At this year’s Anuga trade fair, held between 5 and 9 October, Doehler will present a diverse portfolio of innovative, natural ingredients and applications which combine plant-based nutrition, sugar reduction and functionality with unique Multi-Sensory Experiences^®.

Unique Multi-Sensory Experiences^®

When it comes to food and beverages, consumers are above all looking for products with unique taste sensations along with healthy, natural ingredients, new textures, brilliant colours, an exquisite mouthfeel and ultimately the emotional enjoyment that comes from Multi-Sensory Experiences®. Doehler will present innovative concepts at its stand which, based on the comprehensive portfolio of natural ingredients, include natural flavours and colours, to dry ingredients and innovative sweetening solutions, create a perfectly harmonious mixture of taste, appearance and texture to appeal to all the senses.

Refreshing beverages which are less sweet, yet full of flavour, are in great demand. Doehler has therefore developed reduced sugar concepts for lemonades and co., comprising well-known classics up to innovative beverages. The diverse selection of natural sweetening solutions can be perfectly tailored to the respective desired taste profile through countless combination options.

Innovative Sweetening Solutions

Beverage concepts that are less sweet and have a more exciting flavour diversity are becoming ever more popular amongst consumers. The Refreshingly Light Soda provides a pure fruit taste, combining the sour, yet fresh flavour of lemon with a hint of sweet peach and is presented in the trend colour of coral. At under 5 g per 100 ml, the sugar content is low, while a juice content of at least 8% is that much higher. Consumers looking for a lemonade with a more “grown-up” taste profile should try our Light Brewed Soda with its special flavour notes of brewed ginger and brewed lime. Thanks to a natural sweetening solution using a stevia tea brew, the drink has a sugar content of just 4.1 g per 100 ml.

Water Plus – Plus added naturalness, variety or health

Everyone is talking about Water Plus, a series of innovative beverage concepts with a hint of flavour and healthy added value! Discover applications such as Fruit Infused Water in lemon & apple or raspberry & mint flavours, or the fruity-tart taste sensation of Botanical Waters, created by adding lemon juice containing rosemary and coriander extracts, at the Doehler stand. The Energising Water with the exotic flavours of mango and passion fruit, as well as caffeine, ginseng and guarana extract, provide a natural energy boost in addition to the multi-sensory experience.

Driving Nutritional Excellence

Ever more consumers expect the food and beverages they consume to have a natural, functional added value as well as vibrant appearances and excellent taste. Doehler will therefore present a selection of innovative and diverse concepts based on Health Ingredients. These include herbal and fruit extracts, plant-based proteins, and vitamins and minerals.

The Plant-Based High Protein Drink, also available in vanilla flavour, is a perfect alternative to milk while also providing plant-based proteins for a balanced diet. Our Protein Ball is a delicious and healthy in-between snack with apricot ingredients which supply the body with plant-based proteins. The same goes for our Protein Bars which use 100% natural fruit powders to create a first-class banana or raspberry flavour and which also have a high plant-based protein content.

Alongside the innovative food applications, Doehler also has beverage concepts with functional added value. Many consumers require an additional source of energy which can easily be integrated into their active lifestyle. The next generation of energy drinks developed by Doehler are perfectly suited here and impress with their natural ingredients and low calorie content. The spectrum ranges from a Guayusa Energy Drink and a Cold Brew Coffee Energy Drink to a cola-flavoured Zero Sugar Energy Drink.

Hall 8, Stand A010

Updated orange¹ crop forecast totals 388.42million boxes

The 2019-2020 orange crop forecast update for São Paulo and West-Southwest Minas Gerais citrus belt, published on September 10, 2019 by Fundecitrus – performed in cooperation with Markestrat, FEA-RP/USP and FCAV/Unesp² – is of 388.42 million boxes of 40.8 kg each. This figure corresponds to a decrease of 0.12 % in relation to the estimate published in May/2019. Approximately 27,14 million boxes of the total crop should be produced in the Triângulo Mineiro region. …

Please download the complete forecast under: www.fundecitrus.com.br/pdf

¹Hamlin, Westin, Rubi, Valencia Americana, Seleta, Pineapple, Pera Rio, Valencia, Valencia Folha Murcha andNatal.
²Departamentof Math and Science at FCAV/Unesp Campus Jaboticabal.

