food and agribusiness company, has tabled a fresh US$331 million (N120bn) offer to take over Dangote Flour Mills (DFM) Plc, down from the US$361 million it had initially announced.

Dangote Flour Mills, Nigeria’s leading wheat milling company, had in April this year received a binding offer from Olam to acquire all outstanding and issued shares not currently owned by it through its subsidiary, Crown Flour Mills Limited.

By then, the board of Dangote Flour said that it was considering the US$361 million offer for the entire five billion issued shares of the company- which represented the enterprise value on a debt-free, cashfree basis and payable in cash at the closing of the proposed transaction Olam’s fresh US$331 million consideration represents N24 only per ordinary share following the adjustments made. The deal is be subject to shareholders’ approval, regulatory approval, as well as a sanction from a Federal High Court.

Dangote Flour said its board would review the offer in the best interest of its shareholders, adding that the board would keep both the capital markets and the public updated on tangible development, in line with applicable regulatory requirement.

28 AUGUST 2019 | FOOD BUSINESS AFRICA

INVESTMENTS

South Africa’s Libstar launches par-baking facility to expand convenience foods SOUTH AFRICA – South Africa’s leading packaged goods company, Libstar has launched an additional par-baking facility at its bakery division, Amaro Foods, to expand production capacity.

The company said that the new stateof-the-art facility located in Epping, Cape Town, aligns it with global market trends where artisanal baking products are part of the daily food culture and further strengthens its competitiveness. It said that the facility will also enable it to meet key client requirements as well as adapt to the changing consumer trends. The artisanal bakery facility will produce a range of partially baked goods which are shipped to Woolworths stores around the country to complete the baking process.

Tony Amaro, Chief Executive of Amaro Foods, says, “It is important to predict and quickly adapt to consumer trends, as well as utilise opportunities for new product development. Consumers looking for artisanal products will now be able to find these in their regular shops and some fast food outlets.”

The par-bake facility, one of 42 manufacturing plants owned by Libstar, also taps into the global demand for healthier

food alternatives by allowing for use of fewer ingredients, which is a healthier alternative to mass produced products. With the new facility, the company seeks to tap into the projected growth in the convenience food industry in the country.

Par-bake is an economical way of offering freshly baked goods without the need for full in-house baking facilities with the technique involving partially baking dough and then rapidly cooling it.

Established in 2005, Libstar has grown into a leading producer and marketer of quality products to South African and global markets and currently prides of a significant portfolio of more than 9,000 products.

INVESTMENTS

Shoprite invests US$1.3m in Botswana’s first distribution center BOTSWANA – South Africa based Shoprite Holding Limited, has opened its first distribution centre in Botswana after investing about US$1.31 million (P14 million) in the facility.

Located in Taung, Gaborone, the 3,700 square metre state-of-the-art facility has the capacity to handle storage across multiple temperature disciplines, contains tropical ripening rooms as well as offering value-added packing facilities.

According to the company, most of the space, about 2,700 square metres, will be occupied by Freshmark, Shoprite Group’s fruit and vegetable procurement, buying and distribution arm. The specialist facility contains multi-temperature cold rooms to store the full range of fruit & vegetables at the best temperature for maximum freshness and shelf life.

Speaking at the official opening of the centre, Minister of Investment, Trade and Industry, Bogolo Kenewendo said she believed that the facility would improve

Shoprite’s operations in Botswana and promote local products. Shoprite Checkers General Manager, Clint Jackson indicated that the investment will strengthen Shoprite’s ambitions of promoting the development of small and medium enterprises in Botswana. The retail chain has committed to contract farming, sourcing locally and further ensure that the designing and the packaging of the ‘Made in Botswana’ packages would also be made locally.

Shoprite opened its first store in Botswana in 1998 and now operates 14 supermarkets in the country. Recently, the retail giant said its outlook could improve after its worst first-half performance in more than a decade, hit by supply problems in South Africa and currency devaluation in Angola. Total group sales across Shoprite’s more than 2,800 outlets in Africa rose just 0.2% in July-December to US$5.5 billion (R75.8 billion), while like-for-like sales declined by 2.7% from a year earlier.

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REGULATORY & POLICY

Uganda to introduce new regulations for coffee farming to boost quality and output

Going digital?

UGANDA – The government of Uganda through the Uganda Coffee Development Authority plans to introduce a new law to regulate coffee farming in a move to boost product quality and output.

The new National Coffee Bill, that is currently under consideration by law makers, will widen governance to issues related to planting materials, harvest and post-harvest handling, research and climate change. It seeks to streamline the coffee industry by replacing a 1994 law that only covers post-farm activities such as marketing and processing. The National Coffee Bill 2018 was first tabled before the parliament in April 2019.

It seeks to reform the law to provide for Uganda Coffee Development Authority to regulate, promote and oversee the coffee sub-sector and to regulate all on-the-farm and off-farm activities along the coffee value chain. The bill also provides for setting up a national coffee institute which will have the mandate to do research on coffee and also engage other research services in case of any comparative advantage and competence. However, the new regulations have ignited an uproar from farmers and other key stakeholders in the sector saying they are unfriendly to small scale farmers and only benefit large scale coffee farmers.

Agriculture Minister, Vincent Ssempijja, has defended the Bill saying registration and licensing of coffee farmers is aimed at linking Ugandan coffee producers to the international market and boost production. Uganda is Africa’s second-biggest coffee grower after Ethiopia and the continent’s leading coffee exporter. The country which largely produces the Robusta variety forecasts production at 5.6 million bags in the 12 months to end-September, and projects output climbing to 20 million bags in 2025.

INVESTMENTS

Belayab Group acquires Ethiopia’s retail chain Bambis Supermarkets ETHIOPIA – Belayab Group, the parent company of Belayab Foods and Franchise, has acquired one of Ethiopia’s leading retail stores Bambis supermarket, for an undisclosed amount.

Belayab Group is a conglomerate with a diversified business portfolio ranging from hospitality, electric cables supply and food processing in addition to car assembly. The group, which is also the franchisee of Pizza Hut in Ethiopia, seeks to revitalise operation of the retail chain which has been struggling to maintain the business.

Bambis was founded by a Greek entrepreneur, Charalambos N Tsimas, about 68 years ago and has had lingering issues with the Ethiopian Food, Medicine and Heath Care Authority. The retailer had unveiled plans of closing down its operations in April last year with the founder citing foreign exchange squeeze coupled with administrative bottlenecks.

As part of the transaction, the brand name of the retail chain will remain unchanged with plans to undertake extensive renovation.

With nearly 7 decades of presence in the country, Bambis had grown into a reputable brand within Ethiopia’s capital in a country where retailing remains underdeveloped with store-based retailing being dominated by informal and traditional operators.

Despite a forecast that the country has a potential for 15 to 20 new modern supermarkets and 5 to 10 new shopping centers in Addis Ababa, the presence of chains and international brands still remains weak. According to a recent report by the Boston Consulting Group, in Addis Ababa, modern retail is in its early stages of development when compared to other sub-Saharan African countries.

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29

COMMODITIES

INVESTMENTS

Tanzania to record bumper Agricultural trader ETG secures US$128m facility to harvest with grain output boost operations projected at 16.4m tonnes

TANZANIA – A preliminary food assessment report issued by the government of Tanzania indicates that the country is set to record a bumper harvest in the 2018/19 season, placing the total grain output at 16.4 million tonnes.

Speaking in Dar es Salaam, Minister for Agriculture Japhet Hasunga outlined that the total harvest will consist of cereal crops recording 9 million tonnes and 7.4 million tonnes for non-cereals. However, compared to the 2017/18 season, food crop production will have decreased by 483,665 tonnes wherein cereals, especially maize, has decreased by 455,642 tonnes and rice by 210,454 tonnes. The assessment shows noncereal production will increase by 46,283 tonnes.

The evaluation showed that food availability was expected to be at surplus level in 11 regions with the rate of 128227%, while seven regions were expected to be self-sufficient with the rate of 109-119%.

According to the Minister, the government is set to strengthen food security to enable it offer food relief, whenever needed as well as evaluate the food status and nutrition as early as possible in all district and municipal councils.

“The regions expected to experience food shortage with the rate of 98-99% include Dodoma, Mara, Mwanza, Arusha, Tabora, Shinyanga, Dar es Salaam and Kilimanjaro.

The reasons behind food shortage in some regions include delayed rainfall, destructive insects, mostly fall armyworms and animals,” he explained. “The National Food Reserve Agency (NFRA) as well as Cereals and other Produce Board of Tanzania (CPB) are on preparations to start buying food crops from the regions with surplus production.”

30 AUGUST 2019 | FOOD BUSINESS AFRICA

KENYA – The Export Trading Group (ETG), a Kenya-based agricultural commodities trader, is set to receive US$128 million funding from financial institutions to finance its operations.

Led by the United Bank of Africa (UBA) and other local, regional and global banks, the credit facility will be utilised to improve the company’s grain exports as well as fertiliser imports. In a statement, ETG’s Chief Treasury Officer Anish Jain says the revolving 12-month facility will serve as working capital aimed at increasing its ability to source and deliver quality farm inputs across the continent.

“This facility enhances ETG’s contribution to sustainable employment, generation of foreign exchange for the economy, ensures income security for local farmers, and assists ETG’s goal to sustain global food security,” Jain said.

ETG buys and sells a wide range of commodities, including maize, pulses and fertilizer and has operations in 40 countries where it buys, stores, processes and/or manufactures various products. In 2017, Export Trading Group purchased and distributed nearly 6.6 million tons of

staples in its main operating markets. It is also actively present in North America, India, China and South East Asia.

The International Finance Corporation (IFC), an international financial institution, has also committed to inject US$40 million in funding to the company to support the agri-commodity trader’s export of cash crops and food grains, storage, and import of fertiliser in sub-Saharan Africa.

INVESTMENTS

Walmart to expand fresh food business with more stores in India

INDIA – Walmart India plans to open collection and distribution centers in North India and revamp its supply chain with an aim to bolster its global fresh food business.

The US-based retail giant is turning its focus on the food division, which accounts for 60% of its overall business in the country.

The company has resolved to improve direct sourcing as it currently sources fruits and vegetables mainly from mandis.

“Currently, our major focus is on hardy vegetables such as potatoes, onions, garlic and on some other vegetables with slightly longer shelf life compared to greens,” said Krish Iyer, president & CEO of Walmart

India. “This is because in this category, we can have a supply chain advantage rather than just source from mandis. The major focus is on building a supply chain for vegetables. The centres that we plan to open in North India to enable us to directly source from farmers will be outsourced, as it’s a pilot project that will help us understand the whole game plan.”

This will be supported by Walmart Foundation’s commitment to invest Rs 180 crore (US$26.25 million) in farming to improve productivity and farmer livelihoods. The company last year said it was planning to grow its direct sourcing from farmers to 25% of produce sold in its Best Price cash and carry stores over a fiveyear period.

The funding targets to farmer organisations in developing knowledge of sustainable farming practices, share business best practices, add value to primary agricultural commodities and improve access to finance and markets. The company has also accelerated expansion of its stores as part of its expansion plan in India.

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M&A

PepsiCo acquire South Africa’s Pioneer Foods for US$1.7bn with focus on Africa

SOUTH AFRICA – PepsiCo has agreed to acquire all the outstanding shares of South African food and beverage company Pioneer Foods Group for approximately US$1.7 billion.

The deal, which will be PepsiCo’s biggest outside of the US market to date, forms part of the New York-based food and beverages giant plan to expand into the African market. PepsiCo said Pioneer’s robust, locally relevant product portfolio complements its strong market presence in cereals, juices, and other African nutritional food staples.

Pioneer mainly operates in South Africa with a portfolio of food brands including Weet-Bix cereal, Sasko flour, Safari snacks and drinks brands such as Ceres and Liqui Fruit juices. It also has operations in a number of African countries, including Kenya (Weetabix East Africa), Nigeria and Botswana and Namibia through its Bokomo business. It also has international operations, including in the UK, where its range of products includes granola brand Lizi's and children's snack brand Fruit

Bowl.

Pioneer Foods International has recently expanded its footprint in the bustling Nigerian market through the acquisition of a majority stake in Food Concepts Pioneer, a leading baked goods company. With its primary focus on bread, the company owns the well-established Butterfield brand, distributed in key markets in the country from its bakeries in Lagos, Abuja and Ibadan. The company has recently also expanded into the active sausage rolls category with the launch of Yum Yum. Future growth opportunities exist through Food Concepts Pioneer to expand the existing Pioneer Foods product basket into Nigeria.

This established breakfast cereal manufacturer in the UK is 100% owned by Pioneer Foods. Bokomo Foods UK focuses on the manufacturing of breakfast cereals, such as wheat biscuits, granola and muesli and is primarily under private label for most of the leading UK retailers. With state-ofthe-art production facilities (including one of only two wheat biscuit factories in the UK) and a strong product development capability, the company is well positioned to meet ever-changing consumer demands in the breakfast cereals category. Bokomo Foods UK is also expanding its focus to strategic partnerships with other brand owners, as well as market opportunities in Europe and beyond.

"As we look to accelerate our growth in key markets around the world and achieve our vision to be the global leader in

convenient foods and beverages by winning with purpose, we are absolutely thrilled to join forces with Pioneer Foods, one of South Africa's leading food and beverage companies," said PepsiCo Chairman and CEO, Ramon Laguarta.

"Pioneer Foods represents a differentiated opportunity for PepsiCo and allows us to immediately scale our business in Africa.”

As part of the transaction, PepsiCo will create a new operating sector for SubSaharan Africa (SSA) which will be led by Eugene Willemsen, formerly Executive Vice President of Global Categories & Franchise Management. Willemsen, who has been with PepsiCo for nearly 25 years, previously led the company's businesses in Turkey and South East Europe.

The company says with the deal, PepsiCo targets to expand its Sustainable Farming Program in Africa and work with local farmers including women and rural smallholders.

"Today's announcement marks a very exciting milestone for Pioneer Foods and our people, and highlights the strength of what we have created," said Tertius Carstens, CEO of Pioneer Foods. "As part of PepsiCo, we will have greater scale to expand our leading brands, greater capital to invest in local agriculture and people, greater access to leading global capabilities and a partner committed to taking our company to even greater heights."

REGULATORY & POLICY

FSSAI calls for colour-coded labels for high fat, sugar foods INDIA – The Food Safety and Standards Authority of India (FSSAI) has drafted several proposals in new labelling regulations, mandating manufacturers to include red-color coding on labels of food containing high-fat, high-sugar and highsalt content levels.

This requirement would be implemented in phased manner for a period of three years and aims to help consumers make healthier food choices. The new regulations also target to bring to light composition of food products with a goal to ensure that citizens have access to and eat healthy food.

“To make the national labelling regulations more robust and effective, FSSAI is in the process of comprehensive revision of Food Safety and Standards (Packaging and Labelling) Regulations, 2011 with the objective of having three FOODBUSINESSAFRICA.COM

different regulations dealing separately to packaging, labelling and Advertisement & claims requirements,” said FSSAI. “In this series, two regulations namely “FSS (Packaging) Regulations and FSS (Advertising and Claims) Regulations have been finalised and notified in the year 2018.”

According to the proposed draft regulations, packaged food companies will need to declare nutritional information such as calories (energy), saturated fat, trans-fat, added sugar and sodium per serve on the front of the pack. The food labels will also declare, per serving percentage contribution to RDA (recommended dietary allowance) on the front of the pack.

Food Safety and Standards (Packaging and Labelling) Regulations, 2011 only required food and beverage processors to include manufacturing and expiry dates

at two different places over the pack, something FSSAI says became difficult for consumer to see both at a glance. The new regulations propose that date marking must be at one place to make it easier for consumers to read. The new regulations provide requirement for labelling of food allergen as a way to reduce risk of exposure and prevent anaphylaxis for individuals with food allergies. It also allows use of standardized precautionary and safety symbols.

Other key features of the regulations include mandatory labeling information like logo of veg, non-veg food for the prepared food; nutritional information in the form of Barcode/Global Trade Identification Number (GTIN); an [X] symbol for food package materials not meant for human consumption.

AUGUST 2019 | FOOD BUSINESS AFRICA

31

PEOPLE

FAO elects China’s Qu Dongyu as new General Director

ITALY – The Food and Agriculture Organization of the United Nations (FAO) has elected Qu Dongyu of China as director-general of the international organisation.

Qu becomes the first Chinese national to run the 74-year-old agency which aims to eliminate global hunger by tackling devastating impacts of climate change.

He will take on his role effective 1 August 2019 until 31 July 2023, becoming the ninth director-general since the agency was founded in 1945. He succeeds Jose Graziano da Silva, the architect of Brazil’s landmark Zero Hunger programme.

Qu Dongyu who was China’s deputy agriculture minister. In his role as deputy minister, Qu is hailed to have focused on innovation research, raising rural income, reducing poverty through science and technology, and building a quality assessment system for agro-produce.

According to the official presentation, Qu said he will focus on hunger and poverty eradication, tropical agriculture, drought land farming, digital rural development and better land design through transformation of agricultural production.

Before joining China’s agriculture ministry, Qu worked at the Chinese Academy of Agricultural Sciences where he focused on conducting research and innovation in the agricultural sector. From 2008 to 2015, he worked in the government of the Ningxia Hui Autonomous Region, where he applied new approaches to agricultural publications and rural tourism and provided startup micro-lending to young and female farmers. He has also been in charge of China’s agri-business cooperation with Asian, African and Latin American countries and China’s main trading partners of produce.

32 AUGUST 2019 | FOOD BUSINESS AFRICA

INNOVATIONS

Nestle develops first 70% dark chocolate with no added sugar JAPAN – Nestle Japan has launched a new 70% dark chocolate made entirely from cocoa fruit using cacao beans and white pulp from the cocoa seed, without adding any refined sugar.

The new chocolate confectionery, which is said to deliver natural sweetness and subtle acidity, is set to debut in Japan later in the year through its KitKat Chocolatory. Other product launches and sales are expected to kick off in other countries starting next year through its popular brands.

The new range was created based on a natural approach, which allows extraction of the pulp used in chocolate without compromising on taste, texture and quality.

“We’re proud to bring chocolate lovers a new chocolate made entirely from the cocoa fruit without adding refined sugar,” said Patrice Bula, Head of Strategic Business Units, Marketing and Sales at Nestlé. “This is a real innovation which uses the natural sweetness of the cocoa pulp to provide a pure, novel chocolate experience.”

This is the first time Nestle has created

a chocolate product without adding refined sugar to deliver a quality product using only one ingredient, the cocoa fruit. Through the new innovation approach, Nestle uses the pulp from cocoa beans, usually soft, sweet and white in colour as an ingredient to naturally sweeten chocolate. The company is applying patent for the viscosity adjustment and control of chocolate in the process of drying and pulverizing cacao pulp and adding it to chocolate instead of sugar.

RETAIL

Sainsbury’s to launch UK’s first no and low alcohol pub

UK – UK’s leading supermarket, Sainsbury’s is set to launch industry’s first pub that will only serve non-alcoholic and low alcohol drinks for consumers who want to enjoy these categories.

Taking a model similar to traditional pubs, the facility will provide no alcohol or low alternatives to wines, beers and spirits with up to 0.5% ABV. The new pub, referred to as ‘The Clean Vic’, will serve a wide range of beers, wines and mocktails and will have bartenders and pints at the new pub, just like a traditional pub.

According to the retailer, customers will have a chance to try a new non-alcoholic dark distillate, Celtic Soul, which offers a refined and sophisticated drinks experience

that takes the appeal of whisky. The new range will be on offer alongside over 20 types of drinks available at Sainsbury’s, including a range of beers such as Lucky Saint, mocktails such as an Everleaf, a nonalcoholic aperitif spritz and a collection of wines.

The Clean Vic No & Low Alcohol pub will also be offering immersive masterclasses for punters looking for some inspiration on how to cut down on their alcohol intake.

“We’re seeing a really exciting spike in the no and low alcohol category at Sainsbury’s which has been growing since 2001,” said Anne Cooper, Buyer at Sainsbury’s. “So, our specially curated workshops in the Clean Vic will help customers learn more about these drinks, providing key tasting notes given by the experts.”

According to Sainsbury’s sales of no and low alcoholic products in the last twelve weeks have increased by 31.8% while number of customers searching for non-alcoholic products online has risen 33%. According to a recent Innova Market Insights survey carried out in US, UK, France, Germany, China and Brazil, one in four consumers have cut down on their alcohol consumption in recent years.

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Sustainability

BUSINESS AFRICA

TRENDS IN RENEWABLE ENERGY • WATER • WASTE • AIR • MANUFACTURING • MOBILITY • INFRASTRUCTURE • COMMUNITIES • RESOURCES • POLICY & REGULATION

INNOVATIONS

DSM files for EU authorization for new methane-reducing feed additive

EUROPE – Royal DSM has announced that

it has started filing for EU authorization for a new feed additive for dairy cows that will reduce methane emissions by around 30%.

