Food EU 8

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SWISS ROLE www.nextgenerationfood.com

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Q1 2010

Nestlé’s part in the fight against global malnutrition P32

THE REAL THING Why sustainability is more than just a buzzword for Coca-Cola P82

WHITE Will plummeting milk prices spell doom for the European dairy industry? P38

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FROM THE EDITOR 5

Eat yourself well Food can be an agent of improved public health, if we approach the issue carefully.

W

e have long been told that we are what we eat. However, in recent years things have moved beyond just finishing your greens to a range of specially designed foodstuffs that boast very specific health benefits. The growing market for these functional foods is one of the food industry’s big success stories and is expected to be worth more than €62 billion worldwide by 2013.

It’s easy to see why there is so much consumer interest. We generally like eating, so it is understandable that we would be enthusiastic if our favourite foods could be fortified with some lifegiving but undetectable ingredient. It’s not quite the magical cream cake that helps you lose weight, but it’s not far off.

If these health-promoting functional foods can live up to the hype, their potential is tremendous.

Adding beneficial ingredients like Omega 3 or vitamin A to everyday staples like bread and milk could have a huge impact on human health across the world. Everybody has to eat, but sometimes, the

“We have a road map of which we have put in the centre the ambition to be a leading recognised nutrition health and wellness company” Nestlé CEO Paul Bulcke (Page 32)

most nutritious foods are the least appealing.

Functional foods promise a future where healthy eating is easy and we needn’t feel guilty for missing our ‘five a day’.

But as with any nascent development, great care must be taken to prevent things getting out of hand. The gold rush mentality as companies try and stake their claim to this lucrative new market carries with it great risks. It is vital that the industry’s claims remain rooted in solid science. No one wants to see the food business following the trail blazed by cosmetics, where companies frequently unveil new proprietary substances with technicalsounding names and poorly defined effects that are routinely debunked. Probiotics leader Danone has already been forced to retract some of the health claims attached to its products in the face of insufficient evidence. Tarnishing the reputation of functional foods by overstating their efficacy could have long-term implications, both for food producers and their customers.

Regulatory authorities have a responsibility on

“Our milk policy is working. The measures we have introduced are having an effect. Prices are now rising” European Agriculture Commissioner Mariann Fischer Boel (Page 38)

the other hand, to base their decisions on evidencewithout causing undue delays. The challenges of getting novel foods approved by European authorities are well-documented, with many substances that are in widespread use elsewhere in the world taking years to reach the market in the EU. While no one wants the regulators to approve ingredients without due care and attention, excessive caution and foot-dragging could put producers from the region at a major disadvantage to their international competitors.

Truly effective functional foods promise a great deal, both from a commercial and social perspective. It is essential that producers and industry regulators alike approach them in a way that maximises their possible benefits. n

Huw Thomas, Editor

“The vast majority of consumers say that during a recession, they are more loyal to brands that are perceived as socially responsible” Coca-Cola Company CEO Muhtar Kent (Page 82)

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CONTENTS 6

32

88 Sweet dreams Miracle natural ingredient or dangerous additive? NGF sinks its teeth into stevia

Taking responsibility NestlÊ CEO Paul Bulcke on the role the world’s biggest food company has to play in improving global health

38

82 Lasting refreshment Coca-Cola Company Chairman and Chief Executive Muhtar Kent explains why sustainability is vital for the drinks giant

In the balance The European dairy sector is on the edge after a dramatic slump in milk prices

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CONTENTS 8

ASK THE EXPERT

56

44 Colleen Zammer, Jungbunzlauer 66 Per Junesand, Revent 118 Dagmar Behmer, Bruker Optics 130 Luis Hernandez, Bühler

EXECUTIVE INTERVIEW 80 Colleen Flanagan, PetroCanada 86 Rainer Hiss, Sirius Technologies 100 Henrik Meyer, Novozymes 108 Victor Ferrari, Horphag Research 116 Tim Jenkins, Waters 120 Françoise de Goeijen, DSM 128 Jennifer Lewis, Certis Europe

NEXT BIG THING 60 Brian McCluskie, CFS

92 Alan Liao Jingjun of Guilin Layn Natural Ingredients Corp

76

96

46 The date debate Why date labelling may lead to the destruction of perfectly edible food

56 The total package Joachim Quoden explains the role of recycled packaging for a greener Europe

76 Inside story Can we rely on nutritional labelling to help us make healthier food choices?

96 The best remedy Jeya Henry outlines the role of functional foods in the future of nutrition

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CONTENTS 10 102 Fish tales

ROUNDTABLE DISCUSSION

A look at the latest Omega 3 health claims to be proven and dismissed

50 Packaging, with Dieter Bergner of Huhtamaki, Shiner International’s Tan Li and Keith Pearson of the World Packaging Organisation

110 Fighting the fakes The IAA’s Ian Lancaster explores the need for manufacturers to demonstrate the authenticity of their products

62 Conveyors, with Brian Harbison of Belt Technologies and Ray Tomsett of the Wire Belt Company

124 Business the intelligent way Ovum’s Helena Schwenk explains how BI can be employed as a recession busting tool

136 Preventative measures

92

The importance of preventing the outbreak of disease in animals

INDUSTRY INSIGHT 122 Doris Engesser-Sudlow, Dupont Qualicon 126 Ian Cox, JMP 132 Michael Binder, Evonik Degussa GmbH 134 Franz Waxenecker, Biomin

68 Checkweighers, with Ingolf Latz of OCS Checkweighers, Gunter Schilpp of METTLER TOLEDO, Bizerba’s Dieter Conzelmann and Steve Jones of Ishida Europe 92 Ingredients, with PROVA’s Muriel Acat-Vergnet and Alan Liao Jingjun of Guilin Layn Natural Ingredients Corp

104

104 Omega 3, with John Kurstjens of Lipid Nutrition and Espen Thomassen of TINE BA

IN THE BACK

110

144 138 Quote/unquote 140 Infographic 142 Comment 143 In review 144 Photo finish

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The Westin Campo Real, Lisbon, Portugal 29-31st March 2010

Chairman/Publisher SPENCER GREEN Director of Projects ADAM BURNS Editorial Director HARLAN DAVIS Worldwide Sales Director OLIVER SMART

Next Generation Pharmaceutical Europe Summit 2010 The NGP Summit is a three-day critical information gathering of the most influential and important CEOs from across Europe.

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UPFRONT

THE BRIEF

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CHOCOLATE’S DARK SECRETS

C

orporate choco- their own deadline, and also the late production subsequent three-year extension. has long been Growing consumer pressure linked to crimes on this front may help to explain such as the use chocolate maker Nestlé’s recent deof slaves and child labour in West cision to join the Fairtrade moveAfrica. The human rights advo- ment. The company announced cacy group CorpWatch noted in early December that the in 2005 that in Côte first certified Fairtrade d’Ivoire, where half of Kit Kat four-fi nger the world’s cocoa is bars will arrive in grown, “hundreds UK shops in midcountries are of thousands of January. The UK among the world’s children work or is Nestlé’s secondtop 26 chocolate consumers are enslaved on largest chocolate cocoa farms.” market after Brazil The world’s major and is by far the biggest chocolate companies agreed at consumer of Kit Kats. the time to a voluntary ‘cocoa protoAs a result of the Nestlé deal, col’ aimed at ending the worst forms farmers’ organisations in Côte of child labour, but then missed d’Ivoire will receive the Fairtrade

18 EU

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price (or market price if higher) for initially applies to UK sales of Kit their cocoa, as well as additional Kat’s four-finger bars, and that the premium payments to invest in premium represents less than one long-term community and busi- per cent of Kit Kat sales. Nestlé has ness development projects of their no immediate plans to switch to choice, such as education, health- Fairtrade chocolate for the brand care, the environment or their in any other markets. businesses.

Advocates for the fair In addition to treatment of farmers in labour standards, the developing world The EU consumes Fairtrade chocosay they won’t be lates are required satisfied until they to meet environsee a deeper transtons of chocolate mental standards formation of chocproducts per year that prohibit harmolate companies’ ful pesticides and business models.

GMOs, and many are Hidden ingredients also certified organic.

The seemingly innocuous surSome observers said the move did not go far enough, pointing face of chocolate hides a few other out that the Fairtrade mark only dark secrets. In 2001, the industry

2.5 million

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UPFRONT

THE BRIEF

was found to be using the pesticide lindane in African and other chocolate plantations. Lindane, a chemical linked to breast cancer, endocrine disruption and other health hazards, is banned in the EU. And then there is the practise of adding oil to chocolate. In 2007, an attempt to water down FDA standards prohibiting the addition of oil to any products officially labelled as chocolate was scuppered by a consumer backlash. And earlier this year, Cadbury was forced to stop substituting palm oil for cocoa butter in some of its chocolate recipes.

Now a method developed by the European Commission’s Joint Research Centre (JRC) to measure vegetable fats in milk chocolate has become the fi rst such method to be adopted as an international standard by the International Organisation for Standardisation (ISO).

The method was developed to enable the enforcement of the ‘Chocolate Directive’, which says that European chocolate must not contain more than five percent vegetable fats, other than cocoa butter.

The JRC had previously developed a similar test for dark chocolate.

When these fats are added to chocolate, European legislation requires that consumers be informed through appropriate labelling. The threshold of five percent is also an essential requirement for these products to move freely within the internal market.

Prior to the introduction of the JRC method, no validated methodology existed for determining vegetable fat percentage. Th is made it difficult to check whether manufacturers were accurately reporting the amount of vegetable fats in milk chocolate, because their chemical composition and physical properties closely resemble those of cocoa butter.

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15

NEWS IN PICTURES

NEWS IN PICTURES

Egyptian President Mubarak and Italian Premier Berlusconi at the Food and Agriculture Organization summit in Rome, November 2009

A customer shops at a Morrisons supermarket in Welling, London, November 2009.

Morrisons reported that a record 10.8 million customers had visited its stores in the three months to November

A confectioner carries a chocolate Santa Claus in Hornow, Germany, December 2009. The handmade figures cost between €3.50 and €185 each

US President Barack Obama participates in the traditional turkey pardoning ceremony at the White House, in celebration of the American Thanksgiving holiday

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UPFRONT

IN PROFILE

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TODD STITZER, CEO, CADBURY A naturalized British citizen, Todd Stitzer was born in the US and educated in New Jersey, Massachusetts before studying law at Harvard. He joined Lord Day & Lord in 1973 as an associate attorney and in 1983 joined Cadbury North America as Assistant General Counsel.

He made his move to London in 1991 as Group Development Director before returning to North America in 1993 as Vice-President of Marketing and Strategic Planning, and then

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moving up to Chief Operating Officer for Cadbury Beverages, North America.

Heading up a more specialised division, Stitzer became President and CEO of Dr Pepper/Seven Up from 1997 to 2000 and Chief Strategy Officer from 2000 to 2003.

He fi nally became CEO of Cadbury in 2003 following his appointment to the board in 2000. His business leadership and commerce experience gained in the company, as well as his legal experiences prior to Cadbury, make him well placed

to lead the organisation. His model has been to take strong local and regional brands and appeal to regional and local customers.

A move away from the traditional British leadership, Cadbury selected Stitzer to be the fi rst American to lead the British company. As it has become more global and international, Stitzer believes that whilst it is important to maintain the company’s heritage and tradition, it must bring in more culture and people from around the globe.

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UPFRONT

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ARLA PLANS NEW FACILITY

DON’T COMPROMISE PERFORMANCE Food grade (FG) lubricants are

superior resistance to steam and

integral

manufactur-

water washout is essential. During

ing. FG lubricants ensure a safe

cleaning and rinsing, grease can be

food supply and protect the food

removed, leading to poor lubrica-

manufacturer’s reputation. A high

tion and eventual bearing failure.

quality, specifically formulated FG

FG greases must also be nontoxic,

lubricant can impact the bottom

tasteless and low in odour so that

line, lowering maintenance cost

fi nal taste, appearance and smell

and extending equipment life.

are unaffected.

to

food

The NSF program categorises

Due to restrictions, some

FG lubricants. H1-approved lubri-

people believe that FG greases are

cants can be used in and around

inferior to non-FG greases. How-

food processing areas, where inci-

ever, technological improvements

dental food contact is possible. H2

now provide excellent FG greases.

can be used in food-related areas

Some are so good that they are

where no food contact is possible.

being used outside the food in-

For H1 approval, the ingredients

dustry. The selection of a lubricant

must comply with the US Code of

provider should not only be based

Federal Regulations (CFR), Title

on a complete portfolio of certified

21, Section 178.3570 and other

FG products, but also on the level

sections referenced therein. In-

of support provided in educational

gredients in H1 greases have been

programs, oil analysis, plant sur-

checked and chosen to reduce the

veys and product consolidation.

impact on food.

KERNITE’s K PLEX greases

The selection of an FG lu-

are NSF H1 registered food grade

bricant depends not only on

products with superior water

environmental conditions, load

re sistance that extend equipment

factors and temperature; the use of

life and reduce maintenance re-

a high-performing FG grease with

quirements.

FAST FACT The food and beverage manufacturing sector of the EU-27 generated

€188.2 billion of value in 2005.

Source: Eurostat Pocketbook, Food: from farm to fork statistics

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Arla Foods UK has confi rmed it is Approximately 500 producto invest in building a new one bil- tion, distribution and administralion litre liquid milk processing fation jobs will be created at the site. cility on the outskirts of London.

Commenting on the new facilThe announcement ity, Peter Lauritzen, CEO follows a previous of Arla Foods UK intention from said: “Arla is toArla Foods’ Danish parent tally committed planned new dairy company Arla to a long-term will have an annual capacity of Foods amba that sustainable it would make future in the UK significant further and the construcof milk investment in the tion of the new UK business as part dairy demonstrates of its UK growth strategy. that commitment. InAccording to the company, corporating the most sustainable the new facility, which will be opbuilding techniques the dairy erational in 2012, will be the largest will be the largest, most efficient and most technologically advanced and environmentally advanced in of its kind in the world, as well as the world.” being the most efficient milk processing facility with world-class environmental credentials.

1 billion kg

LACK OF CASH PREVENTS INNOVATION One in two food and beverage businesses cite a lack of cash as the main barrier to innovation, a survey of decision-makers has found. Of the 355 global food and beverage fi rms surveyed for a ‘Barometer Innovation’ study

by Salon Interntional de l’Alimentation (SIAL) 55 percent found that fi nancing innovation is the key challenge to new product design.

Food businesses overwhelmingly believe that they must innovate in order to add value and differentiate themselves from the competition. The SIAL report claims that 98 percent of food and

beverage firms believe a company is more successful when it innovates, with 94 percent of companies questioned – including producers, processors and retailers – claiming that now is the right time to do so.

The second big challenge for businesses as reported in the survey is a lack of staff. Th irty-six percent of respondents said that a shortage of human resources had kept them from pursing innovation.

In third place were technical and technological difficulties, reported by 35 per cent of decision-makers.

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UPFRONT

GLOBAL NEWS

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BAD DIETS Findings from a new survey on Canadian eating habits have caused dietitians to warn that the population’s nutritional health may be in peril, as many people reported eating none of the major food groups each day.

The four basic food groups for a healthy diet are recognised as meats or meat alternatives, fruit and vegetables, dairy and grains. New research, commissioned by Dietitians of Canada and Dairy Farmers of Canada, indicates that many Canadians are not heeding the advice.

The survey, conducted in August 2009 by IPSOS Reid, asked over 2000 adults in Canada what they had been eating and drinking in the last 24 hours.

When the results were analysed by dietitians, they found that consumption of all four food groups was far below recommended levels.

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MEAT SHORTAGE Argentina, a nation that prides itself on having more cattle than people, may soon be forced to import beef to satisfy the demand of its meat-hungry population.

The Argentine government has traditionally sought to keep meat affordable through taxes, export restrictions and price controls, which has enabled Argentines to eat record amounts of beef in 2009. But with little or no profit left in meat, ranchers are selling out and slaughtering even the female cows needed to maintain their herds.

Argentina’s meat industry slaughtered about 11 million head of cattle during the first eight months of 2009, more than any similar period in the past two decades. “By 2011, the shortage will be evident and it will be impossible to continue without importing beef,” said Hugo Biolcati, president of the Argentine Rural Society.

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UPFRONT

GLOBAL NEWS

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MELAMINE ARRESTS Chinese police have detained three employees of a dairy fi rm based in the country’s Shannxi province amid allegations the workers sold milk powder tainted with melamine.

The arrests, widely reported in China, came a month after two of the country’s dairy workers were executed for their roles in 2008 melamine scandal, in which tainted milk powder killed at least six children and sickened thousands of others.

The latest arrests centre on three workers from Shaanxi Jinqiao Dairy Company, according to reports.

Liu Ping, general manager of the dairy and two of its employees Miao Wenjun and Lu Xiaoqiang were detained on 2 December for producing and selling toxic milk powder, China Daily reported.

Source: just-food.com

AFRICAN BUYOUT Danone is set to take control of its joint venture in South Africa, the French food giant announced in early December.

Danone will buy Clover SA’s 45 percent stake in the Danone Clover joint venture for a total of ZAR1.09bn in cash.

The deal will see Danone take 100 percent ownership of a business that is the South African market leader in fermented fresh dairy products. Clover will continue to provide Danone Clover with fresh milk and distribution services.

Clover CEO Johann Vorster said that the company had realised a “sizeable profit” from the transaction, which would be invested in upgrading its factories and distribution facilities.

Source: just-food.com

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FALLING BEHIND Meat processors are lagging behind other industry sectors when it comes to sustainability, according to a report by the Australian Food and Grocery Council (AFGC).

The study found the country’s meat processing industry used significantly higher levels of electricity and water and achieved lower recycling rates than counterparts in the dairy, fruit and vegetable segments. It also sent more than five times as much waste to landfi ll.

In its report Towards Sustainability - 2007/08, the AFGC said the meat sector needed an average of 17.5 litres of water (L/ kg) to produce one kilogram of produce – the highest of any food processing or food manufacturing industry.

Meat processors also used more than twice the amount of energy than other sectors for the output of a single kilogram of produce – 6.7 MJ/kg compared to around 3MJ/kg for most other segments.

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UPFRONT

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FISHING FOR SECURITY

FAST FACT

23.6 million people or 7.8% of the population of the United States have diabetes source: American Diabetes Association

With fi sh stocks plunging worldwide, fi sh farming may be the way to food security. EU policymakers have pledged to make European aquafarming more competitive to meet a growing public demand for seafood, but they underline that this must go hand-in-hand with efforts to restore fi sh stocks.

According to estimates from the UN Food and Agriculture Organisation (FAO), more than 70 percent of the planet’s fish species are already either fully exploited or depleted. As well as its environmental and economic impact, global overfishing also threatens the food security of millions of people who depend on fish for food.

Th anks to limited stock and the continued practice of overfi shing, the UN believes that we will not be able to meet demand by catching wild fi sh alone. Aquaculture is seen as one way to help satisfy demand and contribute to food security.

The EU’s Common Fisheries Policy (CFP) continues to subsidise the fi sheries industry, contributing further to the problem of overfi shing, while EU support for fleet modernisation has caused overcapacity in the fi shing fleet in relation to the resources available.

Although reform of the CFP is recognised as essential, changing the policy would require genuine political leadership. EU Fisheries Commissioner Joe Borg says the CFP in its current form “does not encourage responsible behaviour by either fi shermen or politicians”.

The European Commission is now seeking stakeholders’ views on reforms outlined in an April 2009 Green Paper, and will present legislative proposals on resource conservation and fleet policy to Member States and MEPs by 2012, with a view to the new CFP’s entry into force in 2013.

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A PLM BALANCING ACT There is a precarious balancing act in play: corporations must balance the demands of capturing the eye of the consumer in a whirlwind of claims, while ensuring compliance by navigating a maze of continually changing issues.

How do you break the constraints of innovation while still conforming to those of regulation? The answer may lie within the lines of the two. If you integrate the two stages, or take it a step further and integrate the two functionalities in a PLM solution, you can ensure both ambitious innovation and ensured compliance.

We can begin by examining a scenario: a developer begins with a product requirement to modify an existing formula to be low fat.

The constraints are specific for the defi ned markets of the EU and US. After the developer selects the original formula, he can enter a target for the new optimised formula, along with identifying alternates for selected ingredients. Once the formula

is optimised, the developer can run a regulatory analysis to see if the newly created formula will comply. (The integrated system will also automatically alert the developer if an added ingredient or process is non-compliant).

Beyond a simple pass/fail for a single claim, developers can view additional claims in which the formula is already in compliance.

Once validated (and the road already smoothed for the legal department), the legal documentation can be generated and each can be stored within the product’s specifications along with the formula, BOM, packaging specifications, artwork, etc. Each of these specifications is version-controlled and can be uploaded and checked in/out as a full or partial document.

While the stakes are certainly high, corporations can now benefit from a solution that provides an equally elevated control for innovation and compliance management, and every version in between.

16/12/09 14:46:26

UPFRONT 21

ANIMAL HEALTH MARKET BY REGION

North America

32.9%

West Europe

32.5%

Far East

15.4%

Latin America

11.8%

East Europe

4.6%

Rest of World

2.8%

TOP TEN

Source: Vetnosis Ltd

PROCESSED FOODS AND DEPRESSION People who consume a higher amount of processed foods could be more likely to become depressed in middle age, according to a new study.

Researchers from University College, London, undertook the study after recognising that there was a lack of research examining the interaction between overall diet and depression. Previous research had suggested an influence of nutrients such as fatty acids and B vitamins.

The new study, published in the British Journal of Psychiatry, looked at dietaryy data provided from 3486 participants in the Whitehall II Study. Participants had an average age of 55 years and worked in civil service departments in London. They completed a questionnaire giving details about their eating habits at the start of the trial, and were given a self-assessment on depression fi ve years later.

The University College team, led by Archana Singh-Manoux, identified two dietary patterns. People who ate the most whole foods, such as fruit, vegetables and fi sh, were less likely to report symptoms of depression later.

Those who ate more foods like chocolate, sweet desserts, processed meat, fried foods, refi ned cereals and high fat dairy,

were more likely to experience depression.

The difference remained even aft er factors like smoking, level of physical activity and body mass had been accounted for.

There were certain limits to the study, including the fact that the participants were mostly white, office-based civil servants who were not representative of the general population, and the questionnaire method only covered specific foods and is less reliable than the diary method of collecting dietary data.

Top 10 food and beverage companies most engaged with social media

1 2 3 4 5 6 7 8 9

Starbucks Pepsi Nescafé KFC Pizza Hut Coca-Cola Nestlé Budweiser Smirnoff

10

McDonald’s

Source: www.engagementdb.com

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UPFRONT 22

RAPID PATHOGEN DETECT Matrix MicroScience Ltd of Newmarket, Cambridgeshire, UK, launched its latest fully automated Pathatrix Auto to an invited audience of world-leading scientists at the IAFP 96th Annual Meeting 2009 in Grapevine, Texas.

Pathatrix Auto is the ultimate high volume immuno-magenetic separation method for the rapid detection of a range of pathogens, spoilage organisms and viruses from a wide range of complex sample matrices. A comprehensive range of protocols has been developed for the rapid detection of pathogens such as Salmonella spp., Listeria spp., Campylobacter spp., C. sakazakii, MAP, E. coli O157 (plus other serotypes) and viruses. Many of these tests have achieved multiple AOAC RI approvals.

Using paramagnetic particles, either antibody-coated or electronically charged, the system selectively binds and concentrates the target organism from a wide range of complex matrices found in food, environmental and biothreat samples.

The Pathatrix system uses unique patented technology to analyse large sample volumes by re-circulating the entire sample over a ‘capture phase’ where the paramagnetic particles have been immobilised. The target organisms are captured by the beads, then cleaned and concentrated automatically by the instrument automatically in 15 minutes. Up to 150 samples per hour can be processed by a single machine and it can be coupled to a wide variety of detection methods; e.g. direct selective agar plates, PCR, lateral flow or ELISA, and can be used to suit the end-user’s needs.

The high volume of samples analysed provides levels of sensitivity that are several orders of magnitude higher than conventional methods, providing food companies with greater product security.

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NEW DRIVE FOR MEAT-FREE MONDAY Ex-Beatle Paul McCartney used the platform of a global warming hearing at the European Parliament in early December to give fresh impetus to his ‘Meat-free Monday’ campaign. McCartney gave a speech in the presence of the chairman of the Intergovernmental Panel on Climate Change, Rajendra Pachauri, advising Europeans to stop eating meat for at least one day a week.

“Cutting down on meat consumption would be an extremely effective way of cutting down on global warming,” Pachauri commented.

Statistics show that agriculture contributes to 18 percent of global greenhouse gas (GHG) emissions, well above the 13 percent generated by the transport sector.

Sixty percent of the agriculture total comes from methane produced by livestock.

Methane is known to be 21 times more powerful a GHG than CO 2 and stays in the atmosphere for longer.

The rapid expansion of pasture for livestock is also a major cause of deforestation, especially in the Amazon, which further

contributes to climate change. Meat production also accounts for eight percent of global water use, and one-third of all cereal and more than 90 percent of the soya beans grown today are used to feed the 20 billion heads of livestock raised for the food industry.

Some observers also argue that reducing the world’s meat consumption could also lead to health benefits. Alan Dangour, Public Health Nutritionist at the London School of Hygiene and Tropical Medicine, said at the hearing that international dietary science shows that excess consumption of meat and dairy is related to poor health outcomes.

Th is is particularly true for adults, marking the increased risk of cardiovascular diseases (CDV) caused by saturated fats. Dangour cited a UK study that said that if livestock were to be reduced by 30 percent in the UK, there would be a big drop (as much as 17 percent) in adult premature deaths due to CDV and a UK£20 billion reduction in yearly healthcare costs.

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24

VACCINE WINS AWARD

LABELLING SCHEMES UP FOR DISCUSSION The European Commission is considering introducing new labelling to help consumers identify products that are animal welfare-friendly, thereby providing an incentive to food producers to provide better conditions for the animals they raise.

But animal rights campaigners say voluntary measures are not enough. Such voluntary animal welfare schemes in the EU do exist, but there is no harmonised scheme, which causes confusion amongst consumers about standards.

Current schemes include organic labelling; programmes run by animal charities, such as the RSPCA’s Freedom Food; schemes run by retailers; and other marks like the Red Tractor, which may only refer to minimum legal requirements.

The Commission has now outlined a series of options aimed at coordinating labelling, and is opening the subject for discussion between the European Council, Parliament and other institutions. It is also suggesting that a European Network for Reference Centres be established.

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EU Health Commissioner Androulla Vassiliou pointed out the benefits for the food industry, saying better labelling would provide a ‘win-win’ situation for consumers and producers. “Producers applying higher standards can market their products more effectively,” she said.

After conducting a feasibility study and consulting with stakeholders, the Commission has come up with several options, all of them voluntary. It suggests the establishments of requirements for voluntary labelling claims; establishing a voluntary Community Animal Welfare Label open to all who meet criteria; and draft ing guidelines for animal welfare and quality schemes.

However for animal welfare campaigners, the options on the table do not go far enough. Compassion in World Farming, a UK-based NGO, says if labelling is voluntary, only products farmed with high animal welfare standards will be identified.

Mandatory labelling, on the other hand, would identify meat, poultry and dairy produce that are reared intensively.

Startvac, the first vaccine against bovine mastitis, has been awarded the INEL D’OR 2009 Award.

On 14 September, as part of SPACE – the largest cattle fair in Europe held in Rennes, France – the journal La France Agricole awarded Startvac the INEL D’OR 2009 Award for livestock innovations.

According to the jury for the awards, “Startvac is a new tool in mastitis treatment that will reduce losses on dairy farms. Startvac is positioned as a key tool in programmes for controlling mastitis and a defi nitive advance for improving milk quality.”

Nowadays, mastitis control and milk quality are considered to be key success factors for dairy farms. HIPRA’s product has been selected

by INEL D’OR experts as a real innovation tool, which changes the management of mastitis and milk quality in dairy farms.

The use of Startvac will provide an important benefit for dairy companies and dairies, making it possible to obtain milk with better organoleptic qualities (low somatic cell count, reduced risks of antibiotic and so on). It will also improve milk production and quality, and the quality of dairy products such as yogurt and cheese, demonstrating dairies’ commitment to providing quality dairy products to consumers.

16/12/09 14:46:33

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UPFRONT

26

HARD TIMES FOR SPAIN

FAST FACT

Germany is the largest milk producer in the EU, accounting for approximately 20 per cent of production in the EU-27

Source: Institute for European Environmental Policy

DIET CUTS BREAST CANCER RISK

Food manufacturers and retailers in Spain are set to face “a difficult couple of years”, according to the latest research from analysts BMI. While other countries are coming out of the recession, Spain remains one of Europe’s weakest economies. In a report on the outlook for the Spanish food and beverage sectors, BMI predicted the country’s GDP will fall by 3.9 percent in 2009, and by 0.9 percent in 2010.

Growing unemployment, falling incomes and a weak housing market have led to reduced consumer spending, with many consumers switching to private label. This competition from own label brands was said to be a factor in Sara Lee’s decision earlier this year to sell three of its Spanish bakeries.

“The market will therefore continue to be a very difficult place to do business for major brand-builders such as Sara Lee, and BMI expects such firms to continue to look for ways to cut costs and create efficiencies so as to maximise their chances of maintaining sales in what is now a highly price-sensitive environment,” BMI said.

BMI also issued a warning on the high level of unemployment in Spain, which is currently 18 percent. “We believe that the unemployment rate could peak as high as 25 percent in 2010, but warn that it could head even higher if no amendments that would encourage hiring are made to Spanish labour laws over the coming years,” BMI analysts commented.

NGF EU8_Upfront.indd Sec4:26

Sticking to a Mediterranean diet and avoiding Western-style foods may help reduce postmenopausal breast cancer risk, a new French study claims. According to the study, published in a recent issue of the American Journal of Epidemiology, the incidence of breast cancer may be lowered in postmenopausal women if they eat a diet consisting of predominantly fruits, vegetables, fish and olive/sunflower oil.

The study also says that the diet identified as ‘alcohol/Western’ (meat products, fries, appetizers, rice/pasta, potatoes, pulses, pizza/pies, canned fish, eggs, alcoholic beverages, cakes, mayonnaise, and butter/cream) was associated with breast cancer risk.

Evidence for associations between breast cancer risk and specific foods or nutrients has until now been limited, except for the connection with alcohol. Breast cancer incidence varies widely between countries, claims the study, and the researchers add that this suggests the influence of environmental factors.

The research was initiated in 1990 and involved 65,374 women living in France who were born between 1925 and 1950, with participants

completing biennial self-administered followup questionnaires on health status, medical history and lifestyle. Dietary data were collected via a self-administered diet history questionnaire assessing consumption of 208 foods and beverages.

The scientists said that they considered potential interactions with known risk factors for breast cancer such as age, educational level, geographic area at baseline, body mass index, height, family history of breast cancer, pregnancy and breastfeeding history and current use of vitamin/mineral supplements.

Scores for dietary patterns were obtained by factor analysis, and breast cancer hazard ratios were estimated by Cox proportional hazards regression for the highest quartile of dietary pattern score versus the lowest.

16/12/09 14:46:36

UPFRONT 27

SLOWING GLOBAL BEER MARKET Growth in the global beer market is slowing as the economic downturn quickens the decline in Europe and North America. Beverage research agency Canadean has published fresh figures showing a drop in beer volume growth from six percent in 2007 to less than two percent in 2008.

Sales are predicted to slow further in 2009 as the fallout from the global economic slowdown plays itself out in the beer market. Europe and North America are putting the biggest drag on global sales growth. Together the two regions represent 45 percent of the global market and neither is looking in particularly good shape.

