SIG partnership showcases recycling in action at Mexico fun park

SIG has teamed up with soft drink producer Sociedad Cooperativa Trabajadores de Pascual (SCTP) and fun park operator Ventura Entertainment to raise awareness of the importance of recycling through special collection bins made from recycled carton packs at La Feria de Chapultepec amusement park in Mexico.

Brand power to raise awareness

SIG’s aseptic beverage cartons are 100 % recyclable, but the rate of packs recycled remains low in Mexico due to low awareness of the value of recycling and a lack of suitable waste collection systems.

The new Coopera Recycling Campaign from SIG, SCTP and Ventura Entertainment aims to use the power of popular brands to raise awareness of the value of recycling among consumers of all ages. SCTP is one of Mexico’s largest soft drinks producers and the name behind Boing!^® fruit drinks. Ventura Entertainment is one of the country’s biggest attractions operators and its La Feria de Chapultepec fun park attracts over 1.5 million visitors a year.

In the first phase of the campaign, SIG will provide 15 recycling containers to be placed around the park. Each is made out of a mix of polymer and aluminium that comes from around 7,000 recycled carton packs, providing a tangible example of recycling in action. Accompanying signs promote recycling and Ventura Entertainment will offer discounts on ticket prices for amusement activities for visitors who use the recycling bins. The empty cartons will be recycled by specialist company Alcamare.

Keeping high-quality materials in use

Encouraging consumers to recycle beverage cartons supports the circular economy by returning more materials into the value chain to produce new products. SIG’s cartons are made from mainly renewable materials in the first place so recycling them keeps high-quality renewable materials in circulation.

Contributing to the circular economy by using renewable content, optimising use of materials and promoting recycling after use is part of the company’s commitment to go Way Beyond Good by putting more into society and the environment than it takes out.

Tate & Lyle PLC announces that Kimberly (Kim) Nelson will join the Board as a non-executive director and a member of the Audit and Nominations Committees on 1 July 2019. Kim brings extensive experience and knowledge of the food and beverage industry to the Board having worked for General Mills Inc. for nearly 30 years. During her career at General Mills, she held a number of senior brand and general management roles before becoming Senior Vice President, External Relations in 2010. Kim retired from General Mills Inc. in 2018. She is a US citizen.

The following changes to the Board and Board Committees will take effect at the conclusion of the Company’s AGM on 25 July 2019:

Board

• Douglas Hurt will retire from the Board, having served as a non-executive director since March 2010, as the Chair of the Audit Committee since March 2015 and as Senior Independent Director since January 2017.
• Warren Tucker is appointed as Chair of the Audit Committee.
• Paul Forman is appointed as Senior Independent Director.

Board Committees

• Dr Ajai Puri will step down from the Remuneration Committee and join the Audit Committee.
• Sybella Stanley will step down from the Audit Committee and join the Remuneration Committee.
• Paul Forman will step down from the Remuneration Committee.

Dr Gerry Murphy, Chairman of Tate & Lyle, said: “I am delighted that Kim has agreed to join the Board. Her appointment recognises the importance of the US to Tate & Lyle, in terms of our customers, operations and employees. Her substantial experience in the food and beverage industry will be of significant benefit to the Board.”

“I would like to thank Douglas Hurt for his nine years of outstanding service and significant contribution to the Board and, in particular, for his time served as Chairman of the Audit Committee and as Senior Independent Director.”

There are no further disclosures to be made in connection with Ms Nelson’s appointment pursuant to paragraph 9.6.13 of the Financial Conduct Authority’s Listing Rules.

Symrise has announced the company’s investment in and the creation of a strategic partnership with Califormulations, LLC, a unique platform designed to deliver end-to-end beverage innovation to consumer packaged goods (CPG) companies and their brands. Califormulations, LLC combines the expertise of Symrise, including its Beverage Innovation Centers in Laguna Beach and Teterboro, with the offering of The Green Organic Dutchman Holdings Ltd. (TGOD).

Paul Graham, President, Symrise Flavor North America, stated, “Major packaged goods companies put their focus on agile innovation to help fuel growth around their core brands. Agile venturing and creative innovation sprints will replace the traditional and often time-consuming ‘stage gate’ innovation funnel and are changing innovation sustainably.”

Califormulations, LLC fully embraces this approach. The company is run by an industry experienced management team and built on a business model that is designed for speed, agility, flexibility and focused innovation, with each investor harnessing specialized expertise.

The new platform combines beverage expertise and innovation capabilities with the ability to quickly develop shelf-ready, scalable products. Customers will have access to the expertise located at three locations: the newly formed Califormulations, LLC location in Columbus, Georgia, with 100,000 sq ft for beverage development, multi-purpose production, pilot scale flexible bottling and shelf-ready, scalable packaging; Symrise’s regional headquarters in Teterboro, New Jersey, providing global expertise in flavor solutions, including taste for sugar reduced products; and the specialized Symrise Beverage Center in Laguna Beach, California, to inspire creativity in beverage product concepts.

Utilizing the expertise located at these three locations, Califormulations, LLC in cooperation with Symrise will deliver a rapid innovation approach composed of four integrated parts: Insights & Design, Prototyping & Evaluation, Development & Production and the Activation Ecosystem.

The Symrise team brings a proven reputation in beverage innovation and incubation, a comprehensive portfolio of consumer insights, a strong footprint in beverage and CPG accounts including core listings with global brands. TGOD adds a new element to the business through their expertise in producing premium organic cannabinoids. Using sustainable growing practices, TGOD offers organic CBD and other organic cannabinoids where allowed by local laws and regulations. The end result is a unique, agile, end-to-end approach to innovation with full project management across every step.

Paul Graham concluded, “The complementary capabilities of Califormulations, LLC will foster innovation and scale new, successful brands quickly.”

As of 2020, both trade shows will be co-located and alternate between Germany and France

Fi Europe, the leading trade show for food and beverage ingredients, and Hi Europe, its counterpart for health ingredients, will become co-located events, alternating between Germany and France. Fi Europe co-located with Hi Europe will be the most comprehensive food ingredients trade show covering specialty food ingredients from sensory to functional, as well as processing solutions and services across the whole supply chain. On 1 December 2020, Fi Europe and Hi Europe will open the doors as co-located events in Frankfurt for the first time.

The strategic decision to co-locate the two events was based on extensive research conducted amongst visitors and exhibitors. Over 65 percent of exhibitors stated that they would support an annual co-located Fi Europe and Hi Europe, and 75 percent of visitors confirmed that they would visit the show every year. When asked about innovation, more than 80 percent of both visitors and exhibitors stated that they had launched a new product or a new ingredient in the past 12 months – a statement that backs the decision to offer a yearly event at which novelties can be shared with a wide audience while they are still “hot”.

With this new co-located setup, organiser Informa Markets is taking into account the rapid pace with which new trends, consumer demands, and challenges now occur. Group Director Natasha Berrow explains: “We want to offer our exhibitors and visitors a trade show that is unique not only in its thematic coverage, but also in its innovative and fresh character. It should be a platform for tomorrow’s trends, not only today’s. We want to give our exhibitors and visitors a wider spectrum of alternatives and options. With Germany and France alternating as hosting countries, we will be covering the two most important markets for the European food and beverage industry,” says Berrow. Importantly, both countries are central and accessible hubs in Europe for visitors as well as exhibitors.

Julien Bonvallet, Fi Europe Brand Director, comments: “Clean label, free from, sustainability and functionality are the trends that have moved and advanced the industry in recent years, and they have a common denominator: the health-conscious consumer. With a desire for better, more natural and healthier food and beverages this consumer has brought those issues to the table.” Many food and ingredients manufacturers therefore now offer functional products or specialist foods within their portfolios, in addition to standard solutions – and more and more ingredients’ suppliers already exhibit at both events. As innovation cycles become shorter and shorter, exhibitors and visitors alike expect to be able to attend an event every year. By bringing together the most diverse audience yet, the co-location of the two shows provides the ultimate opportunity to do business face-to-face with top buyers and specialists from across the F&B supply chain.

This year’s Fi Europe & Ni will remain unchanged as a single event, running from 3-5 December in Paris. Following Frankfurt in 2020, Fi Europe, co-located with Hi Europe, will return to Paris in 2021.

As the harvesting of the 2019/20 orange crop steps up in the orchards of São Paulo, citrus prices dropped in the in natura market in April – this scenario should still be observed in May. Besides the higher supply of all varieties, the share of fruits that have not reached the ideal maturation stage for the in natura sector yet increased pressure on quotes.

Concerning early oranges (rubi, hamlin and westin, for instance), trades have been closed since March. However, only in late April these fruits reached a maturation stage closer to that demanded by the in natura market. Thus, the average price for hamlin oranges last month was 23.78 BRL per 40.8-kilo box, on tree, 14 % down compared to that in March.

As for pear oranges, the first fruits from the 2019/20 crop that were harvested had lower quality for the in natura sector, which pressed quotes in April. Thus, the price average last month, at 31.80 BRL per 40.8-kilo box, was 24.7 % lower than that from March. According to Cepea collaborators, the harvesting anticipation was an attempt of taking advantage of the high price levels – as growers are aware of the estimates indicating that the 2019/20 crop should be larger than the 2018/19, they fear that the prices paid for the fruits may drop sharply in the coming months.

For May, oranges quotes are expected to keep dropping, at least in the first fortnight. Besides the forecast for higher quality and supply in São Paulo, the crushing pace at processing plants should continue slow in the first days of the month. This scenario leads the early oranges that would be allocated for crushing to be sold in the in natura market.

2019/20 CRUSHING – The growers from São Paulo believe that the orange production in the 2019/20 season may be up to 40 % higher than that from 2018/19, based on orchards higher productivity. Higher supply in the new season, however, should allow the opening of new plants of the large-sized processing plants from SP this month. Higher crushing, however, is forecast only for June, when most fruits should reached the maturation stage desired by the sector.

Currently, only two plants of the large-sized processing plants are operating, in Araraquara and Matão. However, while one of them is still receiving fruits in the spot market, remaining from 2018/19, at 18 BRL per 40.8-kilo box, harvested and delivered at processing plants, the other is only receiving the oranges previously purchased, at more advanced maturation stages. Concerning the prices for the next season, remuneration in the spot market has not been defined yet.

Most decisions to buy are made directly at the point of sale: the significance of product presentation is growing, with an attractive visual appearance becoming ever more important. KHS is therefore now also offering its successful Innoket Neo labeling series for cans to manufacturers of small batches and producers with a high brand variety. The machine opens up new avenues in product marketing and flexibility in production. Warehouse capacities are reduced and energy is saved.

Images of production shops filled with pallets of differently printed empty cans will soon be a thing of the past. Says Cornelius Adolf, labeling product manager for KHS, “We’ve expanded our existing portfolio to include can labeling to give the customer more design options and enable these designs to be implemented faster with smaller warehouse capacities.” This is because minimum order quantities and long delivery times for empty cans limit flexibility. It is now possible to order unprinted cans within a much shorter period and to label them using the KHS Innoket Neo, thus simplifying logistics processes.

Wrap-around labels with optical alignment

The Innoket Neo can be used to apply self-adhesive film or paper labels. Here, the container can be either partly or fully wrapped with a label – including optical alignment. “The look and feel are unique”, is how Adolf explains the results of the self-adhesive labeling method. With this technology beverage producers can also respond much more rapidly and flexibly to the steadily growing variety of products and labels on the market. With this system the design or logo can be changed within a few hours and the cans dressed with suitable motifs. “Customers can even print their own labels. This considerably shortens the time to market. An attractive product is a clear distinguishing criterion at the point of sale,” says Adolf. As no cans with varying motifs have to be ordered, costs are also cut as higher numbers of unprinted containers can be purchased.

The space-saving machine with its 14 can plates driven by servomotors comes from the established Innoket Neo module system and gives manufacturers of small batches and producers with a great variety of brands many benefits. At high machine availability up to 35,000 full or empty cans in all standard sizes can be labeled per hour. The machine can be positioned upstream or downstream of the filler. Format changeovers are quick and do not require any additional tools. The labeler also has a high level of energy efficiency, with a power consumption of just five kilowatts per hour.

