Gama News – October - December 2024

Page 1


Simón Fusté Sigma
Tricia McNeilly ötzibrew
Mark Napier Gulfood 2025
Federico Dellafiore IFE 2025

Editorial

CEO & Executive Editor

CEO & Executive Editor

Cesar Pereira

Cesar Pereira

When it comes to food industry megatrends like health and wellness, it can be easy to fall into the trap of thinking they apply universally. Not so – as our latest Insight by Gama Compass reveals. In the dairy category, indulgence is trumping healthy eating, as launches become increasingly geared towards pleasure on the one hand, and functionality on the other. Read the fully story on page 12.

As the year draws to a close, we also reflect on another successful edition of the Gama Innovation Conference & Awards (GICA) in Manchester, where delegates were once again inspired by a diverse range of expert speakers and ground-breaking innovations. Find out all about it, including our very worthy award winners, in our event review starting on page 15.

Elsewhere, we review the landmark 60-year anniversary of SIAL and look ahead to the start of the 2025 tradeshow season, with interviews from the organisers of ISM, Gulfood and IFE.

Enjoy our latest issue, and our very best wishes for the year ahead.

Peter House, Oxford Street, Manchester, M1 5AN United Kingdom

Company Number: GB 8773764

phone: +44 1618188700

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Gama News over the years

General Mills to sell North American yoghurt business

GENERAL MILLS TO SELL NORTH AMERICAN YOGHURT BUSINESS

USA: LACTALIS, SODIAAL IN $2.1 BILLION DEAL

US food giant General Mills has entered into an agreement to sell its North American yoghurt business to leading French dairy companies Lactalis and Sodiaal for $2.1 billion.

Lactalis will acquire the US division, while Sodiaal will acquire the Canadian division. The deal includes brands such as Yoplait, Liberte, Go-Gurt, Oui, Mountain High and Ratio, and production facilities in Murfreesboro (TN), Reed City (MI) and SaintHyacinthe, in Canada’s Quebec province.

Commenting on the move, General Mills chairman and chief executive officer Jeff Harmening said: “By efficiently managing our portfolio and sharpening our focus on our global platforms and local gem brands that have stronger growth prospects and more attractive margins, we will be in a better position to drive top-tier shareholder returns over the long term. In Lactalis and Sodiaal, we believe we’ve found the right homes for these businesses, with dairy-focused owners who are well equipped to drive success for our people and growth for these brands into the future”.

USA: PHILIP MORRIS INTERNATIONAL INVESTS IN KENTUCKY PLANT

Philip Morris International (PMI), the leading tobacco firm, has announced plans to invest

Lactalis Group chairman Emmanuel Besnier added: “With this acquisition, we are expanding our position in the US yogurt market. These iconic brands are a strategic fit for Lactalis that broaden the range of our consumers and allow us to become a key dairy player in the US”.

Sodiaal president Jean-Michel Javelle commented: “We are proud to have signed this agreement with General Mills to take over the activities of our Yoplait and Liberté brands in Canada. This project further confirms Yoplait’s return to the cooperative’s vision, a true national heritage brand that makes our farmers and employees proud”.

The transaction is expected to be closed in 2025, subject to customary closing conditions.

Source:

/

Image source: General Mills / Sodiaal / Lactalis (montage)

$232 million to expand production capacity for Zyn nicotine pouchesatitsOwensborofacility in Kentucky, creating 450 direct and 410 indirect jobs.

This investment will be made by PMI’s Swedish Match affiliates, following a $600 million investment in July to set up another nicotine pouch production facility in Aurora, Colorado. The Aurora facility and Kentucky expansion are intended to provide the capacity required to support the ongoing growthofZynintheUSA.

The expanded Kentucky facility will shift to a 24-hour, seven-

day-per-week schedule, up from its current five-day-perweek operation, aiming to produce around 900 million cans in2025.

Commenting on the investment, PMI’s US Business CEO Stacey Kennedy said: “We are accelerating our mission toward a smoke-free future, working with our U.S. affiliates to move adults away from cigarettes and other traditional tobacco products by providing better alternatives”.

“This investment in U.S. manufacturing capacity will increase the Kentucky plant’s

workforce by about 40 percent, providing good-paying jobs and helping to meet the increasing demand for smoke -free products”, she added.

The construction of the expanded facility is currently in progress and is expected to be completed by the second quarter of 2025.

Source / image source: Philip Morris International

By: Innovation Editor– North America

UAE: PURE ICE CREAM TO BUILD PRODUCTION FACILITY

Pure Ice Cream, a UAE-based ice cream manufacturer, has signed an agreement to build a new ice cream production facility at Dubai Industrial City via an AED80 million ($21.7 million) investment.

Pure Ice Cream is the owner of Kwality Global ice cream and the official Gulf Cooperation Council (GCC) licensee for Hershey’s and Reese’s ice cream, as well as producing private-label products for brands such as BaskinRobbins.

The facility will be equipped with both fully and semiautomated manufacturing systems, covering 160,000 sq ft on a 246,000 sq ft site. It will boost Pure Ice Cream’s annual production capacity by 300%, reaching 30 millionlitres.

Commenting on the move, Pure Ice Cream managing di-

rector Vikram Seth said: “Dubai Industrial City’s strategic location close to crucial transport networks, in addition to its world-class infrastructure and supportive ecosystem, make it an ideal choice to establish our new facility. This strategic positioning will allow us to capitalise on new business opportunities and manage larger productionvolumes efficiently”.

The new facility is expected to open in 2026 and create 300 newjobs.

Source: Pure Ice Cream / TECOMGroup

Image source: Pure Ice Cream

By: InnovationEditor – Middle East &Africa

USA: PRAIRIE FARMS DAIRY ACQUIRES SMITHFOODS

US based dairy firm Prairie Farms Dairy has announced the acquisition of domestic peer SmithFoods.

According to sources, the deal is part of Prairie Farms Dairy’s strategy to diversify its product portfolio and expand its market reach.

Ohio-based SmithFoods was founded in 1909 and produces dairy based products such as milk, sour cream, cottage cheese, icecreamandcustardmixes.

Matt McClelland, CEO and EVP of Prairie Farms Dairy, said: “We are excited to welcome [SmithFoods] employees to the Prairie Farms Family of compa-

nies, and we look forward to serving SmithFoods loyal customers with the same exceptional local dairy products and community support they have come to expect. The SmithFoods acquisition was an easy decision because the Orville facilities complement our network of dairy plants and expand our Ohio footprint”.

The acquisition took effect immediately with no disruption to SmithFoods’ operations. Financial terms of the deal were not disclosed.

Source: FoodBev /DairyNews

Today

Image source: Prairie Farms

Dairy

By: InnovationEditor – North America

USA: PEPSICO ANNOUNCES AGREEMENT TO BUY SIETE FOODS

FMCG giant PepsiCo has announced that the company has enteredintoadefinitiveagreement to acquire Garza Food Ventures LLC,tradingasSieteFoods,aMexican-Americanfoodscompany.

In a press release, PepsiCo said the $1.2 billion deal would complement the firm’s portfolio with an authentic Mexican-American brand as well as adding a variety ofbetter-for-youproducts.

Foundedin2014,SieteFoodsmanufactures “heritage-inspired” products including tortillas, salsas, seasonings, sauces, biscuits and

EDRINGTON TO DIVEST THE FAMOUS GROUSE AND NAKED MALT BRANDS

UK: BRANDS TO BE BOUGHT BY DOMESTIC PEER WILLIAM GRANT & SONS

Edrington, a UK-based spirits producer, has announced thatithasreachedanagreementtoselltheTheFamous Grouse and Naked Malt scotch whisky brands to William Grant & Sons, one of the world’s leading whisky producers,throughitssubsidiaryThe1887CompanyLimited.

Founded in 1887, William Grant & Sons offers whisky and spirits under brands such as Glenfiddich, Grant’s, The Balvenie, Tullamore D.E.W., Drambuie, Hendrick’s Gin, Sailor Jerry Rum, and Monkey Shoulder, operating across the USA, Europe, Africa and Asia.

Commenting on the move, Edrington CEO Scott McCroskie said: “This decision is driven by our strategy to focus on our core strengths and the growth opportunities in the ultra-premium spirits category. We consider this the right moment for Edrington to exit

snacks .Ramon Laguarta, chairman and CEO of PepsiCo, commented: “PepsiCo believes in the spirit and authenticity of the Siete brand, and we’re excited to carry on the legacy created by the Garza family. We look forward to expanding our multicultural portfolio with these incredible products and even more consumers discovering and enjoying Siete”.

