Symrise announces the opening of a new office and lab facility for Food & Beverage in Beijing. To optimally serve the dynamic and rapidly growing consumer base in the area the company has invested EUR 1.5 million in the facility. The location will enhance the R&D capabilities, customer proximity, and market presence in the North of China.
The country’s diverse and evolving tastes, driven by a rising middle class and increasing urbanisation, lead to stronger demand for beverages, dairy, culinary, and snacks. By expanding its presence in China, particularly with the new facility in Beijing, Symrise can perfectly cater to local preferences and swiftly respond to market trends.
The 800 sqm facility in Beijing covers 250 sqm of office space and 400 sqm of advanced laboratory areas as well as 150 sqm administration rooms. The labs include specialised zones for beverage and dairy creation, application, savory creation as well as snacks and seasonings, each equipped with dedicated workstations and evaluation rooms. This state-of-the-art setup enables Symrise to develop products tailored to the market. It can also provide comprehensive and swift support to customers in the region, ensuring timely and efficient service.
A key market for food & beverage applications
“China represents a crucial market for Symrise due to its dynamic and rapidly growing consumer base in food & beverage applications. As a logical consequence we have expanded our Beijing site to significantly enhance our R&D capabilities,” said Walter Ribeiro, Global President, Food & Beverage at Symrise. “With a focus on customer proximity and technical excellence, this facility will serve as a vital hub for innovation and customer collaboration.
The facility also adds further resources to the company’s main lab in Shanghai, ensuring continuous support and resource optimization. It offers an improved working environment for the team, with modern amenities and a design that balances flexibility, efficiency, and local cultural elements.
“This strategic positioning enhances our ability to innovate and introduce new products tailored to Chinese consumers,” adds Robert Marti, VP North Asia, Food & Beverage at Symrise. “It also strengthens our engagements with local food and beverage producers. As we continue to develop and optimise our offerings, both our customers and consumers will benefit from a broader range of high-quality products, leading to increased satisfaction and loyalty in this key region.”
The Beijing office and lab underscore Symrise’s commitment to innovation, customer intimacy, and market expansion. With additional hires of technical experts, the company sees itself well-positioned to drive growth and deliver superior products across various categories. Symrise anticipates this facility will enhance its current offerings and open market opportunities, solidifying its presence in the Northern China and beyond.
Tate & Lyle renews partnership with the China Foundation for Rural Development for a third year to help improve children’s diets and nutrition education
Tate & Lyle PLC, a world leader in ingredient solutions for healthier and tastier food and beverages, is delighted to announce that it has renewed its partnership with the China Foundation for Rural Development for a third year. This partnership is part of Tate& Lyle’s ‘Healthy Eating, Happy Learning – Child Health Improvement Programme’ in China which works to improve children’s diets, support healthier lifestyles, and provide education on nutrition.
Through this partnership, children in schools in underdeveloped areas of China’s Yunnan and Guizhou provinces will receive a nutritious daily snack throughout the school year. In addition, schools in Guizhou province will benefit from the installation of modern kitchen equipment in their canteens, and Tate & Lyle will work with nutrition experts from the Chinese national authorities to provide nutrition education for students and teachers.
Since its establishment in September 2021, Tate& Lyle’s partnership with the China Foundation for Rural Development has provided:
- Over 400,000nutritional snacks to 3,000 children in 12 schools.
- Over 200 pieces of new kitchen equipment to 11 schools, benefiting 3,000 children.
- Working with experts from the Chinese Nutrition Society, produced customised nutrition and health education booklets and posters for children, and held nutrition classes for 500 students and 700 teachers.
This is one of many partnerships Tate & Lyle operates in communities across the world, including in the US, UK and Brazil, to support healthier living and help build thriving communities.
A pair of Quintus Technologies High Pressure Processing (HPP) systems will begin operation in Yiqing Food’s new beverage facility in Danjiangkou, Hubei province, China, later this year. Manufactured at Quintus’s state-of-the-art facility in Sweden, the presses are part of a customised turnkey solution provided by liquid packaging expert Jiangsu Newamstar Packaging Machinery Co., Ltd., with both presses scheduled for handover in Fourth Quarter 2023.
Focusing on integrated solutions for smart factories making liquid products, Newamstar selected the Quintus press model QIF 400L-6100, which features a very large vessel diameter of 18.5-inch (47 cm), for its high capacity, reliability, and lower per unit production cost. Each press will perform 10 cycles per hour to meet Yiqing Food’s target of 18,000 bottles of fresh juice per hour.
High Pressure Processing is the ground-breaking food safety technology that uses pressure instead of chemicals and heat to inactivate dangerous foodborne pathogens without compromising the quality or taste of the end product. HPP significantly extends refrigerated shelf life, producing preservative-free foods and beverages that retain their full nutritional benefits.
Yiqing Food, a state-owned food conglomerate, is one of the largest domestic soft drink producers in China. Its new modern and highly automated plant in Danjiangkou includes a premium juice production line that integrates high pressure processing of its upscale mandarin orange juice.
“The Chinese market is seeing a growing demand for HPP products, as processors seek to bolster food safety and brand protection while consumers grow increasingly concerned with healthy, nutritious eating,” says James He, Newamstar’s Chief Executive Officer. “Consumers appreciate the value of fresh, high-end fruit juices and teas that undergo the HPP process, such as Yiqing’s popular mandarin orange juice, which will be made in the Danjiangkou facility.”