The range, which now includes DuPont^™ HOWARU^® premium probiotics, is specially designed for fermented plant-based products, responding to key health, wellness and taste and texture trends

DuPont Nutrition & Biosciences (DuPont) announced a new cultures line that contains its premium HOWARU^® probiotics which are specially designed for fermented plant-based products to deliver clinically backed health benefits. The DuPont^™ Danisco^® VEGE cultures range offers desired taste and texture profiles in non-dairy applications. New additions to this range – HOWARU^® Dophilus VG, which contains Lactobacillus acidophilus NCFM^® and HOWARU^® Bifido VG, which contains Bifidobacterium lactis HN019^™ – have highly documented, positive results in human studies for digestive health and well-being.

Available in single strain form, this range is non-dairy, non-animal, non-allergen, non-GMO, and is suitable for vegan diets. It also is easy to integrate with existing cultures used in plant-based fermented food and beverage formulations.

“Digestive wellness is one of the top global trends for 2019. As consumers continue to make health and wellness part of their daily routines, they’re looking for benefit-focused options,” said Sonia Huppert, Global Product Leader, Plant-Based Products, DuPont. “Digestive health is an area where consumers can feel the benefits immediately. Symptoms like bloating and irregularity are treated with diet changes and with new products. Innovations in fermentation and probiotics can truly deliver solutions in this area.”

DuPont conducted a research study with Global Data Insights to ascertain consumer perception of probiotics. When asked the impact respondents believe that probiotics have on health and wellness, 46 percent of the nearly 12,000 respondents in Europe said probiotics had a positive effect, and 65 percent of respondents in the United States responded positively.

Validated by robust clinical trials, the HOWARU^® brand is a high activity, premium probiotic product with high performance, high stability and high functionality as its hallmark traits.

These cultures not only respond to important wellness trends, but also to the increased demand for plant-based foods and the constant desire for great taste and texture. DuPont^™ Danisco^® VEGE cultures were developed for a wide-ranging variety of plant-based raw materials, such as soy, peas, coconut, almond, nuts, oat, maize, rice, fruits and vegetables, to satisfy consumer taste and texture expectations – from typical and appealing fresh, clean and mild flavors to new, pleasant unexpected flavors.

“We have the broadest portfolio for plant-based fermented foods and beverages and a deep passion to not only help deliver the food experience consumers desire, but also to bring the health benefits they’re continually seeking,” said Didier Carcano, Global Marketing Leader, Cultures, DuPont. “We aim to continue investing in this area, growing our probiotics expansion efforts and working with our customers to create essential health solutions for growth opportunities across the globe.”

From 16 to 18 May 2019, BIOFACH CHINA will open its doors at the Shanghai World EXPO Exhibition & Convention Center (SWEECC). Around 18,000 visitors and more than 350 exhibitors are expected at this 13th round of the event. Companies from almost 20 countries, including among others China, Denmark, Germany, India, Poland, Sri Lanka or Taiwan, are set to create a highly international atmosphere at the event and will present the latest organic trends. In 2019, Romania has the distinction of being “Country of the Year”. BIOFACH CHINA is organised and executed by the NürnbergMesse Group with its new partner, the government research institute Chinese Academy of Inspection and Quarantine (CAIQ). Running in parallel, the NATURAL EXPO CHINA, which showcases natural products that are undergoing the process of organic certification, will make its debut. At the same time, the CRAFT BEER CHINA Conference & Exhibition and PAK-iD – Shanghai International Intelligent Packaging Equipment, New Material & Creative Design Forum will be held at the same venue, offering exhibitors and visitors alike opportunities for new inspiration and business connections.

Project Director Ethan Shi from NürnbergMesse China very much welcomes the promising collaboration with the new partner: “The CAIQ will provide important support to advance the development of China’s organic sector. Our new partner will use its extensive resources to also strategically promote the growth of BIOFACH CHINA. In turn, we are ready to support China’s organic product innovation and intensively explore the various market segments. In a nutshell: this collaboration has an extensive reach!”

But it’s not just because of the new partnership that Shi excitedly anticipates the forthcoming BIOFACH CHINA: “For this 13th round of the exhibition I am also delighted about the launch of NATURAL EXPO CHINA, which offers a platform to all those market participants that are not or not yet organically certified.”

“Country of the Year”: Romania

As well as creating various synergies, BIOFACH CHINA will once again offer an inspiring supporting programme in 2019. Following on the heels of Denmark in 2017 and New Zealand in 2018, it’s now Romania’s turn to enjoy the spotlight as “Country of the Year”. At a stand conveniently located in the exhibition area, representatives of Romania will exhibit their typical organic products, explain regional differences, display the country’s latest organic trends and offer a point of contact for all interested visitors.

Sector gathering for organic specialists

In addition, BIOFACH CHINA will once again position itself as China’s main sector gathering for a large number of organic specialists. The NATURAL EXPO CHINA, which is making its debut, will put the spotlight on natural products that are in the process of becoming organically certified. In the “China Organic Vegan Forum”, experts will discuss vegan and organic food. Another newcomer this year is the “Organic Maternal and Infant Product Channel Forum” featuring topics and products targeted at pregnant women, new mothers, or families receptive to organic food. Trend scouts will find plenty of exciting innovations from the organic scene at the “Innovative Product Launch Zone”. At the same time, the accompanying “Conference on International Organic Product Market and Development” is the first place to look for publications on the latest organic trends in the Chinese market and for in-depth knowledge of the sector.

Following a stellar 2018, in which BeatBox Beverages, LLC showed YOY growth of 108.5 percent in revenue, 310.7 percent in depletions and 446.7 percent in points of distribution, the company is adding Fresh Watermelon to its Party Punch range, joining Pink Lemonade, Fruit Punch, and Blue Razzberry.

Available now for order in Alabama, California, Florida, Georgia, Michigan, North Carolina, Ohio, South Carolina and Texas, BeatBox Beverages President Mark King anticipates shelf-presence this month. Trademarked “The World’s Tastiest Portable Party Punch,” the flavored, wine-based Fresh Watermelon Party Punch is offered in a 500 mL single-serve resealable Tetra Pak (SRP: $3.99; 12 per case; ABV 11.1 percent). In 2018, Tetra Pak sales were up 14.2 percent, with volumes up 13.2 percent (Wine & Spirits Daily), and both RTD and single-serve buying trends grew by more than 20 percent each.

About BeatBox Beverages, LLC
United through a love of music and inspired by the entrepreneurial spirit of Austin, Texas, in 2013 the founders of BeatBox Beverages set out to create something that could help everyone #PartyBetter. By 2014, they ended up on Shark Tank with their Party Punch, walking away with a million-dollar investment from Mark Cuban, the biggest investment the show had ever made. With a proven track record and ongoing mission of creating products that drive incremental profit in high-growth categories – and a team of industry veterans with experience in developing, launching and quickly growing brands – BeatBox Beverages is broadening its portfolio across brands and categories at a steady rate.

SIG is the first in the industry to enable customers to demonstrate their commitment to responsible aluminium sourcing using the Aluminium Stewardship Initiative (ASI) certification.

Added value through responsible sourcing

SIG offers the world’s first aseptic carton packs that use foil certified to the ASI standard. This add value for customers, brands and retailers by promoting responsible sourcing throughout the value chain – from suppliers all the way through to consumers.

SIG customers also have the option to include the ASI label on packs to show consumers that SIG sources responsibly the aluminium it uses in the cartons – in the same way they can already include the FSCTM label on any SIG pack to show that the liquid paper board comes from responsible sources.

First certification for responsible aluminium

SIG was the first in the industry – and one of the first companies in the world – to achieve certification to the ASI Performance Standard Material Stewardship Principle at the corporate level, together with the ASI Chain of Custody certification for its production site in Austria. The company has now extended ASI Chain of Custody certification to all its carton sleeve production sites in Europe.

The ASI certification enables companies to audit the aluminium supply chain against strict standards on a broad range of ethical, environmental and social topics. Previously, there was no such certification available to certify the ultra-thin layer of aluminium foil used in SIG packs. SIG’s ASI Chain of Custody certification has made it possible for the ASI Standard to be put into practice for the first time in aseptic carton packs.

Europe-wide ASI certification is an important step towards SIG’s target to source 100 % of its key materials from certified sources as part of its ambition to go Way Beyond Good for the environment and society.

Detection and Enumeration of Spore-forming Thermo-Acidophilic Spoilage bacteria (Alicyclobacillus spp.)

This third edition cancels and replaces the second edition (IFU Method No. 12: 2007), which has been technically revised.

The main changes, compared to IFU Method No. 12:2007, are the following.

• The tittle of the method has been changed.
• The optional usage of several media has been changed to the usage of one liquid (BAT broth) and one solid medium (BAT agar).
• A new pour plating technique is introduced for enumeration in 1 g.
• Performance testing for the quality assurance of the culture media has been added to Annex B.
• Performance characteristics for this method have been added to Annex D.
• Optional pre-incubation of packed ready-to-drink products has been added to Annex E.
• Matrix-dependent special processes have been added to Annex F.

This method has been revised and has been loaded onto the IFU website. Please select the heading Methods of Analysis and the drop down menu Microbiological Methods. The method is available to corporate members as part of the subscription. Non members can buy the method via the store link on the website

Arla Foods Ingredients is injecting some fizz into the sports nutrition category with its new Lacprodan^® HYDRO.Clear. The advanced 100 % whey protein hydrolysate solution is specially developed for formulating sparkling protein waters.

Lacprodan^® HYDRO.Clear is fat and sugar-free and delivers optimized taste, a low bitterness profile and long shelf life. It is lactose-free, low in energy, very low in salt and easy to flavour.

Full-scale factory trials have shown that Lacprodan^® HYDRO.Clear can be used to produce sparkling water products with up to 6 % protein. This makes it straightforward for sports drinks manufacturers to create crystal-clear, sparkling, high-protein RTD beverages with strong health credentials.

Joe Katterfield, Health and Performance Nutrition Development Manager at Arla Foods Ingredients, said: “With Lacprodan^® HYDRO.Clear it is possible to produce a great-tasting, high-protein sparkling water. This means that sports nutrition brands can launch, for example, a standard 330 ml can containing 20 g of whey protein per serving, making it perfect for sports nutrition users. The concept is also ideal for lifestyle and soft drink brands, as it allows them to offer a great source of protein in convenient and refreshing on-the-go format that will appeal to all ages.”

Sales of sports protein drinks increased by an average of 9.5 % a year between 2013 and 2017 and are forecast to grow by 8.4 % annually between 2018 and 2022 – highlighting consumers’ thirst for these products.^[1] Sales of functional and fortified waters, meanwhile, rose by 4 % a year from 2013-2017 and are forecast to grow by 6 % a year from 2018-2022. The carbonates segment is also robust, with a 22 % a year increase in new launches globally between 2007 and 2017.^[2]

Joe Katterfield added: “Market conditions are ideal for launching sparkling protein waters targeted at sports nutrition users, a group of consumers who are always on the look-out for products that deliver high levels of whey protein in a convenient format. However, for technical reasons – primarily related to issues around taste and bitterness – there are currently no sparkling protein waters on the market made exclusively with whey. In this respect, Lacprodan^® HYDRO.Clear is a game-changer, enabling manufacturers to incorporate 100 % whey protein hydrolysate into crystal clear carbonated beverages.”

^[1]Euromonitor 2018
^[2]Innova Market Insights 2018

TOP bv from Wageningen will outsource the sales and marketing of food processing equipment to Like Fresh. All equipment that is produced in series by TOP will be marketed by Like Fresh, starting this week. This will allow TOP to continue to focus on the development of new technologies.

TOP is the innovation organization behind successful introductions such as the Cold Press, Pluckr, PurePulse, Hygienisator and Compact Food Dryer. The demand from the food industry for these technologies is high, as a result of which the equipment is now produced in series. To maintain its unique innovation capabilities, TOP has decided to outsource the marketing of this equipment to Like Fresh.

TOP will continue to focus on the development of highly innovative food processing technologies. In addition, TOP will continue to offer consultancy projects for customers, and provide Like Fresh with the necessary engineering support.

Like Fresh – a sister company of TOP – is a new organization in which years of experience in the food industry has come together. “We offer extensive knowledge of the latest developments in mild preservation and storage of fruit and vegetables”, says Rob Veltman, director. “Like Fresh provides high-quality solutions for producers around the world, such as new process lines or innovative applications within existing processes. In this we work together with the engineers from TOP and other innovation partners.”

Novozymes: Full-year earnings outlook maintained after early-April upgrade. Narrowed sales growth guidance following weakness in US bioethanol.

Novozymes announced its results for the first three months of 2019. All businesses developed roughly as expected except for a weaker US bioethanol industry. Organic sales growth of -4 %: Household Care -3 %, Food & Beverages -2 %, Bioenergy -8 %, Agriculture & Feed -6 %, Technical & Pharma +5 %. EBIT margin 25.7 %. Net profit 14 % lower year on-year (y/y). Free cash flow before acquisitions DKK 0.4 billion.