The new product will help dairy farms reduce their carbon footprint in producing milk by checking the amount of methane, a potent greenhouse gas emitted into

the environment. The feed additive was developed as part of DSM’s commitment to delivering science-based, sustainable and scalable solutions in response to the world challenges including climate change.

“We’re excited to start registration in Europe.This is an important milestone,” said Mark van Nieuwland, program director at DSM. “Our science-based solution has the potential to be a real game-changer in the global effort to reduce the climate impact of the foods we know and love. Because of its global warming potency, mitigating methane emissions will be a powerful lever for the dairy sector to take action on the climate emergency.”

According to DSM, a quarter teaspoon of the feed additive per cow per day suppresses the enzyme that triggers

methane production in a cow’s stomach.

Upon feeding, the additive takes effect immediately and methane is broken down into compounds already naturally present in the cow’s stomach.

The feed additive was developed through DSM’s Project Clean Cow program started in 2007, as part of a bigger initiative to help farmers reduce their greenhouse gas emissions by cutting herd’s burped methane by 30%. Following authorization from the EU, DSM expects to launch the product in Europe by early 2021.

Methane is a natural byproduct of digestion in cows and other ruminants, the majority of which is released into the atmosphere through burping and breathing and responsible for more than half of the cow’s carbon footprint.

INVESTMENTS

Namibia’s Tunacor Group invests in new solar powered fish processing facility NAMIBIA – The Tunacor Group, Nambia’s largest fishing company is investing in a new solar powered horse mackerel processing facility in Walvis Bay. The 4,000 square metre facility will be fitted with solar panels to provide clean energy and eco-friendly electricity for onshore fish-processing activities, the company said at the ground-breaking ceremony. The new processing plant will be the country’s first fishing factory to operate on solar energy, producing value-added horse mackerel products while employing up to 250 workers.

According to Fisheries Minister Bernhard Esau, the country targets to increase onshore value addition of fish to at least 250,000 metric tonnes, making about 70% of Namibia’s total 350,000 metric tonnes horse mackerel total allowable catch, by 2022. The investment also comes at a time when the firm took delivery of the country’s first ever purpose-built fishing vessel, named the Oshiveli.

Namibia has one of the most productive fishing grounds in the world, producing 20 different species such as pilchard, anchovy, horse mackerel, lobster, demersal hake

among others. According to the Namibian Fisheries Directory, the fisheries sector generated approximately N$10 billion in export revenue during the 2015/2016 season, a massive 43% increase from the previous year.

The country’s major export destinations of fish are South Africa, Zambia, the Democratic Republic of the Congo, Mozambique, Zimbabwe as well as Spain, Italy, Portugal. f water to produce 1 litre of product in 2015 to 1.59 litres in 2018.

SUSTAINABILITY TARGETS

Fonterra targets 100% recyclable and reusable packaging by 2025 NEW ZEALAND – The New Zealand milk corporative, Fonterra

has pledged to make all its packaging recyclable, reusable or compostable by 2025 in a global commitment to reduce its carbon footprint.

The company has also announced a target to cut the amount of solid waste going into landfills to zero by the same year. The company says it has already put measures in place to reduce its impact on the environment, including recycling its biological waste, such as leftover milk, into calf feed or pig feed. The dairy co-op said it had entered into a partnership with Future Posts, which recycles Anchor milk bottles into fence posts that can last up to 50 years.

“Around 90% of our products sold in New Zealand already recyclable, which is great progress,” said Carolyn Mortland,

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Fonterra director of sustainability. “But this new packaging target stretches across our global footprint, which means we are taking a good look at finding new ways to make, collect, recycle and reuse packaging. These new targets will require innovative thinking and working together to meet them.”

Other measures adopted by the dairy include recycling bottles into fence posts, shampoo, conditioner and lotion bottles while used pallets are being recycled into woodchips for use in playgrounds.

In 2017, Fonterra announced ambitious goals to reduce greenhouse gas emissions to zero by 2050, with a 30% reduction by 2030. It then partnered with the country’s Ministry for the Environment to develop an initiative towards a low emissions future.

AUGUST 2019 | FOOD BUSINESS AFRICA

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TECHNOLOGY

Nestle and OpenSC plan blockchain pilot for supply chain traceability SWITZERLAND – Nestle has partnered with an innovative blockchain platform, OpenSC to pilot a program that aims to enhance supply chain traceability and transparency using blockchain technology.

The technology will first trace milk from farms and producers in New Zealand to Nestlé factories and warehouses in the Middle East. It will later cover the palm oil supply chain in America which Nestle says will help provide consumers with verifiable data and drive the market towards transparency. The program is expected to improve food safety and quality control.

The data will be collected through each step of the value chain and recorded on an

open platform and the company may plan to include data from other monitoring systems, such as satellite imaging of farms. “We want our consumers to make an informed decision on their choice of products – to choose products produced responsibly,” said Magdi Batato, Executive Vice President, Head of Operations, Nestlé S.A. “Open blockchain technology might allow us to share reliable information with consumers in an accessible way.”

Nestle first launched blockchain technology in 2017 after it joined IBM Food Trust as a founding member. In April, it partnered with French retailer Carrefour to offer full traceability of famous mashed

potato brand, Mousline purée using blockchain, part of the giant’s journey towards full transparency with a goal to build trust with consumers in the food they eat.

“This open blockchain technology will allow anyone, anywhere in the world to assess our responsible sourcing facts and figures,” said Benjamin Ware, Global Head of Responsible Sourcing, Nestlé S.A. “We believe it is another important step towards the full disclosure of our supply chains announced by Nestlé in February this year, raising the bar for transparency and responsible production globally.”

WASTE COLLECTION

Bottled water industry calls for efficient plastic recycling systems

EUROPE – The European Federation of Bottled Waters (EFBW) has called for more efficient collection and sorting systems for beverage containers to high-quality recycled PET in the EU. EFBW has recommended a step-change in the performance of collection and sorting systems for beverage containers and this may include a well-designed Deposit Refund System. Such strategies are geared towards improving the number of recycled bottles across the EU including PET, glass and aluminium.

“The sector believes that high collection of beverage PET

bottles is a first, but very important, step towards higher use of recycled PET,” said EFBW in a statement. “However, to include recycled PET in their packaging natural, mineral and spring water producers require access to a consistent supply of high-quality, food contact, recycled material. Therefore, to meet the above targets while ensuring quantity and quality of recycled PET, separate collection is essential.” According to the industry lobby, deposit refund system has the benefit of yielding very high return rates in a separate “clean” stream for PET beverage bottles.

Meanwhile, the UK is set to introduce a deposit return scheme (DRS) for drinks containers such as glass bottles, plastic bottles and cans and this is believed will help increase recycling and reduce littering, following on Scotland, which introduced a deposit return scheme, the first national scheme in the UK and so far, and has proved successful. Retailers including Sainsbury’s are piloting reverse vending machine in a bid to boost plastic recycling.

The European Union in May approved the Single Use Plastics Directive, with a 90% separate collection target for plastic beverage bottles by 2029 and a target to incorporate 25% of recycled plastic in PET bottles from 2025.

COMPANY INITIATIVES

Pick n Pay launches plastic and packaging-free horticulture retail section SOUTH AFRICA – Pick n Pay, South Africa’s second largest retailer, has launched a ‘nude’ fruit and vegetable produce wall – a dedicated plastic and packaging-free zone in 13 stores across the country.

The ‘nude wall’ will include 12 new seasonal loose fruit and vegetables: brown steak mushrooms, portabellini mushrooms, red & green chillies, cocktail tomatoes, sweet Palermo peppers, baby brinjals, green beans, broccoli, zucchini, sweet corn and baby cabbage. These join the other 35 loose fruit and vegetables that were already available to customers at the stores.

Retail Executive, Commercial at Pick 34 AUGUST 2019 | FOOD BUSINESS AFRICA

n Pay, Paula Disberry, said plastic waste remained a concern for many customers, adding that the trial would give consumers the choice to shop for more fruit and vegetables free from plastic packaging.

“The company is really excited about this innovation and hopes to extend the loose range even further. Currently, the sale of loose products accounts for only 10% of all fruit and vegetables sold in PnP stores,” said Paula Disberry. “There is scope to grow our ‘nude’ wall offering, but it needs to be sustainable and without unintended consequences. Reducing plastic waste has obvious benefits, but we need to be careful

not to increase food waste levels during the process.”

The retailer said that paper bags will be available to customers at the ‘nude’ produce wall to complete their plasticfree greengrocer-inspired shop. It has also removed stickers from some of the retailer’s existing loose range including sweet potatoes, gem squash and butternut, which were replaced with laser printing.

“The impact of plastic is now front of mind for customers. We will closely monitor shopping behaviour and if this trial is successful, we can expand the initiative to more stores,” said Disberry.

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INVESTMENTS

Diageo to invest US$220m in sustainability projects in its African breweries AFRICA – Diageo, the world’s leading spirits maker has pledged to invest US$220million in green energy and water recovery solutions at 11 of its African breweries.

The investment, which represents the company’s largest environmental investment in over a decade, will focus on renewable energy and water recycling systems at breweries in seven countries to reduce its carbon footprint.

The London based brewer said biomass boilers using sustainable fuels will be installed at three breweries in Kenya and neighbouring Uganda, replacing systems that use heavy fuel oil.

The boilers will use sustainable fuel alternatives such as wood chip, bamboo,

and rice husks to create steam power for the breweries, reducing carbon emissions by 42,000 tonnes.

In addition, it will install new water recovery, purification and reuse facilities across five sites in Africa, including Kenya, Uganda and Nigeria, saving over two billion cubic litres of water a year. Solar panels will be rolled out at facilities in six countries, starting with Kenya and Ghana, producing up to one-fifth of each brewery’s energy needs. Other countries to benefit from the investment include Tanzania, South Africa, Seychelles and Ghana.

The group will kick start the project with an initial upfront cash investment of US$56 million for the biomass equipment, water treatment and solar power. An additional US$145.7m will be spent in long-term

supply and maintenance contracts.

“We believe this is one of the biggest single investments in addressing climate change issues across Sub-Saharan countries, said Diageo CEO Ivan Menezes.

“It demonstrates the strength of our commitment to pioneer grain-to-glass sustainability and to positively impact the communities in which we work,” he added.

Diageo generates about 13% of its global sales from its African operations and 50% of its beer sales. Its newest US$14 million facility in western Kenya, already has solar and water recycling capabilities. Another plant bottling the Kenyan beer Tusker operates on 100% renewable energy, the company says. It has committed to reducing its carbon emissions from direct operations by half by 2020.

INNOVATIONS

Cargill and InnovaFeed partner for sustainable animal feed solutions FRANCE – Cargill has partnered with biotech company InnovaFeed to develop innovative and nutritious animal feed solutions using sustainable options such as insect protein.

The companies, which are leading players in animal nutrition will collaboratively market fish feed incorporating insect protein for sustainable aquaculture. The partnership will leverage on InnovaFeed’s circular economy approach as it utilizes co-products from the agriculture production of starch and sugar to feed black soldier fly larvae known as Hermetia illucens. Protein and oil extracted from the larvae are used in feed for pets, aquaculture species and young animals like broilers and piglets.

“By upcycling local cereal co-products and repurposing insect waste as an organic fertilizer, InnovaFeed’s products truly have a positive environmental impact,” said Clement Ray, chief executive officer, InnovaFeed. “We’re also able to have a positive impact on climate change by saving 25,000 tons of CO2 emissions per year with each 10,000-ton-production unit by feeding insect meal to

animals. That is equivalent to removing 14,000 cars off the roads.”

The collaboration builds on Cargill’s ‘shared purpose’- offering innovative, sustainable solutions to meet the nutritional needs of the growing population and customers. “This partnership will not only enable our salmon and shrimp customers to differentiate their product lines to meet consumer needs, but we’ll also be responsibly managing resources, enabling both companies to support the growth of sustainable aquaculture and make a positive impact at a global scale,” said Adriano Marcon, president of Cargill’s aqua nutrition business.

InnovaFeed has developed an innovative process allowing them to produce high-quality insect meal, which can be an alternative to fishmeal used in salmon or shrimp feed.

Insects are considered to be a sustainable source of food and feed. Feed manufacturers are looking at ways to produce innovative feed options that will support sustainable protein production and safeguard the planet as well. Companies leading in this segment include Protix and French agri-tech innovator, Ynsect.

REGULTORY & POLICY

South Africa mulls introduction of new policy on single-use plastics SOUTH AFRICA – The government of South Africa is considering the introduction of a new policy meant to combat the use of single-use plastics as well as their disposal and management.

According to the environment minister, Barbara Creecy, the Department of Environmental Affairs is currently reviewing its policy on single-use plastics and hopes to complete this process by the end of this financial year. “The department has initiated a process to review the effectiveness of policies relating to the management of plastic waste and to consider whether it is necessary to have a new policy direction,” Creecy said.

According to her, the review will include discussions with the retail, pharmaceutical and cosmetics sectors as well as the paper and packaging industries on ways to combat the use of onetime plastics and their disposal management. Early this year, the department said that it was in talks to phase out or completely ban FOODBUSINESSAFRICA.COM

plastic products like straws and microbeads in the country.

Plastics SA, which represents plastics industry players, including polymer producers, converters and recyclers, has also called on the government to take immediate steps to ring-fence the plastic bag levy so it can all be used for recycling.

According to a Business Day report, nearly US$141.67 million (R2bn) has been raised since the retailing plastic bag levy was introduced 15 years ago to enhance its effectiveness.

Introduced in 2004 following an agreement between stakeholders in the sector, the levy is applied to the producers of the plastic bags stipulating a minimum limit on the thickness of the bags to aid recycling and promote re-use.

African countries are joining their international counterparts in taking action against plastic pollution and its impact on the environment. Kenya and Tanzania recently banned the production, supply and use of plastic carrier bags.

AUGUST 2019 | FOOD BUSINESS AFRICA

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SUSTAINABILITY TARGETS

Palsgaard achieves carbon-neutral production at global sites

DENMARK – The Danish ingredients

provider Palsgaard has announced that it has achieved total carbon-neutral production across its six global manufacturing sites.

The company, which provides emulsifiers and stabilizers for the bakery and food industry, said it has achieved the goal, set in 2010, two years ahead of the schedule, reinforcing its commitment to reducing the impact of carbon emissions on the environment. The ambitious goal was set to ensure that Palsgaard eliminates its carbon

footprint at all global production sites by 2020.

The company has revealed that it has reduced its net carbon emissions from 12,029 tonnes in 2010 to zero in 2018. Over that period, it has achieved CO2 reductions totalling 56,175 tonnes, equivalent to the amount produced by 4,885 European (EU) households in a year.

“This is a major milestone not just for Palsgaard but for the whole ingredients industry,” said Jakob Thøisen, CEO of Palsgaard. “The production of emulsifiers is very energy-intensive and when we decided to eliminate our carbon footprint, many thought it couldn’t be done. However, we’ve demonstrated that with ambition and innovation, sustainable ingredient production is possible. Achieving CO2-neutral status

ahead of schedule has given us extra energy to continue making a difference. We hope other companies will be inspired to go on the same journey.”

Palsgaard said the milestone was achieved mainly through changing sources of energy, use of new heat recovery and insulation techniques, switching from heavy fuel oil to certified biogas, and the use of renewables.

Its Denmark site uses electricity exclusively sourced from hydro power, while indoor heating is powered by burning home-grown straw rather than oil.

The company’s Dutch factory has over 800 solar panels and has run off only renewable energy since the start of 2018. Palsgaard said it has also partnered with the UN and purchases its official carbon credits to offset emissions.

INNOVATIONS

Tetra Pak launches paper straws for beverage products in Europe EUROPE – Tetra Pak has introduced paper straws for beverage products in Europe as part of the sustainable innovation to plastic waste and its impact on the environment.

The paper straws will be used for its beverage cartons, moving closer to its target of using recyclable or biodegradable materials in its products. Made from FSC™ certified paper and recyclable with the rest of the package, the new paper straw will be available initially for two small size carton packages commonly used for dairy and beverage products for children: Tetra Brik Aseptic 200 Base and Tetra Brik Aseptic 200 Base Crystal. The company said it has started field testing of the paper straw in limited volumes and plans are underway to increase production capacity at its straw plant in Lisbon, Portugal.

“We are pleased to have developed a paper straw that is fully functional and meets internationally recognised food safety standards,” said Adolfo Orive, President and CEO, Tetra Pak.

“This is an important step in our vision to deliver a package made entirely from plant-based packaging materials, contributing to a low-carbon circular economy. “We have decided not to apply for patent protection on the numerous technical improvements we have made on the equipment and the materials, and instead put our innovations into the public domain.

Tetra Pak said it is working with some technology companies to explore biodegradable options, such as polyhydroxyalkanoates (PHA), a polymer derived from plant-based materials. This is part of the strategy to develop sustainable solutions which so far include renewable packaging like tethered caps and integrated drink-from systems.

The company has pledged to invest US$115 million per year in supporting its packaging portfolio innovation strategy. It recently opened a new aseptic carton packaging material factory in Binh Duong, Vietnam after investing US$135 million.

PACKAGING

Ethiopian water bottlers forego neck seals in renewed sustainability drive ETHIOPIA – Manufacturers of bottled water in Ethiopia have resolved to forego the use of neck seals, a decision aimed at promoting a sustainable environment by reducing plastic waste.

The Ethiopian Bottled Water & Soft Drinks Manufacturing Industries Association said that the move, which took effect July 2019, is also aimed at saving foreign currency in addition to curtailing the negative impact of plastic on the environment.

According to the Association’s chair, Getnet Belay, the decision was backed by a detailed study on the effect of neck seal packaging conducted by the association, bottlers, the Environment & Climate Change Commission and consumers.

The study focused on the health, 36 AUGUST 2019 | FOOD BUSINESS AFRICA

economic and environmental issues arising from the use of neck seals, reports Addis Fortune. “The packaging is very small, making it difficult to be collected and easily recycled,” said Getnet.

The decision has also received approval from the Food & Drugs Administration (FDA), the Food, Beverage & Pharmaceutical Industry Development Institute, the Ministry of Trade & Industry and the Ethiopian Standardization Agency (ESA).

The FDA and ESA noted that the seal does not contribute to the health, safety or the quality of the product, but instead has a negative impact on the environment. While it is not commonly used in other countries, the seal is not mandatory under Ethiopia’s standardisation rule. “Neck seal packaging is a tradition carried over from pioneer

water companies,” said Getnet, “but it can’t be a measurement for standard or quality.”

This is also expected to save the country about US$3.5 million a year spent on importation of the neck seal as well as cut on additional labour costs incurred during the application process. “It will save us a considerable amount of foreign currency,” said Fethi Abdulqadir, the general manager of Nyala Plc which bottles Eva Water.

According to Fethi, the company has been spending US$40,000 a year to import the seal. The company produces 16,000 bottles of water an hour.

The Ethiopian Bottled Water & Soft Drinks Manufacturing Industries Association was established in April 2018 with 33 founding members. Ethiopia currently counts of about 85 water bottlers.

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Nitin Menon (General Manager), Pawal Patel (MD), Caroline Kashaga (Head of Marketing) and Shahid Choudhary (GM, Technical) who are leading the transformation of the Sayona Group.

SAYONA GROUP: TURNING TANZANIA'S AGRO PRODUCE TO HIGH VALUE FOOD PRODUCTS

Sayona Group is one of the leading fruit processing companies in Tanzania.

With an eye on boosting the local value addition of locally available agricultural products in the country, the company has commenced the journey to diversify its offering into the broader food industry. Pawal Patel, the Managing Director of the Group and his team gave us an insight into the company’s plans in the present and into the future, when we visited the company and its factory near Dar es Salaam, Tanzania in May 2019.

38 AUGUST 2019 | FOOD BUSINESS AFRICA

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TRENDS

By Francis Juma

T

he journey to the Sayona Fruits plant, located some 120 plus km from the commercial capital of Tanzania, Dar es Salaam, is a journey that reveals to a keen observer the huge potential that Tanzania offers in the food and agriculture space. It is late May and the Food Business Africa magazine team joins Shahid Choudhary, the General Manager (Technical) of the company on a drive from Dar es Salaam to the plant, which is located in Mboga village, a few minutes-drive from Lugoba shopping centre, a sleepy town with a few shops on both sides of the road and a secondary school.