The global leader in high pressure technology, Quintus has long been active in the Chinese market, supporting its customers with a well-established service operation across the APAC region. The company opened a China office in January 2018 to better serve its local customers.
The QIF 400L press family incorporates advanced features like frequency-controlled motor drives for energy conservation; “SmartPress” cloud-based press management software; fewer moving parts for reduced downtime; and easy access to all components requiring regular maintenance or inspection. The press’s wire-wound frame and cylinder design for safety and lighter weight reflect Quintus’s legacy as the HPP pioneer.
“These high-performing solutions illustrate how Quintus has maintained the lead in high pressure for almost 75 years,” Mr. He comments.“The QIF 400L presses are supported by a long legacy and meet Yiqing’s needs seamlessly. It is important for us to select the best quality equipment to meet our customers’ demanding specifications.”
“The new generation of Quintus HPP systems helps processors boost production efficiencies through high system availability and controlled service costs,” Jan Söderström, CEO and President of Quintus Technologies, points out. “We are pleased to embark on this new partnership with Newamstar and look forward to working with them as Yiquing Food continues on its growth trajectory,” he concludes.
World apple production for 2022/23 is forecast down 4.3 million metric tons (tons) to 78.4 million on weather‐induced losses in China. Exports are estimated down over 1.0 million tons to 5.5 million on significantly reduced shipments from China, Iran, and Moldova.
China production is expected to shrink nearly 5.0 million tons to 41.0 million on reduced output in the top‐producing provinces of Shaanxi and Shandong as high temperatures during bloom reduced fruit set. Low market returns are encouraging tree removals in several northern and western provinces, while an aging farmer population is also impacting management of orchards. Exports are estimated to drop over 20 percent to 770,000 tons as a result of lower supplies. Shipments to Russia have resumed after an August 2019 ban due to pests was lifted in February 2022, but these volumes are expected to only partially offset weaker sales to other markets. Imports are projected up 10,000 tons to 85,000 on greater shipments from New Zealand at the start of the marketing year (July‐June) …
Please download the complete report under: https://apps.fas.usda.gov/psdonline/circulars/fruit.pdf
As Chinese consumers are more focused on healthier beverages compared to their US counterparts, the country is witnessing a significant rise in consumer low-calorie soft drinks. Low-calorie soft drinks volumes increased at a triple-digit rate in China between 2019-2022, while the volumes grew by only 10 % in the US, finds GlobalData, a leading data and analytics company.
Global Data forecasts that in China, the volumes of low-calorie beverages will record a positive growth rate of 11.3 % in 2023, while in the US, it will be 2.2 %, albeit the US soft drinks market is much more mature and developed. The low-calorie market share in the soft drinks sector was 17 % in the US in 2022, while it was 2.4 % in China.
Dragos Dumitrachi, Consumer Analyst at GlobalData, comments: The carbonates category is the biggest winner regarding the growth of low-calorie beverages. Major brands such as Coca-Cola and Pepsi are continuing to invest in low-calorie variants and the trend is picking up globally. In China, low-calorie volumes are forecast to increase by 13.1 % in 2023, while the US will record a minimal 1.5 % rise in volume. “Since 2019, boosted by the COVID-19 pandemic, the health trend in the soft drinks sector has accelerated across the globe. In 2022, the world saw China and the US clash on multiple fronts. In the soft drinks consumer market, a similar opposing evolution scenario is taking place between the two countries.”
The carbonates category is the biggest winner regarding the growth of low-calorie beverages. Major brands such as Coca-Cola and Pepsi are continuing to invest in low-calorie variants and the trend is picking up globally. In China, low-calorie volumes are forecast to increase by 13.1 % in 2023, while the US will record a minimal 1.5 % rise in volume.
According to a recent GlobalData consumer survey*, when asked which feature consumers are actively looking for when making a purchase, a significantly higher proportion of Chinese consumers (49 %) said it is essential for the product to be good for physical fitness/health, while in the US, only 29 % find it essential.
Dumitrachi concludes: “This data shows that since the outbreak of the pandemic, whilst both markets show a high level of innovation towards low-calorie launches, Chinese consumers are more concerned about making informed health decisions within the beverage space in comparison to US consumers. Manufacturers in China and the US are set to increase the number of launches to capitalise on this trend throughout 2023.”
*GlobalData Q3 2022 Consumer Survey – China consisted of 532 respondents
Despite the brewing geopolitical, economic, and health crises, China’s hot drinks sales are set to increase, as consumers trade up to higher-quality products. The introduction of innovative and customised tea, coffee, and plant-based hot drinks is bolstering the market growth. As a result, the China’s hot drinks market is set to register a compound annual growth rate (CAGR) of 6.1 % from CNY 231.4 billion (USD 36.2 billion) in 2021 to CNY 311 billion (USD 48.6 billion) in 2026, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Chinese Hot Drinks – Market Assessment and Forecasts to 2026’, reveals that while tea remains the mainstay, the coffee culture is growing owing to the evolving lifestyles and preferences of urban consumers. The market growth will be primarily driven by the hot coffee category, which is set to register the fastest value CAGR of 6.5 % during 2021-2026. The category will be followed by other hot drinks and hot tea with a CAGR of 6.2 % and 6.0 %, respectively, over the forecast period.
Naveed Khan, Consumer Analyst at GlobalData, says: “The stringent COVID-19 lockdowns in Beijing, Shanghai and in the Hainan province have undermined the on-premise sales of hot drinks. However, consumers are treating themselves to higher quality tea and coffee at home. The growing demand for the new consumption experiences among the urban youth, and the introduction of new brew styles and flavours by international and homegrown companies are powering the growth of the hot coffee category in China.
