EXPO VIEW
Quarterly Newsletter
September 2014 ISSUE No14
EXPO VIEW
TOP STORY
Sial 2014 is just around the corner, Come and see what we propose!
In this Issue:
Visit us at Sial 2014
1
Price levels are settling for the new crop
2
BUSINESS ISSUES:
3
Buying power use and abuse, how does it
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e firmly believe that good partnerships require top products. The concept of the product for us extends beyond the physical boundaries to all that surround it, supply, service, and support. The selection you will see at our stand represents the very essence of this promised quality. Our products go beyond the obvious quality
promise that relies on the raw materials and the systems that follow the production process. They incorporate years of knowledge that brought change and innovation in their category. This difference is what we invite you to experience with us. Come to see us at
Hall 5a stand S 129
4
Salt Stop transporting too much brine with your olives
5
Travel catering, little luxuries for the rising Economy class
6
Olive oil supply—know your producers
7
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Parthenonos 1,N. Erythraia Athens146 71Greece info@expoaid.gr / Tel: +30 210 6250365 / Fax: +30 210 6209905
EXPO VIEW
BUSINESS ISSUES
Price levels settled to the end of 2014 In the current “early crop” period we experience an average price levels for the category of Extra Virgin Olive oil, starting at 2.53€/kg in Turkey, 2.66€/kg in Spain, 2.89€/kg in Tunisia, 2.95€/kg in Italy and 3.07€/kg in Greece. This level is expected to remain stable until the end of 2014. From all surrounding indications we expect the price level for the year 2015 to move in the range of 2.5€/kg to 3€/kg. This is a consequence of the current crop levels of the key producing countries. The Spanish paradox... In June 2014 the prices in Spain started rising without any apparent reason. At the end of May 2014 the reserves of olive oil in Spain were at a level of 1.016.000 tons with a relatively stable outflow of 140000 tons/ month. This meant that even with a very low new crop of 600000 tons, something many supported at that time, the year would close with high deposits capable to cover any reasonable increase in demand.
Table olives In the chart on the right you can see the volumes expected for the new crop of table olives. In Greece the predictions show the same level of prices for the Kalamata olives, and a decrease of about 20% for the Green olives of Chalkidiki. The rest olive types are expected to preserve last years’ price levels. *Rest olives: Konservolia, Throumba of Thasos, Megara, Cracked, Atlas, etc.
US Dollar strength is rising Broad US dollar (USD) strength continues to set the tone in global foreign exchange markets. There is an overall positive tone into the USD vis-à-vis all other global currencies, with the distinct exception of the Chinese Yuan (CNY). Escalating military tensions in the Middle East and Eastern Europe may generate, at times, bouts of high volatility in core currencies. Meanwhile, ongoing commodity price adjustments reflecting world supply and demand conditions are also shaping directional shifts in selected currencies. We expect a short term reaction but long term trend for the USD appears to be bullish. Page 2
Parthenonos 1,N. Erythraia Athens146 71Greece info@expoaid.gr / Tel: +30 210 6250365 / Fax: +30 210 6209905
EXPO VIEW
Retail issues
Private labels, buying power and consumer choice Consumers are the final link in food supply chains which are increasingly international. The processes and dynamics operating along such chains affect consumers in both positive and negative ways. Over at least 30 years, supermarkets in developed economies round the world have acquired an increasing share of grocery markets, and in doing so have increased their influence over suppliers what food is grown and how it is processed and packaged – with impacts reaching deep into the lives and livelihoods of farmers and workers worldwide.
little margin, unable to promote their products efficiently and in some cases are forced to decrease the quality of the product itself in order to sustain the increased demands of the trade. At the same time private label brands displace branded products on supermarket shelves. Assuming a situation where buying power is being abused, the pressure and the limited shelf space makes the smaller suppliers’ disappear in thin air. An example of what happens is summarized in the two graphs below based on the Australian market with high retail concentration.