Miguel Garza, CEO and cofounder of Siete Foods, added: “Siete was created ten years ago to make heritage-inspired, Mexican-American food more widely available. Now we’re excited to embrace a new era with PepsiCo and bring our inclusive, better-for-you products to morepeople”.

The transaction is subject to regulatory approval.

Source: PepsiCo

the blended Scotch category and focus on our core portfolio of ultra-premium spirit brands”.

A William Grant & Sons spokesperson added: “Having been around for over 125 years, The Famous Grouse has a rich history and would be a significant addition to our portfolio. The brand has potential for innovation and international growth in a number of markets, and we’re excited about what the future holds”.

The transaction is subject to customary regulatory approvals.

By: Innovation Editor – Europe

Source: Edrington / William Grant & Sons

Image source: Edrington / William Grant & Sons (montage)

Image source: PepsiCo /Siete Foods (montage)

By: InnovationEditor – North America

AUSTRALIA: THE ORIGINAL JUICE COMPANY,

PEERS ANNOUNCE MERGER

The Original Juice Company (OJC), an Australian-based business that sells chilled fruit and vegetable juices, has announced

plans to acquire SPC Global (SPC) and the powdered milk business Nature One Dairy to create a leading food and beveragecompany.

As part of the transaction, OJC will issue 133 million shares to SPC shareholders, while Nature One Dairy shareholders will get 29 million shares and up to A$6 million($4 million) incash.

Nature One Dairy is a Singapore registered, Australian-founded dairy company that manufactures and sells infant formula, nutritional formula and milk powder products.

Commenting on the move, SPC director Robert Iervasi said: “SPC Global is excited to be joining with OJC and Nature One Dairy and come to market with a leading food and beverage platform. With our market leading packaged fruit, canned

tomatoes, and baked bean products, we are excited to expand with OJC both domestically and globally and see significant synergy potential in bringing the two producers together”.

The Original Juice Company CEO Steven Cail added: “The strategy has always focused on setting up the business for future growth and synergies, and I am extremely excited about what the future holds for OJC. The OJC team is excited to join the 100-year legacy of SPC and contribute to taking the Combined Business forward in its next phase of success”.

The combined business is projected to generate over A$400 million ($269 million) in revenue and more than A$29 million ($19 million) in EBITDA in the 2025 financial year. The transaction is expected to be completed inNovember.

Source: SPC

Image source: Original Juice Company /SPC /NatureOne

Dairy

MERGERS & ACQUISITIONS

IN BRIEF

UK: KELLANOVA TO INVEST £75 MILLION TO EXPAND CEREAL PRODUCTION

Kellanova, the leading US cereal and snacks firm, has announced an investment of £75 million ($98 million) to expand productionatitsbreakfastcerealfacility inWrexham,NorthWales.

The Wrexham site, which opened in 1978, is Kellanova’s largest Special K plant globally. It also manufactures other brands, such as All Bran, Bran Flakes, and Fruit ‘n’ Fibre. Brands including Corn Flakes and Crunchy Nut will also transition to Wrexham once the Trafford Park factory in Greater Manchester closes inlate 2026.

Commenting on the move, Kellanova UK managing director Chris Silcock said: “This investment is a major commitment

GoodLife Foods, a manufacturer of frozen vegetables, has announced that it has entered into an agreement to acquire Pure Ingredients, a leading German manufacturer of halal frozen foods. Pure Ingredients offers branded and private label products and specialises in halal frozen snacks and meal components.

Source: GoodLife Foods

CTH Invest, a Belgian holding company associated with Ferrero, has announced the acquisition of Nonni’s Bakery from Vestar Capital

to cereal production in the UK. By bringing together the manufacturing of all our major breakfast cereals at one site in Wrexham, we can make significant leaps forward in the efficiency, quality and sustainability of ouroperation. It sets us up for future success and opens up new possibilities for our iconic brands to continue delighting our customers and consumers”.

Source: Food Business News

Image source: Kellanova

By: InnovationEditor – Europe

SAUDI ARABIA: ALMARAI ACQUIRES HAMMOUDEH FOOD INDUSTRIES

Partners, a leading US middle-market private equity firm. Founded in 1869, Nonni’s Bakery is described as a manufacturer of premium artisanal biscotti cookies and baked goods. Source: Ferrero / Vestar Capital

Italian food group Newlat has announced the acquisition of the entire share capital of Princes, the diversified UK food and drinks company. The acquisition, valued at £700 million ($896 million), encompasses all current operations and brands of Princes, which will function as a subsidiary under the newly formed New Princes Group. Source: Newlat / Princes Group

Saudi Arabia based dairy firm Almarai has announced the acquisition of Hammoudeh Food Industries, a Jordanian food and beverage business, for 263 millionSAR ($70.1 million).

Founded in the 1960s in Amman, Hammoudeh Food Industries serves as the food and beverage manufacturing division of the Hammoudeh conglomerate, which is also involved in agri-business and chemicals. The company offers a variety of products, including dairy, juices,poultry andeggs.

In a statement, Almarai said: “This acquisition strengthens Almarai’s position in Jordan and aligns with the company’s broader growth strategy announced earlier this year to maintain sustainable growth in core markets and geographies. By acquiring Hammoudeh Food Industries, Almarai will enhance itsabilitytobetterservecustomers in the region, expand its operations and product range and leverage operational scale in Jordan to drive both sales growthandprofitability”.

The acquisition, which is being carried through Almarai subsidiary Teeba Investment for Developed Food Processing Company, is subject to customary regulatory approvals.

Source: Just Food /Saudi Exchange

Image source: Almarai / Hammoudeh

By: Innovation Editor– Middle East &Africa

Natra, a vertically-integrated cocoa and chocolate manufacturer, has announced the acquisition of Gudrun, a Belgian chocolate and truffle producer, from Down2EarthCapital.

Founded in 1942, Gudrun is a manufacturer of premium chocolates for international retailers in multiple markets. It has a manufacturing base in Lier, Belgium, and a distribution centre in Poland.

Commenting on the move, Natra CEO Armando Santacesaria said: “Gudrun is a fantastic business and this highly complementary strategic combination will significantly enhance Natra’s premium Belgian chocolate offering, while also allowing Gudrun to capitalise on Natra’s global reach and deep customer relationships. We look forward to welcoming our new Gudrun colleagues on board once the deal completes and working with them to build on their successes to date to drive further innovation and growth”.

Gudrun CEO Sofie de Lathouwer added: “Joining Natra marks the beginning of an exciting new chapter for Gudrun, which will allow us to bring our quality Belgian chocolates to more customers around the world. Natra shares our strong focus on premium quality, innovation and sustainability. We are excited about this opportunity and look forward to working with our new colleagues to expand our presence and positioning as a highly valued partner, developer and manufacturer of Belgian chocolates”.

Terms of the transaction were not disclosed.

Source: Natra (via BusinessWire)

Image source: Natra /Gudrun (montage)

By: InnovationEditor – Europe

AUSTRALIA: NISSIN FOODS ACQUIRES DUMPLING MAKER ABC PASTRY

Nissin Foods, an instant noodle manufacturer, has announced that it has entered into a purchase agreement to acquire 100% of the shares of Australian frozen dumpling manufacturer ABC Pastry for A$33.7 million ($23.12million).

Founded in 1998, ABC Pastry is a leading manufacturer of frozen dumplings in Australia, offering products under its own brand as well as various thirdparty brands.

Commenting on the acquisition, Nissin Foods executive director, chairman and chief executive officer Kiyotaka Ando said: “The acquisition of ABC Pastry marks another milestone in our overseas market plan, soon after the joining of the Korean snack manufacturer Gaemi Food to the Nissin family in June. This latest acquisition will allow us to diversify our product offerings and distribution channels and aligns with our long-term corporate vision and strategy of strengthening our market presence in key overseas markets”.

“By leveraging ABC Pastry’s extensive local network and premium frozen products, Nissin Foods is well-positioned to enhance our connection with the local community and Australian

BELGIUM: NATRA ACQUIRES GUDRUN GROUP

INDUSTRY INSIGHT

How is the Snackin’ For You range geared to meeting consumer needs?