“Hot tea, the largest category by value sales, continues to expand as new Chinese-style teas, such as yellow tea and scented tea, are gaining traction. The health concerns due to the pandemic are spurring the demand for herbal drinks that are perceived to improve immunity and overall health and wellness.”
According to the report, ‘convenience stores’ was the leading distribution channel in the Chinese hot drinks market in 2021, followed by hypermarkets & supermarkets, and e-retailers. Nestlé, China Tea, and Zhejiang Xiangpiaopiao were the top three companies in the fragmented Chinese hot drinks sector in value terms in 2021, and Nescafe and U.Loveit were the leading brands.
The per capita expenditure (PCE) on hot drinks in China increased from USD 6.5 in 2016 to USD 12.7 in 2021, surpassing the regional average at USD 11.1, but lagging the global level at USD 17.0. China’s PCE on hot drinks will surge to USD 17 in 2026.
Khan concludes: “Multinational and local companies are launching new products with innovative marketing strategies to develop new consumption occasions and expand their base. They are targeting young consumers, who are eager to experiment with innovative brew styles and flavours. However, the strict pandemic control measures, economic slowdown, and political standoff over Taiwan may slowdown the hot drinks sector’s growth momentum in the intermediate term.”
Tate & Lyle PLC, a leading global provider of food and beverage ingredients and solutions, announces that it has signed an agreement to acquire Quantum Hi-Tech (Guangdong) Biological Co., Ltd (Quantum), a leading prebiotic dietary fibre business in China from ChemPartner Pharmatech Co., Ltd (ChemPartner) for a total consideration of USD 237 million.
Quantum engages in the research, development, production and sale of fructo-oligosaccharides (FOS) and galacto-oligosaccharides (GOS). Together, FOS (from sucrose) and GOS (from milk sugar/lactose) represent around 25 % of the global dietary fibres market which is forecast to grow at around 6 % per annum. In China, which currently represents the majority of Quantum’s sales, the FOS and GOS market is forecast to grow at around 10 % per annum.
The acquisition of Quantum significantly strengthens Tate & Lyle’s position as a leading global player in dietary fibres, bringing a high-quality portfolio of speciality fibres, strong R&D capabilities and proprietary manufacturing processes and technologies. The acquisition expands Tate & Lyle’s ability to provide added-fibre solutions for its customers across a range of categories including dairy, beverages, bakery and nutrition (including infant nutrition), and to meet growing consumer interest in gut health. It also significantly expands Tate & Lyle’s presence in China and Asia, and extends its capabilities to create solutions across food and drink utilising its leading speciality ingredient portfolio.
The transaction is subject to approval by the shareholders of ChemPartner, a public company listed in China, of which Quantum is a wholly-owned subsidiary. At completion, consideration will be paid in cash for 100 % of the equity interests in Quantum. For the 11 months ended 30 November 2021, Quantum generated revenue of USD 46 million and EBITDA of USD 14 million. The acquisition is expected to be accretive to revenue growth and EBITDA margin for Tate & Lyle in the first year of ownership.
Quantum produces its range of FOS and GOS fibres at its production site in Guangdong Province, Southern China. The management team of Quantum will join Tate & Lyle at completion. Closing of the transaction is expected to occur in the second quarter of calendar year 2022.
ADM unveiled the ADM Food Technology (Pinghu) Co., Ltd., a state-of-the-art, fully automated flavour production facility situated in Pinghu, Zhejiang Province, China.
“Since our acquisition of WILD Flavours in 2014, we’ve invested in organic growth, bolt on and platform M&A, and new innovations and technologies to build ADM into a premier global human and animal nutrition company,” said Chairman and CEO Juan Luciano. “Our strategic actions have benefited our customers and our shareholders alike: we’re achieving key financial goals and delivering record results in no small part because we’ve become the partner of choice for customers around the globe as they meet growing and evolving demand for healthy, delicious foods and beverages from nature. Our new, leading edge flavour facility in Pinghu will serve as ADM’s flavour supply hub in APAC, allowing us to leverage our expertise and leading-edge technologies and build out the ADM pantry to further meet customer needs and advance our growth strategy.”
The 27,000+ square meter flavour production facility is strategically located within an hour of Shanghai, bringing geographic advantages for ADM’s customers while providing the company with direct access to top talent. The complex features:
- The latest in automated flavour lines with advanced dosing technology, along with technologies to ensure seamless and efficient management of complex processes;
- Labs dedicated to flavour production, taste design and product development;
- ISO 9001 and FSSC 22000 V5.1 certifications; and
- Capability to meet demand for specific dietary needs, including Halal and Kosher certified products.
- The Pinghu facility is the latest of ADM’s strategic growth investments in its global Nutrition business. Other recent expansions include:
- The planned acquisition of a 75 % ownership stake in PetDine, Pedigree Ovens, The Pound Bakery and NutraDine, premier providers of private label pet treats and supplements;
- The planned acquisition of Sojaprotein, a leading European provider of non-GMO human nutrition protein solutions; and
- The acquisition of Golden Farm, a state-of-the-art animal nutrition premix provider in Vietnam.