Abuse of buying power brings increased demands in listing fees, rebates, discounts and fees aimed to increase the retail margin disguised under many terms and names. Suppliers struggle with
The domino effect The suppliers are forced bear more costs from retailers, have lower margins and face a delisting threat. The consumers will experience: Price, range and quality are all put at risk through reduced funds available to suppliers for investment and promotion Lower rate of innovation and thus of product range Fewer new products, with potential knock-on effects on range and quality Replacement of branded goods with retailers’ own brand lead to loss of choice and possibly of quality. The suppliers face an overall downward pressure on supply prices , experiencing a domino-effect demands for lower prices from other supermarket customers
The consumers will experience:
Cut i production costs with possibly decrease in ingredient quality, and squeeze working conditions in intensive stages of production) Misinformation about sustainability of low prices Pressure in retail market will eliminate small stores with niche products.
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Parthenonos 1,N. Erythraia Athens146 71Greece info@expoaid.gr / Tel: +30 210 6250365 / Fax: +30 210 6209905
EXPO VIEW
Salt debate goes on ...
D
espite huge success stories from salt reduction efforts in some regions, public health experts and campaigners still suggest that much more needs to be done to bring down intakes. Where do we go from here?
danger has created an entire industry of "low sodium" foods.
Contrary to popular belief, table salt is not just sodium chloride. It also contains additives that are designed to make it more free-flowing. Ferrocyanide, Salt reduction remains a key public health priority talc, and silica aluminate are commonly includglobally, and is seen as an area of importance for ed. These substances do not need an introduction many within the food industry, with many in Europe and no need to say that you would not voluntarily and the UK stating that they have successfully put them on your plate. brought down salt in products to meet set targets. Some suggest that even the most successful policies Processed foods are very high in sodium, but it is alhave not done enough, and there are questions ways in the form of table salt, artificial flavors, or about how these results can be translated and adflavor enhancers. In the ultimate heart-health irony, justed in policies of different regions. low sodium products often contain monosodium glutamate, a sodium-based excitotoxin that causes How is the need for reduced salt intake expressed heart attacks in people who do not have enough and supported by health research? What measures magnesium. need to be taken and how should they be implemented in order to have an effect among all catego- There are arguments that sea salt is not worth the ries of consumer regardless their income and educa- cash, because it includes marginally more minerals in tion. The debate continues with public and private insignificant amounts. Consumers should weight the efforts in place. overall Natrium content and the additives that should not be a norm in a simple natural product like salt. So get to know your salt, avoid processed Get to know your salt food, select natural sea salt and use it in moderation. The more common "refined" table salts have been been stripped of their minerals during processing, which manufacturers then sell to supplement companies. It makes the unmistakable point that the producers of table salts are intentionally stripping what they know to be the most nutritious part of the salt, and actually increasing profits by malnourishing their own customers. Table salt has all of its minerals removed, which would otherwise help to balance the blood pressure. Consequently, table salt causes gross blood pressure fluctuations, instead of stabilizing it. This well-known
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Parthenonos 1,N. Erythraia Athens146 71Greece info@expoaid.gr / Tel: +30 210 6250365 / Fax: +30 210 6209905
EXPO VIEW
Green and sustainable
Stop transporting brine, go clever with new packaging for olives
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ater undeniably, was is and will be the most expensive object to transport and handle, especially when it constitutes a completely disposable part of a product, a pure necessity for its preservation. Brine is the medium that preserves olives. In a HORECA packaging brine increases the total gross weight of the product even by 67%. This is especially true for the standard NDW 12kg packs and with a slightly less burden for the smaller 5kg /3kg/2kg packs. In addition to the extra weight of water transported & stored, there are costs associated to the recycling of either the metal tin or the plastic keg that are directly related to its weight. We come forward with a proposal that will
minimize the brine in the packaging, optimizing net drained weight and minimizing logistic costs Minimize the weight of the packaging disposed for recycling Provide easy handling
Think…! Observe our vacuum pack possibilities, in pillow or doy pack and see the difference for yourself.
Brin e+ v a or in cuum e r atm osph t e re opti on s
& Doy ks f o y pac riet A va vacuum w ble pillo availa
Plastic packaging 1x 10 kg
60% less brine for the same Net drained content! 8 times less material to recycle! Easy handling!