Peder Holk Nielsen, President & CEO: “The first – quarter decline in sales was no surprise – we communicated this back in January. We also expected US bioethanol to be down, but the decline was larger than we ha d foreseen. The flood s in the Midwest have made it tougher for our customers. With the problems continuing in to April, it will be difficult to reach the top end of the guided organic sales growth range , and we adjust our outlook to 3 – 5 %. We’ re confident sales growth will increase during the year as innovations, the freshness platform, BioAg seasonality and Bioenergy all step up, and the Middle East comparison gets easier.”

Highlights Q1 2019:

• All businesses roughly as expected except for Bioenergy. A declining US bioethanol market has been further impacted by the Midwest flooding since mid-March
• As expected, negative impact from the Middle East, feed enzymes and the planned price reductions in US baking enzymes
• Developed markets flat; 10 % organic sales decline in emerging markets, with the Middle East as the main drag
• EBIT margin soft but as expected at 25.7 %, mainly due to lower gross margin from lower sales and a planned increase in sales and distribution costs
• Net profit down 14 % y/y due to lower EBIT and hedging losses
• Free cash flow before acquisitions DKK 0.4 billion; net investments DKK 0.1 billion

2019 outlook: Organic sales growth 3 – 5 %; an expected 1 %-point added to growth in DKK. US bioethanol production in Q1 was more negative than expected, especially in the wake of flooding in the Midwest in March, continuing into April. The 3 – 5 % range reflects both strong new product performance and geopolitical uncertainty. Stronger growth in 2H vs. 1H y/y for multiple reasons. EBIT margin at 29 – 30 % supported by solid productivity gains and release of full deferred income as communicated on April 4 following the new BioAg setup. Net profit growth of 5 – 10 %. CAPEX at DKK 1.0-1.3 billion. FCF bef. acq. at DKK 2.0-2.4 billion. ROIC expected at ~24 % (~25 % excl. IFRS 16 Leases). Stock buyback program of up to DKK 2bn to be initiated April 25, 2019.

The entire earnings report can be downloaded at novozymes.com.

The Coca-Cola Company reported a solid start to 2019, with continued momentum that included gaining global value share. Reported net revenues grew 5 % in the first quarter, and organic revenues (non-GAAP) grew 6 %, with positive performance across all operating groups, in addition to a benefit from timing.

“We’re encouraged by our first quarter results as our disciplined growth strategies continue to deliver strong underlying performance,” said James Quincey, CEO of The Coca-Cola Company. “We remain confident in our full year guidance as we continue to make progress on our transformation as a consumer-centric total beverage company.”

Highlights

Quarterly Performance

• Revenues: Net revenues grew 5% to $8.0 billion. Organic revenues (non-GAAP) grew 6 %. An estimated 2 points of revenue growth was attributable to timing, primarily related to bottler inventory build in order to manage uncertainty related to Brexit. Additionally, the quarter included one less day, which resulted in an approximate 1-point headwind to revenue growth.
• Margin: Operating margin for the quarter, which included items impacting comparability, was 29.1 % versus 23.7 % in the prior year. Comparable operating margin (non-GAAP) was 30.5 % versus 30.7 % in the prior year. Strong underlying margin (non-GAAP) expansion was offset by an approximate 260 basis point negative impact from currency headwinds and net acquisitions.
• Earnings per share: EPS from continuing operations grew 24 % to $0.38. Comparable EPS from continuing operations (non-GAAP) grew 2 % to $0.48, despite an 11-point currency headwind. EPS included an estimated 2 cent benefit from timing, primarily from the bottler inventory build related to Brexit.
• Market share: The company continued to gain value share in total nonalcoholic ready-to-drink (NARTD) beverages.
• Cash flow: Cash from operations was $699 million, up 14 %. Free cash flow (non-GAAP) was $335 million, down 1 % as strong underlying cash generation was offset by currency headwinds along with an increase in capital expenditures and cash tax payments.
• Share repurchases: Purchases of stock for treasury were $397 million. Net share repurchases (non-GAAP) totaled $243 million.

Company Updates

• Chairman transition and an evolving growth culture: Following the company’s annual meeting on April 24, James Quincey will become the 14th chairman of The Coca-Cola Company, contingent upon his reelection as a director. Quincey succeeds Muhtar Kent, who is retiring after a Coca-Cola system career that started in 1978. Kent served as chairman and CEO from 2009 until 2017 and then as chairman after Quincey became CEO. Quincey intends to build on the strong foundation Kent has established within the system, including a focus on fostering a growth-oriented culture.
• Pursuing the company’s World Without Waste goals: Supporting its commitment to the World Without Waste initiative and improved transparency, the company issued its annual progress report, which cited continued progress globally on design, collect and partner efforts. For example, the company, along with its bottling partners, now has 100 % recycled PET bottles in multiple markets and will have them in more than a dozen markets by the end of 2019, driving successful circular solutions for packaging. Much of the system’s Latin America business is engaged in a multi-country project to significantly increase the use of refillable packaging, and markets globally are assessing ways to move toward more diverse business models for product delivery.
• Broadening a consumer-centric portfolio: During the quarter, the company completed its acquisition of Costa Ltd., which gives Coca-Cola a significant entry point into hot beverages and a global platform in coffee. In the second quarter, the company will begin to leverage Costa’s scalable platform across formats and channels with the introduction of Costa ready-to-drink products. Coca-Cola also closed its acquisition of CHI Ltd., an innovative, fast-growing leader in expanding beverage categories in West Africa, including juices, value-added dairy and iced tea.
• Driving profitable growth under the Leader, Challenger, Explorer framework: Strong innovation within Leader brands included double-digit growth for Coca-Cola Zero Sugar globally for the sixth consecutive quarter. Within the U.S., the company showed strong performance for Orange Vanilla Coke and Orange Vanilla Coke Zero Sugar, which helped drive 6 % retail value growth for brand Coca-Cola. The company also launched Simply smoothies in the U.S., while innocent, the company’s leading juice brand in Europe, expanded into plant-based beverages. As a Challenger brand, smartwater continues to innovate through the successful rollout of smartwater antioxidant and smartwater alkaline in the U.S. Within Explorer brands, the company continued to capitalize on brands with edge, including Aquarius GlucoCharge, which has shown early signs of success in the fast-growing enhanced hydration category in India.
• Aligned and engaged system investing for growth: The company has established a sustained platform for performance that is focused on disciplined portfolio growth through an aligned and engaged system. Across the bottling system, the company is seeing the right strategic investments in supply chain, cold-drink equipment and sales force capabilities to drive accelerated results. These investments are creating a winning strategy in the marketplace, centered around improved execution that is committed to increasing the availability of core products, in addition to expanding the total portfolio.

Download the full earnings release (PDF)

The combination of lower orange supply in the Brazilian citrus belt (São Paulo and Triângulo Mineiro) in the 2018/19 crop with the recovery of Florida production is keeping the Brazilian exports of Frozen Concentrate Orange Juice (FCOJ) Equivalent low. This season (from July/18 to March/19), Brazilian juice shipments to all destinations have totaled 783.4 thousand tons, 14 % down compared to that in the same period last season, according to Secex. Revenue, in turn, has reached 1.4 billion USD, 12 % lower in the same comparison.

To the European Union, the biggest purchaser of the Brazilian juice, shipments have totaled 506.29 thousand tons this season, 8 % down compared to the same period last year. Revenue, in turn, has reached 941.2 million USD, 6 % down in the same comparison.

To the United States, the Brazilian exports of FCOJ Equivalent totaled 167.8 thousand tons between July/18 and March/19, 26 % less than in the same period of the previous season. Revenue reached 296.7 million USD, 27 % down in the same comparison.

The American demand for the Brazilian orange juice should not decrease too much in the coming seasons, due to the damages caused by greening, a disease with severe effects on production in the long term.

CROP END – Fundecitrus (Citrus Defense Fund) announced, on April 10, that the orange production in the citrus belt (São Paulo and Triângulo Mineiro) has totaled 285.98 million boxes of 40.8 kilos this season, 28.2 % down compared to the output in 2017/18 (398.35 million boxes). Compared to the average in the last 10 years, the current production is 11.6% lower.

Lower productivity was triggered by the weather (heat and drought) during fruit development. Low supply, in turn, kept high the need of Brazilian processing plants for oranges in 2018, limiting availability in the in natura segment.

MARKET IN APRIL – The higher availability of early oranges in the 2019/20 crop pressed down the quotes of all varieties surveyed by Cepea in the first fortnight of April. With the maturation stage below that demanded in the in natura segment, trades were limited. Between April 1 and 15, pear orange prices averaged 35.17 BRL per 40.8-kilo box, on tree, 18.8 % down compared to that in the first fortnight of March.

TAHITI LIME – Tahiti lime prices have been firm in Brazil this year, which is not typical for a first quarter. Although harvesting stepped up (which is common for the beginning of the year, due to the crop peak), high demand for exports as well as from Brazilian processing plants is controlling supply in São Paulo State.

In this scenario, the average price in April (until April 15) is already the second highest for the month, in nominal terms, considering Cepea series, which started in 1996 for this product. The same was observed in the first quarter of 2019, when the nominal average in January was only lower than in Jan/18 and the nominal averages in February and March were only lower than in the same months of 2016 – tahiti lime quotes reached nominal records in Feb. and Mar. 2016 and in Jan. 2018, in the historical series.

Agents’ initial expectations were that the harvesting of the fruits from the second blossoming would increase tahiti lime supply in the in natura market in April, despite the smaller volume compared to that in the crop peak. However, mainly in January and February, the demand from processing plants was high and prices, appealing. Thus, many growers harvested all the fruits early in the year, reducing supply in March.

Some citrus farmers accelerated the tahiti lime harvesting early in the year, aiming to prepare the trees for production in the second semester of 2019 (when prices usually rise).

In early April, according to purchasers, it was still difficult to find high quality tahiti lime in the in natura market. While mature fruits were missing, the new ones were still green – for that reason, harvesting was postponed. Higher quality fruits, in turn, were allocated to the international market. Thus, between April 1 and 15, tahiti lime quotes averaged 23.49 BRL per 27-kilo box, harvested, a staggering 63.6 % up compared to that in the first fortnight of March.

Following the recent news that The Coca-Cola Company plans to relaunch its sports drink Powerade in India within the next two months as part of its strategy to compete with PepsiCo’s Gatorade, Shagun Sachdeva, Consumer Insights Analyst at GlobalData, a leading data and analytics company, offers her view:

“The news comes as no surprise as the demand for functional sports drinks is growing exponentially in India and resonates well with millennials. Coca-Cola, being one of the country’s leading beverage companies, is now looking to tap into this category and increase its non-aerated drinks portfolio.

“Coca-Cola has collaborated with ICC World Cup as official sponsor with an aim to compete with Gatorade-owner PepsiCo in India. The calculative strategy is a part of company’s larger focus to evolve into a total beverage company by investing around $5bn by 2020 and make India as its third largest market. This is the second time Coca-Cola is trying to launch Powerade in the country.

“Powerade, which registered billion dollar plus sales globally, is currently available in India through imports. GlobalData forecasts the Indian sports drink market to grow from US$2.81bn in 2017 to US$5.87bn by 2023, propped up by healthy and better-for-you functional beverage options.

“Coca-Cola has collaborated with ICC World Cup as an official sponsor with an aim to compete with Gatorade-owner PepsiCo in India. The calculative strategy is a part of the company’s larger focus to evolve into a total beverage company by investing around $5bn by 2020 and making India its third largest market. This is the second time Coca-Cola is trying to launch Powerade in the country.

EXTR:ACT – Driving Value for multimaterial recycling, the pan-European platform created by BillerudKorsnäs, Elopak, SIG Combibloc, Stora Enso and Tetra Pak, all members of the Alliance for Beverage Cartons and the Environment (ACE), has announced the nomination of EXTR:ACT’s Managing Director, Michael Brandl.

Michael Brandl, a German national with a background in engineering, built his career in the dairy industry before joining FKN, the German beverage carton association in 2010. Michael intends to use his considerable knowledge of both the beverage carton industry and of German and European recycling infrastructures to meet the platform’s objectives.

