Food Business Africa - Sept/October 2020

A F R I C A ’ S

N O . 1

F O O D ,

B E V E R A G E

&

M I L L I N G

FOOD BUSINESS

I N D U S T R Y

M A G A Z I N E

COVER STORY

ABDUL SAMAD RABIU Chairman - BUA Group

NEW INVESTMENT PLANS IN NIGERIA’S MILLING INDUSTRY TO BOOST THE SECTOR

INDUSTRY REPORT

ANIMAL FEED IN AFRICA INVESTMENTS RISE AS SECTOR ADOPTS MORE TECHNOLOGY WWW.FOODBUSINESSAFRICA.COM

COUNTRY FOCUS

DAIRY INDUSTRY IN NIGERIA

BACKWARD INTEGRATION TAKES SHAPE

EXECUTIVE INTERVIEW

STEFAN LUTZ

MD, AFRICAN MILLING SCHOOL YEAR 8 | ISSUE NO. 42 | SEP/OCT 2020

Alapala; where tradition meets innovation In 1954, we started our journey with the mission to accomplish the best partnership models through innovation to add value and a competitive edge to our customer’s business. Since its foundation, we have built more than 600+ turn-key projects and our equipment operates in 5.000 factories in over 100 countries on 4 continents across the globe.

We are proud to be among the top companies in the world’s grain milling technology and still taking big steps to fulfill our vision.

The Art of European Meat

artofmeat.eu Picture this: Quality Meat from the heart of Europe − bringing together Craftsmanship, Food Safety and Tailor-Made Service.

That is what the Belgian meat suppliers proudly present to you.

As one of Europe’s leading meat producers and exporters, they have turned their expertise into an art form. Up to you to savor it.

THE CONTENT OF THIS PROMOTION CAMPAIGN REPRESENTS THE VIEWS OF THE AUTHOR ONLY AND IS HIS/HER SOLE RESPONSIBILITY. THE EUROPEAN COMMISSION DOES NOT ACCEPT ANY RESPONSIBILITY FOR ANY USE THAT MAY BE MADE OF THE INFORMATION IT CONTAINS.

AFMASS

FOOD EXPO KENYA EDITION

DATE: AUGUST 5-7, 2021 | VENUE: SARIT EXPO CENTRE NAIROBI, KENYA

5000+

DEES ATTEN RICA AF FROM ORLD W & THE

15+

PAVILLIONS SHOWCASING FOOD, FEED & TECH

1000+

PROD UCTS & SOLU TIONS FROM AF & BEY RICA OND

East Africa’s Biggest Event for Food, Feed, Hospitality & New Technologies

WWW.AFMASS.COM/KENYA ORGANIZED BY

POWERED BY FOOD BUSINESS AFRICA.COM

AFRICA Inc.

WWW.AFRICAINCMAG.COM

AFMASS FOOD EXPO KENYA WILL SHOWCASE FOOD PRODUCTS & TECHNOLOGIES WITHIN SPECIAL PAVILLIONS, INCLUDING:

FOOD

INGREDIENTS SHOW KENYA

INGREDIENTS • CHEMICALS

KENYA

COFFEE & TEA EXPO COFFEE • TEA • CHOCOLATE DRINKS • OTHER HOT BEVERAGES

KENYA HOTELS RESTAURANTS & CATERING EXPO

EQUIPMENT• INGREDIENTS • SERVICES & TECHNOLOGY FOR THE HORECA INDUSTRY

KENYA

KENYA

KENYA

&Bakery EXPO

Expo

MILLING

GRAINS & LEGUMES • BREAD • CAKES • PROCESSED & PACKAGED FLOURS • BISCUITS • COOKIES

Beer, Wine & Spirits

KENYA

DAIRY EXPO KENYA

FRESH MILK • YOGHURT • ICE CREAM • CHEESE • BUTTER, GHEE ETC

LOGISTICS & E-COMMERCE

pack

MILLING • PROCESSING • PACKAGING • AUTOMATION • LAB. & FOOD SAFETY

KENYA

Fresh Produce & Grocery EXPO

FRUITS & VEG • HERBS & SPICES • SAVOURY & CONDIMENTS

HEALTHY, NUTRITIOUS FOODS • NUTRACEUTICALS • SUPPLEMENTS • PERSONAL HEALTH & WELLNESS SOLUTIONS • CONSULTANCY & CARE

KENYA

EXPO

COLD CHAIN SOLUTIONS • STORAGE SOLUTIONS • MOBILITY SOLUTIONS

KENYA

process EXPO KENYA

WELLNESS

EXPO

BEER • WINES • SPIRITS • ALCOHOL FREE BEVERAGES • CIDERS • COCKTAILS ETC

SUPPLY CHAIN

NUTRITION HEALTH &

Beverages& Dr nks

Expo

FRUIT JUICES • PACKAGED WATER • ENHANCED WATERS • CORDIALS • BLENDS

PETFOOD,

Animal Feed

& AQUACULTUREExpo FEED CARE , HEALTH & WELLNESS SOLUTIONS FOR DOGS, CATS, POULTRY BIRDS, FISH, DAIRY & BEEF ANIMALS , PIGS, SMALL ANIMALS, HORSES ETC

KENYA

Meat, Poultry

Fish Expo

MEAT • POULTRY • FISH • SEAFISH

KENYA

SWEETS,Snacks

& CHOCOLATE EXPO

CONFECTIONERY & SWEETS • SNACKS • CHOCOLATE

KENYA

Oils&Nuts Edible xpo EDIBLE FATS & OILS • NUTS • OILSEEDS

CONTENTS ON THE COVER A F R I C A ’ S

N O . 1

F O O D ,

B E V E R A G E

&

M I L L I N G

FOOD BUSINESS

I N D U S T R Y

COUNTRY FOCUS: DAIRY INDUSTRY IN NIGERIA

COVER STORY - BUA GROUP

M A G A Z I N E

51

Mr. Abdul Samad Rabiu, BUA Group's Executive Chairman is on our cover this month as he digs into the wheat milling and pasta industry in Nigeria with new investments.

COVER STORY

ABDUL SAMAD RABIU Chairman - BUA Group

NEW INVESTMENT PLANS IN NIGERIA’S MILLING INDUSTRY TO BOOST THE SECTOR

INDUSTRY REPORT

ANIMAL FEED IN AFRICA INVESTMENTS RISE AS SECTOR ADOPTS MORE TECHNOLOGY WWW.FOODBUSINESSAFRICA.COM

COUNTRY FOCUS

DAIRY INDUSTRY IN NIGERIA

BACKWARD INTEGRATION TAKES SHAPE

www.foodbusinessafrica.com

EXECUTIVE INTERVIEW

STEFAN LUTZ

MD, AFRICAN MILLING SCHOOL YEAR 8 | ISSUE NO. 42 | SEP/OCT 2020

SPOTLIGHT: ABDUL SAMAD RABIA, THE EXECUTIVE CHAIRMAN OF THE BUA GROUP 46

REGULARS 6 Editorial 8 What they said 10 Events Calendar 12 Events Preview 16 African & International News 44 New Products on the Shelf 82 Supplier News & Innovations DAIRY BUSINESS AFRICA 49 Danone rejigs strategy to adapt to Covid-19 World

EXECUTIVE INTERVIEW: DANIEL NYANGE SITE MANAGER, AFRICA IMPROVED FOODS RWANDA LTD 71

BEVERAGE TECH AFRICA 55 What To Consider When Planning An Ethanol Distillery Project MILLING & BAKING AFRICA 57 Industry Report: Animal Feed Manufacturing in Africa Takes a Leap FOOD NUTRITION & HEALTH 69 Critical steps to improve heart health during the Covid-19 pandemic

EXECUTIVE INTERVIEW: STEFAN LUTZ AFRICAN MILLING SCHOOL MANAGING DIRECTOR 74

4

SEP/OCT 2020 | FOOD BUSINESS AFRICA

HOW COVID-19 HAS CHANGED EATING HABITS ACROSS THE WORLD 77

FOODBUSINESSAFRICA.COM

Franz Haas SWAK-Gekko Solutions for highest demands.

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Innovations for a better world.

EDITORIALS

Africa’s youth problem needs everyone’s input to resolve Trouble in Nigeria sign of a turbulent future if solutions are not found across the Continent

A

frica – just like some of the developing economies around the World - is facing a youth problem.

Looking at the recent riots in Nigeria by disenchanted youth, that brought wanton destruction and nearly brought the country to a halt, it is high time that governments across the Continent sought out initiatives that will enable young people to be engaged economically, to contribute their energies to the development of their countries and economies.

It is important to be aware that the crisis that Nigeria has faced this time can be easily replicated in any other country in Africa – with grave consequences to the country involved.

The average youth in Africa is faced with many challenges, chief of which is the lack of jobs in the region, with many youth remaining unemployed, many years after finishing their formal education. Equally critical is the ballooning number of those that are under-employed or have been forced to make do with manual jobs, despite of their knowledge and skills.

Everyone must play his or her part – including the food industry.

The food industry in Africa has an obligation to become part of the solution to the youth unemployment crisis in Africa by seeking ways to engage with young people in sourcing agricultural goods locally – farming

FWAfrica

FOODBUSINESSAFRICA.COM Year 8 | Issue 4 | No.42 • ISSN 2307-3535 FOUNDER & PUBLISHER Francis Juma EDITORIAL Virginia Nyoro | Catherine Wanjiku ADVERTISING & SUBSCRIPTION Jonah Sambai | Hellen Mucheru CONTRIBUTORS Milan Shah | Dr. Evangelia Komitopoulou | Oladapo Loto | Zuneid Yousuf DESIGN & LAYOUT Frank Bett

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SEP/OCT 2020 | FOOD BUSINESS AFRICA

remains an important source of income for many families in Africa, and with new digital tools, can enable young people utilize their unique skills. However, this cannot happen if food companies continue importing such basic stuff like rice, sugar, barley and wheat into the Continent. By building local supply chains, food companies have the best opportunity of enabling the Continent to fully utilize its agricultural and youth potential.

Food companies can also provide internship and training programs that can enable young people to acquire new sets of skills that they can utilize – even out of employment. Further, they can provide entrepreneurship opportunities to enable young people supply products and services to food businesses, which might even involve strategies that specifically maroon some particular procurement lines to the youth.

We all have to play our part – urgently.

If we do not do so, we may not have customers to avail our products to in the near future, and we shall all be losers.

INFORMING AFRICA’S BUSINESS GROWTH

FW Africa P.O Box 1874-00621, Nairobi Kenya Tel: +254 20 8155022, +254725 343932 Email: info@fwafrica.net Company Website: www.fwafrica.net RELATED PUBLICATION

AFRICA Inc.

Francis Juma Publisher

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 2020. 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.

FOODBUSINESSAFRICA.COM

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WHAT THEY SAID

“I am particularly pleased that a successful and innovative company like Kasapreko is finding new opportunities under the 1D1F policy, and would like to assure them of Government’s unwavering support.”

President Nana Addo Dankwa AkufoAddo of Ghana remarks during the commissioning of Kasapreko Water, Juice and Soft Drinks Factory in Ghana

“Import duties are just the first step towards fully tapping into the potential of Zambia in feeding itself and the region. We have been asking for this for a long time; farming will again become profitable.”

Walter Roodt, Zambeef Products Plc CEO as he welcomed the government of Zambia’s proposal in the 2021 budget plan to introduce import duties on meat and poultry products.

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SEP/OCT 2020 | FOOD BUSINESS AFRICA

“This project is a clear demonstration of the Heineken group’s commitment to Mozambique.”

“We have started looking into other towns. In four or five years, we could open new supermarkets outside Douala and Yaoundé.”

Nuno Simes, the Managing Director of Heineken Mozambique, while inaugurating Luc Demez, CEO of CFAO Retail Cameroon, a new production line worth US$20 million speaking on Carrefour’s investment plans in to produce Heineken beer in the country, for the country the first time.

“The food & beverage sector will undergo an enormous transformation over the next decade, with the dairy industry feeling this most acutely. The key to success in the new landscape will be in embracing flexibility and proactively responding to the wave of disruptive changes.”

“Transparency throughout the supply chain will dominate in 2021, with consumers searching for brands that can build trust, provide authentic and credible products, and create shopper confidence in the current and post-COVID climate.”

Frederik Wellendorph, Vice President Business Unit Liquid Food Tetra Pak as the company released a report forecasting a rise of up to 65% in alternative dairy segment by 2030.

Director of Insights and Innovation at Innova Market Insights Lu Ann Williams highlighting some of the Top Ten Trends for 2021.

FOODBUSINESSAFRICA.COM

M ASTERCLASS WEBINAR

PRESENTED BY

AFMASS

29

FOOD EXPO V I R TU AL SEMI NAR S

OCTOBER 2020 2.00 PM - 4.00 PM EAT 11.00 AM - 01.00 PM GMT

SUSTAINABLE GRAINS, MILLING & BAKING INDUSTRY IN AFRICA POST COVID-19 SPEAKERS

Christopher Wainaina Commercial Director, East Africa, BRUKER

Aziza Elmahdaoui Distributor Manager EMEA, Microbiology BRUKER

Andrew Chintala

President, Millers Association of Zambia

Olaf Degen

Business Development Manager EMEA, Microbiology BRUKER

Stefan Lutz

Head of African Milling School, Nairobi, Kenya

Johnes Nzioki

Grains & Milling Industry Consultant

Lewis Ngwenya

Managing Director, Aller Aqua Zambia

Sufian Kyarua

Secretary General, Tanzania Animal Feed Manufacturers Association

Register Now: WWW.AFMASS.COM/SUSTAINABLE-GRAINS ORGANIZED BY

POWERED BY

AFRICA Inc. FOODBUSINESSAFRICA.COM

SEP/OCT 2020 | FOOD BUSINESS AFRICA

9

EVENTS CALENDAR

November 09-13, 2020

Pack Expo International Chicago, USA Focus: Food & Beverage packaging www.packexpointernational.com

November 25-27, 2020

FooDtech Japan Makuhari Messe, Japan Focus: Food Processing & Automation www.foodtechjapan.jp

November 25-28, 2020

World Food Istanbul Istanbul, Turkey Focus: Food & Beverage www.worldfood-istanbul.com

December 17-19, 2020 Food Africa Cairo Cairo, Egypt Focus: Food & Beverages www.foodafrica-expo.com

January 27-30, 2021

Food Pack Asia Bangkok, Thailand Focus: Packing & Packaging www.foodpackthailand.com

January 31- 03 Feb, 2021 ISM Cologne Cologne, Germany Focus: Sweets and Snacks www.ism-cologne.com

February 17-26, 2021

Annual Frozen Food Convention Virtual, USA Focus: Frozen Ingredients www.affi.org

February 21-25, 2021 Gulfood Dubai, UAE Focus: Food & Beverage www.gulfood.com

February 25-March 3, 2021

June 22-25, 2021

March 02-04, 2021

August 05-07, 2021

March 02-05, 2021

August 22-24, 2021

March 06-08, 2021

August 26-28, 2021

March 08-12, 2021

October 09-13, 2021

March 09-12, 2021

November 07-09, 2021

JUNE 1-30, 2021

November 12, 2021

Sweets & Snacks Expo Indiana, USA Focus: Confectioneries & Snacks www.sweetsandsnacks.com

Interpack Expo Düsseldorf, Germany Focus: Processing & Packaging www.interpack.com

Global Food Safety Initiative conference Virtual Focus: Food safety www.mygfsi.com

AFMASS Food Expo Kenya Nairobi, Kenya Focus: Food, Beverage & Milling www.afmass.com

FHA Singapore Expo Singapore, Asia Focus: Food & Beverage www.fhafnb.com

SNAXPO 21 North Carolina, USA Focus: Confectioneries & Snacks www.snaxpo.com

Food Expo Greece Athens, Greece Focus: Food & Beverage www.foodexpo.gr/en

The Nafem Show Florida, USA Focus: Food service www.thenafemshow.org

Africa Food Safety & Quality Summit Nairobi, Kenya Focus: Food Safety www.foodsafetyafrica.net

Anuga Food & Beverage Fair Cologne, Germany Focus: Food & Beverage www.anuga.com

Foodex Japan Makuhari Messe, Japan Focus: Food & Beverage www.jma.or.jp/foodex

Gulfood Manufacturing Dubai, United Arab Emirates Focus: Food & Beverage www.gulfoodmanufacturing.com

Africa Dairy & Drinks Innovations Summit Virtual Focus: Dairy & Drinks www.afmass.com/dairydrink

Africa FOODEX Awards Nairobi, Kenya Focus: Food, Beverage & Milling www.awards.foodbusinessafrica.com

June 20-22, 2021

Africa’s Big 7 Johannesburg, South Africa Focus: Food & Beverage retail www.africabig7.com

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TheNest AFRICA

AFRICA’S FOODTECH HUB

PARTNER WITH US TO CREATE AFRICA'S FOOD, BEVERAGE & MILLING INDUSTRY START-UPS HUB

Start-ups and young businesses in sub-Saharan Africa face a myriad of challenges, including lack of access to technology, expertise and networks to grow.

At The Nest Africa, we are creating a collaborative facility with new product development labs, production and packaging kitchens and office space for use by young companies in the region to facilitate their innovations and growth towards becoming the next big thing.

SIGN UP TO SPONSOR OR BE A MEMBER ON OUR JOURNEY TO REVOLUTIONISE AFRICA'S FOOD, BEVERAGE & MILLING INDUSTRY! Visit the website today.

www.thenest.fwafrica.net

EVENTS PREVIEW

The virtual and live event will take place over 5 days, with virtual conference plus live conference and expo in Kenya

A

frica’s first industry-focused, regular food safety Summit is slated for March 2021, as African countries grapple with food safety challenges and consumer interest in the subject rises exponentially.

Covering the key areas of safety, regulatory policy, quality and laboratory management, the eventis set to be held bothe virtually and live in Nairobi, Kenya in repsonse to the Covid-19 pandemic, which will be the over-arching theme of the Summit - especially how Africa can take advantage of the pandemic to boost food safety compliance and personal safety and health The Summit brings together regional and global experts and stakeholders to discover

the latest trends in science and technology, regulatory policy, standards, compliance, operations and sustainable adoption of safe and efficient safety, quality and management practices in the entire agriculture and food value chain in Africa.

Food safety challenges weigh heavily on Africa, negatively impacting consumer health, business performance and regional and international trade. From incidents related to Aflatoxins contamination, food poisoning, heavy metals contamination, to emerging issues including new bacteria, toxins and antibiotic resistance, the Continent is disproportionately affected by food safety challenges.

There is an urgent need to find new ways and technologies to protect Africa’s consumer due to changes in consumer habits, a rapidly globalising food supply chain, changes in testing protocols for diagnosing food borne illnesses and challenges with regulating and policing food systems in the region.

Attendees from Africa Over 4,000 delegates from Africa and across the World are expected to

grace the 2021 edition of the virtual and live sessions of the Summit to discover the latest trends, opportunities and challenges and learn how to improve systems and reduce risks.

With delegates from the food and animal feed manufacturing, retailing and distribution; hospitality, restaurants and catering; healthcare and other institutions; Government ministries and regulatory agencies; agriculture and agribusiness players; academicians and researchers, the high-level conference is the platform for you to discover the latest trends and technologies that resonate with the growing food and agro industry value chain in Africa.

With an impressive line-up of speakers and panelists, the Summit will bring some of the most sought after stakeholders in Africa's food and agro industry value chain and beyond.

Excellent venue The live sessions of the Summit will take place at a magnificent location in Nairobi, with plans to have the Summit hosted across Africa in subsequent years.

HOW TO SIGN UP

Registrations are open for the Africa Food Safety & Quality Summit, with free registration Early Bird rate for food industry stakeholders, Government agencies and NGOs and development organisations The registration covers 3 days of virtual conference attendance and access to the live conference session, attendance certificate plus other unique benefits.

More information about the event and registration details can be found at

www.foodsafetyafrica.net

Africa’s Food Safety & Laboratory Management Conference & Exhibition

DATE: MARCH 8-12, 2021 HYBRID SUMMIT: LIVE FROM NAIROBI, KENYA & VIRTUAL AROUND AFRICA & THE WORLD

Join over 3000 delegates at this pan-African industry-focused virtual and live food safety and laboratory management conference and expo.

Meet and network with delegates from the food and animal feed manufacturing, retailing and distribution; hospitality, restaurants and catering; Government ministries and regulatory agencies; agriculture and agribusiness players; academics and research institutions as you discover the latest trends, opportunities and learn how to improve systems and reduce risks in the food safety landscape in Africa.

For more info on participation, exhibition and sponsorship: Tel: +254 725 343 932 Email: info@fwafrica.net

www.foodsafetyafrica.net

EVENTS PREVIEW

AFRICA

Dairy&Drink INNOVATIONS SUMMIT & EXPO

SUSTAINABILITY • TECHNOLOGY • INNOVATIONS

the Continent.

A

new schedule for Arica's dairy, soft and alcoholic beverages industry premier event has been offically revealed.

The Africa Dairy & Drinks Innovations Summit, the regional conference and exhibition has been scheduled to take place both virtually and live in Nairobi, Kenya for the entire month of June 2021.

The event will bring together the key decision makers in the dairy, soft and alcoholic drinks industry in Africa to discover new ways towards a more sustainable, efficient and innovative industry in

High level platform The Summit is a high level platform for world-class education, capacity building and networking with a focus on the technical/scientific, nutrition/health, new product development and marketing aspects of the dairy, soft drinks and alcoholic beverage sectors.

At the base of all discussions, will be how sustainability, be it in sourcing of raw materials; processing and packaging technology; and utilization of scarce resources can be mainstreamed across the industry in Africa.

Leading decision makers from multinationals companies, medium scale processors and start-ups from across the processing, packaging, engineering, sustainability, QA/R&D, marketing/ brand management functions of the industry are expected to attend, with registrations The Summit will consist of 28 days of high-impact virtual conference sessions, where the latest sustainability, market trends, investment opportunities, technology and quality management fundamentals will be discussed.

Live sessions are also planned

June 2021 has been declared officially as Africa dairy, soft drinks and alcoholic beverages innovations month at the event to enable industry stakeholders to network and trade, with a live opening day breakfast meeting and a full day live conference and expo on the last day of the event.

A number of leading providers of processing and filling equipment, ingredients, engineering and automation, food safety and supply chain solutions will be showcased at virtual and live expo – enabling the delegates to have first-hand discovery opportunities for the latest technologies - from wherever they are in Africa and beyond.

“The dairy and drink industries in Africa are some of the most vibrant, with a surge in investments and new product innovations. But, they are also the sectors where the opportunity for disruption, new investments and new ways of innovation lie. This Summit will bring experts and industry veterans who will dissect some of the new technologies and ideas that will propel the dairy and drink industry to meet the ever changing needs of the consumer in Africa – who are yearning for more trendy but sustainable solutions from the industry,” explains Francis Juma, the team leader for FW Africa the organisers of the Forum.

HOW TO REGISTER Delegates from the manufacturing and retail sector in Africa have been offered an Early Bird free registration to attend the virtual and live sessions of the event or US$99 per delegate (Early Bird rate ends February 1, 2020) to attend the Summit & Expo, with further savings being passed on for more than 3 delegates (10% off) and above 5 delegates (15% off). Delegates from non-exhibiting supplier companies will part with US$599 to access the Summit.

More information about the event and registration details can be found at

www.afmass.com/dairydrink

AFRICA

Dairy&Drink INNOVATIONS SUMMIT & EXPO

SUSTAINABILITY • TECHNOLOGY • INNOVATIONS

DATE: JUNE 1-30, 2021 HYBRID EVENT: NAIROBI, KENYA & VIRTUALLY FROM EVERYWHERE AROUND THE WORLD

3O DAYS OF IMPACTFUL LEARNING & NETWORKING VIRTUAL & LIVE EVENTS FOR AFRICA’S DAIRY, SOFT & ALCOHOLIC DRINK INDUSTRY

FORMULATIONS MANAGEMENT

INVESTMENTS & FINANCING

SUSTAINABILITY ENERGY, WATER, WASTE

AGRICULTURE & AGRIBUSINESS DEVELOPMENT

PROCESSING, PACKAGING & AUTOMATION

LOGISTICS & SUPPLY CHAIN

WWW.AFMASS.COM/DAIRYDRINK

QUALITY & FOOD SAFETY

MARKETING, BRAND & RETAIL MANAGEMENT

UPDATES RESPONSIBLE DRINKING

Leading beer companies in Africa champion responsible drinking in Africa

AFRICA – Accra Brewery Limited (ABL), the Ghanian subsidiary of multinational brewer AB InBev) has launched its new Smart Drinking campaign christened “BE THE LIMIT”.

To spearhead the campaign, the brewer is using its CLUB Shandy brand, low-alcohol beer of 2% alcohol by volume (ABV), termed as the drink of choice for the moderate and responsible drinker.

ABL noted that the campaign is aimed to create awareness and educate consumers to drink responsibly, not to consume alcohol when pregnant or to sell to

persons under the legal drinking age of 18years.

They disseminated the information through distributing of fliers in retail outlets, bars and key distributors and further partnered with Jumia, Africa’s largest e-commerce, to share facts and figures about the company and Smart Drinking messages through quizzes.

Its brewing competitor, Diageo is also rolling out its DRINKiQ e-learning tool to disseminate information on responsible drinking at its operating units in Kenya and Tanzania.

In Tanzania, Serengeti Breweries Limited (SBL) is using the tool to provide consumers with the information they need to make positive decisions about drinking responsibly and tackling myths about drinking alcohol.

It gives information about the content of their drinks, how alcohol is made and different ways it can impact their bodies, shows them how to keep track of their alcohol intake and how to pour a standard measure of spirits, wine or beer.