Canadean said Western Europe has not seen growth since 2006 and the economic crisis has only accelerated the downward trend. Ironically, it has been economic development in the region that has been in some way responsible for the longer term decline in the beer market.

In neighbouring Eastern Europe, which had been an enclave of growth, the research fi rm said the crisis is set to trigger a negative performance this year. Russia, for example, had been a strong emerging market until it declined for the fi rst time last year and sales are expected to deteriorate further this year.

RISE IN ETHICAL PURCHASES The Institute of Grocery Distribution (IGD) says UK consumers are likely to become more interested in purchasing ethically produced foods as the country emerges from recession.

According to IGD’s research, while consumers have become more price sensitive in the current difficult economic environment, circumstances have not eliminated the demand for ethically produced products, such as Fairtrade, free-range, and locally sourced foods.

The survey also showed that consumers intend to increase spending on locally and regionally sourced foods in 2010. Th irtyseven percent of respondents said they expect to be spending more on local foods in three years’ time.

Th irty-four per cent said they intend to increase spending on foods that boast high animal welfare standards, like free range or Freedom Food, and 31 per cent said they would spend more on Fairtrade products.

Although consumers are interested in purchasing more food on the basis of ethical values, more than half (54 percent) said they would be more careful with their money in the future, irrespective of economic recovery.

NGF EU8_Upfront.indd Sec4:27

16/12/09 14:46:40

UPFRONT

28

PREVIOUS ISSUE

MORE VANILLA FLAVOURS

The previous issue of NGF featured an interview with Jim Begg of the International Dairy Federation in which he spoke of the federation’s main priorities – disease control, global demand and going green.

To read more of the stories from this issue head to www.nextgenerationfood.com

NEW INITIATIVE TO INCREASE PRODUCTIVITY

The Technology Strategy Board together with the Department for the Environment, Food and Rural Affairs (Defra) and the Biotechnology and Biological Sciences Research Council (BBSRC) is to bring the government, business and researchers together in a major initiative to stimulate the development of new technologies that will increase food productivity, while decreasing the environmental impact of the food and farming industries.

The Sustainable Agriculture and Food Innovation Platform will see investment of

NGF EU8_Upfront.indd Sec4:28

up to UK£75 million over the next five years in innovative technological research and development in areas such as crop productivity, sustainable livestock production, waste reduction and management and greenhouse gas reduction.

The platform will begin its work by investing up to UK£13 million in new research and development that will help crop growers to respond to the dual challenges of increasing productivity while reducing the environmental impact of crop production.

Vanilla is one of the world’s most popular flavours and is especially used in ice cream and dairy products whose consumptions are growing. Vanilla fi nds its origins in tropical America. The two main types are Vanilla planifolia (intense, dark), including Bourbon vanilla, and Vanilla tahitensis (weaker, sweet). The world production of vanilla was 8.6 Mt in 2007 (source: FAOSTAT).

Typically, the level of vanillin found in vanilla beans is around two percent. Prices have been fluctuating over the past few decades and the availability of vanilla is limited.

To compensate for this, the development of synthetic vanillin has become necessary.

Ethyl vanillin is an artificial substance; it is not found in nature and its use is regulated.

It completes the offer in synthetic vanillin.

In Scandinavia, we have evaluated the typical taste preferences for vanilla to be mild flavours with sweet, vanillin profi le, sometimes buttery, creamy or caramelic. New launches of products with vanilla taste were around 150 between 2003 and 2008 (source: Datamonitor). Other European regions have different taste preferences.

Einar Willumsen have used this information to develop a new range of vanilla flavours.

Flavours can be characterised in a number of ways, of which sensory profi ling is one of the most useful. In order to profi le its vanilla flavours, the company has chosen to use the following descriptors: sweet, buttery, anisic, caramelic, lactonic, coumarinic (with the taste profi le of coumarin but without addition of coumarin), phenolic and creamy.

Einar Willumsen flavours are tailor-made to meet any combination of the above flavour characteristics. The company has carefully developed eight vanilla flavours, in order to meet customers’ demands for cost-in-use, labelling and sensory qualities. www.einarwillumsen.com

16/12/09 15:00:33

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UPFRONT 30

2007 PER CAPITA WINE CONSUMPTION IN LITRES

H1 lubricants are suitable for incidental, technically unavoidable contact with a food product. Bottling is one such application.

France

50.6

Portugal

45.8

Italy

43.7

Austria

32.3

Denmark

29.2

Belgium

28.8

Spain

25.7

Germany

24.3

Netherlands

21.4

UK

19.6

LUBRICATION SUPPORT IN A CHANGING WORLD Isaac Asimov, the Russian writer, once said, “The only constant is change.” We live in a constantly changing world, which also applies to food manufacturing. Changes taking place include new legislation – ISO 21469 – and companies wanting to run longer and faster with increased reliability.

Klüber Lubrication, the lubrication specialist, continues to develop lubricants and supporting products and services that contribute to food manufacturing companies achieving their goals of operating cost reduction, increased food safety to protect the consumer (and the brand) and increased reliability to maximise output.

To be successful requires more than highperformance H1 lubricants: input is needed from many different people in the manufacturing plant, including production, quality, procurement and engineering. To bring all of them together and create a dynamic, interactive plan that delivers continuous improvement, Klüber Lubrication has developed the support package KlüberAssetSupport.

Goals achieved A brewery, on introducing KlüberAs-

NGF EU8_Upfront.indd Sec3:30

setSupport, reduced costs by €180,000 whilst increasing food safety by changing from an industrial mineral gear oil to a synthetic NSF H1 lubricant. A meat processing plant piloted KlüberAssetSupport to experience how it works and what results could be achieved.

In the fi rst nine months, savings of more than €40,000 were measured from one production line and annual savings of €120,000 in total are projected.

Nestlé’s experiences with the tailored KlüberAssetSupport package called NestléKLASS are described by Luca Guscetti, Assistant Vice President CO-Engineering/Services, NESTEC Ltd, Vevey, Switzerland: “KLASS is a support programme that is easy and quick to implement. It helps Nestlé factories as they progress with total performance management implementation, with the aim to excel in Compliance, deliver Competitive advantage and ultimately delight our Consumers.

“In those manufacturing plants that have deployed KLASS, we are seeing improved lubrication management and practices, therefore resulting in higher assets reliability and reduced operating costs.”

Sources: OIV and Veille Concurentielle Vinifhlor

16/12/09 14:46:48

UPFRONT 31

FAST FACT The EU-27 harvested an estimated

269.4 million tonnes of cereals in 2006, more than one fifth (22.9%) of which came from France.

Source: Eurostat Pocketbook, Food: from farm to fork statistics

COMPANY INDEX Q1 2010 Companies in this issue are indexed to the first page of the article in which each is mentioned.

Belt Technologies 62, 63

European Dairy Association 38

Jungbunzlauer 44, 45

Biomin 134, 135

European Environmental Bureau 46

Klüber Lubrication 30, 75

PROVA SA 92, 95

Bizerba Solutions Inc. 68, 71

European Milk Board 38

Kraft Foods 142

Revent International 66, 67

Bruker Optics 118, 119

EUSTAS 88

Lipid Nutrition 104, 107

Selerant 13, 20

Bühler AG 130, 131

Evonik Degussa GmbH 4, 132, 133

Matrix MicroScience Ltd 22, 23

Sirus Technologies 86, 87, IFC

Cadbury 142

Fiberstar, Inc. 37

METTLER TOLEDO 68, 69

Shiner International 48, 50

Casio 79

FLABEL 76

NCH Corporation 17, 59

Tetra Pak Processing Systems 118, 119

Certis Europe 128, 129

Food Standards Agency 46, 110

Nestlé 32

TINE BA 104, 105

CFS 60, 61

Frost & Sullivan 139

New Holland 137

TNA 55

Coca-Cola France 88

Guilin Layn Natural Ingredients Corp 11,

Novozymes 100, 101

The Coca-Cola Company 82

COPA-COGECA 38

92, 93

OCS Checkweighers 2, 68

The European Food Safety Authority 96

Danone 96

Hipra 24, 25

Organisation of Economic Co-operation and

The Solae Company 9, 115

DSM Nutritional Products 120, 121

Horphag Research 108, 109

Development 110

The Wire Belt Company 62, 65

Dupont Qualicon 122, 123

Huhtamaki 50, 51

Ovum 124

Waters 7, 116, 117

Einar Willumsen 28, 29

IAA 110

Petro-Canada IFC, 80, 81

World Packaging Organisation 50

EUFIC 76

Ishida Europe Ltd 68, 73

Powerflute 53

WRAP 46

European Commission 38, 88, 136

JMP 126, 127, OBC

PRO EUROPE 56

Yakult 96

NGF EU8_Upfront.indd Sec3:31

16/12/09 14:46:50

Paul Bulcke ed_26nov09 16/12/2009 11:07 Page 32

FEATURE

Taking responsibility

Nestlé CEO Paul Bulcke on sustainability and the role the world’s biggest food company has to play in improving global health.

A

s for many other organisations, 2009 has been a tough year for Nestlé. Its recently announced nine month figures showed that the food and drink giant had managed organic growth of 3.6 percent in the first three quarters of the year, down from 8.9 percent for the same period in 2008. However, in a business environment such as today’s, any growth is positive and CEO Paul Bulcke is keen to put these figures into some kind of perspective.

“They come on top of many years of strong performance, which delivered profitable growth period after period, year after year,” he says. “Let us just look at the past three years for example. For the period of 2006 to 2008 our sales and constant currencies are up 27 percent and our EBIT increased 43 percent with significant improvements in EBIT margin and the return on investment capital. We invested CHF 29 billion in growing our business. 14 billion of that in capital expenditures and CHF 15 billion in acquisitions. At the same time we returned a total of CHF 28 billion to our shareholders, 12 billion from dividends, which increased 55 percent over the period and 16 billion from our share buyback programs.”

Behind these numbers, Nestlé has continued to pursue its aim of shifting away from just being a food producer to a company profile that gives equal weight to health and wellness. Giving structure to this transformation is a ‘road map’ that sets out where Nestlé is headed. “The road map clearly defines what we want to be as a company,” Bulcke continues. “We want to be the world’s recognised leader in nutrition, health and wellness, and also the reference at the same time for financial performance in our industry. It defines what we want to leverage to succeed. First, our product and brand portfolio backed by strong R&D capabilities, our unmatched global presence in the world and our people, values and culture. It defines also where we see opportunities for particularly accelerated growth in nutrition, health and wellness with emerging consumers and our properly positioned products initiatives and out-of-home consumption and in premiumisation.

32 www.nextgenerationfood.com

“Over the 10 years since we created our sustainable agriculture initiative, millions of farmers have benefited from our free technical assistance”

Paul Bulcke ed_26nov09 16/12/2009 11:07 Page 33

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Paul Bulcke ed_26nov09 16/12/2009 11:07 Page 34

“It then also defines how we deliver efficiently and effectively every day, paired mental development, and widespread zinc deficiency leads to poor to consumer relevant innovation and renovation across our brand and prodgrowth and reduced immunity.” uct portfolio, to continuous improvement of our operational efficiencies by Bulcke clearly believes that Nestlé is uniquely placed to address some of having our products wherever the consumer looks for them, and by commuthese issues. “Over one billion Nestlé products are purchased every day nicating and connecting better with our consumers. That is what the road around the world, which are or could be carriers of micronutrients,” he conmap is all about, a clear and straightforward framework outlining our tinues. “We are now mapping out our product fortification efforts against strategic direction, which everyone at our company is aligned with known micronutrient deficiencies across the globe. Working with and implements on a daily basis.” local health and experts, we are analysing local nutrition landAside from Nestlé’s financial ambitions, the company is scapes including nutritional status intakes and dietary also taking a crusading approach to major global social ishabits of different populations in order to best target consues. “At the beginning of the 21st century malnutrisumer needs.” Nestlé has been fortifying food and bevtion remains one of the most serious problems facing erages for many years now and has a large product will be spent on humanity,” says Bulcke. “It is an underlying cause of portfolio, largely focused on developing countries. A cocoa and coffee around 35 percent of death in children under five years key line is in fortified milks, which have the significant sustainability in the old and mainly in the developing countries. benefit of being comparatively cheap to produce, enabling next 10 years Micronutrients deficiencies exist in iron, iodine, vitamin them to be affordable for those in most need. By the end of A and zinc in both adults and children. These deficiencies are 2010, these milk products are hoped to be available to millions especially common in Africa, South Asia and Southeast Asia. of consumers in over 70 countries. For a company whose relationOverall one-third of the world’s population is deficient in iron, iodine, viship with the developing world has drawn considerable controversy in the tamin A or zinc, or a combination of them. Severe iron deficiency exists in past, it would be easy to dismiss these efforts as little more than a smokescreen Africa and in parts of Asia and South America, causing delay in mental deaimed at batting up a tarnished image. However, Bulcke insists that Nestlé’s velopment in children and reduced physical performance. Vitamin A deefforts are motivated by a balanced combination of business imperative and ficiency is particularly severe in South Asia and Sub Saharan Africa, social responsibility. resulting in blindness and increased susceptibility to infections. Iodine de“It is our hope that our strategies in product fortification will over time ficiency is more scattered across the globe and is also responsible for imcontribute significantly to the eradication of malnutrition and of micronutri-

CHF 460 MILLION

34 www.nextgenerationfood.com

Paul Bulcke ed_26nov09 16/12/2009 13:12 Page 35

“

ents deficiencies around the world,” Bulcke states. “This mapping activity is a good example of how our business activities link up with society in responsible and sustainable way. We call this creating shared value. In this particular case we are contributing to the solution of a public health problem with products that address the nutritional needs of specific parts of the population, and in doing so we serve both society and our shareholders at the same time.”

Sustainability is an increasingly vital component of how just about every industry does business. It’s therefore no surprise that Nestlé is devoting plenty of resources towards addressing it. The company is increasing its use of Fairtrade products across its brands and recently announced that the extremely popular Kit Kat chocolate bar will now be made from Fairtrade sourced cocoa. In addition to partnering with organisations like Fairtrade, Nestlé is also working on its own initiatives. The Nestlé Cocoa Plan was announced in late 2009 and builds on the company’s efforts to help farmers by bringing its plant science knowledge to bear to ensure a steady and sustainable supply of cocoa in years to come. Recent history has seen an unprecedented rise both in chocolate consumption and cocoa prices, so it is vital for a massive confectionery producer such as Nestlé to have a secure supply of raw materials.

Werner Bauer Supplies of cocoa and coffee, another major part of Nestlé’s business, depend upon farmers at a local level and as a result, the company will be investing CHF 460 million over the next decade on a range of initiatives to keep the beans flowing in. “These cocoa and coffee sustainability programs are part of our commitment to carry out our business in a responsible and sustainable manner, and in line with our values and our principles’” says Bulcke. “Over the 10 years since we created our sustainable agriculture initiative, millions of farmers have benefited from our free technical assistance. This is a strong holistic program with our agriculture suppliers. It aims to improve efficiency and risk management in the supply chain and it supports sustainable development in agriculture. Today our company provides free technical assistance to over 600,000 farmers.”

But sustainability isn’t purely an issue for farmers and suppliers. It permeates right through the organisation to how products are packaged and produced. “We have invested CHF 250 million this year alone in sustainability projects in our own factories and operations,” Bulcke continues. “These include renewable energies, reducing water usage and improvement of our overall carbon footprint. Bottled light weighting is just one of these projects among many of the recent capital investments we have made in sustainability. Nestlé Waters continues to be the leader in PET bottle light weighting.

Since its launch in 2007 the Eco Shape bottle in the United States alone has saved around 100,000 tons of resin. In energy savings equivalent this would be equivalent to 78,000 cars taken off the road this year. This year we launched a ultra-lightweight 1.5-litre bottle in Spain for Nestlé Pure Life, which is the world’s lightest bottle of its kind. This bottle is being rolled out now in other countries.

We believe that it is important that our shareholders, consumers, customers, suppliers, other stakeholders and the public at large understand how we positively link up our activities with society in a responsible and sustainable way, and this

Nutritionally speaking

WERNER BAUER, Nestlé’s Chief Technology Officer, on the company’s efforts to make its products healthier

W

hen we talk about nutrition we didn’t start yesterday to do that. Our Nestlé Nutrition Council was created 32 years ago and today still contains the most preeminent members, the top specialists of the world who guide us to do the right things as a company. They got us as well into doing proper clean science behind what we call nutrition science. There are two things that you always have to remember when we talk about a nutrition company. Food per se is the best carrier of health. With that we have first to make sure is that the base on what we deliver is clean and good. This is about getting rid of the bad things. Trans fatty acids are not good in them.

We have put our policy in place already in 1999 to eliminate TFA’s from our products, and we over time operationally have done that. It’s about having the right levels of salt, having the right levels of sugar. You can’t imagine how much R&D money we spend today in doing things properly for just our base. This is reflected in our company policy, what we call the 60/40+. You remember 60/40+ was to win on taste, on texture. The plus was to win on the nutritional content of the product.

On top of that comes the micronutrient environment. That’s what we need on a daily basis.

On top of that is the targeted nutrition environment.

Wherever you have a deficiency you hone in with your products to deliver on those things. We have decided properly, what are the most preeminent things that we have to cover? One is iron deficiency. This is supported by our product development worldwide. It’s 300 billion servings per year that we deliver to our people everywhere in this world.

It’s not so easy to do that. It’s not just about adding on iron. You cannot do it to everything. You need specific encapsulation processes behind it, so the science and the technology behind it is the crucial thing. I’ll tell you, we are spending time and money to do the right things right here on that one. On the other side we have to be careful to avoid overdoing it. Over-fortification is wrong. Here together with our nutrition council we’re really doing stepby-step this fortification program to roll it out worldwide at this level.

www.nextgenerationfood.com 35

Paul Bulcke ed_26nov09 16/12/2009 11:07 Page 36

is what we mean by creating shared value, and the role it plays in the convergence of growth, sustainability and nutrition. In fact, this is the key to creating and maintaining trust with society in general.”

Nestlé was founded in the 19th century on the bedrock of infant formula, a product designed to improve the health of consumers. In light of the huge upswing in popularity of so-called ‘functional foods’ with positive health benefits this marks the company out as being significantly ahead of its time. “It is the core,” confirms Bulcke. “It is the soul of our strategy. We have a road map that we have put in the centre the ambition to be a leading recognised nutrition health and wellness company. We have said also that we are driving a very important R&D structure that is inspiring our strong portfolio and brands, so we are focusing behind several platforms for that.”

Key to keeping Nestlé at the nutritional cutting edge is a commitment to continuous innovation. Bulcke describes a perfect situation as one where the product portfolio is in a constant state of churn, so that new developments and nutritional benefits can be incorporated without delay. But improving products is only part of the story. Consumers need to understand exactly why nutrition is so critical. “This whole thing is linked to information, to inform the people about nutrition,” Bulcke says. “There’s nothing with less present education in general than nutrition. I remember when I was in school we never had a one-hour course in nutrition, and yet at the same time it’s so important in your life and you have to take nutritional decisions. Everybody has

to take nutrition decisions several times during the day, so we are not prepared for that. Governments are starting to be involved here.

“We as a company have a nutrition compass, which is on every Nestlé product. Consumers see a compass that gives some comprehensive information that helps to induce that better awareness and understanding of what nutrition is all about, and we have in the framework of creating shared value announced also that we’re going to drive a global push through the market, so structures that we have in every market, that gives kids a global nutrition education program. We already have quite comprehensive programs in 30 countries that we do together with local authorities to educate kids on nutrition. The multiplying effect of educating kids also for the future but in their families is quite dramatic.”

As 2010 kicks off, Nestlé is ready for a big year. As befits the biggest food company in the world, it is pursuing a global vision, one that has the potential to bring big rewards for shareholders and consumers alike. Bulcke recognises the responsibility that a multinational of Nestlé’s size has and also understands the power it can wield. “We put nutritional values into our food and our portfolios, that has a broader context of also affecting nutritional decisions by the people so they go for more balanced and healthier diets in their lives,” he says. “This is a very global equation that we have to be part of and actively drive our knowledge through this whole process. It’s a very, very important thing that is so close to what we want to do as a company. n

60/40+ Nestlé’s 60/40+ concept is the tangible expression of the company’s vision.

Increasingly consumers are looking to food to provide nutritional and health benefits – not at the expense of taste but in addition to it.

As a result the company aims to make products that achieve both 60/40 consumer taste preference and a nutritional advantage. This means that not only should six out of 10 consumers prefer the Nestlé product to a competitor’s equivalent but that there should be a nutritional plus too. Nutritional assessment is carried out by R&D nutritionists and generally compares a Nestlé product with the main competitor product. The nutritional assessment examines the levels of nutrients and the intrinsic value of key ingredients in the company’s products. The potential contribution the product makes to daily needs for a healthy balanced diet can then be determined. The assessment identifies nutritional strengths and weaknesses, and provides direction for product improvement leading to nutritional superiority.

36 www.nextgenerationfood.com

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COVER STORY

Dairy Crisis.indd Sec1:38

16/12/09 10:41:10

The European dairy sector faces an uncertain future following a dramatic slump in milk prices which could see many farmers forced out of the industry. Stacey Sheppard assesses the prospects of an industry on the edge.

A

s Europe’s dairy sector has been brought to its knees in one of the worst crises to have rocked the industry, farmers from across the EU have taken to the streets in protest. The unprecedented crisis has seen the collapse of milk prices, rising production costs, bad weather conditions and scarce credit coinciding and resulting in crippling income and cash flow problems that could reportedly see EU dairy producers losing up to €14 billion by the end of 2009.

Demonstrations have been held in Austria, Belgium, Budapest, the Czech Republic, France, Germany, Italy, Luxembourg, the Netherlands, Spain and Switzerland as the collapse in prices threaten bankruptcy for tens of thousands of producers.

Government offices have been the main scenes of unrest as furious farmers poured hundreds of thousands of litres of milk onto the streets, set light to hay bales and blocked roads with fleets of tractors and herds of disoriented cows.

Milk was also poured into the Rhine by farmers in Strasbourg, whilst protesters in Belgium dumped three million litres of fresh milk back onto their fields and in France producers distributed free milk to the public and erected graveyard style crosses to symbolise the death of French dairy farms.

It would be easy to assume that the crisis facing dairy producers is the product of the same global economic downturn that is affecting the automotive industry, the fi nancial sector and the construction industry to name but a few. But from speaking to those in the dairy sector it has become apparent that there is another, more insidious culprit on the scene.

“The economic crisis certainly has had its effects, but for the dairy sector there was another development that was at least as important and that is the reform of the Common Agricultural Policy,” says Joop Kleibeuker, Secretary General of the European Dairy Association.

He believes that the stepping back of the European Commission from the market management approach resulted in a situation at the end of 2007 where there was still a growing demand for dairy products in the EU, but no significant growth in EU production. At the same time, he says, all main stocks were more or less gone, which lead to a strong price increase in the second half of 2007 and the beginning of 2008.

The higher prices for milk meant increased costs for those using dairy products, especially in food processing. Many processors therefore started to look to dairy substitutes, especially products based on vegetable protein, vegetable fats and vegetable carbohydrates, says Kleibeuker. The outcome of this was a strong decrease in price, which has now been amplified by the loss in demand that has been attributed to the economic crisis.

For some in the industry, the aforementioned chain of events has clearly demonstrated that the milk policy implemented by the EU has been a resounding failure. The European Milk Board (EMB), a European organisation that lobbies for milk producers, is pressing for a change in the system so as to create lasting stability for sustainable milk production in Europe.

In October this year, EMB President Romuald Schaber said that a correction of the failed EU milk policy is unavoidable, clearly signalling his belief in the shortcomings of the system. The possibility that EU milk policy be considered a failure however, is something that Mariann Fischer Boel, European Commissioner for Agriculture and Rural Development, strongly denies. “I reject that theory completely. The current situation is a direct result of a drop in global consumer demand for high value dairy products because of the overall economic crisis. Our milk policy is working. The measures we have introduced are having an effect. Prices are now rising,” she says defensively.

But there are many who don’t agree with the simplified explanation provided by the Commissioner. Pekka Pesonen, Secretary General

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of COPA-COGECA, a European organisation representing roughly 15 million farmers across all agricultural sectors, believes that the fact prices have decreased despite the market remaining relatively stable, and can be put down to the agricultural reforms that took place in the European Union. But he does not believe that this is the only reason: “Of course, when it comes to market development, the sheer fact that the European Union has enlarged from the EU-15 to the EU-27 over the past 10 years clearly underlines the fact that price levels on average in the European Union have decreased to a certain extent.”

On the whole Pesonen is not terribly impressed with the way that the situation has been handled by the EU’s executive arm. “I feel strongly that currently – and not only in agriculture – the whole EU ecology seem to be like management by crisis where nothing happens unless we have a major crisis on our hands.

“From an agricultural point of view it means that in the process of this crisis and especially when we have to introduce these emergency measures, in most cases we lose tens of hundreds of farmers all across Europe. It would not be in my interest or COPA-COGECA’s interest to encourage crises as a tool to manage the market or manage the policies in place,” says Pesonen.

It would appear that fi ngers are pointing in all directions in the search for somebody to blame. Whilst some cite the economic crisis, others attribute blame solely to the policies of the Commission. But there also appears to be a middle ground emanating from those less hasty to name and shame.

Kleibeuker certainly has a more diplomatic assessment of recent events. “I cannot say that EU milk policy is a failure. We are just in the process of liberalisation. We are confronted with price developments that we had not seen before and because we had not experienced this the whole sector has not been optimally prepared for the situation,” he explains.

As far as he is concerned, nobody could have foreseen the massive price drops that followed the increases. When times were good and producers found themselves benefiting from the increased prices, they invested in more cows and better equipment so they could achieve higher production rates. But when prices took a tumble many found themselves struggling to survive.

“Dairy farmers are having a very difficult time at the moment,” says Kleibeuker. “But one thing you cannot say is that this proves that the milk policy has not been right. All it proves is that we have not prepared ourselves well.”

But, as Kleibeuker points out, the discussions that have resulted from this crisis are raising questions that the dairy sector should have perhaps asked itself long ago such as ‘How can we prepare ourselves better?’ and ‘How can we develop tools for farmers, tools for the processing industry, tools for traders, so that we can operate in a market where prices are more volatile?’.

So if one good thing is to come out of this crisis it is indeed the fact that all industry sectors are now rallying together to deliberate ways to secure their future. At the beginning of October, Commissioner Fischer Boel announced the formation of a High Level Group (HLG) that was to be set up to discuss measures which could potentially ensure the longterm sustainability of the dairy sector.

The HLG on milk is chaired by the Commission’s Director-General for Agriculture and Rural Development, Jean-Luc Demarty, and composed of Member State representatives. Experts and stakeholders will be invited, when appropriate, to assist the HLG in its work. The group 0, will meet once a month and must deliver its fi nal report by June 30, 2010.” inevvitably i Some of the main topics of discussion for the HLG willl inevitably t be bei address the suggestions – or in some cases demandss – that are being issued by the various industry players.

Sample of European Milk Prices 2009 (cents per litre) Country

Germany

Netherlands

UK

Source: European Milk Board

Producer

04/2009

05/2009

06/2009

07/2009

08/2009

09/2009 10/2009

Campina Humana Müller Nordmilch

20,00 23,00 21,00 22,00

20,00 22,00 20,00 21,00

20,00 22,00 20,00 21,00

20,00 22,00 21,00 21,00

23,00 22,00 22,00 21,00

24,50 23,00 22,00

23,50 24,00

CONO DOC FrieslandCampina Leerdammer

27,52 23,04 26,42 25,44

27,17 22,26 26,43 25,44

26,64 21,63 25,44 25,44

26,12 20,75 24,68 24,60

24,60 29,75 24,61 24,60

27,00 21,90 25,57 24,60

28,06 25,18 27,43 25,64

Arla Dairy Crest DFOB First Milk Milk Link

27,18 26,59 21,73 24,91

27,87 27,07

27,26 27,44

23,37 27,31

27,03 26,23

26,45 26,03

25,01 27,72

24,69 27,38

24,54 27,23

23,74 25,81

23,55 25,42

26,00

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The EMB is advocating the establishment of a monitoring agency that will represent all those involved in the milk market. Sieta van Keimpema, Vice President of the European Milk Board, says: “A monitoring organisation in which EMB, the dairy industry, retailers, a consumer organisation and EU politicians are represented, has to be installed to investigate – on a structural basis – market demand and the cost of producing milk.”

She believes that in doing this the responsibility for prices that are paid to producers will be spread across all players in the chain and that it should prevent over-production and the dumping of milk on Third World markets, which is detrimental to the livelihood of farmers in those countries.

COPA-COGECA has also asked the Commision to take action. “We have asked that strong measures be put in place as soon as possible, meaning that they should have been there yesterday. We would like to see interventions, v private storage, especially for cheese, and we would like export refunds r re to be activated,” says Pesonen.

“And regarding medium to long-term measures we certainly would like liikk to see active promotional schemes, labelling requirements and then of o course we need to talk about structures within the dairy industry and dairy farms in general.”

However, there are also those that believe that some of the decisions that the commission has taken are on the right track and will help diminish risks in the future. Kleibeuker, for example, agrees with the Commission’s decision only to interfere in the market in emergency cases. “When the EU intereferes in the market earlier we create uncertainty in the market and this results in speculation and that could do more damage rather than recover the market.”

He is happy to see that the Commission and national authorities are now developing schemes, such as direct payments and second pillar payments, that help farmers without interfering in the market.

The Commission, however, has been proactive and a number of the dairy industry’s concerns will be addressed by the HLG. Commissioner Fischer Boel explains that the HLG will be discussing the following pri-

“In 1984 there were 1.6 million dairy farmers in the then 10 Member States. Today, there are 300,000 milk producers in these 10 countries”

orities: whether the current market instruments are appropriate; transparency and information available for consumers; quality; health; labelling issues; the possibility of a futures market for dairy; and innovation and research with a view to making the sector more competitive.

Another topic that the HLG has agreed to discuss is the measures that need to be taken to strengthen the bargaining power of milk producers. Many farmers feel exploited as the prices they are paid for their milk have now slumped below the cost of production – a situation that is clearly unsustainable.

COPA COGECA is particularly keen to address this situation and Pesonen fi ngers retailers as the main obstacle. “About two years ago, prices went up and retailers pointed out that they had to increase their prices as farmers were getting more. Surprise, surprise, after two years when prices plummeted, nothing happened to consumer prices.

“We don’t say that prices should go through the floor as we have experienced, but the problem is what was the justification for retailers two years ago? It was that farm gate prices went up. All of a sudden, this same argument doesn’t work the other way around and we fi nd it extremely artificial,” says Pesonen.

However, on the topic of whether or not retailers and large supermarkets can be accused of profiteering, Kleibeuker does not believe this to be the case. Whilst the price of milk has dropped, so too have the prices for commodities and ingredients and consumer prices will reflect this eventually. But what we must remember, he says, is that the prices that are agreed with retailers are often set in contracts that last for maybe six months or a year. Because of this prices have reacted, just quite slowly.

“We have not seen extreme profit margins in the processing industry. There is not a single dairy company that is really rich. I also think we should be very careful in saying that this is the case in the retail sector,”

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says Kleibeuker. “A main part of dairy products are sold by retailers under private labels, which are used to attract people into their shops.

There is quite a lot of competition between retailers – especially in the liquid milk market – resulting in low prices.”