The difficult economic conditions and uncertainties such as the unresolved trade conflict between China and the USA increasingly affected Krones’ business in the first half of 2019. After strong growth in the first quarter (by 10.3 %), revenue from April to June increased by 0.7 % year-on-year. In total, the company’s revenue from January to June 2019 improved by 5.5 %, from €1,790.8 million in the previous year to €1,889.3 million. Adjusted for acquisitions and currency effects, growth was 1.8 %.

The slowdown in the economy and the uncertain economic outlook are also affecting investment confidence among Krones’ customers. The company experienced weak demand in parts of its portfolio between April and June 2019. However, Krones was largely able to compensate for this due to its broad product range. Order intake from January to June 2019 increased by 1.2 %, from € 2,014.8 million to € 2,038.6 million. Adjusted for acquisition effects, the contract value of orders increased by 0.4 % in the first six months of 2019.

High costs and unfavourable product mix impact profitability

Earnings before taxes (EBT) decreased year-on-year in the first half of 2019, from € 112.7 million to € 47.9 million. The EBT margin dropped from 6.3 % to 2.5 %. Krones’ profitability was impacted by high material and labour costs. The product mix also had an adverse effect on earnings. In the second quarter of 2019 in particular, revenue was lower than expected on products with a large proportion of own value added, such as machines and lines in plastics technology. That led to capacity underutilisation in this area. Another major reason for the lower earnings is that revenue in parts of the high-margin after-sales business was above 2018 but below budget in the first half of 2019. Krones generated consolidated net income of € 33.3 million from January to June 2019 (previous year: € 76.9 million). This corresponds to earnings per share of € 1.06 (previous year: € 2.45).

Krones has improved the ratio of average working capital to sales over the past four quarters. The ratio decreased from 28.8 % in the previous year to 26.0 %. Free cash flow went down to – € 259.4 million (previous year: – € 56.2 million). Krones having a negative free cash flow in the first half year is a seasonal effect and is nothing out of the ordinary for the company’s business.

Krones expects better earnings in second half year

The Executive Board has taken further action to offset the negative impacts on earnings. This includes among others a recruitment freeze and measures to reduce material costs. We are progressing well with the expansion of our global footprint. The new plant in Hungary, for example, is fully on schedule and on budget. Krones will start producing there in the course of this year and will generate positive earnings contributions from the Hungarian plant from 2020 as planned.

Krones expects, in line with previous year, that especially in Q4 the production capacity utilisation will increase as well as the high-margin life-cycle services (LCS) business. Therefore Krones expects better earnings in the second half of 2019 than in the first six months.

In total, the company expects growth of 3 % in 2019. The EBT margin is expected to be around 3 %. For its third performance target, working capital to revenue, Krones expects a figure of 26 %.

Krones working on structural measures and adheres to mid-term targets

The strategic measures launched to date, such as the price rises and expansion of our global footprint so far, are not enough for the earnings targets to be attained on a long term basis. The Executive Board is therefore currently working on further structural changes for a sustained increase in profitability. These changes focus on reducing complexity, rapid response to market needs and shaping an even more customer-centric business organisation.

Krones is maintaining its mid-term targets. Depending on the overall economic situation and developments in the company’s markets, the Executive Board expects average annual revenue growth of 3 % to 5 % excluding acquisition effects, an EBT margin of 6 % to 8 % and working capital at 22 % to 24 % of revenue.

Krones has published the complete Interim Report for the first half of 2019 online at www.krones.com

The 2018-2019 Florida all orange forecast released today by the USDA Agricultural Statistics Board is now 71.6 million boxes. The total is comprised of 30.4 million boxes of non-Valencia oranges (early, midseason, and Navel varieties), unchanged from the June forecast, and 41.2 million boxes of Valencia oranges, up 200,000 boxes from the June forecast. The forecast of all Florida grapefruit production is unchanged at 4.51 million boxes. Of the total grapefruit forecast, 770,000 boxes are white and 3.74 million boxes are the red varieties. The Florida all tangerine and tangelo forecast remains at 990,000 boxes. …

Please download the full citrus crop production forecast: www.nass.usda.gov

The beverage sector has undergone a significant transformation over the past decade in line with changing consumer preferences.