On a journey that takes us nearly 3 hours, it takes us a while to go through the busy traffic in the city, past Mbezi Beach and Tegeta suburbs, as we ease into the countryside on the Dar es SalaamBagamoyo Road. We go past thousands of road side kiosks selling all manner of merchandise, including water, fruit drinks and juices, piled high on the sidewalks of the road and in front of kiosks as traders busy with early morning trading prepare to quench the thirsts of the millions of town dwellers who call the hot and humid Dar es Salaam home. Settled into the drive and away from the city, we finally ease into a monotonous drive to our destination, as we go through hectares and hectares of flat, uncultivated agricultural land that stretches as far as the eye can see, as the Indian Ocean beckons not far away, past shopping centres beaming with mounds of pineapple fruit waiting for buyers from the city to pick their supply.

It is this burgeoning urban population and the huge fruit production capacity of Tanzania, estimated at 6 million tonnes per year that attracted Sayona Group to enter the fruit processing sector by establishing its fruit processing plant at Mboga village, not far from the famous Chalinze town.

First mover into PET drinks The Sayona Group is part of the Motisun Group of companies that has operations across the steel, cement, mining, plastics, paints, hospitality and real estate in Tanzania, Zambia, Uganda, Mozambique and Ghana. Founded by its Chairman & Managing Director Subhash Patel, a Tanzania born entrepreneur, the Group has grown from its humble beginnings in Dar es Salaam in 1992 to the huge conglomerate it is nowadays, with a strong and impactful base in Tanzania, which continues to spread into Africa.

Pawan S. Patel, the Managing Director of the Sayona Group, informed us that the company started its beverages division FOODBUSINESSAFRICA.COM

in 2005, commencing with its flavoured drinks products, as its first venture into the food processing sector. “We got into the fast moving consumer goods (FMCG) segment to diversify ourselves through the vision and a thought that had been brewing in my father who is the Chairman of the group. We created Sayona Drinks and set off with bottled water and artificial ready to drink (RTD) juices. In my father’s dream, we set the business at a time most people thought it was a crazy idea taking on giants with global presence and endless marketing muscle. People feared we would be squashed out in no time. My father did not backout; he willingly accepted the challenge,” he informed us. He added that their company was the first one to bottle soft drinks in PET packaging in Tanzania, which set the trail for other companies to introduce their drinks in this type of packaging. He says the brand, Twist, created a wave in the Tanzanian market when it was introduced, setting the industry to innovate in its packaging to meet changing consumer need for convenience and cost.

“From there we went into juices which we manufactured from imported pulp from India and other places. We were aware of the existence of locally available fruits, but we began with importing pulp as a stepping stone to the processing of our on from local fruit and on the way, empower our local farmers. Since we got into processing our own pulp locally, it’s our second season in that direction. It’s a new business under the Sayona Fruits Division. With our own pulp we are able to control the flavour and amount of pulp going into the juices,” he explained.

And it is the lure of the heaps of fruits on the side of the road from Dar es Salaam to Lugoba, where the Chairman & MD of the Motisun Group was born and raised, that the idea was borne to build the fruit factory in the same area he was born, and which is now the magnificent looking Sayona Fruits factory. “There is a lot of excess fruits in Tanzania, with farmers missing where to sell their produce. The government of Tanzania has been trying to raise the capacity of local processing of fruits and vegetables to give farmers a viable and reliable market. We have had other players in the market before who have not managed to make a dent on the huge quantities of fruits and vegetables in Tanzania – with a lot of it failing to get onto the table top or being processed, but rotting in the fields. We are glad to say that we are another source for fruit and vegetable farmers across Tanzania.”

Pawan informed us that in the last 5 years, the company has been putting a lot of

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“WE CREATED SAYONA DRINKS IN 2006 AND SET OFF WITH BOTTLED WATER AND ARTIFICIAL READY TO DRINK JUICES. WE SET THE BUSINESS AT A TIME MOST PEOPLE THOUGHT IT WAS A CRAZY IDEA” Pawal Patel - MD its focus on the FMCG market to tap into rising local demand that is driven by rising consumer sophistication in the Tanzanian market and the regional markets that they serve.

Community focused fruit processing plant Sitting on 34 hectares out of the total 180 hectares that is set for further expansion in future, the Sayona Fruits fruit processing and beverage plant in Mboga, just outside Chalinze, is situated in the most unlikeliest of places. Branching off the main MsataChalinze road past Lugoba town, one all of a sudden comes across a huge plant that stands in complete contrast to the overgrown bushes in a rural setting that surrounds it. It is here that the company set up its Mboga factory, not far from where the Chairman & Managing Director of the Motisun Group, Subhash Patel, grew up, to bring much needed development to his rural village, after having made it big in the city.

The company is very pleased by the location of the plant, and the benefits that have accrued from the investment. “The plant is not in the city of Dar es Salaam; it is in the rural village of Mboga near Chalinze.

There is hardly any business in the area; in Chalinze there is a crush quarry, but we are the only fruits processor or notable food processor in the area. We wanted to be there because there is a good network of roads connecting Dar es Salaam with the rest of the country and there are also a lot of fruit farmers in the area. Rather than have people come to the city, we are enabling them to stay in the village and still prosper and make a livelihood,” explained Pawan S. Patel, the MD of the Sayona Group.

“We invested about US$40-50 million in the plant from concept to completion and commissioning,” revealed Nitin Menon, the General Manager, Sayona Drinks, who is the business head for the Sayona Group that encompasses the Sayona Drinks, Fruits and Foods Divisions. “Our objective was to have a completely integrated unit to process AUGUST 2019 | FOOD BUSINESS AFRICA

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IN NUMBERS

180 THE TONNES OF FRUITS PROCESSED BY THE PLANT PER DAY

"BY ADDING VALUE TO LOCALLY AVAILABLE FRUITS WE ARE ABLE TO IMPACT THE LIVELIHOODS OF THE RURAL MASSES AND TO THE GROWTH OF TANZANIA" Nitin Menon - GM the fruit and make the beverage and also have space for our future expansions for other categories, like food.”

He added that with the abundance of fruits produced in Tanzania and the government of Tanzania’s focus on local value addition of local produce, the plant has become a critical cog in the wheel of turning the country, which is an agricultural power house, into a food processing giant in future. “We used to import fruit pulp for our juice manufacturing. Our Chairman, having lived in Tanzania for more than 50 years, had a vision to contribute to the society and country. By way of adding value to locally available fruits we are able to impact the livelihoods of the rural masses and to the growth of the common Tanzanian through the supply and value chains.”

According to Shahid Choudhary, the General Manager (Technical), the company has three plants: the Mboga plant, which processes fruits and fruit juice drinks and which was commissioned in 2018; the Mwanza plant, opened in 2017, that produces carbonated soft drinks (CSD) and packaged drinking water and the Dar es Salaam plant, which was where the inaugural food industry plant by the Group since 2006, that packages water and new food products including snacks. The Mwanza and Mboga plants produce about 40 AUGUST 2019 | FOOD BUSINESS AFRICA

200,000 litres of drinks and juice drinks per day to serve local and regional markets that are being developed currently.

The Mboga plant set up is highly technically sound and eco-friendly, explained Choudhary. Apart from the fruit processing and the beverage plant, the facility has a number of auxiliary units that cater for the bulk of the requirements of the plant including preform, shrink-wrap and drum making plants, so that whatever is manufactured there can be available to the plant and save transportation costs.

With a fruit processing capacity of up to 180 tonnes per day of fruit, the plant is one of the biggest in Eastern Africa. At the facility, the company has also installed 8 ripening chambers, thereby enabling the plant to receive fruits at various levels of ripening. The site also has an elaborate water treatment, waste and an effluent treatment plants.

The plant is a world class facility with a number of facilities for workers, including accommodation, dispensary, fire-fighting, prayer, fueling and canteen facilities. It received the BRC certificate in early 2019, and conforms to all local and international regulatory certifications. The plant has two analytical laboratories to manage raw materials, packaging, in-process and final products and water samples. It also has a microbiology laboratory, where product and water microbial quality are tested.

“We took the challenge to get the BRC rating so that we can engage with some of the larger players in the fruit juice industry, where we could open dialogue to provide them with the pulp for their onward uses.

These companies are looking at local sourcing and we want to be an integral part of that sourcing with various companies in the region,” informed Nitin, the GM. He reiterated that the new investment has impacted very positively the company’s

positioning and operations in the Tanzanian market, putting it in good stead to penetrate into the regional markets with more capability and an assured quality of final products. Other ancillary investments like depots and distribution across the country have enabled the company to penetrate throughout Tanzania, which is quite a feat considering the country’s vast size.

According to Nitin, the pulp from the Mboga plant is used in the manufacture of beverages at the other two locations run by the Group in Mwanza and Dar es Salaam.

The plant currently processes three varieties of mango plus others from pineapples, guava, passion fruit and tomato puree. In the future, the company is looking at processing other locally grown fruit varieties. Mango is the leading fruit processed at the plant, followed by guava, tropical varieties and then pineapple. Oranges, passion, and tomato are also processed at the facility.

“The benefit of the plant is that we have taken the challenge to educate the farmer in Tanzania and also ensure that there is market the produce which we buy at a very fair price. We are working with government agencies to help us source the fruits in a timely basis and in good condition. The pulp from the plant gives an added advantage by saving us on forex occasioned by importation and the duty that comes along with that process.

Additionally, compared to the pulp from outside which is in the form of concentrate, our pulp is single strength. This has enabled us to maintain the near wholesomeness of the juice in feel and taste,” added Nitin.

Nitin maintains that fruit growing has been a backyard affair for a long time in Tanzania but he sees commercial fruit farming becoming common place in Tanzania in future. “The commercialization of fruit farming will be a process because of small land holdings by a majority of the farmers, especially for mangoes. The government is focusing on horticulture as an area that will spur economic growth in the country, and we are behind them to provide the necessary support. The government field officers are helping us identify the varieties and working with farmers to help FOODBUSINESSAFRICA.COM

MY FACTORY, MY STORY | SAYONA GROUP

“AS A BUSINESS, WE WOULD LIKE TO BE CONSIDERED AS AN FMCG BUSINESS, NOT JUST A BEVERAGE COMPANY. THAT'S WHY WE HAVE ENTERED THE SNACKS CATEGORY” Pawal Patel - MD

them grow the varieties better. We also educate the farmers to discourage them from picking fruits prematurely. Immature fruits lead to rejections and losses; we encourage them to let the fruit to grow to the right maturity and size for the purpose of obtaining maximum yield and optimal flavor.”

Advanced processing capabilities The company receives the bulk of its fruits from dealers who collect from several farmers or directly from large scale farmers. At the factory the fruits are received, sorted and then weighed through an automatic hydraulic system. Particular attention is placed on separating small, damaged and diseased fruits from good ones, after which these are taken into the ripening chambers in crates, where ripening gas, ethylene, is introduced into the chambers with temperature and humidity controls for 4 days.

The plant has 8 ripening chambers currently, each handling 180 tonnes of fruit at any one time. It is constructing 4 more chambers to improve the capability of the plant to receive and process more fruits. The ripened fruits are then taken through a series of process of washing and pulping to produce single strength pulp and packed aseptically in 210 kg drum packaging and stored .

The beverage production line relies on the pulp made at the plant for all its needs. The pulp is received from the storage, its quality checked by the QA personnel before blended with ingredients, checked again, before going through a pasteurizer and filling through a 24,000 PET bottles per hour bottling line.

Alternatively, the drink is taken through two separate aseptic lines that can package 200, 350 and 1 litre carton packages in a 18,000 packs per hour filling line. With minimal labour requirements, the bottle and aseptic filling and packaging lines increase the efficiency of the plant substantially.

Diversification strategy takes shape Since its establishment in 2006, the company has always been proud of its innovative approach to its business. From introducing the first CSD in plastic PET packaging, the company has expanded its range of products to include juice drinks in PET under the Tunda brand and in 2018, commenced the production of fruit juice drinks in aseptic packaging under the Fruttis brand, to meet, according to Choudhary, the rising demand in Tanzania, as consumers gravitate towards fruit juice drinks instead of CSD products. The company has also recently entered the snacks category, with a line of crisps and extruded corn-based snacks, and is at advanced stages of introducing a line of culinary and savoury products including tomato sauces, marinades, ketch ups etc.

Caroline Kashaga, the company’s Head of Marketing, informed us that the development of new products have been dictated by changing consumer needs in the Tanzanian market. “We are seeing huge changes in consumer behavior that are informed and influenced by happenings in established markets. The digital world has opened a lot of perspectives for everybody. We can now benchmark on good products and services and practices from beyond our borders. Food companies have to increase what they are offering and be at the forefront of innovating while taking an active role to understand the ever fickle and demanding consumer. We are FOODBUSINESSAFRICA.COM

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The company's range of fruit drinks come in bottle and carton packaging in various flavours and packaging sizes. seeing this enabling environment bringing in more manufacturers and consumers to the marketplace in our market.”

The company has therefore aligned itself with the changing landscape. “We launched our juice drink products because we noticed that the consumer was becoming more health conscious and we needed to diversify to meet their needs. Further, to enable us target the increasing middle-class, we launched fruit juices in aseptic packaging called Fruttis, which has a more real fruit authentic taste without any preservatives to our consumers.

“As a business, we would like to be regarded as an FMCG business, not just a beverage company. That’s why we have entered the snacks category, while looking at processing and packaging other food products. We want to be a brand that from morning to evening, we have a product range that can touch every hour of your day – from breakfast, snacks, lunch to dinner,” revealed Pawan S. Patel, the MD, Sayona Group.

Available in various flavour options, the company has debuted its Sayona snacks range, which is an important part of the company’s diversification journey. “The snack culture is there in Tanzania, for example, people do take a lot of snacks, from cassava to nuts, on the road side a lot, and so we are aiming to develop the market in this area. We feel that with the synergies of other businesses we run, we are not just a snack food manufacturer, which many of the players are. Through our extensive logistics capability, by adding a snack product to our fleet of vehicles, adds value to our customers and also enables us to get our snack products to the market.”

People focused plant The management of the company took into consideration the unique location of the Mboga plant to ensure that managers and employees had access to the most critical facilities that would ensure that they are comfortable to deliver on their goals, 42 AUGUST 2019 | FOOD BUSINESS AFRICA

despite the fact that the plant is located far away from most amenities.

All the plant’s managers are housed in company premises located just outside the plant, with access to water and other amenities in the living quarters. All employees have access to lunch and dinner,

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NUMBER OF PLANTS BY THE COMPANY: IN DAR ES SALAAM, MBOGA AND MWANZA treatment services at the dispensary, where the company has a doctor on hand every time. To cater for the employees’ faith matters, the company has built a mosque and a church that are utilized by the employees.

“Am proud that our company is a Tanzanian company that is buying local fruits and promoting local farmers. Am also glad that we are promoting local talent by giving them opportunity in the food industry. We have over the last two years hired 35 local science graduates from Tanzanian universities that we have trained and absorbed into supervisory and management levels,” said Choudhary.

Across the factory floor, are a number of young graduates handling various quality and production roles, gaining technical skills that Tanzania truly needs to take advantage of its huge agricultural potential, with the government seeking for partners to boost the local value addition to fruits, vegetables, meat, milk, cereals, pulses and other produce that are in plenty across the country.

According to Nitin, the business has taken it as a mission to localize its

workforce by getting as many Tanzanians as possible in the senior positions and grow them in their careers and carries out various programs across several functions to build the capacity of its employees. Recently, it conducted a sales training program to improve the effectiveness of the sales personnel in frontline retail. It also has leadership programs for mid to senior level management in programs that build their leadership skills.

Sustainability focus at the plant The plant has adopted sustainability practices that meet its unique profile, and the fact that it handles fruits that can easily become unmanageable in the factory’s premises, especially during peak harvest seasons or during rainy seasons. Choudhary, the GM (Technical) stresses that despite the fact that the plant is located in an isolated area, they have a huge responsibility to ensure that the environment within and around the plant is maintained in clean and sustainable manner – just as they found it.

The plant is currently building a new briquettes plant that will process the seeds and peels into a source of renewable energy that will be used in its multi-purpose boilers. All the waste water from the processing and cleaning process are treated, generating 50 m3 of biogas per hour, which is used on the boilers and is also used at the kitchen to cook meals for the staff. Further, the company has built a water collection pan not far from the facility, where run off from rain water is harvested, treated and pumped into the factory’s water tanks for use by the plant.

The plant has its three 810 KVA power back-up generators that offer back up to mains power to ensure that production runs unhindered all the time. With an extensive water treatment plant and a reverse osmosis (RO) plant that handles 200,000 litres per hour, and a fire safety system that has capacity of 1 million litres per hour, the plant can safely handle its water and safety requirements, with extra capacity to help FOODBUSINESSAFRICA.COM

MY FACTORY, MY STORY | SAYONA GROUP

The waste water from the plant is treated at this facility, generating 50 m3 of biogas that is used in boilers and at the staff canteen. the surrounding community in case of a disaster. The plant’s huge “WE ARE IN THE PROCESS OF BUILDING boilers, each with a capacity of 6 tonnes of steam per hour, utilizes OUR IN-HOUSE R&D FACILITY, BUT WE coal, biogas, mango seeds and other organic matter.

Future of regional growth According to Pawan, the company has a bright future ahead, with a focus on diversification of its products and regional expansion top of the mind of the company’s management. “Our first priority in the next 5 years is to consolidate ourselves, trying to keep up with the curve. We also have expansion plans for our beverages products.

We have 3 beverage plants across the country and are looking at setting up a fourth one. Our strategy is to put plants in regional hot spots rather than having a mega plant, and to run an efficient logistics business to get into the rest of the country,” he said.

They are also looking at supplying fruit juice processors across the Eastern and Southern Africa with their pulp products in the near future. “We have and continue to hold discussions with a number of companies in the region with a view to meeting their requirements for high quality, locally processed and sustainable supply of fruit pulp products from our new plant. We are confident that with the confidence brought by our recent BRC certification, we shall succeed in these ventures,” stated Nitin.

In terms of regional growth, Pawan says that they are adding more capability and focus to penetrate further into the regional market. “Regional priority is key. We have achieved our Tanzanian dreams to a large extent. We are at a capacity that we would like to grow out of Tanzania. We have orders and enquiries in Rwanda, Malawi, Kenya, DRC, Zambia, Mozambique. We are actively approaching these markets more aggressively now. We recently announced our plans of setting up new plants in Zambia and maybe in Rwanda, if it makes sense. We are planning to grow our footprint out of Tanzania. In our other Group businesses, we started with Tanzania, consolidated ourselves and then when we had adequate capacity, we put up plants in neighbouring countries.

We would like to do the same with our food sector businesses.”

Nitin informed us that the company is looking beyond Tanzania into new frontiers and they have seen positive outcomes from a number of countries, including Rwanda and Malawi. From the marketing point, the marketing team and also going out to understand these markets and their consumers to see how to grow into these territories.

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ARE ALSO GOING TO BE WORKING WITH PRODUCT DEVELOPERS GLOBALLY TO DEVELOP PRODUCTS THAT MEET CONSUMER NEEDS” Nitin Menon - GM

Nitin added that they are also looking at building their innovations capacity to respond and meet new consumer needs as they arise. “Our innovations are driven by understanding consumer trends. We are in the process of building our in-house R&D facility, but we also going to work with product developers globally to develop products that meet the needs of the consumer. There are many other in-house capabilities we are developing to take us to the future.”

Pawan signed off by reiterating that Sayona Group is focused on Tanzania considering it is the natural home for the Group, but that they are looking at growing the pie in the regional market.

“Africa is big with many opportunities for everyone,” he added, adding that the opportunity is there for everyone to grab, without affecting anyone else, even as competition increases in the regional markets. “My advice is for every company to look deep within them for their core strengths and to play to their advantages. We shall all win.”

Community involvement The Group is very proud of its attachment to Lugoba, and its primary involvement with the community is through the vision of the Chairman. He decided to build the fruits factory in the area so that he could give back to the society where he was born and raised.

The factory has employed 1000 -1200 people in the region.

The Group also support local medical facilities and schools, especially Lugoba Secondary School, where the Chairman has contributed immensely to ensure the facilities are upgraded to give the students a safe and comfortable learning environment. They also support many NGOs that have various initiatives geared at improving the lot of the local communities in Tanzania AUGUST 2019 | FOOD BUSINESS AFRICA

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FRESH CUTS (U) LTD: REFINING ITS SCOPE IN THE UGANDAN MEAT MARKET WITH EYE ON REGIONAL GROWTH Fresh Cuts (U) Ltd is a leading meat processor in Uganda, offering its products and services to clients within Uganda, East and Central Africa.