We have a number of basic pillars: first of all, what you see is what you get. So all our products contain up to seven ingredients, and no more. We avoid additives and ultra-processed foods. Secondly, everything is baked not fried in order to limit saturated fats and improve the nutritional profile. And thirdly, we want to be an inclusive brand with a broad spectrum of alternatives: all our products are free from gluten, added sugar and sweeteners, and we've got vegan, vegetarian, and halal options as well.

How should snack brands approach the challenge of developing products that are both healthy and indulgent?

What we've seen is that the snacking industry is built basically on indulgent snacks, but that there's a trend going towards health. The industry has not really understood properly how to drive consumers from indulgence to health, because the moment you diminish indulgence and increase health, they don't follow you: you've jumped too far. But there's a ‘sweet spot’ there for snacks that are not only indulgent and tasty but also nourishing. And this is exactly why Sigma has decided to create a startup (Snackin’ For You) focused solely on creating snacks that meet that sweet spot.

How does Sigma understand different consumer segments when it comes to snacks?

SIMÓN FUSTÉ

Gama spoke to Simón Fusté,

European Snacking Director, Sigma

" The moment you diminish indulgence, consumers don't follow you "

We divide snack consumers into five groups when it comes to the importance they place on indulgence versus health: with “Surrender To Pleasure” and “Super Fit” at either extreme, and “Pretender”, “Trader” and “Health Seeker” in the middle – although the reality is that a consumer can switch from one group to another depending on the occasion. What we find is that the majority of products in the marketplace target the “Surrender To Pleasure” consumer. But what about the other consumer groups? 53% of the UK population actually fits into the “Pretender”, “Trader” and “Health Seeker” segments, but the product offer catering to these segments is very limited.

What are the key factors in building a successful snack range?

First of all, remember, snacking is about taste and pleasure: if you diminish taste and pleasure, you're not going to find your consumers, so give ‘permission to indulge’. Next, when it comes to innovation, think broadly and without limits, because classical and traditional products are al-

ready available: consider reinventing existing traditional foods to be more snackable and convenient. Convenience, of course, is still one of the main trends, as it has been for the last 25 years, so think how you can take this forward. At the same time, be patient, as niche products sometimes take time to achieve success. Target the right consumers and connect to key growth trends. And finally, get your product on the right shelf: this may seem evident, but it’s not always straightforward, especially if you are a multi-category brand.

" Over half the UK population fits into the 'Pretender', 'Trader' and 'Health Seeker' segments, but the product offer catering to these segments is very limited "

consumers”, he added. “We believe that the acquisition will reap significant operational and financial synergies through the integration of its business with ours, ultimately delivering increasedvaluetoshareholders”.

Source: NissinFoods /ABC Pastry

Image source: NissinFoods / ABC Pastry (montage

By: InnovationEditor – Asia Pacific

NIGERIA: COCA-COLA TO INVEST $1 BILLION IN VALUE CHAIN

Cola, in cooperation with its Nigeria bottling partners, has announced an investment of $1 billion to expand its investments in the country over the next five years.

Coca-Colasaiditintendedtodouble its investment rate to support various areas of the value chain, including suppliers, distributors, retailersandrecyclers.

The new money comes on top of $1.5billionCoca-Cola Hellenic Bottling Company (Coca-Cola HBC), known locally as Nigerian Bottling Company, has invested inNigeria inthe last tenyears.

Commenting on the move, Coca-Cola president and chief financial officer John Murphy said: “The investment highlights our system’s efforts to drive scalable initiatives while also preserving the value of local relevance. Coca-Cola has been an integral part of the African continent for over 96 years and today’s investment in Nigeria reiterates our optimism about the continent”.

Coca-Cola HBC chief executive officer Zoran Bogdanovic added: “The Coca-Cola System has been part of Nigerian communities for over 70 years and believes in the strength and continued potential of the market. We are excited to announce this investment, which demonstrates our dedication to fostering economic growth and creating job opportunities in the country”.

Coca-Cola employs 2,800 staff across eight production facilities inNigeria.

Source: Coca-Cola /Coca-Cola HBC

Image source: Coca-Cola

By: InnovationEditor – Middle East &Africa

USA: CK SNACKS ACQUIRES AXIUM FOODS

CK Snacks, a manufacturer of ownbrandsavourysnackfoods, has announced the acquisition of its domestic peer Axium Foods.

Founded in 1960, Axium Foods specialises in producing tortilla chips, corn chips, extruded snacks, and pellet snacks for private labelbrands.

Commenting on the move, CK Snacks CEO Jamie Colbourne said: “We are thrilled to welcome Axium Foods into the CK Snacks family. Axium Foods’ expertise in tortilla chip and snack productionwill complement our existing product lines, enabling

us to offer an even broader range of snacks. This acquisition marks a pivotal moment in our growth strategy, and we look forward to working together to deliver innovative, high-quality productstoourcustomers”.

An Axium Foods spokesperson: “We are excited to see Axium Foods continue alongside another long-standing, familyfounded business. CK Snacks shares our dedication to quality, innovation, and customer service, and we are confident the combined company will build onour legacy”.

Financial terms of the acquisitionwere not disclosed.

Source: CK Snacks (via Globe NewsWire)

Image source: CK Snacks By: InnovationEditor – North America

INSIGHT BY GAMA COMPASS

DAIRY TURNING AWAY FROM LOW FAT CLAIMS, FORMULATIONS

Low fat claims and formulations have been declining in new dairy products over recent years, the latest insights from Gama Compass can reveal, highlighting that the trend towards ‘better-for-you’ options in food and drinks, although undoubtedly significant, is far from universal or one-dimensional.

While ‘health’ continues to grab the headlines as a food and drink industry megatrend, more detailed analysis of product innovation at the categorylevel reveals a far more complex picture, and occasionally surprising countertrends. One such example is the downward track of ‘low fat’ claims

in dairy foods such as yoghurt, butter, milk, cheese and dairy alternatives: only 6% of dairy food launches reported on Gama Compass between 2022-24 flagged ‘low fat’ benefits, well down on the 11% recorded in 2016-18, and 10% as recently as 2019-2021. Closer inspection of the data reveals

" ‘Low fat’ is no longer a key consumer driver: perhaps because it too ‘middling’ for consumers who prioritise health, and too sacrificial for those who value indulgence "

that this evolution is not happening in isolation: indeed, as dairy moves away from traditional ‘dieting’ claim such as ‘low fat’, it is simultaneously undergoing a shift towards other concepts, in particular plant-based, high proteinandindulgentformulations.

The marked change being witnessed in dairy formulations and marketing serves as a timely reminder that key industry megatrends, such as an accentuated focus on physical and mental health – often dubbed the ‘food as medicine’ trend – are not always distributed evenly at the category level, and that consumer demands or perceptions of a particular cate-

'Low fat' claims in new launches in selected food & drink categories, 2013/14 2023/24

gory can see such overarching concerns trumped by other needs or preferences. In the case of dairy, then, ‘low fat’ is no longer a key consumer driver: perhaps either because it is viewed as too ‘middling’ by consumers who prioritise health and functionality, or too sacrificial by those who value taste and indulgence above all other considerations.

Interestingly a similar pattern, albeit once that is less pronounced over the long term, can also be seen in the related category of ice cream and desserts, where low fat claims have declined from 9% in the 201921 period to just 5% in 2022-24, suggesting treating or comfort eating is re-emerging as a central demand here too. But this is by no means an industry-wide phenomenon, and notably ‘low fat’ claims have remained largely flat in some other major food and drink categories (such as snacks), and even increased in some others – most notably in dairy & dairy alternative drinks and drink concentrates. This provides further evidence of the fallacy of a ‘one size fits all’ approach to consumer goods innovation, with product concepts and positioning that may be successful in certain categories proving less appealing in others, even those that are apparently adjacent.

Interestingly, while ‘low fat’ claims also declined across the food and drink industry as a whole between 2013-14 and 2023-24(evenifthefallwaslessprecipitous than in dairy), the prevalence of associated claims such as ‘no fat’ and ‘low saturated fat’ has remained largely unchanged.Evenindairy, ‘nofat’ claims declined by less than two percentage points between 2016-18 and 2022-24 (from 7.2% to 5.4% of launches), further underlining the sense of an increased

The

proportion

polarisation between sharply dietconscious, ‘guilt-free’ positioning on the onehand,andindulgentpositioningon theother.