But Kleibeuker does concede that in some cases, for example in Germany, the UK and France, the power that retailers possess has caused problems. Many are now realising

Dairy Crisis.indd Sec1:42

that they may have gone a little too far in lowering milk prices and are working with farmers to rectify the situation.

Pesonen believes that more cooperation of this sort is required and strongly supports the need for more contractual agreements to protect the position of producers in the supply chain. And he would like to see this at a European level with agreements that concentrate on the three main parameters of price, time and volume.

The EMB concurs with this demand for contractual arrangements and Sieta van Keimpema says: “We need regulations that make it obligatory for the dairy industry to negotiate with producers before the milk is delivered.

This would make the whole supply chain more transparent.” The negotiations should be the responsibility of the monitoring organisation that EMB proposes to establish rather than of individual dairy producers as this approach is not working, as we see in Switzerland, says van Keimpema.

However, contractual agreements are nothing new. They are already used to great effect in other agricultural sectors, such as the production of malt and barley, protein crops and the specialised production of crops such as hops. Pesonen suggests that the same kind of agreements used in these sectors could merely be transposed into dairy.

The reason these agreements have not been used in dairy before is because the EU had its own system in place for dairy in terms of the w quota system, which is due to be abolished in 2015. Th is is one of the imp single most important issues facing the industry as far as Pesonen is concerned and an once the quota system is revoked he believes it will be n necessary to replace it with an alternative mechanism to rrebalance the market. re For the EMB, the phasing out of the quota system rrepresents ep a significant threat to the market. “We will have eenormous no changes in prices and supply. Speculators will h ave the time of their lives and consumers and taxpayers have w ill have to pay the bill. Deregulation brought about the ecowill n omi crisis and liberalisation of the dairy sector will bring nomic ffood ood ccrisis,” says van Keimpema.

Th is view of the situation, however, is something that very rrapidly apidly angers the Commisioner. “Sometimes it is very frusttrating rating to t read in the press that the milk market is being totally d eregulat as if it’s the law of the jungle out there. We have reguderegulated, llations lat ions aan and we will have regulations in the future. There must be a ssafety afety n e that’s obvious.” net, Th iis debate regarding the abolition of the quota system does aappear ppear tto suggest that farmers will not be able to continue witho ut som m kind of guidelines telling them exactly how much milk out some tthey hey are arre allowed to produce. But Kleibeuker thinks that farmers w will il illl b be more than capable of making this judgement by looking aatt the market and determining if the demand is there.

O Once the quota system is no longer in operation and w het whether or not contractual agreements are used to protect p rod producers, there still remains the issue of price transparencyy iin n th the supply chain. In order to tackle this issue the Comm is mission is establishing the European Food Prices Monitoring T oo which will aim to bring together the available data on Tool, p ri developments in the different steps of the supply chain, price ccomparing o price developments for the relevant agricultural

16/12/09 10:49:43

Number of Milk Producers in EU

2006/07 2007/08

2003/04 2004/05 2005/06

2000/01 2001/02 2002/03

1997/98 1998/99 1999/00

1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97

Time will tell if the Commission will be successful in providing the lifeline that the dairy sector so desperEU27 1,600,000 EU25 ately needs. If however its efforts prove EU15 1,400,000 futile, then the future of dairy farmers EU12 will look very bleak indeed.

1,200,000 EU10 Pesonen fears for the future of 1,000,000 the sector as it hemorrhages workers.

“Farmers are being forced out of the 800,000 market because of the lower farm gate prices. But what I would like to high600,000 light here is that it is not necessarily 400,000 the small-scale farmers that are being forced out, but rather those who have 200,000 invested heavily,” says Pesonen.

0 “It is the young farmers who have gone along with the demands of the past ten years or so where farmers were encouraged to invest in more modern, efficient, higher quality production.

And these farms are actually the first commodities, for the relevant food industries as well as for the chosen ones to feel the heat of the market. Therefore we are very concerned about consumer goods. future developments in the market place and how future farmers, young COPA-COGECA believes that increased price transparency will also farmers, are going to cope with the market pressures.” promote greater understanding of pricing structures. “It is of paramount Mariann Fischer Boel has some advice as to how farms of all sizes can importance to communicate to the public the actual share of the farmer’s survive the crisis and what needs to be done to stem the flow of farmers income from the final product,” says Pesonen. “I don’t see any reason why who are leaving the sector, but she also emphasises the fact that restrucoperators in the food chain should not support wider turing and consolidating have been occurpublic information being provided.” He believes that ring anyway.

“There is the general once armed with this information, consumers will be “In 1984, when we introduced the milk expectation that there is able to make informed decisions based on how much quotas, there were 1.6 million dairy farma good future for dairy, farmers are being paid for their produce. He likens it ers in the then 10 Member States. Today, to the inclusion of environmental criteria, which is there are 300,000 milk producers in these because of the increasing now being included on packaging 10 countries. One of the main goals of the world population and the However, Kleibeuker sees one glaringly obvious Common Agricultural Policy is to support increasing ability of people problem with Pesonen’s suggestion. “Full price transthe European model of farming, in which to buy products with added there is a place for small, medium and parency is in conflict with the competition laws that we have in Europe. It is not allowed for me to collect value. This will result in an large-scale farms. prices that dairy producers are asking of retailers. It “But through our direct payments and increase in demand for dairy is not possible for me to get a full insight into all the the numerous measures available through products in the coming years” our Rural Development policy, there are prices along the food chain as this type of information can be misused in a free and liberal market.” good opportunities for even very small proWhilst full transparency may not be possible, ducers to make a living,” says the Commisother suggestions that the dairy sector is making are sioner. “Increasingly, our farmers will have being taken on board and discussed by the Commission. Some may beto focus on producing high-quality products and I hope that our quality lieve that the Commission is not doing enough but Mariann Fischer Boel labelling system can help them communicate the qualities of their product is convinced otherwise. to consumers.”

“We have done absolutely everything we can to support the dairy According to Kleibeuker, who is forever the optimist, the outlook for sector and our actions are bringing concrete results. Prices are rising. If the sector is surprisingly bright. “There is the general expectation that there you look at the list of demands from 21 of our Member States they have is a good future for dairy, because of the increasing world population and all been met already with the exception of the idea of a subsidy for milk the increasing ability of people to buy products with added value. This will powder in animal feed, which would be extremely expensive and not acturesult in an increase in demand for dairy products in the coming years,” he ally help the market. And my purse is now empty. There is no money left.” says with an impressive conviction. Let’s just hope that he is right.

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ASK THE EXPERT

SUPPLEMENTARY

BENEFITS

Colleen Zammer explains what makes zinc citrate such a versatile mineral.

there are many competing factors that make it difficult to maintain the 2-4 grams that the body should contain for optimal health.

In the diet, zinc is mainly found in sea and animal products. Oysters are by far the largest source of zinc with approximately 25 mg/100 grams.

Red meat is significantly lower, with only 5 mg/100 grams, and it drops dramatically from there, with grains and fruits containing less than one mg/100 grams of food.

There are also competing factors for the absorption of zinc, resulting in an uptake of only 20-40 percent of what is consumed. The main competition for zinc absorption is other minerals, such as iron and copper. If one consumes a meal in which iron, copper and zinc are combined, the iron and copper will win the race for absorption. In addition, phytates that are prevalent in fibre-containing grain products will also reduce the absorption of zinc from a meal. The global emphasis on increasing fibre content in meals makes this bad news for dietary zinc, but good news for zinc supplementation.

Zinc has been recognised for its health and marketing benefits for years, and clearly consumers are responding. In the US alone, supplement sales for zinc accounted for US$72 million in 2007, according to Nutrition Business Journal. When you include other categories such as food, beverage, pet food and personal care, the picture becomes much clearer that the market for zinc supplementation is alive, well and profitable.

The preferred form of zinc

There are many sources of zinc one can choose from when formulating a food, beverage or supplement product, and which you choose depends on the following criteria: taste, solubility and bioavailability, and cost. Frequently, inorganic forms of mong the most recent additions to Jungzinc such as zinc oxide are used because they contain bunzlauer’s portfolio is zinc citrate, an very high levels of zinc at a very low cost. However, this organic salt of the versatile mineral zinc. form may not deliver on all formulation requirements Zinc has been used for centuries for a vaas it has a bitter flavour and sandy mouthfeel, and is riety of purposes, from tools and weapons to artwork. virtually insoluble, which means very little will actuHowever, it wasn’t until 1869 when it was discovered as ally be absorbed. a nutritional requirement for the growth of Aspergillus With all of the competing factors listed above, it niger that a link was made to human health. Even with is best to use a zinc source that has the highest chance this knowledge, it was still the 20th century before specifof absorption possible, and zinc citrate is significantly ic links were made to the function of zinc as an enzyme more soluble and therefore more bioavailable than the co-factor and that the research community was able to traditional inorganic zinc forms. Because citrates are fully appreciate the functionality of zinc with regard to Colleen Zammer is Market Development Manager for Health & Nutrition at the most common form of minerals found in fruits and human health. Today it is known to be involved in hun- Jungbunzlauer, representing the vegetables, they are recognised and tolerated by the dreds of enzymatic reactions that keep us functioning HealthyChoices portfolio of ingredients.

She has 20 years’ experience in the food, beverage and nutraceutical industries body. Zinc citrate has a neutral flavour, which is imporproperly and in good health. including product development, sales tant when formulating functional foods and beverages Because of its involvement in so many metabolic and marketing. Her specialty is linking where taste is a key success factor. Lastly, at 31 percent pathways, the mechanisms for zinc benefits vary widely. consumer trends with food technology for the optimal positioning of healthy zinc, zinc citrate is more economical than many other However, the key benefit areas include normal growth ingredients. organic zinc salts. and development, cognitive function, eyesight, hair and Zinc citrate is one of the organic mineral salts in skin health as well as wound healing, bone and joint the HealthyChoices portfolio of the Jungbunzlauer Group, which adhealth, immune system support and protection from cellular oxidation. ditionally consists of highly bioavailable salts of calcium, magnesium and potassium as well as sub4salt (a patent-pending salt replacer), and Supplementation with zinc the zero calorie bulk sweetener Erythritol. The production sites of these Zinc is considered a ‘trace mineral’, with a very low recommended ingredients are dedicated ISO 9001 facilities in Ladenburg (Germany), dietary intake of 10 mg/day in Europe and 15 mg/day in the US. HowPernhofen (Austria) and Marckolsheim (France). ever, even that low amount can be difficult to consume through diet, and

A

44 www.nextgenerationfood.com

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Jungbunzlauer.indd 1

14/12/09 08:59:52

FOOD WASTE

THE DATE DEBATE Does date labelling of food produce lead to confused consumers throwing perfectly edible food away? NGF’s Stacey Sheppard finds out.

O

n the 9th June 2009, UK Environment Secretary Hilary Benn announced plans to revise the use of sell-by and display-until dates on food produce in the UK as part of his crusade against unnecessary waste.

Speaking at the Chartered Institution of Waste Management’s Futuresource conference, Benn announced the Department of Environment’s plans to revamp the date labelling system in order to reduce Britain’s food mountain and save consumers millions of pounds in the process.

“As a nation we waste around £10 billion of food each year – a third of what we buy,” said Benn. “Part of the problem is how food is labelled. Some 370,000 tonnes of food are chucked out each year after passing their ‘best before’ dates, despite being perfectly good, safe and edible.”

Benn acknowledged that the current system of date labeling often leads to consumer confusion and said that when you buy something from the supermarket it should be easy to know how long it can be kept for and how it should be stored. “Too many of us are throwing things away simply because we’re not sure, we’re confused by the label, or we’re just playing safe,” he declared. Many consumers confuse the best-before date – an indication of quality – with the use-by date – a more serious indication of food safety.

Currently, under European law best-before and use-by dates are mandatory, but UK ministers would like the date labelling system made easier to understand and claim that many consumers see the stock control dates

aimed at retailers – namely sell-by and display-until – and mistakenly throw food away before it has actually expired. Research shows that UK households are annually binning an astonishing 40,000 tonnes of food that has not even been unwrapped.

A new scheme currently being devised by the UK Food Standards Agency may phase out sell-by and display-until labels altogether in an attempt to reduce consumer confusion and save hundreds of thousands of tonnes of edible food ending up in landfi ll.

However, some observers have suggested that the abolition of the date labels used by retailers may not be necessary and propose that perhaps they could be hidden from the public view in some way or codified making it impossible for consumers to detect the stock control dates and mistake them for indicators of food safety.

Th is debate regarding labeling and its contribution to the creation of food waste does, however, seem to be something that is currently limited to the UK with other European nations thus far failing to make the connection between the two. Many believe that scrapping the retailer date labels won’t reduce food waste, but rather what is needed is more effective consumer education coupled with targeted legislation.

Th is is something that Stephane Arditi, EU Policy Officer for Product and Waste at the European Environmental Bureau, is strongly convinced of.

“I can understand the argument that some customers will get confused with two dates, but I don’t really think that’s the main reason why

46 www.nextgenerationfood.com

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16/12/09 09:34:08

a lot of food is wasted and sent to landfi ll. This argument is a weak one,” declares Arditi.

“I think we need to raise consumer awareness with regards to labelling in order to reduce food waste, but simply getting rid of the retailer dates won’t do it.” Arditi points out that there are a whole host of factors contributing to high levels of food waste; date te labelling, in his opinion, is just one small part of a much larger puzzle.

One of the main things that he believes will be a catalyst for sending less food waste to landfi ll is EU legislation. The landfi ll directive that introduced financial sanctions has been a key to reducing waste and Arditi strongly advocates the introduction of a specific biowaste directive to take this a step further.

However, even this is not adequate in Arditi’s ’s eyes and he believes extra measures are necessary iff the lds are to levels of food waste generated by European households

“The action that needs to be undertaken to prevent food waste depends more on communities and communication, and the Love Food Hate Waste campaign in the UK is really the reference all over Europe on how to tackle the issue of limiting food waste in this way,” says Arditi.

He believes that educating consumers in ways that focus on communities communit will have more success in the long-term as they create better social links and give people the ideal framework wor for discussing ways of preventing food waste. He cites ci community composting schemes as an example of o this as it not only builds communities but helps draw people’s attention to the quantity of food that they t are wasting.

Retailers, however, also have a role to play in reducing r food waste according to Arditi. Large supermarkets su frequently encourage consumers to purchase purc more food than they actually need through their seemingly se attractive ‘buy one get one free’ of ‘buy two get one half price’ offers. But most consumers rarely get round to eating this surplus food before it passes its use-by date.

Packaging is another area that Arditi believes should be investigated.

Conflicting guidance advises consumers on the one hand not to buy more than they need, but on the other hand to avoid purchasing food products in individual portion sizes due to the increased amount of packaging used. Getting the balance right between food waste and packaging waste is no mean feat.

One solution that Arditi suggests is for retailers to offer food that has no packaging at all. “When you can buy food with no packaging it means that you can adapt the food you buy to your own needs. You can bring your own boxes or paper bags for taking the food home as you would do for example if you are buying vegetables at a market.

“You just buy what you want and you don’t have to have all the food contained in a standard pack, at the same time you dramatically reduce packaging waste,” explains Arditi.

The prototype for this is, of course, the good old-fashioned open market of yesteryear. So in some ways, what Arditi is in fact advocating is a step back in time to before the emergence of today’s monolithic, modern supermarkets. Whether or not this is even possible is debateable, although some of Arditi’s ideas may not be too difficult to implement.

However, it is entirely foreseeable that many health and safety conscious consumers – probably those same consumers that throw food away before it reaches its use-by date – would protest against the availability of unpackaged foods.

But Arditi’s argument that what is needed to reduce food waste is a combination of both consumer education by way of an informational campaign – similar to the UK’s Love Food Hate Waste programme – and the implementation of more targeted legislation cannot be denied. Addressing the issue on all fronts undoubtedly increases the chances of any action being deemed successful.

So for the moment, whilst discussions continue regarding the introduction of a biowaste directive, which would address the issue from a legislative standpoint, all eyes are on the UK and the progress of the Love Food Hate Waste campaign. If the campaign proves a success we may well be seeing similar national programmes being rolled out across Europe.

See infographic on page 140 for more

be sufficiently reduced.

Love Food Hate Waste The Love Food Hate Waste campaign aims to raise awareness of the need to reduce food waste in the UK. It is run by WRAP, who are also responsible for encouraging recycling and home composting. WRAP is funded by the British government and works to encourage and enable businesses and consumers to be more efficient in their use of materials and recycle more things more often. This helps to minimise the waste we send to landfill, reduce carbon emissions and reduce the damage we cause to the environment.

“Our research showed that when people became aware of the amount of food they were wasting they were shocked. They asked for advice on what actions to take and our campaign is in response to this,” says WRAP spokesperson Julia Falcon.

The website for the campaign offers some helpful advice on correct portion sizes, recipes to help use up leftovers, suggestions on how to store food to keep it fresher for longer and offers useful advice on how to save both time and money when shopping for food.

Date labels are one of the primary issues being targeted

by WRAP. “WRAP wants clearer communication around ‘best before’ and ‘use by’ date labels so shoppers understand them better and are less likely to throw food away that is safe to eat. This could help us all make better use of the food we buy and save money. In partnership with the FSA and Defra we aim to reduce consumer confusion by making it much clearer as to what is and what is not safe,” says Falcon.

www.nextgenerationfood.com 47

sell by dates.indd 47

16/12/09 09:34:11

SHINER: THE “BEST” PACKAGING SOLUTION PROVIDER IN ASIA Company Overview Shiner International, Inc. (NASDAQ: BEST, website: http://www.shinerinc.com) is an emerging global leader in flexibel packaging film industry sepcialized in two promising business sectors – food safe packaging & anticounterfeit packaging.

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cc/m2.24hr

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HPA

Color-printing and Packaging: Why this service?

• We have advanced and sufficient facilities, including 1 ten-color printing line and 2 eight-color printing lines.

The annual printed laminated film line is 8000tons.

• Shiner is the sole supplier who can provide unique onestop services ranging from base film manufacturing, coating, printing to bags making, which could help the customers to save costs and lead time.

• We use alchohol—soluble printing ink (benzene free) in the process and no solvent left over, hereby, it is environmental friendly product.

• Covering range: Our printing and packging service cover several industries like food, chemicals, drugs and tobaccos.

Structure

MWA

APA

Acrylic Coating BOPP Film PVOH Coating

Acrylic Coating BOPP Film PVDC Coating

Acrylic Coating White opaque BOPP Film PVDC Coating

Acrylic Coating BOPP Film Acrylic Coating

Integrated Film & Specialty Packaging Base Film

Speciality Film

Printing

Packaging

BOPP Functional Film In comparison with other BOPP common films, production of BOPP functional film requires sophiaticated equipments and technologies.In Shiner, BOPP functional film can be used for the packaging of tobacco, DVD etc. As a supplier of BOPP functional film who has a long history of manufacfuring, Shiner can produce BOPP functional film in various specifications which has superior machinability.By providing qualified product whose quality reach international standard and with an annual sales of 10,000 tons, Shiner occupies a leading position in the BOPP functional film market in Asian.

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Global Market • More than 50 major clients in over 23 countries.

• Major Customers Include: • HSU FU CHI • Sony Music • Warner Music • Ielleflex (Italy) • Westfarmers (Australia) • Energy Food Club (USA) • CLP Industries Ltd. (Israel) • KOROZO Ambalaj (Turkey) • Jamjoom Packaging ( Saudi Arabia) • American Multiplastics INC (USA) • Signature Flexible Packaging Inc. (USA) • Vinataba (The Vietnam Tobacco Corporation)

Logo customers

Direct Sales Regions Market reached via converter and distributor

Broad Industry Acceptance

ISO

California 65 EEC

ROHS FDA

Photos of Films and Its Applications

Reasons For Your Choice: • Customer-oriented Packaging Solutions • Excellent Product Quality • Competitive Price for Purchases

Please Visit Our Website for More Information:

http://www.shinerinc.com

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• Short Lead-time • Strong Technical Support • Promised After-sales Service

or Contact International Sales Staff: Ms. Jan Xie, International Sales Manager Tel: +86(898)6858 1565 / Mobile: +86-138075 63637 E-mail: janxie@shinerinc.com / int.sale@shinerinc.com

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ROUNDTABLE

ALL WRAPPED

UP

NGF consults the industry experts on the issues of sustainability, technology and safety in the food packaging sector.

Sustainability is currently a major issue in the food industry. What role does packaging have to play in helping producers to limit their environmental impact?

Dieter Bergner. Huhtamaki strives to reduce the amount of material used for the packaging without compromising the requirements placed on the packaging including design improvements benefiting in less storage space, reduced transportation and energy costs.

Packaging can’t be judged in isolation from the food it contains. Looking at the environmental impacts of packed food over the entire lifecycle, it becomes clear that the primary environmental task of packaging is to protect the food it contains. The better the protective properties of packaging are, the lower the negative lifecycle environmental impacts of packed foods are.

Huhtamaki as a packaging producer tries to be as material efficient and operationally as eco-efficient as possible in delivering these protective properties without compromising properties and quality requirements.

Huhtamaki has also developed a large array of packaging solutions made out of renewable materials.

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Tan Li. For one thing, as a food packaging company, Shiner is committed to reducing environmental impact and protecting the environment.

Shiner, as part of its growth and continuous improvement plan, carries out its business with a genuine concern for the protection and enhancement of the environment. The company continually seeks better and more environmentally friendly ways of carrying out its processes. Management has a commitment to educate, train and inform its employees in all areas, including a genuine concern for the environment. Continuous improvement and reinforcement ensure that this is instilled into the company’s culture.

Furthermore, the packaging material provided is high barrier film which has an excellent oxygen and moisture barrier and on outstanding aroma and flavour barrier. These packaging materials could extend the shelf life and protect the food from tampering, which means that there would be less food waste. This would greatly help to limit the environmental impact.

Keith Pearson. Those involved in the production of packaging are committed to minimising the use of raw materials, energy and emissions. This is being

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Dieter Bergner started his consumer food packaging career in metal packaging with Crown Cork & Seal and Impress Metal Packaging. After 11 years experience and before taking over Consumer Goods Europe as Managing Director, he spent four years working for Huhtamaki as Operations President for Rigid Packaging Europe.

Keith Pearson joined Kohler Packaging, the second largest packaging company in South Africa, in 1970.

He spent 32 years with the company working as factory manager, Managing Director and finally as divisional CEO of a number of businesses within the group. In 1996 he attended Harvard Business School and completed their Advanced Management Programme. He is currently serving a second term as the President of the World Packaging Organisation.

done in Europe following the EU Packaging Directive and related harmonised standards. In other parts of the world this is done to adhere to local packaging directives.

Throughout the supply chain, environmental considerations are taken into account and environmental declarations are made regarding products.

Over the years producers of packaging have reduced the amount of packaging required per pack by ‘thin walling’ and using stronger and more efficient packaging raw materials. Packaging companies are providing more emphasis on package design and collaboration with end users and consumers.

Emphasis is provided to design packaging that offers more strength and is designed for ease of use and to suit sustainably acceptable disposal methods.

In partnership with end users, producers are making more use of ‘intelligent packaging’.

The environmental impact of a package is between 2-5 percent of its life cycle impact of a food product. Therefore a good package conserves the efforts used in the manufacture of a food product.

Increasingly stringent levels of regulation are a constant reality for the food industry. How can packaging technology help producers to meet the necessary standards?

TL. As we all know, increasingly stringent levels of regulation are a constant reality for the food industry. All the strict regulations lead to the same goal: to improve and guarantee food safety.

At Shiner, all the packaging materials we provide, including the PVDC coated film, PVOH coated film and Acrylic coated film, can be used to pack the food directly (we have FDA , HCCP, REACH, Coneg and California 65 approval). While in the production process the entire workshop is enclosed and there is no pollution from dirt or any other substances.

For the packaging bags that need printing, all the printing oil we use is

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Tan Li has been working at Shiner International for over 15 years. As the CTO of Shiner, he has many patents and works to find new methods to improve efficiency. He is mainly responsible for the development of BOPP cigarette film, coated film and BOPP laser anti-counterfeit film and has received many awards from the central government. There is no other company in China that can produce his patented anti-counterfeit film.

water based instead of solvent based, which better protects the food and guarantees food safety.

KP. A safe package is achieved by following the EU Framework Regulation 1935/2004 for food contact applications. This is an important part of a European packaging company’s responsibility. It should also meet local regulations in other parts of the world.

“Looking at the environmental impacts of packed food over the entire lifecycle, it becomes clear that the primary environmental task of packaging is to protect the food it contains” Dieter Bergner An efficient hygiene management system is required for raw materials and the manufacturing of food packaging as well as a professional in house process control system. It is also important to provide an efficient pack that clearly supports product traceability.

DB. Huhtamaki continuously follows the regulations that have an impact on packaging and interacts with customers and third parties, such as independent food/food packaging institutes, to make sure that packaging corresponds to their needs.

How important is it that a packaging solution can adapt to the changing needs of food producers? What challenges can building in this flexibility entail?

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KP. During the design, manufacture and use, the package ensures the protection of the product and maintains its properties. It offers the product in an easy to use form and suitable pack size. It also accurately communicates the details of the product to the consumer. Hygiene factors are critical. The design of the package must be in accordance with the requirements of the ‘triple bottom line’ of sustainability. The packaging should also be designed for efficient, economical transportation, warehousing, merchandising and waste recovery once its task has been accomplished.

DB. Food producers need to properly understand the complete set of requirements placed on their product and packaging in its life cycle. Not only limited to the classical variables like quality, but also to an increasing extent to the sustainability performance of the packaging in different scenarios.

Huhtamaki as a packaging producer supports the establishment of a robust knowledge base and related tools allowing flexibility for simulating performances in different scenarios in order to provide valuable insight that can help food producers to separate facts from fiction when making decisions on how to best respond to stakeholder drivers.

“An efficient hygiene management system is required for raw materials and the manufacturing of food packaging as well as a professional in house process control system” Keith Pearson Product life cycles are shortening and our products are ready for this challenge. For example our DuoSmart containers: The light plastic cup remains the same meeting easy automation needs, while the cartoon wrapping can easily be altered depending on the content. This allows high flexibility in updating seasonal/promotional products while bringing the benefits of standardised size, packaging availability and high promotional possibilities.

TL. Right now, the truth is that as rising cost control has become a greater concern for many food producers, more and more companies in the food industry have to change their procurement strategies by having all of their packaging needs done at one place in order to provide cost savings benefits and controllable lead-time and logistics efficiency. In order to abate pressure caused by increasing cost, many world famous food companies switch to Asia looking for new suppliers of raw materials for their products. As one of the three existing manufacturing centres in the world, China is the ideal target.

Cheap labour cost and low raw material cost has always been advantagous.

As the largest coated film manufacturer in Asia, Shiner can provide services ranging from web film production, film coating and printing to bag making. Under Shiner’s model, the lead-time may be reduced by at least a month compared to the average period.

More than many other industries, the food business has to pay particular attention to the safety of its products. What can providers of packaging solutions do to assist producers in this area?

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DB. In the EU the regulatory requirements brought forward in the Framework Regulation, the GMP regulation and the specific measures such as the plastics directive with amendments together with relevant national requirements and guidelines like the CoE resolution for paper and board and the BfR 36 for materials and articles intended to come into contact with food, establishes the food contact regulatory framework for the packaging industry.

Huhtamaki as a producer of packaging solutions can support the food industry best by meeting these requirements without loosing operational flexibility. Supply chain cooperation and effective communication back and forth in the supply chain combined with long term commitments from all parties lays the fundament for competitively responding to the regulatory challenges limited not only to food contact issues but also what comes to the requirements presented by the REACH regulation and the regulatory framework for packaging and packaging waste.

Partnering with a packaging producer that recognises the regulatory drivers in the entire life cycle of their packaging and at the same being able to match these drivers with technological developments like source reduction, recoverability and an efficient sustainability footprint of the packaging must surely be the preferred provider.

TL. The packaging solution service Shiner can provide services ranging from web film production, film coating and printing to bag making. We can guarantee the safety of each process.

Web films are all produced in the enclosed workshop, preventing pollution from dirt or any other substances. For the film coating, we use water based premier instead of solvent based premier which could guarantee the packed food safety. The coated film has an excellent oxygen and moisture barrier and an outstanding aroma and flavour barrier. These packaging materials could extend the shelf life and protect the food from tampering, while for the printing service, Shiner uses water based printing oil, then the printing has no harmful side effects on the packed food.

“As we increasingly stringent levels of regulation are a constant reality for the food industry. All the strict regulations lead to the same goal: to improve and guarantee food safety” Tan Li Moreover, adopting advanced packaging technology could help the producers to guarantee the food safety. Shiner has adopted the new packaging systems: intelligent packaging, which enables a further extension of shelf life and monitoring of food quality and safety.

Intelligent packaging systems monitor the conditions of the packed foods to give information about the quality of the packed food during transport and storage.

KP. They must ensure efficient communication between the supplier of packaging and the end user. They should apply the requirements of regulations with efficiency and in a trustworthy manner. Finally they must commit to a culture of research, development and creativity. n

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SUSTAINABLE PACKAGING

THE TOTAL PACKAGE Natalie Brandweiner talks to Joachim Quoden about the importance of recycled packaging for a greener Europe, and the need for universal regulations.

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he bid to become green is apparent within every European member state, be it through, cutting down on carbon emissions, landfi lls or food waste. The recycling of packaging and the use of recycled materials within packaging plays an important role not only for business big and small, but for governmental authorities to set the green standard. However, creating universal regulation across the European continent is proving difficult.

PRO EUROPE is the organisation set up to address this. It was founded in 1995 by multiple countries – Germany, France, Belgium and Austria – who established themselves as the first four packaging recovery systems in Europe. Creating the foundations for an umbrella organisation, it has expanded to having 33 members from 33 countries. Thirty-two are located in Europe and one is located in Canada, due to the Canadian system have a similar legislation compared to Europe.

Managing Director Joachim Quoden is responsible for lobbying Brussels, speaking to the commission, parliament and other stakeholders, as well as networking between the organisation’s members and ensuring that the best practices are exchanged by organising working groups, workshops and meetings.

In asking what role the food industry plays in improving the amount of packaging that is recycled in Europe, Quoden explains that this is what defi nes the major difference between a producer responsibility system solution and a tax solution. “In both of these solutions, industry has to pay some money for the packaging,” he says, “but producer responsibility means much more. It means constant involvement.

“The big companies mostly do this; it’s difficult for the small ones. But the major companies, they have to constantly work on their packaging, often together with us, on an optimisation to avoid overpackaging and so on, and to ensure that the packaging can be recycled later on, perhaps to use recycled materials in making packaging. Nevertheless, we always have to have in mind that packaging is not done just for packaging, but to take care of the product.”

A recent study undertaken by the Renewable Energy Policy Project (REPP) highlights the problem of the UK’s food waste disposal: one third of all food produced in the country is wasted. “Sometimes we forget that there was a sense behind the packaging,” adds Quoden. The industry is recognising this problem and endeavouring to make it better – major companies and associations, such as CIAA and EUROPEN, are working alongside PRO EUROPE with a goal of improving the organisation’s common work. The advantage of PRO EUROPE working with these companies is that they are much more involved than certain political parties and much more influential in terms of the packaging recycling business.

He claims that the regulatory environment too often focuses on packaging as a sole problem, citing the media use of it as a “sexy topic”. It is an environmental problem but not the biggest problem, and not one that should have dominance. Avoiding packaging and providing means to recycle is highly important, but food waste is a much more pressing issue, and one too often ignored. He notes the number of illegal landfi lls still existing across Europe, but rejects the notion of it becoming a high-profi le issue. “It’s easier to speak in a bad way about packaging than to speak about problems like illegal landfi lls and dumping.”