Kenya Breweries Limited on the other hand, has partnered with National Transport and Safety Authority (NTSA) to educate and sensitize road users on responsible drinking via the platform, in order to enhance road safety in Kenya.

CAPACITY BUILDING

Leading Swiss companies launch technical master’s program in Africa

GHANA – A consortium of Swiss companies namely Nestlé, ABB, Barry Callebaut, LafargeHolcim and Bühler have partnered with one of the world’s leading universities, the Swiss Federal Institute of Technology in Zurich (ETH Zurich) to launch a new master’s program in sub-Saharan Africa.

The ‘ETH Masters in Africa – Engineering for Development’ is a three-year program, developed in close collaboration with Ashesi University in Ghana based on both existing ETH Zurich courses and the 16 SEP/OCT 2020 | FOOD BUSINESS AFRICA

current needs of the industry sector in sub-Saharan Africa. It will be offered to five cohorts of students, starting in 2021, who will get a scholarship funded by the industrial partners.

The initiative was triggered by the fact that half of the global population is under 30 years old, and almost half of that group are in sub-Saharan Africa. Despite having a large population being of productive age, youth employment is a challenge in the region that governments are tackling through increased access to education.

To this end the corporations have partnered to impart the necessary skills to the young people, to enable them thrive in the world of work by bringing the best of Swiss engineering training and development and widening access to this expertise.

“We want this master’s to have a real impact on sustainable development. We’re drawing here on the different skills and perspectives of the project parties, as we all want to learn from each other to build a better and more integrated educational offering that can flourish independently in the future,” said ETH Rector Sarah Springman.

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APPOINTMENTS

FUNDING

Coca-Cola names Neeraj Garg Grocery delivery service Instacart raises US$200m in as HCCB CEO alongside other new funding round appointments in Asia USA –US-based grocery delivery

INDIA – Hindustan Coca-Cola Beverages (HCCB), the bottling partner of Coca-Cola India has appointed Neeraj Garg as the new Chief Executive Officer of the company effective January 1, 2021.

Garg is currently the president of the West Africa business unit of The Coca-Cola Company, based in Lagos, Nigeria. He will be taking over from Christina Ruggiero, the first woman CEO at HCCB. Ending her three-year stint at the company, Christina has been appointed as the President of Central Operations, North America Operating Unit of The Coca-Cola Company.

“Christina has helped build a solid foundation for HCCB as one of the premier FMCG organisations in the country. Neeraj takes over from here, coming in with extensive FMCG experience,” said Marcelo Boffi, President, Bottling Investments Group, The Coca-Cola Company.

Neeraj’s appointment is part of the beverage giant’s on going global corporate restructuring aimed at unlocking its next phase of growth. The company has further appointed Sanket Ray, who is presently Chief Operating Officer for Coca-Cola Mainland China, as the new President of India and South West Asia operations. Ray replaces T. Krishnakumar, who has been named the Chairman of CocaCola India.

18 SEP/OCT 2020 | FOOD BUSINESS AFRICA

service Instacart has raised US$200 million in a new funding round led by existing investors Valiant Peregrine Fund and D1 Capital Partners, to further solidify its position as a leader in grocery e-commerce.

The company will use the financing to enhance product development; focus on introducing new features and tools to enhance customer experience; continue investment in the firm’s Instacart Enterprise product suite to support retailers’ end-to-end ecommerce needs; and further invest in Instacart Ads for consumer brands.

“Today’s investment is a testament to the strong conviction our existing investors have in the strength of our teams and the important role Instacart plays for customers, partners, and the entire grocery ecosystem,” Apoorva Mehta, founder and CEO of Instacart, said.

Instacart offers grocery delivery

and pickup services from several major retailers to consumers in the US and Canada, through an app-based platform. The company operates in approximately 5,500 cities in North America, and has partnered with more than 500 retailers and delivers from nearly 40,000 store locations.

INNOVATIONS

South African cultured meat start-up Mzansi Meat to develop Africa’s first lab-grown meat

SOUTH AFRICA – Mzansi Meat, Africa’s first cultivated meat startup based in South Africa has initiated the process of producing cell-cultured protein products, moving away from the traditional methods of raising livestock and slaughtering them for meat.

Founded this year, the biotech company is testing a wide range and combination of animal-free biomaterials, hydrogels, plant cellulose and yeast cultures to engineer the scaffolding for cells to grow around. After the cells are harvested, the animal is then

cared for in their specialised postbiopsy recovery facility without the utilization of antibiotics.

The company also notes that it has developed a “cruelty-free” harvesting method that does not harm the animal.

According to the co-founder of Mzansi Meat Co, Brett Thompson, being the first African cell-based startup, it faces the challenge of consumer acceptance. “We will have to figure out how to overcome the consumer barriers. We want to be perceived as a food company, and not as a tech brand. We have the benefit of the fact that cultivated meat is not known in Africa and South Africa, so people have not had a chance to build up their defences yet. Therefore, this flip side that not a lot of people know about cultivated meat is at the same time an opportunity,” explained Thompson.

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FOOD PARTNERSHIPS

Firmenich partners with Novozymes, Microsoft to launch new technologies for its business

INGREDIENTS SHOW KENYA

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SWITZERLAND – Firmenich, the Swiss taste and fragrance company has partnered with Novozymes, the Danish biological solutions leader, to launch a new jointly developed natural sugar reduction solution known as TasteGEM SWL with Saphera lactase.

This cutting-edge technology brings unprecedented natural taste performance, enabling up to 50% sugar reduction in yogurt and other dairy products without the use of sweeteners, according to the companies.

The patent-pending technology unlocks the naturally occurring sweetness of milk and bridges the sensorial gaps that arise when added sugar is removed.

“We are seeing a significant shift, with consumers ranking reducing sugar as the #1 health consideration in their food and beverage choices. Building on our industry leading, proprietary sugar reduction capabilities, we have joined forces with Novozymes, to develop uniquely optimized dairy solutions for our customers that are both delicious and nutritionally balanced,” said Emmanuel Butstraen, President of Flavors, at Firmenich.

Firmenich has also partnered with Microsoft to use artificial intelligence (AI) in optimizing flavour combinations and create a lightly grilled beef taste for plant-based meat alternatives. It leveraged Microsoft’s technology to cross reference its ingredients database with what consumers crave to create its grilled meat flavour.

Firmenich is working to create other AI-generated flavours based on a raw materials database it maintains.

Using AI allows the company to address other consumer criteria and ingredient requirements such as clean label, organic, natural or non-GMO more quickly.

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PROD UCTS & SOLU TIONS FROM AF & BEY RICA OND

The Food Ingredients Show Kenya displays the latest technologies in food ingredients and chemicals from local, regional and international companies, including: Flavours, colours – synthetic, natural and nature-identical • Sweeteners – nutritive and artificial and natural; sugar replacers • Enzymes, improvers, dough and conditioners and processing aids • Emulsifiers, antioxidants and preservatives • Stabilisers, thickeners, viscosity modifiers, firming agents and bulking agents • Vitamins, minerals and premixes • Protein powders, flours and isolates; egg powders and replacers • Humectants, gelling and glazing agents • Salt, mineral salts and salt replacers • Foaming and raising agents and propellants • Fat and fat replacers

AUGUST 5-7, 2021

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AWARD

FUNDING

World Food Programme wins Zambian e-commerce start-up Lusaka Grocery Delivery undertakes pre-seed funding round 2020 Nobel Peace Prize

Agribusiness company Good Nature Agro clinches US$2.1m in Series A funding round

GLOBAL – The world’s largest

humanitarian organization, World Food Programme has received this year’s Nobel Peace Prize for its work in combating global hunger; improving conditions for peace in conflict areas and preventing the use of starvation as a weapon of war, particularly during the coronavirus pandemic.

The chairwoman of the Norwegian Nobel committee, Berit Reiss-Andersen, revealed the 2020 laureate at the Nobel Institute in Oslo, adding that the committee gave the award to the WFP because it wanted to, “turn the eyes of the world to the millions of people who suffer from or face the threat of hunger.”

Berit added that the award was also a call to the international community to fund the UN agency adequately and to ensure people were not starving.

The WFP responded saying, “This is a powerful reminder to the world that peace and Zero Hunger go hand-in-hand.” David Beasley, the WFP’s executive director, also gave his gratitude saying, “We are deeply humbled to receive the Nobel Peace Prize.

This is an incredible recognition of the dedication of the WFP family, working to end hunger every day in 80+ countries. Thank you Nobel Prize for this incredible honour.”

Along with enormous prestige, the prize comes with a £870,000 (US$1.127m) cash award and a gold medal to be handed out at a ceremony in Oslo, during the anniversary of the prize founder, Alfred Nobel’s death.

20 SEP/OCT 2020 | FOOD BUSINESS AFRICA

ZAMBIA – Lusaka Grocery Delivery

(LGD), a Zambian grocery delivery start-up has raised US$385,000 in pre-seed funding round led by Amano Capital, a Southern African tech focused investment firm, to enable it to scale up its services.

Founded in April this year as a direct response to the impact of the COVID-19 pandemic, LGD is an e-commerce delivery service operating in a market characterized by lack of adequate access to the Internet and an understanding of how to use online applications.

While over 80% of Zambians have phones, only 14% actively use the Internet while 70% do not understand how the internet works.

Determined to bridge this divide, the company has looked for alternate ways to build a loyal following while maintaining its brand purpose.

The start-up’s flagship product section is dubbed ‘Proudly Zambian’ whose part of the offerings are products which tend not to be available in the local stores as they are being produced by smaller manufacturers. The company also promotes exclusively Zambian traditional foods such as Chikanda,

Chiwawa and dried fish to name a few, in a bid to commercialise key elements of different Zambian cuisines.

Further, having noted that the Zambian remittance market is valued at nearly US$200 million per year, with 85% going towards family support, LGD has built an app which enables members of the diaspora to safely purchase grocery supplies and ensure the money is spent appropriately.

“The strategy to drive up sales in the diaspora market to then trickle down into the domestic target market. This is what energized my team the most. Changing customers habits requires patience so utilising a customer base that are comfortable in using the online shopping market will be a strong factor to future scalability,” said Ngao Mutambo, CEO & Founder of the company.

Meanwhile, Good Nature Agro (GNA), a Zambian social enterprise with focus in the legume value chain has raised US$2.1 million in a Series A equity funding round led by Goodwell Investments, with participation by existing seed investors Global Partnerships and FINCA Ventures.

The agro company will use the funds acquired to build up essential value-add processing infrastructure in Central and Eastern Zambia and accelerate the growth of their full-farm extension services for smallholders. In addition, it will enable them to connect the farmers to large-scale agribusinesses and food processors seeking hasslefree sourcing, as well as to further their seed breeding program.

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

INSPIRING AFRICA'S BUSINESS LEADERS & ENTREPRENEURS

Health Care & Personal Care

Agribusiness & Biotech

Aviation, Transport & Logistics

Manufacturing & Retail

Construction & Real Estate

Government/NGO Services

Energy, Oil & Gas

Telecom, ICT & Media

Finance & Insurance

Mining

Hospitality & Tourism

Education & Training

INNOVATIONS

FUNDING

Habesha Breweries expands beer portfolio launching Kidame Beer

Sugar production in South Africa to decline by 3% while EU’s forecasted to drop by 1 million metric tons

ETHIOPIA – Habesha Breweries, the Ethiopian beer company owned by Bavaria N.V. and local investors has expanded its product portfolio with the launch of a second beer brand dubbed Kidame Beer, an addition to its signature beer brand ‘Habesha Beer’ as the brewer plans to launch a draught version soon.

“Kidame is a refreshing, smooth and easy to drink beer with a mesmerizing aroma made from quality ingredients,” said Habesha Beweries, which also owns a non-alcoholic drink, Negus, with a growing market share in the booming nonalcoholic market in the country.

The newly unveiled beer with 4.8% alcohol brings competition to Heineken’s Walia, Meta of Diageo and BGI’s St. George’s brand.

SOUTH AFRICA – Raw sugar production in South Africa is forecasted to decline by 3% to 2.2 million metric tons (MT) in marketing year 2020/21 due to decrease in sugar cane quality and quantity delivered to the mills and lower mill efficiencies.

Despite the expected decline in production, consumption of domestic sugar is estimated to rise by 4% to 1.7 million MT from 1.6 million MT of the last period.

This is due to the pace of sugar sales upto August 2020, growth in population, and a surge in demand during the national lockdown with an increase in cooking and home baking activities. However, the rise in domestic consumption is expected to be partially offset by the decrease in demand of sugar from the beverage sector following the introduction of the tax on sugar sweetened beverages in 2018. In terms of trade, sugar exports are estimated to decrease by 15% to 1.2 million MT from 1.5 million MT, while the country’s imports are set

to remain flat at 500,000 MT. Meanwhile, sugar production in the European Union (EU) is headed for a drop in the period under review with output forecasted to be 16 million metric tons (MT), one million MT below MY 2019/20 and two million MT below MY 2018/19.

This is attributed to third vast drought in a row combined with severe damages of cane by beet yellows virus (BYV) disease,

IN NUMBERS

1.7

AMOUNT OF SUGAR PROJECTED TO BE CONSUMED IN SOUTH AFRICA, IN MILLION METRIC TONNES, IN 2019 especially in France, making the bloc a net importer and pressuring a fragile sugar industry. Consumption on the other is reported to be stable with the deficit of 2.25 million MT to be covered by 3 million MT of imports. The region’s exports are forecast not to exceed 1 million MT.

STANDARDS

Seychelles to standardize, certify organic food products in bid to protect consumers

SEYCHELLES – The government of Seychelles through the National Biosecurity Agency is seeking to introduce standards and legislation to govern marketing of organic products, following rising concerns that some products are termed to be organic and they are not, so as to fetch higher prices compared to regular products.

“We have been approached on different occasions 22 SEP/OCT 2020 | FOOD BUSINESS AFRICA

in regards to farmers who are selling their goods as organic and asked what are the standards being used for this. This showed a deficiency in the agricultural sector which we needed to address,” said Chief Executive of the Agency, Marc Naiken.

The move has been welcomed by the Seychelles Farmers Association and the Chairperson, Andre Sopha, who said that while it is important to set up standards and legislation, the government needs to ensure that the perfect environment and necessary tools are available in the country to practice organic farming.

The Agency has recruited a local consultant, a specialist with experience on the United States Department of Agriculture (USDA) organic standard, to work on the certification system.

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ALTERNATIVE MEAT

Tesco targets to triple sale of meat alternatives by 2025

process EXPO KENYA

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UK – Tesco, the leading British multinational groceries and general merchandise retailer, has committed to increasing the sale of plant-based meat alternative by 300% by 2025 using 2018 as the base year.

The retailer has set out a range of measures centred on availability, affordability, innovation and visibility to help it reach its sales target. These include introducing and expanding the availability of plant-based meat alternatives across 20 different categories including ready meals, sausages, burgers and party food, in all its stores.

In addition, IN NUMBERS the retailer says that it will ‘invest 20 in value’ so that NUMBER OF CATEGORIES affordability is TESCO IS TARGETING TO not a barrier BOOST SALES OF PLANTto buying meat BASED FOOD PRODUCTS alternative products, while it will also work with suppliers to bring new innovations to customers. In an effort to boost the visibility of plantbased meats, Tesco says that it will display a meat alternative where a meat product is featured and it has also committed to publishing the sales of plant-based proteins as a percentage of overall protein sales every year to track its progress.

The new sales target stands alongside a wider set of sustainability commitments, which Tesco has developed with its partner the World-Wide Fund for Nature (WWF). “These measures are just part of the work we’re doing with WWF, bringing together for the first time a host of sustainability metrics to help us halve the environmental impact of food production,” said Tesco CEO, Dave Lewis.

FOODBUSINESSAFRICA.COM

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The Process & Pack Expo Kenya edition showcases the latest food and feed milling, processing, packaging and laboratory technologies including: Post-harvest, storage and handling systems, including silos • Grain and feed processing, milling and packaging technologies • Dairy and beverage processing and packaging technologies • Meat, fish and poultry processing and packaging technologies • Laboratory equipment and chemicals plus food and personnel safety supplies • Engineering and automation services and supplies • Refrigeration and cooling services • Outsourced storage, packaging, processing and people management solutions • Hardware and software systems • Fruit and vegetable processing and packaging solutions.

AUGUST 5-7, 2021

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WWW.AFMASS.COM/KENYA SEP/OCT 2020 | FOOD BUSINESS AFRICA

23

INVESTMENTS

M&A

Diageo launches alcoholfree variant of Guinness

Nestle, Heineken, Unilever increase stake in Nigerian subsidiaries

UK – The global drinks company Diageo has further raised the stakes in the burgeoning low- and no-alcohol drinks sector, launching an alcohol-free version of Guinness in Britain and Ireland.

The Guinness 0.0 whose development took four-years at its home-base in St. James’s Gate Dublin, draws on the Irish stout’s 261-year history of innovation and brewing brilliance dating from 1759.

It boasts of the same taste and retaining of the distinct character of Guinness. The new drink is also a low-calorie option with 70 calories per 440ml can.

“The launch of Guinness 0.0 highlights our long-held commitment to innovation, experimentation, and bravery in brewing, harnessing the power of our brewers and our ingredients, to create an alcohol-free beer that is 100% Guinness but 0% alcohol,” Gráinne Wafer, Global brand Director at Guinness, said.

“We know people want to be able to enjoy a Guinness when they choose not to drink alcohol without compromising on taste, and with Guinness 0.0 we believe they will be able to do exactly that,” she added.

Guinness 0.0 will be available in a four-pack format to purchase in off-licences and supermarkets in Great Britain, with a further roll out across international markets planned for later in 2021.

NIGERIA - Multinational food the parent firm of Unilever Nigeria

24 SEP/OCT 2020 | FOOD BUSINESS AFRICA

As Dangote Sugar lists additional shares at the Stock Exchange

companies with operations in Nigeria have recently been tightening shareholding control on their subsidiaries, with Nestle, Heineken and Unilever undertaking share purchase in the units, as the Covid-19 pandemic and low oil prices dampen the economic outlook of the country.

Swiss food giant Nestlé has purchased additional 977,744 shares in Nestlé Nigeria Plc for N1.165 billion (US$3.02m), increasing its ownership percentage to 66.30%, while Heineken International, the Dutch brewing company, has increased its stake in Nigerian Breweries through an acquisition of 3.3 million additional shares, spending around N138 million (about US$358,000) in the transaction.

This is the second time in a span of two months that Heineken purchased more shares of the Nigerian unit. The first time it acquired 274, 542 shares at a cost of N37 per unit.

Unilever Overseas Holdings B.V,

Plc, has also increased its stake in the food and personal care products maker, with the purchase of 17,023,490 ordinary shares at N12 per share. The holdings company further consolidated its position with a fresh purchase of 67,094,382 shares at N12.5 per share, which amounted to N838.6m (US$2.17m).

The acquisition of the additional shares adds substantially to Unilever Overseas’ investment in its Nigerian subsidiary, where it had over 70% shareholding prior to these transactions.

Meanwhile, Dangote Group’s sugar processing unit, Dangote Sugar Refinery Plc has listed additional 146,878,241 ordinary shares on the Nigerian Stock Exchange, increasing its issued and fully paid up stocks to 12,146,878,241 ordinary shares of 50 kobo each. The additional shares arose from the scheme of merger between Dangote Sugar Refinery Plc (DSR) and sister company Savannah Sugar Company Limited (SSCL).

INVESTMENTS

VNA Foods of Namibia to produce vegetable instant soup in new facility NAMIBIA

– Namibian food processing company VNA Foods has inaugurated its production facility in Windhoek, which will produce an instant soup made of spinach dubbed ‘Omboga’.

With the launch of the facility, Development Bank of Namibia (DBN) has celebrated the culmination of its support to 2018 Innovation Award winner who bagged N$1 million (US$67,000).

Other than the cash-prize, DBN has provided an extensive range of

support activities to the company, including recipe development, testing and refinement as well as barcode acquisition to enable the company to gain shelf space in local retailers.

DBN Head of Business Strategy, Heike Scholtz, urged local distributors and retailers to add the product to their selection and promote it saying that the wholesale and retail sector can only become fully sustainable if it incorporates Namibian products in its offerings.

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KENYA

APPOINTMENTS

Shoprite names first female Chair Wendy Lucas-Bull, ending Christo Wiese’s reign

MILLING

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SOUTH AFRICA – Shoprite, the leading pan-African

grocery chain has appointed Absa Group’s Chairwoman Wendy Lucas-Bull as chair designate to replace the long serving Christo Wiese, who will retire as the chair of the retail chain in November after four decades at the helm.

Lucas-Bull has extensive banking and widespread sector experience as a Chairperson and non-executive director on numerous company boards across multiple industries in both the private and public sector, according to the retailer. “There is no doubt her expertise, experience and leadership will be of considerable benefit to both the board and the Shoprite Group,” Wiese said.

The retail company is pulling the plug on its nonperforming operations such as Kenya and Nigeria while also reviewing its long-term options in Angola and Zambia, further eroding Wiese’s long term ambition to grow and dominate the nascent retail sector in the rest of Africa, which, despite strong economic and population fundamentals remains a disappointing foray for South African retail giants.

In Kenya, it is ending dalliance as it plans to close or dispose of its remaining two stores in the country, leaving the East African nation barely two years after it opened its first outlet. In Nigeria, it announced that it is considering the sale of all of or a majority stake in its subsidiary, Retail Supermarkets Nigeria Limited. This is coming about 15 years after it opened its first store in Lagos in December 2005.

The Kenya Milling & Bakery Expo events are a series of shows that enable consumers and the general public to touch, feel and taste the latest packaged grains, milled products and baked goods including: Baked goods – bread, cakes, biscuits and cookies • Cereals and grains – from maize, wheat, rice, sorghum and many more • Legumes and oilseeds from alfalfa, clover, beans, peas, lentils, lupins, soybeans, peanuts, sunflower, etc • Processed and packaged flours and other products originating from beans, peas, maize, wheat, rice, sorghum and many more •Breakfast cereals and snacks • Extruded and ready to eat products • Baby food and nutritious flours and blends

AUGUST 5-7, 2021

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ANNIVERSARY

INVESTMENTS

Kasapreko commissions Flour Mills of Nigeria celebrates 60 years of operations since new beverage factory incorporation under 1D1F initiative generation, FMN and Golden Penny GHANA – President Nana Addo Dankwa Akufo-Addo of Ghana has commissioned the Kasapreko Water, Juice and Soft Drinks Factory, a company operating under government’s 1-District-1Factory initiative (1D1F).

The unveiled facility has a production capacity of about 35,000 bottles per hour of juices and non-alcoholic soft drinks, and 15,000 bottles per hour of water.

IN NUMBERS

300

NUMBER OF EMPLOYEES AT THE NEW KASAPREKO'S NEW PLANT IN GHANA Benefiting from 1D1F initiative, the government assisted the beverage company to access US$25 million loan from Stanbic Bank for the project. It has also received a waiver of duties and taxes on machinery and raw materials, as well as a 5-year tax holiday worth US$28million.

“I am particularly pleased that a successful and innovative company like Kasapreko is finding new opportunities under the 1D1F policy, and would like to assure them of Government’s unwavering support,” said President AkufoAddo.

The factory will employ 300 people directly, and generate some 3,000 indirect jobs through the supply chain.

It is also sourcing 90% of its packaging materials such as bottles, caps and cartons domestically.

26 SEP/OCT 2020 | FOOD BUSINESS AFRICA

NIGERIA – Flour Mills of Nigeria (FMN), one of Nigeria’s leading foods and agro-allied groups has marked a significant milestone, celebrating 60 years of feeding the nation of Nigeria and the region at large.

The company reveals that its journey since its incorporation in September 1960 has been challenging, yet rewarding. Starting as a limited liability company and pioneer wheat miller in Nigeria, the group has evolved to become one of the biggest brands in the foods and agro-allied industry in Africa with its iconic Golden Penny products.

“FMN was founded 60 years ago and since then, we have remained at the heart of this great nation, enriching lives and empowering communities, just as our iconic Golden Penny products have been a part of the lives of millions of Nigerian families, providing nourishment daily,” stated the Chairman of the company, John Coumantaros.

“The journey thus far has been challenging yet rewarding. Our group has evolved to become one of the largest and most impactful Food and Agro-allied businesses in Nigeria, integrating agriculture and industry to ensure that our beloved country can continue on a trajectory to meet its development aspirations. From generation to

have been with Nigerians, through the best of times and at the most difficult of times - a testament to the fact that our connection with our beloved country truly runs deep,” he added.

FMN converted to a public company in November 1978, with beneficial interest in the company’s equity held by Nigerian and overseas shareholders. The company’s foreign shareholders include Excelsior Shipping Company Limited, with 62.95% shareholding, and over 75,000 individuals and institutional investors hold the balance.

The group’s operations can be categorized into four major sectors of Food, Sugar, Agro-allied, and Support services. It undertakes its operations through its subsidiaries Apapa Bulk Terminal, Agri Palm, Northern Nigerian Flour Mills, Premier Feed Mills, Golden Transport Division, Agro Allied Farms Sunti, Agri Estate, FMN Agro Allied Ventures Nigeria, Eagle Flour, Bagco, Golden Agri Inputs and Golden Fertilizer.

Its main’s brand “Golden Penny” basket of foods includes products such as semovita, masavita, pasta, noodles, refined sugar, margarine, vegetable oils, and a range of snacks and breakfast cereals.

Fertilizer is also sold under this brand name. FMN sells its animal feed and nutrition products under the brand name Top Feed.

In the company’s latest quarter one for 2020/21 financial results that were released in August, the company posted solid and consistent growth, with revenue increasing by 15% to N154. 6 billion and Profit After Tax increasing by 17% to N4.9 billion, due to strong growth in its Agro-allied division and local value-added products plus effective cost control, even as the Covid-19 pandemic impacted many businesses in Nigeria.