" Taste and quality-oriented claims such as ‘real’, ‘pure’, ‘fresh’, ‘locally sourced’ and ‘premium’ are all higher in dairy launches as a whole than in those positioned as ‘low fat’ "

The subtle shift in dairy positioning is also borne out by the language being used to describe product launches, with the proportion of launches touted as “indulgent”, “rich”, “creamy” or “tempting” increasing from 19% in 2013-15 to 27% in 2022-24. This is backed up by the fact that taste and quality-oriented claims such as ‘real’, ‘pure’, ‘fresh’, ‘locally sourced’ and ‘premium’ are all higher in dairy launches as a whole than in those positioned as ‘low fat’. In Australia, for instance, Lion’s Dairy Farmers Thick & Creamy Layered Yoghurt with Australian Berries is promoted as "thick & creamy yoghurt made from pure, quality milk farmed in Victoria", while, in the UK, Ehrmann’s Trewithen Greek Style Yoghurt is flagged as "thick, rich and creamy with a distinctively luxurious taste, made with Cornish milk". Further emphasising the broad shift to indulgence within yoghurt is General Mills’ Haagen-Dazs Cultured Creme

of dairy launches touted as “indulgent”, "rich”, “creamy” or “tempting” is increasing

INSIGHT BY GAMA COMPASS

DAIRY TURNING AWAY FROM LOW FAT CLAIMS, FORMULATIONS

Dessert in the US, which claimed to “bring luxury to the yogurt aisle” with a “superbly rich and creamy taste”, fresh milk and cream, and “real fruit”, as well as a “slow crafted fermentationprocess”

This readjustment in the dairy category is not just a matter of marketing: formulations are changing too, with lower-fat launches also becoming less prevalent than before (although not to the extent that ‘low fat’ claims are). The proportion of launches containing less than 2.5g of fat per 100g, for instance, declined steadily from 33% in 201315 to just 28% in 2022-24, while those containing less than 10g of fat per 100g were also lower in 2022 -24 than in any of the preceding periods – down to 63% from 72% in 2019-2021. Meanwhile launches in the 20-40g fat bracket accounted for more than a fifth of launches in 2022-24, higher than in any of the preceding three time periods.

A further explanation for the lower prevalence of ‘low fat dairy’, in terms of both marketing and formulation, is the rise of plant-based, dairy-free and vegan options, all of

which are far less likely to boast low fat benefits than traditional dairy products. One reason for this is the emergence of coconut – which is naturally high in fat – as a popular dairy alternative (7.5% of dairy launches touted use of coconut in 2019-21 – more than twice as many as in 2013-15). Almost by default, then, coconut-based dairy alternatives are more likely to be positioned as indulgent than healthy: Cocos Organic Creamy Spread, for instance, which is claimed to be made with 92% coconut milk, is advertised as having a "smooth creamy texture" and is also claimed to be "delicious whipped into a creamy icing".

" While ‘food as medicine’ continues to be an important megatrend, the subtle changes the dairy category has undergone over the last 11 years reaffirm the importance of understanding the impact of such trends at the category level "

All other considerations aside, the decline in low fat claims within dairy is nonetheless counterintuitive given another trend occurring in parallel: a significant increase in other health and functional claims. High protein claims (which in fact correlate strongly with low fat claims) in dairy nearly tripled between 2013-15 and 202224, while ‘free from’ claims like ‘no gluten’ and ‘no lactose’ also increased significantly over the 11year span. Unlike high-protein launches, however, new dairy products with ‘free from’ claims are no more likely to be positioned as ‘low fat’ than launches as a whole.

While ‘food as medicine’ continues to be an important and developing megatrend, the subtle changes the dairy category has undergone over the last 11 years reaffirm the importance of understanding the impact of such trends at the category level. The reorienting of dairy away from generic ‘low fat’ claims to more targeted functional and ‘free from’ positioning on the one hand, and indulgence positioning on the other, is a classic case in point: and being alive to such complexities is now indispensableforsuppliersandretailers if they are to ensure product portfolios evolve to remain in lockstep with the exacting and changing demands oftheirtargetconsumer.

Source: Gama Compass Image source: Nestle / Lion/ Ehrmann / Cocos Organic

For more information about Gama Compass, please contact us at info@gamaconsumer.com

Dairy alternatives are far less likely to boast low fat benefits than traditional dairy products

USA: DANONE PROPOSES FULL ACQUISITION OF LIFEWAY FOODS

FMCG giant Danone has made a non-binding offer to acquire Lifeway Foods, a manufacturer of kefir and probiotic products, for $283 million($25 per share). Lifeway Foods is a leading provider of kefir drinks and desserts, with distribution in the United States, Mexico, Ireland, SouthAfrica and France.

Danone, which already holds 23.4% of Lifeway’s common stock, said the proposal aligned with its wider strategy to enhance its portfolio within the health-focused dairy segment.

In a letter addressed to Lifeway’s CEO Julie Smolyansky, Danone North America president and chief executive officer

MANUFACTURE & DISTRIBUTION

IN BRIEF

Shane Grant said: “In recognizing the solid performance of the company over the last few years, we believe Lifeway has an attractive opportunity to achieve its full potential through a combination with Danone, removing the constraints and additional resources required for a publicly listed company of Lifeway’s size. We are confident that Danone’s operations and dedicated resources would unlock significant opportunities and value for Lifeway, notably by providing further innovation, distribution andmarketingsupport”.

Source: Lifeway /FoodBev / Dairy Industries

Image source: Danone / Lifeway (montage)

InnovationEditor – North America

USA: DIAGEO ACQUIRES 100% OF RITUAL ZERO PROOF

Diageo,theleadingalcoholicdrinks firm, has announced the acquisition of spirit alternative business Ritual Zero Proof to strengthen its non-alcoholicspiritsportfolio.

Multinational bakery firm Grupo Bimbo has announced the closure of a manufacturing facility located in San Cristobal, in the Spanish city of Valladolid According to sources, the factory manufactures cakes for brands such as Donuts, Bollycao, Donettes and Tigreton. A second factory in nearby Medina del Campo is unaffected. Source: Grande Consumo / Cronista / Grupo Bimbo

Ricola, a leading manufacturer of cough drops, has announced plans to acquire a manufacturing plant in Lenzburg from Swiss-based baby

Launched in 2019, Ritual Zero Proof is a non-alcoholic spirit brandofferingalternativestowhiskey,tequila,gin,rum,andaperitifs.

Diageo acquired a minority stake in Ritual Zero Proof via its accelerator Distill Ventures in January 2020.

In a statement, Diageo argued it was well positioned to build on Ritual’s already strong positionvia its leading market share position in the three largest non-alc markets globally, as well as its ownership of three of the five largest non-alc brands globally by value.

Commenting on the move, Diageo North America CEO Sally Grimes said: “Ritual Zero Proof is the number one brand in the fastest growing adult beverage category, and meets growing consumer demand for a flavorful and sophisticated, yet accessible spirits alternative. We are delighted to welcome it into

food, snack bar and spreads company Hero to overcome existing constraints and expand its production infrastructure. Ricola will acquire the entire plant because of similarities in production technologies . Source: Hero Group

WK Kellogg, the US breakfast cereal manufacturer, has announced plans to modernize its supply chain with a $450 to $500 million investment and the closure of a manufacturing plant in Omaha (NE) in 2026. The company intends to invest in new infrastructure, equipment, technology, and capabilities at its facilities in Battle Creek (MI) and Lancaster (PA), as well as Bellville, Canada. Source: WK Kellogg

our broader portfolio, where it will beautifully complement both our non-alc offerings, as well as those with alcohol, and servetopresentconsumerswith evenmorechoiceandvariety”

Ritual Zero Proof Co-Founder Marcus Sakey added: “This acquisition is proof of the mainstream potential of the category, and our shared ambition to make sure a non-alc cocktail is available on every menu and on every grocery and liquor store shelf, providing sophisticated choices to today’s consumer”.

Source / image source: Diageo

UK: NESTLE INVESTS IN PURINA PET FOOD PLANT

FMCG giant Nestle has recently announced that the company is investing £150 million ($199 million) to upgrade its Nestle Purina petfoodfactoryinWisbech,UK.

In a press release, the company said it had been investing in its Purina factories worldwide in response to rising pet food sales , noting the category accounted for 20% of the company’s total sales in 2023, up from just 12% a decade ago.

The investment will be used to install new technology and machinery on existing lines, improving facilities for the factory’s 600 employees, and also to improve efficiency and reduce carbon emissions. Investment in skills is also said to be included in the program.

The facility produces goods under well-known brands such as

Feliz, Gourmet and Winalot. The improvements are expected to be finalised by early 2025.