Sumit Chopra, Consumer Research Director at GlobalData, a leading data and analytics company, highlights six major innovation trends that are set to impact the production, marketing and sales of the beverage sector in Asia-Pacific (APAC) in 2019.

Unusual ingredients and featured flavors

GlobalData’s 2018 Q4 Consumer Survey found that 17 % of consumers in APAC often like to experiment with novel ingredients, creating opportunities for manufacturers. For instance, India-based urban lifestyle beverage brand Zago launched Iced Masala Chai, which offers a ‘refreshing’ twist to traditional ready to drink teas infused with traditional aromatic flavors such as cardamom and ginger.

Authentically indulged

According to GlobalData’s 2018 Q4 Consumer Survey, around 40 % of APAC consumers are willing to pay more for better quality beverages. Against this backdrop, beverage manufacturers are aiming to create an authentic brand image to foster consumer trust and loyalty. In Australia, Podpac is offering new coffee pods under the Baileys trademark in order to give coffee drinkers a premium indulgence that is marketed under an alcohol brand name.

Revitalized & balanced

GlobalData’s 2018 Q4 Consumer Survey highlights that 65 % of consumers in APAC are always or often influenced by how a product impacts their health and wellbeing while making their consumption choices. Against this backdrop, beverage companies are mapping out the wellness considerations for the products they are offering to attract a niche market of specialists such as sports enthusiast and athletes, whilst also appealing to the mainstream of active lifestylers. For example, Applelachia launched a sparkling apple cider drinks range that incorporates foreign ingredients like Yuzu, a citrus fruit used as a tonic by samurais to boost their immune system, in Australia.

Packaging formats

GlobalData’s research reveals that APAC consumers prefer small single-serve pack sizes and seek out new products packed in PET and small metal cans, reflecting the overall emerging trend in the region towards on-the-go consumption. For instance, Locally Merci Buco 100 % organic coconut water in a 330 ml tetra pack variant bagged a packaging excellence award for an innovative PET squeezable bottle in 2019 in the Philippines, as it catered to the strong association between energy drinks and on-the-go consumption.

Sugar war raging

Beverage companies need to be ready for the likelihood of stringent regulations, as the governments across the region are exercising more power, particularly around issues such as obesity and consumer welfare. Malaysia’s Ministry of Health is all set to impose a sugar tax on sugar-sweetened beverages from 1 July 2019. Against this backdrop, key beverage brands are reformulating their portfolios. For instance, Malaysia-based Fraser & Neave (F&N) Holdings Bhd is looking to reformulate 70 % of its products to mitigate the sugar tax impact.

Moderation & avoidance

Consumers are increasingly becoming health-conscious and proactively addressing their health issues by curbing alcohol indulgence. Manufacturers are therefore striving towards offering zero alcohol beverages with healthy ingredients. Heineken’s launch of new zero-alcohol beer Heineken 0.0 in Singapore fulfills the growing demand for non-alcoholic alternatives for evolving customers.

“Tomorrow begins when you create it” is the slogan of FachPack, the European trade fair for packaging, processes and technology. And that slogan will sum the situation up perfectly when more than 1,500 exhibitors gather in Nuremberg from 24 to 26 September 2019 to display their innovative packaging solutions for consumer and industrial goods. The range of products and services on show in the twelve exhibition halls will answer questions on packaging for about 45,000 expected trade visitors. One topic in particular is driving the industry like no other at the moment, and has therefore been chosen as the key theme for FachPack 2019: “Environmentally friendly packaging”. This theme will be reflected at the stands of many exhibitors, and in the lecture forums, special shows and award ceremonies.