FOODBUSINESSAFRICA.COM

DIVESTMENTS

Fonterra sells farms in China to focus on home market As the dairy giant unveils bottles made from sugarcane in New Zealand

CHINA – Fonterra, the New Zealand multinational dairy co-operative has agreed to offload its farms in China to two local companies for NZ$555 million (US$367m) as it aims to focus on its home market and reduce debt.

The deal saw Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited, purchasing Fonterra’s two farming-hubs in Ying and

Yutian for NZ$513 million (US$339m). In a separate deal, Beijing venture capital firm Sanyuan will purchase Fonterra’s remaining 85% interest in its Hangu farm for NZ$42 million (US$28m), taking its ownership fully.

“We don’t shy away from the fact that establishing farms from scratch in China has been challenging, but our team has successfully developed productive model farms, supplying high quality fresh milk to the local consumer market. It’s now time to pass the baton to Youran and Sanyuan to continue the development of these farms,” said CEO Miles Hurrell.

In New Zealand, Anchor, the dairy company’s key brand is set to launch the first of its kind plant-based milk bottle made from sugarcane. This aligns with Fonterra’s commitment to have all packaging reusable, recyclable or compostable by 2025.

The sugarcane is natural, renewable, and sustainably sourced and is an alternative to bottles made from non-renewable sources like fossil fuels. In addition, it captures CO2 from the atmosphere as it grows; resulting in a bottle that also has a low carbon footprint.

PRESENTED BY

M ASTERCLASS

AFMASS

WEBINAR

12

FOOD EXPO VI RTUAL SEMINARS

NOVEMBER 2020 2.00 PM - 4.00 PM EAT 11.00 AM - 01.00 PM GMT

SUSTAINABLE PACKAGINGIN AFRICA NEW TECHNOLOGIES & CONCEPTS FOR AFRICA’S INDUSTRY IN THE 21ST CENTURY

David Mulwa

Stefan Faregang

Regional Sales Manager, Ishida East Africa FOODBUSINESSAFRICA.COM

Managing Director, Tetra Pak Southern Africa

Kemisola Oloriegbe Packaging Professional, FMCG. Nigeria

www.afmass.com/sustainable-packaging-webinar SEP/OCT 2020 | FOOD BUSINESS AFRICA

27

TRAINING CENTRE

Ethiopia to open coffee college to spearhead research, build capacity

FUNDING

COCOBOD inks large US$1.3b syndicated loan facility for 2020/2021 season

ETHIOPIA – The leading coffee

producing country in Africa Ethiopia is set to host its first institution of higher learning focusing on the coffee industry, which will deliver courses and conduct research.

To be established with an investment of 50 million euros (US$58.6m), the institution known as Coffee College will start delivering the programs in the first quarter of 2021.

The owners of the College, who run a coffee roasting business in Austria, partnered with Technical University of Munich (TUM), one of Europe’s leading universities to craft the curriculum.

It will offer diploma and bachelor’s degree after two and four years respectively, while an additional two years is required for a master’s degree. The College will also provide coffee services such as inspection, testing and verification.

To facilitate its operations, it will have an academic wing responsible to deliver the university program and a commercial wing, which will be in charge of utilising the knowledge and findings of the university programme for business purposes.

“If well-exploited, the coffee industry is very important for every sector. The College wants to actualise this,” said Erich Fussl, president of the College.

The institution plans to source funds for research and development projects mainly from the European Union, as well as from the Malaysian Sovereign Wealth Fund, the World Bank, the United Nations, the Asian Development Bank and the African Union.

28 SEP/OCT 2020 | FOOD BUSINESS AFRICA

GHANA – The Ghana Cocoa Board (COCOBOD), in collaboration with a consortium of international and local financiers, have inked an agreement for a US$1.3 billion syndicated loan facility for 2020/2021 cocoa crop season.

The facility, the largest soft commodity deal in sub-Saharan Africa, will be used to finance cocoa purchases and related operational activities for the season. The signing of the Pre-Export Trade Finance Facility saw the participation of a total of 28 institutions, made up of 4 local and 24 international financial institutions.

The local banks are Ecobank Ghana Limited, Societe Generale Ghana Limited, Absa Ghana Limited and Stanbic Bank Ghana Limited. The initial mandated lead arrangers for the facility include ABN AMRO Bank NIV, Bank Of China Limited London Branch, Cooperative Rabobank UA and DZ BANK AG Deutsche ZentralZenossenscha FTS Bank, Frankfurt AM Main. The others are Ghana International Bank PLC, Industrial and Commercial Bank of China Limited – London Branch, MUFG Bank Limited, NATIXIS, Societe Generale and Standard Charted Bank.

“Let me take this opportunity to thank our reliable funding institutions for their continuous trust in the operations of Ghana’s cocoa industry which has culminated in their ever willingness to pull resources together for our annual syndications,” said Chief Executive of COCOBOD, Hon. Joseph Boahen Aidoo.

The Pre-Export Trade Finance Facility has been contracted at a competitive interest rate plus libor of 1.75%, repayable in seven (7) calendar months and projected to help purchase about 900,000 metric tonnes of cocoa.

The signing of the agreement coincided with President of Ghana, Nana Addo Dankwa Akufo-Addo, announcing a new cocoa producer price of GH¢10,560 (US$1,827) per metric tonne, equivalent to GH¢660 (US$114) per bag for the new season, a hike of more than 28% over the price obtained in the outgoing crop year of 2019/2020, which is in line with the international arrangement with Côte d’Ivoire and global stakeholders of awarding the cocoa farmers the full US$400/MT Living Income Differential (LID) aimed to tackle poverty.

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KENYA INVESTMENTS

Egg producer flags off construction of US$10.8m egg processing factory in Nigeria

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NIGERIA – Nigerian Sunshine Food Processing

Concept has commissioned the construction of a N4.2 billion (US$10.8m) egg-processing factory in Ondo State.

The company, majority owned by the state government, will undertake egg processing to produce egg powder and pasteurised liquid eggs. It has a processing capacity of 500,000 eggs per day. The shells will be utilized for manufacturing of poultry feeds.

Upon completion the factory is expected to save the Federal Government US$30 billion used to import eggs annually and create 10,000 direct jobs, notes the company.

“We are looking at production, we are looking at processing, we are looking at marketing and we are looking at foreign exchange earnings. So, it is a full circle. The implication is that more people will come into poultry business, more jobs be created. The advantages are so numerous,” said Akin Olotu, the Special Adviser on Agriculture and Agri-Business to the state governor.

The project, to be completed within 12 months, will be funded by the state government, which owns 55% stake at the company and the Imperial Capital, which has 45% stake. The state government has indicated that it will sell its shares when the company becomes fully operational.

FOODBUSINESSAFRICA.COM

The Kenya Beverages & Drinks Expo showcases packaged and processed soft beverage products including: Still, carbonated and enhanced waters • Fruit juices, cordials, fruit flavoured drinks • Still, carbonated soft drinks • Energy drinks • Sports drinks • Alternative drinks and beverage blends • Plant based nutritional drinks • Brewed drinks • Organic and functional beverages • Processing, packaging, serving and storage solutions for beverage and drink products

AUGUST 5-7, 2021

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29

STRATEGY

Nigerian construction company Julius Berger seeks to diversify into agroprocessing

NIGERIA – Julius Berger Nigeria Plc, a civil engineering and construction company in Nigeria, is seeking to diversify its operations into agro-processing as part of its efforts to deliver on the company’s long-term strategy.

The Board of the company have approved the move as its quest for more operational rigor, given the widespread economic vulnerabilities in the country and the resultant reforms by the government.

“The Board of Directors and the executive management of Julius Berger strongly believes that this diversification direction would support the continued success of the group in the future and align with the strategic objective of the government to stimulate value creation in Nigeria,” stated the company.

The need to broaden its revenue away from the construction industry may not be unconnected with the difficult business environment experienced in the country in recent times.

The company slipped into an N2.398bn (US$6.2m) loss in 2016 but in 2017 it returned to profitability, netting N2.572bn (US$6.6m). Profit After Tax soared to N6.101bn (US$15.7m) in 2018, before growing by 43.56% to N8.759bn (US$22.6m) in 2019.

30 SEP/OCT 2020 | FOOD BUSINESS AFRICA

INVESTMENTS

Frieslandcampina WAMCO to establish dairy institute to develop Nigeria’s dairy industry NIGERIA – FrieslandCampina WAMCO Nigeria, an affiliate of Royal FrieslandCampina, is seeking to develop Nigeria’s first expertise centre for dairy development dubbed Centre for Nigerian Dutch Dairy Development (CNDDD).

The centre, to be established in partnership with key stakeholders, will borrow from best practices that have helped the Dutch dairy industry stand out for decades and will focus on breeding, farming and feeding management as well as quality control, aimed to drive productivity and sustainability in the industry.

Managing Director of the company, Ben Langat indicated that the new Centre would foster cooperation among dairy stakeholders as it will engage and promote cooperation among the government, private sector, academics, students and dairy farmers.

Putting things in perspective,

Langat also explained that the Nigeria dairy sector presently faces major challenges, adding, “However, FrieslandCampina WAMCO in partnership with the federal government is determined to transform the sector from its current subsistence phase to a commercial quality-focused model.”

Through its backward integration plan dubbed Dairy Development Programme (DDP), the dairy processor has made huge strides in increasing fresh milk collection from farmers, hitting an all-time high record of 40,000 litres of milk per day.

FrieslandCampina WAMCO recently finalized the acquisition of Nutricima’s dairy business from PZ Cussons Nigeria Plc and taking over the company’s production facility in Ikorodu, Lagos State and the brands Olympic, Coast and Nunu, a range of powdered, evaporated and ready to drink milk products.

INVESTMENTS

Middle Eastern retailer LuLu Group acquires US$1 billion for expansion in Egypt EGYPT – LuLu International Holdings (LIHL), one of the leading hypermarkets & supermarket chains in the Middle East has entered into a non-binding agreement with Abu Dhabi headquartered investment firm, ADQ to acquire US$1 billion for expansion in Egypt.

Under the terms of the agreement, ADQ and LIHL will work to collectively develop up to 30 hypermarkets and 100 express minimarket stores in the North African country.

In addition, it will also see the development of state-of-the-art logistics hubs, distribution and fulfilment centres to strengthen the retailer’s ecommerce business across Egypt, indicated ADQ.

“Egypt is a very important growth market for us, and we see great potential for our future business there. Our agreement with ADQ will better position us to continue our rapid expansion of our operations across Egypt,” said Yusuff Ali MA, Chairman of Lulu.

It is estimated that this expansion will create up to 12,000 jobs, fostering economic and social growth throughout the country.

“The phased roll-out of multiple retail stores would provide significant socio-economic benefits to local communities across the country, as well as bolster the quality and range of products available to Egyptian consumers.

FOODBUSINESSAFRICA.COM

KENYA

STRATEGY

PepsiCo targets to source 100% renewable electricity by 2040

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USA – Leading global beverage and snacks giant

PepsiCo is targeting to source 100% renewable electricity across all of its company owned and controlled operations globally by 2030 and across its entire franchise and third-party operations by 2040.

With PepsiCo’s scale, the transition has the potential to reduce approximately 2.5 million metric tons of greenhouse gas (GHG) emissions by 2040, notes the company. “With the devastating effects of climate change being felt around the world and the global food system under significant strain, accelerated action is needed. We know the responsibility that comes with our size and scale, so transitioning PepsiCo’s global business operations to 100% renewable electricity is the right step forward to deliver meaningful impact as we continue to advance our sustainability agenda,” said Jim Andrew, Chief Sustainability Officer, PepsiCo. With this announcement, the company joins RE100, an initiative led by the Climate Group in partnership with CDP, to bring together the world’s most influential companies committed to 100% renewable electricity.

To achieve 100% renewable electricity globally, PepsiCo will employ a diversified portfolio of solutions, including Power Purchase Agreements (PPAs) that will support the development of new projects such as solar and wind farms around the world. Purchased energy certificates will also play a role in enabling the nearterm transition to renewable sources in many locations.

In addition, the company will continue to establish onsite wind and solar projects at its facilities around the world, such as the rooftop solar energy panels installed at PepsiCo’s global headquarters earlier this year. and together with juices, nectars and still drinks (JNSD) constitutes 25% share globally. However, the company notes that by 2022 the dairy growth is forecast to outpace that of JNSD.

FOODBUSINESSAFRICA.COM

The Kenya Coffee & Tea Expo showcases packaged and processed coffee, tea, cocoa and other related hot beverages from Kenya, Africa and the World to a local, regional and international audience, including: Packaged coffee, tea, cocoa and other hot beverage products • Ready-to-drink coffee, tea, cocoa and other hot beverages • Wellness and other plant based hot and cold drinks • Medicinal and functional drinks • Equipment and solutions for preparing, cooking and serving coffee, tea, cocoa and other hot beverages • Ingredients for preparing coffee,tea and other hot beverage products • Coffee and tea houses.

AUGUST 5-7, 2021

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STRATEGY

MARKET TRENDS

Alternative dairy products segment to rise by up to 65% by General Mills to reduce greenhouse gas emissions by 2030 – Tetra Pak 30% over the next decade USA

– General Mills, the multinational manufacturer and marketer of branded consumer foods, has pledged to reduce absolute greenhouse gas (GHG) emissions by 30% across its full value chain over the next 10 years.

The newly announced commitment aligns with guidance from the Science Based Target Initiative (SBTi) based on the aim to limit global temperature rise to 1.5°C. “We’re proud to be making this ambitious goal which will take strong leadership and collaboration to drive holistic change. From farmers and suppliers, to where we make our food, to packaging producers and shippers, to retailers, and finally how we get it to our consumers’ tables, each step in our value chain has a critical role to play - that’s how we’ll tackle this to ensure we are doing more and taking bolder actions,” said Jeff Harmening, Chairman and CEO of General Mills.

In addition to absolute greenhouse gas reduction, the company has committed to a longterm goal to achieve net-zero emission levels by 2050. It is also seeking to advance regenerative agriculture practices on 1 million acres of farmland by 2030 and activating programmes across the ingredient categories with the largest GHG footprint.

Furthermore, the company aims to reduce food loss and waste by 50% in its operations and ‘advance respect for human rights’ in its value chain in accordance with the United Nations (UN) Guiding Principles on Business and Human Rights.

32 SEP/OCT 2020 | FOOD BUSINESS AFRICA

GLOBAL – The dairy industry across the world is set to undergo a major transformation by 2030, as dairy alternative products are forecasted to become mainstream in many markets, reducing the consumption of milk derived from cows.

A new research by the world’s leading food processing and packaging solutions company Tetra Pak and Lund University has revealed that the demand for dairy alternatives could increase by 25% to 65% by 2030, with lab-grown dairy potentially occupying up to 50% of the market.

On the other hand demand for cow-based dairy is foreseen to reduce by between 35-75%, reveals the study titled ‘Global trends affecting dairy strategies.’

“The food & beverage sector will undergo an enormous transformation over the next decade, with the dairy industry feeling this most acutely. Clearly, many challenges lie ahead – but there are plenty of opportunities for manufacturers too. The key to success in the new landscape will be in embracing flexibility and proactively responding to the wave of disruptive changes,” Frederik Wellendorph, Vice President Business Unit Liquid Food, Tetra Pak said.

Analysing six key global markets, including the UK, US, China, India, Nigeria and Brazil, the study

outlined four scenarios The first scenario, ‘Green Dairy’ is marked by strong socioenvironmental forces, such as consumer demands and policy restrictions but little technological transition, that drive the dairy industry to invest heavily to reduce carbon footprint.

‘New Fusion’ is dominated by innovative technologies and processes, but weak socioenvironmental forces, would significantly impact the industry, while the ‘Brave New Food’ is the scenario combining both, where THE KEY TO SUCCESS IN THE NEW LANDSCAPE WILL BE IN EMBRACING FLEXIBILITY AND PROACTIVELY RESPONDING TO THE WAVE OF DISRUPTIVE CHANGES - FREDERIK WELLENDORPH - VICE PRESIDENT, BUSINESS UNIT LIQUID FOOD, TETRA PAK

strong socio-environmental forces and high innovative technologies would lead to a complete transformation. ‘Dairy Evolution’ is the scenario characterised by no big surprises, where the dairy industry would continue to follow current trends with smaller disruptions.

Tetra Pak reveals that dairy products currently hold 16.3% share of all beverage consumption and together with juices, nectars and still drinks (JNSD) constitutes 25% share globally.

However, the company notes that by 2022 the dairy growth is forecast to outpace that of JNSD.

FOODBUSINESSAFRICA.COM

KENYA STRATEGY

CCBSA ups solar power installation gearing towards sustainably generating 25% energy by 2025

Beer, Wine & Spirits

Expo

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SOUTH AFRICA – Coca-Cola Beverages South Africa (CCBSA), aiming to have a quarter of its electricity needs supplied by renewable energy sources by 2025, is planning to install solar power at 12 of its plants by the end of 2020.

The beverage giant has ramped up its solar power generation capacity, with seven out of its 13 manufacturing facilities now using the renewable source of energy around the country, as at the end of August, and is rolling out solar photovoltaic panels at its Devland, Heidelberg, Pretoria and Midrand plants.

CCBSA’s Premier plant in KwaZulu-Natal as well the Bloemfontein Tannery plant and Bloemfontein Gutsche plant commissioned their solar systems earlier in 2020, while engineering teams are now preparing to complete additional projects at the company’s Phoenix, Lakeside, Wadeville, Polokwane and Elgin sites.

With the installation, CCBSA aims to generate up to 18,313 MWh per annum, or 11% of the company’s total electricity demand based on 2019 usage.

“Due to delays as a result of the Corona virus pandemic, a total of only 1,860 MWh of solar energy had been generated by the end of August across all CCBSA plants. While this is behind our initial projections, we are well on our way to reaching (and surpassing) our 2019 total generation of 2,905 MWh, as we have an additional three plants generating solar, up from four in 2019,” said CCBSA’s Manufacturing and Technical Director, Henry Peek.

In order to make better use of the additional capacity, the next phase of the company’s project will be to engage with municipalities to explore power export agreements, so that energy can go back into the national grid to enable its communities to likewise benefit from green energy.

FOODBUSINESSAFRICA.COM

1000+

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The Kenya Beer, Wine & Spirits Expo showcases the most outstanding and innovative alcoholic beverage products including: Regular Beer • Craft beer, wines and spirits • Wines • Spirits • Ciders and hard seltzers • Non-alcoholic and low alcohol beer, wines and spirits • Cocktails and blends and alternative beverages.

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AGRIBUSINESS

Fan Milk initiates backward integration program to boost dairy industry

NIGERIA – Fan Milk Plc, the Nigerian subsidiary of multinational foodproducts corporation Danone, has partnered with the government of Ogun state to undertake a backward integration project to enhance local dairy production.

Under the project, Fan Milk intends to develop a world-class dairy farm, which will incorporate pasture development. In addition, a technical institute at the Odeda Farm Institute will be established, where local dairy farmers will be trained to improve their skills and bring the expertise of its parent company to the fore.

Fan Milk is confident that the plan will create positive social impact as it leverages government’s support and the relevant experience Danone has developed along its journey in Africa.“Our objective is to ensure that we partner with local dairy farmers in communities within Ogun State to accelerate the development and expansion of the local dairy market while also creating the social and economic impact of improving the livelihood of the ecosystem within which we operate,” said Fan Milk Managing Director, Mr Ferdinand Mouko.

The initiative is in line with the Central Bank of Nigeria (CBN) policy to discourage the importation of dairy products like milk, yogurt, cheese and other milk derivatives, of which the country spends about US$1.5 billion annually.

34 SEP/OCT 2020 | FOOD BUSINESS AFRICA

INVESTMENTS

AB InBev, IHCL jointly open first microbrewery dubbed 7Rivers Brewpub in India

INDIA – The world’s largest interactive dynamic to the city’s brewer, AB InBev has partnered with South Asia’s largest hospitality company, Indian Hotels Company Limited (IHCL), to open the firstof-its-kind brewpub with an onsite microbrewery, dubbed 7Rivers Brewpub.

The newly launched brewpub, opened at Taj MG Road, Bengaluru in India, is the first of 15 locations to be launched across IHCL hotels over the next five years, with the collaboration of the two companies bringing together IHCL’s expertise in delivering innovative F&B concepts, its culinary prowess and exemplary service, coupled with AB InBev’s 600-year-old brewing heritage.

Mr. Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL, said, “From introducing global cuisines to the latest trend in bars, IHCL has led the way in pioneering F&B experiences for over a century.

7Rivers Brewpub at Taj MG Road is another such innovative offering, which we believe will add an

vibrant social and entertainment culture.”

Spread across 2700 sq. ft. of indoor space, the 7Rivers Brewpub will offer beer inspired by the quintessential flavors of the region, as well as those made from the finest locally sourced ingredients and crafted by experienced international and Indian brew masters.

“We are thrilled to unveil our first 7Rivers microbrewery through our exclusive partnership with IHCL, in the beer capital of India. We are constantly exploring avenues to offer the best beer experience to delight our consumers, as we see a growing trend towards artisanal beers in the country,” Kartikeya Sharma, President – South Asia, AB InBev, said. Designed by worldrenowned designers, JOI Design from Hamburg, the brewpub blends the traditional charm of Irish taverns with modern 21st century designs.

FOODBUSINESSAFRICA.COM

INVESTMENTS

Cargill to build US$21m House of Chocolate complex in Belgium to facilitate customer innovation

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BELGIUM – The US commodity giant Cargill has unveiled plans to invest US$21 million to build a “House of Chocolate” complex at its Mouscron, Belgium, chocolate production plant.

The new 700-square-meter complex will include a state-of-the-art chocolate experience center, a unique pilot plant, a sensory lab and creative workspace for the company’s European R&D team of chocolate engineers.

It will enable customers to experience the convenience of an all-in-one development process, from inspiration, innovation and training, through pilot lab testing, sensory testing and finally, culminating in commercial-scale production, at a single location.

“Innovation stands at the forefront of our House of Chocolate, as we bring together all our expertise and resources. It will allow us to collaborate with customers at every step of their product development journey, transforming ideas into reality using a streamlined approach to facilitate innovation and deliver greater efficiency and speed to market,” said Harold Poelma, President of Cargill Cocoa & Chocolate.

Staffed by a team of more than 40 chocolate engineers, including sensory experts, technical service specialists and R&D scientists, the new facility will serve as the hub for all of Cargill’s chocolate, coating and filling activities.

Construction has already begun, with the pilot center scheduled to open in 2021. The chocolate experience center and sensory lab will be operational in January 2022. In keeping with Cargill’s commitment to sustainability, the new complex incorporates cuttingedge technology to reduce its ecological footprint, including the use of geothermal energy to significantly reduce energy consumption.

FOODBUSINESSAFRICA.COM

1000+

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The Kenya Hotels, Restaurants & Catering Expo showcases the latest solutions and technologies to the HORECA industry from Kenya, Africa and the World to a local, regional and international audience, including: Cookery and Cutlery Solutions • Ingredients and Chemicals • Hygiene Solutions & Services • Kitchen, Rooms & Bathroom Solutions • Cleaning & Laundry Solutions • Hospitality Security, ICT & Technology Solutions • Hospitality Franchise Solutions

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INVESTMENTS

Upfield to build new production facility for plant-based spreads, vegan cheese in Canada

CANADA – Plant-based food products giant Upfield has announced plans of expanding its Canadian operations with a new production facility in Brantford, Ontario for plant-based spreads and vegan cheese.

The new state-of-the-art facility, expected to be operational at the end of 2021, will provide the technical and production efficiencies required to support the company’s growth and will undertake the production of its expanding spreads and margarine product portfolio, including Becel margarine and plant-based bricks.

In addition, it will feature a scaled-up manufacturing platform that will support the production of new innovations, such as Violife a vegan cheese alternative.

Dan Bajor, president of Upfield Canada, said, “Upfield is investing and innovating to expand our plantbased business in Canada and introduce a new product line here, our plant-based cheese product, Violife. As part of this expansion, we are launching production in Brantford. Our new state-of-the art facility will supply our spreads and plant-based cheese product to Canadian consumers and support the export of Violife to the United States and eventually to markets in Latin America.”

36 SEP/OCT 2020 | FOOD BUSINESS AFRICA

AGRIBUSINESS

Bidco Africa launches sunflower farming initiative to boost local sourcing KENYA – Bidco Africa, the leading consumer goods company in East Africa has partnered with Pan Africa Climate Justice Alliance (PACJA) to launch a sunflower farming initiative in Kenya.

Dubbed ‘Tujiinue Tena’, the sunflower initiative targets more than 3,000 farmers in the semiarid area of Igembe South, Meru County, Eastern Kenya to raise local production of sunflower to meet the company’s demand of 10,000 metric tonnes for oil production.

The edible oil manufacturer is ready to spend more than KSH120 million (US$1.1m) in buying sunflower seeds from the farmers, as it races to plug a supply deficit of more than 6,000 tonnes. “We need 10,000 metric tonnes of sunflower for oil production. We are forced to import from Tanzania, Uganda and Malawi but if local farmers work hard, we will eliminate importation and plough back all the money in the country,” Bidco Africa’s Head of Agribusiness John Kariuki said.

Under the initiative, the farmers will have a dedicated agronomist to ensure optimum production.

The Kenya Seed Company is also in support of the venture as it has offered to provide seed at subsidised price of Sh150 (US$1.38) per kilo.

“The sunflower farming project addresses most of the farmers’ challenges as it is drought resistant and has a guaranteed market from the manufacturer. This will support farmers to supplement their food, nutrition and financial sources,” said PACJA executive director Mithika Mwenda, a climate justice activist.