“Oil prices will increase in the future again, which makes recycling much more attractive from an economical point of view” Public and private attitudes The attitude towards packaging recycling, and recycling in general, in Europe is changing – interest is becoming much more apparent on an individual level. It is now common for people to separate their packaging and recycle it accordingly; individual contribution to environmental benefits is viewed as a good thing. Educating the public about the importance of recycled packaging has been costly in both time and funds, but fortunately it has paid off.

Being more environmentally conscious is not only a matter of public interest. In a bid to create a greener image, larger commercial bodies are also adopting a pro-recycling approach. But is this an attempt to benefit from favourable public opinion or a real understanding of the company’s social commitment? Quoden believes it to be both.

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“It’s the marketing issue, but I think they unUnion, are reinforcing measures to promote derstand their social responsibility as well and so the recycling of packaging and limiting the they work on this,” he explains. “Very often, it’s amount of packaging that is used. Quoden interesting for them from an economic viewpoint advises that before the quotas for recycled as well – if they sort their packaging or the waste products are increased, a deeper look is needed in the shops, they pay much less than if they ask a into the figures and a greater analysis of the waste management company to take it away. Even environmental performance of each of the Eufrom an economic point of view, it’s more benefiropean countries is required. cial for them to behave in a good way.”

“If you look at the latest implementation Quoden continues with the benefits for from the European Commission, which is a the environmentally conscious private sphere, compilation of the answers of the member states, adding that there are all kinds of fi nancial beneyou see that every member state understands a fits for food companies in particular who support different thing for the same question. Now is the Green Dot the ideals of recycling. Less material equals less time to have a better understanding of how the The Green Dot is the license packaging, which equals less company spending, member states are implementing it and to ensure symbol of a European network of so companies being intrested in reducing and that every reported tonnage is a real tonnage. industry-funded systems for recycling optimising packaging is not a new thing. The “We want to harmonise and verify the way the packaging materials of consumer requirement introduced in recent years to pay for we look at things across the entire continent. goods. Consumers who see the logo waste materials via recovery organisations makes It’s very important that the commission is not know that the manufacturer of the the incentive even greater. only collecting data, but understanding what product contributes to the cost of However, recycling is still only a recent pheis behind the data.

It’s important, for those recovery and recycling. A green dot nomenon – costs remain relatively high. One of who are doing real recycling, to ensure that licence fee paid by the producers of the reasons for this is landfi lling, where often the this is the same level playing fi eld all over t the products finances the system; true costs are not paid. “Landfi lling is often subhe Europe.” fees vary by country and are based on sidised by tax money because the long-term costs the material used in packaging. The 2010 goals are not involved in the cost per tonnage,” explains system encourages manufacturPRO EUROPE’s big priority for the Quoden. “This helps if you have a landfi ll ban, ers to cut down on packaging upcoming year is to focus on increaslike in Germany, or if you have a high gate fee for as this saves them the cost ing the demand for recycled material. landfi lling. It makes recycling more competitive. of licence fees.

So far, China and India provide a reliOn the other hand, one and a half years ago, when able demand, but a stable demand is also the prices for oil and petrol were quite high, this needed from Europe. Quoden notes that this had a positive effect for recycling as well. Then it nee is one of the things that the organisation is requesting from the commiswas much more attractive to use the old stuff instead of using new stuff. sion as well as the individual governments, not only to make legislation Oil prices will increase in the future again, which makes recycling much and oblige the rest of the industry to follow suit, but also to behave in more attractive from an economic point of view. the same way.

“Th is is the good thing about producer responsibility schemes. If the “The authorities are one of the biggest purchasers in Europe. If they prices for the material are high, then the producer responsibility schemes would commit themselves to green procurement, this would help the lower their fees. On the other hand, if, like at the moment, the prices are whole market. For me it’s difficult to understand that someone is asked low, the income from selling the material is low and we have to increase to behave in a good environmental way, but the same one who is asking the fees.” is very often not doing this. Not only buying paper with recycled content, but also ensuring that the companies from whom I am buying fulfi ll their environmental obligations.

“Norway is a very good example, because there the government has signed an agreement saying they only purchase in a green way.

They take care that the companies they buy from fulfi ll their obligations and so on. Th is is how all the authorities in Europe should behave.

Then we could increase the demand for recycled materials and lower However, prices are never constant, unlike taxes, which prove to conthe costs for the industry and the consumer. Th is is the way forward,” sistently increase. Even if costs are going down, the tax stays the same. An he concludes. advantage of producer responsibility is that if more money can be made

“Landfilling is often subsidised by tax money because the long-term costs are not involved in the cost per tonnage”

from selling the material, then the end cost can be much lower. Recycling is proving to be economically sustainable as well as environmentally.

The individual European governments, as well as the European

Since 2006, Joachim Quoden has been Managing Director for PRO EUROPE the umbrella organisation of 28 packaging recovery organisations seated in 27 European countries and in Canada.

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NEXT BIG THING

New Year’s revolution The food processing industry is set for some major changes in 2010 and beyond. Brian McCluskie outlines some of the biggest coming developments.

What is the biggest emerging trend in meat and food processing?

Brian McCluskie. From a customer point-of-view, the topic that has gained the most momentum recently is increasing productivity and yield. And while today’s tough economic climate has sharpened interest in this, it is more related to the meat processing industry evolving from a ‘traditional’ way of thinking to a sophisticated business environment where disciplines like TPM (Total Productive Maintenance), Lean manufacturing, Six Sigma (minimising variability in processes) and OEE (Overall Equipment Effectiveness) take leading roles.

“One of the few opportunities left to improve profitability is to increase productivity and yield in the plant”

want to mention x-ray scanning in combination with cheese and meat slicing. We have developed a system that has significant cost benefits for slicing cheese and bacon, or any product that has an inconsistent density along its length. Products like Swiss cheese or natural bacon are difficult to slice into exact on-weight portions so costly giveaway is unavoidable.

What makes this x-ray approach so different?

BM. Optical scanning systems are typically used for making portion weight adjustments when slicing irregular products, but they only take the surface area of the product into consideration. While this approach compensates for holes or irregular profiles, it has its limits. It is possible to get even more accurate results by looking into the depth of the product. Our x-ray system actually looks at the weight distribution and material density along the length of a cheese block or piece of bacon. The results from trials are extremely positive.

That’s something big for the future, but what about now?

How is this reflected in the CFS product philosophy?

BM. Several years ago, CFS committed itself to ‘lifecycle performance’ as a driver for product development. This embodies increasing yield and productivity as core principles, and the most convincing way to demonstrate this to our customers is to show how we help them lower their unit cost. When you consider purchasing of raw materials leaves little room for negotiation and endcustomers like supermarket chains dictate the sale prices, one of the few opportunities left to improve profitability is to increase productivity and yield in the plant.

Do you have product examples that reflect this?

BM. We have many examples, like standardisation systems that use fat analysis to help our customers reduce the amount of expensive lean meat they give away, and defrosting systems that virtually eliminate drip-loss, which is weight loss that occurs as the meat thaws. But to keep within the ‘next big thing’ theme, I

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BM. Actually not so far in the future, and rest assured 2010 will be an important year for innovative CFS product launches. But to give an example of something that already increases yield and productivity, then CFS CostFox is an ideal candidate. This software, which runs on our slicers and packaging equipment, provides real-time performance feedback that allows operators to optimise the machine on the fly. It also informs what to adjust to increase productivity. Keeping the operational ‘uptime’ as high as possible – and our machines achieve 98 to 99 percent – is an excellent way of lowering the cost per unit, yet it is often neglected or even ignored. CFS helps its customers tap this potential.

Brian McCluskie is Chief Executive Officer of CFS, a leading manufacturer of food processing, slicing and packaging equipment and solutions. CFS serves the meat, poultry, fish, seafood and cheese industries, and has manufacturing plants in the Netherlands, Germany, Denmark and the USA. CFS supports the performance of its customers throughout the lifecycle of the equipment by helping them improve output and reduce operating costs.

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CONVEYORS RT_26nov09 16/12/2009 10:41 Page 62

ROUNDTABLE

Poetry in motion NGF talks to Brian Harbison and Ray Tomsett about the role of advanced processing technologies in keeping things moving, maintaining proďŹ tability and keeping standards high.

Increasingly stringent levels of regulation are a constant reality for the food industry. How can packaging and processing technology help producers to meet the necessary standards?

Brian Harbison. All processes have variables that need to be controlled within an acknowledged set of specifications. Within the food industry, stringent levels of regulation set specifications to maintain the health and well-being of consumers. However, traditional conveyor types, which might employ chains, plastic and PU belts, are still being used, despite the risk of contaminants entering the food chain. The food industry has continually looked to automation to control the process variables within the regulated limits. Belt Technologies is a leader in solving automation problems across all industries, including the food industry. The use of the steel belt provides the food industry machine designer with a reliable method to consistently control process variables within a tight range that ensures product quality to meet these ongoing requirements.

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Ray Tomsett. As a provider of processing belting and conveyors to the food industry, Wire Belt constantly monitors and evaluates its product against current and incoming regulations. We have worked with test sites and universities in the UK and the US to measure the hygienic credentials of the product so that we can provide the best advice to our customers. To help us comply with the BRC and Materials in Contact with Food requirements, we use our ISO9001 procedures to ensure traceability so that the appropriate level of certification required by our customers is provided to support their needs, including USDA approval certification for the majority of our belting products.

In an increasingly competitive market, improving and maintaining profitability is extremely important. What role can reliable and advanced processing technology play in this?

RT. The increasing levels of regulation are adding to the cost of capital equipment due to additional performance and administration requirements. It is

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THE PANEL RT. Capital equipment used in food processing is expensive primarily due to the materials and quality of workmanship required. It is therefore extremely important that the equipment is flexible and can be reused or reconfigured. Wire Belt has traditionally manufactured conveyor units that the customer can reuse in new processes. More frequently, customers are running batches of more than one product through a process onto a conveyor and require the conveyor to have a set-up provision to easily redirect the product to a different zone or line. The technology to provide automated and intelligent conveying systems already exists and it is possible to interface a conveyor that responds to the processing machine commands. However, our experience is that customers rarely require this level of sophistication.

possible to produce a conveyor that complies with the most stringent hygienic standard but customers would not be prepared to pay the cost unless it was for a very high-risk process. Suppliers have to provide a solution that is relevant to the customer’s process, complies with the current and appropriate interpretation of the standards and is cost effective.

Wire Belt has worked to reduce the capital cost of its conveyors by simplifying and reducing the number of parts and this in turn reduces the customer’s ongoing maintenance and cleaning costs. As the majority of short belt-life problems and belting failures stem from incorrect set up and poor maintenance, we also help our customers reduce cost by providing advice and training.

“Increasing levels of regulation are adding to the cost of capital equipment” Ray Tomsett BH. Automation is vital to improving profitability and quality. The steel belt has proven itself to increase productivity across all industries, including food processing. The key characteristic of the steel belt that makes it a leader in advanced processing technology is its ability to be customised for the harsh environments seen in the food industry. The steel belt is well suited for elevated and/or freezing temperatures, will not absorb bacteria and can be cleaned with chemical or ozone processes. Most alternate solutions to automating food processing cannot stand up to these difficult environmental parameters in the same costeffective manner.

Brian Harbison is the International Business Manager with Belt Technologies Europe, subsidiary of Belt Technologies Inc. in the US. He has attended and exhibited at many prominent European food shows such as AnugaFoodtec and Interpack, witnessing a massive growth in demand for steel belt use in food packaging and processing applications.

Sanitation, hygienic standards and reducing downtime – while improving line efficiency – have caused many companies to upgrade their conveyor lines. What measures has your company taken to meet these ever changing demands?

RT. The majority of conveyors supplied by Wire Belt use Flat-Flex style stainless steel wire belting that is hygienically superior and more easily cleaned than other styles of metal and plastic conveyor belts. The only factor driving the use of less hygienic belting

“Automation is vital to improving profitability and quality” Brian Harbison

has been durability. Therefore, over recent years Wire Belt has invested heavily to improve the quality of standard wire belting and doubling its life expectancy. We have added stronger belts to our How important is it that flexibility is built into a range with the XT and Compact Grid products Ray Tomsett joined the Wire Belt Company in 1995 as Technical Manager and is responsible conveyor solution from the beginning? How is it while retaining the superior hygienic qualities of for all technical, quality and engineering possible to ensure that technology can adapt in wire belts. To help customers benefit from the ease functions. Previously he worked as Chief Engineer and Engineering Manager for a line with the user’s needs? of cleaning, longer life and reduced downtime, we company specialising in engineering solutions and bespoke special purpose machinery.

BH. It is best to know the range of product the cushave improved the level of our customer support, tomer will be conveying so flexibility can be deadvice and training. signed into the conveyor. A steel belt conveyer has the ability to operate over BH. Material offerings have not only reduced downtime but also enhanced a wide range of parameters, whether that be temperatures, speeds, load or hygiene and sanitary properties. With the multitude of alloys available, Belt chemical resistance. Knowing these parameters or the range of parameters Technologies can tailor the belting to meet almost all sanitary requirements helps the designer identify the most cost-effective materials and mechaniin a food processing application. Combine this with our ability to apply wear cal components or apply unique coatings to the belt surface to meet the end resistant and non-stick coatings to the belt surface, process line efficiency imuser’s requirements. proves significantly against competing technologies. n

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ASK THE EXPERT

COUNTING THE COST Per Junesand explains the importance of knowing, controlling and reducing costs when buying important equipment.

E

ver since Revent invented the very fi rst Rack Oven in 1958 ‘Total cost of ownership’ (TCO) has been a guiding star for us. A baker faces many different costs – installation, service, energy, rejects, packaging, etc – that need to be considered. Knowing, controlling and reducing these costs not only affects the annual result but should also be evaluated when deciding upon which equipment to use.

Over the years we have recognised the value of TCO since many of our customers return to buy yet another oven when expanding or remodelling. In recent years we have also noticed how increasing numbers of large multinational corporations involve their service department at an early stage of the investment project, together with our technical expertise, in order to analyse the different costs of ownership.

Installation and service Of course the cost of labour for installing the oven matters but the possibility to reduce downtime or create flexibility for the construction team might be as important. Our goal is that customers should be up and baking the same day.

Speaking about a product’s quality at the same time as the need for service might seem a bit contradictory but even the best trucks sometimes need a drop of oil. Our experience though shows that service and spare part costs differ significantly. When comparing different brands over a longer period (five to seven years) the cost over time, including the oven, service and spare parts, can vary more than 25 percent. Add to that the downtime and the purchase price becomes secondary.

Energy and durability Today’s energy consumption isn’t only a cost. It has also become a global threat to our planet. To measure an oven’s energy consumption over a life cycle isn’t an easy task and there are many aspects and situations to study such as durability and usage of material for the oven, the efficiency of the energy source, baking properties, production efficiency etc. One interesting method is performed by Fisher-Nickel Inc. But at the end it must be the total energy used that matters. Add to this the output of CO2 and you are better prepared next time when deciding on which oven to buy.

When investing in an oven one should at least be able to operate

the oven 50 percent longer than the normal number of years used in the capital investment appraisal, regardless of whether your bakery works three shifts. Today one should not have to settle for less.

Production efficiency A nice crust and good volume together with an even bake doesn’t only save costs and increase capacity. It creates satisfied and loyal customers. The oven’s recovery time and its influence on production efficiency have been known for many years but it is still significant to evaluate.

Another important property is the interface i.e. the control panel, which has always been a technical challenge for the oven industry in trying to come up with a reliable, functional and simple solution.

An old technique that has been dusted off and nowadays produced to a more acceptable price level is vacuum cooling technology, which goes in line with cutting the baker’s costs even though it affects a wider range of the total production process. The vacuum-cooling system shortens the total baking time by 20-30 percent. Before the products are fully baked in the oven they are put into the vacuum chamber where the bake is completed under vacuum and the heat lowered to ambient temperature, reducing the cooling time. The technique also increases the freshness, and therefore the shelf life, of the product by up to twice the normal time.

Other positive effects are a lower need of freezing capacity and cost savings in transportation.

More than quality To assist and service our customers in their everyday work, our development programme always strives towards improved reliability, top quality of the fi nal product – the bread – and lowest possible TCO. Th is is what we mean when we speak about “More Than Quality”.

Per Junesand is CEO and President of the Revent Group of Companies. He has a wide professional experience from different leading positions in the traditional production industry and has worked over 20 years in international business and management.

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ROUNDTABLE

WEIGHING IT UP NGF finds out how checkweighers can help to improve efficiency, cut costs and provide increased safety and quality.

What key features should a checkweighing solution possess if it is to provide maximum value to a food producer?

Ingolf Latz. Every application is orientated by product handling and accuracy, as these two factors will play the biggest part in results generated.

Th is sounds logical but in reality, the majority of checkweighers available on the market are made to a single specification and do not provide the option to amend conveyors and other components, in reference to requested terms of working and the given working environment.

For a checkweigher manufacturer to have its own in-house design team, is therefore most beneficial to the end user. Using the right weight measuring technology guarantees a fast Return on Investment (ROI).

OCS only uses the principal of Electromagnetic Force Restoration (EMFR). Giving two major advantages: no material fatigue, which you would normally fi nd with strain gauge based checkweighers, and the reproducibility is significantly better with the weighing of each product becoming much faster. Dedicated soft ware will provide the tools to maximise this benefit.

Gunter Schilpp. In addition to the normal prerequisites, which include a high degree of accuracy, high reliability and a robust design, a checkweigher should include four main features for the food industry. The fi rst is a correct environmental and hygienic design in compliance with

international food processing regulations and guidelines. The ingress protection value of all components should reflect the environment in which the checkweigher is deployed; lower levels for dry environments and up to IP69k for harsh environments with regular high pressure washdown cycles. The correct environmental design enables quicker cleaning routines, saving time and costs. Secondly the system should have flexibility in product handling, allowing uncomplicated deployment in different packaging lines, simplicity of integration into existing packaging lines and the ability to be quickly adjusted, allowing a wide range of different products to be weighed – thus minimising downtime on product changeovers. The third key feature should be a userfriendly HMI and service friendly design. An intuitive, clear and easy to understand multilingual menu system on a large and easy to read touchscreen monitor reduces operator errors and saves time during product changeovers, thereby minimising downtime. Clear open lines of sight to components requiring regular service and easy access to all wear parts, including toolless conveyor belt replacement, both reduce planned service downtime events. Finally the checkweigher should have extensive connectivity solutions to enable the availability of all production data and statistical information in real-time within the local network, giving production and quality managers access to review all relevant data from their desks. Th is allows for rapid response to problems and facilitates preventive measures, thereby minimising downtime.

Dieter Conzelmann. Bizerba is not limited to the sale of standard products; we design individual system solutions according to specific customer requirements. The new checkweigher generation CWE was developed in order to optimise quality assurance for packaged products. Our application engineering team ensures that the CWE is flexibly integrated into already existing production lines. It can be connected directly to cutting machines, fi lling machines and multiple-head scales. Thanks to the modular design, the belt size, transport height and direction of travel can be varied.

If the customer also uses the soft ware _statistics.BRAIN, then an efficient system solution is created, which can be made transparent for the production management of all processes – whether in incoming or outgoing goods or in production. The requirements applied to the hygiene design of the checkweigher are also many and varied. In order to be able to save on costs, it must be possible to use the checkweigher in both dry and ‘non-cleaning’ areas and it must fulfi l ‘washdown’ requirements. We are constantly working on concepts to make cleaning in hygienic zones simpler.

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THE PANEL

After studying industrial engineering, Ingolf Latz completed his MBA and started his career in sales. He joined OCS Checkweighers in 1999, where he has succeeded within the company in various positions. He currently holds the position of International Sales Director, which involves managing global sales for OCS Checkweighers.

Gunter Schilpp is the Marketing Manager of METTLER TOLEDO Garvens responsible for global marketing activities in the field of checkweighing applications and solutions. With over 14 years experience in the packaging industry he is responsible in transforming complex technical issues into clear customer value messages, global solution launches, market strategy development, research and checkweighing development collaboration as well as brand strengthening and marketing strategy creation.

Dieter Conzelmann is Director Industry Solutions Market and President of Bizerba Solutions Inc. He studied information technology in Stuttgart/Esslingen and began his employment at Bizerba GmbH & Co. KG in 1989 as a development engineer.

Since 1999, he has been responsible for managing the Industry Solutions division, and since 2008 he has also been responsible for the business management of Bizerba Solutions Inc. in the USA.

Steve Jones is General Manager, Product Group Marketing for Ishida Europe Ltd. Initially from a electronic engineering background he has extensive experience in product management and marketing of ‘high tech’ capital equipment to diverse sectors such as aerospace, semiconductor manufacturing equipment and more recently food packaging.

Steve Jones. In addition to standard checkweigher features such as accuracy, ease of use etc, the value of a checkweigher can be extended from primarily a legal reporting requirement, to a complete packaging line optimisation tool.

Th is value extension is achieved through application of information technology, enabling the checkweigher to be used as a ‘packing line’ data

capture system. The information produced by the checkweigher can automatically populate a ‘management information system’ (MIS); this MIS directly reports performance statistics to decision makers who can instigate corrective action as appropriate.

One such system, the Ishida Data Capture System (IDCS) provides the customer with the option to capture and analyse data from up to 100 packing lines simultaneously, enabling the performance of any individual line to be constantly monitored and the ability to compare line efficiencies throughout the packing hall.

To ensure that the output of this MIS can be easily accessed the IDCS architecture is similar to that of a website. The end result is that any network user who can access the central IDCS server can access the full power of the in-built reporting. Th is feature even enables managers away from the plant to access line performance data through a suitable VPN link.

“In reality, the majority of checkweighers available on the market are made to a single specification and do not provide the option to amend conveyors and other components” Ingolf Latz In our tough business environment, keeping costs under control is absolutely vital. What role do checkweighing solutions have in helping food producers to remain as profitable as possible?

GS. One of the most important savings – or ways of keeping costs under control – can be achieved when connecting a checkweigher to a fi ller to reduce overfi lling or unnecessary product giveaway thereby saving valuable raw material. Feedback to fi ller control soft ware can ensure that negative fi ller tendencies will be corrected by signalling the required adjustment to the fi ller, so that fi ll levels remain within the acceptable tolerances – or even ensure that the mean fi ll level is kept as close to the target weight as possible.

Furthermore, a checkweigher can be used as a central data capture system to improve quality and profitability through detailed production analysis, records for security, compliance and documentation, ensuring that processes are under control.

The fact that a checkweigher is very often used as the fi nal piece of equipment in a production line makes it ideal for capturing valuable data when calculating OEE (Overall Equipment Effectiveness).

DC. Whether it is at goods incoming, production or goods outgoing, no company in the fi lling industry can afford to over or underfi ll. Underfi lling is forbidden by law and also damages the company’s image. Even slight overfi lling can lead to substantial losses of material.

Companies that have, up to now, merely carried out random tests with small scales, can use the checkweigher to ensure that no over or

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underfi lled packs leave production. It weighs and classifies packs according to freely defined or legally prescribed weight classes. A detector that recognises metallic impurities can be incorporated as an option. In the case of weight deviations or impurities, pushers remove the deficient packs.

“All checkweighers should be preprogrammed with the allowable weight deviations and tolerances as laid down in local packaging regulations” Gunter Schilpp Production lines must also work with a maximum throughput.

Combined with the soft ware _statistics.BRAIN, the production management can optimise processes and produce long-term statistics. In addition to FPV-conformant random testing checks, the soft ware offers time-related statistics on materials, machines, batches, layers and alarm signals. Trends can thus be swift ly identified. Due to consistent optimisation of the processes, costly over-fi lling, reworking and rejection are reduced. Thanks to unique teaching routines, products can be started independently at any time without subsequent testing by the weights and measures authorities. The advantages are clear: targeted cost savings, high customer satisfaction, fewer downtimes, more transparency and growing revenue.

SJ. From a user’s perspective an effective average weight packing operation is the ideal scenario. By using the checkweigher as an MIS data source and making the integral reports, graphs and tables easily and directly accessible to management staff, immediate corrective action can be taken to address efficiency issues as they arise. The ‘real-time’ aspect of the MIS could depict excessive giveaway, which could be automatically addressed upstream by use of checkweigher feedback, (dependant upon upstream dosing equipment), or if there are efficiency problems caused by unscheduled downtime the root cause can be identified and addressed.

The Ishida IDCS can be configured to monitor OEE with individual acceptability thresholds set by the user for OEE and the three contributory operational metrics (availability, quality and performance). If the line operates at a level below the defined user limit, this is immediately reported.

This information clearly puts the user in full control of their process.

IL. Checkweighers take on several roles. The most evident is to check the weight of individual products and to detect faulty weights for reject. Each weight reading is then recorded and used to build a comprehensive production run statistic. Th is is a fair and impartial base used to verify the quality of the production process itself; for both efficiency and economy.

The benefit to the end user is clear: the better the accuracy (weight reading) of the checkweigher the more precise and reliable is the interpretation of the result. If food producers combine these weight readings with

a mean value regulation (feedback to the upstream fi lling machine) they can significantly reduce the unavoidable product give away to a minimum. Such a combination will pay off quickly in production. Furthermore the manufacturer now has verification of their production process, which will help to build trust with the big supermarket chains and to safeguard their reputation at the same time.

Quality control and safety are of paramount importance in the food industry. How can checkweighers help to guarantee that all products meet the necessary standards?

DC. Depending on the packing, environment and customer-specific requirements, the system reaches a belt speed of up to 120 metres per second in a weighing and measuring range of 10 grams to 15 kilograms. Combined with the soft ware _statistics.BRAIN, the production management can process the data centrally. In the case of deviations, the respective employee on-site can intervene directly in the production process, thereby optimising the throughput and reducing disagreeable reworking and the proportion of rejects. An additional discharge device can directly reject from the production products that are under or over-fi lled. Data logs can be automatically saved, sent or manually called, in accordance with the EU regulation 178/2002 for the traceability of goods. All data can be printed out and saved onto a memo-card or USB stick. This interruptionfree documentation of the weight values makes the checkweigher an ideal quality assurance instrument for the foodstuff industry.

SJ. The concept of quality control is central to checkweigher use. With the option of setting the system to work in average weight mode the system automatically ensures legislative compliance. To extend the functionality to include contamination detection requires integration of a metal detector or X-ray device.

In addition to combined checkweighing/metal detection/X-ray capability some retailers also specify reject confi rmation. The concept of reject confirmation is fundamentally to ensure that packs which are not fit for sale are guaranteed to be rejected.

“Constructed from stainless steel in accordance with the latest machine guidelines, protection class IP 65, the CWE fulfils the high requirements for maintenance, safety and handling” Dieter Conzelmann Systems requiring reject confi rmation have numerous integral fail safe features (bin full, failure to reject, low air pressure to name but a few), if any of these conditions are activated the system stops immediately. To constantly validate these features a ‘built in self test’ capability is included, ensuring that critical safety measures are functional, for example a test for bin full and failure to reject.

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IL. Once the checkweigher has been designed, built and installed correctly, it will operate 24/7 without complaining or getting tired. In other words, it will weigh each product and complete a 100 percent inline check of production. The food manufacturer can set specific limits, or work to the legal requirements with any pack not compliant to these limits being automatically rejected. But OCS checkweighers can do much more. For instance, when consecutive errors occur the checkweigher can give an alarm for the operator to check the production process or production can be set up to completely stop until further investigation is carried out.

Other than spot checks, the food producer has real-time information at hand, which helps to avoid time and cost intensive follow-up inspections.

A checkweigher can also be combined with a contamination inspection (e.g. metal detector or X-ray scanner). Th is would be space saving and links two product inspections into one process (with two different rejections) but one statistic.

IL. Innovative technology is the basis for creative solutions in allowing reliable and well performing checkweighers. At OCS we have developed our own innovative Weigh Cells that are second to none. OCS is proud to have total control over the weighing process at any time and circumstance.

Therefore we can concentrate on product handling, which we believe comprises of an 80 percent success rate in achieving precise checkweighing.

Speaking about ownership of key technology, we have developed in-house our own servo drives driving our own patented conveyors built absolute stable and in weight saving construction. This system is controlled by our own industrial PCs. As a consequence we are also owners of a long lasting spare parts supply – another safeguard to protect the investment.

For the future we see an even stronger demand for high performing checkweighers that are built to support increased efficiency levels and capable of handling new product packaging designs. At OCS we welcome future opportunities as we have the expertise and equipment to provide the right solution.

“From a user’s perspective an effective average weight packing operation is the ideal scenario” Steve Jones

GS. All checkweighers should be pre-programmed with the allowable weight deviations and tolerances as laid down in local packaging regulations. As soon as a new product is selected then the checkweigher will automatically calculate the zone limits for these products to guarantee that no out-of-tolerance products are allowed to pass. The checkweigher must also comply with all local Weights and Measures regulations and be capable of being officially calibrated in respect of weight or volume measurement depending on the products being produced.

Newer checkweigher models are also available in combination with metal detectors and X-ray systems. These combination systems guarantee that foreign bodies are readily detected. In all checkweighing and combination systems the sensitivity, accuracy and reliability of the system are paramount in ensuring the best quality and safety of all products produced.

How is innovative technology making checkweighers more efficient? Do you foresee any major technological developments in the near future?

JS. In considering how ‘state-of-the-art’ technology developments can be applied to benefit checkweigher users, key areas will be increased throughput, improved accuracy, simplified user interfaces and further extension of the use of end-of-line data capture to optimise the overall process.

Specifically it’s likely that enhanced performance digital load cells, extended use of forced balance techniques, application specific fi ltering algorithms, more touch screen technology and sophisticated mechanical engineering will enhance the performance of today’s machines to meet the challenges of the future.

In association with engineering enhancements; advanced materials and manufacturing processes will lead to more flexibility in provision of customised conveyor sizes and simplified high-speed reject stations.

Finally, the checkweigher ‘value extension’ opportunity should not be under estimated. Positioned towards the end of the packing line, it is ideally located to report upon full line performance.

GS. Innovative new technology advances are leading to the production of better quality and higher precision weighing systems through the improvement of construction materials for motors, conveyors, electronics and weighcell technology. The checkweighing manufacturers with large R&D departments are much better able to take advantage of these advances.

I foresee three major technical advances in the near future. Firstly in the field of weigh cell technology with higher sample rates, better vibration compensation and higher resolution for faster and more accurate weighing. Secondly, advances in central data capture solutions and connectivity to OPC (OLE for Process Control) servers and ERP (Enterprise Resource Planning) systems. The third area of technical innovation will be the intelligent inclusion of additional components including metal detectors and X-ray systems for greater product safety, track and trace marking and verification equipment as well as RFID.

DC. The handling of the checkweigher is extremely simple: the operator sees the current belt speed of up to 170 metres per minute on a touchscreen, as well as a histogram of the last n-packs and their Gaußian distribution. In the case of deviations, the employee on-site can intervene directly in the production process. Due to the CWE multi-display concept, several control units can be set up at different points on the production line, as remote indications for example.

The CWE line is a modular building-block system that adapts to the specific requirements of the already existing production line, such as with different belt sizes at appropriate transport height and direction of travel.

Constructed from stainless steel in accordance with the latest machine guidelines, protection class IP 65, the CWE fulfi ls the high requirements for maintenance, safety and handling. The belt body and belt rapid-change system ensures quick and easy cleaning. We are constantly working on concepts to make cleaning in hygienic zones simpler. We are also further developing the integration of additional components: such as the incorporation of a line divider, a line converger, efficient rejection systems and other test systems like metal detectors and X-ray scanners.