ADM has more than 5,000 employees throughout the wider Asia-Pacific region, across more than 50 operations and business sites, including a recently opened state-of-the-art plant-based innovation lab in Singapore; technical innovation centers in China, Singapore, Australia, Japan and Vietnam; and production and processing facilities, grain origination, grain destination marketing warehouses and trading operations across the region. ADM also owns a strategic stake in Singapore-based Wilmar International Limited, a leading agribusiness and packaged food and oil company in the region.
SIG’s second state-of-the-art production plant for aseptic carton packaging in China is now up and running. Despite challenges posed by the pandemic, the large-scale project has been successfully implemented, once again demonstrating SIG’s ongoing commitment to engineering excellence and sustainability leadership.
The new plant is located close to SIG’s existing production facility at the Suzhou Industrial Park (SIP), which allows for shared resources in both production and operations. The new facility is also close to SIG’s Asia Pacific Tech Center, with industry-leading innovation capabilities that bring a flow of new concepts and solutions to SIG customers. Having the Tech Centre nearby ensures SIG can keep pace with, and anticipate, new trends.
Samuel Sigrist, CEO of SIG: “The Asia Pacific region continues to be one of the major growth engines for aseptic carton packaging. The expansion of our production network will enable us to further strengthen our position in the growing Chinese market. It also means we can respond more quickly to the needs of our customers to provide holistic solutions to the food and beverage industry.”
By building a second production plant in China, SIG is committed to serving the Chinese market by providing high-quality products and services to customers across the Asia Pacific region. The entire production process in the new plant is managed intelligently, which significantly improves operational and production efficiency. The smart manufacturing system covers extrusion, printing, creasing, cutting and sealing.
Samuel Sigrist continues: “SIG has built up a strong customer base across the Asia Pacific region, providing outstanding innovation capability and end-to-end solutions for differentiated products, smarter factories and connected packs. Our close partnership with the two largest Chinese dairies, and other food and beverage companies, will continue to grow and develop.”
By 2024, the new plant will cover an area of 120,000 square metres and is expected to have an annual production capacity of 8 billion carton packs. It has been designed and built to have the lowest possible carbon emissions, with an artistic combination of classical Chinese garden and modern elements. Photovoltaic panels on the roofs can provide 1.5 million kWh of solar energy and collected rainwater is also reused after treatment to save around 28,000 tonnes of tap water per annum. In addition to energy-saving lighting devices, special lighting systems are installed to significantly reduce electricity consumption.
The new plant’s best-in-class environmental, safety and operation performance has already been recognised with a prestigious international industry certification: LEED (Leadership in Energy and Environmental Design) gold certification for building design and construction. LEED is a green building certification programme created by the U.S. Green Building Council which is used worldwide. SIG’s new packaging plant was the first plant in China’s aseptic packaging industry to be built in strict accordance with the LEED gold certification standard.
Please watch how SIG is expanding its presence in Asia Pacific.
Symrise experienced a premiere in a number of ways. The company opened its biggest individual investment and invested € 50 million in the construction of the new production site for flavorings and fragrances in Nantong. In addition, the Executive Board, senior staff, plant workers and guests opened the facility virtually – in a video conference – for the first time. Chief Executive Officer Dr. Heinz-Jürgen Bertram and Chief Financial Officer Olaf Klinger conveyed their greetings via live video from Holzminden.
The decision to build at this location, in the industrial park on the green field, was made back in 2016. The site convinced the company with its versatile potential. Modern infrastructure, an attractive business environment and a number of sustainability aspects were the deciding factors in the plans for the site near Shanghai. Symrise celebrated its topping out ceremony two years ago. Already then, you could tell by its dimensions that the Group was building a state-of-the-art production facility geared toward the future and growth.
The expansion of the production of fragrances and flavorings in the rapidly expanding Chinese market makes sense, because the world’s second-largest economy has great potential to soon become number one. This development correlates with the history of Symrise in the country. In the past ten years, the company has grown around eight percent per year on average. With a six-percent share of total sales, China follows the USA and Germany as the third-strongest revenue-generating market for Symrise.
In this environment, Symrise is sending a clear signal for future growth in the region with its modern plant in Nantong – especially in light of the current situation. The company wants to build on its success with its proven strategy and dedicated team. The subsidiary Tesium, specialist in technology, safety and the environment, assisted the local Symrise experts in planning and implementation.
“The celebratory and partially virtual opening of our plant in Nantong demonstrates our trust in the Chinese market, and we are consciously committing ourselves to the world’s strongest growth region. Of course, we are also keeping a close eye on how the COVID-19 situation is progressing here,” comments CEO Dr. Heinz-Jürgen Bertram on the strategic approach. “From these observations, we enacted measures and were successful in keeping our entire business running and opening our plant as planned. Ultimately, we want to reliably serve our customers in China and grow with them. A big thank you therefore goes to the flexibility and extreme dedication of our employees.”
KHS plans to build a new plant and service center in Kunshan, China. VIP guests from the local government and KHS Group attended the groundbreaking ceremony. The Kunshan plant project is a clear statement of the company’s commitment to China and its Chinese customers.
As one of the leading global manufacturers of filling and packaging systems, KHS has been serving the Chinese beverage industry since 1904. In 2008, KHS entered the China market with its first representative office in Beijing. Following the opening of its headquarters in Shanghai in 2014, KHS now intends to build a new plant and service center in Kunshan, enabling the company to respond more quickly to the local market.
Kunshan’s deputy city mayor, party secretary and head of Zhangpu attended the groundbreaking ceremony of the KHS Kunshan plant on October 17, 2019. The executive management board of KHS GmbH and CFO Mr. Martin Resch, Managing Director Mr. Thomas Karell from KHS Corpoplast GmbH as well as William Wu, KHS China CEO, were present and gave speeches during this milestone event.