Source / image source: Nestle By: InnovationEditor – Europe

USA: FLORA FOOD GROUP ACQUIRES FACILITY IN KANSAS

Global food manufacturer Flora Food Group (formerly Upfield) has announced the acquisition of a factory in Hugoton, in the US stateof Kansas.

In a press release, the company said the facility would become a hub for the group’s cream and cream cheese products in the US and Canada and the rest of Americas, whilst the New Century facility, also in Kansas, would be a hub for butter and spread products.

The company said the addition of the Hugoton plant was in line with its ambition to expand inthe creams category.

Jim Breach, president of Flora Food Group’s North American business, commented: “With the acquisition of this new facility, we are thrilled to have a unique opportunity to expand our creams business. Building on the existing, state-of-the-art infrastructure and trained workforce residing in the local community, we look forward to bringing more folks into the Flora Food Group family as well as continuing to produce our kitchen and pantry staple items here inAmerica’s heartland and across our broader Americas region”.

Source: Flora Food Group (via BusinessWire)

Image source: FloraFood Group By: InnovationEditor – North

SWEDEN: LANTMANNEN TO INVEST IN PLANT-BASED FOODS

Lantmannen, a Swedish agricultural cooperative and food manufacturer, has announced an investment of 1.2 billion SEK ($116.4 million) in a new facility in Lidkoping for the manufacture of plant-based proteins.

Thenewfacilitywillprocess35,000 tonnesofpeasand5,000tonnesof faba beans (broad beans) into 7,000 tonnes of concentrated plant-basedprotein,alsoknownas proteinisolate,annually.

Commenting onthe news, Magnus Kagevik, group president and CEO of Lantmannen, said: “We need to produce more food to supply the world’s growing population, and there is a global and long-term increasing demand for plant-based proteins asafoodingredient”.

Lantmannen Biorefineries head of the energy division Lars-Gunnar Edh added: “Lantmännen Biorefineries already produces wheat and oatproteininourfacilitiesinNorrköpingandKimstad,andnowweare taking another step by also using legumes as a protein raw material. We see a steadily increasing demand for plant-based proteins and together with our members, active Swedishfarmers,wanttobealeaderinthisdevelopmentandproduction.Itisalong-terminvestmentfor Swedish agriculture and Swedish foodproduction”.

The plant is expected to be completed in the first half of

Retail Roundup

UK

ALDI ANNOUNCES £800 MILLION INVESTMENT

GermanretailgiantAldihasannouncedaninvestmentof£800million($1billion)toexpanditspresenceintheUK.

In a press release, the retailer described the sum as its “largest ever package of annual investment and said it planned toopen23newstoresbeforetheendoftheyear,includingMuswellHillinLondonandMereGreeninBirmingham.

The company is alsoplanning to refurbish 100 stores, expand its network ofdistribution centres and update technology infrastructure.

Giles Hurley, chief executive officer for Aldi UK and Ireland, commented:“British shoppers are voting with their feet and choosingAldiastheirfirst-choicesupermarket.We’rerespondingwithourbiggesteverannualinvestmentinBritain”. Aldicurrentlyoperates1,000storesintheUKbuthaspreviouslyannouncedanaspirationtoincreasethatto1,500.

Source / image source: Aldi

INDIA CARREFOUR FORMS PARTNERSHIP TO OPEN GROCERY STORES

French retailer Carrefour has teamed up with UAE-based retail firm Apparel Group to open retail stores on the Indian market, according to a Business Standard report.

Carrefour has formed the strategic franchise partnership in order to open hypermarkets, supermarkets and gourmet stores across India, with sizes ranging from 8,000 to 30,000 sq ft.

Although a nationwide expansion is envisioned, the retailer will enter North India in a first stage, planning to open its first store in 2025 in the National Capital region. The format of this store is still to be disclosed.

Carrefour previously entered India in 2010 with cash-and-carry outlets but exited in 2014 due to restrictions on foreign direct investment in multi-brand retail, Business Standard notes.

Source: Business Standard Image source: Carrefour

UK

WAITROSE TO OPEN 100 CONVENIENCE STORES IN NEXT FIVE YEARS

Supermarket chain Waitrose, a subsidiary of the John Lewis Partnership, has announced plans to invest £1 billion ($1.31 billion) over the next five years to open 100 convenience stores and refurbish 150 existing outlets.

The store upgrades will feature revamped service counters and expanded space for on-demand grocery orders, as well as branded concessions such as Crosstown doughnuts and Sushi Daily.

Commenting on the move, Waitrose executive director James Bailey said: “Waitrose will always offer fantastic food, but the groundwork we have undertaken behind the scenes in recent years means we can now focus on growth through new shops and ensuring our existing ones are providing great shopping experiences that match the quality of our products”.

Waitrose expects to open its first new store in six years in Hampton Hill, London, later this year

Source : John Lewis Partnership / FoodBev Image source: John Lewis Partnership

TRADESHOW INSIGHT

The landmark 2024 edition of SIAL, the self-styled “mustattend” biennial event for the food industry, reinforced the show’s central place in the European consumer goods calendar, building on a 60 year run that was marked in both celebratory and contemplative fashion.

As the organizers themselves acknowledged, attending SIAL on its 60th anniversary offered visitors a unique opportunity to reflect on six decades of innovation and change in food, but perhaps more importantly, a chance to consider how the industry would continue being reshaped in the years to come. Answering this call in particular was SIAL Summits – a conference programme that was the show’s main new feature for 2024 –bringing together 50 renowned speakers from a diversity of disciplines including business, re-

SIAL 2024

Paris, France

search and anthropology. And with subjects such as corporate social responsibility (CSR), deep tech and artificial intelligence (AI) on the programme, the subject matter remained very much future focused. The overall theme of the show was “Own The Change”, encouraging “collective ownership of change to meet the world’s food challenges”.

Future-gazing aside, SIAL’s main selling point once again proved to be heft, with some 285,000 visitors absorbed into the myriad pavilions of the Paris Nord Villepinte showgrounds, as attendance returned to pre-pandemic levels. Altogether 7,500 exhibitors from some 127 countries were on site to showcase their wares, with 650 of these classed as startups, and 150 of these exhibiting in the dedicated SIAL Startup zone. As ever, pavilions were otherwise split by product category, with dedicated halls for savoury foods, dairy products, confectionery and bakery, meat and drinks.

Out on the show floor, meeting the demand for health-oriented convenience foods emerged as the main preoccupation for the

companies exhibiting, with sugar free, high protein and plantbased products in abundance, even in surprising categories such as beer and bread. Sustainability was also on the agenda for many companies, exemplified by launches such as iced tea made with upcycled superfruit and olive oil in paper bottles.

A “festiveevening” and “spectacular show”, held on the second day of the show, allowed organizers and visitors alike to celebrate SIAL’s 60thanniversaryinstyle.

The next edition of SIAL is confirmed for 17th-21st October 2026.

Image source: Gama

Network Managing Director
Gama with Minister of Agriculture of Italy Francesco Lollobrigida
Gama with Secretary of State for Fisheries of Portugal Claudia Monteiro Aguiar

2027. The investment will reportedly generate around 30 newjobs.

Source: / image source: Lantmannen By: Innovation Editor–

BRAZIL: LACTALIS TO EXPAND OPERATIONS IN RIO GRANDE DO SUL

French based dairy major Lactalis has announced plans to invest R$100 million ($17 million) in 2025 to expand operations in Brazil’sRioGrandedoSulstate.

In a statement, the company said the investment would be split among its facilities in Teutonia, Tapera, Tres de Maio, Santa Rosaand Ijui.

In Santa Rosa, the firm plans to use the investment to expand production of processed cheese, while in Teutonia and Tres de Maio new production lines for whey and mozzarella will be added, respectively. Meanwhile, capacity for ‘prato’ cheese production will be expanded inIjui.

Lactalis claimed to have invested R$452 million ($81 million) in Rio Grande do Sul since its arrival in2015.

Source: Lactalis /State ofRio Grande doSul

Image source: Lactalis

By: Innovation Editor– Latin America

USA: HAIN CELESTIAL SELLS PARMCRISPS

Hain Celestial, the natural foods firm, has announced that it has completed the sale of its ParmCrisps brand to Our Home, aUS-basedsnackcompany.

Founded in 2017, ParmCrisps is known for its high-protein, lowcarbohydrate cheese crisps and snackmixes.