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NUTRITIONAL LABELLING

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The Inside story As consumers become more aware of the need to make healthier choices when it comes to food, NGF asks to what extent nutritional labels are helping them to understand what goes into their food.

The

utrition labelling is an keyhole symbol psychology, nutrition, economics and important way of inThe keyhole is a food label that marketing to retailers, SME representaforming consumers identifies healthier food products within a tives and not-for-profit organisations. about the nutritional product group and helps consumers to The consortium’s benchmark revalue of foods they are purchasing identify healthier options when buying search audited the penetration of nuand consuming and ideally they food. Foods labelled with the keyhole tritional information on food labels in should help them to make healthier symbol contain less fat, sugars and more than 35,000 products across food choices. In Europe, it is not comsalt and more fibre than food Europe’s EU 27 member states and pulsory to provide nutritional informaproducts of the same Turkey, in order to determine how nutrition on food products, unless a nutrition or type not carrying tion information on food labels can affect health claim is made. the symbol. For dietary choices, consumer habits and food-reDespite this, nutrition labelling has beexample, bread labelled lated health issues. come more and more widespread in Europe. with the symbol contain The European Food Information Council But do consumers really notice these labels more dietary fibre and (EUFIC) plays an integral role in FLABEL and and do they understand them? A recent EU whole grain but less fat, salt conducted the first research studies of the research project, FLABEL (Food Labelling and sugars than bread not project, aimed at determining consumers’ to Advance Better Education for Life) carrying the symbol. exposure to nutrition information on food looked into this exact question.

The keyhole was established labels in Europe and identifying the main FLABEL, a three-year project that in Sweden in 1989 and has now types of labels used (see graphic). began on August 1, 2008, is the first EUbecome a common Nordic label for In conducting its research, FLABEL funded research programme specifically healthier food products in Denmark, selected three retailers from each of the focused on nutrition labelling. The Norway and Sweden. The Swedish 28 countries: one from the top five marFLABEL consortium is made up of 12 National Food Administration has ket share, one retailer as a consumer partners from eight countries ranging registered the keyhole as a trademark and cooperative, and a discounter. A physfrom academic experts specialising in the labelling system is enforced through a ical audit was then carried out on all regulation in all of the three countries.

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Result of the FLABEL research 30 seconds programme average time for a consumer to select a product

11,000

total consumers surveyed

85% of products have nutrition info. on back of pack 48% of products have nutrition info. on front of pack

95%

are aware we should eat more fruit and veg

70%

45%

know we should consume less calories

are aware we should eat more Omega 3 fatty acids

73%

are aware we should eat more whole grain

68%

answered correctly that children need fewer calories than adults

67%

are aware we should avoid saturated fats

46%

know how many calories an average active adult needs

65%

are aware we should eat more fibre

60%

are aware we should eat less fat

products, which were split into five categories: sweet biscuits, pre-packed ready meals, carbonated soft drinks, breakfast cereals and yoghurts.

The findings show that on average 85 percent of products contained nutrition information on the back of the pack, ranging from 97 percent in Ireland to 70 percent in Slovenia. The average for front-of-pack nutritional information was 48 percent – the highest being the UK with 82 percent and the lowest being Turkey with 24 percent.

The results also note that the most popular way of displaying nutritional information regarding the composition of food products is either

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in tabular or linear format, particularly on the back of the packs.

Information on the front of packs, especially GDA information, was most prominent in the UK at 60 percent and least prominent in Turkey, with a mere five percent.

Nutrition claims on the front of packs averaged 25 percent penetration and 20 percent for back-of-pack. The highest penetration was in Portugal, Ireland and the UK and the lowest was in Lithuania, Bulgaria and Estonia. Similarly, Ireland leads the way with the highest penetration of health claims.

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EXECUTIVE INTERVIEW

Making the grade Colleen Flanagan explains how grade lubricants benefit today’s food manufacturing companies.

What are the key benefits for food manufacturers in using food grade lubricants over traditional solutions?

Colleen Flanagan. One reason food processors switch is safety. By switching to food grade lubricants, processors can have peace of mind knowing that they’ve taken steps to minimise the risk of contamination. Petro-Canada’s food grade approvals are extensive, including, but not limited to H1 registered by NSF International, certified by Star K for use in the preparation of kosher food, certified Halal by IFANCA. Selected products also fit perfectly in HACCP and GMP plans.

PURITY FG with Microl is a new generation of lubricants featuring the first NSF registered H1 lubricant with EPA registered antimicrobial preservative protection available.

Microl was developed to inhibit the growth of microbes in the lubricant. PURITY FG with Microl is available as a grease, hydraulic or gear fluid and is the first food grade lubricant on the market that is fully compliant with both the US Food and Drug Administration (FDA) and EPA regulatory requirements.

What features and attributes should manufacturers look for when selecting food grade lubricants?

CF. Just like with all lubricant decisions, food manufacturers should carefully do their homework and find the right food grade lubricant for their specific applications. They should take into consideration the lubricant’s performance features and key advantages, such as fluid life, wear protection, temperature ranges and antimicrobial protection. They must also ensure that the lubricant is NSF registered and is fully approved, by governing bodies, for use in and around food processing areas.

There are various applications in food processing plants. It’s very important that manufacturers find the right lubricant for the application.

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It’s the job of lubricant manufacturers, such as Petro-Canada, to offer a variety of products that meet the demands of every application. At PetroCanada we pride ourselves in offering a full solution. We carry a complete line of industrial lubricants suitable for ancillary use in food processing plants.

Our food grade lubricants deliver the productivity benefits needed throughout food processing plants, helping processors reduce the risk of contamination and cut down on costly lubricant inventory. In addition, the performance of our food grade lubricants exceeds many of the conventional lubricants on the market today. Food processors know what’s best for their specific operation and application.

That being said we encourage food processors to really weigh their options, look at the facts and ask questions to see exactly how switching to food grade lubricants can positively influence their operation.

improved protection and lower overall maintenance costs. The food industry presents some unique challenges for lubricants. The demands of increasingly harsh operating conditions and stringent safety restrictions can be a tough balance, but by using premium food grade lubricants that balancing act is made easier. The ROI of using premium food grade lubricants can be demonstrated through reduced downtime, less re-greasing, less product use and reduction of the risk of contamination.

What different applications can food grade lubricants be employed in? Do they offer versatility and flexibility?

CF. PURITY FG includes lubricants for compressors and vacuum pumps, hydraulic fluids and light transmission lubricants, high-performance transmission lubricants, white oils, trolley fluid, multi-function aerosols, greases, light and heavy chain lubricants as well What are the cost as heat carrier oils. These prodimplications of selecting ucts harmonise perfectly with food grade lubricants? Do Hazard Analysis and Critical they offer good ROI for Control Points (HACCP) and manufacturers?

Good Manufacturing Practice Colleen Flanagan is Category Manager (Food Grade CF. There are incremental (GMP) plans, as all the lubriLubricants) at Petro-Canada. costs involved in manufacturcants conform to the requireShe has over 20 years of experience in the oil and ing food grade lubricants inments of the NSF H1, and are lubricants industry, the majority of which has been in cluding the use of only FDA certified for use in kosher and the downstream sector with approved ingredients, hanhalal food manufacturing. In Petro-Canada. dling and packaging in a addition, the lubricants have white room and the use of aplong-lasting protection against proved food grade packaging materials. rust and high levels of resistance to air, water and Manufacturers may think that all food grade the auxiliary products found in the food industry. lubricants and all conventional mineral oils are Environmental efficacy is another factor in created equal. However, some high-grade food using food grade lubricants that benefits today’s grade lubricants, such as PURITY FG, have enfood manufacturing companies given that a large hanced performance when compared to nonnumber of food grade lubricants are both nonfood grade lubricants, which can result in toxic and inherently biodegradable. n

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FEATURE

LASTING

REFRESHMENT Muhtar Kent, Chairman and Chief Executive of the Coca-Cola Company, explains why sustainability is so vital for the drinks giant.

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W

e’re just at the beginning stages of what I believe will be an era of unprecedented sustainability innovations. Over the course of 123 years, the men and women of the Coca-Cola system have built one of the world’s most recognised and valued brands. In fact, today, Coca-Cola is the secondmost universally recognised term on the planet. Only the term ‘okay’ is recognised by more people around the world.

The strength, the resolve and the sustainability of our brand is directly related to the social license that we have earned from billions of consumers around the world over all these years. It’s an honour and a responsibility we don’t take lightly and which we will never take for granted. In today’s connected global economy and interwoven social networks, a brand with 123 years of credibility can be discredited – and even destroyed – in a matter of 123 seconds.

I would contend that as business leaders there is absolutely no responsibility that is more important for us to manage and uphold than our social license to operate. Without it, we are lost. History has proven this time and again. In fact, while ‘social responsibility’ and ‘sustainability’ have gained great attention in recent years, these are by no means contemporary 21st

century concepts. The values of business social responsibility are as old as written history. A sustainable brand – an enduring brand – must also be a socially responsible brand. A brand, of course, is more than a logo, a design or a slogan. Much more. It has a heartbeat, a soul and a psyche. It is the very core, the very essence, of an organisation.

A brand is a promise made to your consumers and customers, your employees, your investors, communities, vendors and suppliers. And trust is the glue that holds all those relationships together. Break a promise and you destroy a relationship. If a good brand is a promise, then a great brand is a promise kept.

As we endure a global financial crisis brought on largely by a series of broken promises, the virtues of trust and socially responsible brands have never been more relevant. Consider just a few alarming statistics.

According to the most recent Edelman Trust Barometer, nearly two-thirds of informed citizens trust corporations less than they did a year ago. When respondents were asked about trust in business in general, only 38 percent said they trust business to do what is right – a 20 percent drop over last year. According to the same survey, less than one in five people today say they trust information from a company’s CEO. These are among the lowest levels of trust ever recorded.

“Break a promise and you destroy a relationship. If a good brand is a promise, then a great brand is a promise kept”

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Positive action The concepts behind Coca-Cola’s Live Positively campaign In a world where populations are growing, where natural resources are stressed, and where consumer’s expectations are expanding, sustainability is absolutely critical to our business survival and to our growth. Even in this time of economic uncertainty, consumers are looking at more and more of their purchases through a sustainability lens. In every market, from the wealthiest to the poorest, we’re seeing a massive resetting of priorities, of values, and of expectations. This is actually a very positive development for us, and for our world.

At Coca Cola, our vision of sustainability is a world where all people have access to safe water, where our packaging is treated as a valuable resource for the future, and where our customers and employees and communities are prosperous, and where our beverages provide simple moments of refreshment and pleasure billions of times each day. In essence this is our brand promise, and if a good brand is a promise, then a great brand is a promise kept. The men and women of the Coca Cola Company and our bottling partners certainly recognise this. In the course of 123 years we have built the worlds most recognised and the world’s most valued brand. We also know that sustainability has to be a movement, a way of life, a way of thinking about the world. We believe so much in this idea that we introduced a concept called Live Positively last year.

Live Positively provides a framework for us to think holistically and think globally about all of the sustainability efforts we’re working on in our entire system. It includes goals and metrics, and several agreed upon principles, including among many others returning back to nature an amount of water equal to what we use in our beverages by 2020, encouraging and supporting active, healthy lifestyles in every market that we serve, providing energy labeling on the front of nearly all our beverage packaging by 2011, and developing an additional up to 2,000 manual distribution centres for entrepreneurs in Africa by 2010. Ultimately, Live Positively is about making the right decisions, the smart choices, to run our business better, and to satisfy the needs of all our stakeholders, starting with our consumers and our customers. It’s about creating a culture of sustainability; one we think will spread well beyond the Coca Cola system.

Of course, Live Positively is a work in progress; we have much work ahead of us. The journey, in fact, is just beginning, but it’s a journey we look forward to and one that will help create an even better Coca Cola in the years ahead.

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The Edelman survey also points out that a company’s values towards social responsibility and sustainability are of paramount importance to consumers today. Similar studies across the world draw the same conclusions. About 60 percent of global consumers, for instance, now say they would be willing to pay more for a product that helped reduce carbon emissions. The majority of global con-

“In a world where populations are growing, where natural resources are stressed and where consumers’ expectations are expanding, sustainability and social responsibility are core to our business continuity and survival” sumers claim that a company’s social responsibility efforts carry nearly equal weight to price and brand quality when making a purchasing decision. Most consumers today feel that companies spend too much money on advertising and marketing and should put more resources behind social responsibility.

The vast majority of consumers say that during a recession, they are more loyal to brands that are perceived as socially responsible.

Clearly, now is not the time to cut back on our sustainability efforts. In fact, I believe that businesses that effectively invest in sustainability innovations today will not only be in a better position when we come out of this crisis but that many will also make leapfrog gains in the marketplace.

Historically, times of recession and economic decline have spurred some of the world’s greatest business models and innovations. To borrow from the words of President Obama’s Chief of Staff, Rahm Emanuel, “We must not waste this crisis.”

We are truly entering a new era of resetting priorities and values and expectations. This is being driven not only by the financial crisis but even more so by a host of massive global forces that will reshape the world over the next decade. For instance, between now and the year 2020, we’re going to see a billion new consumers ascending to the middle class. Even despite the current economic difficulties, our estimates on this number are lower than projections from the World Bank and the WTO, among others. This rising middle class underscores a broader global economic development. By 2020, the world’s economic power will radiate from many nations and not just a few. Of course, we’re already seeing this shift as China and Asia seem to be on the verge of leading the world out of the current economic crisis.

With middle class growth, we’re also seeing a huge influx of urban migration. Today, the world’s cities are growing by 65 million people each year, and that will continue for at least the next decade. That’s the equivalent of adding a metro the size of Tel Aviv to the planet every 18 days for the next 10 years.

And as population and wealth grow, we will also see a constant scarcity of energy, food and other natural resources. Longer life spans will be the new norm as advances in medicine and biotechnology come to fruition. Average life expectancy will likely increase by five years by 2020.

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At the same time, many parts of the world – including the Middle East – will At Coca-Cola, we make a point to find young managers who want to be experience a surge in youth populations. And almost everywhere we will no doubt stretched –who relish the challenge of working outside their comfort zones and see greater government intervention into commercial and economic affairs. can develop deep relationships outside their own culture. The next generation of Collectively, these economic, demographic and political shifts are creating leadership will need to be able to recognise and harness the power of diversity. what I call the New Equilibrium, or the ‘new normal.’ What we have here is a At Coca-Cola, diversity is an absolute business imperative as we conduct world of incredible dichotomy. A world of both extraordinary opportunity and business in literally every corner of the planet. One of the most fulfilling diversity promise on the one hand, and a world of incredible challenge on the other. In this programmes I am personally involved in is serving as the chair of our company’s world where headwinds and tailwinds are in constant collision, we’re most defiWomen’s Leadership Council. In this role, I work with senior women executives nitely going to see an even more heightened ‘global throughout our company to identify strategies to atsustainability consciousness.’ Brands that can navitract and develop more women into leadership posigate this environment and appeal to consumers’ extions. The insights women bring to our business are The Coca-Cola Company pectations of social responsibility will thrive. Those profound, to say the least. Today, women account for by numbers that fail to navigate this New Equilibrium will fail. the majority of purchase decisions for our beverages.

I would like to briefly outline three key lessons Globally, women make up 70 percent of all grocery we have learned at Coca-Cola in our journey toshoppers. wards enhancing the social responsibility of our corThe good news for us as employers is that the porate brand. next generation really wants and expects to step up to EMPLOYEES WORLDWIDE The first is to integrate sustainability into your this role of socially responsible leadership. A recent business model. Sustainability and social responsisurvey of young global professionals in their 20s bility are not public relations initiatives, or complishows that the ideal employer reflects “a down-toSOLD IN MORE THAN ance check-offs, or nice to-dos. In a world where earth blend of idealism and pragmatism, of concern populations are growing, where natural resources for self and others.” As a group, these young proare stressed, where communities are forced to do fessionals share the belief that business should benmore with less, and where consumers’ expectaefit both the individual and the broader society. tions are expanding, sustainability and social reI know from talking to my own children, that COUNTRIES sponsibility are core to our business continuity they have much higher expectations of what they and survival. want out of an employer than I certainly did when PRODUCT PORTFOLIO Our vision of sustainability at Coca-Cola is a I entered the workforce over 30 years ago. I also OF MORE THAN world where all people have access to safe water, hear the same sentiments when we interview young where our packaging is a valuable resource for the job candidates and when I go to speak on college future, and where our communities and our campuses. People want to work for companies that neighbours are prosperous. We have seen share their values.

DRINKS through our own experiences – time and again – The third lesson we’ve learned is that building that our business in any market is only as healthy a culture of social responsibility begins at home, and sustainable as the community in which we within the four walls of your company. In order to operate. For instance, in Israel, our bottling partbe real and beneficial, corporate social responsibilSERVINGS OF COCA-COLA ner, Central Bottling Company (CBC), has placed ity has to be a movement. A way of life. A way of PRODUCTS ARE CONSUMED a great deal of innovation focus on water use. thinking about the world.

DAILY These initiatives have resulted in the highest rates We believe so much in this idea at The Cocaof water efficiency among the 200 countries we Cola Company that we introduced a concept serve. And they carry a clear environmental mescalled Live Positively last year. Live Positively is sage in a country – and a planet – where water preservation is of utmost ima way for us to think holistically and globally about all of the sustainabiliportance. Last summer I had the privilege of being in Israel to celebrate the ty efforts we’re working on system-wide. It includes goals and metrics and fourth anniversary of CBC. CBC has become one of the first Israeli food and several agreed upon principles. We’ve set goals for our community work, beverage companies to earn the prestigious ISO awards for quality and envifor our active healthy living programmes, for our environmental work and ronment. No question, they are truly committed to business social responsifor our workforce and employee engagement efforts. bility.

Ultimately, Live Positively is about making the right decisions – the smart This leads directly to the second lesson we have learned – socially redecisions – to run our business better and to satisfy the needs of our customers sponsible brands can only be managed by socially responsible leaders. and consumers. It’s about creating a culture of sustainability and continuing Critical to this is finding leaders who possess a world view and who emto challenge ourselves about how we can improve and do more towards this brace diversity. Multi-national businesses need people who can move necessary goal. n seamlessly across borders and cultures and feel as comfortable working in This article is based on a presentation at the 2009 Globes Conference on Social Tokyo as they do in Tel Aviv. responsibility in Tel Aviv, Israel.

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EXECUTIVE INTERVIEW

Managing sustainability Rainer Hiss explains why it is important to establish sustainability policies, goals and activities as well as manage, track and communicate their progress.

In the current difficult economic climate, companies may not see investing in sustainability as a priority. Do you believe that such an attitude is misguided?

Rainer Hiss. A common misconception is that being sustainable means additional costs. Some of the most common sustainability topics – like energy, waste efficiency, water consumption and employee satisfaction – should actually save costs and add value to an organisation. During financially challenging times, cutting back on glossy brochures and large-scale PR campaigns can often be a wise step, but organisations’ commitments to employees, communities and the environment should not be about cost and usually aren’t. In addition, a high percentage of the public are very concerned over social and environmental issues. Companies seen as not caring can suffer from adverse reputation issues and possibly sales lost to competitors perceived as being more sustainable.

Sustainability can be an extremely complex subject. How can technology be employed to make organisations more sustainable?

RH. Once an organisation has established sustainability policies, goals and activities, it is important that they track and communicate their performance. In large or well developed organisations there can be hundreds of key performance indicators in areas like environment, employee diversity and development, health and safety, human rights, biodiversity and community investment to name but a few. Trying to collect and manage all this information in a multitude of spreadsheets is simply not possible – that’s where technology like SERAM, our sustainability reporting and management tool, comes in. The old saying of ‘what you can’t measure, you can’t manage’ ap-

plies to sustainability in the same way it does to financial reporting – it’s difficult to drive improvements without knowing where you’re starting from. Sustainability is no different to other areas of business in that technology is used to make processes more accurate, efficient and often cheaper.

ity consultants are happy to discuss ideas with people and point them in the right direction if they themselves cannot help.

What are the risks if companies fail to take a proactive approach to sustainability issues?

RH. Firstly, the perspective of the company from stakeholders such as customers, suppliers, What are the key capabilities an organiinvestors and potential employees to name but sation should look for if it is selecting a a few, is of great importance. Companies with partner to help it improve its sustainability poor or negative reputations regarding society credentials? and/or the environment rarely prosper, particuRH. Organisations should larly in times of financial and look for partners that have environmental uncertainty. specific experience in Secondly, the risk of implementing sustainability losing ground to competiprocesses or projects. Comtors who have proactive and panies who are in the starttransparent approaches toing phase of sustainability wards sustainability issues management should look for and management can be consulting companies who serious indeed. Research have experience with assessshows that investors and ing organisations, writing customers are more inpolicies, developing strateclined to go with companies gies and other primary and products that are more Rainer Hiss is head of the sustainability division at Swiss-based Sirius elements needed when develsustainably produced or Technologies. He oversees all operations within the sustainability oping a sustainability manmanufactured than those group including the various software agement system. Companies that are not. applications such as SERAM and the consulting and services team. with the basic documentaThe third risk is around Rainer has a PhD in Physics from the University of Freiburg. tion in place already may the operating efficiency then look to procure project and ethical conduct of the management services, such as reducing carbon company. Not only do sustainable companies footprints, better managing waste or employee typically have a better grip on costs, such as satisfaction surveys. Another commonly reenergy consumption and waste production, but quired service is assistance with sustainability also better manage their risks, leading to more reporting and communication, helping organitransparency than those who act less sustainsations to deliver their key messages, goals ably. The stories of Enron, Worldcom and the and performance to large audiences, such as recent banking scandals have put corporate shareholders or the public, often in the form of sustainability and governance at a much higher an annual report or website. Most sustainabillevel than ever before.

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FEATURE

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Miracle natural ingredient or dangerous additive?

NGF sinks its teeth into stevia.

M

ankind’s long love affair with sugar shows little sign of abating. But as concerns about rising levels of obesity and diabetes take on greater prominence in our health-obsessed times, the hunt is on for alternatives that allow us to indulge our sweet tooth without piling on the pounds.

For its advocates around the world Stevia rebaudiana offers the best possible solution. Originating from Central and South America, stevia’s sweet properties have been exploited by tribes in Bolivia, Brazil and Paraguay for generations. During the 20th century it has found a commercial application as a food and drink ingredient in territories such as Japan, Korea and, most recently, the USA. As an alternative to sugar, stevia boasts two key attributes that make it particularly attractive. First, it can be up to 300 times sweeter than sugar and, second, it has zero calorific content, making it particularly attractive for use in ‘diet’ products. Given these qualities, it is little surprise that some in the food industry view stevia as the Holy Grail of sweeteners.

With 2009 sales of stevia set to top US$100 million in the States alone and predictions that the market could be worth US$2 billion by 2011, it is starting to look as though stevia’s time has come. In fact, there is pretty much only one place where the extract’s potential is not being fully explored: Europe.

Apart from France, which approved the use of stevia sweeteners with 97 percent purity rebaudioside A in September of 2009, the rest of the EU is still waiting for the OK from the European Food Safety Authority (EFSA) before being able to press ahead. The fact that Europe is lagging so far behind in a market with such potential is a major cause of frustration for stevia’s supporters.

Professor Jan Geuns is head of the Laboratory of Functional Biology of Leuven University in Belgium and a founding member of EUSTAS, the European Stevia Association. “How can you explain that Europe would be more severe for food safety than countries like America or Australia, New Zealand, and so on?” he says. “That should be unbelievable. You can travel around the world; you can consume stevia products everywhere, except in Europe.

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Toute de suite When it comers to stevia, France is wasting no time.

In September 2009 the French government took advantage of a window allowing individual member states to approve ingredients for a limited two year period to authorise the use of 97 percent pure rebaudioside A. Though the ruling stopped short of approving all 95 percent purity steviol glycosides as advocates had wished, it is nonetheless a significant step forward for the substance. 2010 will see Coca-Cola France rolling out its first stevia sweetened products in the shape of Fanta Still. The use of stevia allows Coca-Cola to reduce the sugar content of the drink by 30 percent. However, the drinks giant is not altering the packaging of the drink in any way, perhaps wary of consumer reaction to such a recently approved ingredient. The industry will be watching the French experiment very closely for signs how a European approval might be met by the market.

data and asked, at the time, the Scientific Committee on Food, which is the predecessor of today’s European Food Safety Authority, to assess the safety of stevioside as a sweetener. That happened the first time in 1985 and the opinion was reviewed in 1989. The most recent opinion of the Scientific Committee comes from June 1991. On all these occasions, the Committee raised concerns about the safety of stevioglucosides. The Committee at the time, in 1991, concluded that the substance is not acceptable as a sweetener on the available data at the time.”

Projected value A worker is seen in a stevia plantation in Caacupe, That Europe could take such a different attitude to of Stevia market 50 kms east of Asuncion, Paraguay. Stevia is used by 2011 the safety of stevia from just about the rest of the world for its medicinal purposes, which include treatment for heartburn, obesity and hypertension, as well as a seems strange, particularly considering its long history of natural sweetener for diabetics. use in South America and latterly Japan. Solomon cites a number of concerns that have dogged the substance since it first In my eyes, that’s ridiculous. There are big implications for the European incame to the EU’s attention. “The first comprehensive review was in 1985, dustry, because all others can use stevia as an ingredient and they can make when many other sweeteners were looked at,” she says. “Then we had a rea number of products and sell them. European companies cannot develview in 1989. In both these opinions, there were several questions reop these new recipes, so they will suffer. They cannot sell these products garding the purity of the extracts which had been tested, the metabolism then in other countries, so that’s a big problem for the industry as well.” of stevioside mutagenicity of metabolites, questionable chronic toxicity, So why is the EU trailing the rest of the world in its attitude to stevia? and carcinogenicity studies, and finally fertility studies which were not “All sweeteners in the European Union, are regulated very tightly under performed according to good laboratory practice. At the time, the the European Parliament and Council Directive 9435-EC on sweeteners,” Committee concluded that Stevia rebaudiana leaves and the stevioside exsays Olga Solomon of the European Commission’s Health and Consumers tracts from them were considered as toxicologically not acceptable.” There Directorate General. “They only can be explicitly authorised on the basis was a further limited review in 1999 that did not succeed in changing opinof a safety evaluation and some other criteria which are set in the legislaions, so stevia remains on the prohibited list. tion, like technological-made benefit to the consumer and that the use These continuing concerns over safety are particularly frustrating for must not mislead the consumer. In the past, the Commission received Geuns, who believes they are founded on outdated and shoddy research. “The

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former Scientific Committee on Food of the EU, they published their opinwere plenty of people that were involved with the sugar industry,” he says. ion on stevioglycosides and there were plenty of mistakes,” he says. “Those “That’s the reason. They have written a report just to keep stevia from the people who had written that opinion on stevioglycosides didn’t know the difmarket.” ference between male and female animals and so on. That’s unbelievable, but It is a powerful accusation and one that Solomon is quick to refute. that’s written in black and white in the papers. All the literature was available “EU legislation on food additives and on sweeteners in particular is not so they could judge. They referred to a paper, a nonsense paper, where they there to regulate the market forces,” she says. “The role of the Commission claimed that stevia extract was not good for male fertility. In that paper they is to facilitate, as much as possible, the authorisation of products that are referred to, it’s written that the male animals were never even in contact safe and that respond to the other criteria of the EU legislation. Once these with stevia extract.” criteria are fulfilled, then the Commission would authorise any additive, Geuns contends that fears over stevia’s impact on male fertility are enindependent if a big or a small company is behind it. The Commission does tirely unfounded and based on a single faulty study, while plenty of more not look if there is a big company or a small company supporting an addirecent research demonstrating the substance’s tive and it does not consider market competition. safety. “It has been proven that there is not any efThis is for the market itself. Commission’s task, is fect on fertility,” he continues. “The one paper to secure that the product which is authorized it is they (the SCF) referred to, it was just, let’s say, no safe and its use complies with the other principles It may be the flavour of the momore than a joke. It was not a serious scientific of the legislation.” ment, but stevia’s history goes paper. It has been published in Nature, of course, 2010 could be a watershed year for stevia in back a long way but it was in 1967, I believe. Even one of the coEurope. A safety assessment is currently underauthors later on he explained that it was not seriway which should be concluded in March. Based 1887 Stevia plant described by ous research and they used only a few animals. on the new data that has become available since Antonio Bertoni Since that time, a lot of studies have been done its last assessment, as well as its increasing ubiqproving that stevia is absolutely safe.” uity across the world, Jan Geuns is hopeful of a 1931 Stevioside is extracted from Quite contrary to the EU’s reservations of favourable result. “If they do not approve it this stevia leaves by French chemists stevia, its supporters contend that it actually has time, I will start a stevia revolution,” he jokes.

Bridel and Lavielle numerous health benefits. Chief among them is “We have had all kinds of revolutions. Why not a the impact increased use of stevia could have on sweet stevia revolution?”

1941 UK investigates stevia problems like obesity, type 2 diabetes and hyperQuestioned about the likelihood of the subwhen supplies of Carribbean tension. These ailments carry an estimated annustance being approved for use, Olga Solomon is resugarcane are cut off during al bill of €230 billion in Europe in medical costs luctant to make any predictions. “If we have a World War II alone. While stevia authorisation obviously will favourable opinion about the stevio-glucosides, the not be a magic bullet for these problems, any way Commission will start discussions in order to autho1971 First commercial use by in which sugar consumption could be lowered rise the substance as soon as possible after that time,” Japanese company Morita would certainly have positive effects in the longshe says. “Of course, if there will be any safety conKagaku Kogyo term. cerns by EFSA, you can imagine the Commission “It’s good for type 2 diabetes,” says Geuns. “It will not be able to authorise the substance. “ 1991 Application for use in lowers blood glucose levels and it increases the It seems that stevia’s future in Europe reEurope turned down by Scientific sensitivity to insulin. We have also done experimains too close to call, though the critical mass of Committee on Food ments and shown that it lowers the plaque formaother nations and authorities that have approved tion in blood vessels, so you get less its use do give some hope. “In the new applica2008 Approved for use as arteriosclerosis and less heart infarcts and so on. tions, there have been new data submitted to adsweetener in USA This has been proven in animal models, of course, dress the concerns that were raised in the past,” but we would like to do some experiments with Solomon continues. Even internationally, the 2010 Decision on stevia’s humans to prove that it’s also good to prevent safety of steviol glycosides was established by the approval in the EU should be some of these problems with obesity. You can find Joint FAO/WHO Expert Committee on food admade in March children with the age of 12 years old that have type ditives (JECFA) only recently in 2008, on the 2 diabetes for the moment, because they are eating basis of these new data.” very bad food. All the processed food with too If March 2010 does bring good news for the much sugar in it, too much fat, too much salt.” growing stevia industry Europe will have to move fast to make up for all Perhaps the most contentious charge levelled against the EU’s reluctance the time it has lost. If the ingredient can live up to the grand claims made to authorise stevia is that the decisions behind it aren’t entirely science-based. by its supporters, it has the potential to have a game-changing effect on Geuns contends that one of the key reasons that Japan was so quick to acthe market. One thing is for sure, if stevia truly allows consumers to incept stevia is that there was no domestic sugar industry in the country to dulge themselves without expanding their waistlines, its future is all but influence regulatory decisions. “In the former Scientific Committee, there assured. n

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ROUNDTABLE

Flavour

of the month

Alan Liao Jingjun and Muriel AcatVergnet answer our questions on ingredients and explain how producers are responding to recent consumer trends for healthy, natural foods.

As consumers become increasingly health conscious, there is mounting demand for ingredients that can add flavour and sweetness without adding calories. What options are available to producers seeking to cater to this trend?