Recently the Food Business Africa team took a trip into the ‘Pearl of Africa’ and down to Sseguku area of Kampala on the Entebbe Road to hear the story of the meat processor priding in quality, safety and a few firsts in the Ugandan meat market and beyond from the company’s Managing Director, Amos Tindyebwa 44 AUGUST 2019 | FOOD BUSINESS AFRICA

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ganda has one of the best climates in Africa; cool temperatures and rainfall throughout the year. Its rich and green vegetation with tropical rain forests, numerous water bodies and large swaths of arable land set a very favorable mix of conditions for crop and animal production all year round.

One sector that has thrived on this natural advantage is livestock farming.

Demand for quality meat products is on the rise in Uganda, as urbanization takes hold, incomes rise, and more young people pour into the streets of Kampala and other towns in Uganda. To tap into this availability of animals and rising demand for locally processed, affordable and quality protein, Fresh Cuts established the country’s first meat processing company.

The Fresh Cuts factory is right off the Entebbe Road; its entire compound flanking the busy road that runs to the Entebbe, on the way to the Entebbe International Airport, Uganda's largest airport, from the capital city, Kampala. It is a private limited company which began operations by taking over Meat Processors Limited, a company that was operating a meat processing plant and a restaurant along Ggaba Road in the city of Kampala. The company’s core business is processing, packing and selling cut and processed meat products in the country.

Fresh Cuts began its journey as a small butchery in Nsambya, a Kampala suburb, in 2000 under the name Quality Cuts, when it was then operated by a Belgian national, Stephan Duyck, by tapping into the middle and high earners with an objective of providing choicest, hygienic meats to a somehow sophisticated clientele. Business was thriving and flourishing with the sale of five beef carcasses, one pig and one hundred chicken per day. The demand was burgeoning in the wake of abundant raw material that was underutilized. It was inevitable; expansion to meet the surging demand was beckoning at Quality Cuts. As a resultant of FOODBUSINESSAFRICA.COM

the reorganization and expansion, Fresh Cuts was born in 2005. A new bigger facility was at then required by the enterprise, and by 2010, more demand was landing in the Fresh Cuts basket.

The firm then shifted from Nsambya to Sseguku about 10 km outside central Kampala after purchasing a meat processing plant and expanded its capacity to the state of the art factory it is today where they process beef, poultry, goat and lamb into prime cuts, retail cuts, sausages, hotdogs and cold cuts. Their focus is to move the meat sector away from the traditional value chain – from raising animals, purchasing, slaughtering, processing and marketing of finished products – to a modern system where quality and safe meat products can be availed to meat lovers in Uganda and beyond, every day.

Systems to deliver quality meat products The ISO certified facility strictly adheres to Good Manufacturing Practices (GMP), creating confidence in their customers as a one stop meat solution point for all their meat demands.

According to Joseph Otim, the Head of Production, the firm has sufficient capacity that responds to market requirements and demand with plans to expand in line with market growth. They have 3 big blast freezers and their cold rooms can hold 25-30 tonnes of finished product that can sustain market elasticities. The plant has a capacity to produce 70 to 100 tonnes of meat a week in single and double shifts.

“Our capacity is sufficient to meet the meat market requirements in Uganda and our export market,” states Joseph. The facility receives carcasses from a certified abattoir, which are then taken through various procedures including weighing, washing and disinfection. “After the preliminary preparations, the carcasses are taken to the cooling rooms for aging for 4-7 days, where the meat tenderizes and its flavor is enhanced. They are then cut into AUGUST 2019 | FOOD BUSINESS AFRICA

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“WE ARE UNBS AND HALAL CERTIFIED, SHOWING HOW QUALITY IS VALUED IN OUR COMPANY; QUALITY IS OUR NUMBER ONE ASPECT” Joseph Otim - Head of Production different parts depending on orders and customer specifications.

Primary packaging will be done in vacuum bags, sticker-labelled and then channeled into blast freezers. A day later, secondary packaging in corrugated cartons is done and the product stored in cold rooms to await dispatch,’’ Joseph briefs us on the process.

The only ISO 22000:2005 certified meat processing firm in Uganda has a well-equipped, competent and enabled QA department that ensures the processes deliver quality and safe products consistently. “The ISO certification allows us to do business inside and outside the country. We are also Uganda Bureau of Standards (UNBS) and Halal certified, showing how quality is valued in our company; quality is our number one aspect here,” alludes Joseph equably. Joseph tells us that quality standards are stringently enforced throughout the value chain - from farm to plate.

To meet the rigors of cold chain to the last mile, Fresh Cuts has a fleet of refrigerated trucks that ensure that product quality and integrity is maintained at approved temperature conditions up to delivery. The plant has become a point of reference as a pioneer of quality meat in Uganda with its range of products.

Meeting local and a growing exports market According to Tonny Mpagi, the Sales Manager, Uganda’s meat market is segmented into three: traditional, which receives low quality low priced chopped meat with bones; high quality market, that is supplied with high quality meat predominantly for high income earners. The other market is the expatriates’ segment that gets products from supermarkets, hotels, restaurants and takeaways.

With the meat industry growing very fast in Uganda, Fresh Cuts, which operates under two core brands, ‘Fresh Cuts’ and ‘Quality Cuts’ has strategically invested and positioned itself to serve the latter two markets locally and for export. “In the beginning we had a near monopoly as a company but with time more players have come on board showing that the meat sector is developing and growing very fast,” Joseph said adding that people are now moving away from the traditional ways of buying meat from the roadside to modern ways from formal outlets, which is a good step for the country and industry. There are more people coming in to invest in other areas of the sector; in farms, ranches and modern abattoirs helping boost the sector. “Competition is getting stiffer day by day; this is good for the sector because it helps us improve and become better,” says Joseph welcomingly.

Fresh Cuts produces chicken, beef, lamb and goat in segments of professional cuts, sausages and cold cuts. They equally have the capacity and capability for customized products as per individual specifications with an aim of meeting client satisfaction.

The ‘Fresh Cuts’ brand services export clients in the region and local wholesalers like supermarkets, hotels, restaurants, schools, company cafeterias, social events and much more. On the other hand, ‘Quality Cuts’, feeds the retail customers with their three outlets at Crane Plaza, Kisementi; Forest Mall, Lugogo bypass and Imperial Mall, Entebbe with a promise of more outlets by the forward looking firm.

Inherently, ‘Quality Cuts’ brand is a high-end butchery and 46 AUGUST 2019 | FOOD BUSINESS AFRICA

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MY FACTORY, MY STORY | FRESH CUTS

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1,800 NUMBER OF EMPLOYEES AT KENAFRIC HAS AS A GROUP, FROM 20

The company runs a number of retail outlets in Kampala, Uganda, where its Quality Cuts brand is availed, among other products delicatessen that has been running for 25 years. “We offer a ‘Fresh Everyday’ assortment of top grade fresh and marinated beef, chicken, lamb and goat’s meat. The Deli meats are roasted, smoked and cooked using age-old recipes,” Loyce Atwine, Corporate Communications Manager, states.

The three shops are professionally equipped and staff up to the task to serve clientele throughout the week. Other than the meats, they also offer fullest sandwiches with ‘Fresh Everyday’ baguettes, fresh and clean vegetables and condiments of choice. Loyce indicates that the sandwiches are custom made on site and can be warmed or grilled depending on the customers’ preferences. The delicatessen employs a meticulous quality assurance process with the food they offer whilst maintaining the authenticity and natural organic flavors for their patrons. To cap it, in their repertoire, you will not miss imported cheeses from Europe and America and finest wines and spices that have enchanted the clientele over the quarter century.

The Sales Manager tells our team that beyond Uganda, Fresh Cuts have gotten into Rwanda and the DRC markets. In a market where exports are limited because of the prevalence of diseases, wanting export-standard abattoirs and the high demand of the national market, Fresh Cuts still have their eyes trained on exports.

“The challenges we face in opening up the export market are animal disease outbreaks and lack of competitiveness in production.

Sometime back we had bird flu that slowed our progress regionally.

Competition from other markets that have low costs of production is also a hindrance,” laments Tonny. Access to export markets of livestock and livestock products requires significant investments to meet veterinary requirements largely intended to protect the importing country’s animal and human populations. Furthermore, for a meat processor to export, they must meet additional product quality requirements with respect to production, marketing and processing.

These sanitary and phytosanitary difficulties notwithstanding, Fresh Cuts has stayed ahead of the pack by consistently producing and supplying quality products with clear traceability and real value for money. They have put compliance at the core of their business.

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“WE ARE MANAGING OUR OWN ABATTOIR THAT IS CERTIFIED. WE DON'T ENGAGE ANY FARM WITHOUT PROPER RECORDS AND TRACEABILITY. WE AUDIT THEM BEFORE THEY COME ON BOARD” Joseph Otim - Head of Production

“We have partnered with farms that keep records well. We are also managing our own abattoir that is equally certified. We don’t engage any farm without proper records and traceability. We first audit them before bringing them on board,” Tonny informs us, adding that consumers are getting more aware and demanding to know the origin of what ends on their plates.

Tonny believes the opportunities in the sector are immense, especially now that the market is more sensitized, as customers now understand the risks in the informal channels which have questionable quality and hygiene. The population is also growing, the middle class bulging and the expatriate community significantly having a greater presence. These factors, fueled by the growing number of retails establishments, a growing hospitality sector and the government’s support, has created an interesting trajectory for Fresh Cuts and the Ugandan meat market. In 2-3 years’ time, Fresh Cuts wants to be the best regional meat company. They are looking beyond Eastern Africa into the greater Africa and the Middle East.

They are however aware that to gain access and maintain presence in high value foreign markets, it is often costly as standards and expectations keep on growing, due to consumer pressure in the targeted markets. Other growing beef markets such as the Middle East and Asia may require that some international standards be met (as a hygienic abattoir at minimum), although their national standards are sometimes less exacting. Unfortunately, veterinary requirements of high value regional markets are in most cases bench-marked on EU standards even though the prices are relatively lower, he reveals.

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“WE HAVE BEEN SUPPLYING CONGO GOLDMINE MSL IN THE ALBERTINE REGION AND HAVE PLANS TO START SUPPLYING THE UN, SUDAN, RWANDA AND BURUNDI” Amos Tindyebwa - Managing Director Investing in human capital To arrive at their lofty but achievable goals, Fresh Cuts are tapping into the best human resource in its departments, who they put through internal programs to equip them for the Ugandan market and the take-off to markets beyond the frontiers. The HR department coordinates new employee orientation to forge a strong employer-employee relationship other than providing training that supports the company’s fair employment practices.

The pioneer quality meat processor currently employs 95 full time permanent employees and 15 casuals. With prospects beyond Uganda into Congo, confirmed supplies to the UN and establishment of markets in Sudan, Rwanda and Burundi they will require competent people to drive the strategy according to Amos Tindyebwa, the Managing Director. He confidently feels Fresh Cuts are a key cog in the Ugandan and indeed regional economy wheel, through employment, paying taxes and provision of quality meat products.

The Human Resource function has improved the bottom line of the company in planning and decision making on current and future staff requirements as demands dictate. It has managed the employment process and determined the most effective methods for recruiting and assessment to converge with company needs.

“HR has developed realistic compensation structures and rewards that set company wages competitive with other businesses 48 AUGUST 2019 | FOOD BUSINESS AFRICA

competing for employees with similar skills in the country,” indicates Tindyebwa adding that responsibility-based pay and pay for performance bonuses enhances employee motivation and engagement.

The firm takes health, safety and risk management seriously; they say they have an obligation to provide safe working conditions. They manage compliance and safety standards through maintaining accurate work logs and records and programs that reduce the number of workplace injuries and fatalities are in place, like conducting annual fire drills and safety sensitization to engage employees in promoting awareness and safe handling of dangerous equipment and hazardous chemicals.

Future and CSR Other than creating jobs for Ugandans directly and indirectly, Fresh cuts has dedicated itself to supporting and improving animal raising practices of their contracted farmers. This has enabled the company to get quality meats for their various products. As a responsible corporate citizen, they contribute to the economy by paying taxes and ensuring that the market receives quality and safe products all the time. The firm facilitates transport services for their export customers by road and air. For air, they facilitate in negotiating for favorable terms of delivery with an objective of nurturing a sustainable business life. The firm has also taken the trouble to educate and advise its hotel and restaurants customers on the best meats that meet their requirements and best suited to intended menus in costing and quality.

As Tindyebwa points out, the company has a lot of prospects beyond Uganda’s borders. “We have been supplying Congo Goldmine MSL in the Albertine Region and we are in plans already discussed and confirmed to start supplying the United Nations and establishing markets in Sudan, Rwanda and Burundi,” he states

FOODBUSINESSAFRICA.COM

AFRICA Inc.

W W W. A F R I C A I N C M A G . C O M

Af r i c a ’s b u s i n e ss a n d te c h n o l o g y m a ga z i n e COMPANY FEATURES, NEWS, SPECIAL REPORTS AND ANALYSIS TARGETED AT THE KEY DECISION MAKERS IN AFRICA’S INDUSTRY, GOVERNMENT & MORE Manufacturing & Retail

Finance & Insurance

Education & Training

Aviation, Transport & Logistics

FOODBUSINESSAFRICA.COM

Construction & Real Estate

Telecom, ICT & Media

Energy, Oil & Gas

Mining

Government/Public Services

Agribusiness & Biotech

Health Care & Personal Care

Hospitality & Services

AUGUST 2019 | FOOD BUSINESS AFRICA

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SOKO ATTA MARK 1 WHEAT FLOUR Capwell Industries Ltd - www.capwell.co.ke

Capwell Industries Ltd has added Soko Atta Mark 1 Wheat flour to its line up of wheat flour products. It is available in 2 kg paper packaging.

Ingredients: Wheat flour, Vitamins and Minerals and Food Grade Improvers.

POWERADE SPORTS DRINK Coca-Cola Beverages Africa, Kenya; www.ccbagroup.com

CCBA has introduced to the Kenyan market its first Powerade Sports Drink beverage. Available in 500ml PET packaging and a number of flavour options.

Ingredients: Water, Sugar, Maltodextrin, Acidulants (Citric acid),

Acidity regulator (Trisodium citrate, Potassium citrate), Preservative (Potassium sorbate, Sodium benzoate), Tripotassium phosphate), NaCl, Niacinamide, Flavour, Calcium d-pantothenate, Colorant (Briliant blue), Pyridoxine hydrochloride)

ZINGO POTATO CRISPS Graduate Africa Ltd. www.zingoafrica.com

Graduate Africa Ltd, has entered the snacks sector by introducing Zingo Potato Crisps. The snacks are available in simply salted, tomatoes, cheese garlic, chilly lemon, masala munch, smoky barbeque and cheesy onion flavours in 30 gram pack sizes.

Ingredients (masala munch flavour): Potato, edible oil, sugar, maltodextrin, salt, black salt, chilli, black pepper, coriander, cumin, cinnamon, mace, ginger, nutmeg, badiyan, clove, acidifying agents (E330), flavour enhancer (E627, E631), and anticaking agent (E551)

HAVE YOUR NEW PRODUCTS LISTED IN THIS PAGE FOR FREE! Do you have any new product innovations you would like to see on this page? Please send us the pertinent details about the product and you may see it listed here for FREE in a future edition of the magazine.

What we require to list a product on this page: • • • •

High resolution photos of the product or send us a product sample Brand name of the product and product category Types of SKUs available and Varieties (e.g. flavours) available Brief description of the product covering target market, unique product profile, nutritional 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 on +254 725 34 39 32.

50 AUGUST 2019 | FOOD BUSINESS AFRICA

BIO FRUIT ON THE BOTTOM WITH SERVING SPOON Bio Food Products - www.biofoods.co.ke Bio Food Products adds convenience to its Fruit on the Bottom range of yoghurts by adding a spoon inside the cap that enable consumers to easily serve the yoghurt any time, any where.

FOODBUSINESSAFRICA.COM

NEW PRODUCTS INNOVATIONS

HUNTER'S GOLD CIDER Kenya Wine Agencies Ltd - www.kwal.co.ke

Kenya Wine Agencies has introduced Hunter's Real Cider Gold, with 4.5% alcohol by volume to tap into the rising local demand for cider.

Available in 330 ml glass bottles.

Ingredients: Water, Fermented Apple Juice, Sugar, Apple Juice Concentrate, Citric acid, Flavouring, Colorant (E150c), Preservatives (Potassium sorbate, sulphites)

REAKTOR ENERGY DRINK Bidco Africa Ltd - www.bidcoafrica.com

Bidco Africa has introduced Reaktor Energy drink into the Kenyan markat. Available in 300ml PET packaging.

Ingredients: Carbonated Water, Sugar, Dextrose, Acidifier (Citric acid E330), Acidity Regulatro, Sodium citrate (E334), Taurine, Flavour, Caffeine, Preservatives (Sodium benzoate (E211), Potassium sorbate E202), Colourings (Caramel color (E150d, Tartrazine E102), Inositol, Ginseng Extract, Vitamins B3, B5, B6, B12

KENOODLES INSTANT NOODLES Baraka Kenya Ltd - www. keviankenya.com

Baraka Kenya Ltd has introduced Kenoodles, a brand of instant noodles available in 100 grams and chicken flavour options.

Ingredients,

Noodles: Wheat Flour, Edible vegetable oil (Palm), Salt, Acidity regulator (Potassium carbonate, Sodium polyphosphate, Sodium carbonate), Thickener (Natural gum), Colouring (Riboflavin), Antioxidant (TBHQ).

Seasoning powder: Salt, Sugar, Monosodium glutamate, Artificial chicken flavour, Yeast Extract, Onion powder and Chilli powder)

PLANET AQUA

Bidco Africa - www.bidcoafrica.com

Bidco Africa has entered the packaged water business in Kenya by unveiling Planet Aqua. Available in 300, 500 ml and 1.5L PET plastic bottle pack sizes.

Ingredients: Water.

SUN COLA SOFT DRINK Bidcoro Africa - www.bidcoroafrica.com Bidcoro Africa has introduced Sun Cola non-carbonated soft drink in aseptic carton packaging. Available in 250 ml and 125 ml.

Declaration: No preservatives, no artificial sweeteners.

Ingredients: Water, Sugar, Cola flavour, Caffeine, Acidity

regulators (Citric acid, phosphoric acid and potassium citrate), Antioxidant (Ascorbic acid), Caramel colour

FOODBUSINESSAFRICA.COM

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FOODBUSINESSAFRICA.COM

Dairy

BUSINESS

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

FrieslandCampina WAMCO partners IFDC to transform milk production in Nigeria Federal government to establish a National Dairy policy to drive sector forward

NIGERIA – FrieslandCampina WAMCO, Nigeria’s leading dairy processor, has teamed up with the International Fertilizer Development Center (IFDC) in a drive to transform milk production in the country.

This follows an agreement signed between the two firms led by FrieslandCampina WAMCO’s Managing Director, Ben Langat, and IFDC’s President and Chief Executive Officer, Albin Hubscher.

Under the agreement, IFDC will leverage on its agribusiness incubator programme, 2Scale to expand on FrieslandCampina WAMCO’s Dairy Development Programme (DPP).

The aim of the agreement is to sustainably transform and lead the local dairy sector in Nigeria by supporting the transition of local dairy farming into modern dairy farming and developing key structures required for a sustainable value chain. FrieslandCampina WAMCO and 2SCALE will be collaborating to deepen the inclusive model for local sourcing of fresh milk in Nigeria.

“As industry leader, FrieslandCampina WAMCO has established best practice models for local milk sourcing to thrive.

By signing this partnership agreement, we are demonstrating the need for partnerships in contributing to food security,” Langat said.

Over the years, the DPP has been improving the livelihood of smallholder dairy farmers, deepening the dairy market and increasing the volume of fresh milk from empowered dairy farmers.

The programme has also created employment by empowering women and youths both on-farm and off-farm which has contributed to enhancing the country’s food safety and nutrition.

Meanwhile, the Federal Government of Nigeria has unveiled plans to establish a National Dairy Policy that will help in boosting milk production as well as develop other dairy products. The new policy seeks to address challenges of the Nigerian dairy sector with a focus on infrastructure development, processing, dairy husbandry, quality control, product development, industry and sectoral cooperation.

Nigeria produces about 600,000 metric tonnes of milk per year out of a projected demand of 1.3 million tonnes, hampered by low production and a lack of infrastructure and the right policy environment in the country. The country is one of the largest importers of dairy products, for which it spends about US$1.3 billion per year.

AGRIBUSINESS

Promasidor Nigeria signs agreement with Ekiti State to improve local milk sourcing NIGERIA – Promasidor Nigeria Limited has signed a partnership agreement with Ekiti State Government to drive its backward integration initiative through the state-owned Ikun Dairy Farm.