“We strongly believe that Michael’s experience and expertise will drive EXTR:ACT increase the recycling of our packages, scale and boost value for recycling solutions, and secure our long-term sustainability” said Heike Schiffler, President of EXTR:ACT. “With this new initiative, we are confident we will be able to achieve a significant increase in collection and recycling rates by 2025 “.

EXTR:ACT, based in Frankfurt, will foster the recycling of beverage cartons, including the non-paper components such as polymers and aluminium. It reflects the industry’s commitment to the circular economy and complements ACE’s ongoing work. EXTR:ACT will also seek to work in partnership with stakeholders who have similar needs regarding the recycling of composite packaging.

About ACE:
ACE provides a European platform for beverage carton manufacturers and their paperboard suppliers to benchmark and profile cartons as renewable, recyclable and low carbon packaging solutions. Engaging with stakeholders and partners seeking high environmental stewardship, it contributes expertise to EU policy, legislation and standard‐setting.
ACE members include beverage carton producers Tetra Pak, SIG Combibloc and Elopak; they develop, manufacture and market systems for the packaging and distribution of food, and produce packaging material at 20 plants in Europe. Most of the paperboard used by ACE members in beverage cartons in Europe is produced by Stora Enso in Skoghall (Sweden) and Imatra (Finland), and BillerudKorsnäs in Gävle and Frövi (Sweden), who are also members of ACE.

Butterfly, a Los Angeles-based private equity firm specializing in the food sector, announced that it has signed a definitive agreement to acquire Bolthouse Farms from Campbell Soup Company for $510 million in cash, subject to customary purchase price adjustments.

Founded in 1915 and based in Bakersfield, CA and Santa Monica, CA, Bolthouse Farms is a vertically integrated food and beverage company focused on developing, manufacturing and marketing proprietary, high value-added natural, healthy products. The company has leading market positions in fresh carrots and refrigerated premium beverages in the U.S., along with a strong and growing presence in refrigerated salad dressings. Bolthouse Farms benefits from access to over 65,000 acres of premium growing land, nationwide fresh distribution capabilities, and a state-of-the-art carrot and beverage processing facility. The company has approximately 2,200 employees and operates facilities in Bakersfield, California; Hodgkins, Illinois; Wheatley, Ontario; and Prosser, Washington.

Bolthouse Farms is Butterfly’s fourth investment within its “seed to fork” approach to investing in food across agriculture, aquaculture, food and beverage products, food distribution and foodservice.

The closing of the transaction is subject to regulatory approvals and customary closing conditions and is expected to occur in summer 2019.

About Butterfly:
Butterfly Equity (“Butterfly”) is a Los Angeles, California based private equity firm specializing in the food sector, spanning the entire food value chain from “seed to fork” via four target verticals: agriculture & aquaculture, food & beverage products, food distribution and foodservice. Butterfly aims to generate attractive investment returns through deep industry specialization, a unique approach to sourcing transactions, and leveraging an operations-focused and technology-driven approach to value creation.

Florida Orange and Grapefruit production both decreased by 500,000 boxes in the April U.S. Department of Agriculture crop forecast.

The report projects Florida Orange production for the 2018-19 season at 76.5 million boxes after a slight decline in Non-Valencia orange production.  Florida Grapefruit production is now estimated at 4.9 million boxes.

“We’re an industry catching glimpses of recovery, but this estimate certainly points out that we are not there yet,” said Shannon Shepp, executive director of the Florida Department of Citrus. “It’s still a great year, but we are anxious for better.”

The numbers remain an increase from the previous season, devastated by Hurricane Irma, when production dropped to 45.05 million boxes of Florida Oranges and 3.88 million boxes of Florida Grapefruit.

Archer Daniels Midland Company (NYSE: ADM), one of the leading suppliers for ingredients, has now added new colors to its product range: firstly, micronized color powders made from coloring foodstuffs; secondly, paprika extract for particularly vibrant shades of orange.

The new micronized color powders from ADM are made up of particles that are much smaller than conventional color pigments. This gives the powders a larger surface – in relative terms – and increases their opacity. As a result, they give foodstuffs a highly intensive and striking coloring.

ADM offers its customers micronized color powders for all common color shades. The new solutions complete the previous range from yellow to red, now also allowing additional colorings in green and blue. The raw materials that the ADM developers use are coloring foodstuffs such as safflower, curcumin, red radish and spirulina. The products are available for instant beverages, chewing gum, powder mixtures, concentrates and confectionery. Despite the small particle size, the colors are by no means nanomaterials.

Paprika for bright orange – without any E numbers

The WILD Rainbow Range, ADM’s range of coloring foodstuffs and natural colors, has also been expanded and now includes paprika as a new coloring foodstuff that can be used for all food applications. It is suitable for all pH values and is heat-stable. In contrast to orange carrot, for example, paprika extract does not change its color and become more yellow when heated, but rather retains its original orange.

Paprika can be used to give a bright orange color to various products, including confectionery, snacks, ice cream, baked goods, breakfast cereals and chewing gum. It is actually an original color rather than the result of mixing two separate colors (red and yellow). Both the micronized color powder and paprika extract can be declared as ingredients with no E numbers, which means that they are suitable for clean label products.

drink technology India South (dti-South), which took place for the first time in Bengaluru from April 10 to 12, has established a strong position on the South Indian market. With more than 90 brands, 6,481 visitors and an extensive supporting program, the dti family further expands its footprint to the southern region of India.

“We are delighted that the first edition of dti-South in Bengaluru was so compelling. With it we have created an especially customized platform best suited to address the needs of our participants with even better networking opportunities with relevant buyers of the region.,” says Petra Westphal, Exhibition Group Director of Messe München. The local approach is intended in particular to address those sectors that are represented locally. Bhupinder Singh, CEO of Messe Muenchen India, explains: “In this region of India, non alcoholic beverages as well as beer are predominant segments. Key exhibitors addressing these sectors, such as Ambicon Breweries, DVKSP, Goma Engineering and Hilden Packaging, presented their solutions and were able to get the most out of the visitor potential in the metropolitan region.” This is also reflected by the positive response of the exhibitors as expressed by Mr. Jeetendra C Rane, Aquapuro Equipment Pvt. Ltd.: “For the first time we are targeting the South Region and the idea behind participating in dti-South was to target the Bengaluru and South Market: We are not only happy with the number but also with the quality of visitors. We will be participating in all the upcoming editions of drink technology India.”

Supporting program: Buyer-Seller Meetings and beer trends

With over 500 meetings, the Buyer-Seller forum was very well received. Prior to the trade fair, potential customers were able to register for the meetings in order to meet specific exhibitors and initiate new business relationships. These included Amrut Distilleries, Hindustan Coca Cola, John Distilleries, Kaveri Industries,Marico Limited, Mondelez International, Mother Dairy, Pepsi, Pernod Ricard, and United Breweries, to name a few. Vijaya Kumar, Team Leader- Quality Assurance, Hindustan Coca-Cola Beverages Pvt. Ltd. one of the key buyer quoted: “The purpose of our visit to drink technology India-South was to understand the new technologies in the market. This event was organized very well. We were able to sense some of the new technologies which we can engage in our organization and we would like to thank the organizers for this beautiful event. The quality of the meetings were very good at the buyer seller forum.”

From trends and ingredients for brewing to craft beer variations: In addition to the Buyer-Seller Meetings, the place2beer and the Brewer World Seminars provided insights into future topics of the industry. Representatives of microbreweries, medium-sized and industrial breweries as well as suppliers for the brewing industry used the place2beer for networking and knowledge exchange. In addition to this platform, where even Indian beer was tasted, the Brewer World Seminars took place on the first and second days of the trade fair. There, experts discussed topics such as quality assurance of raw materials and ingredients and global trends in beer brewing.

dti-North

dti-North will take place in New Delhi in December of this year in conjunction with pacprocess and food pex India from Messe Düsseldorf India. “We are pleased to host the trade fairs at Pragati Maidan from December 12 to 14, 2019,” says Mr. Singh. In North India, the focus is on dairy, soft drinks and beer.

drink technology India continues to be the international hub for beverages, dairy and liquid food industry in India. The next event will take place from December 9 to 11, 2020 in Mumbai.

Final orange¹crop forecast totals285.98 million boxes

The 2018-2019 final orange crop forecast for São Paulo and West-Southwest Minas Gerais citrus belt, published on April 10, 2019 by Fundecitrus – performed in cooperation with Markestrat, FEA-RP/USP and FCAV/Unesp² – is of 285.98 million boxes of 40.8 kg each, which is 28.2 % smaller in comparison to the previous crop (2017-2018) of 398.35 million boxes, and 11.6 % below the crop average in the last ten years³. The survey’s data show that final production was 0.8 % smaller than the initial projection carried out in May 2018, of 288.29 million boxes. Final crop total includes:

• 50.70 million boxes of the Hamlin, Westin and Rubi varieties;
• 14.66 million boxes of the Valencia Americana, Seleta and Pineapple varieties;
• 79.12million boxes of the Pera Rio variety;
• 107.91 million boxes of the Valencia and Valencia Folha Murcha varieties;
• 33.59million boxes of the Natal variety.

Approximately 16.02 million boxes of the finalcrop were produced in West Minas Gerais.

This crop season, adverse weather conditions in the citrus belt, with the exception of the Southwest region, resulted in a lower yield in groves. Irregular climate in the crop season set in back in 2017 with delayed spring rains, which caused orange trees to bloom late. High temperatures after flowering hindered fruit set, ultimately reducing the number of oranges per tree.

During fruit development and harvesting from May 2018 to March 2019, the accumulated rainfall in the citrus belt was 1,295 millimeters, which is 3 % below historical average (1981-2010), according to data from Somar Meteorologia.The months of May 2018 to July 2018 were drier than expected, with rainfall well below average. With decreased rainfall, fruit size did not reach the average 256 fruits per box (159 grams per fruit) projected in May 2018. Threefruits above projection were necessary to fill a 40.8 kg box. Therefore, the final average size for all varieties was 259 fruits per box (158 grams per fruit). The deviation between final average size (April 2019) and projected size (May 2018) was small, although deviation for each variety was more significant due to irregular rainfall distribution and fruit harvesting time. …

Please download the full update.

• ¹Hamlin, Westin, Rubi, Valencia Americana, Seleta, Pineapple, Pera Rio, Valencia, Valencia Folha Murcha and Natal.
• ²Department of Math and ScienceatFCAV/Unesp, Jaboticabal Campus.
• ³Average production for the last decade is of 323.34 million boxes. Data for crops 2008/2009 to 2014/2015 supplied by orange juice companies associated to Fundecitrus –Citrosuco, Cutrale and Louis Dreyfus, which, individually, have estimated their crop for the citrus planted area since 1988, through objective methodology. Data for the 2015/2016 and 2016/2017 crops supplied by Fundecitrus.

Food and beverage industry leaders and influencers to discuss latest High Pressure Processing (HPP) trends and industry best practices

Hundreds of attendees are expected to gather in Atlanta (USA) for Universal Pure’s 2019 HPP Summit^™ Sept. 25-27 at the Loews Atlanta Hotel. The three-day HPP Summit will bring together manufacturers, retailers, food service companies, regulatory, academic leaders, and others in the HPP industry to discuss the latest trends and updates in the industry. The HPP Summit has been a huge draw over the past three years, providing a forum for education, networking and collaboration, while demonstrating how HPP can make a meaningful impact on food and beverage safety and quality.

More than 20 speakers will discuss HPP’s role in food safety, extended shelf-life, clean label, packaging and regulatory issues. Among this year’s speakers are Manny Picciola, managing director, L.E.K. Consulting; Dr. David Acheson, CEO, The Acheson Group; Shawn Stevens, food industry lawyer; and Andy Hanacek, editor-in-chief, The National Provisioner. Past attendees included industry leaders and influencers, including Subway, Starbucks/Evolution Fresh, Whole Foods, Coca-Cola, Wegmans, Chick-fil-A, Foster Farms, Kroger, ConAgra Brands, Nestle, Cargill and Hormel.

Mark A. Duffy, CEO, Universal Pure, said, “The HPP Summit is a great way to bring together food and beverage industry leaders to discuss where the industry is heading and to help each other better leverage HPP best practices. It’s open to anyone interested in HPP, from manufacturers, retailers, and food service operators already benefiting from the technology to companies interested in learning the basics about the purposefulness and relevancy of HPP.” Duffy added, “Universal Pure’s ‘We CARE about YOU’ company value means that HPP is bigger than a process or procedure. We fully recognize what we do, and what this technology does, affects people and families. Food safety is our greater cause at Universal Pure.”