Alan Liao Jingjun. Rebaudioside A (Reb A), a non-calorific sweetener derived from the stevia plant, could fi ll a sweet spot in the food and beverage market. The growing demand for products with greater perceived health benefits could help the sweetener grow in coming years. Since approved by the FDA, interest in the sweetener has surged and it is being used in products such as fruit juices, enhanced waters and carbonated soft drinks. Beverage companies are particularly interested because they are facing lagging sales of full-calorie soft drinks and soft drinks made with artificial sweeteners because of consumer concerns. Reb A would allow companies to develop natural, low-calorie products made without artificial sweeteners. We blend our Luo han extract with Reb A using our unique blending know-how to enhance the flavour and sweetness.

Muriel Acat-Vergnet. In principle, flavourings aren’t directly considered as substitutes to sugar or its alternatives. However, vanilla, when used at a proper level of dosage, is able to smoothen and round up, thus bringing the impression of sweetness to food stuff.

In chocolate for instance, natural vanilla proves to overcome the bitterness, which is linked to high cocoa and/or lowered sugar content. In baked goods (biscuits, cereals), vanillin has a very interesting impact, exhausting the overall complex aromas yielded by the baking process, thus compensating the possible loss of mouthfeel due to a lower level of sugar.

Another type of flavouring, called ‘masking fl avours’ also contributes to overcoming special off notes, due to its high protein or vitamin content, which would be exacerbated by a reduction in sugar.

When talking about fat reduction, flavourings that imitate the taste of butter or cream provide a satisfactory contribution to compensate the loss in mouthfeel and richness.

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How do these ingredients fit into the THE PANEL growing trend towards ‘natural’ and organic foods?

MA-V. In recent years, the demand for replacing the existing synthetic flavours with natural ones has grown substantially.

This trend started in the chocolate industry, when manufacturers decided to switch from vanillin, the key flavour ingredient in chocolate, towards natural vanilla, in general pure extracts.

Using an original technology, Prova fat-soluble vanilla extracts respond to this demand. Being compatible with high-fat Muriel Acat-Vergnet, was systems, the flavouring yield is fully optipromoted to CEO at PROVA mised, thus contributing to a good roundSA in 2008, after having been Vice President for ing up effect, keeping dosage levels low. five years, and with the company for 16 years.

Other products are making the switch She graduated from the from synthetic to natural, like biscuits, ceToulouse business school and got a Masters degree in reals and dairy products. The solutions are, Business Administration in the United States. in general, vanilla extracts combined with natural substances.

Organic foods must use at least natural flavourings, the ultimate choice being organic flavours. The offer for organic flavourings has broadened tremendously, and one can find organic versions in almost all flavouring notes. This trend has come along due to the ever-growing demand for organic food.

ALJ. We have been committed, for more than 10 years, to developing natural plant source health products to better improve people’s life quality. The mission and aspiration of Layn is to bring health and beauty from nature to human being. Our attention and dedication are always on ‘natural source’ and ‘health’, which we believe are the whole world’s pursuit, our mission and responsibility. Our main product categories include high purity plant source monomer, natural sweeteners, functional juices, as well as standardised plant extracts. Layn is dedicated to persistent utilisation, conservation and development of botanical raw material and has advocated GAP and organic standardisation in cultivation for many years.

Layn is continuously pursuing organic food standard and comply with GMO-free standards. We supply several organic products including our Luo han guo.

Any breaches in food safety can have grave effects, both for consumers and the businesses that supply them. What steps do you take to ensure that your products are free from any contamination and safe for human consumption?

ALJ. We effectively control our products from the raw material cultivation, harvesting, transportation, storage, production, packing and shipment.

The quality of Layn Natural Ingredients is assured by our strict compliance with the following standards: GMP, ISO9001:2008, ISO14001:2004, ISO22000:2005, HACCP. Our quality assurance programmes are maintained on an ongoing basis. We implement comprehensive tests including toxicological tests, heavy metal assays, pesticide residue assays,

Dr. Alan Liao Jingjun is Board Director and CEO of Guilin Layn Natural Ingredients Corp, member of the China National High-Tech food development council. Before joining Layn, he spent eight years working at P&G as food senior scientist and external business development manager. He graduated in biochemistry from Peking University and is an expert in photochemistry, human nutrition and intelligence properties.

microbiological detection, in vitro tests and in vivo tests, in tandem with our dedicated professionals, ensuring the safety of Layn’s products and their respective efficacy. We all take great pride in the high quality and consistency of our products. All of our people are part of the quality that goes into our products and they are trained accordingly.

MA-V. All of our products are manufactured under current Good Manufacturing

Practices (GMP) and the Hazard Analysis Critical Control Point (HACCP) system of product safety. By using the HACCP system, specific hazards such as physical, chemical and bacteriological are controlled, reduced or eliminated.

Prova’s main know-how lies in the extraction of natural raw materials. When dealing with agricultural products, bacteriology is a very sensitive question. Several ‘killing steps’ are implemented – such as heat treatments of the vanilla beans – and are also part of the transformation process when using solvents under specific conditions.

What role does research and development play in your business? Can you describe any recent innovations in your product lines?

MA-V. The main challenge in our business is certainly to match synthetic with natural substances. One issue is that there are many less available natural ingredients than synthetic ones, not to mention the higher cost.

Matching vanillin at an acceptable cost is a challenge. Natural vanillin is too expensive and no other single natural substance is a genuine alternative. It must be a combination of several flavouring ingredients, including vanilla extracts.

Biotechnologies are developed to obtain natural substances. This is completed by the creativity of our flavourists, whose job it is to combine flavouring preparations and substances.

Flavour release is complex. In processes like baking and sterilising volatiles tend to give way to heat resistant body notes, thus distorting the original flavour balance. To get around the flavour loss, increased dosages and encapsulation techniques are commonly used.

Our recent innovations focus on developing natural flavourings within our specialities: vanilla, cocoa, coffee, sweet brown and gourmet notes (caramel, all nuts, biscuit notes and so on) ALJ. Layn’s R&D focuses on technology optimisation and product standardisation. Layn is based on a project management system and focuses on the product development in multiple perspectives. Our product development process extends from product standardisation to pharmaco-toxicological testing, and includes applications from regulatory compliance to intellectual property protection. We have achieved more than 20 invention patents and more than 600 in technical know-how.

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From the medicine cabinet to the kitchen cupboard. NGF’s Stacey Sheppard talks to Professor Jeya Henry about the benefits of functional foods, their potential for the future and the challenges they must overcome.

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s consumers become increasingly health conscious, demanding foods with added nutritional value and which promote health benefits, a modern craze is sweeping through the food and drink industry with many multi-national food giants investing in so-called functional foods. From eggs enriched with Omega 3 fatty acids to reduce the risk of heart disease to the addition of chemicals called phytosterols to margarines to impede the absorption of cholesterol, the functional foods industry is experiencing rapid growth across the globe.

Consultancy PricewaterhouseCoopers has estimated the global market for functional foods to be worth €85 billion in 2013.

Although the idea of functional foods is nothing particularly new – vitamin B has long been added to flour to fight pellagra and vitamin D to milk to combat rickets – the recent trend has only been around for 25 years or so. It started in Japan in 1984, when the Japanese government promoted the enhancement of foodstuffs on the grounds of public health.

Jeya Henry, Professor of Human Nutrition and Director of the Functional Food Centre at Oxford Brookes University – the UK’s first centre dedicated to researching functional foods – explains the origins of the functional foods concept: “Japan has the largest ageing population in the world. The ministry of health and agriculture in Japan recognised the fact that the ageing population would require considerable health interventions and if one could prevent disease rather than treat it, it would be a very effective strategy.

“Therefore they launched a whole conceptual framework on using diet and food as a way to reduce the risks of various health degenerative diseases like heart disease, hypertension, diabetes and weight gain. Since then it has slowly percolated through the system and it reached the North American and European shores round about 1995,” says Henry.

The Functional Food Centre opened at the beginning of 2009 and its main aims include the identification of functional food ingredients that may help prevent disease. “What we are saying is that we want to change the way in which health prevention is emerging. We want to move from the medicine cabinet to the kitchen cupboard and that means moving from pharmacological intervention to dietary intervention. It is a very powerful argument to use diet as a platform for health attributes and it is a fantastically intellectual challenge,” he says fervently.

His team have taken up this challenge and are currently working on four particular areas. The fi rst is that of low Glycaemic Index (GI) foods that can help to lower blood glucose through the slower release of glucose into the blood. Th is is an area that is quite important for managing and treating type 2 diabetes and he says that there is increasing evidence that eating a low GI diet can help to reduce the risk of becoming a diabetic.

The second area of great interest is the effect of the ageing process.

Henry explains that there are two main things that occur when we get old: “One is that we have what is called a cognitive decline. The other thing is that you also have a decline in taste and taste perception. So the question that we are posing is can we provide some dietary interventions to enhance taste equity and therefore make it more pleasurable to taste and eat food, but also can we make some dietary interventions to retard the progression of cognitive decline.” Th is is something that he believes will be vitally important for Britain since 20 percent of the population will be over 60 years old by 2025.

Satiety is the third issue that the Functional Food Centre will be

“What we are saying is that we want to change the way in which health prevention is emerging” addressing in its research. As Henry points out, humans are creatures of habit and no matter how many times they are told to cut down their food intake to prevent weight gain they rarely act upon this advice. “If we can fi nd certain types of food that will increase our sense of satiety then unconsciously we will not eat excess amounts of food,” he says.

“We are trying to fi nd out what kinds of foods actually increase stomach distension or enhance hormone receptors or neurotransmitters to increase satiety.”

The fi nal area of research is one that Henry believes is somewhat neglected – the nutritional needs of women. “People tend to forget that women represent 50 percent of the population, but if you look at the global research on the nutrition of women it is abysmally poor. So we are trying to redress that balance by asking the simple question of is it true that during the menstrual cycle women show particular taste prefer-

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Examples of functional food components

Phenolics Anthocyanidins

Fruits

Neutralise free radicals; reduce risk of cancer

Catechins

Tea

Neutralise free radicals; reduce risk of cancer

Flavonones

Citrus

Neutralise free radicals; reduce risk of cancer

Flavones

Fruits/vegetables

Neutralise free radicals; reduce risk of cancer

Lignans

Flax, rye, vegetables

Prevention of cancer, renal failure

Tannins (proanthocyanidines)

Cranberries, cranberry products, cocoa, chocolate

Improve urinary tract health. Reduce risk of cardiovascular disease

ences? It has been anecdotally documented that women show changes in food preference and diet during the menstrual cycle. Is that true? And if so, what are the implications for their health outcome?

“Does it have any implications on defi ning the nutrient requirements for women? Can we provide foods that are of particular biological need during the pre-menstrual cycle and during the menstrual cycle? This is an area that I think will have very rich rewards. It will not only make women feel better during their cycle, but above all could be of importance when trying to regulate their body weight,” he explains.

Aside from these areas of research, he believes that functional foods have an even greater potential. In the future, he hopes to explore the possible benefits that functional foods could offer to those suffering from depression. “Depression is something that people talk about in quiet whispers, but it is a very big problem. One in five of us in our nation are going to have some degree of depression in the broad spectrum of diagnosis and that is serious. People are given prescription drugs to ameliorate depression, and what I’m asking is what can diet do?

“Th is is an area that I believe holds enormous potential, looking at how we can manage and articulate the role that diet can play, not in preventing depression, but in reducing its pathology and its outcome and I think that this will be wonderful,” he says enthusiastically.

Despite this enormous potential though, functional foods have recently faced a number of stumbling blocks. It would appear that producers of everything from yoghurt to energy drinks and bread to breakfast foods are rushing to add miracle ingredients into their products in the hope of attracting health-conscious consumers with their supposed benefits. But as Henry points out, it pays to be a little cautious when faced with foods that claim to be functional.

“You need to be very careful how you defi ne functional foods, because the term has been slightly prostituted,” he says. “We need to be very clear about how we pitch and represent functional foods, because like everything else it also attracts a lot of charlatans. I always say we need to distinguish between fi sh oil and snake oil. We know that fi sh oil has a lot of good attributes that offer health benefits, but there are

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also a lot of people who are trading snake oil. We need the consumer to be much more aware and much more savvy in trying to understand how to discriminate.”

Consumers are faced with a multitude of food products all claiming to offer certain health benefits so it is no wonder that this can often lead to confusion. Th is is not necessarily due to a lack of awareness on the part of consumers. He believes that the government regulation goes a long way to protect the consumer and also explain the potential health benefits of consuming functional foods.

“The European Food Safety Authority (EFSA) has now made a very clear decree that we can’t make any health claims without substantiation. So we are now on a clear path where functional foods are going to be evolving, but there are also going to be very clear checks and boundaries,” says Henry.

However, as he points out, it is extremely important to ensure that stricter regulation does not end up stifl ing innovation. “What you need to ensure is academic and intellectual freedoms, which will allow these creative things to emerge. You also need checks to make sure these things don’t go out of kilt. What you don’t want is overregulation, which will decimate the functional food industry in Britain and Europe at the expense of other countries such as Japan, Asia and North America.”

Since EFSA made its recent decree, many food and beverage products that make such health claims have come under strict scrutiny and have been asked to provide evidence to support their assertions. How will this strict regulatory environment impact the functional food industry?

“The regulatory environment has, in my view been a little draconian at the beginning. That is not necessarily a bad start. What you really want is to get rid of the charlatans in one fell swoop. The bright and the more persistent will then rise up from the ashes. You clearly don’t want to be too flexible, as this will allow every Tom, Dick and Harry into the trade. So what you must do is regulate quite rigorously and then see who is emerging from that castigation, and those will be the ones to triumph in the long term,” he says.

The stricter regulations do indeed throw up innumerable challenges for those involved in the production and manufacture of functional foods. There is not only the need to provide documentary evidence of efficacy, but a new challenge is to convince consumers that the products they are buying are tasty, but also have health attributes over and above the nutritional element. As many companies are fi nding their health claims rejected by EFSA, consumers are losing confidence and this is something that needs to be addressed.

However, Henry doesn’t necessarily believe that EFSA’s rigorous investigations of health claims will only serve to damage consumer confidence. He says Professor Jeya Henry it may help increase their confi-

A bad time for good bacteria No area of the functional food market has been more dogged by scepticism and controversy than the probiotics sector, which, in 2008, represented 18 percent of the functional food market and was worth 10.5 billion.

In recent months, probiotics have suffered blow after blow as changes have been made to the regulatory environment.

In October, a TV ad for Danone’s Actimel yoghurt was banned by the UK’s advertising watchdog because the evidence provided by Danone could not prove their claims that the product could help protect “normal, healthy school-aged” children against common childhood illnesses.

This ruling followed September’s settlement of a 2008 lawsuit against Dannon, Danone’s US subsidiary. The company was accused of falsely advertising its Activia and DanActive yoghurts and overstating the health attributes of the products. Dannon agreed to reimburse consumers to a sum of US$35m and change the labelling and marketing of both products.

Also in October, probiotic ingredients came under fire from the European Food Safety Authority in the first phase of the review it is conducting under EU regulation 1924/2006 on nutrition and food health claims. Of the 523 opinions issued by EFSA, 180 related specifically to probiotics and the result was less than disappointing. Nine were rejected while a further 105 were judged to have provided insufficient evidence of their effects. Both Danone and Yakult withdrew their claims before the EFSA evaluation took place and have since resubmitted them but the results will not be available until 2010.

dence in the system as they become aware that nobody is above the law. “I don’t want to be too specific, but there have been some quite embarrassing stories concerning big multi-national companies that have been brought to book and to be honest I am surprised that such large companies are getting their sums wrong.

“But it also tells us something useful, which is that the British society in general and the scientists in particular have a responsibility. If you make an error of judgement, we will be seeking accountability and that is fantastic. Th is is only something that can be done in a system like we have in Britain.”

Jeya Henry is a Professor in Human Nutrition at Oxford Brookes University in the UK and Director of the Functional Food Centre, Oxford. He is a consultant to the World Health Organisation, UNICEF and the Food and Agriculture Organisation of the United Nations on all aspects relating to nutrition assessment, food safety and nutrient requirements.

He is also Editor-in-Chief of the International Journal of Food Sciences and Nutrition.

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EXECUTIVE INTERVIEW

THE NATURAL SOLUTION Enzymes can be used to enhance health, bring out the best in food products and increase sustainability, says Henrik Meyer.

Novozymes claims that its enzymatic solutions make healthier foods and beverages. What is your best example of that?

Henrik Meyer. I could give a number of examples from Novozymes’ wide range of food and beverage products that enhance health, but to mention one, I would like to highlight how our enzymes bring out the best in apples, berries and grapes. Depending on the main ingredient, enzymes can be used to extract more antioxidants, known for their positive health effects such as anti-inflammatory properties, protection against neurological diseases, extracting vitamins, and for boosting anti-bacterial activities.

How can enzymes enhance the health profile of food products?

HM. We have recently developed an enzymatic solution, Acrylaway, to dramatically reduce the formation of acrylamide. Since its discovery in 2002, acrylamide has been raising a number of health concerns and posing food manufacturers with the challenge of how to reduce its concentration in their product. Acrylamide is formed in starchy foods, such as biscuits, crisp bread, crackers, french fries and snacks that have been baked or fried at high temperatures.

In some foods, the particular enzyme reduces the formation of acrylamide during the baking and frying process by up to 95 percent. And this reduction takes place without taking away the tempting flavours or visual appeal of the products. The use of Acrylaway makes it possible for food companies to keep producing the same great products while significantly reducing the levels of acrylamide.

Another example is our new cost-effective solution for enzymatic interesterification to replace trans fats, suspected of contributing to cardiovascular diseases by increasing LDL (‘bad’) cholesterol levels. Trans fats are already banned in food products in Denmark and other countries, and US food labelling laws will soon require all trans fats to be labelled. Compared to the other alternative, chemical interesterification, our solution is both cost effective and creates the least environmental impact, as it generates limited waste – only using enzymes – with no effect on the environment.

Sustainability is high on Novozymes’ agenda. Why is that?

HM. There are two sides to sustainability at Novozymes.

Earlier this year we were recognised as the leader of the Biotech sector by the Dow Jones Sustainability Index – a title Novozymes also held from 2000 to 2007. This recognition is of high importance, as we would not preach sustainability to the world if we were not a living example of great sustainability practices.

Many of our customers, on the other hand, perceive sustainability as a great add-on benefit, when already optimising their food and beverages through the use of enzymes. With enzymes, you can make more with less – and that applies to raw material, energy, water and waste streams.

– which is evidently better for the environment. Companies can improve their green profi le, without paying extra and without compromising the taste and texture they are known and loved for.

Henrik Meyer is Vice President, Head of Marketing, with overall responsibility for global marketing activities and for strategic accounts. He holds a Cand. Agro. degree from the University of Copenhagen, Faculty of Life Sciences, and has been with Novozymes since 2001.

Can you give an example of how Novozymes’ solutions have contributed to a greener profile?

HM. There are many, but the newest is our new generation of brewing enzymes. The Danish brewery, Harboe, recently launched a new environmentally friendly beer, Clim8, produced with 100 percent barley enabled by our pioneering enzymes. The fact that the beer can be produced without the barley having to undergo the malting process means that Harboe can reduce the CO 2 emissions by eight grams per can. It doesn’t sound like much per beer, but beer is being produced in a massive scale worldwide, and this is just the beginning.

What is the next big thing from Novozymes’ within food and nutrition?

HM. Healthier and health-enhancing products are very much developed on a ‘pull’ from the consumers, as consumers are becoming increasingly aware of what products contain and often prefer natural ingredients when possible. Together with our customers, we will keep listening to their needs and elaborate on the enzymes’ endless ability to reduce energy and replace unnecessary chemicals and processes.

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OMEGA 3

Fish tales

Omega 3 fatty acids have long been touted as a miracle ingredient that can deliver all number of health benefits. Next Generation Food takes a look at some of the latest claims.

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wareness of the potential health benefits of omega-3 fatty acids started back in the 1930s and has improved dramatically since the discovery of eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA) in the 1970s. The discovery was made by two Danish medical scientists – Dr. Hans Olaf Bang and Dr. Jørn Dyerberg – who voyaged to Greenland to investigate the mysteriously low incidence of heart disease amongst native Inuits in spite of a diet rich in meat and fat, or blubber.

The researchers reported their fi ndings in The Lancet in 1971 and since that moment over 14,000 papers have been published on omega-3 including close to 8000 human studies, according to Dr. Dyerberg.

In recent years there has been a veritable explosion of omega-3 in science and the marketplace. However, one of the most recent debates surrounding omega-3 also harps back to current discussions over health claims.

An international consortium of lipid scientists are concerned over the fact that food companies can claim their products are rich in omega-3 irrespective of whether these are long chain – EPA and DHA – or short-chain molecules. The difference is that long-chain omega-3 is derived from expensive sources such as fi sh, whilst the short-chain variety come from plant oils and leafy green vegetables and are said to be far less beneficial.

Lipid biologists are also concerned over EFSA’s recommendations for daily intake of omega-3. Currently set at 250mg per day, the scientists believe that this is too low and suggest a figure nearer to 566mg per day based on the average of 15 studies conducted on the matter.

Whilst these debates are ongoing, consumers are being bombarded with information regarding the latest studies concerning omega-3 and its health benefits. Here we take a look at some of the latest studies to be published.

Cardiovasular health A new study by the Danish Diet, Cancer and Health cohort reported that increased intake of EPA, DPA and DHA omega-3 fatty acids may protect men against acute coronary syndrome (ACS). The study, which was published in the British Journal of Nutrition, involved 57,053 men and women and showed that over an average follow-up time of almost eight years, 1150 people developed ACS. Men who consumed more than 0.39 grams of polyunsaturated fatty acids per day had an associated risk of ACS 27 percent lower than men who consumed less than 0.39 grams a day. The researchers noted that no benefits were observed for women.

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Cognitive health

Joint health

An 18-month government-backed study was conducted in the USA recently, led by Dr. Joseph Quinn of Oregon Health and Sciences University in Portland. The study examined the potential of DHA supplements to treat Alzheimer’s disease and the findings suggested that taking omega-3 fatty acid supplements does not arrest Alzheimer’s in people who already developed the disease but it can help to restore mental acuity in people suffering from slight memory complaints.

A study from Germany, published in the journal Advances in Therapy, states that combining omega-3 fatty acids with glucosamine achieves better improvements in joint health than glucosamine alone. Lead author of the study, Dr. Joerg Gruenwald, and team selected 177 people with differing degrees of hip or knee osteoarthritis and randomly assigned them to receive either a glucosamine sulphate supplement or glucosamine plus omega-3.

After 26 weeks, the pain levels of the participants were tested using the established Western Ontario and McMaster Universities Arthrosis index (WOMAC) score.

Results showed that the combination product reduced morning stiffness and pain in the hips and knees by between 48.5 and 55.6 percent, compared to 41.7 to 55.3 percent in the glucosamine only group.

Ocular health The US National Eye Institute recently conducted a study which found that increased intakes of omega-3 fatty acids may reduce the risk of developing age-related blindness by 30 percent. The researchers, led by John Paul SanGiovanni, said that the results of the study may guide the development of low-cost and easily implemented preventative interventions for progression to advanced age-related macular degeneration.

Weight watching Findings reported in the British Journal of Nutrition indicate that omega-3 fatty acids could help to lower body weight. The study, led by Professor Monohar Garg from the University of Newcastle and president-elect of the Nutrition Society of Australia, shows that fish oils could play an instrumental role in weight management.

The investigations found that overweight and obese people have blood levels of omega-3 almost one percent lower than people of a healthy weight. Professor Garg and his co-workers concluded that more intervention trials in adults examining the influence of dietary supplementation with omega-3 fatty acids to assist weight loss and weight maintenance is necessary to ascertain whether the link is causal or correlation.

Mental health Past studies have shown that in depressed psychiatric patients who are otherwise medically well, augmentation with omega-3 fatty acids dramatically improves the efficacy of antidepressants. However, a new study conducted by Robert M. Carney of Washington University School of Medicine and published in the Journal of the American Medical Association (JAMA), shows that augmenting antidepressant therapy with an omega-3 supplement does not result in improvement of levels of depression in those patients who suffer from coronary heart disease.

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ROUNDTABLE

FUNCTIONAL FOOD

John Kurstjens and Espen Thomassen talk to NGF about the growing market for Omega 3.

What specific benefits can Omega 3 bring for both food producers and their customers?

John Kurstjens. Omega 3 fatty acids highly contribute to a healthy functioning of body and mind. They are essential fatty acids, preferably consumed in a higher level than available in a basic diet. The majority of health benefits they provide come from the two principal members of the Omega 3 family: eicosapentaenoic acid (EPA) and docosapentaenoic acid (DHA). Science shows that both EPA and DHA have a crucial role in retaining cardiovascular health. Both EPA and DHA do have a unique role in maintaining a healthy body. EPA has been shown to promote gut and respiratory health by protecting body membranes against inflammation, whereas DHA specifically contributes to the development and functioning of the brain and nervous system.

Lipid Nutrition Omega 3 products are available in different forms and offer different EPA and DHA ratios targeting specific health benefits.

Th is makes it possible to enhance a wide variety of foods and dietary supplements and customise them at the same time.

Espen Thomassen. Both the producer and the customer are searching for an added value in products they sell and buy. Food producers need to stay in focus in this competitively growing market, as consumers are increasingly aware of health benefits. The food producers can remain in consumer’s focus by reinforcing their health and wellness at the cutting edge of developments in health.

Omega 3 fatty acids have become increasingly popular among healthconscious consumers because of widely publicised links to a wide-range of health benefits, including reduced risk of cardiovascular disease and certain cancers, joint health, and improved behaviour and mood.

Omega 3 is the healthy ingredient on everyone’s lips – both suppliers and consumers. As research sheds light on its benefits and more sources become available, it will benefit food producers both in catering to the needs of their loyal customers with Omega 3 enriched foods in their loyal brands, and the customers who are getting more value for money.

What kind of food products can Omega 3 be incorporated into? How are such products generally received by consumers?

ET. Omega 3 can be added into a range of products from margarine, dairy products (such as milk, yoghurt and cheese etc.), breads and baked goods, meat-based meals, fish-based meals and fruit-based products. Dairy products are a good vehicle for delivery. However, there is a visible increase in bakery products as well.

The products that will have the best success depends on the market and food trends. What all markets have in common is that the products have to be of such high quality that the Omega 3 added cannot be noticed, and the content of Omega 3 per serving must give a meaningful contribution compared to the alternatives (a supplement or eating fish).

Consumers want nutritious products that are affordable. According to a report from Global Industry Analysts earlier this year, higher incomes, lifestyle changes, growing health awareness, an aging population and a preference for convenience foods are driving the functional foods market.

JK. The potential food applications are almost limitless; examples are dairy products such as yoghurt and milk, fruit beverages, margarines and

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other spreads, frozen desserts and ice-cream novelties, soups, pastas and sauces, cereals, bread, cookies and crackers.

Today, you can fi nd many kinds of product in the market, targeting specific groups, such as kids, pregnant women and the elderly.

The products seen are, for example, cookies, milk and margarine (fat spreads). The last two examples are also brought to market in more and more different countries and seem to be the most successful category in the market.

What are the key challenges of incorporating an ingredient like Omega 3 into these products?

JK. Omega 3 oils are rich in polyunsaturated fatty acids and therefore sensitive to oxidation. Oxidation might have a negative impact on the quality of the fi nal product and will affect the taste and smell.

The additional stability of the food application can be obtained by adding antioxidants, or chelators (e.g. citric acid or EDTA) to the food matrix. Depending on the type of food application, processing and storage parameters, several types of antioxidants can be added.

There are guidelines to help the choice for certain antioxidants or chelators because the effectiveness is very much dependent on the type of application THE PANEL (check your local legislation to see which additives are allowed).

Lipid Nutrition is on the market with its range of Marinol Omega 3 ingredients, which contains oils, powders and emulsion. These different forms provide different solutions to help overcome the obstacles of incorporating Omega 3 into a great variety of applications.

ET. Working with Omega 3 poses a challenge for formulators, since the fatty acid John Kurstjens is Global Group is highly susceptible to oxidation, which Manager Marketing at Lipid can affect the taste of the fi nished prodNutrition, which innovates and markets scientifically uct. And consumers are unforgiving; if a sound lipid ingredients from natural origins. Prior to Lipid fortified product does not match up to the Nutrition he worked in the unfortified version in smell, taste and texpharmaceutical industry where he held several marketing ture, it will be easily rejected. positions. He received a master degree in Biology Another challenge is the complex reat the University of Utrecht lationship between oxidation and sensory and a Master of Business Administration degree of the deterioration – and even when there are no University of Bradford, UK. detectible oxidation parameters, the taste of the fi nished product could still be terrible.

We have experienced that it is important to have full control of the value chain. In this way we control the oxidation from the start, to ensure the best quality of the oil.

A good quality ingredient in combination with high application expertise in various food matrixes is vital. The use of proper packaging can provide further protection and could thus be a challenge too, depending on what is appropriate for the fi nal food product. Ideally, it should act as a barrier not only to oxygen, but also to light and moisture, which can trigger oxidation.

How do you see the future market growth potential for marineoriginated Omega 3 derived food products?

ET. We see a very positive growth in the market and marine Omega 3 has become an ingredient used by an increasing amount of food companies in certain industries. Marine Omega 3’s development as an ingredient has become a reality in a number of particular products – for example margarine, dairy products, bread, etc.

There are many applications where it is used as an ingredient.

In some countries, there are quite long traditions for using marine Omega 3 in food and beverages. However, we see big differences in the amount of EPA and DHA present in these products. We believe that is it essential for customer approval of Omega 3 derived products that the amounts of EPA and DHA per serving are significant and can be compared either to taking supplements or the consumption of a fi shbased meal.

The product should also be a mainstream product that the vast majority can afford to buy. To be able to meet these desires, we believe that food and beverage companies should consider the quality of the ingredient supplier. The fastest and most efficient way to develop a product with marine Omega 3 is to use ingredient suppliers that have a high quality ingredient and can combine it with high application knowledge.

Espen Thomassen is Sales Director Omega 3 in TINE BA. TINE BA is a dairy co-operative that has its own production of Omega 3 ingredients that are designed to be used in various foods and beverages.

He has worked within Omega 3 worldwide since 2000 and was also a member of the CRN Omega 3 Steering committee in the USA from 2001.

JK. There is considerable growth in Omega 3 products and the number of product introductions with Omega 3 has increased over the last few years.

Awareness of Omega 3 in general is present, but the change from consumer awareness into understanding of 0mega 3 benefits is the key to success. With a combination of factors like consumers increasingly interested in prevention of diseases, a growing, affluent elderly segment and continued scientific research into Omega 3 oils, it is expected that the understanding of the benefits will grow significantly.

The claim regulation also plays an important role in the success for Omega 3 fortified products. Verification of claims is still going on, but some claims, like eye development, maintenance of normal blood pressure and healthy triglyceride levels, have already been authorised for use in Europe.

Over the long-term, changing demographics in age, gender and ethnicity will drive longevity. But along with this opportunity comes the challenge of identifying the right claim to appeal to the customer, combined with the ability to formulate a product that delivers a real benefit while staying within the maze of regulations and guidelines for label claims that reference health.

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EXECUTIVE INTERVIEW

A PINCH OF KNOWLEDGE Victor Ferrari outlines the trend towards more responsible food and beverage decisions.

What trends are you seeing among consumers when making food and beverage purchase decisions?