The agreement will enable Promasidor utilise the facilities at Ikun Dairy Farm to improve local sourcing of materials for production of its dairy products, which include Cowbell and Loya. The agreement was signed by Ekiti State Governor, John Kayode Fayemi and the Managing Director of Promasidor Nigeria Limited, Anders Einarsson, in Abuja, reports This Day. FOODBUSINESSAFRICA.COM

Speaking on the agreement, Fayemi said that Ekiti State was delighted to collaborate with a major player in the fast-moving consumer goods sector that is deeply committed to the wellbeing of consumers through its array of quality products. The Governor assured that the partnership would enhance the backward integration initiative of Promasidor in compliance with the Federal Government’s directives that companies should seek local source of raw materials for their products.

He noted that Ikun Dairy Farm has a sufficient potential to serve as a source of

milk supply to produce evaporated milk and other nutritional products, as well as create more employment opportunities for the people. The Managing Director of Promasidor, Anders Einarsson, said that local source of milk collection is paramount to ease less dependence on foreign raw materials.

Established in the early 1980s as an integrated agro-allied farm to boost the economy of the State, Ikun Dairy Farm covers 1,000 hectares of land.

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INVESTMENTS

REGULATORY & POLICY

New KCC invests US$4m in Central Bank mulls ban on forex for dairy imports into expanding its Nairobi plant Nigeria to boost local production

KENYA – The New Kenya Cooperative Creameries (KCC), one of the leading dairy processors in Kenya, has officially opened its refurbished processing plant in Dandora, Nairobi as it seeks to expand its processing capacity across the country.

According to the company’s Managing Director Nickson Sigei, New KCC has invested US$4 million (KSH 400 million) to raise the capacity of the Dandora plant that will enable the plant increase milk sourcing from farmers. With an installed capacity of up to 300,000 litres per day, the refurbished plant will see the company initially doubled its processing capacity to 160,000 litres per day from 80,000 litres per day.

Speaking during the inauguration of the facility, President Uhuru Kenyatta said that the government will continue investing in the dairy sector while revealing plans by the dairy to open more of its revamped plants in other parts of the country. The President noted that the government seeks to ensure that the country meets its local dairy demand and is positioned to supply dairy and dairy products to the international market.

The dairy recently commissioned its US$1.5 million (KSH 150 million) revamped plant at the Kiganjo plant in Central Kenya that will also see the facility expand its processing capacity from 70,000 litres to 200,000 litres per day. Sigei said New KCC has so far invested about US$12 million (Sh1.2 billion) in modernising its processing facilities and is currently looking at the export market. “We are targeting today’s consumer especially the young generation through improved products and those on the go. We have 33 different highvalue products as opposed to just milk. We also produce ghee, butter and cream as well as yoghurt,” he said.

The milk processor, in which the government of Kenya is the main shareholder, has seen its turnover increased

by US$40million (KSH 4 billion) and Mr Sigei says it has risen above the tides into becoming one of the government’s biggest dividend earners.

54 AUGUST 2019 | FOOD BUSINESS AFRICA

NIGERIA – The Central Bank of Nigeria (CBN) is undertaking reforms that will restrict foreign exchange availability for dairy imports in a bid to boost local milk production, create jobs and grow the economy, throwing the industry stakeholders in panic.

The Director, Corporate Communications, CBN, Isaac Okorafor has however clarified that the policy did not mean importation of milk had been banned, reports The Punch. “For the avoidance of doubt, milk importation is not banned. Indeed, the CBN has no such power. All we will do is to restrict sale of forex for the importation of milk from the Nigerian foreign exchange market. We wish to reiterate that we remain ready and able to provide the needed finance to enable investors who genuinely want to engage in milk production.”

According to him, the country has been heavily dependent on imported milk for over 60 years, stressing that the action has serious implications on national food security, especially since it is possible to breed the cows producing milk in Nigeria.

“We therefore wish to once again reiterate our policy case as it relates to the planned restriction of access to the Nigerian foreign exchange market by importers of milk.

Nigeria and the welfare of all Nigerians come first in all our policy considerations.

Being an apolitical organisation, we do not wish to be dragged into politics. Our focus remains ensuring forex savings, job creation and investments in the local production of milk.”

A number of dairy producers have been engaging in deliberations to address challenges in dairy industry and explore the backward integration model in the sector as well as investments in ranches.

However, the operators note that adopting ranching across the nation would be disruptive to their business strategy.

According to them, a better model would be to convert pastoralist community breeds to better yielders through cross-breeding, milk collection, and the introduction of smallholder farming models across the country.

They also urged the CBN to maintain the current 5% import duty on milk raw material and access to foreign exchange should be made available to all dairy companies who have implemented backward integration with proof of onground facilities, milk collection and usage. The operators added that milk powder should remain a raw material or intermediate product as it is used locally to produce several products in the country, noting that the capacity to produce milk powder in the country is not available.

M&A

Milco SA gets commission nod to acquire South Africa’s Clover Industries SOUTH AFRICA – The Competition Commission has conditionally approved the US$343.95 million (R4.8bn) sale of South Africa’s branded foods and beverages group Clover Industries Limited to Milco SA. The Milco SA consortium, led by Tel Aviv-based Central Bottling Company (CBC) in February 2019 offered to acquire the South African company. CBC operates as Milco SA Proprietary and manufactures and distributes Coca-Cola branded soft drinks and other alcoholic and nonalcoholic beverages in Israel. It also own the Tara dairy, Israel’s second-largest milk processing dairy, produces and distributes its own brands and Muller brands, and it operates the licence for the Müller brand in Romania.

Clover said the commission had

recommended that the Competition Tribunal approve the transaction, which has elicited criticism from NGO Boycott, Divestment and Sanctions (BDS) and trade union Food and Allied Workers Union (FAWU). This led to Brimstone Investments Corporation, a South African investment firm, pulling out from the deal in which it was set to hold a 15% stake in the country’s largest dairy firm.

Clover said that the transaction, which will culminate in its de-listing at the Johannesburg Stock Exchange, is set for the tribunal’s hearing in the coming weeks. The conditions stipulated by the Commission, which Clover says are acceptable to both parties, relate to, among other things, employment and local procurement which were part of the investment case for the consortium Milco SA. FOODBUSINESSAFRICA.COM

PRODUCTION

Tanzania forecast 77% increase in milk production to 3.8bn litres by 2022

INNOVATIONS

Danone launches So Delicious ‘dairyfree’ oat milk yoghurt range

TANZANIA – Tanzania has projected an increase in annual milk

production by 77% from the current production of 2.4 billion litres to 3.8 billion litres within a five year period.

Deogratius Mlay, the Technical Director at the Tanzania Dairy Board, says that the country has rolled out a five year strategic plan through the Tanzania Livestock Master Plan (TLMP) 2017/18 – 2021/22 to support local production. The plan aims at increasing the national average annual milk production per animal from an average of 179 litres recorded in 2016/17 to 254 litres by 2021/22, reports Daily News.

“Productivity improvement interventions in the dairy cow production system will result in 31 percent increase in the average annualized milk productivity of a cow in traditional and improved family dairy subsystem, and a 26-percent increase in commercial specialized dairy,” Mlay explains.

The plan is not only expected to improve and increase the country’s dairy production but also improve red meat production.

Currently, the East African country counts 76 milk processing facilities with varying processing capacities ranging from a production capacity of 500 litres per day to over 120,000 litres capacity per day.

With additional investments in the dairy sector, it is estimated that there could be a surplus of about 0.5 million litres of milk in 2031/32. This is expected to provide raw material for domestic industries and export, after meeting domestic consumption requirements. The country’s average per capita consumption of 46 litres compared to global recommended average of 200 litres.

The sector is characterized by inconsistent milk production, reflected by declining milk productions in dry seasons, which is attributed to insufficient supply of feed and pastures. The country has, however, recorded an increase in milk demand, which has pushed spending on milk imports to US$12.78 million. Local production only contributes to 21.8% of the total annual demand.

Despite being ranked second in Africa in terms of cattle population, data from the country’s National Bureau of Statistics shows that livestock-related activities contribute only 7.4 percent to Tanzania’s gross domestic product (GDP).

STRATEGY

ADM combines origination and oilseeds businesses to accelerate growth USA – Archer Daniels Midland Company (ADM) has announced the creation of a new business unit called Ag Services & Oilseeds, which combines ADM’s Origination and Oilseed business operations in a bid to accelerate growth through value creation.

The new business unit will begin operation on July 1, led by Greg Morris, formerly president, Oilseeds for ADM. The move is part of the company’s efforts to create a simpler organisational structure to address business operational challenges in some of the markets.

According to the company, the reorganisation will enable it better to integrate the supply and value chains to deliver significant simplification and efficiency to the day-to-day business.

Last year, ADM unveiled a new business structure to help drive growth in the global grain market. The company separated its operations into four units: carbohydrate solutions, nutrition, oilseeds and origination. The restructuring is expected to give the company greater capacity to differentiate its product portfolio, drive innovation and evolve to meet changing consumer demands. The restructuring includes relocation of its sales and commercial staff members at its milling division to its headquarters in Illinois.

FOODBUSINESSAFRICA.COM

USA – Danone North America has launched a new range of oat

milk yogurt under its So Delicious Dairy Free brand in the US. The new line of Oatmilk Yogurt Alternatives is an extension of Danone’s dairy alternatives portfolio which includes milks, frozen desserts and another oat yogurt brand called Oat Yeah.

It is available in four flavours: Triple Berry, Spiced Pear & Fig, Strawberry Rhubarb and Sweet Mango. The variants are made with gluten-free oats, along with live and active cultures.

According to the company, each flavor is dairy-free, nut-free, soy-free, certified vegan, certified gluten-free and Non-GMO Project Verified.

“We couldn’t be more excited to expand our portfolio and bring Oatmilk Yogurt Alternatives to consumers from coast to coast,” said Joshua Cook, brand manager of plant-based yogurt for So Delicious Dairy Free. “Oatmilk’s creamy texture is the perfect base for a yogurt alternative, and each of our artisanal flavors have been thoughtfully chosen to excite taste buds. The new Oatmilk Yogurt Alternatives are perfect for a morning breakfast, an on-the-go snack or as an ingredient in other delicious dairy-free delights.”

The new product follows the recent launch of Oatmilk Frozen Desserts crafted with smooth oatmilk and blended with delicious flavours. Danone is expanding its dairy alternatives category, set to rapidly grow as a result of continued consumer inclination to healthier drinks.

Oatmilk is especially becoming popular in the global alternative dairy market and is set to reach US$34 billion by 2024, according to ReportBuyer. The dairy giant joins other food companies that have joined the race to meet the rising demand for oat drink beverages, including PepsiCo, which launched its Quake Oat beverage in 2018, Swedish firm Oatly and HP Hood with its Planet Oat brand. Euromonitor reports that the US market for oat beverages hit US$2.11 billion in 2017, growing 61% since 2012, driven by positive consumer perception of oats for their health. However, almond, soy and coconut milk still dominate the alternative dairy market in the US with a 89% share.

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TRENDS

INNOVATIONS

25% of British consumers Muller invites people to create their own Muller yogurt are using plant-based milk their favourite product. Also available were as - Mintel a choice of various fruit compotes with UK – A quarter of British consumers are incorporating plant-based milk in their diets as a result of shifting trends towards health and wellness as well as environmental concerns, according to a new study by Mintel.

The research indicates that 23% of consumers in Britain used plant-based dairy alternatives in the three months to February 2019, up from 19% in 2018. This is attributed to rising demand for alternative milks such as oat, almond, coconut, and pea, especially among younger consumers.

Also, producers are banking on this new category to bring to the market new product choices in line with changing consumer tastes and preferences. In 2018, plant-based milk alternatives accounted for 4% of volume sales and 8% of value sales of white milk in 2018 in the country.

However, the Mintel report notes that their use in cooking and hot drinks remains limited with only 25% finding applications in cooking, compared to 42% for standard cow’s milk users. 42% of plant-based milk alternatives are used in hot drinks, compared to 82% for standard cow’s milk users.

“Plant-based milk alternatives continue to make further inroads into the mainstream, with high levels of innovation activity such as the entrance of Innocent Drinks to the market in 2018,” said Emma Clifford, associate director of UK food and drink at Mintel. “Growth in this segment forms part of a much wider plant-based movement, driven by concerns around health, ethics and the environment, as well as by consumers’ love of variety in their diets.”

While cow’s milk still accounted for most white milk sales in 2018 (96%), usage of this family favourite is increasingly skewed towards older consumers, peaking at 92% among over-45s, Mintel research suggests. Use of standard cow’s milk is sliding among 16-24-year-old consumers in Britain, falling from 79% in 2018 to 73% in 2019, as 37% of this age group say they have reduced standard cow’s milk in the last 12 months for health reasons. Environmental concerns are also playing a role, with 1624s most likely (36%) agreeing that dairy farming has a negative impact on the environment.

56 AUGUST 2019 | FOOD BUSINESS AFRICA

UK – British dairy processor, Muller Milk is inviting people to create their own Muller yoghurt using various recipe combinations as a creative way of growing its dairy brand in the market.

The company has established its first ever pop up shop, Muller Corner Shop at Westfield Stratford City, London where visitors will be exposed to make 28,000 possible recipe combinations. At the shop which opened for a short time in July, visitors used a yogurt base of either Müller Corner, Müller Corner Plain or Müllerlight Greek Style Natural to create

up to 21 inclusions including pumpkin seeds, milk chocolate coated digestive balls and almonds, chocolate coated flakes and brownie pieces.

“Opening our first ever pop up shop is a hugely exciting milestone for our brand.

We want to inspire people to live happy and healthy lifestyles, and our Müller Corner Shop gives us the platform to take this to the next level,” said Michael Inpong, Chief Marketing Officer at Müller. He added that everyone knows about the goodness of dairy, and the company was showing off its flexibility by offering salad bowls with Müller yogurt dressing for the very first time.

People visiting the shop also had an opportunity to purchase and engrave a bespoke Müller spoon, which had been designed with a corner and flat edge, to make consumption of a Müller Corner easier. The shop also offered a chance for customers to create their own salads available with a Müller yogurt dressing to show the flexibility.

INNOVATIONS

Chobani launches program to support struggling dairy farmers in the US

USA – American dairy processor, Chobani has unveiled a comprehensive program dubbed Milk Matters to explore ways of supporting the dairy industry more sustainably.

In collaboration with Fair Trade USA, Chobani will explore ways of developing the first-ever standard and certification program for the dairy industry while putting the economic, environmental, and social impacts of dairy farms into consideration.

The program collaborates with World Wildlife Fund on environmental stewardship, National Milk Producers Federation and Cornell University to provide support to dairy farms.

“Proud to share our vision for the future of dairy — from cows to people to planet. It’s a small step with a big message: the future of dairy farmers matters to all of us,” said Hamdi Ulukaya, Founder and CEO of Chobani. “Dairy farms are the backbone of the communities we call home, but the current model is broken and it’s leaving consumers questioning everything, including the treatment of animals, farm workers, and the land itself.

The dairy company plans to invest US$2

million in grants over the next decade in dairy communities to promote economic empowerment and entrepreneurship. It will also fund multi-year scholarships at Cornell University and the University of Idaho for students of dairy farming families looking to pursue a degree in dairy science. It has partnered with the Cornell PRO-DAIRY program and New York State’s Dairy Acceleration Program to help farms with less than 300 cows receive funding for small projects to address specific business needs.

The company has faulted the mandate to use non-GMO feed, saying this has placed an undue financial burden on farms.

The program, set to be fully implemented by 2025, will include co-op partners, dairy farms and third-parties, state programs and community foundations in Idaho and New York. The partners will measure greenhouse gas emissions and energy use on dairy farms within Chobani’s supply chain to identify potential efficiency gains and cost savings for farmers, and as a result reduce the company’s carbon footprint.

By December 2019, the company together with its cooperative partners have pledged to comply with National Milk’s FARM Version 3.0 animal care standard.

FOODBUSINESSAFRICA.COM

M&A

Fonterra to reduce its stake in Chinese infant formula maker Beingmate CHINA – The New Zealand milk coorporative, Fonterra, has said

that it will be reducing part of its 18.8% shareholding in Chinese infant formula manufacturer Beingmate.

The company’s chief executive, Miles Hurrell, said the decision to reduce its stake in the poor perfoming entity forms part of a three-point plan to turn around the business. Fonterra booked a hefty write down on its Beingmate stake last year.

Fonterra had acquired a stake in Shenzhen Stock Exchange listed Beingmate for about US$490.5 million (NZ$750 million) in 2015 seeking to tap into the lucrative branded dairy industry in China.

“We have talked to a number of parties regarding the potential sale of our entire stake in Beingmate, but so far have been unsuccessful in finding a buyer,” Hurrell said.

However, Hurrell reiterated Fonterra’s commitment to the Chinese market saying that China will always be one the company's most important markets.

Fonterra has been undertaking a major review on its investments following the ‘disappointing results’ it posted in the last financial year ending July 2018.

In addition to a US$260.63 million (NZ$405 million) write down for its holding last year, Fonterra reported a US$126.13 million (NZ$96m loss) – its first annual loss since its inception in 2001. The results prompted the company to carry out a major financial review. The company has also offloaded its Tip Top Ice cream business and Farm Source Livestock division and reached an agreement with Beingmate to unwind their joint venture in Darnum, Australia.

“We have re-evaluated every investment, major asset and partnership to ensure they still meet the co-operative’s needs today,” said Hurrell. This started with a strategic review of our relationship with Beingmate, which has been disappointing. We then ended the Darnum joint venture with Beingmate, bought back Beingmate’s share of our Darnum facility in Australia, and entered into a multi-year agreement for Beingmate to purchase ingredients from us.

As a result of this, we are now considering selling part of our holding and, as required by local listing rules, need to pre-announce our intention,” he added, though did not specify how much it will sell.

INVESTMENTS

Kenyan firm launches commercial production of camel milk products

KENYA – Nuug Camel Milk Products Limited, a milk processing firm in Kenya, has launched commercial production and distribution of packaged camel milk products into the Kenyan market.

The company based in Nairobi is producing the products in several flavours

including vanilla, strawberry and mango.

The Managing Director of Nuug Camel Milk Products Limited, Bashir Warsame, has said the company’s camel milk plant has started production, adding that he envisions to compete with other dairy products in the country marked.

“The camel products are a space to watch as they will scale up the ladder of exports just like meat, coffee, pyrethrum and other agricultural products to become a foreign exchange earner,” he said.

Speaking at the launch of the products during recently held World Camel Day, Kenya Camels Association (KCA) national co-ordinator, Khalif A Abey, noted that the sector has so far recorded significant investments which has boosted production.

Abey disclosed that yearly turnover of

camel milk sales under KCA has surpassed US$10million (KSH10 billion) sourced from about 3.3 million camels being grazed in various parts of the country.

“Milk alone earned KSH10 billion from the sale of 340-500 million litres, which is produced formally and informaly,” he said.

According to a Business Daily report, only 15 percent of this milk reaches the market due to the hygiene issue in the collection and storage value chain in the country.

He reavealed that presently 99.9 per cent of the camel milk is marketed in the Nothern regions including Garissa, Mandera and Wajir, but Nuug Camel Milk Products Limited has started packaging both fresh and fermented products.

M&A

Milkbasket raises US$10.5 m in funding round led by Unilever Ventures INDIA – India’s leading grocery and milk delivery service, Milkbasket has raised US$10.5 million additional funding in a round led by Unilever Ventures, a venture capital and private equity arm of Unilever, reports ET Retail.

Others participating in the round include Mayfield India, Kalaari Capital, and Blume Ventures and a few Indian family offices.

The funding provides a competitive edge in portfolio as well as operational expansion against rivals such as BigBasketDaily, Doodhwala, and DailyNinja.

Founded in 2015, Milkbasket enables FOODBUSINESSAFRICA.COM

customers to order from a limited selection of grocery items and milk throughout the day until midnight, and their packages are delivered to their homes the next morning before 7am. It uses its own fleet and an app that allows buyers to place recurring orders for essential items.

“Having cracked the code of sustainable online grocery model by creating world’s first daily micro delivery supply chain, Milkbasket is proud to be serving over 100,000 households today,” said Anant Goel, co-founder and CEO of Milkbasket.

“While the industry is witnessing a number of players adopting our model, this funding,

our largest fund infusion till date, is a testament to our robust execution, the team and continued trust of our investors in the growth of Milkbasket." The micro-delivery startup which is present in four cities across India says that 70% of its revenues come from non-milk grocery products and has seen a growth rate of close to 20% month-on-month. Last year, Milkbasket raised US$7 million in a Series A round of funding led by Kalaari Capital and earlier in the year had secured another funding from Unilever. The company is estimated to have raised close to US$26 million so far.

AUGUST 2019 | FOOD BUSINESS AFRICA

57

INNOVATIONS

Egyptian dairy farm to invest US$25m, double milk and yoghurt production

EGYPT – Egypt’s largest private sector farm, Dina Farms, has said has announced a new wave of investments in its dairy farm and its associated segments, including animal feed, worth EGP 400 million (US$24.4 million) in the next 3 years.