You can learn more here or go straight to the event registration page to register.

The design of Dr Antonio Martins coconut water pure organic has been jazzed up for the coming season and will be available on the organic shelves in spring 2019 in a new bright tropical design. The coconut juice for this product line comes from green ripened coconuts that stem from organic-certified, slightly larger plantations in Sri Lanka. Thanks to the decision to buy coconut water from Sri Lankan farmers, Dr Antonio Martins has already been able to create 8000 jobs there. However, it is also important to guarantee a good everyday life for the farmers, workers and their families in terms of education, health care and housing. The tropical thirst quencher coconut water pure organic does not only feature a new redesigned packaging, but it is the first European coconut water to be the proud bearer of the ^©FAIRTRADE seal.

More mature green coconuts have already formed fruit flesh and the remaining fruit juice has a slightly sweeter taste profile than it is the case with young coconuts. At this harvest stage, the coconut has higher usability (fibre, pulp, juice) and its juice can therefore be offered at lower prices. The coconut water pure organic is available in the 1 litre version (RRP € 3.89) and the practical 0.33 litre version (RRP € 1.69) in organic shops and from May 2019 in Dr Antonio Martins own online store. A real must for price-conscious sports savvy & lifestyle organic buyers with an eye for fair trade and modern design.

At its AUSPACK conference on March 27, 2019, the Australian Packaging and Processing Machinery Association (APPMA) selected the best packaging innovations and products of the year. GEA VIPOLL received the Award of Excellence for its ALL IN ONE monoblock filler in two categories: GEA’s Australian partner Foodmach had submitted the filler for the competition and received the “Best New Product Award” and the “Best Imported Equipment Award” for the ALL ON ONE which fills cans, glass and PET bottles.

A joint presence in the Australian market

The multifunctional system provides an unprecedented level of flexibility to beverage manufacturers with medium capacities: It can be used to fill glass, cans and PET containers, handle a wide range of formats and seal them with diverse cap types, fill carbonated or still drinks, in cold and hot processes. Partner Foodmach develops and produces secondary packaging equipment and automation systems for food, beverage and industrial companies, and, together with GEA VIPOLL, provides innovative filling technology in Australia. In 2018, the company integrated the ALL IN ONE for the first time into a line for Lion’s Malt Shovel Craft Brewery. As one of Australia’s largest food and beverage companies, Lion markets numerous premium brands in the dairy, alcoholic and non-alcoholic beverage categories.

A flexible and sustainable filling solution

In Melbourne, Australia, the ALL IN ONE won over the APPMA by demonstrating its ability to produce big results in small spaces, and to save time during filling and format changeovers. “We are naturally very pleased with this success in Australia, which honors both the good cooperation with Foodmach and Lion and our development work”, says Jakob Šalamun from GEA VIPOLL. “The ALL IN ONE provides a solution to the massive challenge that beverage manufacturers are currently facing. The desire for efficiency and flexibility is clearly a key driver of innovation. Our customers, for example Lion, want to conserve resources and take environmental responsibility for their packaging processes.”

Flying Embers, an Organic Hard Kombucha brewed with botanicals and live probiotics, is expanding beyond its Reyes Southern California footprint into the San Francisco Bay Area, Oregon and Washington; southwestern states Arizona and Texas; and jumping to the east coast via New York, Philadelphia and into the New England area. Flying Embers is in partnership with distributors including Crescent Crown Distributing, Columbia Distributing, Sheehan Family, Ben E Keith, Mancini Beverage, Matagrano, Penn Beer and more to be announced soon.

Flying Embers Organic Hard Kombucha currently comes in three flavors: Ginger & Oak, Lemon Orchard, and Ancient Berry. Each refreshing, smooth flavor is fermented with black tea, botanical adaptogens, and a kombucha culture with live probiotics. All Flying Embers Hard Kombuchas have a unique botanical adaptogenic base of roots including ginger, turmeric, ashwagandha, and astragalus. Flying Embers is USDA-certified organic, gluten-free, vegan and has zero grams of sugar at a sessionable 4.5 percent abv.

About Flying Embers
Flying Embers is Organic Hard Kombucha, with live probiotics, adaptogenic ingredients at 4.5 percent alcohol by volume. The Organic Hard Kombucha is made from a sparkling fermented tea kombucha culture with adaptogenic botanicals. Flying Embers was founded in 2017 by Bill Moses, proven beverage entrepreneur, co-founder and former CEO of Kevita sparkling probiotics, which sold to PepsiCo in December of 2016. The Organic Hard Kombucha line features innovative live brews: Ancient Berry, Lemon Orchard, and Ginger & Oak. Flying Embers is a presentation of Fermented Sciences Brewing.

Huhtamaki inaugurates its new, state-of-the-art flexible packaging unit in Egypt today. The investment marks the company’s entry into manufacturing flexible packaging in Africa.

The greenfield is located in the greater Cairo area and will serve Huhtamaki’s flexible packaging customers in Egypt as well as export its products into other African countries and Europe. The manufacturing unit is built on a land area of almost 37,000 square meters, with ample space for future expansion. Production has started this spring and the facility is expected to employ approximately 250 employees.

“The Egyptian market is sizeable, and with the rapid population growth in Africa we expect future growth opportunities both for us and our customers. Until now we have served flexible packaging customers in Egypt from our units in the United Arab Emirates and India. With the new plant we can offer our current and new customers – both in Africa and Europe – the same top quality with shorter lead times,” says Olli Koponen, EVP Flexible Packaging.

The new manufacturing unit is owned and operated as a joint venture of which Huhtamaki owns 75 %. The remaining 25 % is owned by Mr. Ayman Korra, who has been Huhtamaki’s joint venture partner in the Egyptian fiber packaging business since 2003. The current investment, including land purchase, facility construction and machinery, is expected to be approx. EUR 23 million with Huhtamaki share at approx. EUR 17 million.

About Huhtamaki:
Huhtamaki is a global specialist in packaging for food and drink. With our network of 78 manufacturing units and additional 24 sales only offices in altogether 34 countries, we’re well placed to support our customers’ growth wherever they operate. Mastering three distinctive packaging technologies, approximately 17,700 employees develop and make packaging that helps great products reach more people, more easily. In 2018, our net sales totaled EUR 3.1 billion. The Group has its head office in Espoo, Finland and the parent company Huhtamäki Oyj is listed on Nasdaq Helsinki Ltd.

Production of crystalline betaine under a joint venture between AGRANA and The Amalgamated Sugar Company (USA)

The fruit, starch and sugar group AGRANA is constructing a betaine crystallisation plant at its sugar refinery in Tulln (AUT) under a joint venture with US-based Amalgamated Sugar. The official ground-breaking ceremony for this project took place on April 9th. The new plant, entailing the investment of around € 40 million, will take a year to construct.

AGRANA has been processing the sugar beet molasses obtained during the production of sugar at its Tulln site to make liquid betaine since 2015. The new plant, with a production capacity of around 8,500 metric tons of crystalline betaine per year, will make Tulln only the third manufacturing site worldwide where premium-quality, natural crystalline betaine is produced.

“We are looking forward to a successful partnership to produce premium-quality crystalline betaine. Diversification by means of betaine in our Sugar segment is essential to ideally exploit the full potential of sugar beets. This investment in a greater depth of sugar refining is therefore a top priority in the interests of safeguarding competitiveness,” as the CEOs of AGRANA and Amalgamated, Johann Marihart and John McCreedy, both agree.

About betaine
The natural substance betaine, found in sugar beet molasses, is characterised by numerous positive properties and can be used in many applications. Betaine is a methyl donor and has osmoregulatory properties, aids the liver to process fats, and biologically degrades the amino acid homocysteine, which can damage blood vessels when in high concentrations.

Betaine is used not only in food supplements and sport drinks to promote muscle development, but also in livestock rearing as a component in animal feeds. Due to its osmoregulatory properties at a cellular level, betaine is also used in cosmetic products. In tensides and detergent substances (e.g. shampoos and conditioners), betaine acts to stabilise the formation of foam and also conditions and strengthens the hair.

New Zealand Kiwifruit Growers Incorporated (NZKGI) supports the Ministry of Social Development’s (MSD) declaration of a labour shortage for the kiwifruit industry in the Bay of Plenty and the extension of the labour shortage in the Hawkes Bay. The BOP declaration announced is for the period 15 April until 27 May 2019.

There is a current shortfall of over 1,400 vacancies in the Bay of Plenty’s kiwifruit industry which is expected to increase to 3,800 at harvest’s peak around mid-April. There was a shortfall of 1,200 vacancies at the peak of harvest in 2018.

NZKGI CEO Nikki Johnson says, “The industry has been working hard to attract labour for this year’s harvest. NZKGI has been running a media campaign to promote work in our sector and early signals indicate that this has gone some way in reducing the number of vacancies.

“However, it is vital to our industry that there is enough seasonal labour for harvest, and we currently don’t have enough people to pick and pack the intended crop. So it is entirely prudent and good risk management for MSD to take this step in support of our campaign.

“We would encourage people – kiwis and visitors – to come and enjoy working in an industry that exports an iconic piece of kiwiana overseas.”

Kiwifruit industry employers have been working closely with the Ministry of Social Development (MSD) to place New Zealanders in vacant roles. Between January and April 2019, MSD has placed nearly 500 job seekers into the kiwifruit industry. Despite this more workers are still needed. The declaration of a seasonal labour shortage allows overseas visitors who already hold visitor visas to apply to vary the conditions of their visas for working in kiwifruit in the Bay of Plenty.

Overseas visitors are encouraged to visit the New Zealand Immigration website where detailed information about varying the conditions of a visa can be found.

To date over 90 % of this season’s total kiwifruit crop is yet to be harvested. It is forecast that a similar amount of fruit is required to be packed this year in comparison to last year. This includes an increase of 12 % of SunGold kiwifruit which requires packing in a short period of time.

Johnson says NZKGI seeks to employ New Zealanders as a first priority, especially kiwis who live in regions with orchards and packhouses. Work and Income has given help to people that need transport from other parts of BOP and other Work and Income clients who would like to access this should contact their local office for support. “However, because of the low unemployment rate this is not always possible, and other sources of workers, such as those from the Recognised Seasonal Employer (RSE) scheme and backpackers, are also required.”

She says the industry continues to have robust discussions with Government around increasing the number of workers available under the RSE scheme, as well as other avenues to meet demand during harvest.

NZKGI has recently secured co-funding and employed a labour coordinator to connect employers with workers over harvest and analyse current and future labour demands of the kiwifruit industry, and will use this information to deal with industry growth projections. A University of Waikato report forecasts that the kiwifruit industry contribution to the Bay of Plenty’s GDP will increase 135 % by 2030 to $2.04 billion and require 14,329 new kiwifruit jobs.

The kiwifruit industry is an important contributor to the local Bay of Plenty economy, currently contributing $867 million to the regions GDP and employing 10,762 FTE in the year 2015/2016. The last declaration of a labour shortage for the kiwifruit industry was made in 2018 when the unemployment rate in the Bay of Plenty was 5.9 %^[1]. The current unemployment rate is 4.8 %^[2].

• ^[1] As of December 2017. Source: Infometrics
• ^[2] As of December 2018. Source: Infometrics

What started out small 40 years ago today has in the meantime grown significantly – and has long since developed into one of the world’s leading manufacturer of innovative checking, inspection, rejection and labelling systems for a continuous in-line quality assurance when filling and packaging beverages, food and pharmaceuticals: HEUFT SYSTEMTECHNIK GMBH was founded on 1 April 1979!

Bernhard Heuft started the company back then in Burgbrohl in the Volcanic Eifel (Germany) with just twelve skilled people he knew. The fact that the strength of his highly motivated team has increased a hundredfold over the past 40 years to over 1,200 employees worldwide impressively illustrates that this was the right decision at that time for putting the young family business on the road to sustainable success.

In fact in the truest sense: HEUFT received the first patent for a truly ingenious invention by the company founder which still defines the state of the art today regarding the accurate upright high-speed rejection of faulty empty and full containers – the HEUFT DELTA-FW multi-segment flow rejector.

Over 500 further patents have been added since then – and therefore genuine unique technological features which not only optimise in-line quality assurance when filling and packaging beverages, food and pharmaceuticals sustainably but also the efficiency of complete lines.

From the first optical fill level detection to the fill management system with multi-processing capabilities, from the first empty bottle inspector in an efficient straight-through system to the all-surface empty container inspection on less than one square metre of floor space, from the unique pulsed X-rays to the company’s own real-time image processing system, from clean labelling to the precise marking inspection, from the harmonious conveyor control system to the comprehensive line analysis: a wide range of innovative technologies from the modular HEUFT system has been setting the standards for efficient in-line quality assurance for 40 years.