Victor Ferrari. Consumers have begun to look beyond the ingredients on the box. They want to know why the ingredients are chosen, what health benefits the ingredients have and what the long-term effects of these ingredients are. We’re seeing a shift towards a more educated consumer who chooses ‘smarter foods’ and thinks about a more thorough, long-term approach to well being.

every investment, particularly when it comes to their health. By choosing food and beverage products that include Pycnogenol, consumers are investing in an ingredient with more than 40 years of research spanning or more than 40 years, clinical inflammation, joint health, trials and scientific studies have cardiovascular health and confirmed Pycnogenol’s safety, circulatory health, skin care, absence of toxicity and clinical women’s health benefits and efficacy. Today, Pycnogenol is one of the diabetes. Most recently, we most researched ingredients in the natural found that Pycnogenol can product marketplace, and remains on the improve microcirculation, cutting edge of the food and beverage retinal edema and visual industry shift towards more conscious acuity in the early stages of consumption. diabetic retinopathy, a study

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What outside factors are driving these decisions?

VF. As consumers strive to educate themselves on a more complete approach to health, we are seeing a drastic increase in available information on food and beverage ingredients. From the vast array of online content that was published in the to the abundance of consumer health Journal of publications, this new availability of Ocular Pharmacology and Therapeutics. information is strongly impacting the Pycnogenol not only offers this host of way consumers make decisions. health benefits, but the value of credTh is access to information also ible, ongoing research to support these means a new level of accountability properties. for product manufacturers.Consumers are looking for products that offer real How will Pycnogenol continue as an health benefits, and they want to see innovator in this changing environevidence that the food and beverages ment? that they consume have effective, safe VF. Pycnogenol has always set itself apart ingredients. As a result, it’s not just in the natural product marketplace with the consumer who is raising the bar on our commitment to new research. As a As CEO of Horphag Research, ingredients, but it’s also the manufacresult, we are not only thriving within Victor Ferrari oversees worldwide turer. Today, manufacturers are looking the structure of global regulations, but operations of the company, including international expansion to build partnerships with ingredients we continue to make new scientific adand worldwide introduction of Pycnogenol. Ferrari spearheaded with proven efficacy through research vancements in the field. To date, we’ve generally recognised as safe and safety data. While this additional invested more than US$20 million in (GRAS) certification, validated manufacturing processes following scrutiny has proved challenging for securing quality, safety and clinical good agricultural practice (GAP) and good manufacturing practice (GMP) some, it has only benefited the compaevidence, resulting in more than 250 and continues to invest millions of nies who continue to focus on the value scientific publications and 80 clinical dollars a year in research, totalling more than 270 scientific publications. provided by science and innovation. trials, and we will continue to invest What is the value of Pycnogenol as an ingredient as we graduate into the ‘next generation’ of foods?

VF. With the increased awareness of product value among consumers, people are looking for a return on

approximately US$1.5 million a year in conducting new scientific research. We will remain committed to producing a quality product, to meeting the ever-changing needs of the consumer and to maintaining the product integrity for which Pycnogenol has come to be known.

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FOOD AUTHENTICITY

FIGHTING THE FAKES

Protecting the integrity of brands, supply chains and products is high on the international agenda.

Ian Lancaster of the International Authentication Association explores the need for producers to demonstrate the authenticity of their products and explains how technology and policy are playing a key role.

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rotecting the authenticity and traceability of our food and drink has never been more important. Concern for the origin of our consumables is not new, of course, but in today’s mass consumer market the need for vigilance is greater than ever before. The consequences of failing to take action can be severe – both from an economic perspective as well as a social and safety one.

With goods and products moving so quickly around the world and supply chains growing ever longer, the opportunity for fraud is increasing. Counterfeiting is big business – a €664 billion global industry – and today’s brands and specialist products are providing fertile conditions for counterfeiters.

The food and drink industry is just one of the many targeted worldwide and recent estimates are that it costs the sector around €34 million every year. The latest Organisation of Economic Co-operation and Development (OECD) report published in 2008 reveals a 250 percent increase in seizures of counterfeit food and drink between 2003 and 2005.

The problems this creates are wide ranging – and include not just counterfeiting, adulteration and dilution, but also mislabelling and passing off lookalikes as ‘added value’ foods and drinks. Luxury and organic products carry a premium and are ideal targets for counterfeiters. So too do products produced in a particular region such as cheeses, wines and Parma Ham, which have latterly fallen under the European Commission’s Protected Designation of Origin scheme.

Some of the most ‘faked’ products, according to a 2007 report from the OECD, are fruit such as kiwis, conserved vegetables, milk powder, butter, ghee, baby food, instant

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“The problems this creates are wide ranging – and include not just counterfeiting, adulteration and dilution, but also mislabelling and passing off look-alikes as ‘added value’ foods and drinks”

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MESSAGE IN A BOTTLE With annual exports in excess of UK£2 billion, Scotch Whisky is one of the UK’s leading exports and supports thousands of jobs across the economy. One of the main goals of the Scotch Whisky Association (SWA) is to protect scotch whisky from unfair competition and this includes the use of misleading names associated with Scotland.

This year the SWA engaged in a lengthy court battle to protect consumers from imitation scotch whiskies in Italy. In the late 1980s a number of whiskies were found on sale in major Italian retailers purporting to be Scottish and using names such as ‘MacQueen’, ‘Clan 55’ and ‘Sullivan’. All the imitation whiskies were discovered to be supplied by an individual operating under several trade names.

A spokesman for the SWA said: “This has been a long battle to protect Italian consumers and scotch whisky distillers from imitation products unfairly trading on Scotch Whisky’s reputation. Such practices left unchecked would undermine consumer confidence and the integrity of scotch whisky. Our top priority must be to protect scotch whisky from all forms of

unfair competition and we are delighted at the successful outcome of this lengthy action in Italy.”

In 2004, Diageo, one of the world’s leading premium drinks businesses, took important steps to protect its reputation with the launch of the whisky industry’s first ever miniaturised spectroscopic portable testing kit designed to crack down on fake whisky. Diageo, whose brands include Bells, Benmore and Buchanan’s, teamed up with UK based Spectroscopic & Analytical Developments Ltd, a company specialising in the design and manufacture of non-standard analytical instruments.

With the six leading whisky and spirit producers losing an estimated UK£500m per annum through counterfeit crime and approximately six percent of all whisky sold adulterated in some way, Diageo hoped that the kits will ultimately be used across the whole industry.

The equipment, aptly named the Authenticator, allows authenticity testing, which was previously only possible under lab conditions and took up to two weeks, to be transformed into a screening process lasting less than one minute.

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FAKE FLAKES Kellogg’s recently announced that it has developed a hi-tech method to stamp out imitation cereals – by branding Corn Flakes with the company logo. The new technology enables the firm, which makes 67 million boxes of Corn Flakes every year, to burn the famous signature onto individual flakes using lasers.

Kellogg’s plan is to produce a number of one-off trial batches of the branded flakes to test the system and bosses will then consider inserting a proportion of branded flakes into each box to guarantee the cereal’s origins and protect against imitation products.

The laser uses a concentrated beam of light which focuses the energy within the beam, down to a very small spot on the Corn Flake. Mirror galvanometers are then used to steer the beam creating multiple vectors that reflect the laser from different angles and ultimately make up the image. The energy density within the laser spot diameter is sufficient enough to give the surface of the flake a darker, toasted appearance without changing the taste.

If the system is successful it could be used on Kellogg’s other brands including Frosties, Special K, Crunchy Nut and Bran Flakes.

Kellogg’s embarked on the project to reinforce that they don’t make cereals for any other companies and to fire a shot across the bows of makers of ‘fake flakes’.

Helen Lyons, lead food technologist at the company, said: In recent years there has been an increase in the number of own brands trying to capitalise on the popularity of Kellogg’s corn flakes. We want shoppers to be under absolutely no illusion that Kellogg’s does not make cereal for anyone else. ‘’We’re constantly looking at new ways to reaffirm this and giving our golden flakes of corn an official stamp of approval could be the answer. We’ve established that it is possible to apply a logo or image onto food, now we need to see if there is a way of repeating it on large quantities of our cereal. We’re looking into it.’’ coffee, alcohol, drinks, confectionary and hi-breed corn seed. Alcohol products are the prime targets for counterfeiters in the drinks sector, both because of their brand value and the high tax and excise component of the final price. Indeed the EU Liquor Association estimates a quarter of all spirits sold in the EU are now counterfeit (2008).

Besides defrauding producers and consumers, passing off inferior versions also raises the spectre of contamination, spoilage and out-

of-date products. The implications of which can be serious to both consumer health and producer reputation and liability. Recent cases of adulterated baby milk in China indicate that the problem is more than just one of neglect.

Indeed food scares involving the recall of spinach, peanuts and sprouts (E.Coli, Salmonella and Listeria respectively) was one of the catalysts for the new Food Safety Enforcement Act of 2009, which is currently being driven through Congress at lightning pace in the US. In such conditions, there is huge value to be gained in authenticating and tracing products – particularly luxury, organic, and premium foods – through the supply chain. As prices rise, the trade in counterfeit goods and the problems it brings are likely to increase. Producers must get to grips with these problems by maintaining their brand protection efforts.

Food and drink producers able to do this can drive revenues and reduce costs by differentiating their products. They can also gain easier market access via regulatory compliance schemes. The capacity to share information through the supply chain is also boosted, creating operational efficiencies. The consumer too is happy in the knowledge that the product is authenticated – a win-win situation.

Historically, the challenge for the industry in tackling these problems has been twofold: inertia and cost. Significantly, these are now barriers that are being eroded and momentum must be maintained.

The development and accessibility of more sophisticated technology, particularly digital technology that allows data to be shared, is playing a major role. All French wines travelling outside the country, for example, are now traceable by labels and engravings on bottles to determine the authenticity of the product. Similarly, in Southern Italy, milk and mozzarella cheese produced by local cows is checked using the latest spectroscopic techniques to test it matches information stored in a database and comes from the area it claims.

In the UK, the Food Standards Agency (FSA) employs DNA methods to identify a wide range of products from fish species and basmati rice to wheat pasta and exotic and common meat species. And in America, where the US food industry is now a one trillion-dollar business, new track and trace systems for fruit and other produce are being successfully pioneered to create a direct link between the consumer and grower.

Food and drink producers are increasingly turning to a wide range of technologies like this in their efforts to combat the problem. One of the latest tools are innovative edible tags which add to the proliferation of

Percentage of food and beverage articles detained in Europe in 2008 by provenance Indonesia

50.51%

UAE

25.86%

Turkey

5.75%

Morocco

2.79%

Lebanon

2.06%

USA

1.93%

China

1.72%

Russia

1.65%

Others

7.73%

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PROTECTING YOUR PRODUCE devices already used to authenticate and trace products and place another layer of protection at the disposal of the brand owner.

Devices are often multi-layered for extra security, relying on a combination of sensory and digital technologies. Sensory technologies rely on one of the five human senses and include holograms, inks and reflective coatings. In the latter camp are track and trace systems, serialisation options as well as barcodes and RFID devices.

But technology alone is not enough. The problem also needs to be addressed at policy level, where technical advances are increasingly being supported by international initiatives. Within Europe, the situation of food authenticity is currently being addressed by TRACE, a five-year, EUsponsored project intended to provide consumers with added confidence in the authenticity of European food through complete traceability along entire ‘farm to fork’ food chains.

Launched in 2005, TRACE is targeted at sectors and foodstuffs that command a premium on the basis of where they come from. Mineral water, for example, commands a premium price and is a lucrative market, yet there is little to prevent counterfeiters simply bottling tap water and passing it off. Whereas previous efforts have focused largely on the logistical traceability of foods through the distribution chain, TRACE is exploring the use of new technology to determine the authenticity of products.

Efforts are also being stepped up in the UK as well. Last November, the Food Standards Agency set up a new hotline to allow individuals and businesses to report fraudulent activity in food sales and marketing in a much quicker and easier way than previously.

“In such conditions, there is huge value to be gained in authenticating and tracing products – particularly luxury, organic, and premium foods – through the supply chain” The Food Safety Enforcement Act is one of a number of initiatives underway in America and follows the development of the Produce Traceability Initiative Action Plan in October 2008 by a group of influential food merchants and retailers who saw the benefits of self-regulation. They have proposed that by 2010 all cases of produce should bear a label indicating the source of the product in a way that allows them to be tracked through the distribution chain. Six billion cases are currently moved each year with no tracking information, not even a barcode.

The combination of new technology, with concerted policy action like this – involving multiple agencies and governments – will ultimately make a major difference to producers worldwide, helping them to protect the integrity and authenticity of their products far more effectively. The cost – both in time and money – of implementing food traceability remains significant, but it is coming down and simply doing nothing is not an option.

Failure to take collective action to protect brands will ultimately be more expensive for producers, the industry and society in the long run.

Food processors use a variety of techniques and technologies to enhance the security of their products.

Security is essential not just in terms of keeping food unspoiled and safe to eat but also in preventing consumer tampering, bio-terrorism and product counterfeiting.

With threats to brand integrity growing, devices are often multi-layered and used in conjunction with other features to enhance the level of security. This means that the top level is often visible to the consumer, while a lower layer contains a means of examination not apparent to a brand pirate.

The food industry is increasingly adopting a multilayered and sophisticated approach, with products incorporating a range of protective measures from packaging devices to the latest track and trace systems.

This often sees sensory technologies – that rely on one of the human senses – combined with digital technologies such as track and trace, RFID and bar codes.

Among the many technologies employed are: Overt devices These are generally used in packaging and include holograms, colour change inks, iridescent films and reflective materials. They are visible to the human eye and can be seen by a trained eye or, on occasions, by the consumer.

Other overt devices include a code or tamper evident seal.

Tamper evident seals aim to provide protection against malicious tampering or at least evidence of an attempt.

They typically show visible signs of meddling such as a revealed message or broken seal .

Hidden devices These are also used in food packaging. They remain hidden to the human eye and are only shown through the use of a handheld inspection tool, such as a UV light, magnifying glass or overlay. They include invisible and ultra-violet inks, micro-text, scrambled images and holograms.

Covert devices These add to the level of sophistication to packaging.

Devices in this category include chemical taggants, electronic identifiers, DNA, magnetic labels and embedded codes. These can only be identified with a sophisticated detection tool kit.

Increasingly, the industry is looking at using digital technologies such as track and trace systems to monitor products through the supply chain. These systems often rely on alphanumeric coding linked to a digital database. A digital check can then be made on the status of an item.

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EXECUTIVE INTERVIEW

Raising the profile Tim Jenkins explains the need for food profiling in ensuring quality, brand image and consumer safety from the dangers of counterfeit and fraudulent foodstuffs.

What market trends are driving the need for more innovative food testing methodologies like food profiling?

Tim Jenkins. The expansion of global trade and growing demand from consumers has created new concerns for governments and food producers alike. The demand for new products and high value commodities has lead to an increase in fraudulent and counterfeit foodstuffs within both domestic and world markets. With reports of five to 10 percent of global food trade involving counterfeit goods, the equivalent to approximately US$500 billion of product, government regulatory agencies are compelled to implement programmes that will ensure consumer safety while protecting domestic and export markets.

The impact of counterfeit goods on food manufacturers is no less significant. To ensure quality and preserve brand image, these organisations must continually evaluate both raw materials and the final product. As a result, the adoption of procedures that will more comprehensively characterise foodstuffs is becoming more critical for these organisations.

Can you please explain the food profiling approach? For what type of applications is it used?

TJ. Food producers, government laboratories and contract testing organisations can use food profiling in a number of applications that are crucial to the production and distribution of safe, high quality products of well characterised composition. The applications include: food authenticity – is the product truly what it is sup-

posed to be?; food origin – in what geographic region was the food product produced?; food purity – has a premium food product been accidentally or purposely adulterated? For example, is it a pure olive oil or has it been blended with other less expensive edible oils; production methods – does the premium price of a product match the actual method of production, for example, orange juice that is ‘freshly squeezed’ or ‘produced from concentrate’. And finally, food profiling can complement sensorial panels – while a specialist can distinguish wines based on their subjective organoleptic characteristic, food profiling can help provide the objective link between an organoleptic characteristic and the presence of a chemical compound (also referred to as a ‘marker’).

How does food profiling work? What are the technologies and steps involved?

TJ. Regardless of the application or food type we can typically describe food profi ling by the same workflow.

The fi rst and most important step is sample selection.

The variety and number of samples need to be large and truly representative of

the groups requiring differentiation. Within foodstuffs, natural variations occur due to climate, harvest time, storage conditions and so on. These intra-group differences need to be compensated for if confidence in the resultant ‘identified markers’ is to be high.

The second step is data acquisition. It is very important to acquire as much data as possible, which is why mass spectrometry (MS) is the preferred detection technology. MS offers a high degree of specificity enabling the characterisation of relevant markers. The next step is data processing. Comprehensive data acquisition techniques, such as MS, generate large volumes of data. By applying chemometrics soft ware, an automated analysis tool, laboratories have the ability to process highly complex, unbiased datasets that provide statistically based separations of samples, facilitating the identification of differences or similarities between sample groups.

The last step is data interpretation. While data processing provides the retention time (via liquid chromatography) and molecular weight (via MS) of the relevant markers, fi nal characterisation occurs when this data is cross-referenced with a chemical compound library, allowing for defi nitive identification.

Tim Jenkins is part of Waters Chemical Analysis Market Development group where he leads the Business Operations team. This group has particular expertise in food testing and environmental applications and addresses global market development issues. Prior to joining Waters, Jenkins gained over 15 years’ experience of practical mass spectrometry and technical management in a variety of environments including academia, corporate R&D and contract analysis laboratories.

What are some examples of food products that can be analysed using the food profiling methodology?

TJ. The combination of high efficiency chromatographic separations with mass spectrometry and chemometrics provides food testing laboratories with the ability to characterise foodstuffs in relation to differing geographical origins, adulteration, fraudulent product claims, competitive differences and many other factors. Premium food products like olive oil, coffee and wine are therefore excellent candidates for the application of the food profi ling methodology. Other food products might include teas, juices and beer.

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ASK THE EXPERT

A CLOSER LOOK Near Infrared Spectroscopy has been a well-established technique for the agricultural industry for decades and is becoming increasingly important in the food industry. The next logical step is to take NIR from the lab to the production process, says Dagmar Behmer.

T

he NIR technology offers a lot of advantages over classical analyses, since it is quick, cost-effective and safe, as no hazardous chemicals are used. It simply measures the absorption of near-infrared light of your sample at different wavelengths.

NIR also avoids the typical error sources of the classical lab methods, e.g. during the sample preparation stage. The beauty is that numerous parameters, such as protein, dry matter and fat, but also many others like amino acids, can be monitored simultaneously within a few seconds, saving thousands of euros on wet chemistry every month.

Another issue is food safety. Although NIR spectroscopy is not a technology for trace analysis like for toxins, it will help the producer to constantly monitor the quality of the goods along the production chain – from checking the incoming raw materials up to quality testing the fi nished product. Th is will soon be as important in the food industry as it is already today in the chemical and pharmaceutical industry.

NIR for production control There is a strong trend to take the NIR spectroscopy on the line rather than taking the sample to the lab. Not only quality and safety issues, but also economic considerations motivate the producers to develop methods for the

real time process analysis. One example is the analysis of butter. For butter it is important to stay as close as possible to the legislative target concentration of the butterfat. In Europe, this is around 84 percent, so the producer is allowed to add up to 16 percent of water. Since water is the cheap ingredient, they strive to get as close to the target as possible. A process monitoring the water content with NIR can achieve that.

Another hot topic is the in-line analysis of liquid milk. Here we teamed up with Tetra Pak Processing Systems, a global player providing production solutions to the food industry.

They utilise our technology with Tetra Alfast machines for standardisation and blending of milk in order to monitor and optimise product quality for dairy applications.

Taking NIR spectroscopy on-line The implementation of NIR technology to the process can be quite complex. One crucial question is how to generate the reference samples. NIR analysis is a secondary method, which means that it cannot determine any parameter directly, but is dependent on correlating an NIR spectrum to a given reference value. These values are often difficult to get, especially for off-spec products. In the case of the butter analysis, it was easy to get good samples around 16

percent of water, but to deliberately de-tune the line to get other values was virtually impossible. So it took some time to collect a sample variety in order to build a robust calibration.

Quite often it is also not easy to fi nd the best position of the NIR sensor. Here Bruker offers various possibilities of contact and noncontact sensors, which can be inserted into pipes and vessels or used over conveyor belts.

Another issue lies in the food sample itself. Being a natural product, one has to take all possible variations into account in order to build a reliable measurement method. Those can be different seasons, different country origins or even different genetic variations.

A process, which is monitored by NIR, will still need in the fi rst months a random reference analysis to check the validity of the NIR results.

To ensure a good start for our customers, Bruker Optics has offices world wide staffed with experts who have vast experience with the implementation of NIR applications online and in the lab. „

Dagmar Behmer has an MSc degree in Analytical Chemistry and is Head of International Support in the NIR & Process Technology group of Bruker Optics in Germany. She has 20 years of experience with NIR spectroscopy, focusing on food and agricultural applications.

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EXECUTIVE INTERVIEW

Contamination control Françoise de Goeijen outlines the risks surrounding Salmonella and antibiotic residues in the food chain and how they can be effectively detected and eradicated.

Which are the two main products of DSM PremiTest?

Françoise de Goeijen. Firstly, PremiTest Salmonella, which is used for Salmonella serotyping and is an indispensable tool to combat contamination throughout the food chain. Secondly, PremiTest, which is used for rapid antibiotic residue analysis in samples of food, feed and body tissues.

Why is Salmonella such a problem?

FdG. Salmonella, as a foodborne pathogen, is one of the most stubborn and regularly occurring problems in the food chain and has been the focus of food safety for many decades. Th is contamination can cause intestinal discomfort, fever and even death in weak and elderly people.

Each year millions of people contract Salmonellosis with an economic impact running into billions of Euros.

Why is DSM active in Food Safety?

FdG. Food safety is a theme that has broad relevance within DSM. First of all, it is relevant for the units that produce food ingredients such as enzymes, vitamins and flavours. All these products must be produced and delivered in a safe way, and they must also be processed into end products in a safe way. DSM furthermore contributes to the food safety of other food products by means of preservatives and packaging materials.

And fi nally DSM offers customers screening systems for food products to detect antibiotic residues and Salmonellas.

What is the advantage of the PremiTest Salmonella?

FdG. It is the only fast product commercially on the market and already tested by several State-labs in Europe with two scientific publications and a growing number of posters. Results can be obtained within one working day after the enrichment and isolation phase. The test requires minimal training and can be executed by most microbiological laboratories. Th is modern PCR method can replace the traditional Kauff mann White scheme, which needs storage of all the different sera and the special expertise for serotyping.

What can you achieve with the PremiTest Salmonella in the food chain?

FdG. Salmonella contamination can occur anywhere in the food chain; from primary agricultural products, to breeder and grower farms, hatcheries and any other place in the food chain. In order to trace contamination accurately, specialised skills are required, such as sampling of materials and expert knowledge of relevant sampling spots. Rapid and reliable identification of the serotype is an indispensable tool for a successful Salmonella eradication programme.

What is legislation doing to prevent Salmonella in your kitchen?

FdG. For broilers, future legislation will require, as of January 1, 2011, that meat of Salmonella positive flocks has to be cooked. Including similar Salmonella testing for all products imported into the EU. For other food of animal origin, such as turkey, pork, beef and fi sh, a similar legislation is expected to follow. Eggs of Salmonella positive flocks are already not allowed to be sold as table eggs, but are diverted to the egg processing industry.

What is PremiTest Salmonella?

FdG. PremiTest Salmonella enables serotyping within seven hours. It is a patented technology, combining multiplex PCR and detection of the PCR products on a micro array. The test uses several specific DNA fragments to identify the Salmonella serotype. It can detect and identify 100 serotypes, isolated from at least three different origins. On top of this, more than 300 serotypes have been allocated as Salmonella, with a unique matching genovar code.

Françoise de Goeijen graduated from the Agriculture University of Wageningen in the Netherlands as an Agriculture Engineer in 1985. In 2001, she joined DSM being responsible for Meat Ingredients. Later she moved to DSM Nutritional Products as Global Business Development Manager Food Safety. She looks into opportunities for DSM in the food chain from farm to fork.

The use of medication given to farm animals can lead to residues in meat and by products. How can this be tested?

FdG. With the PremiTest. This is a fast and effective antibiotic residue-screening test for antimicrobial substances in meat, fish, eggs, feed, body liquids and tissues.

PremiTest is fast – results within four hours – easy to use and cost-effective. The Premitest is AOAC and AFNOR certified and is used in most national governmental surveillance programmes.

With growing concern about the ever-increasing application of antibiotics in the production of food of animal origin, and growing worldwide concern about the developing of antibiotic resistance in pathogenic bacteria, more control for the usage of antibiotics is taking place in the industry.

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INDUSTRY INSIGHT

The threat within Doris Engesser-Sudlow explains the importance of controlling Listeria and how food companies can face the challenge in an effective way.

L

isteria is an environmentally widespread bacterium that exists naturally in soil and water, as well as in a variety of mammals, avian species and fish. Its presence can affect a wide variety of the processed foods we consume daily from dairy and meat products to fish and vegetables.

Of six Listeria species, only Listeria monocytogenesis is infectious for humans. It is one of the most harmful food-borne pathogens, with 20 percent of clinical infections resulting in death. For most healthy young and middle-aged people, chances of severe illness are low, with typically mild, flu-like symptoms or gastroenteritis. But in vulnerable groups that include pregnant women, infants, the elderly and other people with compromised immune systems, the consequences can be very serious and sometimes fatal.

ing area. Between 1991 and 2002, 18 outbreaks of invasive listeriosis were reported in Europe and they continue to occur frequently.

Contaminated products not only cause a heavy economic loss due to potential food recall, plant closure for sanitisation and large delays, it can also have a significant negative impact on the company’s reputation and brand.

European regulations specify that RTE foods must remain below 100 colony-forming units per gram (cfu/g) throughout the product’s shelf life. High-risk RTE foods shown to support the growth of Listeria have an additional criteria of testing negative for Listeria monocytogenes in 25 grams of sample before leaving the factory. RTE foods for infants and special medical purposes must remain negative for Listeria monocytogenes throughout the product’s shelf life. Environmental sampling for Listeria testing on surfaces is also a mandatory part of plant verification.

“Because of its widespread presence and unique survival abilities, Listeria is a severe problem for foodprocessing environments that deal with the preparation of ready-to-eat foods”

High quality tools ensure success

Listeria has a unique capacity to survive and grow in hardy conditions such as very low temperatures. It thrives in normal refrigeration conditions and can survive freezing, although it is eliminated through cooking at high temperatures. It also has the tendency to form highly resistant layers of bacteria known as biofi lms, which can be difficult to remove through cleaning.

Because of its widespread presence and unique survival abilities, Listeria is a severe problem for food-processing environments that deal with the preparation of ready-to-eat (RTE) foods. Food retailers sell these foods ready for consumption without the need for cooking or reheating.

The highest prevalence of Listeria can be found in RTE foods such as unpasteurised cheeses, deli meats and smoked fish.

Preventing outbreaks Outbreaks of Listeria continue to cause heavy damage. In late 2008, an outbreak of Listeria in a Maple Leaf Foods plant in Canada killed 22 people and caused 57 other food poisoning cases. The bacteria travelled through deli meat products, found to be contaminated in the packag-

In an industry that is facing ever-increasing pressures to produce and deliver high volumes of food in very short times, the chances of contamination problems are increasing. Providing high accuracy and sensitivity along with fast time to results, the DuPont Qualicon BAX System is a molecular method for microbial detection, offering new Listeria solutions for food and environmental testing as well as a broad range of other pathogen testing capabilities. When integrated into a plants’ workflow, its shorter time to result compared to traditional methods, as well as its high accuracy, allows for faster response to the presence of pathogens, along with reduced expenses related to storage and inventories.

The problem of Listeria will continue to be a major issue for many food-processing environments and for RTE foods. A properly implemented safety protocol for sample testing, sanitisation and monitoring can significantly reduce the risk of outbreaks. Tools such as the BAX System, integrated into the production workflow, can help ensure that safe, high quality food products are the only ones that reach the consumer.

Doris Engesser-Sudlow is Business Director at DuPont Qualicon EMEA. DuPont Qualicon is a world leader in providing innovative, science-based diagnostic products that can reduce the impact of pathogens and other unwelcome organisms in food. For more information, please visit www.Qualicon.com.

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BUSINESS INTELLIGENCE

Doing business the intelligent way Ovum analyst Helena Schwenk explains why BI remains a top priority food companies and how the technology can be employed as a recession-busting tool.

I

T budgets will come under increased scrutiny and pressure in 2009, especially if the economic downturn continues. But, while a recession might well force companies to pull back on some IT investments, Ovum believes that any new initiatives will address specific business pain-points and offer quick and visible payback. BI fits into this category – focusing on key issues like securing and increasing revenue from profitable customers, rationalising and reducing operational costs, providing greater visibility into cross-selling opportunities and improving customer satisfaction. Hence, Ovum believes that BI will continue to rank among the top three priorities for CIOs over the next year.

Recession busting technology While many companies will instinctively use BI as a cost-cutting tool, smart companies will continue to invest in BI solutions to intelligently scale back operations and maximise efficiencies from business processes they already have in place. In a recession, BI allows companies to take a more calculated and informed approach to tightening their belts, making sure that any cost cutting measures don’t cut across their top business priorities or cut out the valuable Brazilian rosewood with the deadwood. Moreover, they will increasingly focus on using BI to maximise revenues, optimise operations and grasp new and lucrative business opportunities before their competitors do. While a recession might well force companies to pull back on some IT investments, there’s rarely any question of a BI project being pulled or cancelled due to a cut in costs. If anything, an economic downturn could in fact speed up its deployment from a piecemeal departmental deployment to deployment across the wider enterprise.

However, BI customers are also becoming increasingly cost-conscious. Companies are insisting they do more and more sophisticated types of BI with less money and IT staff. Ovum believes that’s a good thing – it will make BI more focused and efficient, which in turn has a better chance of returning tangible benefits. It will also continue to force BI vendors away from their traditional premium pricing models, resulting in broader adoption of BI beyond an elite group of executives and analysts to front-line business users.

New models As a result of the economic downturn customers are becoming more risk averse and are looking for more cost-effective ways of implementing BI. This will challenge traditional BI and data warehousing implementation approaches and put new development, deployment and packaging models like open source, soft ware-as-a-service (SaaS) and pre-packaged appliances on the radar screens of more BI customers, particularly SMBs. Additionally Microsoft's market entry and BI strategy aim to make BI a commodity technology that customers will expect to implement easier and for a lot less than the complex, premium-priced solutions of the past.

These are some of the key BI technology trends that are developing: Open source: Open source BI is still a fledgling market and its evolution is still a far cry from its evolution to free solutions that are advanced by the developer community around the globe. However, it is no coincidence that Linux is now the fastest growing platform for new BI projects. The continued interest in open source BI in 2009 is a clear counter-reaction against the market dominance of a few vendors due to consolidation. Open source BI pioneers like JasperSoft and Pentaho, which were once considered temporary illegal aliens in the BI market,

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are establishing themselves as permanent residents, getting funding, issuing new code releases and starting to win over larger non-traditional enterprise customers.

Economic forces are also playing directly to open source, particularly for first-time BI buyers. These companies are looking for a cost-effective way to deploy BI without having to fork out a heft y upfront fee for a packaged commercial offering. First-time open source implementations will always be prototypes. But if successful they will evolve into fully productive BI systems that are backed by commercially licensed support services from open source BI vendors.