The company has revealed that is is entering a new phase of aggressive growth and restructuring that has seen the company double its milk production capacity plus an

upcoming new yogurt production line that will double its yoghurt production capacity.

As subsidiary of Egyptian Stock Exchange listed Qalaa Holdings, Dina Farms has an agricultural footprint of about 10,000 acres and a heard of 17,194 heads of pure Holstein cattle and is currently focusing on four integrated business sectors: agriculture, livestock, dairy manufacturing, and a farm retail outlet called ElShadr.

The company plans to continue growing

its herd over the coming period and is undertaking several initiatives to improve its productivity in milk production, including the installation of curtains and cooling systems at its milking stations.

It explains that this investment drive will continue over the coming years and will substantially improve the company’s overall performance, once completed.

The firm adds that ICDP, its subsidiary that markets and distributes fresh milk products, has experienced steady growth since its establishment in 2010, becoming the the leading market player in its category, controlling about 70% of the fresh milk market in Egypt.

The company adds that priority is also being placed on investments in the dairy firm’s agriculture segment with plans to start to process animal feed internally, with a target of achieving 85% self sufficiency by 2020.

Dina Farms was originally acquired by Qalaa Holdings in 2007 and has become Egypt’s largest producer of fresh milk.

The diary farm was originally established in 1987 with 300 Holstein Friesian heifers and will grow to include 17,194 heads of cattle and 8,529 milking cows by the end of 2019.

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info@foodworldmedia.net 58 AUGUST 2019 | FOOD BUSINESS AFRICA

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TRENDS

FOOD SAFETY

OPERATIONS

FORMULATIONS

REPORT

Dairy consumers push manufacturers to go clean on their products

By Francis Juma oncerns by consumers about the foods they eat due to increasing cases of food scandals and a general trend towards wellness by consumers in Africa is beginning to make a dent on how dairy products are formulated – and which ingredients to use.

Even as Africa grapples with low incomes and poverty in many households, as urbanization takes hold across the continent and the consumer is getting more exposed to the latest worldwide trends, consumers are getting more informed about what is inside the products they consume and are taking a keener look at the label of food products, including dairy, before they make their purchases, as they seek more natural, cleaner label and healthier options.

A National Consumer Survey carried out by research company Packaged Facts in 2017 revealed that more than 30% of younger consumers between 18 and 34 years say they are paying more attention to product claims and nutritional information for plant milks, cheese, and dairy milk, among other products.

While there is no universal definition of what constitutes natural, clean label and healthy products, dairy companies have joined the worldwide phenomenon of producing products that are deemed by consumers to be better for them. One area that dairy companies have lately focused on is the elimination of preservatives from their dairy products, especially yoghurts.

Others have adopted the use of natural flavours and colours to meet consumers’ willingness to pay for dairy products they feel are as near as possible to the real milk they know.

C

Consumers want less for more Research firm Global Data in a 2015 survey of 27,185 people in 31 countries found that when asked what the term clean label means 36% are free from artificial ingredients, while 34% said that are natural/organic and another 34% did not know what the term meant.

Around the world, the study also showed that consumers have unique ways of describing clean label products, including absence of pesticides, chemicals or toxins (31%); free from allergens (24%); without GMOs (23%); minimally processed (16%), simple/short ingredient lists (11%) and transparent packaging (7%).

A study in July 2019 by Innova FOODBUSINESSAFRICA.COM

Market Insights revealed that new flavor development and innovations are largely driven by growing interest in natural, clean label and healthier options. Global flavor developments in food and beverage are characterized by consumer research as manufacturers look to address the changing tastes and preferences.

Ingredion, a leading supplier of clean label starch solutions says that for manufacturers using a clean label positioning means using ingredients that are generally accepted by consumers – those that they might find in their kitchen cupboards. The ingredient list should be short, simple and feature minimally processed ingredients where possible. It should not include names that sound like chemicals or E-numbers.

Dairy companies come to the fore Delia’s All Natural ice cream, a brand by Kenyan ice cream company Sunpower Products, is one such example of brands that have taken the clean label route. Ice cream is infamous for its extremely long ingredients lists. This brand is the first one available in the Kenyan market with just 5 ingredients, following on from other countries around the world that have dared to shorten the ingredients in ice cream. The company uses only milk, sugar, eggs, double cream and acacia gum. “We think ice cream should be pure and taste as fresh as possible with no colouring or E numbers. That is why we choose to use only the simplest ingredients . . . Five ingredients are all you need when you start with quality ingredients,” it says on its website. Delia’s is not alone. The region’s largest ice cream manufacturer has replaced artificial colours, adopting natural ones in some of its products.

South African retailer Woolworths’s yoghurts range has no preservatives, while Eastern Africa’s largest dairy operator Brookside Dairy has over the last two years removed preservatives and also adopted the use of natural colours and flavours on its Delamere and Fresh Dairy yoghurts in Kenya and Uganda to meet the rising need by consumers for cleaner label products. Specialty dairy products maker Bio Food Products touts its products as being free from antibiotics, inhibitors and contaminations and has also adopted the usage of natural colours and flavours in most of its products.

Ingredients suppliers respond At the industrial level, functional ingredients are important inclusions in dairy products, serving several functions including prevention of whey separation (syneresis), boosting mouthfeel and texture, improving viscosity, extending shelf life, improving whipping properties and improving consumer’s eating experience, with some functionality quite difficult to achieve without these additives.

The move by dairy companies has seen a strong response from suppliers of ingredients who have introduced food additives, be they texturisers, emulsifiers, stabilisers, colours, flavours or enzymes that can replace or entirely eliminate some of the ingredients consumers no longer want to see on product labels.

Palsgaard, a Danish provider of emulsifiers and stabilisers, has developed a series of emulsifier and stabilizer blends for ice cream products which reduce the E-numbers from the common three to five to only one E-number without compromising the quality of the ice cream.

Ingredion recently introduced its NOVATION Lumina functional native starches, what it calls breakthrough clean label starches, that can enable dairies to produce ‘natural’ food and drinks while delivering optimal flavour, colour, texture and performance, replacing the widely used chemically modified starches. Particularly suitable for light-coloured applications with delicate flavours, these native starches can be used in yoghurts, puddings, dressings, soups and sauces while delivering the sensory experience consumers expect and the clean labels they seek.

Tate & Lyle, continues to innovate around their line of CLARIA functional clean-label starches empowers manufacturers to meet increased consumer demand for cleaner labels enabling formulations with similar functionality to a modified food starch and are certified as non-GMO AUGUST 2019 | FOOD BUSINESS AFRICA

59

TRENDS

FOOD SAFETY

OPERATIONS

FORMULATIONS

REPORT

The Critical Role of Drainage in Managing Listeria outbreaks

By Stefano Pisanu

T

he importance of optimising hygiene in Africa’s food and beverage manufacturing facilities was underlined following what became the world’s largest outbreak of listeria in South Africa in 2017/18. Food and beverage manufacturers are understandably looking to ensure the hygienic performance of their factories is optimised and that the risks of such an outbreak occurring again are reduced.

Yet, whether you’re an international brewer or a manufacturer of ready-meals for a major supermarket, you may be overlooking one of the most important areas when it comes to your factory’s hygienic performance: drainage.

Drainage has a big impact on hygiene Although drainage is often overlooked by specifiers and factory operators, many independent studies show that a significant amount of bacteria can be present in drainage. In fact, 70% of positive listeria screens are found in drainage so it’s critical that your drainage system is designed in a way that minimizes the risk of bacteria being harbored within it. Bacteria require water to grow so the residual amounts of water contained within drainage or on a factory floor present a potential food contamination risk. Bacteria can also travel through a drainage system and, as a result, contaminate different areas of a food processing facility. Therefore, the specification of hygienically designed drainage should be a priority for any food and beverage manufacturer, particularly with regard to the prevention of listeria outbreaks.

Listeria is hard to fight Research conducted by the University of Southern Denmark’s Department of Biochemistry and Molecular Biology in 2015 identified the three factors that make listeria so hard to fight: It’s ability to react instantly to its surroundings and environment, and deal with threats; its ability to hide from the body’s immune system by producing a special protein that makes it very hard to detect, and its ability to defend its own cells from attack by threats including antibiotics.

The University’s research underlines why it’s so important to take every possible step to prevent an outbreak of listeria and why it’s so important to ensure your 60 AUGUST 2019 | FOOD BUSINESS AFRICA

drainage is hygienically engineered to the highest possible standards.

Drainage at food facilities should be hygienically designed in accordance with best practice design principles and the latest research regarding product performance and specification. Importantly, food and beverage manufacturers should take an evidence-led approach to drainage specification.

slip-resistant grates with no mesh but are fully cast or welded are preferred to make removal and cleaning an easy and safe process without the need for inappropriate power washing. Foul air trap (FAT) also can also be incorporated, with a number of design features to further reduce bacteria harbourage potential, while all the edges of the FAT should be rounded, have minimal connections with no overlapping joints.

As you work with your supplier to identify the best drainage solution for your plant, ot is important to that the product designs and solutions suggested be based on the findings of robust academic research that will improve the drainage systems of the plant and also gives the additional knowledge you require to optimise food safety and operational costs.

More considerations Working with a drainage supplier which has a track record in the design and manufacture of hygienically engineered drainage systems for the food and beverage sector is invaluable. Drainage companies which specialize in the development of hygienically engineered solutions for the food and beverage sector should have world-class manufacturing facilities which will produce consistent high quality drainage products.

Importantly, they should also have inhouse technical design teams who can provide the required level of specification advice and guidance.

Working with experts such as these is arguably one of the simplest ways to ensure that every aspect of your drainage system has been considered and the drainage system you end up with can meet current and future needs when it comes to hygiene, employee health and safety, and operational costs

Key drainage design features to look for When it comes to drainage design, there are a number of key product design features that are critical to hygiene.

For example, it’s important to ensure channels have a completely drainable dry sump with a one degree slope to prevent the build-up of stagnant water, smells, microbial growth and potential chemical hazards. Also required is a deep drawn body with smooth contours, which eliminates crevices that can harbor bacteria. Thirdly, a completely smooth stainless steel surface and a continuous welding of joints, and radiused corners with a minimum radius of 3mm must be observed.

For optimum hygienic performance,

Stefano Pisanu is the Country Manager East & West Africa at ACO Drainage Systems

FOODBUSINESSAFRICA.COM

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

M&A

Chandaria Group invests in Kenya’s food startup Savannah Brands

KENYA – Chandaria Group’s investment arm, Chandaria Capital, has invested in Kenyan food and beverage start-up, Savannah brands, as the first investor in the company’s seed funding round.

Chandaria Capital backing marks an important milestone in the Nairobi-based food and beverage company, which launched its products in the Kenyan market in 2018. The seed funding will accelerate Savannah’s ambitions of aggressively taking on the African food and beverage market through the innovative launch of

a variety of product ranges in the juice, cider and snack categories.

Savannah, led by its Founder and CEO Alexandra Chappatte, produces a range of snacks, drinks and teas from locally sourced materials under the brand name Nairobi Nibbles – which prides of providing tasty and healthier alternatives to confectionary and crisps. The company also produces a range of beverages under the brand Kenyan Originals including alcoholic ciders and nonalcoholic iced teas such as Lime & Ginger Cider and Hibiscus & Lime Iced Tea. Alexandra has a decade of brand building experience across Africa and in the United Kingdom, working with multinationals like Nestlé, AB-InBev and Pernord Ricard in developing some of the globally reputable brands such as Kit Kat, Stella Artois and Jameson.

Darshan Chandaria, chief executive of Chandaria Group who is also the founder and Managing Partner of the Chandaria Capital shared the company’s pride in supporting the African start-up.

“The importance for Africa to create and manufacture successful Brands cannot be understated. We are proud to be associated with Savannah Brands, a company that offers consumers authentic African flavours, quality African branded products.”

In 18 months, Savannah Brands has managed to launch 3 new product ranges in a market with its products present in some of retailers in the country and it continues to build its distribution network.

M&A

South African Breweries gets nod to acquire Diageo’s Smirnoff RTD franchise rights

SOUTH AFRICA – The Competition Commission has conditionally approved South African Breweries’ (SAB) bid to acquire the franchise rights to Diageo’s Smirnoff ready-to-drink (RTD) brands in South Africa.

This will see SAB, South African subsidiary world’s largest beer group – AB InBeV – manufacture, market, distribute and sell Smirnoff Storm, Guarana, Spin Cooler, Pine Twist and Berry Twist FOODBUSINESSAFRICA.COM

excluding Smirnoff vodka. The acquisition of the brands will add the RTD range to SAB, which is already a major producer of flavoured alcohol brands (FABs), which are similar to RTDs, under the Brutal Fruit and Redds brands.

According to an update by Business Day, the commission gave its approval, although it noted the deal raises a number of competition concerns. “The FABs market is a highly concentrated one in SA with Distell being the outright dominant player, and the proposed merger will likely create further concentration in this market,” the commission said in a statement.

The commission said the merger will substantially alter the structure of the FABs market as it is essentially a combination of the second (SAB) and the third (Diageo) largest players in the FABs market.

Despite its concerns, the commission

said it found that, on the whole, the proposed transaction is unlikely to distort competition or have any notable effect on the prices of Diageo and SAB’s FABs because of competition from other brands.

According to the commission, the transaction is unlikely to substantially negatively affect the businesses of Diageo’s input suppliers because the Smirnoff RTD products account for approximately 10% of the market for the manufacture and supply of FABs. The commission also said the merger offers tangible and significant efficiencies that are likely to benefit consumers “including the increase in volume of the Smirnoff RTD products and the implementation of a returnable bottle policy,” with a number of conditionalities imposed on the transaction, including continuing to brew Guinness beer in South Africa.

AUGUST 2019 | FOOD BUSINESS AFRICA

61

INNOVATIONS

Nigerian Breweries launches new Legend Extra Stout size to expand market NIGERIA – The Nigerian Breweries (NB) Plc has introduced a new 450 ml bottle of its leading stout brand, Legend Extra Stout, as it seeks to expand its market penetration.

According to the Portfolio Manager, National Premium Lager at NB Plc, Sarah Agha, the rich history of Legend Extra Stout is one that is replete with innovation because the brand continuously focuses on optimum consumer satisfaction.

Sarah added that the new bottle affirms the unique positioning of Legend Extra Stout as the ‘unique bitter tasting stout of choice for the sociable, modern, ambitious and courageous Nigerian who is yearning to enjoy the finer things in life.’

“Consumers can be rest assured that the 45cl bottle remains the same full brewed stout, produced from the finest ingredients, brewed and bottled under the highest quality standards,” she noted.

TRENDS

South African Breweries eyes low and zero alcohol beers market NIGERIA – South African beer market is slowly taking up a growing global trend of consuming no- and low-alcohol beer (Nablab) categories, says South African Breweries (SAB).

Zoleka Lisa, vice president for corporate affairs at SAB, notes that as an increasing number of people around the world were passing up on their traditional alcoholic beverages, South Africa was no different. She says that the company will innovatively focus on aligning its products with the changing consumer trends as it further cements its position in the country’s alcoholic beverage market.

Among no and lower- alcohol beer brands available in South Africa under the SAB stable are Castle Free and Becks’ Blue, while Hansa Golden Crisp, Flying Fish CHILL LITE, Castle Lite, and Lion Lager all contain not more than four percent alcohol.

Low alcohol beer is generally considered to have an ABV of 3.5% or less; while no alcohol is 0.0%-0.5%, depending on the market.

AB InBev, the parent company of SAB, targets 8% of its global beer volumes from no and low alcohol beers, working towards a goal of reaching 20% by 2025.

62 AUGUST 2019 | FOOD BUSINESS AFRICA

LOCAL SOURCING

Tanzania Breweries commits to improving local barley productivity TANZANIA – Tanzania Breweries Limited (TBL), a subsidiary of AB InBev, has pledged to support barley farmers while encouraging them to adopt modern technologies and practices that will increase efficiency and productivity.

Speaking during the Barley Growers Day’ organised by TBL in the Nothern regions, the company’s Barley Manager, Joel Msechu, reaffirmed that the company will continue to deploy various interventions aimed at improving productivity.

“To empower farmers, TBL offers farmers with sufficient inputs and information to increase productivity while actively reducing environmental impact.

We are strongly committed to Tanzania and through Barley Growers Day we plan to continue our outreach towards sustainable farm practices and we will continue to reach out to the farmers through this initiative to ensure more barley is procured in Tanzania in the next few years,” he said.

He encouraged farmers to adopt the latest farming technology and practices for better productivity and promised that the company will continue to empower farmers in the country. “We can’t solve our

sustainability challenges on our own and strongly believe with the right partnerships we can have a bigger impact on the field,” he added.

TBL Group collaborates with farmers to improve barley productivity in the country by introducing new varieties of seeds to help them grow commercial variety of barley suitable to the soil and climatic conditions of Tanzania. During the event, the company showcased high yielding varieties of barley and facilitated training of farmers by agriculture experts. The initiative also extended AB InBev’s global programme ‘Smart Barley’ to the farmers.

The Smart Barley initiative is aimed at transforming agriculture by leveraging data, technology and insights to help growers solve challenges and improve their productivity, livelihoods and environmental performance.

Local sourcing of barley has enabled the company lift its pre-tax margins which grew by 85 per cent to US$91.34 million (TSH 210 billion) during the financial year ending December 2018 from US$46.55 million (TSH 107 billion) recorded in 2017.

REGULATORY

Rwanda introduces tax breaks for alcohol brewed from locally-sourced materials

RWANDA – The government’s proposal to reduce consumption tax on alcohol beverages brewed using locally sourced raw materials has received approval from the Members of the Chamber of Deputies.

The MPs passed the draft law, which reduces the consumption tax rate on beers and wines made using locally produced raw materials. The new law complements the current consumption tax law, which doesn’t categorize the tax rate for wines or beers based on the origin of raw materials, a report by News Times reveals.

Once published in the Official Gazette,

the approved law will lower duties levied on beers whose local raw material content, excluding water, is at least 70 per cent by weight of its constituents. The excise tax on the beers and wines will be set at 30 per cent, down from the 60 per cent rate.

These rates will be maintained for alcohol beverages brewed using imported raw materials. (An excise or consumption tax is an indirect tax -levied to a producer or merchant but transferred to the consumeron the sale of a particular good or service).

The Finance Minister, Uzziel Ndagijimana said that the move is in line with the government’s policy to promote domestic investment and reduce imports adding that “it will help spur domestic investment by giving Rwandan farmers a market.’

Ndagijimana argued that once the amendments to the consumption tax law are published, big brewers in the country like SKOL and Bralirwa would be encouraged to use locally sourced cereal agricultural products.

FOODBUSINESSAFRICA.COM

INNOVATIONS

Coca-Cola to launch Costa Coffee in ten European markets in 2020

SWITZERLAND – Coca-Cola Hellenic Bottling Company (HBC) plans to launch the recently acquired Costa Coffee in ten of its twenty-eight markets across Europe next year.

This will take the ready-to-drink coffee brand, recently launched in the UK to countries including Bulgaria, Greece,

Hungary, Poland, Romania, Russia and Switzerland. The company said the move is critical in addressing the growing consumer and customer needs across multiple channels and occasions, in line with its beverage partner vision.

“Adding a brand as strong as Costa Coffee to our portfolio will allow us to capture more consumer occasions, to partner even more closely with our customers across all channels and strengthen our ability to address every drinking moment throughout the day. Our well-established infrastructure, processes and capabilities around coffee means that we will hit the ground running with this exciting opportunity,” said Coca Cola HBC CEO Zoran Bogdanovic.

As Coca-Cola strives to become a total beverage company, it has identified coffee as a target category that will address stalling soda sales in Europe, as consumers turn to healthier beverages.

Coffee is a fast-growing beverage globally and according to CocaCola HBC, it is a multibillion-dollar category across its HBC’s 28 markets, forecast to grow 4% annually. The Coca-Cola Company acquired Costa Coffee in January for US$5.1 billion, expanding in vending and ready-to-drink products. In June 2019, Coca-Cola and Costa launched a chilled ready-to-drink (RTD) Costa Coffee, their first in the UK after the merger.

RESEARCH

Sugary drinks, including 100% fruit juices, associated with high cancer risk

FRANCE – A new study published in the British Medical Journal has associated ‘sugary’ drinks including 100% fruit juices with an increased risk of cancer.

Carried out by a team of researchers based in France, the study indicates that high consumption of sugary drinks (sugar sweetened beverages and 100% fruit juices), artificially sweetened (diet) beverages, present high risk of overall cancer as well as breast, prostate, and bowel (colorectal) cancers. The scientists concluded that sugary drinks, which are widely consumed FOODBUSINESSAFRICA.COM

in Western countries, might represent a modifiable risk factor for cancer prevention.