Basic research and the development of solutions not only focused on maximum automation during precise product tracking, reliable fault detection and specific fault rejection but also consistent user support from the start. In this way HEUFT introduced the very first systems with a monitor into the bottling hall for a simply better overview. The company’s own graphical user interface was soon to follow, then the audiovisual HEUFT NaVi user guidance and most recently even real voice control for full operational reliability and productivity.

It is not only innovative striving forward with countless technological pioneering achievements over the past 40 years which has set the medium-sized family business on a sustainable course for success but also the resulting continuous growth regarding company premises, international sales and service locations as well as competent employees i.e. in research and development, production, project planning and support.

Artificial intelligence for the apple harvest

A world first goes into operation: The apple harvest has begun in New Zealand and the BayWa subsidiary T&G Global is using a commercial picking robot alongside human pickers for the first time. The robot was developed by the US start-up Abundant Robotics, in which the Munich-based Group acquired a stake in 2017. BayWa believes it is possible that apples from German orchards will be harvested with the help of artificial intelligence (AI) for the first time in approximately two years.

A lack of workers and increasing costs represent growing challenges, particularly in the speciality crops segment, which is heavily dependent on manual labour. “Without the limitations imposed by these external conditions, producers can use AI to increase productivity and thereby ensure that they remain sustainably competitive,” says Klaus Josef Lutz, Chief Executive Officer of BayWa AG. The use of robots to pick fruit from hard-to-reach parts of the tree also reduces the physical strain on employees. “We are investing in innovation and digitalisation to give fruit producers and downstream areas early access to such smart technologies – in New Zealand, Germany and other apple growing regions around the world.” If the external conditions, for example the way trees are planted and pruned in the growing region, are suitable, then such robots could also be used in Germany in approximately two years, says Lutz.

It took four years to develop the first commercial harvesting robot. In order to allow development throughout the year, the technology was tested and developed in the USA and New Zealand – in the latter case at orchards in the Hawkes Bay region owned by T&G Global. The successful use of the robots depended on the orchards being prepared accordingly, through higher density planting and special pruning measures. “The robot’s requirements are very complex,” says Dan Steere, CEO of Abundant Robotics. “The AI has to visually recognise fruit that is ripe for picking, pick it without damaging it, and navigate the orchard safely.”

Abundant Robotics will analyse the experience and data of using the picking robot during the current harvest season in New Zealand and use the information to help build the next generation of robots. T&G Global expects to phase in the use of robots over time as the technology develops and orchard planting systems are available to use more harvesting robots of this type at its orchards.

Cartons will become full-scale data carriers and digital tools

Tetra Pak announced the launch of its connected packaging platform, which will transform milk and juice cartons into interactive information channels, full-scale data carriers and digital tools.

Driven by the trends behind Industry 4.0, and with code generation, digital printing and data management at its core, the connected packaging platform will bring new benefits to food producers, retailers and shoppers.

For producers, the new packaging platform will offer end-to-end traceability to improve the production of the product, quality control and supply chain transparency. It will have the ability to track and trace the history or location of any product, making it possible to monitor for market performance and any potential issues.

For retailers, it will offer greater supply chain visibility and real-time insights, enabling distributors to track stock movements, be alerted when issues occur, and monitor for delivery performance.

For shoppers, it will mean the ability to access vast amounts of information such as where the product was made, the farm that the ingredients came from and where the package can be recycled.

Ivan Nesterenko, Vice President, Cross Portfolio at Tetra Pak said: “We are unlocking new opportunities for our customers to get more value from packaging than even before. No longer is it only about product protection and functionality, it is about connectivity. The future of packaging is undoubtedly digital: this launch is a step towards a truly intelligent package, and we are excited to collaborate with our customers on this journey.”

Tetra Pak has successfully completed pilots with its customers to test the new connected package and its performance in retail in Spain, Russia, China, the Dominican Republic and India, working with beverage, juice and milk producers. In Spain a customer increased their sales by 16% through the scan and win campaign.

Herbal tonics now available in the USA

So long to the days of drinking sugar bombs and face-puckering beverages to help aid digestion. Welcome Sunwink- a San Francisco based, female founded herbal tonic beverage that is bringing herbs to the forefront of the self-care scene. And rightly so, consumers are saying Sunwink’s Detox Ginger herbal tonic makes their stomach feel better than any kombucha they’ve ever had.

Since its 2018 launch- the brand’s Sparkling Detox Ginger has quickly become so popular its had to rapidly increase production. Using bitter herbs like dandelion and burdock root to help the body release digestive enzymes, the effervescent tonic helps the body do what it’s supposed to do, as opposed to kombucha, which merely adds probiotics to the system (a good, but temporary fix).

With half the sugar of a kombucha (most kombuchas range from 12 – 24 grams of sugar per bottle) and 35-50 calories per bottle, Sunwink uses the cleanest and simplest ingredients – NO NATURAL FLAVORS and NO CITRIC ACID. The herbal tonic’s flavors come from the herbs. The drinks are paleo and vegan friendly; they use organic maple syrup to slightly sweeten the blends. “Sunwink puts thought and care into their blends, taking the time necessary to think about which plants they use and what they want to achieve with them,” says Clinical Herbalist, Anne Beauchemin.

Retailing for $ 5 a bottle – the beverage is also available in Turmeric Cleanse and Immunity Berry and can be found at drinksunwink.com.

About Sunwink
With the rapid decline of soda, sparkling and functional beverages are on the rise. Enter Sunwink – the only sparkling herbal tonic beverage on the market. Herbal tonics are a new kind of healthy drink – they taste like a sparkling juice, but all of the flavor comes from herbs. Each Sunwink contains at least 1,000mg of herbal extracts – that’s 4 – 8 times what you’d typically find in an herbal tea bag. And the best part – each Sunwink is inspired by a real woman and the herbs she uses. Sunwink gives 1 % of net sales to organizations of the women’s choosing.

Chr. Hansen delivers solid half-year result of 9 % organic growth and maintains overall outlook for the full year.The growth comes from all business areas: Food Cultures & Enzymes 10 %, Health & Nutrition 11 % and Natural Colors 5 %

Solid organic revenue growth of 9 % in the first half of 2018/19: Food Cultures & Enzymes 10 %, Health & Nutrition 11 % and Natural Colors 5 %. EBIT before special items increased by 10 % to EUR 150 million, corresponding to an EBIT margin before special items of 27.0 % up 0.8 %-point compared to last year. In Q2, organic growth was 8 %, and EBIT before special items increased by 11 %. The overall outlook for 2018/19 remains unchanged.

CEO Mauricio Graber says: “We continued the solid momentum, with Food Cultures & Enzymes delivering strong organic growth with an increasing contribution from volume in Q2, which was in line with our expectations. Towards the end of Q2, we launched CHY-MAX^® Supreme, a truly innovative enzyme which raises the bar for what cheesemakers can expect from coagulants. Organic growth in Health & Nutrition was solid and with a more balanced growth contribution between Human Health and Animal Health compared to what we saw in Q1, although livestock farming economics in North America remain challenging. Yesterday, we announced a joint-venture with Lonza AG, which marks a quantum leap for Chr. Hansen’s Human Microbiome lighthouse and which will create a global pioneer and partner of choice for production of live biotherapeutic products. In Natural Colors we secured important conversions in North America, but this was to some extent offset by weaker demand from Latin America in particular.”

“Our EBIT margin before special items in the first half of the year increased by 0.8 %-point and was driven by improved margins in all business areas. In FC&E, we achieved a gross margin benefit of more than 1 %-point from the ramp up of the new capacity in our facility in Copenhagen, which more than offsets the increasing investments we are making in the business. We continue to pursue strong and profitable organic growth while also investing significantly for the future.

“The progress in the first half year makes us confident about our overall outlook, which is maintained and in line with our long-term financial ambition.”

The harvesting of the oranges out of the ideal period from the 2018/19 crop was ending in São Paulo State in March, while the availability of the first early oranges from the new season (2019/20) was increasing, helping to supply the market.

Although still low, the availability of the first oranges from the 19/20 crop in the market limited the upward trend of pear orange quotes, observed in the first two months of the year. In March, pear orange quotes averaged 42.23 BRL per 40.8-kilo box, 3.8 % up compared to that in February.

However, most of the early oranges from 2019/20 had not reached the ideal maturation stage demanded in the in natura market, which limited new deals. Concerning the pear and late oranges remaining from the 2018/19 season, only a few growers still had available amounts to sell in the in natura market – and, in general, lower quality also hampered trades.

The low supply scenario in the offseason period resulted from the lower production (almost 30 %) in the citrus belt in 2018/19 – estimated by Fundecitrus at only 284.88 million boxes of 40.8 kilos, according to the report released in February. Thus, in March, pear orange quotes increased sharply compared to the same period last year (in nominal terms): a staggering 46.3 %.

For April (mainly the second fortnight), the agents consulted by Cepea expect the supply of all varieties from the 2019/20 to increase, based on the possible favorable weather to the development of the fruits that are still on tree. Besides, it is worth to remember that crushing is currently at a slow pace at the processing plants from SP, which should allocate all the fruits available to the in natura market in April.

TAHITI LIME – As for tahiti lime, international demand helped to lower supply in the Brazilian market in March. Thus, quotes averaged 16.87 BRL per 27-kilo box, harvested, last month, 11.7 % up compared to that in February.

Demand from processing plants was low and the availability of fruits from the second blossoming was gradually increasing, which may press down quotes in April, mainly in the second fortnight – if the weather favors fruits growth.

Döhler Group and Zumos Catalano Aragoneses S.A. (ZUCASA) have reached an agreement on the acquisition of the majority of shares in ZUCASA by the Döhler Group. With immediate effect, Döhler will manage ZUCASA’s juice production facility located in the Huesca region through its subsidiary Döhler Fraga S.L.

For Döhler, this transaction marks another great step forward in one of Europe’s largest fruit production areas. Customers will benefit from a more diverse offering in the stone fruits segment as well as in apples and pears; furthermore, the combined businesses will offer greater efficiency in a global market with regard to customised all-in-one solutions.

ZUCASA’s extensive expertise and ability to provide fruit and vegetable juices, purees and concentrates for food and beverages, combined with the broad product portfolio and the comprehensive industry knowledge of the Döhler Group, will create unique synergy effects. In the coming years, Döhler Group aims to set a benchmark within the sector and develop a plan of expansion and sustainable growth within its business model.

About ZUCASA:

Zumos Catalano Aragoneses S.A. is a producer of juices, purees and sweet fruit concentrates, vegetables and plants located in the region of Fraga (Huesca), with operations at the heart of Spain’s largest production area of sweet fruit between Huesca and Lleida. It has facilities spanning more than 24,000 m2 over an area of 168,000 m2, with capacity to store 32,000 m3 of natural fruit juices, purees and concentrates. ZUCASA began production in 2010 with three lines for processing fruits and vegetables: two of which for purees and a third for juices. Currently, it employs an average of 50 workers on permanent contracts, reaching 150 workers during high season. The company’s commitment to quality in production has been confirmed by the international certifications BRC, IFS, SGF, Kosher, FDA and others, which in turn have enabled it to expand internationally, with more than 60 % of revenues coming from exports.

Tetra Pak announced the appointment of Charles Brand to the position of President of Tetra Pak Europe & Central Asia (E&CA) Region and he will continue to be a member of the company’s Global Leadership Team.

Charles joined Tetra Pak in 1985 as an Electronics Development Engineer and has since held several key senior roles in the company, like Vice President of R&D for Tetra Rex® , Managing Director of one of the key business units of Tetra Pak and Managing Director Tetra Pak Taiwan, before taking on his last position as Executive Vice President, Product Management & Commercial Operations. On his appointment, Charles Brand said, “I am delighted to lead our activities in the E&CA region. This role is a great opportunity for me to continue to position Tetra Pak as a leader in the industry and in supporting the evolving needs of our customers across the region, with a focus on our common sustainability and digitalisation agendas.” Charles holds an MSC in Electrical Engineering degree from the Technical University of Lund in Sweden.

World’s largest probiotics fermentation unit is operational at the DuPont Rochester facility 

DuPont announced it has completed construction on a new, state-of-the art probiotics fermentation unit at its Rochester, New York, facility. The unit, now largest in the world, is part of a multiphase nearly $100 million investment to expand probiotics capacity and enhance the company’s leadership in delivering high-quality, clinically documented probiotics to dietary supplement and food and beverage manufacturers.