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Plastic keg
vs
Vacuum pack
10 kg of brine
vs
4kg of brine
800gr of plastic
vs
100gr of plastic
heavy one piece
vs
functional 4 pieces
difficult to handle
vs
easy to handle
need spoons
vs
usable directly from pack Parthenonos 1,N. Erythraia Athens146 71Greece info@expoaid.gr / Tel: +30 210 6250365 / Fax: +30 210 6209905
EXPO VIEW
Travel catering
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s airlines attempts to take over passengers from competitors and keep their existing customers satisfied, a pattern seems to be emerging that sees western airlines focusing on savings first and differentiation second, while eastern airlines, that generally have lower overheads due to cheaper resources, are putting more focus on differentiation.
differentiating an airline, not only in First and Business class, but, as we have seen, in Economy class too.
In the past, (despite Business and First class travelers enjoying the majority of the value adding components of a journey), the message of high quality stuck with all passengers, including those in Economy, who bought into the promise of luxury pre The continuous challenge for caterers is providing pre, in and and in-flight services. However, as more people are flying in post in-flight services that live up to an airline’s brand’s promEconomy class today, and service levels are continuing to deise, differentiate it from competitors and cut costs, regardless of crease, passenger are more determined to find which airlines where it operates from. Obviously, this goes way beyond menu provide the best in-flight offering at the right price. design, and includes such things as lightweight packaging solutions that can be used as brand building and provide savings As a result some airlines have already begun introducing special through weight reduction, recycling programs that reduce costs service offerings for premium customers flying in Economy and improve a company’s image, and intelligent sourcing strate- class. gies that can provide higher quality goods at reduced costs. Source: LSG Sky Chefs Whitepaper 04 2010 Menu design of course, still has a very important role to play in
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e offer a range of products suitable for travel catering and inflight retail.
A unique olive snack without brine in portion sizes packed in inert atmosphere with a re-sealable zipper.
Safe and convenient packaging Light-weighted low waste packs Premium quality products Good value of money—higher perceived value
You will find our balsamic vinegar, Extra virgin olive oil, vinaigrettes, in convenient packaging of 10ml/ 12ml/20ml in sachets or PET bottles 20ml PET 12ml
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Parthenonos 1,N. Erythraia Athens146 71Greece info@expoaid.gr / Tel: +30 210 6250365 / Fax: +30 210 6209905
EXPO VIEW
Olive oil supply— Know your producers!
O
live oil is an agricultural product, it is subject to crop fluctuations, price speculation and a general uncertainty of supply related to both availability and stable quality. Whether refer to a branded product, a private label manufacturing contract or a bulk provision for further industrial processing, what is vital is to know the market and all the players involved in the production/ supply chain. Our team at Expoaid has a long term experience in olive oil production and sale. We have been involved in the international trade of olive oil for over 15 years, gaining a deep insight into its production and consumption sides. We are here to offer you branded products of excellent quality, cooperate with you to execute contract manufacturing agreements according to your price and quality demands arrange for you bulk supply according to your specifications and certification requirements.
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n extra Virgin Olive Oil with brand name that reaches back into history. FOS-1704 reflects the date of the first official written recording of olive oil producers in Peloponnese. An Extra virgin olive oil with such name could only be produced by the first internationally awarded company, holder of the highest quality certifications and numerous local and international awards, the famous Greek Blauel – Mani company that holds as much important quality certifications and taste awards as historical valuable brand name of FOS- 1704. FOS – 1704 will travel you through every spoonful to history, enormous taste and to top quality. Enjoy it!
Coming soon! Get ready for a full presentation of olive oil crop 2014-2015
We know our business—we know olive oil.
FOS 1704 invites you Meet your producer
FOS 1704 exhibits a consistent quality that is derived from a selected circle of olive oil farmers that are dedicated to quality standards that FOS olive oil sets FOS olive oil producers that they are dedicated to FOS-1704 olive oil standards, are introduced at the back label of every bottle. These life long partner producers ensure that the olive oil we buy is derived with care and according to our standards. The knowledge of our suppliers guarantees the quality of our olive oil from the first to the very last drop.
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Parthenonos 1,N. Erythraia Athens146 71Greece info@expoaid.gr / Tel: +30 210 6250365 / Fax: +30 210 6209905