Commenting on the move, Hain Celestial group president and CEO Wendy Davidson said: “By divesting ParmCrisps, we can continue to prioritize driving marketreachandcategoryscale of our core better-for-you brands. This transaction further simplifies our better-for-you portfolio and streamlines our supply chain for operational efficiencyandmarginexpansion”.

Our Home founder and CEO Aaron Greenwald added: “We are very excited to have the ParmCrisps manufacturing family join our team. The combination of our Sonoma Creamery and ParmCrisps talent will drive tremendous IP and knowledge sharing, benefitting both brands, our retail partners and most importantly, our consumers”.

The divestment is part of Hain Celestial’s “Hain Reimagined” transformation plan, which will see the company refocus on core snack, children’s food, beverage, meal preparation and personal carebrands.

In May, Our Home also acquired the Sonoma Creamery cheese snackbrand.

Source: HainCelestial /Our Home

Image source: Our Home By: InnovationEditor – North America

IRELAND: VALEO FOODS TO ACQUIRE IDC HOLDING

Valeo Foods, the Irish food firm, has announced the acquisition of IDC Holding, an independent producer of wafers, biscuits, and confectionery in Central and Eastern Europe, for an undisclosed sum.

The acquisition is said to include the CandyPlus operation in the Czech Republic, the Balconi business in Italy, and the Schluckwerder business in Germany, which together employ around 1,150 staff. The company’s 2023 net sales were nearly €200million.

Commenting on the move, Valeo Foods Group chief executive officer Ronald Kers said: “This is a transformative acquisition for Valeo Foods Group. The inclusion of I.D.C. Holding within Valeo Foods Group will enhance our industry position, drive further growth in our portfolio and international footprint and allow us to meet growing consumer demand in this segment”.

I.D.C. Holding owner Pavol Jakubec added: “I am very excited to transition the business to Valeo Foods Group, who have a great track record of acquiring and successfully growing businesses in this space and are the best partner to work with our employees and

business partners to support I.D.C. Holding in further growth and expansion”.

The transaction is expected to be completed later in 2024, subject tocustomaryclosingconditions.

Source / image source: Valeo Foods

JAPAN: MEIJI TO REORGANIZE YOGHURT PRODUCTION

Meiji, the Japanese food and pharmaceutical firm, has announced plans to reorganise its productionnetworkbybuilding a new plant in Atsugi, Kanagawa and closing three of its existing yoghurt factories.

The new plant, covering 17,271 square metres, will be constructed with an investment of

NEW PRODUCT LAUNCHES

IN BRIEF

¥40 billion ($279 million). It will produce both plain yoghurt and yoghurt drinks and is projected to generate an annual production value of around ¥35 billion($248.5 million).

The Atsugi plant will replace existing facilities in the Miyagi town of Taiwa, the Kanagawa city of Chigasaki, and the Saitama city of Toda. The Taiwa plant is due to close in 2025, while the Chigasaki and the Toda plants are slated for closurein2027.

In a press release, the company said: “The dairy business faces various issues, including responding to the diversifying needs of customers, labor shortages in production and logistics, and food loss. The new Kanagawa Plant will adopt newproduction technology to extend useby dates. We will also optimize itsdemandandsupplysystem”.

USA: AMAZON LAUNCHES BUDGET PRIVATE LABEL BRAND

E-commerce giant Amazon has announced the launch of Amazon Saver, a new private label range of budget groceries for its US consumers.

Construction of the new plant is expected to start in 2025, and production is set to begin in March2027.

Source / image source: Meiji

Asia

US egg producer Cal-Maine Foods has announced it has made a strategic investment in Crepini, establishing a new egg and prepared foods joint venture. Crepini produces egg wraps, protein pancakes, crepes and wraps that are retailed in over 3,500 stores in the US and Mexico. The new venture will operate as Crepini Foods. Source: Cal-Maine Foods

US soft drinks multinational Coca-Cola has announced that the company is teaming up with Mondelez to launch a limited-edition

Amazon said it had already begun rolling out the new brand line, which includes items such as crackers, biscuits, canned fruit and condiments each priced at under $5, and planned to add more than 100 items over time.

Commenting on the launch, Amazon Fresh worldwide vice president Claire Peters said:

drink and biscuit in partnership with the Oreo brand. Set to hit stores in September, the new products are the latest launch from Coca-Cola Creations, which targets Gen-Z consumers through “unexpected flavours and experiences”.

Source: Coca-Cola

Arla, the Danish dairy cooperative, has announced it is expanding further beyond the confines of the dairy category with the launch of a non-animal spread under the Lurpak Plant Based brand. In a press release, Arla said Lurpak Plant Based was made with “simple” ingredients and was suitable for spreading, cooking or baking. Source: Arla

INNOVATION INSIGHT

PROTEIN CANDY SWEETS

CANADA

For our latest Innovation Insight, we return to the omnipresent trend for protein-forward product development, casting a glance at a launch seeking to turn sugar confectionery into a ‘high-fuel’ option – Protein Candy Sweets.

Newly launched to the market in North America, andmarketed with the taglines “snack strong, power up!” and “candy without compromise”, Protein Candy claims to be “on a mission to disrupt the candy industry” by creating a range of gummy sweets “with the flavors you love and the fuel you need”. Boasting 14g of protein and 6g of fibre but only 4g of sugar per 55g serving, Protein Candy Sweets opts for whey and collagen proteins as its primary ingredients, with monkfruit and stevia in place of table sugar, and an array of other “natural” ingredients including pre-biotic fibre and natural flavours and colours rounding off the formulation.

Whilean apparent firstforthe confectionery category, Protein Candy

" With the 'food as medicine' trend, almost any type of food is now viewed as ripe for conversion into a highprotein snack "

Sweets should be seen in the context of the wider ‘food as medicine’ trend helping to dispel traditional notions about what certain food and drinks should and should not be: indeed as Gama explored earlier in theyear, the notion of ‘food as fuel’ (especially via protein enhancement) is accelerating in consumer goods innovation as the boundaries between food and supplements become ever more blurred. As Protein Candy demonstrates, few categories are now immune to this trend, with almost any type of food viewed as ripe for conversion into a high-protein snack offering convenient, on-thego ‘power’, ‘fuel’ or ‘energy’.

Of particular interest is the role whey protein is playing in this transition: traditionally confined to the supplements category, whey protein is now being used widely and food and drink, including in more than 4% of ice cream & desserts and snacks launches, and as many as one in forty chocolate launches. Overall, the penetration of whey pro-

tein as an ingredient in food and drink has increased from just 0.9% in 2015 / 16 to 3.6% in 2023 / 24. Whey protein was also a key ingredient in Santa Helena Pacoquita Sport Peanut Candy, a 2021 launch from Brazil that was an early pioneer of ‘fitness’ trends in the sugar confectionery category.

With protein continuing to play such a prominent role across the full spectrum of food and drink, and within that whey protein emerging as a star ingredient to deliver protein benefits, the emergence of aspecific “protein confectionery” segment within the wider sweets category cannot be excluded. While the challenge of replacing sugar with high protein ingredients may be a barrier for some types of sweets, existing ‘better-for -you’ concepts in the confectionery space could serve as useful inspiration for brands keen to tap into the opportunities such an emergingsegmentmayprovide.

Image source: Protein Candy

INDUSTRY INSIGHT

What does it take to develop a successful FMCG brand?

I believe that when you're building a brand, that you really have to build it from passion, and you have to come from integrity.

You have to come from your heart when you're creating products, because when you go through the journey of being an entrepreneur, you go through so many different challenges.

If you're not coming from the right place, you could quite possibly fall off the cliff along the way. Then there is the importance of market research and being an early adopter: timing has been key in the launch of ötzibrew.

" You have to come from your heart when you're creating products, because you go through so many challenges "

What trends have you seen in the health and nutrition space over the last ten years?

Timing is everything with trends: 2013 saw the rise of turmeric as a superfood, while adaptogens started gaining ground in 2015,

TRICIA MCNEILLY

mushroom coffee became popular in 2016, and 2018 saw an explosion in plant-based diets. Then in 2020 we saw the immunity craze, followed by the mental health and wellness boom in 2021.

Where we are up to now is biohacking and personalised nutrition: being very targeted in what area of the body you want to go for, and also understanding that what you need might be very different depending on your stage of life. Since we're all individual, our bodies all have different needs – one size doesn’t fit all.

What lessons have you learnt on your entrepreneurship journey?