Consumers today want environmentally friendly packaging, whether for foodstuffs, beverages, cosmetics or any other products in daily use, and Germany’s new Packaging Act and the EU Plastics Strategy now place even more stringent demands on manufacturers and the retail sector in this regard. The challenges this creates for packaging are often complex. “The packaging of the future has to serve both consumers and the environment and must take the entire cycle into account,” says Cornelia Fehlner, exhibition director for FachPack, NürnbergMesse. “The packaging industry already has a wide range of solutions for these challenges, and FachPack is the ideal platform for both presenting and talking about them. We are proud to be the showcase for this innovative sector.”

Visitors appreciate FachPack because of its professional depth, its broad range of themes, and the innovative stimuli it offers. The previous trade fair in 2018 drew 44,019 trade visitors to Nuremberg to participate in the gathering of European packaging industry representatives under one roof. According to the results of a survey by an independent market research institute, visitors sought mainly to learn about new developments (44 percent); gain an overview of the market (30 percent); share experiences (29 percent); and cultivate business contacts (28 percent). One in two visitors said they held a leading position in their company. A total of 98 percent of those surveyed said they were happy with both the range of products and services and the contact opportunities at the exhibition stands.

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.

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 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.”

The International Brewing and Cider Awards announced the medal winners for 2019; certifying 133 beers and ciders as among the best in the world.

The beer medal winners ranged from small craft breweries from all corners of the globe to well-known brands such as Sierra Nevada, Samuel Adams, Camden Town, Deschutes, Fullers and Big Drop.

Meanwhile, successful cider winners included Sheppy’s. Aspall’s, Angry Orchards and Strongbow amongst many smaller craft brands from Somerset, England to Camino, Calfornia.

The competition – attracting entries from 200+ breweries and cider mills from around world – was judged by an international panel of 50 judges.

Over 1000 beers and ciders from 50 countries were submitted for judging, which took place over an intensive three-day period.

Judging categories ranged from ultra-low ABV beers to high-strength styles, showcasing the versatility and variety found in modern-day brewing.

Cider categories included different fruit varieties, hopped and ice ciders, as well as judging across sweet and dry styles.

An International Brewing & Cider Awards medal is considered among the industry’s most coveted awards.

Established in 1888 – and evolving consistently over time to reflect an ever-changing beer and cider industry – the International Brewing & Cider Awards aim to reward and recognise the innovation, attention to detail and hard work that goes into beer and cider production.

The awards will culminate with the medal presentations at London’s Guildhall, where members of the international brewing and cider-making community will come together to discover and celebrate the 2019 trophy winners.

Speaking of this year’s medal winners, Ruth Evans MBE, Director of Brewing Technology Services who oversee the awards, said: “It brings me great pleasure to announce the medal winners, and no small measure of pride to be involved in our fantastic industry. These awards are a bastion of excellence, and we are always sincerely impressed by the talent of the medal winners. With each round of awards, the standards are pushed ever higher. Competition is fierce, and receiving a medal is an achievement to be truly proud of. My congratulations to all!”

Chairman of Judging, Bill Taylor, said: “Being Chairman of Judging has been such a privilege. My thanks go out to my fellow judges, and to all those who are involved in organising these incredible awards, especially our technical installation team. We pride ourselves on ensuring that the integrity of any product submitted remains in peak condition, and that it is dispensed to our Judges at the brewers’ and cider makers’ recommended temperature. Judging and sampling the quality of entries has been a wonderful experience, and we have been blown away by the brewing and cider making talent that we have witnessed.”

All Oranges 77.0 Million Boxes

The 2018-2019 Florida all orange forecast released today by the USDA Agricultural Statistics Board is 77.0 million boxes, unchanged from the February forecast. If realized, this will be 71 percent more than last season’s hurricane affected production. The forecast consists of 31.0 million boxes of the non-Valencia oranges (includes Navel varieties) and 46.0 million boxes of the Valencia oranges. Regression data used are from the 2008-2009 through 2016-2017 seasons. All references to “average”, “minimum”, and “maximum” refer to those 9 seasons unless noted. The hurricane affected 2017-2018 season is excluded from the regressions.