IN NUMBERS

10,000

AMOUNT IN METRIC TONNES THAT BIDCO AFRICA AIMS TO RAISE FROM THE LOCAL PRODUCTION INITIATIVE

INVESTMENTS

Vietnam dairy company TH Group begins work at hightech dairy farm and milk processor VIETNAM – TH Group, the largest fresh milk company in Vietnam has held the groundbreaking ceremony for its high-tech dairy farm and milk processor in Hoa Thuan town, Quang Hoa district in the northern mountainous province of Cao Bang.

The project has a total investment capital of VND2.54 trillion (US$109.7 million) in a 63.7 hectares dairy farm and is set to raise 10,000 cows, and a processing plant with an annual capacity of 49,000 tonnes of milk.

It is estimated that, when the project is put into operation, annually it will contribute about VND 600 billion (US$25.8m) to the province’s gross product growth

(GRDP), over VND 200 billion (US$8.6m) of revenue to the budget and create jobs, improve income for about 500 direct workers and thousands of indirect workers.

The project is being implemented using modern technology including the world’s most advanced dairy management system, disease management and veterinary procedures; water and waste treatment equipment and processes from Isarel, Japan, Israel and the Netherlands.

According to VietReader, TH Group pledges to provide farmers in the province with breeds and technical guidance to develop raw materials for dairy cows.

FOODBUSINESSAFRICA.COM

KENYA

AGRIBUSINESS

Solevo enters into agreement with government to boost rice production

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IVORY COAST – The government of Ivory Coast, through the Ministry for the Promotion of Rice Growing, has entered into a Memorandum of Understanding (MoU) with Solevo Cote d’Ivoire, the distributor of agricultural chemicals and inputs, to promote rice production in the country.

Under the partnership, Solevo will provide rice farmers with the necessary fertilizers, crop protection products and technical support to increase their productivity and revenues. The agreement, is part of the National Rice Development Strategy for the period 2020– 2030, whose objective is to ensure the country becomes self-sufficient in high-quality rice before 2025 and turn Ivory Coast into one of the largest African producers and exporters of rice by 2030.

The MoU comes days after OCP Africa, a subsidiary of the OCP Group, the world leader in the phosphate market and its by-products, forged a partnership with the International Finance Corporation (IFC) to support the rice sector in the country.

Minister Gaoussou Touré, and the Managing Director of Solevo, Marc Desenfans signed the agreement between Solevo and the government in the presence of the major players in the rice sector: the National Center for Agronomic Research (CNRA), AfricaRice, ADERIZ and OIA-RIZ. According to Solevo, the partnership confirms the will of the government to improve each level of the value chain by relying on the expertise of each of its partners. “The development of rice growing is a priority for the government. I thank my partners including Solevo for their significant contribution to the practical implementation of the National Rice Development Strategy,” said Minister Gaoussou Touré.

A second agreement was inked during the ceremony between the Ministry, the CNRA and AfricaRice for the supply of high-yield and quality seeds. According to USDA, milled rice production in Ivory Coast for marketing year 2020/21 is projected at 1.4 million metric tonnes (MMT), just above the current record of 1.399 MMT from 2015/16. The report also forecasts that 2020/21rice imports will be 1.3 MMT. FOODBUSINESSAFRICA.COM

1000+

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The Kenya Sweets, Snacks & Chocolate Expo showcases the most delicious and unique sweets, confectionery, snacks and chocolate products from Kenya, Africa and the World to a local, regional and international audience.

Sweets, Candy and other Confectionery products• Extruded Snacks and Fruit based snacks and more • Snack bars and more • Pastries, wafers, sponge cakes etc • Chocolate and chocolate products • Snacky seeds, nuts, grains and legumes • Baked snacks and sandwiches • Liquid snacks

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37

M&A

Indomie noodles maker in Ghana Dufil acquires processing facility from competitor GHANA – Ghanaian manufacturer of Yum-mie Noodles brand, Blow Chem Industries has sold its noodle division to Indomie brand owner, De United Food Industries Ghana Limited (DUFIL).

Blow Chem Industries Limited was first established in Ghana in 2017, having a production capacity of 6,000 boxes of 40 packets each of noodles every 24 hours. DUFIL, the leading instant noodle producer in the country has undertaken the acquisition, which includes both the assets and the brand, to consolidate its leadership in the market, reports Ghanaian Times.

General Manager of DUFIL Ghana, Mr Mahesh Shah, said the deal was part of the company’s expansion drive and commitment to remain in Ghana for the long haul. He said DUFIL would continue to serve the Ghanaian market faithfully and invest a lot more to provide best quality product at the most affordable price.

Indomie has been a dominant noodle brand in Ghana since it was introduced about a decade and a half ago in 2006. Recently, the company received a major boost with the inauguration of a US$20 million indomie noodles and spaghetti manufacturing factory under the One District One Factory (1D1F). The factory, situated in the Tema West Municipality has a production capacity of 30,000 tonnes of Indomie noodles and 8,000 tonnes of spaghetti annually.

The form’s parent company DUFIL Prima Foods Plc, based in Nigeria, is one of the leading noodles and pasta producers in the West African sub-region.

38 SEP/OCT 2020 | FOOD BUSINESS AFRICA

INVESTMENTS

Ghana opens rice processing factory under 1D1F initiative to boost production

GHANA – The government of Ghana has inaugurated a rice processing center in the AdansiSouth District of the Ashanti Region, constructed under the government’s One District, One Factory (1D1F) initiative, aimed to boost production of the staple crop.

The facility has a processing capacity of 140 bags of rice per day and was constructed under the supervision of the Ministry of Food and Agriculture and B. Kaakyire Agro Chemicals Company Limited.

It is expected to enhance the rice value and supply chain to the advantage of farmers in the District.

Alhaji Dr. Mahamudu Bawumia, the Vice-President of Ghana, inaugurating the project, said a total of 76 projects had been completed under the Initiative and are currently in operation. According to the VicePresident, 232 1D1F projects are ongoing, of which 168 are new factories and 64 existing ones, that received capital injection.

As an incentive the government has mobilised the local banks to provide GHc2.3 billion liquidity support and it has also subsidized the interest rate of the banks with GHc205 million duty exemption. In the same region, a 1, 000 metric tonnes grains warehouse has been opened.

STRATEGY

Kerry Group commits to reduce greenhouse gas emissions by 33% by 2030

IRELAND – Global food Ingredients company, Kerry Group has unveiled its new sustainability strategy tagged Beyond the Horizon to enable it meet ambitious sustainability targets that address key impacts by 2030.

The targets are focusing on nutrition and health, emissions, energy, circular economy, raw materials, and social impact.

“Beyond the Horizon, our 2030 sustainability strategy, will help consumers eat better, improve our local communities and reduce

the environmental impact, while also meeting both Kerry’s and our customers’ goals,” said Edmond Scanlon, Chief Executive Officer of Kerry Group.

In its strategy, Kerry aims to reduce operational emissions by 33% by 2030, reaching net zero before 2050 and reducing emission intensity of the supply chain by 30% by 2030. It also targets to ensure that all plastic packaging will be reusable, recyclable or compostable by 2025. The company is further set to halve food waste by 2030 and diverting all waste from landfill.

Focusing on Nutrition, Kerry aims to reach over two billion people every day with sustainable nutrition solutions by 2030. It also says it will sustainably source all priority raw materials by 2030 and improve diversity while continuing to foster a healthy and inclusive workplace, also part of the strategy.

FOODBUSINESSAFRICA.COM

AWARDS

Africa’s first Top 100 food industry companies to be published by Food Business Africa magazine AFRICA – A new listing of the most outstanding and impactful food enterprises in sub-Saharan Africa is set to debut, with the objective of celebrating the massive transformation of the food industry over the last two decades in the region The Food Business Africa Top 100 Food CompaniesTM, which will have its inaugural list published in the upcoming November/December issue of the magazine, is aimed at celebrating some of Africa’s leading food companies.

According to Francis Juma, the Editor and Publisher of the Food Business Africa magazine, Africa’s food industry has undergone enormous transformation in the last 20-30 years, and now is the perfect time to highlight the progress of the sector and its impact on communities and the economy in Africa.

“I believe that the pace of change in Africa’s food industry in the last 20 years has been phenomenal.

Looking back to the year 2000, even some of the leading companies and brands right now were not yet even in business yet, while at the same time, this year, we have seen some companies celebrating 100 years! The food industry in the Continent has a whole mix of profiles, but one thing is clear: majority of them are helping chart the future of the industry in Africa in many interesting and unique ways,” declares Juma.

The listing will see food companies in the region evaluated on a number of key critical business and impact areas including innovation leadership, recent investments, impact of the business on its community and economy, and sustainability and industry leadership.

It will cover food companies in sub-Saharan Africa, from South Africa to Sudan, from Kenya to Liberia – but will not include companies from the Maghred countries such as Egypt, Tunisia, Algeria and Morocco.

The annual Food Business Africa Top 100 Food CompaniesTM listing complements the Africa Food Industry Excellence Awards that is also organized by FW Africa, which is the publisher of the Food Business Africa magazine – but while the Awards celebrate new product innovations, recent projects and outstanding people, the listing takes a longer term approach and wider perspective to identify the most outstanding food companies in the region.

Juma adds that the listing will not necessarily be that of the largest companies in the region, but will showcase and celebrate even some of the medium scale companies in the Continent that have stood out for their adoption of new technologies, innovations and sustainability.

“We are excited to begin this new initiative to celebrate the outstanding progress in sub-Saharan Africa’s food industry. We are sure that out of this initiative, we shall be playing our part in contributing to further progress in the region’s food sector,” he added.

FOODBUSINESSAFRICA.COM

KENYA

Oils&Nuts Edible xpo 15+

PAVILLIONS SHOWCASING FOOD, FEED & TECH

0+ 500 S NDEE

ATTE A AFRIC FROM ORLD W & THE

1000+

PROD UCTS & SOLU TIONS FROM AF & BEY RICA OND

The Kenya Edible Oils & Nuts Expo showcases a wide variety of cooking oils and fats, oilseeds and nuts to a local, regional and international audience including: Fresh, processed and packaged oilseeds, nuts and cooking oils • Cooking Fats & Oils • Margarine • Spreads and other oil based products from plant sources.

AUGUST 5-7, 2021

SARIT EXPO CENTRE, NAIROBI, KENYA A SPECIAL PAVILLION AT:

AFMASS

FOOD EXPO KENYA EDITION

WWW.AFMASS.COM/KENYA SEP/OCT 2020 | FOOD BUSINESS AFRICA

39

INVESTMENTS

Pepsico to invest US$110m in green field project for production of potato chips in India

INDIA – Food and beverages giant PepsiCo has committed to double its snacks business in India, announcing a Rs 814 crore (US$110.8 million) green field project in Uttar Pradesh (UP) for production of potato chips.

The new facility will be set up on a 35-acre plot, which has been provided by the UP State Industrial Development Authority (UPSIDA).

It is set to commence commercial production by mid-2021 and will provide direct and indirect employment to around 1,500 people. The company will also source its raw materials, especially potatoes, locally thus supporting local farmers, it said.

According to Ahmed ElSheikh, President PepsiCo India, the organization is extremely optimistic about the future of the Indian market, despite short-term headwinds caused by the pandemic related disruptions.

“Looking ahead, we are committed to double our snacks business in India. In fact, we have increased our investment in our new green field snacks plant in Uttar Pradesh from R500 crore (US$68m) to nearly R814 crore (US$110.8m), generating 1,500 direct/indirect jobs and enabling a local sourcing ecosystem,” stated Ahmed.

PepsiCo is also seeking to increase the capacity of existing food plants in West Bengal and Maharashtra, and has additionally proposed to set up a green field manufacturing facility in Assam, northern India.

40 SEP/OCT 2020 | FOOD BUSINESS AFRICA

INVESTMENTS

Nestle to build US$450m pet food factory in USA, inaugurates R&D Accelerator in Switzerland

USA – Nestlé Purina, the pet food manufacturing division of Nestlé is seeking to invest an estimated US$450 million to revitalize a former brewery, transforming it into an innovative, technically advanced pet food manufacturing facility in North Carolina, USA. The new factory will join Purina's network of 21 existing manufacturing locations across the country and will become operational in 2022. Set on 1,300-plus acres, the facility will employ 300 people by 2024 while also increasing its use of third party employment and local and regional economic development.

"Eden is Purina's first manufacturing operation in North Carolina, and through this expansion we build on our more than 90-year history of making science-based dog and cat foods that pet owners trust. This strategic and long-term investment demonstrates our commitment to providing highquality nutrition for pets," said Nina Leigh Krueger, President, Nestlé Purina U.S. Meanwhile, the company has inaugurated a new R&D Accelerator to drive innovation and speedto-market of sustainable dairy products, as well as plant-based dairy alternatives.

Located at Nestlé's R&D center in Konolfingen, Switzerland, the R&D Accelerator provides a worldclass platform for start-ups, students and scientists to leverage Nestlé's unique dairy and plant protein expertise. It features a fully equipped test kitchen, as well as a co-working office space where internal, external and mixed teams will leverage Nestlé's capabilities to bring novel ideas from concept to test shop in only six months.

PARTNERSHIP

Ethiopia’s beverage bottlers form plastic recycling association towards a circular economy ETHIOPIA – Ethiopian soft beverage and water bottling companies have formed an association known as Green Economy & Plastic Collection Development, to undertake recycling of plastic packaging to alleviate pollution in the country and rehabilitate the environment.

The newly formed association has 20 founding members including Daily, Fam, Cheers, Africa and Aqua Addis waters, as well as Moringa Soft Drink. It received accreditation from the Agency of Civil Society Organisations in mid-July.

The association plans to indulge in rehabilitating the resources that are used to make different

products, work on recycling, advocate on environmental policy and improve awareness of the need for environmental protection.

“Resources aren’t going to last forever. There is a need to give back to the natural world and ensure a long-lasting flow of the resources,” said Getnet Yilkal, Secretary-General Green Economy & Plastic Collection Development.

To facilitate its activities, the consortium of bottlers also seeks to have plastic bottle collectors to establish a chain of disposal and transform these bottles into different products.

FOODBUSINESSAFRICA.COM

KENYA

REGULATORY

Ethiopia removes sugar subsidy as production, importation costs rise ETHIOPIA – The government of Ethiopia has put a halt to the sugar production and import subsidy scheme, which had been in force for a decade, in a bid to enable the country’s sugar corporation to meet its costs.

The Ethiopian Sugar Corporation, which was formed by the government following market disruption caused by inflation and rise in international sugar price, is in charge of the value chain and controls the prices.

The removal of the subsidy has been triggered by rising cost of producing and importing the commodity, while the corporation currently carries 3 billion Birr (US$80m) in debt from the Commercial Bank of Ethiopia (CBE) for sugar imports. The removal of the subsidy will also curb the sale of sugar in the black market at higher prices by some industries.

The directive will increase the factory gate price of the sugar from 15.54 Br a kilogram before value-added tax (VAT) to 20.54 Br. “It’s not meant to make profits. It’s to stop the losses the corporation has been incurring and at least cover its costs,” said Eshete Asfaw, State Minister for Trade & Industry. The latest price change is the fourth since the government took control of the sugar value chain.

Fresh Produce & Grocery EXPO 15+

PAVILLIONS SHOWCASING FOOD, FEED & TECH

0+ 500 S NDEE

ATTE A AFRIC FROM ORLD W & THE

1000+

PROD UCTS & SOLU TIONS FROM AF & BEY RICA OND

M&A

SA food service market place FSN gets backing from Naspers’ investment vehicle SOUTH AFRICA – Naspers, one of the largest technology investors in the world, has invested an undisclosed amount in South Africa based food systems integrator, Food Supply Network (FSN) through its funding unit, Naspers Foundry.

Naspers Foundry, announced at the end of 2018, is a R1.4 billion (US$85.6m) early-stage technology investment vehicle aimed at boosting the South African tech sector. FSN is a marketplace that integrates food ordering systems of manufacturers, distributors, restaurants, hotels and retailers.

The platform streamlines the process across the board as buyers reduce their administrative overheads, payment reconciliations and out-of-stock events.

Distributors on the other hand improve service delivery and grow market share while manufacturers drive sales by accurately showcasing all their brands, products and promotions throughout their supply chain.

“The FSN deal is a great addition to our portfolio of early stage tech investments. It’s a classic marketplace model using technology to more efficiently link the three distinct stakeholder groups involved in the process of efficiently ordering and moving food products across the supply chain,” Fabian Whate, Head of Naspers Foundry, said.

The Kenya Fresh Produce & Grocery Expo showcases the most innovative fresh produce, meat and savoury and condiments products inluding: Fresh and packaged fruits and vegetables • Fresh and packaged herbs and spices • Ready meals and other hot meals • Savoury and condiment products including jams, marmalades, sauces, ketchups, chutneys, peanut butter etc • Retailers, Distributors & Vendors of Fresh Produce & Grocery products.

AUGUST 5-7, 2021

SARIT EXPO CENTRE, NAIROBI, KENYA A SPECIAL PAVILLION AT:

AFMASS

FOOD EXPO KENYA EDITION

WWW.AFMASS.COM/KENYA FOODBUSINESSAFRICA.COM

SEP/OCT 2020 | FOOD BUSINESS AFRICA

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Transparency at the top of Food and Beverage Innovation Trends in 2021 - Innova WORLD - Transparency has emerged as a clear winner among the top trends for 2021, with brands upping their game to meet evolving ethical, environmental and clean label consumer demands, a new report says The Innova Market Insights’ Top Ten Trends for 2021, which equips manufacturers, retailers and brands with the latest insights to drive innovation and answer current consumer demands, notes that the food and beverage industry has progressively evolved, as the COVID-19 pandemic transforms consumer shopping and eating habits around the World.

“The ever-evolving food and beverage industry has seen a significant consumer push for transparency throughout the supply chain, immunity-boosting products and the use of technology. 2021 is a huge year for opportunities and innovation that meet these needs,” reveals Lu Ann Williams, the Director of Insights and Innovation at Innova Market Insights.

According to the Lu Ann Williams, transparency, plant-based foods, personal nutrition, omni-channel shopping and immune health are the top five trends in the food space in 2021 – but it is transparency that has consumers talking and seeking solutions from food manufacturers.

The survey reveals that 60% of global consumers are interested in learning more about where their foods come from.

“Transparency dominates consumer demand in 2021. Increasing transparency to meet evolving ethical, environmental and clean label consumer demands is key,” declares the report, adding that brands adopting and pairing new packaging technologies such as

42 SEP/OCT 2020 | FOOD BUSINESS AFRICA

invisible barcodes and near-field communication technology with creative, meaningful storytelling will be successful. “The consumer lifestyle trend toward cleaner living is broadening and heightening expectations around what constitutes a clean label.

Aspects include human/animal welfare, supply chain transparency, plant-powered nutrition and sustainable sourcing,” it reveals.

As COVID-19 transforms our shopping and eating habits, staying ahead of the curve and keeping on top of the changing and sophisticated food and beverage landscape is of paramount importance for food companies, Innova urges.

The pandemic has bolstered consumer focus on overall health and immunity, with consumers seeking foods and ingredients that support personal health and attention is now on the post-COVID landscape to explore how these new behaviors will shape the future of the food and beverage industry, the research company urges.

“Transparency throughout the supply chain will dominate in 2021, with consumers searching for brands that can build trust, provide authentic and credible products, and create shopper confidence in the current and post-COVID climate,” underlines Lu Ann Williams.

Plant power

According to the survey, as plant-based trends reach global phenomenon status, the “plant-based” definition is ever-evolving, with its rising mainstream appeal going to drive expansion to different regions and categories in 2021, including accelerated demand for FOODBUSINESSAFRICA.COM

MARKET TRENDS new formats, plant proteins and more sophisticated alternatives.

The report echoes similar findings by other players in the food sector. According to a recent report by Tetra Pak and Lund University in Sweden, the dairy industry is set to undergo a major transformation by 2030 as dairy alternative products are forecasted to become mainstream in many markets, reducing the consumption of milk derived from cows, with the demand for dairy alternatives forecasted to increase by 25%-65% by 2030.

It adds that propelled by sustainability and animal welfare concerns, lab-grown foods have the potential to disrupt the industry by mainstreaming the use of new technologies, with the top four reasons for consumers considering plant-based alternatives being health, diet variety, sustainability and taste.

Innova informs that as consumers are powering up on plant protein, opportunities and challenges relating to regional consumer preferences and sustainability expectations are attracting attention.

But, while sophisticated personalized nutrition advice on functional foods is still expensive, Innova says that the emergence of technology platforms allows for comparable customer service via automation. The survey found that 64% of global consumers have found more ways to tailor their life and products to their individual style, beliefs and needs.

THE PANDEMIC HAS BOLSTERED CONSUMER FOCUS ON OVERALL HEALTH AND IMMUNITY, WITH CONSUMERS SEEKING FOODS AND INGREDIENTS THAT SUPPORT PERSONAL HEALTH. ATTENTION IS NOW ON THE POSTCOVID LANDSCAPE TO EXPLORE HOW THESE NEW BEHAVIORS WILL SHAPE THE FUTURE OF THE FOOD AND BEVERAGE INDUSTRY

According to the company, plant-based claims for food and beverages launches are experiencing strong growth globally with a CAGR of 57% over the 2015 to 2019 period, compared with 13% for vegetarian claims and 22% for vegan products. A recent survey also indicated that 58% of global consumers prefer plantbased claims when buying alternatives to meat and/ or dairy.

Innova says that fast food restaurants have been a large contributor to this transformation, adding plantbased meat sandwiches, such as Impossible Foods Impossible Burger and Beyond Meats’ Beyond Burger to their menus and making them mainstream news.

Major dairy brands are also going non-dairy, with US dairy giant Chobani debuting Chobani Oat oat-based milks and yogurts from the US Greek yogurt specialist, and plant-based soy variants in Danone’s Activia probiotic range.

However, the research company says major challenges for plant-based foods include the provision of clean label and sustainable options, targeting FOODBUSINESSAFRICA.COM

IN NUMBERS

57%

CAGR GROWTH RATE OF PLANTBASED CLAIMS OVER THE 2015-19 PERIOD, OUTPACING VEGETARIAN & VEGAN CLAIMS ingredient simplicity, the use of minimal processing and optimization of taste and textural experiences.

The other trend is the rise in personalized nutrition, as consumers look for food and beverage options that fit their unique lifestyles. “Consumers expect a tailored approach to eating, with technological breakthroughs, constant new launches and exciting sensorial experiences providing the opportunity for customized lifestyles to extend to food and beverage consumption,” the report asserts.

More channel options for consumers

The survey adds to the emerging trend of consumers seeking more alternatives for their shopping experiences, which has been exacerbated by the Covid-19 pandemic, adding that ‘as foodservice and retail domains increasingly overlap, consumers can eat what they want, when and where they want it.’

“Consumers are seeking convenience, richer experiences and accessible indulgence. Traditional hospitality is getting edged out, particularly with COVID-19 giving consumers more time to stay at home and sharpen their own culinary prowess. Increased home cooking is driving the use of convenient meal kits/starters and more sophisticated ingredients, resulting in new food experiences.”

The surbey found 46% of consumers believe restaurant-branded products are a convenient way to attain the restaurant experience and flavors at home, reiterating that along with restaurant delivery growing, consumers can now directly access many specialty products that were previously only accessible via foodservice.

The report notes that with the ongoing anxiety stemming from COVID-19, consumers will prioritize their immune health into 2021. It reveals that 60% of global consumers are increasingly looking for food and beverage products that support their immune health, with one in three saying that concerns about immune health increased in 2020 over 2019.

Innova advices that immunity-boosting ingredients will play a significant role in the coming year, while research and interest in the role of the microbiome and personalized nutrition as ways to strengthen immunity will accelerate

SEP/OCT 2020 | FOOD BUSINESS AFRICA

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NEW PRODUCTS INNOVATIONS

KO Tonic and Iced tea Soft Beverages

Savannah brands has launched a new refreshing range of tonics and iced tea in 330ml packs. The tonics stylishly packed in glass bottles are poised to be enjoyed on their own or as excellent mixers. The range include classic, rose & cucumber, light, chilli & Turmeric.

The iced tea in 330ml cans a first in Kenya are made from natural and locally available spices and fruits from Kenya. The range include Tropical, passion fruit and Hibiscus & lime. No preservatives. No added sugar. No artificial flavours.

Savanna Brands Kenya | www.savannabrandsco.com

Casa Buena Wine Alcoholic Beverage

Kenya Wine Agencies has launched 2 varieties of wine in 1 litre carton box. Casa Buena is a ready to drink Sangria wine, which is made by blending wine and fruits. It comes in two variants: sweet red wine and sweet white wine.

KWAL, Kenya | www.kwal.co.ke

Bio Non-Dairy Coconut Milk Yoghurt Non Dairy yoghurt

Bio Foods Products has debuted a new non dairy coconut milk yoghurt with real fruits. A first for the region, the plant based product is made with coconut milk sourced from Kentaste Ltd. Available in 4 variants of mango, pineapple, tropical mix and nature plain variants, it is packaged in 200mls packs.

Bio Foods Products, Kenya | www.biofoods.co.ke

Zammilk double cream yoghurt Dairy yoghurt

Zammilk, the dairy subsidiary of Zambeef Products Plc, has launched a new value-added dairy product. The double cream yoghurt comes in 500mls packaged in a plastic cup.

Zambeef Products Plc, Zambia | www.zambeef.zm

Horizon non-alcohol beer Non-alcoholic Beverage

Namibia breweries has launched a non-alcoholic flavoured beer product in the Namibian market . Available in stylish 330ml bottles the product comes in 3 variants of flavours: apple, berries and lemon.