The survey included 101,257 healthy French adults from the NutriNet-Santé cohort study, established in 2009 to identify the relation between nutrition, health and the determinants of dietary behaviours and nutritional status. Also taken into account in the study included well known risk factors for cancer, such as age, sex, educational level, family history of cancer, smoking status and physical activity levels.

The results show that a 100 mL per

day increase in the consumption of sugary drinks was associated with an 18% increased risk of overall cancer and a 22% increased risk of breast cancer. Higher consumption of fruit juices and other sugary drinks were associated with a higher risk of overall cancer while artificially sweetened (diet) beverages were not associated with a risk of cancer.

The scientists explained the associations were related to the effect of the sugar contained in sugary drinks on visceral fat (stored around vital organs such as the liver and pancreas), blood sugar levels, and inflammatory markers, all of which are linked to increased cancer risk. It was also noted that other chemical compounds, such as additives in some sodas might also play a role in cancer prevalence.

“These data support the relevance of existing nutritional recommendations to limit sugary drink consumption, including 100% fruit juice, as well as policy actions, such as taxation and marketing restrictions targeting sugary drinks, which might potentially contribute to the reduction of cancer incidence,” read the report.

The findings add to the growing concerns around sugar in relation to cancer, all pointing to provisions that limiting sugary drinks through taxation or marketing restrictions, may lead to low cancer cases. Another separate research by Cancer Research UK has associated obesity with high cancer risks, with UK’s obese population outnumbering that of smokers.

AUGUST 2019 | FOOD BUSINESS AFRICA

63

MARKET TRENDS

Global breakfast drinks market to reach US$83.83b by 2026

USA – The global breakfast drinks market including gluten-free, starch, lactose-free, high fibre and high protein is expected to reach US$83.83 billion by 2026, growing at a CAGR of around 4.9%, according to a new report by Zion Market Research.

In the year 2018, the report indicated that the market accounted for US$57.17 million, characterized by the growing trend towards healthier beverages. Going ahead, the breakfast drinks segment will be propelled especially by demand for products that meet the nutritional requirements of consumers including minerals and vitamins.

M&A

The market is also driven by the growing health-consciousness among consumers, rising awareness about the benefits of nutritious breakfast drinks as well as rapid distribution on e-commerce platforms.

The report notes that technological advancements along with growing demand for niche market products are expected to provide new growth opportunities for the key market players in the upcoming years.

The market may, however, be restrained by consumer preference for fresh drinks over packaged ones and high product demand with low availability.

“The breakfast drinks market is fragmented based on product offering, packaging, and flavour,” noted the report.

“But the ease provided by these packaging styles has made the consumers trust these products and alter their preference.

Different product varieties are on the basis of different needs of the wide range of consumer categories.”

Leading in the breakfast drinks market is North America attributed to high income per capita of its population. Consumers in this market are said to have a preference

for quality as well as packaged products thus, experiencing increased demand for premium-priced breakfast drinks. Two in every five U.S. consumers are replacing their breakfast with nutritious and formulated drinks, notes the report.

In Europe, the breakfast drinks market is expected to register a moderate rate of growth due to growing demand for formulated supplementary drinks, the presence of several key players, and growing number of gyms and yoga centers.

This market will be boosted by Germany where, according to the report, breakfast is considered as the most important meal and most of the consumers have substituted it with these healthy drinks.

In Asia Pacific, where urbanization is rapid, the market is expected to record significant growth due to convenience offered by the drinks. China and India will dominate the market as consumers adapt to nutritious health options. China, South Korea, and other Southeast Asian countries are quickly adopting formulated supplementary drinks for breakfast.

AB InBev to sell Aussie biz to Asahi Group for US$11.3b, cancels huge Asian IPO AUSTRALIA – AB InBev has agreed to sell its Australian business unit, Carlton & United Breweries (CUB) to Asahi Group Holdings, Ltd for AUD 16 billion (US$11.3 billion), after it cancelled an earlier plan to list a minority stake at its Asian business at the Hong Kong stock exchange.

As part of the transaction, AB InBev will grant Asahi Group Holdings, Ltd rights to commercialize the portfolio of AB InBev’s global and international brands

in Australia. All of the proceeds from the divestiture of the Australian business will be used by the company to pay down debt, according to AB InBev, which have ballooned since the brewing giant’s buying of number two brewer, SAB Miller in 2016.

The company says that the divestment will further help the company accelerate its expansion into other fast-growing markets in the APAC region and globally.

The transaction is expected to close by the first quarter of 2020, subject to

customary conditions and regulatory approvals in Australia.

Even as it cancelled its potential public offering of its Asia Pacific business, Budweiser APAC, which was looking to raise up to US$10 billion, the company maintains that it continues to evaluate a potential IPO for the business, now excluding Australia, in commitment to reach a net debt to EBITDA target ratio of below 4 times by the end of 2020.

INVESTMENTS

Tolaram Group enters juice drink market in Nigeria with GoodLife Majik launch NIGERIA – Tolaram Group, a diversified consumer goods company in West Africa and producer of Indomie Noodles in Nigeria, has entered the Nigerian fruit juice market with the launch of Goodlife Majik fruit drink.

The conglomerate said that the new product, touted as a healthy fruit drink that rides on three unique selling propositions of “Healthy, Nutritious and Great Taste”, is targeted at children.

The brand comes in three variants: Orange, Watermelon & Mango and is fortified with key nutrients such as Vitamin-C and Glucose that improve immunity and provide energy suited for the nutrient requirements of the target group.

Speaking on the launch Harkishin Aswani, Managing Director, Tolaram Group, said that the new product offers a great natural taste and comes in unique and attractive packaging.

“Tolaram Group is one of the largest manufacturers in Nigeria and the group has consistently produced strong household brands 64 AUGUST 2019 | FOOD BUSINESS AFRICA

keeping in mind the consumers’ “We hope to create another success stories, the fruit drink is targeted at children with key nutrients such as Vitamin-C and Glucose that improves immunity and offers a great natural taste and comes in unique and attractive packaging,” he said.

Aswani, however, appealed to Nigerians to continue to support the group as it grows, while assuring them of its commitment towards creating another Nigerian success story with the GoodLife Magik fruit drink brand.

“There is hardly anyone in this hall who has never consumed the Indomie brand,” she said, describing it as an evidence of a brand’s success.

“It must also be mentioned that the Tolaram Group’s marketing doggedness and product innovation culture is quite admirable and strong, hence, I am confident that this latest addition,” Mrs. Bamidele Abiodun of Ogun State.

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TRENDS

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Beverages processing through hot filling technology bath cooling station that cools it rapidly to preserve the product taste and nutritional properties. The vacuum created by this rapid cooling inside the container prevents microbial growth. The cooled package can the be dried and labelled.

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iquid filling systems have evolved over time and more so in the recent decades culminating in the emergence of aseptic technology driven by consumer demands.

Manufacturers have reduced significantly the use of chemicals and preservatives in drinks and have improved the processing of beverages to achieve higher organoleptic and nutritional quality. “The entire fruit juice and sports drinks segment is growing all over the world as health awareness increases among many consumers,” states Steve Nagah, plant manager at Coca-Cola Canners, SA who have opted for a highperformance hot-filling line from KHS. Aseptic filling, hot filling and cold filling can be done with packaging containers including bottles (glass or plastic), cans, lined paperboard cartons and flexible containers (pouches).

The Technology Hot fill is a process where the product is heated and filled at a high temperature to sterilize the product and the container and closure. It is relatively inexpensive and appropriate for non-carbonated beverages and liquid food products such as fruit and vegetable juices, nectars, soft drinks, enhanced water and teas.

Products that are hot-filled have a shelf life ranging from 6-12 months. The principle of operation is similar to the gravity-low vacuum system, however the machine and its filling valves are designed to allow product recirculation in the tank and in the filling valves themselves in order to keep the constant filling temperature even in the eventuality of a machine stop.

With the hot fill technology it is possible to fill at 90°C, guaranteeing a constant filling temperature, filling level accuracy and total product recycling.

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For one to begin their hot fill technology journey, they'll need to obtain a highly knowledgeable person(s) who can advise on the right solutions for the products to be filled.

With preservative free drinks increasingly becoming a marketing key to a fickle, demanding and ever aware consumer, hot filling provides the advantage of eliminating the need of preservatives and chemicals. This technology does maintain the same level of shelf life and nutritional attributes of the beverage. Consequently, hot filling has gained traction as the go to technology in its segment of applicable products. It is also rather simple and less complex compared to its alternatives.

The Process Each step in hot filling is geared towards maximizing the benefits of shorter filltime and extended shelf life without preservatives.

The beverage is pasteurized and heated to the hot filling temperature between 190 – 203 F (90 – 95 C) in a heat exchanger for at least 15 – 30 seconds to kill all microbes in the product.

The product is filled at the filling station after cooling to around 180 – 185 F (82-85 C), with introduction of nitrogen into the head space to rid oxygen in some cases, to curb oxidation. The nitrogen also increases the interior pressure and balances the shrinking behaviour – even when it comes to light-weight containers. The closure is then applied immediately after. The process will sterilize the inner walls of the container.

To sterilize the closure and the neck, the container is either tilted on to one side or inverted for the hot product to contact the inside surface of the closure.

The package is then rolled to a water

Hot Filling Considerations With its obvious advantages, however, hot-filling requires heavy bottles (“Heatset PET”) that will withstand the hotfill temperature; they are more expensive including the equally heavier cap. These bottles are specifically made to withstand hot-fill temperatures, in some cases up to 192 F (92 C), while maintaining clarity and lightweight characteristics. If the process parameters are not optimized it may defeat its intended benefits and result in cooked flavors, inferior nutrition and altered color.

The process also has pH limitations; the process works best with low pH products (below 4.5) that have been chemically neutralized. Products with a pH of 4.6 or higher are subject to multiple spores and therefore not considered safe. An acid level below 4.6 will ensure that bacteria will not grow in the remaining spores.

It is also worth putting in perspective the operational costs of a hot-filling system.

There are several cost considerations, apart from the heavier container that is more complicated to produce compared to traditional PET, the energy required for repeated heating and cooling cycles can be expensive. This is also an environmental impact as heat and energy are being expended at higher rates.

In summary, hot-filling is a good choice for hygienic filling of many fruit and vegetable juices, water enhancing and tea drinks as it eliminates the need for preservatives, while preserving ambient temperature shelf life of 6-12 months; an estimate. The duration is actually determined by the oxygen barrier sensitivity of the beverage, size and type of beverage bottle, and storage conditions (food or beverage may remain subject to degradation or spoilage if exposed to water or heat in other areas of the packaging, transportation or storage process). Hot-fill compatible containers are now readily available making the process more feasible than before.

Additionally, with the capability for shorter product runs, hot filling process can be accessible to smaller businesses who equally need to provide products with a decent shelf life that don’t spoil AUGUST 2019 | FOOD BUSINESS AFRICA

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Critical considerations in burner and boiler combination

By Markus Tuffner

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he need to save energy and reduce emissions makes boiler/burner capacity optimisation unavoidable.

The best setup helps to keep boilers operating for decades with low damage and maintenance levels. The importance of diligently identifying the actual capacity required and covering this using several individual boilers with a pooled output receives far too little attention. The following suggestions indicate how the operating performance of boiler systems can be effectively improved.

Boiler units and their individual outputs can only be classified according to expected minimum, maximum and medium loads.

Operating safety aspects are also important in this regard, but should not be the only criteria.

Renewal of old systems with unchanging consumption criteria If a boiler system is only being changed over for reasons of age or modernisation or due to adjustments for environmental protection regulations, the load diagram is usually known. If this data is not available, it is worth identifying the actual energy need over representative periods of time before planning begins. The periods when least energy is needed (e.g. weekends and nights in summertime) and also of peak energy consumption (e.g. cold winter days when at maximum production) are important in this. Records and research on the speed in which the need for energy changes (e.g. sudden peaks in energy need) should also be

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actual need. These reserves included in the calculations should be researched in discussions. If there is a way of finding out information on already connected devices and their actual energy needs from other operators, this should be followed up on.

However, the involvement of reputable suppliers of individual components and consideration of expansions that may be subsequently planned are a prerequisite for specific dimensioning of the overall boiler system. Unless an increase in capacity has already been definitively planned in advance, conceivable additional potential in the future should be taken into account when designing the network and the size of the boiler house, but not when dividing up current overall capacity across boilers.

kept. If the criteria mentioned are recorded or known, the maximum states of the heat medium that are actually required should be checked. Any unnecessary increase in the supply flow temperature in the case of hot water systems or the steam pressure in the case of steam systems represents avoidable costs and ineffective operation from the outset.

Old existing heating networks often have excessive design temperatures and pressures and should be reduced to what is needed, provided the installed lines and consumers allow for this.

If there are peak consumers with scheduled programs, the extent to which it makes sense and is possible to intelligently link the control of the consumer which triggers the energy need and the boiler control should be checked.

In many cases, the size of an overall boiler system can be reduced by early reporting the load demand to the boiler system through external impulses and thus the boiler system being switched to standby mode. If sudden peaks in consumption only arise at short notice or at greater intervals, the extent to which it makes sense to store energy using gravity or hot water accumulators should be checked.

New planning It can be said from experience that new planning very often results in overdimensioned boiler systems as planners, manufacturers, component suppliers and operators often add on a bit to the

Heat is primarily needed for heating purposes Unlike production heat, the actual load request in respect of heat for warmth is determined by the weather. The range of load requests is usually significantly larger and less defined than that of production heat systems. While boiler systems are partly only kept in operation at the height of summer to cover the need for hot water for domestic use, the entire heating capacity is required with sufficient operational safety on cold winter days.

When determining peak capacity, it should be noted that this is usually only needed on a few days a year. If necessary, only an emergency operation with reduced heat may be available and have to be accepted if a boiler or burner fails. However, it must be ensured that system parts and network components never freeze.

Greater care should also be taken when determining the minimum capacity of the smallest boiler. Sufficient certainty when determining the temperature, both in relation to the maximum heating temperature required by the consumer and the temperature spread, is particularly important here for interpretation purposes for possible sequence control, etc.

The greatest outflow of heat from the heating station occurs in winter when consumer groups are switched from nighttime reduction levels to daily operation. If these deactivations are not scheduled well apart from one another, there is usually a peak requirement in the early hours of the morning which vastly exceeds the design capacity of the heating system. This should be prevented at all events through intelligent FOODBUSINESSAFRICA.COM

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heating control planning and staggered schedules for switching on the individual consumer groups. Possible reductions in temperature following changeover in the network until the boiler system has “caught up” again should be accepted here also.

Requirements in respect of the total system If sufficiently certain data is compiled, the total energy capacity can be identified.

Division of the total system into several individual boilers Standby systems are generally no longer being installed nowadays as the costs for these and standby losses are too high.

Because of this, it should be ensured that the boiler system can continue to operate, even at limited capacity, if the largest individual unit should fail until the fault or defect can be rectified.

In any case, it is worth dividing the system into at least two boiler units. Using the previously calculated energy needs diagram, the smallest boiler should provide the basic load at night or at weekends in the summer to ensure a minimum of burner shutdowns. This boiler is also used as the peak load boiler when the need is greatest, usually winter mornings.

If there is a greater need in heating stations to provide heat for warm water in surges in summer also, as is usual with barracks and production companies for example, the minimum boiler capacity should be designed to safely provide this capacity. In individual cases, the inclusion of heat accumulators as a buffer has proven itself successful.

In the case of small systems (total thermal capacity < 4 MW), it is worth using simple sequence controls across staggered temperature/pressure ranges. Better, and by all means recommended for larger systems, is sequence control regulated via heat and steam meters which facilitates optimal load matching. However, there are often compromises due to the considerable costs of such equipment and these can prove very disadvantageous subsequently.

Conclusion The control concept must be known when the total system is being planned – particularly in the case of thermal heating systems.

Burner allocation It is important to determine a boiler’s minimum load requirement when selecting a burner. 40 – 60 % of the nominal output is the minimum output in the case of 2-level burners, approx. 35 % in the case of 3-level burners, and it can be even lower in the case FOODBUSINESSAFRICA.COM

of continuously variable burners. Smaller boilers up to approx. 2 MW primarily have 2-level or 3-level burners. A lower basic load is not achieved here with continuously variable burners, but the additional costs for the burner, maintenance and adjustment are significant. Larger boiler units with a burner output of 2 MW upwards work well with continuously variable burners, as the turn down ratio is larger compared with 2-level and 3-level burners.

If a boiler’s nominal output is fixed and there is no downward margin, a burner type which is actually too big would be used in many instances. On the other hand, in a case where nominal output is only fractionally reduced, the next smallest burner already offers a considerably extended turn down ratio with a more favourable minimum output. Therefore, there should be more attention paid to adjusting the boiler output to the burner’s power range, particularly if a total system consisting of several boiler units is to be designed.

The ultimate decision on the burner and its fan must be taken such that the burner will be operating at its upper capacity limit when the boiler is at full load, taking all of the components in the flue gas flow into account. In the low-load range, this facilitates extensive down-regulation of the burner and avoids frequent start-ups and shut-downs (the furnace has to be flushed with fresh air before each burner re-ignition due to the risk of explosion). The air that has to be warmed up in the boiler is then lost via the chimney.

Accordingly, the boiler supplier should not be required to use any particular burner type so that it is possible to perfectly optimise the boiler, built-in parts in the flue gas flow, burner, fan and control. Individual boiler outputs within the overall capacity should also be variable with regard to burner optimisation.

In principle, the boiler manufacturer should be allowed a tolerance of ±10 % of the total capacity. Optimised troublefree operation over many years can only be assured if this margin is given. Here is an example of this (see diagram): A steam boiler (1) with a nominal output of 5,000 kg steam/h was increased by retrofitting an ECO in its resistor on the firing side (2), so that the next largest burner would be needed in theory. A reduction in the maximum boiler output by 3 – 4 % facilitates (3) the retention of the burner used to date with the effect that a control ratio of 1 : 4 as opposed to 1 : 2.8 is achieved – along with all of the other advantages alluded to.

However, things may differ significantly in practice as the characteristics are averaged values. This also includes the

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previously justified tolerance of ± 10 % of the total capacity. If no margin is accepted, a potential capacity reserve, particularly in the choice of burner, will have to be put up with from case to case to the detriment of operation and cost optimisation. However, optimisation is continuing to increase in importance, especially in relation to the environmental protection required of new components which overlie the burner and limit its flexibility. Thus, burners equipped with flue gas recirculation units, for example, are usually only turned off and then started up again up to 4 times per hour, which has significant consequences for the planning and subsequent operation of a boiler system.

Summary When planning an energy system, more criteria have to be taken into account nowadays than ever before. Past errors must be recognised and avoided.

Choosing the right division of capacity across several boilers with coordinated burners is particularly important. If there is a deficit in planning in relation to this, this will be reflected in additional fuel requirements due to unnecessary start-ups and shut-downs and greater environmental effects.

Over-dimensioned systems increase the wear and tear on components which is greater the more frequently the burner is turned on and off and another boiler has to be switched on and off.

Operating safety is reduced as each process of switching on and off a burner places high demands on the monitoring equipment (e.g. flame detectors) under the pretext that a system should be switched off when in doubt.

Tenders and requests should indicate boiler outputs and tolerances.

An over-dimensioning of the burner signifies restricted control behaviour with all of the disadvantages mentioned.

Many boilers are operated over decades.

The firings and control units, on the other hand, must be updated in intervals of 5 – 10 years at least, if not completely replaced.

Therefore, an envisaged subsequent increase in the capacity needs should be taken into account right now in the choice of boiler size as there are practically no disadvantages to this. Burners, on the other hand, should always be chosen so that they can be replaced if needed if there is an increase in needs, something which is no trouble for practically all industrial and municipal heating boiler systems

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How 5G Could Improve Food Traceability

By Thomas Burke

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high-speed backbone can enable new technology and automated data collection across the entire supply

chain.

When consumers think about the benefits of 5G networks, they typically focus on faster speeds and more reliable connections for smartphones. But 5G networks could also enable the food industry to share greater insight into food’s journey from farm to fork while simultaneously lessening food safety concerns.

5G networks have the potential to enable dynamic, end-to-end food traceability – thanks to an ability to connect to many low-power devices, like embedded Internet of Things sensors at the same time.

As a result, the food supply chain will be able to further modernize its practices and processes, becoming super-interconnected and better equipped to leverage technologies like blockchain and AI. That will increase accountability of food businesses in the event of foodborne illness outbreaks, help organizations better mitigate food safety risk and streamline costs for companies and, in turn, consumers. But with all of this promise, how do we get there?