SaaS BI: providing BI as a hosted online service – is gaining increased market acceptance, especially among smaller, cost-conscious businesses. Th is will be a decisive make-orbreak year for SaaS BI adoption, especially as seemingly similar cloud infrastructure models start to take root. Most of the early adoption thus far has been among SMBs or departments of large organisations. The real test for SaaS BI will be to break into the enterprise market. When SaaS starts to uproot complex enterprise applications, including BI, it will truly have broken into the mainstream. Th is year is probably too early for that to happen. But vendors will start to demonstrate how a small and simple SaaS solution can quickly kick-start an actionable enterprise-wide BI strategy without having to undergo a big and complex customised enterprise data warehouse (EDW) project first. In large enterprises, Ovum expects these SaaS deployments to proliferate by fi rst complementing existing BI tools, applications and infrastructure.

Ultimately any spike of SaaS BI adoption rests on the success of SaaS’s poster-child application, namely Salesforce and whether it can withstand the economic pressures being put on its slim margins model. However, Ovum expects at least one major breakthrough – the on-demand model will also (fi nally) enable BI vendors and partner channels to offer functionally focused or vertically oriented analytic solutions, without the pain of conventional BI deployment approaches. Ovum believes there is an untapped opportunity for vendors to offer vertically focused SaaS that can quickly plug skill-gaps in organisations that are restricting them from doing specialised and advanced analytics like pipeline analysis, predictive analysis and fraud loss prevention. BI in the cloud will also ride on the coattails of steady SaaS BI adoption. Even though the definition of

Helena Schwenk is a Senior Analyst within Ovum’s software application team and is based in the UK. She has over 15 years' experience working within the IT industry as both an analyst and IT practitioner. Her areas of focus include business Intelligence, performance management and data warehousing. Schwenk holds a BA (Hons) in Computing and Information Systems.

cloud computing continues to shift like the clouds in the skies, the notion of hosting BI infrastructure and using BI services will start to gain the attention of CIOs and IT directors. Much of that is due to the noise that major cloud platform players – Google, Microsoft , Amazon, Salesforce. com and others – have already made.

Application form factors: The emergence of new competition from influential vendors like IBM, Oracle, HP, Microsoft and Teradata is helping to reinforce the value of data warehouse appliances and is bringing it into the BI mainstream as an alternative model. The appliance form factor – which gives companies the operational ability to plug and play BI technology without wasting time and money on assembling the hardware and soft ware infrastructure – is catching on fast and threatens to break the traditionally high price-entry barriers for BI. Significantly, it offers mid-sized firms a chance to engage in complex and high-end BI, which can be deployed at a fraction of the cost and time compared to traditional enterprise data warehousing. In Ovum expects more BI tools and applications will be increasingly bundled with data warehouse appliances. More data warehouse vendors will also pre-integrate BI tools and applications – either their own and/or those of their partners – into their appliance bundles. These data warehouse/BI appliances will also be increasingly tailored, packaged and priced for specific vertical market segments and even specific functional application.

“In a recession, BI allows companies to take a more calculated and informed approach to tightening their belts”

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INDUSTRY INSIGHT

TO BOLDLY GO

Ian Cox outlines the benefits to be gained from exploring opportunity spaces through experimental design.

they don’t want (and at the lowest cost to you). Industry journals are full of DOE examples and initiatives, such as Six Sigma, promote usage.

Market leading companies such as Procter & Gamble, Unilever and Kraft Foods use DOE at all stages of the product lifecycle.

But there are some problems. For example, you may have noticed magine you are in a rowing boat, and have been given the task of that not all lakes are square. DOE originally was developed with the resurveying a lake by taking depth-soundings using a rope marked quirement that designs be made ‘by hand’. Th is heritage is still obvious every metre and with a heavy weight on the end. You row to a in most soft ware that DOE practitioners use today. These so-called ‘classpot, throw the weight over the side and then sical designs’ have been compiled into libraries that count the number of marks as you pull the help set up how an experiment will be run. Although weight back up to find out how deep the lake is at this well tested and proven, these designs assume that the point. But this takes time and energy, and so, given opportunity space is always square. the task at hand, two questions soon arise: How many A more serious problem is that classical designs depth-soundings can you take? and where should you can be inflexible in relation to the new knowledge you take them? You have some prior information – the lake are after, simply because they can’t fit every case exacthas a depth of zero all round its edge – but answering ly. These problems lead to compromises like probing a these questions needs a bit more thought because it will smaller region of opportunity space than you want to, depend on what you want to use the fi nal survey for. and having too many or too few design points, someFor example, if you are interested in fishing, you might times in the wrong places. Aside from the impact of want to locate deep parts of the lake that you can cast having too many points (increased cost, cycle time and to, so knowing the depth at the centre, which you can’t Dr Ian Cox works in the JMP Division of so on), the lake example makes clear that the design SAS as the European Marketing Manager reach from the shore, might not be of much use. should be tied to your objectives and the usefulness of for JMP. He has consulted internally and In this example we have an ‘opportunity space’ externally to various manufacturing and the new knowledge you hope to gain.

CPG companies for more than twenty that we need to probe to get useful information. The years and is co-author of Visual Six Sigma – Fortunately, these problems can be avoided, and places we decide to row to constitute a ‘design’, and Making Data Analysis Lean. in such a way that you or your technologists, scientists the opportunity space is two-dimensional because we and technicians can easily get to grips with. JMP can need a longitude and latitude to specify each point in produce a design that is always customised to your that design. When we measure the lake depth at a design point we get specific situation. By also providing an interactive, graphical means to a ‘response’. For those that know the topic already, this is, of course, a understand your experimental results, JMP can break down barriers to gentle introduction to experimental design, often shortened to DOE or DOE usage within your company, allowing you to more quickly, easily DOX. DOE can provide an efficient way to probe an opportunity space and uniformly realise the benefits that DOE is famous for. to gather useful new knowledge, and this article is about some important So, if you routinely have complex opportunity spaces you need to exadvances in design. plore to make your customers happy, consider JMP. It tackles the design There can be no doubt of the practical value of DOE. Whenever any problem in a cohesive and powerful way, allowing you to ‘boldly go’ and product is in development, testing or manufacturing, DOE fi nds applicaexplore, actively seeking out new, useful knowledge to drive innovation tions to assure that customers get what they want, and don’t get what in your products and the way you make them.

I

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EXECUTIVE INTERVIEW

Pest practice Combining biological and chemical pest control methods effectively in outdoor crops is a key challenge for the agriculture industry, explains Jennifer Lewis.

How important is it that protection and pest control looks at the whole picture?

Jennifer Lewis. The recommended pest control approach of many practitioners is Integrated Crop Management (ICM), where pest control is considered within the context of the health and yield of the whole crop from sowing to harvest.

In such a system, pest control requires crop monitoring to determine when any intervention is required, and that any cultural and management techniques used are aimed at preventing pest infestations. This approach is commonly known as Integrated Pest Management (IPM).

In examples where IPM has become established, the pesticides used tend to be more specific and less broad spectrum, resulting in some secondary pests developing as the population dynamics in the crop change. New control methods are often needed to address these. Furthermore, the pest complex within a crop varies according to the climate as well as management factors.

The crop system is therefore dynamic, so crop protection tools need to remain flexible to allow the appropriate control techniques to be used to ensure the production of quality produce.

control solutions. Innovative national schemes aim to address this, including the Specific Off Label Application (SOLA) in the UK, where growers can apply to have a pesticide label use extended to a minor crop with submission of data. Grower groups are always keen to develop new pest control programmes and there are several examples of such groups co-funding research programmes with industry and public research bodies.

One such programme is the soft fruit work being conducted at East Malling Research in the UK, where reduced residue programmes in raspberries and strawberries are being developed.

More public money is needed to develop such programmes in minor crops and this should be a key research target in the coming years.

Knowledge transfer to the growers is a critical part of this process.

What options are open to growers when it comes to protecting their crops from pests and diseases?

JL. Crop protection techniques range from cultural control through to whole management techniques, including biological methods such as beneficial insects and pheromones, microbial and physically acting methods, as well as conventional chemicals. Plant strengtheners and root enhancing techniques can also provide a level of defence against disease and are becoming more popular with growers.

Can completely organic approaches to pest control ever offer sufficient protection to crops?

JL. Crops can be protected through organic means. It does, however, limit the growers’

What are the key challenges in offering protection that is effective right across the board?

JL. Many pest control techniques are available for the major crops. The minor crops that represent smaller targets for industry have less pest

The Tomato Growers have provided a case study of how integrated pest management can be implemented effectively across an industry, using all tools available to the grower. In crops such as tomatoes that are grown under glass, it is easier to implement effective integrated control. The challenge facing the agriculture industry now is to combine biological and chemical control methods effectively in outdoor crops.

“More public money is needed to develop such programmes in minor crops and this should be a key research target in the coming years”

options and can be less cost-effective than approaches that integrate conventional and biological control methods.

In the late 1990s, the UK Tomato Growers Association set out a 10-year research programme to grow high quality tomatoes residue free. Within 10 years they had largely achieved this, using biological control throughout the growing season and pesticides as necessary. Pesticides are generally used to ensure the crop starts clean, to remove any pests at the end of the season, before the new crop is planted and to provide immediate control in the case of a pest outbreak.

Integrated crop management is beginning with top fruit and citrus where commercialisation of pheromone-based mating disruption and mass trapping techniques are becoming commonplace. However, much work needs to be done to build robust examples across all food crops.

Pesticides are a precious tool that provide us with instant solutions to crop health problems. They are strictly regulated and those that are marketed need to be looked after as they provide instant solutions that would otherwise not be possible. Used wisely they are an essential element to the crop protection mix with minimal risk to the environment and residues.

An agronomy graduate with an MBA from Warwick University, Lewis has held senior marketing and policy positions in the UK and Europe within leading multinational agrochemical businesses. Since she joined Certis Europe in 2005, she has been fully involved in the development of the group’s integrated offerings, combining biological, physical and chemical control technologies in the speciality crop sector. During this time she ran the biocontrol operation within Certis Europe for three years.

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ASK THE EXPERT

THE PATH TO SUSTAINABLE, SAFE ANIMAL PROTEIN Luis Hernandez explains how pressures to optimise operations will lead to increased

efficiency, safety and quality in the feed industry.

T

he demand for animal and fish protein alone will increase by an estimated 44 percent by 2030 and 50 percent by 2050, according to the Food and Agriculture Organization (FAO).

The livestock and aquaculture value chains are under pressure to meet the growing appetite for animal protein by delivering safer, higher quality food more efficiently.

Pressure to optimise The use of compound feed production is an important way in which animal protein farmers can decrease their operational costs while increasing the sustainability of their industry. Compound feed can be manufactured from a wide array of ingredients, including feed cereals and by-products from the food, beverage and biofuel industries.

The manufactured feed industry contributes to an efficient use of the world’s resources by transforming un-useable cereals and by-products of the food and biofuel industries into feed that enables the raising of healthy animals.

Specialists in animal nutrition prepare formulas that include the ideal mix of proteins, fats, carbohydrates and essential nutrients for specific animal species, suited to both its stage of growth and its position in the production cycle.

Members of the feed industry are dedicated to decreasing this feedto-protein conversion ratio. For example, in the 1950s five kilograms of feed were required to produce one kilogram of pig live weight and today this ratio has been reduced to three kilograms of feed to one kilogram of pig live weight.

Customers increasingly understand that what they eat directly impacts their health. Food scares worldwide, such as the melamine milk crisis in China this year, have sensitised consumers, legislators, and the food and feed industries to the fact that every step of the value chain, from farm to fork, is critical in assuring food safety.

Quality and safety through processing While around 40 percent of the success of pelleting depends on the recipe developed by the animal nutrition specialist and the ingredients, 18 percent depends on the preparation of the feed mix, 18 percent on the

conditioning of the product, 18 percent on the pelleting mill and six percent on the cooling of the pellets. Technology partners, such as Bühler, possess the deep process knowledge and innovative machinery required to enable feed millers to supply high quality, safe feed to the industry.

Unlike raw agricultural products, industrial feed goes through added-value processes that increase the cleanliness and safety of the end feed product. In the fi rst step in a feed mill, the feed ingredients are all passed through the cleaning sections, where impurities such as iron, straw, paper, pieces of wood and leaves are separated from the pure product.

After weighing the product, the feed ingredients are ground to a specific particle size by a hammer mill and then mixed to uniformity by a mixer. The hygienising and compacting technology from Bühler’s HYSYS plays a central role in enabling a feed mill to produce safe feed.

Pathogenic micro-organisms, salmonella species and moulds can be present in untreated raw feed materials; this contaminated feed can lead to unsafe food.

Bühler’s HYSYS has a ‘first-in, first-out’ principle guaranteeing almost identical retention time for each product batch and a high-temperature heating of the product to 90°C to kill micro-organisms and salmonella.

A coating of liquids and fine powders can be applied to the pellets using the coating drum to increase the energy and improve the nutrition of the feed product, after which the pellets are cooled. The result: feed pellets providing higher energy, better digestibility and better nutrition for the animal, as well as higher safety than other feed alternatives.

Each shift forward in consumer demand for safer animal protein is pushing the feed industry forward at different rates, depending on the region of the world. But with time, the efficiency, safety and quality standards for animal protein will move towards an international standard.

Luis Hernandez has been Bühler’s Feed & Biomass Managing Director since 2006. Prior to his current position he held various international management positions in the building infrastructure, industrial automation and steel manufacturing businesses. Hernandez holds a BSc Degree in Mechanical Engineering from the Zurich University of Applied Sciences and an MBA from London Business School.

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INDUSTRY INSIGHT

ACID TEST Michael Binder gives an insight into the Life Cycle Assessment of the essential amino acids methionine, lysine and threonine in animal nutrition.

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n the public mind there is an ongoing debate about the environmental impacts of farming and intensive livestock production. Also there is a beneficial and open-minded discussion about the environmental benefits and costs of chemical production for the food chain.

Providing these intensive discussions with detailed information contributes to a sustainable comprehension of the advantages of supplemental essential amino acids covering both the significant improvement of feed and food quality and the sustainable reduction of environmental pollution.

Therefore the question as to the potential of the chemical industry for environmental protection seems to be a viable and worthwhile one. A better understanding of the ecological synergy effects between sustainable production in the chemical industry, environmental protection and welfare of animals and fi nal consumers is needed.

The Life Cycle Assessment (LCA) methodology represents an international scientific standard for the evaluation of all impacts resulting from technical production processes.

Also the impact of agriculture on the environment is an interesting topic due to ecological health and natural resources. In general, the impacts of agricultural are well known and a set of agri-environmental indicators have been designed for an effective monitoring of renewable raw materials.

Amino acids are building blocks of proteins and thus all life. They are important elements of the nutritional value of feed ingredients. Methionine is the fi rst limiting amino acid in poultry nutrition and is produced by

synthesis from petro-chemical raw materials.

For Lysine, the first-limiting amino acid in pig nutrition, and production is based on biotechnology with renewable raw materials. Th reonine, the next important essential amino acid in animal nutrition, is also sourced by modern biotechnology.

Today, LCAs based on diets with identical nutritional value as the functional units, can compare the use of supplemental amino acids in animal nutrition with equivalent amounts of these essential building blocks from natural protein sources such as soybean meal and rapeseed meal.

The overall principle applied in LCAs is the comparison of substantially equal feed sources. That means two options are always drawn to provide the same nutritional recommendations of the animals. One option covers the nutritional demand of essential amino acids through natural sources such as soybean meal or rapeseed meal. The other provides the same amount of nutritionally recommended amino acids by synthetic sources.

Additional quantities of domestically or locally produced wheat is added to balance the energy content of the different diets. Thus, 118kg wheat supplemented with 1.0kg of an amino acid premix consisting of methionine, lysine and threonine can substitute 119kg of a feed based on soy meal and soy oil, or alternatively 126kg wheat supplemented with 1.0kg of an amino acid premix will substitute 127kg of a feed based on rapeseed meal, rapeseed oil and soybean meal.

An independent LSA on greenhouse gas emissions from the use of supplemental methionine was recently conducted by the International Council of Chemical Associations (ICCA) in collaboration with McKinsey. The common procedure of the ICCA-approach was to identify a specific ratio between emissions caused by chemical production and the overall savings of emissions during the application of the specific chemical substances during their product life. Th is demonstrated that globally for each 1 metric ton of CO2 emitted during the synthesis of methionine, in total 23 metric tons of CO2 emissions can be saved over the product’s life cycle. The basis of the calculation is the worldwide use of about 750,000 metric tons of methionine which is the actually assumed market volume for DL-Methionine.

Michael Binder studied Technical Biology at the University of Stuttgart focussing on Biochemical Engineering and Industrial Genetics. He obtained a PhD in Technical Microbiology from the same institution.

He is currently employed at Evonik Degussa GmbH working in the field of Feed Additives, Research & Development Biotechnology, and Marketing and Regulatory Affairs.

The area of eutrophication is another important environmental impact category, the use of supplemental methionine in broiler nutrition shows further impressive results: worldwide ammonia emissions can be reduced by 26 metric tons per ton of NH3 emitted in production as well as seven metric tons of nitrate per ton of NO3 – caused by production.

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INDUSTRY INSIGHT

Meeting demand sustainably Sustainable livestock production should be about animal welfare, the environment and profits says Franz Waxenecker.

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eat consumption in Europe and the world has come a long way since times when the tasty morsel was a rarity reserved for special occasions. Gone too are the days when meat was preserved mainly by smoking, drying or curing as a necessity to tide families through the cold winter months.

Despite the population explosion in the last century and the fact that far fewer people today are involved in farming, meat consumption has risen more dramatically since the last century than during any other period in history, thanks to the advent of large-scale commercial systems. Global food demand is estimated to double by the year 2050, from current levels.

Moving forward, sustainable production systems that take into account the environment, nutritional requirements of the animal and profitability of the business are pointing the way forward for the industry. Going ‘natural’ in the usage of animal feedstuffs is also no longer a choice.

Since the ban on antibiotic growth promoters (AGPs) in the EU in 2006, producers have had to find natural alternatives. These replacements, termed natural growth promoters, include compounds such as probiotics that assist in promoting gut health, organic acids, minerals and a host of non-nutritive feeds that increase the efficiency of nutrient absorption by the animal.

Way before the ban took place in 2006, Biomin was founded in 1983 with the vision of providing a natural way to nutrition. The use of natural products to unlock the potential of animal nutrition and enhance animal performance has always been the Biomin approach.

Responding to consumer and market demands for healthier, more natural sources of food, it is clear that much research needs to be done in looking at other available options in nutrition. The task has fallen on the nutritionist, scientist and veterinarian to keep discovering better ways to improve animal diets and health, while at the same time bearing in mind ecological and economic constraints.

One of the challenges facing livestock producers is the high cost of feed raw materials, which makes up the bulk of production costs. Furthermore, agri-commodity prices are expected to move on an uptrend in the coming years due to competing demands for global grain and oilseed production from the food, feed and biofuels sectors. It therefore becomes paramount to improve efficien-

cies and add value through other means, such as quality genetics, improved farm management and biosecurity, and more precise feed formulation using a combination of feed ingredients and additives that best enhance the animal’s health and performance.

Feed safety is at the heart of safe, profitable animal production. By applying knowledge from life-sciences and nutrition, economics and ecology, Biomin’s NutriEconomics programme provides a holistic approach to safe and efficient animal nutrition. Th is approach considers animal nutrition in the light of business profits and the natural environment. The economic consideration towards formulating diets is not simply based on the cost of ingredients but also the benefit that is accrued to the animal in terms of health and performance.

Agriculture production systems affect and are in turn also affected by the ecological environment in which they operate. Methane gases, animal wastes and odour nuisances are some of the pollutants resulting from livestock activities. Methane expelled from livestock not only contributes to greenhouse gas emissions, it also reduces the energy consumed by an animal by up to 10 percent.

Lowering methane emissions could simultaneously raise the level of feed efficiency and energy capture.

As an animal nutrition company dedicated to the natural way of nutrition, Biomin is committed towards improving the use of scarce production resources to achieve the end goals of sustainable, ecologically sound yet profitable animal farming. By understanding the requirements of high quality animal diets and considering the effect that nutrition can have on limiting the environmental impact of farming, the performance and therefore, welfare of the animal and sustainable future of agriculture can be secured.

Franz Waxenecker graduated from the University of Natural Resources and Applied Life Sciences in Vienna. He did his degree in the field of animal nutrition, with a focus on monogastric animals.

Today he holds the responsibility for product development at Biomin.

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ANIMAL HEALTH

Preventative measures Considering the damage that can be caused by outbreaks of disease, taking measures to prevent this is definitely worth the investment.

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n the last issue of Next Generation Food we featured an article on the 2009 outbreak of swine flu that swept through 207 countries worldwide and killed 8768 people (as of November 29, 2009). In the article we looked at what needs to be done to prevent future outbreaks of zoonotic diseases such as the H1N1 virus from occurring in the first place.

Studies on various severe influenza pandemics have shown that outbreaks of viruses such as swine flu could cost the global economy between $3 trillion and $4.4 trillion. Th is is supported by the worst-case scenario figures for a possible flu pandemic unveiled by the World Bank last year, which predicted a cost of $3 trillion to the global economy or a 4.8 percent shrinkage.

Clearly preventing such outbreaks from occurring has to be in the interest of the global community. The European Union has recognised this and on November 26, 2009, the European Commission adopted a financial package of €275 million to support programmes to monitor, control and eradicate animal diseases in 2010. The EU’s generous contribution towards such programmes clearly reflects the high level of importance attached to disease eradication measures, for the protection of both animal and public health.

“The motto of our animal health strategy is ‘prevention is better than cure’. If the spread of certain animal diseases is not prevented, it can affect both animal and public health. That is why we are prioritising programmes covering diseases that might be transmitted to humans,” said EU Health Commissioner Androulla Vassiliou.

Each year the Commission approves programmes aimed at monitoring and eradicating zoonotic diseases. These approved programmes then receive financial contributions from the EU. For 2010, a total of 224

eradication, control and monitoring programmes for animal diseases and zoonoses have been approved.

In addition, 76 annual or multi-annual programmes to eradicate 10 important animal diseases have been granted Community financial support.

The total EU contribution to these programmes is around €174 million.

Diseases that can be transmitted to humans are being prioritised in 2010, with significant sums earmarked for the eradication of brucellosis, tuberculosis and rabies. In recent years, programmes that have been implemented in Western Europe have successfully served to virtually eradicated rabies and based on this, most of the activity in 2010 will be focused towards the Member States on the Eastern border of the EU, who will be allocated €12 million of the budget.

The budget has been increased for 2010, mainly due to allocations to counter Bluetongue disease in many Member States and the approval for the first time of a Bovine Tuberculosis eradication programme for the UK. The EU will be providing €12 million in funding for Ireland, €10 million for the UK and €7.5 million for Spain to go towards TB programmes.

A financial contribution of €26 million has also been allocated to control zoonotic salmonella in poultry and turkey flocks in 25 member states. Surveillance for avian influenza in poultry and wild birds will also continue in 2010 with financial assistance from the EU towards laboratory testing and wild birds sampling costs. The Member States will benefit from more than €4 million for this purpose.

The consequences of zoonotic pandemics, both in economic terms and in terms of animal and human casualties, can be particularly devastating as we have seen. Prevention may well be costly, but at least we have realised that we can no longer afford not to give the surveillance, prevention and eradication of zoonotic diseases the attention and financial resources it deserves.

“Outbreaks of viruses such as swine flu could cost the global economy between $3 trillion and $4.4 trillion”

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Opportunity knocks The Copenhagen climate conference has been described as “an opportunity the world cannot afford to miss” by Danish Prime Minister Lars Loekke Rasmussen. With this in mind NGF takes a look at how the food and drinks industry is rising to the challenge.

“We’re finding ways to drive fewer miles, reduce inventory piles and eliminate idling trucks. We’re collaborating with customers and suppliers. And we’re using a number of high-tech innovations for our trucks and warehouses to reduce energy and CO2 emissions” Steve Yucknut, Vice President, Sustainability, Kraft Foods Inc.

“The reduction of our carbon emissions in order to maximise efficiency, minimise waste and reduce our environmental impact remains central to our strategy. By 2020, we have a global aim to reduce our direct and indirect emissions of gases impacting on the climate by 25 percent” Iain MacDougall, Group Energy Manager, Arla Foods UK plc

“Carrefour is strongly committed to reduce and limit greenhouse gas emissions. Now the latest proof of this is we have taken the decision to go even further by increasing 30 percent our energy efficiency by 2020” Lars Olofsson, CEO, Carrefour

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“If we are serious about tackling climate change, we need to be ‘absolutely’ committed. This means re-thinking the way we do business, embedding sustainability into every decision we take. Not only will this have a strong social and environmental impact but also a positive economic impact too in the longer term” Todd Stitzer, Chief Executive Officer, Cadbury

“A low-carbon strategy is also vital if we are to minimise the risk to our business: the physical threat of climate damage to our supply chains, the resulting economic damage; and the serious effects of rushed and inefficient regulation if we fail to act in time and governments are forced to take draconian action” Sir Terry Leahy, Chief Executive, Tesco

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FOOD WASTE 140

Counting the cost

It is estimated that food wasted by the US and Europe could feed the world 3 times over!

Why Europe needs a war on waste The amount of perfectly good food thrown out by consumers, retailers and producers across Europe is simply staggering. As these figures from the UK demonstrate, the financial and environmental implications of our profligacy are immense. If food companies and their customers are serious about operating and living sustainably, everyone needs to take a long hard look at what ends up in our rubbish.

6.7million

tonnes of food is wasted

by UK households every year

30.8%

of all food purchased in the UK is thrown away

how much is it costing the UK?

The UK pays for but does not eat up to

€11.3 billion of good food each year That is twice the amount the government spends on foreign economic aid

70kg

€466

the amount each person throws away each year

how much it costs each household per year

unopened food... how much does it cost UK households?

1.2 million tonnes of food is thrown away in its packaging

Whole and unopened fruit €570 million a year

Whole and unopened veg €277 million a year

Unopened bakery goods €333 million a year

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FOOD WASTE 141

how much do we waste?

Meat meals 120m

yoghurts 484m

potatoes

grapes 4.8 billion

1.9 billion

sausages 440 million

apples

2.6 billion

bread rolls 775m

slices of bread

2.6 billion

tomatoes

1 billion chocolate and sweets 259m

bacon rashers

200m

the most common foods we waste and their equivalent weights potatoes 359,000 tonnes

51,285 lorries

bread 328,000 tonnes

46,857 lorries

apples 190,000 tonnes

27,142 lorries

23,000 lorries

161,000 tonnes

the environmental impact of wasting food

x If we stop wasting food the CO2 impact would be 20% of the UK’s greenhouse the equivalent of gases are associated with That’ll save 15 million tonnes of CO2 equivalent. food production, distribution and storage

COMMENT 142

Not such a sweet deal What effect will the Kraft/Cadbury takeover bid have on the global confectionery industry?

Marie Shields reports.

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he numbers are by now well known: in late August, the board of British confectionery company Cadbury rejected a buyout bid from American Kraft Foods that was valued at UK£10.2 billion (€11.27 billion) in cash and stocks, or 745p (€8.23) per share. Board members said they wanted at least 800p (€8.84) per share for the company.

In November, Kraft went directly to Cadbury shareholders with a hostile bid. However, because Kraft’s share price had fallen in the intervening months, the new offer came in at just UK£9.8 billion (€10.82 billion) or the equivalent of 717p (€7.92) a share. Cadbury’s Chairman, Roger Carr, commented at the time that, “Kraft’s offer does not come remotely close to reflecting the true value of our company, and involves the unattractive prospect of the absorption of Cadbury into a low-growth conglomerate business model.”

Despite the rebuff, Kraft won’t take no for an answer. In December, it released the offer documents outlining its November proposal, and Cadbury shareholders will have until early February to decide whether to accept it. Cadbury shares closed at 800p (€8.84) just before the documents were released, while Kraft shares were trading at US$26.60 (€17.69) in New York.

So why does Kraft want Cadbury so badly? Two reasons could be the good performance of the branded sweets market in an economic downturn, and its ability to transcend national and cultural boundaries in a way that other food products – macaroni and cheese, for example – do

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not. Cadbury’s many well-known brands, including Dairy Milk, Flake and Trident, perform well around the world and are particularly strong in emerging markets such as India and China.

Kraft’s offer leaves Cadbury shareholders with a difficult choice.

They could reject the bid and possibly suffer a drop in share price back to pre-bid levels of 568p (€9.28). Or they could accept an offer that their board claims undervalues the company.

Should the deal go through, analysts predict the combined company would move into the top spot in the global confectionary industry, ahead of Mars, which currently has 15 percent of worldwide market share. Th is would create such a large gap between the top two and the rest of the field that no further merger, no matter how large, would be enough for the others to catch up.

There is more than just money at stake: commentators in the UK have been whipping themselves into a patriotic frenzy at what they see as the potential demise of a much-loved British institution at the hands of a heartless American conglomerate. They claim the company’s prospective owners would outsource manufacturing, cut back on staff, jettison Cadbury’s original philanthropic Quaker mentality and jeopardise the company’s social policies in its developing world locations.

With Cadbury beginning its defense against Kraft’s bid in midDecember, the outcome is anyone’s guess. It will be worth keeping a close eye on the sweets over the next few weeks, and not just the ones under the Christmas tree.

16/12/09 09:38:16

FOOD FOR THOUGHT 143

NGF takes a look at some of the latest books on food safety.

Food, Risk and Politics: Scare, scandal and crisis - insights into the risk politics of food safety

By Ed Randall

When food-related scandals hit the headlines they can have a negative impact on policy making.

In this book, Ed Randall emphasises the necessity for well-informed and transparent public debate regarding food safety issues, as he believes that this is the true antidote to the politics of scare, scandal and crisis.

NGF SAYS: A particularly rewarding read for anyone involved in food science, this book promises to help us all manage food safety issues more intelligently and successfully.

Perspectives on Food-Safety Issues of Animal-Derived Foods

By Steven C. Ricke and Frank T. Jones

Integrity of the food supply chain is something that has become increasingly important for consumers over the past few years and food-borne illnesses in particular present a worry. Although progress has been made to reduce the incidence of food-borne diseases originating from animal-derived foods, food safety remains an important issue. Although this book is from a US perspective, the 24 essays that present research into five significant areas of food safety are nonetheless relevant in Europe.

NGF SAYS: An insightful read, which aids the understanding of pathogenic bacteria in poultry, beef, and pork and offers advice on how it should be controlled.

The 2009-2014 Outlook for Food Safety Testing in Europe

By Professor Philip M. Parker Ph.D

Th is book provides an econometric study covering the outlook for food safety testing in Europe. It provides estimates for the latent demand, or potential industry earnings (P.I.E.), for numerous countries and it also shows how the P.I.E. is divided across the national markets of Europe. It does not however provide detailed analysis of the major players in the market or actual sales data.

NGF SAYS: An in depth study into the economic outlook of the European market for food safety.

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17/12/09 08:52:22

PHOTO FINISH 144

Fun with food

T

his November, London’s iconic skyline was transformed into an edible healthy landscape using no fewer than 26 different types of fruit and vegetables ranging from green beans to kumquats. The images, commissioned by UKTV channel Good Food from the world renowned photographer Carl Warner, complement the channel’s strapline “we have fun with food” and see Big Ben’s face transformed through slices of lemon while an edible version of The Houses of Parliament is created with a mix of asparagus, green and runner beans subtly mixed with baby sweetcorn. The fi nished artwork took Carl Warner and his team of five model-makers three weeks to craft , construct and compile.

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