Namibia Breweries, Namibia | www.nambrew.com

44 SEP/OCT 2020 | FOOD BUSINESS AFRICA

FOODBUSINESSAFRICA.COM

9 Barrels Scotch whisky Alcoholic Beverage

Premier Distilleries Limited has introduced blended Scotch whisky which has been bottled in Uganda. The company says the product was developed by Angus Dundee, an expert in blended Scotch whisky from the UK. Available in 750 ml glass bottles.

Premier Distilleries, Uganda | www.premierdistilleriesltd.

com

Blue Band baking margarine Baking margarine

Upfield Kenya has debuted a striking orange coloured 1 kg pack Blue Band margarine in plastic tub with a rich buttery flavour for use in baked products including cakes, bread and cookies

Upfield, Kenya | www.upfield.com

Nuvita Sponge Cake range Snack

The first of its type in the region, Mjengo Limited has launched an industrial line produced Nuvita sponge cake into the East African market. The company says the cake is creamy, airy and definitely delicious. It iss available in variants including vanilla cake with vanilla cream, chocolate cake with vanilla cream, chocolate coated chocolate cream with vanilla cream and chocolate coated vanilla cake with vanilla cream etc.

Mjengo Limited, Kenya | www.mjengo.com

Pearl ready to drink beverages Alcoholic Beverage

Leading Distillers Uganda Ltd has debuted a range of high quality ready to drink alcoholic products that meet the highest international standards with tropical fruity ingredients to quench the thirst of its consumers, available in different flavours: Ocean Breeze, Bay Breeze, Sea Breeze, Coconut Cream and Blackberry. Available in 275 ml glass bottles, the products have alcohol content of 7% ABV

Leading distillery, Uganda | www.leadingdistillers.co.ug

Canna maize flour Maize meal

Giant Millers, a new entrant into the maize milling industry in Kenya has debuted its Canna Nutritious Maize Meal products. The fortified maize meal is available in 2kg and 1kg paper packaging

Giant Millers, Kenya | www.giantmillers.co.ke

FOODBUSINESSAFRICA.COM

SEP/OCT 2020 | FOOD BUSINESS AFRICA

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SPOTLIGHT:

BUA Group boosts investments in Nigeria’s grains industry Diversified food producer doubles down on its wheat and pasta business with major investments announcements

Abdul Samad Rabia, the Executive Chairman of the BUA Group 46 SEP/OCT 2020 | FOOD BUSINESS AFRICA

FOODBUSINESSAFRICA.COM

O

ne of Nigeria’s richest businessmen, Abdul Samad Rabia, the Executive Chairman of the BUA Group, the diversified foods and infrastructure conglomerate is rejigging the company’s food industry strategy by boosting its flour milling and pasta business capacity, after having divested the major part of the business in 2015 to Olam International.

The company’s Amber Foods Limited, through its 100% owned subsidiary Quintessential Foods Nigeria Limited, a miller and pasta producer was acquired by Olam for US$275 million, as the commodity trader turned food processor sought to up its game in West Africa’s packaged foods sector – where it currently holds a leading position as the region’s largest and most diversified wheat milling operator, with plants in Nigeria, Ghana, Cameroon and Senegal – and has also added the animal feed business line in Nigeria, as well.

The assets, which were acquired by Olam, included two wheat mills and a pasta manufacturing facility in Lagos, a non-operating mill in Kano in the North of Nigeria, and a wheat mill and a pasta manufacturing plant under construction in Port Harcourt in the Southeast of Nigeria.

The BUA Group was at the time one of the top five wheat millers in the country, with wheat milling and pasta manufacturing capacities of 3,760 and 700 metric tonnes per day (TPD) respectively, making Olam a key player in the two segments, with its total wheat milling capacity in the country increasing from 2,380 TPD to 6,140 TPD. It currently operates installed flour milling capacity of 1,600 tonnes per day and five lines of pasta of 720 tonnes per day, with the new investments taking its total capacity past the level of 2015, before the sale of past of the business to Olam.

BUA Food, the subsidiary of BUA Group, has diverse investments in the agricultural value chain in sugar, rice, edible oils, flour milling and pasta.

The comeback game

With an eye into the vast potential for more growth in the grains industry in Nigeria, the BUA Group has recently signed two mouth-watering deals with major suppliers of wheat milling and past processing equipment that will undoubtedly, change the face of the grains industry in the country.

The first was the deal signed with a Turkish milling equipment supplier to build state-of-the-art two wheat flourmills in the country. With a total milling capacity of 2,400 tonnes per day, the plants expected to be completed in 2021, bringing BUA’s total installed flour milling capacity to 4,000 tonnes per day.

Speaking during the signing ceremony, Abdul Samad Rabiu, Executive Chairman, BUA Group said, “We are excited about this partnership with Milleral to develop our new state-of-the-art flour milling plants FOODBUSINESSAFRICA.COM

WE ARE EXCITED ABOUT THIS PARTNERSHIP WITH MILLERAL TO DEVELOP OUR NEW STATE-OF-THE-ART FLOUR MILLING PLANTS IN NIGERIA. THIS WILL FURTHER DEEPEN OUR INVOLVEMENT IN THE FOODS PROCESSING SECTOR AS WELL AS HELP ENHANCE FOOD SECURITY IN NIGERIA AND THE WEST AFRICAN REGION - ABDUL SAMAD RABIU, EXECUTIVE CHAIRMAN, BUA GROUP

in Nigeria with a total milling capacity of 2,400 tonnes per day, bringing BUA’s total installed capacity to 4,000 tonnes per day, upon completion in 2021. This will further deepen our involvement in the foods processing sector as well as help enhance food security in Nigeria and the West African region.”

Shortly thereafter, the Group signed a deal with Italian pasta processing equipment supplier Fava to its double production capacity. The new plant will have a total processing capacity of 720 tonnes per day of pasta across 5 lines.

Scheduled to be completed in 2021, the Group says the new investment will complement it’s already existing 720 tonnes per day pasta processing plant in Port Harcourt, Nigeria, bringing its total installed pasta processing capacity to 1,440 tonnes per day across 10 lines.

IN NUMBERS

2,400

NEW INVESTMENTS CAPACITY IN METRIC TONNES BY BUA GROUP IN NEW WHEAT MILLING PLANTS IN NIGERIA The Chairman expressed his excitement for the development, saying it would expand the market share of the company and will see BUA Group become the second largest pasta producer in Nigeria, where the company faces stiff competition in the market segment, including from Dangote (producer of Dangote Pasta), Flour Mills of Nigeria (makers of Golden Penny), Olam International (makers of Crown Premium Pasta), amongst others.

“As the region’s population continues to rise, our continued investments across the agriculture and foods processing value chain will be crucial in helping to enhance food security in Nigeria and the region.

Through this and other projects in the pipeline, we expect to become the leading player in the flour SEP/OCT 2020 | FOOD BUSINESS AFRICA

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COVER STORY milling/pasta processing industry within a very short period,” said Abdul.

BUA Group’s investments in agriculture value chain are spread across various industries from flour, pasta to sugar plantations and refining, rice, edible oils and providing technical assistance.

The firm’s sugar business, which refines imported and local sugar, has a capacity of 2,000 metric tonnes per day or 1.4 million tonnes per annum, one of the largest in Africa. The company has invested north of US$ 300 million in the backward integration program to boost Nigeria’s capacity to grow and process its own sugar. In the edible oils business, the company’s two refineries and fractionation plants, BUA Oil Mills in Lagos and Nigeria Oil Mills in Kano have a total capacity of 700 tonnes per day. The company is a significant rice processor and grower in the country.

IN NUMBERS

50.3

PERCENTAGE OF NIGERIANS LIVING IN URBAN AREAS, ONE OF THE HIGHEST IN AFRICA, WITH ANNUAL GROWTH OF 4.23% Nigeria’s vast grains industry potential

BUA Group’s strategy to boost its investments in Nigeria’s grain processing sector joins a sector with strong growth opportunities, as the country’s huge and increasing population seeks to consume processed food products, and as convenience becomes a major driver for urbanized and young population.

Africa’s largest oil and gas exporter, Nigeria’s population accounts for nearly half of West Africa’s population, with 50.3% of the country’s population of 203.4 million (2018 figures) living in urban areas, according to the CIA. With urbanization rate that is growing at a rate of 4.23% annually, the country has seen a rapid rise in processed grains consumption due to population growth of about 2.54% per annum. West Africa, with 45% of the population living in cities in 2015, is the most urbanized part of Sub-Saharan Africa and Nigeria in particular is one of the most rapidly urbanizing countries in the Continent, according to the UN. A study by Syngenta Foundation for Sustainable Agriculture and Michigan State University divulges that in addition to population and income growth, changes in lifestyles associated with globalization and rapid urbanization are drivers of changing food demand in West Africa and Nigeria. A growing urban middle class is also boosting the demand for more convenient, 48 SEP/OCT 2020 | FOOD BUSINESS AFRICA

BUA GROUP’S INVESTMENTS IN AGRICULTURE VALUE CHAIN ARE SPREAD ACROSS VARIOUS INDUSTRIES FROM FLOUR, PASTA TO SUGAR PLANTATIONS AND REFINING, RICE, EDIBLE OILS AND PROVIDING TECHNICAL ASSISTANCE

processed and prepared foods that are easy to prepare and consume. This consumer class is also on the look out for product attributes such as consistent quality, health and food safety.

The changes in consumer consumption habits have brought to the fore increasing demand for wheat products (bread, pasta, etc.) that are practically readyto-eat, while rice is much quicker to prepare than traditional West African starchy staples (e.g. millet, sorghum, yams and cassava), especially when the time and process of preliminary preparation is taken into account, notes the study.

The USDA forecasted Nigeria’s wheat consumption in MY 2019/20 at 5.26 million metric tons (MT), with 70% of the flour used in bread making and the rest used in the processing of pasta, noodles and other wheat flour- based products.

Competition and investments in the grains milling sector are increasing in tandem with rising consumer demand, in a sector that has seen massive consolidation, creating four main wheat milling giants, including Flour Mills of Nigeria (FMN) - Nigeria’s largest and the world’s second largest flour miller, Olam Nigeria/Crown Flour Mills, Honeywell Flour Mills Plc and BUA Group. Honeywell Flour Mills Plc’s new plant at Sagamu in Ogun State is one of the latest investments by the giants.

The consumption of pasta and noodles has grown substantially in Nigeria, with pasta making up 15% of total wheat flour usage, from nearly nothing in 1999, and with it increased investments by four major giants, as each takes aim at the growing demand. Flour Mills of Nigeria, the pioneer in local pasta production, has upped its capacity to 350,000 MT per annum today according to USDA figures, while DUFIL, Nigeria’s noodle giant, has through acquisitions become even bigger in the country over the last 10 years. Government policy, especially its 2003 imposition of a 100% tariff on imported pasta and biscuits, has been lauded for turning the tide, boosting local processing of these products.

From the foresaid, BUA Group’s plans to boost its investments in the wheat and pasta milling is bound to upset the current balance in the sector, but the Group will also be facing off with strong competitors for a share of the growing cake that will eventually make the ultimate winner, the consumer, receive more choice and hopefully, better prices and quality in the country and beyond

FOODBUSINESSAFRICA.COM

Dairy

BUSINESS

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

Danone rejigs strategy to adapt to Covid-19 World New corporate structure and adaptation strategy to enable company create new opportunities in Covid-World

T

he disruptions brought by the Covid-19 pandemic is reverberating across the World, with leading companies including Danone, the France-based dairy and food giant, reviewing its corporate structure, product portfolio and assets and looking for new ways to seize on the opportunities that have become apparent during the crisis.

The maker of a number of leading dairy and plantbased brands such as Danone, Dannon, Evian, Silk and Activia has announced that is accelerating its previously announced adaptation strategy to ‘counter the challenges and win the significant growth and efficiency opportunities emerging from a new COVIDworld’, the company revealed in a notice to its shareholders as it announced its Q3 financial results in October 2020.

The results, which Danone says were in line with its expectations, showed a resilient Danone reporting net sales of €5.821 billion (US$6.9 billion) in the quarter, down 2.5% on a like-for-like basis and less 9.3% on a reported basis, which showed a ‘sequential improvement’ versus the previous quarter driven by a strong acceleration of the company’s Essential Dairy and Plant-based segments and an improvement in its Waters business during the quarter. “Our Q3 results reflect how much the COVID-world and its cohort of sanitary measures, border closures, uncertainty in

FOODBUSINESSAFRICA.COM

consumer sentiment and some structural changes affect our business,” commented Emmanuel Faber, the company’s Chairman and CEO. New structure, new team in new normal Danone says that as the COVD-19 pandemic hit world economies and disrupted supply chains, it chose to protect its whole business ecosystem as it waited and evaluated ‘how gradual re-openings of economies would impact the way people live and work before preparing its own plans to adapt to consumer shifts and accelerate the company’s return to its profitable growth agenda.’

The company declares that it has garnered at this stage enough convictions and insights on how COVID-19 is structurally affecting its industry, consumers and supply chains, especially in the growing importance of proximity to consumers and customers and localized supply chain and the need for extreme supply chain and customer service agility at competitive cost. It adds that it has also learnt the power of trusted brands leveraging their heritage and local relevance and the increasing blurring of categories in the food space around the World.

However, even as the company has shown its resilience in the face of the pandemic, Faber says this is the right time to plan for the future, as the food and SEP/OCT 2020 | FOOD BUSINESS AFRICA

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INSIGHT dairy giant looks into shaping the future of the business – and to accelerate its remake agenda. “We are going to enter into a new phase of transformation for Danone, adapting to the new world,” says Faber. Part of the plan is accelerating the finalization of its ambitious detailed plan to counter the challenges and win the significant growth and efficiency opportunities emerging from a new COVID-world, with the plan’s implementation starring in Q1 2021.

As it begins the process of transformation, the company has created two macro-regional CEOs; one for Danone North America headed by Shane Grant; and another for Danone International (the rest of the business out of North America) who will both report to Faber and be responsible for P/L, maximizing the focus on delivery, operational excellence and local execution with cross-category synergies in the new regions.

Véronique Penchienati-Bosetta will lead this unit.

It has also created a new Chief Operations Officer (COO) role who will be in charge of a newly created strategic end-to-end design-to-delivery function, integrating Research & Innovation, Cycles & Procurement, Operations (manufacturing and supply chain) and Quality, ‘to support the company’s transformation to better serve people needs anytime anywhere in a cost- efficient way.’ Henri Bruxelles will head this role, while Nigyar Makhmudova will be the new Chief Growth Officer responsible for growth strategy and capabilities, to optimize robustness, local relevance and speed of innovation.

AS IT BEGINS THE PROCESS OF TRANSFORMATION, THE COMPANY HAS CREATED TWO MACRO-REGIONAL CEOS; ONE FOR DANONE NORTH AMERICA HEADED BY SHANE GRANT; AND ANOTHER FOR DANONE INTERNATIONAL (THE REST OF THE BUSINESS OUT OF NORTH AMERICA)

The company has also announced that it’s current Chief Financial, Technology & Data Officer Cécile Cabanis will be leaving the group to open a new chapter in her personal life, and will be replaced by Juergen Esser, effective February 2021. Bertrand Austruy will be the Chief Human Resources Officer & General Counsel for the company. Francisco Camacho, Executive Vice President, Essential Dairy and Plantbased International and a member of Danone’s Executive Committee, left Danone in September 2020, as well.

Danone’s resilient performance during Covid-19 pandemic bodes well for the company, considering the significant disruptions to the food value chain across the World. With revenues declining by 2.5% in the quarter, the company notes that volumes and value did improve during the quarter compared to Q2 – but it wants to go further.

As part of its strategic review, Danone has 50 SEP/OCT 2020 | FOOD BUSINESS AFRICA

announced that it is conducting a full strategic review of its portfolio of brands, stock keeping units (SKUs) and assets to shape the firm for its 3-5% profitable growth agenda - starting with an immediate review of its strategic options for Argentina, for the Vega brand, and possibly further assets in the country.

This comes in the wake of the giant’s announcement that it selling, through an accelerated book building process, its remaining 6.61% stake in Japanese probiotic yoghurt maker, Yakult, €470 million (US$557 million).

Dairy and plant-based lead In the quarter under review, Danone reports that the Essential Dairy & Plant-based segment posted a significant acceleration in net sales growth of 3.7% on a like-for-like basis, reflecting a 4% increase in volume, and a decrease of 0.3 % in value, with all segments growing, with probiotics and functional yogurts, organic milk and coffee creamers among the best performing, while plant-based foods posted the third consecutive quarter of double-digit sales growth in the high-teens Market share gains from its Actimel, Danette, and Alpro brands in Europe and North America buoyed by rising at-home consumption on its Silk, So Delicious, Horizon brands helped the segment to thrive in the two regions, while the CIS region returned to solid growth but Mexico and Africa saw continued pressure, the report reveals.

Strong headwinds due to channel logistics issues caused by COVID-19, especially cross-border channels contraction, and pantry destocking dynamics lowered the firm’s sales in the specialized nutrition segment, with a decline of 5.7% reported in Q3 2020 on a likefor-like basis, exacerbated by the lower performance of China which posted a steep double-digit sales decline in the quarter. Sales trends in the Waters segment improved in the third quarter but were still heavily impacted by low mobility index due to lockdown policies.

Faber, who has been Chairman and CEO of the group since end 2014, has been hailed for guiding the company’s strategy towards the plant-based foods trends and strategically placing the company’s strategic focus to align with the sustainability agenda which gravitates around its ‘One Planet. One Health’ vision.

The company has not just reimagined and invested in some of the two key food industry trends of the future – they have also turned their lens on sub-Saharan Africa, buying out west Africa’s leading dairy player Fan Milk in 2014 and taking a stake in East Africa’s leading dairy company Brookside Dairy. With enhanced investments in northern Africa including in Morocco, Algeria, Tunisia and Egypt and investments in Ghana, Nigeria and South Africa, the company’s focus on the projected growth in Africa’s milk ambitions is impressive FOODBUSINESSAFRICA.COM

PHOTO: Sahel Consulting Agriculture and Nutrition Ltd (Sahel)

Dairy Industry In Nigeria Strategic moves by dairy industry players in the country show promise of a better future

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ith a population of nearly 200 million, a livestock population of more than 20 million, milk deficit 1.2 million metric tonnes per annum that forces the country to spend US$1.5 billion a year to meet rising demand for milk and milk products, Nigeria stands out in Africa as the country with the most under-exploited dairy potential in the Continent.

However, recent moves by the Central Bank of Nigeria (CBN) to restrict access to foreign exchange for importers of milk and milk products could begin a change in how the country towards a future where milk production could be one of the main economic activities, and dairy processing could rely on locally produced milk in the country.

In a press release in July 2019, CBN reiterated its stance about the restriction of access to forex by milk importers, adding that its main focus remains ‘ensuring forex savings, job creation and investments in the local production of milk.’

FOODBUSINESSAFRICA.COM

“For over 60 years, Nigerian children and indeed adults have been made to be heavily dependent on milk imports. The national food security implications of this can easily be imagined, particularly, when it is technically and commercially possible to breed the cows that produce milk in Nigeria,’ the Bank states.

Friesland Campina WAMCO sets the boll rolling After nearly 5 years of doubt from industry stakeholders, it is evident that the CBN’s plan to partner with dairy companies to initiate backward integration with major milk importers, which the government states it has done successfully with rice, tomato and starch value chain players through the provision of low-interest, among other incentives, in partnership with a number of states - is beginning to bear fruit, albeit with a long way to cover to get near the Bank’s ambition to finally stop milk imports into the country.

Some of the biggest multinationals have operations in Nigeria’s milk value chain including Friesland Campina SEP/OCT 2020 | FOOD BUSINESS AFRICA

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COUNTRY FOCUS

“FRIESLANDCAMPINA WAMCO IN PARTNERSHIP WITH THE FEDERAL GOVERNMENT IS DETERMINED TO TRANSFORM THE SECTOR FROM ITS CURRENT SUBSISTENCE PHASE TO A COMMERCIAL QUALITYFOCUSED MODEL." - BEN LANGAT, MANAGING DIRECTOR, FRIESLANDCAMPINA WAMCO

52 SEP/OCT 2020 | FOOD BUSINESS AFRICA

WAMCO, Chi Limited (subsidiary of Coca-Cola), TG Arla Dairy Products (Arla subsidiary), Promasidor and Nestle Nigeria PLC. A local player, Integrated Dairies Limited, rears more than 500 Holstein cattle and has been producing milk from its 550-acre farm in Plateau State since 2003.

The Bank states that its partnership with States and private investors in the livestock and dairy value chain is beginning to yield fruits. In Niger state the Government has allocated land to four dairy companies at the 31,000 hectares Bobi Grazing Reserve in the Mariga local government area of Niger State.

Dutch dairy giant subsidiary, FrieslandCampina WAMCO, which is leading the quest to transform the dairy sector in Nigeria, activated its Dairy Development Programme (DDP) at the Bobi Grazing Reserve, the company reported at the unveiling of its financial report for the year 2019, where it announced a turnover of N161.8 billion (about US$ 424.7 million) and profit before tax of N18.8 billion (US$ 49.3 million), an 8.5% and 15% increase, respectively.

The dairy’s Managing Director, Ben Langat reiterated the company’s commitment to contribute to the growth of the local dairy sector in the country and for the firm to continue playing a leading role in the country’s backward integration

initiative led by the CBN. During the year, the Company also commissioned a state-of-theart factory for the production of yoghurt drink and introduced a new Peak Yoghurt Drink in three flavors of plain sweetened, strawberry and orange into the local market.

Officially launch virtually in October 2020, FrieslandCampina WAMCO has taken the next step of opening Nigeria’s first expertise Centre for Nigerian Dutch Dairy Development (CNDDD), which will help facilitate and accelerate the development in the dairy sector and build a sustainable value chain in Nigeria, focusing on both the upstream and downstream sides of the chain.

The high profile event was attended by the Honorable Minister of Industry, Trade and Investment, who represented the Vice President of the Federal Republic of Nigeria; Executive Governors of Niger, Kebbi, Kwara, Ogun and Oyo states; Honorable Minister of Agriculture & Rural Development, Alhaji Muhammad Sabo Nanono; Governor of CBN, Godwin Emefiele; and the Ambassador of the Kingdom of the Netherlands to Nigeria, Harry van Dijk, among many other dignitaries.

According to the Managing Director, the Centre is aimed to drive productivity and sustainability in the industry, based on best practices that have helped the Dutch dairy industry stand out as one of the best FOODBUSINESSAFRICA.COM

IN NUMBERS

31,000

HECTERAGE OF LAND PROVIDED

BY TEH NIGERIAN GOVERNMENT IN NIGER STATE FOR DAIRY ENTERPRISES TO UTILISE in the world for decades. It will also foster cooperation among dairy stakeholders as it will engage and promote cooperation among the government, private sector, academics, students and dairy farmers.

Through its backward integration plan, the leading dairy processor has made huge strides in the dairy industry, recording an increase in fresh milk collection from farmers to hit an all-time high record of 40,000 litres of milk per day, it reported mid this year.

And to add further impetus to its strategy, the company recently finalized the acquisition of Nutricima’s dairy business from PZ Cussons Nigeria Plc for an undisclosed sum. The acquisition underlines with the firm’s continued commitment to contribute to the development of the Nigerian dairy sector and will provide it with additional production capacity to meet the growing demand for locally produced evaporated milk and powder milk. The dairy also acquired the company’s production facility in Ikorodu, Lagos State and the brands Olympic, Coast and Nunu - a range of powdered, evaporated and ready to drink milk products, as part of the deal.

To lay the ground work to its strategy, the company in 2019 teamed up with the International Fertilizer Development Center (IFDC), where the IFDC will leverage on its agribusiness incubator programme – 2Scale – to expand on FrieslandCampina WAMCO’s Dairy Development Programme (DPP) and eventually to sustainably transform and lead the local dairy sector in the country by supporting the transition of local dairy farming into modern dairy farming and developing key structures required for a sustainable value chain.

Other players chart the way forward Friesland Campina WAMCO is not alone in the quest to develop the dairy sector in Nigeria. Fan Milk Plc, the Nigerian subsidiary of multinational Danone, has partnered with the government of Ogun state to undertake a backward integration project to enhance local dairy production in the state.

Under the project Fan Milk intends to develop a world-class dairy farm and technical institute at the Odeda Farm Institute to bring the expertise of its parent company to the fore. The technical institute developed will train local dairy farmers and improve their skills FOODBUSINESSAFRICA.COM

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The Kenya Dairy Expo is a series of African focused events that enable consumers and the general public to touch, feel and taste the latest processed and packaged dairy products including: Fresh and long life milk products • Yoghurt – flavoured, fruit, Greek etc • Traditionally fermented milk products and more • Cheese and Ice Cream • Butter and ghee • Flavoured milk products • Milk powder •Plant-based and dairy free products • Dairy/juice blends and mixes • Whey based products

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Ben Langat, Managing Director, FrieslandCampina WAMCO

Ornua team launches new products in Nigeria

54 SEP/OCT 2020 | FOOD BUSINESS AFRICA

while the dairy farm will also incorporate pasture development.

“Our objective is to ensure that we partner with local dairy farmers in communities within Ogun State to accelerate the development and expansion of the local dairy market while also creating the social and economic impact of improving the livelihood of the ecosystem within which we operate,” said Fan Milk Managing Director, Ferdinand Mouko. Fan Milk is confident that the plan will create positive social impact as it leverages the government’s support and the relevant experience Danone has developed along its journey in Africa.

Another multinational Promasidor, through its Nigerian subsidiary has invested US$5m to boost the dairy industry in Ekiti State aimed at reactivating the Moribund Ikun Dairy Farm, as a catalyst that will turn around the economic fortune of the state.