The fermentation unit is fully operational and will serve as a crucial resource in propagating bacteria and enabling high potency, stability and efficacy of probiotics. Quality is extremely important in probiotic production, and the fermentation unit will also optimize DuPont’s production capability, enabling the company to increase the pace of delivery to customers and the market.

DuPont also completed a probiotics capacity expansion at its Madison, Wisconsin, facility in late 2018. The investment was used to upgrade equipment and increase the pace of new product development and significantly improved delivery times on pilot material for clinical trials and customer evaluations.

Lion NZ announced that it has acquired Kiwi drinks brand, Teza Iced Teas. The purchase forms part of the company’s wider ambition to grow its non-alcoholic beverage portfolio and cater to the increasingly diverse social occasions of New Zealanders.

Sitting alongside the likes of GoodBuzz Kombucha, Hopt and Mac’s Soda, Teza will join Lion’s growing non-alcoholic division, Drinks Collective, which earlier this month also announced a new strategic partnership with flavoured sparking water start-up, Vista.

Teza Iced Teas is part of the Greenstone Drinks Company and was the first real-brewed iced tea in New Zealand. The product is made with batch brewed organic leaf tea, fruit juices and botanicals. Sold in 325 ml glass bottles, the brand offers several unique flavours including Feijoa & Lime Blossom and Lemon & Mandarin.

Stefan Gray, General Manager, Drinks Collective says: “The iced tea market is in strong growth globally so we’re incredibly excited to welcome Teza Iced Teas into the Drinks Collective. The brand’s premium offering complements our existing range nicely and will help us deliver greater choice and convenience for consumers across more social occasions. We’ll be leveraging our networks to make the brand more readily available nationwide and the Teza Grassy Tea Bush Van will also be making a return to the streets of NZ.

“I think typically people associate Lion with alcohol products and don’t realise what an amazing non-alcoholic beverage offering we have – from coffee and juices to low sugar sodas and Kombucha. We have big plans to grow the Drinks Collective as part of our commitment to meeting the evolving world of sociability and by 2025 at least 10 % of Lion’s sales will come from our non-alcoholic range,” adds Gray.

Lion’s Drinks Collective will take full control of the Teza brand and associated assets, with the founders, Joe Gehrke and Daphne Raj, now living in Australia where they are focused on growing their company, Greenstone Drinks Co. They will still be involved in the brand via an agreement which will see them distribute Teza for Lion in the Australian market through Greenstone Drinks Co.

Teza founder Joe Gehrke, says, “We created Teza when we moved home from our stint in the UK. We noticed a real gap in the market for a premium, more natural iced tea offering and are proud of the growth we’ve achieved for the brand so far, including Australia, Japan, and South Korea. We’re thrilled to pass the Teza brand on to Lion who has a proven track record of nurturing and growing strong brands in the Kiwi market. Under Lion, Teza can be taken to the next level.”

Mintel, one of the world’s leading market intelligence agencies, has announced four trends impacting the global packaging industry in 2019 and beyond.

• Connected Packaging: Multiple technologies are enabling brands to connect physical packaging to the virtual world.
• Closing the Loop: Brands have an opportunity to differentiate and ride consumer awareness of recycling issues.
• Reinventing the Box: With online shopping set to gain further popularity, brands must fully establish an e-commerce packaging strategy.
• Plastic-Free: As the momentum behind plastic-free supermarket aisles grow, brands need to consider what packaging solutions can give them shelf space.

Looking ahead, David Luttenberger, Global Packaging Director at Mintel, discusses the major trends influencing the packaging sector worldwide during 2019, including implications for consumers, brands, and manufacturers.

Connected Packaging

“Connected packaging is witnessing renewed interest, driven by growth in ownership of connected devices worldwide and advancement in technologies that link packaging to the online world. Brands have a wealth of options to connect virtually with packaging – from QR codes and other graphic markers to near field communication, radio frequency identification, bluetooth and augmented reality. A vital link between physical and digital shopping worlds, brands can capitalise on connected packaging to influence how they are viewed online, together with delivering engaging content and product-specific information to directly influence purchasing decisions.”

Closing the Loop

“Proclamations by brands and converters touting commitment to 100 % recyclable materials or packaging being 100 % recycled dominate industry headlines. But the reality that few of them have yet to fully consider is how, where, and who will be supplying and recycling these materials. Though recyclable packaging claims have become common, claims to include recycled content are still rare. Low availability of high-quality recycled plastic and concerns over food safety are hampering the use of recycled material in food and drink. And while recycling may be second nature to some, inconvenience and confusion surrounding recycling are a barrier for others. With no option to ship packaging waste off-shore and out of sight, we are likely to see fast improvements in recycling facilities. This will drive up capacity for high-quality recycled material. Going forward, brands have an opportunity to ride consumer awareness of recycling issues by being part of the solution and committing to using recycled material in new packaging.”

Reinventing the Box

“The rapid development of e-commerce has had more of an impact on the design of packaging globally than anything the industry has experienced in the past several decades. There are now limitless opportunities for brand marketers to think about the next generation of shelf presence, the ‘hero images’ on retailers’ websites, and the ‘unboxing’ experience. In e-commerce, brands are learning that messaging and branding should be split between the shipping container and the interior of the box – with the latter incorporating elements that give consumers a sense of delight and surprise when opening the parcel. While most consumers currently prefer to buy groceries in-store instead of online, the convenience of purchasing online will eventually spill over into food, drink, and household products. Only through an established e-commerce packaging strategy can brands design packs for the worst-case distribution scenario. Meanwhile, there will be huge financial, social, and brand equity gains to be made in the e-commerce packaging arena just by exploiting elements of package optimisation rooted in sustainability.”

Plastic-Free

“Marine plastic pollution has become one of the world’s most serious environmental problems, and there is a growing need for different attitudes to the material. New opportunities such as plastic-free aisles, package-free stores and alternative pack materials allow consumers to actively make choices about the plastic that is put out in the world. But these incentives are not without their own challenges. While plastic-free aisles reflect consumer exhaustion with excess plastic packaging, in reality, few would want to lose the convenience and benefits plastic packaging can bring. And while the term ‘plastic-free’ may appear to be a simple one, there is no universal definition; even plastic-free packaging often includes plant-based plastics, showing the lack of clarity in the plastic-free call. Brands should act now, either to ensure a place in emerging plastic-free zones by switching to acceptable pack materials, or by engaging with the debate, clearly explaining the benefits of plastic packaging to their product, and addressing plastic pollution concerns with appropriate end of life pack solutions.”

The first energy drink under the Coca-Cola brand will launch in Europe in April, the company announced.

Coca-Cola Energy, which will debut in Spain and Hungary, features caffeine from naturally-derived sources, guarana extracts, B vitamins and no taurine – all with a great Coca-Cola taste and feeling that people know and love. A no-sugar, no-calorie option also will be available. Both will be offered in 250-ml cans.

As a total beverage company, Coca-Cola continues to evolve its portfolio to bring people more of the drinks they want – from organic teas, to juices, to enhanced waters, to ready-to-drink coffees, to new variants of Coca-Cola. The launch of Coca-Cola Energy is the latest articulation of this strategy.

A visual identity and marketing campaign will support the launch of Coca-Cola Energy, which is designed primarily for young adults, age 18 to 35. The new brand will be promoted in line with The Coca-Cola Company’s responsible marketing guidelines. These include, in line with UNESDA (European Soft Drink Association) guidelines, no sampling in proximity to primary and secondary schools and never promoting mixing with alcohol.

Iconic Chiquita Blue Sticker Leverages Snapchat Technology to Excite Shoppers and Retailers Globally

Chiquita Brands International, the world’s leading banana company, announced a new partnership with Snapchat, the global multimedia messaging app, which will allow consumers to have fun with Chiquita in honor of World Banana Day on April 17th. Through the end of May SnapCodes will appear on 200 million Chiquita Blue Stickers, allowing fans of the brand to virtually “peel back” the sticker to tap into three exciting new experiences.

The Snapchat campaign includes: World Lens, Face Lens and a Gamified Lens. The World Lens turns Snapchatters into a dancing Chiquita Banana character. The Face Lens turns their faces into a Chiquita Banana. The Gamified lens invites Snapchatters to catch the falling Chiquita Bananas into a fruit bowl to score points. “Bananas are among the top sellers across grocery stores, making them present on almost every kitchen counter or table across the country,” said Jamie Postell, Director of Sales North America for Chiquita. “Chiquita will be the first brand to bring Snapchat visual recognition technology in the fresh produce aisle. This provides Chiquita a unique opportunity to leverage its iconic Blue Stickers as a powerful touchpoint with the Millennial and Gen Z consumers to interact with the brand in a fun, and relevant way.”

With support from creative agency Dffrnt Media, this Blue Sticker-Snapchat campaign will launch at the beginning of April in the United States and rolls out worldwide in the following weeks, staying on shelves for a four-week period.

For decades, Chiquita has produced special editions of its iconic Blue Sticker and this latest campaign with Snapchat exemplifies the brand’s ability to connect Chiquita bananas and consumers in a playful and fun way. In addition to fun, Chiquita also reminds its fans that its iconic Blue Sticker stands for high-quality, delicious bananas, and – above all – sustainable bananas. For this reason, the “Behind the Blue Sticker” initiative includes various innovations in farm management and logistics with an impact on waste, emission reduction CO₂ and water footprint, and much more.

For more information about this partnership, please visit www.chiquita.com/snapchat

Refresco publishes fourth quarter and full year 2018 results of Sunshine Top B.V., the entity owning Refresco Group B.V.

Q4 2018 Highlights

• Total volume was 2,556 million liters (Q4 2017: 1,525 million liters).
• Gross profit margin per liter was 14.3 euro cents (Q4 2017: 14.6 euro cents).
• Adjusted EBITDA amounted to €82 million (Q4 2017: €50 million).

FY 2018 Highlights

• Total volume was 10,888 million liters (FY 2017: 7,104 million liters).
• Gross profit margin per liter was 14.0 euro cents (FY 2017: 14.0 euro cents).
• Adjusted EBITDA amounted to €322 million (FY 2017: €214 million).
• Pro-forma synergies adjusted EBITDA amounted to €374 million.
• One-off acquisition costs and operating cost overruns reflected in net results.
• Net debt excluding shareholder funding amounted to €2,273 million at year-end (September 30, 2018: €2,300 million).

CEO Refresco, Hans Roelofs commented:
“2018 was a transformational year for Refresco. In January we completed the acquisition of Cott’s bottling business, creating the world’s largest independent bottler for retailers and branded beverage companies and in March we completed the public to private transaction by PAI and BCI. In the final quarter of 2018, we continued to see strong overall volume growth across the business in line with our expectations and driven by both the Cott acquisition and organic growth. Although we did not achieve the level of profitability we wanted, we made good progress with integration of the two businesses and synergies are on track.

“One-off costs related to the acquisition of Cott’s bottling business and acquisition of Refresco by PAI & BCI, overruns in operating costs and some headwinds on input costs were the key items impacting our net results for the year.

“In 2018 we worked hard on the building blocks for further profitable growth in 2019 and we invested €134 million in our production and warehousing capabilities across the business. In February 2019, I was pleased to announce that we acquired Cott’s concentrate manufacturing business in Columbus, Georgia (US). This creates a global center of excellence in beverage concentrate manufacturing and adds new innovations skills and capabilities to our Group.

“To accelerate the next phase of our growth, we have decided to adjust the management structure of Refresco and create an Executive Committee. The Executive Committee will comprise the current Executive Board members and as of 1 April 2019 Chief Purchasing Officer (CPO) Coert Michielsen. The Executive Committee will be installed on 1 April 2019.” …

The Annual Report 2018 is available for download under https://bit.ly/2Wtqwnc

Tate & Lyle, a leading global provider of food and beverage ingredients and solutions, announces it has reached agreement to sell its oat ingredients business, based in Kimstad, Sweden, to Swedish agricultural cooperative Lantmännen. Completion of the transaction will take place on 29 March 2019.

Joan Braca, President, Food & Beverage Solutions, Tate & Lyle said: “We are pleased to reach this agreement with Lantmännen which represents a good outcome for our oat ingredient employees and customers, and enables us to focus our business on serving our customers in our main food and beverage categories. We wish Lantmännen and its employees every success for the future.”