Strategic partnership for a lasting win-win situation
With a total investment of around €10m, the new around 10.000 m² large factory will make engineering, production, logistics and service more efficient. KHS will be an important partner for the city of Kunshan and offer greatly enhanced support in the further development of the regional industry. Furthermore, the broad-scale plant will also help KHS expand its business within Asia as a whole. A continuous win-win situation can be expected for both sides involved.
“Kunshan is an attractive city for the beverage industry with skilled workers, well-developed infrastructure and widespread logistics networks for this kind of project,” said Mr. Martin Resch with great thanks to the deputy city mayor of Kunshan, Li Hui. “We are now able to produce a larger product portfolio including single blow molders, fillers, and labelers as well as in various block versions, increasing the expertise in handling entire line projects,” claimed Mr. Resch. “With our product range, KHS maintains its position as one of the global market leaders and a pioneer of filling and packaging technology. This also says a great deal about the innovative strength of the team in China.”
Innovative German technology, efficient local manufacturing
Mr. Thomas Karell with the representative of the management board of KHS China expressed great delight at launching the new factory at the ceremony: “All of the KHS Group’s knowledge and capabilities will be on show at our new location in Kunshan. Thanks to the use of innovative technologies, the production system being established will set new standards for productivity and sustainability.”
“Our goal is to improve the production efficiency of our customers throughout the entire life cycle of their engineering, providing state-of-the-art technology and services,” stated Mr. Karell. “The new plant in Kunshan establishes an important local basis to meet this goal, focused on our Chinese customers.”
Sustainable economic benefits, greater social influence
Based on more than 150 years of experience and a constant focus on core expertise, KHS is able to help customers achieve long-term social and ecological responsibility goals. Willian Wu is full of expectations for the future of the Kunshan plant and KHS China: “We will combine economic success with socially and ecologically responsible behavior. Along with top technical performance, maximum sustainability is particularly close to our hearts.” He also indicated that KHS China is respected not only for its highly efficient products and systems, but also for its round-the-clock, local and on-site service which extends far beyond the commissioning of systems.
“KHS China now assumes technological and environmental leadership with solid and innovative German technology for optimum products and solutions,” emphasized Mr. William Wu. Looking to the future, KHS China will constantly strive to realize superior quality and ensure sustainable development in the Chinese market.
Louis Dreyfus Company (LDC) and Luckin Coffee (Luckin) have signed an agreement to establish a joint venture (JV) to develop a co-branded Luckin Juice business in China. The signing ceremony in Singapore was attended by Zhengyao Lu, Chairman of Luckin Coffee, Margarita Louis-Dreyfus, Chairperson of Louis Dreyfus Holding B.V., Ian McIntosh, CEO of LDC, and other members of senior management from the two companies.
The business will focus on co-branded Not From Concentrate (NFC) orange, lemon and apple juices, for which LDC masters the full value chain from its farms to customers at destination, and plans to build its own bottling plant in the future. It also plans to bottle and brand other fruit and vegetable juices. Luckin Coffee stores will play an important role as sales outlets, while the business also plans to market its juices via other channels.
“China is the fastest-growing NFC market globally and, together, Luckin and LDC see a significant opportunity to offer high quality, sustainably-developed NFC juices to the Chinese consumer. We are pleased to be partnering with one of the world’s largest citrus fruit growers and juice suppliers to launch a co-branded Luckin Juice and continue our ambitious growth plans,” said Jinyi Guo, Luckin Coffee Senior Vice President and Co-founder. “There are strong synergies between our leading-edge marketing and consumer approach, and LDC’s great juice supply capacity, global reach and strong value chain expertise. Through the joint venture with LDC, Luckin is extending upstream toward production, giving greater product quality control along the whole process and the ability to offer better products, a better experience and services to consumers, to further meet their diverse product needs. In the future, Luckin Coffee will further reduce costs to meet the needs of broader consumers and increase their consumption frequency.”
Accelerating our strategic alliance with Luckin Coffee through this new JV is very positive,” said James Zhou, LDC Global Vice President and regional head for LDC North Asia. “This fits perfectly with our corporate strategy to move further downstream toward the end consumer, in particular through partnerships, and with our growth ambitions in China. LDC has been in the juice business for over 30 years and this is an excellent fit with our Juice Platform’s strategy. Our areas of expertise are totally complementary, with LDC’s know-how in managing a sustainable juice value chain and Luckin’s knowledge of the Chinese consumer, marketing and digital platform know-how, and established consumer base. We have all the ingredients for a true win-win situation.”
Founded in 1851, LDC is one of the world’s leading merchants and processors of agricultural goods. It is also one of the world’s largest juice production and supply companies, committed to producing high-quality fruit juice products, with sustainably-grown fruit from Brazil and other global sources, with built in traceability. LDC has been active for more than 40 years in China, where it operates today across the value chain in a wide range of commodities, including grains, oilseeds, cotton, sugar, rice and juice, in almost every province in the country. Luckin Coffee is committed to providing customers with high-quality, cost-effective and convenient products, through in-depth cooperation with top suppliers in various fields.
SIG set for growth with new state-of-the-art production plant in China
As the Asia-Pacific region continues to be one of the major growth engines for aseptic carton packaging, SIG has announced investment in the region with the construction of a second production plant in Suzhou, China.