Established in the early 1980s as an integrated agro-allied farm, Ikun Dairy Farm covers 1,000 hectares of land. The reactivation of the ailing industry, done in partnership with the Central Bank of Nigeria, would ensure a daily production of about

10,000 litres of milk, but according to Ekiti State Governor, Dr. Kayode Fayemi, production has been delayed by the lockdown imposed to curb the spread of COVID-19.

“Promasidor has made an initial investment of US$5m in the farm which will be invested to procure cattle, equip the dairy farm, establish a farm to produce feed and renovate existing buildings,” said Fayemi.

The CEO of Promasidor Nigeria, Anders Einarsson, said that the project with the state enables his company to utilise the facilities at Ikun Dairy Farm to improve local sourcing of raw materials for production of its dairy products, which include Cowbell and Loya.

CHI Limited, a subsidiary of Coca-Cola has also joined the CBN’s backward integration program and has announced to undertake massive infrastructural developments of facilities at the Bobi Grazing Reserve in Niger State that will involve the upgrade of the existing facilities and construction of new ones in a bid to boost milk output.

In a statement Chi Limited stated, “With the acquisition of over 4,000 hectares in the reserve, the Company is partnering with existing pastoralists to provide 2,000 hectares to allow for settlement and grazing for their cows. It has made available 1,200 hectares to subsistence farmers for grain production and another 300 hectares for growing some of the best breed of pasture.”

Managing Director of CHI Limited, Mr. Deepanjan Roy noted that the final stretch of 800 hectares has been set aside for development of support facilities, specifically a milk collection and processing center where all the milk produced from the cows will be collected and processed in a hygienic manner, adding that the company is proud of its strategic partnerships and investments in the backward integration project of the Central Bank of Nigeria

FOODBUSINESSAFRICA.COM

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

What To Consider When

Planning An Ethanol Distillery Project

By Oladapo Loto

E

thanol or ethyl alcohol is a very important chemical substance. It is found in all alcoholic beverages and used in pharmaceuticals and cosmetic (including perfumes) preparations. It is the active ingredient in hand sanitizers being used as one of the means of controlling the spread of the covid19 coronavirus during the current pandemic.

Ethanol is normally manufactured on industrial scale through the fermentation of molasses derived from sugar refining or from sugars derived from the breakdown of starchy products such as cassava, grains (maize or corn, sorghum etc.). It can also be produced

FOODBUSINESSAFRICA.COM

from other tubers or roots such as potatoes or from the syrup produced from dates.

However, the nature of the fermentation process that generates the ethanol makes it imperative to carefully plan the distillery project and take care of any issue that might jeopardize the success of the distillery as a commercial venture right from the planning stage such that such issues must be adequately addressed during the design stage of the distillery.

Some issues are related to the geographic location of the distillery, whereas others are directly related to the nature of the input raw material and the distillation SEP/OCT 2020 | FOOD BUSINESS AFRICA

55

process itself. Still other issues are related to the target market of the ethanol output.

KEY ISSUES TO ADDRESS Scale Or Capacity Of The Distillery Is the input raw material readily available in the geographic area where the distillery is to be located?

Can available quantities (both current and future) support the capacity of the proposed distillery?

By-Products Or Co-Products Theoretically only about 51% of sugars fermented ended up in being converted to ethanol. In practice, the ethanol realized is much lower and is dependent on the type of raw materials. It is directly related to the efficiency of conversion of starchy products to fermentable sugars, the fermentation process as well as the distillation efficiency. For a commercially successful distillery, one must consider what to do with other by-products or co-products from the ethanol distillery. Some of the by-products or co-products are; • Carbon dioxide - The quantity produced is very huge. Theoretically is almost 49% of the sugars that is fermented in terms of weight. It will amount to a huge waste of resources if the carbon dioxide is not recovered and sold. It could determine to a large extent the long-term success of the distillery.

• For Distilleries using grains as input raw materials, there is additional opportunities to improve the commercial success of the distillery by deciding to invest in the plant (decantation and evaporation system) that will be used to separate and dry the distillers dry grains and solute, DDGS, right from the design stage of the distillery. DDGS is very important as animal feeds. This has to be done otherwise it will cost more to treat the spent wash generated by the distillery.

IN NUMBERS

51%

THEORETICALLY, ABOUT 51% OF SUGARS ARE FERMENTED INTO ALCOHOL, BUT IN PRACTICE, MUCH LESS IS REALISED Heat and Power Distilleries consume a lot of energy in the form of electrical and heat energy. Serious consideration on how to address this must be done during the planning stage of the distillery, as it will be a major cost item. In terms of heat energy, what will be the input source and 56 SEP/OCT 2020 | FOOD BUSINESS AFRICA

THE NATURE OF THE FERMENTATION PROCESS THAT GENERATES THE ETHANOL MAKES IT IMPERATIVE TO CAREFULLY PLAN THE DISTILLERY PROJECT AND TAKE CARE OF ANY ISSUE THAT MIGHT JEOPARDIZE THE SUCCESS OF THE DISTILLERY AS A COMMERCIAL VENTURE RIGHT FROM THE PLANNING STAGE

availability? Diesel, LPFO, Natural gas, coal etc.? What is the cost? A cost benefit analysis of each available heat energy source needs to be done. Whichever is going to be chosen, it has to be decided during the design stage of the distillery.

What of Power? Is public power supply available at reasonable cost? Are there frequent outages as is the case in some countries? Maybe the scale of the distillery and the source of heat power is such that a combined heat and power or cogeneration plant can be considered. Meaning the distillery generates it's own power as well.

Waste and effluent treatment Distilleries generate a lot of effluents in terms of spent wash from the distillation plant. This has to be treated before it is discharged into the environment. Can some economic value be derived from this treatment process? Can the spent wash be incinerated as a fuel to support combined heat and power plant?

Distilleries based on cassava generates by far more effluent, apart from the spent wash, the initial pretreatment stage of the cassava tubers to convert it to starch generates a lot of effluents also. This must be taken into consideration when planning the effluent treatment plant. Cassava tubers based distilleries also generate lots of solid wastes (cassava peels, cassava stumps etc.). Can some of these be used in heat generation for the distillery?

What economic value can be derived from distillery effluent treatment plants? Production of biogas and fertilizer? Can biogas from effluent treatment plants be compressed and used as substitute for fossil fuel?

What will the final ethanol be used for?

This is very crucial for the distillation section design and whether additional post distillation processing will be needed. Key questions are; • Are we producing just rectified spirit?

• Are we producing portable ethanol or Extra neutral alcohol? Does our potential market have stringent purity or quality requirements?

• c) Is the ethanol going to be used for blending into petrol? This will obviously require a dehydration system post distillation since distillation cannot get the ethanol beyond 96% - Oladapo Loto is a Brewing, Beverages, Fermentation Technology and Distillery Consultant based in Lagos, Nigeria FOODBUSINESSAFRICA.COM

Animal Feed Manufacturing in Africa Takes a Leap Surge in protein demand in Africa leads to transformation of animal feed sector as investments surge

T

he demand for animal protein sources is projected to more than quadruple across Africa by 2050, as rising population – set to double to 2.4 billion – and a change in consumer eating habits, with a preference for high protein products such as meat, poultry, fish and eggs, and rising incomes and rapid urbanization, make the Continent the only region where demand for high protein food is set to rise, across the World, in such a magnitude.

A report by the United Nations, Africa Livestock Futures - Realizing the potential of livestock for food security, poverty reduction and the environment in Sub-Saharan Africa that was published in 2014 provides an informative reading on the opportunity that the livestock sector in sub-Saharan Africa (SSA) heralds.

“Demand for livestock products in sub-Saharan Africa is increasing rapidly,” states David Navarro, the Special Representative of the UN Secretary General for Food Security and Nutrition. “The trend of increasing demand is currently not being matched by similar growth in local production. Several African governments, as well as regional organizations, are now working out how they can best ensure that their FOODBUSINESSAFRICA.COM

farmers can contribute to the better availability of highquality livestock products, thus reducing the need for dependence on increased imports. At the same time, governments are increasingly aware that if increases in the production of livestock products are not carefully managed, there will be adverse consequences, including greatly increased pressures on natural resources (particularly water and land), greenhouse gas emissions, and threats of zoonotic diseases.”

The report key findings are vital to the opportunity brought to the budding animal feed manufacturing industry in Africa, especially as it reveals that the region will experience exponential growth in the consumption of animal products - from milk, meat and eggs – providing vast potential for investments that will improve efficiency and improve quality and safety in the livestock sector.

According to the report, milk consumption is projected to triple in all SSA regions by 2050, with East Africa, traditionally the largest consumer of milk, dominating the growth in consumption. It further adds that the consumption of poultry meat, eggs and pork have the highest projected rates of growth across SSA, SEP/OCT 2020 | FOOD BUSINESS AFRICA

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INDUSTRY REPORT

where West Africa is projected to have a 600-700% increase in the consumption of mono-gastric products, mostly poultry to 2050, followed by Southern and East Africa, which will experience increases of 400%.

“The entire continent is going to change in the next couple of decades,” says Ugo Pica Ciamarra, a livestock economist at the U.N. Food and Agriculture Organization (FAO).

The study suggests that investing in the sustainable intensification of livestock systems in Africa is an urgent matter, especially if the region is to improve its food security, incomes, trade and nutrition status and further, to reduce costly imports of animal products, that are projected to continue growing into 2050.

It recommends that the region must put in place measures to ensure that animal feed production throughout the region be given priority, and should be an essential part of the sustainable intensification of the sector.

Animal feed production rises The animal feed manufacturing sector in Africa is still at a formative stage. With increased intensification of animal husbandry across many African countries, the sector has seen an emergence of thousands of animal feed processors, from roadside hustlers to multinational 58 SEP/OCT 2020 | FOOD BUSINESS AFRICA

companies that have invested in the sector, opening new opportunities for farmers across the continent to access quality feed products.

Analysts agree that great progress has been made in the milling of grains for human consumption in a number of key African countries, but the animal feed manufacturing sector has remained behind as the former has made progress in terms of adoption of new technology, current manufacturing practices and food safety.

The latest date by Alltech Global Feed Survey that was released in January 2020 reveals that in a year that saw the first decline in total animal feed production across the World, dipping 1% to 1.126 billion metric tonnes, Africa continued its strong growth with a 7.5% increase in overall feed production, recording 43.7 million metric tonnes (MMT) from 40.7 MMT, producing just 3.9% of total world production, but which is increasing rapidly.

The report adds that the top five feed-producing countries in the region (see graph) are South Africa (11.7), Egypt (7.4), Nigeria (5.8), Morocco (4.3) and Algeria (4.3), with these countries accounting for 75% of Africa’s feed production.

Other countries with significant levels of production include Tunisia (2.8), Kenya (1.8), Tanzania (0.7), Cameroon (0.7) and Zambia (0.5).

Across the Continent, the

disparity between the top producers such as South Africa and Egypt and the other countries in the continent in terms of the adoption of technology and sophistication of the sector is illustrated by South Africa’s 74 animal feed manufacturing plants and Nigeria’s 792 plants – with the prevalence of fewer, larger plants in South Africa that have adopted the latest technologies and Nigeria’s evolving sector that is still less sophisticated.

In terms of species, poultry feed dominates Africa’s food production, with 10 MMT of broiler, 5.7 MMT of layer feed and 0.6 MMT of turkey processed in the region. The region also produced 6 MMT of dairy feed, 2.4 MMT of beef feed, 1.4 MMT of pig feed, 0.6 MMT of aqua feed, 0.4 MMT of pet food and 0.1 MMT of equine feed, according to Alltech’s survey.

Investments surge in animal feed plants “The animal feed manufacturing sector is at a critical phase of development in sub-Saharan Africa, with the sector getting more sophisticated by the day, as new investors enter the sector and as existing players also invest to catch up with the demand for more affordable, nutritious and safe feed across the region,” declares Joseph Kiplagat, the technical sales specialist for Dupont in Eastern Africa.

Kiplagat adds that with the changes in the industry, the animal feed manufacturing sector in the region will continue to get more sophisticated in the near future and that this is the time for investors in the sector to up their game to remain competitive and to survive.

He gives the example of the sector in Kenya, where new entrants and new investments in the last 3 or so years will continue to shape the sector into looking at improved efficiencies and better, safer products as players adopt the latest technologies to remain relevant.

Stefan Lutz, the head of the African Milling School, echoes his FOODBUSINESSAFRICA.COM

KENYA

views, stating that as buyers of animal feed products seek quality and safer products, feed manufacturers are becoming more aware of the need to produce better, safer products as well. The choice of appropriate storage, processing and packaging technologies will also become more critical for the sector, especially those that boost efficiencies, reduce costs and improve food safety while reducing risks to the final consumer: the animal.

Across the Continent, new animal feed manufacturing plants are being put up everyday. Egypt, Nigeria, Kenya and Zambia have seen some of the most outstanding investments in such plants by local, regional and international players in the last 5 years – as the pace of change gathers steam across the Continent.

PETFOOD,

Animal Feed

& AQUACULTUREExpo 15+

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Zambia Zambia, with its tradition of eating fish and an ambition by government and industry to utilise the abundant water resources and agricultural potential in the country to locally produce fresh fish for the domestic market to reduce reliance on imported frozen fish, has made tremendous progress over the years. The poultry feed segment has also grown significantly due to rising demand for affordable protein in the country.

The country’s leading agribusiness enterprise

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THE ANIMAL FEED MANUFACTURING SECTOR IS AT A CRITICAL PHASE OF DEVELOPMENT IN SUBSAHARAN AFRICA, WITH THE SECTOR GETTING MORE SOPHISTICATED BY THE DAY - JOSEPH KIPLAGAT, DUPONT

Zambeef Products Plc, through its Novatek stock feed division, in 2017 opened the technologically advanced Mpongwe Feed Mill plant in the north of the country.

The 132,000 MT per year plant was in addition to the company’s 168,000 MT per annum plant in Lusaka, the capital city. In the company’s latest half-year results, Novatek contributed 30% of the Group’s total revenue, with export sales into 11 countries in the region.

Another investor in the animal feed value chain in Zambia, which produced feed worth K1.5 billion in 2019, and has gone tremendous transformation in less than 5 years isAller Aqua, the Danish fish feed giant, which invested in a new factory worth US$10million in 2017, following their earlier investment in a similar project in Egypt. The factory, with a capacity of 50,000 MT per annum, was established as a joint venture with Oakfield Holdings Limited, where Aller Aqua has an offtake agreement vertical integration system with Yalelo Limited, the leading fish grower in the country.

“The growth in Egypt and the success we experience through our own sales companies in Nigeria, Kenya and Ghana prove that there is a market for aqua feed of a higher quality than the customers here are used FOODBUSINESSAFRICA.COM

The Kenya Petfood, Animal Feed & Aquaculture Expo showcases a variety of food, health and care solutions targeting domestic pets (dogs, cats, birds, small animals, fish) and farm animals (dairy, poultry, horses, aqua fish, pigs, sheep and goats) including: Pet food, pet care and pet health and wellness solutions • Animal feed, animal care and animal health and wellness solutions • Aqua feed, aqua care and aqua health and wellness solutions • Associated solutions to the pet, animal feed and aquaculture solutions • Veterinary services and consultancy services

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to,” said Henrik Halken, Group Vice President for Aller Aqua Group, at the opening of the Zambia plant.

Norway’s leading fish feed manufacturer has also Skretting is another international giant to enter the country in the last few years. The company formed a 75/25 joint-venture with African Century Foods (ACF) for the production, sale and distribution of tilapia feed at a 35,000 MT plant located at Siavonga on Lake Kariba, close to the main fish farming areas in both Zambia and Zimbabwe, where also the Aller Aqua plant is located – parachuting Zambia as one of the few countries in Africa, after Egypt, to become self-sufficient in fish feed to boost its rising aquaculture sector.

In a replication of the strategic partnership between Aller Aqua and Yalelo, Skretting also signed a deal to supply ACF’s tilapia farms, Lake Harvest, with some of the feed, with the remaining supply going to the wider southeast African region.

According to the country’s Ministry of Commerce, Trade & Industry, the animal feed value chain in Zambia is fairly concentrated, with the 3 major companies, Novatek, Tiger Feeds and National Milling Corporation, a subsidiary of Seaboard Corporation, holding the vast majority of the sector, with poultry accounting for more than 50% of the sector, in addition to cattle, poultry, pig and fish feed.

Zambia has become a significant player in the maize and soya value chain over the past decade, with growing production of the two critical commodities providing the vital raw materials that have boosted the animal feed sector in the country, which has also become a major player in exporting its feed products into the SADC and EAC regions. Recent investments by Global Industries, Mount Meru and Pembe Zambia in soya processing plants have added further impetus to the availability of high quality soya products for animal feed processing in the country.

60 SEP/OCT 2020 | FOOD BUSINESS AFRICA

Kenya Kenya’s animal feed sector has been in existence for longer than many other economies in eastern Africa, with major mainstream millers having animal feed plants to diversify their income stream, in addition to a large number of animal feed only plants in the country.

Edible oils manufacturer Bidco Africa teamed up with American conglomerate Land O’Lakes to invest US$12 million to upgrade its animal feed factory in Nakuru, Kenya – one of the stand out investments in the sector in the last 5 years. Other players such as Mombasa Maize Millers, Unga Holdings, Wonder Feeds, Sigma Feeds and many more have recently upgraded their feed plants to respond to changes in consumer demand for quality feeds.

Kiplagat contends that the animal feed manufacturing sector in Kenya is at a critical point of development but access to regular, high quality raw materials remains a key challenge for the sector in the country, with reliance on imported key inputs including maize, soya beans and oil cakes hampering the further growth of the sector.

The USDA suggests that the animal feed manufacturers in the country are actively sourcing for alternatives to the above raw materials, with sorghum and imported distillers’ dried grains with solubles (DDGS), some of the two alternatives being considered.

THE GROWTH IN EGYPT AND THE SUCCESS WE EXPERIENCE THROUGH OUR OWN SALES COMPANIES IN NIGERIA, KENYA AND GHANA PROVE THAT THERE IS A MARKET FOR AQUA FEED OF A HIGHER QUALITY THAN THE CUSTOMERS HERE ARE USED TO - HELKIN HALKEN, GROUP VICE PRESIDENT, ALLER AQUA

Egypt Egypt has seen increased feed demand for animal feed, with the government announcing that the issuance of licenses for animal, poultry and production of feed projects have more than doubled over the past two years, according to USDA, with new poultry projects in the western and Upper Egypt reaching EGP 1.5 billion (US$90.9 million) and projected to produce more than 66 million birds and 30 million eggs.

USDA anticipates the poultry sector’s feed consumption to grow by 2-3 percent as the larger producers consolidate and vertical integration increases, adding that since the beginning of 2018/19, the market has seen new investments in poultry feed mills with production capacities reaching 6,500 MT of feed per day, plus additional feed lines are coming online, adding to already existing aqua and cattle feed milling capacities.

The dairy industry in Egypt is experiencing a growth FOODBUSINESSAFRICA.COM

rate of 3% per year and is rapidly industrializing, driven by increased demand for fresh, refrigerated dairy products, while the aquaculture segment is developing rapidly with production reaching 1.5 million MT, accounting for 80 percent of Egypt’s total fish production.

The world’s tenth largest producer of farmed fish, as well as the world’s second largest producer of tilapia has seen investments by leading international aqua feed companies Aller Aqua and Skretting, even as local feed companies also increase their investments to meet demand for high-quality extruded feed.

Nigeria With the largest population in Africa plus one of the highest urbanization rates in the continent, the need for protein diets in Nigeria is huge, providing a large potential for new investors in the country’s animal feed sector.

Worth about US$2 billion, the USDA contends that high production costs have hindered the growth of Nigeria’s animal feed sector, which continues to attract significant local and foreign investment in large-scale feed mill operations in the highly fragmented sector.

Nigeria spent about US$4 billion in imports of food and drinks in 2017, and with direct import bans or forex restrictions in place for some food products, opportunities are ripe to grow the sector to help plug the protein deficit in the country.

Recent projections will see Nigeria’s poultry and meat consumption increasing tenfold by 2040. Africa’s second largest aquaculture producer, Nigeria’s annual fish consumption is about 2 million metric tonnes, and growing due to the fact that fish is an important food staple in the country.

Nigerian-origin and Singapore-based Olam International entered the animal feed sector in 2015, announcing its plan to enter the business for the first time ever in Nigeria, revealing that it chose Nigeria as its preferred entry market ‘as it ranks favourably on the country selection criteria, which include meat consumption per capita, degree of fragmentation, extent of vertical integration and of commercial feed penetration, scalability potential and supply and demand factors impacting the feed raw material trade.’

Olam added that the rising demand for protein-rich diets and strong demand for poultry and aquaculture products and the commercial feed market is expected to grow at over 10% CAGR over the next 5 years.

In 2016, the company commissioned its US$150 million worth of investments with a combined capacity of 720,000 MT per annum of poultry and fish feed plants and also unveiled an ultra-modern hatchery for both layers and broilers. The company’s poultry feed mill and day-old-chick facilities are located in Kaduna State while an integrated poultry and fish feed mill is at Ilorin in Kwara State.

Other players include Premier Feed Mills, a FOODBUSINESSAFRICA.COM

TO FACILITATE FURTHER GROWTH OF THE ANIMAL FEED MANUFACTURING SECTOR IN AFRICA, THERE IS A CRITICAL NEED TO IMPROVE THE TECHNICAL KNOWLEDGE AND CAPACITY OF THE INDUSTRY VALUE CHAIN PLAYERS - STEFAN LUTZ, MANAGING DIRECTOR, AFRICAN MILLING SCHOOL

subsidiary of Flour Mills of Nigeria and Skretting Nigeria, whose parent company Nutreco has undertaken a 100% shareholding in the company’s Nigerian operations to improve its capacity and take advantage of demand for fish feed in the country.

Nigeria is a significant producer of major commodities utilized in feed manufacture, including maize, soybeans, and cassava and others including groundnuts and sorghum. The country produces an estimated 1 million metric tons of soybeans, which is used by the animal feed sector in the country.

Capacity building gets renewed focus To facilitate further growth of the animal feed manufacturing sector in Africa, there is a critical need to improve the technical knowledge and capacity of the industry value chain players, states Stefan Lutz of the African Milling School.

He reveals that the School has introduced a new technical course targeted at building the capacity of the human resource in the sector across Africa and the Middle East, in addition to the milling courses they have been running at the School for the last 5 years.

Earlier in 2020, the South Africa based Animal Feed Manufacturers Association (AFMA) launched Africa’s first Research and Training Feed Mill, a joint venture with the University of Pretoria that is valued at R50 million (US$3 million). The university will contribute the site and infrastructure, as well as the final operating of the mill assisted by AFMA specialists.

AFMA says that the objective of the joint project is ‘to establish a research and training feed mill to “close the gap” that currently exists in the skill set of most animal nutrition students finishing university or tertiary education,’ adding that it takes up to 3 to 4 years of in-house training before degree or postgraduate students can contribute to their employers, due to lack of practical skills at the universities. Postgraduate students also don’t have a practical feed milling environment to conduct proper, practical and innovative research and development, due to the lack of physical infrastructure.

The generally high price of animal feed in African countries compared to other regions around the World, mainly due to poor access to main feed input crops in the continent, remains a key bottle neck to further growth of the animal sector, as farmers who are over burdened with high input costs, can not afford to buy the expensive animal feed products SEP/OCT 2020 | FOOD BUSINESS AFRICA

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Importance of food safety in the grain milling sector Safe and nutritious food supply is essential for human well-being and, in turn, public health. Infected or spoiled food containing bacteria, viruses, parasites or chemical substances, causes more than 200 types of diseases – ranging from diarrhoea to cancers. An estimated 600 million – almost one out of ten people in the world – is affected by food poisoning and 420,000 die every year.

By Milan Shah, Technical Director, ALAPALA

I

n 2015, an interesting foodborne outbreak case happened in the US, which was covering 20 different states at the same time. The sufferers were applying to the hospitals with fatigue, vomiting and bloody diarrhoea symptoms, and they were all diagnosed with coliform infection. The outbreak lasted for weeks, and health authorities started to investigate the reason behind the outbreak: What did they eat? What did they buy last week? etc. The majority of patients were women, and it was finally found out that they were frequently baking at home.

The coliform bacterium is generally seen in raw meat and vegetables, however; could it also exist in flour? The answer is yes. The reason for the outbreak was infected flour, which was produced in one of the mills in Kansas area. The flour is normally consumed after baking or frying etc processes, however, the raw

62 SEP/OCT 2020 | FOOD BUSINESS AFRICA

flour or many refrigerated dough products actually possess substantial safety hazards to consumer health.

Flour is not actually documented to be a growth medium for bacterial organisms and pathogens based on the low-water activity. It is important to note, however, low-water activity is only a mechanism for growth inhibition and not lethality. In other words, bacteria may not grow in flour, but it can survive in a dormant state at dry environment of the flour bag on the store shelf or home pantries.

Supply Chain and Processing Flour safety is all about how to prevent any spoilage, infection or cross-contamination risk at all supply and delivery chain steps during handling, storage, processing, and preparation; while ensuring that it keeps its nutrient value at the same time.

FOODBUSINESSAFRICA.COM

FOOD SAFETY The grain is an agricultural product that actually has a high infection potential at the farming stage. The farms and wild animals serve as a reservoir for these pathogens and with such close proximity Salmonella, E. Coli, etc. can be introduced into grain fields and operations.

An effective cleaning operation is one of the important factors to eliminate the initial risks before processing. As well as grain separators and dry stoners etc., the use of intensive wheat scourers (KKSI) is effective to reduce the initial microbiological load of grains, by rubbing and peeling effect on the surface of grain kernels. De-branners are also as effective as scourers with their intensive abrasion effect.