Krones, the world’s leading manufacturer of filling and packaging technology, continued to grow in 2018 despite difficult conditions. The company benefited as a full-service provider from its extensive product and service range and broad international footprint.

Krones achieves growth target for 2018 financial year

Revenue increased by 4.4 % year-on-year, from €3,691.4 million to €3,854.0 million. The company thus achieved the revised target of 4 % revenue growth announced in autumn 2018. Revenue grew operationally (i.e., adjusted for currency and acquisition effects) was around 5 %. Krones increased revenue, in some cases significantly, in Europe, China and South America/Mexico. Revenue was down in the Asia/Pacific region, the Middle East/Africa and in North and Central America.

Despite the high prior-year figure, order intake increased by 4.5 % in 2018, from €3,786.8 million to €3,957.3 million. Growth in order intake was above average in Western and Eastern Europe and in China. Krones had orders on hand totalling €1,261.1 million at the end of 2018. This once again exceeded the very high prior-year figure by 1.7 %.

Krones continued to invest in the growth of its workforce in 2018, primarily for the expansion of its global footprint. The company employed 16,545 people worldwide at the end of 2018. This represents an increase of 1,246 employees on the previous year, about 400 of which related to acquisitions.

Profitability affected by one-off expenses, mainly for reorganisation

Krones’ earnings were significantly impacted by higher material and labour costs in 2018. The 5.3 % EBT margin includes approximately €42 million in one-off expenses, mainly for reorganisation.

Had these expenses not been incurred in 2018, the EBT margin would have been 6.4 %. The costs related to establishing the production site in Hungary account for the largest share of this amount. In total, earnings before taxes (EBT) in 2018 were down by 21.1 % or €54.5 million year-on-year to €204.3 million (EBT margin: 5.3 %).

Earnings decreased in both segments. In the core segment, Machines and Lines for Product Filling and Decoration, EBT went down by 15.2 % year-on-year, from €263.3 million to €223.3 million. Expenses for reorganisation reduced segment earnings here by around €25 million. In the Machines and Lines for Beverage Production/Process Technology segment, EBT deteriorated from –€4.5 million in the previous year to –€19.0 million. This mainly related to a total of around €17 million in one-off expenses.

Krones improves free cash flow by €271.4 million

Krones was able to significantly reduce working capital between October and December 2018. This had a positive impact on free cash flow, which improved in 2018 by a substantial €271.4 million compared with the prior year, to €120.7 million (previous year: –€150.7 million). The ratio of average working capital over the past four quarters to revenue developed slightly better than expected, holding stable at 27.3 % in 2018. Net cash went up to €215.1 million at the 2018 reporting date (previous year: €157.4 million). Due to the increase in total assets, the company’s equity ratio decreased slightly to 43.2 % (previous year: 43.8 %). Overall, Krones continues to possess a very robust financial and capital structure.

With the above figures, Krones has confirmed the preliminary figures published on 21 February 2019. No significant changes arose in the course of the auditing process.

Shareholders to receive stable dividend of €1.70 per share

At the Annual General Meeting on 5 June 2019, the Executive Board and Supervisory Board of Krones will be proposing a dividend of €1.70 per share for the 2018 financial year. The proposed dividend is stable relative to the previous year. The planned payout is 35.7 % of consolidated net income.

Outlook

Based on the prevailing macroeconomic outlook and the current expected development of the markets relevant to Krones, the company expects consolidated revenue growth of 3 % in 2019.

In order to achieve its medium-term corporate targets, Krones will continue in 2019 to work towards a global structure fit for the future challenges. The company does not expect any noticeable fall in material procurement prices in 2019; the same applies to labour costs. Krones’ sales price increases on all bottling and packaging equipment and for process technology with effect from 1 May 2018 are likely to have a slight positive effect on earnings in the 2019 financial year. Overall, Krones expects an EBT margin of around 6 % for 2019.

Above all due to the focus on increases in the sales price level, in the current economic and geopolitical climate, Krones sees the achievement of its targets for 2019 subject to greater uncertainties than in the past. For its third performance target, working capital to revenue, Krones expects a figure of 26 %.

Krones has published the Annual Report 2018 online at https://www.krones.com/en/company/investor-relations/krones-group-annual-report-2018.php

Combined product portfolio and manufacturing capabilities create unique botanical platform in North America

The Martin Bauer Group is excited to announce the acquisition of BI Nutraceuticals, a leading full-service manufacturer and supplier of plant-based ingredients in the United States. The acquisition creates an extensive portfolio of botanical ingredients and a versatile manufacturing hub servicing the U.S. Tea, Beverage, Food and Dietary Supplements industries.

The investment in BI Nutraceuticals will build on Martin Bauer Group’s local capabilities including R&D, formulations and manufacturing, in support of the Group’s strategy to foster accelerated growth in North America. A distinction of Martin Bauer Group’s portfolio is the responsible and vastly diversified sourcing of raw materials, with quality standards and controls in place starting at source and continuing throughout the procurement and manufacturing processes. “The addition of BI Nutraceuticals to our Group buttresses our commitment to reliable, quality, safe and clean label raw materials, meeting an increasing demand from our customers and consumers,” stated Ennio Ranaboldo, CEO of Martin Bauer Group in North America. The two companies will continue to operate independently, and further communications will be issued to ensure seamless integration both internally and for all customers.

“We are thrilled to be a part of the nature network® and the Martin Bauer Group,” said George Pontiakos, President and CEO of BI Nutraceuticals. “This represents a significant move forward for us and our combined customer base. The Martin Bauer Group is a family-owned international company with a long history as a manufacturer and supplier of teas, extracts and botanical products going back more than 135 years. BI Nutraceuticals will now have access to the global resources of the Martin Bauer Group in the areas of raw materials sourcing, processing technology, liquid extract production and research and development. As part of the Martin Bauer Group, we become a true single source solution provider. Our customers can be even more confident in our long-standing commitment to safety, quality, service and innovation.”

The fast-moving consumer goods (FMCG) sector has undergone a significant transformation over the past decade and it continues to evolve.

Sumit Chopra, Consumer Research Director at GlobalData, a leading data and analytics company, highlights top five innovation trends that are going to impact the production, marketing and sales of consumer goods in Asia-Pacific (APAC) in 2019.

Fat gets thumbs up

“The consumer sentiment towards fats is evolving. Perceptions such as ‘Not all fat is bad’ and ‘fat is prosperity’ have started picking up in recent years. In an era of personalized nutrition, interest in specialty diet trends such as Keto, Paleo or Whole30 will continue to grow as consumers are questioning the role of sugar weight management, thus, adding more protein and fats to their diets. As specialty diets which rely more on fats move into mainstream, food and beverage makers are capitalizing on the opportunity to deliver low-carb and high-fat products. Buoyed by the unexpected success of high-fat, moderate protein and low-carb keto diet, companies such as US-based Just Inc are exploring Asia’s market to launch their products.

‘Better-for-you’ alcoholic beverages

“Consumers are gravitating towards lighter, less caloric, flavored alcoholic drinks, creating opportunities for manufacturers. Liquor manufacturers are paying close attention to nutrients, calorie counts and healthful ingredients while incorporating ‘better for you’ ingredients such as fruit juice, water and tea. The ‘better-for-you’ alcohol trend is graduating from niche status to a broader market sufficient in size and scope to interest alcohol manufacturers at the global level. Manufacturers in APAC are already keeping a close eye on this space. The Cannabis Co launched The Myrcene Hemp Gin, claimed to be the world’s first cannabis-infused gin that has value as a ‘dietary health and wellness supplement’ in Australia. In the first phase of ‘better-for-you’ alcoholic beverage revolution, we will see alcohol companies find even more ingenious ways to reach out to health-oriented consumers and more product launches in the flavored alcohol category are expected this year.”

360-degree wellness

“According to GlobalData’s 2018 Q3 Consumer Survey, 64 % of consumers in APAC are always or often influenced by how a product impacts their health & wellbeing while making their food choices. Against this back drop, FMCG companies will map out the wellness considerations for the products they offer and position them positive to consumers of all ages to leverage on growing consumer interest in healthy eating, local flavors, and personalization. In the wake of the health & wellness trend, Nestle forayed into the breakfast cereal category with Nesplus to offer healthy breakfast options to Indian consumers. In the non-alcoholic beverage category, Kombucha, turmeric latte or kefir will remain very much on-trend to attract interest from major soft drink manufacturers.

Changing regulatory landscape

“FMCG companies need to be ready for the likelihood of increased regulation of specific products, markets and packaging as governments across the world are exercising more power, particularly around issues such as obesity, consumer welfare and plastic pollution. The Indian government is exploring frameworks to ensure GST rate cut benefits to reach consumers along with proposing new packaged food labeling rules while food and beverage manufacturers in China are required to use a new set of quality and safety standards and have a food production license for all food categories.

Halo effect of plants

“Plant-based ingredients are seen as safer, more natural and better for the environment than ingredients from other sources. As a result, FMCG companies in Asia are beginning to add plant-based ingredients to their products, rebranding them as sustainable and environmentally friendly. Unilever’s move to launch vegan ice-cream in New Zealand under its Magnum brand is an example of major companies getting creative with iconic food ingredients in the region. We will be seeing more launches similar to PepsiCo India’s new packaging format made from 100 % compostable plant-based material for Lay’s and Kurkure snacks products. FMCG non-food makers are also turning to plant-based ingredients.”

Archer Daniels Midland Company (NYSE: ADM) announced that it has reached an agreement to acquire the Ziegler Group, a leading European provider of natural citrus flavor ingredients. The agreement comes shortly after ADM completed its addition of U.S.-based citrus flavor provider Florida Chemical.

“Ziegler is highly respected as a cutting-edge leader in citrus, and we’re excited to welcome their outstanding leadership and talent to ADM,” said Vince Macciocchi, president of ADM’s Nutrition business. “The combination of Ziegler and Florida Chemical will immediately position ADM for growth as a global leader in natural citrus ingredients, with a complete range of innovative citrus solutions and systems for food, beverage and fragrance customers.”

Founded in 1963, Ziegler uses proprietary cold concentration technologies to produce natural high-quality citrus oils, extracts, concentrates and compounds for flavor, food, and beverage industry customers, focusing on Europe, the U.S. and Japan. The company is privately held and headquartered in Aufsess, in southern Germany.

“We are delighted that we found a strong home at ADM where both our business and our people can grow,” said Günter Ziegler. “The integration of more than 50 years of citrus expertise into the ADM group will secure our top priority: successful long-term growth for our business and our employees. Our family members will be staying with the company to help ensure a smooth transition. We’re excited to join ADM and strongly believe that the combination of our technology and citrus capabilities, coupled with the portfolio of ingredients and global reach of ADM, will accelerate growth opportunities while creating benefits for our customers.”

“Citrus is one of the fastest-growing, highest-demand flavors for food and beverages, which is why the creation of a global citrus platform offering a complete product line for our customers is such an important capability for our growth strategy,” Macciocchi continued. “We’re continuing the most ambitious portfolio transformation in our company’s long history, and as we build the world’s leading nutrition company, the beneficiaries will be our customers and our shareholders.”

The deal, which is subject to regulatory approval, is expected to close in the second quarter of 2019.

Dr. Johannes-Thomas Grobe is to be the new head of Sales and Service at KHS GmbH. This has now been confirmed by the company’s supervisory board. The 53-year-old shall be moving from Dürr Systems AG, a machine and systems manufacturer for the automobile industry, to the Dortmund systems supplier. Dr. Grobe joins chairman Kai Acker and Martin Resch on the KHS Executive Management Board.

The restructuring of the KHS Executive Management Board is now complete. “We’re very pleased to have gained a proven expert and leader for our company in Dr. Grobe. He brings with him a wealth of industrial experience gleaned during his professional career,” says Acker, chairman of KHS’ Executive Management Board. Dr. Grobe has extensive knowledge as an executive manager of product and technological developments, innovative projects and production and manufacturing processes.

The computer scientist, who obtained his PhD from RWTH Aachen University in 1998, initially held various posts at Bosch Rexroth AG, among them the vice-presidency of Sales for Industrial Management, Key Account Management and Application Development for Industrial Applications. Dr. Grobe was then managing director of Bosch Rexroth in India.

On September 1, 2015, he joined Dürr Systems AG as senior vice-president of Sales and Marketing for Paint and Final Assembly Systems. On April 1, 2019, Dr. Grobe will take up his new position as head of Sales and Service at KHS. “We’re well set up for the future and shall together generate key impetus for the growth of the KHS Group,” states Acker.