Non-Valencia Oranges 31.0 Million Boxes

The forecast of non-Valencia production is lowered by 1.00 million boxes to 31.0 million. The Row Count survey conducted February 25-26, 2019, showed 97 percent of the early-midseason rows and 84 percent of the Navels rows are harvested. Estimated utilization for non-Valencia oranges to March 1, with an allocation for non-certified fruit, is 30.1 million boxes. The Navel forecast, included in the non-Valencia portion of the forecast, is reduced to 750 thousand boxes.

Valencia Oranges 46.0 Million Boxes

The forecast of Valencia production is increased by 1.00 million boxes to 46.0 million boxes. Current fruit size is below the minimum and is projected to be below the minimum at harvest, requiring 268 pieces to fill a 90 pound box. Droppage is now projected to be average at harvest. Harvest of Valencia oranges has begun. …

Please download the full citrus crop production forecast: www.nass.usda.gov

Coca-Cola European Partners (CCEP) will invest over EUR 500 million in 2019, as part of an ongoing multi-year EUR 1.5 billion investment programme.

The announcement was made at CAGNY Conference for investors in Miami. The programme focuses on delivering more for our customers by investing in new technology, supply chain capabilities and coolers.

Damian Gammell, Chief Executive Officer at Coca-Cola European Partners, said: “We’re investing in key areas of the business to make it easier for customers to do business with us, and to offer consumers a wider range of great products. Last year our targeted investment programme helped to create EUR 8.7 billion in value for customers – nearly EUR 600 million more than 2017.”

Next generation digital solutions

Making it easier for customers to do business with us by developing and investing in new digital solutions. Highlights include:

• Mobile sales tools which not only improve the customer experience but also increase productivity and optimise sell time
• New business analytics capabilities to improve promotions and forecasting with customers
• Expanding digital services for customers, such as Kollex, a recently established digital joint venture for the beverage wholesale trade and the away-from-home market in Germany

Boosting capabilities across our supply chain

Increasing capacity and capabilities to service our customers quickly and easily, and support our growing portfolio of drinks sustainably. Highlights include:

• New manufacturing lines in Halle, Mannheim, Barcelona, Seville, Ghent and Wakefield to provide consumers with a greater choice of products and packs
• Increasing the amount of recycled plastic in our products, such as the ongoing work with Ioniqa to transform hard to recycle plastic waste into high quality, food-grade PET
• Increasing capacity for refillable glass bottles and trialling new routes to market, such as our new partnership with Loop and Carrefour in France for returnable and refillable glass

Increasing product availability

Expand cold drink equipment, making it easier for consumers to find our drinks on the go. Highlights include:

• Placing 69,000 more coolers in customers’ outlets in 2019
• Better outlet targeting and segmentation through an expanded range of cooler sizes and types

CCEP Ventures

At CAGNY Conference, CCEP also announced the creation of an innovation investment programme.

The programme – CCEP Ventures – will focus solutions across customer experience and support, logistics and distribution, future packaging design and technology, prediction and pricing analytics

On the launch of CCEP Ventures, Mr Gammell said: “Our business faces future disruptive trends that need innovative solutions and we need to adapt and learn quickly. CCEP Ventures will help us bring the best minds and ideas from the outside world into our business. It will help us find, fund and foster new solutions and scale with speed.”

Stand applications for ASIA FRUIT LOGISTICA 2019 are closing soon, and exhibitors looking to secure their space at this year’s event on 4 – 6 September at AsiaWorld-Expo Center, Hong Kong, must register by 28 February. Any applications received after this date are accommodated on a first come, first served basis.

Representatives from around 20 different countries have already signed up to exhibit at ASIA FRUIT LOGISTICA 2019, and the range of products on display has been expanded this year beyond fresh fruit and vegetables.

Last year, ASIA FRUIT LOGISTICA attracted more than 13,000 industry professionals from over 70 different countries who took in a vast array of products and services from 826 exhibitors representing 46 nations. An expanded product range this year presents even greater sourcing and marketing opportunities for servicing Asia’s growing demand for wholesome, healthy produce.