To meet current and future customer demand, the new 120,000 square meter plant is expected to be operational in early 2021 and will be situated at the Suzhou Industrial Park (SIP), close to the company’s existing production facility and Tech Centre. With a total investment of EUR 180 million, the new plant will ensure exceptional delivery on outstanding opportunities in the Asia-Pacific region, where most countries continue to grow significantly. The plant is expected to achieve world-class environmental, safety and operational performance right from the start.
The new production facility is testament to SIG’s strong partnership with SIP and the local government, as well as its unparalleled commitment to deliver world-class packaging, service and the most modern solutions to the rapidly growing Asian markets and to China in particular. SIG’s recently opened cutting-edge Tech Centre in Suzhou supports customer collaboration in the development and implementation of innovative product concepts and market-ready packaging solutions.
Across Asia, millions of people are only now starting to consume packaged food and beverages. The rise of new consumers, driven by increasing income, changing lifestyles and new consumption habits, represents a huge opportunity for aseptic carton packaging with its long shelf life without the need of a cooling chain.
At the same time, young and growing populations are adopting modern lifestyles in urban areas, with more on-the-go consumption, an increasing awareness of health and wellness, and a growing demand for high-quality nutritional food and beverage products.
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.
Shou Quan Zhai (SQZ), founded in 1760 and one of the oldest food companies in China, is expanding into the beverage market with a new line of ready-to-drink products. The ginger tea and plum juice drinks are the first non-dairy beverages in China available in lightweight flexible packages from Ecolean.
The drinks will be available in the 200 ml Ecolean® Air Aseptic packages on February 20, on SQZ’s online store, e-commerce channels and at retail locations across China. The products are part of a larger traditional Chinese beverage line that will include more products in the future. SQZ is developing, manufacturing and selling herbal beverages to create a healthy lifestyle and is a bestseller of ginger tea products in China.
According to SQZ, the company is engaged in environmental issues and has a long-term view of its work in the sustainability field. The company is committed to keep refining its technology to provide the best experience for the consumers as well as for the environment. SQZ chose Ecolean for its unique package characteristics and low impact on the environment. Ecolean packages are lightweight, almost half in weight compared to many traditional packaging formats, and contain up to 35 % chalk. Using fewer raw materials from the start saves energy during production, transport and waste handling. The packages can also be completely flattened, minimizing food waste and using less space in the waste bin.
In addition, the packages can be used in the microwave — a main benefit to SQZ since ginger tea is typically served warm. The packages are also easy to open and pour and stand upright.
“With a 259-year history, SQZ proudly respects the environment for generations now and in the future,” said Lin Lei, Director, Public Relations and Government Affairs for SQZ. “Ecolean’s advanced packaging technology from Sweden has a minimum impact on the environment, is easy to recognize on the store shelf and is convenient for consumers to use.”
Just as Ecolean is committed to producing lighter, flexible packaging, its filling equipment is also light and compact using minimal resources. Ready-to-fill packages are sterilized using electron beam treatment, hermetically sealed and distributed on reels from Ecolean plants, bringing a considerable part of the complex sterilization process from the liquid food producer back to Ecolean. SQZ chose the Ecolean aseptic filling machine EL4+ for its operations. As for all Ecolean filling machines, it follows the philosophy of keeping it simple, providing a reliable, economical and lean operation. It is easily operated and maintained by SQZ’s personnel.
“The new ready-to-drink beverages from SQZ represent the first non-dairy beverages in Ecolean packages in the Chinese market,” said Johnny Sajland, Regional Director, Asia North and Oceania, Ecolean. “We are excited to work with SQZ to bring new innovation and products to the more than 1.4 billion population in China, both now and in the future.”
SIG has opened a new Tech Centre, close to its packaging plant in Suzhou in China, which will bring a new dimension in supporting customers with the development and implementation of new product concepts and market-ready packaging solutions.
In the 17,500 square meter building, a team of SIG experts will develop and manufacture filling technology, conduct filling tests for customers and offer training. By focusing on product innovation and differentiation, the new Tech Centre fits in perfectly with SIG’s Value Proposition, which aims to create added value for customers and consumers alike.
SIG’s Tech Centre accommodates a state-of-the-art test and training centre, with the latest filling machines, upstream food processing equipment and UHT systems, which can process products with a wide range of viscosities and pieces. SIG will work closely with customers and offer professional support on aseptic filling tests and product concepts. The Training Centre is the second largest worldwide for SIG and is suited to both internal and external technical training on aseptic filling machines and downstream lines. The Tech Centre also hosts SIG’s Asian filler and applicator assembly operation and two Global Technology departments: Research & Development and Engineering & Application.
SIG’s Tech Centre has the highest standard as a green building and SIG is only the ninth industrial company with onsite manufacturing in China to earn the LEED Platinum standard with a total of 83 points – the second highest score in the entire country.
One of the major trends in Asia’s beverage and liquid food market is: “quality, not quantity.” As incomes rise, people prefer to consume better products instead of more products. At the same time, demand for production systems and machines remains high. As the leading trade fair for the industry, CHINA BREW CHINA BEVERAGE (CBB) provided a far- reaching overview of the market with the exhibitors’ presentations and its comprehensive supporting program. The CBB showed what is driving the industry today and will drive it tomorrow. In the process, it underscored its position in Asia.