I certainly came across a number of challenges on the journey when I was just starting off: I was approached by a very big retail company who wanted to put ötzibrew in all their stores. Initially we had a great lead time, but ultimately we couldn’t keep up with the forecast demand. We learnt to be cautious about our forecasts, and also improved our production planning as a result.

You have to be careful when you're scaling and set realistic targets – start smaller and then grow, don't go big too quickly, and don’t run before you can walk.

What final advice would you offer would-be entrepreneurs in theFMCGspace?

Firstly, align to and stay true to your values. Secondly, it's so vital to validate the product first, and

" Set yourself realistic targets, do your market research, and walk before you can run "

fine tune it: make sure that you do not get over-enthusiastic to get the product to the market, as that's where mistakes are made.

Of course you're always at the mercy of copycats, but you should welcome them because they can’t step inside your shoes to know what your values are or appreciate your passion.

It's really a game of self-discovery and awareness, and that's why I absolutely love being an entrepreneur.

Set yourself realistic targets, do your market research, and walk before you can run – and there are so many beautiful moments on the way.

“We’re always looking to make grocery shopping easier, faster, and more affordable for our customers. With expanded Prime member savings, the introduction of the new Amazon Saver brand, and simplified online shopping, it’s now easier than ever to get your weekly grocery shopping done on a budget with Amazon Fresh whether you’re browsing the aisles orfilling your online cart”.

Source / image source: Amazon

Innovation Editor– North America

EGYPT: KELLANOVA TO SELL MAJORITY STAKE IN BISCO-MISR

MERGERS & ACQUISITIONS

IN BRIEF

Kellanova, the leading US cereal and snacks firm, has announced that it has reached an agreement to sell its majority stake in Egyptian biscuit producer BiscoMisr to Hayel Saeed Anam Group (HSA Group), a diversified businessconglomerate.

Founded in1957, Bisco Misr is the leading packaged biscuit company in Egypt, with manufacturing facilities in Cairo and Alexandria. ItsbrandsincludeBisco Tea,Nice, Maamoul, Marie, Bisco Wafers andSeasonalKahk.

Commenting on the move, Muneer Hayel Saeed, chairman of ARMA group and board member at HSA Group said: “We firmly believe that our agreement today will help open a remarkable growth for BiscoMisr, a highly valued and iconic brand in Egypt. Bisco-Misr’s deep-rooted legacy and reputation perfectly align with our vision. We are committed to continuing to grow our investments in Egypt and tapping into the immense potential of this market, contributing to its economic prosperity while continuing to deliver the highquality products that consumers loveand trust”.

The UK arm of Spanish food manufacturer Cerealto has announced the acquisition of Hill Biscuits from LDC, a private equity firm. Founded in 1855, Hill Biscuits is described as one of the largest and longest established biscuit manufacturers in the UK. LDC partnered with Hill Biscuits in 2017. investing in technology, efficiency and capacity. Source: LDC

Spanish food and beverage producer Angel Camacho has announced the acquisition of Macarico, a Portuguese firm that manufactures

Kellanova managing director for the Middle East, North Africa, Turkey and Sub-Saharan Africa Robert Chanmugam added: “This deal is a strategic step demonstrating the positive climate and potential for investments in the Egyptian market. Hayel Saeed Anam Group (HSA Group) is committed to innovation and excellence and have extensive expertise in biscuit manufacturing which makes them an ideal partner to drive the future growthofBisco-Misr”.

The transaction is expected to close in Q1 2025, subject to customary closing conditions.

Source: Zawya

Image source: Kellanova /HAS Group

By: InnovationEditor – Middle East &Africa

sauces and antipasti. In a press release, Angel Camacho said the deal was part of the firm’s “satisfied customer and consumer” plan, in which Portugal and Brazil are considered strategic markets. Source: Angel Camacho / Macarico

Treasury Wine Estates (TWE), the Australian wine giant, has announced plans to divest its commercial brand portfolio, including Wolf Blass, Lindeman’s, Yellowglen and Blossom Hill. The decision is part of TWE’s ongoing restructure prioritising the Premium Brands Division, which features wines priced between A$10 ($6.60) and A$30 ($19.80). Source: Drinks Retailing News / Just Drinks / Treasury Wine Estates

MARCH

Upc omin g Events JANUARY –

WINTER FANCY FOOD SHOW 2025

WHAT? Billed as "the first show of the year, and the first to unveil new trends", the Winter Fancy Food Show will once again act as the traditional curtainraiser for the 2025 tradeshow season. The Las Vegas Convention Center plays host.

WHERE? Las Vegas (NV), USA

WHEN? 19th to 21st January 2025

LISBON FOOD AFFAIR 2025

WHAT? The leading Portuguese food and drink tradeshow returns this February, catering to the foodservice and food technology industries as well as fast moving consumer goods.

WHERE? Lisbon, Portugal

WHEN? 10th to 12th February 2025

BIOFACH 2025

WHAT? Nuremberg, Germany will once again be the destination for the world's organics sector this February, as Biofach invites visitors to "experience organic food in it is purest firm". Around 2,500 exhibitors should set up stall.

WHERE? Nuremberg, Germany

WHEN? 11th to 14th February 2025

ISM 2025

WHERE?

Cologne, Germany

WHEN?

2nd to 5th February 2025

GAMA SPOKE TO SABINE SCHOMMER, DIRECTOR, ISM

What are your expectations for ISM 2025?

We’re incredibly excited about the upcoming ISM! With 1,500 exhibitors from 70 countries, it’s set to be an amazing showcase of innovation and creativity in the confectionery and snack industries. What really sets this year apart is the strengthened partnership with ProSweets Cologne through Sweet Week, which allows us to bring together and represent the entire value chain of the industry under one roof.

" Brands that can tell a compelling, honest story will stand out "

We’re also taking the trade fair experience to a whole new level with an incredible line-up of events and content. The Expert Stage and the Sweet Week –Talks & Tasting Stage will dive into the most important topics shaping the future of our indusdigitalisation, AI, sustainability, and so much more.

m especially excited about Lab5 by ISM, which is our dedicated innovation hub. It’s where the cutting edge of the industry comes to life, with start-ups, scale-ups, finest creations and established companies showcasing their latest products and trends in our special show area “New Product “. Whether it’s on-trend snacks, innovative confectionery, or completely new concepts, this

is the place to be for anyone looking for fresh ideas.

What trends do you expect to impact the confectionery, bakery, and snacks sectors in 2025?

We are seeing a shift in trends. First and foremost, sustainability is here to stay. Consumers are becoming much more conscious of their choices, so local sourcing, pure ingredients and reducing carbon footprint are going to be big priorities. Further, consumers are looking for products that are not only packaged sustainably but also made with eco-friendly, plant-based ingredients.

Another major trend is transparency. People want to know exactly where their food comes from and how it’s produced. It’s about trust, and brands that can tell a compelling, honest story will stand out.

Health is another ongoing trend: whether it’s high protein options such as bars with less sugar, salt and fat or nutrient-rich minimeals that are quick and convenient. The idea that snacks can also offer added health benefits or replace a meal is well received by today’s on-the-go consumers.

Of course, digitalisation and AI are transforming the way we do business. Artificial intelligence is playing a role in trend research, new product development, combating food waste, streamlining production processes and more. AI is becoming an indispensable tool. It’s not just about efficiency, but about creating smarter, more sustainable solutions in all areas.

GULFOOD 2025 WHERE?

Dubai, United Arab Emirates WHEN?

17th to 21st February 2025

GAMA SPOKE TO MARK NAPIER, VP – PORTFOLIO GROWTH FOOD & HOSPITALITY

What are your expectations for this edition of Gulfood?

Our 30th landmark edition is a significant milestone for us, and our loyal customers have been instrumental in building Gulfood into what it is today. We will honour the past, remain steadfast in our contributions and commitment to the global F&B sector and simultaneously look forward to the next frontier in food, collectively addressing the key trends, challenges and opportunities in the industry.

" The ongoing concern among global players is to sustainably transform food ecosystems to feed growing populations "

Gulfood 2025 marks the event’s 30th edition as the world’s biggest and premier food and beverage sourcing exhibition that propels valuable international trade partnerships, introduces the latest food innovations and informs key policies that guide global food commerce. Gulfood 2025 will host renowned chefs exhibiting their culinary skills and revealing imaginative new industry trends, and also see the launch of Food500 – a glob-

al CEO summit engaging the foremost visionary world leaders in thought-provoking discussions. What’s more, Gulfood will showcase hundreds of thousands of new products from 5,500 global exhibitors, across 24 halls of exhibition space. Our 30th edition is set to be even bigger, with 43% of exhibitors making their debut, showcasing exciting new products on the show floor, including first time exhibiting companies from Zambia, Mauritius and Madagascar.