For more information on exhibiting at ASIA FRUIT LOGISTICA, please contact:
Sinenart Baramirattanachai by email: sinenart@gp-events.com or visit www.asiafruitlogistica.com.

RUSSIAN APPLE is a business event of a closed format, consisting of a Regional Forum and Technological Exhibition dedicated to industrial gardening in the South of Russia as well as two days of onsite visits to the most promising orchards in the region. This event involves key decision-makers in the development of the industry, top management of various companies, directors and divisional managers, government officials, banks and investors.

The forum consists of strategic sessions to discuss the most important issues of the industry, such as:

• Prospects for gardening in Russia and development strategy;
• Investment potential of the industry;
• The development of nurseries in Russia;
• Storage and recycling issues;
• Internal sales;
• Other important issues for the industry.

During the Forum, a specialized exhibition of equipment and technologies for industrial gardening is held where service companies can talk about their products with their potential customers. It is a unique opportunity for companies that provide products or services for industrial gardening to make new business contacts with their direct consumer.

Advantages of the event:

• Full view of what is happening in the industry from experts and market professionals;
• Onsite visits allow to make new business contacts and partnerships, exchange of experience with leading industry enterprises and agreements on new contracts;
• Informal communication during a gala dinner or cocktail reception with colleagues and potential customers.

The RUSSIAN APPLE Forum is dedicated to the orchards of the Southern Region of Russia, with the presentation of 50+ investment horticultural projects, with 4 strategic sessions on top industry issues, with 20+ reports from leading industry experts, and 2 days of onsite visits to 4 most promising orchards in Krasnodar and Stavropol regions.

Request a program and participation: https://soforogroup.com/en/russian-apple-en/

SIG is the first in the industry to offer a market-ready alternative to plastic straws, announcing that a paper straw solution will be delivered to first customers in the first quarter of 2019.

With growing concern about the environmental impact of plastic straws, the food and beverage industry urgently needs an alternative solution. SIG’s new paper straw offers such a solution.

Nestlé is the first customer to introduce SIG’s paper straw solution and has already tested the market launch in the Dominican Republic.

Seeking a solution

SIG does not make straws, but some of its portion-size packs are designed to be used with a straw for convenience on the go and the company has been working with suppliers to develop alternatives.

Paper is renewable and recyclable. This forest-based material already makes up 70 – 80 % of SIG’s cartons on average, and the look and feel of paper also visibly reinforces its environmental credentials to consumers.

SIG worked closely with a manufacturing partner to develop an innovative and exclusive solution that makes the paper straw robust enough to pierce the closed straw hole of SIG’s aseptic cartons. The wrapper for the straw has also been redesigned to help prevent litter by remaining attached to the pack to be recycled along with the rest of the carton.

The new paper straws will be made of paperboard from FSCTM (Forest Stewardship CouncilTM)-certified forests or other controlled sources. Customers can already include the FSC label on any SIG carton and they will be able to add the label to the paper straws once the manufacturing partner has completed FSC Chain-of-Custody certification, which is expected during the second half of 2019.

The new paper straw solution supports SIG’s efforts to use more renewable materials. The initial volume of paper straws will be limited during the launch phase, as SIG ramps up capacity with its manufacturing partner. SIG is also continuing to invest in new ways to apply this alternative straw solution to a wider variety of packaging formats.

According to tradition, the World Apple and Pear Association (WAPA) held its Annual General Meeting on the last day of the Fruit Logistica fair in Berlin, 8 February 2019. Representatives of the key global apple and pear producing and exporting countries met to discuss the Southern Hemisphere production forecast, the final update of the Northern Hemisphere production forecast that was released in August 2018, and the season developments.

WAPA discussed and released the consolidated crop forecasts for the forthcoming southern hemisphere apple and pear seasons (see tables in annex). Collected from industry associations in Argentina, Australia, Brazil, Chile, New Zealand and South Africa, the forecast showed that the 2019 apple and pear Southern Hemisphere crops are expected to reach 5.261.000 T and 1.327.000 T, respectively. For apples, this represents an increase of 2 % compared to the 2018 crop. Export is expected to remain stable at 1.738 million T. The pear crop is expected to increase by 2 % compared to 2018. Export is expected to remain stable at 712.154 T.