Dr. Reinhard Pfeiffer, Deputy CEO of Messe München, is extremely satisfied with the results of CBB: “We are following up on the successes of the last event: We had a total of 869 exhibitors, an increase of nine percent. The trade fair used eight halls, including two that were used by 256 international exhibitors. That represents a growth rate of six percent. CBB is thus enhancing its importance as the leading trade fair for the beverage and liquid food industry in the Asia-Pacific region.” The chief executives of international market leaders praised the large number of visitors from such Asian countries as Indonesia, Myanmar, the Philippines, Thailand and Vietnam who visited their stands.
Hong Shen, General Manager at Zhongqing Heli International Exhibition Co., Ltd., organizer of CBB, highlights the event’s added value: “CBB is the only trade fair in Asia that showcases the entire process chain for all areas of the beverage and liquid food industry and presents new generations of machines. This was also acknowledged by the approximately 56,000 participants in the eight fully booked halls.”
Richard Clemens, Managing Director of the VDMA Food Processing and Packaging Machinery Association, believes CBB is crucial for international companies to successfully gain a foothold in the Chinese market. “Closeness to customers is vital for developing and implementing tailored solutions, as well as for providing ideal after-sales service. CHINA BREW CHINA BEVERAGE is the most important trade fair – not only in China, but for Southeast Asia as a whole,” is Clemens’ assessment.
CBB Forum with the key issues of sustainability and digitalization
The beverage industry is undergoing a shake-up in the wake of digitalization. The CBB Forum’s program included a presentation by Professor Sylvain Charlebois from Dalhousie University, Halifax, on how blockchain technologies “can help many companies protect their brand equity.” Use of the technology in the beverage industry is still at the beginning, but he recommends “companies should see that as an opportunity and address the issue early on.” In the view of the VDMA, Chinese consumers in particular are very open to digital solutions.
That also harbors potential for companies from the beverage industry. That is because “customized premium products that can be configured and ordered online have far greater growth potential than in Europe,” says Clemens.
The industry also discussed the issue of sustainability intensively. For example, Professor William Chen, from the School of Chemical and Biomedical Engineering and Director of the NTU Food Science & Technology Program at Nanyang Technological University, believes that sustainable beer brewing offers advantages for companies and consumers alike: “Sustainable brewing processes and upcycling of waste and by-products, such as to make biodegradable packaging, deliver enormous benefit for the industry. At the end of the day, that might also be reflected in lower product prices for consumers,” states the scientist.
Visitors and exhibitors were inspired by the CBB Forum and the wealth of information. CBB plays a major role in helping information be shared within the industry and enables an extensive overview of the beverage and liquid food market.
Successful premiere for the Round Table Talks
Apart from sustainability and digitalization, the future of the PET segment was also a hotly debated topic. The newly introduced Round Table Talks gave visitors the chance to learn more about this and other issues in the beer and beverage market. What are key concerns in the industry now and in the future? Industry experts from companies such as AB InBev, Snow, Suntyech Process Engineering, Tsingtao and Voss (Hubei) Water & Beverage provided insights. The other items on the agenda, such as the International Beer Smart Factory & Brewing Technology Forum or the Exhibitor Technology Seminar, were also very popular among visitors.
CHINA BREW CHINA BEVERAGE (CBB) draws on the success of 2016: Just under three weeks before the beginning of the exhibition, the halls of the Shanghai New International Exhibition Centre (SNIEC) are almost fully booked. The exhibition space of the international companies is once again increasing. This underlines the importance of the event as an international trade fair for the beverage and liquid food industry. The extensive supporting program, including the CBB Forum, Round Table Talks and the International Beer Smart Factory & Brewing Technology Forum, will additionally shed light on what is moving the industry today and tomorrow.
CBB, which takes place from October 23 to 26, is the most important meeting point for the beverage and liquid food industry in Asia. Thanks to its wealth of topics and offerings, it provides visitors comprehensive insights into trends and developments. “As a leading technology platform, CBB promotes the exchange of information within the industry. The presentations of the exhibitors on the one hand and our supporting program on the other provide for a complete and forward-looking overview of the beverage and liquid food market”, said Petra Westphal, Project Group Leader Messe München.
Richard Clemens, Managing Director of the VDMA Food Processing and Packaging Machinery Association, also underlines the importance of the event: “The Chinese beverage market is continuing to grow. Over the next five years, a further annual growth of nine percent is expected. Therefore, we expect CBB to provide considerable impetus for the industry.”
More than 860 exhibitors have already registered. Among them are national and international industry leaders such as Alfa Laval, GEA, Husky, KHS, Krones, SACMI, Sidel and Siemens located in the international exhibition halls. And GDXL, HGM, Lehui, Newamstar, Tech-Long and Zhongya in the national exhibition halls.
The CBB supporting program: Key issues of sustainability and digitization
In addition to industry solutions from exhibitors, attendees can look forward to the unique CBB supporting program. This year, the CBB Forum will focus on the topics of sustainability and digitization. First-class speakers will provide insights and outlooks, including Dr. Ning Ding, General Manager of the Food & Beverage Division at Siemens. In his presentation, the expert will show how digital twins support the digital transformation of the food and beverage production. Another presentation on digitization comes from Sylvain Charlebois, Dean of the Faculty of Management at Dalhousie University. Charlebois will address crypto currencies and blockchain technologies that offer huge potential for the agricultural and food sector. He will raise the question: “To address lurking food safety and fraud concerns, can blockchain technologies be the answer? ”
Prof. William Chen, Director of the Food Science and Technology Programme at Nanyang Technological University Singapore is going to deal with sustainability. The title of his presentation is: “Fermentation for Upcycling of Brewer’s Spent Grains: Potential for Zero Waste Food Processing and Circular Economy.” Further presentations on digitization and sustainability will be given by Richard Clemens, Managing Director of the VDMA Food Processing and Packaging Machinery Association, and Winston Boyd, Technical Director at Gold Coast Ingredients Inc.