What other key trends do you expect to shape food & drinks innovation in 2025?

The ongoing concern among global players is to sustainably transform food ecosystems to feed growing populations. World food production would need to increase substantially by 70% by 2050 to satisfytheexpecteddemand.

Consequently, the proliferation of artificial intelligence will continue to be of focus in optimising food systems and innovations including discovering new flavour profiles, enhancing traceability in food safety and more.

Moreover, evolving consumer preferences also mean that functional nutrition, precision wellness, less processed plant-based foods, sustainable production and reinventing tradition through modern fusionproductsaregainingtraction.

Gulfood 2025 will deep dive into these and many other international trends enabling unparalleled insights that influence global food and drink practices.

IFE 2025

GAMA SPOKE TO FEDERICO DELLAFIORE, EVENT MANAGER, MONTGOMERY EVENTS

What are your expectations for this edition of IFE?

WHERE?

London, UK

WHEN?

17th to 19th March 2025

We’re hugely looking forward to the 2025 edition of IFE! As always, the show will be packed with new-to-market products and inspiring opportunities to hear from leaders in food & drink. In addition to innovative brands from around the UK the show will also play host to producers from more than 45 countries including Greece, Italy, Vietnam, South Korea, Kenya, Poland and India.

This year’s event will see the return of the New Products Tasting Theatre, where visitors can hear from innovative food & drink brands as they demo and pitch live, and the ever-popular Startup Market, which is packed with exciting new-to-market companies and inspiring entrepreneurs.

" The cost-of-living crisis has prompted a rise in adventurous home cooking "

Amid ongoing cost-of-living pressures, how will food and drink brands be primed to succeed in 2025?

We’ve seen the cost-of-living crisis exert growing pressure on the hospitality sector, as consumers become more cautious about spending on dining out. Howev-

er, this has prompted a rise in adventurous home cooking, with consumers seeking quality ingredients to elevate their at-home meals. For producers to thrive, it’s essential to deliver value without sacrificing quality. Highlighting sustainability, telling a compelling brand story, and offering exceptional products will resonate with consumers who are increasingly health-conscious and environmentally aware.

" We’ll really start to see the impact of AI tools across the food system and supply chains in 2025 "

What other overarching trends do you expect to impact the UK food and drinks scene in 2025?

I think we’ll really start to see the impact of AI tools across the food system and supply chains in 2025, with huge potential for innovation in agriculture, nutrition, new product development, and much more. Consumers continue to be more and more adventurous and are passionately seeking out unfamiliar products and flavours. We’ve seen countless formerly niche international foods become supermarket staples over the past few years, such as kimchi, gochujang, miso, and harissa, and that trend seemly unlikely to slow down.

SOUTH AFRICA: NESTLE TO SELL CREMORA BUSINESS TO LACTALIS

Nestle, the Swiss consumer goods giant, has announced plans to sell its Cremora business to the South African subsidiary of French dairy giant Lactalis, as part of a strategic realignment of its operations.

Cremora is a creamer brand produced in Babelegi and Potchefstroom, South Africa, as well as in Harare, Zimbabwe. Lactalis will acquire both South African sites, while production of Cremora at Harare will cease, with the plant shifting to focus onNestleEveryday milkpowder and Nestle Cerevita instant cerealinstead.

Lactalis South Africa manufactures brands such as President, Parmalat, Melrose, Bonnita and Steri Stumpie. The company operates in the Western Cape, Gauteng, Eastern Cape, and KwaZulu-Natal, with a workforceof2,700.

Commenting onthe move, Nestle’s head of external communications Mota Mota said: “We believe that CREMORA is in good hands with Lactalis SA – a leading food company known for its expertise and commitment to excellence. This transition is in the best interests of our business, employees, customers, partners, and consum-

ers, ensuring that CREMORA continues to thrive and deliver quality products under new ownership”.

Lactalis South Africa general manager, Herman Janse van Rensburg added: “This move aligns with our strategy of innovation and diversification of our product offering to cater to local consumer preferences. Furthermore, we look forward to welcoming our new colleagues to the Lactalis SA family as we continue to build on the rich heritage of CREMORA together to ensure seamless continuity for customersand consumers”.

Source: Nestle

Image source: Nestle /Lactalis (montage)

SAUDI ARABIA: NESTLE TO CONSTRUCT $73 MILLION FOOD PLANT

Nestle, the Swiss consumer goods giant, has signed an agreement with Saudi Authority for Industrial Cities and Technology Zones (MODON) to construct a food manufacturing plant via a 270 million SAR ($72.9 million) investment.

The new plant will cover a site of 117,000 sq m in Jeddah and will fulfil local demand, as well as producing goods for export to other markets in the Middle EastandNorthAfrica(MENA).

Thefactorywillhaveanautomatedproductionlineequippedwith

contemporary packaging and filling technologies, alongside a central warehouse, an industrial services building, an advanced laboratory, and an administrative office, creating hundreds of jobs bothdirectlyandindirectly.

Commenting on the move, Nestle Saudi Arabia CEO Robert Helou said: “This factorywill serve as a blueprint for future investments in the region and is a testament to our commitment to supporting the Kingdom’s goals foreconomicdiversification”.

The new plant is scheduled to be operational by 2025 and will have initial production capacity of 15,000 tons annually.

Source: Nestle /Food Business Africa

Image source: Nestle By: InnovationEditor – Middle East &Africa

UK: HERO GROUP ACQUIRES DELICIOUSLY ELLA

Swiss-based baby food, snack bar and spreads firm Hero has announced the acquisition of British plant-based food brand Deliciously Ella for an undisclosed amount.

Founded in 2016, Deliciously Ella offerscrackers,snackbars, ready meals, biscuits, chocolate, dressings, spreads, pasta, kombucha and other products, available at leadinggroceryretailers.

Hero said the acquisition would allow it to strengthen its position in the UK snack market,

where it is already present with its Organix brand, specialising in organic foods and snacks for babies, toddlers and children.

Commenting on the move, Hero Group CEO Rob Versloot said: “Our multi-year strategy has focused on bringing brands that fit within our core categories with the aim of fulfilling our mission to bring natural, healthy food to consumers. Deliciously Ella is a perfect fit for us, and we are particularly happy to have them onboard”.

Deliciously Ella founders Ella Mills and Matthew Mills said: “Hero has brands all over the world and a proven track record in helping brands reach much greater scale. This is a transformational moment in bringing our natural, plantbased ranges to more people, bothintheUKandabroad”.

Source: Hero Group / Deliciously Ella

Image source: Hero Group

By: Innovation Editor–Europe

USA: CAMPBELL SOUP SELLS POP SECRET BUSINESS TO OUR HOME

Campbell Soup, a US producer of canned soups and other foods, has announced that it has sold its Pop Secret popcorn business to Our Home, a US-based snack company.

The existing Our Home portfolio includes brands such as Food Should Taste Good, Popchips, Real Food From The Ground Up, You Need Yhis, RW Garcia, Good Health and Sonoma Creamery.

The Pop Secret business generated net sales of approximately $120 million in fiscal 2024, Campbell Soupsaid.

Commenting on the move, Campbell’s Snacks executive vice president and president Chris Foley said: “This marks another step in our journey to strategically focus our Snacks portfolio. The sale of Pop Secret will drive greater focus and accelerated growth acrossourSnacks divisionand portfolioofleadingbrands”.

Our Home founder and CEO Aaron Greenwald, added: “Acquiring Pop Secret marks Our Home’s expansion into the microwave popcorn category, strengthening our status as a premier independent snacking platform. The brand’s significant MULO consumption and widespread household recognition, combined with our extensive manufacturing capabilities, create a unique platform for growth and innovationinthemarket”.

Terms of the transaction werenotdisclosed.

Source: Campbell Soup /Our Home

Image source: Campbell Soup /Our Home (montage)

By: InnovationEditor – North America

CEO & Executive Editor

Cesar Pereira

Editorial Director

Tom Warden

Production Editor

Vicente Boix

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Director

Antonio Coronado

Editors

Silvia Ruiz, Patricia Viana, Sergio Costa, Shally Gupta, Valentina Maini

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