Other topics on the agenda were marketing, promotion and consumption trends, research and innovation activities among the members, and global initiatives to preserve the biodiversity of the many apple varieties.

Finally, WAPA elected a new president, Nicholas Dicey from HortGro, South Africa, formerly WAPA’s vice-president. As new vice-president, Dominik Wozniak from the Polish Society for Promotion of Dwarf Fruit Orchards was elected. The WAPA secretariat and members are looking forward to continuing the good trends in the coming years with its new presidency and thanked Todd Fryhover from Washington Apple Commission for his time and efforts as WAPA’s vice- president and president over the last four years.

The prices paid to the orange growers from São Paulo and the Triângulo Mineiro region in the 2019/20 season should be positive, despite the larger production, since inventories are forecast to, again, decrease to critical levels at the processors from SP State (because of the lower production in 2018/19), underpinning the demand for the fruit.

According to estimates from CitrusBR (Brazilian Association of Citrus Exporters) released in August/18, the ending stocks of Frozen Concentrate Orange Juice (FCOJ) Equivalent forecast to June 30 2019, at 146.7 thousand tons, would only be enough for a two-month exporting period. Therefore, this scenario could underpin orange prices in the Brazilian market in 2019, despite the high production in the 2019/20 season – although positive, the ending stocks in June/18 (related to the 2017/18 crop) were not too large.

Indeed, the first bids from large-sized processors for the oranges from the 2019/20 crop started early again (in October/18). Bidding prices were around 22 BRL per 40.8-kilo box, harvested and delivered at processors (with the possibility of a bonus added to the orange selling price in the international market). In the 2018/29 crop, the first bids were around 20 BRL per box.

Although cautious at first, citrus growers accepted to trade in mid-November, fearing that bidding prices could drop in the following months. Early purchases have been a strategy of large-sized processors since 2016 (when they started closing deals in October, although the 2017/18 crop was one of the largest in all times).

PRODUCTION – Citrus growers believe that the 2019/20 crop will be positive, based on the weather, which favored plants development during blossoming and fruitlet settlement. The main blossoming, which occurred between August and September in most orchards, were large.

In mid-December, the wide temperature range led part of the fruitlets to drop in some regions, mainly in late orange orchards, which are more sensitive to the weather. However, citrus farmers believe these losses should not be significant to the next season results. Still, some growers do not expect a super crop and believe the volume harvested will only recover in 2019/20; others forecast a 40% increase compared to 2018/19.

TAHITI LIME – The tahiti lime volume forecast to be harvested during the crop peak in São Paulo State, in the first quarter of 2019, is also positive. According to Brazilian agents, production may be higher than that from 2018, since the rains in the second semester last year were more frequent and well distributed.

Despite the higher supply, the demand from processors may help to underpin the prices paid to growers, controlling availability in the in natura segment. The good exports performance should also help to underpin tahiti lime quotes, even during the crop peak – shipments may continue at a fast pace, due to the firm demand for the fruit, mainly from Europe, where consumption has been increasing.

Despite the positive ending stock scenario in July (referring to the 2017/18 crop), CitrusBR (Brazilian Association of Citrus Exporters) estimates a tight carry over for orange juice by June 2019 (2018/19 crop), at around 146.7 thousand tons.

This amount would be enough for two months of exportations, at the most, the second smallest in the CitrusBR series (which started in 1988/89) and 5.6 % lower than the minimum stablished by the Association in May, at 154.7 thousand tons of Frozen Concentrate Orange Juice (FCOJ) Equivalent. The critical volume is due to the smaller crop forecast for the citrus belt, at only 288.29 million boxes, 27.6 % down compared to the 2017/18 season.

New estimates from Citrus BR are based on an average industrial yield at 259 boxes of 40.8 kilos of oranges to produce one ton of FCOJ, higher than that last season, due to the dry period in the citrus belt – approximately 120 days. The lack of rains, according to CitrusBR, should significantly affect the initial volume forecast by Fundecitrus (Citrus Defense Fund), released in May (which still did not consider the scenario from May to July).