Another highlight of the supporting program are the newly introduced Round Table Talks. Here, industry experts will discuss important topics relating to PET and the developments on the Chinese beer and beverage market today and in the future. Representatives of companies like AB InBev, Snow, Suntyech Process Engineering, Tsingtao and Voss (Hubei) Water & Beverage will talk about dairy trends, innovative product concepts as well as opportunities and challenges regarding packaging and beer trends and many other topics.
For further information about the exhibition, please visit www.cbb.drinktec.com.
The international organic sector will meet for the 12th edition of BIOFACH CHINA from 24 to 26 May 2018 at the Shanghai World EXPO Exhibition & Convention Center (SWEECC). About 480 exhibitors and about 18,000 visitors are expected from all around the world.
BIOFACH CHINA will have an extremely international and varied flavour this year, with separate pavilions from China, Taiwan, Denmark and New Zealand. Following a successful launch, the exhibition will once again introduce a “country of the year” in 2018, the focus this year being on New Zealand.
The event highlights will also include the online “China Organic Product Directory”, the special “Innovative Product Launch Zone” show containing the most interesting organic innovations of the year, and the “Organic Tea Competition”, offering an opportunity to vote and to network.
For more information please visit www.biofachchina.com.
Promotional campaign will focus on boosting Chinese consumption of Chilean blueberries, cherries and other products during 2017-18 export season
The Chilean Fruit Exporters Association (ASOEX) has launched its 2017-18 export season for cherries, blueberries and other products in China with a workshop for importers at Shanghai’s Huizhan Fruit Market. At the event, the Chilean organisation presented the new season for fresh fruit exports, focusing special attention on table grapes, cherries, kiwifruit, avocados, plums and blueberries; exports that will be supported by promotions to encourage not only greater consumption, but also the positioning of Chile as the number one supplier of off-season fruits to China.
ASOEX’s Marketing Director for Asia and Europe, Charif Christian Carvajal, said: “We met with importers from the Huizhan Fruit Market in Shanghai, China with the aim of analysing last season’s Chilean fruit exports, and giving advance forecasts for the current campaign, focusing in particular on promotional work that we will carry out to encourage consumption of Chilean blueberries and cherries in China.”
As part of the 2017-18 season promotional campaign in China, ASOEX will hold meetings with fruit importers, buyers and distributors at the Guangzhou, Beijing, Shenyang and Chengdu wholesale markets, in addition to meeting with Shanghai-based importers.
Carvajal said that one of the aims of Chilean fruit sector was to gain access for Chilean fresh pears and citrus to China, as well as increasing consumption of cherries, blueberries, avocados and nectarines. He added that every one of the actions had been made possible thanks to the combined efforts of the Chilean fruit export sector and ProChile through the Promotional Fund for Agriculture Exports of Chile’s Ministry for Agriculture.
Chile is the leading exporter of fresh fruits to the Southern Hemisphere, explained Carvajal, having shipped more than 2.6 million tonnes of fresh fruits to different destinations during the 2016-17 season. Of this total, China accounted for 48.3 % of all Chilean fruit exports to Asia. In terms of products, table grapes were the most exported product to China from Chile during the season, accounting for 42 % of total exports to the country, followed by cherries at 23.5 %, plums at 11.7 %, kiwifruit at 7.6 %, avocados at 5.4 %, red apples at 5 % and blueberries at 3.2 %.
Planned promotions
The Huizhan event also included the participation of Steve Lee, Business Director of Publicis and Patti Sun, CEO of Publicis-partner BetterWay China who had the task of detailing the planned promotional actions for the campaign, including dates and locations. BetterWay China’s Patti Sun said that as well as including a continuing budget of US$5 million for its implementation, the campaign would increase the amount of cities involved.
“During the last campaign, we included 37 cities that corresponded to Tiers 1, 2 and 3, and this year we want to reach 58, which will also include Tier 4 and 5 cities and the potential for consumption they represent,” she said. “As well as this, to better coordinate and control the campaign, we will be hiring an expert in China.”
Publicis’ Steven Lee added that some of aspects of the campaign that would be enhanced this season by actions focused on E-commerce and wholesale markets.
“Although the results of the last campaign were very positive, there are aspects we would like to improve, particularly after gathering feedback from the Chilean fruit sector,” he explained. “For this reason, we are expanding work at an E-commerce level by continuing what we are already doing with T-mall and JD.com, but also increasing our participation on other platforms at a regional level. We will also be increasing our promotional actions for wholesale markets.”
Blueberries
Looking at the blueberry promotional campaign, Carvajal said this would begin with online promotional actions in collaboration with Miss Fresh App and KOL to generate messages on social media, as well as launching advertising on vending machines. The campaign will also include appearances in Chinese media outlets, such as CCTV, Sina, Ifeng, DTV, and others.
“In terms of point-of-sale marketing, we will be carrying out activities in 10 cities, three retail chains, three wholesale markets, 22 hypermarkets and 200 Pagoda specialist fruit shops; actions which we be key to boosting consumption of Chilean blueberries,” added Carvajal. “The activities will kick off two weeks before Chinese New Year, with the aim of directly reaching 308 people per store.”