Infestation is another problem regarding the flour safety especially under high enviromental temperatures. The risk can be seen both at grain harvest, or come up during the flour storage. The bugs found in flour and other grains are called ‘weevils’, and eggs of a weevil actually are in such a size that can easily passes through even the sieve fabric during the process. Thus, the infestation destroyer (DVDU) is used to kill and break the eggs before the storage of flour in silos or warehouses.

The ingredients, additives or any other material added, also play a role in the safety of flour. Apart from additives, the chemical and microbiological quality of other flour-contact substances e.g. water in the tempering process should also be evaluated as a part of cross contamination risk. Microbiological tests or rapid test kits sometimes can be a helpful solution to diagnose any potential risk including Salmonella, E. Coli, pesticides and mycotoxins in flour and grains.

As a part of food processing and supply chain, the reason for foodborne diseases can also be the personnel and their bad practices. Food safety training is not only a legal requirement, but also protects your customers from any food related health risks that could occur. The personnel should be informed about the process, environment and consumer behavior induced risks, and the requirements of ISO 22000, HACCP, etc. food safety standards.

Intensive Scourer, KKSI FOODBUSINESSAFRICA.COM

THE INGREDIENTS, ADDITIVES OR ANY OTHER MATERIAL ADDED, ALSO PLAY A ROLE IN THE SAFETY OF FLOUR. THE CHEMICAL AND MICROBIOLOGICAL QUALITY OF OTHER FLOUR-CONTACT SUBSTANCES E.G. WATER IN THE TEMPERING PROCESS SHOULD ALSO BE EVALUATED AS A PART OF CROSS CONTAMINATION RISK

Flour Treatment We have recently come across new trends and solutions to improve the safety properties of flour. Apart from being a whitener agent, chlorine is also used for flour treatment with its high antimicrobial effect.

Ozone is known as one of the most effective disinfectants, it has 3.125 times more antimicrobial effect than the chlorine. One of the most attractive features of ozone is that it leaves no chemical residue.

It is also extensively studied as a fumigant for wheat storage to reduce pest contamination. As Alapala, we are also focused on ozone technology as it gives promising results for flour treatment.

Some other treatments have already been carried out in flour milling including the use of heat, UV, and radio frequency, etc. All these treatments, however, still have some concerns regarding their operational cost, and their negative effect on the nutritional value of the flour. Further studies need to be carried out on flour treatment with the cooperation and participation of scientific and industrial institutions.

Conclusion Flour safety becomes globally important due to the high volume of the global flour trade, and we may need harmonized regulations in near future to feed the world’s people with safe flour.

Sustaining the flour safety is a crucial need for protecting the consumers, and actually the corporate brand image of the producers as well

Infestation Destroyer, DVDU SEP/OCT 2020 | FOOD BUSINESS AFRICA

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OPINION

The Nobel Peace Prize reminds us of the importance of food security in Africa

By Zuneid Yousuf, Chairman of African Green Resources

T

he United Nations World Food Program (WFP) has been awarded the 2020 Nobel Peace Prize for its efforts in the fight against hunger. This is a historic achievement in many ways, but by no means does it indicate the end of a journey. In fact, it is a pertinent reminder of the food insecurity we still face in many parts of the world.

The award has cast a spotlight on global food security in the Covid-19 era, where theUN highlights that those living in countries with long-running crises are 2.5 times more likely to be undernourished than people residing in peaceful conditions.

In Zambia, my country, for example, despite peaceful conditions, out of a population of 17.4 million, 48% of people are unable to meet their minimum calorie requirements. Across the African continent, deteriorating economies due to the global pandemic risk undermining government efforts to deliver social services, alleviate poverty, reduce malnutrition and achieve zero hunger. There is 64 SEP/OCT 2020 | FOOD BUSINESS AFRICA

undoubtedly a lot more work that is desperately needed.

As demonstrated by the WFP’s initiatives, agriculture and agribusiness hold the key to a vast array of African trade and export opportunities. It is the continent’s largest economic sector, with twothirds of the continent’s population employed within the agricultural industry making up at least 15% of the region’s GDP. It is vital to look at how investment in agriculture initiatives will encourage the industry to grow sustainably and thus contribute to eradicating hunger.

Fortunately, over the course of the pandemic, food trade has shown itself to be resilient, with the global agricultural markets remaining relatively stable. In fact, the global production levels for rice, wheat and maize, are at or near all-time highs, trading at prices that are close to their January 2020 levels.

Yet we know that significant challenges are still being felt due to supply disruptions and inflation, affecting key agricultural inputs such as fertilizers and seeds, or prolonged labour shortages, threatening crop yield.

The WFP has put in place vital strategies to build resilience and strengthen national systems and their capacities. In Zambia, the WFP has supported more than 50,000 smallholder farmers to adopt climate-smart agriculture and drought-tolerant crops to increase yields, as well as the establishment of rain gauges to help farmers make informed decisions on what and when to plant.

Yet the WFP’s work is only made possible through relationships built on knowledge transfer between the public and private sector in every country that they operate. This ensures that technical assistance and financial contributions the WFP

offer are fit for purpose solutions.

As the WFP’s Executive Director, David Beasley, highlighted in response to the Nobel prize, “[the WFP] works closely with government, organisations and private sector partners whose passion for helping the hungry and vulnerable equals ours. We could not possibly help anyone without them.”

Ultimately, domestic organisations are best-placed for intelligence, insight and knowhow, and the WFP’s model is in many ways an amplification of the work that several African NGOs and enterprises are already delivering.

I am proud that African Green Resources (AGR) is one such example, with many of the WFP and AGR initiatives overlapping. As with the WFP, AGR works to enhance the productivity and the resilience of smallholder farmers.

It supports their transition from subsistence farming to farming as a business by offering credit. The initiative also invests in sustainable agribusiness models that include input, processing, mechanisation and market access, as well as training programmes for farmers to improve their productivity.

The Nobel Peace Prize has shone a light on the successes of the WFP and it deserves great credit. However, I believe that longlasting change begins at home and my motivation has always been to transform agribusiness in Africa and empower local communities.

This starts with a commitment to investing in communities on our doorstep.

Ultimately, a sustainable approach to agriculture and farming can lead to better business practices and empower our local populations – let us work together and show the world how it’s done FOODBUSINESSAFRICA.COM

INNOVATIONS

Nestlé Health Science launches protein-based flavored drink mix that reduces aging SWITZERLAND – Nestlé Health Science has launched Celltrient Cellular Energy, a protein-based flavored drink mix to help renew natural processes that decline as one ages.

Celltrient Cellular Energy contains ChromaDex’s flagship ingredient, Tru Niagen (nicotinamide riboside).

While traditional micro and macronutrients may satisfy one’s basic dietary needs and are readily available through food, those nutrients may not suffice to combat the age-related decline in NAD+ (nicotinamide adenine dinucleotide) levels. The formulation also provides sources of Vitamin C and additional B vitamins (B12, B5, B6, Riboflavin, Thiamin & Biotin) to support energy metabolism.

ChromaDex and Nestlé Health Science entered a global commercial license and supply agreement for Tru Niagen within the medical nutrition and consumer health categories in December 2018, and Celltrient Energy is the first product launched from this partnership. The new product includes a 250mg serving of Tru Niagen (nicotinamide riboside, or NR) and is one of three products under the new Celltrient brand.

“Tru Niagen, the only proprietary form of NR, provides healthy aging and energy support at the cellular level by safely and effectively increasing NAD+ levels,” says ChromaDex CEO Rob Fried, adding that supporting cellular defense and repair by boosting NAD+ levels is important for healthy aging.

NAD+ levels decline with age as well as physiological stressors including stress on the immune system, intense physical exercise, alcohol consumption, and lack of healthy sleep cycles. Tru Niagen increases NAD+ levels safely and efficaciously, as demonstrated in multiple published human trials.

Recently, the company completed the acquisition of Aimmune Therapeutics, Inc., a biopharmaceutical company and a peanut allergy treatment maker, as it expands its fast-growing health science business.

The company, which specializes in developing and bringing new treatments to people with potentially lifethreatening food allergies, joins Nestlé Health Science as a stand-alone business unit called Aimmune Therapeutics, a Nestlé Health Science company. It will manage Nestlé Health Science’s global pharmaceutical business.

RESEARCH

Exposure to vitamin D in the womb may lower risk of high blood pressure on children USA – The chances of new born babies developing high blood pressure may be reduced or even eliminated for children who were exposed to higher levels of vitamin D in the womb, according to a study from researchers at Johns Hopkins Bloomberg School of Public Health.

The findings, based on an analysis of data on 754 mother-child pairs in Massachusetts, USA suggest that higher vitamin D levels in pregnancy may help protect children born to pre-eclamptic women from developing high blood pressure.

High blood pressure in childhood is associated in turn with hypertension and heart disease in adulthood, while children appear to be at greater risk of having high blood pressure when their mothers had the high blood pressure – a condition called preeclampsia during pregnancy. The study was published in JAMA Network Open.

"There is increasing evidence that cardiovascular disease risk is, to a great extent, programmed in the womb, and we now see that it may be vitamin D that FOODBUSINESSAFRICA.COM

alters this programming in a beneficial fashion," says study senior author Noel Mueller, PhD, an assistant professor in the Department of Epidemiology at the Bloomberg School.

Preeclampsia, which can lead to strokes and/or organ failure, is a major cause of illness and death for pregnant women, and also is associated with a greater risk of stillbirth and preterm birth, with researchers estimating that it occurs in 2-8% of pregnancies worldwide and is often associated with maternal obesity.

The rate of severe preeclampsia in the U.S. and other countries has risen sharply since the 1980s. At the same time, the rate of high blood pressure among children in the U.S. has risen by about 40% between 1988 and 2008 and studies have suggested that maternal preeclampsia may be a factor in that increase.

They have also linked maternal vitamin D deficiency to a higher risk of preeclampsia, and have suggested that lower levels of vitamin D in adulthood or even early in life bring a greater risk of hypertension.

SEP/OCT 2020 | FOOD BUSINESS AFRICA

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KENYA

Meat, Poultry

Fish Expo 15+

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The Kenya Meat, Poultry & Fish Expo showcases meat, poultry, fish and seafood products to a local, regional and international audience including: Fresh meat, poultry, fish and seafood • Processed and packaged meat, poultry, fish and seafood products – sausages, hams, Viennas, bacon etc •Frozen and chilled meat, poultry, fish and seafood • Processing, packaging and storage solutions for meat, poultry, fish and seafood industry • Equipment for cutting, slicing, weighing, blending, thawing, cooking meat, poultry, fish and seafood products • Ingredients, chemicals and other solutions for the meat, poultry, fish and seafood industry

AUGUST 5-7, 2021

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CONSUMER BEHAVIOUR

Supermarket trial reveals shoppers can be nudged toward healthy choices - study UK - A year long collaboration between supermarkets and food manufacturers in the UK to improve public health has proven the powerful influence retailers can have on consumer diets.

Simple tactics to encourage healthier purchases saw fruit and vegetable sales increase by 13 percent, along with a 19 percent drop in French fries sales and a 22 percent drop in confectionery sales.

These were some of the key findings of the 12-month trial led by Collaboration for Healthier Lives (CHL), Guy’s and St Thomas, a London-based charity. Results from the trials were analyzed at the University of Oxford.

Fourteen supermarket chains collaborated with manufacturers on interventions that could alter consumer purchasing choices. A total of 34 intervention techniques based on behavioral science theories were trialed. These included pricing and promotion changes, product placements, nutritional labeling and social feedback techniques.

Supermarkets participating in the trials showed remarkable differences in sales resulting from these tactics.

By using promotions aimed at children, Sainsbury’s increased sales of fruit by 387 percent. Following the end of the trials, this dropped to 17 percent. After introducing a healthy option on frozen French fries, manufacturer McCain’s witnessed sales of its standard packs fall by 28 percent. Tesco revealed a 24 percent drop in seasonal confectionery sales after removing display units for Easter chocolates.

CHL’s Behavioral Insights Team marked out some of the most effective tactics utilized in the trials to change consumer buying choices with pricing and promotions, availability, positioning, labeling and social feedback.

Creating financial incentives to purchase healthier foods is often highly effective, as are advertising promotions.

This is especially the case for children’s products; influential messengers such as kids’ characters and ‘gamified’ campaigns for collecting tokens can be strong attractions. These kinds of promotions should be strictly limited to healthy food products only, the report recommends.

Manufacturers are encouraged to shift the bulk of their products onto healthy options, making them more available and accessible. Sainsbury’s biscuits and McCain’s oven chips have both had success in this.

The report recommends that placing confectionary at supermarket checkouts should stop immediately and be replaced by healthy snacking options, since product placement in stores has a significant impact on consumer choices, as does the quantity of shelf space a product is given. Limiting the ease of access to unhealthy products showed great success in the trials.

Source: Nutrition Insight.

FOODBUSINESSAFRICA.COM

KENYA

SUPPLY CHAIN REGULATORY

PHE reports mimimal sugar in food products in the last 4years, way below its target ENGLAND – Public Health England (PHE) has released a report that shows a small 3% overall reduction in sugar in food products sold between 2015 and 2019, far below the government’s voluntary target for the food industry of 20% by 2020 The report said there had been hardly any change in sugar content in food eaten outside the home between 2017 and 2019, with the largest drops in sugar found in yogurts and breakfast cereals. It shows a mixed picture – falls in sugar in some branded goods sold in shops but relatively little change in sugar levels in chocolate and sweets, which are seeing rising sales.

LOGISTICS & E-COMMERCE

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JO ADDED THAT COVID-19 HAS HIGHLIGHTED OBESITY AND HOW IMPORTANT IT IS TO TACKLE THE PROBLEM WITH THE GOVERNMENT’S OBESITY STRATEGY INCLUDING SUCH MEASURES AS THE INTRODUCTION OF A TV WATERSHED FOR ADVERTISING FOOD AND DRINKS

The report also finds that marginal progress has been made in reducing sugar in products purchased and consumed in the eating out of home sector, such as cakes and puddings purchased from restaurants or cafes, although calories in these products have declined.

Most retailer and manufacturer branded drinks have reduced sugar levels by at least 10% already with prepacked sweetened milk-based drinks reducing sugar by more than 22%.

“On sugar reduction, particularly in products like breakfast cereals, yogurts and ice cream, we have achieved some much-needed progress. This will make it easier for everyone to make healthier choices, but it’s clear more can be done,” Jo Churchill, Public Health Minister, said.

Jo added that COVID-19 has highlighted obesity and how important it is to tackle the problem with the government’s obesity strategy including such measures as the introduction of a TV watershed for advertising food and drinks high in fat, salt and sugar.

The authorities are also consulting on how to introduce a ban for such products online.

The report also highlights the success of the Soft Drinks Industry Levy (SDIL), with average sugar levels in drinks subject to the levy falling by 44% between 2015 and 2019 for retailers and manufacturers. PHE says that overall, sugar consumed through these products has fallen even as sales have increased.

“Too much sugar is bad for our health and most of us are consuming more than we need, often without realising it. We’ve continued to see some progress in reducing sugar in a number of everyday food and drink products and this shows that success is possible through reformulation,” Dr Alison Tedstone, Chief Nutritionist at PHE, said.

The Kenya Supply Chain, Logistics & E-Commerce Expo showcases the latest technologies in the supply chain, logistics, storage and e-commerce for food and agriculture products including: Motor vehicle, trucking and other mobility solutions • Motor vehicle and asset tracking services • Traceability, Security & Surveillance Systems • Storage and warehousing solutions and services • Cold chain, refrigeration and other services • Information and communications technology • HR, Sales, Warehousing, Financial, Marketing & Accounting Software and Services • Financial Management & Risk Management Services • Distribution, logistics and last mile delivery systems and services • Construction & Facility Management Services.

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REGULATORY

European Commission promotes nutritional diversity in Africa, launches US$8.1m FoodLAND project THE PROJECT WILL CREATE A NETWORK OF 14 LOCAL FOOD HUBS, PAIRED WITH 14 SEPARATE CITIES IN THE TARGETED COUNTRIES, THAT WILL MOBILISE RELEVANT ACTORS IN RURAL, URBAN AND PERI-URBAN COMMUNITIES

AFRICA – The European Commission has invested €7 million (US$8.1m) to fund the FoodLAND project, an international research initiative aimed to boost the nutrition performance of local food systems in Africa.

According to the commission, the project is within the Horizon 2020 programme and is led by Alma Mater Studiorum – University of Bologna (Italy).

It is committed to developing a range of innovations for local agriculture and aquaculture development, as well as to nudging consumers towards healthier eating behaviour in six African countries i.e. Morocco, Tunisia,

Ethiopia, Kenya, Uganda and Tanzania.

The overall project aims to strengthen agro and food diversity by providing traditional-based, healthy, nutritious foods, while encouraging the diffusion of African diets and aiding the fight against malnutrition, particularly in women and children.

“By bridging the gap between food production and consumption, the project will reinforce the productivity and resilience of food supply chains, and will create new market opportunities on both the local and global scales”, said project coordinator Marco Setti, Professor of the Department of Agricultural and Food Sciences of the University of Bologna.

The project will create a network of 14 local Food Hubs, paired with 14 separate cities in the targeted countries, that will mobilise relevant actors in rural, urban and peri-urban communities and serve as injection points for testing and introducing the innovations.

NUTRITION

African countries urged to increase nutrition funding to forestall malnutrition post Covid-19 pandemic

AFRICA – A new position paper has been unveiled calling upon African Heads of State and Governments to ensure that financing for nutrition is included in their country’s COVID-19 response and recovery plans.

The paper, which was released by the African Leaders for Nutrition (ALN), a platform for high-level political engagement to advance nutrition in Africa notes that the pandemic has had unprecedented 68 SEP/OCT 2020 | FOOD BUSINESS AFRICA

negative impacts on people’s health, nutrition and livelihoods across the continent.

The position paper titled, “Embedding Nutrition within the COVID-19 Response and Recovery,” recommends that countries maintain or increase the level of funding allocated to nutrition to safeguard previous efforts to address malnutrition, and ensure there are no gaps within their multi-year nutrition programmes in the immediate, medium-term and post-pandemic recovery COVID-19 responses.

“As COVID-19 cases rise in Africa, the impact on nutrition and food systems cannot be denied. The threat of this new virus requires us to adopt new ways of looking and overcoming malnutrition,” said former President of Ghana John Kufuor, an ALN founding member and Nutrition Champion.

The COVID-19 pandemic is a chance for Africa’s leaders to reshape and spearhead high-level sensitization, advocacy and resource mobilization efforts towards securing increased investments in nutrition, urges the AfDB. FOODBUSINESSAFRICA.COM

Critical steps to improve heart health during the Covid-19 pandemic

A

By the American Heart Association

healthy heart is always essential but especially during the current pandemic. People with heart disease and other medical conditions appear to be at higher risk for more severe symptoms or complications if they contract COVID-19.

Scientists continue to learn more about the virus while working to develop a vaccine. In the meantime, a heart-healthy lifestyle can help in coping with the coronavirus, said Dr. Gina Lundberg, clinical director of the Emory Women's Heart Center in Atlanta.

People with serious heart conditions, Type 2 diabetes, cancer and obesity are among those at increased risk of severe illness with COVID-19, according to the Centers for Disease Control and Prevention.

Those with high blood pressure, immune system deficiencies and lung diseases and stroke survivors also might be at increased risk.

"If you're a heart patient, you are more likely to have severe symptoms and less likely to be asymptomatic. And you can get very sick very quickly," said Lundberg, a preventive cardiologist.

Some patients with COVID-19 experience racing heartbeats, abnormal heart rhythms, FOODBUSINESSAFRICA.COM

congestion and shortness of breath. Complications can include pneumonia and blood clotting.

Aim for optimal heart health To improve heart health, follow the American Heart Association's Life's Simple 7, involving simple changes everyone can make. The seven steps are eating a nutritious diet, staying physically active, losing excess weight, managing blood pressure, controlling cholesterol, reducing blood sugar, and quitting smoking.

Some of Lundberg's patients are now taking the opportunity to walk more in their neighborhoods or nearby parks and to eat more fruits, vegetables and lean meats at home.

One patient who previously traveled for business and frequently ate out lost 40 pounds during the past few months with a new at-home routine of healthy eating and exercise. It's a much better strategy than sinking into excessive eating, drinking and sedentary time during the COVID-19 shutdown, Lundberg explained.

Structure can be useful if you are mostly staying home during the pandemic. Plan for nutritious meals at designated, convenient times, suggested Linda Van Horn, chief of nutrition in the department of preventive medicine at Northwestern University's Feinberg

School of Medicine in Chicago.

Ideally, every meal or snack should include a fruit or vegetable, she said. Look for seasonal fresh produce you enjoy. If fruits are ripening too fast, consider washing, slicing and freezing them for later use in smoothies, breads and yogurt or to flavor a glass of still or sparkling water.

Reducing or eliminating restaurant eating – a necessity in many communities because of COVID-19 – can help with healthy eating and losing weight.

"We all enjoy taking a break from cooking," Van Horn said. But homeprepared meals typically are more nutritious with fewer calories, salt, sugar and fat. More nutrients and fiber can be added as a side dish or salad.

Try something new – and healthy If you're not accustomed to cooking, start by choosing a favorite meal.

Look up the recipe online to learn the ingredients and preparation techniques, and then give it a whirl, Van Horn suggested. You may be surprised how easy it is to become a budding chef.

Battle the urge to eat because of stress or boredom by instead having a glass of fruit-infused still or sparkling water or a cup of hot SEP/OCT 2020 | FOOD BUSINESS AFRICA

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KENYA

NUTRITION HEALTH & WELLNESS

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PAVILLIONS SHOWCASING FOOD, FEED & TECH

0+ 500 S NDEE

ATTE A AFRIC FROM ORLD W & THE

1000+

PROD UCTS & SOLU TIONS FROM AF & BEY RICA OND

tea or coffee. Remember to avoid sugar-sweetened beverages, which can contribute to weight gain.

Another way to avoid mindless eating is to take a quick walk around the block and remind yourself your next meal is coming soon.

Exercising outdoors is fine if you practice physical distancing by remaining at least 6 feet away from others.

Indoor gyms raise a concern because of close contact with others who are huffing and puffing, Lundberg said.

Wear facial coverings in public to help prevent you and others from getting COVID-19.

Manage stress to aid in boosting your overall health by trying activities like yoga and meditation. Stay socially connected. It's possible to visit with family and friends while taking precautions to guard against spreading illness. Consider an online meet-up. Or, organize a small gathering of neighbors, friends or fellow faith community members and set up folding chairs 6 feet apart outdoors.

"You can be with people. You just can't be close up with people," Lundberg said. "Stay positive, be innovative, find ways to do things that are safe."

IN NUMBERS

US$749B

The Kenya Nutrition, Health & Wellness Expo showcases the latest nutrition, health and wellness trends that meet current consumer needs in Kenya and the East African region, including: Nutritious food, beverage and milled products • Food supplements and nutraceuticals • Wellness aids, products and services • Sports nutrition products and services • Botanicals, tonics and herbs • Probiotics, prebiotics and functional fibre products • Vitamins and minerals products • Sugar reduced and sugar-free products; Fat reduced and fat free products and Salt reduced and salt free products • Plant-based and dairy free products • Baby care and mother care products • Sleep and relaxation aids and products • Exercise and fitness products and services • Personal care and home care products

AUGUST 5-7, 2021

SARIT EXPO CENTRE, NAIROBI, KENYA A SPECIAL PAVILLION AT:

AFMASS

FOOD EXPO KENYA EDITION

WWW.AFMASS.COM/KENYA 70 SEP/OCT 2020 | FOOD BUSINESS AFRICA

PROJECTED COST OF DIRECT MEDICAL COSTS OF CARDIOVASCULAR DISEASE IN THE US BY 2035 Check in with your doctor It's important to take prescribed medications and stay in touch with your regular doctor. Telemedicine appointments may be available to avoid visiting a clinic in person. To learn about managing your cholesterol and to check your risk for heart disease and stroke, use the American Heart Association's Check. Change.

Control. Calculator.

Heart disease is the leading cause of death in the United States, and heart disease and stroke are among the costliest health problems, leading to medical bills and potentially lost wages and disability. The total direct medical costs of cardiovascular disease are projected to increase to $749 billion by 2035.

Months from now, researchers will know even more about the coronavirus and how heart disease and many medical conditions interact with it, Lundberg said. As scientists continue their work, making lifestyle changes and striving for optimal heart health is a positive path we can all take now Source: American Heart Association FOODBUSINESSAFRICA.COM

Daniel Nyange Site Manager Africa Improved Foods Rwanda Ltd FOODBUSINESSAFRICA.COM

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Describe your current role, your key responsibilities and the most critical deliverables? What are the most important skills sets in achieving success in your role?

I am the Site Manager at Africa Improved Foods Rwanda ltd (AIF). This means that I am responsible for Production, Maintenance, SHE (Safety, Health and Environment management), Security, Warehouse and Inventory management departments – largely known as Operations. Each of these comes with a set of expectations. Production is about conversion of raw materials into finished goods at the right Productivity, Quality, Cost, Operational excellence parameters.

In SHE, we make sure that our work environment is accident free and in complete compliance with the most stringent regulatory boundaries while incorporating behavior-based initiatives, in Maintenance, we increase the plant reliability and asset care in line with the targeted capacity utilization indicators. The Security team keeps all our assets free of incidents and works towards preventing these incidents rather than reacting to them. In the Warehouse and inventory management we receive, store, deliver inventory on time, in full and error free (OTIFEF). To lead this exceptionally talented and multi-cultural team, one should understand and align the needs of the People (Stakeholders), lowering the company’s ecological footprint (Planet) and Profit (Prosperity). We are very operational round the clock and heavily team-driven and we keep looking out for and inspiring each other to continually improve as we believe that the team is as strong as its weakest member. ‘We Deliver’ is our rallying call and we celebrate our milestones together.