As for the 2017/18 crop, CitrusBR reported ending stocks at 343 thousand tons of FCOJ Equivalent on June 30 2018 at the processors from SP. That amount accounts for a significant recovery at 219.6 % compared to the volume at the end of 2016/17.

This positive result is linked to the larger harvest at the citrus belt (São Paulo and Triângulo Mineiro) in 2017/18, which totaled 398.35 million boxes of 40.8 kilos, 62.4 % more than in 2016/17, according to Fundecitrus. Compared to the average in the last 10 years, the output was 25% larger and the largest since 2011/12 (when it totaled 416 million boxes). The positive harvest in 2017/18 ensured comfortable inventories at processors, which, however, cannot be considered a surplus.

IN NATURA MARKET – Despite the weak demand, pear orange quotes remain at high levels in Brazil. As crushing of mid-season fruits steps up at processors from SP, and with the low supply of good quality oranges at orchards, availability is low in the spot. Thus, pear orange quotes averaged 27.85 BRL per 40.8-kilo box (on tree) in the first fortnight of August, 5.9% higher than in the same period of July.

On Wednesday, May 9, Fundecitrus (Citrus Defense Fund) released new estimates for the 2018/19 season, reducing production in the citrus belt (São Paulo State and Triângulo Mineiro) by 27.6 % compared to that in the previous crop. According to the report, harvesting in that region should total only 288.29 million orange boxes (40.8-kilo) in 18/19, 11 % down compared to the historical average of the sector.

Lower estimates from Fundecitrus have confirmed Cepea forecasts for a smaller output in 2018/19, due to the damages and losses observed in the main flowering event (from August to October last year), mainly for pear oranges. That scenario was linked to the dry weather and high temperatures during the settlement of the flowers that would become the oranges from the new season. Still, the first estimates indicated losses around 20 %, which could result in a higher production than that forecast.

Ending stocks for orange juice should be 22 % larger on June 30, 2018 (at 254.2 thousand tons), according to CitrusBR (Brazilian Association of Citrus Exporters), but that is still the fourth lowest volume in the last 20 years. Thus, the citrus belt would have to harvest, once again, high amounts, in order to ensure comfortable inventories at processors. The demand for orange juice has been firm, mainly from the United States, making the global supply and demand scenario even more difficult.

However, in the short-term, growers’ revenue may not increase significantly, since most of them have already closed anticipated trades with processors – trades have been closed since November last year. Thus, only a few growers still have fruits available for trading.

Currently, only one of the large-sized processors has been purchasing fruits in the spot market. Before the new estimates were released, quotes for all varieties were at 15 BRL per 40.8-kilo, harvested and delivered at the processor. However, prices may increase as the crop nears and more processors enter the market.

In the mid-term, on the other hand, forecasts for the next season (2019/20) are more positive, considering juice inventories may be empty by June 2019. Besides, with the smaller output in Florida, international demand for the commodity should continue firm during the season. There are concerns with the weather in the coming months as well, which may lower the volume forecast even more.

BRAZILIAN MARKET – Orange sales increased in the in natura market in early May. According to growers, the beginning of the month, when workers’ wages are paid, may have favored demand. However, the average price for that variety in the first fortnight of the month was 19 % lower than in the first fortnight of April. That scenario is linked to higher supply in São Paulo, as well as the slow crushing pace at processors, which led orange sales exclusively to the in natura market (these fruits would be allocated to processors for crushing). Between May 2 and 15, pear orange quotes averaged 25.81 BRL per 40.8-kilo box, on tree, 19 % down compared to that in the first fortnight of April (2 – 13).

Tahiti lime quotes, however, continued at high levels in that period, both in the domestic market and for exportation. According to growers, the fruits still on tree have a good quality, but have not reached the ideal size to be harvested yet – due to the lack of rains in São Paulo. Thus, tahiti lime quotes averaged 49.17 BRL per 27-kilo box, harvested, between May 2 and 15, a staggering 174.2 % up compared to the price average in the first fortnight of April.