Current landscape and challenges First, we must understand how food traceability practices are evolving in today’s landscape. In the food industry, traceability refers to the systemic ability to track the forward movement of food products and ingredients through the supply chain and trace the history of its movement back to the source. Traceability has historically been used as a business to business exchange of information that is largely focused on enabling rapid and complete product recalls. In today’s context, both the food industry and consumers are seeing traceability as a way of increasing transparency, accountability and trust across the supply chain.

Food traceability: Use cases and framework Food traceability initiatives and technologies are mainly trying to address six primary use cases: food fraud, food safety and recalls, regulatory compliance, social issues, sustainability, and consumer information. For example, food fraud is a problem that all areas of the food industry grapples with because it touches every part of the supply chain. This happens when a food or beverage product is sold in a way 68 AUGUST 2019 | FOOD BUSINESS AFRICA

that is deliberately misleading to consumers for financial gain.

One potential solution for combating the informational side of food fraud is through blockchain. It can create a more straightforward trail of data that can be used to document traceability information and therefore investigate food fraud.

Blockchain has unique capabilities and features that are especially attractive for food traceability. These include creating a distributed ledger that houses time-stamped and unchangeable records of transformation, transport, and consumption. In this way, all supply chain players have access and more equal governance on traceability data.

Historically, obtaining this information has been a lengthier process that would only occur in the event of a food safety outbreak investigation. But by digitizing records and making them easily accessible throughout the entire food supply chain, blockchain could both alleviate and streamline this process.

As promising as technologies like blockchain are for the food industry, without standards and common best practices throughout the supply chain, their

potential will remain elusive. As industry adoption of technologies like blockchain becomes more widespread, it’s critical that organizations design food traceability architectures that are responsive against the six main use cases and operational goals.

To do this, the system framework must incorporate the concepts of critical tracking events (CTEs) and key data elements (KDEs).

New technologies need new system frameworks CTEs refer to events that must be recorded to allow for effective traceability of products in the supply chain. KDEs are data inputs that allow a user to trace a product or its ingredients. Together, KDEs can track products through all relevant CTEs to provide insight into the operational goal of the traceability system. Through leveraging this CTE/KDE framework, the food industry can build traceability systems that are designed to be technology agnostic based on existing standards that maximize the potential of emerging digital technologies.

As 5G networks become the industry FOODBUSINESSAFRICA.COM

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standard, it’s critical that common data standards are set and adopted industry-wide to ensure the long-term success of emerging technologies like IoT, blockchain and AI. The CTE/ KDE framework is a good example of setting this standard to better enable technology providers to develop solutions that work across the supply chain – and enable food companies to achieve end-to-end traceability.

5G technology: What makes it different With the advent of 5G, the opportunities for disruption and innovation are significant for the food industry. A big reason will be due to how it will enable adoption of other new digital technologies industry-wide. 5G networks provide users and companies more bandwidth than ever and enable low latency data transfers for real-time information distribution. Ultimately, this provides users and devices with more immediate and reliable communications compared to 4G or even WiFi. 5G will change the nature of internet connectivity, from limited quantity and quality outside WiFi connections to universal, fast speed, gigabit connections everywhere.

Another main benefit of 5G is its low power needs compared to 4G or 3G technology, meaning it takes less power to communicate to the network. One of the biggest advantages it brings is a greater networking capability, so it has more capacity to handle multiple inputs and devices all at once. For example, a smart home has temperature sensors and activity monitors to maximize efficiency.

Similarly, a smart food processing facility takes this to a broader scale with hundreds of devices that need to simultaneously connect, interact and share data in real time. 5G makes this a reality with its greater flexibility to connect to the internet.

In short, 5G will transform internet connectivity into a much more integrated, seamless ecosystem and is useable for large scale industrial applications, including logistics and the food supply chain. As 5G is rolled out nationwide, it will allow food traceability to be modernized in ways that have remained difficult up until this point.

Foodborne illnesses and 5G Through the increased network capabilities 5G brings, food companies will have the ability to network many different IoTenabled devices at the same time. This means the promises of IoT sensors and devices will extend far beyond the production facility, making monitoring food products from farm to fork that much easier.

Food supply chains are typically difficult to monitor in a costeffective way. Consumers expect a safe, low-cost product, easily accessible at every time of the year. These factors, along with the speed needed to bring food to consumers, leave little room for technology investment for traceability systems.

And food products sometimes go from the field to a consumer’s plate in less than a week, which can make traceability efforts even more complex – and crucial. Take the recent E. coli outbreak linked to romaine lettuce earlier this year. The outbreak began in October 2018; cases were reported in 16 states and persisted through early December. The Food & Drug Administration (FDA), Center for Disease Control & Prevention (CDC) and state partners were able to pinpoint that romaine lettuce from the central coastal growing regions of northern and central California were likely the source of the outbreak.

After identifying the general geographical source, they were able to notify consumers to avoid purchasing or consuming lettuce grown in those regions. In the end, the traceback investigation revealed the strain stemmed from an agricultural reservoir on a FOODBUSINESSAFRICA.COM

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THROUGH THE INCREASED NETWORK CAPABILITIES 5G BRINGS, FOOD COMPANIES WILL HAVE THE ABILITY TO NETWORK MANY DIFFERENT IOTENABLED DEVICES AT THE SAME TIME. THIS MEANS THE PROMISES OF IOT SENSORS AND DEVICES WILL EXTEND FAR BEYOND THE PRODUCTION FACILITY, MAKING MONITORING FOOD PRODUCTS FROM FARM TO FORK THAT MUCH EASIER. farm in Santa Barbara County. Unfortunately, 62 people were infected, and 25 people were hospitalized during the time of the investigation. Thankfully, there were no deaths reported.

But foodborne illness outbreaks like this can have dire consequences. It’s a prime example of how complex food monitoring can be, and the lengthy process that traceback investigations must still undergo. How does 5G play into all of this? The technological advancement will be instrumental in enabling industry-wide adoption of technologies like blockchain. While blockchain is not a silver bullet solution for traceability, its widespread adoption would significantly help with the speed and accuracy of pinpointing the source of foodborne illness outbreaks.

The future of food traceability Food often originates from rural, low-infrastructure environments.

Access to the latest and greatest technology has been stymied in these settings due to network limitations. 5G networks are being rolled out to rural locations in addition to more urban environments, removing the historical barriers of implementing technologies like IoT devices across the entire supply chain. As food producers are able to use more interconnected IoT devices, their ability to automate and verify supply chain data including temperature, humidity, geolocators , and even molecular detection will improve greatly. These added capabilities add another level of assurance to food safety. Perhaps most importantly, they will considerably aid traceback investigation efforts, helping to quickly pinpoint the source of foodborne illness outbreaks.

5G will enable dynamic interaction between manufacturing, harvesting, food production equipment and even the products themselves. It has the potential to change the food system as we know it. 5G is essentially the backbone to making new technologies a reality. With its potential to enable greater, more automated data collection across the entire supply chain, 5G will help usher in a new era of our food system – and era built on transparency, sustainability, and safety Thomas Burke is the Food Traceability Scientist at the Institute of Food Technology’s Global Food Traceability Center (GFTC). Currently, he is a technical lead in interoperability piloting for the Global Dialogue on Seafood Traceability, an initiative funded by the Gordon and Betty Moore Foundation.

This article first appeared on RTInsights.com

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PARTNERSHIPS

Buhler and Givaudan partner to support food startups in Switzerland – Leading food technology company Buhler has joined forces with Givaudan to support food startups in commercialization as well as scaling up operations.

The companies will work to accelerate market access for food start-ups in Switzerland with an aim to bring forth disrupting solutions in the food and agricultural value chains. Selected startups and entrepreneurs will be hosted and mentored at each of their newly opened innovation centres in the country.

By enhancing access to knowledge, capabilities and global platforms, the partners will support start-ups in alternative proteins, sustainable animal feed, food safety, food fraud, authenticity, natural

SWITZERLAND

ingredients, flavours, nutrition (particularly fibre, sugar, fat and salt reduction) and gentle processing. These efforts will be complemented by Givaudan’s newly opened flagship Innovation Centre in Kemptthal, Switzerland and Buhler’s new CUBIC innovation campus.

“As part of our strategy of collaborative innovation, we are delighted to partner with Bühler to help food start-ups succeed in bringing to market solutions that address our global food challenges,” said Fabio Campanile, Givaudan head of flavours science and technology. “Our brand-new Zurich Innovation Centre provides the perfect environment for outstanding startups to collaborate and access Givaudan’s world-leading technology, expertise and

capabilities.”

“Our recently inaugurated innovation campus, the Cubic, with collaboration spaces, laboratories and technology and scale-up facilities complements the new Givaudan facility,” said Bühler chief technology officer Ian Roberts. “With our global presence, sales networks, digital platforms and brand strength, we are convinced that, together, we can offer an unrivalled scale-up partnership for startups.

Both companies are founding members of MassChallenge Switzerland, a startup accelerator with a goal to strengthen the global innovation ecosystem.

INVESTMENTS

DSM and Evonik opens US$200m fish feed facility JV in the US USA – Royal DSM in collaboration with

the Dutch industrial corporation Evonik, have inaugurated a US$200 million commercial facility in Nebraska, USA dedicated to production of sustainable aquaculture feeds.

Through the companies’ Veramaris joint venture, a 50-50 partnership between the two giants, which was formed last year to manufacture omega-3 solutions for the animal feed industry, the new facility produces omega-3 fatty acids rich in EPA and DHA from natural marine algae for sustainable salmon farming. The investment targets to reduce the pressure on wild fish stocks while addressing the growing global demand for quality and healthier seafood.

The Veramaris facility will have an initial production capacity equivalent to 1.2 million tons of wild-caught fish, or about 15% of the global salmon farming industry’s annual demand for Omega-3 fatty acid, noted the companies.

“I am pleased that together with Evonik we have reached a key milestone in turning the tide: through Veramaris, we are able to reduce the aquaculture industry’s reliance on the world’s finite fish oil resources for these vital omega-3 fatty acids,” said Feike Sijbesma, CEO/Chairman, DSM Managing Board. “This fit perfectly with our purpose-led performance driven strategy, focused on addressing the world’s biggest challenges while simultaneously

creating economic, environmental and societal value for all our stakeholders.”

According to the companies, three billion people today rely on marine fish for food, especially salmon, which is rich in omega-3 fatty acids EPA and DHA, which are vital for brain, eye and heart health.

In the partnership, DSM brings its expertise in algae production as well as fermentation technology while Evonik is a leader in development of industrial biotechnology processes including fermentative amino acids. The Veramaris production facility features zero-waste production, utilizing by-products in sustainable applications, such as biogas and cattle feed.

INVESTMENTS

Ingredion ups investment in Canadian pulse based flours producer CANADA – Ingredion, Inc. has unveiled

plans of increasing its investment in Canada-based Verdient Foods to US$185 million from US$140 million by the end of 2020.

The investment in Verdient Foods, a joint venture it formed with Verdient, will be used to build a new manufacturing facility to produce specialty pulse-based concentrates and flours from peas, lentils and fava beans.

The new manufacturing facility is expected to operational in the second half 70 AUGUST 2019 | FOOD BUSINESS AFRICA

of 2020, reports World Grain.

Once completed, it will significantly increase the joint venture’s food processing capabilities to meet the growing consumer demand for plant-based proteins.

The joint venture was established in December 2018, owned and operated by James Cameron, Suzy Amis Cameron and PIC Investment Group.

The additional investment in the Verdient joint venture marks the latest in a series of actions taken by Ingredion to spur growth in plant-based proteins.

Ingredion said it is making significant capital investments to transform the site to produce pulse-based protein isolates, which by the close of this year is expected have the capacity of producing ingredients that enhance its current Vitessence Pulse protein isolate line.

Last year, the company purchased a processing facility in South Sioux City, Neb and announced a US$60 million planned investments to grow its specialty food ingredients business in Asia-Pacific.

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SUPPLIER NEWS & INNOVATIONS INVESTMENTS

DuPont opens probiotics fermentation facility in the US

USA – DuPont has inaugurated a new state-of-the-art probiotics fermentation plant at its Rochester, New York, facility to meet the growing customer demand for healthier products.

The facility expansion is part of the US$100 million investment set aside to enhance delivery of essential health innovations while keeping pace with the changing consumer tastes and preferences.

Construction of the plant expands DuPont’s probiotics capacity as it strives

to drive innovation in health-enhancing products for food, beverages and dietary supplements industry.

“The investment in our Rochester probiotics operation furthers our strategy to provide health and nutrition science solutions to this growing market,” said DuPont CEO Marc Doyle. “With the completion of this facility, we have the largest fermenter in the world dedicated to probiotics production, which enhances our ability to provide customers and consumers with high quality, clinically-documented strains that will positively impact people’s health now and in the future.”

The state-of-the-art facility features a large fermenter for probiotics production and its downstream processing, a fully automated system of sensors and monitors

and a pressurized air technology to mix fermenting solutions. It also incorporates new bacteria freezing technology for safe storage of the probiotics that significantly increases efficiency.

As part of the plans to expand its prebiotics business in the US, DuPont targets probiotics production capacity by an additional 70% through a second phase spanning 2 years. This investment is attributed to the growing uptake and growth of probiotics, with consumers especially in North America and Asia Pacific increasing their consumption.

DuPont, which recently divested its natural colours business to DDW, has combined its nutrition and biosciences divisions to form DuPont Nutrition & Biosciences.

INVESTMENTS

Barry Callebaut breaks ground on new chocolate factory in India INDIA – Barry Callebaut has started

construction of a new greenfield chocolate factory in Baramati, India, expanding its chocolate and cocoa products offerings in the market.

The 20,000 m2 facility, said to be the company’s biggest investment in India, has an annual production capacity of more than 30,000 tons, producing chocolate and compound products. The factory is expected to be operational by mid-2020 and will include state-of-the-art assembly lines capable of manufacturing chocolate and compound in different delivery formats.

It will also be equipped with an R&D lab,

focusing on product development, research and innovations. Once fully operational, it will employ between 100 to 120 people, creating new skilled jobs mainly in engineering and production.

Barry Callebaut said this will enable it better to serve the various needs of its customers including international food manufacturers, local confectioneries and semi-industrial bakers and patisseries.

“India is an exciting market where innovation in chocolate is well received by consumers,” said Dhruva Jyoti Sanyal, Managing Director for Barry Callebaut India. “As an innovation leader, we are

proud to bring our innovative capabilities into a market where domestic chocolate production is increasing. We have experienced double-digit growth in India over the last three years.”

The investment marks Barry Callebaut’s continued expansion in India, where it runs a Chocolate Academy Center to help meet growing consumer and customer need for high-quality chocolates. With expansion in India, Barry Callebaut expects to expand its market footprint in Asia Pacific where it operates nine other chocolate and cocoa factories, employing 1,800 people.

M&A

Multivac acquires bakery equipment manufacturer Fritsch Group GERMANY – Food processing and packaging solutions provider, Multivac has acquired Fritsch Group, a German based manufacturer of bakery equipment and machines.

The deal expands Multivac’s range of solutions in the bakery industry including high-performance equipment and groundbreaking technology for dough forming and processing. The acquisition complements Multivac’s wide portfolio of packaging solutions such as packaging solutions for food, life science and healthcare products.

With the takeover of Fritsch Group, Multivac positioned to offer complete FOODBUSINESSAFRICA.COM

production lines from one source to the bakery industry as well.

“The takeover of Fritsch is another important step for Multivac in expanding our range of integrated solutions for processing and packaging food products,” said Christian Traumann, Director and Group CFO of Multivac. “Thanks to the processing solutions from Fritsch, we will continue to extend our presence in the bakery industry, where we have already been able in recent years to implement some very challenging projects for automated packaging solutions.”

Founded in 1926, Fritsch produces

small to industrial-scale equipment for bakery products customers in Germany and also in Russia, Poland, Great Britain and the USA. As part of the transaction, Fritsch will become part of Multivac and will continue its business operations as usual. The manufacture and development of Fritsch products will continue at its site in Markt Einersheim, where it also has a Technology Center featuring customer trials for new products and recipes. The company’s products will be sold via Multivac’s worldwide sales and service network.

AUGUST 2019 | FOOD BUSINESS AFRICA

71

SUPPLIER NEWS & INNOVATIONS INVESTMENTS

SIG Group to invest US$199m in new aseptic packaging facility in China CHINA – Aseptic packaging provider,

SIG Combibloc Group will be investing US$198.65 million (€180 million) in establishing a new packaging production plant in Suzhou, China.

Expected to become operational in 2021, the 120,000 square-metre site will be the company’s second aseptic cartons facility in China as the company targets further growth in Asia.

According to SIG, the new site will enable the company to bring new packaging concepts to market in line with the changing consumer habits in the region.

SIG gave an upbeat outlook for the aseptic carton packaging market in AsiaPacific, such as for beverage and dairy products, noting the region represents a

“huge opportunity.”

With the new facility, the company seeks to consolidate its share in the region, as increased spending power and a growing preference for on-the-go consumption means that consumers are increasingly consuming packaged food and beverages.

The plant will be located on the Suzhou Industrial Park in close proximity to its existing production facility and its recently opened Tech Centre. The new plant is expected to achieve world-class environmental, safety and operational performance from the start.

Rolf Stangl, chief executive of SIG, said: “The food and beverage market in Asia has seen continuous growth and is expected to continue on that path.

“Our new production plant will ensure we continue to excel at bringing new and exciting product and packaging concepts to market, quickly and efficiently. Together with our Tech Centre close by, the new plant is another pivotal moment for SIG in Asia.

“We will grow our business in the APAC region, but also expedite true beverage and dairy innovation for our customers, so they can quickly adapt to the changing lifestyle needs of Asian consumers.”

The company notes that growing populations in the region are adopting modern lifestyles in urban areas, with more on-the-go consumption as well as growing demand for high-quality nutritional food and beverage products.

INVESTMENTS

ADM names new Vice President of its North American flour business USA – The global agribusiness giant, Archer

Daniels Midland Company has named Kevin Like president, North America Flour Milling.

In this role, he will oversee all aspects of the company’s flour milling businesses in the United States, Canada and the Caribbean.

Like replaces Mark Kolkhorst, who had been president of ADM Milling since 2012 and was reassigned to lead ADM’s significant business transformation effort.

“The Milling organization is core to our entire Carbohydrate Solutions business, and there is tremendous growth potential as we launch new sustainability and organic platforms and bring our new state-of-the-

art facility in Mendota, Illinois, online in the coming months,” said Chris Cuddy, president, Carbohydrate Solutions for ADM. Like joined ADM in 1988 and has served in multiple leadership roles at the company. Most recently, he was vice president of commercial and sales for ADM Milling. He holds an MBA from Millikin University in Decatur, Illinois, and bachelor’s degrees in agricultural business and economics from South Dakota State University.

It has been a year of transition for ADM Milling, which earlier this year announced that sales and commercial staff members will be relocated to ADM’s

North American headquarters in Decatur, Illinois, U.S., from ADM Milling offices in Overland Park, Kansas, U.S. The move came against a backdrop in which ADM has told employees globally it is planning “a range of actions” to bolster its business. These include a voluntary early retirement program available to eligible employees and “realigning our organization worldwide.”

To accelerate growth, ADM combined origination and oilseeds businesses to create a new business unit called Ag Services & Oilseeds. The new business unit began operation on July 1, led by Greg Morris, formerly president, Oilseeds for ADM.

PARTNERSHIPS

DSM and Avril join forces to develop canola-based proteins NETHERLANDS – Global health and nutrition company, Royal DSM has partnered with the French agro-industrial group, Avril to meet growing consumer demand for plant-based proteins, that will see them collaborative to produce a new protein based on non-genetically modified canola.

The product can be used in meat and dairy alternatives, beverages, baked products, bars and ready-to-mix foods with an objective to promote excellent functional properties, a high nutrition value and a 72 AUGUST 2019 | FOOD BUSINESS AFRICA

balanced taste profile. The partners will also develop a state-of-the-art industrial production facility fully dedicated to canola proteins at Avril’s Saipol facility in Dieppe, northern France. Commercial availability from first production could be as early as end 2021.

“With 10 billion inhabitants by 2050, experts predict global demand for both animal and plant-based protein to grow, with exponential growth in plant-based proteins due to dietary shifts,” said Avril CEO Jean-Philippe Puig. Through this

collaboration, Avril and DSM intend to join forces to contribute through innovation to meet the growing demand.”

According to DSM Consumer Insights Series, 46% of people who consume dairy daily also occasionally consume dairy alternatives. The report suggests that rise of vegan and vegetarian diets or flexitarians is attributed to demand for healthier alternatives to meat and dairy, something that brings both opportunities and new challenges for food producers.

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