Tell us about your company and how it fits in with career goals. Briefly, what is the typical day like in your role and company?

AIF is a PPP impact organization. We are inspired by the solid evidence that the 1000 days from conception to the second birthday, are critical for a child’s physical and mental development. Our mission, therefore, is to stamp out stunting and malnutrition by manufacturing improved and nutritious foods through the upstream Value chain approach and Cleaning, Milling, Extrusion, Fortification and Packaging technologies while incorporating Operational excellence. To lead the AIF manufacturing team in this noble mission achieves my goal of contributing to a social cause with my expertise from leading different Multinational Manufacturing teams in the EA region. I am excited and rewarded to see that in just under 4 years since Commissioning the Kigali - Rwanda site, we are already feeding 1.5 million people daily, with improved nutrition. My role is more strategic-tactical with operational elements in guiding the Site operations. My typical day is laden with looking for structural improvements that make us more flexible to meet our stake-holders’ needs.

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TO LEAD THIS EXCEPTIONALLY TALENTED AND MULTI-CULTURAL TEAM, ONE SHOULD UNDERSTAND AND ALIGN THE NEEDS OF THE PEOPLE (STAKEHOLDERS), LOWERING THE COMPANY’S ECOLOGICAL FOOTPRINT (PLANET) AND PROFIT (PROSPERITY). WE ARE VERY OPERATIONAL ROUND THE CLOCK AND HEAVILY TEAM-DRIVEN AND WE KEEP LOOKING OUT FOR AND INSPIRING EACH OTHER

What have been your previous roles before the current one? How important were those roles in shaping your current role?

I hold a Master of Business Administration (MBA) degree in Strategic Management and a BSc degree in Chemistry and Biochemistry. I have come through the ranks and trained with Multinationals, Regional and Kenyan Organizations that prepared me for this role. I started off as a Process Operator and later as a Quality assurance analyst at SmithklineBeecham - now GlaxoSmithKline where I got my foundation in Manufacturing through GMP and Quality management systems. I moved to Unilever EA as Shift Manager where I picked up Operational excellence - TPM (Total Productive Manufacturing / Maintenance) and employee engagement skills. I later managed the Nakuru Unga feeds plant (the biggest animal feeds plant in EA by installed capacity at the time) as Plant manager where I picked up Milling, Fortification and Gemba Kaizen as an excellence tool. Tropical heat ltd was my next stop, where I picked up Extrusion and Food safety skills and was appointed the Production and Logistics Director.

Each of these Organizations had their own challenges and success stories that have shaped me over time.

What have been the key turning points in your career?

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

I have not considered a career change, but I have had to quit when it was not exciting any more. Manufacturing has always been a sector that fascinates me. Using advanced technology, changing roles, capital and staff planning, technical problem solving, motivating teams to keep raising the bar have all been part of my story.

The turning point was when I was made the Production and Logistics director at Tropicalheat ltd and had to attend board meetings.

What makes your role interesting? What do you enjoy most about your role? What has been the role of mentors and family in the achievement of your professional goals?

It is all about finding that which motivates me and the team, to perform at peak and while at it, enjoying every moment.

Yes, I have had several mentors, but in general I look up to people who exhibit a lot of drive and perseverance through adversity. I think mentors are key for guided FOODBUSINESSAFRICA.COM

PROFILE: DANIEL NYANGE

THERE CANNOT BE SHORT-CUTS TO SUCCESS, ONE MUST INVEST TIME TO LEARN AND PRACTICE. IN OPERATIONS, MEASUREMENT IS KEY AS YOU CAN ONLY CONTROL OR MANAGE THAT WHICH IS MEASURED.

growth with self-reflection. As a young person finding my path, I always remembered the African proverb that the youth can walk faster but the elder knows the way.

I am still learning to take a pause to self-reflect when I think I am running too fast. I especially admire the training regimen of the famous marathon Runner Eliud Kipchoge. Even with his world record, he still wakes up every day to practice as if running his dream marathon – under 2 hours. He once said ‘do not ask me about my dreams, ask me how crazy my dreams are’. I also count my blessings when I am down, when I remember what a colleague at AIF had to go through to be here today after the Genocide in Rwanda. This paragraph is too short to do my mentors justice.

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

The factory support infrastructure in the region is nascent and therefore not able to fully support the kind of Plant that AIF is. We have to be creative and look for solutions where we face challenges in technical areas by developing internal capability eg in Silo fumigation, availability of parts and spares etc. Luckily, my team is ever ready to face these challenges. We have indeed improved the installed capacity by 5,000 tonnes without additional capex. We are constantly training the team since the industry is young and we have no peers in the category to share training costs with. For automation, optimization and process control we get support from Europe as we upskill the team.

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

Due to post-harvest challenges from un-mechanized handling and reliance on small scale - subsistence and rain fed agriculture, there is a shortage of highquality inputs. This therefore yields unacceptable level of waste in the value chain and high in-put prices as compared to European producers. Investments in these value chains can be a good opportunity that will work to stabilize supply chains. As the regional economies grow with regional integration and better connectivity, the consumer’s choice increases in the trade. It is those organizations that are flexible to the changing consumer needs that will be preferred.

FOODBUSINESSAFRICA.COM

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

It was Harry S. Truman who said, “Not all Readers Are Leaders, but all Leaders are Readers”. I am an avid reader without a preferred genre. I enjoy out-door activities that work to keep me healthy and fit as they help me to create networks that I once in a while tap from. Traveling with Ruth, Blaise and Sasha, Cycling, the Gym, jogging and learning the piano from Sasha as well as tree planting are some of the hobbies that help me to unwind.

What are some of the personal or community activities you engage in to develop yourself or your community?

In Nairobi’s Mukuru kwa Njenga informal settlement, I have for many years supported the ‘Ghetto champions’ football club that has kept many kids in school and out of trouble. Covid-19 slowed us down but I believe this will be better and bigger in the future. I also use my free time to coach the young leaders through one - on - one sessions as I also inspire them in a book club I created. Back then, growing up in the village we had elders take care of us. I believe they need our support in their sunset years. This, I do religiously as a lesson from Saint Francis of Assisi’s ‘For it is in giving that we receive’.

How can young people who may aspire to a career choice like yours plan their journey? What advice would you give them to succeed in their careers and life?

Keep learning! There is no end to it – Quoting Master Yi, ‘A true master is an eternal student’. The younger people need to keep exploring the horizon from fast changing technology and needs. From the words of Benjamin Franklin, ‘What hurts, instructs’. There cannot be short-cuts to success, one must invest time to learn and practice. In Operations measurement is key as you can only control or manage that which is measured. All problems have solutions the young need to look for solutions to challenges that bedevil Africa! and the opportunities are immeasurable. Networks, collaboration and connecting with colleagues within and outside the organization, continuous shaping and influencing the environment while staying true to their mission, creating time to exercise the body and mind and create enjoyable time with their families while loving each moment! Being happy is the name of the game.

What else would you want to do in the future? What would you want to accomplish in your career before you step away from the industry?

I would like to see Africa feed Africa and that we build the most competitive industries in Africa. With my vast experience in manufacturing, I will take up a role in realizing this dream in whatever capacity

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STEFAN LUTZ 74 SEP/OCT 2020 | FOOD BUSINESS AFRICA

AFRICAN MILLING SCHOOL MANAGING DIRECTOR

FOODBUSINESSAFRICA.COM

INTERVIEW: STEFAN LUTZ - MANAGING DIRECTOR, AFRICAN MILLING SCHOOL

Give us a brief history and relevance of the African Milling School We started this project 5 years ago. The aim was to bring millers in the region to operational excellence, because milling is not just having these beautiful machines around it; milling is all about adjusting the equipment and bringing the maximum out of grains; whether it’s wheat, maize etc. The maximum output out of any grain is obviously focused on flour extraction, and what does not go into flour goes into by-products and you obviously want to keep the flour extraction as high as possible.

Why did you set up the school in Kenya?

We looked at the map of Africa; there’s South Africa, then there is Egypt and also very big milling countries such as Nigeria. But, why did we set up in Kenya?

Kenya is in the heart of Africa and the Middle East and this region is also where the majority of our students come from.

What are some of the key achievements in the last 5 years?

When we started the School, we started not knowing what will come, not knowing also what to expect. What we wanted was to bring the apprentice program, our core program, to Africa because in Europe, if you are in Switzerland or Germany, you graduate from secondary/ high school, for instance, then you go into an apprentice program.

An apprentice program is a vocational program where a flour miller will employ you. Then you have the opportunity to learn the theoretical part of your profession at school, backed up with the practical part in the mill. We didn’t have this in Africa and Middle East. Bringing this program to Africa was a very good challenge and a very successful one because since we started, I can say we have had about 170 apprentice students graduating from the African Milling School.

Besides the apprentice program, we offer also weekly short courses such as mill maintenance, baking, quality control and milling modules. And, to bring the knowhow to the next level, we also facilitate head miller trainings. We can say we have already had about 1000 students passing through this facility in the last 5 years.

What is in this building? What do we have here?

In this building we have of course our school mill. This is a fully equipped flour mill designed for mainly wheat and maize processing. However, we have also found out in the 5 years that in Kenya and East Africa we have the need for local grains, so we upgraded the school mill in 2019 for sorghum and pulses processing.

I am seeing a coffee roaster what has coffee got to do with milling?

You are right. It has nothing to do with milling. It’s just FOODBUSINESSAFRICA.COM

that our mother company Buhler is also in coffee and cocoa processing as well; and that’s why we have the coffee roaster here and as you know coffee is a very traditional product for Kenya.

So what you are actually saying 5 years ago this was a Milling School only but essentially its more than milling?

Yes, it has become a hub for food processing - we have expanded the scope of the training areas we handle at this facility. For example, we have had trainings in extrusion of food products as well. Offer brewing and coffee trainings.

We also have a fully equipped laboratory where we can do baking and where we have all types of analytical equipment that we use to train our students. We also have a by-products section that is fully equipped with a pellet press, which is a new technology we brought to the region, because when we also look into the livestock feed industry some years ago, the industry was only used to mash feeds. Now by our work of ensuring the right know-how transfer and train on how important pellets for animal nutrition are, we have seen a clear change in the industry- going towards international standards by improving feeding efficiency in animal feed substantially.

How has the School contributed to enhanced food safety and efficiency in the milling industry in the region?

I wouldn’t say it was just only the contribution of the Milling School. I would say that we were just a good platform to, from the beginning, be a good example of keeping the environment clean. The School has also enabled us to pass on the knowledge to the millers of the need to ensure that the right quality control aspects such as testing the grains for moisture and Aflatoxins, and checking flours for water absorption, protein and starch damage etc. can be adopted in the region. All these things were not that well established 5-6 years ago.

How has the milling school continued with its mandate of building up capacity of the sector during the Covid-19 pandemic?

First, it was a shock and then an immediate stop of our plans; we had started the year very well. We started in January with our third head miller class (HM3), followed by the sixth apprentice millers’ class (APM6).

We then conducted a wheat workshop in collaboration with Canadian International Grain Institute (CIGI). We had only one week in March with our fifth apprentice class.

You can imagine 28 young students out of 17 nations, highly motivated, eager to learn! Then things started to get complicated, boarders started to close, so we had to decide. And we decided on a Sunday morning to call the School off and to ensure that all the students can travel home safely. That week, the Kenyan President announced that all schools, institutes and universities SEP/OCT 2020 | FOOD BUSINESS AFRICA

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have to close.

Since then, what did we do to cope? We had to find new solutions. We introduced an e-learning platform, to keep in contact with our students and to ensure training remotely. But this platform is only for getting the learners up to speed with technical issues, homework and preparation; the main training will still be here at the Milling School, because milling is all about adjusting, about understanding the process and we cannot transfer this practical know-how virtually.

We also started looking for alternatives. For example, we are guiding our customers now through consulting services e.g. in energy management. Our customers can now consult our experts and will be advised on how to improve efficiency of the mill, not just in terms of extraction but also in the energy usage of their mills.

Besides that, we are also offering our laboratory services commercially. When a customer has a problem with the flour, maybe a complaint from one of their customers, let’s say a baker, he can send the flour to us and we will do the entire analysis, then we can consult for him on what could have been wrong and how he can improve it. Sometimes, the customer just wants to ensure operational excellence in his laboratory, so we are also offering calibration services for their equipment as well.

Why would miller invest to bring their technical staff to the AMS? Grains are natural products but they can vary. But we can’t risk variations in respect of quality and extraction at our finished products. This know-how can only be transferred at a professional milling school. To ensure operational milling excellence throughout the process, whoever works in the mill needs to understand the entire value chain of grains, and also it’s characteristics and parameters.

We have seen increased investments in Kenya and in the region’s milling sector. How does this increased competition affect the sector?

We see this trend, it is not just a Kenyan trend but it is a global one. The pressure from consumers is increasing and there will be a tendency to have fewer, bigger mills of say, 600 tonnes per day in future as opposed to having many smaller, say 150 tonnes per day mills, to reduce operational costs of running the mills. Many parameters here play an important role - some are logistics, energy consumption, labor, etc. Therefore, efficiency is key to operations in these current times to be able to compete in the market.

By having more centralized operations, the pressure for the millers are also higher in terms of ensuring that the lines are running as efficiently as possible. Avoiding down time, low energy consumption and ensuring high extractions are key, and to ensure these are achieved, the best people are required. That’s where our training comes in, again.

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Tell us about the trends you find in the laboratory services you offer We look at different grains in our laboratory at the moment. I can say that at the moment most of the time we are occupied with Aflatoxins testing, because we know lately the maize in Kenya has had some quality issues. Currently, due to ongoing maize imports to the country the situation has stabilized.

FROM 2021 ONWARDS, WE WILL OFFER THE APPRENTICE PROGRAM FOR FEED MILLERS. SO, IT’S NOT JUST THE MAIZE AND WHEAT MILLERS WE SHALL BE TRAINING, IT IS ALSO NOW GOING TO THE NEXT STEP: THE FEED MILLER

If we go now to wheat, we see we are mainly occupied with protein levels, because we have a lot of protein variations. But it is not just about protein quantity; it is also the quality of the protein, where we do a lot of analysis. And then if we go more into finished product analysis like flours, there we see a very high demand for starch damage and water absorption analysis. You must imagine that it’s always a question in the region, especially for the home baking market, how many chapattis can be produced out of a kilo of flour. That’s all based on the water absorption.

Besides water absorption, we also find interest from millers to test flour extensibility, because you can produce a certain quantity of chapattis out of flour, but when you produce the dough, how extensible is it going to be? You also don’t want the dough to shrink together again after rolling it out. The co-relation between having the highest yield and having the best extensibility is key at the moment for the home baking market.

What about industrial baking?

The industrial baking sector needs good, strong gluten dough, probably with a little extensibility as compared to that of home baking and also high water absorption.

What is the future of the School and what is the message to your customers?

We have reopened and we have a packed program throughout the rest of the year and 2021. It is a nice combination between eLearning and presence classes here at the African Milling School.

From 2021 onwards, we will offer the apprentice program for feed millers. So, it’s not just the maize and wheat millers we shall be training, it is also now going to the next step: the feed miller. We have about 11 months courses stretched out, including a newly created short course in brewing, pulses and coffee processing.

So we can’t wait to welcome students and customers again at our facility!

FOODBUSINESSAFRICA.COM

How COVID-19 Has Changed Eating Habits Across the World

By Dr. Evangelia Komitopoulou

C

hanges to eating habits as a result of the COVID-19 pandemic have been documented since the start of global lockdowns. Trends including a return to home cooking and baking, an increase in demand for organic, plant-based, vegan and vegetarian foods and a reduction in demand for what are perceived as more exotic foods, have all been identified, and many are expected to continue in the post COVID-19 era.

To date, there is no scientific evidence that the virus is transmitted by food, but

FOODBUSINESSAFRICA.COM

consumer dining habits and shopper attitudes towards canned and pre-packaged food reflect uncertainty towards the pandemic’s largely unquantifiable threat.

Increasingly, consumers are more conscious of food safety and food origin, and the COVIDled disruption of global supply chains has strengthened demand for shopping and dining locally.

The COVID-19 pandemic, as well as growing health and environmental concerns, has encouraged some consumers to choose animal-free diets.

This in turn has contributed to

an increase in the development of new products by plant protein firms and to a boost in consumer perception of the health benefits of plants, both as part of their diet and in healing remedies.

Lockdowns have also affected consumer attitudes towards food priorities. A recent consumer research study in the UK indicated that during the pandemic, vegan diets became more appealing to over 12% of British consumers, with a quarter of young millennials (aged 21-30) being significantly more attracted to a vegan diet.

The healing power of plants

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and botanical ingredients believed to have medicinal benefits also received significant support (51% of participants), while the five-a-day mantra moved up the list of food priorities as 23% of participants confirmed they have been consuming more fruit and vegetables since the start of the pandemic.

Popular amongst YouTube’s most watched videos during the same period were videos about understanding the origin of the pandemic and how it could be fought using home cooked food remedies. Analysis of online keywords indicates a significant increase in the popularity of searches for “Recipes” and “Delivery.”

At the same time, interest in food products such as flour, bread, fruits, milk and chicken has increased significantly, indicating a long-term interest in cooking from scratch, baking and food storage. At the same time though, almost two in five consumers in the UK believe that the lockdown impacted people’s eating habits with people turning to long-life food. Since the pandemic started, 17% of participants in the UK have been eating more tinned food.

A study of attitudes and eating habits in Spain during the lockdown indicates that lowering the frequency of shopping has reduced consumption of the most perishable food products, like fish and seafood, that would otherwise be heavily consumed.

However, sales of nonperishable, ready meals also dropped. This was most likely attributed to people’s perception of the latter being unhealthy and the more time consumers had 78 SEP/OCT 2020 | FOOD BUSINESS AFRICA

for cooking during the lockdown.

Alternative food trends

When looking at the alternative protein topics of insects, cultured meat and plant proteins over the last five years, we noted that interest in the insect topic peaked in 2017 and it is now discussed less, while the topic of cultured meat continues to increase. It has seen a significant peak since 2019, linked to announcements of it becoming a reality with, for example Future Meat Technologies raising $14 Million to build the first pilot plants and Memphis Meats announcing an investment in their Series B funding of $168 million going towards their pilot production facility.

POPULAR AMONGST YOUTUBE’S MOST WATCHED VIDEOS DURING THE SAME PERIOD WERE VIDEOS ABOUT UNDERSTANDING THE ORIGIN OF THE PANDEMIC AND HOW IT COULD BE FOUGHT USING HOME COOKED FOOD REMEDIES.

sales, as manufacturers struggle to meet customers’ appetite for them. Total plant-based meat production currently stands at 0.2% of the US meat industry.

In early 2020, food service operators failed to stock enough product for special offers, leading to queues and customers being turned away after selling out in five hours.

Ana Paula Fonseca, Head of Quality and Food Safety in North America at Danone, revealed that plant-based alternatives to dairy have established themselves and the market continues to grow, with dairy free drinks, yoghurts, cheeses and ice creams readily available. Almond, oat and soy are popular alternatives, however niche replacements from water lentils and lotus flour are also available.

The conclusion of the session was that alternative plant-based foods still face challenges to upscale production in order to meet the consumers’ interest and needs.

Flexibility and adaptation

For proteins from plants, we identified two macro-families in which these preparations are used, either as substitutes for dairy products or as substitutes for meat. In both cases, after an increase in 2017, the sources maintain a constant level of interest in the topic. Dairy substitutes were more frequently discussed in previous years, but the revitalisation of meat substitutes means they now are equally discussed and debated.

Christie Lagally, CEO, Rebellyous Foods showed us that projected demand for plantbased meat is far outpacing

COVID-19 and the business interruption across the world has impacted global food supply chains and consumer habits. In response, the industry has made significant effort to be flexible and adapt ways of working to ensure food production and supply. However, the ongoing challenges presented by COVID-19 will require the industry to adapt further and faster than initially expected - Dr Evangelia Komitopoulou is the Global 2nd party and Customised Solutions Manager at SGS FOODBUSINESSAFRICA.COM

SUPPLIER NEWS & INNOVATIONS

INNOVATION

NEOGEN launches improved test for gluten in food and environmental samples

USA — Neogen Corporation has launched an improved

test that rapidly detects gluten in food products, raw ingredients, and environmental samples.

The company states that the new test, Reveal 3-D for Gluten, streamlines the testing procedure and simplifies the experience for the user, screening samples at 5 parts per million (ppm) gluten in just 5 minutes. The new test also now offers the capability

of extracting and testing food product and ingredient samples, in addition to environmental samples and clean-in-place (CIP) rinses.

“Our new test for gluten makes it even easier for our food industry customers to test their food products and environment for gluten — and protect their gluten intolerant and allergenic customers,” said John Adent, Neogen’s President and CEO. “Our customers can now use a single test to screen food and environmental samples for the presence of gluten — greatly simplifying that testing. This important new test further enables our customers to use the same easy-to-use testing methodology to test for the allergens of most concern to the food industry.”

Reveal 3-D for Gluten offers the option of a specialized buffer that can be used to extract and test food samples directly, while not sacrificing the time to result, and maximizing efficiency for users of the test, adds Adent. He adds that the test maintains a three-line test format, including an overload detection system designed to ensure highly positive samples are accurately reported.

PARTNERSHIP

O-I Glass collaborates with Krones to create solutions for the glass packaging market

GERMANY – The O-I Glass company and Krones, a

packaging and bottling machine manufacturer, have signed a strategic collaboration agreement that will see the two companies work together to create solutions for the glass packaging market.

According to a joint statement from the companies, this partnership combines O-I’s specialised knowledge

FOODBUSINESSAFRICA.COM

of glass with Krones’ competence in manufacturing machines and filling lines for the food and beverage industries.

“For O-I, glass is the preferred packaging solution in a world that increasingly values health, premium products and the environment,” Andres Lopez, president and CEO at O-I, said. “Not only does it maintain the integrity of the products and protects the environment, as customers and consumers intend, but it also offers magnificent opportunities for establishing brands and implementing sustainable solutions.

The companies state that this agreement is the first step that they are taking together in order to offer clients completely integrated, end-to-end solutions in the future, with focus areas including improvements in glass filling and packaging line speed and efficiency and enhanced agility and flexibility of responding to market trends. It will also cover the development of innovative and sustainable glass systems; and advancements in digital solutions such as direct-to-glass digital printing technology.

“In production facilities all over the world, the products of O-I and Krones are already encountering each other. So it was absolutely logical to improve still further the compatibility of Krones’ complete lines and the glass containers from O-I,” Christoph Klenk, CEO of Krones AG, said.

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PARTNERSHIP

Symrise partners with three companies to offer turnkey project management solution

GLOBAL – Symrise, a supplier of natural flavor and

nutrition solutions, has partnered with three other companies with significant beverage commercialization expertise to launch Incubev, which will help brand owners bring their beverages to market faster by offering a unique turnkey project management solution The partnership with Haney, a packaging microfactory; PTI, a leader in packaging development; and Califormulations, a provider of beverage formulas and small-scale production for commercialization trials, will enable the companies harness their

collective knowledge and expertise to dramatically accelerate pre-commercial activities including product development, package conceptualization, prototyping, and activation for consumer testing and concept validation.

By harnessing the critical functions of beverage formulation, package design, contract manufacturing and logistics under one alliance, the IncuBev family of companies hopes to remove those pain points and guide brand owners to successful brand introductions.

“What differentiates IncuBev is that collectively, we are a single source that provides the flavor, the packaging, the printing and the filling. The result is a true end-to-end beverage development ecosystem, from innovation to commercialization,” Paul Graham, president, Symrise Flavors said.

In related news, Symrise recently launched Taste for Alternative Protein (TAP), a global initiative to develop products in the meat alternative, dairy alternative and nutritional beverage categories.

Symrise and Diana Food, working synergistically on the Taste for Alternative Protein (TAP) Platform, have created a complete toolbox of ingredients and flavors that offers taste, richness, masking, color and appearance improvements to savory foods so they can formulate naturally tasty concepts.

FUNDING

IFC backs Nigerian PET resin manufacturer Engee with US$39 financing facility

NIGERIA — Engee Manufacturing Limited, Nigeria’s leading manufacturer of Polyethylene Terephthalate (PET) resin used in packaging for soft drinks, bottled water and other household products has acquired a US$39m financing facility to build a Continuous Polymerisation PET Resin plant in Ogun state, Nigeria.

The financing package includes a US$24 million senior ‘A’ loan from IFC and a US$15 million subordinated loan from the International Development Association’s Private Sector Window Blended Finance Facility.

80 SEP/OCT 2020 | FOOD BUSINESS AFRICA

The new PET plant will enable Engee source more than 20 percent of its raw materials from local waste plastics, strengthening Nigeria’s recycling and manufacturing sectors, which could double the number of plastic bottles recycled in Nigeria through a process of collecting, cleaning, and processing up to 30,000 tons of used plastic bottles every year.

According to IFC, Nigeria has no efficient disposal, recycling and waste management system for its plastic and non-plastic waste, with most solid waste ending up in landfills, drainages, beaches and water bodies. The new plant is expected to be fully operational within the next 24 months.

“IFC’s financing for the first continuous polymerization plant in Nigeria will support our efforts to grow the country’s packaging for drinking water, beverages and pharmaceutical industries. This will be the second such plant anywhere in sub-Saharan Africa,” said Alexander Gendis, Managing Director, Engee Manufacturing Limited.

The global plastic recycling market was valued at US$ 41.73 bn in 2018 and is expected to grow at a CAGR of 6.6% during the forecast period from 2019 to 2027, according to a report by Research and Markets.

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